CBP spikes GTX project

U.S. Customs and Border Protection has decided not to move forward with the controversial Global Trade Exchange concept that would have created a privately managed database of international transactions that could be mined by law enforcement for cargo security purposes, Deputy Commissioner Jayson Ahern testified last week.

Ahern told the House Appropriations homeland security subcommittee that the agency decided not to award a contract for a pilot project after evaluating the bids and industry comments on the matter.

CBP has determined that further consolidation of the GTX concept is premature at this time, and may not be a prudent use of limited resources. CBP's targeting systems will be enhanced through the 0+2 Security Filing, and before initiating further efforts aimed at gathering even greater supply chain security data, it is prudent to assess the benefits to be gained by the Security Filing, he said.

Among the industry complaints with GTX was that its vast information scope would supercede the 0+2 regulation in the works, and make it redundant. CBP officials are reviewing comments on the 0+2 proposal, which would require 10 additional data elements from importers and two from ocean carriers, and say they plan to issue a final rule sometime this summer.

GTX was envisioned as a data clearinghouse for commercial supply chain data not collected by CBP through normal regulatory channels. Other customs agencies and private parties would also have access to the data of supply chain partners, for a fee, based on certain clearances or approvals. The Department of Homeland Security and CBP wanted to plug the extra information into their automated targeting systems to analyze shipments for potential terrorist connections prior to arrival in the United States.

Potential data sought by DHS included purchase orders, fulfillment schedules and invoices, status messages from radio frequency identification tags and container security devices, vessel transponder data, production management records, inventory records, and advance ship notices.

Many companies that trade internationally voiced strong concerns that the data-mining project undermines their proprietary data, which they feel could be compromised if it falls in the hands of unscrupulous governments. Industry representatives pleaded with DHS to share its procurement plans in advance so they could help design the system from the ground up.

Commissioner Ralph Basham said GTX was moved to the backburner, but is not dead.

That's not to say we're closing the doors to a GTX concept, he said this morning at the National Customs Brokers and Forwarders Association of America conference in Orlando, Fla. CBP plans to work more thoroughly in the future with the import-export industry to develop the concept and assess its potential benefit, he said. 

Source: American Shipper