The Future Role of Customs Professionals

1. The Future Role of Customs Professionals National Customs Brokers and Forwarders Association of America Federico C. Zuniga Chairman of the Board

2. The Future Role of Customs Professionals New Security Programs 24 Hour Rule (e-manifest) 10+2 Security Filing CSI (Container Security Initiative) CTPAT (Customs & Trade Partnership Against Terrorism) ATS (Automated Targeting System)

3. The Future Role of Customs Professionals • Affects on Trade due to New Security Measures Increased exam rates at border crossings From 2002 to 2007 Truck 10.5% to 25.3% Vessels 2.3% to 3.8% Rail 19.7% to 85.3% All Modes 8.7% to 21.8%

4. The Future Role of Customs Professionals • What do these numbers mean? • 11.1 Million truck crossings in 2007 • 2,808,300 exams (1 in 4 trucks examined) • 11.6 Million sea containers in 2007 • 440,800 exams (1 out of 27 sea containers examined) • 2.7 Million rail containers in 2007 • 65.6% increase in exams since 2002 • 25.6 Million for all modes in 2007 • 1 in 4.5 movements are examined

5. The Future Role of Customs Professionals Results of new security programs on the Customs Brokerage Industry 1.) Structure 2.) Discipline 3.) Accountability

6. The Future Role of Customs Brokers Strengthening the Customs-Trade Cooperative Partnership 1.) AEO (Authorized Economic Operator) 2.) Mutual Recognition 3.) SME’s (Small & Medium Enterprise Firms) !!!!

7. Strengthening the Customs-Trade Cooperative Partnership Future role of Customs Brokers and Forwarders in the International Trade Business 1.) Scalability-Customs Brokers have the ability to communicate AEO – CTPAT as well as other security initiative requirements and benefits to SME’s with greater reach and reliability than government, since brokers deal with these clients on a more regular basis

8. Strengthening the Customs-Trade Cooperative Partnership Scalability 1.)Brokers working in the United State Approx 7,000 active filers 2.) Importers and Exporters Trading in the United States Over 500,000 active Traders

9. Strengthening the Customs-Trade Cooperative Partnership Future role of Customs Brokers and Forwarders in the International Trade Business 1.) Viability-In order to ensure SME’s that cannot meet AEO – CTPAT standards remain viable international traders, it must be possible that those companies receive some AEO – CTPAT benefits if they use AEO – CTPAT authorized customs brokers, the nature of these benefits will need to be discussed. Trusted and known Partner

10. Strengthening the Customs-Trade Cooperative Partnership Viability Continued Education of our self and our staff CCS (Customs Certified Specialist) Stronger relations between Customs Professionals on a Global Basis IFCBA (International Federation of Customs Brokers)

11. Strengthening the Customs-Trade Cooperative Partnership Future role of Customs Brokers and Forwarders in the International Trade Business Assumptions: Not all SME’s will wish to participate in an AEO or CTPAT program Customs Brokers will be able to qualify for AEO or CTPAT programs on an International Basis with Mutual Recognition. Brokers will make a business decision about offering Benefits to their SME clients. For many Traders there only route to AEO or CTPAT benefits lies in there relationship with international trade professionals such as customs brokers.

12. The Future Role of Customs Brokerage Our Industry history will show we are the people who make international traffic across borders happen in an efficient and seamless way. Trusted and Known Partner

13. NCBFAA The United States Economy as well as the Economy of all other countries in the world depend on a vibrant trade business. It is required of everyone involved in International Trade to do their part to secure as well as facilitate International Trade