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REVENUE COLLECTION: The U.S. Customs and Border Protection's Oversight of the Merchandise Transported In-Bond Program Needs Improvement to Better Ensure the Protection of Revenue

Submitting OIG: 
Department of the Treasury OIG
Date Issued: 
Thursday, March 31, 2022
Agency Reviewed / Investigated: 
Department of Homeland Security
Submitting OIG-Specific Report Number: 
OIG-22-033
Component, if applicable: 
United States Customs and Border Protection (CBP)
Location(s): 
Agency-Wide
Type of Report: 
Audit
Questioned Costs: 
$0
Funds for Better Use: 
$0
Number of Recommendations: 
20
View Document: 
AttachmentSize
PDF icon OIG-22-033.pdf4.21 MB

Related Open Recommendations

Recommendation Number Recommendation Status Significant Recommendation Additional Details
3-2 Open Yes
The U.S. Customs and Border Protection (CBP) Commissioner should ensure Cargo Security and Controls Division (CSC) officials provide Trade Transformation Office (TTO) officials with business requirements after regulations are updated so that TTO can implement changes in the Automated Commercial Environment (ACE) to modernize in-bond tracking and automation processes and enhance data quality to meet user needs.
4-1 Open Yes
The U.S. Customs and Border Protection (CBP) Commissioner should direct Cargo Security and Controls Division (CSC) officials to consider updating guidance on compliance examinations to require ports to examine a statistically valid sample of in-bond shipments so that cargo reviewed is more representative of all in-bond shipments. Additionally, the guidance should contain instructions on waivers of examination including documenting the justification for these waivers.
4-2 Open Yes
The U.S. Customs and Border Protection (CBP) Commissioner should ensure Cargo Security and Controls Division (CSC) officials provide the ports with written policies and procedures to ensure compliance examinations are adequate and consistent. These procedures should include selecting cargo for review, conducting examinations, documenting the process used for the review and the results, and storing the records.
5-2 Open Yes
The U.S. Customs and Border Protection (CBP) Commissioner should ensure Cargo Security and Controls Division (CSC) and Trade Transformation Office (TTO) officials require Automated Commercial Environment (ACE) training related to the oversight of in-bond cargo for all U.S. Customs and Border Protection (CBP) officers.
6-1 Open Yes
The U.S. Customs and Border Protection (CBP) Commissioner should ensure the Commercial Operations Revenue & Entry (CORE) Division coordinates with the Revenue Division and Cargo Security and Controls Division (CSC) officials to improve custodial bonding to address the risks of merchandise transported in-bond and update U.S. Customs and Border Protection's (CBP) bonding policy. The policy should improve the connectivity between in-bond shipments and respective duties, taxes, and fees by considering estimated duties when determining the appropriate bond coverage.
6-2 Open Yes
The U.S. Customs and Border Protection (CBP) Commissioner should ensure the Commercial Operations Revenue & Entry (CORE) Division provides general bond training to include setting the appropriate bond amounts.

Pages

Displaying 16 of 16 Recommendations