CBP Import Compliance Statistics

Despite the vast quantity of trade information we see every day, we rarely find information about what is happening to the import community as a whole; however, CBP recently released statistical highlights Mid-Fiscal Year 2010 (and 2009). Most interesting is the enforcement data provided below:

• During the first six months of fiscal year 2009, U.S. imports rapidly declined, however, seasonal patterns resumed by mid-year 2010, resulting in a moderate recovery.
• Imports are now at levels last seen in fiscal year 2006. Continued stability and modest growth are projected for fiscal year 2010.
• In fiscal year 2009, the total value of imports processed by U.S. Customs and Border Protection was slightly more than $1.7 trillion, a 25 percent decrease from the previous year. By year end 2010, however, it is projected that the value of imports will increase 6 percent, totaling $1.8 trillion.
• During the first six months of fiscal year 2010, CBP collected $15 billion in revenue. It is projected that $31 billion will be collected by year end.
• Consistent with recent years, only 29 percent of imported goods were dutiable. The remaining goods were duty free or free under tariff preference programs. (About 49% are unconditionally duty free and 22% are unconditionally duty free.)
• A total of $130 million in antidumping/countervailing duties were collected during the first half of fiscal year 2010, down slightly from the same period last year.
• After the Revenue Gap (projected vs. collected) declined for five consecutive years, preliminary measurements indicate that the level of uncollected duties rose to 1.4 percent, which is roughly equivalent to levels reported in fiscal year 2007.
• Based on a random sampling, 98.6 percent of the fiscal year 2010 imports were materially compliant with all U.S. trade laws and regulations. This compliance rate is slightly higher than recent years (This means that 2.4% of all import transactions are non-compliant.)
• Entry volume at the mid-point of fiscal year 2010 is 13 million. By year end, 27 million entries are expected, an increase of 5 percent from fiscal year 2009.
• China surpassed Canada as the United States’ top source of imports in fiscal year 2009, and is projected to maintain its lead through fiscal year 2011.
• In 2009 the global downturn was evident by the decline of commercial imports. The preliminary total for year end import value was at $1.7 trillion, a decline of 25 percent or $600 billion from the all time high of $2.3 trillion in FY 2008. Preliminary data for other key indicators were also lower, including revenue collections, down by 15 percent, and entries filed, were down 15 percent. At the close of FY09 most indicators show that imports stabilized to levels seen in FY05.

Commercial trade enforcement actions

• Through the end of FY09, CBP initiated more than 18,000 trade enforcement seizures valued at more than $300 million, which is comparable to FY08 enforcement levels. These include violations of intellectual property rights (IPR) having a preliminary count of 14,841 seizures with a total domestic value of $260.7 million.
• Textile quota seizures declined this year with a change in the laws eliminating quotas from China, however, import safety related seizures maintained FY08 levels at about 2,600 total seizures.
• Through the end of FY09, CBP initiated 488 commercial fraud penalties, compared to 453 in FY08, assessed at $98 million. Audits continue to be an effective tool for CBP in addressing larger importers beyond transaction by transaction reviews, with 345 completed audits, and collections of $24.9 million in revenue.
• CBP trade efforts strike a balance between facilitation and trade enforcement. Compliance levels in FY08 and preliminary levels for FY09 are at 98.6 percent and 98.5 percent respectively. This provides CBP with a measure of confidence that most imports into the U.S. are materially compliant for trade purposes, and provides a basis for partnership programs such as Importer Self-Assessment (ISA). ISA members are vetted carefully, and are considered to be among the most highly compliant importers, and are accorded benefits such as an increased level of cargo facilitation. The ISA program has grown by more than 10 percent this year, to 194 importers.
• The number of seizures for intellectual property rights (IPR) violations declined by one percent from 14,992 in FY08 to 14, 841 in FY09. The domestic value of goods seized decreased by four percent to $260.7 million from $272.7 million. China continued to be the top trading partner for IPR seizures in FY09 with a domestic value of $204.7 million, accounting for 79 percent of the total value seized. Footwear was the top commodity seized in FY09 with a domestic value of $99.7 million, which accounted for 38 percent of the entire value of infringing goods. The category of jewelry appeared on the top commodities list for the first time, accounting for 4 percent of the total value of IPR seizures by domestic value.
• Regulatory Audit completed 345 audits of importers and other parties involved in the process of importing goods in FY 2009 and had another 233 audits in progress. Regulatory Audit identified approximately $61.8 million in recommended recoveries, including user fees, and collected about $26.5 million in revenue.

For more information, charts and tables, go to: http://www.cbp.gov/linkhandler/cgov/trade/trade_programs/trade_trends/itt.ctt/itt.pdf