II. METHODOLOGY  

• Salaries and Expenses.



• Inspection and Control - processes all persons and cargo entering the country and attempts to stop the illegal entry of drugs and other prohibited items. Approximately 35 percent of this activity is scored as drug-related.



• Enforcement - includes a tactical interdiction force proficient in land, sea, and air operations and investigative programs that enforce customs and smuggling laws. Approximately 56 percent of this program is scored as drug-related.



• Operations and Maintenance - includes non-personnel operating costs for the Air and Marine Interdiction program, the P-3 Drug Interdiction program, and the Air and Marine Interdiction Procurement program. Approximately 95 percent of this program is scored as drug-related.



• Facilities, Construction, Improvement, and Related Expenses - depending on the project, up to 100 percent of the facilities-related costs of the air program are scored as drug-related.




III. PROGRAM SUMMARY

• The Customs Service administers a variety of border enforcement programs that prevent contraband from entering or exiting the commerce of the United States. The Agency's drug control programs are listed below by the National Drug Control Strategy goal they support.

• Customs investigates drug-related international financial crime and money laundering and the related movement of criminal funds, services, or merchandise across our national borders.

• Customs deploys sophisticated targeting systems, x-ray technology, and detector dogs to target, identify, and apprehend the willful violator while directing the efficient flow of law abiding people and compliant cargo entering United States commerce.  
• Flexible interdiction strategies counter the constantly shifting narcotics threat and disrupt the flow of drugs at and between ports of entry and in the arrival and transit zones. Customs' agents patrol the coastal waters and airspace of arrival and transit zones with a fleet of aircraft and marine vessels to interdict smugglers and contraband. Since 1993, Customs interdiction authority has extended to the transit zone, using P-3 aircraft to perform detection and monitoring missions in that area.

• Investigative techniques such as surveillance, electronic wire intercepts, controlled deliveries, undercover operations, and money pick-ups are used to assist in the dismantling of drug smuggling organizations.

IV. BUDGET SUMMARY

1997 Base Program

• The 1997 base program includes $25.8 million for law enforcement activities which support Goal 2 of the Strategy. These funds support drug-related money laundering and financial crime investigations.



• The 1997 base program includes $528.7 million for interdiction, inspection and control programs in support of Goal 4 of the Strategy. It also includes $54.3 million for efforts to investigate and dismantle drug smuggling organizations in support of Goal 5 of the Strategy.



• In addition, Customs anticipates receiving $26.7 million in reimbursable funding from ICDEfor drug task force investigative activities in support of Goal 5.

• The total FY 1998 drug control budget request is $641.2 million, an increase of $32.4 million over the FY 1997 enacted level. In addition, Customs is requesting $27.5 million in reimbursable funding from Treasury's Interagency Crime and Drug Enforcement Account for Goal 5 task force investigative activities.

• The drug control request for Goal 2 activities for FY 1998 is $26.4 million, sustaining the program at the same level as FY 1997.

• The drug control request for Goal 4 activities for FY 1998 is $564.3, a net increase of $35.6 million over FY 1997. This additional funding supports the following initiatives:




• Anti-Smuggling Initiative. Increase of $8.4 million to deploy 119 cargo inspectors at high risk ports of entry.



• Land Border Passenger Processing Initiative. An additional $4.7 million in drug- related costs to replace aging computers and install automated license plate readers, providing streamlined and simplified passenger processing at border ports of entry.



• Facilities, Construction and Improvements. Request includes $5.5 million to construct a hangar at Corpus Christi, Texas to house the two P-3s being outfitted in FY 1997 and scheduled to become operational in FY 1998.



• Violent Crime Reduction Trust Fund. Includes $15 million for non-intrusive x-ray equipment to inspect cargo and automated targeting systems to more effectively target cargo for inspection at high risk ports of entry. Another $1.1 million will construct outbound lane canopies where more intensive outbound examinations can be performed.

• The drug control request for Goal 5 activities for FY 1998 is $50.5 million, a net decrease of $3.8 million below the FY 1997 enacted level. The decrease is principally associated with non-recurring FY 1997 expenses.

V. PROGRAM STATISTICS

	1996 Actual	1997 Estimate	1998 Projected
Assets Seized (Quantity)
- Vessels	235	245	245
- Aircraft	35	35	35
- Vehicles	12,300	12,900	12,900
- Monetary Instruments (in millions)	$235	$250	$250
Seizures (lbs)
- Heroin	2,895	2,600	3,000
- Cocaine	239,860	259,000	274,000
- Marijuana	783,568	790,100	790,100
- Hashish	36,761	38,500	38,500
Air Program Flying Hours	37,789	40,932	42,300

VI. PROGRAM ACCOMPLISHMENTS

• Through the combined efforts of its interdiction and investigative activities, Customs consistently generates approximately 75-80 percent of the revenue that comes into the Treasury Forfeiture Fund with its seizures of real property and monetary instruments. Over the past two years, Customs trained and equipped highly specialized Asset Identification and Removal Groups that seized in excess of $60 million of the assets of drug trafficking organizations.



• Since Operation Hard Line was implemented in 1994, Customs drug seizures have increased substantially. In FY 1995, cocaine seizures increased 19 percent, heroin seizures increased 108 percent, and marijuana seizures increased 25 percent at Southwest border ports of entry.



• In FY 1995, Customs discovered 85 percent of all heroin, 65 percent of all cocaine, and 51 percent of all marijuana seized by federal government agencies.



• Customs' "Investigative Bridge" between the interdiction point and final destination has resulted in numerous successful counterdrug operations, to include Global Sea in Chicago and Trick Bag in New York, dismantling sophisticated drug smuggling organizations.



• Overall, in FY 1996, Customs seized a record total of more than 1 million pounds of narcotics. Along the Southwest border, Customs seized 33,308 pounds of cocaine; 545,922 pounds of marijuana; and 459 pounds of heroin. Narcotics seizures from commercial cargo increased over 100 percent. Operation Hard Line has also resulted in a 56 percent decline in port running incidents along the Southwest border.



• Since March 1996, Operation Gateway in the Caribbean region resulted in the seizure of 5,889 kilos of cocaine, 45 kilos of heroin, 6,434 kilos of marijuana and $3.1 million in currency.



• In FY 1996, the Customs' Air Program netted seizures of over 32,600 pounds of cocaine and 11,400 pounds of marijuana.