U. S. Customs Service

Agency Budget Summary

Department of the Treasury
U. S. Customs Service
I. Resource Summary

II. Methodology

Customs uses the percentages below to estimate the amount of resources the agency dedicates to drug enforcement activities:

Appropriation
Activity/subactivity Drug enforcement percentages

Salaries and Expenses

Inspections

Passenger Processing 41%

Cargo Examination 13%

Canine Enforcement 100%

Inspectional Support 30%

Enforcement

Air Interdiction 95%

Marine and Other Interdiction 95%

Commercial Fraud Investigations 0%

Financial Investigations 60%

Illegal Export Investigations 5%

Interdiction Investigations (sub-activity) 100%

Criminal/Statutory Investigations 25%

Investigation and Enforcement Support 60%

Tariff and Trade 0%

Operations and Maintenance 95%

Facilities, Construction, Improvements As Appropriate

Violent Crime Reduction Trust Fund As Appropriate

In some cases, the percentages listed above can be applied across-the-board when programs and/or budget changes can reasonably be expected to affect a broad area of the agency's programs or activities. However, in the event a program or budget change impacts a specific area within Customs, programmatic knowledge of the change will be used in determining the exact drug-related impact.

III. Program Summary
Customs Authorities/Investigative Operations:

Titles 18 U.S.C. and 19 U.S.C. authorize the Customs Service to regulate the movement of carriers, persons, and commodities between the U.S. and other nations. It is through this statutory authority that Customs plays a key role in the overall anti-drug effort at the border.

In addition, Customs has a broad grant of authority to investigate international financial crime and money laundering. Customs jurisdiction is triggered by the illegal movement of criminal funds, services, or merchandise across our national borders and is applied pursuant to the authority of the Bank Secrecy Act, Money Laundering Control Act, and other customs laws.

Customs has its greatest impact on three goals of the Strategy: Goal 2, "Increase the safety of America's citizens by substantially reducing drug-related crime and violence," through its money laundering and financial crimes investigations and outbound interdictions; Goal 4, "Shield America's air, land, and sea frontiers from the drug threat;" and Goal 5, "Break foreign and domestic drug sources of supply."

Customs has implemented aggressive border strategies that are designed to interdict (Goal 4), investigate (Goal 2, Goal 5), and disrupt the flow of narcotics across our nation's borders and dismantle the related smuggling organizations (Goal 5). Customs achieves these objectives by maintaining an aggressive air, land, and marine interdiction force, approximately 1,391 Title 21 cross-designated special agents, and a multi-disciplined money laundering control program to investigate financial crimes (Goal 2).

Customs employs sophisticated targeting systems, x-ray technology, specifically configured interdiction aircraft and vessels and detector dogs that enable Customs to successfully target, identify, and apprehend the willful violator while efficiently processing the flow of law abiding international passengers and compliant cargo entering and exiting the United States commerce.

Customs investigative efforts focus on the most significant international drug smuggling organizations whose corrupt influence often impacts global trade and economics, financial systems, and public health and safety.

Customs investigative approach, which targets the "command and control" structure of a drug smuggling organization in order to disrupt its transportation cells, uses techniques such as surveillance, electronic wire intercepts, controlled deliveries, undercover operations, and money pick-ups. In addition, Customs pursues legislative initiatives and offers training designed to facilitate the work of our foreign investigative and customs counterparts.

Customs narcotics interdiction strategies are designed to be flexible so that they can successfully counter the constantly shifting narcotics threat and disrupt the flow of drugs at --and between-- the ports of entry, as well as in the source and transit zones.

To assist in the interdiction of smugglers and contraband entering the arrival zone of the United States, Customs personnel skilled in the operation of a fleet of aircraft and marine vessels, outfitted with sophisticated radar, patrol the coastal waters and airspace of the arrival zone. Customs interdiction aircraft also patrol the transit and source zones with the objective of detecting and apprehending suspect drug trafficking aircraft and vessels. The non-personnel costs associated with the interdiction activities of the Customs Air and Marine Programs are supported by the Operations and Maintenance Decision Unit, whereas the personnel costs are supported by the Salaries and Expenses Decision Unit.

Customs Air/Marine Programs:

The goal of Customs Air Program is to deny drug traffickers the option of using private aircraft for transporting drugs towards and into the U.S., thereby increasing drug trafficking organizations' transportation costs and forcing the operations of these organizations into the ports-of-entry where the law enforcement presence is at its highest concentration. The Air Program objectives are the detection and apprehension of private aircraft and vessels engaging in drug trafficking activities and the provision of assistance to other enforcement efforts of Customs and other law enforcement agencies.

Aircraft operated by Customs include jet interceptors and long-range trackers equipped with radar and infrared detection sensors, high performance helicopters, single and multi-engine support aircraft, sensor-equipped marine search and surveillance aircraft and airborne detection platforms.

Historically, Customs Air Program has performed its mission in the arrival zone of the United States. However, as air interdiction effectiveness along our borders forced the airborne drug trafficker to alter his tactics, Customs pursued him into what is now defined as the transit zone; and then, with the signing of Presidential Decision Directive 14, into the South American source zone. Customs accomplishes this mission with its P-3 Detection and Monitoring Program which will fly an estimated 6,000 hours in FY 2000. Overall, Customs' proposed FY 2000 Budget will support 41,000 flight hours for the Air Program, the vast majority of which will be dedicated to counterdrug activities.

Customs Marine Program employs a variety of vessels, including interceptors, fast utility and blue water type vessels. These motor vessels are complemented with several different types of sophisticated marine radar systems, radio systems, and other marine electronic support equipment that are designed to detect and help Customs apprehend smugglers that use private vessels.

Intelligence Program:

The Intelligence Program provides support to Customs investigative, inspectional, air, and marine components in disrupting the flow of drugs by collection and analysis of all source information and disseminating intelligence to the appropriate component. Also, the program provides strategic intelligence estimates to executive management for purposes of planning and resource allocation.

Southern Tier Operations/Initiatives:

In direct support of the U.S. Customs Service Southwest border drug interdiction initiative, Operation HARD LINE, an intelligence driven operations plan was designed by the Intelligence and Communications Division of Customs to be responsive to the intelligence needs of field offices. The plan is based on the concept of locating Intelligence Collection and Analysis Teams (ICATs) at selected sites along the Southwest border. The ICATs function as a U.S. Customs multi-discipline team working as an anti-smuggling element focusing on Customs specific intelligence needs.

The ICAT concept provides for a centralized field mechanism for the collection, exploitation and dissemination of intelligence. The ICATs are comprised of Special Agents, Inspectors, and Intelligence Analysts. In some locations, state and local police departments have assigned officers to work with Customs in the ICAT, and in most locations there is daily contact and coordination with other federal law enforcement agencies. The teams maximize the full potential of intelligence sources available to Customs and focus on the field development of intelligence through informants, document exploitation and surveillance. The ICATs coordinate all intelligence reporting with the National Analytical Operations Center (NAOC), located at Customs Headquarters.

The NAOC disseminates national level tactical intelligence to the appropriate ICAT offices for field action. The ICATs collect intelligence and disseminate this to the NAOC and appropriate field offices, especially as it relates to drug smuggling via cargo and commercial entities.

The ICAT program has significantly increased the volume and quality of intelligence information related to Southwest border smuggling. Customs has expanded this program to include locations along the U.S. Northern border, South Florida and Puerto Rico.

Customs is continuing to pursue the acquisition of fixed, mobile, gamma-ray and other forms of technology for use at high-risk sea and air ports of entry under a joint Customs/DoD research and development technology demonstration test. Customs, through Operation FLINT, is in the process of working with DoD to provide and study the effectiveness of various x-ray, gamma-ray and tool technology when used in concert with one another and with existing technology (pallet x-rays, x-ray vans, tool trucks, Busters, etc.). The equipment procured throughout this initiative is scheduled to be operational at the South Florida sea and air ports within the next 18 months.

Customs is providing major technological support to Operation HARD LINE and Operation GATEWAY. The installation of the truck x-ray system along the Southwest border is well under way; five systems are currently operational. Smaller x-ray systems have been provided to all large and most small ports on the southern perimeter of the country. Evaluation of new technology, notably in the areas of gamma-ray inspection systems for tankers, drug detection systems (sniffers) and mobile x-ray systems, has been concentrated in high-risk areas as well. Many of these efforts are being supported by the Department of Defense Counterdrug Technology Development Program and involve the support of and coordination with other law enforcement agencies.

At present, since drug smugglers are themselves investing in high technology to advance their own smuggling operations and defeat ours, Customs employees are being equipped with advanced tools to perform more intensive narcotics examinations and investigations. Southwest border port infrastructure has been fortified in FY 1998 to include 3 additional non-intrusive truck x-ray systems. Along with the seven existing systems on the Southwest border, two additional locations are expected to be placed in service by October 2000:
Laredo, TX (Bridge #4)
Brownsville, TX (Los Tomates)

Additionally, Customs is testing mobile x-ray systems and transportable gamma-ray technology at various ports of entry along the Southwest border. A mobile-truck x-ray prototype system is currently in use at the Laredo, Texas, Port of Entry to support an all inclusive statewide enforcement operation. A Gamma Ray vehicle and container inspection system has been tested in two Southwest border rail locations and is currently in use in Santa Teresa, NM.

Participation in Interagency Task Forces:

The task force methodology in law enforcement has proven to be an effective tactic in dismantling criminal organizations. Customs has actively supported task forces and High Intensity Drug Trafficking Areas (HIDTA) operations in the past and will continue to do so in the future. Customs also coordinates all GATEWAY activities through the Caribbean HIDTA as well as serves on the Executive Council for that HIDTA. At the urban HIDTAs, Customs personnel actively support and staff the local law enforcement task forces and programs developed by the HIDTAs aimed at dismantling narcotic trafficking and distribution organizations.

Customs participates in and actively supports the Organized Crime Drug Enforcement Task Forces (OCDETF). There are nine Customs OCDETF Coordinators sitting on each of OCDETF's Regional Advisory Boards who actively interact with other federal law enforcement agencies, as well as Chiefs of Police and State Attorneys. Customs enthusiastically dedicates resources to participate in highly complex OCDETF investigations targeting major drug smuggling organizations.

Customs also plays a major role in Operation Alliance, which was established in the summer of 1986 to facilitate and improve the coordination of law enforcement operations along the Southwest border of the United States. Alliance is chartered to facilitate the implementation of national drug control policy, develop regional strategies and administer the HIDTA program for the Southwest border. Headquartered in El Paso, Texas, Alliance has a full-time staff; and currently has some 26 member agencies which include federal, state and local organizations. The Operation is headed by a senior tactical coordinator who is alternately a Customs, DEA or INS/USBP representative. The senior tactical coordinator position is rotated on an annual basis between the three agencies with the other two agencies then serving as deputies when it is not their turn as senior coordinator.

Customs additionally supports and actively participates in a number of Intelligence Community interagency working groups that are designed to focus the coordination of enforcement efforts on specific major cocaine and heroin trafficking organizations. The Intelligence and Communications Division of Customs has forged partnerships within the Intelligence Community and federal law enforcement agencies to become more focused on collection that produces actionable intelligence that is used to build cases against major drug trafficking organizations.

IV. Budget Summary

Customs drug enforcement program estimates are based on separate percentages applied to programs in Customs Salaries and Expenses; Air and Marine Interdiction Programs Operations and Maintenance; Violent Crime Reduction Trust Fund; and Facilities, Construction, Improvement and Related Expenses decision units.

1999 Program

For FY 1999, Customs appropriation totals $956.1 million and 4,934 FTE for its drug control efforts. Of the total funding, $35.6 million will support Goal 2 activities, $689.1 million will support Goal 4 activities, and $231.4 million will support Goal 5 activities.

The FY 1999 enacted level is comprised of $689.4 million from the Customs Service regular appropriation and $266.7 million in emergency supplemental funding.

Customs major initiatives which are funded as part of the FY 1999 budget include:

$134.0 million for non-intrusive inspection systems, including higher energy container inspection systems at seaports, automated targeting systems, gamma ray inspection systems for truck and rail cars, mobile truck x-rays, and heavy pallet x-rays (95 percent drug-related)

$10.0 million for Port Integrity (100 percent drug-related). This initiative will ensure that Customs complies with statutory provisions concerning periodic reinvestigations, and reinforce the awareness of all agency employees to the possible integrity threats, e.g., bribery attempts and unethical behavior.

2000 Request

The FY 2000 total drug control budget request is $664.4 million and 5,027 FTE, an increase of 93 FTE over FY 1999.

Changes in Customs resource levels are predominately due to increases in personnel and benefit costs. Funding for many of the positions shown as increases in FTE are positions filled in FY 1999 and annualized in FY 2000.

Goal 2: Increase the safety of America's citizens by substantially reducing drug-related crime and violence.

The total drug control request for Goal 2 activities in FY 2000 is $39.2 million and 343 FTE, a net increase of $3.6 million over the FY 1999 level of $35.6 million.

The components of this Goal include funding and staffing from the money laundering and task force components of the following initiatives:

Money Laundering (Outbound) Technology: This initiative will enhance Customs ability to detect undeclared outbound currency through the acquisition of non-intrusive technology and equipment.

Integrity Enhancement: This initiative will ensure that Customs complies with statutory provisions concerning periodic reinvestigations, and reinforce the awareness of all agency employees to the possible integrity threats, e.g., bribery attempts and unethical behavior.

Training: Customs is requesting resources to establish a new office at the Assistant Commissioner level to manage and direct the establishment of a comprehensive education, training, and workforce development program.

Goal 4: Shield America's air, land, and sea frontiers from the drug threat.

The total drug control request for Goal 4 activities in FY 2000 is $421.8 million and 3,120 FTE.

The components of this Goal include funding and staffing from the interdiction, coordination, and technology components of the following initiatives:

Land Border Blitzes: This initiative would allow Customs to conduct "blitz" type operations at land border ports. Implementing some of the lessons learned from Operation Brass Ring, blitz operations will be characterized by the rapid, unpublicized deployment of a team of Customs inspectors, Canine Enforcement Officers, and Special Agents into a targeted port or base ports to conduct intensive inspectional and investigative operations.

Non-Intrusive Mobile Personal Inspection Technology: The initiative will enhance Customs ability to detect internal carriers, which can only be accomplished through the use of x-ray. This initiative will implement procedures Customs has developed to examine a suspected carrier by placing an x-ray facility, staffed with an x-ray technician, in or immediately adjacent to the international arrivals area of the airport or bus terminal.

Integrity Enhancement: This initiative will ensure that Customs complies with statutory provisions concerning periodic reinvestigations, and reinforce the awareness of all agency employees to the possible integrity threats, e.g., bribery attempts and unethical behavior.

Training: Customs is requesting resources to establish a new office at the Assistant Commissioner level to manage and direct the establishment of a comprehensive education, training, and workforce development program.

Goal 5: Break foreign and domestic drug sources of supply.

The total drug control budget request for Goal 5 activities in FY 2000 is $203.4 million and 1,564 FTE.

The components of this Goal include funding and staffing from the interdiction, coordination, money laundering and technology components of Land Border Blitzes, Non-Intrusive Mobile Personal Inspection Technology, Money Laundering (Outbound) Technology, Integrity Enhancement, and Training.

V. Program Accomplishments

During FY 1998, Customs accounted for or participated in the seizure of approximately 1.2 million pounds of illegal drugs, including 2,953 pounds of heroin, 157,035 pounds of cocaine, and 954,936 pounds of marijuana.

Customs seized $426.6 million in monetary instruments in FY 1998, most of which were related to drug trafficking.

The Customs Air Interdiction Program continued to support PDD-14, Ambassadors and Country Teams by providing detection and monitoring, interceptor support and training for employment in Mexico, Central and South America, and the Caribbean. Customs Air Program continued to provide valuable support to international counterdrug efforts and have had a significant impact on drug trafficking patterns throughout the source and transit zones. Customs aircraft deployed to South America contributed to the continued denial of the Peru-to-Colombia air bridge. In the foreign arena Customs aircraft contributed to the identification and subsequent interdiction of drug trafficking vessels which led to the seizure of 8,727 pounds of cocaine and 650 pounds of marijuana. While these numbers are down from last year, there have been increases in airborne drug deliveries to the Bahamas, usually inside the Cuban air detection and interdiction zone, and U.S. Government assets are prohibited from entering the zone. Customs aviation personnel also provided law enforcement and U.S. Customs Advisory support to the Joint Interagency Task Forces (JIATFs) and their planning staff for air, land and marine interdiction operations.

During FY 1998, Customs deployed additional Non-Intrusive Inspection Technology (NII) along the Southwest border, including three fixed site truck x-ray systems: one in Pharr, Texas, and two in El Paso, Texas. The prototype gamma-ray inspection system was installed at the port of Santa Teresa, New Mexico. In addition, Customs tested and deployed the second generation mobile truck x-ray system in Miami, Florida.

Customs Special Agents conducted 442 controlled deliveries during FY 1998, more than double the number recorded in FY 1997. These deliveries resulted in 772 additional arrests (beyond the arrests associated with the initial interdiction), and typified Customs commitment to parlaying drug seizures at the border into conspiracy investigations intended to dismantle drug smuggling organizations.

Customs supported international anti-drug efforts though the Americas Counterdrug Initiative (ACI), a program designed to minimize the use of legitimate trade for drug smuggling through training and industry partnerships throughout Central and South America. During FY 1998, the initiative resulted in the seizure of 42,665 pound of illegal drugs abroad and 21,217 pounds in the United States.

From February 1 through July 31, 1998, Customs executed Operation Brass Ring, an intensification of drug interdiction and investigative efforts along the southern tier of the United States. The project combined the talents and resources of Customs investigative, inspectional and intelligence disciplines, and resulted in a 45 percent increase in the quantity of drugs seized over the same period the prior year.

Operation Meathook, a Customs led OCDETF investigation based in Houston, Texas, has resulted in the seizure of 17,200 pounds of cocaine, 16,120 pounds of marijuana, $6.7 million in U.S. currency, and the arrests of 34 persons.

Customs Special Agents in El Paso, Texas, led Operation Porterhouse, an OCDETF investigation which so far has resulted in the seizure of 57,000 pounds of marijuana and the arrests of 131 individuals.

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1999 National Drug Control Strategy
Budget Summary Office of National Drug Control Policy