Although over two years have passed since 9-11, that day remains as vivid in all of our memories today as it was two years ago. We still grieve for the 3,000 innocent people whose lives were cut short on that day and for their families and loved ones. The horror and the anger that we all felt as a result of the terrorist attacks on 9-11 have not changed in the two years that have passed.

But today I will tell you about some of the things that have changed.

DHS
The creation of the Department of Homeland Security is one very important step - perhaps the most important step here at home - that President Bush and our nation have taken to address the ongoing threat of international terrorism, a threat that is likely to be with us for years to come. With our federal government's prevention, preparedness, and response capabilities now under one roof, in one department of government, and with that department under the outstanding leadership of Secretary Ridge, our nation will be - and already is - safer and better able to deal with the terrorist threat.

BCBP
The creation of U.S. Bureau of Customs and Border Protection, or "BCBP" - this new agency within the Department of Homeland Security's Border and Transportation Security Directorate - is another extraordinarily important step in addressing the terrorist threat. In fact, the BCBP merger is a big part of the Department of Homeland Security reorganization to better protect our Nation's borders. BCBP is the largest actual merger of people and functions going on in the Department of Homeland Security. Indeed, about one-fourth of the personnel of DHS are in BCBP. That's not surprising considering how important the security of our borders is to the security of our homeland.

To create BCBP, on March 1, we took most of U.S. Customs and merged it with all of the immigration inspectors and Border Patrol from the former INS, the agriculture border inspectors from the Department of Agriculture's Animal and Plant Health Inspection Service. This means that for the first time in our country's history, all agencies of the United States Government with significant border responsibilities have been unified into one agency of our government, one agency to manage and secure our Nation's borders.

As U.S. Customs and Border Protection, we are creating, as Secretary Ridge has called it, "One Face at the Border," by establishing one agency for our nation's borders. In the seven and a half months since it was created, U.S. Customs and Border Protection has made significant strides toward unification. And America's borders are safer and more secure than we were when border responsibilities were fragmented among different agencies in three different departments of government, as they were before March 1, 2003, as they were before the creation of the Department of Homeland Security.

On day one, March 1, 2003, we designated one Port Director at each port of entry and put in place a single, unified chain of command. And in terms of an immediate increase in antiterrorism security, on day one, all frontline, primary inspectors at all ports of entry into the United States were equipped with radiation detection devices. Since March 1, 2003, all inspectors have received antiterrorism training.

We have begun rolling out unified BCBP primary inspections for U.S. citizens at international airports around the country. It is presently operational in 8 major airports (Dulles, Houston, JFK, Newark, LAX, Atlanta, Miami, San Francisco), and will be operational at ten additional airports by the end of this month. By the end of this calendar year, we will have 60 airports conducting unified primary inspections for U.S. citizens. This a major step forward in eliminating the process of travelers potentially having to "run the gauntlet" through three separate inspection agencies; separate questioning and inspections for customs, immigration, and agriculture.

Although legacy customs and immigration inspectors for years have been interchangeable at the land border ports of entry, this is the first time unified primary is being done at our country's airports. Significant cross-training is being provided to our frontline inspectors to ensure effective implementation, as is counterterrorism training is creating a better understanding of terrorist issues and better referrals to the secondary area. Along with unified primary, we are developing specialized immigration and customs antiterrorism response teams and consolidating our passenger analytical targeting units.

We have also begun rolling out a new BCBP uniform and patch for all BCBP inspectors at our Nation's ports of entry, that will replace the three different customs, agriculture, and immigration inspectional uniforms and patches. The new uniform and patch represent our most visible unifying symbols to the American public. The new uniform is being implemented in four phases. In the first phase, completed as of October 1, 2003, all BCBP managers and supervisors converted to the new uniform. Other BCBP uniformed personnel will be phased in at various points over the next nine months, with implementation scheduled to be complete by July 31, 2004.

BCBP Officer
All of these things are helping us unify and become more effective as an agency; however, our most significant step toward achieving "One Face at the Border" was announced by Secretary Ridge last month on September 2, 2003: the rollout of the new "BCBP Officer" position. Starting this month, we will no longer be training legacy "immigration" or "customs" inspectors. We will be training a new cadre of "BCBP Officers," who will be equipped to handle all BCBP primary and many of the secondary inspection functions, in both the passenger and cargo environments. We will also be deploying BCBP Agriculture Specialists to perform more specialized agricultural inspection functions in both these environments.

Training is a very important component to the roll out of the BCBP Officer. We have created a new 71-day basic course that provides the training necessary to conduct primary processing and have a familiarity with secondary processing of passengers, merchandise, and conveyances, in all modes of transport - air, sea, and land. The new BCBP Officer course was built from the 53-day basic Customs inspector course and the 57-day basic Immigration inspector course, with redundancies removed, and with additions to address anti-terrorism and BCBP's role in agriculture inspection. The training also supports the traditional missions of the legacy agencies integrated in BCBP.

Our first BCBP Officers were hired on September 22, 2003, and they have already started training at the Federal Law Enforcement Training Center (FLETC). The first BCBP Officer class started training on October 8, 2003, and two additional classes started yesterday. All of our BCBP Officer classes for the months of October and November are filled, for a total of 480 new BCBP Officers by the time their training is complete. We are now in the process of filling our classes for December.

In the spring of 2004, current legacy Customs and Immigration inspectors will be converted to BCBP Officers and will begin cross-training for their broadened responsibilities. Current Agriculture Quarantine inspectors will have an opportunity to become BCBP Officers or BCBP Agriculture Specialists.

We are moving out quickly to achieve the President's and the Secretary's goal of "One Face at the Border," that is, one unified, flexible, and effective agency to better manage, control, and secure our Nation's borders.

Priority Mission and Traditional Missions
The priority mission for our BCBP Officers and for our entire agency is homeland security. For the unified border agency of our country, that means detecting and preventing terrorists and terrorist weapons from entering the United States. We are doing everything we reasonably and responsibly can to carry out that extraordinarily important priority mission.

But we are also continuing to carry out the traditional missions of the predecessor agencies that make up U.S. Customs and Border Protection. These missions include, among others:

• seizing illegal drugs and other contraband at the U.S. border;
• apprehending people who attempt to enter the United States illegally;
• determining the admissibility of people and goods;
• protecting our agricultural interests from harmful pests and diseases;
• regulating and facilitating international trade;
• collecting duties and fees - we collected over $23 billion last year alone;
• and enforcing all laws of the U.S., including trade and immigration laws, at our borders.

Twin Goals
As U.S. Customs and Border Protection works to carry out its priority antiterrorism mission and its traditional missions, we have devised ways to do so without choking off the flow of legitimate trade and travel, so important to our nation's economy and our openness as a nation.

I learned the need to do this most graphically on September 12, 13, and 14, 2001. On 9-11, U.S. Customs went to its highest level of security alert - short of shutting down our borders. On September 12, 2001, wait times at our land borders skyrocketed from 10 to 20 minutes, to 12 hours at many of our major land border entry points. The border with Canada virtually shut down.

And the consequences for our "just in time" economy were quickly apparent. Some U.S. auto plants began to shut down by September 14th.

To preserve the U.S. economy, indeed, the North American economy, we needed to reinvent the border. We needed a more secure border because of the terrorist threat. But we also knew that, as we added security, we needed to ensure the continued movement of legitimate cargo and people through our borders. That's why we have twin goals: (1) increasing security and (2) facilitating legitimate trade and travel.

We have learned that by using advance information, risk management, and technology, and by partnering with other nations and with the private sector, these goals don’t have to be mutually exclusive. Since 9-11, we have developed ways to make our borders more secure that also ensure the more efficient flow of legitimate trade and travel.

Today, I will tell you about some of the things U.S. Customs and Border Protection has done in the past two years -- and is continuing to do today -- to carry out those twin goals -- things we've done and are doing to "reinvent the border."

Staffing and Technology Increases
Before 9-11, we had about 1,000 customs inspectors and about 500 immigration inspectors on our shared 4,000 mile border with Canada. Most of the lower volume border crossings were not open 24 hours a day. There was no security when they were closed, other than an orange cone in the road. An orange cone was all that stood in the way of someone driving a vehicle from Canada into the United States on a paved highway. That vehicle could have terrorists or terrorist weapons or it could be a weapon - a car bomb.

That was unacceptable. So, right after 9-11, I directed that all border crossings be staffed with two armed Customs inspectors 24x7. Because I didn't want inspectors doing this forever - the 24x7 staffing was a temporary measure - I mandated "hardening" and electronic monitoring of our low volume northern ports of entry to prevent unauthorized crossings. This meant installing gates, signs, lights, and remote camera surveillance systems, which we have done.

I have received significant staffing increases for the northern border, supported by the Administration. Today, we have over 2,900 BCBP inspectors along the northern border, up from about 1,600 on 9-11. We have also bolstered our staffing on the southern border. We know that terrorists have and will use any avenue they can to enter our country. Prior to September 11th, we had 4,371 inspectional staff at the southern ports of entry. Today, we have almost 4900 standing ready to protect us.

We also added sophisticated detection technology, such as large scale x-ray type machines that can scan an entire tractor trailer truck in a couple of minutes. There are now 24 such machines deployed at all the significant commercial crossings between Canada and the United States. There were exactly zero on 9-11. Nationwide, we have increased the number of whole container x-ray-type machines from 63 on 9-11 to 134 today.

We know that securing the areas between the ports of entry is just as important as adding security at the ports of entry. A chain, after all, is only as strong as its weakest link. Terrorists, just like others who seek to enter the U.S. illegally, may attempt to enter through official crossings with phony documents, or they may attempt to evade detection by crossing in areas between ports of entry.

BCBP's Border Patrol is responsible for patrolling those areas and, using sophisticated sensor technology, detecting those who attempt to illegally enter the U.S. between the ports of entry. Since March 1 of this year, the Border Patrol is a part of U.S. Customs and Border Protection, and we are revising and refocusing the Border Patrol's strategy - which had been principally focused on preventing the flow of illegal aliens and drugs crossing between ports of entry on our border with Mexico - to include an aggressive strategy for protecting against terrorist penetration, at both our northern and southern borders.

On 9-11, there were only 368 authorized positions for Border Patrol agents for the entire northern border. We are currently at 558. We have selected an additional 220 positions, and the other 222 are in the process of being selected. With the relocation funds from the 2003 War Supplemental, we will meet our goal of having 1,000 agents on the northern border by March 2004.

This staffing increase will better secure our border against terrorist penetration. But we are doing more than just adding staffing. We are adding sensors and other technology that assist in detecting illegal crossings along both our northern and southern borders, including Remote Video Surveillance (RVS) systems. These RVS systems are real-time remotely controlled force enhancement camera systems, which provide coverage along the northern and southern land borders of the United States, 24 hours per day, 7 days a week. The RVS system significantly enhances the Border Patrol's ability to detect, identify, and respond to border intrusions, and it has a deterrent value as well.

There are currently 238 completed Remote Video Surveillance (RVS) sites in operation; 170 along the southwest border and 68 along the northern border. An additional 224 installations are in progress.

C-TPAT
One thing that was apparent as we confronted post 9-11 security issues was that support of the private sector was essential. A comprehensive border security strategy for our nation and for global trade simply had to include the private sector, because they are the ones who own the supply chain. We also knew that we could offer something to the private sector in return for increased security: expedited processing at the borders - air, land, and sea.

From those realizations, the Customs-Trade Partnership Against Terrorism was born as an idea in November 2001. As many of you know, C-TPAT is a partnership between Customs and Border Protection and the trade community to implement security standards and best practices that better protect the entire supply chain against exploitation by terrorists - from foreign loading docks to our ports of entry. In exchange, companies that meet our security standards get the fast lane at and through our borders.

C-TPAT was launched in January 2002. Within one year, in January 2003, we had over 1,600 companies participating in the program. Today, we have over 4,300 companies participating.

That number demonstrates that many businesses recognize their role in, in fact, their responsibility to take part in, security efforts. Even more importantly, it indicates that because of C-TPAT, trade is a lot safer from terrorist exploitation.

Presently, BCBP has initiated the validation process for over 130 C-TPAT certified companies. These companies are in different stages of their validation process with 100 scheduled to be complete by November 2003. Validations serve to determine the accuracy and effectiveness of the companies' security profiles as applied to their supply chain, both foreign and domestic.

BCBP is also coordinating with other agencies to look at opportunities to leverage resources and technology, and to develop policy that supports a comprehensive and coordinated approach to cargo security. For example, TSA and BCBP are looking at the operational feasibility of coordinating TSA's Known Shipper program to BCBP's C-TPAT initiative in the air cargo environment. Although these programs have distinct goals and objectives, information on shipper legitimacy gained through Known Shipper may help to strengthen C-TPAT's foreign and domestic supply chain security validation process ; conversely, C-TPAT certification helps ensure a greater degree of in-transit security and integrity as cargo is transported through the supply chain.

FAST
Another important post 9-11 initiative – one that draws upon the Customs-Trade Partnership Against Terrorism - is the Free and Secure Trade, or FAST program along our northern border with Canada. The way the FAST program works is that importers, commercial carriers (i.e., trucking companies), and truck drivers enroll in the program and, if they meet our stringent mutually agreed to security criteria, they are entitled to expedited clearance at the border.

Participation in our C-TPAT program is required for those who want to bring goods from Canada into the U.S. through the FAST lane and for the trucking company also. Indeed, the truck drivers themselves must be vetted as well for security.

FAST is operational in 28 lanes at six major commercial crossings along the northern border. We are about to begin implementing a pilot FAST program with Mexico on our southern border. On October 27, 2003, a dedicated FAST lane will become operational in El Paso. If adequate security is achieved with this FAST pilot project at El Paso, particularly against drug smuggling, I expect that FAST will be expanded to other major commercial crossings on our border with Mexico.

CSI
In the wake of 9-11, we realized that we had to begin pushing our zone of security outward. We wanted our borders to be our last line of defense against the terrorist threat, not our first line of defense. This is the "extended border," defense-in-depth concept, or what Secretary Ridge has aptly called a "Smart Border."

C-TPAT and FAST are extended border initiatives. Another extended border, smart border initiative, is CSI, the Container Security Initiative. National security experts consider the vulnerability of cargo containers to terrorist exploitation to be chilling, especially the prospect that one of the seven million containers shipped to the U.S. annually could conceal a weapon of mass destruction.

Given this vulnerable system, we needed to develop and implement a program that would enable us to better secure containerized shipping - the most important means of global commerce - against the terrorist threat. That program, which I proposed in January 2002, is CSI.

Under CSI, BCBP has entered into bilateral partnerships with other governments to identify high-risk cargo containers and to pre-screen them before they are loaded on vessels destined for the United States. It involves stationing small teams of U.S. Customs, now BCBP, personnel at the foreign CSI ports to identify and target containers that might pose a potential terrorist security risk.

The initial goal was to implement CSI at the top 20 ports in terms of the volume of cargo containers shipped to the United States, because those top 20 ports alone account for two-thirds, nearly 70%, of all containers shipped to U.S. seaports, and because most cargo shipments from high-risk countries are transshipped through these ports.

Today, governments representing 19 of those top 20 have signed up to implement CSI. And we have actually already implemented CSI at 16 foreign seaports. These ports include 9 in Europe (Antwerp, Rotterdam, Le Havre, Felixstowe, Genoa, La Spezia, Bremerhaven, Hamburg, and Gothenburg, Sweden); 4 in Asia (Singapore; Hong Kong; Yokohama, Japan; and Pusan, Korea); and the 3 Canadian ports of Vancouver, Montreal, and Halifax.

With nearly all of the top 20 are on board, we have begun Phase 2 of CSI, where we are expanding beyond the top 20 to additional foreign ports.

24-Hour Rule
A key to CSI's success, and the success of other Smart Border initiatives, is advance information. For example, in order to identify high-risk containers before they leave foreign ports, we need the manifest information before the cargo is put on board those ships.

Last fall, I issued a rule, the so-called "24-hour rule," that required transmission of complete manifest information for sea cargo to U.S. Customs 24 hours in advance of lading. Through that rule, BCBP is getting information that allows us to identify containers we need to take a closer look at - ones that raise security concerns.

Trade Act Proposed Regulations
And U.S. Customs and Border Protection has worked closely with the trade community to develop regulations that will require advance electronic information for the other modes of transportation - commercial trucks, rail, and air cargo.

Our proposed regulations were published in late July. When final, these regulations, like the 24-hour rule, will permit better risk management for the terrorist threat, before cargo shipments reach the U.S. border ports of entry.

Advance Passenger Information
Advance information is also critical to our efforts to identify individuals who may pose a security threat. Before September 11th, 2001, air carriers transmitted some advance information on international airline passengers to U.S. Customs on a voluntary basis. In late 2001, we sought, and Congress enacted, legislation that would make the transmission of advance passenger information mandatory.

U.S. Customs, now BCBP, implemented that legislation, and moved aggressively to achieve compliance from all air carriers as soon as possible. In less than a year, we achieved a 99% compliance rate. BCBP, through our combined customs and immigration authorities, uses that information to evaluate and determine which arriving passengers pose a potential terrorist risk.

NEXUS and SENTRI
Since 9-11, BCBP has pressed forward with initiatives with both Canada and Mexico that enable us to focus our resources and efforts more on high-risk travelers, while making sure those travelers who pose no risk for terrorism or smuggling, and who are otherwise legally entitled to enter, are not delayed at our mutual borders.

Our program with Canada is the NEXUS program. Under NEXUS, frequent travelers whose background information has been run against crime and terrorism indices are issued a proximity card, or SMART card, which allows them to be waived expeditiously through the port of entry. NEXUS has expanded to eight crossings on the northern border, including ports of entry at Blaine, Washington; Buffalo; Detroit; and Port Huron. Approximately 50,000 people have enrolled in the program so far.

With Mexico, we have the SENTRI program. Like NEXUS, SENTRI is a program that allows low-risk travelers to be processed in an expedited manner through a dedicated lane at our land border with less delay. SENTRI is currently deployed at 3 southwest border crossings: El Paso, San Ysidro, and Otay Mesa.

US VISIT
Another new tool for border security and enforcement, with respect to travelers entering and exiting our country, is the US-VISIT program currently being developed. US VISIT will capture point of Entry and Exit information by visitors to the United States. This system will be capable of using information, coupled with biometric identifiers, such as photographs and fingerprints - to create an electronic check-in/check-out system for people who come to the United States to work or to study or visit. Through US-VISIT, all border officers at air and some sea ports of entry will have the capability to access and review the visa information, including the photograph, during a visa holder's entry into the United States. BCBP is working with the US-VISIT office in developing the training and implementation facets of the US-VISIT system.

National Targeting Center
One of the greatest challenges - if not the single greatest challenge - we face in the war on terrorism is determining who and what to look at. BCBP has broad power to question and search every person, vehicle, and shipment of goods entering the U.S. How do we sort out who and what to look at, question, and inspect?

In October 2001, U.S. Customs established a National Targeting Center - using automated risk management for the first time at the national level - to help us meet the challenge of identifying potential terrorist threats to our country. Remember, our priority mission is detecting and preventing terrorists and terrorist weapons from entering our country. Our National Targeting Center in Virginia is an essential tool for carrying out our priority mission.

The Center gathers the advance electronic information I talked about, and uses our Automated Targeting System for passengers and cargo to identify what is high risk - to identify potential terrorists and terrorist targets for follow up at U.S. ports of entry and CSI ports.

The National Targeting Center has given us the ability to locate and eliminate terrorist threats before they become a reality, and it did not exist on 9-11.

Comprehensive Strategy to Address Nuclear and Radiological Terrorism
One of the greatest terrorist threats is the threat of nuclear and radiological terrorism - nuclear devices and RDDs, or so-called dirty bombs. This threat, particularly the threat of nuclear devices, is largely an external one - meaning someone would have to bring the device across our borders and into this country.

This past year, BCBP developed a Comprehensive Strategy for addressing that threat. Our plan focuses on several components, one of which is maintaining a secure border at our ports of entry that is capable of detecting potential nuclear and radiological devices.

BCBP's current deployment of radiation detection technology includes: over 8,000 personal radiation detectors, or PRDs, over 300 radiation isotope identifiers; and over 60 radiation portal monitors deployed. It should go without saying that we must and are continuing to steadily increase our deployment of radiation detection technology, but what we have today is a vast improvement over what we had on 9-11.

Chemical/Explosive Detection Dogs
Another terrorist threat is the threat of explosives and chemicals that could be used as terrorist weapons coming across our borders. For years, BCBP has used canines to detect illegal drugs and even cash, but after 9-11, we began training dogs to detect explosives and chemical weapons of mass destruction. These talented dogs are an important resource in our antiterrorist efforts. And on 9-11, this resource did not exist - we had no chemical/ explosive detection dogs at our ports of entry.

Conclusion
The efforts I have talked about today are the result of this Administration, this Congress, and the vision and leadership of the Secretary of the Department of Homeland Security, Tom Ridge. The creation of DHS and the unification of the border agencies within BCBP are among the most significant of those efforts. They enable us to have a more comprehensive and effective strategy as we press forward with our many initiatives for protecting and securing America's borders.

Although I have only covered some of our efforts since 9-11, I hope I have given you a sense of where we are today, as compared with where we were two years ago. We have made great strides. America is safer. Our borders are more secure against terrorists and their weapons of terror than they were two years ago.

But our work is far from finished. There is much more to do. And rest assured, I and all the men and women of U.S. Customs and Border Protection are continuing to push full steam ahead. We are also working hard to become the truly unified agency that we know we can and should and will be - so that we can be the more effective, more efficient agency that the American people expect and deserve.

Mr. Chairman, let me conclude by noting the important working relationship BCBP has forged with this Subcommittee. I have had the pleasure of meeting and talking with many of this Subcommittees' members, including you, Mr. Chairman, on a number of issues. I am very impressed with this Subcommittee's concern for, and expertise in, port and border security. As an example, Congressmen Shadegg and Souder and I have been in regular contact on a border security matter of mutual concern and we have made good progress working together. I know from my staff that the staff-to-staff relationship between BCBP and this subcommittee is, as it should be, very strong. This is critically important as we move forward and identify legislative and budgetary initiatives that will further protect and secure our nation.

Thank you. I would be happy to answer any questions you may have.