The Customs and Border Protection’s (CBP) Global Business Identifier (GBI) program is an innovative program that’s initiative formed from the challenges associated with the Manufacturer/Shipper Identification Number (MID) and its lack of data quality and uniqueness. CBP hopes the new program will give them better visibility into the supply chain and result in products moving through customs faster.
What Is the GBI Program?
The GBI program is designed to improve the accuracy and efficiency of data associated with international trade. It will allow businesses to use one or more of three existing identifiers instead of using a MID. Because these options are already associated with valuable data, the CBP will have access to more information about participants.
Data Quality & Information Efficiency
The GBI program will correlate a data-rich identifier with each business entity to eliminate simplistic and inconsistent MIDs. The information will be accurate, up-to-date. This system will provide additional information about manufacturers by authoritative organizations so trade data is more extensive and reliable. With more reliable and actionable data, transactions and compliance will be easier to track.
Enforcement & Risk Assessments
With more data associated with each identifier, CBP will be able to better pinpoint high-risk shipments. They’ll have a clearer picture so they can improve data quality and efficiency for identification, enforcement, and risk assessment. This targeted approach gives CBP greater visibility into increasing complex supply chains to facilitate legitimate trade and allows the trade community to manage and update information captured by their global entity.
The Purpose of the GBI Program
The need for the GBI program stems from shortcomings in the current system. MIDs are user-created numbers that aren’t associated with background information on business entities, so they’re essentially meaningless.
Because the GBI program will use pre-existing identifiers that provide information about the legitimacy of a business, the identifiers will include valuable data about a company’s risk profile, financial transparency, and legal standing.
The GBI program will also improve compliance and security. Companies can’t simply make up the identifiers used with GBI. They’re assigned by an outside authority with documented information about a business.
This data will facilitate more accurate tracking and monitoring of global business activities. CBP will be able to better detect and prevent fraud, smuggling, and other illegal activities. CBP can also make more accurate risk assessments and compliance checks, which will improve overall supply chain security.
GBI vs. MID
The GBI program is a change from the current MID program in several significant areas:
- Improved customs coordination: The MID doesn’t provide useful data for any other organization involved in customs. However, the GBI program can be used by other law enforcement organizations to drive effective risk identification across the U.S. government.
- Supply chain security: The MID doesn’t provide any actionable information about the company using it. The GBI will help identify and verify supply chain participants, which will increase the visibility and security of the supply chain.
- Data Quality and Accessibility: With MIDs, there is no associated, verifiable data. The GBI program taps into existing high data quality and better accessibility, so the CBP has more reliable and actionable trade information.
The Types of Identifiers Used in the GBI Initiative
When businesses participate in the GBI, they can provide one or more of the following identifiers in place of MIDs. The more identifiers a company provides, the richer the data source that’s attached to it.
Legal Entity Identifier (LEI)
The LEI is a 20-character alphanumeric code that uniquely identifies legal entities participating in financial transactions. It provides a standardized approach to identifying entities globally, enhancing transparency, and reducing risk in the financial sector. LEIs are particularly useful for regulatory reporting and financial disclosures so business entities are accurately identified across different jurisdictions.
Data Universal Numbering System (DUNS)
The DUNS number is a unique nine-digit identifier for businesses, assigned and maintained by Dun & Bradstreet. It is widely used in the business community and helps establish a business credit file, which can be used for financial transactions, credit decisions, and supply chain transparency. The DUNS number is recognized globally and is a key component in managing business relationships and transactions.
Global Location Number (GLN)
The GLN provides a unique 13-digit identifier for the physical locations of businesses. This identifier promotes precise tracking and management of locations involved in the supply chain, from manufacturing sites to distribution centers. The GLI helps improve logistics, inventory management, and regulatory compliance by providing a clear and consistent way to reference business locations.
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How We Can Help You With Your Business
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