HAP International announced today that, following a successful technical assessment of its TRACE ID program by U.S. Customs and Border Protection (CBP), both organizations are moving toward a formal Memorandum of Agreement (MOA). This milestone underscores CBP’s commitment to adopting innovative, data-driven tools that improve trade facilitation and risk management while strengthening compliance across global supply chains.
The development follows the success of CBP’s Global Business Identifier (GBI) test initiative, which explores new methods to better identify and manage risks associated with international trade. TRACE ID aligns directly with this mission, providing CBP with shipment-level traceability data that allows for more accurate and timely risk assessments of goods and suppliers before they reach U.S. ports.
Through this collaboration, CBP gains enhanced visibility into supply chains — from manufacturers to importers — while legitimate businesses benefit from smoother, more predictable trade operations.
Empowering Smarter Trade Decisions
TRACE ID is an advanced traceability platform that delivers product- and shipment-level data on suppliers and their associated documentation, well before goods arrive at the border. This early insight enables CBP to refine its targeting algorithms, focusing enforcement efforts on higher-risk shipments while accelerating the clearance of low-risk, compliant cargo.
For importers, the benefits extend beyond regulatory compliance. The platform’s data-driven transparency helps companies protect inventory, prevent disruptions, and demonstrate due diligence in supply chain integrity. By strengthening visibility from source to shipment, TRACE ID allows businesses to better anticipate and mitigate compliance or security risks.
“TRACE ID is an important step forward for both regulators and the trade community,” said Andre Raghu, Chief Executive Officer of HAP International. “By combining verified traceability data with supplier engagement and document integrity, we are enabling CBP to make more informed decisions while giving importers a powerful tool to demonstrate low-risk supply chains and protect their operations.”
Raghu emphasized that TRACE ID is not just a compliance technology — it represents a collaborative approach to rethinking how data, partnerships, and technology can build trust between the private sector and regulatory agencies.
Part of the Broader TRACE™ Program
TRACE ID operates within HAP International’s TRACE™ (Trusted Records and Compliance Evaluation) framework — a broader, multi-industry initiative that integrates digital traceability with human engagement and operational transparency. Unlike standalone traceability platforms, TRACE™ combines on-the-ground supplier validation with digital verification to create a robust compliance ecosystem.
The TRACE™ program is designed to:
- Enhance compliance readiness through structured training, benchmarking, and continuous improvement.
- Reduce operational burdens by standardizing compliance activities across trading partners and minimizing redundant efforts.
- Build supplier commitment at the source via verifiable records of traceability, document integrity, and audit transparency.
- Strengthen competitive advantage by positioning participants as trusted, low-risk partners to regulators and global import authorities.
This model is particularly relevant in today’s evolving trade environment, where supply chain transparency has become a regulatory imperative. From forced labor prevention to environmental accountability, importers are facing increasing scrutiny over their sourcing practices. TRACE™ helps companies proactively address these challenges by providing verifiable, standardized, and easily shareable compliance data.
Successful Proof-of-Concept with CBP
The recent Proof-of-Concept (PoC) phase marked a significant milestone for TRACE ID. During this evaluation, CBP conducted a detailed technical and operational assessment of how TRACE ID’s traceability data could enhance the agency’s ability to identify and manage trade risk in real time.
The PoC demonstrated that TRACE ID’s shipment-level data provided valuable early insights into supplier relationships and documentation integrity, enabling more accurate, risk-based decisions. Participants from the trade community who joined the evaluation were able to realize immediate benefits, such as:
- Improved compliance accuracy through validated supplier information.
- Streamlined customs processes by reducing delays and documentation issues.
- Enhanced reputation as proactive, low-risk trade partners.
The success of this proof-of-concept has positioned TRACE ID as a potential cornerstone of CBP’s modernization efforts, advancing the agency’s long-term vision for data-driven trade facilitation and enforcement.
A Step Toward a Memorandum of Agreement
Building on this success, CBP and HAP International are now working toward a formal Memorandum of Agreement (MOA). Once established, the MOA will serve as a framework for expanding TRACE ID’s integration within CBP’s operational systems and encouraging broader participation from the trade community.
The agreement will also help standardize how traceability data is shared, validated, and used to inform risk models — marking a new era of public–private collaboration in trade compliance.
“Our goal is to make compliance more transparent, efficient, and collaborative,” added Raghu. “By partnering with CBP, we’re helping to set a new benchmark for how technology can be used not only to enforce regulations but also to reward good actors and streamline trade.”
Looking Ahead: Building the Future of Trusted Trade
As global trade continues to evolve, the need for accurate, real-time data has never been greater. Initiatives like TRACE ID represent a paradigm shift in how governments and businesses can work together to achieve shared goals: safer supply chains, faster clearance times, and greater economic resilience.
By combining verified traceability data, collaborative supplier engagement, and a scalable digital infrastructure, HAP International’s TRACE ID is redefining what it means to build trust in trade.
With CBP’s continued support and the upcoming Memorandum of Agreement, TRACE ID is poised to become a model for next-generation trade facilitation—one that balances regulatory oversight with business agility, and compliance with innovation.
