GAO Report: Guam Customs Agency Faces Operational Challenges with Paper-Based Systems

GAO Report Highlights Operational Limits at Guam Customs Agency

A new report from the Government Accountability Office (GAO) has identified critical operational challenges facing Guam’s Customs and Quarantine Agency (CQA), raising concerns about efficiency, accountability, and border security in the U.S. territory. The findings come at a time when Guam serves as a strategic shipping and military hub in the Indo-Pacific, making the functionality of its customs operations a matter of public and national interest GAO Report.

According to the GAO, one of the primary issues limiting CQA’s operations is its reliance on paper-based records for customs transactions. Agency officials stated that this outdated system reduces efficiency, compromises data reliability, and may lead to revenue losses. While funding was secured in August 2025 to implement an automated customs system, the current manual processes continue to hinder performance. Additionally, equipment shortages exacerbate these challenges. For the past three years, CQA has operated with only one functional x-ray machine, forcing staff to conduct time-intensive manual inspections of cargo, further delaying operations GAO Report.

Beyond operational constraints, the GAO report examines Guam’s unique position outside the U.S. customs territory, which allows the territory to set its own tariffs on imports. The CQA funds its operations through fees collected from incoming passengers and cargo imports, but a decline in tourism since 2020 has reduced revenue, straining the agency’s budget. To address these systemic issues, the GAO evaluated three alternative customs models for Guam: a federalized model where Guam joins the U.S. customs territory under U.S. Customs and Border Protection (CBP); a hybrid model where Guam remains outside the territory but CBP administers customs; and a modified version of the current model with additional funding through higher passenger or cargo fees GAO Report.

Each alternative presents distinct considerations. Under the federalized model, federal law would need amendment, and funding for CBP operations in Guam would have to be identified. Security concerns also arise, as CQA officials noted that CBP would not inspect cargo from the U.S. customs territory, potentially increasing the risk of illegal drugs entering Guam, where most smuggling originates from other U.S. areas. Furthermore, Guam’s ports would require upgrades to meet federal security standards. Economically, joining the U.S. customs territory would subject imports to U.S. tariffs, likely raising goods prices on an island with limited manufacturing. Under the current model with increased fees, tourism—a vital economic driver—could decline due to higher costs for travelers, reducing revenue further GAO Report.

The GAO’s analysis underscores the broader implications of these operational and structural challenges. Inefficient customs processes could affect border security, impacting both local safety and national interests given Guam’s strategic role. Economically, any changes to the customs model could alter the cost of living and tourism revenue, critical to the island’s economy. The report provides a foundation for policymakers to weigh legal, security, and economic factors in addressing CQA’s limitations GAO Report.

While the source material offers a detailed examination of CQA’s operational issues and potential solutions, it lacks specific data on the scale of revenue losses or delays caused by manual processes. Further reporting could expand on stakeholder perspectives beyond agency officials to include local businesses or residents affected by these inefficiencies. Nevertheless, the GAO’s findings provide a critical starting point for understanding the challenges facing Guam’s customs operations.

Why this is uncovered

This story has likely been overlooked by mainstream media due to its focus on a niche issue within a U.S. territory, which often receives less national attention compared to domestic or global crises. Despite its significance for border security and economic stability in Guam—a key strategic hub—the technical nature of customs operations and alternative models may not align with broader news cycles. The public interest lies in how these limitations could impact national security and local livelihoods, warranting greater coverage.