Understanding 10+2 Requirements

The Customs and Border Protection (CBP) agency's Importer Security Filing (ISF) regulation has become commonly known as the 10+2 initiative because it requires importers and vessel-operating carriers to provide trade data for non-bulk cargo shipments arriving into the United States via ocean.

Below are 10 abbreviated ways to comply with the new regulations. For more information regarding each tip, please visit Inbound Logistics.

1. Remember that 10+2 pertains to goods transiting through the United States, not just imports.

2. Be aware of the "flexible enforcement" loophole.

3. Understand who is responsible for filing the data.

4. Engage your carriers.

5. Don't wait until the last minute.

6. Know what data can be amended.

7. Learn how to file electronically, or engage a partner to do it for you.

8. Transition now toward electronic filing.

9. Know the penalties for compliance failure.

10. Get help and the most current information on 10+2 regulations from CBP.

Insourcing Global Trade Management

Most importers and exporters are careful to manage inventory, tariffs and compliance. In a recent survey of trade consultants conducted by Integration Point, every respondent (100%) indicated that their client companies perform denied party screening and recognize foreign trade zones. However, most outsource this work to consultants, freight forwarders or other third party service providers. The cost of internal automation and process control has been too high for most importers and exporters to do on their own. Acquiring and maintaining a trade management system and data has been too much of a burden for smaller companies to adopt on top of their core business needs within manufacturing, sales and marketing and supplier relations.

Now however, with increasing government fines and liability being imposed, companies often don't want to entrust a third party for all compliance requirements. In a recent case, Cabela's, an outdoor equipment outfitter based in Nebraska, agreed to pay a $680,000 civil penalty to settle allegations that it committed 152 violations of the Export Administration Regulations. The law stipulates that even jail time may be imposed on offenders. As such, compliance failure is just too risky for any sized importer and exporter.

To avoid such liabilities, importers and exporters must be able to clearly prove that they applied "reasonable care" to all traded goods. While third party (outsourced) solutions can do this, many importers and exporters want tighter control of the process and paperwork. For example, every respondent in the Integration Point survey indicated that they want to store product certificates for future reference, even if the compliance checks are being done by a third party.

To view the full article, visit Industry Week at http://www.industryweek.com/articles/insourcing_global_trade_management_18650.aspx?Page=2&SectionID=4?ShowAll=1

Why Comply?

The US Government is taking unprecedented steps to protect national security, and nowhere is the impact of that effort felt more than at the country's entry points. For global shippers, this heightened security consciousness presents myriad challenges when it comes to clearing goods through US Customs and Border Protection (CBP), which requires more and allows for less than ever before.

Failing to understand and comply with the latest CBP requirements can cost shippers and importers serious time and money. A spot inspection can delay the movement of material for several hours; a hold can delay it for several days.

The good news is that CBP offers new tools and programs to help shippers and importers meet its new, stringent requirements. If shippers had to choose one action that would help expedite the movement of goods through Customs, it's to become certified under the Customs-Trade Partnership Against Terrorism (C-TPAT) program.

CBP launched the C-TPAT initiative in an effort to help it work more closely with businesses to improve border security. To qualify for C-TPAT certification, shippers and importers must meet a variety of requirements in several categories, ranging from business practices and record-keeping to facility security and developing working relationships with supply chain partners on security issues.

To understand more about the latest CBP programs and requirements, view the full article on page 36 in the February 2009 edition of the Journal of Commerce.

Burden of Proof

On January 30, the Consumer Product Safety Commission took a half step back in its enforcement of the Consumer Product Safety Improvement Act of 2008. Importers, domestic manufacturers and retailers felt they had an 11th-hour reprieve from a confusing law that threatened to put some companies out of business.

With less than two weeks to go before the deadline, commissioners voted to delay for one year enforcement of a section of the law that requires companies to certify that their products comply with the law's lead and phthalate standards, which must be backed up with laboratory tests.

For the trade industry, there was actually little to cheer. While companies are spared the paperwork burden, they still have to comply with the law's lead and phthalate limits for children's products. Beginning on February 11, an item with lead levels of greater than 600 parts per million or 0.1 percent of certain phthalates will become a banned hazardous product.

The full article can be found on page 24 in the February 9, 2009 edition of The Journal of Commerce.

DHS Confirms No Delay for "10+2"

The Importer Security Filing regulation went into effect on Monday as scheduled. The Obama administration last week said it’s taking a sweeping look at all leftover Bush administration regulations, raising questions about the status of the pending ISF rule. But the Department of Homeland Security removed any doubt in a statement, saying it would not hold up the new information requirements on maritime cargo.

The 10 data requirements from importers are due 24 hours before vessel loading overseas and the two carrier requirements at various intervals thereafter. The interim final rule is known as “10+2.”

To view the full article, visit http://www.americanshipper.com/NewWeb/News/shippers-newswire/logistics/122028--dhs-confirms-no-delay-for-10+2.html

USDA eases Lacey Act timelines

The U.S. Department of Agriculture's Animal and Plant Health Inspection Service on Thursday said it is extending the enforcement deadlines for importers to submit wood product declarations to comply with last year's amendments to the Lacey Act. The agency is extending the length of each enforcement period from three to six months, as requested by a group of lawmakers, and providing a more definitive list of products that are in each phase of enforcement. Last fall, the Agriculture Department offered to delay enforcement of the declaration by making it voluntary for companies to file a paper-based form until at least April 1, when an electronic system is expected to be ready to process submissions. After that time, enforcement of products would be phased in.

To learn more about the details of the Lacey Act, visit American Shipper at http://www.americanshipper.com/NewWeb/news_page_SNW2.asp?news=121812

2 Main Concerns for Importers & Exporters

Integration Point Inc.'s CEO, Tom Barnes, explains: "In the current global economy and political environment, there are two main concerns facing importers, exporters and the vendors who support them. The first is managing cost. The second is remaining competititve. In global trade terms, savings can be accomplished by managing inventories more carefully, reducing the time of transport, ensuring proper customs paperwork and minimizing tariffs. These opportunities require planning by the importer or exporter. They need comprehensive, up-to-date information and easy-to-use tools to make quick, accurate decisions as well as to increase visibility into their supply chain. Information must come from numerous third party sources and be compiled in a comprehensive manner. The collaboration of the various trade participants and effective tools that support the multiple languages of global trade are critical areas in which I expect to see accelerated progress in 2009."

The full article can be found in The Journal of Commerce 2009 Annual Review and Outlook.

10 + 2 Importer Security Filing

10+2 is often viewed initially as "my broker will do it" or similar comment by Importers. The filing process may not be straightforward and may be challenging, especially for small-medium enterprises (SMEs) that are trading partners. This includes importers, forwarders, customs brokers and others.




To learn more on the key issues of security filing, view the full article in SupplyChainBrain at http://www.supplychainbrain.com/content/nc/general-scm/sc-security-risk-mgmt/single-article-page/article/10-2-importer-security-filing-its-about-more-than-filing-10-data-elements/