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Transcript of Cargo Smart Workshop - BPE 10+2 Presentation 10.7.08
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8/3/2019 Cargo Smart Workshop - BPE 10+2 Presentation 10.7.08
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Beth Peterson, .
10+2 Customer Co-Design Workshop
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Beth PetersonEnterprises, Inc.
Agenda
SAFE Port Act
10+2 the known, the pretty sure and the
unknown Trade Support Network efforts to date
Data collection
os o + Other import legislation to take note of
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth PetersonEnterprises, Inc.
About BPE
Global trade consulting for import, export and security.
Online training courses.
Experience
Over 21 years in global logistics, supply chain and.
Service Provider, licensed customs broker.
Industry, US import operations.
ec no ogy, pro uc s ra egy an mar e ng. Volunteer, government and trade association.
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth PetersonEnterprises, Inc.
About You
.
Customs and Trade Partnership Against TerrorismC-TPAT .
Importer Self Assessment (ISA).
10+2.
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth Peterson, .
SAFE Port Act
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Beth PetersonEnterprises, Inc.
October 2006 SAFE Port Act
Authorization to expand the Container Security Initiative(CSI).
Strengthen physical security measures at US ports through theuse of technology.
Establishes container minimum security requirements. o ca on o - .
Requires CBP to utilize 3rd Party C-TPAT Validators.
Opens C-TPAT up to multiple parties (e.g. 3PLs).
Transportation Worker Identification Credential (TWIC) Requires the development of a trade resumption plan.
Re uires 100% car o scannin .
Improves the Automated Targeting System (ATS) = 10+2.
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth Peterson, .
Importer Security Filing
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Beth PetersonEnterprises, Inc.
Its Really Not 10+2
mpor er equ remen s
10 Data Elements
1. Manufacturer name and address
arr er equ remen s
2 Data Sets1. Vessel stow plan
. e er name an a ress
3. Container stuffing location
4. Consolidator (stuffer) name andaddress
.
Bill of Lading
Filer Code
Filing Number
Bond
5. Buyer name and address
6. Ship to name and address
7. Importer of record number
8. Consignee number
9. Country of origin of goods
10. Commodity HTS number (6 digit)
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth PetersonEnterprises, Inc.
How is the ISF Different Than a Customs Entry?
Importer Requirements10 Data Elements
1. Manufacturer name and address Manufacturer info is often not known and is
2. Seller name and address
3. Container stuffing location
4. Consolidator (stuffer) name and
v ewe as con en a y se er
Available in a typical P.O.
Not recorded in current entry documents
address
5. Buyer name and address
6. Ship to name and address
Available in a typical P.O.
Could vary depending on the transaction type(e.g. FOB vs. DDP)
. Importer of record number8. Consignee number
9. Country of origin of goods
Manufacturer information, product genealogyis often difficult to trace accurately
Often missing or incorrect w hen P .O.s arewritten; t icall manuall corrected b
. ommo ty num er Broker at the time of entry filing
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth PetersonEnterprises, Inc.
ISF Realities
.
Importer of Record is responsible for filing. Can appoint agent (such as customs broker) to perform filing
on its behalf.
CBP will not regulate who is authorized.
Not all service providers plan on offering filing service.
Data elements will be filed through ABI or AMS,and eventually ACE.
merchandise.
Suret bond re uired for the ISF.
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth PetersonEnterprises, Inc.
CBP Prototype - ATDI
Focus is on natural aggregation points to leverage in-place business models and require minimal systemprogramm ng.
No special data format required.
CBP is simply an additional recipient for data alreadybeing passed among parties (minimize burden).
Data can be provided post departure
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth PetersonEnterprises, Inc.
CBP Prototype Secure Freight Initiative
.
Majority are providing data post lading or postde arture and data is from multi le sources.
Many are large companies who have and IT
department and funds to support participation. Data is a one-way feed to CBP.
Data provider does not receive any messages from.
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth PetersonEnterprises, Inc.
Hot off the Press
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth Peterson, .
10+2 The Known, The Pretty Sure and The
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Beth PetersonEnterprises, Inc.
The Known
.
RO/RO and Break-Bulk are exempted from atimin ers ective.
Bulk is exempted.
There are several importers IE, TE = 7512 Filer
FTZ = 214 Filer
Customs entr = Im orter
IT = Importer
Amendments are required up until arrival.
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth PetersonEnterprises, Inc.
The Known
.
There will be an ISF confirmation.
message.
ACE M1 will include 10+2. File at the lowest B/L level (Master or House).
Phased in enforcements.
ransac on se s are a : http://www.cbp.gov/xp/cgov/trade/automated/automat
ed_systems/sf_transaction_sets/
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth PetersonEnterprises, Inc.
Pretty Sure Of
.
60-90 day implementation period.
ID.
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth PetersonEnterprises, Inc.
The Unknown
.
What the cut-off for amendments will be.
.
If there will be any account level processing.
What the enforcement phase in period will be.
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth PetersonEnterprises, Inc.
The Unknown
that have been submitted. CBP ma be lookin at issuin Do not Load
messages for ISF.
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth Peterson, .
Trade Support Network Efforts to Date
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Beth PetersonEnterprises, Inc.
TSN Activities
,
consensus of trade committee representativeswas submitted to CBP.
July 22, 2008: Questions on technical datarequirements published by CBP were created and
representatives. CBP requested that discussionnotes were not published.
August 2008 Committee technical dataquestions were discussed by the COAC and
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth PetersonEnterprises, Inc.
TSN Commitment
implementation of the ISF. To communicate as clearl and often as ossible
regarding the technical requirements.
To represent all members of the tradeu y.
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth Peterson, .
Data Collection
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Beth PetersonEnterprises, Inc.
A Cross-Functional Approach
Gathering Dataat Origin
Organizing DataCentrally
Filing and ManagingAdjustments
Supplier contact
Collecting, validating
Leverage technology
Multiple origin 3PLs
Connecting the dots
Process: timing of
Trust - Broker
Under bond
Leverage security filing,
Broker
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth PetersonEnterprises, Inc.
What Shipments Will Be Issues
.
Prototypes and R&D materials.
.
Manifest discrepancy (incorrect goods).
Trade shows. Vendor managed inventory shipments.
Shipment ownership transferred in transit.
Supplier consolidation shipments (multiplesuppliers, single manufacturer).
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth Peterson, .
Cost of 10+2
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Beth PetersonEnterprises, Inc.
Potential Costs of 10+2
No load messages. Non-compliance = no unloading at destination.
Additional inspections.
Carrier schedule and capacity issues.
involved.
Extra inventory.
.
Costs of rerouting shipments, including shipments thatnow transit the U.S.
rem um re g c arges.
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth PetersonEnterprises, Inc.
Potential Costs of 10+2
Predicted waiting time charges at container yards(estimated at $40 per hour per container).
Costs to secure containerized cargo.
Collection fees.
Filin fees.
U.S. Customs bond.
Connection charges, etc.
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth PetersonEnterprises, Inc.
Calculating Inventory Carrying Cost
Purdue University: Each extra day adds 0.8% ad valorem to the cost of
goods.
Each additional day in ocean transit reduces the
probability that a country will export to the U.S. by 1%for all goods and 1.5% for manufactured goods.
Adding a single day to transit can only be offset
planning.
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth PetersonEnterprises, Inc.
Other Factors to Consider
the additional transaction volume? Carriers ma not want to become stora e
facilities, may require proof of filing prior toacceptance of freight.
r w ur y r y r y rthe opportunity for containers to be tampered withwhile sitting for an additional days.
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth PetersonEnterprises, Inc.
Bond Requirements
prior to entry. Liabilit attaches based on conditions that are
beyond the importers control.
Affords CBP a general license to imposeu r v rinfractions.
It bestows u on CBP officials virtuall unfettered
discretion because the ability to penalizeimporters.
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth Peterson, .
Other Items to Take Note Of
B th P t
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Beth PetersonEnterprises, Inc.
Worldwide Security Programs
Country Program Name
WCO SAFE Framework of Standards (SAFE)US Customs Trade Partnership Against Terrorism (C-TPAT)
CA Modernized Partners in Protection (PIP)
JP Authorized Ecnomic Operator (AEO)
NZ Secure Exports Scheme
SG Secure Trade Partnership (STP)
EU (27) Authorized Ecnomic Operator (AEO)
Jordan Golden ListMX Alliance for Secure Commerce
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
B th P t
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Beth PetersonEnterprises, Inc.
Lacey Act (16 USC 3371)
ew mpor ec ara on or p an s an p an pro uc s.
1. Genus and species of any plant contained within the shipment,2. Plant species country of origin (i.e., the country where the plant
was arves e , cu , ogge , or remove
3. Value of the importation and quantity (including the unit ofmeasure) of the plant/plant product.
,trees, roots, seeds, parts, and products constructed thereof.
May potentially include all wood and
furniture, textile and apparel productsof rayon, paper products, and many
plant components.
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth Peterson, .
Closing
Beth Peterson
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Beth PetersonEnterprises, Inc.
Final Thoughts
a real prototype that covers the full range ofcompanies involved in the supply chain.
na u e s w now you s ave me olet Congress know how this will impact you:
Cost Prototype
Bond
Penalties
Etc
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
Beth Peterson
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Beth PetersonEnterprises, Inc.
BPE Website for You!
. .
User id: Cargosmart Password: 10+2n0w
2008 by Beth Peterson Enterprises, Inc. Proprietary and Confidential
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Beth Peterson, .
Questions/Comments?