ISF 10+2: How to Make it Add Up for You Email questions to: [email protected] July 22, 2008...

ISF 10+2: How to Make it Add Up for YouISF 10+2: How to Make it Add Up for You

Email questions to:[email protected]

July 22, 2008

July 22, 2008

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Please write this down: Preparing your company for 10+2 readiness is strategic, not tactical… and you must convey this message to your company’s leadership if you intend to be successful in preparing your company for 10+2 compliance…

If you remember just one thing…If you remember just one thing…


Kevin GavinVice President, Supply Chain ManagementIES, Ltd.

Kevin GavinVice President, Supply Chain ManagementIES, Ltd.

• Joined IES, Ltd. after his role as President and CEO of SECTRA

• Work to expand IES to its current status as one of the leading providers of Ocean, Air and Truck AMS and Global Supply Chain Management

• Provides IES with technological and operational direction to guide the development of new products and services

• Background spans over 20 years servicing the International Trade Community


• Founder & President of Global Data Mining

• Owner of Global Data Mining, and CUSTOMS Info

• More than 20 years of experience optimizing processes and helping customers turn unorganized data into information that managers and executives need to improve performance.

Matt GersperFounder and PresidentGlobal Data MiningAuthor of “It’s Strategic, Not Tactical”

Matt GersperFounder and PresidentGlobal Data MiningAuthor of “It’s Strategic, Not Tactical”

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ISF 10+2: How to make it add up for you?ISF 10+2: How to make it add up for you?

• This is the Third Webinar we have hosted on 10+2.

• In the first two webinar’s we provided a detailed overview of the specific data required

• In this Webinar we will be providing a higher level corporate overview of what 10+2 means to the Import Community.

• After the Overview we will be hosting a question and answer panel with Kevin & Matt… time permitting…

• This is the Third Webinar we have hosted on 10+2.

• In the first two webinar’s we provided a detailed overview of the specific data required

• In this Webinar we will be providing a higher level corporate overview of what 10+2 means to the Import Community.

• After the Overview we will be hosting a question and answer panel with Kevin & Matt… time permitting…

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Filer (CHBs or Importers of Record) Must:Filer (CHBs or Importers of Record) Must:

1. Know the Regulation

2. Identify a Software Solution

3 Determine the enterprise-wide data requirements

4. Enable the Importer of Record to Participate

5. Provide Professional Consulting

1. Know the Regulation

2. Identify a Software Solution

3 Determine the enterprise-wide data requirements

4. Enable the Importer of Record to Participate

5. Provide Professional Consulting

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Tasks for Success Tasks for Success

• Prepare to be an Expert

• Be a solution for your customers or your company

• Educate your customer/company by explaining how to organize their supply chain data to line up with ISF “10 + 2”

• Position yourself as the solution provider

• Deliver

• Prepare to be an Expert

• Be a solution for your customers or your company

• Educate your customer/company by explaining how to organize their supply chain data to line up with ISF “10 + 2”

• Position yourself as the solution provider

• Deliver

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ISF 10+2: How to make it add up for you?ISF 10+2: How to make it add up for you?

• For maritime cargo that is destined to a U.S. port, the data elements listed on the next slide will be required to be transmitted 24 hours prior to loading the U.S. bound vessel

• This portion of the Security Filing will be required to be transmitted by the importer or its designated agent. Three methods will be supported.

• 1. ISF from the Importer or Record or Designated Agent

• 2. Combined Customs Entry and Security Filing Through the Broker

• 3. In bond Types IE, TE and IT will be supported through Ocean AMS as well as Freight Remaining on Board.

• These data elements are critical for CHBs/Importers of Record to supply CBP with the required information

• For maritime cargo that is destined to a U.S. port, the data elements listed on the next slide will be required to be transmitted 24 hours prior to loading the U.S. bound vessel

• This portion of the Security Filing will be required to be transmitted by the importer or its designated agent. Three methods will be supported.

• 1. ISF from the Importer or Record or Designated Agent

• 2. Combined Customs Entry and Security Filing Through the Broker

• 3. In bond Types IE, TE and IT will be supported through Ocean AMS as well as Freight Remaining on Board.

• These data elements are critical for CHBs/Importers of Record to supply CBP with the required information

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The following 10 data elements were selected The following 10 data elements were selected

11 Manufacturer name and addressManufacturer name and address

22 Seller name and address Seller name and address

33 Container stuffing locationContainer stuffing location

44 Consolidator name and addressConsolidator name and address

55 Buyer name and addressBuyer name and address

66 Ship to name and address Ship to name and address

77 Importer of record numberImporter of record number

88 Consignee numberConsignee number

99 Country of origin of the goodsCountry of origin of the goods

1010

Commodity Harmonized Tariff Schedule #(6 digit)

Commodity Harmonized Tariff Schedule #(6 digit)

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Details 1 - 4Details 1 - 4

1. Manufacturer (or supplier) name and address. The name and address of the

entity that last manufactured, assembled, produced, or grew the commodity, or the

name and address of the supplier of the finished goods in the country from which

the goods are leaving. In the alternative, the name and address of the

manufacturer (or supplier) that is currently required by the import laws, rules and

regulations of the U.S. (i.e., entry procedures) may be provided (this is the

information that is used to create the existing manufacturer identification (MID)

number for entry purposes).

2. Seller name and address. The name and address of the last known entity by

which the goods are sold or agreed to be sold. If the goods are to be imported

otherwise than in pursuance of a purchase, the name and address of the owner of

the goods must be provided.

3. Buyer name and address. The name and address of the last known entity to

which the goods are sold or agreed to be sold. If the goods are to be imported

otherwise than in pursuance of a purchase, the name and address of the owner of

the goods must be provided.

4. Ship to name and address. The name and address of the first deliver-to party

scheduled to physically receive the goods after the goods have been released from

customs custody.

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5. Container stuffing location. The name and address (or addresses) of the

physical locations where the goods were stuffed into the container. For break

bulk shipments, the name and address (or addresses) of the physical locations

where the goods were made "ship ready" must be provided.

6. Consolidator (stuffer) name and address. The name and address of the

party who stuffed the container or arranged for the stuffing of the container.

For break bulk shipments, the name and address of the party who made the

goods "ship ready" or the party who arranged for the goods to be made "ship

ready" must be provided.

7. Importer of record number/FTZ applicant identification number.

Internal Revenue Service (IRS) number, Employer Identification Number

(EIN), Social Security Number (SSN), or CBP assigned number of the entity

liable for payment of all duties and responsible for meeting all statutory and

regulatory requirements incurred as a result of importation. For goods

intended to be delivered to an FTZ, the IRS number, EIN, SSN, or CBP

assigned number of the party filing the FTZ documentation with CBP must be

provided. The importer of record number for importer purposes is the same as

"importer number" on CBP Form 3461.

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8. Consignee numbers. IRS number, EIN, SSN, or CBP assigned number of the

individuals) or firms in the U.S. on whose account the merchandise is shipped.

This element is the same as the "consignee number" on CBP Form 3461.

9. Country of origin. Country of manufacture, production, or growth of the

article, based upon the import laws, rules and regulations of the U.S. This element

is the same as the "country of origin" on CBP Form 3461.

10. HTS number at 6 digit level. Duty/statistical reporting number under

which the article is classified in the HTS. The HTS number is required to be

provided to the 6 digit level. The HTS number may be provided up to the 10 digit

level. This element is the same as the "H.S. number" on CBP Form 3461 and can

only be used for entry purposes if it is provided at the 10 digit level or greater.

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AdvantagesAdvantages

• Provide a globally accessible web application

• Provide a Parts Database

• Manage the Supply Chain Parties

• Integrate with Ocean AMS where required

• Include an EDI upload interface to importers of record

• Deliver a highly integrated system with EDI feed to CHB Platforms

• Closing the Loop on International Trade and turning the Black Hole into Inventory

• Provide a globally accessible web application

• Provide a Parts Database

• Manage the Supply Chain Parties

• Integrate with Ocean AMS where required

• Include an EDI upload interface to importers of record

• Deliver a highly integrated system with EDI feed to CHB Platforms

• Closing the Loop on International Trade and turning the Black Hole into Inventory

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ISF 10+2 Workflow OverviewISF 10+2 Workflow Overview

1. WEB ISF 10+2

1. WEB ISF 10+2

3. AMS ISF 10+2

3. AMS ISF 10+2

2. Import CHB

ISF 10+2

2. Import CHB

ISF 10+2

Carrier 315 EDI

Container STOW

Carrier 315 EDI

Container STOW

CBP AMS ISF 10+2CBP AMS ISF 10+2

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10 + 2 Next Steps10 + 2 Next Steps

• Now is the time to prepare for 10+2

• Start using it now

• Available branding with your name and logo

• Getting started and training

• Reduced Data Entry

• Enhanced Data Visibility

• Now is the time to prepare for 10+2

• Start using it now

• Available branding with your name and logo

• Getting started and training

• Reduced Data Entry

• Enhanced Data Visibility

10+2 Readiness… It’s strategic, not tactical10+2 Readiness… It’s strategic, not tactical

Matt GersperFounder and PresidentGlobal Data Mining“It’s Strategic, Not Tactical”

Matt GersperFounder and PresidentGlobal Data Mining“It’s Strategic, Not Tactical”

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There are three kinds of companies as it relates to ISF 10+2 readiness


Strategic Sourcing &

Procurement

Trade Complian

ce

TradeFinance

Global Logistics

Corporate Risk

Management

Manufacturing & Design

Sales & Customer Service

Function

Enterprise-Wide

Strategy

BrokersForwarders

3PL’s

SuppliersBest in classBest in class

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A. The companies that are heading full speed for a cliff and are not even aware of it…

B. The companies that are heading full speed for a cliff and are at least aware of it…

A. The 1st group will suffer mightily when 10+2 goes into effect

B. The 2nd group has a chance to use this dramatic change in customs regulations to their business advantage…

It’s critical that you get the 10+2 message to senior management and that they understand it and support an enterprise-wide strategy to prepare for it!!!

It’s critical that you get the 10+2 message to senior management and that they understand it and support an enterprise-wide strategy to prepare for it!!!

K e y P o i n t K e y P o i n t

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• Introduction

• Why is it important to

you?

• It’s Strategic, not Tactical

• 10+2 Readiness

• Create your strategy now!

• Introduction

• Why is it important to

you?


• 10+2 Readiness


Using data and technology

to achieve new government

requirements

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Profits Eliminated!!Profits Realized!!

Why is it important to you?Why is it important to you?

1. The purpose of the advance security filing requirement is to improve CBP’s risk assessment and targeting capabilities to help prevent terrorist weapons from entering the U.S.

SECURITY

COST2. The Office of Management and Budget

(OMB) has determined that the rule will cost industry from $390 million to $630 million per year.

FINES/STOP

3. “If the principal fails to comply with the proposed Importer Security Filing requirements, the principal and surety (jointly and severally) would pay liquidated damages equal to the value of the merchandise involved in the default”.

Collateral Benefits:

Done properly… Optimizing business processes to meet these requirements in the most direct, effective manner possible can improve supply chain velocity and create competitive advantage!!!

NOTE: VIEW IN SLIDE SHOW MODE!!

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• Introduction

• Why is it important to you?

• It’s Strategic, not

Tactical

• 10+2 Readiness


• Introduction


• It’s Strategic, not

Tactical

• 10+2 Readiness




requirements

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It’s Strategic, Not TacticalIt’s Strategic, Not Tactical

1. It’s a change in the corporate business processes, and it’s beyond the scope of the trade compliance professional

2. Do you know who actual manufacturers of every item you purchase

3. Every part must be linked with a fully qualified Commodity HTSUS number.

4. You need to know that all the relevant data including items such as the container stuffing location were submitted.

5. You need a method to insure that your data has been submitted to Customs for every manufacture on a shipment along with the associated AMS data.

1. It’s a change in the corporate business processes, and it’s beyond the scope of the trade compliance professional

2. Do you know who actual manufacturers of every item you purchase

3. Every part must be linked with a fully qualified Commodity HTSUS number.

4. You need to know that all the relevant data including items such as the container stuffing location were submitted.

5. You need a method to insure that your data has been submitted to Customs for every manufacture on a shipment along with the associated AMS data.

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Collaboration and CooperationCollaboration and Cooperation

Data Element Source Responsible Party

Manufacturer Name & Address Procurement Sourcing Importer

Seller name & address Procurement Sourcing Importer

Buyer name & address Procurement Sourcing Importer

Ship to name & address Procurement Sourcing Importer

Container Stuffing Location Supplier/Forwarder Supplier/Forwarder

Container (Stuffer) name & address Supplier/Forwarder Supplier/Forwarder

Importer of Record # Trade Compliance/Import Importer

Consignee # Trade Compliance/Import Importer

Country of Origin Trade Compliance/Import Importer

Commodity HTSUS # Trade Compliance/Import Importer/Broker

An effective solution to meet the very complicated 10+2 requirements will require a cross-functional, coordinated efforts including 3rd parties

An effective solution to meet the very complicated 10+2 requirements will require a cross-functional, coordinated efforts including 3rd parties

K e y P o i n t K e y P o i n t

It’s Strategic, Not TacticalIt’s Strategic, Not Tactical

Importers

Suppliers

Carriers

Brokers

Forwarders

Create PO

Create commercial invoice

Create entry document at the end of the supply chain

1. MID5. Buyer Info6. Ship to Info7. IOR Number8. Consignee #9. Country of Origin10. US HTS Code

Manage logistics of shipment

Deliver the shipment

Current Process

An effective solution to meet the complicated 10+2 requirements will require a business process re-design

Data NOT currently requiredfor entry:

1. Manufacturer Info2. Seller Info3. Container Stuffing Info4. Consolidator Info


Business Process Re-DesignBusiness Process Re-Design

Importers

Suppliers

Carriers

Brokers

Forwarders

Create PO

Create commercial invoice

Automation of entry document at the end of the supply chain

Manage logistics of shipment

Deliver the shipment

1. Build out the new data requirements

2. Automatically link new data

3. Capture stuffing & consolidator info…

4. Report through security filing software to meet the CBP requirement – providing a lot more information a lot sooner in the supply chain


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Data StrategyData Strategy

1. What data is required?

2. What data currently exists?

3. Who “owns” the different data elements?

4. Where does the data reside today?

5. In what format?

6. Where should the data reside for the future solution?

7. How will it be validated?

8. How will it be integrated?

9. How will it be updated?

1. What data is required?

2. What data currently exists?

3. Who “owns” the different data elements?

4. Where does the data reside today?

5. In what format?

6. Where should the data reside for the future solution?

7. How will it be validated?

8. How will it be integrated?

9. How will it be updated?


Parts Master

MerchandisingERP

PO ERP Forwarder

Data

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Collaborative AssessmentCollaborative Assessment

• Assemble the team

• Recommend targeted strategies to achieve 10+2 objectives

• Identify required Resources

– Internal

– External

• Quantify Costs

• Quantify Opportunities

• Prepare ROI

• Assemble the team

• Recommend targeted strategies to achieve 10+2 objectives

• Identify required Resources

– Internal

– External

• Quantify Costs

• Quantify Opportunities

• Prepare ROI


Client’s project leaderDepartment heads3rd party partners• Data solutions• Applications• Forwarder/broker

Process Optimization Model

by GDM…

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Project StrategyProject Strategy


Client’s project leaderDepartment heads3rd party partners

• Data solutions• Applications• Forwarder/broker

Create a plan to meet the 10+2 requirements in the most direct, effective manner possible… Create a plan to meet the 10+2 requirements in the most direct, effective manner possible…

VisibilityMeasurability

Control

People

Applications

Data

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Executive PresentationExecutive Presentation

• Prepare and deliver an executive presentation …

• With an ROI analysis for recommended projects…

• Define opportunities identified…

• Define baseline and expectations of improvement.

• Prepare and deliver an executive presentation …

• With an ROI analysis for recommended projects…

• Define opportunities identified…

• Define baseline and expectations of improvement.


It’s critical that the message is communicated to senior management and that they understand it and support an enterprise-wide strategy to prepare for it!!!

It’s critical that the message is communicated to senior management and that they understand it and support an enterprise-wide strategy to prepare for it!!!

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• Introduction



• 10+2 Readiness


• Introduction



• 10+2 Readiness




requirements

Bringing the Data TogetherBringing the Data Together

PO ERP

Buyer Name (10+2)

Buyer Address (10+2)

Ship to Name (10+2)

Ship to Address (10+2)

IOR Number (10+2)

Consignee Number

(10+2)

Item Number

10+2 data elements should be gathered at time of PO and forwarded to the Importer Security Filing system

10+2 data elements should be gathered at time of PO and forwarded to the Importer Security Filing system

Material Group

Product Hierarchy

Item Number

Item Description

Manufacturer Name

(10+2)Manufacturer Address

(10+2)Seller Name (10+2)

Seller Address (10+2)

Merchandising ERP

Link byItem #

Item Number

US HTS (10+2)

US HTS Descriptions

US Ruling Number

US Ruling Date

Country of Origin (10+2)

Parts Master

Link byItem #

NewData

Item Number

Container Stuffing Location

(10+2)Consolidator Name (10+2)

Consolidator Address

(10+2)

Link byItem #

With this data, now the importer or it’s agent can transmit the ISF no later than 24 hours prior to loading the US bound vessel.

With this data, now the importer or it’s agent can transmit the ISF no later than 24 hours prior to loading the US bound vessel.

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ISF 10+2 Integration with Existing SystemsISF 10+2 Integration with Existing Systems

ExistingImporter

System + 3rd Party

Logistics

ExistingImporter

System + 3rd Party

Logistics

AMS 10+2AMS 10+2

Import CHB 10+2

Import CHB 10+2

CBPAMS 10+2

CBPAMS 10+2

1. Data feed from Importer or

third party logistics

provider

2. Importer of Record or

Authorized Agents upload

ISF information

3. CHBs or Importers verify

compliance prior to filing

with CBP

4. Match of the ISF with

Ocean AMS filing

5. The Accepted message

triggers automated

download of data to IES

Import/CHB Systems

6. US Customs Entry is filed

by US Customs Broker.

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• Introduction



• 10+2 Readiness

• Create your strategy

now!

• Introduction



• 10+2 Readiness

• Create your strategy

now!



requirements

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Create Your Strategy Now!Create Your Strategy Now!

Create a 10+2 Readiness Strategy now although this is a very complex challenge for importers.

You can provide leadership… create an enterprise-wide solution… and save your company lots of money by creating a plan to meet the 10+2 requirements in the most direct, effective manner possible.

Avoid DelaysAvoid Delays Improve ComplianceImprove Compliance

Reduce ExpensesReduce Expenses

This is going to take some timeCreate a plan now

Q2-08Q1-08 Q3-08 Q4-08

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Create Your Strategy Now!Create Your Strategy Now!

Avoid DelaysAvoid Delays Improve ComplianceImprove Compliance

Reduce ExpensesReduce Expenses

This is going to take some timeCreate a plan now

Q4-08Q3-08 Q1-09 Q2-09

Collateral Benefits… Additional trade data can: • Improve supply chain planning • Improved supply chain speed • Reduced inventory requirements • Improved visibility and controls • Competitive advantage

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Preparing your company for 10+2 readiness is strategic, not tactical… and you must convey this message to your company’s leadership if you intend to be successful in preparing your company for 10+2 compliance…

Did you write this down?Did you write this down?

ISF 10+2: How to Make it Add Up for You Email questions to: [email protected] July 22, 2008...

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Transcript of ISF 10+2: How to Make it Add Up for You Email questions to: [email protected] July 22, 2008...