Presentation on theme: "1 Welcome!. 2 Today’s Speakers Joe Burks – Director Logistics, Cooper Wiring & President, ICPA Eric Kulisch – Associate Editor, American Shipper Beth."— Presentation transcript:
2 Today’s Speakers Joe Burks – Director Logistics, Cooper Wiring & President, ICPA Eric Kulisch – Associate Editor, American Shipper Beth Peterson – President, Beth Peterson Enterprises Andy Stinnes – VP Products & Strategy, GT Nexus
3 Today’s Agenda 5 Min. – Introduction (Eric) 5 Min. – 10+2 Overview (Eric) 25 Min. – Panel Discussion (Joe, Beth, Andy) 25 Min. – Q&A (All)
4 Themes for Today’s Discussion 1.How is 10+2 different from today’s U.S. Customs filing process? 2.What should importers be doing now? 3.Who can help importers become 10+2 compliant? 4.What are the potential cost ramifications once 10+2 becomes law? 5.Is this all bad news? What are the potential silver linings for importers?
5 Importer Requirements 10 Data Elements 1. Manufacturer name and address 2. Seller name and address 3. Container stuffing location 4. Consolidator (stuffer) name and address 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) Carrier Requirements 2 Data Sets 1. Vessel stow plan 2. Container status messages Introduction – What Is 10+2?
8 Key Requirements Challenges Accuracy of Data Compliance risk of reporting ‘assumed data’ Manufacturer name – assumed on P.O., not validated by seller or 3PL Manufacturer name – assumed on P.O., not validated by seller or 3PL HTS # wrong until correct on entry HTS # wrong until correct on entry Timeliness of Data …all that 24 hours prior to loading …all that 24 hours prior to loading Risk of increasing cut-off windows Risk of increasing cut-off windows Risk of non-compliant shipments Risk of non-compliant shipments Completeness of Data Data Importers currently do not have Manufacturer name and address Manufacturer name and address Container stuffing location Container stuffing location Consolidator name and address Consolidator name and address Trade & entry documents in use today fall short of meeting 10+2 requirements How Is This Different Than Customs Filing?
9 Importer Requirements 10 Data Elements 1. Manufacturer name and address 2. Seller name and address 3. Container stuffing location 4. Consolidator (stuffer) name and address 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 Manufacturer info is often not known and is viewed as confidential by seller Available in a typical P.O. Not recorded in current entry documents Available in a typical P.O. Could vary depending on the transaction type (e.g. FOB vs. DDP) Manufacturer information, product genealogy is often difficult to trace accurately Often missing or incorrect when P.O.s are written; typically manually corrected by Broker at the time of entry filing How Is This Different Than Customs Filing?
What Should Importers Being Doing? 11 Read proposed rule making Conduct self assessment of availability of YOUR supply chain data Evaluate potential partners & vendors Talk to your partners & vendors to ensure they are doing the same
14 Gathering Data at Origin Organizing Data Centrally Filing and Managing Adjustments Touching suppliers Collecting, validating Leverage technology for efficiency Multiple origin 3PLs Connecting the dots Process: timing of collection, filing Trust - Broker Under bond Leverage security filing data for entry filing Origin 3PLTechnologyCustoms Broker Who Can Help Importers Become Compliant? A Cross-Functional Approach:
What Are The Potential Costs Of 10+2? 16 Delayed Shipments –Non-compliance = no unloading at destination –Additional inspections –Liquidated damages equal to value of merchandise involved Extra Fees –Collection fees, filing fees, U.S. Customs bond, connection charges, etc. New Technology
This “forces” importers to create a global supply chain information hub that includes their partner community Suppliers Brokers Carriers 3PLs Banks IMPORTER Orders Events Documents Inventory Detail What Are The Potential Silver Linings?
Efficiency No manual data entry Less paper Fewer errors Fast access to data Process Control Visibility into manufacturing processes Visibility into pre-shipment processes at origin Documentation Compliance Control of documentation content before it is finalized Documents and data available for SOX, Audits, Analysis Financial Settlement Ability to tie in related, parallel settlement processes Supplier engagements with IT platform can be expanded
20 We’d like to take your questions. Questions & Answers
21 Visit the 10+2 knowledge corner at: www.GTNexus.com/10+2 www.GTNexus.com/10+2 Let’s Continue The Dialogue
22 Joe Burks, Cooper Wiring & ICPA –Joseph.Burks@CooperIndustries.comJoseph.Burks@CooperIndustries.com Eric Kulisch, American Shipper –Ekulisch@Shippers.comEkulisch@Shippers.com Beth Peterson, BPE –Beth@bpeglobal.comBeth@bpeglobal.com Andy Stinnes GT Nexus –Andy.Stinnes@GTNexus.comAndy.Stinnes@GTNexus.com Thank You!