Catching Up With Customs Provide an update on recently implemented customs regulations: Importer Security Filing (ISF) Employer Identification Number (EIN) Regulation Personally Identifiable Information (PII) TSA 100% Screening of Air Cargo Communicate information on potential future regulations: 100% Maritime Container Scanning European Advance Cargo Declarations The development of the Electronic Numerical Code Codification Standard
Importer Security Filing (“ISF” or “10 + 2”) The full compliance (enforcement) date for the “10+2” requirements commenced on January 26, 2010 This followed a year-long period of “informed compliance” where CBP worked with industry to comply with the future implementation Since January 26 th, CBP began applying the ruling through a policy of “graduated enforcement”. Penalties for non-compliance will increase as the year progresses. Full penalties expected to be implemented on October 1 st, 2010.
Importer Security Filing (“ISF” or “10 + 2”) Since the initiation of the “enforced compliance” phase, there has been little to no feedback received from IAM membership on the regulation. In speaking with CBP Officials, they have stated that compliance levels have been high. Based on this, IAM members as well as most importers most likely have a good grasp on the regulation. What has been your experience? Give IAM feedback after the presentation.
EIN Regulation The full name of this regulation is “Eliminate the requirement to report a Social Security Number as an identification number when registering to file electronic export information (EEI) in the Automated Export System”. This regulation came from a new export regulation implemented by the U.S. Census Bureau in December of 2009. Any transferee possessing a Social Security Number must now apply for and obtain an Employer Identification Number (EIN) in order to export their goods from the U.S. Government employees and military service members are exempt from reporting EEI; therefore, they are exempt from this regulation. Census Officials have confirmed that compliance is high on this regulation as well.
Distribution of Personally Identifiable Information (PII) The US Government is required by law (19 CFR 103.31) to sell certain information to third-party vessel manifest information companies. This information includes the following: Shipper name Shipper address Consignee name Consignee address Notify party name Notify party address Any Information included in the marks and numbers field of a manifest.
Distribution of Personally Identifiable Information (PII) If you have a client shipping from or to the United States, it is advised to request confidentiality for their shipment. US Customs provides information on how an individual shipper may request confidential treatment for their shipments. US Customs have recently implemented a website whereby a shipper may apply for confidentiality on their shipments. The website is as follows: http://www.cbp.gov/xp/cgov/trade/automated/automated_systems/am s/vessel_manifest_confid_form.xml - US Customs do not allow blanket confidentiality for HHG shipments.
100 % Screening of Air Cargo The U.S. Transportation Security Administration’s (TSA) mandate to screen 100% of all cargo transported on passenger aircraft went into effect on August 1, 2010. Since implementation, the Airforwarders Association (AfA) and TSA both report high levels of compliance from industry. In a survey conducted by the AfA, 95% of respondents reported few if any disruptions. The findings here mirror what has been seen with the ISF and EIN regulations.
100 % Scanning of Maritime Containers The US Congress mandated the scanning of all containers destined for US ports in January of 2007. This mandate called for all US-bound containers to be scanned and imaged prior to shipment to the United States at the ports of origin. The deadline to implement this regulation is still set for July 1 st, 2012. According to the US Government, 611 ports worldwide shipped nearly 10 million containers in the fiscal year 2008. Some organizations estimate that 11.6 million containers may enter U.S. ports in 2010. This regulation has been the subject of intense criticism due to immense fees associated with implementation, reorganizing foreign ports, and training personnel to carry out the mandate. 100% Scanning still has not been proven to enhance security over coordinated risk-based targeting of hazardous cargo.
100 % Scanning of Maritime Containers Congress will continue to reevaluate the feasibility of the mandate as nearly all of the stakeholders push back ahead of the July of 2012 deadline The Secretary of Homeland Security and the Commissioner of Customs and Border Protection have testified to Congress that the mandate is practically impossible to achieve and will not enhance security. The Advisory Committee on Commercial Operations to Customs and Border Protection have called for the repeal of the mandate. Not surprisingly, foreign governments have pushed back against the mandate as some view it as a breach of their sovereignty. The mandate is still slated for implementation. However, legislation has been proposed to extend the deadline for compliance until 2015 and allow for either nonintrusive imaging equipment or radiation detectors to be used.
European Advance Cargo Declarations This refers to EU Regulation 1875/2006 on Imports and is scheduled to be implemented on January 1 st, 2011. This refers to EU Regulation 1875/2006 on Imports and is scheduled to be implemented on January 1 st, 2011. It is very similar to the Importer Security Filing in that a set of data elements must be transmitted to the EU Member’s Customs Organization 24 hours prior to the loading of the shipment at the port of origin. It is very similar to the Importer Security Filing in that a set of data elements must be transmitted to the EU Member’s Customs Organization 24 hours prior to the loading of the shipment at the port of origin. One Caveat – “Household Goods and Personal Effects” may not be a commodity that will be accepted by the European Union. One Caveat – “Household Goods and Personal Effects” may not be a commodity that will be accepted by the European Union. With the help of FEDEMAC and FIDI, IAM will circulate more information on this regulation as it becomes available. With the help of FEDEMAC and FIDI, IAM will circulate more information on this regulation as it becomes available.
Development of Electronic Numeric Code Codification Standard The American National Standards Institute (ANSI) approved the standard in late July. The standards have been developed with assistance from our partners at FIDI, FEDEMAC, CAM, AMSA, PAIMA, and other associations throughout the world. IAM will be submitting the standard to the International Organization for Standardization (ISO). International Recognition of the Standard would yield certain benefits: 1.Greater Business Efficiency 2.Better Ability to Comply with Future Customs Regulations
Development of Electronic Numeric Code Codification Standard The standard assigns a numeric code to each item in a HHG/PE Shipment.
Development of Electronic Numeric Code Codification Standard
Conclusion IAM will continue to keep you posted on new and existing customs regulations that affect our membership. For more information on IAM actions on customs issues, please do not hesitate to contact me. My contact information is as follows: Brian Limperopulos email@example.com +1 703.317.9950
CHARLES WHITE Director, Government & Military Relations IAM
MICHAEL WILLIAMS Deputy to the Commander Surface Deployment and Distribution Command (SDDC) Scott Air Force Base, Illinois
CHARLES WHITE Director, Government & Military Relations IAM
Government & Industry Toe-to-Toe in San Diego Saturday, October 2, 2010 1:30 pm – 4:00 pm