Simplified Trade Processes CBP Trade Integrated Planning and Coordination Cell Initiative COAC Trade Facilitation Subcommittee October 4, 2011

Simplified Processes Overview Recent Activities and Developments  The Workgroup conducted its third session in September in Washington, DC  The first two days consisted of further discussions and refinement of the proposed solutions developed during previous sessions in New York and Chicago  The Workgroup agreed to a tentative re-engineering of the Entry and Summary/Financial processes based on the proposed solutions, with the understanding that several outstanding CBP, Participating Government Agencies (PGAs), and industry concerns need to be addressed  The third day consisted of CBP presenting the revised proposed solution maps to the broader PGA and Trade communities  Several PGAs require more information and details in order to determine the feasibility of implementation, which will be addressed through one-on-one meetings  CBP is proceeding by splitting the work into two tracks:  Track #A: Simplified Entry  Track #B: Simplified Summary and Financial 2

Track A: Simplified Entry Importer of Record number Buyer name and address Buyer EIN number Shipper name and address Ship to party name and address Manufacturer/supplier name and address HTS 10-digit Country of origin Bill of lading/House Airway Bill Entry number Container stuffing location (mode-specific) Estimated Total Shipment Value  Simplified entry data element to satisfy security and trade concerns are:  Advanced manifest filing requirement for carriers remains the same; current entry (3461) filing eliminated  Process relies on the concept that the owner of the data knows the data best: relieves importer from filing data found on the manifest  In ocean vessel mode, importers and carriers will transmit their data no later than 24 hours before lading, and will receive a release decision message from CBP approximately 5-10 days prior to arrival  Simplified entry process model will apply to other modes with appropriate pre-lading filing and release timeframes  Targeting and other security procedures remain the same, but can occur earlier in the process 3

Track B: Simplified Summary & Financial  Periodic summary filing, and payment settlement will take place over a two "business month" period  Business Month 1 = entry of goods occurs  Business Month 2 = all goods that were imported during Business Month 1 are reported for summary and payment  Importers have the flexibility to track data by transaction or extract data from their business records in order to file a periodic summary  Summary filing will be due 20 calendar days after the close of the previous month  Liquidation will occur at the line-level, deem liquidating within a year  Reconciliation process will remain unchanged 4

Qualifications for Initial Pilot Participation Track A: Simplified Entry  Customs Trade Partnership Against Terrorism (C-TPAT), Tier 2 and above  Meets relevant systems requirements  Prototype application process to be announced via a Federal Register Notice (FRN) Track B: Simplified Summary & Financial  C-TPAT, Tier 2 and above  Importer Self Assessment (ISA) OR the ability to demonstrate to CBP how importer will account for imported goods  Identification of internal controls and documentation of the information flow through business system to meet summary filing obligations  Good financial standing with CBP (to be defined)  Prototype application process to be announced via a FRN 5

Next Steps Track A: Simplified Entry  FRN to be published  Prototype development to begin by end of October 2011 for air and ocean vessel modes Track B: Simplified Summary & Financial  Internal CBP issues will be resolved  FRN to be published by December 2011  Prototype development to begin January

Contact Information: Brenda B. Smith Executive Director, Trade Policy and Programs Office of International Trade