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Trade Update
Relevant News and Articles for Global Trade Professionals
Issue: Three March 3, 2010
Customs

Greetings!   

In April, Trade Innovations will celebrate our fifth year of providing the international trade community with a practical alternative to traditional consulting and law firms.  Since our launch in 2005, we have  steadily built a portfolio of satisfied clients.  Through carefully crafted strategic alliances we have the ability to provide world class service in the areas of  customs and import compliance consulting, export compliance, training, C-TPAT programs, surety bonds, direct-filing of customs entries and Importer Security Filings (ISFs), marine insurance, and carnets.  We can also tap in to the  best-in-class services of our partners on five continents! 

We look forward to serving our friends in the trade community for many years to come and look forward to the challenges and opportunities that lie ahead.  We intend to commemorate our first five years of service in typical Trade Innovations fashion...with innovative zeal!

As always, the Trade Innovations Team welcomes your ideas, questions, or suggestions.  We can be reached by e-mail at [email protected]
 
Sincerely,
 
The Trade Innovations Team

 

Mexico: A Harbinger
by Kelby Woodard

TheCrime Scenere continues to be a leadership vacuum in the area of domestic cargo security within the United States.  Despite noble efforts over the past few years, the government is not adequately focused on the issue and the security profession is not well organized in our approach to the problem.  Losses due to cargo theft continue to mount (although attaining accurate statistics is part of the problem).   Attempts by groups such as the SC-ISAC (which seeks to share information and statistics) and the recently announced Cargo Net initiative (designed to track and share cargo theft data with law enforcement) do provide rays of hope.  The fact remains that our approach to the issue remains fragmented.  The good news is that the losses that occur within the border of the U.S. remain largely financial in nature.  Our neighbors to the south are experiencing difficulties that are significantly more violent in nature. 

With the expansion of C-TPAT to Mexican truck carriers and manC-TPATufacturers in recent years, the focus on anti-smuggling tactics and conveyance security has markedly improved within Mexico.  Greater partnership between supply chain partners and the authorities have resulted in a significant increase in the seizure of illicit goods and narcotics at the southern border.  An assumption can be made that there has been a reduction in the viability of criminal enterprises to use commercial supply chains as a conduit for their nefarious intentions.  This improvement in security tactics has unfortunately come at a very high price in some instances, however.  While the violence currently being experienced in Mexico may not come as a surprise to anyone who is following President Calderon's war on narco-terrorists, the impact on our brethren in the supply chain community may surprise you.  (more follows...to read or download the entire article please follow the link below)


To read the entire article click here: Mexico: A Harbinger

Importer Security Filing (ISF) "Escalated" Enforcement Underway

By Michael Laden

On January 26th U.S. Customs & Border Protection (CBP) began implementing their strategy of graduated Importer Security Filing (ISF) enforcement.  While CBP's specific plan for ramped-up enforcement will not be made Deadlinepublic, we can garner the following details and pertinent information about what lies ahead:

  • CBP will initially focus on those consignments arriving in the U.S. by maritime conveyance with no ISF filed against them.  The importers of those shipments can expect a Warning Letter or e-mail from CBP.  The first series of stern admonishments for importers who are not filing ISF's at all are due to begin hitting mailboxes soon.  Importers with larger volume may also receive a telephone call from CBP Headquarters. 

  • CBP does not plan to focus on timeliness or accuracy issues for importers who are filing and attempting to meet the spirit of the new requirement.  While they are not closely monitoring timeliness at this juncture they do indicate that an ISF one week late would be considered unacceptable. CBP has not yet spelled out the consequences in such cases, however.

  • Beginning in May, CBP will begin issuing penalties and liquidated damage claims on shipments arriving without an ISF being filed.  A "hold" will also be placed on such consignments effectively making good on CBP's promise to place such shipments in "ISF Jail".  Extra scrutiny in the form of an intensive inspection or VACIS exam might also be conducted further adding to delays and expense. 

  • By the third quarter of this year CBP plans to begin analyzing the ISF data of compliant filers for accuracy and timeliness issues.  CBP will work closely with the trade to continually improve accuracy and timeliness rates.  (more follows...to read or download the entire article please follow the link below) 

To read the entire article click here: ISF Escalated Enforcement Underway

Service Spotlight: TSP Audits           

If you are not carefully auditing and examining documentation and invoices for services from paid Transportation Service Providers  (TSP's) you could be in for a rude awakening.  The necessity to audit and review import or export documentation cannot be understated, for two very good reasons.  First, to discharge your obligations to exercise reasonable care and secondly to validate the accuracy of the charges and data contained in such documentation.  All too often we run across importers who simply approve an invoice for payment without reviewing the associated supporting documents and tying out the shipment charges.

Trade Innovations offers clients a contingency based reviewAudit Checklist and audit of your Transportation Services Providers documentation.  This service supports those clients who do not have the time or resources to review invoices or other documents for accuracy and affords customers the peace of mind that someone is watching for errors.  One mistake in fact or one minor overcharge can perpetuate itself into a much larger problem over time.   

           Call or e-mail today for a free initial consultation!

[email protected]

+1 952.975.9099

In this March Issue of Trade Update
Mexico: A Harbinger
ISF Escalated Enforcement Underway
Wisps of Wisdom - Audit
TRG Direct's ISF Solution
TTA Mexico Affiliate
The Mechanics of C-TPAT
Wisps of Wisdom
Wisps of Wisdom
Documentation Audit is Imperative

In keeping with reasonable care standards and best practice minimums, it is critical that importers and exporters routinely review and audit a statistically sound sample of all documentation relating to their shipments.  This especially includes documentation  and/or declarations prepared by outside companies and transportation service providers (TSP's) and also includes the invoice(s) for services from those providers.  For a company with 3,000 shipments per year, one undetected and unauthorized charge of $45 can result in $135,000 of overcharges in a single year.

Shippers must be diligent about discharging these duties and when anomalies are discovered they must be addressed  (past, present and future) and the sample should be expanded.  All too often importers or exporters routinely authorize an invoice packets from a customs broker or freight forwarder for payment without carefully scrutinizing the work performed and associated service fees.    

Mistakes or errors in your documentation undetected can be a recipe for disaster.  Errors if left unchecked sometimes replicate and perpetuate themselves and can result in penalties, seizures, or other harsh and costly sanctions. 

Remember, importing or exporting is considered a privilege, CBP and other government agencies will be quick to remind you that there's nothing in the U.S. Constitution guaranteeing you the right to import or export.  In order to maintain that highly valued privilege U.S. companies engaged in global trade must pay attention to the myriad of complex laws and regulations that govern it; failure to do so may be very detrimental to your business.  

Quick Links
TRG Direct
 Filing an ISF has Never Been Easier
Save time and expense while benefiting from increased import compliance and visibility 

Often called "Turbo-Tax" for importers, TRG Direct's best-in-class ISF and direct-filing application is extremely intuitive and very easy to use.
 
Leveraging all of the system functionality you can literally file your ISF's in a matter of seconds.  TRG Direct's web based system is very versatile and allows multiple users. 
No permits or licenses are required and any importer can file their ISF's directly with CBP. 
 
TRG Direct's pricing ($5 per ISF, or $3 per ISF if you also file your customs entry with TRG Direct) can save your company up to 90%. off current market rates.  TRG Direct accepts both XML feeds and Excel uploads to expedite the filing process even more. 


Contact TRG Direct today for a free demonstration of the system, or join one of our free Wednesday Webinars at 11:00 am (central time). 
 
TTA Logo

Customs Trade Solutions Latin America Logo

Our TTA partner in Mexico City is Customs Trade Solutions Latin America (CTSLA).  The operation is headed up by Rogelio Cruz Vernet a practicing and highly regarded customs attorney in Mexico.  CTSLA can assist you with NAFTA verifications, tariff classification assistance, and any other matters related to import  compliance or customs compliance in the Latin America region.  CTSLA also features programs for companies participating in IMMEX (maquiladoras).


Click here to visit  the Trusted Trade Alliance LLC (TTA) web site 
Kelby & Mike's Event Calendar and Upcoming Travel 

Philadelphia, PA and Hunt Valley, MD - March 8 - 10 - Mike & Kelby

Orlando, FL - March 14 - 18  - Mike & Kelby attending the ICPA annual conference

Amsterdam, Holland & Brussels, Belgium - Mike - March 19 - 25

Minneapolis, MN - April 19 - Mike will be doing a Guest Lecture at Carlson Management School at the University of Minnesota

Toronto, Canada - April 20 - Mike will be addressing the IE Canada Conference

E-Learning
The Mechanics of C-TPAT

Last chance to register!  Tomorrow March 4th, at 1:00 pm (central time),  Kelby Woodard and Michael Laden will present a 2-hour Webinar called The Mechanics of C-TPAT

The webinar will focus on the fundamentals and mechanics of building a C-TPAT Program from start to finish.  This includes preparation of the all-important C-TPAT Profile, responding to CBP inquiries, the elements of a good C-TPAT program, how to prepare for a CBP Validation or Re-Validation, and developing effective training and awareness programs.

Space is limited and advanced registration is required.  Registration is on a first come-first served basis.  The nominal cost for this event is $225 per company.  The webinar fee also includes a 1-hour private consultation following the event.

For more information or to register for the webinar click here
      
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