Greetings!
You'll notice an important changes to this month's edition. We've moved the Trade News Briefs column directly below making it easier for our readers to quickly scan the headliners for the month.
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
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Trade News Briefs |
CBP Now Accepts On-line Requests for Manifest Confidentially: Importers who have requested that their company's name and manifest information be excluded from public disclosure can now do so electronically. Previously such requests (subject to renewal every two (2) years) would only be accepted via mail. With the increased incidence of importer identity theft and the necessity to protect business confidential data we highly recommend that importers consider applying for confidentiality under the auspices of this program. For more information, or to register your company please follow this link: CBP Online Application for Manifest Confidentiality
Courtesy Liquidation Notices may be Terminated: On March 15, 2010, CBP published a Federal Register Notice proposing to eliminate the mailing of courtesy liquidation notices. This has been a long-standing practice that CBP now wants to replace with electronic notifications at an anticipated savings of more than $3 million annually. Notices will be sent electronically to the ABI Filer (your broker or your company if you are a direct-filer). Importers who are using brokers are encouraged to discuss this with them and establish protocols for them sharing this data with you.
ISF Enforcement Still in First Phase: U.S. Customs & Border Protection (CBP) is still in the first phase of its graduated enforcement strategy for the Importer Security Filings (ISF's) meaning that they are not strictly enforcing accuracy or timeliness issues. While they have not defined exactly when, CBP is still on track to begin issuing penalties for accuracy and timeliness issues as early as this summer. Right now CBP is dealing with import consignments arriving on U.S. shores not covered by an ISF. We are confident that CBP will give the trade community plenty of notice before going into the "letter of the law" or "zero tolerance" enforcement mode. To this end, CBP is planning to continue their ISF Public Outreach sessions and webinars. More information can be obtained by following this link: CBP ISF Outreach Information
ACE Portal Application Process: If you do not currently have an ACE Portal Account established with CBP, you should consider doing so. It is free and allow you and representatives of your company to review import data contained in CBP's Automated Commercial Environment (ACE) Portal. For more information follow this link:ACE Portal InformationFDA Concerned about Cargo Theft: On April 28th the Food and Drug Administration (FDA) notified key import stakeholders about their concerns in the rising trend of pilferage and cargo theft, especially of FDA-controlled or regulated product. The FDA stated that, "FDA is very concerned about the increase in cargo and warehouse thefts
of FDA regulated products, including prescription and over-the-counter
medicines, vaccines, medical devices, and infant formula. These crimes
threaten the public health because product that has left the legitimate
supply chain poses potential safety risks to consumers." Companies handling or storing FDA-controlled product have an inherent responsibility to ensure the safety and security of regulated cargo and to perform routine inspections. Deploying a strategy of sharing intelligence relating to cargo theft the FDA recently launched a cargo theft web page, to view this page please follow this link: FDA Cargo Theft Web Page. Trade Innovations specializes in supply chain security and can offer your company an independent view and gap analysis of your current security program.
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Black Magic
By Michael Laden |
 In many companies the art and process
of moving goods across international borders is viewed as black magic. In fact to that point, I know a colleague who
keeps a magic wand in his desk for just such emergencies. When Inventory or Shipping begin screaming
about backorder and delays at Customs he simply produces the potent wand, whisks
it around through the air, and 'presto-chango' the consignment appears
(sometimes).
The fact is, in many companies
the trade compliance group (if there is one) doesn't get the respect or
resources they need to do an adequate job. Senior management maintains a 'don't look
behind the curtain' mentality and is reluctant to commit additional resources. Why? Because
as long as the Wizard (the import or export department) keeps delivering inventory
and no one with guns or search warrants is at the front door, we must be
compliant. Remember what happens when we
just assume?
As we know, this business is
full of pitfalls and mantraps and if you take your eye off the ball for one
minute you can get into trouble. Sadly
some companies totally neglect the necessity to be compliant until it's too
late and the lobby is full of auditors. When
this happens it can be a very painful experience; time consuming, extremely
expensive and it can have a profound impact on your ability to import for years
to come.
(more follows...to read or download the entire
article please follow the link below)
To read the entire
article click here: Black Magic
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The Next Deadline...
By Kelby Woodard
| Just wh en you thought you had
your import and export
compliance program up to date, along comes the requirement that all air
cargo
riding on passenger aircraft be 100% security screened. The
deadline for full implementation of this
program is August 1 of this year. What
exactly does this requirement mean? It
means that all cargo flying on passenger aircraft must be
broken down to piece level and screened by TSA approved methods. This screening process must occur prior to
consolidation and be completed using approved electronic, manual, and
canine
methods. The program is executed by TSA
approved facilities known as Certified Cargo Screening
Facilities (CCSFs).
It is important to note that
the 100% screening requirement is limited to all outbound air cargo from
U.S.
airports. It is also interesting that
TSA has chosen to utilize 3rd Party Validators (3PVs). The role of these 3PVs is to ensure the CCSFs
are following the security and screening requirements under the program. TSA is not abdicating their responsibility in
this case, but simply deputizing the 3PVs to more efficiently and
effectively
monitor compliance. Qualified CCSFs must
contract directly (for a fee) with a 3PV in order to gain certification
by TSA. As
of March 19, 2010,
TSA has certified 597 facilities in 32 states (208 cities).
While the TSA screening
requirement has been phased in over the last two years, the most
difficult and
complex cargo are yet to be screened as part of this program. Trade
Innovations
strongly encourages you to contact your forwarders to ensure there will
be no
surprises on August 1st especially if you are in a category
of goods
that has been deemed too difficult in the first phases. The
successful implementation of these
requirements may have a significant impact on the on-going debate about
the
security of imported cargo. If we can
accomplish this feat on U.S. passenger aircraft, is there an argument to
be
made for doing the same on international cargo?
(more follows...to read or download the entire article please follow the link below)
To read the entire article click here: The Next Deadline...
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Wisps of Wisdom
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Music to an Auditor's Ears
The three statements most U.S. Customs & Border Protection (CBP) Auditor's love to hear are:
- We didn't know that;
- We don't have one;
- We outsource all of that to our customs broker go talk to them
For CBP's Regulatory Auditors these statements mean that they have a live one on the line and it will most likely result in a deeper dive into the area they are scrutinizing (value, classification, recordkeeping, origin, quantity, etc.). Importers are required by law to exercise reasonable care when discharging their duties and obligations as an Importer of Record. This means a company must have documented process for managing all aspects of their imports including how they classify and value goods, how they determine country of origin, recordkeeping, etc.
Trade Innovations routinely helps clients document their policies and procedures related to import and/or reviews existing procedures for effectiveness. We have a number of clients you avail themselves of our triennial import compliance maintenance program.
Remember, importing or exporting is considered to be a privilege by the federal agencies that regulate it. CBP and other 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 labyrinth of complex laws and regulations that govern it; failure to do so may be very detrimental to your business.
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| Service Spotlight: First
Sale for Export | One of the customs planning
opportunities that has a checkered past is First Sale for Export (FSFE)
as Customs has long fought with the import community over its
validity. Customs even proposed to eliminate FSFE in 2008, but the Farm
Bill that year included the terms of a truce between importers and
Customs. One aspect of the truce was that the International Trade
Commission would conduct a study of FSFE and report back the
results. The results were published at the end of December and they
showed that there was less revenue to be gained by doing away with FSFE
than Customs had anticipated. Another fact that was established was that
importers across many different product sectors, and not just apparel
and footwear, took advantage of FSFE. To
recap, FSFE is a customs
valuation approach that allows an importer to put forth the earlier of
two or more qualifying foreign sales as the statutory basis for
appraisement. Transaction Value, defined as the "price actually paid or
payable when sold for exportation," is the preferred method for
appraising imported goods. Many importers will place an order on a
foreign vendor, who then fills that order with his own order on a
factory. With FSFE, if the importer can show that his foreign vendor
was really a middleman, and that there was a valid arm's length sale
between the factory and the middleman and that the goods were being made
to fill the importer's order, then that "first sale" will qualify under
the statute. Where
should you go from here? The evidence suggests
that Custo ms will not be taking further steps to eliminate FSFE. That
means FSFE is probably here to stay, so importers should determine
whether FSFE makes sense. Many consultants have said that FSFE is
impossible to obtain, and others have said that getting FSFE is as easy
as a walk in the park. Neither is true. FSFE can be difficult,
especially since the cooperation of the foreign seller is required. But
the payoff can be huge-the middleman's markup is stripped out of
dutiable value and the savings is the drop in dutiable value times the
duty rate.We can
help you at all stages
of the process-from analyzing FSFE's potential for your company, through
preparing the submission and presenting the case for FSFE to Customs
and handling the entire process for savings on both future entries and
via protests for prior shipments. Call or
e-mail today for a free initial consultation! [email protected]
+1
952.975.9099
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 Direct Filing and
Importer Security Filing
| | 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. And, your ISF data can now flow directly to a customs entry.
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.
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 | Global Reach
Global trade has become the lifeblood of many businesses; it is an engine of economic growth and the means by which millions of individuals make their living. The volume of goods transported internationally continues to expand exponentially. Yet national borders still exist, and with them the need to comply with myriad reporting, documentation, and tax and duty payment obligations. In recent years, ensuring secure trade lanes and product safety in the global supply chain has been placed at the top of the list of priorities for governments, resulting in a new layer of complex requirements to be met to ensure that goods can be moved quickly across borders. Across the globe, the Trusted Trade Alliance is dedicated to helping your company achieve compliant, efficient solutions to these challenges.
The Trusted Trade Alliance provides a full range of consulting and training services focused on assisting business in addressing the challenges of global trade. We provide a comprehensive network of member offices located around the globe, staffed to provide a consistent level of expertise on 5 continents. Our members include noted experts, well-versed in the local requirements of the countries you do business in, as well as recognized leaders in multilateral efforts to make global trade challenges as business-friendly and practicable as possible. Our mission is to provide our customers with high-quality, personalized consulting, training, advice and assistance in the implementation of compliant trade processes at a country, multi-country or global level.
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