Greetings! Thank you for taking time to peruse our monthly newsletter; we hope that you find it informative and useful. In each edition it is our goal to bring you a recap or snapshot of important trade news covering the last month. Our readership continues to grow every month. If you enjoy this newsletter please consider sharing it with your colleagues, internally and externally. It's easy to do, simply click on the "Forward to a Friend" icon found below and enter the e-mail address(es).
As always, the Trade Innovations Team welcomes your ideas, questions, or suggestions. We can be reached by
e-mail at [email protected]. In the meantime, please accept our wishes for a safe and enjoyable summer.
Sincerely,
The Trade Innovations Team
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Trade News Briefs |
 ISF Enforcement to be Escalated July 1?: Will U.S. Customs & Border Protection (CBP) throttle up Importer Security Filing (ISF) enforcement another notch next month as some newsletters have been predicting and reporting? We have been attempting to confirm rumors that CBP will move forward with the next phase of their escalated enforcement strategy for ISF on July 1, but have been unable to as this goes to press. Watch our web site for further updates and if the situation warrants we will issue a Breaking News Alert.
More Descriptive "No Bill on File" ISF Messages: CBP announced that no sooner than June 10, 2010, they would begin to issue more descriptive ISF (Importer Security
Filing) Status Advisory Messages. Currently, CBP compares the Bill of Lading number submitted with an ISF against that filed in the Automated Manifest System (AMS), and issues a NO BILL ON FILE status advisory message when the bill number is not in AMS or there is a discrepancy with the bill type. With the planned change, a distinction will be made between a bill number not being on file in AMS and a bill number being on file in AMS, but with a different type than what was filed in the ISF.
a. When a Bill has not been filed in AMS, the ISF Filer shall receive a status message with an S2 disposition code and a 'NO BILL MATCH (NOT ON FILE)' description.
b. When a Bill has been filed in AMS, but with a different type than what was filed in the ISF, the ISF Filer shall receive a status message with an S6 disposition code and a 'NO BILL MATCH (WRONG TYPE)' description.
c. When a Bill has not been filed in AMS, the ISF Filer shall receive reminder status messages with S3, S4, and S5 disposition codes and a 'NO BILL MATCH (NOT ON FILE)' description after 5, 20, and 30 days, respectively.
 CBP Commissioner Alan Bersin to Speak at AAEI: CBP Commissioner Alan Bersin will offer his first public remarks to the trade community on June 7th at the American Association of Exporters & Importer's (AAEI's) Annual Conference and Expo in New York. Bersin was appointed as CBP Commissioner by President Obama on March 27, 2010 as one of the "recess appointments". In his May 13th Confirmation Hearing Commissioner Bersin pledged he would work to further facilitate legitimate business and would work to improve consultations with the private sector and trade community at large. His appointment comes at a time when relations with the trade seem to be souring or getting a little adversarial and projects like ACE (the Automated Commercial Environment) have run amuck costing the tax payers billions. We look forward to his comments on trade facilitation and other matters and we'll feature a summary of his remarks in the July edition of the Trade Update. U.S, Ranks 18th in Trade Facilitation: In his opening statement to the Subcommittee on Trade Hearing on Customs Trade Facilitation and Enforcement in a Secure Environment, Ranking Member Kevin Brady (R-TX) said that he was "...very disappointed to see that the United States ranks only 18th in terms of the countries that best facilitate imports and exports across their borders according to the OECD's (Organization for Economic Co-Operation and Development) Doing Business 2010 Report. There is absolutely no reason for this," he continued. Mr. Brady also stated that "CBP's trade mission has suffered" and he wanted to explore five (5) key topics during the hearing. The first topic was ACE (Automated Commercial Environment). Mr. Brady challenged CBP to deliver more timely and meaningful capabilities with the most "bang for the buck". For the full text of Mr. Brady's remarks please click here: Kevin Brady's (R-TX) Opening Remarks May 20, 2010.
Lacey Act Quantities Must Be Reported in Metric: The Lacey Act Amendments of 2008 require APHIS to collect information on the importation of plant material, using a Plant and Plant Product Declaration (known as the PPQ505). The quantity and unit of measure of the imported plant material must be declared. Beginning May 1, 2010, APHIS is requiring that plant material quantities be reported on the declaration using standardized metric units (kg, m, m2, m3). The values should reflect the actual plant content in the product and not necessarily the product as a whole. To review this notice in its entirety please click here: Lacey Act Requirements.
CBP Outbound Issues Webinar June 10: CBP will host a free trade webinar on Thursday, June 10th from 2:00 3:00 (EDT) to discuss Outbound Issues. To register for this event please follow this link: CBP Webinar on Outbound Issues. Recordings will be available soon of CBP Webinars recently held on ISF and the ACE and ITDS Concept. To listen to these recording when available please follow this link: CBP Trade Outreach Information and Recordings.
World Customs Forum 2010: The World Customs Forum 2010 will be held in Istanbul, Turkey this year on October 6th and 7th. This world class annual forum on matters related to trade and customs is jointly held by the World Customs Organization (WCO) and the Trusted Trade Alliance (TTA). Save the date for what will prove to be one of the most important forums of the year. Further detail and information will be featured in the July edition of the Trade Update.
2010 PICARD Conference in Abu Dhabi: The 2010 PICARD Conference will be jointly organized by the World Customs Organization (WCO) and the International Network of Customs Universities (INCU) and co-hosted by the Centre for Customs and Excise Studies of the University of Canberra and the Abu Dhabi University Knowledge Group. This event will be held on November 23 - 25 at the Beach Rotana Hotel and Towers, Abu Dhabi. For more information please follow this link: 2010 PICARD Conference Details.
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Mexico: Imagine the Possibilities
By Kelby Woodard
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 Trade between the U.S. and Mexico is beginning to boom once again. In March of this year, the U.S. exported $14 billion worth of goods and imported just over $20 billion. Compare that to March 2009 where the U.S. exported $10 billion and imported $14 billion, and the evidence is clear that trade with Mexico is on the rebound. Companies like Polaris Industries have announced their intention to move some manufacturing capacity to Mexico. The future certainly looks bright for this trade lane. That is remarkable news given the current security situation on the border and throughout Mexico.
During his recent state visit, President Calderon laid responsibility for the violence on the U.S.'s inability to stem the flow of weapons to Mexico and our insatiable appetite for illicit drugs. While the cause of this dangerous environment is debatable, the fact remains that the potential for trade between Mexico and the U.S. continues to be stymied by the lack of security and control by the government in Mexico.  The latest example is the suspension of the entire 600 member police force in Monterrey. This is a city that has a traditionally benefited from trade with the U.S. and Europe. It was chosen as a manufacturing hub due in part to its history as a very stable city with a relatively well organized local government. I have walked the streets and river walk in this beautiful city numerous times and have always felt safe. Recent events have shattered the peace, however. The Mexican army determined that the Monterrey police department has been completely infiltrated by organized crime groups. Mexican officials believe that many of its officers work for Los Zetas, a band of special forces deserters turned outlaws. In fact several police officers have already been charged with carrying out kidnappings on behalf of the drug cartels.
(more follows...to read or download the entire
article please follow the link below)
To read the entire
article click here: Mexico: Imagine the Possibilities
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Disturbing Trends
By Michael Laden
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As U.S. Custo ms & Border Protection (CBP) Commissioner Alan Bersin finally takes up position at CBP Headquarters in the Reagan Building, some disturbing new trends relating to import compliance are reverberating throughout the trade community. One of the most chilling reports recently involves the assertion by CBP that the issuance of a Request for Information (CF-28) or Notice of Action (CF-29) constitutes the beginning of a formal "investigation" for customs enforcement purposes. Official commencement of an investigation legally prevents an importer from making a Prior Disclosure to CBP about errors found in a review of entries or other declarations made to CBP. Without the protections offered by a Prior Disclosure the importer could be liable for significant penalties and liquidated damages. No less than two importers we are aware of are reporting that they received Requests for Information (CF-28's) from CBP, and upon closer examination determined that a Prior Disclosure was necessary to correct some older entries. Their Prior Disclosures were summarily denied by CBP citing the CF-28 as the official commencement of an investigation. Past practice has never involved the CF-28 or 29 as a milestone in the beginning of an investigation and there are rumors that a case concerning this issue is now before the Court of International Trade.
Another importer reported that a CF-28 they received from CBP contained the following added verbiage, "Pursuant to 19 CFR 162.74(i)(1)(i) this form is to inform you that U.S. Customs and Border Protection has initiated a formal investigation of [importer's] import activities" and specifically relates to an origin iss ue that CBP was questioning. As a component of your trade compliance program we recommend that you closely examine any and all CF-28's or 29's immediately upon receipt for any added language relating to the commencement of an investigation. If such language is present you may have a very serious situation on your hands.
(more follows...to read or download the entire article please follow the link below)
To read the entire article click here: Disturbing Trends
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Wisps of Wisdom
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At the End of the Day Who's Responsible?
The U.S. Customs Modernization Act of 1993 (Mod Act) makes it abundantly clear that it is the Importer of Record (IOR) who bears the full responsibility for accuracy, timeliness and a whole host of other regulatory requirements. Many importers wrongly believe that their customs broker will shoulder a portion of, if not all of the responsibility for an error. This assumption is flat out wrong!
While an IOR may have a valid "breach of contact or fiduciary responsibility" claim in a civil proceeding, U.S. Customs & Border Protection (CBP) holds the IOR solely and severally liable for compliant and accurate declarations. IOR's are obligated to undertake "reasonable care" in the management of their import processes. They must have these policies and procedures codified in writing. One of the first questions posed in a CBP Audit Questionnaire is, do you have comprehensive, verifiable and written policies and procedures covering your importations?
Importers without written policies are playing a game of Russian Roulette and should consider taking the time and expending the resources necessary to document critical import procedures. You might also find yourself pleasantly surprised as you dissect the process during the documentation exercises because you'll find compliance opportunities or potential expense reductions. So, not only will the procedures help you stay out of harms way with CBP, they might just provide you with better control and some unexpected savings.
The Trade Innovations team has years of experience in helping IOR's establish, re-write, document and/or verify import procedures. Our process usually being with a one or two day diagnostic of your import supply chain. This is followed by a comprehensive report of our findings and a document that flows your current import process. Once all approved changes have been implemented we begin developing the necessary policies and procedures to support it. If you'd like to discuss or explore the possibility of Trade Innovations conducting a diagnostic on your supply chain please contact us by following this link: More Information on Import Diagnostic.
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: C-TPAT Programs
|  The Customs-Trade Partnership (C-TPAT) Program was
formed in the aftermath of 9/11. Both Trade Innovations Principals,
Kelby Woodard and Michael Laden, were instrumental in the development
and design of the C-TPAT program. Kelby and Mike went on to create and
implement a world class program for the nations second largest importer
and one of the seven Charter Members. Since launching Trade Innovations in 2005, they have
successfully assisted a wide array of companies (shippers, carriers,
brokers and forwarders) in developing practical cost effective solutions
for supply chain security and achieving C-TPAT Validated Status. Trade
Innovations specializes in creating customized C-TPAT solutions and can
prepare you for Validation or Re-Validation by CBP. We also can assist
in monitoring the compliance of your overseas suppliers through the
utilization of both 'boots on the ground' and a sophisticated risk
management system. C-TPAT Members gain significant benefits by maintaining
a secure supply chain. Among these benefits are lower examination
rates, head-of-line privileges as well as soft benefits such as reduced
pilferage, brand protection and increased supply chain visibility.
Finally, C-TPAT Members now receive an automatic 50% reduction of ISF
penalties should one be issued. And
of course CBP and Congress are working to establish even more benefits
for C-TPAT Members in good standing in the coming year. If you have
been contemplating C-TPAT or have just been notified of a Validation or
Re-Validation you can trust Trade Innovations and their seasoned C-TPAT
experts to assist you in the process.Call or
e-mail today for a free initial consultation!
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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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| Kelby & Mike's Event Calendar and Upcoming Travel
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Dallas, TX - June 6 - 9 - Mike and Kelby
Chicago, IL - June 13 - 15 - Mike and Kelby
Dallas, TX - June 20 - 23 - Mike
Istanbul, Turkey - October 6 and 7 - Mike and Kelby
Aliso Viejo, CA - October 10 - 14 - Mike and Kelby
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