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Trade Update
Relevant News and Articles for Global Trade Professionals
Issue: Eight - Published the first Wednesday of every month
August 4, 2010
Customs

Greetings!   

Thank you once again for taking time to read our monthly newsletter.  We hope that you find it informative and useful. It remains our goal to bring you a recap of important trade news covering the last month. 

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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

 

Trade News Briefs
Trade News Briefs
CBP Issues Updated Importer Security Filing (ISF) FAQ:
See Michael Laden's article below for further details.  For a copy of the 63-page FAQ click here: CBP's Updated ISF FAQ.

COAC Asks Congress to Repeal 100% Scanning Rule:  The Commercial Operations Advisory Committee (COAC) a 20-member blue ribbon committee providing advice to the Department of Security and the Treasury Department on matters relating to commercial cargo has called upon Congress to consider repealing the 100% scanning requirement mandated in the Safe Port Act of 2006.  As it currently stands the law requires 1005 scanning of all maritime cargo bound for the U.S. by 2012.  The rule has been widely opposed by the U.S. trade community and our foreign trading partners and governments.  The Maritime Transportation Security Act of 2010 (S.3639) recently introduced by Senators John D. Rockefeller, D-W.V., and Kay Bailey Hutchison, R-Texas, includes a provision to extend the deadline from 2012 to 2015. 

CBP and CPSC Join to Create the Import Safety Commercial Targeting and Analysis Center (CTAC):  U.S. Customs & Border Protection (CBP) and the consumer Products Safety Commission (CPSC) have announced a joint targeting center that is intended to centralize and strengthen federal efforts to protect U.S. consumers. The CTAC, which will be located in Washington, D.C. and have a staff of 30, will target imports, including food, for possible safety violations. Just as with other targeting efforts, the CTAC will rely heavily on data that is provided in entry or entry summary filings and manifests. Other agencies involved in the operation of the CTAC will be the Food and Drug Administration and the Food Safety Inspection Service.

FMC Begins Rulemaking to Eliminate Tariffs:  In February of this year the Federal Maritime Commission (FMC) published its decision to relieve licensed NVOCCs from the costs and burdens of tariff rate publication. The April 29 rulemaking promulgated new and amended regulations that, when given effect, will establish the criteria that must be adhered to by NVOCCs (Non-Vessel Operating Common Carrier's) that seek to be exempt from the tariff rate publishing requirement. Publication of rules tariffs would still be required under the regulations.  The proposed FMC regulations would recognize "negotiated rate agreements," or NRAs, as a new type of instrument that, in function, would serve to set individualized rates as between a shipper and NVOCC.  An NRA is defined in the regulations as a "written and binding arrangement between a shipper and an eligible NVOCC to provide specific transportation service for a stated cargo quantity, from origin to destination, on or after the receipt of the cargo by the carrier or its agent (or the originating carrier in the case of through transportation)."

U.S. and Korea Agree to Mutual Recognition:  Last month South Korea and the U.S. signed a Mutual Recognition Agreement (MRA) for supply chain security.  This means the U.S. Customs & Border Protection (CBP) and the Korean Customs Service (KCS) will mutually recognize the security status of companies operating in both regions.  Members in CBP's C-TPAT (Customs-Trade Partnership Against Terrorism) and KCS's AEO (Authorized Economic Operator) programs will benefit by this MRA.  The Korean MRA makes the fifth one signed by the U.S.; the four other countries are Canada, New Zealand, Japan, and Jordan.

Federal Agencies Issue Joint Strategic Plan on Intellectual Property Enforcement:  A multitude of federal agencies issued the 2010 Joint Strategic Plan on Intellectual Property Enforcement.  The plan calls for 33 enforcement strategies to combat the proliferation of violations.  For a copy of this report please click here: 2010 Joint Strategic Plan on Intellectual Property Enforcement.   

Corrections:
Last month's Trade News Briefs column incorrectly reported that CBP intended to enforce the Residue Rule.  CBP has since backed away from that plan while they continue to consider how or if to enforce it.   


Importer Security Filing (ISF) FAQ Updated

By Michael Laden

U.S. Customs & Border Protection (CBP) posted an updated Frequently Asked Questions (FAQ) on the Importer Security Filing (ISF) recently.  This FAQ contains some important changes summarized below:

�    CBP has been struggling to give importers a meaningful report with credible data.  The current ISF Performance report format does not provide granular transactional ISF data allowing importers to identify which ISF's were problematic.  CBP announced that they are currently developing a data warehouse that will allow importers to create and extract transactional reports.  CBP will first deploy this new reporting format to Tier 3 and Tier 2 C-TPAT Members sometime this fall; non-C-TPAT importers can expect this functionality and reporting sometime in 2011.  (more follows, to read the entire article please click the link below)
.

To read the entire article click here:  Importer Secuirty Filing (ISF) FAQ Updated

Why C-TPAT in 2010

By Kelby Woodard

C-TPATThe argument for and against joining the Customs-Trade Partnership Against Terrorism (C-TPAT) program has not changed since its inception in 2002.  The same questions still must be answered.  What is the benefit?  How much will all this security cost?  Should I use a third party to help us develop our supply chain security plan?  The questions may be the same, but the answers have changed considerably.  Yes it is still beneficial to be in the program.  There is the reduced risk of exams, the 'front of the line' treatment of your shipments, improved operational procedures, and now the reduced fines associated with ISF.  More than ever the answer lies in the need to cultivate a positive partnership with CBP as the lines become increasingly blurred between compliance and security.  In fact your supply chain security plan has now become a key component of the Focused Assessment performed by CBP (even if you have elected not to participate in C-TPAT).   (more follows, to read the entire article please click the link below).


To read the entire article click here:  Why C-TPAT in 2010
In this August Issue of Trade Update
Trade News Briefs
Importer Security Filing FAQ Updated
Why C-TPAT in 2010
Wisps of Wisdom - Trade Compliance Recordkeeping
TRG Direct
Trusted Trade Alliance - WCF 2010
Quick Links
Wisps of Wisdom
Wisps of Wisdom
Trade Compliance Recordkeeping

In this new digital age and in keeping with environmental concerns it is possible to have a largely paperless process that will satisfy most  U.S. recordkeeping and regulatory requirements.  The ability to go paperless of course depends on a number of variables such as current document protocols, data integrity, budget, the sophistication of your company's I.T. resources, etc.  But going completely electronic where feasible can pay big dividends!  Just think of it, no more manual handling and storage of paper, easy retrieval indexed a multitude of ways and easy purge when statutory retention requirements expire.  For companies using off-site storage it can also mean expense reduction.

Before you charge off into a totally electronic environment, a few key recordkeeping tips:

  • Importers must apply for alternate storage methodologies by advance written notification to CBP.  There is no specific format for this request  but you must confirm that your methods that are in compliance with generally accepted business standards will generally satisfy CBP requirements, provided that the method allows for retrieval of requested records within a reasonable time after the request and adequate safeguards are in place to prevent alteration, destruction or deterioration of the records;
  • Frequently test the recordkeeping system and your company's ability to produce records in a timely manner;
  • Make sure that you store and index the customs entry number and entry date;
  • Ensure that you have redundant back-ups of all data stored securely;
  • Most records must be kept a minimum of five (5) years, we recommend

CBP has an Informed Compliance Publication called, "What Every Member of the Trade Community Should Know About: Recordkeeping" for a copy of this document please click here: 
CBP Recordkeeping Publication.


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.

TRG Direct
Importer Security Filing (ISF) Made Easy
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. 
 
TTA Logo
World Customs Forum 2010 - Istanbul


Building Momentum for an Effective Partnership is the theme of this year's World Customs Forum.  This two-day conference focusing on essential building blocks for public-private collaboration in modernization of the international supply chain will be held on October 6th and 7th in Istanbul, Turkey at the Renaissance Polat Hotel.  To view a copy of the most current agenda please follow this link:  World Customs Forum 2010.

This event will be graciously hosted by Turkish Customs and the conference and jointly sponsored by the World Customs Organization (WCO) and the Trusted Trade Alliance.  The agenda will feature Government and Multilateral Policymakers, Senior International Logistics Professionals, Trade Compliance and Supply-Chain Managers, Corporate and Trade Organization Executives, Supply-Chain IT Providers, Legal Advisors, Academics and Economists.

Space is limited, please mark your calendars and save the date today for the most important WCO event of the year.  For more information or to register for the event please click here:  World Customs Forum 2010

Click here to visit  the Trusted Trade Alliance LLC (TTA) site

 
WCF 2010 Logo
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