Rock-It Readies for Final Phase of 10+2 in January

On January 26, 2009, U.S. Customs and Border Protection (CBP) began implementing new clearance procedures for ocean freight shipments that required additional information from importers and freight carriers before clearance was granted.  One year later, on January 26, 2010 the final phase of the initiative will begin and companies out of compliance with the regulations will be subject to fines and possible seizure of the cargo by Customs.

 

According to the “Importer Security Filing and Additional Carrier Requirements” Interim Final Rule (docket number: USCBP-2007-0077) also referred to as the 10 + 2 Initiative, “the required information is reasonably necessary to improve CBP’s ability to identify high risk shipments so as to prevent smuggling and ensure cargo safety and security.” Ten data elements are required from the importer and two data elements are required from the ocean carrier within a tight time frame (usually 24 hours) prior to departure and/or arrival including:

Ten Data Elements Required from Importer:

1. Manufacturer (or seller) name and address

2. Seller name and address

3. Buyer name and address

4. Ship-to name and address

5. Container stuffing location

6. Consolidator (stuffer) name/address

7. Importer identification number

8. Consignee identification number

9. Country of origin

10. U.S. harmonized tariff number

Two Data Elements Required from Carrier:

1. Vessel stow plan

2. Container status message

In the context of international importations, identifying the importer of record is a frequent point of discussion.  First time importers and those that have not established networks or local representatives are often at a disadvantage because they have no official importer of record to designate. The importer is liable for all duties (secured by a surety bond) and compliance with all statutory and regulatory requirements resulting from importation of the goods. It is necessary for these companies to designate a U.S. representative or a licensed customs broker for this purpose.

The geo-political climate of the world has increased the complexity of international transportation logistics.  While the modes of transportation remain the same, the procedures and regulations that govern trans-border shipping, coupled with heightened security requirements such as the 10 + 2 Initiative, highlight the need for expertise in this area.  Designating an experienced international freight logistics company that is also a licensed customs broker, to handle time-sensitive shipments affords importers a number of important benefits:

·    Licensed customs brokers to facilitate compliance with new regulations

·    Streamlined door-to-site transportation and clearance procedures

·    Designation of the customs broker as the importer of record

·    Posting of the required surety bond to guarantee payment of duties

In January, CBP may issue liquidated damages of $5,000 per violation for the submission of an inaccurate, incomplete or untimely filing of the required documents and information. If the goods arrive without the correct filing, CBP may refuse to grant permission to unload the shipment and may seize the cargo.  Some noncompliant shipments could be subject to “do not load” orders at the point of origin.