Along with the cost of compliance, there’s the cost of not complying. Companies that fail to provide accurate info can get hit with fines of up to $5,000 per shipment, with a cap of $10,000 per filing. And, the CBP can detain shipments that appear suspicious.
For this year, the CBP is taking a measured approach to enforcing the new regulations, and has focused primarily on high-volume shippers, says Susan Pomerantz, executive director, global consulting, with JPMorgan. The agency now is reaching out to small and midsize shipping firms. Over time, the CBP’s enforcement efforts are likely to ramp up, as well.
In January, U.S. Customs and Border Protection (CBP) launched an Importer Security Filing program, more commonly referred to as “10+2.” The program gained the moniker “10+2” because it requires importers to electronically file 10 pieces of information and carriers to file two pieces of data, both with the CBP, 24 hours before cargo is loaded onto a ship.
1. Importer of record number
2. Consignee number
3. Seller (owner) name/address
4. Buyer (owner) name/address
5. Ship-to party
6. Manufacturer (supplier) name/address
7. Country of origin
8. Commodity HTS-6
9. Container stuffing location
10. Consolidator (stuffer) name/address
However, the CBP has said that it would “exercise the least amount of force necessary to obtain full compliance.” Based on Pomerantz’s discussions with clients, this seems to be the case, as none have yet been fined nor had their goods held, although some have received noncompliance notices. The CBP has said that its focus – at least so far – is on compliance and gaining the information it needs, rather than on levying fines.
The goal of the requirements is, of course, to better protect the U.S. from individuals who would use the ports to import items that would pose a security risk. In order to effectively identify suspicious shipments among the sheer volume of goods arriving through the country’s ports, the CBP needs a data-driven program nbajerseys's Blog, Pomerantz notes. In 2008 nbajerseys's Blog discontinued oakley sunglasses, more than 450 million tons of goods entered the U.S through just the top ten ports alone, the American Association of Port Authorities reports. The goal is to use this program to develop a database of typical shipping history, and then be able to quickly comb the information to find any red flags.
Of greater concern among shippers are some indications that the CBP may tie the 10+2 to another program, C-TPAT, or the Customs-Trade Partnership Against Terrorism. C-TPAT is a voluntary program (10+2 is mandatory), in which importers examine their supply chain practices and ensure their integrity. In return, the companies benefit from a reduction in the number of CBP inspections discontinued oakley sunglasses, as well as priority processing when their cargo is inspected. Some companies are concerned that a violation, even inadvertent, of 10+2 may jeopardize the time and effort they’ve put into their C-TPAT programs. So far, this doesn’t appear to have happened, however.
In addition, the carrier is to provide the vessel stowage plans, along with status messages detailing container movement and status changes – the additional two in 10+2.
The info required is:
Obviously, the new regs cost companies money. Last year, the National Association of Manufacturers (NAM) estimated that the cost to manufacturers could hit $20 billion annually and cause delays and missed shipments. NAM proposed an approach it calls “Universal Importer Profile,” in which companies would create importer profiles that addressed their entire supply chains, rather than taking a transaction-by-transaction approach. This would offer importers more flexibility and the CBP greater visibility into a company’s supply chain, NAM says.
Clearly, the new regs cost time and money. What’s more discontinued oakley sunglasses, their prevalence is only going to expand, as other countries and regions like the Euro zone develop similar regulations for ship imports, as well as air and truck cargo. The EU’s Import Control System, for instance, goes into effect at the end of this year. While the programs themselves may vary, the need to provide border agencies with accurate shipment info on a timely basis is intensifying. ###
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