NCBFAA WEBINARNCBFAA WEBINAR

10 +2 10 +2

ADVANCE TRADE DATA ELEMENTSADVANCE TRADE DATA ELEMENTS

March 1, 2007March 1, 2007Moderated byModerated byMary Jo Muoio and Alan R. KlestadtMary Jo Muoio and Alan R. Klestadt

The Road to 10 + 2The Road to 10 + 2

Container Security InitiativeContainer Security Initiative Advance Trade Data Initiative - ATDIAdvance Trade Data Initiative - ATDI

(24-Hour Rule)(24-Hour Rule) C-TPATC-TPAT ATS cargo risk assessmentsATS cargo risk assessments

Trade Act of 2002 – Section 343Trade Act of 2002 – Section 343

The 24-hour ruleThe 24-hour rule

“ “Information collected shall be used Information collected shall be used exclusively for ensuring aviation, exclusively for ensuring aviation, maritime, and surface transportation maritime, and surface transportation safety and security, and shall not be safety and security, and shall not be used for determining entry or for any used for determining entry or for any other commercial enforcement other commercial enforcement purposes.”purposes.”

Section 203Section 203 “The Secretary … shall require electronic “The Secretary … shall require electronic transmission of additional data security elements transmission of additional data security elements for improved high-risk targeting, including for improved high-risk targeting, including appropriate security elements of entry data … to appropriate security elements of entry data … to be provided as advanced information with be provided as advanced information with respect to cargo destined for importation into the respect to cargo destined for importation into the United States prior to loading of such cargo on United States prior to loading of such cargo on vessels at foreign seaports.”vessels at foreign seaports.”

The Safe Port Act of 2006The Safe Port Act of 2006

CBP Proposed CBP Proposed Advance Trade Data ElementsAdvance Trade Data Elements

1.1. Manufacturer name & addressManufacturer name & address2.2. Seller name & addressSeller name & address3.3. Buyer name & addressBuyer name & address4.4. Importer of record numberImporter of record number5.5. Country of origin of goodsCountry of origin of goods6.6. HTS number (6 digit) HTS number (6 digit) 7.7. Container stuffing locationContainer stuffing location8.8. Consolidator name & addressConsolidator name & address9.9. Ship to name & addressShip to name & address10.10. Consignee numberConsignee number

11.11. Vessel Stow PlanVessel Stow Plan12.12. Container Status MessagesContainer Status Messages

CBP “STRAW MAN” ProposalCBP “STRAW MAN” Proposal

1.1. Applies to maritime cargo only Applies to maritime cargo only 2.2. Importer (or designated agent) is responsible for timely, Importer (or designated agent) is responsible for timely,

accurate, complete filings, because the importer is the accurate, complete filings, because the importer is the party most likely to have direct knowledge of the party most likely to have direct knowledge of the information to be filedinformation to be filed

3.3. Filings of data elements 1-10 to be accomplished through Filings of data elements 1-10 to be accomplished through ABI and/or AMS, by ABI filers and/or AMS participantsABI and/or AMS, by ABI filers and/or AMS participants

4.4. Country of origin, tariff classification (6 digit), and Country of origin, tariff classification (6 digit), and manufacturer data must be linked at lowest level on bill manufacturer data must be linked at lowest level on bill of lading.of lading.

5.5. No approval or notice of filings to be given to importer.No approval or notice of filings to be given to importer.

NCBFAA RecommendationsNCBFAA Recommendations

Authorize only importers and customs brokers to file the 10 advance trade Authorize only importers and customs brokers to file the 10 advance trade data elementsdata elements

• Not all importers have direct knowledge of or access to the required Not all importers have direct knowledge of or access to the required data elementsdata elements

• Not all importers have contact or contract with manufacturerNot all importers have contact or contract with manufacturer• Only importers and brokers understand the applicable legal definitionsOnly importers and brokers understand the applicable legal definitions• The filings are “customs business” reserved for importers and licensed The filings are “customs business” reserved for importers and licensed

brokers by law because they determine admissibility and the security brokers by law because they determine admissibility and the security data elements coincide with entry data elementsdata elements coincide with entry data elements

NCBFAA RecommendationsNCBFAA Recommendations NCBFAA agrees that CBP should use existing technology NCBFAA agrees that CBP should use existing technology

modules for the security filingsmodules for the security filings

• Provide for single security and entry filings in advance of Provide for single security and entry filings in advance of loadingloading

• At the very least, CBP should restrict filing authority to At the very least, CBP should restrict filing authority to agents who are regulated, bonded, and subject to U.S. agents who are regulated, bonded, and subject to U.S. jurisdictionjurisdiction

• Limit security filings to a single transmission to reduce risk Limit security filings to a single transmission to reduce risk of errorof error

• Provide authorized members of the supply chain access to Provide authorized members of the supply chain access to the security filings in order to ensure accuracy and the security filings in order to ensure accuracy and completenesscompleteness

NCBFAA RecommendationsNCBFAA Recommendations Define the 10 data elements in terms of entry filing Define the 10 data elements in terms of entry filing

requirementsrequirements

• Do not create new definitions or fail to define the terms Do not create new definitions or fail to define the terms usedused

• Do not accept filings based on “information available,” Do not accept filings based on “information available,” with very limited and well defined exceptionswith very limited and well defined exceptions

• Link the data elements together at the lowest level house Link the data elements together at the lowest level house bill of lading, or limit tariff classification filing bill of lading, or limit tariff classification filing requirement to 4 digit levelrequirement to 4 digit level

NCBFAA RecommendationsNCBFAA Recommendations

Phase implementation of the new security filing requirementsPhase implementation of the new security filing requirements

• Provide time for development of new filing processes and Provide time for development of new filing processes and information flowsinformation flows

• Issue a new informal (“straw man”) proposal before issuing Issue a new informal (“straw man”) proposal before issuing a notice of proposed rulemaking (NPRM)a notice of proposed rulemaking (NPRM)

• NCBFAA supports CBP’s goal fully and will assist in NCBFAA supports CBP’s goal fully and will assist in development of an effective plandevelopment of an effective plan

TRADE RECOMMENDATIONS TRADE RECOMMENDATIONS INCONSISTENT WITH NCBFAAINCONSISTENT WITH NCBFAA

Expand potential filers to include non-US based freight Expand potential filers to include non-US based freight forwarders and other agents of the importerforwarders and other agents of the importer

Do not define all security filing terms same as for entry filing Do not define all security filing terms same as for entry filing (e.g., country of origin)(e.g., country of origin)

Allow filing through formats and interfaces in addition to ABI Allow filing through formats and interfaces in addition to ABI and AMSand AMS

Do not require linking of origin/manufacturer/classification Do not require linking of origin/manufacturer/classification data in the filingdata in the filing

On shipments with multiple bills of lading, do not require On shipments with multiple bills of lading, do not require more than one filing per importer shipmentmore than one filing per importer shipment

Enable filings at house bill level without reference to master Enable filings at house bill level without reference to master billbill

ADDITIONAL TRADE ADDITIONAL TRADE RECOMMENDATIONSRECOMMENDATIONS

Require identification of the seller when the identification of the manufacturer is Require identification of the seller when the identification of the manufacturer is not known or where articles of different manufacture are comminglednot known or where articles of different manufacture are commingled

Accept manufacturer ID, as defined in CBP directives, in lieu of name and address Accept manufacturer ID, as defined in CBP directives, in lieu of name and address of manufacturer/supplier/shipperof manufacturer/supplier/shipper

Give importers/brokers the option to file the 10 data elements when container is Give importers/brokers the option to file the 10 data elements when container is sealed rather than when container is loaded on vesselsealed rather than when container is loaded on vessel

Exempt from filing requirements any cargo not to be unladen at U.S. portExempt from filing requirements any cargo not to be unladen at U.S. port Add bill of lading number as data element number 11Add bill of lading number as data element number 11 Establish an account-based filing system or account profiles, similar to BRASS, for Establish an account-based filing system or account profiles, similar to BRASS, for

repetitive and low-risk shipmentsrepetitive and low-risk shipments Accept “not known” in lieu of required data under certain conditions – e.g., Accept “not known” in lieu of required data under certain conditions – e.g.,

consignee number may not be known in advance for goods sold in transit, carnets, consignee number may not be known in advance for goods sold in transit, carnets, DDP shipments, consignments, returns, samples, etc.DDP shipments, consignments, returns, samples, etc.

Conduct a cost/benefit study of the data element requirements before Conduct a cost/benefit study of the data element requirements before implementationimplementation

Time Line for Further ActionTime Line for Further Action

March 10-15 – CBP begins ATDI testing of data March 10-15 – CBP begins ATDI testing of data elements elements

(volunteer importers/brokers/carriers)(volunteer importers/brokers/carriers)

March 15March 15 – NCBFAA officials meet again with – NCBFAA officials meet again with CBP officials CBP officials

April – CBP expects to issue NPRMApril – CBP expects to issue NPRM

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