Compliance Roundup Q & A

Transcription

1 Compliance Roundup Q & A 1. Q: I've heard that ISA is not required to use the CEE. Is that not correct? A: ISA is not a mandatory requirement for participation in the CEE. However, priority consideration will be given to importers enrolled in the Customs-Trade Partnership Against Terrorism (C-TPAT) and Importer Self Assessment (ISA) programs. 2. Q: Is there any web-site that is easily navigated that lists all documents stamps, seals, etc. that each individual country needs for customs clearance? A: No. 3. Q: If so many respondents claim to see no benefit from C-TPAT, but you have observed great benefit, what do you believe is the disconnect? A: The issue is that many of the surveys (including ours) ask importers if they are receiving the C- TPAT benefits promoted by CBP. We've found that the CBP defined benefits are negligible. However, C-TPAT participants do see significant business-related benefits such as increased visibility enabling companies to proactively address supply chain delays. They also experience improved supplier relationships which enable them to implement supply chain improvements. 4. Q: Now that ISF is in full enforcement would CBP look back at ISFs that were filed before the enforcement date? For Example, if an ISF was filed with incorrect B/L info and importer failed to withdraw/delete the ISF, could it be subject to a penalty? A: We don't anticipate that CBP will implement enforcement retroactively. 5. Q: Does ISF apply for in-bond process? A: For shipments consisting entirely of FROB and shipments consisting entirely of goods intended to be transported in-bond as an IE or T&E, the Importer Security Filing must consist of five elements. Importer Security Filings for IE and T&E shipments must be submitted no later than 24 hours before the cargo is laden aboard a vessel destined to the United States and Importer Security Filings for FROB must be submitted any time prior to lading. The following five data elements must be submitted for FROB, IE and T&E shipments: Booking party Foreign port of unlading Place of delivery Ship to party Commodity HTSUS number 6. Q: Would an ISF hold be an indication that a penalty may be assigned? A: No.

2 7. Q: Full enforcement of the ISF regulations was effective Jan 26, 2010; is the July 9th 2013 date is the authorization from HQ to the Field to issue liquidated damages? A: Yes, you are correct. 8. Q: We had a late ISF filing 2 days after they implemented but it didn't show up on CBP Report from the ACE as 'late'. Does this mean it is not subjected to the fine? A: CBP will review the liquidated damage cases at headquarters prior to the field offices initiating the action to insure the intent of the ISF program is maintained. 9. Q: I am already aware of 3 companies receiving penalty notice for late and failure to file. A: You are correct, following the webinar we received confirmation that CBP has issued ISF liquidated damaged. 10. Q: Are there any plans for ISF-type requirements for air or land border imports? A: Not at this time. 11. Q: CBP has publically announced in several industry forums that HQ will continue to review Liquidated Damage cases from the Field prior to initiation for a 12 month period. A: CBP will review the liquidated damage cases at headquarters prior to the field offices initiating the action to insure the intent of the ISF program is maintained. 12. Q: Could you speak a bit more about the requirements for risk assessment evaluation please? A: The Risk Assessment is entirely defined by each C-TPAT member. It should contain elements that address: 1. Mapping Cargo Flow and Identifying Business Partners (directly or indirectly contracted) 2. Conducting a Threat Assessment focusing on: Terrorism, Contraband Smuggling, Human Smuggling, Organized Crime, and conditions in a country/region which may foster such threats and rate threat High, Medium, Low. 3. Conducting a Vulnerability Assessment in accordance with C-TPAT Minimum Security Criteria and rate vulnerability High, Medium, Low. 4. Preparing an Action Plan 13. Q: Will ISA members get addition 'Emphasis'? A: ISA is not a mandatory requirement for participation in the CEE. However, priority consideration will be given to importers enrolled in the Customs-Trade Partnership Against Terrorism (C-TPAT) and Importer Self Assessment (ISA) programs. 14. Q: CBP has also stated publically that a missing or lack of ISF 10 filing is the highest focus followed closely by ISF10's with missing data elements. Obviously CBP is looking to get the information as required in advance of the shipment loading the USA bound conveyance which has not changed from the very stat. A: Missing ISF 10 s are the top priority, the second level of focus will be on incomplete or incorrect ISF10 s.

3 15. Q: How important or required is it that a US manufacturer becomes CTPAT member? A: C-TPAT is a voluntary program. An importer's decision whether to join the program should depend on volume of ocean shipments, origin of shipments and whether the importer's customers require participation. 16. Q: One more point on why CBP issued the July 9th authorization to issue liq dams was due to a slip in the overall compliance rate from the high 90's to mid 80's A: You are correct. 17. Q: Is there a need for ISF filing for truck and train cargo? What are the time requirements? A: In Canada yes, Marine before loading, Air 4 hours before arrival, 2 hours for Rail, 1 hour for truck. 18. Q: I know that the Canada Advance Trade Info data elements have not been formally announced but can you predict what those will be? A: There is a list on the presentation 19. Q: Are there ISF requirements for train and truck cargo? What are the time requirements? A: In Canada yes, Marine before loading, Air 4 hours before arrival, 2 hours for Rail, 1 hour for truck. 20. Q: Will CBSA allow inland examinations? A: Yes, for commercial exams only Health Safety and Security exam will be done at the border. 21. Q: For C-TPAT does each division of a company have to be certified or are they certified based on 1 or more locations? A: You can enroll individual divisions into C-TPAT. We recommend enrolling all divisions when you join the program. You can always develop action plans for divisions that require improvement. 22. Q: When going through a validation is it acceptable to send a consultant instead of company representative to the foreign validation location? The consultant completed a pre-validation audit. A: We strongly recommend against sending a consultant to a foreign validation and/or including them in any meetings with CBP. The company must demonstrate that they manage their own C-TPAT program. That said, consultants can really help a company design a strong C-TPAT program. 23. Q: Not sure if there is any provision for inland inspections or the same type of inbond movement in Canada? Can you comment? A: See # Q: What about arrivals by vessel? See # 20

4 25. Q: We see countries requiring carriers to submit more info with the manifest and in the US the importer has to file the ISF for further detail. Do you see more countries going the Importer submission approach like the ISF or stayinig with manifest augmentation as an approach? A: I believe so, depends on the country legislation 26. Q: Manifest Information by vessel is required prior to loading the Canadian bound vessel. The time frames are different by each mode. Please ask your speaker to qualify which mode he is talking about which up to now sounds like only TRUCK. A: Marine prior to loading, Air 4 hrs prior to arrival, rail 2 hrs, truck 1 hr. 27. Q: Is slide #14 for the USA? I thought he was talking about Canada? A: Yes, this was to show that USA and Canada had similar systems. 28. Q: Regarding the truck carriers shipments as pat of the ATD data is the original factory data required if shipping from an FTZ? A: Yes 29. Q: Currently ISF submission is not required when containers discharge in Canada then railed into U.S. destination. Will Canada customs request this to be submitted? A: No, this is covered through Intransit/FROB 30. Q: What was the name of the last AIR restriction mentioned for the EU on July 3, 2014? A: The EU-Initiative, similar to ACAS in the US is called PRECISE, which stands for Pre-Consignement Information for a Secure Supply Chain 31. Q: I'm concerned about the 2014 Canadian security filing implementation. How can I find out more information? A: CBSA website Advanced Trade Data (ATD) 32. Q: Is an ISF with an incorrect BL late? A: Technically yes, but I would argue that you could argue successfully that the intent to file a timely ISF was there and ask CBP to waive the liquidated damages. 33. Q: Regarding an earlier comment about ISF. What is 'Maritime'? A: Maritime would refer to anything related to Ocean/ Sea transport as opposed to Road or Air 34. Q: Where we can find security requirements for the rest of the world besides Israel, Japan, and Europe? China, for example. A: WCO has a list of all countries, unfortunately that points to the individual countries website. IATA has published a chapter in the TACT manual summarizing customs requirements by country.

5 35. Q: Has the EU published a list of parties to do the validations? A: Not that we are aware of. 36. Q: Will mandatory ACE CF7512 filings be required for truck carrier be required in the future for border crossing? A: Not at this time.