COAC recommends changes to “10+2” rule

COAC recommends changes to “10+2” rule

COAC recommends changes to “10+2” rule

A key federal advisory panel on Wednesday asked U.S. Customs and Border Protection to phase in the operational rollout of a new import cargo security measure for advance data and publish it as an interim rather than a final rule to ensure smooth implementation.
   The government is collecting comments on its so-called “10+2” proposal that would require importers to electronically provide details about a shipment’s chain of custody 24 hours prior to vessel departure overseas. Ocean liners would have to submit container stow plans and status messages.
   The rule is controversial because it would require most companies to reconfigure business processes, invest in new information technology connections and possibly delay shipments until they can collect some of the data elements they currently don’t receive in the transaction process.
   CBP has stressed in the run up to the rulemaking process that it intends to allow for a one-year learning curve until full enforcement kicks in.
   The Commercial Operations Advisory Committee stressed in an eight-point letter that the phase-in period should also apply to the actual technical mechanics of implementation so that importers, their agents and CBP can align their systems to properly transmit and receive the information without glitches that could disrupt commerce. It recommended that the effective date for all filers be 12 months from the time of the final rule, subject to implementation progress.
   COAC, meeting in Tucson, Ariz., also said an interim final rule would allow industry to see the details of the data requirements and give them time to develop or adapt their systems and software to properly transmit the filing.
   An interim final rule has the full force and effect of law, but it allows stakeholders to continue submitting comments that the agency will consider before deciding whether to issue a revised final rule or confirm the interim rule as final.

Basham

   CBP Commissioner Ralph Basham assured the 20-member industry body that “we recognize that we need to do this in an appropriate way (and) establish a timeline that does not cause failure” for CBP or individual companies. He promised that the agency would continue to work with the trade community on implementation.
   Christopher Koch, president of the World Shipping Council, repeated a request voiced by others that CBP find a way to start the dialogue on data formats and other IT requirements even as the agency maintains silence on the rule, as required by law, during the open comment period.
   COAC’s other recommendations are:
   ' The use of liquidated damages to penalize companies for inaccurate or late security filing should be deleted from the rulemaking because the threat of No Load messages preventing a shipment on a vessel is a sufficient penalty and deterrent.

Koch

   ' There must be no “linking” of the data elements in the importer security filing. Instead filers should transmit all required information in an established format, allowing CBP to manipulate the data to best achieve security screening.
   ' There must be a timely confirmation message, with a unique identification number issued, indicating that the security filing has been completed, filed and accepted. Industry wants this so that foreign shippers and carriers have confidence to move ahead with loading a shipment without fear of future penalty.
   ' The type, length and definition of each required data element must be clearly described in the regulations and any accompanying instructions, so that filers may properly program their IT systems to accommodate the security filing.
   ' “10+2” and the World Customs Organization’s SAFE Framework of Standards for supply chain security should be harmonized.
   ' The carrier messaging requirements must be clearly defined.
   ' A “more realistic and collaborative cost benefit and feasibility study” be conducted because of concerns that the total industry costs are understated in the Notice of Proposed Rulemaking.
   COAC indicated that it was not objecting to CBP’s strategy of collecting more advance import data, but simply seeking process changes.
   Bruce Leeds, a senior import-export manager for Boeing and COAC’s spokesman, said the panel reserved the right to call a special teleconference meeting on March 14 to determine if COAC needs to submit more detailed recommendations before the comment period closes on March 18.
   The agency has received about a dozen comments so far.
   Rich DiNucci, CBP’s “10+2” program manager, said he is considering holding a public roundtable with one or two companies who are sharing import data with CBP as part of the Advance Trade Data Initiative to test transmission methods. The companies have volunteered to share their experiences so far to help give the trade community a comfort level with the filing process, he said.
   DiNucci said about 25,000 data sets have been received so far. The timing of reports is still an issue that is being resolved, he added. ' Eric Kulisch