NCBFAA WEBINAR ADVANCE TRADE DATA ELEMENTS March 1, 2007 Moderated by Mary Jo Muoio and Alan R. Klestadt

The Road to Container Security Initiative Container Security Initiative Advance Trade Data Initiative - ATDI Advance Trade Data Initiative - ATDI (24-Hour Rule) C-TPAT C-TPAT ATS cargo risk assessments ATS cargo risk assessments

Trade Act of 2002 – Section 343 Trade Act of 2002 – Section 343 The 24-hour rule “Information collected shall be used exclusively for ensuring aviation, maritime, and surface transportation safety and security, and shall not be used for determining entry or for any other commercial enforcement purposes.” “Information collected shall be used exclusively for ensuring aviation, maritime, and surface transportation safety and security, and shall not be used for determining entry or for any other commercial enforcement purposes.”

Section 203 “The Secretary … shall require electronic transmission of additional data security elements for improved high-risk targeting, including appropriate security elements of entry data … to be provided as advanced information with respect to cargo destined for importation into the United States prior to loading of such cargo on vessels at foreign seaports.” The Safe Port Act of 2006

CBP Proposed Advance Trade Data Elements 1.Manufacturer name & address 2.Seller name & address 3.Buyer name & address 4.Importer of record number 5.Country of origin of goods 6.HTS number (6 digit) 7.Container stuffing location 8.Consolidator name & address 9.Ship to name & address 10.Consignee number 11.Vessel Stow Plan 12.Container Status Messages

CBP “STRAW MAN” Proposal 1.Applies to maritime cargo only 2.Importer (or designated agent) is responsible for timely, accurate, complete filings, because the importer is the party most likely to have direct knowledge of the information to be filed 3.Filings of data elements 1-10 to be accomplished through ABI and/or AMS, by ABI filers and/or AMS participants 4.Country of origin, tariff classification (6 digit), and manufacturer data must be linked at lowest level on bill of lading. 5.No approval or notice of filings to be given to importer.

NCBFAA Recommendations Authorize only importers and customs brokers to file the 10 advance trade data elements Authorize only importers and customs brokers to file the 10 advance trade data elements Not all importers have direct knowledge of or access to the required data elements Not all importers have direct knowledge of or access to the required data elements Not all importers have contact or contract with manufacturer Not all importers have contact or contract with manufacturer Only importers and brokers understand the applicable legal definitions Only importers and brokers understand the applicable legal definitions The filings are “customs business” reserved for importers and licensed brokers by law because they determine admissibility and the security data elements coincide with entry data elements The filings are “customs business” reserved for importers and licensed brokers by law because they determine admissibility and the security data elements coincide with entry data elements

NCBFAA Recommendations NCBFAA agrees that CBP should use existing technology modules for the security filings NCBFAA agrees that CBP should use existing technology modules for the security filings Provide for single security and entry filings in advance of loading Provide for single security and entry filings in advance of loading At the very least, CBP should restrict filing authority to agents who are regulated, bonded, and subject to U.S. jurisdiction At the very least, CBP should restrict filing authority to agents who are regulated, bonded, and subject to U.S. jurisdiction Limit security filings to a single transmission to reduce risk of error Limit security filings to a single transmission to reduce risk of error Provide authorized members of the supply chain access to the security filings in order to ensure accuracy and completeness Provide authorized members of the supply chain access to the security filings in order to ensure accuracy and completeness

NCBFAA Recommendations Define the 10 data elements in terms of entry filing requirements Define the 10 data elements in terms of entry filing requirements Do not create new definitions or fail to define the terms used Do not create new definitions or fail to define the terms used Do not accept filings based on “information available,” with very limited and well defined exceptions Do not accept filings based on “information available,” with very limited and well defined exceptions Link the data elements together at the lowest level house bill of lading, or limit tariff classification filing requirement to 4 digit level Link the data elements together at the lowest level house bill of lading, or limit tariff classification filing requirement to 4 digit level

NCBFAA Recommendations Phase implementation of the new security filing requirements Phase implementation of the new security filing requirements Provide time for development of new filing processes and information flows Provide time for development of new filing processes and information flows Issue a new informal (“straw man”) proposal before issuing a notice of proposed rulemaking (NPRM) Issue a new informal (“straw man”) proposal before issuing a notice of proposed rulemaking (NPRM) NCBFAA supports CBP’s goal fully and will assist in development of an effective plan NCBFAA supports CBP’s goal fully and will assist in development of an effective plan

TRADE RECOMMENDATIONS INCONSISTENT WITH NCBFAA Expand potential filers to include non-US based freight forwarders and other agents of the importer Expand potential filers to include non-US based freight forwarders and other agents of the importer Do not define all security filing terms same as for entry filing (e.g., country of origin) Do not define all security filing terms same as for entry filing (e.g., country of origin) Allow filing through formats and interfaces in addition to ABI and AMS Allow filing through formats and interfaces in addition to ABI and AMS Do not require linking of origin/manufacturer/classification data in the filing Do not require linking of origin/manufacturer/classification data in the filing On shipments with multiple bills of lading, do not require more than one filing per importer shipment On shipments with multiple bills of lading, do not require more than one filing per importer shipment Enable filings at house bill level without reference to master bill Enable filings at house bill level without reference to master bill

ADDITIONAL TRADE RECOMMENDATIONS Require identification of the seller when the identification of the manufacturer is not known or where articles of different manufacture are commingled Require identification of the seller when the identification of the manufacturer is not known or where articles of different manufacture are commingled Accept manufacturer ID, as defined in CBP directives, in lieu of name and address of manufacturer/supplier/shipper Accept manufacturer ID, as defined in CBP directives, in lieu of name and address of manufacturer/supplier/shipper Give importers/brokers the option to file the 10 data elements when container is sealed rather than when container is loaded on vessel Give importers/brokers the option to file the 10 data elements when container is sealed rather than when container is loaded on vessel Exempt from filing requirements any cargo not to be unladen at U.S. port Exempt from filing requirements any cargo not to be unladen at U.S. port Add bill of lading number as data element number 11 Add bill of lading number as data element number 11 Establish an account-based filing system or account profiles, similar to BRASS, for repetitive and low-risk shipments Establish an account-based filing system or account profiles, similar to BRASS, for repetitive and low-risk shipments 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, DDP shipments, consignments, returns, samples, etc. 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, DDP shipments, consignments, returns, samples, etc. Conduct a cost/benefit study of the data element requirements before implementation Conduct a cost/benefit study of the data element requirements before implementation

Time Line for Further Action March – CBP begins ATDI testing of data elements (volunteer importers/brokers/carriers) (volunteer importers/brokers/carriers) March 15 – NCBFAA officials meet again with CBP officials April – CBP expects to issue NPRM