1. © 2009 Center for Global Trade Education and Compliance Inc. LEGAL UPDATE: Importer Security Filing (aka 10 + 2) International Transportation Management Association March 4, 2009 by Lawrence W. Hanson The Law Office of Lawrence W. Hanson, P.C. The Center for Global Trade Education and Compliance, Inc.

2. © 2009 Center for Global Trade Education and Compliance Inc. Importer Security Filing (aka 10 + 2) The Context of 10 + 2 9 / 11 An alternative for the “open everything” folks An alternative for the “open everything over there” folks 10 + 2 and related programs CSICTPATTWICFAST 10 + 2 in the international context Compare with EU AEO Program (Authorized Economic Operator) WCO and WTO interest

3. © 2009 Center for Global Trade Education and Compliance Inc. Importer Security Filing (aka 10 + 2) 10 + 2 (Importer Requirements) Manufacturer (or supplier) name and address Seller (or owner) name and address Buyer (or owner) name and address Ship-to name and address Container stuffing location Consolidator (stuffer) name and address Importer of record number/foreign trade zone applicant identification number Consignee number(s) Country of origin, and Commodity Harmonized Tariff Schedule number NOT LESS THAN 24 HOURS PRIOR TO LADING

4. © 2009 Center for Global Trade Education and Compliance Inc. Importer Security Filing (aka 10 + 2) 10 + 2 (Carrier Requirements) A vessel stow plan used to transmit information about the physical location of cargo loaded aboard a vessel bound for the U.S; and Container status messages, which report container movements and changes in status (e.g., empty or full). WITHIN 24 HOURS OF CREATION OR RECEIPT

5. © 2009 Center for Global Trade Education and Compliance Inc. Importer Security Filing (aka 10 + 2) 10 + 2 (Intransit requirements) Booking party Ship to party Commodity HTS – 6 Foreign port of unlading Place of Delivery PRIOR TO LADING

6. © 2009 Center for Global Trade Education and Compliance Inc. Importer Security Filing (aka 10 + 2) Who files? ANSWER: The ISF Importer Owner, purchaser, consignee or agent Carrier (Foreign cargo remaining on board (FROB)) Party filing the IE, TE or FTZ documentation

7. © 2009 Center for Global Trade Education and Compliance Inc. Importer Security Filing (aka 10 + 2) Bond Issues Need one for ISF filings Use modified Basic Importation Bond Basic Custodial Bond International Carrier Bond FTZ Operator Bond Technically, liquidated damages of $5,000.00

8. © 2009 Center for Global Trade Education and Compliance Inc. Importer Security Filing (aka 10 + 2) Current status: Effective date – Interim final rule took effect on January 26, 2009 Compliance Date – January 26, 2010 What to do during the interim, final, temporarily postponed, phase in transition period. Interim part Timing of 2 / 10 of the ISF elements Flexible requirements for 4 / 10 elements Final rule – everything else. Comments not sought

9. © 2009 Center for Global Trade Education and Compliance Inc. Importer Security Filing (aka 10 + 2) Current status: Timing of 2 / 10 of the ISF elements Container stuffing location and consolidator ISF importer should file as soon as possible but not later than 24 hours prior to arrival

10. © 2009 Center for Global Trade Education and Compliance Inc. Importer Security Filing (aka 10 + 2) Current status: Flexible requirements for 4 / 10 elements Manufacturer (supplier) name / address Ship to party Country of origin Commodity HTSUS number Still required 24 hours before lading Can provide “range” of acceptable response Update later

11. © 2009 Center for Global Trade Education and Compliance Inc. Importer Security Filing (aka 10 + 2) 10 + 2 Enforcement CBP will show restraint if importers are making progress toward compliance importers are acting in good faith Specifically: No liquidated damages during review period Wont use “No Load” for failure to comply with the 10 + 2 requirements The “reasonably believes to be true” standard

12. © 2009 Center for Global Trade Education and Compliance Inc. Importer Security Filing (aka 10 + 2) 10 + 2 Enforcement (Later) $5,000.00 penalty, per filing Compliance goals Timeliness Completeness Accuracy

13. © 2009 Center for Global Trade Education and Compliance Inc. Importer Security Filing (aka 10 + 2) 10 + 2 Open Questions Good sold in transit Unknown Bill of Lading number Congressional Monitoring the 100% scan threat Consequence for inaccuracy Today Tomorrow After the first bomb

14. © 2009 Center for Global Trade Education and Compliance Inc. LEGAL UPDATE: Importer Security Filing (aka 10 + 2) Further Questions: Larry Hanson The Law Office of Lawrence W. Hanson, P.C. lwhanson@lwhansonassociates.com 713 961 8000 (telephone) 713 961 8022 (facsimile) The Center for Global Trade Education and Compliance, Inc.