10 + 2 Advance Trade Data Elements For Ocean Shipments

Following review by DHS and OMB, the proposed advanced 10 + 2 data elements amendment to the CBP regulations will be published as a formal notice in the Federal Register for comment by all interested parties.

After review of the comments, a final rule will be published and the new reporting requirements will be in place, phasing in the the final regulations over a period of 12 months.

Proposed Ocean Shipment “10 + 2” Advance Trade Data Elements

Based on CBP analysis and broad trade input, the following proposed 10 additional commercial data elements for ocean shipments were developed for importers:

manufacturer name and address
Seller name and address
Container stuffing location
Consolidator name and address
Buyer name and address
Ship to name and address
Importer of record number
Consignee number
Country of origin of the goods
Commodity HTS number (6 digit)

In addition to these data elements, CBP would require ocean carriers to provide the following two data sets:

Container status messages
Vessel stow plan

This information would be required to be supplied to CBP 24 hours prior to the loading of the vessel at the foreign port It is also noted that the advance data elements would apply only to ocean cargo. Additional reporting requirements regarding other modes of transport will follow.

Background

By way of background, the SAFE Port Act of 2006 mandated that CBP “shall require the electronic transmission. . .of additional data elements for improved high-risk targeting, including appropriate elements of entry data. . .to be provided as advanced information with respect to cargo destined for importation into the U.S. prior to loading of such cargo on vessels at foreign ports.”

CBP had already implemented a number of port security initiatives (CSI, C-TPAT, the 24-hour rule) at the time the SAFE Port Act was enacted. Then, with input from the Commercial Operations Advisory Committee (COAC) and other interested stakeholders, CBP proposed 10 additional commercial data elements of importers in addition to those required under the 24-hour rule (now formalized at 19 CFR 4.7(a) of the Customs regulations). The above-noted additional two elements would be required of the ocean carriers, thus “10 + 2.”

Issues for Comment Once the Proposed Rule Is Published

COAC and other interested stakeholders have been consulted and in frequent contact with CBP during this process, and thus many trade concerns have been taken into consideration as the proposed rulemaking procedures have moved forward. Nonetheless, there came a point in the process when CBP deemed it had sufficient input to draft the new regulations and that exercise took place internally within the agency. Accordingly, the proposed rule, once announced, may raise new questions or set forth requirements that require clarification. The proposed rule should be analyzed carefully and timely comments submitted. The following may be areas to watch out for:

1. Will confidentiality and privacy issued be fully addressed?

CBP’s website recognizes that shippers may not want importers to know who the supplier/manufacturer is and importers may not want the seller to know who their customers are. CBP notes that it would take the position that this data is exempt from disclosure under the Freedom of Information Act, and also prohibited from release under other statutes, such as 18 U.S.C. § 1905 and 19 U.S.C. § 1431(c). Also, the data definitions call for the importer of record and/or consignee number. COAC recommended that only the name and address of the consignee be used, not the IRS number since publication of that number may lead to unauthorized use. These issues regarding the protection of commercial information and privacy may need to be addressed or clarified once the proposed rule is published.

2. Will the importer have enough time to compile the required data?

Importers now have some experience in providing CBP with enhanced data under the “24-hour rule,” but some of the additional elements required under the “10 + 2” initiative (such as the name of the actual manufacturer) may be difficult to ascertain. Again, any concerns that the soon-to-be-issued proposed rule raises in this area should be brought to the attention of the rule drafters at CBP.

3. Will there be sufficient alternative methods for advance filing?

While the pre-draft input process was on-going, COAC recommended a number of methods for filing the additional advance data elements. They included 1) regular filing, 2) submission of a CF-7501 Customs Entry (or CF-214 for FTZ’s), 3) Filing a CF-3461 with two data elements [name and address of consolidator/freight forwarder and container stuffing location], or 4) Filing the CF-7501 or 214 with the two data elements. Close attention should be paid to what filing options are given to importers when the proposed new regulations are published.

4. Will there be some acknowledgement procedure to verify the successful filing?

Another of the trade’s suggestions was that the new rule set forth some procedure or method for electronic acknowledgement to be transmitted from CBP to the filing party if and when the filing was successful, so that the cargo could be loaded and shipped without any additional delay. The ACE Portal and ABI were the suggested vehicles for this acknowledgement process.

5. Will there be an amendment process?

COAC also suggested that the security filing should be based on the best information available at the time of filing, and that a process should be developed whereby a filing could be amended prior the cargo’s arrival. It was suggested that a CF-3461 or 214 entry form filed prior to arrival should be accepted by CBP as the amendment, except to change the name/address of the consolidator and place of container stuffing. If the proposed rule makes no allowance or provision for an amendment procedure, comments may be appropriate on this issue.

There will certainly be other issues and concerns raised by the proposed new CBP regulations, once they are published in the Federal Register. Our office will send out another notice when the proposed rule is published, as that publication date will trigger the comment period. In the meantime, please feel free to contact our office if you have any questions regarding the new “10 + 2” advance data elements or the proposed rulemaking process in general.

Contacting George R. Tuttle Law Offices

Our San Francisco based firm specializes in Customs and international trade matters. Our office phone number is (415) 986-8780 or see our website at www.tuttlelaw.com. To answer any questions that you may have, contact George Tuttle (grt@tuttlelaw.com) or George Tuttle, III (geo@tuttlelaw.com).

The information in this article is general in nature, and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.

All rights reserved. Information has been obtained from sources believed to be reliable. However, because of the possibility of human or mechanical error by our offices or by others, we do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors, omissions, or for the results obtained from the use of such information.

Submit questions or comments to info@tuttlelaw.com
Copyright © 2007 Law Offices of George R. Tuttle,
A Professional Corporation. All Rights Reserved.
1100 Larkspur Landing Circle, Suite 385, Larkspur, CA 94939
Tel: 415.986.8780 Fax: 415.986.0908
Legal Disclaimer
Problems with this site? Contact the webmaster.