additional reporting requirements for cargo
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Additional Reporting Requirements for Cargo
10 + 2Adrienne Braumiller
Braumiller Schulz & Co. [email protected]
04/08/23 2
What is 10 + 2?
• Customs and Border Protection (CBP) has been working with COAC in formulating the proposed Security Filing (SF) affectionately known as “10 + 2”.
• The proposed rule will require 10 additional data elements from importers 24 hours prior to foreign lading and 2 data sets from ocean carriers.
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What are the 10 Elements?
• The 10 data elements required of the importer will be:1. Manufacturer’s name and address2. Seller name and address3. Container stuffing location4. Consolidator name and address5. Buyer name and address6. Ship to name and address7. Importer of record number8. Consignee number9. Country of origin goods10. Commodity Harmonized Tariff Schedule (HTS) # up to 6
digits.
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Definitions
1. Manufacturer (or Supplier) Name and Address – the name and address of the entity that LAST manufactures, assembles, produces or grows the commodity. There must be a good faith effort to determine this party, if the importer cannot determine this at the time of filing, the supplier of the finished goods can be used.
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Definitions
1. Manufacturer (or Supplier) Name and Address
2. Seller (or Owner) Name and Address – The last known seller’s (or owner’s) name and address at the time of the security filing. For consigned shipments, household/personal effects shipments, lease transactions and similar contractual arrangements, the name and address of the owner or supplier must be provided in lieu of the seller’s name and address.
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Definitions
1. Manufacturer (or Supplier) Name and Address2. Seller (or owner) Name and Address
3. Buyer (or owner) Name and Address – last known address (again). In case of consignment shipments, household/personal effects, lease transactions or similar, the name and address of the owner or controlling party (trading agent or commodity broker) of the shipment can be provided in lieu of the buyer’s name and address.
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Definitions
1. Manufacturer (or Supplier) Name and Address2. Seller (or owner) Name and Address3. Buyer (or owner) Name and Address
4. Ship to Name and Address – of the FIRST deliver-to party scheduled to physically receive the goods after CBP release.
5. Container Stuffing Location – the physical location where the goods were stuffed into the container. When goods are not containerized (such as break bulk), the location where the goods were made “ship ready”, in some cases this may be the location of the foreign dock.
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Definitions
1. Manufacturer (or Supplier) Name and Address2. Seller (or owner) Name and Address3. Buyer (or owner) Name and Address4. Ship to Name and Address5. Container Stuffing Location
6. Consolidator (or Stuffer) Name and Address – the actual name of the party who stuffed the container, if unknown, the party who arranged for the stuffing must be provided. If the shipment was stuffed at the manufacturer, that name and address must be provided. As before, break bulk shipments, should reflect where they were made “ship ready”.
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Definitions
1. Manufacturer (or Supplier) Name and Address2. Seller (or owner) Name and Address3. Buyer (or owner) Name and Address4. Ship to Name and Address5. Container Stuffing Location6. Consolidator (or Stuffer) Name and Address
7. Importer of Record Number – The unique identifying number of the party that is primarily responsible for the payment of any duties on the merchandise. This must be either the IRS #, Employer Identification #, the Social Security # or the CBP assigned #.
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Definitions
1. Manufacturer (or Supplier) Name and Address2. Seller (or owner) Name and Address3. Buyer (or owner) Name and Address4. Ship to Name and Address5. Container Stuffing Location6. Consolidator (or Stuffer) Name and Address7. Importer of Record Number
8. Consignee Number – unique identifying # of the party(s) in the US to whom the goods are sold. If the goods have NOT been sold at the time of the filing, the unique identifying # of the party in the US to whom the shipper consigned the merchandise must be provided. If it has not been consigned, then the # of the proprietor of the US premises to which the merchandise is to be delivered. Again – an IRS #, EIN #, SS# or CBP # must be used.
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Definitions
1. Manufacturer (or Supplier) Name and Address2. Seller (or owner) Name and Address3. Buyer (or owner) Name and Address4. Ship to Name and Address5. Container Stuffing Location6. Consolidator (or Stuffer) Name and Address7. Importer of Record Number8. Consignee Number
9. Country of Origin (CO) – must be provided for all goods listed at the 6-digit HTS level. The filer the must list the CO that is required on CF 3461 or use the CO shown on the export docs.
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Definitions
1. Manufacturer (or Supplier) Name and Address2. Seller (or owner) Name and Address3. Buyer (or owner) Name and Address4. Ship to Name and Address5. Container Stuffing Location6. Consolidator (or Stuffer) Name and Address7. Importer of Record Number8. Consignee Number9. Country of Origin (CO)
10. Commodity 6-Digit HTS – Up to 10 digits is acceptable.
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What are the other 2?
• To be submitted by the Ocean Carrier or Designated Agent:
– Vessel stow plan –Information such as:• vessel name and operator; • voyage number; • container operator; • equipment number, size and type; • stow position; hazmat code; • and load/discharge ports.
– This would have to be submitted no later than 48 hours after the departure of the vessel from the last foreign port. For voyages less than 48 hours in duration, the plan would have to be transmitted prior to the arrival of the vessel at the first U.S. port.
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What are the Other 2?
– Container status messages – CBP is focused on the following data elements of the existing container status messaging set already utilized to facilitate the interposal handling of containers by streamlining the information exchange between trading partners involved in the administration, commerce and transport of containerized shipments:
• equipment number; • event description, date, time and location; • and vessel.
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Who will File the 10 Importer Elements?
• The importer would be responsible for filing the complete, accurate and timely 10 importer elements and would also be able to designate an approved agent for the submission.
• The importer or agent will be able to file the data elements using either
– the Automated Manifest System (AMS), which would be done by their forwarder or shipping agent (if so designated)
– OR through the Automated Broker Interface (ABI), which would be done by their customs broker (if so designated).
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What will be Targeted and Why?
• What?– Ocean cargo is CBPs primary concern at this
point, however it is planned to be expanded to all transportation modes in the future.
• Why?– To fulfill the requirements pursuant to section
203 of the SAFE Port Act. COAC has agreed that the data elements and definitions would align us with those of the World Customs Organization (WCO) SAFE Framework.
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Concerns
• COAC, however, has given feedback that there should be no mandatory linking of the HTS # to the country of origin and manufacturer/Supplier/Shipper name and address.
• The solution given was the MID, as defined in CBP directives, should suffice in lieu of the full name and address of the manufacturer/supplier/shipper. This would solve several business confidentiality concerns.
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Concerns - Confidentiality?
• Typically there is confidentiality involved in a sales transaction from overseas. The shipper may not want the importer to know who the manufacturer is, as they could cut out them as the ‘middle man’ and go straight to the source for less money.
• The same goes for the reverse, the importer may not want the shipper to know who the ultimate consignee is, as they could also cut out the importer as the middle man.
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Concerns - Confidentiality?
• In order to protect yourself, you may want to use multiple filers to preserve the confidential information in your supply chain.
• Confidential information is prohibited from disclosure pursuant to the Trade Secrets Act (18 U.S.C. 1905) and cargo data provided in excess of the information required by 19 U.S.C. 1431(c) is not required to be publicly disclosed.
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Other Concerns
• COAC has also suggested that the process should be created so that shipments that cannot provide the required information at the time of filing; such as Carnets, DDP/DDU shipments, Returned Goods and samples; could be designated specifically and still allowed to ship. Currently these issues have not been addressed.
• It has been suggested that there should be more flexibility on who can file and how the data elements are transmitted beyond ABI and AMS. This is so non-US based freight forwarders and other parties may file the data.
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Other Concerns
• Currently only a confirmation or acceptance message is set to transmit upon the form being transmitted in proper form. This doesn’t provide a number or identifier that proves acceptance of the accuracy of the data by CBP.
• What if there are multiple countries or origin? It is expected by CBP, to allow multiple manufacturers, COs and HTS #s as in the CF3461
• If the data changes after the vessel has sailed, the SF would need to be amended. CBP has not clarified how soon or what would happen if it is not amended.
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Other Concerns
• Additional liability on the Importer in the already burdensome myriad of requirements. Unless an importer is a self-filer, they are again depending on others to transmit information as accurate with the burden of proof on the importer, not the filer.
• Burden of labor/time on the shipper, raising costs to process shipments that will then be passed on to the importer.
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Questions?
Adrienne BraumillerAdrienne Braumiller
Braumiller Schulz & Co, LLPBraumiller Schulz & Co, LLPWith offices in Dallas, Houston,Chicago and Mexico
Offering a network of trade experts in over 100 countries
Corporate Office:5220 Spring Valley Rd., Suite 200
Dallas, TX 75254214-348-9306