COAC raises concerns over 10+2

NITL (The National Industrial Transportation League) -- Logistics Management, 2/27/2008

The official industry advisory group to Customs and Border Protection (CBP) known as the Departmental Advisory Committee on the Commercial Operations of U.S. Customs and Border Protection and Related Homeland Security Functions (COAC) raises important concerns regarding the Advanced Trade Data Initiative known as, “10+2.” In a letter last week to CBP, COAC said the agency should:

use a phased in approach to the operational implementation of the Importer Security Filing (ISF) sufficient to allow the trade and the Agency adequate time to take the steps necessary for effective implementation without an undue disruption to commerce to CBP’s information systems. COAC recommends that the effective date for all filers to be 12 months from the time of the effective date of the final rule, subject to implementation progress;
the proposed imposition of liquidated damages in connection with the ISF is unnecessary and should be deleted;
there must be no,”linking” of the data elements in the ISF. Instead filers should transmit all required information in an established format, allowing CBP to manipulate the data to best achieve effective 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;
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 ISF;
the ISF and the SAFE Framework of Standards promulgated by the World Customs Organization should be harmonized;
the carrier messaging requirements must be clearly defined so that the carriers may carry out an effective implementation of their portion of the security filing requirement; and,
provide a more realistic and collaborative cost, benefit and feasibility study as COAC believes that the costs used are underestimated in the NPRM.

While making these concerns known, COAC nevertheless said that for the program to be successfully implemented it must (1) achieve national security aims of the ISF,(2) will not unduly burden the U.S. import supply chain, (3) will not disrupt other CBP systems and programs, and (4) will result in solid, short term implementation.

In addition to these views, members of COAC have also been debating more details contained in the NPRM. While specific elements of these deliberations are not available to the public due to differences among members of the COAC, one interesting observation is that the ISF which will be required from importers will affect over 800,000 entities. In comparison, this is orders of magnitude more complex than the 24 hour rule which was primarily imposed on ocean carriers.

A sub-group of the League’s Select Committee on Security continues to meet in reviewing relative positions on details of the NPRM for use in the League’s comments. Comments are due at CBP on or before March 18, 2008.

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