CBP Officials Discuss 10+2 Proposed Rule at February 2008 COAC Meeting (COAC Submits its Comments)

CBP Recognizes Need to Phase-In 10+2

At the meeting, CBP Commissioner Basham stated that CBP recognizes that it needs to make sure that 10+2 is implemented in the correct way and is phased-in over a period of time. According to the Commissioner, CBP will work with COAC to get advice on how to implement 10+2.

Comments on Systems Issues, Etc. Are Being Reviewed by CBP Team

CBP has assembled a team to review comments on the 10+2 proposed rule, noting that the primary focus of the comments has been on systems issues. CBP's team is also talking about how to train field personnel and provide outreach to the trade.

CBP is Reaching Out to ATDI Partners for Advice

CBP officials stated that as part of their examination of the approach they will take from a programming perspective, they have reached out to some of the partners in the Advance Trade Data Initiative (ATDI)². CBP has asked them to participate in a roundtable to discuss how they provide data to CBP under ATDI in order to give the trade community some idea about what CBP is looking at system-wise, what the ATDI partners have experienced, etc.

(As part of ATDI, CBP has been working with a variety of volunteers from the world trade community to test the trade's ability to provide data, including some elements of the importer SF, to CBP. CBP officials have previously stated that they are using ATDI as a "laboratory" to try out certain aspects of 10+2.)

COAC Recommends Phased Implementation/Enforcement, Confirmation Message, Etc.

At the meeting, COAC adopted a list of eight main comments/recommendations which will be submitted as comments to CBP in response to its 10+2 proposed rule.

Highlights of the COAC recommendations contained in its letter include:

1. CBP should use a phased approach to the operational implementation and enforcement of the importer SF requirements sufficient to allow the trade and CBP adequate time to take the steps necessary for effective implementation without an undue disruption to commerce or to CBP's information systems.

COAC recommends that the effective date for all filers be projected to be 12 months from the time of the effective date of the final rule, subject to implementation progress.

1. The proposed imposition of liquidated damages in connection with the importer SF is unnecessary and should be deleted.
2. There must be no "linking" of the data elements in the importer SF. Instead filers should transmit all required information in an established format, allowing CBP to manipulate the data to best achieve effective security screening.
3. There must be a timely confirmation message (with a unique identification number issued) indicating that the SF has been completed, filed, and accepted. (This would provide required assurance to the filer, forwarder/consolidator and the importer of record, and contribute to the success of the importer SF.)
4. 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 information technology (IT) systems to accommodate the importer SF.
5. The importer SF and World Customs Organization's Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework) should be harmonized.
6. The carrier messaging requirements must clearly defined so that the carriers may carry out an effective implementation of their portion of the SF requirement .
7. A more realistic and collaborative cost, benefit, and feasibility study is strongly recommended (as COAC believes that the costs used are understated in the proposed rule).

According to trade sources, COAC also wants publication of the data requirements followed by a phase-in of 10+2 by a volunteer group from the trade using the data and authorized filing systems (Automated Manifest System (AMS) and Automated Broker Interface (ABI). This would allow the trade to properly prepare for the IT portion of the filing and would allow CBP to get "the bugs out."

See future issues of ITT for additional details from this COAC meeting.

Comments on 10+2 Proposed Rule are Due by March 18, 2008

Comments on CBP's proposed 10+2 rule are due by March 18, 2008.

According to CBP, all comments received will be posted without change to http://www.regulations.gov, including any personal information provided. As of the morning of February 20, 2008, 17 comments (from 15 separate commenters) had been posted on CBP's proposed rule (COAC's comments had not yet been posted). The submitted comments may be viewed on the Federal eRulemaking portal at http://www.regulations.gov/fdmspublic/component/main?main=DocketDetail&d=USCBP-2007-0077.

¹Formerly known as the "Commercial Operations Advisory Committee."

²CBP has stated that the goal of ATDI is to gather and analyze specific information already availablefrom commercial supply chain participants in advance of, and in addition to, the 24-Hour Rule and entry data currently collected. Started in 2004 as a maritime security prototype, it was elevated to be part of C-TPAT Best Practices in 2005. CBP has also stated that ATDI provides information further back in the supply chain than the 24-Hour Rule.

(See ITT's Online Archives or 01/17/08 news, 08011710, for the final part of BP's summary of the 10+2 proposed rule, with links to previous parts.

See ITT's Online Archives or 02/04/08 news, 08020405, for BP summary of CBP's 10+2 comment period extension notice.)

COAC's comments (dated 02/13/08) available by emailing documents@brokerpower.com.