Importer Security Filing and Additional Carrier Requirements Notice of Proposed Rulemaking

1. Importer Security Filing and Additional Carrier RequirementsNotice of Proposed Rulemaking What NCBFAA and NEI Members Need to Know January 31, 2008

2. Presenters: • Mr. Richard DiNucci Director, Secure Freight Initiative Customs and Border Protection 202 344-2513 • Ms. Mary Jo Muoio President, National Customs Brokers & Forwarders Association of America, Inc. 202 466-0222

3. Notice of Proposed Rulemaking • Published in the FEDERAL REGISTER • January 2, 2008 • Volume 73, No. 1 • Pages 90-113 • CBP authority for proposed rule • 24-hour rule • Trade Act Regulations • SAFE Port Act

4. Proposed Importer Requirements • Definition of Importer for Purposes of Rule • The party causing the goods to arrive within the limits of a port in the United States • For FROB the importer is construed as the carrier • For IE/TE and FTZ cargo the importer is construed as the party filing the in-bond or FTZ documentation

5. Proposed Importer Requirements Data • Manufacturer (or seller) name and address Name and address of the entity that last manufacturers, assembles, produces, or grows the commodity or name and address of the supplier of the finished goods in the country from which the goods are leaving. Alternative—provide the name and address of party currently reported with a MID on the entry as the manufacturer

6. Data • Seller name and address Name and address of the last known entity by whom the goods are sold or agreed to be sold. If non-purchase, report the name and address of the owner of the goods.

7. Data • Buyer name and address Name and address of the last known entity to whom the goods are sold or agreed to be sold. If non-purchase, report the name and address of the owner of the goods.

8. Data • Ship to name and address Name and address of the first deliver-to party scheduled to physically receive the goods after they have been released from customs custody.

9. Data • Container stuffing location Name and address(es) of the physical location(s) where the goods were stuffed into the container. For break bulk cargo, report the name and address the physical location where the goods were made ‘ship ready’

10. Data • Consolidator (stuffer) name and address Name and address of the party who stuffed the container or arranged for the stuffing For break bulk cargo, report the name and address of the party who made the goods ‘ship ready’ or who arranged for the goods to be made ‘ship ready’

11. Data • Importer of Record Number FTZ applicant identification number IRS, EIN, SSN or CBP assigned number of the entity liable for payment of all duties and responsible for meeting all statutory and regulatory requirements incurred as a result of importation For goods intended to be delivered to a FTZ, report the IRS, EIN, SSN or CBP assigned number of the party filing the FTZ documentation

12. Data • Consignee number(s) IRS, EIN, SSN or CBP assigned number of the individual(s) or firm(s) in the US on whose account the merchandise is shipped

13. Data • Country of Origin Country of manufacture, production, or growth of the article based upon the import laws, rules and regulations of the US

14. Data • Commodity HTSUS number tariff number under which the article is classified in the HTSUS required up to the 6-digit level

15. Compatibility of Definition with Entry Requirements • Manufacturer—can use party used for MID purposes; consistent with CBP Form 3461 • Seller—consistent with invoice requirement • Buyer—consistent with invoice requirement • Ship to--unique • Container stuffing location—unique • Consolidator—unique • Importer of record—consistent with CBP Form 3461 • Consignee—consistent with CBP Form 3461 • Country of origin—consistent with CBP Form 3461 • Commodity HTSUS no—consistent with CBP Form 3461

16. The Link • Manufacturer (or supplier) name and address, country of origin, and commodity HTSUS number must be linked to one another at the line-item level

17. FROB, IE, TEData • Booking party name and address • Foreign port of unlading • Place of delivery • Ship to name and address • Commodity HTSUS number

18. That Was the Ten, This is the Two • Vessel Stow Plan no later than 48 hours after departure from the last foreign port • Prior to arrival for voyages under 48 hours • Standard vessel information • Vessel name • Vessel operator • Voyage number • Per container or unit of break bulk cargo • Container operator • Equipment number • Equipment size and type • Stow position • Hazmat UN code • Port of lading • port of discharge

19. That Was the Ten, This is the Two • Container Status Message • Proposal for carrier to submit a CSM when any of the required events occurs if the carrier creates or collects a CSM in its equipment tracking system • Information to be included • Event code being reported • Container number • Date and time of the event being reported • Status of the container • Location where the event took place • Vessel identification associated with the message

20. Electronic Data Interchange System • The current approved electronic data interchange systems for the ISF are • ABI • AMS • Proposal to permit any ISF filer to gain access to ABI for the purpose of transmitting the ISF, bond required

21. The Missing Link • CBP is proposing that the Importer Security Filing be submitted at the lowest bill level, down to the house bill • Bill be the one under which the cargo is brought to the United States • CBP is proposing that the bill of lading be reported

22. Timing is Everything • ISF for FROB—transmitted anytime prior to lading • Break bulk—transmitted 24 hours prior to arrival • ISF for all other covered cargo--transmitted no later than 24 hours prior to lading

23. Importer or Their Agent • The importer is ultimately responsible of the timely accurate and complete submission of the ISF • One party to aggregate and submit all required ISF elements • Importer may designate an agent to submit the filings

24. Authorized Agents • Eligibility • participation in the approved data interchange system • Basic importation and entry bond • Power of Attorney • Retain and make available to CBP upon request

25. Planes, Trains and Automobiles • This rulemaking specifically applies to all cargo arriving to the US by vessel • Included—containerized and break bulk cargo • Included—RoRo • Excluded—bulk • CBP will continue to evaluate the effectiveness of this rule and will consider additional steps, including expanding the advance data requirements of other transportation modes.

26. Regulatory Compliance • Additional exemptions to be determined via ruling process • Permission to change port of destination or export for IE/TE must be requested • Permission to change an in-bond to consumption entry must be requested • Updated—by party who submitted, after filing and before the goods enter the limits of a port • Withdrawal—by party who submitted, include reason for withdrawal

27. Regulatory Compliance • Verification of Information • Where the party electronically presenting to CBP the ISF receives any of this information from anther party, CBP will take into consideration how, in accordance wit ordinary commercial practices, the presenting party acquired such information, and whether and how the presenting party is able to verify this information. • Where the presenting party is not reasonably able to verify such information, CBP will permit the party to electronically present the information on the basis of what the party reasonably believes to be true.

28. Regulatory ComplianceBonds and Damages • CBP is proposing to amend the basic importation and entry bond • Agreement to comply with ISF • Liquidated damages equal to the value of the goods • CBP is proposing to amend the international carrier bond • If carrier files ISF, agreement to comply with ISF • Liquidated damages equal to the value of the goods • Agreement to comply with vessel stow plan requirements • Liquidated damages equal to $50,000 for each vessel arrival • Agreement to comply with CSM requirement • Liquidated damages of $5,000 per violation, max $100,000

29. Points to Ponder • Proposed data interchange systems • Proposed access to ABI • Bond requirement • Liability and Liquidated damages • Customs business • Notification and query capabilities • Confidentiality

30. Comment Period and ProcessSubstance of the Proposal • Written comments must be submitted to CBP on or before March 3, 2008 • Possible extension • Via portal or mail

31. Comment Period and ProcessCollection of Information • Within the time frame that comments are due regarding the substance of the proposal • Addressed to OMB with copy to CBP

32. Comments to NCBFAA • comm@ncbfaa.org • Reference “ISF”