What has been the most complicated part of this trial period process with the final rule?
Complications can arise when working with an importer to gain a comprehensive understanding of all possible commodity requirements/classifications for the importation of their goods. While Customs brokers are able to ascertain much from the documentation required for the filings, importers must be able to provide them with information pertaining to all parties involved in the manufacture, sale and transportation of their shipments, particularly if they aren’t working with one of your agents.
At the end of the day, you are only as good as the information you have. The challenge has become obtaining information from importers with a minimum of extra work for all involved.
Customs relies on the accuracy of this data. If the importer has control of its supply chain, knows its suppliers and has investigated the commodity it intends to import, there shouldn’t be any major setbacks in organizing the data and completing timely and accurate ISF transmissions.
What is your advice for Customs brokers who are tasked with the ISF filing responsibility?
My advice is quite simple — be prepared. There’s no reason for panic. You must consider all possible shipment scenarios where the process could fall apart, and you must have appropriate action plans in place.
With less inventory being warehoused, the industry has been seeing more and more urgent freight; lead time on orders is down and the lead time on the availability of ISF information will also be shortened. If an order must ship last minute, then, in some situations, it could be suggested that a portion of the most urgent commodities move via air.
Yes, it’s a far more costly solution, but the goods will arrive on time and it will give the ISF filer time to ensure 10+2 compliance for the remainder of the shipment that will be transported via ocean.
In the event that the ISF data isn’t transmitted to CBP timely or accurately, importers will be assessed fines of $5,000 to $10,000, or the importer could push its shipment off to a later vessel, causing significant delays. Because shippers should be assisting in preventing these situations, importers should make them aware that if they do not provide accurate and timely transmissions, there will be severe penalties in the form of bill-backs for fines and loss of business.
If followed correctly, 10+2 will accomplish its objective in creating a more secure global supply chain for the international forwarding community.
PAUL CODERE is corporate Customs brokerage manager for AIT Worldwide Logistics, Inc., headquartered in Itasca, Ill. Spanning numerous nationwide locations and an ever-increasing network of international partnerships, the global transportation and logistics provider delivers tailored solutions for a wide variety of vertical markets and industries. Reach him at [email protected] or (800) 669-4AIT (4248).
