COAC Makes 37 Recommendations for CBP's Draft Proposal to Require Additional Advance Data Elements for Maritime Cargo (10+2)

(In late 2006, CBP issued a draft proposal³ to facilitate its development of regulations to require 10 additional data elements from importers 24 hours prior to foreign lading and 2 data sets from ocean carriers (also referred to as the 10+2 proposal and Security Filing (SF)). The comment period has closed on the draft and CBP 's Web site states that it is developing a proposed rule, which will be published in the Federal Register along with a request for comments.)

Highlights of COAC's 37 Recommendations

COAC's 37 recommendations cover the following areas: (1) the 10+2 data elements and definitions, (2) parties to file the data, (3) how the data elements will be filed, (4) implementation of the data elements, (5) final regulations, and (6) other recommendations.

Highlights of COAC's recommendations include (partial list):

SF data elements, definitions should align with those of the WCO SAFE Framework. Where not inconsistent with the recommendations in this document, the proposed SF data elements and definitions should align with those of the World Customs Organization (WCO) SAFE Framework.

System used for filing should take up to a 10-dight HTS. The SF will include an Harmonized Tariff Schedule (HTS) number at only the 6-digit level&894; however the system used for filing should be capable of accepting up to a 10-digit HTS.

Manufacture ID should be accepted in lieu of certain full names, addresses. The Manufacturer ID, as defined in CBP directives, should be accepted in lieu of the full name and address of the manufacturer/supplier/shipper.

FROB, IIT, I.E. should be exempt from SF requirement in near term. Freight Remaining on Board (FROB), Instruments of International Traffic (IIT), and Immediate Exportation (I.E.) should be exempt from the SF requirement in the near term.

Access to approved interfaces should be expanded. Access to approved interfaces, such as the Automated Broker Interface (ABI) and the Automated Manifest System (AMS), should be expanded to include non-US based freight forwarders and other parties who may be capable of filing the SF. CBP should post information detailing who may file the advance data and explaining how a party may qualify to file information through these interfaces.

Flexibility of who may send SF should be enhanced. Flexibility of who may send SF should be enhanced by allowing other formats and interfaces in addition to ABI and AMS.

Filing should be done by single party. The filing should be done by a single party&894; however, that party may rely on information from more than one source for the purpose of preparing the SF. CBP and the trade should remain open to proposals for any viable means by which a single SF could be done by more than one party.

CBP should transmit a confirmation or acceptance message that data has been filed. CBP should transmit a confirmation or acceptance message with a unique identifier that the advance data has been successfully filed. The acceptance message is not expected to validate the data transmitted, simply to confirm that it has been received in the required format.

Ways in which the SF requirement may be satisfied. A minimum of 24 hours prior to loading, at the option of the importer, the SF requirement may be satisfied by any one of the following:

1. Filing the SF
2. Filing CBP Forms 3461 or 214 (Application for Foreign-Trade Zone (FTZ) Admission and/or Status Designation), and two data elements*
3. Filing CBP Forms 7501 or 214
4. Filing CBP Forms 7501 or 214, and the two data elements*

*Name and address of consolidator/forwarder name and container stuffing

location.

There should be a test of the concept and mechanics prior to the phase-in period. There should be a test of the concept and the mechanics of all of the advance data elements filing with a volunteer group before the concept moves to the phase-in period.

SF should be based on best information available at the time of filing. The SF should be based on the best information available at the time of filing. CBP, in consultation with the trade, should develop a process to amend a filing prior to arrival.

Phase-in period should include a set of FAQs addressing issues associated with SF, etc. The phase-in period should include a set of frequently asked questions (FAQs) addressing issues associated with the SF, and specific guidelines on how the phase-in will work and what rules will apply.

During any test period or phase-in period, CBP should consider commencing its SF test using fewer than the full 10+2 data elements. During any test period or phase-in period, CBP should consider commencing its SF test using fewer than the full 10+2 data elements.

CBP should consider extending the minimum entry and selectivity time frame for entry release and FTZ admission purposes. CBP should consider extending the 5-day minimum entry and selectivity time frame for entry release and FTZ admission purposes to after confirmed departure of the vessel from its last foreign port to the U.S.

¹ This committee was formerly known as the "Commercial Operations Advisory Committee."

² Press reports indicate that these recommendations were submitted to CBP at the February 14, 2007 COAC meeting. According to one industry source, these recommendations were formulated by COAC's Advance Data Elements Subcommittee and endorsed by COAC as a whole at the February 14, 2007 meeting.

³ The draft proposal has also been referred to as a strawman proposal and a white paper.

(See ITT's Online Archives or 02/06/07 news, 07020605, for BP summary of CBP extending the deadline for comments on the draft proposal to February 14, 2007. See ITT's Online Archives or 02/13/07 news, 07021310, for FAQ on SF. See ITT's Online Archives or 01/31/07 news, 07013125, for BP summary announcing the COAC meeting.)

COAC's 37 recommendations (dated February 14, 2007) available at http://www.apl.com/security/documents/COAC_SF_Recommendations_Final_021407.pdf

CBP's Web site providing information on the 10+2 proposed rule available at http://www.cbp.gov/xp/cgov/import/carriers/trade_overview.xml