As we near the implementation date of Importer Security Filing, TRG Direct is noticing a dramatic spike in new filers.  There is still time to get your self-filing program up and running.  Most importantly you have about 2 months to do so penalty free.

So for you new TRG Direct self-filers, please take note that we have 2 upcoming ISF Vendor compliance webinars.  These webinars are hosted at appropriate times for overseas vendors to hop on during their work day and undergo some ISF realization training.  These have been very effective and we encourage you to get your ISF vendors on!

Email TRG Direct at jdinan@trgdirect.com for more information.  Once again, welcome to the TRG Direct team!

Have you ever wondered why CBP has chosen to inspect your cargo? 

 After the 9/11 terrorist attacks against the United States, Customs and Border Protection (CBP) have updated their cargo examination processes in order to better protect American borders from contraband. One of these changes is the introduction of inspectional technology, known as Vehicle and Cargo Inspection System (VACIS). This system utilizes low-energy x-ray and/or low-energy gamma radiation in order to effectively inspect cargo without slowing down the import process. It also increases the number of daily inspections and since VACIS provides a better picture, physical examinations are less frequent. VACIS allows Customs to identify contraband, such as illegal drugs, currency, or guns.

 CBP will identify which containers will be inspected prior to the vessel’s arrival, and the terminal must make the cargo available for CBP inspection 48 hours after arrival. If you are a direct filer you will be notified of a hold by an ABI cargo release response.  CBP typically opts to inspect cargo from suspected or actual law violators. VACIS can be used at all air, sea, and land ports and for even the most difficult commodities.

 If Contraband is Detected…

 During the examination, the cargo is placed in a shielded enclosure, and gamma rays are sent through the cargo. The amount of gamma radiation detected informs CBP of the density and thickness of cargo, allowing them to identify contraband. It takes only seconds to scan, but it takes 30-40 minutes per container to analyze the image. If any concern arises after a VACIS scan or the shipment is high risk, the container could then go to a Container Examination Station (CES) where individual boxes or pallets are unloaded and scanned with a smaller x-ray machine. It takes about a day to unload, scan, and reload 12 containers. CTPAT members go to the front of the line if their cargo is taken to a CES.

 Since CBP is unable to determine what exactly is in each container, they are looking to the importer for help.  Importer Security Filing is a new initiative that will allow CBP determine which shipments are at a higher risk for National Security threats.  Now that the importer is required to relay the origin, contents, etc of the container, CBP has a head start in their inspection process

Importing Using Section 321

I had a question come in from a Customs broker yesterday about whether or not a Section 321 entry could be direct filed. 

 

Merchandise (with the exception of textiles, waste and garbage shipments) valued at less than $200 U.S. may be released without entry or payment of duty as per Section 321 of the Tariff Act of 1930.

If your shipment meets the requirements for Section 321, we can have the shipment released without preparing an entry. Just fax us the information and we will take care of it.

To our knowledge you cannot direct file a Section 321 entry, however informal entries can be direct filed.

Mike Laden and Kelby Woodard of TRG Direct helped to develop C-TPAT after 9/11.  We have been getting many questions about C-TPAT and its benefits as it has been published that Tier 2 and 3 C-TPAT members will receive further mitigation up to 50% on Importer Security Filing penalties. 

We took the liberty of putting together information on C-TPAT that you may request by sending an email to jleary@trgdirect.com.  We have also found great information on CBP’s websites including a powerpoint on the web portal for C-TPAT members.

CBP currently measures timeliness in the report cards a “24 hours from the AMS filing”.  CBP has made every indication that this will not be the standard for timeliness in the enforcement period, however.  Your goal should continue to be to file the Importer Security Filing at least 24 hours prior to the container being laden on the vessel. 

If you are filing in advance, you should not be concerned about any penalties for timeliness during enforcement.  You may see it as  an ‘untimely’ transmission in your next report card, but that is not an indication that you are not compliant.  This can be a bit confusing at this stage, but it will become much clearer as we approach January 27^th.

If you are a direct filer with TRG Direct, make sure to indicate in the notes section of the ISF when you filed your ISF.  This can help with mitigation.

With the ISF some of our direct filing customers need to establish another entity as an importer/consignee.  There are “rules” associated with this to ensure that the transaction is not rejected. 

1.        Importer/consignee identifier information for U.S. citizens should be identified by Social Security Numbers and U.S. corporations should be identified by IRS numbers.

2.       CBP assigned number are usually only assigned to foreign nationals and companies without an IRS or Social Security Number. 

3.       If there are one or more active importer records already in the Importer/Consignee File with the same name and address, the application for a CBP-assigned number will be rejected.

4.       If there are no pre-existing active importer records in the Importer/Consignee File with the same name and address, the application for a CBP-assigned number will be accepted and the system will automatically assign a new CBP-assigned number to the importer.

TRG Direct has made the sign up process for self-filing of ISF as simple as possible.  Yesterday we noticed a large number of accounts waiting for sign-up, but missing one small piece of information on the Customs’ Power of Attorney.  So we redesigned (not reworded) the POA so that the form is as streamlined as possible.  Now the online sign up is even quicker now that we don’t have to track you down for that one piece missing.

The ISF sign up form consists of a POA, payment information and company information.  It is really that simple.  You can check out our online ISF signup and call us with any questions.

From ISF to Customs entry the timing of your filing will be different.  From Air to Railway the timing of your entry will be different. Questions such as “when exactly can I direct file a customs entry for an Air shipment?” come through our customer service helpline daily.  Since we require a Power of Attorney when direct filing with TRG Direct we are able to run this help line. 

I would give you the answer to the above question, but you may not be a direct filer with TRG Direct so for legal purposes I’ll ask you to send an email to customerservice@trgdirect to get the answer.  If you aren’t already filing with TRG Direct I suggest giving us a call for a demonstration to see how this could potentially be a solution for you.

A common question for those companies looking to bring entry clearance in-house is; Do I need to be a licensed broker to file entries.  The short answer is “no”.  However, this is only if you are a paid employee of the importer of the goods.  It’s a different scenario when looking at related companies.

In TRG Direct’s self filing user group it was stated…”To file as an importer the employee who performs those tasks must be a bona fide employee of the importer that is responsible for the importation of the goods.”

In order to file entries for another “person” i.e. Corporation or other legal entity you have to be a licensed customs broker with a permit to file entries at a particular port of entry. A company cannot file entries for a related company as these are two separate legal entities.

Just because an individual has a brokers license does not mean that that person can file entries on behalf of others. To be able to file entries on behalf of others the licensed individual must have a permit that is issued by the district where they are engaged in the business of being a customs broker. (I have a broker’s license but I cannot personally file entries because I do not currently have a district or national permit allowing me to do so. )

Review 19CFR 111 for the requirements to operate as a customs broker and what compliance work may be performed under a corporate customs compliance umbrella. Filing on behalf of a related company is not one of those functions.

Here is a summary on Mike Laden’s latest article on importer security filing.  Mike is currently in Seattle at the World Customs Organization where he and Kelby Woodard are moderators.  It’s has been hard to keep track of Mike’s where abouts over the past month or so.  He has been a presenter at the ISF Trade Outreach program hosted by CBP.  The events have been taking place each week in various cities throughout the US.  At least we know until at least tomorrow where he is!

Here is the ISF article:

Importer Security Filing (ISF) continues to be the biggest issue our industry faces today because it represents substantive changes for all stakeholders in the supply chain to the way imports have been processed since the days of Columbus. As we approach the deadline for full enforcement of the ISF requirements, Mike has some observations and thoughts about the program so far.

You’ll find the complete article at http://www.i-b-t.net/articles.asp.