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Trade Update
Relevant News and Articles for Global Trade Professionals
Issue: Ten - Published the first Wednesday of every month
October 6, 2010
Customs

Greetings!

Thank you once again for taking time to read our monthly newsletter. We hope that you find it informative and useful. It remains our goal to bring you a recap of important trade news covering the last month.

Our readership continues to grow every month. If you enjoy this newsletter please consider sharing it with your colleagues. Simply click on the "Forward to a Friend" icon found at the bottom of this newsletter.

As always, the Trade Innovations Team welcomes your ideas, questions, or suggestions. We can be reached by e-mail at
info@tradeinnovations.com
. In the meantime, please accept our wishes for a safe and enjoyable summer.

Sincerely,
The Trade Innovations Team

Trade News Briefs
Trade News Briefs
10,000 and Counting:
U.S. Customs and Border Protection (CBP) announced on September 23rd that the Customs-Trade Partnership Against Terrorism (C-TPAT) program has surpassed 10,000 members. C-TPAT membership consists of a compilation of supply chain stakeholders including importers, carriers, brokers, forwarders and suppliers. For more information please follow this link: C-TPAT Reaches 10,000 Members

ICC Publishes Revised Incoterms: The International Chamber of Commerce (ICC) published Incoterms 2010 in mid-September. They will go into effect on on January 1, 2011. For more information or to order the revised edition please follow this link: Incoterms 2010

CBP Withdraws Proposed First Sale Changes:
Importers taking advantage of the "first sale" methodology for valuing their U.S. imports heaved a sigh of relief on September 24th as CBP formally withdrew their proposal to develop a "sold for exportation to the U.S." methodology for determining the dutiable value of imported goods. CBP Commissioner Alan Bersin made this one of his priorities after meeting with members of the trade community and representatives from major trade associations. For a copy of the formal notice please follow this link: CBP Formal Withdrawal of First Sale Proposal

CIT Chides CBP in a Stinging Decision: In 1999 two imports of textiles were sampled by CBP. Several months later, well beyond the 30-day conditional release period, CBP demanded redelivery of the shipments. When the importer failed to return the goods to customs custody, CBP sued seeking $120,000 in liquidated damages. On September 16th the U.S. Court of International Trade (CIT) rendered a blunt decision in favor of the Defendant calling the government's case "bankrupt". The court went on to say that the government had no "colorable claim" and that the case "should have never been brought". For a copy of the 64 page decision please follow this link: CIT 10-105 U.S. v Pressman-Gutman

C-TPAT 2010 Partner Survey: CBP along with the Center for Survey Research at the University of Virginia released the results of their 2010 C-TPAT Partner Survey in June. Participants in the C-TPAT program cited tangible and intangible benefits that outweigh the cost participation. For a copy of the results please follow this link: C-TPAT 2010 Partner Survey Results

GAO Issues Report on Maritime Security: The Government Accountability Office (GAO) issued a report relating to Maritime Security and Collaboration Among Partners for Countering Piracy off the Horn of Africa. Somali pirates operating off the Horn of Africa have attacked more than 450 ships and taken nearly 2,400 hostages since 2007. For a copy of this 90 page report please follow this link:
GAO Maritime Security Report

OIG Report on ISA: The Office of the Inspector General i(OIG) ssued a 19 page report on the U.S. Customs & Border Protection's (CBP's) Importer Self Assessment Program. The OIG report concluded that CBP "does not have adequate assurance that participating importers comply with federal trade requirements" and therefore cannot reasonably assert that government revenues are being protected. For a copy of the report please follow this link:
OIG Report on Importer Self Assessment Program

Remarks from BIS Update Conference: President Obama's remarks on efforts to reform export controls delivered on August 31st at the BIS Update Conference can be heard by following this link: BIS Update Conference Remarks

CBSA Issues National Priorities: The Canada Border Services Agency (CBSA) issued its list of national priorities for trade compliance verifications. For a copy of the list please follow this link: CBSA National Trade Verification Priorities

GAO Issues Supply Chain Security Report: The GAO issued a report on Supply Chain Security and Container Security Technologies in September. The report concluded that the Department of Homeland Security has conducted research and development for four container security technology projects, but has not yet developed performance standards for them. For a copy of this 54 page report please follow this link: GAO Report on Supply Chain Security & Container Technology

2011Happy New Year: The government's new fiscal year began on October 1st.

A New Term is Born

By Michael Laden



Time to AdaptLike most industries, global trade has its own unique vernacular that one must navigate and master when first beginning their career. Seasoned practioners in this industry can practically construct entire sentences using only acronyms and obscure terms. Add one more to the list, the term AMS Bill of Lading is a direct outgrowth of the Importer Security Filing (ISF) program mandated by U.S. Customs & Border Protection (CBP) in January of 2008. The AMS Bill of Lading denotes and is a way to differentiate the bill of lading number that was actually entered by the carrier into the CBP Automated Manifest System (AMS). It can be a house or master bill of lading and it has quickly become the most important bill of lading number in the transaction. In order to timely file the ISF an importer or their agent must have the AMS Bill of Lading no later than 24 hours before the vessel sails at origin. Without that critical information and lynchpin the ISF cannot be filed. (more follows, to read the entire article please click the link below).

To read the entire article click here: A New Term is Born

In this October Issue of Trade Update
Trade News Briefs
A New Term is Born
Wisps of Wisdom ELC-ALC Reconcilation
TRG Direct
Trusted Trade Alliance
Quick Links
Wisps of Wisdom
Wisps of Wisdom
ELC-ALC Reconciliation

In last month's column we reminded readers how vital it is that your company have a good command of the Incoterms used in its global transactions. Once the terms of a sale or purchase have been established the next most important thing is that your company has a process whereby it estimates the anticipated landed cost of an item (ELC), and then then compares that to the actual costs (ALC) when received. Without this ability you are essentially operating blind and have no basis by which to accurately measure your margins (or lack thereof).

The ELC-ALC reconciliation is one of the most important and frequently overlooked processes that every importer should be performing on their goods. Without the comparative data at your fingertips it is difficult to "cost" the imported goods and know with reasonable certainty that you are enjoying the profits originally envisioned. Significant ELC-ALC variances should be investigated and can be indicative of overcharges, unanticipated costs, the freight not moving as instructed or other problems.

Simply put, if your company is not taking the time to perform this exercise on a statistically sound sample of consignment (at a minimum) your company may be on the short end of the profit equation or uncompetitive in pricing as a result.
TRG Direct
Importer Security Filing (ISF) Made Easy
Often called "Turbo-Tax" for importers, TRG Direct's best-in-class ISF and direct-filing application is extremely intuitive and very easy to use.

Leveraging all of the system functionality you can literally file your ISF's in a matter of seconds. TRG Direct's web based system is very versatile and allows multiple users.
No permits or licenses are required and any importer can file their ISF's directly with CBP; and your ISF data can now flow directly to a customs entry.

TRG Direct's pricing ($5 per ISF, or $3 per ISF if you also file your customs entry with TRG Direct) can save your company up to 90% off current market rates. TRG Direct accepts both XML feeds and Excel uploads to expedite the filing process even more.


Contact TRG Direct today for a free demonstration of the system.
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Global Reach

Global trade has become the lifeblood of many businesses; it is an engine of economic growth and the means by which millions of individuals make their living. The volume of goods transported internationally continues to expand exponentially. Yet national borders still exist, and with them the need to comply with myriad reporting, documentation, and tax and duty payment obligations. In recent years, ensuring secure trade lanes and product safety in the global supply chain has been placed at the top of the list of priorities for governments, resulting in a new layer of complex requirements to be met to ensure that goods can be moved quickly across borders. Across the globe, the Trusted Trade Alliance is dedicated to helping your company achieve compliant, efficient solutions to these challenges.

The Trusted Trade Alliance provides a full range of consulting and training services focused on assisting business in addressing the challenges of global trade. We provide a comprehensive network of member offices located around the globe, staffed to provide a consistent level of expertise on 5 continents. Our members include noted experts, well-versed in the local requirements of the countries you do business in, as well as recognized leaders in multilateral efforts to make global trade challenges as business-friendly and practicable as possible. Our mission is to provide our customers with high-quality, personalized consulting, training, advice and assistance in the implementation of compliant trade processes at a country, multi-country or global level.

Click here to visit the Trusted Trade Alliance LLC (TTA) site
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