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<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'">The Final Rule for 10+2 is expected to be released by mid November.<SPAN style="mso-spacerun: yes">&nbsp; </SPAN>Once the final rule is published, it is anticipated that importers will have a 60-day implementation period with an informed compliance period for one year. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'"><o:p>&nbsp;</o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'">Many in the importing community believe this proposal may be pushed forward or cancelled entirely based on the current economic and political environment.<SPAN style="mso-spacerun: yes">&nbsp; </SPAN>Whether pushed forward or cancelled, Importers should expect the final decision by mid-November.</SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'"></SPAN>&nbsp;</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'"><o:p></o:p></SPAN>&nbsp;</P> 10+2 - Final Rule Expected Next Month

The Final Rule for 10+2 is expected to be released by mid November.  Once the final rule is published, it is anticipated that importers will have a 60-day implementation period with an informed compliance period for one year.

 

Many in the importing community believe this proposal may be pushed forward or cancelled entirely based on the current economic and political environment.  Whether pushed forward or cancelled, Importers should expect the final decision by mid-November.

 

 

<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'">On August 26<SUP>th</SUP>, the Department of Homeland Security (DHS) forwarded the final rule implementing 10+2 to the Office of Management and Budget (OMB).<SPAN style="mso-spacerun: yes">&nbsp; </SPAN>OMB is allowed 90 days to review the rulemaking and determine whether to approve it or return it to the DHS for modification.<SPAN style="mso-spacerun: yes">&nbsp; </SPAN>As part of that process, OMB will give other interested federal agencies until September 16<SUP>th</SUP> to identify their concerns, while the private sector can weigh in over the next few weeks.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'"><o:p>&nbsp;</o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'">Accordingly, a group led by the National Association of Manufacturers has indicated an interest in a series of meetings with OMB to express its desire for a pilot test.<SPAN style="mso-spacerun: yes">&nbsp; </SPAN>OMB&#8217;s ground rules are that it will entertain no new arguments outside the parameters of the views received during the comment process and focus exclusively on whether Customs and Border Protection (CBP) has met the procedural requirements of federal rulemaking in addressing them. <o:p></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'"><o:p>&nbsp;</o:p></SPAN></P>
<P><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA">While CBP will apparently make some changes at the margins, insiders believe that there has been little movement on the most significant issues</SPAN></P>
<P><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"></SPAN>&nbsp;</P> Where is the 10+2 filing?

On August 26th, the Department of Homeland Security (DHS) forwarded the final rule implementing 10+2 to the Office of Management and Budget (OMB).  OMB is allowed 90 days to review the rulemaking and determine whether to approve it or return it to the DHS for modification.  As part of that process, OMB will give other interested federal agencies until September 16th to identify their concerns, while the private sector can weigh in over the next few weeks.

 

Accordingly, a group led by the National Association of Manufacturers has indicated an interest in a series of meetings with OMB to express its desire for a pilot test.  OMB’s ground rules are that it will entertain no new arguments outside the parameters of the views received during the comment process and focus exclusively on whether Customs and Border Protection (CBP) has met the procedural requirements of federal rulemaking in addressing them.

 

While CBP will apparently make some changes at the margins, insiders believe that there has been little movement on the most significant issues

 

<P class=MsoNormal style="MARGIN: 0in 0in 0pt">The public comment period for this proposed rule has ended on March 18<SUP>th</SUP>, 2008.<SPAN style="mso-spacerun: yes">&nbsp; </SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><B>&nbsp;<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p></B></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">U.S. Customs and Border Protection are reviewing the comments received.<SPAN style="mso-spacerun: yes">&nbsp; </SPAN>Customs </P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">is expected to finalize and publish the rule by the summer of 2008.<SPAN style="mso-spacerun: yes">&nbsp; </SPAN>The planned implementation will be 6 to 12 months after the final rule is published in the Federal Register.<SPAN style="mso-spacerun: yes">&nbsp; </SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">&nbsp;<o:p></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">The following information is intended to assist our Ocean Import clients in preparing</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">for the Importer Security Filing requirements.<SPAN style="mso-spacerun: yes">&nbsp; </SPAN>The proposed rule covers FCL shipments.<SPAN style="mso-spacerun: yes">&nbsp; </SPAN>Currently, break bulk shipments are excluded from this rule.<SPAN style="mso-spacerun: yes">&nbsp; </SPAN>This may change once </P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">the Final Rule is published.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">&nbsp;<o:p></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><B>How to prepare for the 10+2 Security Filing:<o:p></o:p></B></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">&nbsp;<o:p></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">The best course of action for importers at this time would be to identify who in their organization would collect and consolidate the data.<SPAN style="mso-spacerun: yes">&nbsp; </SPAN>Also, look at what data elements </P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">are currently available and start thinking about how to collect the remaining data elements.<SPAN style="mso-spacerun: yes">&nbsp; </SPAN>Communicate with your vendors and service providers and ask what are they doing to prepare for the &#8220;10+2&#8221; Security Filing. </P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">&nbsp;<o:p></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Identify and implement a procedure for advance determination of your commodity&#8217;s HTSUS classification.<SPAN style="mso-spacerun: yes">&nbsp;&nbsp; </SPAN>Implement or improve upon procedures for complete and accurate Country of Origin and Manufacturer determination.</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">&nbsp;</P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">Analyze your current procedures to ensure you are prepared to handle the additional filing requirements.<SPAN style="mso-spacerun: yes">&nbsp; </SPAN></P>
<P><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><SPAN style="mso-spacerun: yes"></SPAN></SPAN>&nbsp;</P> Update - “10 + 2” Importer Security Filing and Additional Carrier Requirements

The public comment period for this proposed rule has ended on March 18th, 2008. 

 

U.S. Customs and Border Protection are reviewing the comments received.  Customs

is expected to finalize and publish the rule by the summer of 2008.  The planned implementation will be 6 to 12 months after the final rule is published in the Federal Register. 

 

The following information is intended to assist our Ocean Import clients in preparing

for the Importer Security Filing requirements.  The proposed rule covers FCL shipments.  Currently, break bulk shipments are excluded from this rule.  This may change once

the Final Rule is published.

 

How to prepare for the 10+2 Security Filing:

 

The best course of action for importers at this time would be to identify who in their organization would collect and consolidate the data.  Also, look at what data elements

are currently available and start thinking about how to collect the remaining data elements.  Communicate with your vendors and service providers and ask what are they doing to prepare for the “10+2” Security Filing.

 

Identify and implement a procedure for advance determination of your commodity’s HTSUS classification.   Implement or improve upon procedures for complete and accurate Country of Origin and Manufacturer determination.

 

Analyze your current procedures to ensure you are prepared to handle the additional filing requirements. 

 

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