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Supply Chain: Compliance Corner Hot trade compliance issues for 2010 American River International nlenok@americanriverintl.com The global business community is looking forward to bidding a “good riddance” to 2009. As we move into 2010, we need to pay particular attention to a number of compliance issues, which will be coming into effect in the coming year. Many companies have trimmed their budgets for training and education in this recession. For those companies that have been delinquent in keeping up on training for trade compliance and logistics personnel, there will be a need for training on several fronts. Some of the “hot topics” to be aware of in 2010 are: ISF(Importer Security Filing) Lacey Act INCOterms 100 percent cargo screening While ISF (formerly known as 10+2) became effective in Jan 2009, the penalty phase for ISF begins at the end of Jan ‘2010. For importers that do not comply with rules for ISF the fines can be substantial … as much as $5,000.00 per line item on the Customs entry form 7501. For importers still not knowledgeable on this topic, time is running out. You should be checking with your Customs Broker or look to organizations like The World Academy, that are offering seminars at venues throughout the country educating the import community on this and other timely topics. The Lacey Act is overseen by USDA (U.S. Department of Agriculture). This law is in a phase in process that began in 2009 and will continue into 2010. The Lacey Act falls under the 2008 Farm Bill and deals with the importation of plants and plant products and includes wood and wood products as well. As we move into 2010 more HTS numbers will be included in the scope of being affected under this law. Some of the articles that will be affected as additional HTS numbers are added are, oil seeds, cork, basket ware and wicker work, toys, games, sporting equipment and many others. Again, the important point to stress is to become knowledgeable on this law if it might affect any commodities you import. The fines and penalties that USDA can set upon you can be quite onerous. INCOterms, which are the foundation of global trade, are updated every 10 years. The current INCO Terms 2000 are about to grow into INCO Terms 2010. The updates are not expected to be announced until mid 2010 (INCO Terms 2000 actually came out in 2001). It is imperative that as an importer or exporter you become familiar with these international terms as they affect many important aspects of international trade such as which party is responsible for trade compliance, freight and other related issues. There are also a multitude of insurance concerns that come into play under INCO Terms. Our recommendation is not to wait until they are reintroduced in 2010 to learn them, as the updated terms are not expected to deviate dramatically from the current ones. The passage of the 9/11 Act in 2007 by President Bush and Congress requires the TSA (Transportation Security Administration) to have in place a system to screen 100 percent of cargo that moves on passenger aircraft by August of 2010. The law is referred to as CCSP (Certified Cargo Screening Program). If your company ships cargo on passenger aircraft, you can set up your facility to be a certified cargo screening facility. If you were to go in this direction, there are strict rules you would need to follow that are enforced by TSA, to adhere to specified physical security standards. The benefit would be that your freight could go on a commercial flight without having the risk of being opened and inspected once it reaches the airlines. Of course there is a rigorous tracking of the freight before it gets to the airlines to ensure the freight is not compromised. Any breach in the security process would require the airlines to physically inspect your cargo before it is loaded onto a passenger aircraft. Each New Year brings hope and optimism. Let’s hope 2010 is ushered in with a renewed growth in business, an improvement in the economy and the ability for us all to mitigate these new trade compliance issues.	In This Issue Up Front News, Trends & Analysis New Items Transport Economics: Don’t be so gloomy Capitol Watch: From cargo screening to roadability equipment Trade Tools: A different world of trade in 2010 Supply Chain Chris Steele: The corner and what’s around it Compliance Corner: Hot trade compliance issues for 2010 Tech Trends: Five trends for 2010 Commentary David Bennett: Five predictions for 2010 Gateway Glance Georgia Vietnam The Port Community East Coast Ports 2010: Five things to watch for West Coast Ports 2010: The future of West Coast port productitivy? The Shipping Environment: Five sustainable trends for 2010 Product Review: Cranes Casualties Triple-deck trailer barge snaps towline, tankers leak, Coast Guard ice breaker runs aground ... and much more Final Say Your supply chain dynamics: 2010 crisis? Or oppotrunities?
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Supply Chain: Compliance Corner