INT’L FF & NVOCC SPECIAL - Facilitators face challenge of ‘10+2’ implementation

By: | at 08:00 PM | Channel(s): Logistics  

By Paul Scott Abbott, AJOTIn a post-9/11 environment in which trade facilitators and shippers face mounting challenges, it is hard to find a more controversial issue than the impending federal demand of significant additional data for goods headed to US ports – a demand that could exact a cost of as much as $5 billion.
Ken BargteilLeaders of the National Customs Brokers & Forwarders Association of America – who anticipate the new data-filing requirements will be a key issue at their April 6-10 annual conference in Lake Buena Vista, FL –fear the impacts and questioning the rationale of what is commonly known as the “10+2 Rule.”
In separate interviews with the American Journal of Transportation, three NCBFAA leaders expressed deep concerns over the proposed rule, formally known as the Importer Security Filing and Additional Carrier Requirements, or ISF. The ISF requires importers or their agents, before shipment, to transmit to US Customs and Border Protection as many as 10 additional data elements plus demands that carriers submit a vessel stow plan as well as daily container status messages.
“I suspect that 10+2 will present challenges throughout the entire supply chain,” said NCBFAA Customs Committee Chairman Ken Bargteil, who is vice president of customs brokerage and executive director of the professional services group at Glen Burnie, MD-based Kuehne + Nagle, Inc.
“At least in the initial period, that will likely extend transit time, add cost, and possibly result in loss of business for some companies,” Bargteil continued, then interjected a ray of hope. “I believe the supply chain, traders and those who play a support role are agile, flexible, resourceful and clever and that, for the most part, solutions will be found and things will eventually settle down. With every significant change, some old ways must be abandoned and new opportunities are discovered.
“I think it is an open question as to whether adding yet another security requirement to what has already been required is a cost-effective approach to the overarching issue of securing the supply chain – or a sign that it is time for a more coherent, integrated and perhaps straightforward approach to the problem,” he added.
“At some point, one stops asking how many layers of security are needed to secure the supply chain and asks instead how many layers of security does it take to smother the supply chain,” Bargteil said.
John HyattAnother NCBFAA Customs Committee member, John T. Hyatt, vice president of The Irwin Brown Co. of New Orleans, said the 10+2 issue has been “on the front burner” since CBP’s Jan. 2 release of its notice of proposed rulemaking, or NPRM. The final comments deadline is now March 18.
“This could affect the way all of us do business,” Hyatt said. “CBP feels compelled to do something in accordance with the SAFE Port Act [Security and Accountability For Every Port Act of 2006]. Otherwise, the ‘crazies’ in Congress will demand physical inspection of every container that lands at a US port – a disaster for trade, especially when now international trade approaches nearly 30 percent of total US GNP [gross national product], whereas a generation earlier it was less than 5 percent.
“This is a particularly contentious issue with our National Customs Brokers & Forwarders Association, as it represents multinational, national, regional and local – mom-and-pop – brokers who may be positively and negatively impacted,” Hyatt continued. “It is felt that whoever does the ISF would eventually handle the customs transaction. Only the bigger guys have the kind of connections overseas to accomplish this.
“CBP really did not think through this issue,” he said. “The ISF should be tied to the ‘load’ or ‘no-load’ message to the carriers under the 24-Hour Rule. So, consequently

Paul Scott Abbott's avatar

American Journal of Transportation

More on Paul Scott Abbott
For more than a quarter of a century, Paul Scott Abbott has been writing and shooting images for the American Journal of Transportation, applying four decades of experience as an award-winning journalist. A graduate of Northwestern University’s Medill School of Journalism, with a master’s magna cum laude from Trinity Evangelical Divinity School, Abbott has served as president of chapters of the Propeller Club of the United States, Florida Public Relations Association and Society of Professional Journalists. Abbott honed his skills on several daily newspapers, including [em]The Cincinnati Enquirer, The Richmond (Va.) News Leader, Albuquerque Journal and (South Florida) Sun-Sentinel, and was editor and publisher of The County Line, a weekly newspaper he founded in suburban Richmond, Va.[/em] A native Chicagoan, he is a member of American Mensa and an ever-optimistic fan of the Chicago Cubs.