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| Tuesday, February 02, 2010 |
Importers in Canada would be well advised to watch carefully the impact on US importers of the CBP Importer Security Filing (ISF) program which is now in force.
The ISF, or 10+2, has requirements for more detailed information to assist security inspectors target high-risk shipments. The ISF data requirements are very similar to the Importer Admissibility Data (IAD) program being proposed by the Canada Border Services Agency (CBSA) under the eManifest phase of its cargo risking security program ACI. ISF requires importers and carriers to provide 12 data elements (10 from the importer and 2 from the carrier) prior to the cargo being loaded on a vessel. The 10+2 data is not included on the cargo manifest.
IAD is scheduled for implementation in Spring 2012 and, whereas 10+2 applies only to imports of ocean containers, IAD requirements will cover all imports into Canada (highway, rail, air, and marine). Each mode has differing deadlines for receipt of IAD information and failure to provide exactly what is needed will result in the cargo not being admitted into Canada until the errors are corrected.
The 10+2 rule has increased importer costs and resulted in delays in receiving cargo. A study by the US National Association of Manufacturers revealed that 10+2 added $5 in costs for every $1000 of imports. Additional costs were incurred for security, increased inventory, storage, production shut-downs caused by late arrivals, IT, and ISF filing fees. The study also revealed that an additional 2.8 days was added to the import process.
CBSA’s IAD will apply to cargo on all modes of transport from all countries for imports not eligible for release under the Customs Self Assessment (CSA) program. Importers on CSA will not be subject to IAD rules and will continue to present very minimal information at time of arrival of the carrier and should not experience the types and levels of additional costs and delays experienced in the 10+2 program. CSA, therefore, becomes a very viable option for importers who need to have their customs operation run as it does today.
Contact Don Goodwin for more information on how your company can benefit from CSA participation.
dgoodwin@tracon.ca 877-2301586 613-2381586
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