Timing will be the biggest issue for sellers While 8 of the 10 importer-required data elements are already prepared by sellers in their commercial documents, they often do not have time to prepare the documents before the vessels are loaded and departed. Typically, sellers will get documents to customs brokers only days before arrival at the U.S. port. As a result, sellers are considered the "long pole in the tent," which will present the most significant Change Management challenge in converting to the newly dictated timeframe.
The bottom line is that in the new regulatory environment, companies will have to deal with IT systems, processes and personnel that were not set up to managing tasks at different times, in different sequences, and at a more granular level.
Companies that do comply with the ruling, but with inadequate personnel, processes or technology will probably see not only increased costs, but a deterioration of their working capital position.
What to do?
Given all this, perhaps the biggest question on everyone's minds is what to do. It's clear that companies need to change business processes, systems, partners and personnel, yet there is no prescribed or standard solution that dictates how.
There are four criteria are critical in considering a 10+2 solution:
— Given 10+2's compressed timelines, companies must re-engineer processes that formerly occurred over 10 to 20 days.
10 + 2 As An Opportunity to Improve Your Global Supply Chain
This directive, rather than simply causing more work and short term cost, can be used by importers and other trading partners to drive a greater degree of automation, upstream quality control, visibility, and collaboration that will lead to more efficient business processes.
Below are examples of how process re-engineering accompanied by automation may help companies turn the 10+2 initiative into an advantage: