10+2: What's a U.S. Importer To Do?

Recommendations for preparing your supply chain for the U.S. government's latest import security initiative


New York — March 21, 2008 — U.S. importers are talking about "10+2". No, it's not 12. It's another security initiative launched by the U.S. government to mitigate the risk of terrorism occurring on U.S. soil.

Joining the ranks of other alphabet soup security programs, "10+2" is a tactical program requiring 10 data elements from the importer and 2 data elements from the carrier (hence "10+2") be electronically filed 24 hours prior to loading cargo onto a shipping vessel ultimately bound for the United States.

The overarching goal of the program is to target high-risk cargo by identifying actual cargo movements, improve the accuracy of cargo descriptions and flag low-risk cargo earlier in the supply chain, thereby speeding its movement.

The "10+2" program is ruffling the feathers of the global trade community. It's estimated that this program will cost importers $390 million to $690 million annually due to filing fees instituted by the government and surcharges levied by cargo agents for generating the required information. In addition, importers may have problems gathering the information in advance, thereby causing global cargo departure delays and disrupting timely shipments around the world.

Background

In response to the terrorist events of 2001, the U.S. government enacted the 2006 SAFE Port Act (Security and Accountability for Every Port Act) which aims to increase the security of U.S. ports of entry. A key component of SAFE is the Secure Freight Initiative, which is a comprehensive model for global supply chain security and which complements the use of scanning technology and optical character recognition systems in foreign ports to inspect cargo bound for the United States.

The Secure Freight Initiative is designed to help reduce the risk of terrorism by leveraging trade data, trade partnerships, host country governments and the latest technology to validate the security of goods in maritime shipping containers. Via a more detailed Security Filing, or what is being called "10+2", U.S. Customs and Border Protection (CBP) aims to:

  • target high-risk cargo through the identification of actual cargo movements;
  • improve the accuracy of cargo descriptions; and,
  • speed lawful international trade by recognizing low-risk shipments much earlier in the supply chain.























  • Master Bill of Lading (BOM) must be reported in addition to the above 12 items;
  • Data elements must be reported by the tariff number at the lowest bill of lading level;
  • Manufacturer (or supplier) name and address, country of origin and commodity HTSUS (harmonized tariff) number must be linked to one another at the line item level.



Impact to the U.S. Importer





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