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Customs Rolls out Updated 10+2 Requirements for Maritime Cargo Carriers, Importers
CPB delays compliance date, will "show restraint" in enforcing rule during interim period to take into account difficulties importers face in complying with requirement to provide data on incoming goods
Washington, DC — November 26, 2008 — The U.S. Department of Homeland Security's Customs and Border Protection (CBP) agency this week announced updates to the customs rule known as "10+2" after substantial modifications were made in a lengthy interagency process, introducing a delayed compliance date.
The interim final rule for the Importer Security Filing and Additional Carrier Requirements — also known as 10+2 — will require maritime cargo carriers and importers to submit additional data to U.S. Customs and Border Protection (CBP) before vessels are permitted entry into the country.
CBP said that it had made several significant changes from the proposed rule based on public and stakeholder feedback. The interim final rule includes a delayed compliance date of 12 months after the interim final rule takes effect.
During this 12-month period, CBP said that it would "show restraint in enforcing the rule. CBP will take into account difficulties that importers may face in complying with the rule as long as importers are making a good faith effort and satisfactory progress toward compliance."
Six Month Test
The 10+2 rule is so named because it requires importers to submit 10 types of information about what they are importing and requires two new types of information from shipping companies. As originally written, the rule would have required U.S. manufacturers to submit the 10 new data elements 24 hours prior to loading a shipping container at a foreign port — even though the data are not available that early.
The updated rule establishes an interim six month test of how the data elements can be provided and allows U.S. manufacturers to provide the most difficult data elements on a "best available" status. CBP said it would conduct a review to determine any specific compliance difficulties that importers and shippers may experience in submitting all 10 data elements 24 hours before lading.
John Engler, president of the National Association of Manufacturers, which lobbied for changes to the rule, said that the original draft of the regulation included provisions that could have had a significant negative impact on U.S. companies.
"The 10+2 Rule, as originally drafted, would have cost U.S. manufacturers as much as $20 billion annually, created huge delays and missed shipments in the global supply chain, risked shutting down U.S. production lines and actually worsened security by increasing the amount of time containers sat around available for tampering at foreign ports," Engler said.
The interim final rule for the Importer Security Filing and Additional Carrier Requirements — also known as 10+2 — will require maritime cargo carriers and importers to submit additional data to U.S. Customs and Border Protection (CBP) before vessels are permitted entry into the country.
CBP said that it had made several significant changes from the proposed rule based on public and stakeholder feedback. The interim final rule includes a delayed compliance date of 12 months after the interim final rule takes effect.
During this 12-month period, CBP said that it would "show restraint in enforcing the rule. CBP will take into account difficulties that importers may face in complying with the rule as long as importers are making a good faith effort and satisfactory progress toward compliance."
Six Month Test
The 10+2 rule is so named because it requires importers to submit 10 types of information about what they are importing and requires two new types of information from shipping companies. As originally written, the rule would have required U.S. manufacturers to submit the 10 new data elements 24 hours prior to loading a shipping container at a foreign port — even though the data are not available that early.
The updated rule establishes an interim six month test of how the data elements can be provided and allows U.S. manufacturers to provide the most difficult data elements on a "best available" status. CBP said it would conduct a review to determine any specific compliance difficulties that importers and shippers may experience in submitting all 10 data elements 24 hours before lading.
John Engler, president of the National Association of Manufacturers, which lobbied for changes to the rule, said that the original draft of the regulation included provisions that could have had a significant negative impact on U.S. companies.
"The 10+2 Rule, as originally drafted, would have cost U.S. manufacturers as much as $20 billion annually, created huge delays and missed shipments in the global supply chain, risked shutting down U.S. production lines and actually worsened security by increasing the amount of time containers sat around available for tampering at foreign ports," Engler said.
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