Trade Update from Trade Innovations, Inc.

In This August Issue

C-TPAT the Road to Certification

TII Principals Michael Laden and Kelby Woodard will present a half-day seminar on the Customs-Trade Partnership Against Terrorism (C-TPAT) hosted by Global Training Center.

The event will take place on Wednesday, August 28th, at 10:30 am (central time). Mr. Laden and Mr. Woodard will discuss the necessary procedures and policies for attaining C-TPAT Certification.

Advanced registration is required.

For more information or to register for this event please follow this link: Global Training Center - The Road to C-TPAT Certification

International Compliance Professionals Association

ICPA Fall Conference:
Importer Identity Theft

TII Principal Michael Laden will present at the October 29, 2013 meeting of the International Compliance Professionals Association (ICPA) in Dallas, TX.

Mr. Laden's session will be devoted to Importer Identity Theft, a serious and growing problem within our industry.

For more information or to register please follow this link: International Compliance Professionals Association

C-TPAT: Soup to Nuts

TII Principal Michael Laden will present at the October 17, 2013 meeting of the Midwest International Trade Association (MITA) in Omaha, NE.

For more information or to register please follow this link: Midwest International Trade Association

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Trade Update

Greetings!

The Trade Innovations team is committed to providing timely, accurate, and unique approaches to customs and supply chain security compliance. With the growing complexity of trade compliance rules and regulations in which companies engaged in global trade must be aware, we are passionate in our efforts to keep the trade community informed. It is in that spirit that we offer this newsletter to you. The Trade Update is published on the first Wednesday of every month.

The Trade Innovations team stands ready to assist you and you with your customs and supply chain security programs. The Principals of Trade Innovations have a broad background in customs compliance, supply chain and global security and we are confident that our approach will fit your unique challenges and opportunities.

We can be reached via e-mail at info@tradeinnovations.com or at 952.975.9099.

Best Regards,

The Trade Innovations Team

Trade News Briefs

Relevant News for Trade Professionals

CBP and FMC Sign MOU to Share Data

U.S. Customs & Border Protection (CBP) and the Federal Maritime Commission (FMC) have entered into a joint Memorandum of Understanding (MOU) to share data from CBP's next generation system the Automated Commercial Environment (ACE).

Acting CBP Commissioner Thomas Winkowski (pictured left) and FMC Commission Chairman Mario Cordero (pictured right) signed the

agreement.

Chairman Cordero said, "The sharing of data contained in ACE will help the FMC protect the public from unfair and deceptive practices. This longstanding collaboration furthers mutual objectives -- to ensure security at our nation's ports and compliance with the Safe Port Act. Furthermore, this collaboration will assist the FMC to fulfill its regulatory responsibilities under the Shipping Act."

The MOU will allow data from CBP's ACE and other systems to be transferred directly to the FMC for use in fulfilling its statutory and regulatory duties and responsibilities. This direct transfer of data will conserve resources of both agencies and ensure compliance with the SAFE Port Act.

To read the entire CBP or FMC Press Releases please follow this link: CBP and FMC Sign MOU to Use ACE Data

New CBP Commissioner Nominated

After months of waiting, the Obama Administration has finally nominated a new CBP Commissioner; the nominee is Mr. R. Gil Kerlikowske. He is currently the Director of National Drug Control in the Office of National Drug Control Policy at the White House, a position he has held since 2009. From 2000 to 2009, he served as Chief of Police in Seattle, Washington.

From 1998 to 2000, he was Deputy Director of the Office of Community Oriented Policing Services at the U.S. Department of Justice. From 1994 to 1999, he was Police Commissioner of Buffalo, New York.

He began his law enforcement career serving in the St. Petersburg, Florida Police Department from 1972 to 1987. Mr. Kerlikowske also served on active duty in the U.S. Army from 1970 to 1972, and in the Army Reserve from 1972 to 1976. He received a B.A. and an M.A. as well as a D.H.L. from the University of South Florida.

Mr. Kerlikowske will undergo a rigorous Senate Confirmation Hearing and those hearings have yet to be scheduled.

GAO Issues Report on US-Mexico Border

The U.S. Government Accountability Office (GAO) has issued a 101-page report on the U.S.-Mexico Border. The GAO has concluded that U.S. Customs & Border Protection (CBP) action is needed to improve wait time data and measure outcomes of trade facilitation efforts along the southern border.

The GAO found that, "data on commercial vehicle wait times-the time it takes to travel from the end of the queue to the CBP primary inspection point at land border crossings-are unreliable for public reporting and CBP management decisions across border crossings. These data-which are collected manually by CBP officers-are unreliable because CBP officers inconsistently implement an approved data collection methodology, and the methodologies used vary by crossing." (more follows)

To read the entire article or download a copy of the report please follow this link: GAO Issues Report on US-Mexico Border

OFAC Penalty for Apparent Cuba Sanction Violations

The U.S. Department of the Treasury and Office of Foreign Assets Control (OFAC) has published an Enforcement Information bulletin relating to a $5,226,120 penalty for apparent violations of the Cuban Assets Control Regulations (CACR). A travel services company was the recipient of the penalty.

The company was previously investigated by OFAC in 1995 and 1996 for similar apparent violations of the CACR arising from the provision of travel services to and from Cuba by a recently acquired subsidiary at the time. OFAC provided written notice to the company that such conduct constituted apparent violations of the CACR. (more follows)

To read the entire article or download a copy of the Enforcement Information bulletin please follow this link: OFAC Penalty for Cuba Violations

CBP Publishes Frontline Magazine

CBP has published the most current edition of Frontline Magazine. This 36-page news magazine contains articles on CBP's efforts to combat fraud, Global Entry, CBP's cooperation with Agriculture and Cartel Kingpins.

To download an Adobe copy of this document please follow this link: CBP Frontline Magazine

CBP to Host Seattle Trade Fair

CBP will host a Trade Fair in Seattle on Wednesday, August 21, 2013. The event will run from 9:00 am - 12:00 pm and will be held at Federal Center South, 4735 East Marginal Way S, Seattle, Washington.

It is free of charge to attend and advanced registration is not required. However, it will be held at a federal building and everyone must process through the security checkpoint. If planning to attend please ensure you have government-issued picture identification. Trade participants may come and go as needed. (more follows)

For more information on the event or the sessions that will be offered please follow this link: Seattle Trade Fair

ISF Enforcement is Underway

By Michael Laden

ISF

On July 9, 2013 U.S. Customs & Border Protection (CBP) began full enforcement of the Importer Security Filing (ISF) requirements. While we have not had any reports (yet) of importers receiving an ISF Liquidated Damage Claim; there is evidence that CBP has moved to full enforcement mode; and I believe it's only a matter of time before the penalty notices start flying. Customs Brokers are reporting ISF Jail that clients having imports on which no ISF was filed are being detained at the first port of arrival. They are essentially being held in "ISF Jail" and the importers of these consignments will most assuredly receive a $5,000 Liquidated Damage Claim. The term "Liquidated Damage" is just a fancy or legal term for "penalty" which is secured by a surety bond. Additionally, shipments having no ISF filed will be subjected to a CBP examination, either the intrusive or non-intrusive type. Such exams not only cause delays but they are expensive; in some ports it can cost as much as $1,500 - $2,000 if CBP orders a full devan or strip of a container...ouch!

When a penalty action is deemed appropriate the CBP ports of entry will be responsible for issuing the Liquidated Damage Claims. However, there may be as much as a 30 or 90 day lag between the arrival of the goods and the receipt of an ISF penalty; especially in the early-going because all proposed penalties are being reviewed by CBP Headquarters before issuance. This of course means that you could be receiving ISF penalties in September or October for goods that were imported in July.

ISF Approved Savvy importers are reviewing their ISF Progress Reports in CBP's Automated Commercial Environment (ACE) and taking definitive action where necessary. ACE reports are available to the importing public for free by becoming a member of ACE. You can sign-up and become a member of ACE by following this link: Automated Commercial Environment (ACE). Importers who are not members of ACE can (and should) request ISF Progress Reports from their customs brokers or agents filing ISF's on their behalf. (more follows)

To read the entire article or download an Adobe copy please follow this link: ISF Enforcement Underway

We strive to keep the articles and commentary in our newsletter relevant and brief to accommodate your busy schedule. Please feel free to share it with your colleagues by clicking on the "Forward to a Friend" icon found at the bottom of this page. We appreciate your feedback and we are available at your convenience to discuss the impact the ideas discussed may have on your company.

Sincerely,

The Trade Innovations Team