Transcript IES Template - Pier 34 Solutions

July 22, 2008
WEBCAST
ISF 10+2: How to Make it Add Up for You
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If you remember just one thing…
Please write this down:
Preparing your company for 10+2 readiness is
strategic, not tactical… and you must convey this
message to your company’s leadership if you intend
to be successful in preparing your company for 10+2
compliance…
Email questions to:
[email protected]
Kevin Gavin
Vice President, Supply Chain Management
IES, Ltd.
•
Joined IES, Ltd. after his role as President and CEO of SECTRA
•
Work to expand IES to its current status as one of the leading providers of
Ocean, Air and Truck AMS and Global Supply Chain Management
•
Provides IES with technological and operational direction to guide the
development of new products and services
•
Background spans over 20 years servicing the International Trade
Community
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[email protected]
Matt Gersper
Founder and President
Global Data Mining
Author of “It’s Strategic, Not Tactical”
•
Founder & President of Global Data Mining
•
Owner of Global Data Mining, and CUSTOMS Info
•
More than 20 years of experience optimizing processes and helping
customers turn unorganized data into information that managers and
executives need to improve performance.
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[email protected]
WEBCAST
ISF 10+2: How to make it add up for you?
• This is the Third Webinar we have hosted on 10+2.
• In the first two webinar’s we provided a detailed overview of the
specific data required
• In this Webinar we will be providing a higher level corporate
overview of what 10+2 means to the Import Community.
• After the Overview we will be hosting a question and answer
panel with Kevin & Matt… time permitting…
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[email protected]
WEBCAST
Filer (CHBs or Importers of Record) Must:
1. Know the Regulation
2. Identify a Software Solution
3 Determine the enterprise-wide data requirements
4. Enable the Importer of Record to Participate
5. Provide Professional Consulting
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WEBCAST
Tasks for Success
• Prepare to be an Expert
• Be a solution for your customers or your company
• Educate your customer/company by explaining how to organize
their supply chain data to line up with ISF “10 + 2”
• Position yourself as the solution provider
• Deliver
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WEBCAST
ISF 10+2: How to make it add up for you?
•
For maritime cargo that is destined to a U.S. port, the data elements listed on the next
slide will be required to be transmitted 24 hours prior to loading the U.S. bound vessel
•
This portion of the Security Filing will be required to be transmitted by the importer or
its designated agent. Three methods will be supported.
•
1. ISF from the Importer or Record or Designated Agent
•
2. Combined Customs Entry and Security Filing Through the Broker
•
3. In bond Types IE, TE and IT will be supported through Ocean AMS as well
as Freight Remaining on Board.
•
These data elements are critical for CHBs/Importers of Record to supply CBP with
the required information
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WEBCAST
The following 10 data elements were selected
1
Manufacturer name
and address
6
Ship to name
and address
2
Seller name
and address
7
Importer of
record number
3
Container
stuffing location
8
Consignee
number
4
Consolidator name
and address
9
Country of origin
of the goods
5
Buyer name
and address
10
Commodity Harmonized
Tariff Schedule #(6 digit)
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Details 1 - 4
1. Manufacturer (or supplier) name and address. The name and address of the entity that last
manufactured, assembled, produced, or grew the commodity, or the name and address of the
supplier of the finished goods in the country from which the goods are leaving. In the
alternative, the name and address of the manufacturer (or supplier) that is currently required by
the import laws, rules and regulations of the U.S. (i.e., entry procedures) may be provided (this
is the information that is used to create the existing manufacturer identification (MID) number
for entry purposes).
2. Seller name and address. The name and address of the last known entity by which the goods
are sold or agreed to be sold. If the goods are to be imported otherwise than in pursuance of a
purchase, the name and address of the owner of the goods must be provided.
3. Buyer name and address. The name and address of the last known entity to which the goods
are sold or agreed to be sold. If the goods are to be imported otherwise than in pursuance of a
purchase, the name and address of the owner of the goods must be provided.
4. Ship to name and address. The name and address of the first deliver-to party scheduled to
physically receive the goods after the goods have been released from customs custody.
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WEBCAST
Details 5 - 7
5. Container stuffing location. The name and address (or addresses) of the physical
locations where the goods were stuffed into the container. For break bulk shipments, the
name and address (or addresses) of the physical locations where the goods were made
"ship ready" must be provided.
6. Consolidator (stuffer) name and address. The name and address of the party who
stuffed the container or arranged for the stuffing of the container. For break bulk
shipments, the name and address of the party who made the goods "ship ready" or the
party who arranged for the goods to be made "ship ready" must be provided.
7. Importer of record number/FTZ applicant identification number. Internal Revenue
Service (IRS) number, Employer Identification Number (EIN), Social Security Number
(SSN), or CBP assigned number of the entity liable for payment of all duties and
responsible for meeting all statutory and regulatory requirements incurred as a result of
importation. For goods intended to be delivered to an FTZ, the IRS number, EIN, SSN,
or CBP assigned number of the party filing the FTZ documentation with CBP must be
provided. The importer of record number for importer purposes is the same as "importer
number" on CBP Form 3461.
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Details 8 - 10
8. Consignee numbers. IRS number, EIN, SSN, or CBP assigned number of the individuals)
or firms in the U.S. on whose account the merchandise is shipped. This element is the same as
the "consignee number" on CBP Form 3461.
9. Country of origin. Country of manufacture, production, or growth of the article, based
upon the import laws, rules and regulations of the U.S. This element is the same as the
"country of origin" on CBP Form 3461.
10. HTS number at 6 digit level. Duty/statistical reporting number under which the article
is classified in the HTS. The HTS number is required to be provided to the 6 digit level. The
HTS number may be provided up to the 10 digit level. This element is the same as the "H.S.
number" on CBP Form 3461 and can only be used for entry purposes if it is provided at the
10 digit level or greater.
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WEBCAST
Advantages
• Provide a globally accessible web application
• Provide a Parts Database
• Manage the Supply Chain Parties
• Integrate with Ocean AMS where required
• Include an EDI upload interface to importers of record
• Deliver a highly integrated system with EDI feed to CHB
Platforms
• Closing the Loop on International Trade and turning the
Black Hole into Inventory
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WEBCAST
ISF 10+2 Workflow Overview
Carrier 315 EDI
1. WEB ISF 10+2
Container STOW
CBP AMS
ISF 10+2
3. AMS ISF 10+2
2. Import CHB
ISF 10+2
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WEBCAST
10 + 2 Next Steps
• Now is the time to prepare for 10+2
• Start using it now
• Available branding with your name and logo
• Getting started and training
• Reduced Data Entry
• Enhanced Data Visibility
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[email protected]
WEBCAST
10+2 Readiness… It’s strategic, not tactical
Matt Gersper
Founder and President
Global Data Mining
“It’s Strategic, Not Tactical”
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[email protected]
There are three kinds of companies as
it relates to ISF 10+2 readiness
WEBCAST
Best in class
Suppliers
Function
Forwarders
3PL’s
Strategic Sourcing
& Procurement
Sales &
Corporate
Customer
Risk
Service
Management
Global
Logistics
EnterpriseWide
Strategy
Manufacturin
g & Design
Brokers
Trade
Compliance
Trade
Finance
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[email protected]
There are three kinds of companies as
it relates to ISF 10+2 readiness
A. The companies that are heading
full speed for a cliff and are not
even aware of it…
B. The companies that
are heading full speed
for a cliff and are at
least aware of it…
WEBCAST
A. The 1st group will suffer mightily
when 10+2 goes into effect
B. The 2nd group has a chance to
use this dramatic change in
customs regulations to their
business advantage…
Key Point
It’s critical that you get the 10+2 message to senior
management and that they understand it and support
an enterprise-wide strategy to prepare for it!!!
Email questions to:
[email protected]
WEBCAST
10+2 Readiness… It’s strategic, not tactical
• Introduction
Using data and technology
to achieve new
government requirements
• Why is it important to you?
• It’s Strategic, not Tactical
• 10+2 Readiness
• Create your strategy now!
Email questions to:
[email protected]
WEBCAST
Why is it important to you?
1. The purpose of the advance security filing requirement
is to improve CBP’s risk assessment and targeting
capabilities to help prevent terrorist weapons from
entering the U.S.
Collateral Benefits:
SECURITY
Done and
properly…
Optimizing
business
2. The Office of Management
Budget (OMB)
has
processes
to meetfrom
these
requirements in
determined that the rule
will cost industry
$390
million to $630 millionthe
permost
year. direct, effective manner
COST
possible can improve supply chain
velocity and create competitive
3. “If the principal fails to comply with the proposed
advantage!!!
Importer Security Filing requirements, the principal
and surety (jointly and severally) would pay liquidated
damages equal to the value of the merchandise
involved in the default”.
FINES/
STOP
Profits
ProfitsEliminated!!
Realized!!
Email questions to:
[email protected]
WEBCAST
10+2 Readiness… It’s strategic, not tactical
• Introduction
Using data and technology
to achieve new
government requirements
• Why is it important to you?
• It’s Strategic, not Tactical
• 10+2 Readiness
• Create your strategy now!
Email questions to:
[email protected]
WEBCAST
It’s Strategic, Not Tactical
1.
It’s a change in the corporate business processes, and it’s
beyond the scope of the trade compliance professional
2.
Do you know who actual manufacturers of every item you purchase
3.
Every part must be linked with a fully qualified Commodity HTSUS
number.
4.
You need to know that all the relevant data including items such as
the container stuffing location were submitted.
5.
You need a method to insure that your data has been submitted to
Customs for every manufacture on a shipment along with the
associated AMS data.
Email questions to:
[email protected]
WEBCAST
Collaboration and Cooperation
Data Element
Source
Responsible Party
Manufacturer Name & Address
Procurement Sourcing
Importer
Seller name & address
Procurement Sourcing
Importer
Buyer name & address
Procurement Sourcing
Importer
Ship to name & address
Procurement Sourcing
Importer
Container Stuffing Location
Supplier/Forwarder
Supplier/Forwarder
Container (Stuffer) name & address
Supplier/Forwarder
Supplier/Forwarder
Importer of Record #
Trade Compliance/Import
Importer
Consignee #
Trade Compliance/Import
Importer
Country of Origin
Trade Compliance/Import
Importer
Commodity HTSUS #
Trade Compliance/Import
Importer/Broker
Key Point
An effective solution to meet the very complicated 10+2
requirements will require a cross-functional, coordinated
efforts including 3rd parties
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It’s Strategic, Not Tactical
Importers
Create PO
Current Process
An effective solution to meet
the complicated 10+2
requirements will require a
business process re-design
Suppliers
Create commercial invoice
Forwarders
Manage logistics of shipment
Carriers
Data NOT currently required
for entry:
1. Manufacturer Info
2. Seller Info
3. Container Stuffing Info
4. Consolidator Info
Deliver the shipment
Brokers
Create entry document at the
end of the supply chain
1. MID
5. Buyer Info
6. Ship to Info
7. IOR Number
8. Consignee #
9. Country of Origin
10. US HTS Code
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Business Process Re-Design
1. Build out
the new data
requirements
Importers
Create PO
Suppliers
Create commercial invoice
2. Automatically link new data
Forwarders
Manage logistics of shipment
3. Capture stuffing & consolidator info…
Carriers
Deliver the shipment
Brokers
Automation of entry
document at the end of the
supply chain
4. Report through security
filing software to meet the
CBP requirement – providing a
lot more information a lot
sooner in the supply chain
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[email protected]
WEBCAST
Data Strategy
1. What data is required?
2. What data currently exists?
3. Who “owns” the different data elements?
4. Where does the data reside today?
PO ERP
Forwarder
Data
5. In what format?
6. Where should the data reside for
the future solution?
7. How will it be validated?
Merchandising
ERP
Parts
Master
8. How will it be integrated?
9. How will it be updated?
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[email protected]
WEBCAST
Collaborative Assessment
•
Assemble the team
•
Recommend targeted strategies to
achieve 10+2 objectives
•
Identify required Resources
–
–
Client’s project leader
Department heads
3rd party partners
• Data solutions
• Applications
• Forwarder/broker
Internal
External
•
Quantify Costs
•
Quantify Opportunities
•
Prepare ROI
Process
Optimization Model
by GDM…
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WEBCAST
Project Strategy
Create a plan to meet the 10+2 requirements in the most
direct, effective manner possible…
Client’s project leader
Department heads
3rd party partners
Visibility
Measurability
Control
• Data solutions
• Applications
• Forwarder/broker
People
Applications
Data
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WEBCAST
Executive Presentation
It’s critical that the message is communicated to senior
management and that they understand it and support an
enterprise-wide strategy to prepare for it!!!
• Prepare and deliver an executive
presentation …
•
With an ROI analysis for
recommended projects…
•
Define opportunities
identified…
•
Define baseline and
expectations of improvement.
Email questions to:
[email protected]
WEBCAST
10+2 Readiness… It’s strategic, not tactical
• Introduction
Using data and technology
to achieve new
government requirements
• Why is it important to you?
• It’s Strategic, not Tactical
• 10+2 Readiness
• Create your strategy now!
Email questions to:
[email protected]
Bringing the Data Together
10+2 data elements should be gathered at time of PO and
forwarded to the Importer Security Filing system
PO
ERP
Merchandising
ERP
Parts
Master
New
Data
Material Group
Buyer Name (10+2)
Item Number
Item Number
Product Hierarchy
Buyer Address (10+2)
Item Number
Ship to Name (10+2)
US HTS Descriptions
Item Description
Ship to Address (10+2)
IOR Number (10+2)
Manufacturer Name
(10+2)
Consignee Number
(10+2)
Manufacturer Address
(10+2)
Item Number
Seller Name (10+2)
Container Stuffing
Location (10+2)
US HTS (10+2)
Consolidator Name
(10+2)
US Ruling Number
Consolidator Address
(10+2)
US Ruling Date
Country of Origin
(10+2)
Seller Address (10+2)
Link by
Item #
Link by
Item #
Link by
Item #
With this data, now the importer or it’s agent can transmit the
ISF no later than 24 hours prior to loading the US bound vessel.
WEBCAST
ISF 10+2 Integration with Existing Systems
Existing
Importer System +
3rd Party Logistics
1.
2.
CBP
AMS 10+2
3.
4.
5.
AMS 10+2
6.
Data feed from Importer or
third party logistics provider
Importer of Record or
Authorized Agents upload ISF
information
CHBs or Importers verify
compliance prior to filing with
CBP
Match of the ISF with Ocean
AMS filing
The Accepted message triggers
automated download of data to
IES Import/CHB Systems
US Customs Entry is filed by
US Customs Broker.
Import CHB 10+2
Email questions to:
[email protected]
WEBCAST
10+2 Readiness… It’s strategic, not tactical
• Introduction
Using data and technology
to achieve new
government requirements
• Why is it important to you?
• It’s Strategic, not Tactical
• 10+2 Readiness
• Create your strategy now!
Email questions to:
[email protected]
WEBCAST
Create Your Strategy Now!
Avoid Delays
Improve Compliance
Create a 10+2 Readiness Strategy now although this is a very complex
challenge for importers.
You can provide leadership… create an enterprise-wide solution… and save
your company lots of money by creating a plan to meet the 10+2 requirements
in the most direct, effective manner possible.
Reduce Expenses
Create a plan now
Q1-08
This is going to take some time
Q2-08
Q3-08
Q4-08
Email questions to:
[email protected]
WEBCAST
Create Your Strategy Now!
Avoid Delays
Improve Compliance
Collateral Benefits… Additional trade data can:
• Improve supply chain planning
• Improved supply chain speed
• Reduced inventory requirements
• Improved visibility and controls
• Competitive advantage
Reduce Expenses
Create a plan now
Q3-08
This is going to take some time
Q4-08
Q1-09
Q2-09
Email questions to:
[email protected]
WEBCAST
Did you write this down?
Preparing your company for 10+2 readiness is
strategic, not tactical… and you must convey this
message to your company’s leadership if you intend
to be successful in preparing your company for 10+2
compliance…
Email questions to:
[email protected]