Canada to Implement eManifest Program Next Year

By now, everyone who imports goods into the US is aware of the Importer Security Filing, known more commonly as “10+2.” This regulation by US Customs & Border Protection requires importers to submit additional information factors before a shipment can clear customs without incident. The purpose of the extra documentation is to tighten port security and maintain a more accurate inventory of the freight that crosses our borders every day. It was widely assumed that Canada’s Border Services Agency (CBSA) would impose similar import regulations, and they’ve finally announced that their rules will come in the form of an eManifest Program:

eManifest is the third phase of the Advance Commercial Information (ACI) program, which introduced the requirement for marine and air carriers to provide the CBSA with electronic information in advance of the arrival of commercial cargo at Canada’s sea and air ports of entry.

eManifest will further modernize and enhance how the CBSA processes and screens commercial goods coming into Canada.

In this way, the CBSA will have the right information at the right time from carriers, freight forwarders and importers in all modes of transportation. And, by rigorously performing risk assessments on commercial goods before their arrival, the CBSA will be better able to ensure that high-risk shipments are examined and low-risk shipments have facilitated entry into Canada.

The eManifest Pprogram is scheduled to be implemented in phases. Phase 1 will begin next Spring with highway carriers transmitting cargo and conveyance data to the CBSA in advance of their arrival at the border. Phase 2 will begin next Fall with rail carriers transmitting their pre-arrival data. Regulations focusing on forwarders and importers will take effect in 2011 and 2012. The program is scheduled to be fully implemented by 2015.

For more information about eManifest, consult the following resources:

• CBSA fact sheet on amendments


• E-Manifest fact sheet


• Press Release on Amendments

Port of Charleston Getting Busier

Over the past decade, international shippers have looked on as the Ports of Norfolk and Savannah have increased traffic, seemingly at the expense of the Port of Charleston. The SC State Ports Authority has proposed an expansion to the site, and those changes seem to be creating new opportunities:

Mediterranean Shipping Co. is digging in its heels at the Port of Charleston, continuing to grow its local presence while other shipping companies are cutting back.

S.C. State Ports Authority Board Chairman David Posek announced Wednesday that the world’s second-largest shipping company would add a weekly call on Charleston starting June 9.

That will bring the company’s weekly calls on the Port of Charleston to six, surpassing by two the number of calls that Maersk Line now makes here.

If you move products through Southeastern ports, now is a good time to reevaluate routes and renegotiate rates.

Are Trans-Pacific Freight Costs About to Rise?

According to Logistics Management:

As the peak transpacific season approaches, ocean carriers comprising the industry's last rate-fixing cartel will try to charge shippers more. The CEOs of container shipping lines of the Transpacific Stabilization Agreement (TSA) have collectively voiced their intentions to raise rates as 2009-10 service contracts are being negotiated.

Now is not exactly the right time to be absorbing increased costs, and it's definitely the wrong time to be passing added costs on to your customers. However, this economic slowdown is the perfect time to have an experienced third party review your international distribution model and identify opportunities to eliminate unnecessary fees and outdated rate structures.

Like we've said before, the companies that exploit the market slowdown will have the competitive advantage when the economy turns around. Those 'leaner' companies will have leveraged independent expertise to enable more profitable partnerships with existing vendors and customers.

Are You Overpaying on Import Duties?

The Offshore Assembly Program (OAP), formerly known as the 806/807 Provision of the US Tariff Code, has been renamed the 9802 Provision of the Harmonized System Code. This program allows American firms to export component parts and have them assembled overseas. When the finished product is imported back into the US, duties are paid only on the foreign value added.

Shippers should estimate the production characteristics of the US OAP activity, and in particular, whether this activity is intensive in the use of non-production labor as compared to the overseas production. They should also examine the sensitivity of OAP imports to real exchange rate movements.

A breakdown of documents is required per shipment estimating the value of the US goods, the value of any foreign components that may have been added, and a breakdown of labor. If terms are listed on an invoice as Delivered Duty Unpaid (DDU), then freight needs to be shown as a separate line item. If you use a third-party logistics provider (3PL), they will need a listing of the freight rate so they will know how to handle the customs entry once the documents reach the US. Please note that you do not want to pay duty on freight either.

When handling imports of this nature, documents will need to be more itemized. By doing so, you will save money in duties, and make sure you are handling the shipment correctly and providing all the necessary information to US Customs and Border Protection.

If you have any questions about the "9802 Provision,” please contact Julia Church, International Specialist for M33 Integrated Solutions.

M33 Expands Its International Offering

Julia Church Brings More Than 22 Years of Transportation Experience to M33 Integrated Solutions.

Julia Church is the new International Specialist for M33 Integrated Solutions. She is responsible for overseeing the international transportation operations for all members of M33's Collaborative Client Network. Prior to joining M33, Mrs. Church was the International Logistics Manager for PFG, where she implemented and oversaw standard operating procedures during the company’s international expansion. Her duties included off-shore warehouse management, rate negotiations, development of security measures for containers, and freight auditing. Mrs. Church can also rely on her experience with TFL USA and the former Burlington Air Express, now BAX Logistics. She is a former SAP trainer, is Dangerous Goods Certified, and has attended training and management sessions in Germany, Switzerland, France, and the Netherlands. Julia lives in Greensboro, North Carolina, with her husband and son.

Are You Ready for 10+2?

Ready or not, the Importer Security Filing, also known as “10+2,” goes into effect on January 26th. This new security regulation by the US Customs & Border Protection (CBP) will require importers to submit ten additional information factors before a shipment can clear customs without incident, plus two more filings for vessel cargo.

CBP has advised that 2009 will be an interim period for the rule change and that they will show restraint in enforcing the rule as long as “importers are found to be making satisfactory progress toward compliance and showing a good faith effort to comply with the rule to the extent of their current ability.” Penalties will not be issued during this period, but CBP will not be likely to mitigate any penalties issued on or after 1/26/10. So companies should use this time wisely and get in compliance with '10+2' sooner, rather than later.

Just to make sure your transportation department doesn’t get tied down with red tape, here’s a list of the information factors that all importers will be required to submit before a shipment can clear customs under the new rules:

These factors make up the ‘ten’ in the 10+2:

1. Manufacturer (or supplier) name and address
2. Seller name and address
3. Buyer name and address
4. Ship to name and address
5. Container stuffing location
6. Consolidator (stuffer) name and address
7. Importer of record / FTZ (Free Trade Zone) applicant ID number
8. Consignee numbers (IRS number, EIN, SSN, or CBP assigned number of the individual(s) or firm(s) 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
10. Commodity (HTS Number / Up to the 6-digit level required, 10 is accepted)

The ’plus two’ consists of: (both of these are the responsibility of the carrier to report)

1. Container status messages
2. Vessel stow plans

Importers can choose to have a service provider, any party with a power of attorney and bond, complete the ISF on their behalf.

If you have any questions, feel free to leave them in the comments. Even if we don't have the specific answers to your questions, we'll tell you where to find them!