Importers will have to abide by more regulations this week in order to get their cargo into the United States.
The Customs and Border Protection agency Monday will start enforcing a revamped Importer Security Filing initiative, known by most in the international trade community as the “10+2” rule.
Each number in the 10+2 represents a set of information that importers must electronically supply to the government 24 hours before their cargo can set sail for the United States. The 10 in the 10+2 have already been enforced for a few years after being passed and expanded by post-Sept. 11 port security laws, such as the Safe Port Act of 2006.
Last year, customs announced that two more regulations would join the list; a vessel “stow” plan that essentially shows a seating chart of all cargo in the shipment, and a list of “container status messages,” which are internal messages sent between the cargo owner and other business parties while their goods travel around.
U.S. Customs officials said that the information is needed to better identify what is being transported into the United States, given that not all cargo is scanned with X-rays upon entry.
But importers aren’t happy with the new regulations, noting they will mean higher costs and potential delays due to extra time needed to gather the information, said Susan Kohn Ross, an international trade consultant with Los Angeles-based firm Mitchell Silberberg & Knupp LLP.
“The main complaint is that importers will have to start collecting data ahead of time, two to three days ahead of normal, which can slow when their shipment might be cleared to leave making them late and allowing cargo to just sit there and potentially be tampered with,” Ross said. “Importers like to keep the cargo flowing for business and security reasons.”
The increase in costs of imported shipments will range from $48 to $390 per shipment, estimated to be about 0.13 percent to 1.03 percent of the median value of $38,000 per shipment, customs officials said.
Kenneth Timmons, a spokesman for Western Overseas Corp., a Cypress-based customs broker and freight forwarder, said technological glitches with the container status messages could impede the shipment if a message is erroneous.
“We support the Safe Ports Act and the basic concept of the these regulations. However, we truly believe that the new regulations as written will further isolate the USA in the international trade community,” Timmons said.
Importers are being given a 12-month grace period before they face fines for violating the rules. However, they will receive warnings starting this week.
Tracking Trucks
Port officials are installing tracking devices into hundreds of the low-emissions trucks they are subsidizing in an effort to clean up air.
The tracking devices, developed by Vancouver-based WebTech Wireless, are mounted under the dash of the trucks, using GPS technology and AT & T; wireless networks to transmit data in real time to servers monitored by port
officials.
Six hundred of the devices will be installed in the first phase of the project, but thousands more could be put in place depending upon how many more trucks are subsidized with state money, said Port of Long Beach spokesman Art Wong.
The tracking devices are intended to ensure trucks remain in California and service the port. But they also will provide a picture of how long trucks idle at the port, allowing officials to better estimate vehicle emissions.
The tracking devices are being funded by the ports’ joint $2.2 billion Clean Trucks Program, which seeks to reduce diesel pollution by 80 percent in five years.
Trading places
The Los Angeles Area Chamber of Commerce has appointed Carlos J. Valderrama to its newly created position of senior vice president of global initiatives.
Valderrama most recently worked as director of Latin American operations for law firm Musick Peeler & Garrett LLP and is a member of Mayor Antonio Villaraigosa’s Trade Advisory Council, created earlier this month.
“As the L.A. Area Chamber continues to enhance trade and investment opportunities across the region, Valderrama’s knowledge and expertise make him an ideal leader for advancing our mission,” said Gary Toebben, chamber chief executive.
Valderrama, a native of La Paz, Bolivia, came to the U.S. in 1971 and became a naturalized citizen after serving in the U.S. Army. He’s earned two college degrees and worked for the CIA, Commerce Department, and served as a trade expert on Latin America for various locally based law firms and
government agencies.
Valderrama could not be reached for comment.
Staff Reporter Francisco Vara-Orta can be reached at (323) 549-5225, ext. 241, or at [email protected].
