July 22, 2008

WEBCAST ISF 10+2: How to Make it Add Up for You

Email questions to: [email protected]

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

Email questions to: [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.

Email questions to: [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…

Email questions to: [email protected]

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

WEBCAST Email questions to: [email protected]

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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

Email questions to: [email protected]

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

Email questions to: [email protected]

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The following 10 data elements were selected

1 2 3 4 5 Manufacturer name and address Seller name and address Container stuffing location Consolidator name and address Buyer name and address 6 7 8 9 Ship to name and address Importer of record number Consignee number Country of origin of the goods 10 Commodity Harmonized Tariff Schedule #(6 digit) Email questions to: [email protected]

WEBCAST

Details 1 - 4

1. Manufacturer (or supplier) name and address.

for entry purposes).

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

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.

Email questions to: [email protected]

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.

10 digit level or greater.

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

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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

1. WEB ISF 10+2 3. AMS ISF 10+2 CBP AMS ISF 10+2 Carrier 315 EDI Container STOW 2. Import CHB ISF 10+2 Email questions to: [email protected]

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

Email questions to: [email protected]

WEBCAST

10+2 Readiness… It’s strategic, not tactical

Matt Gersper Founder and President Global Data Mining “It’s Strategic, Not Tactical” Email questions to: [email protected]

There are three kinds of companies as it relates to ISF 10+2 readiness Best in class

Suppliers Forwarders 3PL’s Function Sales & Customer Service Global Logistics Strategic Sourcing & Procurement Enterprise Wide Strategy Corporate Risk Management Trade Compliance Manufacturin g & Design Trade Finance Brokers WEBCAST Email questions to: [email protected]

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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… 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… K e y P o i n t 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

• Why is it important to you? •

It’s Strategic, not Tactical

•

10+2 Readiness

•

Create your strategy now!

Using data and technology to achieve new government requirements Email questions to: [email protected]

NOTE: VIEW IN SLIDE SHOW MODE!!

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 properly… Optimizing business the most direct, effective manner possible can improve supply chain velocity and create competitive advantage!!!

and surety (jointly and severally) would pay liquidated damages equal to the value of the merchandise involved in the default”.

COST FINES/ STOP

Email questions to: [email protected]

WEBCAST

10+2 Readiness… It’s strategic, not tactical

•

Introduction

•

Why is it important to you?

• It’s Strategic, not Tactical •

10+2 Readiness

•

Create your strategy now!

Using data and technology to achieve new government requirements Email questions to: [email protected]

WEBCAST

It’s Strategic, Not Tactical

1.

2.

3.

4.

5.

It’s a change in the corporate business processes, and it’s

beyond the scope of the trade compliance professional

Do you know who actual manufacturers of every item you purchase Every part must be linked with a fully qualified Commodity HTSUS number.

You need to know that all the relevant data including items such as the container stuffing location were submitted.

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 Manufacturer Name & Address Seller name & address Buyer name & address Ship to name & address Container Stuffing Location Container (Stuffer) name & address Importer of Record # Consignee # Country of Origin Commodity HTSUS # Source Procurement Sourcing Procurement Sourcing Procurement Sourcing Procurement Sourcing Supplier/Forwarder Supplier/Forwarder Trade Compliance/Import Trade Compliance/Import Trade Compliance/Import Trade Compliance/Import Responsible Party Importer Importer Importer Importer Supplier/Forwarder Supplier/Forwarder Importer Importer Importer Importer/Broker K e y P o i n t An effective solution to meet the very complicated 10+2 requirements will require a cross-functional, coordinated efforts including 3rd parties Email questions to: [email protected]

It’s Strategic, Not Tactical

Importers Current Process An effective solution to meet the complicated 10+2 requirements will require a business process re-design Data NOT currently required for entry: 1. Manufacturer Info 2. Seller Info 3. Container Stuffing Info 4. Consolidator Info Create PO Suppliers Create commercial invoice Forwarders Manage logistics of shipment Carriers Brokers Deliver the shipment 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

Email questions to: [email protected]

Business Process Re-Design

Importers Create PO Suppliers Forwarders Create commercial invoice 2. Automatically link new data Carriers Manage logistics of shipment 3. Capture stuffing & consolidator info… Deliver the shipment Brokers Automation of entry document at the end of the supply chain 1. Build out the new data requirements 4. Report through security filing software to meet the CBP requirement – providing a lot more information a lot sooner in the supply chain Email questions to: [email protected]

NOTE: VIEW IN SLIDE SHOW MODE!!

WEBCAST

Data Strategy

1.

2.

3.

4.

5.

6.

7.

8.

9.

What data is required?

What data currently exists?

Who “owns” the different data elements?

Where does the data reside today?

In what format?

Where should the data reside for the future solution?

How will it be validated?

How will it be integrated?

How will it be updated?

PO ERP Merchandising ERP Forwarder Data Parts Master Email questions to: [email protected]

NOTE: VIEW IN SLIDE SHOW MODE!!

WEBCAST

Collaborative Assessment

• • • • • • Assemble the team Recommend targeted strategies to achieve 10+2 objectives Identify required Resources – – Internal External Quantify Costs Quantify Opportunities Prepare ROI Client’s project leader Department heads 3 rd party partners • Data solutions • Applications • Forwarder/broker

Process Optimization Model by GDM… Email questions to: [email protected]

NOTE: VIEW IN SLIDE SHOW MODE!!

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 3 rd party partners

• Data solutions • Applications • Forwarder/broker Visibility Measurability Control

People Applications Data Email questions to: [email protected]

NOTE: VIEW IN SLIDE SHOW MODE!!

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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

•

Why is it important to you?

•

It’s Strategic, not Tactical

• 10+2 Readiness •

Create your strategy now!

Using data and technology to achieve new government requirements 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 Buyer Name (10+2) Buyer Address (10+2) Ship to Name (10+2) Ship to Address (10+2) IOR Number (10+2) Consignee Number (10+2) Item Number Merchandising ERP Material Group Product Hierarchy Item Number Item Description Manufacturer Name (10+2) Manufacturer Address (10+2) Seller Name (10+2) Seller Address (10+2) Parts Master Item Number US HTS (10+2) US HTS Descriptions US Ruling Number US Ruling Date Country of Origin (10+2) New Data Item Number Container Stuffing Location (10+2) Consolidator Name (10+2) Consolidator 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.

ISF 10+2 Integration with Existing Systems

WEBCAST 3 rd Existing Importer System + Party Logistics AMS 10+2 CBP AMS 10+2 1.

2.

3.

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 4.

5.

6.

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

•

Why is it important to you?

•

It’s Strategic, not Tactical

•

10+2 Readiness

• Create your strategy now!

Using data and technology to achieve new government requirements 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.

Create a plan now Q1-08 Q2-08 Reduce Expenses This is going to take some time 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 Create a plan now Q3-08 Q4-08 Reduce Expenses This is going to take some time 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]