Agenda

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(No Transcript)
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Agenda
Data the 21st Century Link in the Supply Chain
Using Data and technology to achieve new
government requirements

• Breaking News
• AES Compliance Review Program
• AES Compliance Best Practices
• Voluntary Self Disclosures
• Record Retention
• Export Control System
• Tiered-Diligence Model
• Critical Data Elements
• Electronic Auditing
• 102 Readiness

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Breaking News

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Agenda
Data the 21st Century Link in the Supply Chain
Using Data and technology to achieve new
government requirements

• Breaking News
• AES Compliance Review Program
• AES Compliance Best Practices
• Voluntary Self Disclosures
• Record Retention
• Export Control System
• Tiered-Diligence Model
• Critical Data Elements
• Electronic Auditing
• 102 Readiness

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AES Compliance Review Program
Compliance Review Program Goals

• Identify and Develop Best Practices
• Offer Assistance and Guidance with AES Filings
• Help You Avoid Costly Encounters with Government
  Enforcement Agencies

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AES Compliance Review Program
Why Performs AES Compliance Reviews

• Identify Best Business Practices
• Identify Glitches that cause reporting problems
• Educate Foreign Trade Division Staff

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AES Compliance Review Program
Which Companies Merit a Visit?

• Compliant Companies
• Companies with
• unresolved fatal errors
• Excessive late filed shipments
• Non-compliant Option 4 shipments

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AES Compliance Review Program
Start of Compliance Reviews

• Pre-Test with compliant/non-compliant companies
  began March 2007
• Non-compliant company visits began June 2007
• To date we have visited 46 companies
• Compliance improvement
• Late shipments 2.9 in January 2007
• 1.3 in August 2007

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AES Compliance Review Program
Compliance Review Process

• Notification letter sent prior to meeting
• Compliance Team will visit companies
• Attendees Managers, Compliance Officers,
  Forwarders, and/or staff with AES
  responsibilities
• 90 days to achieve compliance
• Referrals to OEE and/or CBP

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Agenda
Data the 21st Century Link in the Supply Chain
Using Data and technology to achieve new
government requirements

• Breaking News
• AES Compliance Review Program
• AES Compliance Best Practices
• Voluntary Self Disclosures
• Record Retention
• Export Control System
• Tiered-Diligence Model
• Critical Data Elements
• Electronic Auditing
• 102 Readiness

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AES Compliance Best Practices

• Obtain good software
• Generate an export checklist
• Verify commodity classification
• Use/Update references
• Contacts

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AES Compliance Best Practices

• Seminars/Workshops
• Mentoring Program
• Cross-training
• Training Manual
• Ask Somebody

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Agenda
Data the 21st Century Link in the Supply Chain
Using Data and technology to achieve new
government requirements

• Breaking News
• AES Compliance Review Program
• AES Compliance Best Practices
• Voluntary Self Disclosures
• Record Retention
• Export Control System
• Tiered-Diligence Model
• Critical Data Elements
• Electronic Auditing
• 102 Readiness

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Voluntary Self Disclosure

• Reflects due diligence in preventing, detecting,
  and correcting violations.
• Letter should include the following information
• Nature of the problem
• Number and value of shipments affected
• Mitigating Factors (i.e. training)
• Corrective Actions Taken (Remedial steps taken by
  company to avoid reoccurrence of violation)
• Exhibits/Attachments (i.e. ITNs, AES Records,
  SEDs)
• Contact Information
• A VSD should not be used to report a correction
  to a record.

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Voluntary Self Disclosure

• Submit and address to
• Mr. William G. Bostic, Jr.
• Chief, Foreign Trade Division
• U.S. Census Bureau
• 4600 Silver Hill Road, Room 6K032
• Washington, DC 20233-6700
• http//www.census.gov/foreign-trade/www/index.html
  

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Agenda
Data the 21st Century Link in the Supply Chain
Using Data and technology to achieve new
government requirements

• Breaking News
• AES Compliance Review Program
• AES Compliance Best Practices
• Voluntary Self Disclosures
• Record Retention
• Export Control System
• Tiered-Diligence Model
• Critical Data Elements
• Electronic Auditing
• 102 Readiness

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Record Retention

• FTSR 30.66
• Retain for at least 5 years
• Your Forwarder is your Partner

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Agenda
Data the 21st Century Link in the Supply Chain
Using Data and technology to achieve new
government requirements

• Breaking News
• AES Compliance Review Program
• AES Compliance Best Practices
• Voluntary Self Disclosures
• Record Retention
• Export Control System
• Tiered-Diligence Model
• Critical Data Elements
• Electronic Auditing
• 102 Readiness

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Export Controls
Principles

• You cant automate classification
• Increased diligence equals Increased costs
• Not all items carry the same risks
• Use a tiered-diligence model to achieve business
  goals

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Export Controls
Tiered-diligence model
8471.41.0095
6109.10.0004
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Export Controls
Tiered-diligence model
A relatively small percentage of total U.S.
exports and re-exports require a license from
BIS Excerpt from Exporting Control Basics
(Exporting 101)
6109.10.0004
8471.41.0095
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Export Controls
Tiered-diligence model
8471.41.0095
6109.10.0004
High-risk!
Low-risk!
Combine human judgment, data analysis, and
business rules to optimize your export control
policy
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Export Controls
Critical Data Elements
Design the database

• Business decisions
• What data elements are you trying to control?
• In what format do you require the data for use in
  your automated systems?

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Export Controls
Classification Research
You cant automate judgment But you can use
technology to make it faster
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Export Controls
Classification Research
You cant automate judgment But you can use
technology to make it faster
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Export Controls
Classification Research
Automated document retrieval and retention
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Export Controls
Classification Research
Classification Results store in database
Automated document retrieval and retention
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Export Controls
License Determination
Tiered-diligence model
You cant automate judgment But you can use
technology to make it faster
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Export Controls
License Determination
Human Rating
You cant automate judgment But you can use
technology to make it faster
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Export Controls
License Determination
Human Rating
You cant automate judgment But you can use
technology to make it faster
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Export Controls
License Determination
Tiered-diligence model

• Business decision
• What level of diligences is required for products
  with various risk ratings?

hyperlink
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Export Controls
Electronic SED Audit
Whether you have oversight for one business unit
Export Database
1. Link in ECCN Should Be
3. Comprehensive Electronic Audit of Export
Transactions
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Export Controls
Electronic SED Audit
Actual
Whether you have oversight for one business unit
or hundreds
Export Database
1. Link in ECCN Should Be
3. Comprehensive Electronic Audit of Export
Transactions
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Export Controls
Electronic SED Audit
Automatically identify errors across all business
units
Monitor
Control
Audit
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Export Controls
Electronic SED Audit
Automatically identify errors at the Filer level
Using data to drill down
Monitor
Control
Audit
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Export Controls
Electronic SED Audit
Automatically identify errors at the business
unit level
Using data to drill down
Monitor
Control
Audit
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Agenda
Data the 21st Century Link in the Supply Chain
Using Data and technology to achieve new
government requirements

• Breaking News
• AES Compliance Review Program
• AES Compliance Best Practices
• Voluntary Self Disclosures
• Record Retention
• Export Control System
• Tiered-Diligence Model
• Critical Data Elements
• Electronic Auditing
• 102 Readiness

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10 2 Readiness
Why is this Important to Forwarders?
SECURITY
FEES
FINES
The Supply Chain will STOP!!
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10 2 Readiness
Database Design
Typical Customs Parts Master Database
Best in Class Customs Database
b) Identify Existing Data Sources
Parts Master
Merchandising ERP
HTS tables
CN Broker
.PDF Files
PO ERP
a) Identify Data Requirements
Item Number
Item Description
Material Group
Product Hierarchy
Specifications
US HTS
Ruling
US HTS Description
Ruling Date
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10 2 Readiness
Database Design
Customs Parts Master Database plus 102
Requirements
10 2 Database
b) Identify Existing Data Sources
Parts Master
Merchandising ERP
HTS tables
CN Broker
.PDF Files
PO ERP
Work with your clients to create a plan now!!
a) Identify Data Requirements
Item Number
Item Description
Material Group
Product Hierarchy
Specifications
US HTS
Ruling
US HTS Description
Ruling Date
Manufacturer name
Manufacturer address
Seller name
Seller address
Country of origin
Buyer name
Buyer address
Ship to name
Ship to address
IOR Number
Consignee Number(s)
Container stuffing location
Consolidator name
Consolidator address
This is very complex and will take some time for
your clients to create
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10 2 Readiness
Building the Database
Suggest your clients modify the standard Vendor
Profile data to include all 10 2 data elements
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10 2 Readiness
Building the Database
This data should already exists May need to be
verified and formatted
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10 2 Readiness
Building the Database
This data should already exists May need to be
verified and formatted
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10 2 Readiness
Building the Database
This data should already exists However, it will
need to be linked to the PO ERP system
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10 2 Readiness
Building the Database
If this data doesnt already exists, it will
require a research project to build it for every
item in the Item Master File
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10 2 Readiness
Building the Database
Its very unlikely that this data already exists,
it will require a research project to build it
for every item in the Item Master File
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10 2 Readiness
Bringing the Data Together
Link by Item Number
102 data elements should be created at time of
PO and forwarded to the Importer Security Filing
system
PO ERP
Parts Master
Merchandising ERP
New Data
Link by Item Number
Link by Item Number
With this data, now the Broker can transmit the
Importer Security Filing
no later than 24 hours before cargo is laden
aboard a vessel destined to the US
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10 2 Readiness
Create a Plan Now
Avoid Delays
Improve Compliance
Create a 102 Readiness Strategy now This is a
very complex challenge for importers You can
provide leadership expand your service offering
and participate in the 390 to 630 million
estimated annual costs of implementing the
Importer Security Filing program
Reduce Expenses
This is going to take some time
Create a plan now
Q2-08
Q1-08
Q3-08
Q4-08
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Foreign Trade Division
Contact Information

• Jerome Greenwell
• Trade Ombudsman
• Phone [phone]
• Fax [phone]
• Email Jerome.M.Greenwell_at_census.gov

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Foreign Trade Division
Contact Information

• Dale C. Kelly
• Chief, Regulations, Outreach,
• Education, Branch
• Phone [phone]
• Fax [phone]
• Email Dale.C.Kelly_at_census.gov

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Thank you

• Matt Gersper
• Phone [phone]
• Email mattgersper_at_gdmllc.com