Self-filing vs. Broker filing. a discussion on the challenges, similarities and more

Transcription

1 Self-filing vs. Broker filing a discussion on the challenges, similarities and more

2 WELCOME! Presented by Karin Smith CEO, CustomsNow Susan Kohn Ross Attorney, MSK

3 Considerations when making a decision to self-file? Is it as simple as filing an entry? Is it based on the volume of transactions? Is it based on the complexity of the product being imported? Or, is there more that you should consider?

4 Karin Smith, CEO Customs Now, Inc Tomas, Suite 380D Rancho Santa Margarita, CA T: (949) T: (888) F: (949)

5 Susan Kohn Ross, Esq. Mitchell Silberberg & Knupp LLP West Olympic Boulevard Los Angeles, CA T: (310) F: (310)

6 Overview I. History & Evolution II. Regulatory Framework III. Corporate Structure IV. Trade Compliance Experience V. Import Supply Chain VI. Product Complexity VII. Trade Data / Automation VIII. Operational Process IX. Cost/Benefit Analysis

7 First, a little history

8 Evolution of Compliance Modernization Act 1993 CAT and FA Audits 9/ CBP Centers of Excellence and Expertise ACE Technology Advancements ABI 1980s Informed Compliance Compliance Role Importer Security Filing 2009 ITDS 2015/16

9 CBP Advancements RLF & Electronic Invoicing Program (EIP) ACH & Periodic Monthly Statement (PMS) Center of Excellence & Expertise (CEE) ACE & Automated Systems International Trade Data System (ITDS) Document Imaging System (DIS) PGA Message Set Post Summary Corrections (PSC)

10 Self-filing Early Adopters

11 Role of Broker A time of enormous change CBP and PGAs online with ACE Expanded role to assist CBP with many IORs Broker Known Importer Program Must embrace change & provide value add Streamline process & efficiencies

12 II. Regulatory Framework 19 U.S.C C.F.R. Part 111 When you self-file, on which company s behalf are you acting? Not permitted to conduct customs business on behalf of others unless licensed as a customs broker Who can the broker share information with?

13 Self-filing Considerations STAKEHOLDER Support Experience HTS Numbers Vendors Corporate Structure Air, Ocean, Land Border

14 III. Corporate Structure Considerations Many Divisions IORs / Consignees Centralized Compliance Group Brokerage Options Risks Conducting customs business without a license

15 Stakeholder Support Considerations Management buy-in Sophistication of business partners Risks Doomed to failure due to insufficient support internally and externally

16 IV. Trade Compliance Best Practices: Documented Procedures & Controls Engaging Management and Stakeholders Classification / Part File / Shipment Data Internal & External Training Audit Program in Place Broker Management Controls CBP Relationship

17 Compliance Expertise Considerations Corporate buy-in Staff training System support Existing or new products Number of PGAs Cybersecurity risks Risks Large expense - little return Major headaches without proper planning Too many mistakes = more inspections

18 CBP Relationship Considerations Centers of Excellence and Expertise Account Manager C-TPAT ISA Risks Too many mistakes = more inspections Demurrage, detention, etc. Delays Disruption

19 Reasonable Care Considerations Make sure your HTS Value, and Other agency requirements are met at time of entry Risks Cannot be sure HTS Value, and Other agency requirements are met at time of entry

20 V. Import Supply Chain Considerations Mode of Transportation Ports of Entry Forwarder Network Inco / Payment Terms Risks Related v. not related Level of partner sophistication Cost for all parties

21 Vendor Compliance Considerations Extent of supply chain Sophistication of business partners Documentation control Risks Can all partners keep up How to roll-out successfully

22 VI. Complexity of Imports Considerations Volumes Range of HTS Vendors Free Trade Agreements Valuation Risks Number of PGAs Additional document requirements Antidumping and Countervailing duty cases

23 Partner Government Agencies Considerations Number of PGAs PGA required data elements Complexity of entries Risks Not all PGAs on ACE State regulatory agency considerations

24 VII. Trade Data Sophistication Considerations Trade Management System Data Sharing o Purchase Order o Part File o ASN / 856 Automated Audit Risks Not all business partners are equally sophisticated

25 Automation Considerations Part File ASN / Shipment Information, or o Vendor Electronic Invoice o Purchase Order Auto-populate ISF and entry Validate rather than key

26 VIII. Operational Considerations Operational Considerations: What exact steps are you doing today vs. your broker, forwarder or other 3PLs in your supply chain?

27 Staffing Roles

28 Staffing Productivity Considerations: Complex or vanilla entries? Multi-line with PGA? Highly automated process or manual? Risks: Employee Turnover Rapid product/parts changes

29 IX. Cost Benefit Analysis Considerations Staffing Costs Software Costs Savings Control Visibility Risks Cost/Savings Analysis with Labor Bench Strength Contingencies Flexibilities Entry Labor Model Integration No Integration Annual Wage $ 50,000 $ 50,000 Benefits Rate 30% 30% Total Annual Wages* $ 65,000 $ 65,000 Wages/Hour $ $ Number of Hours Per Day 8 8 Productive Hours 6 6 Entries Per Productive Hour 4 3 Number of entries per day Calc'd ABI Entries per Year 6,500 4,160 Labor Cost per Entry $ XXX $ *Assumes hourly non-exempt wages 5 Year Cost Compare Broker Cost Direct Filing: Software Costs Importer's Labor Costs Total Direct Filing Cost Total Direct Filing/Entry

30 Questions? Karin Smith CEO, CustomsNow Susan Kohn Ross Attorney, MSK