Q&A from the “Minimizing Exposure, Liability, and Risk in Trade Compliance” Webinar

Posted on August 16, 2013 by Sam Scordato

Amber Road would like to thank all of those who attended our Minimizing Exposure, Liability, and Risk in Trade Compliance webinar. The attendees asked some great questions, but unfortunately, we ran out of time and were unable to answer all of them. The presenters were kind enough to provide us with written responses to those questions. Here are a few:

As a senior compliance professional, do I need insurance similar to our C-level leadership?
One can make the case that Empowered Officials and senior trade compliance professionals should be covered the same way senior executives and others in the organization are (including the board of directors). To my knowledge there’s no separate insurance package or coverage available for EOs and senior trade compliance professionals. With the job’s level of responsibility it’s certainly a worthwhile consideration.

From an enforcement perspective are there cases where an Empowered Official or Responsible Authority went to jail?
I do not know of any case where an EO went to jail. I do know of cases where the EO (or other trade compliance professional) was put on administrative leave, fired, demoted, sued by the corporation for breach of contract, and investigated personally by Justice. There are many cases where senior staff (i.e. VPs and above) have gone to jail and suffered many other negative outcomes, including significant fines and debarment.

Don’t see the question you asked? Follow this link to see a full list of questions and answers.

CBP Prepares to Enter Liquidated Damages Phase of the ISF

Posted on June 13, 2013 by Colleen Bush

The US Customs and Border Protection (CBP) announced that it will begin the liquidated damages phase of the Importer Security Filing (ISF) on July 9, 2013. These ISF enforcement phases are designed to help CBP make more informed targeting decisions regarding high-risk US-bound cargo.

Starting next month, liquidated damages of $5,000 per violation will be issued for inaccurate, incomplete, or untimely filings. CBP may also withhold the release or transfer of cargo for which an ISF has not been filed. Noncompliant cargo will also be subject to further inspections.

The ISF requires importers and carriers to electronically submit additional cargo information at least 24 hours before ocean freight is loaded onto a vessel bound for the US. It was designed to increase the amount of shipment information available to the CBP in order to better identify potential terrorist threats.

While many shippers have slacked off with ISF compliance, that will all change with the implementation of liquidated damages. According to Albert Saphir, president of ABS Consulting, “responsible importers that spent a lot of time and effort (money) on creating a good and compliant ISF program will receive the benefit they deserve when those importers not compliant will finally need to ‘get with the program’ or face significant monetary penalties.”

For more information, please read this Logistics Management article and CBP’s press release.

Is your company prepared to avoid these costly fines? Click here to learn vital facts importers must be aware of to successfully comply with the ISF.

New Research Report: American Shipper’s 2013 Import Operations and Compliance Benchmark Study

Posted on May 31, 2013 by Colleen Bush

The 2013 Import Operations and Compliance Benchmark Study: Two Worlds Collide has just been released! This report is based on a study recently conducted by American Shipper and BPE Global to learn more about the issues impacting U.S. import operations and compliance managers.

The findings suggest that best-in-class shippers are integrating import compliance and operations functions to better leverage resources and investment in technology, leading to greater efficiencies.

Key focus areas include:

Import operations and compliance reporting structures
Customs filing timeliness and accuracy
C-TPAT and ISA participation and effectiveness
Operations and compliance technologies
The blend of operations and compliance functions

Align your import practices with best-in-class operations - download this complimentary report today!

Marianne Rowden Discusses Recent U.S. Regulatory and Legislative Updates

Posted on May 29, 2013 by Sam Scordato

At a recent seminar, Financial Returns of Global Trade, hosted by Amber Road and Sandler & Travis Trade Advisory Services, Inc., Marianne Rowden, President and CEO of the American Association of Exporters and Importers (AAEI), spoke on many of the recent U.S. legislative and regulatory updates. She covered topics including the Customs Re-authorization Bill, Simplified Entry, the effects of sequestration, the Export Control Reform Initiative, the status of mutual recognition agreements, and the Food Safety Modernization Act.

Two areas of particular focus for Rowden were Customs’ Centers of Excellence and Expertise (Centers), along with new C-TPAT proposed rules and their Privacy Act ramifications. These Centers will focus on industry specific trade issues and serve as an information resource for participating importers. By the end of 2013, ten Centers will be operational, including one for apparel, footwear, and textiles in San Francisco and a second for consumer products and mass merchandising in Atlanta.

“One of the goals of the Centers is to enhance enforcement and address industry risks,” explained Rowden, who noted that 40 percent of respondents from their most recent benchmarking survey said they would participate in a Center, and 50 percent said their participation depended on the benefits of joining.

Rowden also commented on two Federal Register notices published on March 13^th, one on a proposed records system for C-TPAT documents, and a second on Privacy Act exemptions to C-TPAT data. She expressed that the proposed records system “is not in the spirit of partnership. C-TPAT data is your proprietary data and the government has to respect the data. They have decided your data is not covered under the Trade Secrets act. The System of Records also violates the Safe Port Act.”

To learn more about these regulatory and legislative updates, please join Amber Road and Sandler & Travis Trade Advisory Services, Inc. at the 92^nd Annual AAEI Conference on Globalization: Policy & Practice.

Robert Perez Talks Key Custom Initiatives

Posted on May 23, 2013 by Sam Scordato

Robert E. Perez, director, field operations, New York Field Office, U.S. Customs and Border Protection, recently gave an update on key Customs initiatives at a recent retail seminar held in New York City. This retail-focused event, Financial Returns in Global Trade, was hosted by Amber Road and Sandler & Travis Trade Advisory Services, Inc., and discussed the financial benefits that can result from the automation of key compliance processes.

According to Perez, Customs is embracing the idea of combing missions: improving security while lowering costs for the trade community and increasing the ease of interacting with Customs. Key Customs initiatives were borne of this idea, and will equate to a stronger economy.

“We are challenging ourselves to transform,” stated Perez, who enumerated several different underlying principles related to key Customs initiatives: consistency and harmonization, to drive down transaction costs for the community; modernization, by streamlining automation initiatives and developing a more agile development process; and co-creation, with a focus on the broker’s role.

Other principles underlying Customs’ key initiatives are bi-directional education, to make working with Customs more consistent and predictable; comprehensive trusted trader programs, with the harmonization of C-TPAT and ISA; trade intelligence, focusing on educating trusted partners, particularly with trade enforcement and protection; and trade enforcement and revenue collection, by working with other agencies, particularly with managing risk at the border.

Want to learn more about leveraging returns from the automation of trade compliance? Download Amber Road’s white paper, The ROI of Automating Trade Compliance.