Agenda - PowerPoint PPT Presentation

Slide1 l.jpg
Download
1 / 51

Agenda 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 10+2 Readiness Data: the 21 st Century Link in the Supply Chain

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.

Download Presentation

Agenda

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Slide2 l.jpg

Agenda

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

10+2 Readiness

Data: the 21st Century Link in the Supply Chain

Using Data and technology to achieve new government requirements


Slide3 l.jpg

Breaking News


Slide4 l.jpg

Agenda

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

10+2 Readiness

Data: the 21st Century Link in the Supply Chain

Using Data and technology to achieve new government requirements


Slide5 l.jpg

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


Slide6 l.jpg

AES Compliance Review Program

Why Performs AES Compliance Reviews

  • Identify “Best Business Practices”

  • Identify “Glitches” that cause reporting problems

  • Educate Foreign Trade Division Staff


Slide7 l.jpg

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


Slide8 l.jpg

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


Slide9 l.jpg

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


Slide10 l.jpg

Agenda

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

10+2 Readiness

Data: the 21st Century Link in the Supply Chain

Using Data and technology to achieve new government requirements


Slide11 l.jpg

AES Compliance Best Practices

  • Obtain good software

  • Generate an export checklist

  • Verify commodity classification

  • Use/Update references

  • Contacts


Slide12 l.jpg

AES Compliance Best Practices

  • Seminars/Workshops

  • Mentoring Program

  • Cross-training

  • Training Manual

  • Ask Somebody


Slide13 l.jpg

Agenda

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

10+2 Readiness

Data: the 21st Century Link in the Supply Chain

Using Data and technology to achieve new government requirements


Slide14 l.jpg

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.


Slide15 l.jpg

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


Slide16 l.jpg

Agenda

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

10+2 Readiness

Data: the 21st Century Link in the Supply Chain

Using Data and technology to achieve new government requirements


Slide17 l.jpg

Record Retention

  • FTSR – 30.66

  • Retain for at least 5 years

  • Your Forwarder is your Partner


Slide18 l.jpg

Agenda

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

10+2 Readiness

Data: the 21st Century Link in the Supply Chain

Using Data and technology to achieve new government requirements


Slide19 l.jpg

Export Controls

You can’t automate classification

Increased diligence equals Increased costs

Not all items carry the same risks

Use a tiered-diligence model to achieve business goals

Principles


Slide20 l.jpg

Export Controls

High-risk

Global Data Mining ©

Low-risk

Tiered-diligence model™

8471.41.0095

6109.10.0004


Slide21 l.jpg

Export Controls

Low-risk

High-risk

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


Slide22 l.jpg

Export Controls

Human Rating

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


Slide23 l.jpg

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?


Slide24 l.jpg

Export Controls

Human Rating

Classification Research

You can’t automate judgment… But you can use technology to make it faster…


Slide25 l.jpg

Export Controls

Human Rating

Classification Research

You can’t automate judgment… But you can use technology to make it faster…


Slide26 l.jpg

Export Controls

Hyperlink

Classification Research

Automated document retrieval and retention


Slide27 l.jpg

Export Controls

Hyperlink

Create information once…

Make sure it’s right…

Automatically apply it everywhere it’s needed…

Classification Research

Classification Results store in database…

Automated document retrieval and retention


Slide28 l.jpg

Export Controls

ECCN Historical Database

License Determination

Tiered-diligence model™

You can’t automate judgment… But you can use technology to make it faster…


Slide29 l.jpg

Export Controls

900510

Historical Filings

ECCN Historical Database

License Determination

Human Rating

You can’t automate judgment… But you can use technology to make it faster…


Slide30 l.jpg

Export Controls

852691

Historical Filings

ECCN Historical Database

License Determination

Human Rating

You can’t automate judgment… But you can use technology to make it faster…


Slide31 l.jpg

Export Controls

License Determination

Tiered-diligence model™

  • Business decision:

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

hyperlink


Slide32 l.jpg

Export Controls

‘Actual’

‘Audit’

Electronic Audit Output File

Company

ETRAC

Data

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’


Slide33 l.jpg

Export Controls

‘Actual’

‘Audit’

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Electronic Audit Output File

Master ETRAC by Business Unit

Company

ETRAC

Company

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Company

ETRAC

Company

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Company

ETRAC

Company 1

Company

ETRAC

Company

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’


Slide34 l.jpg

Export Controls

Electronic SED Audit

Automatically identify errors across all business units…

Monitor Control Audit


Slide35 l.jpg

Export Controls

Electronic SED Audit

Automatically identify errors at the Filer level…

Using data to “drill down”

Monitor Control Audit


Slide36 l.jpg

Export Controls

Electronic SED Audit

Automatically identify errors at the business unit level…

Using data to “drill down”

Monitor Control Audit


Slide37 l.jpg

Agenda

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

10+2 Readiness

Data: the 21st Century Link in the Supply Chain

Using Data and technology to achieve new government requirements


Slide38 l.jpg

10 + 2 Readiness

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.

2.

The Office of Management and Budget (OMB) has determined that the rule will cost industry from $390 million to $630 million per year.

3.

“If the principal fails to comply with the proposed Importer Security Filing requirements, the principal and surety (jointly and severally) would pay liquidated damages equal to the value of the merchandise involved in the default”.

Why is this Important to Forwarders?

SECURITY

FEES

FINES

The Supply Chain will STOP!!


Slide39 l.jpg

10 + 2 Readiness

U

U

Database Design

Typical Customs Parts Master Database

Best in Class

Customs

Database

b) Identify Existing Data Sources

Parts Master

Merchandising ERP

PO ERP

CN Broker

.PDF Files

HTS tables

a) Identify Data Requirements

Material Group

Product Hierarchy

Item Number

Item Description

Specifications

US HTS #

US HTS Description

Ruling #

Ruling Date


Slide40 l.jpg

10 + 2 Readiness

U

U

Database Design

Customs Parts Master Database plus 10+2 Requirements

10 + 2

Database

b) Identify Existing Data Sources

Parts Master

Merchandising ERP

PO ERP

CN Broker

.PDF Files

HTS tables

Work with your clients to create a plan now!!

a) Identify Data Requirements

Material Group

Product Hierarchy

Item Number

Item Description

Specifications

US HTS #

US HTS Description

Ruling #

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


Slide41 l.jpg

10 + 2 Readiness

Building the Database

Suggest your client’s modify the standard Vendor Profile data to include all 10 + 2 data elements


Slide42 l.jpg

10 + 2 Readiness

Building the Database

This data should already exists… May need to be verified and formatted…


Slide43 l.jpg

10 + 2 Readiness

Building the Database

This data should already exists… May need to be verified and formatted…


Slide44 l.jpg

10 + 2 Readiness

Building the Database

This data should already exists… However, it will need to be linked to the PO ERP system…


Slide45 l.jpg

10 + 2 Readiness

Building the Database

If this data doesn’t already exists, it will require a research project to build it for every item in the Item Master File…


Slide46 l.jpg

10 + 2 Readiness

Building the Database

It’s very unlikely that this data already exists, it will require a research project to build it for every item in the Item Master File…


Slide47 l.jpg

10 + 2 Readiness

Bringing the Data Together

Link by Item Number

10+2 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


Slide48 l.jpg

10 + 2 Readiness

Create a Plan Now

Avoid Delays

Improve Compliance

Create a 10+2 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

Create a plan now…

This is going to take some time…

Q1-08

Q2-08

Q3-08

Q4-08


Slide49 l.jpg

Foreign Trade Division

Contact Information

Jerome Greenwell

Trade Ombudsman

  • Phone: 301-763-6975

  • Fax:301-763-6638

  • Email:Jerome.M.Greenwell@census.gov


Slide50 l.jpg

Foreign Trade Division

Contact Information

Dale C. Kelly

Chief, Regulations, Outreach, &

Education, Branch

  • Phone: 301-763-6975

  • Fax:301-763-4610

  • Email:Dale.C.Kelly@census.gov


Slide51 l.jpg

Thank you…

  • Matt Gersper

  • Phone: 303-670-2479

  • Email:mattgersper@gdmllc.com


  • Login