Managing Customs and PGA = a Total Perspective for Importers
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The document discusses the evolving landscape of customs and import processes, focusing on the perspectives of importers and brokers amid changes introduced by the Automated Commercial Environment (ACE). It highlights the importance of data control, automation, and compliance, emphasizing opportunities amidst regulatory challenges. Additionally, it outlines best practices for importers to leverage technology and streamline their operations while navigating the complexities of international trade.
Managing Customs and PGA = a Total Perspective for Importers
- 1. info@3rdwave.co3rdwave.co+1 (416) 510-8800 1 Managing Customs & PGAs A Total Perspective for Importers Edward (Ned) Blinick Chief Product Officer A Q&A with Gregg Cummings, Managing Partner, Strix LLC eblinick@3rdwave.co
- 2. 2 About Gregg Gregg has more than 25 years of experience in the International trade industry and Corporate Finance. He is a Managing Partner of STRIX, LLC a leading company in Self- Filing Software, International Freight, Domestic Trucking and Logistics. He is also the President of TBI Brokers, Inc., the firm's Customhouse Brokerage. Gregg is recognized as an expert in the area of customs automation for ISF and Entry filing and provides important consulting services to companies who seek to bring processes in house as well as marrying full service brokerage automation and hybrid solutions. He is an active member of the International Compliance Professionals Association (ICPA) and speaks frequently on the topics of how importers can streamline their import processes via automation and internal control.
- 3. AGENDA WONDERFUL WORLD OF ACE Changes, challenges, Opportunities PGAs complex challenges Gaining Competitive Advantages TRADITIONAL ROLES OF CBP, IMPORTER, BROKER Historically and Today Flexibility and Control of Data IMPORTER CASE STUDIES Brokers point of view Importers point of view THE ROAD AHEAD Best practices Current regulatory environment
- 4. 4 Unique position in marketplace Full Service Customs Broker Cloud based Self-Filing Solution Formerly
- 5. 5 The ACE environment forever changes the relationship between CBP and the Importer This is a positive and needed direction Single Window makes sense for todays technology PrePost
- 6. 6 Changes mean Challenges Challenges mean Opportunities Opportunities mean Competitive Advantages
- 7. 7 What are the Main Changes Entry Summary Cargo Release PGAs CEEs
- 8. 8 The Main Challenges ACE Entry Summary ACE Cargo Release ACE System Downtime ACE System Message sets
- 9. 9 PGAs remain the Complex Challenge of ACE FDA APHIS DOT EPA
- 10. 10 Opportunities begin by exploring the Traditional Roles between CBP, the Importer and the Broker Complex challenges always provide Opportunities
- 11. 11 CBP Roles and Responsibilities Complex challenges always provide Opportunities Then: US Customs Reported to Treasury Collect Duties and Fees Enforcement Collect Trade Data, Census information Now: Homeland Security Security, Enforcement Pendulum Swing back to more traditional enforcement
- 12. Complex challenges always provide Opportunities Customs Brokers Roles and Responsibilities Then Primary interface between Importer and Customs Oversight of Import Clearance Collate Documentation Classify goods Communicate to Ports Full Service Now Not Necessarily primary interface with Customs Tougher legal and Regulatory Environment Greater push/pull for Importer to Classify Greater push/pull for Importer to Collate Docs
- 13. Traditional Roles of Importer Complex challenges always provide Opportunities Then Relied on Broker to provide Service Interface with Customs Process a Mystery Visibility Limited Penalties for non-Compliance High Now Todays Technological and Legal Environment Process a Mystery no longer ACE Portal Importer provides most documentation Importer classifies goods Must audit ISF and Entry files Visibility on par with Broker
- 14. 14 Are you in Control or Out of Control? Todays Importer has greater Flexibility and Options than ever before Lower Pricing for Brokerage Options to Self-File Options to Hybrid File Automation Automate Self-Filing Automate Brokerage
- 15. 15 Its The Data Stupid!
- 16. 16 Controlling the Process begins by Controlling the Data Importer Case Studies How does a Broker do this? How can and should an Importer do this?
- 17. 17 MAIN POINTS Top places to control import data Parts List PGA Documentation Invoices/Line Items Duties, Taxes, Exam/Port Fees
- 18. 18 IMPORTER 1 PROFILE NO PGA 100-5000 ENTRIES, AIR/MOST OCEAN BROKER APPROACH Will Price Competitively Parts Lists Accuracy and Time Efficiency Template ISF and Entry Lanes Manage Invoice/Line Items Easiest to Automate Pay Duties, Exam/Port fees IMPORTER Establish ACH PUN, PMS Create/Control Parts List Control Invoice/Line Item data Easiest to Automate Leverage Brokerage Pricing Filing Options Self-File Hybrid File
- 19. 19 IMPORTER 2 PROFILE NO PGA 100-5000 ENTRIES, AIR/OCEAN/N. Border BROKER APPROACH Will Price Competitively Parts Lists Accuracy and Time Efficiency Template ISF and Entry Lanes Manage Invoice/Line Items Pay Duties, Exam/Port fees IMPORTER Establish ACH PUN, PMS Create/Control Parts List Control Invoice/Line Item data Leverage Brokerage Pricing Filing Options Self-File Hybrid File
- 20. 20 IMPORTER 3 PROFILE PGA 100-2000 ENTRIES, AIR/MOST OCEAN BROKER APPROACH Can Price Competitively Parts Lists Include PGA data Table or Spreadsheet PGA Data Template ISF and Entry Lanes Automate System above 800 Entries Pay Duties, Exam/Port fees IMPORTER Establish ACH PUN, PMS Create/Control Parts List Understand and Include PGA data Leverage Brokerage Pricing Filing Options Self-File Automate Self-Filing, Hybrid File Hybrid File
- 21. 21 IMPORTER 4 PROFILE PGA 2000+ ENTRIES, AIR/MOST OCEAN BROKER APPROACH Less Pressure to Price Competitively Parts Lists Include PGA data Table or Spreadsheet PGA Data Template ISF and Entry Lanes Automate System Creates Huge Cost Savings Pay Duties, Exam/Port fees IMPORTER Establish ACH PUN, PMS Create/Control Parts List Understand and Include PGA data Leverage Brokerage Pricing Filing Options Self-File Automate Self-Filing, Hybrid File Hybrid File
- 22. 22 IMPORTER 5 PROFILE PGA 100-5000+ ENTRIES, AIR/ OCEAN/N. Border BROKER APPROACH Less Pressure to Price Competitively Parts Lists Include PGA data Table or Spreadsheet PGA Data Template ISF and Entry Lanes Automate System Creates Huge Cost Savings Pay Duties, Exam/Port fees IMPORTER Establish ACH PUN, PMS Create/Control Parts List Understand and Include PGA data Leverage Brokerage Pricing Filing Options Self-File Automate Self-Filing, Hybrid File Hybrid File
- 23. 23 THE ROAD AHEAD Common Themes and Best Practices
- 24. 24 THE ROAD AHEAD Common Themes and Best Practices MAIN POINTS to control import data PARTS LIST Individual Part Numbers Associate Number to HTS, CO, MID, PGA, FTA, GSP PGA DOCUMENTATION Add to Parts List Template or Spreadsheet PGA Documentation Immediate updating as new Suppliers are Added INVOICES, LINE ITEMS Purchase Orders Implement a Standardized Invoice Part Numbers for all Invoices/Line Items DUTIES, TAXES, EXAM/PORT FEES Establish your own ACH PUN Apply for PMS Easy to get Broker to Pay
- 25. 25 THE ROAD AHEAD Common Themes and Best Practices TAKE CONTROL WHERE YOU CAN LEVERAGE BROKERAGE PRICING EXPLORE AND UTILIZE SELF OR HYBRID FILING Self-File ISF/Entry Outsource Entry Self-File Some Entries Outsource Complex Lanes Automate ISF/Entry Data to Self-File Automate ISF/Entry Data to Full Service Broker
- 26. 26 THE ROAD AHEAD Common Themes and Best Practices CUSTOMS COMPLIANCE, EXAMS, FINES/PENALTIES IMPORTER SECURITY FILING Control at the Port Level 6 Month Compliance Tail 2O Hold, No ISF on File if within port limits Still very manual to have hold removed Reduce your Customs Demerits To Date, very few fines Customs Does Not See your Data Screen EXAMS CBP moving back toward Enforcement Expect Higher level of Exams FINES PENALTIES, ADD/CVD ADD/CVD Cases Cold Rolled Steel, Aluminum, Wheels CF 28 Same CF 29 Same
- 27. 27 THE ROAD AHEAD Common Themes and Best Practices EMBRACE THE SINGLE WINDOW ROLLOUT WILL CONTINUE TO HAVE BUMPS BUGS WILL CONTINUE TO OCCUR AGENCIES WILL CONTINUE TO BE ADDED
- 28. 28
- 29. info@3rdwave.co3rdwave.co+1 (416) 510-8800 29 Managing Customs & PGAs A Total Perspective for Importers Gregg Cummings, gregg@strixsmart.com Edward (Ned) Blinick Chief Product Officer eblinick@3rdwve.co