Managing Trade Compliance in a State of Accelerated Flux

+1 (416) 510-8800

Webinar

Chief Product OfficerEdward (Ned) Blinick

Managing Trade Compliance in a State of Accelerated Flux

Presented by: Dana Smalley - President

+1 (416) 510-8800 3RDWAVE.CO [email protected]

Dana M. Smalley Dana is a President at Partners In Trade Compliance (PITC), which was founded in 2011. Throughout her career, Dana has had oversight for both trade compliance programs within industry, as well as served as a consultant. Dana’s experience in automated solutions, encompasses several solutions, with most recently Oracle GTM Solution on both the industry side as well as the consulting role. She has 23+ years of trade compliance experience, 8 of which were spent in the Telecommunications industry. Dana’s experience covers a broad mix of both Import and Export process support for dual-use and defense commodities.

While still a GTM practitioner, Dana successfully developed and rolled out comprehensive trade compliance programs with a global footprint in 100+ locations in more than 50 countries.

Dana has been a strategic participant in the implementation of several global trade automation solutions, including Oracle GTM, SAP GTS, and Livingston TSE (Vastera).

mailto:[email protected]




Contents❖Safe Harbor Statement

❖Global Trade Responsibility and Ownership

❖Automation Today

❖ACE Portal Changes

❖ACE Account Best Practices

❖Pros and Cons of Automation

❖Closing



Safe Harbor Statement

This presentation includes publically available data, opinions, estimates or other information that might be considered forward-

looking. While the statements enclosed represent current judgment on what the legal obligations currently are as of the date of this presentation, you are encouraged to independently review all material provided herein. The content is subject to risks and uncertainties that could cause actual results to differ

materially.



Global Trade Responsibility and Ownership



Global Trade Responsibility and Ownership Who owns the responsibility to the regulatory compliance?

- All parties to the transaction….All of them!

No one is immune to responsibility.

When engaging in business, both domestic and foreign, everyone has responsibilities to business and trade regulations.

• Importer • Exporter • Shipper • Consignee • Intermediate Consignee • Seller

• Buyer • Carrier • Customs Broker • Freight Forwarder • Bank / Finance Company/s • Government Officials



Global Trade Responsibility and Ownership What functions of international business need to be managed?

- All of them!

Import Entry

Registration Mgmt.

Classification Mgmt.

Valuation

Export License DeterminationLetter of Credit Mgmt.

Free Trade Agreement Qualification and Utilization

Incoterms

Export Filing

Country of Origin

Export License

Restricted Party

Screening

Duty Drawback

Deemed Export Screening

Post Entry Corrections

Technology TransfersCVD / ADD

Foreign Trade Zone

Mgmt.

Record Retention

Gov’t Reporting

Anti-Dumping

Value Added Tax

Quota / Visa

Embargos

OGA / PGA

Documentation Generation

Audit Trail and Accountability

Regardless of who files your entries, your responsibility remains the same! Regulatory Responsibility Examples: US Customs Mod Act, 15 CFR 30.3, 15 CFR 732 & 736, Supliment 2 to Part 736, 19 CFR, etc.



Global Trade Responsibility and Ownership Example of Regulatory Language: 15 CFR Part 736 & 19 CFR Part 163



Global Trade Responsibility and Ownership Management of global trade operations can be a monumental task

- Ignorance is not an excuse!

Which one are you? Self Blinding Overwhelmed Successful



Global Trade Responsibility and Ownership How can a responsible party manage all of their obligations?

- Evolution has provided much better methods for processing & management of global trade responsibilities



Automation Today



Automation Today Automation solutions exist for both US Government and Industry



Automation Today Industry has multiple automated solutions which can be leverage today

– Not an all inclusive list

Industry Solution Options



Question❖ Does your global trade data match with the government submitted trade filings?

Broker 1

Broker 2

Broker 3

US ACE Portal

Your Global Trade Compliance Solution

Manual or Automated

Export Filer

1

Export Filer

2

Export Filer

3

Data Matches?



ACE Portal Changes



ACE Portal Changes - Evolution

https://www.whitehouse.gov/the-press-office/2014/02/19/executive-order-streamlining-exportimport-process-america-s-businesses





ACE Basic ViewTrade Community ACE Access Options

ACE

EDI Interface (In)

Filer Direct in

ACE

Post Filing Data Review

EDI Interface (Out)

User DirectAutomation

Solution

PGA / OGA



ACE Portal Changes Key ACE Enhancements: List is not all inclusive of ACE enhancements 1. US Export filing (a.k.a. EEI or AES)

a. Direct filing within the ACE portal b. EDI capabilities for data feeds into and out of the ACE database

2. Export Reporting (Filer transactions, USPPI transactions or USPPI agent filed routed transactions) 3. Import Entry Filing (of key import entry types – list on slide 20) 4. Import Security Filing (ISF) or a.k.a. “10+2” 5. Partner Government Agencies (PGA) filing and processing:

a. Lacey b. Food & Drug Administration (FDA) c. National Highway Traffic Safety Administration (NHTSA) d. National Marine Fisheries Service (NMFS)

6. Document Image System (DIS)



ACE System Stability Viewing Stability Status You can view the current stability of the new features of ACE on the ACE Dashboard:

https://acedashboard.cbp.dhs.gov/


https://acedashboard.cbp.dhs.gov/


ACE Portal Mandatory Filings Within the ACE portal today, there are noted mandatory filings which much be completed via ACE. They are as follows:▪ Electronic Import Manifests (all modes of

transportation) ▪ US Import Entry Types:

• 01 - Consumption • 02 - Consumption Quota/Visa • 03 - Consumption - Antidumping/

Countervailing Duty • 06 - Consumption - Foreign Trade Zone (FTZ) • 07 - Consumption Antidumping/Countervailing

Duty and Quota/Visa Combination • 11 - Informal • 12 - Informal Quota/Visa (other than textiles) • 21 – Warehouse • 22 – Re-warehouse

US Import Entry Types Cont.: • 23 - Temporary Importation Bond (TIB) • 31 - Warehouse Withdrawal Consumption • 32 - Warehouse Withdrawal Quota • 34 - Warehouse Withdrawal - Antidumping/

Countervailing Duty • 38 - Warehouse Withdrawal Antidumping/

Countervailing Duty and Quota/Visa Combination

• 51 - Defense Contract Administration Service Region (DCASR)

• 52 - Government – Dutiable • Exports • Protests • PGA (Lacey, FDA, NHTSA & NMFS)



ACE Portal Changes To Come The January 14, 2017 deployment of post release capabilities are postponed, including: ▪ Liquidation (with the exception of the electronic posting of the Notices of Liquidation on

CBP.gov) ▪ Drawback ▪ Reconciliation ▪ Duty deferral ▪ Collections ▪ Statements and ▪ Automated Surety Interface

Pursuant to the Final Rule published on December 12, 2016, CBP will post the Notices of Liquidation on CBP.gov effective January 14, 2017 as planned.

CBP will provide updated information and a new deployment date in the near future.

https://www.cbp.gov/trade/automated





ACE Portal Changes To Come The following US import entry types are not yet available to be filed via ACE and must be filed via paper (non-ABI) at the local port of entry.

• 04 - Appraisement • 05 - Vessel - Repair • 24 - Trade Fair • 25 - Permanent Exhibition • 26 - Warehouse - Foreign Trade Zone (FTZ) Admission • 33 - Aircraft and Vessel Supply (For Immediate Exportation)



ACE Portal Evolution ACE has evolved from a import post entry visibility tool, to active government filing and release of freight for multiple government agencies

Perspective Have respect for the epic feat to accomplish the solution modifications to support the Executive

Order

Perception Take a look at the big picture. This was no small feat to accomplish

Patience Be patient with both the government agencies and trade community. We are all in this together for

the better.



ACE Account Best Practices



ACE Account Best Practices Getting The Most From The ACE System

❖Ensure you perform a regular review of your trade activity, and make any necessary updates to your ACE account. ✓ Cross check brokerage reports vs. ACE activity vs. company records (i.e. new company

activity). ✓ The Trade Account Owner (TAO) has responsibility (not the US Government) to ensure you

have your ACE account created and/or updated.

❖If you have an existing ACE import account, ensure all of your businesses and locations are also registered for exporter visibility. ✓ This does not take place by default because you have an existing account ✓ Do not make a registration decision based on import activity. The two activities are distinctly

different. Any entity can be an exporter of record or USPPI ✓ List all of your address locations for “exporter” to ensure full trade visibility



ACE Account Best Practices Account Health Check

❖Check your account on a regular basis to ensure: ✓Accurate authorized users (i.e. change in staff or roles and responsibilities) ✓User access (correct granting of visibility and privileges) ✓EINs registration and visibility • Once an EIN is added to the primary account, you must manually add it to the shared

account holders to grant visibility



ACE Account Best Practices Reporting

Important key point about visibility:

❖User should obtain the report data dictionary to understand the report data you’re pulling

❖Exports ▪ Legacy data is immediately available for the export reports for the last five years plus the

current year

❖Import ▪ Reports in ACE will only reflect data from the date the EINs was added to your account.



Pros and Cons of Automation



Pros and Cons of Automation

Pros • Gained efficiencies / optimizations • Risk avoidance / reduction • Global visibility • Accuracy • Cost reduction • Opportunity for growth • Ability to best steer your future as regulatory compliance continues to

evolve

Cons • Implementation costs • Lack of in-house expertise • Understanding what the data is telling you

Challenges • Clean & consistent data / data integrity (company name & addresses) • Missing data (classifications, values, descriptions, etc.) • Executive management support



Closing



Closing

Questions:

▪ What are your business and operational goals for automation?

▪ Have you identified “nice to have” vs. “must have”?

▪ Are your automation goals realistic?

▪ Do you have the global data visibility needed to manage your responsibilities and mitigate your risk?

▪ Do you perform self-assessments and internal audits?

▪ Can automation help resolve challenges, risk and trade compliance gaps?

▪ Who are your key automation stakeholders?

▪ Where do you see your business in five years from now?

“Change is inevitable, progress is optional.” - Tony Robbins



Question

▪Is this you?



Thank You


+1 (416) 510-8800


Webinar

Managing Trade Compliance in a State of Accelerated Flux

Presented by: Dana Smalley - PresidentNed BlinickChief Product Officer Blinco Systems Inc. (416) 510-8800 ext. 234 www.3rdwave.co [email protected]

(941) 468-1384 www.pitc2011.com [email protected]



http://www.pitc2011.com/


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Managing Trade Compliance in a State of Accelerated Flux