By Catherine J. Petersen email
| bio
Many U.S. exporters continue to use the paper
version of the Shipper’s Export Declaration (SED). Some
use it as their primary method of filing, and others use it
as a Shipper’s Letter of Instruction (SLI).
In either case, it is now time to obtain the
newest version of the paper form before October 18, 2003, from
the U.S.
Census Bureau’s website.
As an SLI, the exporter uses the SED format
to provide the freight forwarder with an informal power of attorney
to act as their freight forwarder along with information about
their firm and the products being shipped.
The forwarder then completes the form by adding
final shipping details including information about the vessel,
airline, ports, equipment, and the departure date prior to submitting
it as a paper SED. In most cases the forwarder will not file
the paper SED; they will file the information electronically
through the Automated
Export System.
The new SED includes two changes from the current
version of the form:
-
It asks the person preparing
the SED to identify the forwarding agent’s EIN (IRS)
number in field 5b.
-
It adds a revised confidentiality
statement in field 30: “Confidential – Shipper’s
Export Declarations (or any successor document) wherever located,
shall be exempt from public disclosure unless the Secretary
determines that such exemption would be contrary to the national
interest (Title 13, Chapter 9, Section 301 (g)).” This
statement allows the Secretary of Commerce to disclose details
about the shipment in the event that the SED is required to
uphold laws/ regulations pertaining to exportation.
Shifting From the SED to AES
The new paper SED has a limited shelf life,
according to news releases issued by Census. Officials expect
the new SED will expire sometime in 2004, probably towards the
end of the year. At that point, the paper SED will go away and
exporters will be required to file the information electronically
through AES.
The final date of mandatory use of AES depends
on:
Exporters with products on the Commerce Department’s
Commerce Control List (CCL) or the U.S. Munitions List (USML)
are required to file their SED information electronically through
AES beginning October 18, 2003.
Initially, there had also been some discussions
by the Census Bureau of including a new AES Certification test
for exporters. This proposal was discussed publicly in Minnesota
at a May 2003 Midwest
Global Trade Association meeting. Since that time, however,
Census seems to have put this new requirement on hold.
According to the Census Bureau, they are moving
to eliminate the paper SED and mandate the use of AES in order
to provide more accurate statistics and increase homeland security
and security on board planes and vessels.
Census will likely be influenced by input from
exporters and trade associations as it redesigns AES. The American
Association of Exporters and Importers (AAEI) is one of
several large national trade groups that is providing input
on AES.
To submit comments and input about the
shift towards AES, you can submit your comments directly to
Census at askaes@census.gov.
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To satisfy the new export requirements that take
effect October 18, 2003 (see article above),
Shipping Solutions users will need to update their software to
get the new paper version of the Shipper's Export Declaration
(SED).
Shipping Solutions Professional Users can log
onto the Annual
Maintenance Program website and download and install the new
update free of charge. Shipping Solutions Classic version 6.0
users will be receiving the update by email this week, also at
no charge.
Companies that are still using an older version
of Shipping Solutions such as Shipping Solutions 2000, Shipping
Solutions Classic version 4.x or Shipping Solutions version 3.x
will need to purchase an upgrade to either of the new versions
of the software in order to get the new paper SED. Both new versions
of Shipping Solutions also add the the option to file the SED
information electronically through the Automated Export System
(AES) that only Shipping Solutions 2000 users previously had.
Shipping Solutions 2000 and Shipping Solutions
Classic version 4.x users can upgrade at special discounted prices.
For more information about upgrading your version of Shipping
Solutions, contact the company at 1-888-890-7447.
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By Susan Senger email
| bio
The FAST program is a bilateral initiative
between the United States and Canada designed to ensure security
and safety while enhancing the economic prosperity of both countries.
In developing this program, Canada and the United States have
agreed to harmonize, to the maximum extent possible, their commercial
processes for clearance of commercial shipments at the border.
This will promote free and secure trade by using common risk-management
principles, supply chain security, industry partnership, and advanced
technology to improve the efficiency of screening and clearing
commercial traffic at our shared border.
FAST is an ambitious program both in
terms of its scope and its implementation date. For the U.S. and
Canada, the initiative’s objectives promise to revolutionize
the processing of transborder trade:
- The program aims to increase the integrity
of supply chain management by offering expedited clearance to
carriers and importers enrolled in Customs Trade Partnership
Against Terrorism (C-TPAT), or Canada’s Partners in Protection
(PIP).
- It’s designed to streamline and to integrate
registration processes for drivers, carriers, and importers.
This should minimize paperwork and ensure that only low-risk
participants are enrolled as members.
- The initiative seeks to expedite clearance
of low-risk transborder shipments by reducing Customs information
requirements, dedicating lanes at major crossings to FAST participants,
using common technology, and physically examining cargo transported
by these low risk clients at the lowest levels possible.
- The program is a catalyst for both Customs
administrations to integrate and enhance technologies—transponders
employed on both sides of the border, for example—which
will make it even easier to clear low risk shipments and which
would mitigate the cost of program participation for FAST partners.
FAST approved highway carriers will
benefit from:
- Dedicated lanes (where available) for greater
speed and efficiency in the clearance of FAST transborder
shipments.
- Reduced number of examinations for continued
compliance with Customs FAST requirements.
- A strong and ongoing partnership with the
Canadian (PIP) and U.S. Customs (C-TPAT) administrations.
- Enhanced supply chain security and safety
while protecting the economic prosperity of both countries.
- The knowledge that they’re carrying
shipments for a C-TPAT approved importer.
- A head start for the upcoming modifications
to FAST that will expand eligible electronic cargo
release methods. The FAST processing of Pre-Arrival
Processing System (PAPS) shipments is expected to commence within
the next year.
The initial phase of FAST for U.S. Bound
commercial shipments, which began in December 2002, will be available
for qualifying commercial shipments at the following U.S./Canadian
ports:
- Blaine - Douglas
- Detroit - Windsor
- Port Huron - Sarnia
- Buffalo - Fort Erie
- Lewiston - Queenston
- Champlain - Lacolle
Qualifications for FAST Participants
FAST is a harmonized clearance process
for known low-risk shipments. Thus, any truck using FAST
lane processing must be a C-TPAT approved carrier, carrying qualifying
goods from a U.S. Customs-Trade Partnership Against Terrorism
(C-TPAT) approved importer, and the driver in the possession of
a valid FAST-Commercial Driver Card.
FAST processing is based upon advanced
electronic transmission of information. The following are the
key components:
- Importer Registration: Importers will complete
separate applications to the Customs administrations in the
United States and Canada. Importers authorized to use the FAST
program for clearance into the United States will have a demonstrated
history of complying with all relevant legislative and regulatory
requirements, and will have made a commitment to security enhancing
business practices as required by C-TPAT.
- Carrier Registration: Carriers will complete
the FAST Highway Carrier Application Process requirements
that include corporate information, a security profile, and
a written Highway Carrier Agreement. In order to qualify for
FAST Highway Carrier membership into the U.S. and Canada,
two separate applications must be submitted to each country's
respective FAST Processing Centers. Each country will
perform an independent risk assessment and each country will
issue independent approvals for participation. For the United
States, a FAST approved carrier will have met all aspects
of C-TPAT through the FAST registration process.
- Commercial Driver Application: Drivers will
complete a single FAST Commercial Driver Application
for the U.S. and Canada. The customs and immigration services
of both countries will assess the risk of all applications.
Applicants identified as low risk will report to an enrollment
center where they will be interviewed, have their original identification
and citizenship documents reviewed, fingerprinted and have a
digital photo taken. Low-risk applicants will then be issued
a FAST – Commercial Driver Card.
FAST enrollment centers can be found
at the following locations:
- Blaine, Washington
- Detroit, Michigan
- Port Huron, Michigan
- Buffalo, New York
- Champlain, New York
Cargo Release Method(s)
The two cargo release methods for FAST
shipments are the National Customs Automated Prototype (NCAP)
and the Pre-Arrival Processing System (PAPS). NCAP/FAST
processing for FAST began in December 2002. The FAST
processing of PAPS shipments is expected to start next year.
- National Customs Automated Prototype (NCAP):
The NCAP pilot, which began in 1998, is a prototype demonstrating
Automated Commercial Environment (ACE) functionality. NCAP is
being tested at three U.S. border crossings. It enables inspectors
at three busy locations in Michigan and Texas to quickly release
the cargo of highly compliant importers.
- Pre Arrival Processing System (PAPS): The
Pre-Arrival Processing System (PAPS) is a U.S. Customs ACS (Automated
Commercial System) border cargo release mechanism that utilizes
barcode technology to expedite the release of commercial shipments
while still processing each shipment through Border Cargo Selectivity
(BCS) and the Automated Targeting System (ATS).
Each PAPS shipment requires a unique barcode
label, which the carrier attaches to the invoice and the truck
manifest while the merchandise is still in Canada. The barcode
consists of the Standard Carrier Alpha Code (SCAC) and Pro-Bill
number. This information is then faxed ahead to the Customs broker
in the U.S., who prepares a BCS entry in ACS. Upon the truck's
arrival at the border, the Customs Inspector scans the barcode,
which automatically retrieves the entry information from ACS.
If no examination is required, the Inspector then releases the
truck from the primary booth, reducing the carrier's wait time
and easing congestion at the U.S. border.
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