The days of Captain Jack Sparrow hijackings are over, but there are new threats at sea.
The Maritime Executive reports, in a October 30th, 2017 article, “Cyberattack: What’s at Stake?”, that vessels and ships have become victims of cyber attacks like malware, phishing, and theft of credentials, among others. These attacks led to financial losses, loss of corporate data and affected the functionality of shipborne systems and IT systems.
Why? The global shipping industry has come of age with more automation, game-changing technologies and the-internet-of-things. But embarking on this voyage has also made it a prime target for unforeseen, invisible, and highly destructive cyber-attacks. As systems get more complex and ships become smarter due to technological advancements, every area of operation is exposed to cyber risks. Read more here.
All in-bonds must be filed electronically.
As a follow up to our eariler blog, November 27th, 2017 is the implementation date for CBP’s updated in-bond regulations. CBP’s mandated electronic filing of all In-bonds for ocean, rail and truck merchandise as well as six-digit HTS.
CBP has issued CSMS #17-000736 to further clarify CBP’s enforcement strategy for these new requirements.
Need help navigating this change? CustomsNow can help you automate the in-bond process. Doing so will provide savings in time and/or money, plus provide valuable visibility to the status. Learn more here.
Please contact us today to learn more and schedule a demo. Tel: 888-669-7501 ext. 1 (sales), or email: email@example.com www.customsnow.com
According to a November 28th, 2017 Business Wire news article, Shopify merchants report 1 Billion in sales in 2017.
“This $1 billion milestone emphatically stakes a flag in the ground for entrepreneurs and small business owners all around the world”, said Tobi Lutke, Founder and CEO, Shopify. “Their global impact was felt through each and every sale to a customer who chose to buy from our unique merchants, and we’re fiercely proud of helping them be successful during a period historically dominated by big box retailers.”
500,000 merchants in 175 countries sold over $1 billion (USD) in gross merchandise volume (GMV) during the Black Friday and Cyber Monday weekend. Interestingly, mobile sales outpaced desktop sales for the third year by more than 10%, with apparel, accessories, and hardware leading the way.
In an evening meeting on November 16, Tesla CEO Elon Musk announced a smack-down to gasoline powered cars and trucks by announcing the prototype of their self-driving truck. This innovative design by the company that pioneered electric cars promises more efficiency, less cost to operate and no exhaust.
Read more about the future of self-driving cars and trucks here.
Customs Brokers… don’t forget!
The submission period for the 2018 CBP Triennial Status Report and fee for all licensed Customs brokers opens Dec. 15, 2017, and runs through Feb. 28, 2018.
The deadline for submitting the 2018 triennial status report and fee is Feb. 28, 2018, at 11:59 p.m. (EST).
Over 14,000 active U.S. Customs brokers can pay electronically through Pay.gov with a credit card, debit card, and digital wallet payments, e.g., PayPal and Amazon Pay. No additional fees are charged for any payments, and receipts are provided electronically. CBP encourages brokers to submit fees electronically via Pay.gov; however, a paper status report and payment may be submitted to the port that originally delivered the license.
Licensed Customs brokers must include an employee list, if applicable, with each status report submitted to CBP in accordance with 19 CFR 111.28(b). In addition, each individually licensed broker must state whether or not he/she still meets the applicable requirements of 19 CFR 111.11 and 111.19 and has not engaged in any conduct that could constitute grounds for suspension or revocation under section 111.53. Broker employee lists and any additional detail can be submitted as a PDF file attachment to the Pay.gov online form.
Click here to learn more about filing options and requirements for the 2018 Triennial submission.
The ability to query a consignee in ACS was shut off with the September 15, 2017 ACE deployment, and CBP is not planning to create this same ability in the new Automated Commercial Environment (ACE). Read on:
In CBP’s legacy system, ACS, there was a way to query a consignee “as a means for filers to obtain a number which may be used as the ultimate consignee number in cargo release and border cargo release processing when the actual consignee number is not immediately available.” The application identifier associated with this query was ‘KN.’
This Consignee Name/Address Query transaction allowed a filer to query ACS’s Importer File by transmitting the name and address for an ultimate consignee of interest and receiving a name and address information plus the consignee identification number.
Most importantly, this functionality also provided the ability to determine if CBP had assigned an identification number to a non-resident importer of record. This feature was a valuable tool for brokers, but no longer.
In a response from the ACE Support Hotline, CBP stated; “U.S. Customs and Border Protection (CBP) is aware of the trade communities concerns related to the discontinuation of the KN application in the Automated Commercial System (ACS). At this time, CBP has decided not to develop or transition the KN application in the Automated Commercial Environment (ACE). To query a Foreign-Based Importer of Record (IOR) number that is already on file with CBP, filers should contact their local or Remote Location Filing (RLF) ports to obtain the CBP-Assigned IOR number.”
This is one update to ACE that seems to run contrary to the tenant of making information more accessible and transparent. Brokers and local CBP port staff will have to take additional, and sometimes manual steps to determine this information.
A follow up to our earlier blog regarding the downtime experienced on ACE on November 14, CBP has released the following formal statement. In it, they discuss the outage, their evaluation of the current downtime procedures, and what steps they are taking to further enhance their procedures. CBP is also working closely with Commercial Operations Advisory Council (COAC) to identify areas of concern, and NCBFAA is seeking feedback from it’s members to assist.
CBP Statement Regarding ACE System Status
November 15, 2017
The ACE system resumed cargo processing at approximately 10:00 p.m. EST last night and continues to process normally. All transactions backlogged in the queue were processed as of approximately 1:00 a.m. EST. Our technicians, in collaboration with IBM technicians, are working around the clock to identify the root cause of the disruption to the ACE database. We do know that this issue and the Aug. 2 outage issue are unrelated.
CBP executive leadership continues to communicate with our ports receiving initial reports that downtime procedures worked as expected. The Office of Field Operations is using this event to perform an evaluation of these procedures by polling the ports to identify issues or deficiencies, as well as best practices, in order to enhance our downtime procedures. In addition, CBP client representatives are continuing to assess impacts to trade. Further, CBP will continue engaging the COAC Outage working group and other trade partners to identify areas of concern surrounding operations and our response to the event.
The ACE outage on November 14th causes concern over current CBP downtime procedures. For a time system errors were preventing users from logging into the ACE Portal screens as well as issues with Trade electronic EDI message processing.
See the original reports CMS#17-000709 , CMS#17-000710, CMS#17-000711
At 22:05 on November 14 it was reported that systems were up and functional, and this update was posted.
NCBFAA seeks input from members on any issues related to the downtime and encourages you to report any examples of lack of uniformity between ports during downtime. Please email NCBFA’s Executive Vice President Megan Montgomery at firstname.lastname@example.org with any feedback or suggestions for ways in which NCBFAA can minimize disruptions to your business should future ACE outages occur.
On Wednesday, November 8th, CBP published a General Notice in the Federal Register announcing the transition of Daily and Preliminary Monthly Statements to ACE. “As of December 9th, 2017, ACE will be the sole CBP-authorized EDI system for generating, transmitting and updating daily and monthly statements, and ACE will no longer be a CBP authorized EDI system for such purpose”. The one exception is Reconciliation entries (type 09) which are scheduled to be deployed to ACE on February 24th, 2018.
Also scheduled to transition to ACE on December 9th is the ability to file e214’s, for FTZ admission, and
the creation and maintenance of Manufacturer ID’s (MID.
In addition to Reconciliation entries, the release scheduled for February 24th includes:
• Drawback: Support for core trade processing and
›Automated Surety Interface (ASI)
(Entry Summary Nightly, Entry Summary Quarterly, and Monthly Continuous Bond
• HTS Query
› Drawback Bond Decrementation
› Continuous Bond Sufficiency
No additional ACE deployments are scheduled beyond this release at this time.