Harmonized Tariff Codes have long been used to define and classify goods and materials being imported or exported around the world, but the United States Customs and Border Patrol have instituted a new set of data that are required for certain imports into America. In addition to the HTS classification, importers must also provide the U.S. CBP with advanced notification for all high risk materials that are being shipped into the country. The 10 2 Customs codes include ten data elements during the importer security filing and another two data elements from the vessel operating ocean carriers, which must be filed at least 24 hours before the vessel’s departure.
Many importers feared the logistics of implementing the 10 2 Customs requirements, which is why the Customs and Border Patrol decided to set up a one-year period of “informed compliance” that is meant to help importers and carriers adapt to the new regulations. Not only did the CBP announce leniency on fines for the first year; they also added flexibility for four of the ten Importer Security Filing elements regarding the interpretation of certain data. This includes the manufacturer’s name and address, the ship-to party, the country of origin and the commodity HTSUS number.
It may seem that international trade is complex enough considering the Harmonized Tariff Codes that must be deciphered, and that this 10 + 2 Rule just makes things harder. But since importers are allowed to provide a range of acceptable responses based on facts available at the time in lieu of a single specific response in their initial filing, the transition to this new system was made a bit easier. Importers will, however, be required to update their filings as soon as they have a more precise or more accurate set of information available to them. This makes it simpler to meet all the HTS classification requirements and 10 + 2 requirements without incurring fines.
In addition to the added leniency in responses and data interpretation, the CBP also provided some flexibility in terms of timing during the year-long transitional period. The container stuffing location and consolidator must have this data on file no more than 24 hours prior to the shipment’s arrival in the United States. This transitional phase ends on January 1, 2010.
