Piling On: New Trade Data Requirements

To its credit, customs has watered the rule down somewhat from its original version in response to industry concerns. Full enforcement isn't slated to take effect until 2010, following a year of education, outreach and informed compliance efforts. There's additional flexibility as to when some information can be reported and how accurate it has to be when initially filed.

Even so, the new regulations could be a heavy burden on importers, especially small and medium-sized enterprises that may have a hard time obtaining the required information. Liability for the accuracy and timeliness of the information rests solely on the importer, regardless of whether it uses a customs broker or other intermediary to file it.

Violations can be met with penalties of up to $5,000 and instructions not to load the shipment on board the vessel.

There are a number of steps that affected importers -- and that includes just about all of them -- should take to minimize the effect of the 10 plus 2 rule on their operations:

1) If you're going to have a customs broker or a third-party agent file the required information for you, work with them to ensure your data are accurate and on time and review associated powers of attorney, confidentiality agreements and other written instructions.

2) Educate your supply-chain partners on the new rules and develop an efficient process for collecting the needed information from them.

3) Make sure your internal audit and record-keeping procedures are up-to-date.

Global Business expert Tom Travis is a managing partner of Sandler, Travis & Rosenberg, P.A., a leading international trade and customs law firm. He also serves as the chairman of Sandler & Travis Trade Advisory Services. He is also the author of the Amazon.com bestseller Doing Business Anywhere: The Essential Guide to Going Global.