UGS continuously monitors federal regulations and import shipping requirements because the import regulations are constantly changing both from a security standpoint and from the recent safety issues that have arisen.

Did you know that the CPSC (U.S. Consumer Product Safety Commission) is requiring specific markings on products that are consumer products designed or intended primarily for children 12 years of age or younger? This is not just for toys, it affects any product for children 12 and under.

When does this law go into effect? August 14, 2009.

What does it mean for you? Every product that is manufactured overseas must be marked with some type of permanent marking before being imported to the United States. The markings must include the location of where it was made, the date of production or date-code, and a manufacturing code or factory identification lot number. If this marking is not present, your shipment will be rejected at port of entry and returned to the country of origin which would be very costly and time consuming.

What is the purpose of this import regulation? To provide an ability to identify the location, date of production and lot number so that CPSC can more readily isolate products that may present a safety concern at the port of entry.

What does this mean for you? If you are considering going overseas to have product manufactured, beware of the imitators, stick with the professionals at UGS and we will handle all of the import shipping requirements and we will make sure that you are protected. If you have any questions or comments regarding this subject, we are listening…

Finally, CBP has agreed to issue an interim rule for the Import Security Filing commonly referred to as 10+2, as opposed to a final implementation.  The fact this was issued as an interim rule highlights the fact CBP has taken into consideration many of the trade’s concerns.  The following are the key areas that have been amended from the initial Notice of Proposed Rule Making (NPRM).

1)  CBP will “show restraint in enforcing the the rule for a period of 12 months after the effective date.  The effective date will be 60 days from the date of publication – January 26, 2009.

2)  Two of the twelve elements will subject to flexibility as to the timing of their submission to CBP.  This includes the Container stuffing location and the Consolidator (stuffer) name and address.   The importer must submit these elements as soon as possible and no later than 24 hours prior to arrival in a US port.

3)  Four elements will be subject to flexibility with respect to interpretation.  These elements include the Manufacturer (supplier), Ship-to party, Country of Origin, and HTS number.  CBP will allow a range of acceptable responses based on facts available to the importer at the time, but the elements must still be filed 24 hours prior to loading.  The importer will then be required to update their filing of these elements as soon as accurate information is available and no later than 24 hours prior to arrival at a U.S. port.

4)  The liquidated damage amount for violations has been changed from the value of the cargo to $5,000 per violation.

5)  The requirement for break bulk cargo to be included on vessel stow plans has been eliminated.

6)  Container Status Messages (CSM) are required for empty containers.

7)  The label for the party required to submit the ISF has been changed from “importer” to “ISF importer” meaning the owner, purchaser, consignee, or agent.

8)  Provisions were made to create an Importer Security Filing Bond (19CFR 113.63).

9)  Powers of Attorney must be in English and POA’s as well as letters of revocation must be kept for five years from revocation date.

Basically, CBP has made some changes in response to comments from the trade but many requirements remain unchanged.  The phased-in approach provides importers a chance to work through the challenges without immediate penalties as well as the opportunity to provide additional feedback to CBP.  The next 14 months will be challenging as importers try to ramp up to meet the requirements of another security initiative as they also strive to cut costs and increase efficiency while remaining competitive.

Should you have any questions/concerns related to your freight movement under this new initiative, please feel free to contact us directly.  UGS is working daily with our service providers to ensure we are ready to meet the challenges presented by the implementation of 10+2.

The Consumer Product Safety Improvement Act institutes new import requirements for consumer goods effective November 12, 2008.  This is a direct result of tainted products imported from China, e.g., lead paint in toys, melamine found in various food items, etc.  This Act covers almost all consumer goods including fabric, wearing apparel, toys, jewelry, sporting goods, refrigerators, furniture, hazardous materials and even some pharmaceuticals with child resistant caps.

The new certificates must be self-issued, based on a reasonable testing program, must be issued by two to three participants in the supply chain, must accompany the product, and must be furnished to each distributor and/or retailer of the product.  If no certificate is issued or a false certificate is ascertained, the shipment may be refused admission and destroyed.

UGS currently follows customer directives related to product testing utilizing accredited laboratories and is closely following the directives related to this Act to ensure all laboratories utilized will meet the new accreditation requirements.