This letter is JAMA’s response to Docket No. USCBP-2007-0077, Notice of Proposed Rulemaking by the U.S. Bureau of Customs and Border Protection for new Importer Security Filing and Additional Carrier Requirements, know as “the 10 + 2 rule.”

JAMA member companies fully support the enhancement of port security and other efforts taken by the U.S. government to thwart potential acts of terrorism. They also believe that greater port security must be compatible with efficient international logistical operations for goods distribution. JAMA therefore urges that the terms of the proposed 10+2 rule ultimately be defined with full consideration given to the actual conditions under which such international logistical operations are carried out.

The full text of the letter follows. A PDF file of a scan of the actual letter [860KB] is available. Click here to view the file (right-click to download).

March 17, 2008

Submitted via Regulations.qov
Border Security Regulations Branch
Office of Intemational Trade
U.S. Customs and Border Protection
1300 Pennsylvania Avenue, NW (Mint Annex)
Washington, D.C. 20229

Docket No. USCBP-2007-0077

Re: Importer Security Filing and Additional Carrier Requirements: Comments on Notice of Proposed Rulemaking

Dear Sir or Madam:

In response to the request by Customs and Border Protection (“CBP”) for public comment on the Notice of Proposed Rulemaking for Importer Security Filing and Additional Carrier Requirements (“the 10+2 rule”) (73 Fed. Reg. 90 (Jan. 2, 2008)), I respectfully submit the following comments of the Japan Automobile Manufacturers Association (“JAMA”).

Background
JAMA is a Tokyo-based, nonprofit industry association that represents Japan’s 14 manufacturers of passenger cars, trucks, buses and motorcycles. JAMA’s member companies are Daihatsu Motor Co., Ltd.; Fuji Heavy Industries Ltd.; Hino Motors, Ltd.; Honda Motor Co., Ltd.; Isuzu Motors Limited; Kawasaki Heavy Industries, Ltd.; Mazda Motor Corporation; Mitsubishi Motors Corporation; Mitsubishi Fuso Truck & Bus Corporation; Nissan Motor Co., Ltd.; Nissan Diesel Motor Co., Ltd.; Suzuki Motor Corporation; Toyota Motor Corporation; and Yamaha Motor Co., Ltd.. These companies invest as well as produce and sell automotive products in the United States and are inextricably linked to the U.S. economy.

Preamble
JAMA member companies fully support the enhancement of port security and other efforts taken by the U.S. government to thwart potential acts of terrorism. They also believe that greater port security must be compatible with efficient international logistical operations for goods distribution. JAMA therefore urges that the terms of the proposed 10+2 rule ultimately be defined with full consideration given to the actual conditions under which such international logistical operations are carried out.

JAMA Reguests Concerning PART 149–IMPORTER SECURITY FILING
(1) Data Submission Procedure
JAMA member companies make frequent shipments of the same kinds of goods–mostly automotive components and service parts–on vessels bound for U.S. ports. The proposed 10+2 rule establishes that the Importer Security Filings to be transmitted to CBP contain ten data elements. For JAMA member companies, most of these elements will remain unchanged for each shipment but some, for example Element 9 (country of origin) and Element 10 (commodity HTSUS number), will vary. Compiling and transmitting this information to CBP for every single shipment that a JAMA member company makes represents a time-consuming and costly procedure. We therefore respectfully request that CBP consider authorizing an alternative data submission procedure to that mandated by the proposed 10+2 rule, which would take into account the situation of our member companies whose frequent U.S.-bound cargo shipments vary little in content.

(2) Data Submission Timing [§149.2, (b) Time of transmission.]
The 10+2 rule, like the 24-hour rule currently in effect, requires the ten data elements to be transmitted to CBP by no later than 24 hours prior to the loading of the U.S.-bound cargo aboard the vessel concerned at the foreign port. Our member companies’ experience with the 24-hour rule has proved (1) costly because of the lead times imposed by compliance (a minimum of two days longer than for shipments to other countries), with the cost ultimately being passed on to the American consumer, and (2) disruptive because the 24-hour rule is not compatible with actual cargo delivery and loading schedules. We therefore respectfully request that the “no later than 24 hours prior to loading” requirement be changed to “no later than 24 hours before arrival.”

(3) HTSUS Number [§A149.3, (a) (10) Commodity HTSUS number.]
Interpretations of the HTSUS codes appear to vary, and there have been cases where different codes have been designated for the same article. We believe that a harmonization of various countries’ classification practices would be extremely useful. In the absence of such harmonization, we respectfully request that CBP clarify that shipments will not be delayed based on differences with regard to tariff classification.

Extending Benefits to Frequent Importers
In cases where importers are participants in C-TPAT or where shippers are certified Authorized Economic Operators (AEOs), we believe that the proposed 10+2 rule should provide for the extension of some type of benefit to these operators to ensure that they experience no adverse impact in terms of lead time. For example, participants in the program could be exempted from the country of origin and HTSUS code reporting requirement for every shipment and permitted the flexibility requested above regarding the timing of the submission of the required data elements.

Thank you for considering JAMA’s present submission regarding the proposed 10+2 rule.

Sincerely yours,

William C. Duncan, Ph.D.
General Director, North American Office
Japan Automobile Manufacturers Association, Inc.