Companies that provide freight transportation software to the customs broker, forwarding and non-vessel-operating common carrier industries plan to have ready-for-use applications within their software programs by the time U.S. Customs and Border Protection implements its "10+2" rulemaking this spring.
"We've been watching 10+2 for a long time," said Kevin Gavin, vice president of supply chain management for Midland Park, N.J.-based IES Ltd., in an interview. "We try to be one of the first ones out of the gate."
The proposed 10+2 rulemaking, which was published in the Federal Register on Jan. 2, will require 10 sets of data from importers or their agents 24 hours prior to vessel departure and two sets of data from ocean carriers.
CBP seeks the 10+2 information to enhance targeting of inbound containers for inspections as a means of protecting against terrorist smuggling of weapons of mass destruction for a strike against the United States. The security filing was required by Congress in the 2006 SAFE Port Act. CBP has said it will phase in enforcement of the rule over 12 months following a final regulation. The industry has until March 3 to submit comments on the preliminary regulation.
For the shipping industry's IT firms, 10+2 is essentially a done deal. It's just a matter of when the regulation will become final.
Instead of "taking a reactionary approach," IES views the upcoming regulation as an opportunity to decrease costs and overall cycle-time while at the same time reducing errors and keystrokes within supply chain management.
Gavin said IES's existing customer base will automatically receive the 10+2 capability, but he also anticipates it as a way for the company to attract new customers.
"It will work. It's an opportunity," Gavin said. "It should be a way (for intermediaries) to make money."
Descartes Systems Group, based in Waterloo, Ontario, said it's enhancing its Global Logistics Network Customs Compliance suite to help customers comply with 10+2. "Our goal is to standardize a set of business processes across a broad community of participants," said Chief Executive Officer Art Mesher in a statement.
East Rutherford, N.J.-based Management Dynamics, another software applications developer for the freight transportation intermediary industry, plans for its 10+2 release in early March, said Annika Helmrich, spokeswoman for the company. — Chris Gillis