New rules for imports will save supply chain costs

CIO - The government is going to help make your supply chain more efficient. Now stifle that laugh. U.S. Customs regulations proposed in August require data about imports to be reported to the Customs agency 24 hours before the goods are loaded on any ship bound for the U.S. That means you and your supply chain partners will have to share more information online. And it will save you money.

Getting shipping manifest data electronically is the best way for shippers, which have to file the manifests with Customs, to get the real-time information they'll need to comply with the rules. But according to Cindy Stoddard, vice president and CIO of Oakland, Calif.-based logistics company American President Lines (APL), most cargo data still comes in from buyers or their import agents on paper. APL has to key the data into its systems before it sends the information to Customs. Customs uses the manifests to decide which ships get inspected. If the manifest doesn't show up until the ship does, the shipper -- and whoever bought the goods -- has to wait until Customs gives the OK to unload. Almost half of the $1.2 trillion worth of goods U.S. companies import annually arrive by ship. Purdue University economist David Hummels finds that a day of delay on the docks for any reason costs the United States nearly 1% of the value of the goods being shipped -- $8,000 for every $1 million worth.

New homeland security measures demand that Customs screen more cargo for illegal weapons or dangerous chemicals. By getting the manifests before ships leave port, inspectors can identify risky shipments before they arrive. They won't have to hold up shipments that aren't suspicious while they check everyone's documents, said Customs Commissioner Robert Bonner in a speech last summer. At press time, Customs was reviewing comments about the proposed rules, and officials couldn't predict when they would be finalized.