SUPPLY CHAIN COMPLIANCE: WHAT TO EXPECT IN 2016
NEW REGULATIONS IMPACTING SUPPLY CHAINS IN 2016
Regulations are a necessary, but often annoying, aspect of supply chain management that all businesses have to manage. However, keeping up with regulations and compliance requirements is becoming increasingly difficult as government agencies around the world continue to make changes.
Modernization, transparency, safety, and security fuel most regulations. Most regulatory agencies are driving the transition from paper-based processes to digital systems to encourage international trade.
Not only do digital systems make the supply chain more efficient, but they help tremendously with transparency and security. However, the goals of efficiency and security often conflict with each other because tighter security measures tend to slow things down – especially around nation borders. Regulatory agencies are under increased pressure to strike a balance.
In this article, you will get a quick overview of several key regulatory changes in 2016 that affect your compliance. We’ve selected the regulations that will have the biggest impact on the logistics industry and supply chains in general.
AUTOMATED COMMERCIAL ENVIRONMENT (ACE) SYSTEM
U.S. Customs and Border Protection (CBP) have worked diligently for years to build this system. The goal is to have one portal that collects and transmits data on all imported goods. By using one digital system, ideally, imported goods will get to the commercial stream quicker, with less paperwork and manual labor.
Importers can already file shipping documents electronically within ACE, but they must still file some documents in the older Automated Commercial System (ACS). Several deadlines will roll out in 2016 requiring industries to switch from ACS to ACE:
- March 31, 2016: Data required for the National Highway Transportation Safety Administration (NHTSA) and under the USDA Lacey Act needs to be filed in ACE.
- May 28, 2016: Several electronic entries will switch to ACE.
- July-August 2016: The Centers for Disease Control, the Drug Enforcement Administration, and the Fish and Wildlife Service will provide functionality for companies to file information via ACE. (Exact dates haven’t been announced, as of April 2016.)
- October 2016: All remaining electronic portions of the CBP cargo process will be mandatory to file through ACE.
- December 31, 2016: All agencies and functionalities will be completely ACE compliant.
You can learn more about ACE here.
AMENDMENTS TO THE SAFETY OF LIFE AT SEA (SOLAS) CONVENTION BY THE INTERNATIONAL MARITIME ORGANIZATION’S (IMO)
As of July 1, 2016, containers being loaded onto a ship for export are required to include a verified weight, thanks to amendments to the SOLAS Convention.
Shippers already provide the container weight to carriers, but the problem is that information isn’t usually accurate. Ship accidents have occurred as a result, and after further investigation, inaccurate cargo weight has been found to be a factor.
Another problem that arises is when a container is much heavier than the shipper predicted and the terminal doesn’t have the right equipment in place to handle it. Stacks of containers have collapsed on themselves as a result.
The SOLAS amendment aims to eliminate these discrepancies. To ensure the shipping companies verify weight accurately, either they can weigh the loaded container, or they can weigh the container and contents separately and add the two together.
TRADE FACILITATION AND TRADE ENFORCEMENT ACT OF 2015 (CUSTOMS REAUTHORIZATION BILL)
Originally signed into law in February 2016, the Trade Facilitation and Trade Enforcement Act of 2015 is expected to have a significant impact over the next several years.
Upcoming changes include:
- Simplification of duty drawback and an expanded timeline for duty drawback from three years to five.
- Streamlining the investigative procedures used in anti-dumping and countervailing duties cases, while expanding the penalties.
As of April 2016, specific timelines for implementation are unavailable. However, Customs is expected to roll out the provisions over the next few years.
You can learn more about this new law here.
Are you struggling with compliance issues in your supply chain? Not sure how to become EDI compliant? We can help!
BOLD VAN offers a variety of EDI solutions. From cloud-based to full EDI system implementation, we’ve got the right solution for you. Speak to an EDI Solutions Specialist today 844-265-3777.
Tags : Supply Chain
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