Importer SelfAssessment Program ISA 1 Importer SelfAssessment ISA

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Importer Self-Assessment Program (ISA) 1

Importer Self-Assessment Program (ISA) 1

Importer Self-Assessment (ISA) ISA is a voluntary trade facilitation partnership program for trade compliant

Importer Self-Assessment (ISA) ISA is a voluntary trade facilitation partnership program for trade compliant companies that want to assume responsibility for managing their own compliance, in exchange for less CBP oversight. 2

ISA Benefits è è è Exemption from Comprehensive Audits Coverage Available for Multiple Business

ISA Benefits è è è Exemption from Comprehensive Audits Coverage Available for Multiple Business Units ISA Consulting Team à Compliance Assistance à Risk Assessment à Data Analysis Trade Data Profile Enhanced Prior Disclosure/Mitigating Factors Enhanced Trade Facilitation 3

ISA – Current Statistics è 197 participants (751 different Importer of Record numbers) è

ISA – Current Statistics è 197 participants (751 different Importer of Record numbers) è ISA participants represent approximately 16% of the total value imported in 2008. è ISA participants were 99. 4% compliant in 2007 4

The ISA Process è Apply (Importer) à Memorandum of Understanding à ISA Questionnaire Responses

The ISA Process è Apply (Importer) à Memorandum of Understanding à ISA Questionnaire Responses à Import Compliance Manual à Self-Testing Plan 5

The ISA Process (cont. ) è Prepare à ISA Team (CBP) à à Importer

The ISA Process (cont. ) è Prepare à ISA Team (CBP) à à Importer à à è Determine Areas for Review Select Walk-Through Entries Provide Agenda to the Importer Prepare Power. Point Slide Presentation Obtain Documentation for Walk-Through Entries (Purchase Order thru Payment) Meet à à 2 -Day, On-Site Visit (aka Application Review Meeting) Presentation from the Importer à à Present Review Areas Using the Five Components of Effective Internal Controls (SAS 78) Provide a Walk-Through of Automated Systems Explain ISA Self-Testing Plan Walk-Through Transactions 6

The ISA Process (cont. ) è Wrap-Up à à à ISA Team Documents the

The ISA Process (cont. ) è Wrap-Up à à à ISA Team Documents the Meeting and Follows-Up with any Questions Internal Report Submitted to a Multi Displinanary CBP Review Board Annual Notification Letter à à Results of the Self-Testing Changes to the Customs Compliance Department and/or Personnel Changes in the Organization (e. g. , Ownership, Acquisitions, Divestures, etc. ) Utilization of Special Programs not Reviewed (e. g. , NAFTA, Drawback, Drop Shipments, etc. ) 7

Hurdles, Sand Traps, Roadblocks, & Pitfalls…Helpful Hints To Keep On Course: è Incomplete ISA

Hurdles, Sand Traps, Roadblocks, & Pitfalls…Helpful Hints To Keep On Course: è Incomplete ISA applications è C-TPAT and ISA applications for different companies è è one ISA application, when many and/or all of the IR #s pertained to divisions with differing procedures Using ISA as an FA escape route, rather than applying for ISA proactively Including multiple IR #s on è Internal Controls unwritten and/or lack documentary support è Companies with previously 8 unresolved issues

Hurdles, Sand Traps, Roadblocks, & Pitfalls…Helpful Hints To Keep On Course: è è Allowing

Hurdles, Sand Traps, Roadblocks, & Pitfalls…Helpful Hints To Keep On Course: è è Allowing a consultant/outside counsel to present the company’s controls. Not truly take ownership of the CBP compliance function and overly relying on the broker to handle CBP compliance matters. Not responding timely to ISA team’s requests for Post-ARM support documentation requests No post entry review or other testing done throughout the year. 9

Best Practices – Internal Controls è Management Commitment è Establish Compliance Goals è Develop

Best Practices – Internal Controls è Management Commitment è Establish Compliance Goals è Develop Formal Policies & Procedures è Establish Training Programs è Conduct Internal Control Reviews 10

Best Practices – Internal Controls è Create a CBP Compliance Group è Access to

Best Practices – Internal Controls è Create a CBP Compliance Group è Access to Executives for Needed Resources è Develop Compliance Requirements for Suppliers è Establish a Record Keeping Program è Partner with Customs & Border Protection 11

CBP Contact Information èRichard èAlbert Wallio, Chief, Partnership Programs (202) 863 -6508 Queen, Trade

CBP Contact Information èRichard èAlbert Wallio, Chief, Partnership Programs (202) 863 -6508 Queen, Trade Liaison, Partnership Programs (202) 863 -6071 èAnita Harris, Trade Liaison, Partnership Programs (202) 863 -6069 èLeon Sample, Field Director, Regulatory Audit Division (859) 331 -9020 ext. 101 èJeannie Maher, Senior Auditor, Regulatory Audit Division (859) 331 -9020 ext. 112 èBrent Rose, Senior Auditor, Regulatory Audit Division (859)331 -9020 ext. 126 Customs Web-site: http: //www. cbp. gov/xp/cgov/trade_programs/trade_compliance/importer _self_assessment/ 12