Business Intelligence

EDEN, Utah - Sister companies CUSTOMS Info and Global Data Mining LLC (CiGDM) today announced a timeline preparing customers for the data changes that will occur when the WCO reforms the Harmonized System (HS) nomenclature January 1, 2012.

The following conditions have accelerated making the 2012 HS Reform a perfect storm to derail a company's supply chain: (1) total world trade volume has nearly doubled since the last reform in 2007; (2) automation in international trade is far more prevalent; and (3) increased government oversight/regulations. Preparing now for the looming changes can help businesses avoid a slowing of the international purchase-to-delivery supply chain, incorrect tariff classification of goods, incorrect declarations of duties and taxes due, and inaccurate records.

"We are dedicated to providing the education and services needed for companies to effectively manage HS Reform without impacting the supply chain," said Matt Gersper, president and founder of Global Data Mining and co-owner of Customs Info. "Our focus is on simplifying the complex problems our customers face with HS Reforms and this timeline outlines a step-by-step roadmap."

CiGDM's 2012 WCO Reform Timeline:
-HS-6 Screening Services: available now. Used to measure the scope of the changes on businesses. For instant quote email info@gdmllc.com
-Reference table for subscribers to look up WCO changes to the 6-digit HS tariff numbers www.customsinfo.com
-Informational webinar: Thursday, June 30, 2011 from 11:00 a.m. - 11:30 a.m. EDT https://www1.gotomeeting.com/register/257638960
-White Paper: Coming soon
-Best practices article: Coming soon
-Re-Classification Services webinar: Thursday, September 29, 2011 from 11:00 a.m. - 12:00 p.m. EDT, https://www1.gotomeeting.com/register/620008128
-Re-Classification Services: beginning with first country release anticipated late November/early December. Companies can begin ordering services September 29, 2011.
-End of 2011, subscribers can access a 10-digit "look-up" table on www.customsinfo.com. This will allow users to enter a tariff code to find out if the number is being modified for 2012

2012 WCO HS Reform by the Numbers:
204 - Number of amendments
53 - Number of different HS chapters impacted
39 - Number of legal notes impacted
108 - Number of different headings
1266 - Number of unique 10-digit HTSUS numbers changing
175 - Number of sub-headings impacted
329 - Number of sub-headings added
38 - Number of sub-headings changed
152 - Number of countries and territories monitored by CiGDM
6 - Number of services provided by CiGDM: concordance tables, CUSTOMS Info re-classification tool, screening reports, integrated with Classification Desktop(TM), Outsource service, integrated with SAP GTS or Oracle GTM

Supporting Resources:
-CiGDM's 2012 WCO HS Reform updates page: http://www.gdmllc.com/webinars/Default.aspx?webinarId=68
-June 30, 2011 webinar: https://www1.gotomeeting.com/pjoin/257638960/105602199
-September 29, 2011 webinar: https://www1.gotomeeting.com/register/620008128
-WCO website: http://www.wcoomd.org

About CiGDM
CUSTOMS Info (Ci) and its sister company Global Data Mining (GDM) help businesses optimize global trade management (GTM) systems and streamline global trade automation. Ci provides the world's most comprehensive trade data repository delivered via web-based subscription, API web services or as data to populate any GTM or Landed Cost application. Ci is the largest provider of duty and tax content for international e-commerce with hundreds of e-commerce sites utilizing our data to provide accurate landed cost information. Our data and services provide faster deliveries and fewer border delays. GDM helps multi-national companies increase the informational value of trade data and the productivity of global trade staff to reduce operating costs, improve customs compliance, accelerate supply chain speed and maximize the return on investment of this corporate function. Areas of expertise include customs classification research, customs auditing and trade data analytics/business intelligence.
Working in conjunction with GTM applications, Global Data Mining and CUSTOMS Info's strategic partners include SAP, Oracle, MIC, Kewill, Arigo, and others. Please visit http://www.gdmllc.com, http://www.customsinfo.com, on YouTube at CiGDM1, Facebook page CiGDM, and Twitter @Ci_GDM.

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Trade data specialist CUSTOMS Info (Ci) has launched a free application that will allow its users to apply harmonized tariff codes to products and finds corresponding duties and taxes.

Ci offers a trade data repository delivered via Web-based subscription or as data to populate any GTM, e-commerce or landed-cost application.

The free Ci Mobile for iPhone, iPad, and iPod Touch will enable users to create unlimited item classification files, save a picture of an item and save a voice note describing an item, while also allowing users to classify an item for 152 countries and territories and obtain duty and tax information for the item for 150 countries and territories.

The mobile solution allows for international mapping and classification on the fly and will let users view Tariff schedules for 150 countries and territories, view 200,000-plus U.S. CBP rulings and assign them to an item, and e-mail an item and all associated data.

"We wanted our clients to be able to access Ci from anywhere," said Ron Lackey, president of CUSTOMS Info. "This is another way to access our world class trade content - users can now access it on the Web, on the CD and on their iPhone."

Lackey added that the mobile version is free for anyone to use - users do not have to be CUSTOMS Info subscribers. "Simply search the app store from your phone for 'Ci Mobile.' Future versions of Ci Mobile will enable Ci subscribers to sync their Web-based account with their handheld, [and] will include Droid support and a backend database inside of the Web version of CUSTOMS Info, so users can classify in the warehouse and find their data at their desktop."

EDEN, Utah - Feb. 8, 2011 - Sister companies CUSTOMS Info and Global Data Mining LLC (CiGDM) and their strategic partner MK Data Services of Columbia, MD, today announced their upcoming webinar. The companies will provide a full overview of state-of-the-art compliance tools that can effectively protect importers and exporters from regulatory violations and financial risk in an ever-connected and increasingly demanding global economy.

Who: Matt Gersper, president and founder Global Data Mining
Ron Lackey, president CUSTOMS Info
Ken Harris, managing partner, MK Data Services
What: Webinar: "Compliance Best-Practices - Advanced Research Tools Minimizing Risk and Maximize Automation"
When: Wednesday, February 16th from 2 - 3 p.m. EST
Why: Learn trade compliance best-practices and advanced research tools to help multi-national companies optimize Global Trade Management (GTM) systems and streamline global trade automation.
Where: Online - register here:
https://www1.gotomeeting.com/register/501492344

"Success in the 21st century requires sophisticated information chains," said Matt Gersper, president and founder Global Data Mining. "Cross border or international transactions now require up-to-date information accurately describing the transaction from a customs perspective, delivered to the right systems around the world, at the right time. A data failure today causes supply chain interruptions and stalls the movement of goods just as physical supply chain failures have in the past, and the cost-of-disruptions are significant."

"The information we cover is in the public domain - we take it, consolidate it, and make it user friendly," said Ken Harris, managing partner of MK Data Services. "Lackluster information management on federal agency web sites, when referenced by exporters and forwarders, causes an influx of inquiries from clients. The management of incoming export control regulatory changes remains an ongoing challenge."

Supporting Resources
-CUSTOMS Info website: http://www.customsinfo.com
-Global Data Mining website: http://www.gdmllc.com
-MK Data Services website: http://www.mkdataservices.com

About MK Data Services
Over the past twenty years MK Data Services has become one of the worldwide leaders in trade compliance Services and compliance data solutions. The company provides best-in-class technology-focused solutions, world-class customer service and is dedicated to providing unparalleled quality of service.

About CiGDM
CUSTOMS Info (Ci) and its sister company Global Data Mining (GDM) provide enterprise solutions to help businesses optimize global trade management (GTM) systems and streamline global trade automation. Ci provides the world's most comprehensive trade data repository delivered via web-based subscription or as data to populate any GTM or Landed Cost application. GDM helps multi-national companies increase the informational value of trade data and the productivity of global trade staff to reduce operating costs, improve customs compliance, accelerate supply chain speed and maximize the return on investment of this corporate function. Areas of expertise include customs classification research, customs auditing and trade data analytics/business intelligence.

Working in conjunction with GTM applications, Global Data Mining and CUSTOMS Info's strategic partners include SAP, Oracle, MIC, Kewill, Arigo, and others. Please visit http://www.gdmllc.com for more information.

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EDEN, Utah - Feb. 1, 2011 - Supply & Demand Chain Executive magazine, the executive's user manual for successful supply and demand chain transformation, today announced Matt Gersper a Pro to Know in the magazine's 11th annual listing of Pros to Know in the Supply Chain Industry.

Supply & Demand Chain Executive 2011 Provider Pros to Know is a listing of individuals from a software firm or service provider, consultancy or academia who have helped their Supply Chain clients or the Supply Chain community at large prepare to meet the significant challenges in the year ahead.

"Our annual list of Provider Pros to Know highlights the many thought-leaders who are helping to shape the Supply Chain industry and advance Supply Chain as a respected discipline in the enterprise," said Barry Hochfelder, editor of Supply & Demand Chain Executive. "Their efforts in developing the tools, processes and knowledge base necessary for Supply Chain transformation, and in promoting new approaches to supply chain enablement, have earned them a place on this year's Provider Pros listing."

"Supply chain optimization in the 21st century requires sophisticated information chains," said Matt Gersper, founder and president of Global Data Mining and co%u2010owner of CUSTOMS Info (companies together referred to as CiGDM). "Cross border or international transactions require up-to-date information accurately describing the transaction from a customs perspective, delivered at the right time to the right systems around the world. Any data failure will cause supply chain interruptions and stall the movement of goods just as physical supply chain failures have in the past, and the costs of disruptions are significant."

Gersper and CiGDM deliver best-in-class country and business trade data management solutions enabling the company's clients to maximize their return on investment in global trade management applications, produce critical business process improvements, and free literally millions of dollars in unnecessary costs from international transactions.

Supply & Demand Chain Executive, which has created three separate sets of criteria for the Practitioner, Practitioner Team and the Provider Pros to Know, issued a call for Pros to Know nominations in November 2010. Beginning in January, the magazine's editorial selection committee culled through more than 350 submissions to find the applicants that best fit the criteria. Submission information requested included:

Selection Criteria: Provider Pros to Know:

What makes the nominee a "Provider Pro to Know"?
What does the nominee believe to be the key challenges facing his/her customers/clients and their supply chains in the year ahead, and how is the nominee working with them to meet those challenges? Please cite an example (e.g., case study) of the impact that these projects or initiatives are having for those customers.
In the nominee's opinion, how can supply chain, as a function, better align with aligning supply chain a company's broader corporate strategy?

The full listing of the 2011 Pros to Know will be available in the February/March 2011 issue of Supply & Demand Chain Executive magazine and e-book beginning in early March and on the Supply & Demand Chain Executive Web site at SDCExec.com/2011Prostoknow.

About CiGDM
CUSTOMS Info (Ci) and its sister company Global Data Mining (GDM) provide enterprise solutions to help businesses optimize global trade management (GTM) systems and streamline global trade automation. Ci provides the world's most comprehensive trade data repository delivered via web-based subscription or as data to populate any GTM or Landed Cost application. GDM helps multi-national companies increase the informational value of trade data and the productivity of global trade staff to reduce operating costs, improve customs compliance, accelerate supply chain speed and maximize the return on investment of this corporate function. Areas of expertise include customs classification research, customs auditing and trade data analytics/business intelligence.

Working in conjunction with GTM applications, Global Data Mining and CUSTOMS Info's strategic partners include SAP, Oracle, MIC, Kewill, Arigo, and others. Please visit http://www.gdmllc.com for more information.

About Supply & Demand Chain Executive
Supply & Demand Chain Executive is the executive's user manual for successful supply and demand chain transformation, utilizing hard-hitting analysis, viewpoints and unbiased case studies to steer executives and supply management professionals through the complicated, yet critical, world of supply and demand chain enablement to gain competitive advantage. Supply & Demand Chain Executive is a publication of Cygnus Business Media. On the Web at www.SDCExec.com and on smartphones and tablets at www.SDCExec.com/mobile.

By Ron Lackey, president CUSTOMS Info

Importer trade reports based upon Customs and Border Protection's (CBP) ITRAC data have
been available for many years. After laboriously developing, detangling and interpreting the
data, trade professionals can get both a detailed and 10,000 foot view of their company's trade
activity coming into the U.S. While most trade professionals may be aware of this resource, it is
underutilized.

The real value of importer trade reports, while useful for compliance and trade professionals, is
to the business and its ability to drive profits. Executives, buyers, sales teams and those in
other profit-focused organizational roles often find this data even more powerful than trade
compliance professionals.

ITRAC data can be leveraged with other data sets to provide actionable information to
executives and profit-oriented people in the organization. For example, integrating an
organization's ITRAC data with the aggregate (total U.S. Imports) statistical import data creates
a powerful, new view of the company's import activity and its competitive context.

An on-going challenge for trade compliance professionals is getting executive attention and
support. Speeches and webinars by trusted consultants like Beth Peterson from BPE, "Bringing
Compliance into the Boardroom," and Matt Gersper from CiGDM, "Trade Optimization Hits
Mark for CFO's top 2010 Concern's," help by providing education and practical advice.

However, compliance and supply chain personnel continue to struggle for corporate resources
and executive attention.

Here are three reasons procurement, buyers, sales and profit-oriented entities in organizations
should pay attention to this data:
1. How much of a certain commodity is our company responsible for bringing into the
U.S.? Our team helped a client learn they imported 15 percent of total U.S. annual
imports of a certain commodity. In this case pop up sunshades and tents. In other
words, we helped the company understand that they sold 15 of every 100 of these
products that were imported into the US.
Often, in the case of the compliance professional, it ends there. As long as the
tarpaulins, awnings, sunshades and tents were classified correctly, the correct duty paid
and CBP is not knocking on the door, it's a closed case and the compliance professional
moves on to the next product group.
But, if we step across the hall into another silo of the business, where the buyers are
busy negotiating with the vendors and trying to achieve the best price available, the
sunshades data from the example above becomes extremely powerful in the hands of
the purchaser.
As demonstrated in the following scenario, the value of information changes
dramatically based on the business function using it. Trade professionals have access to
business and profit%u2010driving data that can help the company increase its profits.
Consider this exchange:
Buyer: "I really like your, sunshades, but we need another five percent discount in order
to make our price point."
Vendor: "We really appreciate your business, but we just don't have the margin
required to provide that to you. Besides, we sell our products at the same price to all of
our high volume clients, why is your company any different?"
Buyer: "Well in 2007, we sold about eight percent of all sunshades in the U.S. In 2008
we sold about 11 percent of all the sunshades in the U.S. In 2009 we sold about 15
percent of all the sunshades in the U.S. We clearly know how to move this product and
our customers know that we will have these products in stock. At this rate next year,
we could sell one out of every five sunshades in the U.S. We are looking for long-term
relationships with our vendors, and we think our market share and volume make a
powerful argument for vendors that want to work and grow with us."
A five percent discount on $20,000,000 worth of sunshades adds $1,000,000 to the
bottom line or creates a margin that can be offered to clients in increased savings.
2. Where do we compare to our competition in supply chain effectiveness?
It's a common task for trade professionals to review and audit their import transactions
to seek out opportunities to lower duties. It's just as common for trade professionals to
be asked by business executives to review duty rates and look for savings.
What's not a common scene is a trade professional walking into the CFO's office and
saying, "Did you know that we pay a higher percentage in duties on our product than
the country average? So, even before we hit the store shelves we are several points
behind our competition."
Global trade professionals, worried about compliance issues, would surely get more
attention and resources if they could help their company increase profitability.
Executives rarely see this information and cannot act on something of which they are
not aware.
3. Why and how are we paying more than our competition?
Traditionally, and not too surprisingly, information gets shared serendipitously among
people who work in the same silos. It is easy to get an executive's attention while at the
morning coffee pot, for example.

The proverbial hallway is a lot longer for those working in international trade. Trade
professionals rarely if ever have the opportunity to bump into the CFO at the coffee pot.
However, the savings and profit data held by trade professionals could greatly benefit
the bottom line and should be brought to the C-suite's attention. Often, when a client
asks us how they could be importing at such a disadvantage the answer is trade
agreements.

Some clients say, "We are importing from China so that must be the cheapest route?"
Rarely is it that simple. Trade Agreements, changes in economies, currencies, labor
costs in the manufacturing country and overall logistics can change quickly.
More and more importers are seeking to reduce duty spend. During client projects, we
will discover for example that our client's competitors shifted a large percentage of their
t-shirt sourcing from Mexico to Jordan, a country that enjoys a Free Trade Agreement
with the U.S. Changing suppliers is never easy and there are many factors to consider,
but this client now has a key piece of data that shows just switching suppliers could
have a positive impact on the company's bottom line.

Trade professionals have access to critical business data that helps increase profit. With
the right resources and executive attention, more trade professionals could use it to its
full advantage and help create profit for the organization.

Ron Lackey is president of CUSTOMS Info (Ci). Ci and its sister company Global Data
Mining (GDM) provide enterprise solutions to help businesses optimize global trade
management (GTM) systems and streamline global trade automation. Ron can be
reached at rlackey@customsinfo.com.

EDEN, Utah, Oct. 20, 2010 - Sister companies CUSTOMS Info and Global Data Mining LLC (CiGDM), providers of enterprise-wide trade data management and HS classification systems, and Emergys, the Durham, N.C.-based business transformation service provider, today announced their upcoming webinar. The companies will detail how they have joined forces to offer reliable trade content, specialized SaaS applications and business expertise to help global enterprises reach trade management objectives.

The three companies recently announced their reseller agreement: Emergys will resell CUSTOMS Info content by bundling trade content with its SAP GTS services and resell and integrate the GDM Global Trade DesktopTM to provide enhanced classification tools. CiGDM will bundle Emergys services with its content and Desktop applications.

Who: Matt Gersper, president and founder Global Data Mining
Ron Lackey, president CUSTOMS Info
Troy Duncan, director of global trade Emergys
What: Webinar: "Picture Perfect Integration: Go-live on-time, under-budget, and maximize ROI"
When: Wednesday, October 27, 2010 at 2 p.m. until 3 p.m. EDT
Why: Learn how the three companies will deliver turn-key services to accelerate the go-live timeline, reduce costs associated with the implementation and maximize the return of investment made in global trade management applications
Where: Online - register here: https://www2.gotomeeting.com/register/850675810

Webinar Highlights:
1. HS Tariff content for 140 countries and territories
2. Denied & Sanctioned Parties content from 33 lists covering the globe from MK Denial
3. Global Trade Desktop%u2122- the preeminent web-based HS classification and data management system
4. Comprehensive and seamless integration of all enterprise-wide content configured for SAP GTS or any other computer application need accurate and up to date customs data

"Our companies are committed to helping enterprises maximize their investments in IT systems and the overall effectiveness of business processes," said Matt Gersper, president and founder Global Data Mining. "We are in a unique position to deliver services to accelerate the go-live timeline, reduce costs associated with the implementation and maximize the return of investment made in global trade management applications."

Supporting Resources
-CUSTOMS Info website: http://www.customsinfo.com
-Global Data Mining website: http://www.gdmllc.com
-Emergys website: http://www.emergys.com

About Emergys
Emergys Corp. is a Business Transformation consulting firm focused on helping their partners and clients design and implement strategies that utilize the emerging technologies with a culture of serving our customers' best interests. With diverse expertise and capabilities, Emergys helps clients re-engineer and re-invent their businesses, keeping their operations in line with strategies and goals - positioning them to lead markets through a set of repeatable measurable processes, methodologies and systems.

About CiGDM
CUSTOMS Info (Ci) and its sister company Global Data Mining (GDM) provide enterprise solutions to help businesses optimize global trade management (GTM) systems and streamline global trade automation. Ci provides the world's most comprehensive trade data repository delivered via web-based subscription or as data to populate any GTM or Landed Cost application. GDM helps multi-national companies increase the informational value of trade data and the productivity of global trade staff to reduce operating costs, improve customs compliance, accelerate supply chain speed and maximize the return on investment of this corporate function. Areas of expertise include customs classification research, customs auditing and trade data analytics/business intelligence.

Working in conjunction with GTM applications, Global Data Mining and CUSTOMS Info's strategic partners include SAP, Oracle, MIC, Kewill, Arigo, and others. Please visit http://www.gdmllc.com for more information.

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Contact Info:
Lori Bertelli
Bertelli Group for Global Data Mining
(916) 216-2968
lbertelli@bertelligroup.com

As supply chains become more complex, the amount of data generated per shipment has increased exponentially. Much of this data is put to good use, allowing parties involved in the transactions an unprecedented level of visibility into the supply chain.
However, when the transaction is complete and the goods have been delivered, what happens to all that data?
Relatively few companies seem to have a good answer for that question. Very useful data is often left behind and never revisited.
Meet Global Data Mining, a data management company. "GDM helps multinational companies optimize business processes and turn unorganized data into corporate assets," said Matt Gersper, founder and president of the company.
"We specialize in helping businesses manage and use their enterprise data," he said. "GDM comes from an accounts payable auditing/financial background. We have a strong background in audit, data management and data mining."
GDM provides a blend of on-demand systems and managed services that fall into several general categories. They include:
-Parts master database - Classification content used from global trade management functions.
-Customs audit - Reviews data from a number of sources, including government, enterprise estate planning, parts master list, and brokerage, to ensure reporting to government is accurate.
-Trade data analytics - a project-based service that allows companies to look for future savings or opportunities.
"We're not consultants and do not try to be. Rather we supply data to consultants that makes them more effective," Gersper said.
NEC Corp. of America, a provider of IT network and communications products, developed its own trade database in an effort to reduce the time it takes for shipments to clear customs. NEC estimated this demurrage time to be on average six days per shipment.
"By engaging GDM we were able to compress the processing time from approximately three years to three months through data consolidation and ease of data analysis," said Joseph de la Luz, NEC's general manager of corporate trade compliance. "While the process does require concurrence and final acceptance by an NEC subject matter expert in tariff classification analysis and determinations, GDM greatly accelerated the process."
GDM estimates NEC could be saving as much as $5.6 million per year by moving product through customs in roughly one-and-a-half days.
There are many opportunities for savings available through GDM's services.

"Trade data analytics brings together disparate databases with information outside the firewall, including shipping information, tariffs, and our proprietary information, to provide insight into financial opportunities or supply chain risks," Gersper explained. "Trade data analytics audits for opportunities, customs auditing solutions audit for compliance."
GDM's trade data analytics measures the effectiveness of a company's current strategy and provides actionable intelligence that it can use to improve its use of free trade agreements, foreign trade zones, sourcing and supply chain finance.
"Web-based, 100-percent electronic audit allows companies to correct systemic problems in a highly effective manner," Gersper said. In fact, using metrics provided by Aberdeen Group, he calculates that U.S.-based companies can save as much as $232 billion per year in unnecessary customs and regulatory fees. Certainly this is a best-case scenario, but the point remains that there is a large opportunity for basic business process improvement. "Every CFO should conduct this exercise, Gersper said."
Therein lies the challenge that GDM and its competitors face. Customs and trade issues lack attention within the senior executive level, but they remain a necessary endorsement for making strategic investments in better performance through technology and services.
Gersper offers some guidance for those who are struggling to build momentum around these initiatives. "Trade professionals should audit their import and export data for financial opportunities," he said. "Data analysis will help them prioritize efforts to get the biggest bang for the buck. They should help their leadership make the informed decision to stop losing money everywhere the return on investment meets their company's standard."
Supply chain managers may also be handicapped by their own supply chain outsourcing strategies. "We believe that customs management is the last corporate function to be optimized," Gersper said. "Companies have outsourced customs management to their broker so the data resides outside their firewall."
Clearly GDM and its customers must have access to the data related to their supply chain to be effective.
Looking forward, Gersper sees more opportunities for GDM to expand its list of data management related products and services. "We are working on a total landed cost calculator application," he said. The company plans to release this new application in the fourth quarter.
"We don't see many commercially available systems that do the job," Gersper said. "We have provided content to many businesses that have built their own application."
Total landed cost calculations can vary widely from company to company due to the complexity and disparity of rules that govern import or export in different states.
"Some taxes are not a mathematical formula; they do not lend themselves to automatic calculations." he said. "There are a significant number of incalculable duties and taxes. We identify those and allow users to make customized business rules regarding how to calculate them."
Just as GDM opens potential savings for customers, there continues to arise opportunities for companies like GDM as the supply chain market increases in scale and complexity. They will just need to mine a little deeper to meet each challenge.

EDEN, Utah, Sept. 7, 2010 - Global Data Mining LLC (http://www.gdmllc.com), the leading provider of enterprise-wide trade data management and HS classification systems, today announced the largest ever release of best-practice enhancements to its Global Trade Desktop. When integrated with GTM and ERP applications, the Global Trade Desktop automatically provides accurate trade data to every enterprise-wide system that needs it.

With the added capabilities, the Desktop continues to help organizations build and maintain their global parts master database. The Desktop automates the process of classifying product and maintaining complete, audit-ready records to support each decision. In addition, the Desktop allows users to easily maintain detailed information for every product, attach correspondence and relevant documents, link directly to rulings and explanatory notes used to support HS classification and maintain all the information on a single, secure web-site.

"Every function I've ever been asked for in a classification system is already in the Desktop," said Troy Duncan, Director of Global Trade, Emergys.

"Listening to our customers continues to create powerful best-practice functionality that drives up user productivity," said Matt Gersper, Founder and President of Global Data Mining. "With our ever-growing user-community, the Desktop is like having a network of trade professionals working continually to improve our client's HS classification and trade data management."

Narcotics Kingpins: How Much Could You Save?

(from Reed Smith)

Who knew that gecko was mixed up with such unsavory characters? On June 3, 2010, the U.S. Treasury, Office of Foreign Assets Control ("OFAC") announced that GEICO General Insurance Company paid $11,000 to settle allegations that, from approximately September 2006 to June 2007, it provided a car insurance policy to an individual listed on the Specially Designated Nationals ("SDN") List as a narcotics kingpin. The alleged violations involved premium payments totaling $2,265. OFAC's brief announcement specifies that the settlement amount reflects OFAC's consideration that GEICO screens its customers against a version of the SDN List updated only annually, but is taking measures to improve its procedures.
PANJIVA discount for CI Clients:

We're excited to announce that our sourcing intelligence affiliate, Panjiva, is offering a 15% discount to your sourcing team.

Panjiva (http://panjiva.com) provides intelligence to global sourcing teams. Specifically, Panjiva maintains a database of 1.5 million companies, spread across 190 countries, that are engaged in global trade. Whether evaluating Chinese suppliers or increasingly looking outside of China for new suppliers, Panjiva's clients use this database to develop short-lists of potential suppliers -- suppliers of just about any product in just about any country. Panjiva's rapidly expanding client-list includes companies of all sizes from entrepreneurs to some of the largest companies in the world -- 15 new Fortune 500 clients in the last six months.

As part of CUSTOMS Info's collaboration with Panjiva, CUSTOMS Info clients are now eligible for a 15% discount off the list price of an annual subscription to Panjiva. If you -- or your sourcing team -- are interested, send an email to Lauren@Panjiva.com. To qualify for the discount, you must mention that you are a CUSTOMS Info client, and you must contact Panjiva by September 15th.

Manufacturing Enhancement Act of 2010 Is Signed into Law

U.S. President Barack Obama signed H.R. 4380, the U.S. Manufacturing Enhancement Act of 2010, into law on August 11, 2010. The law is also known as the Miscellaneous Trade Bill or MTB.

The bill creates a new Harmonized Tariff Schedule (HTS) 9902 and provides for duty suspension or reduction for hundreds of HTS numbers, many of which are used by U.S. manufacturers in their production processes.

Goods entered or withdrawn from warehouse for consumption on or after August 26, 2010 through December 31, 2012 will be subject to the new provision.

Goods that were imported between January 1, 2010 and August 26, 2010 and that would have qualified under the new HTS 9902 will be eligible for retroactive duty treatment.

The bill stipulates that retroactive duty treatment for goods entered on or after January 1, 2010 through August 26, 2010 is available, if requested, for 180 days after the date of enactment. Refunds from U.S. Customs and Border Protection (CBP) will be made, without interest, not later than 90 days after the date of the liquidation or re-liquidation.

If your organization would like tohave us quickly and economically analyze your ITRAC data to look for the above mentioned retroactive products, let us know.

Free Training:
As always, CI provides free training. Schedule a 45 minute training session with Jodi Rankin, our CI Trainer, who can be reached at jrankin@customsinfo.com. There are many many advanced search options in CI, learn to take advantage of them, call today!

Off Line Version (CD)
The development on the CI offline version CD to support Windows 7 has begun. We expect Windows 7 support to be available this fall.

By Matt Gersper
New government regulations and ineffective supply chains are costing U.S. businesses millions of dollars in unnecessary fees and expenses, destroying company profits and eroding global competitiveness. Understanding risk factors associated with international business transactions can help companies estimate the financial impact these risks may have on their business and provide a framework for fixing
the problems and restoring lost profits.

Draining the Supply Chain
For financial executives the impact of supply chain risks, trade policies and regulations is a major concern. A recent study1 concluded international trade effectiveness and "hanging on" to the company's hard-earned cash are top
concerns for CFO's in 2010.

There are four main risk factors adding unnecessary costs to
international transactions every day:
1. Government regulations
2. Delays in the supply chain
3. Inadequate internal and external controls
4. Inaccurate or obsolete information

A study2 by APQC and Global Data Mining revealed a typical U.S. bound international supply chain performs perfectly less than 10 percent of the time, internal controls for cross-border transactions are 200-times worse than a company's accounting controls, and a McKinsey study3 estimates cross-border volume will be increasing seven-fold in the next 15 years. These conditions create chaos in many supply chains causing delayed shipments, adding millions of dollars of unnecessary costs, and create unknown risks for companies.

Stop the Bleeding
Optimizing global trade effectiveness and improving supply chain speed can inject trillions of dollars into the national economy this decade. That translates into billions of dollars for states and millions of dollars annually for U.S. businesses. It is time for business executives to quantify unnecessary trade costs, understand the significant financial opportunities available by optimizing global trade business
processes, and take action to return these costs to the company's bottom line.

According to an AberdeenGroup study4 of 233 enterprises, "A $1 billion company that imports a third of its goods can free between $10 million and $40 million in cash by better controlling its basic global trade processes." The specific areas recommended for improvement are: trade agreement management, sourcing opportunities, foreign trade zone utilization, and supply chain finance strategies.

Independent analysis5 by Global Data Mining of more than $178 billion in U.S. imports has consistently supported the conclusions reached by the AberdeenGroup. Applying the Aberdeen metrics to the $1.9 trillion in annual U.S. imports6 would create an annual cash infusion into U.S. businesses of between $58 and $232 billion. Imagine the impact this would have on U.S. jobs and in strengthening the economy. In comparison, the total funds for the American Recovery and Reinvestment Act of 20097 awarded in 2009 was only $183 billion. And only $54 billion was actually paid out.

Big Brother
The new Importer Security Filing regulation commonly referred to as 10+2, gives the U.S. government additional powers to confiscate a company's cash8. Customs and Border Protection's (CBP) recent publication, "Trade Strategy for Fiscal Years 2009-2013," should be a wakeup call for every CFO. Astonishingly, the CBP report lists "Enforce U.S. Trade Laws and Collect Accurate Revenue" as its number two strategic goal ahead of "Advance National and Economic Security."

In Q3-10, CBP will begin to issue fines for non%u2010compliance and there will likely be more frequent holds on shipments for non-compliance.

Another important study9 by the National Association of Manufacturers estimates the ISF regulation will create a
permanent 2.8 day delay in supply chain speed. If the entire nation suffered the 2.8 day delay, it would be the equivalent of a $27 billion to $43 billion tax on U.S businesses. This is bad policy in the midst of a challenging recession.

"To put the cost in perspective, it is virtually the equivalent of doubling the import tariffs that manufacturers now pay to bring products and components into the United States." John Engler, president National Association of Manufacturers

To make matters worse, a recent study11 by PricewaterhouseCoopers found that supply chain disruptions destroy shareholder value and corporate profitability. The study showed the market is quick to punish companies that report supply chain disruptions. On average, affected companies' share prices dropped nine percent below the benchmark group during the two-day announcement period. Compared to benchmark stocks, more than half of the affected companies experienced greater volatility for at least two years, certainly a sign of diminished confidence among share holders.

McKinsey12 recently analyzed goods manufactured for consumption in the U.S. market and mapped them to the optimal region to manufacture them in 2003 and then again in 2008. They compared China (as an offshore example), Mexico (as a near shore example) and the U.S. Surprisingly, in just five years, the best place to manufacture TVs and office copiers shifted from Mexico to the U.S. Financial executives must maintain agile, frequently updated strategies to optimize the constantly changing variables associated with international trade.

Conclusion
Poor controls, government interference and regulations, supply chain disruptions and bad information negatively impact the bottom line. Companies cannot effectively compete on the global stage with outrageous supply chain costs, fines and market-based penalties of this magnitude. Financial executives must stop the money drain by identifying hidden and unnecessary costs and then take action to optimize business processes and return those costs to the company's bottom-line.

In Global Data Mining's free on-demand webinar you'll be presented a framework to help financial executives fix problems, hang on to more of their company's cash, and strengthen their company's competitiveness on the global stage. Don't miss this one. Millions of dollars may be at stake.

What: Trade Optimization Hits Mark for CFO's Top 2010 Concerns
When: On-demand. View the recorded webinar on your timeline.
Where: Register online here: https://www1.gotomeeting.com/register/747604248

Footnotes:
1 Source: Business Outlook Survey by CFO Europe, Tilburg University and Duke University
2 Global Trade Metrics Study Reveals Opportunity for Dramatic Gains by APQC & Global Data Mining
3 www.trademerit.com (Retrieved July 2007), Global Trade to 70 trillion
4 AberdeenGroup, The CFO's Agenda for Global Trade Benchmark Report, How Companies Control Global Sourcing and Selling
to Improve Cash Flow and Profitability, September 2005
5 http://www.gdmllc.com/webinars/30/Data_Mining_help_Financial_Executives.pdf, statistics updated May 6,
2010
6 http://useconomy.about.com/od/tradepolicy/p/Trade_Deficit.htm
7 http://www.recovery.gov/Pages/home.aspx
8
http://www.gdmllc.com/Webinars/30/Fines%20and%20Delays%20could%20hit%20US%20Importers%20Hard%20in%202010
%20v05.pdf
9 Survey of U.S. Companies: Current and Potential Future Impact of the "10+2" Requirements
10 http://www.unc.edu/depts/econ/seminars/hummels.pdf
11 Supply chain disruptions destroy shareholder value and corporate profitability
12 McKinsey on Business, Time to rethink offshoring.

By Matt Gersper

The Importer Security Filing (ISF) gives the U.S. government new powers to confiscate a company's cash. The ISF requires specific information from U.S. importers and additional information from carriers for vessel (maritime) cargo before it is brought into the U.S. Failure to comply could bring financial disaster to unprepared U.S. businesses. There are three major reasons - each with direct, bottom-line impact - business leaders should assure their companies are compliant.

First is the risk of significant financial penalties for non-compliance. ISF regulations, commonly referred to as "10+2", state an importer can be fined $5,000 per filing if an ISF is not timely, complete and accurate. The penalty phase begins July 1, 2010.

The second reason is Custom & Border Protection's (CBP's) renewed commitment to enforcement and revenue collection.
CBP's recently published Trade Strategy for Fiscal Years 2009-2013 makes clear just how important revenue collection has become to the U.S. Government. Shockingly, CBP's report lists "Enforce US Trade Laws and Collect Accurate Revenue" as its number two strategic goal ahead of "Advance National and Economic Security."

The third reason is the impact supply chain delays could have on a business. A study by the National Association of Manufacturers (NAM), "Survey of U.S. Companies: Current and Potential Future Impact of the '10+2' Requirements," estimates the ISF regulation will create a permanent 2.8 day delay in supply chain speed, estimated to cost industry more than $17 billion per year.

An American Shipper magazine study in Q4-09 estimates the over-all cycle time delay of the study average was 2.05 days and this was before the graduated enforcement phase in Q2-10 in which CBP intends to begin holding shipments for non-compliant ISF's. The potential impact of 10+2 is very serious.

"I'd let my CFO know the penalty phase will be going into effect as scheduled and the implications could have tremendous negative impact on the bottom line," said Beth Peterson, President of BPE. Peterson has been a strong advocate representing the interests of industry to CBP regarding the impact the ISF regulations could have on U.S. businesses.

An American Shipper magazine research project, "ISF Benchmark Study: From Concept to Compliance," revealed three of the top four challenges importers are having with 10+2 compliance are related to data management.

DATA MANAGEMENT CHALLENGES
%u2022 Nearly 60 percent of companies have challenges providing timely ISF data
%u2022 Nearly 40 percent struggle to collect complete ISF data
%u2022 Around 20 percent have problems with the accuracy of the data they are providing

These are the very three issues causing penalties to be assessed. To make matters even worse, the penalties estimated above could be twice a large since the regulations state fees can be as high as $10,000 per filing if two or more violations occur. For example, the filing is not timely nor is it complete.

Modern database and workflow applications can dramatically improve a company's data management efficiency and significantly bolster its capacity to achieve ISF compliance. Web-portals or central information hubs allow parties around the world to collaborate and interact online, with the same information though a single platform.

Here are six tips that can help companies select the right Business Intelligence technology to achieve ISF compliance and improve enterprise-wide data management efficiency:
%u2022 The solution should provide a unique and secure state-of-the-art website accessible worldwide by any authorized user through the Internet. The manager should have complete control of multi-party collaboration including the functions any given user may perform, the data any given user may see, and the responsibilities any given user may have based on the unique role each person provides the company.
%u2022 The solution should provide a database or portal that becomes the system of record or the "single version of the truth" for 10+2 and other customs information about every item enterprise-wide. It should include powerful tools for document management and storage. The database should be capable of growth beyond ISF to meet unforeseen business or government requirements that may arise in the future.
%u2022 It should be easy to upload data from any system, from any business unit or supplier around the world. It should provide features to normalize data into one company-wide standard and functionality for viewing, sorting, filtering and working with data that is easier to use than Excel. In addition, it should automatically update the database as tariffs change for different countries at different times around the world.
%u2022 The technology should easily integrate with existing computer systems and should make it easy to create and manage 10+2 and other data for use by various business applications that require reliable global trade data. Few companies have one single system to manage their entire enterprise. The solution should become the enterprise-wide database providing accurate trade data to every system that needs it.
%u2022 Ensure the solution leverages best-practice functionality that can drive up productivity. Web-based applications can automatically update users with the latest enhancements installed since their last login. The staff and supplier network should be empowered to create and maintain trade data more efficiently and enable each person to work dramatically more effectively.
%u2022 Look for powerful oversight tools. The ability to keep automatic records of the critical data elements created in each step of the workflow in every business unit around the world helps meet the reasonable care standards of customs agencies. Workflow applications can also be used to establish enterprise-wide process controls and to measure performance of global trade staff, suppliers, or third party service providers.

Applying these six tips will dramatically improve a company's enterprise-wide data management efficiency, help achieve 10+2 compliance and avoid financial penalties. In fact, 10+2 can be a hidden opportunity for strategic thinking companies. Optimizing currently inefficient data management processes can improve supply chain performance and deliver a positive return on investment.

This timeline represents CBP's graduated, escalated enforcement policy:
January 26, 2009 began a trial period to allow the trade to work through various problems and to come into compliance with the new requirements. CBP began conducting analysis of ISF data generated or lack of data submitted and began analyzing it from an enforcement perspective. Therefore, lack of filing or inaccurate filings after this date can be held against the filer when CBP moves toward stricter enforcement of the ISF requirements.
During Q1-10, CBP began identifying importers that are not filing and filers that are having issues with their ISFs. CBP started issuing warning letters and/or calling the importers to communicate with them about what they are lacking or issues with their ISFs. This effectively put the trade on notice that their data has been reviewed "in an enforcement light."
Moving into Q2-10, importers that do not file will see holds on shipment, document reviews, and/or physical examinations.
By Q3-10, the ISF data generated will be used and CBP will begin to issue liquidated damages claims (fines). There will likely be more frequent holds on shipments that should have an ISF, but do not. In addition, during Q3-10 and Q4-10, CBP will begin to look at data accuracy as a key point and make sure that filers have bonded their ISF submissions appropriately.
Executives of companies importing into the U.S. should act with urgency. Best-in-class companies are funding cross-functional teams to develop a strategic enterprise-wide solution, using 10+2 as a catalyst to optimize currently inefficient global trade business processes and creating competitive advantage for their company at the same time. The Purdue Study works in the positive direction also. Improving supply chain speed by just one day would be worth $800,000 per year for a company importing $100 million annually.
Matt Gersper, founder and president of Global Data Mining and co-owner of CUSTOMS Info, has over 20 years of experience optimizing processes and helping customers turn unorganized data into information that managers and executives can leverage to improve performance. For more information on Global Data Mining contact Matt at mattgersper@gdmllc.com or visit http://www.gdmllc.com

Additional references: Beth Peterson, president of BPE: beth@bpeglobal

Global Data Mining LLC (www.gdmllc.com), the leading provider of database management and customs classification systems, today announced a free Webinar on using Global Data Mining's supply chain audit to improve global trade processes and recover unnecessary costs in the supply chain.

What: Free Webinar on using Business Intelligence to identify hidden costs
When: Wednesday, May 26, 2010 from 2:00 p.m. to 3:00 p.m. EST%u2028%u2028
Why: Learn cost cutting best practices CFO's have yet to discover
Where: Online: register by visiting https://www1.gotomeeting.com/register/381256616

"Business Intelligence (BI) can help U.S. businesses quantify hidden and unnecessary costs in their U.S. import operations," said Matt Gersper, president and founder at Global Data Mining, LLC. "In addition, auditing top-tier domestic suppliers using the same analytics helps identify unnecessary costs buried in a company's cost-of-goods, improves company profits, and strengthens the U.S. economy one business at a time. We are committed to helping trade professionals get their jobs done efficiently, quickly, and positively affecting the company's bottom line."

About Global Data Mining
Global Data Mining and its sister company CUSTOMS Info provide database management and customs classification systems to help businesses optimize global trade management (GTM) systems and streamline global trade automation. Global Data Mining helps multi-national companies optimize business processes and turn unorganized data into corporate assets managers and executives use to improve performance, save money and accelerate the international supply chain. CUSTOMS Info provides the world's most comprehensive trade data repository delivered via web-based subscription or as data to populate any GTM or Landed Cost application.

Working in conjunction with GTM applications, Global Data Mining and CUSTOMS Info's strategic partners include SAP, Oracle, MIC, Kewill, Arigo, Qwestaweb and others. Please visit http://www.gdmllc.com for more information.

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Contact Info:
Lori Bertelli
Bertelli Group for Global Data Mining
(916) 216-2968
lbertelli@bertelligroup.com