Descartes Responds to CBP Interim Final Rule by Forming ISF '10+2' Workgroup



WATERLOO, Ontario- November 25, 2008 - Descartes Systems Group, a global on-demand software-as-a-service (SaaS) logistics solutions provider, responded to the new U.S. Customs and Border Protection (CBP) Importer Security Filing (ISF) "10+2" rule by forming a Descartes "10+2" Workgroup. The Descartes "10+2" Workgroup is designed for leading importers, customs brokers, carriers, freight forwarders, non-vessel operating common carriers (NVOCCs), and shippers - including representation from the top 5 integrators and leading international freight forwarders - to standardize and develop best practices across this global logistics community for this new rule.

Today, CBP officially released its long-awaited interim final rule on the Importer Security Filing, also known as the "10+2" rule. Under this rule, beginning January 26, 2009, importers will be required to provide CBP with additional data elements 24 hours prior to lading for all ocean shipments inbound to the United States. This security measure is often referred to as "10+2" because the regulation requires the collection of 10 new data elements from importers or their agents and two message sets from the ocean carriers. The goal is to have these data elements submitted 24 hours prior to vessel departure and the two new message sets from ocean carriers within 48 hours of vessel departure, however, CBP has allowed for some flexibility in this timing and submission of the data elements.

Descartes' "10+2" Workgroup objectives are to:

  • Automate and standardize this business process across all parties involved
  • Provide the interpretation and understanding of the final ISF rule and its impact on the industry
  • Provide insight on optimal data and work flow options between the importer, forwarder, broker, carrier, other agents and CBP
  • Provide guidance on future complementary solutions to assist in further streamlining international trade

"The ISF 10+2 requirement is a multiparty process. The business process and work flows will need to be defined as they will be different across the multiple parties and therefore will not be a one size solution that fits all," said Ed Ryan, Executive Vice President, Global Field Operations at Descartes. "Descartes' role is to enable our global logistics community to help manage this process in the most effective and efficient manner."

Descartes previously announced the availability of it's of Importer Security Filing (ISF) "10+2" Service to address the CBP interim final rule.

For importers, customs brokers, carriers, freight forwarders, non-vessel operating common carriers (NVOCCs), and shippers, the Descartes ISF Service offers a complete solution to help them comply with the new regulations. To accommodate customers' varying technical capabilities, Descartes offers options that range from a user-friendly Web solution that permits manual entry of data information to a tightly integrated system-to-system electronic data interchange (EDI) connection. Regardless of the option chosen, Descartes ISF Service submits required data information electronically to CBP and gathers the status of that filing in real-time.

Descartes offers three different ISF Service delivery options accommodate varying customer needs:

  • DESCARTES ISF: This simple web user interface (UI) enables customers to login via the Internet and enter all the data required for an ISF filing (5 or 10). This service sends the data directly to CBP and provides a view of the filing status. Customers have the option of receiving the status updates via EDI if they choose. E-alerts can also be used to notify the customers via email if there is a problem with the filing.

  • DESCARTES ISF - CONNECT: This service enables customers to gather the complete data set for the ISF filing in their own systems for submission to CBP. The service transmits the data for each ISF filing and provides a status of the filing via electronic message for posting in the customer's own system. All transmissions are made via the Descartes Global Logistics Network's secure connection to CBP.

  • DESCARTES ISF - PREMIER: This service enables the customers to collect the data needed for the ISF filing from multiple electronic document submissions or parties, including data sources such as a Purchase Order or ASN. Once the data is collected for the partial ISF filing, the customer can complete the remaining required fields and submit the filing to customs via the user interface as needed.

Descartes' ISF Service is a part of the Descartes' Global Logistics Network (GLN) Customs Filing & Compliance suite. The GLN helps automate, manage and streamline the end-to-end shipment process, from source to consumer, with ongoing real-time visibility. Descartes' customs filing and compliance services help companies meet regulatory requirements for international shipments for both international customs agencies and security initiatives.

Descartes ISF "10+2" Readiness Program
Last week, Descartes announced its ISF Readiness Program. This ISF Readiness Program is designed to inform, educate and provide first-hand access to importers, customs brokers, carriers, freight forwarders, non-vessel operating common carriers (NVOCCs) and shippers to the Descartes ISF Services. Organizations can visit www.descartes.com/10+2beready to sign up and download a webcast that provides an update on the Descartes ISF Service.

Descartes ISF "10+2" Live Complimentary Webcasts
Descartes will also be hosting live webcasts on this topic over the next 3 weeks at various times on Wednesday December 3, Wednesday December 10 and Wednesday December 17. To register visit www.descartes.com/10+2register.

For more information please visit http://www.descartes.com/10+2 or email [email protected]

About Descartes
Descartes (TSX: DSG) (NASDAQ: DSGX), a leading provider of software-as-a-service (SaaS) logistics solutions, is delivering results across the globe today for organizations that operate logistics-intensive businesses. Descartes' logistics management solutions combine a multi-modal network, the Descartes Global Logistics Network, with component-based 'nano' sized applications to provide messaging services between logistics trading partners, shipment management services to help manage third party carriers and private fleet management services for organizations of all sizes. These solutions and services help Descartes' customers reduce administrative costs, billing cycles, fleet size, contract carrier costs, and mileage driven and improve pick up and delivery reliability. Our hosted, transactional and packaged solutions deliver repeatable, measurable results and fast time-to-value. Descartes customers include an estimated 1,600 ground carriers and more than 90 airlines, 30 ocean carriers, 900 freight forwarders and third-party providers of logistics services, and hundreds of manufacturers, retailers, distributors, private fleet owners and regulatory agencies. The company has more than 350 employees and is based in Waterloo, Ontario, with operations in Atlanta, Pittsburgh, Minneapolis, Ottawa, Washington DC, Derby, London, Brussels, Stockholm and Shanghai. For more information, visit www.descartes.com.

Media Contact
Nicole German
Descartes Systems Group
1-416-741-2838 ext. 298
[email protected]

This release contains forward-looking information within the meaning of applicable securities laws ("forward-looking statements") that relate to Descartes' solution offering and potential benefits derived therefrom; Descartes' ability to help customers comply with emerging compliance initiatives and other matters. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changes in the structure or deployment of compliance initiatives and the factors and assumptions discussed in the section entitled, "Certain Factors That May Affect Future Results" in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.