Your Company Info Here

Sample Letter to Supplier

Subject: Urgent: New U. S. Customs Requirement for Advance Shipment Information

Dear Vendor / Supplier,

Beginning January 26, 2009 United States importers are required to provide U. S. Customs advance shipment information for all ocean freight imports destined to the United States.

Advance transactional information has not previously been required but now must be provided to Customs at least 24 hours before ocean freight (FCL and LCL) shipments are loaded at the foreign port.

Implementation of the Importer Security Filer (ISF) program will result in several operational changes for you, our vendor, as well as major new responsibilities for us, the importer. We will have to rely upon your firm to provide our customs broker/agent with detailed invoice and logistics information 72 hours prior delivery of cargo to the port of export. Based on your information, our broker/agent will classify the products and will transmit 10 data elements including bill of lading, complete transactional party information and container loading location information to 24 hours prior to the cargo being loaded on the vessel.

Our customs broker, V. Alexander & Co., Inc., will file this information for Importer Company Name as our agent. V. Alexander has developed an electronic system to make it easy for you to provide and update this information. Their system will enable your firm to prove when the information and documentation were furnished as well documenting the entire process for us. Their system eliminates debates as to who did what and when they did it.

You will soon be receiving an email from the V. Alexander “V-NET” system including a link for you to log-in and complete basic information covering your company and normal your container stuffing locations.

Then, whenever you have a shipment for us, you just login and enter the ocean bill of lading number, check to make sure the container stuffing information is correct, upload the invoice and submit the information to the V. Alexander system. If you are not capable of uploading a copy of the commercial invoice you can input basic commodity and origin information into the system. The process has been made simple as possible by V. Alexander. If the initial set-up is done properly, the time involved in processing shipment information and upload of the invoice will be minimal.

Please understand that these requirements are now US import law, not simply a requirement for our own purposes. All U. S. importers will have to require advance information from their suppliers and will have to exercise control of the shipment. This law forces the importer to achieve an electronic filing prior to you being able to ship. You will receive an e-mail from V. Alexander confirming that U. S. Customs has acknowledged receipt of our filing at which time you will be free to deliver the shipment to the carrier.

This is the first time in the history of international trade that a government has forced such an invasion into the international purchasing process. Regardless, it is the law. Should a shipment be loaded prior to our transmission of the Importer Security Filing we, the importer, will be subject to a $5,000.00 penalty.

While there is a limited implementation period during which no penalties will be issued it is critical that Customs sees that we are making progress with our suppliers in our efforts to be 100% ISF compliant.

Should you require assistance in this process contact V. Alexander & Co., Inc. at

Set-up and technical support: [email protected]

Transactional support: [email protected]

Memphis: Valerie Maricle [email protected] or Frances Gutt [email protected] 901-795-7761

Nashville: Paige Carr [email protected] or MarcTorrence [email protected] 615-885-0020

Knoxville: Diane Pastoor [email protected] or Rick Walker [email protected] 865-970-7461

Since the requirement to provide this information is now part of US law, we are also compelled to amend our standard shipping instruction, purchase order terms and, if applicable, Letter of Credit terms (see attached).

It has been a pleasure working with you. We look forward to a long and mutually rewarding relationship and to your full support and cooperation in this highly critical process.

Best regards,