Keeping Your Trade Data Confidential

By John Moccia, Regulatory Affairs, Canada

Digital footprint is a term that generally refers to any information or data a person creates. Often, we provide this information voluntarily using social media, this is known as an active digital footprint. On the other hand, a passive digital footprint occurs when information or data is collected about us by a third party.
Today, there’s no shortage of data miners seeking to collect and sell your company’s digital trade data. These companies not only collect your trade data, but can also analyze and interpret that data in a variety of ways. This type of transparency in the supply chain represents an entirely new paradigm for all importers and exporters. The potential risks are significant. I’m often asked how these companies get their hands on shipment trade data? The answer’s not simply blowing in the wind.

Privacy laws in the U.S. and Canada

In the United States, the answer to the question above originates from a regulatory requirement.

According to U.S. privacy statute 19 CFR 103.31(d), the public is allowed to collect manifest data at every port of entry. Thus, the vessel manifest data for shipments entering/departing in the U.S. via marine mode is publically available. This manifest data may include details such as: product description, quantity, country of origin, importer name, importer address, exporter name, exporter address, HS code, value, and trademarks appearing on the goods.

In Canada, no similar type of legislative provision exists.

The publication of trade data in Canada falls under the mandate of Statistics Canada, which is required to collect, compile, analyze, abstract and publish statistical data obtained from transactional information that relates to commercial, industrial, economic and general activities. By law, Statistics Canada cannot release any data that will divulge information obtained under the Statistics Act and that relates to any identifiable person, business or organization without the prior knowledge or the consent in writing of that person, business or organization.

Although this may appear to be good news for Canadian importers and exporters, there’s still a concern for any Canadian cargo and freight remaining on board (FROB) that arrives in containers through a U.S. port. Since Canada-bound cargo is transiting through a U.S. port, Canadian commercial trade data is also publically available.
To prevent the public disclosure of your company name on vessel manifests entering /departing the United States, importers need to submit a letter to the Privacy Branch of U.S. Customs and Border Protection (CBP).

You can submit the letter to the Privacy Branch, requesting that your company name not be disclosed on the vessel manifest, using the following means:
By email: vesselmanifestconfidentiality@cbp.dhs.gov
By fax: (202) 325-0154
By mail:

CBP Privacy Officer
U.S. Customs and Border Protection
90 K Street, N.E.
10th Floor
Washington D.C. 20229-1177

Your letter should contain details such as the type of confidentiality being request (for example, inbound or outboard or both), which party is making the request (for example, importer, consignee, exporter), the U.S. address, and the company name you do not want disclosed. Keep in mind that the confidential protection is valid for two years, after which time a renewal is needed, and CBP will not accept more than 10 variations of a company name.

Once the confidentiality request has been granted, CBP will issue a response. While this is a free service offered by CBP, approximate processing times are between 60-90 days. In the era of big data, organizations that deal with imports and exports need to effectively manage their trade data and minimize their potential exposure to data mining activities. A failure to do so may weaken your competitive advantage and result in variety of unintended consequences.