1PL, 2PL, 3PL, 4PL and 10+2 Rule

1PL, 2PL, 3PL, 4PL and 10+2 Rule :

1PL

Logistics handled internally by a company

For example....a manufacturer that owns warehouses for storage and trucks that deliver products to customers

2PL

Basic domestic and international transport and warehouse management logistics handled for a company by an outside contractor

3PL

The integration and management of all logistics services of a complex supply chain

Also, to be the sole point of contact between a customer and its array of logis¬tics and information service providers

This includes stor¬age, transshipment and other value-added services as well as the services of subcontractors. These are typically com¬plex service chains

4PL

A logistics term coined and trademarked by An¬derson Consulting (now Accenture) in 1996. There is contro¬versy in the logistics industry regarding this term. According to Accenture, 4PL is an integrator that assembles the re¬sources, capabilities and technology of its own organization and other organizations to design, build and run comprehen¬sive supply chain solutions.

For some... 4PL is simply 3PL with a trademark attached. The more generally accepted use of the term is that 4PL is 3PL with significant inputs of tech¬nological services.

10+2 Rule

(U.S. Customs) Officially, the Importer Security Filing and Additional Carrier Requirements Rule, but better known as the 10+2 rule. A proposed new U.S. Customs and Border Protection (CBP) rule that requires importers of ocean cargo or their authorized agents to supply CBP with an Importer Security Filing of 10 additional data elements and ocean carriers to supply an additional 2 data elements, therefore, the 10+2 rule. These data elements must be presented to CBP a minimum of 24 hours prior to vessel loading in the foreign port and must be filed elec¬tronically using the Automated Broker Interface (ABI). The rule is expected to go into effect by January 2009, but will be phased in over eight to twelve months.

The Importer Security Filing contains the following 10 data elements.

1. Manufacturer (or supplier) name and address

2. Seller (or owner) name and address

3. Buyer (or owner) name and address

4. Ship-to name and address

5. Container stuffing location

6. Consolidator (stuffer) name and address

7. Importer of record number/foreign trade zone applicant identification number

8. Consignee numbers)

9. Country of origin

10. Commodity Harmonized Tariff Schedule number

The Additional Carrier Requirements contain the follow¬ing 2 data elements.

1. A vessel stow plan used to transmit information about the physical location of cargo loaded aboard the vessel bound for the U.S.

2. Container status messages which report container movements and changes in status (e.g., empty or full)

This new rule is another step in the Department of Home¬land Security’s (DHS) strategy to better assess and iden¬tify high-risk shipments to prevent terrorist weapons and materials from entering the United States. The intention of the mle is to improve CBP’s ability to target high-risk cargo by identifying actual cargo movements and improv¬ing the accuracy of cargo descriptions. It will also improve CBP’s ability to facilitate lawful international trade by identifying low-risk shipments much earlier in the supply chain.

CBP has implemented a comprehensive, multi-layered cargo security strategy designed to enhance national secu¬rity. These efforts include the 24-hour Manifest Rule, Container Security Initiative, Customs-Trade Partnership Against Terrorism (C-TPAT), Non-Intrusive Inspection Techniques, Automated Targeting System, the Secure Freight Initiative, and the National Targeting Center. Currently, CBP relies primarily on carrier manifest infor¬mation to perform advance targeting prior to vessel load¬ing. Internal and external reviews have concluded that more complete advance shipment data would produce more accurate and effective cargo risk assessments. This way resources can be focused on true threats and legiti¬mate cargo can speed through the system as quickly as possible. For more information go to www.cbp.gov.

1PL, 2PL, 3PL, 4PL and 10+2 Rule

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