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The STOP Act of 2018 was a significant piece of legislation designed to combat the flow of synthetic opioids into the United States. The act requires foreign postal operators to provide 100% advance electronic data on shipments entering the U.S. via mail. This requirement aims to increase the transparency of the supply chain and prevent the shipment of illicit substances.

However, many countries benefit from a waiver and do not have to follow STOP Act requirements. This loophole in the legislation allows some foreign postal operators to avoid providing advanced electronic data on shipments, leaving the U.S. vulnerable to the importation of illicit substances.

To address this issue, a new bill has been introduced in the Senate: STOP Act 2.0. This new legislation builds on the STOP Act of 2018 and seeks to further enhance the efforts to prevent the shipment of illegal opioids into the U.S.

What are the key changes?

STOP Act 2.0 aims to terminate the authority to exclude countries from the requirement to transmit advance electronic information for 100% of mail shipments. This means that all countries will be required to provide the necessary data for their shipments. The bill also seeks to increase the criminal penalty for mail fraud involving misrepresentation of the country of origin, including seizure of shipments, fines, and imprisonment.

 

The impact of STOP Act 2.0 will be felt across the board, as it will apply to all countries that ship to the U.S. via mail. Businesses that rely on mail shipments to the U.S. must ensure that they provide accurate product descriptions and HS codes, among other data elements.

 

The introduction of STOP Act 2.0 has raised concerns among some businesses about the potential impact on their operations. Some have expressed concerns about the additional paperwork and compliance requirements that will be necessary to meet the new regulations.

 

However, there are also advantages to the increased transparency that the legislation will bring. By requiring all countries to provide advanced electronic data on shipments, the U.S. will be better able to monitor the supply chain and prevent the importation of illegal opioids.

 

The U.S. is one of many countries to introduce legislation to increase supply chain transparency. The Import Control System 2 (ICS2) in the EU, requires all carriers to provide advanced electronic data on goods entering the EU. The system has successfully prevented the shipment of illicit goods and has been widely adopted by carriers.

 

While STOP Act 2.0 has yet to be enacted, it is important for businesses that ship to the U.S. to begin preparing for the new regulations. Given the global trend towards high-quality data and transparency in the supply chain, other countries will likely follow suit and introduce similar regulations in the future.

What do businesses have to do?

There are several steps that businesses can take to prepare for the introduction of STOP Act 2.0. One of the most important is ensuring accurate and up-to-date product descriptions and HS codes for all shipments. This will help ensure that the necessary data is provided to U.S. customs and reduce the risk of delayed or seized shipments.

 

Technologies like the iCustoms AI classification tool provide HS codes and clear product descriptions in milli-seconds and help businesses stay compliant 

Product classification with HS and Commodity codes

Another important step is to work with a trusted partner who can provide guidance and support on compliance with the new regulations. This might include assistance with data management and integration and advice on best practices for complying with the new rules.

Conclusion

In conclusion, STOP Act 2.0 is a significant piece of legislation that seeks to build on the efforts of the STOP Act of 2018 to prevent the shipment of illegal opioids into the United States. The new regulations will apply to all countries that ship to the U.S. via mail and will require businesses to provide accurate and up-to-date product descriptions and HS codes for all shipments.

 

While the introduction of the new regulations may pose some challenges for businesses, there are also benefits to be gained from the increased transparency.

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