Answer: Compliance with the
24 hour rule is a matter of National Security. We applaud the efforts
of those entities that have taken the rule and implementation period seriously
and we caution those that have not, that incomplete and late data will
not be tolerated from carriers and NVOCCs of any size. We encourage those
entities to meet with their customers and explain the repercussions that
will begin on May 4th.
Commencing on May 4, 2003, CBP ports will be responsible for initiating
"Do Not Load" messages for cargo whenever an "invalid"
cargo description is used. These selected non-compliant cargo targets
will be referred to the National Targeting Center (NTC) for coordination
of the issuance of the "Do Not Load" message to the carrier
or NVOCC. Invalid and valid cargo descriptions are clearly listed in FAQ
30 below and should be followed as an example of invalid cargo descriptions.
The major goal of this initiative is to require that the valid description
be input by the carrier/NVOCC in the cargo description field and no other,
including marks and numbers. Additionally, CBP is encouraging that the
relevant description of cargo be placed in the beginning of the first
or second description line of the manifest, or the HTS field as appropriate.
Also on May 4, 2003, CBP ports will be authorized to issue monetary
penalties for egregious violations of timeliness. Seaports will be responsible
for the review and enforce the timeliness of cargo declaration submissions.
The selection of targets will be coordinated through the NTC. The issuance
of penalties will also be coordinated and approved through Headquarters.
On May 15, 2003, seaports will also take enforcement action on
egregious Consignee name and address violations leading to issuance of
Headquarters approved "Do Not Load" messages. Consignee description
requirements are relatively clearly defined, yet we still experience egregious
errors including fields left Blank, or the use of "To Order"
and "To Order of Shipper" without corresponding information
in the consignee field (e.g., a bank's name and address) and notify party
field or consignee name with no address, incomplete address (only city
and state) or an invalid address.
These selected non-compliant cargo targets will be referred to the NTC
for coordination and approval prior to the issuance of the "Do Not
Load" message to the automated carrier or NVOCC. When selecting non-compliant
cargo, CBP realizes that Foreign Remaining On Board cargo and some inbond
movements will not have a U.S. or standardized addresses.
Also on May 15, 2003, CBP ports will be authorized to issue monetary
penalties for Foreign Remaining On Board (FROB) cargo that has an invalid
cargo description and that has been loaded on board the vessel without
providing CBP a 24-hour time frame to place a "Do Not Load"
message on the cargo. Carriers and NVOCC's may be subject to penalties
and liquidated damages per each vessel arrival for violation of manifest
requirements. On behalf of carriers, masters of vessels will be assessed
penalties per vessel arrival in accordance with 19 USC 1436 (penalties
of $5,000 per first violation and $10,000 for any subsequent violation
attributable to the master). NVOCCs will incur claims for liquidated damages
of $5,000 per vessel arrival in accordance with 19 CFR 113.64(c) and 19
CFR 4.7(b) and/or 19 CFR 4.7a(c). If there are multiple automated NVOCCs
in violation of the FROB requirements on a vessel arrival each automated
NVOCC may be assessed liquidated damages.
These are the next steps in CBP's process of ratcheting-up enforcement
procedures to ensure full compliance with the rule over the course in
the near term.
2. Requirement
of NVOCCs on December 2, 2002:
A) Will CBP rethink its policy regarding NVOCC automation or extend
the time period by which NVOCCs may automate? |
Answer: CBP has not required that
NVOCCs become automated, but has authorized the option of automation. The
time frame given for NVOCCs to submit paper cargo declarations directly
to CBP expired on February 2, 2003. This time frame will not be extended.
There are several interim options for this segment of the trade to provide
information in an automated format to CBP. These options are: Utilizing
a service provider, a port authority, direct interface with CBP, or submitting
paper cargo declarations to the carrier for input into AMS or for inclusion
on the non-automated carriers cargo declaration. It should be noted that
a direct interface with CBP requires a period of lead-time and therefore,
companies may want to use one of the other options until their direct interface
is completed.
| B) How can I get my manifest
data electronically to CBP? |
Answer: Answer: You may either
utilize a service center or port authority to transmit data on your behalf
or you may elect to develop a direct interface between your company and
CBP. A list of those entities which have developed a Sea AMS interface
can be found under the heading of Sea AMS Data Processing Services on
the following CBP web site:
http://www.customs.treas.gov/xp/cgov/import/operations_support/automated_systems/ams/
Those companies electing to establish a direct interface must develop
all the necessary records required by the module. AMS recognizes transmission
of data in either the ANSI X12 (version 4010) format or the Customs Automated
Manifest Interface Requirements (CAMIR) format. In addition, those users
electing to develop a direct interface or purchasing a vendor's software
package must successfully complete a 4 step test phase.
| C) What type of communication
options are available to overseas parties looking to interface with
CBP. |
Answer: Those parties located
overseas may choose to utilize MQ Frame Relay, a Value Added Network (VAN)
with a global service or utilize a service center/port authority here
in the U.S. Many service centers can receive a user's data via the Internet
and then pass to CBP.
| D) Does an automated NVOCC
possess the same system capabilities as an automated carrier? |
Answer: Automated NVOCCs are
afforded the same AMS features as an automated carrier, such as auto arrival
of the vessel, electronic request for permit to transfers (PTT), Second
Notify Party designation and participation in the Paperless Master In-bond
Program (AMS/MIB).
3. Implementation
at CSI and Non-CSI Ports:
How does the application of this rule differ between CSI and non-CSI
ports? How will holds on cargo from non-CSI ports be handled? Besides
electronic messages through AMS, how will CBP notify origin ports
of cargo to be held or examined? |
Answer: Requirements for implementation
of the 24-hour rule at CSI and non-CSI ports will be the same for vessel
AMS participants. For non-automated carriers at CSI ports, paper manifests
will be presented to CBP personnel at a designated location in these ports.
For non-automated carriers at non-CSI ports, paper cargo declaration
must be presented to each port of unlading in the U.S. 24-hours prior
to lading in the foreign port. Facsimiles and non-AMS electronic messages
sent directly to CBP are not authorized. Non-automated vessel carriers
may enlist the automated services of a Vessel Agent, Service Provider,
local Port Authority, or a business partner in the U.S. The domestic party
in receipt would deliver the cargo declaration information directly to
CBP. When a non-automated vessel carrier has elected to submit a paper
cargo declaration directly to CBP in the United States, the non-automated
carrier is responsible for ensuring that complete cargo declaration information
for each port of call in the United States is submitted to each CBP location
for review 24 hours prior to lading at the foreign port.
For non-automated carriers that submit a paper a manifest, the party
designated to present the cargo declaration to CBP will be the one to
receive notifications from CBP of any cargo "do not load" messages.
"Do not Load" notices must also be provided to the vessel carrier
from the non-automated NVOCCs.
4. Trade
Act of 2002:
Does CBP contemplate new rulemaking under the 2002 Trade Act? If yes:
Would CBP entertain modifications to the current rule under that process?
Does CBP also expect to modify the rule as ACE comes on line to provide
alternative means of information collection? What sort of transition
would CBP contemplate? |
Answer: CBP does not anticipate
new rule making under the Trade Act of 2002 that would limit or restrict
the requirements of the 24-hour rule.
As the various releases of ACE are completed and the ability to collect
data and information is enhanced, CBP will re-evaluate the rule.
Questions pertaining to the transition will be addressed once CBP and
its trade partners involved with the development of ACE have identified
the specific elements within ACE pertaining to this issue.
5. Confidentiality:
A) It appears that the only protection of business confidentiality
would be by CBP delaying the release of the information. How does
that prevent information from getting into the hands of a company's
competitors or criminals? |
Answer: The fact that information
is provided directly to CBP addresses the concern of NVOCCs wishing to
safeguard their clients' information from competitors. CBP has issued
a separate Notice of Proposed Rulemaking dated January 9, 2003 (68 FR
1173) to expand the list of parties who may file a biennial certification
that would allow those parties to file on behalf of the importer or consignee.
This separate Notice of Proposed Rulemaking is necessary because comments
received on this issue were outside the scope of the original Notice of
Proposed Rulemaking dated August 8, 2002.
CBP is regulated by statute (19 USC 1431(c)) regarding disclosure of
manifest data. Congress must enact any changes to the statute.
| B) How can shipper information
contained in vessel manifests be insulated from release to the public
under 19 U.S.C. 1431(c)? |
Answer: Since the enactment
of Public Law 98-573 (October 30, 1984), it has been possible for authorized
parties to request of CBP to withhold shipper identity information from
release for public dissemination. The 1984 Act, in pertinent part, amended
the manifest statute (19 U.S.C. 1431) by adding subsection (c), the provision
which enables importers and consignees of merchandise to file biennial
certifications with CBP whereby certain limited information may be withheld.
The statute itself allows these named entities to request confidentiality
of the name and address of the importer or consignee, as well as the name
and address of the shipper of goods to either of those parties. The implementing
regulations (19 CFR 103.31) established that authorized employees, attorneys
or officials may submit confidentiality certifications to CBP on behalf
of the statutory parties (importer or consignee).
There is no prescribed format for the preparation of confidentiality
certifications. They should, however, include the requestor's IRS Employer
Number, if available. Certifications must be submitted to the Disclosure
Law Officer, Headquarters, Customs and Border Protection, 1300 Pennsylvania
Avenue, NW., ATTN: Mint Annex, Washington, D.C. 20229.
| C) How does an importer or
consignee request confidential treatment under Section 1431? |
Answer: Title 19 of the Code
of Federal Regulations section 103.31(3)(d), (19 CFR 103.31(3)(d)) states
that an importer or consignee may request confidential treatment of its
name and address contained in inward manifests, to include identifying
marks and numbers. In addition, an importer or consignee may request confidential
treatment of the name and address of the shipper or shippers to such importer
or consignee by using the following procedures:
An importer or consignee, or authorized employee, attorney or official
of the importer or consignee, must submit a certification claiming confidential
treatment of its name and address. The name and address of an importer
or consignee includes marks and numbers which reveal the name and address
of the importer or consignee. An importer or consignee may file a certification
requesting confidentiality for all its shippers.
There is no prescribed format for a certification. However, the certification
shall include the importer's or consignee's Internal Revenue Service Employer
Number, if available. There is no requirement to provide sufficient facts
to support the conclusion that the disclosure of the names and addresses
would likely cause substantial harm to the competitive position of the
importer or consignee.
The certification must be submitted to:
Disclosure Law Officer
Headquarters
Customs and Border Protection
1300 Pennsylvania Ave., NW
Washington, DC 20229
Each initial certification will be valid for a period of two years from
the date of receipt. Renewal certifications should be submitted to the
Disclosure Law Officer at least 60 days prior to the expiration of the
current certification. Information so certified, may be copied, but not
published, by the press during the effective period of the certification.
An importer or consignee shall be given written notification by CBP of
receipt of its certification of confidentiality.
To ensure that requested information deleted from public disclosure,
the importer or consignee should ensure that the company's name and shipper's
name is identified to CBP in all known variations that may be used on
shipping documentation such as bills of lading, purchase orders and manifests.
The computer searches for the exact spelling that is included on the request
for confidentiality and any variations of the company/commercial party
name not specified in the confidentiality request may not be deleted from
the public disclosures.
| D) How long does it take
to process a request for confidentiality under Section 1431? |
Answer: Presently, it takes
between 1 to 5 days from the time of receipt of a request to the time
the request is processed and placed into the system. Protection is effective
once the information is placed into the system, and the requestor will
be notified that this has been done. CBP processes requests on a daily
basis. CBP will continue to carefully monitor the cycle time of processing
these requests to ensure that they are handled in an expeditious manner.
6. Non-AMS
Carriers:
How does the rule accommodate those who do not presently have access
to the Automated Manifest System? |
Answer: Carriers that are not
automated will be required to submit a paper cargo declaration 24 hours
prior to lading at the foreign port. NVOCCs that are not automated will
be required to submit their cargo declarations to the carrier for input
into AMS, 24 hours prior to lading at the foreign port.
7. C-TPAT:
A) How will it be advantageous to be a C-TPAT participant under this
rule? |
Answer: CBP expects that its
partners in C-TPAT will provide the required information under this rule
as a regular part of their security-related procedures. Accurate and timely
cargo declarations are critical to the delivery of the cargo release benefits
that are part of C-TPAT participation. While C-TPAT participants will
not be excluded from the advance reporting requirements, their participation
in the program will be taken into account during the targeting process.
| B) Will C-TPAT participation
by a carrier or a NVOCC be a mitigating factor in determining penalties
for violations of the regulation? |
Answer: C-TPAT participation
by the carrier or automated NVOCC will be a mitigating factor for penalties
and liquidated damages.
8.COAC:
How will the consultation process envisioned in the rule and the 2002
Trade Act involve the COAC and non-COAC members? |
Answer: This final rule is
completely separate from the Trade Act of 2002. CBP will notify the trade
community on how it will achieve the requirement to "consult the
trade". This final rule does indicate that CBP will request that
COAC form a sub-committee to act as a consultant on the implementation
of the final rule.
9. Canada/Mexico
Shipments:
Please clarify whether the final rule applies to cargo shipped from
a foreign port to Canada or Mexico and then trucked or railed across
the border to a final U.S. destination. How will CBP address the concern
that cargo may be diverted from ocean carriers to truck or rail carriers
as a means of circumventing the rule? |
Answer: The final rule does
not apply to cargo that is shipped to Canada or Mexico and subsequently
trucked or railed into the U.S., if the vessel does not call on a U.S.
port. CBP has targeting personnel stationed at seaports in Canada and
cooperation with Canadian authorities has been excellent. If either Customs
administration suspected that goods were being routed in an attempt to
evade scrutiny, those goods would likely be treated as high risk. For
vessels that are departing Canada or Mexico with cargo destined for the
United States, the 24 hour rule does apply.
10. Containers
at Dock:
In response to concerns from the trade that containers will have to
be delivered to a carrier several days before lading, CBP has said
that it wants the information on cargo delivered earlier, not the
container. Will CBP mandate that carriers enter information about
a container on a manifest before the carrier has actually received
the container? |
Answer: CBP is not mandating
that carriers submit cargo declaration information to CBP prior to receiving
the container. That is a business decision for the carrier to determine.
Many comments received stated that the container had to be physically
located at the foreign port (dock) in order for the carrier to transmit
the cargo declaration to CBP. CBP was clarifying that, for CBP purposes,
the container did not have to be physically located at the dock for the
carrier to transmit the cargo declaration to CBP.
11. Liability:
If a container is examined by CBP, either in the United States or
at a foreign port, and the manifest description of the contents is,
in CBP opinion, inaccurate, will the carrier be held liable for penalties
or liquidated damages? What does CBP recommend carriers do to protect
themselves from misleading descriptions on bills of lading? |
Answer: Yes, in the stated
circumstances, carriers can be held liable for penalties and NVOCC's can
be held liable for liquidated damages. Carriers should establish business
relationships with shippers to ensure accurate information is provided.
If a carrier or NVOCC believes that port director is not following the
minimum standards or has set an unreasonable bond amount or have any other
questions concerning bonds, they should contact Donald Yando, Branch Chief,
Entry and Drawback Management, at (202) 927-0300.
| A) What are the mitigation
guidelines for an NVOCC bond? What is the proposed penalty and potential
mitigation if the information is not supplied, if it is supplied but
untimely, if it is supplied but CBP finds it to be too general and
potential liabilities if the information is inaccurate? Who is responsible
the carrier or NVOCC if it relied on the information supplied by the
shipper (product description and/or HTS number, quantity, etc)? Assuming
that the carrier had no actual knowledge that the goods in the container
were other than as described or that any of the other information
might be inaccurate, who is liable? It is assumed that surety companies
will only be held liable for claims under these new provisions for
bonds issued on or after the effective date of the new regulations.
Is that assumption correct? If so, can the field receive appropriate
notification to avoid unnecessary claims? |
Answer: Currently, CBP is formulating
policy with regard to the assessment of penalties and claims for liquidated
damages. Once the assessment policy has been approved, CBP will establish
mitigation guidelines. The final rule indicates that in addition to penalties
applicable under other provisions of law, carriers may be liable for civil
penalties under 19 USC 1436 and NVOCCs may be liable for liquidated damages
under 19 CFR 113.64(c).
The party that provides the cargo declaration information to CBP is responsible
for ensuring that the information is accurate. CBP will initially use
informed compliance with the carriers, but if repeated violations occur
CBP may assess penalties or claims for liquidated damages.
The assumption is not correct that sureties will only be held liable
under bonds issued on or after the effective date.
Current bonds guarantee payment of penalties and will be used and claims
will be filed against these active bonds.
| B) Who is required to obtain
an international carriers bond? |
Answer: NVOCCs that are transmitting
their cargo declarations electronically to CBP, whether directly or through
the use of a service provider or port authority, must obtain an international
carriers bond. Once a bond is on file with CBP it is good for all ports
of entry.
| C) How is the type 3 CBP
International Carrier Bond amounts set? |
Answer: AMS participants, including
NVOCCs, are required to have a type 3 CBP International Carriers Bond.
CBP has issued guidelines on these bonds to our field offices. The minimum
bond amount has been established at $50,000.00, but the amount may be
higher. Actual bond amounts are determined by the port director where
the bond is filed and are based on risk.
| D) How are type 2 Custodial
Bond amounts sets and what is the fee to obtain one? |
Answer: AMS participants are
required to have a type 2 Custodial Bond if business practices involve
creating in-bond shipments, initially bond requirements will be set in
the amount of $50,000. However, Port Directors may increase the bond amount
at their discretion. If you do not have a Custodial Bond, contact a surety
company from a list of Treasury approved surety companies that are listed
at: www.fms.treas.gov/c570/index.html/
to obtain a bond. Information on the bond requires that foreign entities
have a CBP assigned number. Request for CBP Assigned numbers must be made
on CF 5106 "Importer ID Input record", the form can be found
on the CBP web site: www.customs.gov.
Completed forms should be sent to the Entry Branch of the local port for
input into ACS. Upon receipt of a completed CF 5106, CBP will assign an
"Importer Number" to a foreign-based entity. This CF 5106 can
be completed by the foreign entity and submitted to CBP, there is also
a $50 processing fee associated with this transaction. A copy of the form,
with the CBP-assigned number indicated in block 2D, will be returned to
the applicant. This CBP-assigned number will be the identifying number
for the foreign entity on the bond application.
| E) Automated NVOCCs and in-bond
movements. |
1) NVOCC can obtain a Custodial type 2 bond and establish themselves
as a paperless master in-bond participant.
2) NVOCC can approach the ocean carrier or contract with another
bonded carrier and obtain a Power of Attorney to obligate their custodial
bond. The NVOCC would then use an AMS conventional in-bond. The NVOCC
would request and receive authorization to move cargo in-bond by transmitting
through AMS a nine digit in-bond control number and bonded carrier identification
number. It is not necessary to submit the paper CF 7512 at the port of
in-bond origin (port of unlading), but the in-bond documentation must
be presented to CBP at destination. The NVOCC is responsible for ensuring
that the paper CF 7512 is presented to CBP at the destination port prior
to the cargo being released to the consignee or exported as well as arriving
and exporting the cargo in AMS.
3) Contract the in-bond movement to a bonded carrier that will
create a paper CF 7512 to present to CBP at port of origin and destination.
4) Brokers in the ABI module can use the "QP" application
or the "CAFES" application to create In-bond movements against
AMS bills of lading.
Note: CBP will continue to work with the Trade to resolve in-bond
issues as they arise.
13.Automation
Outline:
What is the process a NVOCC/Carrier must go through to automate with
CBP? |
Answer: Participants in AMS
are required to have a Standard Carrier Alpha Code (SCAC) issued by the
National Motor Freight Traffic Association, located in Alexandria, VA.
If they do not have a SCAC, information can be obtained from the web site:
www.nmfta.org/scac2.htm or the association can be called at 703-838-1810.
Once you have received the confirmation letter for your SCAC code from
the National Motor Freight, fax a copy of the letter to CBP, attention
Charles Bennett at (703) 921-7173 and indicate if you are a carrier or
NVOCC.
AMS participants are also required to have a type 3 CBP International
Carriers Bond and a type 2 Custodial Bond if business practices involve
creating in-bond shipments, initially bond requirements will be set in
the amount of $50,000. However, Port Directors may increase the bond amount
at their discretion. If you do not have an International Carriers Bond
or a Custodial Bond, contact a surety company from a list of Treasury
approved surety companies that are listed at: www.fms.treas.gov/c570/index.html/
to obtain a bond. Information on the bond requires that foreign entities
have a CBP assigned number. Request for CBP Assigned numbers must be made
on CF 5106 "Importer ID Input record", the form can be found
on the CBP web site: www.customs.gov.
Completed forms should be sent to the Entry Branch of the local port for
input into ACS. Upon receipt of a completed CF 5106, CBP will assign an
"Importer Number" to a foreign-based entity. This CF 5106 can
be completed by the foreign entity and submitted to CBP, there is also
a $50 processing fee (for type 2 Custodial Bonds only) associated with
this transaction. A copy of the form, with the CBP-assigned number indicated
in block 2D, will be returned to the applicant. This CBP-assigned number
will be the identifying number for the foreign entity on the bond application.
Once this is complete there are three basic ways for an NVOCC to participate
in AMS:
1. Through a service center/port authority:
- A service center/port authority can transmit the NVOCC's data to CBP.
- Their data remains confidential from the operating carrier.
- This is the fastest way to start AMS participation.
2. Purchase a software and communications package from a software
vendor:
- The software vendor will set up required interface software.
- The NVOCC will have to be certified in AMS prior to submitting actual
manifest data.
3. Program their own software interface:
- This process requires a full AMS certification test be completed prior
to submitting actual manifest data.
Interested participants in the Sea Automated Manifest System (AMS) Program
are required to submit a written letter of intention on company letterhead
and include a point of contact, name, title, phone number, e-mail address
and office location. In addition, please identify your interest in Sea
AMS (i.e., becoming a Sea AMS carrier, service center, software vendor,
NVOCC, etc.). This letter can be mailed or faxed to the following location:
Customs and Border Protection
Client Representative Branch
7501 Boston Blvd.
Room 211
ATTN: Sea AMS LOI
Springfield, VA 22153
Phone: (703) 921-7500
FAX: (703) 921-7563
14. Paperless
Master In-bond:
A) How can I become a Paperless Master In-bond (AMS/MIB) participant? |
Answer: To participate in the
Paperless Master In-bond Program the carrier or the NVOCC must acquire
a CBP Type 2 - Custodian Bond. The interested party will then prepare
on their letterhead a request to participate in the program identifying
their assigned IRS# and what in-bond entry types they would like to be
designated to transmit for. They may elect - Immediate Transportation
(IT- entry type 61), Transportation and Exportation (T&E - entry type
62), Immediate Exportation (IE - entry type 63) or all three. The letter
should be provided to their Client Representative for action. The IRS#
will be validated against a bond table existing in ACS and if valid, a
"V#" will be assigned to the carrier or NVOCC. The carrier or
NVOCC will then create a control number using the "V#" and the
in-bond movement will be tracked in AMS. The party initiating the paperless
master in-bond move will then be responsible for the arrival/export of
the movement in the system.
15. Public
Lists:
A) Will CBP make public a list of those NVOCCs who are approved for
AMS manifesting and have obtained an International Carrier Bond? |
Answer: CBP has posted a list
of AMS carriers on the CBP web site. This document is continuously changing
and cannot be used as 100% accurate. NVOCCs will not be authorized to
transmit in AMS without an International Carriers Bond.
| B) Will CBP publicize what
third party service providers are available to perform NVOCC electronic
manifest filing in AMS, as vessel carriers may have difficulty performing
this function? |
Answer: A listing of 3rd party
service providers can be found under the heading of Sea AMS Data Processing
Services on the following CBP web site:
http://www.customs.treas.gov/xp/cgov/import/operations_support/automated_systems/ams/
This document contains 2 attachments. The first is a list of service
centers, port authorities, and software vendors that presently have the
capability to provide carriers/NVOCC's with an interface to CBP. The second
is the Sea AMS Respondent Checklist that interested parties must complete.
This one page document should then be faxed to the number provided (703)
921-7563 and a client representative will then be assigned to work with
the company.
16.Earlier
Security Screening for Transshipments:
Some ocean carriers have expressed an interest in how they could have
security prescreening done by CBP before the first leg of a voyage
of a container that will be transshipped. For example, Carrier agrees
to transport a container from Karachi to LA. The first leg of the
voyage is on Vessel A from Karachi to Singapore. It is then loaded
in Singapore onto Vessel B that sails for LA. Under this regulation,
the security screening is done before Vessel B loads in Singapore.
If there is a problem with the container, it is now stuck in Singapore.
Is there a way for a carrier to have the option to have the security
screening done at the first port of loading, so that if there is a
problem, the container will not begin the voyage until the problem
is addressed? |
Answer: CBP would eventually
like to receive this information, but current limitations in the AMS system
does not allow for this type of transaction. With the development of ACE,
CBP will be looking to accept this type of electronic information.
17. "Do
Not Load" Procedures:
A) When and how will "do not load" messages be implemented
by CBP? |
Answer: : In support of the
24 Hour Manifest Filing Requirement of the Office of Field Operations
and to better inform the trade participants in the Sea Automated Manifest
System application, two new disposition codes have been programmed in
AMS by CBP. Effective immediately CBP will issue dual "do not load"
messages, one being in AMS and the other will be done telephonically/fax
or email. Understanding the importance of the critical nature of this
programming, Headquarters is going to authorize a 30 day implementation
period. All participants of the Sea AMS application must have this programming
in place on March 4, 2003, at this time CBP will only issue "do not
load" messages in AMS, for all automated participants.
Disposition code: 6H - Do Not Load.
Disposition code: 6I - Release of the Do Not Load Message.
These new disposition codes will be generated as the result of CBP input
and refer to the status of cargo intended for a vessel arriving in or
transiting CBP territory.
Upon receipt of the 6H disposition code in the R02 record of the "RC"
status notification or in the X4 segment of the 350 transaction set in
X12/TDCC format, the Sea AMS participant must prevent the loading of the
container or containers referenced in the R05 record(s) of the "RC"
set or in the N7 segment of the 350 set.
Loading of the subject container may resume after receipt of the 6I (6-eye)
disposition code that will be sent in either the CAMIR (RC) or X12/TDCC
(350) formats as appropriate to the trade participant.
For additional information, please contact your ACS Client Representative.
| B) When the targeting identifies
a container that warrants inspection in a non-CSI port, what procedures
will be used to inspect and subsequently clear the container for loading
aboard the vessel? |
Answer: CBP will coordinate
with foreign customs authorities in each CSI and non-CSI port regarding
how it will clear cargo that has been given a "do not load"
message. Foreign governments will perform inspections at CSI and non-CSI
ports. Immediately after the foreign government notifies CBP that the
shipment is cleared, CBP will remove the "do not load" message
in AMS. For non-automated carriers, the party that submitted the cargo
declaration to CBP will be notified telephonically/fax or by email.
CBP will coordinate with foreign customs authorities in each CSI and
non-CSI port regarding how it will clear cargo that has been given a "do
not load" message.
| C) How will CBP clear cargo
that has been given a "do not load" message in CSI and non-CSI
ports? |
Answer: CBP will coordinate
with foreign customs authorities in each CSI and non-CSI port regarding
how it will clear cargo that has been given a "do not load"
message. Foreign governments will perform inspections at CSI and non-CSI
ports. Immediately after the foreign government notifies CBP that the
shipment is cleared, CBP will remove the "do not load" message
in AMS as well as notify the carrier/NVOCC by telephone/fax or by email
until March 4, 2003. For non-automated carriers, the party that submitted
the cargo declaration to CBP will be notified telephonically/fax or by
email.
18. Diversion
to a Foreign Port:
A) If cargo has been cleared to sail to the U.S. from a foreign port
and the vessel carrier decides to divert by dropping cargo in Freeport,
Bahamas to load aboard another vessel for subsequent entry to the
U.S., would the vessel carrier be required to file another 24 hours
advance manifest for that cargo? |
Answer: Carriers will have
to amend the previous bill indicating to CBP the change in vessel information.
This cargo would have to once again comply with the 24-hour rule.
| B) What would happen if a
carrier drops a Canadian first port of call, and comes directly to
the U.S. with Canadian destination cargo aboard that has not been
subjected to the 24 hour advance manifest filing obligation (ex. operational
decision to bypass Halifax due to North Atlantic storm)? |
Answer: Carriers must notify
CBP at the designated first port of arrival as soon as they realize they
are not going to make the foreign port of call. The carrier should then
transmit the manifest with corrections indicating the missed foreign port
of call. Upon arrival in the U.S. port the cargo declaration will be placed
on hold until CBP has had the opportunity to review the documentation,
any examinations will be conducted and appropriate penalties may be issued.
If CBP determines that this has become a common occurrence for vessels
this could eventually lead to denying the permit to unlade. Additionally,
CBP will notify the Coast Guard of the vessel with unmanifested cargo
that is scheduled to arrive.
| C) A shipper may change cargo
destination after vessel loading; an amendment to the manifest will
be required. How will this be handled? |
Answer: Amendments will be
done under the current procedures. The Notice of Proposed Rule Making
for manifest discrepancies has not been published. However, be aware that
any change to the original information may affect our risk assessment
of the cargo and could result in an examination.
19. FROB:
A) If a shipper changes the cargo destination from FROB to an U.S.
port after the vessel has sailed, can that be handled through a manifest
correction? |
Answer: Yes, manifest corrections
will be handled as a manifest discrepancy. Since the cargo was FROB and
falls under the 24 hour requirement, information would have already been
received 24 hours before lading. However, the shipment is subject to screening
and examination due to the change in the information.
| B) What data elements are
required for FROB? |
Answer: FROB cargo is cargo
that is loaded in a foreign port and is to be unloaded in another foreign
port with an intervening vessel stop in one or more ports in the United
States. All of the data elements required under the regulation must be
provided for FROB cargo. CBP recognizes that for FROB cargo, the actual
shipper, consignee and notify party may not be associated with an address
in the United States. Therefore, CBP would not require an U.S. address
on these data elements.
20. Paper
Manifest Onboard:
Please clarify which carriers participating in CBP' AMS advance cargo
manifest filing will have to have a paper copy of the manifest on
board the vessel (in contrast to be able to provide one upon request). |
Answer: This issue touches
on a number of CBP regulations and policies, such as the paperless manifest
test, that are currently under review. But recognizing the business interests
at stake, in the near term, CBP has decided not to enforce the paper cargo
declaration (CF 1302) rule for formal entrance if a carrier or NVOCC has
successfully automated. However, one must be provided upon request by
CBP. In addition, the remaining documents comprising the vessel manifest
must be available for presentation upon entry of the vessel. CBP will
periodically assess this policy to ensure that it is not having an adverse
effect on operations.
21. Coast
Guard Rulemaking:
The final rule makes clear that "by requiring the submission
of cargo declaration information 24 hours prior to lading, CBP is
eliminating the requirement for vessel carriers to submit an additional
cargo declaration upon arrival in the United States." The Coast
Guard has before it a proposed rulemaking that would require cargo
manifests to be filed with CBP 96 hours before vessel arrival. Now
that CBP has finalized its rule, the Coast Guard rule has been overtaken
by events. Will CBP please inform the Coast Guard that its proposed
96 hour rule should not apply to any carrier that is filing in AMS
and complying with the new CBP advance manifest filing requirements?
|
Answer: CBP will require only
one electronic manifest to be submitted by the carrier and will work with
the Coast Guard to coordinate this transmission. The presentation of the
paper manifest will have to be available to both agencies.
22. AMS/Batch
Filing:
A) Currently each manifest has one CF 1302 filing. Please explain
how AMS will handle multiple CF 1302 filings for the same vessel. |
Answer: The current AMS system
does handle multiple cargo declaration filing as amendments from each
port, if the vessel and voyage number are the same. If the vessel or voyage
number changes the cargo declarations must be deleted and re-added with
the new vessel and voyage number.
| B) The Comments state that:
"The vessel AMS program was not designed to allow for the transmission
of individual bills of lading, and such transmissions must be sent
by batch." For the advance filing obligation under these rules,
does batch filing require a single batch containing all containers
to be loaded at a loading port, or can a carrier file more than one
batch for a single loading port? (Example: file one batch 48 hours
before loading and one additional batch 24 hours before loading.) |
Answer: The example provided
is correct. The carrier can file more than one batch for the same port
on the same vessel and voyage.
23. Perishables:
A) What is considered "perishable merchandise" for purposes
of the 24 hour rule? |
Answer: For purposes of this
regulation, the term "perishable merchandise" is defined as
merchandise that is organic and produced for human consumption that is
not frozen, subject to spoilage and requires controlled temperature during
transportation, such as fruits, vegetables, and meat and fish products.
| B) Many perishable commodities
(e.g., bananas, pineapples) are harvested and loaded within the 24-hour
time window before vessel loading. Information (such as final seal
number, precise quantity, and container number) will be preliminary
24 hours before vessel loading. How should this be handled? |
Answer: The majority of the
data elements should be known, the only unknown data elements would be
the exact weight and quantity. To address weight and quantity concerns,
CBP has concluded that in the case of perishable merchandise, the carrier/NVOCC
must provide CBP with a good faith estimate of the quantity and weight
24 hours before loading. CBP will allow a discrepancy tolerance of plus
or minus 5%; if the good faith estimate is within this range, CBP will
not require the manifest to be amended. With respect to other matters,
CBP fully expects that the industry can adapt their business practice
to designate a specific container and seal that will be used on a specific
bill of lading and provide that information 24 hours prior to lading.
| C) Would CBP consider amending
the regulation to classify all perishables as break bulk, permit overbooking,
or shorten the advance filing time? |
Answer: Much of the perishable
industry operates utilizing containers. Therefore, it is not possible
to authorize a break-bulk exemption for the perishable community as a
whole, although perishables that are not containerized and otherwise meet
the definition of break bulk may seek an exemption. As for overbooking,
this is a practice that CBP has worked very hard over the years to eliminate
and it would be extremely difficult for both the industry and CBP to maintain
proper documentation of overbooked cargo. Accordingly, CBP will not permit
this practice for perishables. CBP does not agree with reducing the 24
hour reporting requirement, as there are other mechanisms for addressing
the concerns raised by perishables, as discussed above.
24. Equipment
Change:
If a refrigerated container's cooling system fails after the CF 1302
has been filed, but prior to loading, can the carrier reload the perishables
into a new reefer container, affix a new seal, load the container
aboard the vessel, and correct the manifest information? |
Answer: CBP will allow for
changing of equipment due to failure. Carrier must file a Manifest Discrepancy
Report to correct the container/seal #. Once CBP has been notified by
the carrier, the exact procedures will be determined on a case by case
basis.
25. AMS
Acknowledgement of Manifest Receipt:
A) After the carrier submits the manifest, CBP currently returns an
acceptance message that confirms receipt of the manifest data, quantity
of BLs accepted, and quantity of BLs rejected. Can vessel carriers
expect to receive this same message for manifest information submitted
under the 24-hour regulation? |
Answer: Yes, procedures will
be the same. The carriers will receive these same messages.
| B) How will manifest receipt
message relate to NVOCC cargo, and what information will the vessel
carrier receive regarding the NVOCC's filing? |
Answer: The information that
the vessel carrier receives today for automated slot charters will be
the same information that the vessel operating carrier will receive. Please
refer to previous answer.
26. Manifest
Discrepancy:
A) Does CBP have any forecasted time when the new rules will be proposed
for manifest discrepancy reports? |
Answer: CBP is continuing the
review of the proposal within CBP.
| B) Between now and then,
is there any informal guidance CBP would offer to vessel carriers
regarding how to deal with these issues? |
Answer: Current procedures
apply and can be found within 19 CFR 4.12.
27. CBP
Operations:
A) Will CBP be manned 24/7 to process all manifests and provide the
necessary hold responses? |
Answer: CBP will provide the
carriers with a designated location at CSI and local CBP ports to submit
paper cargo declaration. The designated location will be a secured manner
to be determined by the ports. Carriers and NVOCCs that do not receive
a hold message within the 24-hour time frame after presentation of the
cargo declaration will be allowed to load the cargo.
| B) How will the 24-hour rule
operate during AMS downtime? |
Answer: CBP is required to
initiate scheduled downtime for system maintenance and updates. Those
times are generally in two or three hour increments and are regularly
occurring events or are announced well in advance. For regularly scheduled
downtime, which meets the definition above, carriers/NVOCCs should file
enough in advance to ensure that CBP has the entire 24 hour period prior
to loading. The regularly scheduled downtimes are as follows:
- Saturday 0500-0700 EST
- Saturday 2300 into Sunday 0300 EST
- Sunday 2200 into Monday 0200 EST
- Wednesday 0500-0700 EST
Unscheduled or unanticipated downtime in AMS is rare and is generally
for a short duration. However, in the event that CBP system is unexpectedly
down, CBP will grant "credit" to the carrier in the amount of
time the system is down. In other words, the start of the 24 hour clock
will not be delayed by AMS downtime. Carriers/NVOCCs will need to verify
with CBP that the system is down in the event no message is sent to the
carrier/NVOCC after the 2 hour window has expired. In the meantime the
carrier should troubleshoot their own operations to ensure that their
system is working properly. If a service provider is being utilized the
carrier/NVOCC should ensure that the information is submitted timely.
After the 2 hours has expired, the carriers should contact the CBP help
desk.
The appropriate means of verification is to contact the CBP help desk
at (703) 921-6000, which is a 24 hours a day, 7 days a week operation.
The CBP help desk will verify for the carriers/NVOCCs that the system
was down at the time of transmission, record the time of carrier/NVOCC
call, and, if available, give an expected time of when AMS will be up.
The time credited will be based on the time of the transmission. For example,
"if a carrier were to transmit to CBP at 0800 on March 1, 2003, and
the carrier did not receive an acceptance message from CBP, the carrier
would need to verify that the system was down at the time of transmission,
and the CBP help desk would make note of the call. If the system then
came back up at 1100 on the same day, the carrier would be credited time
from 0800 and be allowed to load the container at 0800 the following day,
March 2, 2003".
Only in rare circumstances will Carriers/NVOCCs need to re-transmit in
AMS, the original transmission will be kept and processed in the order
that it was received once AMS is working. In the rare event that the system
is down for an extended period of time and the entire 24 hours prior to
loading period has expired, the carrier may load the container(s) in question.
CBP will perform its targeting once the AMS system is working and any
actions resulting from "holds" will be performed in the U.S.
If the targeting results in a very high-risk container having been loaded
on the vessel during the downtime procedures, CBP may prevent the unlading
of the container at the first port, or if the risk is extremely high,
may require the container to be offloaded prior to arrival in the U.S.
The latter situation is expected to be extremely rare. But it is a possibility
of which the trade should be aware. In the highly unlikely event that
the system is still down when the vessel arrives at the first port of
unlading in the U.S., a paper manifest will be required at the time of
arrival.
28. Vessel
Sharing Carriers:
It seems reasonably clear that cargo given a "do not load"
will be communicated by CBP to the filing vessel carrier, which may
or may not be the vessel operator. Vessel carriers will need to develop
good communication systems amongst themselves to ensure that such
hold notices are communicated in a timely manner prior to loading,
and that their respective responsibilities and liabilities are clear.
While such agreements may work amongst vessel carriers sharing
ships, this model would not be satisfactory for communications between
vessel carriers and NVOCCs regarding "do not load" messages.
|
Answer: CBP will issue dual
"do not load" messages, one being in AMS and the other will
be done telephonically/fax or email. Understanding the importance of the
critical nature of this programming, Headquarters is going to authorize
a 30 day implementation period. All participants of the Sea AMS application
must have this programming in place on March 4, 2003, at this time CBP
will only issue "do not load" messages in AMS. The NVOCC/carrier
will be responsible for ensuring that the cargo is not loaded on board
the vessel.
29. Data
Element #6 - Port:
Item (vi) requires the filing carrier to state: "The first foreign
port where the carrier takes possession of the cargo destined to the
United States". Does "foreign port" mean "port"
or place where the filing carrier takes possession. For example, Carrier
contracts to move container from Berlin to Chicago under a through
transportation contract. Carrier picks up container in Berlin, trucks
it to Hamburg. The carrier loads it aboard the vessel in Hamburg,
sails to Southhampton, and then New York. In this case, is item (vi)
Berlin (the place where the carrier takes possession) or Hamburg (the
first foreign port)?
It is assumed that item (i) - "the last foreign port before
the vessel departs for the US" - is Southhampton, and item
(xi) - "the foreign port where the cargo is laden on board"
- is Hamburg.
|
Answer: The example and assumptions
made are correct. For data elements (i) - "the last foreign port
before the vessel departs for the US" (NEW DATA ELEMENT)- is Southhampton,
(vi) - "the first foreign port where the carrier takes possession
of the cargo destined to the United States"- is Berlin and (xi) -
"the foreign port where the cargo is laden on board"- is Hamburg.
30. Data
Element #7 - Cargo Description:
Item (vii) requires a "precise description and weight of the
cargo or, for a sealed container, the shipper's declared description
and weight of the cargo."
A) Carriers commented on and fully supported the regulation providing
that a carrier can rely on "for a sealed container, the shipper's
declared description and weight of the cargo". Please confirm
that CBP does not intend to penalize carriers for shippers' containerized
cargo misdescriptions. |
Answer: The party that provides
the cargo declaration information to CBP is responsible for ensuring that
the information is accurate. CBP will continue to use the same guidelines
for sealed containers and shipper's load and count. CBP will initially
use informed compliance with the carriers, but if repeated violations
occur CBP may assess penalties as outlined in 19 CFR 4.3a.
|
B) What constitutes a precise description of the cargo? In the
case of chemical compounds and mixtures, are formulas necessary?
|
Answer: The regulation requires
a precise narrative description of the cargo or the 6 digit tariff number
for those with the skill to provide it correctly. If there is doubt about
the accuracy of a 6 digit tariff number, which can sometimes be difficult
to ascertain, a precise narrative description should be used.
A precise narrative description is a description that is precise enough
for CBP to be able to identify the shapes, physical characteristics, and
likely packaging of the manifested cargo so that CBP can identify any
anomalies in the cargo when a container is run through imaging equipment.
The description must also be precise enough to identify any goods, which
may emit radiation. How specific that information must be depends on the
nature of the commodity. For example, "electronics" is not a
precise description, but "CD players" or "computer monitors"
would be.
CBP will continue to work with the trade to refine what descriptions
are acceptable. CBP will not begin its enforcement actions with descriptions
where the required level of precision is not clear. CBP will continue
to notify the carriers when these more difficult commodities are not adequately
described. However, cargo descriptions are one of the most important elements
to assist CBP in precise targeting, and it is in the trade's interest
to become precise and compliant as quickly as possible. Not only will
this avoid eventual enforcement action, but it may also avoid container
"do not load" message and "holds" due to CBP not being
comfortable that it knows what is in the container.
To be clear, IN NO CASE is a blank description, freight all kinds (FAK),
said to contain (STC) with or without other description, general merchandise,
"26 pallets", various retail merchandise, consolidated cargo
or other similarly vague descriptions acceptable. On February 2, 2003,
CBP began initiating strong enforcement actions in cases where these kinds
of general descriptions, which have continued during the transition period.
The following terms are meant to be used as a guide. They are illustrative,
not exhaustive, examples of acceptable and unacceptable descriptions.
Phrases or words in parenthesis are meant as examples.