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The following is a short compilation by SCM
Lines of the most frequently asked questions in regards to
the 24 HOUR ADVANCE VESSEL MANIFEST RULE as answered
by the US Customs Border & Protection agency. The purpose
of this page is to introduce you to the subject and point
you in the right direction should you need more specific information. Click here to access the downloadable document containing
the full FAQ from CBP's website.
24 Hour Rule FAQs
What is the 24 Hour Advance Vessel Manifest
Rule?
Since when has this rule been effective?
What will be the enforcement strategy
of this rule by Customs Border & Protection (CBP)?
Important information about paper manifest onboard
Important information about Coast Guard Rulemaking
Important information about Mexico/Canada Shipments
What is the 24 Hour Advance Vessel Manifest
Rule?
It is the requirement for carriers and/or
automated NVOCC's to submit a cargo declaration 24 hours before
cargo is laden aboard the vessel at a foreign port.
Since when has this rule been effective?
The effective date of implementation was December
2, 2002.
What will be the enforcement strategy
of this rule by Customs Border & Protection (CBP)?
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.
Important information about 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).
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.
Important information about 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?
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.
Important information about Mexico/Canada 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?
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.
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