Tuesday, November 19, 2002
RE: U.S. Customs 24 Hour Advance Manifest Rule

1. What is this new rule?

• The U.S. Customs Service has implemented a new Advance    Manifest Rule, effective December 2, 2002, that will require    significant changes to the shipment documentation process for all    cargo on vessels calling the United States. The purpose of the new    rule is to screen cargo before it is loaded so that U.S. Customs can    decide on its loading / no loading status in advance.

2. How can client’s best manage their new responsibilities?

• If you haven’t already signed up for the U.S. Customs C-TPAT    program    we encourage you to do so. U.S. Customs has    indicated C-TPAT membership will be given favorable    consideration in the targeting process.

3. What is the scope of this rule?

• The regulations apply to all vessels that will call at a U.S. port. The    regulations apply regardless of whether the loading port is a CSI    (Container Security Initiative) port. The regulations apply to all    cargo being loaded aboard the vessel, whether US or foreign    destination cargo. The regulations do not apply to bulk shipments,    as defined in the regulations. Breakbulk shipments may be    exempted if an exemption application is submitted and approved.    The regulations do not apply to feeder or transshipment vessels    that are not calling the U.S., but the advance manifest requirements    will apply before the cargo is loaded on the vessel that will actually    call the U.S.

4. What is the effective date?

• December 2, 2002. U.S. Customs penalties for noncompliance    (except fraud) will not be imposed until February 1, 2003.

5. What data is required by U.S. Customs?

• 14 items are required:

1. The last foreign port before the vessel departs for the United     States. 2. The carrier SCAC code (the unique Standard Carrier Alpha Code     assigned for each carrier (including each NVOCC). 3. The carrier-assigned voyage number. 4. The date the vessel is scheduled to arrive at the first U.S. port in     U.S. Customs territory. 5. The numbers and quantities from the carrier's ocean bills of lading     based on the cargo description provided by shipper, either master     or house, as applicable (this means that the carrier must transmit     the quantity of the lowest external packaging unit; containers and     pallets are not acceptable manifested quantities; for example, a     container containing 10 pallets with 200 cartons should be     manifested as 200 cartons). 6. The first foreign port where the carrier takes possession of the     cargo destined to the United States. We have requested more     details from U.S. Customs. 7. A precise description (or the Harmonized Tariff Schedule (HTS)     numbers to the 6-digit level under which the cargo is classified if     that information is received from the shipper) and weight of the     cargo or, for a sealed container, the shipper's declared description     and weight of the cargo. Generic descriptions, specifically those     such as "FAK" ("freight of all kinds"), "general cargo", and "STC"     ("said to contain") are not acceptable. We have requested more     details from U.S. Customs. 8. The shipper's complete name and address, or identification     number, from all bills of lading. (The identification number will be     a unique number assigned by U.S. Customs upon the     implementation of the Automated Commercial Environment). 9. The complete name and address of the consignee or the owner or     owner's representative, or identification number, from all bills of     lading, based on the information provided by the shipper. (The     identification number will be a unique number assigned by U.S.     Customs upon implementation of the automated Commercial     Environment). 10. The vessel name, country of documentation, and official vessel       number. (The vessel number is the International Maritime       Organization number assigned to the vessel). 11. The foreign port where the cargo is laden on board. 12. Internationally recognized hazardous material code when such       materials are being shipped. 13. Container numbers. 14. The seal numbers for all seals affixed to containers.

6. What procedures should clients be focusing on now?

• Ensure your overseas shippers communicate all required    information (see section above) to us at least 36 hours before the    vessel cargo cutoff. • Be as specific as possible with the cargo description on all    documentation.

7. Can U.S. Customs ask for additional information even if all cargo
    details are correct?

• Yes.

8. Can the shipping instructions/bill of lading details be changed after
    vessel departure?

• The current rules allow for some changes and U.S. Customs has   agreed to initiate more specific rules by the end of the year.

9. If U.S. Customs decides to hold my shipment for inspection and or
    additional information how will I be notified and when?

• Details are still being worked out with U.S. Customs. • U.S. Customs will initiate penalty actions against the entity    providing the information.

10. Who is liable for error in cargo information?

• U.S. Customs will initiate penalty actions against th entity providing    the information.

11. What is the policy towards cargo entering the United States from
      Canada and Mexico?

• If cargo is arriving via water, then the same procedures discussed    above apply. U.S. Customs will clarify what their policy is towards    cargo trucked in from Mexico and Canada.

12. What happens if I have ten containers on one B/L and U.S. Customs decides to hold one container – will the other nine load?

• Yes, we will load all containers that have been cleared for loading.

13. Where can I find additional information on the rule?

• U.S. Customs www.uscustoms.treas.gov • World Shipping Council www.worldshipping.org

14. What is the rule’s impact to NVOCC’s (Non Vessel Operating Common       Carrier)?

• The issues involving NVOCC’s are complex and require further   clarification by U.S. Customs.

Currently, the regulations provide NVOCC’s’ cargo descriptions and house bill of lading to be filed electronically in AMS:

• by the NVOCC’s obtaining a bond and employing an automated   system, • by the NVOCC: filing through the ocean carrier AMS system to file    the cargo declaration and house bill of lading information, • by the NVOCC: using an automated NVOCC to file the information    for it; or • by the NVOCC: using an automated third party filing service.

15. How will the U.S. Customs Automated Manifest System (AMS) handle acknowledgements / holds:

• U.S. Customs stated that it will continue the current practice of    notifying filing carriers with an acceptance message that confirms    receipt of the manifest data, quantity of B/Ls accepted, and    quantity of B/L’s rejected. At this time, how this will relate to    NVOCC cargo is unclear.

16. Will U.S. Customs be staffed 24/7 including holidays to handle this new
      process?

• U.S. Customs recognizes this as an issue and will decide on their    future staffing policy.

17. Are shipments from Asia to Europe affected?

• No the rulemaking is only relevant for cargo movements to the    United States or for cargo remaining on board vessels passing    through U.S. ports.These rules will continue to be honed by U.S.    Customs, and we will keep you informed of further developments.    Should you have questions or require any assistance with this    change, please contact NASA at 1-732-388-6265.

Kind regards,
Judy Mannix, Administrator
North American Shippers Association