New Development
On January 2, 2008, U.S. Customs and Border Protection ("CBP") published a Notice of Proposed Rulemaking ("NPRM") in which it proposed new cargo reporting requirements via electronic transmission for both importers and carriers of cargo transported by vessel to the United States. These requirements, known as the "10+2" program for reasons described below, are the latest stage in the evolution of the Automated Targeting System ("ATS") and will enable CBP to better assess and identify high-risk shipments to help prevent terrorist weapons from being transported to the United States. Comments are due on March 3, 2008: http://a257.g.akamaitech.net/7/257/2422/01jan20081800/edocket.access.gpo.gov/2008/E7-25306.htm
Background
U.S. law requires that vessels bound for the United States and required to make entry provide certain manifest information electronically to CBP 24 hours prior to lading containerized and non-exempt break bulk cargo at foreign ports. This has been commonly known as the "24-hour rule." On October 13, 2006, Section 203 of the Security and Accountability for Every Port Act of 2006 (P.L. 109-347) ("SAFE Port Act") entered into force and requires CBP to require the electronic transmission of additional data elements in the 24-hour submission for improved high-risk targeting under ATS. This NPRM proposes the mechanism to carry out these requirements.
The 10+2 Program
The proposed new requirements, separated into 10 importer requirements and 2 carrier requirements (the "10+2" program), would require importers and carriers to file data sets which they currently do not file. For clarity purposes, the requirements for importers and carriers are separated below.
Importer Requirements (The "10" Of The "10+2")
Importers would be required to submit an "Importer Security Filing" 24 hours before cargo is laden aboard a vessel destined for the United States (information on foreign cargo remaining aboard the vessel could be reported any time prior to lading) which contains the following 10 data elements:
- Manufacturer (or supplier) name and address;
- Seller (or owner) name and address;
- Buyer (or owner) name and address;
- Ship-to name and address;
- Container stuffing location;
- Consolidator (stuffer) name and address;
- Importer of record number/ foreign trade zone applicant identification number;
- Consignee number(s);
- Country of origin; and
- Commodity Harmonized Tariff Schedule number.
Since importers have never before been subject to such requirements, providing this information 24 hours prior to their cargo being laden aboard a vessel may result in a number of logistical challenges and potential delays.
Carrier Requirements (The "2" Of The "10+2")
Carriers would be required to provide (1) a vessel stow plan for vessels destined for the United States and (2) container status messages, which report container movements and changes in status (e.g., empty or full). CBP must receive the stow plan for vessels transporting containers and/or break bulk cargo no later than 48 hours after departure from the last foreign port (or prior to the vessel's arrival at the first U.S. port for voyages less than 48 hours in duration). Bulk carriers carrying exclusively bulk cargo would be exempted from these regulations. CBP is also proposing that carriers submit container status messages daily for certain events relating to U.S.-bound vessels with containers.
Conclusion And Recommendation
This rulemaking could have substantial effects on the flow of goods and could result in cargo delivery delays for shipments bound for the United States. Concerns have also been expressed about how CBP will protect the confidentiality of information submitted in accordance with the NPRM. All companies and individuals involved in the importing and shipping of goods from foreign ports into the United States should review and consider commenting on the proposed rule.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
