FAQ’s

Table of Contents

(Click on page number to see FAQ)

1. Enforcement Date:................................................................................................................ 3

2. Requirement of NVOCCs on December 2, 2002:............................................................. 4

3. Implementation at CSI and Non-CSI Ports:........................................................................ 5

4. Trade Act of 2002:................................................................................................................ 6

5. Confidentiality:....................................................................................................................... 6

6. Non-AMS Carriers:............................................................................................................... 8

7. C-TPAT:................................................................................................................................. 9

8. COAC:.................................................................................................................................... 9

9. Canada/Mexico Shipments:................................................................................................. 9

10. Containers at Dock:............................................................................................................ 10

11. Liability:................................................................................................................................ 10

12. Bonds:................................................................................................................................... 10

13. Automation Outline:............................................................................................................. 12

14. Paperless Master In-bond:................................................................................................. 14

15. Public Lists:......................................................................................................................... 14

16. Earlier Security Screening for Transshipments:.............................................................. 15

17. “Do Not Load” Procedures:............................................................................................... 15

18. Diversion to a Foreign Port:............................................................................................... 17

19. FROB:.................................................................................................................................. 17

20. Paper Manifest Onboard:................................................................................................... 18

21. Coast Guard Rulemaking:.................................................................................................. 18

22. AMS/Batch Filing:................................................................................................................ 18

23. Perishables:......................................................................................................................... 19

24. Equipment Change:............................................................................................................ 20

25. AMS Acknowledgement of Manifest Receipt:.................................................................. 20

26. Manifest Discrepancy:........................................................................................................ 20

27. CBP Operations:................................................................................................................. 21

28. Vessel Sharing Carriers:.................................................................................................... 22

29. Data Element #6 – Port:..................................................................................................... 22

30. Data Element #7 – Cargo Description:............................................................................ 23

31. Data Element #8 – Shipper’s Name and Address:........................................................ 26

32. Data Element #9 – Consignee and To Order Bills:......................................................... 27

33. Data Element #14 --Seals:................................................................................................ 27

34. NVOCCs:............................................................................................................................. 29

35. Data Element Requirements for Vessel Carrier:............................................................. 30

36. Second Notify Party:........................................................................................................... 31

37. Co-loading:.......................................................................................................................... 32

38. Consolidations:.................................................................................................................... 33

39. Clarification of time of transmission of cargo declarations:........................................... 35

40. Geographic Reach:............................................................................................................. 35

41. Bulk and Break Bulk Cargo:............................................................................................... 35

42. Missed Voyages:................................................................................................................ 38

43. RecordKeeping:.................................................................................................................. 38

44. Entry/Entry Summary:......................................................................................................... 39

45. AMS Programming Change:............................................................................................. 39

46. AMS Releases:................................................................................................................... 40

47. Permits to Transfer (PTT):.................................................................................................. 40

48. General Order:..................................................................................................................... 41

49. Duplicate Multiple Bills:...................................................................................................... 43

50. Posting Vessel Arrival in AMS:......................................................................................... 43

51. Consolidators:..................................................................................................................... 43

52. New Bill Type:...................................................................................................................... 44

FREQUENTLY ASKED QUESTIONS

24-HOUR ADVANCE VESSEL MANIFEST RULE

Revised May 5, 2003

Revised Questions: 41,47,51,52

Customs and Border Protection (CBP) has received numerous questions concerning the 24 hour advance manifest regulation, we have provided our response, for now, of the most frequently asked questions. CBP is hopeful that this document will assist the trade community in understanding the expectations of CBP concerning the 24 hour manifest rule. The effective date of implementation was December 2, 2002. Carriers and/or automated NVOCC's are now required to submit a cargo declaration 24 hours before cargo is laden aboard the vessel at a foreign port. CBP will continue to update this list, adding questions and answers. Please continue to monitor this document for changes and updates.

1. Enforcement Date:

A) What will CBP's enforcement strategy be on May 4, 2003?

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.