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eHBL – Dramatic Impacts on Terminal and Warehouse Operations

eHBL – Dramatic Impacts on Terminal and Warehouse Operations if Deconsolidation Notices Not Implemented on Time

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http://globalterminals.com/terminals/

Imagine if you will, the thousands of “single or back-to-back’ shipments requiring a ‘Customs stamped’ paper authorizing a container to move off the terminal.

Imagine if you will, the line ups at the counter to have those papers stamped by the CBSA before they are couriered over to the terminal.

 Imagine if you will, the number of new staff the CBSA will need to hire just to handle the stamping of paper for all singles or back-to-back shipments at terminals or airline facilities that have not implemented the D4 Notices – and the Deconsolidation Notice in particular.

 This nightmare scenario is real and it is coming to a terminal near you.

 With the November 7, 2016 coming into force of the eHBL phase of the CBSA’s eManifest program there is a significant change to the ‘release request’ procedures.

 Back-to back’ or “Single” Shipments:  Shipments where the carrier bill of lading is consigned to a freight forwarder and there is an underlying single house bill of lading consigned to an importer.

Today, through a manual work-around or manipulation of the ‘importer/ consignee’, the release request on a single “back-to-back” shipment is made on the primary carrier 9000 carrier code or MAWB.  Because the release request cargo control number (CCN) is the 9000 carrier Cargo Control Number, terminal, airline, railroad IT systems recognize the Customs status and release information etc. against the 9000 CCN or the airline MAWB.

Tomorrow, with the mandatory introduction of the eHBL on all shipments arriving at a Canadian First Port of Arrival as of November 7, 2016 that changes.  The Customs’ release request on ‘back-to-back’ shipments will no longer be on the 9000 CCN.  The release request – and subsequently the RNS and all customs status and messaging will be on the 8000 CCN

If the terminal/ warehouse’s EDI system is not programmed to receive and handle the CBSA D4 Notices – and in particular the Deconsolidation Notice, the terminal will be required to receive, handle and store a paper authorization to allow the container to move. 

There are thousands and thousands of these ‘back-to-back’ shipments moving through Canadian terminals every year.  Unless terminals and airline handlers are prepared to manage these thousands and thousands of new paper “authorized to move’ documents, they must implement the EDI Deconsolidation Notices.

Freight forwarders large and small are preparing to flip the switch to the new eHBL before the November 7, 2016 deadline.  Every organization must be prepared to recognize 8000 CCNs in their EDI system or be prepared to receive, handle and store these additional thousands of paper documents.

Primary warehouse operators are urged to take action immediately with their EDI service provider or in-house IT department to obtain the “Deconsolidation Notices.”  It takes weeks to get through the CBSA TCCU testing – and you must start now.

 Airlines – the same message applies.  Every shipment clearing under the MAWB today will clear under a ‘single’ 8000 eHBL.  It is a big deal.

 For detailed information contact:

E-mail: TCCU-USTCC@cbsa-asfc.gc.ca  Telephone: 1-888-957-7224, Option 1 for EDI transactions / Option 2 for Technical Portal Assistance (Canada or US)

For all other eManifest policy-related enquiries, refer to eManifest client support and contact information.

Service providers tested and in production with CBSA for Notices: http://www.cbsaasfc.gc.ca/eservices/sp-fs/10-eng.html  (Many more are expected within the next few weeks)

The Customs Notice CN 16-17 outlines the requirements and urges freight forwarders to get the Deconsolidation Notice.  Terminals and warehouses must also be prepared or handle the paper consequences.

Our letter on the Deconsolidation Notice is posted at: http://www.ciffa.com/advocacy/regulatory-canada/cbsa/emanifest/

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