CSI - FAQ Updates - April 2003

April 22, 2003

The entire FAQ should be read anew as many sections have been updated since their initial publication last year.  Specific attention is drawn to two areas of new information: 

• Tighter enforcement and
• Carrier/NVOCC responsibilities after submitting the initial information.

These areas involve a schedule of increased enforcement and scrutiny by BCP and discussion of additional NVOCC responsibilities concerning handling cargo once it arrives in the US. See FAQ #1 and #45-50.

1.  Tighter enforcement:
The Bureau of Customs and Border Protection ("BCP" or "Customs") (formerly called US Customs) has announced that it will begin tighter enforcement of the 24 hour rule. Until now, BCP has focused its attention on the quality of the description of cargo. Since December 2, 2002, over 1.7 million bills of lading have been transmitted to BCP under the 24 Hour Rule, with only a couple hundred "Do Not Load" messages being issued. Most cargo was able to continue on the scheduled voyage.

The following represent the next steps that are being implemented as BCP phases in stricter enforcement of the 24 Hour Rule:

May 4, 2003:
"Do Not Load" messages will be issued whenever the cargo description is "invalid" (See FAQ 30 for a description of approved and unapproved descriptions). BCP wants the valid cargo description only to be in the description field - do not add other data, such as marks and quantity, in the cargo description field.

May 4, 2003:
Penalties (vessel carriers) and liquidated damages (NVOCCs) will be assessed for egregious violations of the timeliness requirements under the 24 Hour Rule.

May 15, 2003:
"Do Not Load" messages will be issued for egregious violations of the accuracy of the consignee name and address. The consignee is NOT the US NVOCC or other receiving agent. Egregious errors including fields left blank, or the use of "To Order" and  "To Order of Shipper" without corresponding information in the shipper field (e.g., a bank's name and address) and notify party field or shipper name with no address, incomplete address (only city and state) or an invalid address.  (See FAQ 32).

May 15, 2003:
FROB cargo (Freight Remaining On Board) will be subject to the same accurate cargo descriptions and timeliness that are enforced on US bound shipments identified above under the May 4, 2003 date.

2.  "Carrier" responsibilities:
We also want to draw your attention to the additional questions added to the FAQ (Questions 45-50) that address many of the cargo arrival issues. These involve responsibilities of the AMS filer after the cargo is laden on the vessel and principly when it arrives at the US port.  An automated NVOCC under the 24 Hour Rule not only must provide the advanced information for targeting purposes (i.e. prior to lading), but must also take on traditional "ocean carrier responsibilities" for those bills of lading in AMS once the cargo arrives at the US port.  These responsibilities include, among other matters: arriving freight - notification to Customs the cargo has arrived at the pier processing In Bond transfers issuing Permits to Transfer cargo (i.e. from the pier to an exam station or deconsolidation facility) processing General Order cargo - cargo that has not moved after 15 days Posting Vessel Arrivals in AMS

The failure to do the above timely can result in delays of the transportation of the cargo, and may also result in the issuance of liquidated damages against the NVOCC under the Customs bond or bonds provided.  NVOCCs automated under AMS are strongly encouraged to be familiar with all their new responsibilities.

This update was made available by the administrators of the FIATA NVOCC Group Bond: Roanoke Trade Services. Their website with the updated 24-hr rules can be accessed as follows: www.roanoketrade.com/24hrrule.htm