CBP's Final Rule on the Advance Electronic Presentation of Cargo Information (Part XVII - CBP Responds to Comments)

This is Part XVII of a multi-part series of summaries of this final rule, and highlights some of CBP's responses to comments on the proposed rule, as follows:

Bar code labels to identify PAPS inbound truck shipments. In response to commenters seeking the continued use of bar code labels until transponders were available, CBP states that it will continue to support the use of bar codes to identify Pre-Arrival Processing System (PAPS) truck shipments as an acceptable method for processing the entry and release of truck cargo.

Dual party presentation of data for inbound truck cargo. CBP states that commenters pointed out that proposed 19 CFR 123.92(c)(2) (Dual party presentation) allowed for dual party presentation of the required data for inbound truck cargo, but did not indicate which data elements were required from the carrier, importer or broker.

CBP responds that where there is dual-party presentation of the data elements listed for incoming truck cargo in 19 CFR 123.92(d) (Cargo information required), the parties to the transaction should decide which data elements each will submit. It is, of course, presumed that if an importer or its broker elected to file advance cargo information with CBP, such data would typically encompass any required commodity and other related information that it possessed with respect to the cargo, as such information would likely be better known to the importer or its broker; and, for the same reason, the carrier would present the required data pertaining to the carriage of the cargo. However, CBP states that it will not parse the data elements in 19 CFR 123.92(d), and rigidly mandate their respective assignment between the carrier and importer or broker.

SCAC code for inbound truck carriers. Regarding proposed 19 CFR 123.92(d)(2), CBP states that one commenter desired the elimination of the Standard Carrier Alpha (SCAC) code, because carriers along the U.S.-Mexican border did not have SCAC codes.

In response, CBP disagrees and states that the ability to identify the truck carrier is critical to target and assess the risk posed by shipments crossing the border. In this regard, the SCAC code is a unique four-letter code used to identify transportation companies; this unique carrier identifier supports the electronic data interchange for all motor carriers. According to CBP, a carrier may obtain a SCAC code by contacting the National Motor Freight Traffic Association, Inc., 2200 Mill Rd., Alexandria, VA 22314-4654.

Scheduled/actual date of arrival for inbound truck cargo. According to CBP, a commenter mentioned that the proposed rule did not deal with a possible variation between the scheduled date of arrival and the actual date of arrival for inbound truck cargo, and whether a difference in these times would result in a breach of the importer's entry bond.

CBP responds that in 19 CFR 123.92(d)(6), the specific information required is the scheduled date and time of the carrier's arrival at the first port of entry in the U.S. However, should there be a delay in the carrier's arrival following its data transmission, this may raise targeting concerns and prompt further inquiry/inspection. In any event, CBP states that notwithstanding the scheduled arrival of the truck, the presentation of the required cargo data is related to the carrier's actual time of arrival in 19 CFR 123.92(a) (General requirement).

Truck processing prior to reaching U.S. border. In response to a comment suggesting the processing of trucks away from the border, prior to reaching the bridge, especially for Detroit and Buffalo, CBP states that the concept of examining and processing trucks prior to their entry into the U.S. is currently being explored with Canada. CBP notes that it is a complex and sensitive issue involving matters of national sovereignty and the authority to enforce laws outside the U.S.

Limited holding areas for inbound truck carriers & cargo. According to CBP, a commenter inquired whether it would be acceptable for a truck carrier to arrive physically and wait in a holding area while the driver/carrier coordinated with the broker to ensure that proper advance information had been provided.

CBP responds that because secondary examination areas are limited in space, CBP will not allow the shipment to be staged at a designated waiting area in the port of arrival either while the entry documentation is being processed or while the carrier consults with a broker to determine if the information has been presented in the manner prescribed.

Instruments of international traffic held by inbound trucks. In response to commenters seeking the creation of procedures for the movement of instruments of international traffic, including the movement of empty containers aboard trucks, CBP states that with the exception of Free and Secure Trade (FAST), CBP will not require any advance notification if the shipment consists solely of empty articles (pallets, tanks, cores, containers, and the like) that have been designated as instruments of international traffic (IITs). However, CBP indicates that if the IITs are commingled with other commercial cargo, CBP will, of course, require the requisite arrival notification for such commercial cargo via the authorized CBP-approved electronic data interchange system; and any empty IITs carried aboard the conveyance must be identified as such and listed on the carrier's paper manifest.

Inward truck/drayage carriers; treatment of inbound trucks on Northern/Southern borders. According to CBP, commenters questioned whether there was a distinction between an inward truck carrier as opposed to a drayage carrier. Also, the commenters wanted to know whether there would be any differences in treatment between carriers on the Northern and Southern Borders.

In response, CBP states that it defines a drayage carrier as one that only moves cargo locally (such as a cartman who only moves cargo within the limits of a port), as opposed to an incoming truck carrier which is understood to be engaged in the international movement of cargo coming from Canada or Mexico. In addition, until the development of the truck manifest module in the Automated Commercial Environment (ACE), CBP states that it will employ existing data systems on both the Northern and Southern Borders to receive and evaluate cargo information for incoming truck shipments.

(See ITT's Online Archives or 01/08/04 news, 04010815, for Part XVI of this series. See ITT's Online Archives or 12/09/03 news, 03120915, for Part II, which includes a list of CBP contacts.)

CBP final rule (CBP Dec. 03-32), FR Pub 12/05/03, available at http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2003/pdf/03-29798.pdf