CBP Delays Full Enforcement of the Term "Shipper" in the Inbound Ocean Advance Manifest Regulations
U.S. Customs and Border Protection (CBP) has announced that it is delaying the full enforcement of the term "shipper" for inbound ocean cargo declaration purposes, as it appears in CBP's December 5, 2003 final rule on the advance electronic presentation of cargo information.
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CBP states that compliance with all other aspects of CBP's December 5, 2003 final rule regarding inbound ocean cargo will be required starting on March 4, 2004.
(The December 5, 2003 final rule states, in part, that for non-consolidated shipments, and for each house bill in a consolidated shipment, the foreign vendor, supplier, manufacturer, or other similar party is acceptable as the "shipper," but the carrier, non-vessel operating common carrier (NVOCC), freight forwarder or consolidator is not.)
As a result of this delay in full enforcement, CBP states it will allow the current definition of "shipper," as outlined in its October 31, 2002 24-hour final rule, to be used until further notice. Under this definition, CBP states that the party that contracts for carriage of the cargo is acceptable as the "shipper."
Delay Will Allow CBP to Review Petition Filed by WSC, NITL, NCBFAA, and RITL
According to CBP, the purpose for this delay is to allow it time to review a petition submitted by the World Shipping Council (WSC), the National Industrial Transportation League (NITL), the National Customs Brokers and Forwarders Association of America, Inc. (NCBFAA), and the Retail Industry Leaders Association (RILA) challenging the definition of shipper in CBP's December 5, 2003 final rule. (See ITT's Online Archives or 02/11/04 news, 04021105, for BP summary of trade associations' petition.)
CBP to Continue to Make Risk Determinations on Information Provided in the Shipper Field as it Does Today
CBP states that it will continue to make risk determinations on the information provided in the "shipper" field as it does today. CBP further states that information that is not useful in assessing risk will invite closer scrutiny and increase the likelihood that the shipment will be examined.
CBP notice available at
http://www.cbp.gov/xp/cgov/import/communications_to_industry/advance_info/ta02_delay_shipper.xml.
CBP press release (dated 02/23/04) available via email or fax by emailing staff@brokerpower.com.
BP Notes
CBP's October 31, 2002 24-hour rule added a new regulation, 19 CFR 4.7a(c)(4)(viii), which states that in addition to the cargo manifest information required in 19 CFR 4.7a(c)(1)-(c)(3), for all inward foreign cargo, the Cargo Declaration, either on CF 1302 or on a separate sheet or CBP-approved electronic equivalent, must state "the shipper's complete name and address, or identification number, from all bills of lading. (The identification number will be a unique number assigned by U.S. Customs upon the implementation of the Automated Commercial Environment)."
However, CBP's December 5, 2003 final rule on the advance electronic presentation of cargo information amended 19 CFR 4.7a(c)(4)(viii) to require "the shipper's complete name and address, or identification number, from all bills of lading. (At the master bill level, for consolidated shipments, the identity of the Non-Vessel Operating Common Carrier (NVOCC), freight forwarder, container station or other carrier is sufficient; for non-consolidated shipments, and for each house bill in a consolidated shipment, the identity of the foreign vendor, supplier, manufacturer, or other similar party is acceptable (and the address of the foreign vendor, etc., must be a foreign address); by contrast, the identity of the carrier, NVOCC, freight forwarder or consolidator is not acceptable; the identification number will be a unique number assigned by CBP upon the implementation of the Automated Commercial Environment)."