CBP's FAQ on Mandatory Advance Electronic Cargo Information Requirements
U.S. Customs and Border Protection (CBP) issued its first version (dated February 12, 2004) of Frequently Asked Questions (FAQ) concerning its final rule requiring the advance electronic presentation of information pertaining to cargo (sea, air, rail, or truck) prior to its being brought into, or sent from, the U.S.
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(Although this FAQ states that it covers all modes of cargo transportation, both inbound and outbound, CBP sources note that most of the questions and answers in the first version only pertain to inbound cargo. The final rule's requirements for all modes of outbound cargo are still expected be implemented concurrent with the completion of the redesign of the Automated Export System (AES) commodity module and the effective date of the Census Bureau's upcoming rulemaking to make AES filing mandatory for all exports.)
This is Part IV of a multi-part series of summaries of the February 12, 2004 FAQ, and covers FAQs on becoming automated, empty containers, and Paperless Master In-Bond. See future issues of ITT for additional summaries.
FAQ 8 - Automation Outline
Rail carrier, vessel carrier, or NVOCC. In response to a question on the process that a rail carrier, vessel carrier or a non-vessel operating common carrier (NVOCC) must go through to automate with CBP, CBP states that participants in the Automated Manifest System (AMS) are required to have a Standard Carrier Alpha Code (SCAC) issued by the National Motor Freight Traffic Association, located in Alexandria, VA.
CBP states that AMS participants are also required to have an Activity Code 3 International Carriers Bond and an Activity Code 2 Custodial Bond if business practices involve creating in-bond shipments. Initially bond requirements will be set in the amount of $50,000 (minimum).
According to CBP, there are three basic ways for a rail carrier, a vessel carrier or an NVOCC to participate in AMS:
through a service center/port authority
purchase a software and communications package from a software vendor
program its own software interface
According to CBP, interested participants in the Rail AMS and the Sea AMS programs are required to submit a written letter of intent on company letterhead and include a point of contact, name, title, phone number, e-mail address and office location.
Air carrier or authorized participant. In response to a question about the process that an air carrier or authorized participant must go through to automate with CBP, CBP states that air carriers must have an International Air Transport Association (IATA) code, an International Civil Aviation Organization (ICAO) code, and an air waybill prefix.
CBP further states that for authorized transmitting parties, brokers must have an Automated Broker Interface (ABI) filer code and Container Freight Stations/deconsolidators and Express Consignment Carrier Facilities (ECCFs) must have a Facilities Information and Resources Management System (FIRMS) code. (According to CBP, these codes are the equivalent of the SCAC code for vessel carriers and NVOCCs.)
In response to a question about the procedures for the movement of instruments of international traffic (IIT), including the movement of empty containers on board a conveyance, CBP states that with the exception of the Free and Secure Trade (FAST) program, 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 IITs.
However, CBP states that if the IITs are commingled with other commercial cargo, it will 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 cargo declaration.
FAQ 10 - Paperless Master In-Bond
According to CBP, to participate in the Paperless Master In-bond Program the carrier or the authorized transmitting party must acquire a CBP Activity Code 2 - Custodial Bond.
CBP states that the authorized transmitting party will then submit to its Client Representative a letter, prepared on its letterhead, requesting to participate in the program, identifying its assigned Internal Revenue Service employer identification number (IRS) and what in-bond entry types it would like to be designated to transmit.
According to CBP, the IRS will be validated against a bond table existing in ACS and if valid, a "V" will be assigned to the carrier or NVOCC. The carrier or NVOCC will then create a control number using the "V" and the in-bond movement will be tracked in AMS. CBP states that the party initiating the paperless master in-bond move will then be responsible for the arrival/export of the movement in the system.
(See ITT's Online Archives or 02/19/04, 02/20/04, and 02/24/04 news, 04021905, 04022010, and 04022410, for Parts I, II, and III of this multi-part series of summaries.
See ITT's Online Archives or 01/20/04 news, 04012035, for final installment of BP's summary of CBP's response to comments received on the proposed version of this final rule, with links to earlier installments. See ITT's Online Archives or 12/16/03 news, 03121610, for final installment of BP's summary of the final rule's regulations, with links to earlier installments.)
CBP states that interested parties with additional questions that are not included in this FAQ document should write to Manifest.Branch@dhs.gov.
CBP FAQ Document (dated 02/12/04) available at http://www.cbp.gov/ImageCache/cgov/content/import/communications_5fto_5ftrade/mandatory_5fadvanced_5felectronics/tpa_5ffaqs_2edoc/v1/tpa_5ffaqs.doc.