CBP Issues FAQ on Mandatory Advance Electronic Information Requirements for Rail Cargo

Subscribers should note that the questions and answers in this FAQ appear to relate to inbound rail cargo.

This is Part I of a multipart series of summaries on this "Rail" FAQ and specifically concerns the enforcement dates of the advance electronic information requirements for inbound rail cargo. See future issues of ITT for additional summaries.

FAQ 1 - Enforcement Dates

In response to a question asking what CBP's enforcement/implementation strategy will be, CBP states that a total of 31 ports of entry will be affected by the implementation of the rail portion of the Trade Act of 2002. CBP will implement a two-stage enforcement/implementation strategy for each of three groups of ports. The two stages are described as follows:

Stage I - Manifest information 2 hours prior to arrival; informed compliance. The following will occur in Stage I (which begins on staggered days for each port group¹). Stage I lasts 30 days:

All rail carriers servicing the ports of entry must provide the required manifest information two hours prior to the conveyance's arrival in the U.S.

Failure to submit the required information will result in the train being held until all manifest requirements are met and proper targeting and/or inspection of the train is completed.

CBP will issue an informed compliance letter to the rail carrier, informing the participant of deficiencies in any of the following areas (egregious violations): timeliness, precise cargo description, missing or invalid shipper information, missing or invalid consignee information, conveyance name, equipment and trip number.

Stage II - Full compliance; monetary penalties. The following will occur in Stage II (which begins after the 30-day period of Stage I) for each port group²:

all rail carriers servicing the 31 ports of entry must provide the required manifest information two hours prior to the conveyance's arrival to the U.S. and be in full compliance with all requirements set forth by the final rule of the Trade Act of 2002.

Failure to submit the required information will result in the train being held until all manifest requirements are met and proper targeting and/or inspection of the train is completed.

When Phase II begins, all CBP ports will be authorized to issue monetary penalties. CBP states that a penalty of $5,000 for the first violation and $10,000 for any subsequent violation will be assessed.

(See ITT's Online Archives or 12/12/03 news, 03121220, for BP summary of inbound rail portion of final rule on the advance presentation of cargo information.)

Group A Port Group

CBP states that effective July 12, 2004, the following 24 ports of entry will be operational and will require rail carriers to transmit to CBP the required electronic rail manifest information two hours in advance of the scheduled arrival of the conveyance to its designated U.S. port of entry/rail crossing:

Group B Port Group

CBP states that effective August 10, 2004, the following four ports of entry will be operational and will require rail carriers to transmit to CBP the required electronic rail manifest information two hours in advance of the scheduled arrival of the conveyance to its designated U.S. port of entry/rail crossing:

Group C Port Group

According to CBP, effective September 9, 2004, the following three ports of entry will be operational and will require rail carriers to transmit to CBP the required electronic rail manifest information two hours in advance of the scheduled arrival of the conveyance to its designated U.S. port of entry/rail crossing:

For Group A ports, Phase I will run from July 12, 2004 through August 10, 2004. For Group B ports, Phase I will run from August 10, 2004 through September 8, 2004. For Group C ports, Phase I will run from September 9, 2004 through October 9, 2004.

For Group A ports, Phase II begins on August 11, 2004. For Group B ports, this phase begins on September 9, 2004. For Group C ports, Phase II begins on October 10, 2004.

(See ITT's Online Archives or 04/12/04 news, 04041205, for BP summary of CBP's announcement of compliance dates for inbound rail cargo.)

CBP FAQ on Rail Cargo (dated 07/08/04) available at http://www.cbp.gov/linkhandler/cgov/import/communications_to_industry/advance_info/faq_070804.ctt/faq_070804.doc