CBP's 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 II of a multipart series of summaries on this "Rail" FAQ and specifically concerns seals. See future issues of ITT for additional summaries.

FAQ 2 - Data Element - Seals

C-TPAT carriers should ensure high-security seals/locks are on containers. In response to a question as to what a carrier should do if it receives a container from a shipper without a seal or discovers that the original seal has been broker or damaged, CBP states that this question raises implications for Customs-Trade Partnership Against Terrorism (C-TPAT) carrier participants and non-C-TPAT carriers. CBP explains that with regard to C-TPAT carriers, as stipulated in the Agreement to Voluntarily Participate in C-TPAT, carriers are expected to "ensure high security seals or locks are affixed on all loaded containers."

CBP notes that concern has been expressed that carriers, as the recipients of most loaded containers, are often not in a position to ensure the secure sealing of those containers. However, while that may be true, the sealing of containers is an essential element of a secure supply chain and remains a critical part of a carrier's commitment to C-TPAT.

C-TPAT carriers should communicate C-TPAT guidelines to others. CBP states that the C-TPAT agreement for carriers reads, "The carrier agrees to develop and implement, within a framework consistent with the listed recommendations, a verifiable, documented program to enhance security procedures throughout its supply chain process. CBP states that where the carrier does not exercise control of a production facility, distribution entity, or process in the supply chain, the carrier agrees to communicate the attached recommendations/guidelines to those entities."

C-TPAT carriers may have to work with shippers, forwarders to arrange sealing. Even if a carrier does not "exercise control" over the sealing of containers, CBP states that carriers that join C-TPAT are expected to promote effective security measures throughout the entire supply chain. According to CBP, that must include doing whatever a carrier can to ensure the sealing of all loaded containers and may require that the carrier work or negotiate with shippers, forwarders, and/or others to arrange for that sealing.

CBP states that a C-TPAT carrier should consider the level of risk associated with an unsealed, mislabeled or tampered container and take appropriate security steps prior to the lading of that container. As discussed below, these steps could include applying a high security seal, requiring a shipper to verify the contents and add a seal, or refusing to lade the container.

Unsealed containers & containers with broken seals should be considered vulnerabilities. In addition, for those containers that are not sealed or the seal has been broken, CBP states that a C-TPAT carrier should consider the container a vulnerability and work with the responsible parties (shippers/forwarders) to address that vulnerability for future shipments.

C-TPAT carriers should notify CBP of tampered or mismatched seals. If the C-TPAT carrier receives a container where the seal has been tampered or the seal number does not match the shipping documents the carrier should notify CBP. This notification should happen as soon as the discrepancy is noted. If the discovery of the discrepancy is noted after receipt of the transmission of the bill of lading the carrier should notify CBP.

Options for C-TPAT and non-C-TPAT carriers to address damaged or missing seals. CBP explains that the lack of a seal or a damaged seal on a container will pose a level of risk; however, several options for addressing this risk are available to both C&8209;TPAT and non-C&8209;TPAT carriers and their trading partners. The first option, listed below, represents the highest level of diligence and therefore poses the lowest risk from a targeting standpoint. In the event that a container is delivered to a carrier facility without a seal, the carrier can undertake any of the following options:

The carrier could examine and verify the contents of the container and place a new seal on the container.

The carrier could request that the shipper verify the contents of the container and place a seal on the container.

The carrier could seal the container without verifying the contents.

The carrier could refuse to load the container.

The carrier could accept the container, but transmit information in AMS, which would indicate the status of the seal (no seal, tampered, or broken).

CBP states that it will provide the capability in AMS to allow carriers/authorized transmitting parties to transmit information in seal data field that indicates no seal, tampered seal or broken seal.

Development of C-TPAT agreement for foreign shippers. As CBP develops a C-TPAT agreement for foreign shippers (and enhances other agreements), CBP states that it will, as appropriate, articulate the responsibility of other industry sectors for ensuring sealed containers.

(See ITT's Online Archives or 07/14/04 news, 04071410, for Part I of BP's summary of this FAQ.)

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