CBP Issues Guidelines on Penalties/Liquidated Damages for Vessel, Air, & Rail Carriers, NVOCCs, etc. that Fail to Comply with Advance Electronic Cargo Information Requirements
In the July 6, 2005 issue of the U.S. Customs and Border Protection Bulletin, CBP issued a notice containing guidelines with the following title, which are effective July 6, 2005:
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Guidelines for the Assessment and Mitigation of Penalties Against Arriving Vessel, Air and Rail Carriers for Failure to Comply with the Advance Electronic Cargo Information Requirements; Guidelines for the Assessment and Cancellation of Claims for Liquidated Damages Against NVOCCs, Slot Charterers and Other Parties Electing to Transmit the Advance Electronic Cargo Information for Failure to Comply with the Advance Electronic Cargo Information Requirements
This is Part I of a multi-part series of summaries on these guidelines. See future issues of ITT for additional summaries.
According to CBP, these guidelines are for the assessment and mitigation of penalties, pursuant to 19 USC 1618, incurred by arriving vessel, air and rail carriers for failing to provide the required advance electronic cargo information to CBP within the time period and manner prescribed by the regulations1 or for providing inaccurate or invalid cargo information.
In addition, CBP states that the bond cancellation standards, pursuant to 19 USC 1623, in the guidelines are to be applied to claims for liquidated damages incurred by non-vessel operating common carriers (NVOCCs), slot charterers and other authorized parties who elect to transmit advance electronic cargo information to CBP through the CBP-approved electronic data interchange systems, but who fail to comply with the obligation to provide advance electronic cargo information to CBP within the time period and manner prescribed by the regulations1 or for providing inaccurate or invalid cargo information.
1 On December 5, 2003, CBP issued a final rule requiring that CBP receive, by way of a CBP-approved electronic data interchange system, information pertaining to cargo before the cargo is either brought into or sent from the U.S. by any mode of commercial transportation (sea, air, rail or truck).
(See ITT's Online Archives or 02/19/04 news, 04021905, for BP summary of CBP's FAQ which contains a matrix of the required transmission times. See ITT's Online Archives or 01/20/04 news, 04012035, for the final part (Part XXII) of BP's summary of the final rule, which sets out the various compliance dates.)
CBP contact - Herminio Castro (202) 572-8700
CBP notice (CBP Dec. 05-23) available in July 6, 2005 CBP Bulletin (Vol. 39, No. 28) at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2005/vol39_07062005_no28/