CBP Updates "All Modes" FAQ on the Inbound Advance Electronic Cargo Information Requirements

CBP's updated version of its All Modes FAQ contains revisions to FAQ 1 (Required Transmission Times for Inbound Conveyances), FAQ 2 (Enforcement Date), FAQ 8B (Automation Outline), FAQ 20 (Data Element - Consignee and to Order Bills), and FAQ 25 (AMS Releases).

FAQ 1 - Required Transmission Times for Inbound Conveyances

CBP has revised its response to this question, which asks what are the required transmission times for all modes of transportation both inbound and outbound.

In the table entitled "Inbound - Transmission Received by CBP in AMS," CBP has amended the information for vessels to read: "24 hours (before lading in foreign) non-bulk; 24 hours before arrival bulk."

Previously, this line had read "24 hours before lading in foreign" (without distinguishing the different transmission times for bulk).

FAQ 2 - Enforcement Date

CBP has revised its response to this question, which notes that there are several dates identified in the final rule and inquires as to which one should be used.

In the table entitled "Implementation Date," CBP has amended the entry for trucks to read "beginning November 15, 2004 (See Table Below)" (rather than "90-days after FR notice").

In addition, CBP has deleted the line from this table for CAFES which had indicated that the implementation date was "90-days after FR notice."

CBP has also added a new table that contains that truck AMS implementation schedule.

(See ITT's Online Archives or 08/18/04 news, 04081805, for BP summary containing this truck AMS implementation schedule. However, note that the "All Modes" FAQ lists Del Bonita, MT as port code 3320; but 04081805 accurately lists it as port code 3322.)

In addition, CBP has also added the following information with regard to air and truck transport:

Air - Effective January4, 2005 the air implementation of the Trade Act was completed. From this date forward:

CBP will not grant landing rights at a landing rights airport or permission to land at an international airport if the carrier is required to participate in Air AMS but has [ ] established an Air AMS user record at that port.

(BP is checking with CBP sources as to whether this sentence should state: "but has not established an Air AMS user record at that port.")

If an aircraft required to enter arrives with commercial cargo aboard and the carrier has not established Air AMS communications, CBP will issue a penalty for failure to submit the required electronic cargo information to CBP.

CBP will not recognize any permit or special license to unlade that may already be on file with CBP if the carrier is not an Air AMS participant when required. The cargo may not be unladen at the first U.S. port of arrival or at any subsequent U.S. port. CBP will still require that the carrier present a paper copy of the CBP Form 7509 (Air Cargo Manifest) in the required timeframes. The cargo will remain aboard the aircraft while CBP conducts a review of the manifest.

CBP will conduct a full manifest review before granting permission for the aircraft to depart. Such permission to depart is granted either by signing the permit to proceed if the aircraft is continuing to another U.S. port or signing the outbound General Declaration (CBP 7507) if the aircraft is traveling to a foreign port.

If any unlading of cargo occurs, CBP will issue a penalty for violation of 19 USC 1453 - penalty equal to the value of the merchandise for unlading without a permit or special license.

Finally, CBP will inform the carrier that future violations may subject it to the provisions of 19 USC 1436(b) which states that any conveyance used in connection with violations of manifest requirements may be subject to seizure and forfeiture. Any such decision to seize an aircraft must be made with concurrence from CBP headquarters. (See ITT's Online Archives or 07/27/04 news, 04072710, for BP summary of a CBP FAQ indicating that on January 4, 2005, the last of three regions began the last phase (phase 4) of CBP's enforced compliance procedures for Air AMS.)

Truck - Effective May16, 2005, Denial of Entry of the conveyance (turning the truck around) will be issued to the driver who fails to comply with the Trade Act requirements outlined at: http://www.cbp.gov/linkhandler/cgov/import/communications_to_industry/advance_info/truck_faqs.ctt/truck_faqs.doc. (See ITT's Online Archives or 04/26/05 news, 05042605, for BP summary CBP FAQ which contains this May 16, 2005 denial of entry date.)

FAQ 8B - Automation Outline

With regard to FAQ 8B, which asks what process an air carrier or authorized participant must go through to automate with CBP, CBP has amended the second sentence of the last paragraph of its response to read as follows: "The FIRMS Code is obtained through the CBP port of entry where you will be filing your entries."

This sentence had previously contained a typographical error, which read: "The FIRMS Code is obtained through the CBP port of entry that you will be filing your entries."

FAQ 20 - Data Element - Consignee and To Order Bills

FAQ 20's question states that for "to order" bills of lading, where there is no consignee, this information item should include the name of the cargo "owner or the owner's representative." The regulation does not state any limitation or definition of who an "owner's representative" can be, so we assume it does not require a name or address in the U.S., and can be whoever the shipper states on the bill of lading.

CBP has revised its answer to read as follows:

CBP recognizes that for business and financial reasons "to order" must be placed in the consignee field. However, the CBP regulations at 4.7a require:

(ix) The complete name and address of the consignee, or identification number, from all bills of lading. For consolidated shipments, at the master bill level, the NVOCC, freight forwarder, container station or other carrier may be listed as the consignee. For non&8209;consolidated shipments, and for each house bill in a consolidated shipment, the consignee is the party to whom the cargo will be delivered in the U.S., with the exception of "FROB" (foreign cargo remaining on board). However, in the case of cargo shipped "to order of [a named party]," the carrier must report this named "to order" party as the consignee; and, if there is any other commercial party listed in the bill of lading for delivery or contact purposes, the carrier must also report this other commercial party's identity and contact information (address) in the "Notify Party" field of the advance electronic data transmission to CBP, to the extent that the CBP&8209;approved electronic data interchange system is capable of receiving this data.

If CBP discovers a carrier misusing the "to order of [a named party]" provisions to mask the true identity of a consignee, appropriate action will be taken.

CBP recognizes that for FROB cargo the actual consignee will not be located in the U.S. Therefore, in such cases where the bill of lading is "to order of [a named party]" and FROB cargo the owner or owner's representative name and foreign address must be listed in the first notify field.

(CBP had previously stated that it recognized that for business and financial reasons "to order" must be placed in the consignee field. Therefore, CBP decided that "to order" without corresponding information would be acceptable in the consignee field. However, when "to order" is used in the consignee field the first notify field must contain the owner or owner's representative with the U.S. name and address.

CBP recognizes that for FROB cargo the actual consignee will not be located in the U.S. Therefore, in such cases where the bill of lading is "to order" and FROB cargo the owner or owner's representative name and foreign address must be listed in the first notify field.)

FAQ 25 - AMS Releases

CBP has revised its response to this question, which asks what CBP considers as appropriate documentation for proof of release of cargo.

CBP now states that the AMS modules do not have a single message to indicate that delivery has been authorized. Rather, AMS transmits Disposition Codes in Bill of Lading Status Notification messages (R01 and R02) to Vessel and Rail AMS participants whenever CBP performs a particular transaction for a shipment. Similarly, Air AMS transmits Posting Codes in Freight Status Notification (FSN) messages. For example, when the cargo selectivity module of ACS processes an entry that has a result of "General Examination," AMS transmits a "1C" message to the participant. If CBP performs a transaction to override "General Examination" results to "Intensive Examination", AMS transmits a "4A" message to the participant. Similarly, when CBP places a type "10" compliance or type "13" enforcement hold on a shipment, AMS transmits a "1H" message to the participant. AMS participants must review and interpret all such messages at the time of cargo delivery to determine the current delivery authorization status in AMS.

(CBP had previously responded to this question by stating that as an AMS participant, CBP has stated that the receipt of the 1C message in AMS indicates the official authorization for the release of cargo.)

(See ITT's Online Archives or 08/12/04 news, 04081210, for the August 2004 version of the "All Modes" FAQ.)

"All Modes" FAQ (updated 10/07/05) available at http://www.cbp.gov/linkhandler/cgov/import/communications_to_industry/advance_info/tpa_faqs.ctt/tpa_faqs.doc