CBP's FAQ on Mandatory Advance Electronic Cargo Information Requirements

CBP subsequently issued a March 1, 2004 version of this FAQ.

This is Part XII, the final part of a multi-part series of summaries of the February 12, 2004 FAQ, and covers FAQs from the "vessel mode" section of the FAQ regarding vessel agents and bulk and break bulk cargo.

(The FAQs (39 and 40) addressed in this notice are identical to the FAQs (39 and 40) in the March 1, 2004 version.)

FAQ 39 - Vessel Agents

Can vessel agents enter cargo declaration information? In response to a question regarding whether vessel agents can enter cargo declaration information on behalf of the carrier or whether only the carrier can enter manifests, CBP states that the carrier may designate a vessel agent to enter data on behalf of the carrier; however, the carrier is responsible for the content and timeliness of the data. The information may be transmitted directly to CBP or through a participating Automated Manifest System (AMS) service center or port authority.

Can vessel agents submit cargo declaration information using their SCAC and bond? CBP responds to the question of whether vessel agents can submit cargo declaration information utilizing the vessel agent's Standard Carrier Alpha Code (SCAC) and bond by stating that vessel agents cannot submit cargo declaration information utilizing the vessel agent's SCAC code and bond and notes that the purpose of the advance electronic cargo declaration submission is to ensure cargo safety and security as part of an antiterrorism national security initiative. Submission of cargo declaration information utilizing the vessel agent's SCAC code and bond diminishes CBP's ability to properly assess risk.

Can a vessel agent submit cargo declaration information using carrier's SCAC and bond? In response to a question about whether a vessel agent can submit cargo declaration information utilizing the carrier's SCAC code and bond, CBP states that the carrier may designate a vessel agent to enter data on behalf of the carrier; however, the carrier is responsible for the content and timeliness of the data.

Who needs to send a letter of intent? CBP responds to the question of who needs to send a letter of intent, each principal or a vessel agent on behalf of a principal by stating that each carrier or non-vessel operating common carrier (NVOCC) should submit a letter to CBP requesting participation in the Vessel AMS program.

Can a vessel agent file cargo declaration information for all U.S. ports? CBP responds to the question of whether a vessel agent can file cargo declaration information for all U.S. ports, and whether there are any specific requirements for submissions at the first U.S. port. According to CBP, ocean carriers and NVOCCs currently operational on Vessel AMS, although not at all ports of entry, will be required to become operational at all such ports before March 4, 2004. Any carrier or NVOCC that hereafter becomes automated on Vessel AMS will thereby be automated at all ports. Since the automation of electronic filers through Vessel AMS will encompass all ports of entry, proposed 19 CFR 4.7(b)(5) is revised in CBP's December 5, 2003 final rule by removing the phrase, ''where their cargo will initially arrive.'' However, carriers must indicate in their respective electronic transmissions each port of arrival where their incoming cargo will be discharged.

If there is FROB cargo on board, is it required to be transmitted? CBP responds to a question on whether, if there is FROB (Foreign Remaining on Board) cargo on board, it is required to be transmitted by stating that the definition of ''FROB'' cargo is cargo that is loaded in a foreign port and which is to be unloaded in another foreign port with an intervening vessel stop in one or more ports in the U.S.

CBP states that it considers ''FROB'' cargo a security concern because although the cargo does not have a final destination in the U.S., the cargo is transiting the U.S. Currently, carriers must correctly report FROB cargo upon arrival in the U.S. Under the new regulations, FROB cargo must be reported 24 hours in advance of loading.

Will CBP insist on a paper manifest at any time? CBP responds to the question of whether it will insist on a paper manifest at any time (i.e., traveling manifest and at each port upon vessel's arrival) by stating that it has decided not to enforce the paper cargo declaration (Customs Form (CF) 1302) rule for formal entrance if a carrier or NVOCC has successfully automated.

However, CBP states that where the cargo declaration has been filed in advance electronically, and a paper copy is not aboard the vessel, the carrier will be afforded a reasonable time within which to generate a paper cargo declaration, should a paper copy be requested by CBP. As integration of legacy agencies' automated systems progresses, requests for paper copies of cargo declarations will be eliminated. CBP will periodically assess this policy to ensure that it is not having an adverse effect on operations.

At what ports (if any) will CBP still allow paper cargo declarations? CBP responds to a question regarding at what ports (if any) it will still allow paper cargo declaration (CF1302) filing due to CBP not having the necessary computer ability to accept AMS. According to CBP, effective March 4, 2004, all vessel cargo declaration information must be submitted electronically. The carrier is the entity that must become automated. All CBP ports have access to CBP automated systems.

Will all ports be AMS capable? In response to the question of whether all ports will be AMS capable (e.g., Cleveland, Ashtabula, Erie, Toledo, Detroit, Oswego, Ludington, Bay City, Ogdensburg), CBP states that all CBP ports have access to CBP automated systems.

Can a vessel agent obligate its own bond on the CF 3171? In response to a question on whether a vessel agent can still obligate its own bond on the CF 3171, CBP states that vessel agents can still obligate their own bond on the CF 3171 for vessel entrance and clearance purposes, but not for cargo declaration purposes.

Can a vessel agent obligate a carrier's bond on the CF 3171? CBP responds to the question of whether a vessel agent can obligate a carrier's bond on the CF 3171 by stating that a vessel agent can only obligate a carrier's bond on the CF 3171 if the vessel agent is in possession of a valid power of attorney from the carrier whose bond is being obligated.

FAQ 40 - Bulk and Break Bulk Cargo

CBP provides guidance on what is considered bulk and break bulk cargo, how one applies for an exemption from the 24-hour rule filing requirements for break bulk cargo, contact information for exemptions, and applying for another temporary exemption.

This FAQ is substantially similar to FAQ 41 in CBP's FAQ on the 24-hour rule for inbound vessel cargo except that it provides the address for CBP twice (instead of just once) and it eliminates a phrase which stated that the updated CBP contact information should be used beginning June 15, 2003. (See ITT's Online Archives or 07/31/03 news, 03073105, for most recent BP summary of FAQ 41 for the 24-hour rule.)

(See ITT's Online Archives or 02/19/04, 02/20/04, 02/24/04, 02/25/04, 02/26/04, 02/27/04, 03/02/04, 03/03/04, 03/04/04, 03/10/04 and 03/11/04 news, 04021905, 04022010, 04022410, 04022510, 04022620, 04022715, 04030220, 04030315, 04030415, 04031010, and 04031110, for Parts I-XI of this multi-part series of summaries.

See ITT's Online Archives or 03/05/04 and 03/08/04 news, 04030510 and 04030805, for BP's two-part series of summaries of CBP's March 1, 2004 FAQ.

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