CBP's Third Version of its FAQ on Mandatory Advance Electronic Cargo Information Requirements
On April 2, 2004, U.S. Customs and Border Protection (CBP) issued its third version of Frequently Asked Questions (FAQ) and responses regarding the inbound portion of its final rule requiring the advance electronic presentation of information pertaining to cargo (sea, air, rail, or truck) prior to its being brought into, or sent from, the U.S.
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(As in earlier versions of the FAQ, some of the questions listed in the "all modes" section of the third version might be more appropriately placed in its "vessel mode" section, as they appear to pertain only to ocean cargo.)
This is Part II of a multi-part series of summaries on this April 2, 2004 FAQ and focuses on revised FAQs 2 (enforcement date) and 27 (carriers). See future Issues of ITT for additional summaries.
FAQ 2 - Enforcement Date (All Modes)
CBP provides guidance on the enforcement dates for its requirements for the advance electronic presentation of information pertaining to inbound cargo (sea, air, rail, or truck).
(The April 2, 2004 FAQ does not reflect CBP's recently announced compliance dates for inbound rail cargo. See ITT's Online Archives or 04/12/04 news, 04041205, for BP summary of CBP's inbound rail cargo compliance dates.)
CBP's April 2, 2004 FAQ contains the following changes from previous versions of the FAQ:
Specific compliance dates for inbound air cargo. The April 2, 2004 FAQ lists by state the three compliance dates for inbound air cargo, depending on the location of the airport where the cargo arrives in the U.S. The dates are August 13, 2004 (East Coast states), October 13, 2004 (Central states), and December 13, 2004 (West Coast states). (See ITT's Online Archives or 03/04/04 news, 04030405, for BP summary.)
Separate enforcement section for passenger vessels. CBP's April 2, 2004 provides a separate enforcement section for passenger vessels (rather than including passenger vessels with bulk and break bulk vessels as it had previously done). CBP's enforcement section on passenger vessels reads as follows:
"A passenger vessel that is beginning a voyage on or after April 2, 2004 must transmit cargo declaration data electronically to CBP utilizing Sea AMS. CBP will commence enforcement actions for passenger vessel carriers failing to comply with the Required Advance Electronic Presentation of Cargo Information final rule effective January 5, 2004. The enforcement actions include denial of preliminary entry and issuance of penalties at each port of arrival."
FAQ 27 - Carriers (Vessel Mode)
CBP provides guidance on the definition of carriers and states that due to the complexity of the various contractual agreements and after meeting with vessel agent representatives, it was decided that the industry is in the best position to determine who the carrier is for automation purposes.
CBP states that it views the carrier as the entity that controls the vessel, which includes:
Determining the ports of call
Controlling the loading and discharging of cargo
Knowledge of cargo information
Issuing bills of lading
The entity that has typically provided the CF1302 cargo declaration or the cargo information to prepare the CF1302 to the vessel agent.
According to CBP, in the event that the parties to the contract cannot determine who is the carrier, a request for a CBP ruling may be made in accordance with 19 CFR Part 177. (Information on the ruling procedure is available on CBP's Web site at http://www.cbp.gov/xp/cgov/toolbox/legal/Rulings/ruling_letters.xml.)
As in earlier versions of this FAQ, CBP continues to state that once a carrier has obtained a continuous bond it is valid for all vessels controlled by the bonded entity. (CBP regulations covering bonds are published at 19CFR Part113.) CBP also continues to note that an Activity Code 3 International Carrier single transaction bond is only valid for one entrance and one clearance for one transaction (e.g., one voyage) at one port.
(See ITT's Online Archives or 04/08/04 news, 04040810, for Part I of this multi-part series of summaries on CBP's third version of this FAQ.)
CBP's 3rd version of its FAQ (dated 04/02/04) available at