CBP's Proposed Rule on 10+2 for Maritime Cargo (Part II - Importer SF Requirements)

CBP states that this additional information, which would be submitted by way of a CBP-approved electronic data interchange system¹, will further improve the ability of CBP to identify high-risk shipments in order to prevent the smuggling of terrorist weapons into the U.S. and ensure cargo safety and security.

Written comments on this proposed rule are due by March 3, 2008.

This is Part II of a multipart series of summaries of this proposed rule, and highlights the proposed importer (or its agent) SF requirements. See future issues of ITT for summary of comments and CBP responses on these proposed requirements.

Proposed Definitions of Importer, Authorized Agent

For purposes of the proposed regulations, importer would mean the party causing the goods to arrive within the limits of a port in the U.S. For foreign cargo remaining on board (FROB), the importer would be construed as the carrier. For immediate exportation (IE) and transportation and exportation (T&E) in-bond shipments, and goods to be delivered to a foreign trade zone (FTZ), the importer would be construed as the party filing the IE, T&E, or FTZ documentation with CBP.

CBP is proposing to allow an importer to designate an authorized agent to file the importer SF on the importer's behalf. Under the proposed regulations, a party would be able to act as an authorized agent for purposes of filing the SF if that party obtains access to the CBP-approved electronic data interchange system. Authorized agents would also be required to obtain a bond and retain powers of attorney.

Importer SF Would be Required 24 Hours Prior to Loading (Except for FROB)

CBP is proposing to require importers or their agents, to transmit an importer SF to CBP, for cargo other than FROB, no later than 24 hours before cargo is laden aboard a vessel destined to the U.S.

Because FROB is frequently laden based on a last-minute decision by the carrier, the importer SF for FROB would not be required 24 hours prior to lading. Rather, the SF for FROB would be required any time prior to lading.²

10 Importer SF Elements for Shipments Other than FROB, IEs, T&Es

Under the proposed regulations, the importer SF for shipments, other than those consisting entirely of FROB and goods intended to be "transported" in-bond as an IE or T&E, would be required to include the following 10 elements for each good listed at the 6 digit Harmonized Tariff Schedule (HTS) number at the lowest bill of lading level (i.e., at the house bill of lading level, if applicable), unless exempted:

1. Manufacturer (or supplier) name and address. Name and address of the entity that last manufactures, assembles, produces, or grows the commodity or name and address of the supplier of the finished goods in the country from which the goods are leaving.

In the alternative, the name and address of the manufacturer (or supplier) that is currently required by the import laws, rules and regulations of the U.S. (i.e., entry procedures) may be provided (this is the information that is used to create the existing manufacturer identification (MID) number for entry purposes).

1. Seller name and address. Name and address of the last known entity by whom the goods are sold or agreed to be sold. If the goods are to be imported otherwise than in pursuance of a purchase, the name and address of the owner of the goods must be provided.³
2. Buyer name and address. Name and address of the last known entity to whom the goods are sold or agreed to be sold. If the goods are to be imported otherwise than in pursuance of a purchase, the name and address of the owner of the goods must be provided.³
3. Ship to name and address. Name and address of the first deliver-to party scheduled to physically receive the goods after the goods have been released from customs custody.
4. Container stuffing location. Name and address(es) of the physical location(s) where the goods were stuffed into the container. For break bulk shipments, the name and address(es) of the physical location(s) where the goods were made "ship ready" must be provided.
5. Consolidator (stuffer) name and address. Name and address of the party who stuffed the container or arranged for the stuffing of the container. For break bulk shipments, the name and address of the party who made the goods "ship ready" or the party who arranged for the goods to be made "ship ready" must be provided.
6. Importer of record number/FTZ applicant identification number. Internal Revenue Service (IRS) number, Employer Identification Number (EIN), Social Security Number (SSN), or CBP assigned number of the entity liable for payment of all duties and responsible for meeting all statutory and regulatory requirements incurred as a result of importation. For goods intended to be delivered to an FTZ, the IRS number, EIN, SSN, or CBP assigned number of the party filing the FTZ documentation with CBP must be provided. The importer of record number for importer SF purposes is the same as "importer number" on CBP Form 3461.
7. Consignee number(s). IRS number, EIN, SSN, or CBP assigned number of the individual(s) or firm(s) in the U.S. on whose account the merchandise is shipped. This element is the same as the "consignee number" on CBP Form 3461.
8. Country of origin. Country of manufacture, production, or growth of the article, based upon the import laws, rules and regulations of the U.S. This element is the same as the "country of origin" on CBP Form 3461.
9. HTS number at 6 digit level. Duty/statistical reporting number under which the article is classified in the HTS. The HTS number is required to be provided to the 6 digit level. The HTS number may be provided up to the 10 digit level. This element is the same as the "H.S. number" on CBP Form 3461 and can only be used for entry purposes if it is provided at the 10 digit level or greater.

CBP adds that the manufacturer (or supplier) name and address, country of origin, and commodity HTS number would be required to be linked to one another at the line item level.

5 Importer SF Elements for FROB, IE, T&E Shipments

Under the proposed regulations, the importer SF for shipments consisting entirely of FROB and shipments consisting entirely of goods intended to be "transported" as IE or T&E in-bond shipments, would be required to include the following five elements for each good listed at the 6 digit HTS number at the lowest bill of lading level (i.e., at the house bill of lading level, if applicable):

1. Booking party name and address. Name and address of the party who is paying for the transportation of the goods.
2. Foreign port of unlading. Port code for the foreign port of unlading at the intended final destination.
3. Place of delivery. City code for the place of delivery.
4. Ship to name and address. Name and address of the first deliver-to party scheduled to physically receive the goods after the goods have been released from customs custody.
5. HTS number at 6 digit level. Duty/statistical reporting number under which the article is classified in the HTS. The HTS number must be provided to the 6 digit level. The HTS number may be provided up to the 10 digit level.

¹The current approved electronic data interchange systems for the importer SF are the Automated Broker Interface (ABI) and the Vessel Automated Manifest System (AMS). CBP states that if it approves a different or additional electronic data interchange system, CBP will publish notice in the Federal Register.

²CBP states it is not proposing to amend the timing requirements in 19 CFR Part 4 requiring submission of advance manifest information 24 hours prior to lading.

³CBP states that the party required for this element is consistent with the information required on the invoice of imported merchandise. See 19 CFR 141.86(a)(2).

• Written comments on the proposed rule are due by March 3, 2008 and may be submitted on all aspects of the proposal

(See ITT's Online Archives or 01/02/08 news, 08010200, for Part I of BP's summary on this proposed rule, which provides links to other relevant 10+2 notices.)

CBP contact - Richard Di Nucci (202) 344-2513

CBP proposed rule (FR Pub 01/02/08) available at http://a257.g.akamaitech.net/7/257/2422/01jan20081800/edocket.access.gpo.gov/2008/pdf/E7-25306.pdf

BP Note

Information included in this summary was obtained from both the preamble of the proposed rule and the proposed regulatory text.