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    Automated Manifest System (AMS)
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US Customs 24-Hour AMS Update

January 29, 2003


January 29, 2003

Attention US Importers,

Subsequent to our previous notifications, we would like to provide you with the latest information pertaining to the pending 24-hour Advance Manifest Rule issued by US Customs.

Customs will begin enforcing the “most flagrant” violations of the rule February 2nd, to reduce security issues for all shipments arriving at US ports. Carriers/NVOCCs must electronically submit accurate cargo manifest details to Customs 24 hours before a shipment goes aboard a US bound ship at a foreign port. This rule applies to vessels beginning their voyage on or after February 2, 2003.

Customs may enforce the order by denying carriers permission to unload the non-compliant shipments in the US port, and may levy penalties for non-compliance. Demurrage and various other costs are possible results of the Customs denials.

Shippers are responsible for the timely and accurate submission of Customs-approved cargo details to the Carriers/NVOCCs. Customs offers examples of acceptable cargo manifest detail descriptions (and also lists those that will not be acceptable) in a FAQ document posted on its website at: www.customs.gov <http://www.customs.gov>. For example, descriptions such as “freight all kinds (FAK)”; “said to contain (STC)”, and “consolidated cargo” are NOT acceptable descriptions.

Be aware that in addition to the 24-hour advance notice requirement, time must also be allowed to receive the Customs approval and rectify any problems noted by Customs. It is recommended that up to 4-5 days be allowed for this entire process before shipment loading. Delays or rejections may result in various complications such as:

- missed sailings and rolled shipments.
- demurrage and other costs at origin & destination.

Phoenix took immediate compliance action when Customs first announced the directive in October of 2002. We are doing everything possible to ensure that our systems are in place by February 2nd. We have met the necessary US Customs requirements and acquired the software needed to transmit the manifests, and are currently awaiting the final testing of our transmission process. Customs has advised that they will look favorably upon those Carriers/NVOCCs that have performed diligently in their efforts to comply with the directive.

As this is all new to Customs and Carriers/NVOCCs alike, it is likely that complications and delays will play a part in the process in the coming weeks. The electronic manifest submittal process incorporates many different entities and computer systems, some more able and prepared to deal with these new requirements than others. In order to reduce the effects these complications will have on your shipments, we urge you to do the following:

- Go to the Customs website and read the AMS FAQ.
- Ensure your supplier knows what cargo details to provide in order to obtain cargo load approval from US Customs, and provides those details to our office or agent in a timely fashion.
- Allow as much time as you can to receive the cargo load approval.
- Expect delays due to Customs rejections.
- Plan accordingly to accommodate the complications.

Phoenix is committed to compliance with the Customs directive, securing cargo load approvals and the continued smooth handling of your shipments. We will keep you apprised of developments and gratefully thank you for your cooperation and understanding.

Sincerely,

Phoenix International Freight Services, Ltd.

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Media Contact:
Drew Felling
Director of Marketing
Phoenix International
(816) 891-9169, ext. 129
drewf@corp.phoenixintl.com