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    Automated Manifest System (AMS)
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Automated Manifest System Changes
November 15, 2002

New U.S. Security Rules
Automated Manifest System [AMS] Changes - 24 Hour Notice

As reported on Wednesday, October 30, 2002, the U.S. Customs Service issued its final rule requiring the presentation of certain manifest information 24 hours prior to loading cargo on a vessel at the foreign port of export. The final rule appears in the October 31st issue of the Federal Register, 67 Fed. Reg 66318.

The effective date of the final rule is December 2, 2002, and Customs has stated that it will not initiate an enforcement action assessing civil penalties for a non-fraudulent failure to comply with the 24 hour rule until 60 days after the effective date [January 31, 2003].

Information about all inward foreign cargo must be listed on a cargo declaration [or equivalent including house bill of lading], including:


a. Last foreign port of call before sailing to the U.S.;
b. The carrier's assigned "standard carrier alpha code;"
c. The voyage number assigned by the carrier;
d. Arrival date at first U.S. port;
e. The number and quantities of goods in each container as stated on the ocean bill of lading (the quantity of the lowest external packaging unit; containers and pallets are not acceptable; for example, a container containing 10 pallets with 200 cartons should be manifested as 200 cartons.);
f. First foreign port where the carrier takes possession of the cargo destined to the U.S.;
g. A precise description [or the six-digit tariff number under the Harmonized Tariff Schedule from the shipper] and weight of the cargo [or shipper's declared description and weight for sealed containers]. "FAK", "General Cargo", "Said To Contain" will not be allowed;
h. Shipper's complete name and address [or identification number assigned by Customs] from the bills of lading;
i. Consignee's [or owner's] complete name and address;
j. Vessel name, country of documentation and official vessel number assigned by the International Maritime Organization;
k. Foreign port where the cargo is loaded aboard the vessel;
l. Internationally recognized hazardous materials codes, if applicable;
m. Container numbers; and
n. Seal numbers.

Although these changes primarily affect carriers and NVOCCs who are responsible for transmitting the cargo manifest data in a timely manner to Customs, importers, who do not following these regulations, will likely feel the effects in:

1. Having their cargo not loaded aboard the ship at the foreign port,
2. Potential exposure to intensive cargo examinations, and/or
3. Potential denial or delays in obtaining permission to unlade at a U.S. port.

Therefore, importers are urged to work closely with their foreign suppliers and logistics service providers to ensure that accurate information about the cargo will be provided to Customs in a timely manner.

The new rule provides some important issues requiring importer awareness including:

Confidentiality: Customs intends to protect the confidentiality of manifest information until the complete manifest is filed with Customs. However, it is recommended that all importers contact their Customs lawyer to file a request for manifest confidentiality as current regulations only allow attorneys to file such confidentiality certifications on behalf of importers.

Cargo Description: Customs' requirement for a precise description of the cargo does not allow for generic descriptions, such as "freight of all kinds" ["FAK"], "general cargo" and "said to contain" that are commonly used on transportation documents. Additionally, such categorical descriptions, such as "chemicals" or "foodstuffs," are likewise insufficient as descriptions. Therefore, importers should supply the foreign shipper with a specific description of the merchandise and the applicable HTS to the six-digit level.

Consignee Information: The regulations require the complete name and address of the consignee [owner], and it has been suggested that importers confer with the foreign shipper to review such information for accuracy.

Because Customs is implementing this regulation over a short period of time, importers are strongly encouraged to review their supply chain security and import compliance procedures to assess whether current practices need to be updated to reflect the new notice requirements.

Finally, it is being encouraged that all parties consider participation in the Customs-Trade Partnership Against Terrorism ["C-TPAT"] program to ensure that their supply chain security procedures meet Customs' trade security priorities. For more information concerning C-TPAT, go to http://www.customs.treas.gov