New Maritime Developments Update August 2003 No. 14 www.BlankRome.com Electronic Filing of Vessel Cargo Information © 2003, BLANK ROME LLP. The purpose of the New Maritime Developments Update is to identify select developments that may be of interest to readers. The information contained herein is abridged and summarized from various sources, the accuracy and completeness of which cannot be assured. The Update should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel. New Development On July 23, 2003, the Bureau of Customs and Border Protection (CBP) issued a proposed rule, which, among other things, would require the electronic submission of vessel cargo information to CBP at least 24 hours prior to a vessel departing (1) a foreign port for the United States, and (2) a United States port. This rulemaking also provides similar requirements for inbound and out- bound cargoes shipped via rail, truck and air. Comments are due to CBP by August 22, 2003. Background In October 2002, CBP promul- gated a final rule requiring the sub- mission of cargo information to CBP 24 hours prior to departing a foreign port for the United States. This rule applies to all containerized cargoes. Bulk cargoes are exempt from this rule and certain break bulk cargoes are exempt on a case-by-case basis. Specifically, the 24-hour rule requires: (1) CBP to receive the vessel’s Cargo Declaration (Customs Form 1302) or an electronic equivalent from a carrier 24 hours before the cargo is laden aboard the vessel at a foreign port; (2) a separate listing of all inbound for- eign cargo not destined for the United States and remaining on board the vessel (excluding empty containers); and (3) additional infor- mation for all inward bound foreign cargo, including the foreign port of departure, the carrier code, the date of scheduled arrival, the shippers’ and consignees’ names and addresses for all bills of lading, the vessel name and flag, a precise description of the cargo, and certain other cargo and container information. Vessel carriers voluntarily participating in the Automated Manifest System (AMS) must submit this information electronically. The 24-hour rule also allows non- vessel operating common carriers (NVOCCs) that (1) deliver cargo to a vessel carrier for lading aboard the vessel at a foreign port, (2) are licensed by the Federal Maritime Commission, and (3) are in posses- sion of an International Carrier Bond, to elect to transmit the mani- fest information directly to CBP through the AMS. Alternatively, NVOCCs could provide this infor- mation to the carrier, which, if auto- mated, must submit this information to CBP via the AMS. Summary Inb ound Cargoes The proposed rule would not modify the 24-hour rule in this regard, except that it would require all vessel carriers (not only those volun- tarily participating in the AMS) to file cargo manifest information electroni- cally via the AMS. Specifically, with- in 90 days of promulgation of a final rule, all vessel carriers, and NVOCCs electing to participate, must be auto- mated on the AMS at all ports of entry in the United States where their cargo will initially arrive. Once this occurs, vessel carriers will no longer be required to carry on board their vessel, and produce on demand, the original and a copy of the cargo mani- fest. The Trade Act of 2002 requires regulations to be promulgated no later than October 1, 2003. Outb ound Cargoes The proposed rule would require the “United States principal party in interest” (USPPI), i.e., exporter, or its authorized agent, to electronically transmit to CBP outbound cargo information no later than 24 hours prior to departing a U.S. port. In addition to the cargo information contained in a Shipper’s Export Declaration electronically filed by a USPPI or its authorized agent, vessel carriers would be required to elec- tronically submit the following infor- mation: (1) carrier data, including mode of transportation, carrier identi- fication code, vessel name, country of ultimate destination, and port and estimated date of exportation; and (2) proof of electronic filing or exemption statement, which must be furnished by the USPPI or its autho- rized agent to the vessel carrier, which