Required Advance Electronic Presentation of Cargo Information - Air; Final Rule US Customs and Border Protection JANUARY 2004

CBP Published the Final Rule in DEC 2003 The rule is effective 05 JAN 2004 Implementation date –Ocean: within 90 days of 05 DEC 2003 –Air: on and after 04 MAR 2004 –Truck/Rail: on and after 90 days from CBP publish a notice in the Federal Register (CBP has not yet decided the required system) –Export control (out of US): will be implemented concurrent with the completion of the redesign of AES commodity module. No firm date yet.

It is noted that As far as AIR is concerned, there is no significant variance between the final rule (DEC 2003) and the draft (JUL 2003) Letters and documents are exempted Require additional data in case of split shipments CBP do not intend to issue notices when Air AMS data have been entered and accepted

Key Points - Import to U.S. Air carrier will bear primary responsibility Submit information through “ Air AMS ” Departures from Mexico, Canada, Central America, South American north of the equator, the Caribbean, and Bermuda - Wheels up Other locations - No later than 4 hours prior to the aircraft ’ s arrival in the United States There will be no pre-departure-screening-and hold process applied to air cargo

Items Excluded Virtually all cargo must be accounted for in the submission, including company materials Diplomatic/consular pouches are subject to the rule. Description of shipment as “ diplomatic pouch ” will be sufficient detail for description. International mail are excluded Letter and document are exempted

Consolidation Air carriers submit the master air waybill Individual “ house air waybills ” –Air carriers –entity responsible for the master shipment if it is capable of submitting data to CBP If the consolidator does not qualify to file information electronically, it must provide the carrier with all data required for the individual house-waybilled shipments and the carrier must submit that data to Air AMS

Trucked across the U. S. Border Air cargo that will be trucked across the U.S. border, even if arranged for by an air carrier, must comply with requirements for truck shipments

Export from U.S. Air carriers will not be directly responsible for submitting electronic data Exporters or their agents will be required to submit data no later than two hours prior to scheduled aircraft departure using the Automated Export System Before loading cargo, carriers must receive from shippers an “ electronic filing citation ”. This information must be included on the corresponding manifest or waybill

Cargo Information from Air Carrier (1) Air waybill number (M) Trip/flight number (M) Carrier/ICAO code (M) Airport of arrival (M) Airport of origin (M) Scheduled date of arrival (M)

Cargo Information from Air Carrier (2) total quantity based on the smallest external packing unit (M) Total weight (M) Precise cargo description (M) Shipper name and address (M) Consignee name and address (M) Consolidation identifier (C)

Cargo Information from Air Carrier (3) Split shipment indicator (C) Permit to proceed information (C) Identifier of other party which is to submit additional air waybill information (C) In-bound information (C) & onward carrier identifier, if applicable (C) Local transfer facility (C)

Cargo Information from Carrier or Other Filer Information for all house air waybills under a single master air waybill consolidation Essentially, the fields are the same as required for master air waybill The incoming air carrier must present the HAWB information unless another party specified in the rule elects to present the information direct to CBP

Additional Cargo Information from Air Carrier, Split Shipment Additional data elements for each HAWB HAWB number, transportation and arrival information, manifested and boarded quantities, and the manifested and boarded weights Accurate loading information by unit at HAWB level is mandatory, both from cargo agent (pre-packed) and CTO (in terminal build up)

Shipper Provide Inaccurate Information CBP will take into consideration how, in accord with ordinary commercial practices, the presenting party acquired the information submitted and whether and how the party is able to verify such information. Where the information is not reasonably verifiable, the party will be permitted to present such information based upon a reasonable belief as to its accuracy

Data Submitted by Other Filer The carrier will indicate in the MAWB record if another party will be transmitting the HAWB data. If such other party fails to comply with the advance cargo report provisions, this party, and not the incoming carrier, will be held liable.

Corrections to Cargo Information Complete and accurate information would need to be presented to CBP for cargo laden aboard the aircraft no later than the applicable time specified As for any changes in the cargo information already transmitted for a flight, the procedure for amending the cargo declaration including reporting will be the subject of a separate rulemaking

Cargo agent has to submit to the carrier –Required HAWB data stated in the rules electronically –HAWB summary providing the required data stated in the rules –Loading information by unit at HAWB level for pre-packed shipment The carrier has to –Reasonably verify the data submitted

Landing Rights The provision to deny landing rights is generally intended for those air carriers that fail, repeatedly and egregiously, to furnish timely and accurate cargo information in advance This provision would not be executed without careful deliberation and dialogue with the air carrier as to its lack of compliance

Systems Failure Local CBP decide In the event of AMS failure, use manual submission In the event of carrier systems failure, carrier report to local CBP and local CBP would advise the required fall back

Diversion/Fuel Stop Fuel stops will not be excluded from the advance reporting requirement The airline must notify CBP at the designated first port of arrival (the diverted port) as soon as it realizes it is not going to initially reach the original port of arrival. The carrier would then need to re-transmit the electronic cargo information with corrections to reflect the new (diverted) arrival port

Data Privacy Acknowledge agent’s concern Corporate data protection policy Use the data provided only for the originally stated purposes Store securely Protect from unauthorized use Purge as soon as practical as dictated by the operational needs

CLG Action Items Confirm the roles and responsibility with HAFFA and Shippers Industry best practice Possible charge to cover the additional cost