2. Trade Act of 2002 Office of Field Operations Kimberly Nott, Chief Manifest and Conveyance Branch September 2004

3. 3 Requirements of the Trade Act  Original Trade Promotion Act, section 343(a) was amended by Section 108 of the Maritime Transportation Security Act of 2002.  TPA - signed August 6, 2002; PL 107-210  MTSA - signed November 25, 2002; PL 107-295  By October 1, 2003, CBP must endeavor to promulgate regulations providing for:  Electronic transmission for cargo destined to and from the United States, prior to the arrival or departure of such cargo;  Determined by the Secretary to be “reasonably necessary” to ensure cargo safety and security.

4. September 2004 4 Highlights of The Proposed Rule The proposed rule will increase homeland security Timely data to meet CBP operational needs Better data and automated targeting in all modes The proposed rule will build on existing systems Minimizes costs to CBP and trade Allows for prompt implementation Increases compliance The proposed rule incorporates many trade comments

5. September 2004 5 Timeline of Final Regulations  Notice of Proposed Rulemaking published 7/23/03.  Comment period closed 8/22/03.  128 comments received.  Final rule included a more detailed Economic Analysis, available on the CBP Web-site.  Final regulations were approved by DHS and OMB.  CBP complied with the report to Congress on the final rule.  Trade Act final rule published in Federal Register on December 5, 2003 (68 FR 68140).

6. September 2004 6  Truck- via Automated Broker Interface (ABI) 30 min. Free And Secure Trade (FAST) - via ABI 1 hour non-FAST - eventual use of Automated Commercial Environment (ACE) manifest - Border Release And Selectivity System (BRASS) gradual reduction in use  Rail- via Automated Manifest System (AMS) 2 hours before arrival  Vessel- via AMS 24 hours before lading foreign  Air- via AMS 4 hours before arrival, - time of departure from NAFTA and Central America, north of the equator in South America Timeframes - Inbound

7. September 2004 7  Truck- via Automated Export System (AES) 1 hour prior to arrival at border crossing  Rail- via AES 2 hours prior to arrival at the border  Vessel- via AES 24 hours prior to departure from each U.S. port of lading.  Air- via AES 2 hours prior to scheduled departure from the last U.S. port Timeframes - Outbound

8. September 2004 8  Vessel - Before March 4, 2004 (Completed)  Rail - Three phases: July 12, 2004; August 10, 2004; September 9, 2004. (Completed)  Air - Three phases: August 13, 2004; October 13, 2004; December 13, 2004.  Truck - Three phases: November 15, 2004; December 15, 2004, January 14, 2005.  Outbound - Date will be announced in a Federal Register notice (in cooperation with Census Bureau, anticipated Fall 2004). Implementation Timeline

9. September 2004 9  Vessel timeframe for compliance was March 4, 2004.  Similar to the 24-hour rule with the requirement that cargo information must be submitted electronically.  Additional data elements for date and time of sailing.  Set timeframes for bulk and approved break-bulk vessels for CBP to receive cargo information.  Any vessel arriving in the U.S. that has not submitted its cargo declaration to CBP electronically will be denied unlading in the U.S. Enforcement Guidelines - Vessel

10. September 2004 10  July 27, 2004 memo to field offices on Enforcement Strategy  First 30-days must receive cargo information electronically two hours prior to arrival, or train will be held; CBP will issue an informed compliance letter for egregious violations of :  timeliness  precise cargo description  missing or invalid shipper information  missing or invalid consignee information  conveyance name, equipment and trip number.  On day 31 - failure to submit required information will result in train being held and a penalty being issued. Enforcement Guidelines - Rail

11. September 2004 11 Air - Regulatory Provisions Time frames for reporting data Arrivals from nearby foreign areas  North America, Mexico, Central America, South America (North of Equator), Bermuda.  Received prior to departure (wheels-up) Arrivals from other foreign areas  Four hours prior to arrival at first U.S. port  Permit to proceed and in-bond origin port  Examples:  (PTP) Japan - Anchorage - JFK  (In-bond) London - Chicago - Dallas

12. September 2004 12  Enforcement Procedures Phase I distributed to field offices on July 14, 2004.  First 30-days only focus on those carriers that failed to automate.  If fail to electronically submit to CBP then term permit or special license is not valid. Paper copy of manifest must be submitted, cargo will be held on plane until targeting is completed. If fail to automate by the fourth week cargo will not be allowed to discharge in the U.S.  On day 31 Enforcement Procedures Phase II will begin. Currently these guidelines are in the signature process so Phase II will be delayed for East Coast. Implementation Timeline - Air

13. September 2004 13  The Federal Register (69 FR 51007) was published on August 17, 2004.  3 Implementation Phases:  November 15, 2004 (40 ports)  December 15, 2004 (43 ports)  January 14, 2004 (16 ports)  Informed Compliance guidelines are being developed. Enforcement Guidelines - Truck

14. September 2004 14 www.cbp.gov - Trade Act of 2002

15. September 2004 15 www.nara.gov - Federal Register

16. September 2004 16  Continue to check the Customs and Border Protection web site for information. (www.cbp.gov)  FAQs will be completed and posted as issues arise.  Utilize the proper points of contact in the final rule. If not the proper contact, generally they cannot address the issue.  Implementation timeline:  Vessel - Before March 4, 2004. (Completed)  Rail - Three phases: July 12, 2004; August 10, 2004; September 9, 2004. (Completed)  Air - Three phases: August 13, 2004; October 13, 2004; December 13, 2004.  Truck - November 15, 2004, December 15, 2004, January 14, 2005.  Outbound - date set in new FR from Census and CBP. Summary