Update: CBP Announces Phased Enforcement of Mandatory e-Manifest: Truck for Advance Cargo Information Purposes in WA, AZ, and Certain ND Ports Beginning January 25, 2007

January 12, 2007 |Top News

U.S. Customs and Border Protection (CBP) has issued an electronic notice which announces the phased enforcement of mandatory Automated Commercial Environment (ACE) electronic manifest: Truck (e-Manifest: Truck) for advance cargo information purposes at all land border ports in Washington and Arizona as well as the ports of Pembina, Neche, Walhalla, Maida, Hannah, Sarles and Hansboro, North Dakota beginning January 25, 2007.

(See ITT's Online Archives or 10/30/06 news, 06103005, for BP summary of the Federal Register announcement regarding mandatory requirement for WA, AZ and certain ND ports.)

e-Manifest: Truck Enforcement for Advance Cargo Information to be Phased-in

CBP states that e-Manifest: Truck enforcement discretion for advance cargo information purposes will take place in Washington, Arizona, and the above-listed North Dakota ports in the following phases:

Phase 1 - Informed Compliance (January 25, 2007). Beginning January 25, 2007, CBP will begin to exercise enforcement discretion in the form of an informed compliance period of at least 60 days. This period may be extended based on system performance issues and operational readiness. During this period, CBP officers working in primary lanes will provide an informed compliance notice to the driver of any conveyance that fails to meet the requirement.

Phase 2 - Denial of Permit if no ACE e-Manifest Attempt (March 26, 2007). Beginning no earlier than March 26, 2007, CBP will deny a permit to proceed into the U.S. to any carrier, required to submit an e-Manifest, which arrives without submitting or attempting an e-Manifest. CBP officers may accept the ACE e-Manifest cover sheet as initial proof of this attempt.

CBP notes that prior to the beginning of this phase, CBP officers will also be provided with a process they can use to check for transmission attempts by carriers. CBP adds that validation of e-Manifest participation should ideally take place in a secondary inspection environment.

Phase 3 - Denial of Permit if no ACE e-Manifest (April 26, 2007). Beginning no earlier than April 26, 2007 and continuing as ongoing Trade Act enforcement, CBP will deny a permit to proceed into the U.S. for any truck required to submit an e-Manifest that arrives at one of the ports requiring mandatory use of the e-Manifest without first successfully transmitting an e-Manifest for that trip.

For egregious violations, a monetary penalty ($5,000 for the first offense and $10,000 for subsequent offenses) may be issued to the driver in care of the carrier under 19 USC 1436 (penalties for violations of arrival, reporting, entry, and clearance requirements). CBP explains that egregious violators are defined as those carriers that make no attempt to comply with the requirements.

Additional phases for Timeliness, Accuracy, Etc. Once CBP achieves substantial compliance with the requirements to file e-Manifests, additional phases will be announced for enforcement of other Trade Act elements including timeliness of submission, accuracy of data, and completeness of e-Manifests.

Advance Cargo Information Must be Provided to CBP One Hour (30 Minutes for FAST) Prior to Arrival at First Port, Etc.

CBP states that the e-Manifest: Truck enforcement actions are based on the implementing regulations of the Trade Act of 2002 for truck carriers found in 19 CFR 123.92 (electronic information for truck cargo required in advance of arrival). This regulation requires that advanced electronic cargo information be provided to CBP one hour, or thirty minutes for Free and Secure Trade (FAST) participants, prior to the arrival of the conveyance in the first U.S. port of arrival.

CBP notes that this rule includes goods moving under bond between U.S. ports of entry as well as goods moving in transit through the U.S.

(See ITT's Online Archives or 12/15/03 news, 03121525, for BP summary of CBP's final rule on the requirements of advance electronic transmission of truck cargo information.)

Shipments Exempt from e-Manifest: Truck for Advance Cargo Information

CBP states that the following shipments are currently exempt from the advance electronic filing requirement for incoming cargo:

Cargo in transit from point to point in the U.S. after transiting Canada or Mexico

Certain informal entries:

Merchandise which may be informally entered on Customs Form (CF) 368 or 368A (cash collection or receipt);
Merchandise unconditionally or conditionally free, not exceeding $2,000 in value, eligible for entry on CF 7523; and
Products of the U.S. being returned, for which entry is prescribed on CF 3311.

Shipment Types not Specifically Exempted, but Use of e-Manifest: Truck for Advance Cargo Information Not Required

According to CBP, the following shipment types are not specifically exempted by the regulation, but use of e-Manifest is not currently required:

Merchandise that is subject to the provisions of 19 USC 1321 (Section 321 of the Tariff Act of 1930)

Empty trucks and truck cabs

Shipments consisting solely of Instruments of International Traffic eligible for release under 19 CFR 10.41(a)

All other shipments are required to prove advance electronic cargo information via an e-Manifest, including personal effects using CF 3299.

(See ITT's Online Archives or 09/17/04 news, 04091715, for BP summary of CBP's FAQ on mandatory advance electronic information requirements for truck carriers.)

CBP contact- James Swanson james.d.swanson@dhs.gov

CBP enforcement plan (dated 01/10/07), available at http://www.cbp.gov/xp/cgov/toolbox/about/modernization/carrier_info/electronic_truck_manifest_info/ace_enforcement_plan.xml

BP Note

Please correct the email version of ITT's 01/11/07 news, 07011105, which did not state that the mandatory requirement was for advance cargo information purposes. (The Online Archives version of 07011105 has already been corrected.)