02 May 2003
U.S. Expands Enforcement of Maritime Cargo Security Rules
(Imposes monetary penalties for non-compliance) (940) The U.S. Bureau of Customs and Border Protection (CBP) is expanding enforcement of the "24-hour rule" that requires advance cargo declarations for vessels sailing from foreign ports to the United States. In a May 1 news release, CBP said it would begin May 4 to issue "Do Not Load" messages for carriers that fail to provide adequate cargo descriptions, and to impose monetary penalties for late submissions. Previous enforcement efforts had focused only on "significant" violations of the 24-hour rule, which became effective in December 2002, according to CBP. Starting May 15, CBP will issue "Do Not Load" messages for clear violations of the name and address requirement for cargo recipients and will impose monetary penalties for foreign cargo that does not have a valid description and was loaded without providing U.S. officials 24-hour advance notice. Carriers may be assessed a $5,000 penalty for first violations and $10,000 for any subsequent violations, CPB said. The bureau said that it had reviewed more than 2.4 million bills of lading between February 2 and April 29 and that about 260 containers with inadequate cargo descriptions were denied loading for violation of the 24-hour rule. Most of these violations were resolved in time for the shipment to make its original voyage, according to the news release. CBP became an agency of the Department of Homeland Security on March 1, 2003, combining employees from the Department of Agriculture, the Immigration and Naturalization Service (INS), the Border Patrol and the U.S. Customs Service. Following is the text of the news release: (begin text) Customs and Border Protection U.S. Department of Homeland Security Thursday, May 01, 2003 CBP Expands Enforcement of the 24-Hour Rule Washington, D.C. -- U.S. Customs and Border Protection (CBP) Commissioner Robert C. Bonner today announced that CBP will begin the next phase of enforcement for the 24-hour rule. The 24-hour rule requires an advance cargo declaration from sea carriers and became effective on December 2, 2002. CBP uses the cargo information to identify and eliminate potential terrorist threats before a vessel sails from a foreign port to U.S. seaports, rather than after a vessel and its cargo arrives in the United States. The expanded enforcement actions include: 1. On May 4, 2003, CBP will issue "Do Not Load" messages for containerized cargo that has an invalid or incomplete cargo description. Initially, enforcement efforts focused only on significant violations of the cargo description requirements of the 24-hour rule. For example, the use of such vague cargo descriptions a "Freight-All-Kinds," "Said-To-Contain," or "General Merchandise" was not tolerated. 2. On May 4, 2003, CBP will issue monetary penalties for late submission of cargo declarations. 3. On May 15, 2003, CBP will issue "Do Not Load" messages for clear violations of the consignee name and address requirement. For example, consignee fields left blank, or the use of "To Order" and "To Order of Shipper" without corresponding information in the consignee field and notify party field, or consignee name with no address, incomplete address or invalid address are not acceptable. 4. On May 15, 2003, CBP will issue monetary penalties for Foreign Remaining on Board (FROB) cargo that has an invalid cargo description, and has been loaded onboard the vessel without providing CBP a 24-hour time frame for targeting. Carriers may be assessed a $5,000 penalty for first violation and $10,000 for any subsequent violation attributable to the master. Non-vessel operating common carriers (NVOCCs) may be assessed liquidated damages in the amount of $5,000. Every subsequent violation will also be $5,000. "The global supply chain and the seaports of the United States are more secure from terrorist threat since the inception of the 24-hour rule, but there is still more work to do," said Commissioner Bonner. "We are taking the next step in our compliance strategy to see that all of the rule's requirements are complied with. Our goal is to achieve full compliance quickly and efficiently while still maintaining a high rate of trade compliance." On February 2, 2003, enforcement of the rule began. This initial phase focused on significant violations of the cargo description requirement. Vague cargo terms such as "freight of all kinds," "said to contain," "consolidated cargo," "general merchandise," and "various retail merchandise" were not accepted. Containerized cargo with this type of description was issued a "Do Not Load" message while still in the foreign port. If cargo was loaded without prior approval by CPB, the container was denied permit to unlade at all U.S. ports. CBP reviewed more than 2.4 million bills of lading for the period between February 2 to April 29, 2003. About 260 containers with inadequate cargo descriptions were denied loading for violation of the 24-hour rule. Most of these violations were resolved in time for the shipment to make its original voyage. CBP expects to see the same type of strong compliance by the trade under the second phase of enforcement. CBP has posted a "Frequently Asked Questions" (FAQ) section on its Web site (www.cpb.gov) for those who have questions about the 24-hour rule. Additionally, members of the trade community can email their questions to CBP at traderelations@customs.treas.gov. CBP is also working with the Treasury Advisory Committee on the Commercial Operations of the U.S. Customs Service (COAC) to implement the rule. (end text) (Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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