Business Guide on Electronic Applications in Textiles & Clothing (T&C) Trade

How will new technologies used by apparel buyers and retailers affect suppliers in developing countries?


U.S. Customs Advanced 24 Hour Manifest Rule

The 24-hour rule requires sea carriers and NVOCC’s to provide U.S. Customs with detailed description of the contents of sea containers bound for the United States – 24 hours before the container is loaded on board a vessel. The rule allows U.S. Customs officers to analyze the container content information and identify potential terrorist threats before the U.S. bound container is loaded at the foreign seaport, not after it arrives in the U.S.port.

What data does U.S. Customs require?

The main data required in order for US Customs to screen cargo is: What is in the container, and, what are the shipper and consignees details. To be more detailed, the data should include:

  • A precise and accurate description of the merchandise being shipped and/or the Harmonized Tariff Schedule (HTS) numbers to the 6-digit level under which the cargo is classified. The specific quantities, weight, shipping units and the usual measurement data is also required. The shipper's declared details providing the descriptions, quantities, weight, etc…should be presented using actual commercial invoices and packing list or if not available at the time of shipment, a written declaration providing the specifics of the cargo being shipped. Generic descriptions, specifically those such as "FAK" ("freight of all kinds"), "general cargo", "STC" ("said to contain") and “GDSM” (General Department Store Merchandise) are not acceptable.  If Letters of Credit or other financial instruments require the use of commodity descriptions that do not match the HTS classifications, we recommend that you review this to ensure that product information is consistent throughout the process.

  • The shipper's complete name and address, or identification number, from all bills of lading.  (The identification number will be a unique number assigned by U.S. Customs upon the implementation of the Automated Commercial Environment).

  • The complete name and address of the consignee or the owner or owner's representative, or identification number, from all bills of lading.   (The identification number will be a unique number assigned by U.S. Customs upon implementation of the Automated Commercial Environment).

  • “To Order” Bills of Lading can still be issued but the owner or owner’s representative is the party that must be listed in place of the consignee in the manifest provided to US Customs.

Commencing February 2, 2003, seaports will issue "do not load messages" to the carriers/NVOCCs for clear violations of the 24-hour rule. Initially, enforcement efforts will focus only on the cargo description. If the cargo description is clearly in violation of the 24-hour rule -- a blank description, “FAK”, “STC” (no other description), “consolidated cargo”, "general merchandise", “26 pallets”, "various retail merchandise", or another similarly vague description -- ports will issue a "do not load message" on these shipments. The "do not load message" will be made to the carrier's/NVOCC's representative by telephone and/or fax or by email, if the carrier can provide the port with a single email address to use as a point-of-reference.

Once the ports have issued the "do not load message" cargo should not make its originally intended voyage. Carriers/NVOCCs should only load the cargo after Customs has given approval to load by telephone and/or fax or removed the do not load message in AMS. If cargo is loaded without prior approval by Customs, the container will be denied permit to unlade at all U.S. ports.

Cargo Description:

Item (vii) requires a “precise description and weight of the cargo or, for a sealed container, the shipper’s declared description and weight of the cargo.”

The regulation requires a precise narrative description of the cargo or the 6-digit tariff number for those with the skill to provide it correctly. If there is doubt about the accuracy of a 6-digit tariff number, which can sometimes be difficult to ascertain, a precise narrative description should be used.

To be clear, IN NO CASE is a blank description, freight all kinds (FAK), said to contain (STC), general merchandise, “26 pallets”, various retail merchandise, consolidated cargo or other similarly vague descriptions acceptable. On February 2, 2003, Customs will initiate strong enforcement actions in cases where these kinds of general descriptions, which have continued during the transition period, are still present. The following terms are meant to be used as a guide. They are illustrative, not exhaustive, examples of acceptable and unacceptable descriptions. Phrases or words in parenthesis are meant as examples.

Not Acceptable

Acceptable

Apparel

Wearing Apparel

Ladies' Apparel

Men's Apparel

Clothing

Shoes

Jewelry (may include watches)

Appliances

Kitchen Appliances

Industrial Appliances

Heat Pump

Auto parts

Parts

New Auto parts

Used Auto parts

Caps

Baseball Caps

Blasting Caps

Bottle Caps

Hub Caps

Chemicals, hazardous

Chemicals, non-hazardous

Actual Chemical Name (not brand name)

Or U.N. HAZMAT Code Identifier #

Electronic Goods

Electronics

Computers

Consumer Electronics, Telephones

Electronic Toys (can include Game boys, Game Cubes,

Dancing Elmo Doll etc.)

Personal/Household Electronics (PDA's, VCR's, TV's)

Equipment

Industrial Equipment, Oil Well Equipment

Automotive Equipment, Poultry Equipment etc.

Flooring

Wood Flooring, Plastic Flooring, Carpet, Ceramic Tile,

Marble Flooring

Foodstuffs

Oranges

Fish

Packaged Rice, Packaged Grain, Bulk Grain

Iron

Iron Pipes, Steel Pipes

Steel

Iron Building Material, Steel Building Material

Leather Articles

Saddles

Leather Handbags

Leather Jackets, Shoes

Machinery

Metal Working Machinery

Cigarette Making Machinery

Machines

Sewing Machines

Printing Machines

Pipes

Plastic Pipes

PVC Pipes

Steel Pipes

Copper Pipes

Plastic Goods

Plastic Kitchenware, Plastic House ware,

Industrial Plastics

Toys, New/Used Auto Parts

Polyurethane

Polyurethane Threads

Polyurethane Medical Gloves

Personal Effects

Household Goods

Rubber Articles

Rubber Hoses

Tires

Toys

Rubber Conveyor Belts

Rods

Welding Rods

Rebar

Aluminum Rods

Reactor Rods

Scrap

Plastic Scrap

Aluminum Scrap

Iron Scrap

STC (Said to Contain)

General Cargo

FAK (Freight of All Kinds)

"No Description"

Tiles

Ceramic Tiles

Marble Tiles

Tools

Hand Tools

Power Tools

Industrial Tools

Wires

Electric Wires

Auto Harness

Coiled Wire (Industrial)

Shipper’s Name and Address:

The name and address of the actual shipper must be used. The second notify party is to allow parties that are automated with Customs to receive electronic information concerning the shipment. Currently, the information Customs receives about the shipper is not helpful in making risk determinations. For example, identifying the shipper as a carrier, bank or importer does not provide Customs with useful information. Providing this type information will invite closer scrutiny and increase the likelihood that the shipment will be examined. However, the adequacy of the shipper description will not be the initial focus of Customs' enforcement of the 24-hour rule, although Customs may issue "do not load messages” for shipments where the shipper description is left blank.

Consignee and To Order Bills:

Customs recognizes that for business and financial reasons “to order” must be placed in the consignee field. Therefore, Customs has decided that “to order” will be acceptable in the consignee field. However, this field must contain “to order of (the actual name of the bank, shipper, etc)” and address, and the first notify field must contain the actual consignee with the U.S. name and address.

Customs further recognizes that for FROB cargo the actual consignee will not be located in the United States. Therefore, for FROB cargo the actual consignee name and foreign address must be listed in the first notify field. However, if the shipment in not a “to order” shipment, the actual consignee name and

Address must be listed in the consignee field.

Seals:

Customs requires the “seal numbers for all seals affixed to containers. Sea carriers are expected to “ensure high security seals or locks are affixed on all loaded containers".

If the carrier receives a container where the seal has been tampered or the seal number does not match the shipping documents the carrier should notify Customs. This notification should happen as soon as the discrepancy is noted. If the discovery of the discrepancy is noted after receipt of the transmission of the bill of lading (within the 24-hour period) the carrier should notify Customs, but the 24-hour review start time will continue to be based on the transmission of the original bill of lading data.

Canada/Mexico Shipments:

For cargo shipped from a foreign port to Canada or Mexico and then trucked or railed across the border to a final U.S. destination the 24-hour rule does not apply. However for vessels that are departing Canada or Mexico with cargo destined for the United States, the 24-hour rule does apply.

Diversion to a Foreign Port:

If cargo has been cleared to sail to the U.S. from a foreign port and the vessel carrier decides to divert by dropping cargo in Freeport, Bahamas to load aboard another vessel for subsequent entry to the U.S. This cargo would have to once again comply with the 24-hour rule. If a carrier drops a Canadian first port of call, and comes directly to the U.S. with Canadian destination cargo aboard that has not been subjected to the 24 hour advance manifest filing obligation the Carriers must notify U.S. Customs at the designated first port of arrival as soon as they realize they are not going to make the foreign port of call. The carrier should then transmit the manifest with corrections indicating the missed foreign port of call. Upon arrival in the U.S. port the cargo declaration will be placed on hold until Customs has had the opportunity to review the documentation, any examinations will be conducted and appropriate penalties may be issued.

FROB:

FROB cargo is cargo that is loaded in a foreign port and is to be unloaded in another foreign port with an intervening vessel stop in one or more ports in the United States. All of the data elements required under the regulation must be provided for FROB cargo. Customs recognizes that for FROB cargo, the actual shipper, consignee and notify party may not be associated with an address in the United States. Therefore, Customs would not require an U.S. address on these data elements.

Missed Voyages:

If information on a container has been transmitted 24 hours prior to lading on the vessel and the 24 hours have expired without the carrier receiving a “hold” message from Customs, but for some reason the container misses the sailing of the vessel.

If the container information was initially transmitted in compliance with the 24 hour rule and was not issued a do not load message, the container would be allowed to sail on the next scheduled voyage without requiring a new 24 hour period, provided that:

  • The original bill of lading is deleted from the original vessel.

  • The bill of lading is input on the second vessel without any changes to the bill information with the exception of the changes required to the transportation/voyage data.

  • The next scheduled voyage must be within 24 hours of the previous departure time. If this is not the case, a new 24-hour time frame will be required prior to loading on the second vessel.
    In all cases the cargo declaration must be amended to reflect the deletions and additions of the bills of lading that were deleted or added to a voyage.

Requirements for NVOCC’S:

Non – automated NVOCC’s:

Beginning February 2, 2003, no NVOCC will be authorized to present paper cargo declarations to Customs. They will be required to submit their cargo declarations directly to the vessel carrier for input into the vessel AMS program to be received by Customs 24 hours prior to lading at the foreign port.

Customs has not required that NVOCCs become automated, but has authorized the option of automation. The time frame given for NVOCCs to submit paper cargo declarations directly to U.S. Customs will expire on February 2, 2003. This time frame will not be extended. There are several interim options for this segment of the trade to provide information in an automated format to Customs. These options are: Utilizing a service provider, a port authority, direct interface with U.S. Customs, or submitting paper cargo declarations to the carrier for input into AMS or for inclusion on the non-automated carriers cargo declaration. It should be noted that a direct interface with U.S. Customs requires a period of lead time and therefore, companies may want to use one of the other options until their direct interface is completed.

Automated NVOCC’s:

NVOCCs that become automated will be required to submit a completed cargo declaration to Customs. The automated NVOCC must include the vessel carrier that has contracted with the NVOCC as the second notify party. If the vessel carrier is transmitting the cargo declaration to Customs for a non-automated NVOCCs the NVOCC must provide complete cargo declaration for all bills of lading to the vessel carrier.

Holds and subsequent removal messages will be sent to the party that transmitted the manifest data to Customs through AMS and also to any parties designated for secondary notification. For carriers that submit paper cargo declarations, the party presenting the cargo declaration to Customs will receive the notifications.

The automated NVOCC would be required to list the vessel carrier as the second notify party. If a container is denied lading at the foreign port, Customs will notify the automated NVOCC, and it will be the NVOCCs responsibility to make the necessary notifications.

There are 14 data elements mandated by US Customs to be provide by the Ocean Carrier or NVOCC:

  1. The last foreign port before the vessel departs for the US

  2. The carrier SCAC Code

  3. The carrier assigned voyage number

  4. The date the vessel is scheduled to arrive at the first US port in Customs territory

  5. The numbers and quantities from the carrier’s ocean bills of lading . The carrier must transmit the quantity of the lowest external packaging unit.

  6. The first foreign port where the carrier takes possession of the cargo destined to the US

  7. Either a precise description and weight of the cargo or the Harmonized Tariff Schedule Number.

  8. The shipper’s complete name and address or identification number from all obl’s.

  9. The complete name and address of the consignee or the owner or the owner’s representative or identification number from all bills of lading.

  10. The vessel name, country of documentation and official vessel number (IMO # assigned to vsl)

  11. The foreign port where the cargo is laden on board.

  12. Internationally recognized hazardous material code when such materials are being shipped.

  13. Container numbers

  14. The seal numbers for all seals affixed to containers.