CBP Guidelines on Penalties/Liquidated Damages for Failure to Comply with Advance Electronic Cargo Information Requirements (Part II ADDENDUM - NVOCCs, ABI Filers, Etc.)
In the July 6, 2005 issue of the U.S. Customs and Border Protection Bulletin, CBP issued a notice containing guidelines with the following title, which are effective July 6, 2005:
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Guidelines for the Assessment and Mitigation of Penalties Against Arriving Vessel, Air and Rail Carriers for Failure to Comply with the Advance Electronic Cargo Information Requirements; Guidelines for the Assessment and Cancellation of Claims for Liquidated Damages Against NVOCCs, Slot Charterers and Other Parties Electing to Transmit the Advance Electronic Cargo Information for Failure to Comply with the Advance Electronic Cargo Information Requirements
This is Part II- ADDENDUM of a multi-part series of summaries on these guidelines and focuses on certain omitted/incorrect information in the guidelines regarding mitigation for certified C-TPAT members.
(See future issues of ITT for additional summaries. See ITT's Online Archives or 07/13/05 news, 05071305, and 07/15/05 news, 05071510 for Part I - II.)
Guidelines Fail to Clearly Indicate that Authorized Electronic Transmitters that are Certified C-TPAT Members are Eligible for Additional Mitigation
Authorized electronic transmitters are those that elect to transmit advance electronic cargo information, such as non-vessel operating common carriers (NVOCCs), slot charterers, etc. for vessel cargo, and Automated Broker Interface (ABI) filers, Express Consignment Carrier Facilities, etc. for air cargo.
According to the guidelines and CBP sources, such an authorized electronic transmitter, if a certified C-TPAT member, may receive mitigation of at least 50% of the normal mitigation amount. For example, if a liquidated damages claim is normally mitigated to $1000 (the lowest mitigation amount for first violations by non-C-TPAT members), a liquidated damages claim assessed against a certified C-TPAT member should be mitigated to an amount of no more than $500.
However, the guidelines fail to clearly indicate this additional benefit is available to these authorized electronic transmitters (see Section II. E.1 (first violation), Section II. E.2 (subsequent violations), and Section II. F.1c (mitigating factors).
(In Part II of BP's series of summaries on these guidelines, the errors in Section II. E.2 (first violation), and in Section II. F.1c (mitigating factors) were noted.)
CBP sources are checking on whether a correction to these guidelines will be issued.
CBP notice (CBP Dec. 05-23) available in July 6, 2005 CBP Bulletin (Vol. 39, No. 28) at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2005/vol39_07062005_no28/