Enforcement Phases 2 & 3 of Mandatory e-Manifest: Truck for Advance Cargo Information Purposes in WA, AZ, and Certain ND Ports Delayed a Minimum of 30 Days
In January 2007, U.S. Customs and Border Protection (CBP) issued an electronic notice which announced 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.
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According to CBP, Phase 1 of enforcement (informed compliance) went into effect on January 25, 2007 with the filing of the e-Manifest being mandatory but CBP exercising enforcement discretion in the form of a minimum of 60 days of informed compliance.
ACE Began Experiencing Problems with Messaging to Trade Participants in February 2007
According to a recent CBP notice, in February 2007, ACE began experiencing recurring problems with messaging to the trade participants, which prevents e-Manifest transmitters from knowing if they have successfully transmitted to CBP. This problem could potentially cause a situation where a carrier has filed a manifest, had it rejected by the system but did not receive the reject, arrive at the border and be denied a permit to proceed into the U.S. CBP adds that it has developed a fix for the problem and the fix is scheduled for deployment in April 2007.
CBP Delays Phase 2 and 3 Enforcement Dates a Minimum of 30 Days
CBP states that the messaging problem has been communicated to the trade and because CBP has previously stated that no enforcement actions would be taken beyond informed compliance if these actions were caused by CBP system problems, Phase 2 and 3 enforcement dates have been delayed a minimum of 30 days.
New Enforcement Date for Phase 2 is No Earlier Than April 26, 2007
CBP states that the new enforcement date for Phase 2 is no earlier than April 26, 2007. CBP notes that Phase 2 was previously scheduled to start no earlier than March 26, 2007 and will involve denying a permit to proceed into the U.S. to any conveyance that did not at least attempt to file an e-Manifest.
CBP has previously stated 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 added that validation of e-Manifest participation should ideally take place in a secondary inspection environment.
New Enforcement Date for Phase 3 is No Earlier Than May 26, 2007
CBP also states that the new enforcement date for Phase 3 is no earlier than May 26, 2007. According to CBP, Phase 3 was previously scheduled to start no earlier than April 26, 2007 and will deny a permit to proceed into the U.S. any time a truck arrives without an e-Manifest that is successfully received by CBP.
CBP has previously stated that 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 explained that egregious violators are defined as those carriers that make no attempt to comply with the requirements.
CBP Will Monitor Compliance Rates/System Issues Prior to Beginning of Phase 2
CBP notes that it will continue to monitor the compliance rates and system issues prior to beginning the next phase of enforcement. CBP further notes that at this time, this issue only involves the ports in Washington, eastern North Dakota, and Arizona.
(CBP has previously stated 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 noted 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.)
(See ITT's Online Archives or 01/12/07 news, 07011205, for BP original BP summary of the phased enforcement for these ports.)
CBP notice available by sending request to documents@brokerpower.com