CBP's Proposed Rule on 10+2 for Maritime Cargo (Part V - Comments on Proposed Exemptions/Exclusions from Importer SF)

CBP states that this additional information, which would be submitted by way of a CBP-approved electronic data interchange system¹, will further improve the ability of CBP to identify high-risk shipments in order to prevent the smuggling of terrorist weapons into the U.S. and ensure cargo safety and security.

Written comments on this proposed rule are due by March 3, 2008 (See BP Note).

This is Part V of a multipart series of summaries of this proposed rule, and highlights CBP's responses to comments that were received on the 10+2 Strawman, as well as recommendations of the Departmental Advisory Committee on Commercial Operations of Customs and Border Protection and Related Homeland Security Function's (COAC) Advance Data Subcommittee, regarding proposed exemptions/exclusions from importer SF requirements. See future issues of ITT for summary of additional CBP responses to comments and recommendations received.

When All the Required Elements Are Not Known at Time of Importer SF

A commenter suggested that CBP provide the capability to designate the importer SF for certain shipment types (e.g. carnets, direct duty paid (DDP)/direct duty unpaid (DDU) shipments, consigned goods, returned goods, samples) as involving a transaction for which all the required information cannot be provided at time of filing.

CBP generally agreed; however, CBP stated that the examples provided by the commenter would not be automatically exempt from submitting all the required importer data elements. CBP stated that the proposed regulations require the importer, as defined in the proposed regulations, or its authorized agent, to submit the data elements of the importer SF. If an importer does not know a data element that is required pursuant to the proposed regulations and CBP guidance, the importer must take steps necessary to obtain the information.

CBP added that if an importer believes that a required importer SF data element does not exist for a non-exempt transaction type (e.g. carnets, etc.), the importer should request a ruling from CBP prior to the time required for the importer SF.

CBP explained that if the filing is for a shipment type that CBP has specifically designated exempt from an element or elements, CBP will allow the filer to designate the filing as one of several "exemption" types, including foreign cargo remaining on board (FROB), immediate exportation (IE), and transportation and exportation (T&E) in-bond shipments. (See below for details.)

Handling of Bulk and Break Bulk Cargo

A commenter questioned how bulk and break bulk shipments would be handled.

CBP responded that under the proposed regulations, importers of bulk cargo would be exempt from the proposed importer and carrier requirements if the bulk cargo is also exempt from the 24 hour rule. (See 19 CFR 4.7(b)(2).)

As for break bulk cargo, CBP states that for importer SF purposes, it is proposing to model the treatment of approved break bulk cargo on the 24 hour rule's treatment of it in 19 CFR 4.7(b)(2). As a result, the importer SF for break bulk cargo would be required 24 hours prior to arrival in the U.S.

Importers of break bulk cargo must still report 24 hours in advance of loading any containerized or nonqualifying break bulk cargo they will be importing.

(Note that two proposed elements are different for break bulk shipments: (1) container stuffing location, and (2) consolidator (stuffer) name and address. The names and address(es) of the physical location(s) where the goods were made "ship ready" must be provided for the container stuffing location element, and the names and address(es) of the party who made the goods "ship ready" or the party who arranged for the goods to be made "ship ready" must be provided for the consolidator (stuffer) name and address element.)

Importer SF Would be Required for In-Bond FROB, IE, T&E, Not for IIT

A commenter suggested that FROB and IE and T&E in-bond shipments, and instruments of international traffic (IIT) (e.g., containers, racks, pallets) be exempt from the importer SF in the near term. The commenter added that the final regulations should define additional transactions exempt from the importer SF, including types of transactions identified by CBP in consultation with the trade.

IIT. CBP responded that it is not proposing to require an importer SF for IIT.

In-bond. CBP is proposing to require an importer SF for all other shipments arriving in the U.S. by vessel, including FROB and in-bond shipments, unless specifically exempted under the proposed regulations.

FROB. Under the proposed regulations, an importer SF would be required for FROB, but because FROB is not destined to be received in the U.S., the carrier would be required to only submit the following five data elements: booking party name and address, foreign port of unlading, place of delivery, ship to name and address, and commodity 6 digit Harmonized Tariff Schedule (HTS) number.

IE, T&E. Under the proposed regulations, an importer SF would be required for IE and T&E in-bond shipments. Because IE and T&E shipments are not destined to remain in the U.S., CBP is proposing to require the party taking delivery in the U.S. to only submit the following five data elements: booking party name and address, foreign port of unlading, place of delivery, ship to name and address, and commodity 6 digit HTS number.

Diversions of IE, T&E. CBP adds that it is proposing to amend the regulations to require that, if at the time of submission of the importer SF, the goods are intended to be moved in-bond as an IE or T&E shipment, but later a decision is made to divert the goods, permission to divert the in-bond movement to a port other than the listed port of destination or export or to change the in-bond entry into a consumption entry would be required to be obtained from the port director of the port in which the original in-bond documents were filed. Such permission would only be granted upon receipt by CBP of a complete importer SF.

¹The current approved electronic data interchange systems for the importer SF are the Automated Broker Interface (ABI) and the Vessel Automated Manifest System (AMS). CBP states that if it approves a different or additional electronic data interchange system, CBP will publish notice in the Federal Register.

• Written comments on the proposed rule are due by March 3, 2008 (see BP Note)

(See ITT's Online Archives or 01/07/08 news, 08010705, for Part IV of BP's summary on this proposed rule, with a link to Parts I - III.)

CBP contact - Richard Di Nucci (202) 344-2513

CBP proposed rule (FR Pub 01/02/08) available at http://a257.g.akamaitech.net/7/257/2422/01jan20081800/edocket.access.gpo.gov/2008/pdf/E7-25306.pdf

BP Note

On January 8, 2007, CBP corrected two errors in its proposed rule pertaining to the address and docket number for comments. (CBP correction notice, FR Pub 01/08/08, http://a257.g.akamaitech.net/7/257/2422/01jan20081800/edocket.access.gpo.gov/2008/pdf/E8-50.pdf)