M1 to Offer Bond Holders Protection Against Unauthorized Use, Etc.
U.S. Customs and Border Protection has issued a notice stating that with the deployment of Automated Commercial Environment M1 (e-Manifest: Ocean and Rail) processing capabilities in spring 2009, a new custodial bond user verification feature will be available for ACE account holders.
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(CBP officials recently reported that M1 is likely to be deployed in May 2009.)
Bond Holder Will be Able to Maintain List of Entities Authorized to Use Their Bond
The optional capability will allow the bond holder to input and maintain a list of entities that are authorized to use their custodial bond within the ACE Secure Data Portal. The new feature will offer bond holders protection and reduce the likelihood of fees and penalties associated with unauthorized bond use.
The bond holder must have an ACE account to take advantage of the new feature. The bond holder can then create an authorization record within the portal that allows either a carrier or an Automated Broker Interface (ABI) entry filer to invoke their custodial bond.
Bond Holder Can Customize Authorization Record
The bond holder can also customize the authorization record to specify the ports at which the authorized entity can use its custodial bond and place a date-specific time limit during which the authorization is valid. Once a bond holder enters one entity as an authorized bond business partner, including themselves, all other in-bond requests that do not meet the described criteria will be rejected.
Bond Holder Will be Notified of Rejected Bond Use Requests
Prior to processing in-bond cargo, ACE will ensure that the initiating carrier is an authorized bonded carrier and has a Type 2 custodial bond on file. Then, ACE will perform a series of checks to determine whether the entity requesting in-bond movement authorization is the owner of the custodial bond associated with the movement.
If these two entities differ, ACE will verify that the entity initiating the in-bond movement is included in the carrier's bond authorization table and will ensure that there are no port or date restrictions. If the bond request is valid, the cargo will be authorized for in-bond transportation. If the bond request is invalid, ACE will reject the request and electronically notify the bond holder of the unauthorized bond use attempt, including the bill of lading number, date, party and port.
(See ITT's Online Archives or 04/02/09 news, 09040205, for BP summary of ITDS posting information on M1.
See ITT's Online Archives or 03/26/09 news, 09032615, for BP summary of CBP officials' comments on M1, etc.
See ITT's Online Archives or 03/10/09 news, 09031010, for BP summary of CBP's fourth quarter FY 2008 ACE report to Congress, which says that the M1 delay will impact all subsequent ACE releases.
See ITT's Online Archives or 03/05/09 news, 09030515, for BP summary of CBP announcing that sea carriers will have broker download capabilities with the deployment of M1.)
CBP notice (dated 04/03/09) available at http://www.cbp.gov/xp/cgov/trade/automated/modernization/whats_new/ace_bond_protect.xml