TSN White Paper Recommends Cargo be Released at House BOL Level via ACE

Recommends Release of Cargo at House Level for All Modes of Transportation

The white paper recommends the release of cargo at the lowest shipment level, i.e. House BOL, through ACE via the web portal and Electronic Data Interchange (EDI) for all modes of transportation involved in the carriage of goods.

Cargo Release Currently Handled at Master BOL Level Through AMS

In the current process, cargo release for consolidated ocean, rail and truck cargo is handled at a Master BOL level through the Automated Manifest System (AMS) for cargo arriving in the U.S.

Domestic service providers, who are legally liable for the proper custodianship, movement, release and delivery of cargo, currently have limited electronic visibility to their customs "status." For Container Freight Station (CFS) locations and Non-Vessel Operating Common Carrier (NVOCC) operators, there is no visibility at the House BOL level to facilitate effective visibility in managing cargo release, resulting in cargo delays, excessive manual paper processing, and ultimately impacting cargo availability to the final importer.

Current Processes are Inefficient, Mask Identity of House BOL Issuer

The current policies create situations that mask the identity of the issuer of the true contract of carriage House BOL. Automated NVOCCs file "surrogate" BOL numbers for non-automated NVOCC's who co-load with them, similar to the situation applied when the carrier files "carrier" House BOLs with AMS to support the non-automated NVOCC.

The white paper adds that the current paper based processes are inefficient and costly for both U.S. Customs and Border Protection and the trade. It is no longer economically feasible to produce paper documents and transport them to physical locations for re-entry into information systems when the data already exists in the CBP system.

Recommendation Would Ensure All Cargo Carriage Participants Automated, Etc.

The Task Force states that its recommendation would:

Ensure that all cargo carriage participants are automated.

Provide visibility to the Master BOL and contract of carriage House BOL numbers to respective parties in the supply chain.

Eliminate the creation and use of surrogate House BOLs by carriers and automated NVOCCs.

Provide government agencies with visibility to the true NVOCC.

Increase cargo handling efficiency with minimal impact to trade groups by retaining existing messaging at the Master BOL level for carriers (excluding NVOCCs), port authorities and terminal operators.

Eliminate paper processing of Permits to Transfer for consolidated containers.

Offer automation to CFSs, bonded warehouses, foreign trade zones (FTZs), bonded carriers and bonded draymen for the purpose of transporting and releasing cargo electronically at the House BOL level thus eliminating paper based cargo release processes.

Provide a framework for linkage between all modes of transportation in ACE manifest filing as well as cargo release and entry processing.

Improve cargo release times and consequently avoid potential costs and penalties.

Accelerate cargo delivery times within the supply chain cycle.

Enable more consistent application of CBP regulations nationwide.

Provide an ACE Secure Data Portal solution for transportation intermediaries that includes but is not limited to, CFS operators, bonded draymen, bonded warehouses, FTZs and NVOCCs.

Save the trade and CBP money by eliminating the current manual process (the group estimates the savings to be at least $200 million)

(See white paper for information on challenges faced by its recommendation, solutions to such challenges, implementation strategy and procedures, etc.)

White paper (from 11/05/09 TSN meeting) available by sending a request to documents@brokerpower.com