Maritime/Port Security Initiatives and Requirements

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Maritime/Port Security Initiatives and
Requirements
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Cargo Security Initiatives

• U.S. Customs 24-hour Manifest Rule
• Customs-Trade Partnership Against Terrorism
  (C-TPAT)
• Container Security Initiative (CSI)
• Trade Act of 2002/Maritime Port Security Act of
  2002
• Operation Safe Commerce

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U.S. Customs 24-Hour Manifest Rule

• Filing cargo manifests with U.S. Customs at
  foreign ports electronically 24 hours prior to
  loading
• 1. Effective date was December 2, 2002
• 2. After February 2, 2003 no exceptions on
  documents
• 3. Terms such as FAK, Said to Contain,
  General Merchandise, and blanks are not
  allowed and will result in a no load order

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24-Hour Rule - Continued

• Shippers/suppliers/consolidators must supply
  required cargo manifest information to forwarders
  and/or carriers
• Only carriers and qualified forwarders can
  transmit cargo information to Customs
• Shippers associations are not permitted to
  transmit information to Customs

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24-Hour Rule - Continued

• Questions regarding compliance are numerous and
  everyone, including Customs, is struggling to
  provide answers
• Go to Frequently Asked Questions (FAQ) at
  www.customs.treas.gov

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24-Hour Rule - Continued

• The Rule applies to all inbound cargoes
  exception for homogenous bulk cargo
• Breakbulk cargo may be exempted on a case by case
  basis
• Cargo that is exempted from the 24-Hour Rule must
  have its cargo declared to Customs 24 hours prior
  to arrival in the U.S.

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24-Hour Rule - Continued

• Cargo that transits pursuant to the rule will be
  viewed as low risk and therefore should be
  subjected to minimal delays
• Requirements of the 24-Hour Rule are designed to
  be uniformly applied
• Will interrelate with other security initiatives

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24-Hour Rule - Continued

• Cargo information is to be treated on a
  proprietary basis
• Customs will not release information from cargo
  declarations until complete manifest is filed
  with Customs

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Customs-Trade Partnership Against Terrorism
(C-TPAT)

• Who can join?
• Importers
• Carriers (air, rail, sea)
• Forwarders
• Brokers
• Warehouse Operators
• Manufacturers

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Customs-Trade Partnership Against Terrorism
(C-TPAT) - Continued

• Customs plans to open enrollment to a broad
  spectrum of the trade community
• C-TPAT will eventually be made available to all
  sectors of the supply chain

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Customs-Trade Partnership Against Terrorism
(C-TPAT) - Continued

• Applicants must document their security
  procedures
• C-TPAT approved companies considered lower risk
• Results in expedited processing and reduces
  chances of physical inspection

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Customs-Trade Partnership Against Terrorism
(C-TPAT) - Continued

• Each C-TPAT participant will be treated
  differently
• C-TPAT is designed to work with other security
  initiatives
• C-TPAT requirements are very fluid at this time
  shippers and exporters should refer to Customs
  website

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Container Security Initiative (CSI)

• Many of the largest foreign ports have joined or
  will be added to CSI

Canada Halifax Montreal Vancouver Singapore N
etherlands Rotterdam
Belgium Antwerp France Le Havre Germany Brem
erhaven Hamburg Hong Kong
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Container Security Initiative (CSI) - Continued
Japan Yokohama Tokyo Kobe Nagoya Spain Algec
iras Italy LaSpezia Genoa
Sweden Göteburg Malaysia Kelang Tanjung
Pelepas China Shanghai and others
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Container Security Initiative (CSI) - Continued

• Seeks to promote use of high tech detection and
  security devices
• Shippers using a CSI port, C-TPAT approved and
  adhering to 24 hour rule will be categorized as
  low risk
• Will minimize delays at ports

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Container Security Initiative (CSI) - Continued

• Placement of U.S. Customs inspectors at foreign
  ports to work with local authorities to identify
  high risk containers
• U.S. Customs inspectors along with the local
  carriers will be the primary interface for users
• At non-CSI ports the carrier will be the only
  contact to the user

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Trade Act of 2002/Maritime Transportation
Security Act of 2002

• Regulations under the Trade Act as amended by the
  Maritime Port Security Act of 2002
• By October 1, 2003 promulgate regulations
  providing for electronic transmission to Customs
  information---
• 1. pertaining to cargo destined to and from
  the U.S.,
• prior to arrival or departure of such
  cargo
• 2. Determined by the Secretary to be
  reasonably
• necessary to ensure cargo safety and
  security

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Trade Act of 2002/Maritime Transportation
Security Act of 2002 - Continued

• Strawman Maritime Proposals, subject to further
  review by government and industry, for import and
  export cargo have been issued for public comment
  until February 18, 2003.
• Strawman Vessel-Destined to the United States
• Electronic paperless transmission utilizing the
  vessel automated
• manifest system by all ocean carriers, NVOCCs
  or other
• knowledgeable parties registered or licensed by
  the FMC, 24 hours
• prior to lading on the vessel at the foreign
  port
• Strawman Vessel-Departing the United States
• To utilize the Automated Export System (AES)
  Vessel
• Transportation Module (VTM) as the mechanism
  for receiving all
• export cargo information prior to export from
  the United States
• no later than 72 hours prior to departure

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Trade Act of 2002/Maritime Transportation
Security Act of 2002 - Continued

• Notice of proposed rule making (NPR) later this
  year will invite a further round of comments at
  that time
• Final rules are expected to be issued no later
  than October 1, 2003

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Operation Safe Commerce

• A pilot program at the ports of New York/New
  Jersey, Los Angeles/Long Beach and Seattle/Tacoma
• Designed to track and trace import intermodal
  cargo on a real time basis to get at problem
  shipments
• Reaching out for new technologies