Breakbulk, bulk carriers race to comply with U.S. automated manifest rules
International breakbulk and bulk carriers are scrambling to comply with the U.S. government’s mandatory rules for automated filings of manifest information for inbound cargo shipments.
The U.S. Bureau of Customs and Border Protection announced the regulation in a Dec. 5, 2003 Federal Register notice, and gave the ocean carriers until March 4 to comply. The regulation covers mandatory electronic manifest filing provisions in both the 2002 Trade Act and 2002 Maritime Transportation Security Act.
Many breakbulk and bulk carriers that make infrequent calls to U.S. ports have traditionally relied on their vessel agents in the arrival ports to process their inbound cargo manifests with Customs. This process also included the use of the vessel agents’ SCAC (Standard Carrier Alpha Code) numbers and international carrier bonds. Under the new regulation, these carriers must use their own SCAC numbers and obtain the necessary $50,000 bond for customs clearance purposes.
SCAC numbers may be obtained through the National Motor Freight Traffic Association in Alexandria, Va., and surety companies provide the bonds. Both activities take time.
Many breakbulk and bulk carriers must either invest in direct connections with Customs’ Automated Manifest System or sign onto a certified third-party data service center. Carriers that use data service centers may authorize their vessel agents to process inbound manifest data on their behalf, an avenue most of these operators are expected to take.
The Mississippi River Maritime Association recently signed onto Flagship Customs Services’ data service center, Import2000, which its agent members can use to assist their breakbulk and bulk carrier customers with electronic manifest filings. The Baton Rouge, La.-based association’s 13 vessel agent members handle about 3,000 ship calls a year.
“Most of the agents have no prior experience with AMS,” said Michael Titone, president of the Mississippi River Maritime Association, in an interview. “With the carrier’s bond in place, it only takes [the authorized agent] one to two days to set up an account on the system.”
In addition to the Mississippi River Maritime Association, Robert Foley, president of Flagship Customs Services, said his company has signed up about 15 individual vessel agents in recent weeks.
Flagship Customs Services has had its Import2000 service in place since Customs announced on Dec. 2, 2002 a rule for all inbound cargo container manifests from both liner carriers and non-vessel-operating common carriers to be filed to the agency 24 hours prior to loading on U.S.-bound vessels overseas. Today, the Silver Spring. Md.-based company’s Import2000 serves more than 200 NVOs and 50 carriers.
Under the so-called 24-hour rule, Customs provided exemptions for certain breakbulk imports. But the carriers of these cargoes still had to supply the agency with manifests 24 hours prior to arrival for voyage times of longer than 24 hours. For voyages of less than 24 hours, manifests must be filed to the agency at the time of sailing. Bulk carriers under the initial 24-hour rule could continue filing manifests to Customs 24 hours prior to arrival in a U.S. port, and for voyages of less than 24 hours, manifests must be filed at time of sailing.