COAC IRONS OUT RECOMMENDATIONS ON ADVANCED FILINGS WITH CUSTOMS
In an unusual move, a U.S. Bureau of Customs and Border Protection advisory committee on Friday dissented with its own working group on the how information for ocean shipments would be electronically transmitted to the border security agency.
The Treasury Advisory Committee on Commercial Operations (COAC) disagreed with its working group's suggestion that importers could submit some alternative data about shipments beyond what's listed on an ocean carrier's electronic manifest submission.
Customs relies on COAC to help understand how regulations it promulgates could affect international trade and U.S. companies. COAC tends to work by consensus and typically projects a unified industry front in its formal comments.
'It is the recommendation of COAC that the transmission of all information as defined in the Trade Act pertaining to ocean cargo to be brought into the United States is the responsibility of the carrier or agent. However, the importer at its discretion may choose to transmit some or all of the data,' the committee said in a statement attached to its report to Customs.
The National Customs Brokers and Forwarders Association of American recently proposed in a letter to Customs Commissioner Robert Bonner that the brokers transmit entry summary information to Customs through the Automated Broker Interface in advance of loading on vessels overseas.
But the issue of using an alternative method for filing advance electronic inbound cargo information has angered some large importers who would have to pay brokers another fee for the extra transactions.
According to a COAC source, some members feel ocean transportation intermediaries used the COAC process to push language in the legislation that would favor them if adopted. These importers perceive that small brokers' non-vessel-operating common carrier operations are pushing this filing alternative because they are unable to meet the current advance filing manifest regulations for inbound containers and want to keep their manifest information out of the hands of the liner carriers.
'There is a feeling these special interests are driving the agenda and that shippers will pay,' the source said.
During the meeting COAC formally adopted and passed onto Customs recommendations on advance electronic manifest filing for air, rail, truck and outbound ocean shipments.
Bonner told COAC members he is carefully reviewing the working group recommendations, along with other comments the agency has received on the manifest rules, but could not predict how they would shape Customs' final manifest proposal.
'We (government and industry) are a lot closer together on these issues than we are apart on them,' he added.
Meanwhile, Customs is preparing an economic analysis of the cost to industry to comply with its new rule, Assistant Commissioner Michael Schmitz, who heads the Office of Regulations and Rulings, said.
Bonner predicted Customs would issue a proposed rulemaking on the subject in early June.