INDUSTRY GROUPS RESPOND TO CUSTOMSÆ ADVANCE MANIFEST PROPOSAL
Two trade industry groups said, while they support the U.S. Customs Service's efforts to strengthen supply chain security, the agency's plan to require advanced filing of manifests will delay the departure of U.S.-bound cargo containers, while driving up transport costs.
The comments from the Joint Industry Group, coalition of trade associations and professionals, and the National Industrial Transportation League, were in response to Customs' recent notice of proposed rulemaking calling for the electronic transmission of a vessel's manifest 24 hours prior to loading before departure for the United States. The proposed rule was posted on the Federal Register Aug. 8.
The Joint Industry Group promoted confidentiality of manifest data. “Mandating its presentation on public manifests, rather than through transmission directly to Customs, creates a greater opportunity for terrorists, thieves and others to target specific containers for their illegal purposes,” the group said.
“The proposed rule will also seriously impact supply chain processes for carriers and shippers by slowing the timely departure of goods,” the group said. Such a scenario would adversely affect just-in-time delivery, since some containers will fail to meet release from Customs.
Delaying containers could actually weaken cargo security, the Joint Industry Group said. “Rather than adopting regulations which will result in vessels being delayed, Customs should propose requirements which will result in vessels spending as little time as possible being docked, which is the time when security concerns are the greatest.”
One of the NIT League’s chief concerns was how Customs would enforce the rules for holding “problem containers,” as well as those containers that have been issued a “red light” after their departure for the United States.
“Customs should explain precisely how the system will operate,” the NIT League said.
The proposed ruling places an “unreasonable burden” on compliant shippers whose cargo share vessel space with violators who will delay departure, the NIT League added “Security would seem to be equally served by simply prohibiting unlading of noncompliant cargo.”
While Customs’ preference is for electronic filing in the proposed ruling, the NIT League said the agency 'should clarify the allowable methods for paper filing, especially at foreign ports without a Customs presence.”
Customs needs to be more specific in its call for cargo descriptions, the NIT League and Joint Industry Group said.
The Joint Industry Group noted that Customs' proposed rule offers no distinctions between containerized cargo and other types of cargo, including bulk and breakbulk. To that end, the group asked for Customs to pursue a “more practical” development through consulting the trade.
The NIT League said the agency should specify its needs regarding cargo for which a shipper does not provide the Harmonized Tariff Schedule number. The league suggested that bulk cargo should be exempted from the final rule, and that the proposed rule should be voluntary rather than mandatory for bulk cargo.