NVOCCS ASK U.S. CUSTOMS TO CLARIFY 24-HOUR RULE
Non-vessel operating common carriers on Tuesday unleashed a torrent of complaints about U.S. Customs Service's new 24-hour rule for advance, electronic filing of cargo manifests.
The NVOCCs' complaints came during a conference call that U.S. Customs had set up to provide industry with technical guidance for compliance with the rule, which was implemented Dec. 2.
While conference call participants covered the range of transportation sectors, the NVOCCs turned the session into a plea for Customs to modify regulations they say could eventually put them out of business.
Customs officials acknowledged that problems were expected because the rules were implemented so quickly, and they intend to work with industry. The agency allowed a 60-day grace period, which ended Feb. 2.
The agency has initially concentrating enforcement activity on vague cargo descriptions such as 'freight all kind,' while shippers, carriers and intermediaries become familiar with the reporting standards. Customs will expand enforcement measures to those who do not file manifests on time or do not list the proper shipper or consignee, authorities said.
Enforcement since Feb. 2 has resulted in few messages to steamship lines not to load certain containers, said John Considine, director of cargo verification at customs. During the third week of February Customs received 420,000 bills of lading at 15 major ports, with 17,000 initially appearing to have problems based on the cargo description, he said. 'But we only issued less than 40 denial of lading messages.'
However, consolidators said shipments are being held by carriers not willing to be liable for submitting what they perceive as incomplete information, especially the names of shippers and receivers.
'Cargo is being stopped, storage is accumulating and people are getting irate,' said Dan Petrocini of President Container Lines.
Another NVOCC asked Customs to issue a moratorium on reporting requirements until Customs can clarify the current rules. Otherwise NVOCCs will continue to give previously confidential information on its customers to carriers, who could use the information to their competitive advantage.
'Basically they are holding us hostage. The steamship lines feel they have one up on us,' said one NVOCC member.
NVOCCs also cited problems with penalties issued for shipments sent in December before Customs began enforcing the rule, determining whether the carrier or consolidator is responsible for reporting in-bond shipments, how much responsibility for accepting in-bond shipment falls on the NVOCC and how foreign NVOCCs can arrange in-bond shipments.
'I'm not pretending that this in-bond issue is settled. We are more than willing to work with the trade for the best way for this to be settled,' Considine told participants.
Agency officials said they will update information on the 24-hour rule on Customs' Web site later this week, are continuing to work on the best definition of a shipper and other procedural problems, and may hold another conference call with industry on the rule.