# Presentation: 674045

## Slide 1

## Trade Act of 2002

- Office of Field Operations

- Kimberly Nott, Chief
- Manifest and Conveyance Branch

- September 2004

## Requirements of the Trade Act

- Original Trade Promotion Act, section 343(a) was amended by Section 108 of the Maritime Transportation Security Act of 2002.
- TPA - signed August 6, 2002; PL 107-210
- MTSA - signed November 25, 2002; PL 107-295
- By October 1, 2003, CBP must endeavor to promulgate regulations providing for:
- Electronic transmission for cargo destined to and from the United States, prior to the arrival or departure of such cargo;
- Determined by the Secretary to be “reasonably necessary” to ensure cargo safety and security.

## Highlights of The Proposed Rule

- The proposed rule will increase homeland security
- Timely data to meet CBP operational needs
- Better data and automated targeting in all modes
- The proposed rule will build on existing systems
- Minimizes costs to CBP and trade
- Allows for prompt implementation
- Increases compliance
- The proposed rule incorporates many trade comments

## Timeline of Final Regulations

- Notice of Proposed Rulemaking published 7/23/03.
- Comment period closed 8/22/03.
- 128 comments received.
- Final rule included a more detailed Economic Analysis, available on the CBP Web-site.
- Final regulations were approved by DHS and OMB.
- CBP complied with the report to Congress on the final rule.
- Trade Act final rule published in Federal Register on December 5, 2003 (68 FR 68140).

## Truck	- via Automated Broker Interface (ABI) 30 min. 		  Free And Secure Trade (FAST)
 		- via ABI 1 hour non-FAST
		- eventual use of Automated Commercial Environment   	  (ACE) manifest
		- Border Release And Selectivity System (BRASS) 	  gradual reduction in use
Rail		- via Automated Manifest System (AMS) 2 hours 		   before arrival
Vessel	- via AMS 24 hours before lading foreign
Air		- via AMS 4 hours before arrival,
		- time of departure from NAFTA and Central America, 	  north of the equator in South America 

-  		- via ABI 1 hour non-FAST
- 		- eventual use of Automated Commercial Environment   	  (ACE) manifest
- 		- Border Release And Selectivity System (BRASS) 	  gradual reduction in use
**Rail**		- via Automated Manifest System (AMS) 2 hours 		   before arrival
**Vessel**	- via AMS 24 hours before lading foreign
**Air**		- via AMS 4 hours before arrival,
- 		- time of departure from NAFTA and Central America, 	  north of the equator in South America

-  Timeframes - Inbound

## Truck	- via Automated Export System (AES) 1 hour 		   prior to arrival at border crossing
Rail		- via AES 2 hours prior to arrival at the border
Vessel	- via AES 24 hours prior to departure from each 		   U.S. port of lading.
Air		- via AES 2 hours prior to scheduled departure               		   from the last U.S. port

**Rail**		- via AES 2 hours prior to arrival at the border
**Vessel**	- via AES 24 hours prior to departure from each 		   U.S. port of lading.
**Air**		- via AES 2 hours prior to scheduled departure               		   from the last U.S. port

- Timeframes - Outbound

## Vessel - Before March 4, 2004  (Completed)
Rail - Three phases:  July 12, 2004; August 10, 2004; September 9, 2004.  (Completed)
Air - Three phases:  August 13, 2004; October 13, 2004; December 13, 2004.
Truck - Three phases:  November 15, 2004; December 15, 2004, January 14, 2005.
Outbound - Date will be announced in a Federal Register notice (in cooperation with Census Bureau, anticipated Fall 2004).

- Rail - Three phases:  July 12, 2004; August 10, 2004; September 9, 2004.  **(Completed)**
- Air - Three phases:  August 13, 2004; October 13, 2004; December 13, 2004.
- Truck - Three phases:  November 15, 2004; December 15, 2004, January 14, 2005.
- Outbound - Date will be announced in a Federal Register notice (in cooperation with Census Bureau, anticipated Fall 2004).

- Implementation Timeline

## Vessel timeframe for compliance was March 4, 2004.
Similar to the 24-hour rule with the requirement that cargo information must be submitted electronically.
Additional data elements for date and time of sailing.
Set timeframes for bulk and approved break-bulk vessels for CBP to receive cargo information.
Any vessel arriving in the U.S. that has not submitted its cargo declaration to CBP electronically will be denied unlading in the U.S.

- Similar to the 24-hour rule with the requirement that cargo information must be submitted electronically.
- Additional data elements for date and time of sailing.
- Set timeframes for bulk and approved break-bulk vessels for CBP to receive cargo information.
- Any vessel arriving in the U.S. that has not submitted its cargo declaration to CBP electronically will be denied unlading in the U.S.

- Enforcement Guidelines - Vessel

## July 27, 2004 memo to field offices on Enforcement Strategy
First 30-days must receive cargo information electronically two hours prior to arrival, or train will be held; CBP will issue an informed compliance letter for egregious violations of :
timeliness
precise cargo description
missing or invalid shipper information
missing or invalid consignee information
conveyance name, equipment and trip number.
On day 31 - failure to submit required information will result in train being held and a penalty being issued.

- First 30-days must receive cargo information electronically two hours prior to arrival, or train will be held; CBP will issue an informed compliance letter for egregious violations of :
- timeliness
- precise cargo description
- missing or invalid shipper information
- missing or invalid consignee information
- conveyance name, equipment and trip number.
- On day 31 - failure to submit required information will result in train being held and a penalty being issued.

- Enforcement Guidelines - Rail

## Air - Regulatory ProvisionsTime frames for reporting data 

- Arrivals from nearby foreign areas
- North America, Mexico, Central America, South America (North of Equator), Bermuda.
- Received prior to departure (wheels-up)
- Arrivals from other foreign areas
- Four hours prior to arrival at first U.S. port
- Permit to proceed and in-bond origin port
- Examples:
- (PTP) Japan - Anchorage - JFK
- (In-bond) London - Chicago - Dallas

**Notes:**
 The time frames that cargo information must be received by CBP is:
Including Canada and Mexico and the Carribbean and north of the equator is:  “Wheels up” or time of departure from the last foreign port enroute to the US
OR
 Four hours prior to arrival for all other flights.
 Several questions have come about concerning cargo moving on a PTP or under the cover of an inbond, when do they file?  It is important to understand the proper filing.
 For Permit to Proceed - first port of arrival on PTP or inbond must be at the first port of arrival.
Example:  PTP - Japan to Anchorage (fuel stop) to JFK as a final destination.  Information must be received by CBP four hours prior to arrival of the aircraft at Anchorage.
 Inbond - London to Chicago to Dallas/Fort Worth.  Cargo is inbond to Dallas.  Information must be received by CBP four hours prior to arrival of the aircraft at Chicago.

## Enforcement Procedures Phase I distributed to field offices on July 14, 2004.
First 30-days only focus on those carriers that failed to automate.
If fail to electronically submit to CBP then term permit or special license is not valid.  Paper copy of manifest must be submitted, cargo will be held on plane until targeting is completed.  If fail to automate by the fourth week cargo will not be allowed to discharge in the U.S. 
On day 31 Enforcement Procedures Phase II will begin.  Currently these guidelines are in the signature process so Phase II will be delayed for East Coast.

- First 30-days only focus on those carriers that failed to automate.
- If fail to electronically submit to CBP then term permit or special license is not valid.  Paper copy of manifest must be submitted, cargo will be held on plane until targeting is completed.  If fail to automate by the fourth week cargo will not be allowed to discharge in the U.S.
- On day 31 Enforcement Procedures Phase II will begin.  Currently these guidelines are in the signature process so Phase II will be delayed for East Coast.

- Implementation Timeline - Air

## The Federal Register (69 FR 51007) was published on August 17, 2004.
3 Implementation Phases:  
November 15, 2004 (40 ports)
December 15, 2004 (43 ports)
January 14, 2004 (16 ports)
Informed Compliance guidelines are being developed.

- 3 Implementation Phases:
- November 15, 2004 (40 ports)
- December 15, 2004 (43 ports)
- January 14, 2004 (16 ports)
- Informed Compliance guidelines are being developed.

- Enforcement Guidelines - Truck

## www.cbp.gov - Trade Act of 2002

## www.nara.gov - Federal Register 

## Continue to check the Customs and Border Protection web site for information.  (www.cbp.gov)
FAQs will be completed and posted as issues arise.
Utilize the proper points of contact in the final rule.  If not the proper contact, generally they cannot address the issue.
Implementation timeline:
Vessel - Before March 4, 2004. (Completed)
Rail - Three phases:  July 12, 2004; August 10, 2004; September 9, 2004. (Completed)
Air - Three phases:  August 13, 2004; October 13, 2004; December 13, 2004. 
Truck - November 15, 2004, December 15, 2004, January 14, 2005.
Outbound - date set  in new FR from Census and CBP. 

- FAQs will be completed and posted as issues arise.
- Utilize the proper points of contact in the final rule.  If not the proper contact, generally they cannot address the issue.
- Implementation timeline:
- Vessel - Before March 4, 2004. **(Completed)**
- Rail - Three phases:  July 12, 2004; August 10, 2004; September 9, 2004. **(Completed)**
- Air - Three phases:  August 13, 2004; October 13, 2004; December 13, 2004.
- Truck - November 15, 2004, December 15, 2004, January 14, 2005.
- Outbound - date set  in new FR from Census and CBP.

- Summary