# Notice to Masters of Vessels: Guidelines for Avoiding Violations and Penalties

Masters or vessel owners may incur penalties for violations of United States Customs laws, including violations committed by members of their crews. If masters take proper precautions, however, penalties may be avoided or reduced. The precautions listed below are intended to guide vessel owners and masters of vessels in their efforts to obey the law and avoid violations.  

ARRIVAL AND ENTRY

REPORT OF ARRIVAL

The “Report of Arrival” is a simple notification accomplished by telephone.  “Entry” is a more formal documentary process.  Report of arrival is made when the master of a vessel immediately reports his arrival to the nearest Customs facility.  Making entry requires the master, licensed deck officer, or vessel agent to appear in person at the customhouse to present the paperwork needed to make entry.  The following vessels must report to a Customs officer immediately upon arrival (19 U.S.C. 1433,1401(k)):

· Any vessel from a foreign port or place;

· Any foreign vessel from a domestic port;

· Any vessel of the United States arriving from another U.S. port and having merchandise on board being transported in bond (this does not include bonded ship’s stores or supplies), or transporting unentered foreign merchandise; or

· Any vessel, either U.S. or foreign, which has visited a hovering vessel (19 USC 1401(k)), or has delivered or received merchandise or passengers outside or U.S. waters.

REPORT OF DEATH OR ILLNESS

The U.S. Public Health Service *http://phs.os.dhhs.gov/* laws and foreign quarantine regulations require that masters of vessels arriving from foreign areas immediately report by radio to the quarantine station any deaths that have occurred among passengers or crew, or any illnesses having one or more of the following symptoms: 

· Temperature of 100 F or greater accompanied or followed by rash, jaundice, or glandular swelling;

· Temperature of 100 F or greater which persisted for two days or more; 

· Diarrhea severe enough to interfere with work or normal activity.

ENTRY

The following vessels must make formal entry at the Customhouse within 48 hours of arrival (19 U.S.C. 1434(a):

· Any vessel from a foreign port or place;

· Any foreign vessel from a domestic port;

· Any vessel of the United States arriving from another U.S. port and having merchandise on board being transported in bond (this does not include bonded ship’s stores or supplies), or transporting unentered foreign merchandise; or

· Any vessel, either U.S. or foreign, which has visited a hovering vessel (19 USC 1401(k)), or has delivered or received merchandise or passengers outside or U.S. waters.

Formal entry may be made for all vessels by filing the following documents:

· The original and one copy of a complete manifest; 

· Any bills of health issued at the foreign port or place from which the vessel arrived;  

· U.S. vessels must also file a Customs Form (CF) 226, a foreign repairs declaration, indicating any repairs that were made abroad.  A negative declaration on CF 226 is required if no repairs were made.  

Important: If a vessel which has arrived from a foreign port or place departs or attempts to depart from a Customs collection district without report of arrival or without making entry as required, the master will be subject to a penalty of $5,000 for the first of each of the arrival or entry violations and $10,000 for each subsequent violation.  The vessel may be subject to arrest, seizure, and forfeiture (19 U.S.C. 1433, 1436). (See also Foreign Repairs & Equipment)

MERCHANDISE

MANIFEST VIOLATIONS

Masters of vessels will incur a penalty of $1,000 if  a manifest is not presented to Customs (19 U.S.C. 1584).

If the Customs officer finds that unmanifested merchandise is on board or has been unladen from a vessel, prior to making entry, a penalty equal to the domestic value of the merchandise -- up to a maximum of $10,000 -- may be incurred. The merchandise is also subject to forfeiture if it belongs to the master of a vessel, the vessel owner, or any officer or crewmember.

Masters of vessels who unlade unmanifested merchandise could also incur a penalty for unlading without a permit. (See Lading and Unlading Violations).  The permit is obtained from Customs during the preliminary entry process.

If masters of vessels describe merchandise on a manifest and that merchandise is not found or located on the vessel, a penalty of $1,000 may be imposed.

The vessel owner or anyone else directly or indirectly responsible for any discrepancy may be liable for the penalties discussed above. However, if Customs has cited the master of a vessel for the violation, the burden is on the master to prove that someone other than himself is responsible for the violation. (19 U.S.C. 1584).

LADING AND UNLADING VIOLATIONS

If merchandise is laden on or unladen from a vessel without a permit, masters of vessels will incur a penalty equal to the value of the merchandise.  The merchandise will also be subject to forfeiture and, if the merchandise is worth more than $500, the vessel will be subject to forfeiture. Furthermore, anyone else involved in the lading or unlading of the merchandise will also incur a penalty equal to the value of the merchandise. (19 U.S.C. 1453).

A permit to unlade does not allow the unlading of unmanifested merchandise from the vessel. If unmanifested merchandise is unladed, masters of vessels will incur a penalty. 

EXPLANATION OF MANIFEST DISCREPANCIES

Under certain conditions, masters of vessels may be permitted to clarify or explain manifest discrepancies, i.e., the difference between unladen cargo as listed on a manifest and the cargo which is actually unladen.  In such cases, masters of vessels may be able to avoid penalties  for the filing of a false or incorrect manifest (19 U.S.C. 1584).

ILLEGAL IMPORTATION OF VESSEL SUPPLIES

Liquor, tobacco products, and other articles withdrawn from a U.S. bonded warehouse as vessel supplies are, by law, intended only for the crew's use on a voyage. If masters of vessels or any other officer or crewmember bring any of these articles back to the United States as personal baggage, the articles must be declared to a Customs officer.  If they are not declared, the articles will be subject to seizure and forfeiture and, additionally, any person not declaring the articles could incur penalties equal to the value of such undeclared articles. (19 U.S.C. 1453, 1497)

CONTROLLED SUBSTANCES

The master of a common carrier may incur substantial penalties if unmanifested controlled substances are found on board the vessel. The amount of the penalty is determined by the kind of substance found: $1,000 per ounce for heroin, morphine, cocaine, isonipecaine, or opiates; $500 per ounce for smoking opium or marijuana (including hashish); and $200 per ounce for crude opium. Clearance of the vessel may be withheld until the penalties are paid or a satisfactory bond is given for payment of the penalty. Additionally, the vessel may be subject to seizure and possible forfeiture. (19 U.S.C. 1584, 1594)

HOW TO AVOID PENALTIES

The penalties assessed against masters of vessels may be remitted or reduced if it can be proved that:

· Neither the master of a vessel nor the vessel owners had knowledge that narcotic drugs were on board, **and**

· Both the master of a vessel and the vessel owner exercised the highest degree of care and diligence in taking precautions to prevent violations by the other officers and crew members.

It is a master’s responsibility to decide what precautions are reasonably sufficient to guard against smuggling and other illegal acts that may be committed by crewmembers. Customs does not make these decisions. It may help, however, if you know what precautions Customs has considered sufficient in past cases.  In some instances, penalties incurred by a master and forfeitures of property seized after the crewmembers violated the law have been remitted or reduced by Customs when the master showed he had:

· Posted NOTICES on the ship warning the crewmembers against smuggling and advising them of possible penalties and explained the warning orally to crewmembers unable to read or understand the language used.

· Ordered frequent and thorough SEARCHES of the vessel by trustworthy and responsible Department Heads acting as personal representatives of the master.

· Provided a reliable GANGWAY WATCH while in port, and had it maintained at all times by responsible crewmembers who were told to keep all unauthorized persons from boarding the vessel and to permit only authorized unlading of merchandise and crew's effects.

Precaution should be especially strict when a vessel is to call at a U.S. port after visiting any port where narcotics may be expected to be readily available. If a master locates narcotics or suspects narcotic activity on a vessel, he should notify Customs immediately. If narcotics packages are found and it is necessary to move them, they should be handled carefully to preserve fingerprint evidence. Such narcotics should be given to U.S. Customs immediately upon arrival in a U.S. port.

If a master can show it was impossible for him to take the above precautions, his penalties may still be reduced or remitted if he can demonstrate that he exercised the highest degree of care and diligence by taking other adequate precautions.

Training for ships’ officers and crews regarding recommended security precautions can be obtained at all U.S. ports by contacting local Customs Port Directors.  This training can be narrowly or broadly focused and can be tailored to the needs of the master.  For a referral to the proper local office, masters may also contact: Sea Carrier Initiative Program *http://www.customs.treas.gov/enforcem/ind.htm* Manager, Anti-Smuggling Division, Office of Field Operations, U.S. Customs Service, 1300 Pennsylvania Ave., NW, Washington, D.C.  20229.  Information is also available on our web site: www.customs.gov under the Enforcement section.

FOREIGN REPAIRS & EQUIPMENT

A master of a vessel documented under the laws of the United States to engage in foreign or coastwise trade is required to declare the costs of foreign repairs and equipment purchases (including boats) on Customs Form 226 upon first arrival of the vessel in the U.S.  The same is true for a master of a vessel documented under United States law for any other trade or which is an undocumented vessel, but which is intended to engage in foreign or coastwise trade.  A negative declaration on Customs Form 226 is required if no costs were incurred.  Subsequently, an entry on Customs Form 226 must be made for such repairs and purchases within 10 calendar days after the arrival of the vessel.  Estimated duties or a bond on Customs Form 301 shall be submitted prior to departure of the vessel.  Failure to declare, enter, and pay duty on such expenditures will subject the vessel to forfeiture or the owner to a monetary penalty up to the value of the vessel (19 U.S.C. 1466). 

(See also 19 CFR 4.7(d)(1) & 4.14)

HOW TO AVOID PENALTIES

If a master of a vessel or the owner fails to declare purchases of equipment and foreign repairs or makes any false statement in connection with such declaration, the vessel will be subject to forfeiture or the owner will be subject to a monetary penalty up to the value of the vessel. To avoid this, masters should declare all costs of labor, all repairs, and all purchases for the vessel that are associated with a debt accrued or a payment made outside the United States, even if it is believed that the cost is not subject to duty. Masters should include all foreign repairs and purchases of equipment undertaken during the vessel's voyage from the United States, whether or not made while the vessel was under their command.

_______________________________________________________________________

U.S. Government Forms Required Upon Entry

_______________________________________________________________________

Form Number of Copies  

First Subsequent 

Port Port(s) 

_______________________________________

CF 1300

VESSEL ENTRANCE OR CLEARANCE STATEMENT

1 original 

1 copy 1 copy

_______________________________________

CF 1302  

CARGO DECLARATION CARGO DECLARATION (or Electronic Equivalent - 

Consult with U.S. Customs Headquarters Office of Field Operations, Office of Trade Programs at (202) 927-0510)

1 original

1 copy 1 copy 

_______________________________________

## CF 1303

SHIP'S STORES DECLARATION

1 original 

1  copy 1 copy

_______________________________________

## CF 1304

CREW'S EFFECTS DECLARATION

1 original 

1 copy1 copy  

_______________________________________

CF 226

RECORD OF VESSEL/AIRCRAFT FOREIGN REPAIR OR EQUIPMENT PURCHASE 

(US Vessels Only)

1 original

1 copynone

_______________________________________

Immigration Form 1‐418*

CREW LIST

1 original 

2 copies  1 copy 

*None required for foreign vessels  

_______________________________________

Immigration Form 1‐418

PASSENGER LIST

1 original  

3 copies 1 copy 

_______________________________________

**There are other laws which apply to vessel owners, and crewmembers which should not be overlooked, particularly regarding the clearance of a vessel.  Consult U.S. Customs at port of arrival.**

Please visit the U.S. Customs web site at http://www.customs.gov

Report Drug Smuggling to U.S. Customs Service

1 (800) BE ALERT

U.S. CUSTOMS SERVICE 

WASHINGTON, D.C. 20229 

CUSTOMS PUBLICATION NO. 581  REVISED AUGUST 1999

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