Two weeks remain until US Customs' 24-hour rule becomes a reality. The rule is a wake up call for extra meticulous attention to detail and lucidity of information, which in turn may have very positive ramifications on the entire supply chain. For instance, superior knowledge for lines of their cargo; faster customs clearance of goods at destination; better stowage and loading information and less cargo harm due to increased care being taken during the packing process.
The 24 Hour Manifest Rule provides US authorities with the opportunity for database cross-referencing. There is a bona fide need for the Department of Homeland Security to re-evaluate its own security procedures. US Customs will use the 24-hour window they will now have to check shipper declarations made on the manifests they receive from foreign ports.
Furthermore, by using this time to also cross-check company and individual identities with IRS, intelligence reports and other data at their disposal, the US will advance the chances of detecting terrorist activity as well as assisting its trading partners.
What are the implications of the impending rule for port operators?
A vessels cargo manifest must be lodged no later than 24 hours prior to the vessel being loaded at a European port. Many see difficulties and disruption as a result. However there appears to be will to comply and, moreover, develop efficient systems of documentary control to guarantee that this security measure has the preferred effect of blocking acts of terrorism.
The World Shipping Council offers advise on how to prepare…
The World Shipping Council said in a statement, "We strongly recommend that all carriers, shippers and marine terminals handling US destination cargo operate with full recognition of the clear statements by the US Customs Service that there will be no extension of time beyond February 2 for enforcement of the new requirements, and that penalties for noncompliance can be substantial."
Mandatory items US Customs will be looking for when shippers file manifests include clear cargo descriptions as opposed to previously acceptable "said to contain" or consolidated shipment". The group added all information items on the cargo declaration forms must be filled accurately and completely. More importantly, declarations must be filed 24 hours before a ship is loaded prior to departing from a foreign port bound for the US.
In addition, the Council also reminded non-vessel operating common carriers that they must file cargo manifests by becoming Automated Manifest Members (AMS) themselves or filing directly with US Customs, or by using a third party service provider, or asking the ocean carrier to file their cargo declarations.
The council added that it would seek greater clarity on certain aspects of the 24-hour rule in the weeks to come, and has urged US Customs to not penalize parties who are trying good faith to comply with the new rules for violations of requirements that deserve further guidance from the agency.
Horizon Services Group,, a developer of logistics management technology for ocean shipping, has recently announced it has upgraded its AMS system for submitting US Customs data in compliance with the new 24-hour rule. The upgrades were designed to help carriers and non-vessel operating common carriers (NVOCCs) to comply with the new rule. The 24-hour AMS rule requires all ocean carriers or NVOCCs to present a complete cargo manifest to US Customs at least 24 hours prior to cargo loading on vessels calling at US ports.
The rule extends to imports as well as to cargo remaining on board the vessel for subsequent discharge at a non-US port. The company said its technology allows for a direct EDI feed out of large in-house systems, but also supports small to mid-size carriers and NVOCCs by providing a web interface for entering shipment data into AMS.
Horizon revealed that it had relied on its long established relationship with US Customs during the upgrade process to facilitate a smooth transition for CSX Lines to become compliant for the 24-hour rule.
Duncan Wright, manager of strategic sales and development for Horizon, said: "The short timeline for compliance really put the industry in a tough spot, but no one can turn their backs on the need for better maritime security in today's world."
Moreover, TradePoint Systems LLC, a provider of software and services for international trade, has released Manifest 24, a new Web-based application for complying with U.S. Customs' new 24-hour advance manifest filing rule.
Ken Halle, executive vice president and chief operating officer of U.S. operations at TradePoint said, "We have been closely monitoring this regulation, because our advisors in the trade indicated that it was likely to become the law of the land. We looked closely at our Manifest product line and determined that Manifest is already capturing most of the data required by U. S Customs for the 24-hour rule. So, Manifest 24 was a natural addition of our strategy to extend the reach of the U.S.-based NVOCC and freight forwarder.
Basically, Manifest 24 puts the responsibility of data entry on the NVO at the origin, while allowing the NVO at the destination to validate the data before it is submitted to Customs.
Lastly I would like to address the issue of JIT methods and whether will this new rule make them obsolete. Just In Time methodology is a premeditated production methodology and these plans will now have to be attuned, in order to take into account the 24-hour notification process. Greater visibility will result within the universal supply chain. Additional cost will be incurred within the transportation chain, although, a translucent system leads to homogeny of documentation, which in turn leads to a more efficient business and savings should prevail.
