On December 5, 2003, U.S. Customs and Border Protection (CBP) published the final Trade Act regulations to the Federal Register which is effective January 5, 2004.  These rules require advance transmission of electronic cargo information to CBP, and provides for various effective dates depending upon the mode of transportation.

The regulations were drafted to implement the provisions of section 343(a) of the Trade Act of 2002, as amended by the Maritime Transportation Security Act of 2002. These laws require Customs and Border Protection ("CBP") to collect electronic cargo information either prior to the arrival/departure of the cargo to enable identification of high-risk shipments in order to prevent smuggling and ensure cargo safety and security. In most cases, the to ensure cargo safety and security and preventing smuggling. 

Significant changes from NPRM

·         Customs has proposed that flat documents and letters transported via air freight which do not exceed sixteen ounces may be exempted from full manifesting requirements.  This treatment of letters and documents is not set forth in this final rule, but is addressed in a separate Federal Register document so that CBP can receive comments on this change from the proposal. 

·         The transmittal timeframe on rail outbound was shortened to 2 hours.

·         Goods comprising a diplomatic or consular bag being shipped under an air waybill are subject to the advance reporting requirements, the description of such shipment as a diplomatic pouch will be sufficient as a description.

CBP has provided the following summary matrix which details these new regulatory rules by mode.

Overview of Prior Notice Requirements

Mode	In/ Out	Data  System	Transmittal Timeframes			Responsible Parties
			NPRM		Final Rule
AIR &	In	Air AMS	(a)	4 hrs, or	same as NPRM	(a)	Air carriers
COURIER			(b)	"wheels up" from certain nearby areas prior to arrival in US		(b)	Importer or its broker
						(c)	Freight forwarder
						(d)	Express consignment facility
						(e)	Other air carriers
	Out	AES		2 hrs prior to departure from US	same as NPRM	Exporter
RAIL	In	Rail AMS		2 hrs prior to arrival in US	same as NPRM	Rail carrier
	Out	AES		4 hrs prior to attachment of engine before going foreign	2 hrs prior to arrival at the border	Exporter
VESSEL	In	Vessel AMS		24 hrs prior to lading at foreign port	same as NPRM	(a)	Vessel carriers
						(b)	NVOCCs
	Out	AES		24 hrs prior to departure	24 hrs prior to departure from US port where cargo is laden	Exporter
TRUCK	In	FAST, PAPS, BRASS, or CAFES	(a)	FAST: 30 mins	same as NPRM	(a)	Truck carriers
			(b)	Non-FAST: 1 hr prior to arrival in US		(b)	Importer
						(c)	Customs broker
	Out	AES		1 hr prior to border crossing	same as NPRM	Exporter

Overview of Transition Requirements

All ocean carriers and NVOCCs electing to participate, must be automated on the Vessel AMS system at all ports of entry in the U.S. by March 5, 2004.

Participating Air carriers are required to comply with the advance electronic cargo information requirements of 19 CFR Part 122 by March 5, 2004, unless CBP delays the effective date due to certain system or port-specific training delays.

Rail carriers must comply with the advance electronic cargo information requirements of 19 CFR Part 123 within 90 days of notice in the Federal Register informing affected rail carriers that the approved electronic data interchange system is in place and operational at the port of entry where the train will first arrive in the U.S.

Inbound truck carriers must comply with the advance electronic cargo information requirements of 19 CFR Part 123 within 90 days of the date that CBP publishes notice in the Federal Register regarding the particular port of entry (that the applicable data interchange is in place and fully operational at the port, etc.). 

After such notice, incoming truck carriers, electing U.S. importers (via Customs broker), must present the necessary cargo data to CBP at the particular port of entry where the truck will arrive in the U.S.

The requirements for outbound cargo in all transportation modes, (including pre-departure time frames for reporting export cargo information for required shipments, and the requirement of the ITN), are to be implemented concurrent with the completion of the redesign of the AES commodity module and the effective date of mandatory filing regulations that are still to be issued by the Department of Commerce.  This date will be announced in the Federal Register.