USA

Automated Manifest System (AMS) Regulations/USA - latest update

Introduction

The AMS is a new requirement implemented by the United States of Americas' Customs & Border Protection Department which all Carriers going to/from United States of America must comply with. There have recently been a number of circulars from various P&I Clubs on this matter. We have attempted to comprehend the information provided by the various sources and we have now for your better understanding, prepared our own, hopefully simple and easy to understand writeup on how to proceed with satisfying this new USA requirement.

• Ships trading to the USA will require to comply with a new regulation called "AUTOMATED MANIFEST SYSTEM" which officially is enforced on 4th,March,2004.
• US Customs have indicated a "Grace period" of 30 days until 2nd,April,2004 when carriers who have not complied with the regulations,will have the relevant parts explained and they will not be fined.

Who needs to conform to this new requirement?

• Ocean Carriers and Non-Vessel Operating Common Carriers(NVOCC)
• Definition of a "Carrier": The entity that controls the the conveyance such as the Head Owner,Bareboat Charterers and also the Managers of the vessel,if it can be shown that the Manager has assumed operation of the ship(This needs to be reconfirmed with the Customs and Border Protection Dept.(CBP)).

Who is charged with implementing this new regulation?

The US Bureau of Customs and Border Protection(CBP).


What is the reason for this new requirement ?

The US Maritime Transportation Security Act was introduced to improve the security of cargo shipments entering or leaving the USA by sea,air,rail or truck.The Act passed into Law in 2002.


What cargoes will required to be declared?

Basically all cargo types : Dry bulk, liquid bulk, Break bulk


When must cargo be declared to the CBP?

All declarations relating to incoming cargo are submitted to the CBP via the AUTOMATED MANIFEST SYSTEM.
The declaration is to be made either 24 hours BEFORE LOADING or at least 24 hours BEFORE ARRIVAL at the first US port.


The Procedure

Step1

Submit a written "Letter of Intent" to CBP explaining how you will be presenting your filing of the AMS cargo declarations.In the letter,which should be on Company letter headed paper,you need to explain the type of AMS software you will be using or you can give the details of the the third party AMS service provider selected.service providers

The AMS service provider will act on your behalf to file the cargo manifest data by electronic means with the CBP.In other words they will perform step 2 for you.To register with an AMS service provider,you will need to supply the following information to them:Information required

The cost of the AMS service provider will roughly be as follows: an initial start up fee of approximately US$250-500. Each-filing will cost approximately US$100-200 provided the number of filings per year do not exceed 10-15 times.In excess of this,may require a minimum charge per month.

Step 2

As mentioned in step 1,if you wish to deal directly with CBP,then you will need to complete a CBP Form 1302 in ELECTRONIC format and file this along with the AMS declaration.
To access the CBP's Automated Manifest System(AMS),you will need to have both the I) SCAC code II) International Carrier Bond(ICB) ready.See step 3 and 4 on how to get these two items.

Step 3

Obtain a Standard Carrier Alpha Code(SCAC) from the National Motor Freight Traffic association(NMFTA) in Alexandria,VA. whose contact details are as follows: tel: +1 703 838 1810, website: www.nmfta.org/scac2.htm.The SCAC is a unique 2-4 digit code assigned to transportation companies for identification purposes.

The intial cost of obtaining the code is US$30 and the code will remain valid through July 1st of the following year and must be renewed on an annual basis.Renewal cost is subsequently US$26.

Once the SCAC is received(about 1 week),fax the code to CBP at +1 703 921 7173

Step 4

Arrange for an International Carrier Bond(ICB) to secure payment to CPB in the event the vessel/master fails to pay on demand any customs' penalty,duty,tax or any other charges required by law.

The ICB may be a CONTINUOUS bond covering ALL visits to US ports by the Carrier's vessels.This will require that you disclose your Company's financial statement whcih are properly audited and/or otherwise put up a collateral.
Otherwise a SINGLE entry bond may be obtained.For a single entry bond,some custom broker can possibly arrange a facility based on a POWER OF ATTORNEY signed by your Company.You will need to produce your P & I Club Certficate of Entry for the vessel entering,as part of your submission of documents.The P & Club certificate should show a DEDUCTIBLE for FINES AND PENALTIES not more than US$25,000.If it is more than US$25,000,then more additional underwriting information may be needed.

Make contact with a Surety agent/Customs broker to contact an approved Surety with authority to issue Custom bonds on Customs Form 301.

How much ICB bond will be required to be put up and how much will this cost?

The AMOUNT of the bond required may vary from port to port as it is at the discretion of the local Customs Port Director who will need to assess your fleet size,the number of ports of call,the risk profile for your port calls.For example,the New York Customs and Border Protection Protection of New York requires each ICB to be in the amount of US$100,000.You should,or at least ,request your port agent in USA to contact the Customs Port Director for that port which your vessel will call, to establish the maximum Bond amount that is likely to be demanded.In the application for the ICB,you will need to insert your USA port agent's full style address and details as the Correspondent address.

There appears to be a minimum bond required of US$50,000.Costs may also vary depending on the analysis of the bond provider of your credit rating.As a rough guide,it will cost US$10-20 per US$1,000 of bond put up.


Who can help you to process the AMS and obtain the SCAC and ICB?

There is a list of surety agents/customs broker who can arrange for both the SCAC and the ICB at www.cbp.gov/xp/cgov/toolbox/contacts/ports/.

In the arrangement of the SCAC and ICB,your port agent in USA will be one of your best contact to help you to arrange for such.As mentioned above,they can make contact with the Customs Port Director to establish the maximum bond required.They will also need to be the contact point in USA for the application of the ICB as it is required that the correspondent to whom the Bond provider will communicate with must have an address based in the USA.

You may either ask your port agent to instruct a customs broker or you may contact the customs broker directly to appoint them to handle the entire AMS process for you.The customs broker should be able to do the following:

1. obtain an SCAC code
2. obtain an importer I.D. from CBP
3. apply for an ICB from a surety
4. arrange for an AMS data service centre to transmit cargo data directly to CBP on your behalf.

As a very rough guide,customs broker are currently charging US$2,500-3,100 per annum regardless of the number of vessels.This fee includes the bond premium(US$100,000),the SCAC annual membership, and CBP importer I.D. processing fee.It does NOT include the AMS data service centre fee.