NAS/WIIC: Press Releases

Advanced Electronic Cargo Information for All Modes of Transportation
09 Apr 2004

Background
On December 5, 2003, the Bureau of Customs and Border Protection (“CBP”) published a federal register notice containing the regulations for the provisions of the Trade Act of 2002 which requires advanced electronic cargo information. The new regulations became effective on January 5, 2004. The actual enforcement of the regulations will begin on or about March 4, 2004.

On March 4, 2004 electronic transmission of manifest information must be provided directly to Customs. The manifest data must be provided via a certain data system within a certain timeframe as indicated below:

Mode	Data System	Timeframe	Responsible Party
Air & Courier	Air AMS	a) Four Hours, or b) "Wheels up" from certain nearby areas prior to arrival	a) Air Carriers b) Importer or its Broker c) Freight Forwarder d) Other Air Carriers
Rail	Rail AMS	Two hours prior to arrival in US	Rail Carrier
Vessel	Vessel AMS	24 hours prior to arrival in US	a) Vessel Carrier b) NVOCCs
Truck	FAST - Free and Secure Trade. PAPS - Pre-Arrival Processing System. BRASS - Border Release Advanced Selectivity System. CAFES - Customs Automated Forms Entry System	a) FAST: 30 Minutes. b) Non-Fast: 1 Hour prior to arrival in US	a) Truck Carriers b) Importer c) Customs Broker

[1] FAST is an acronym for Free and Secure Trade between the US and Canada. It is an expedited clearance system designed to improve border security without slowing the movement of legitimate trade. It allows importers, shippers, freight forwarders, and carriers, who have qualified, to move their goods through Customs more quickly.

In order to ensure compliance, CBP requires an Import bond (CF301, Activity Code 1) or an International Carrier bond (CF 301, Activity Code 3).

Bonding Requirements:

Import Bond (19CFR113.62): If an importer or broker currently has a continuous Import bond, the bonding requirements for purposes of providing advanced air or truck cargo information are covered under its current Activity Code 1 continuous bond.

International Carrier Bond (19CFR113.64): All air carriers, freight forwarders, rail carriers, vessel carriers, NVOCCs and truck carriers must have a continuous International Carrier bond for purposes of transmitting all advance manifest data. The bond amount will be $50,000.

WIIC Underwriting Requirements:

ALL NEW BOND REQUESTS MUST BE SENT TO WIIC; THERE IS NO AGENCY AUTHORITY FOR THESE REQUIREMENTS.

1. For US Companies:

§ A financial statement (year end audited) is required.

§ If the financial statement does not support the bond, Letter of Credit in the amount of the bond is required.

2. For Foreign Companies:

§ Letter of Credit in the amount of the bond is required.

Rates:

WIIC standard rates for any bond written for this requirement.

For more information or if you have any questions, please contact Colleen Clarke at Washington International Insurance Company at (630) 227-4830 or at colleen_clarke@nassurety.com[