Electronic Export Manifest for Vessel Cargo
Federal RegisterFeb 10, 2026
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
19 CFR Parts 4, 103, and 113
[Docket No. USCBP-2025-0911]
RIN 1651-AB59
Electronic Export Manifest for Vessel Cargo
AGENCY:
U.S. Customs and Border Protection, DHS.
ACTION:
Notice of proposed rulemaking.
SUMMARY:
U.S. Customs and Border Protection (CBP) proposes to amend its regulations to require the advance submission of electronic export manifest (EEM) information to CBP for cargo transported by vessel departing the United States. The proposed rule identifies the parties that would be eligible to transmit vessel EEM information and their responsibilities, and the time frames for transmission of the information prior to cargo loading or conveyance departure. Requiring advance transmission of EEM data would significantly improve cargo safety and security while minimizing disruption to the flow of commerce for exports in the sea environment.
DATES:
Comments must be received by April 13, 2026.
ADDRESSES:
Please submit comments, identified by docket number [USCBP-2025-0911], by the following method:
•
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Instructions:
All submissions received must include the agency name and docket number for this rulemaking. All comments received will be posted without change to
http://www.regulations.gov,
including any personal information provided. For detailed instructions on submitting comments and additional information on the rulemaking process, see the “Public Participation” heading of the
SUPPLEMENTARY INFORMATION
section of this document.
Docket:
For access to the docket to read background documents or comments received, go to
http://www.regulations.gov.
In accordance with 5 U.S.C. 553(b)(4), a summary of this rulemaking may also be found at
https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
David Garcia, Program Manager, Outbound Enforcement and Policy Branch, Office of Field Operations, CBP, via email at
cbpexportmanifest@cbp.dhs.gov,
or by telephone, 202-344-3277.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Public Participation
II. Executive Summary
A. Purpose of the Electronic Export Manifest for Vessel Cargo
1. Need for the Regulatory Action
2. Statement of Legal Authority
B. Summary of the Major Provisions of EEM for Vessel Cargo
C. Costs and Benefits
III. Background
A. Legal Authority
B. Current Regulations and Processes
1. Current Vessel Cargo Export Manifest Data Requirements
2. Current Vessel Cargo Export Information Transmission Time Frames
3. Streamlining the Submission of Export Information for Vessel Cargo and Closing Enforcement Gaps
C. The ACE Export Manifest for Vessel Cargo Test
1. The National Customs Automation Program
2. Data Elements in the Test
3. Test Expansion, Extension, and Modification and Renewal
4. Results of the Test, Modification, Expansion, Extension and Renewal
D. Purpose and Need for the Rule
IV. Proposed Regulatory Changes
A. Proposed EEM Requirement
B. Time Frame for Transmitting Advance Vessel and Cargo Departure Information
C. Parties Filing Advance Vessel and Cargo Departure Information
D. Initial Data Elements
E. Export Manifest Transportation Data
1. Mandatory Elements
2. Conditional Element
3. Optional Elements
F. Export Manifest Cargo Data
1. Mandatory Elements
2. Conditional Elements
3. Optional Elements
G. Electronic Export Manifest Holds and Do-Not-Load Instructions
H. Technical Amendments to 19 CFR Part 4
I. Proposed Amendments to Availability of Information
J. Proposed Amendments to CBP Bond Conditions
V. Regulatory Analyses
A. Executive Orders 12866 and 13563 (Regulatory Planning and Review)
B. Regulatory Flexibility Act
C. Paperwork Reduction Act
D. Privacy
E. Unfunded Mandates Reform Act
VI. Signing Authority
I. Public Participation
Interested persons are invited to participate in this rulemaking by submitting written data, views, or arguments on all aspects of the notice of proposed rulemaking.
U.S. Customs and Border Protection (CBP) also invites comments that relate to any economic, environmental, or federalism effects that might result from this proposal. Comments that will provide the most assistance to CBP will reference a specific portion of the proposed rule, explain the reason for any recommended change, and include data, information, or authority that support such recommended change.
II. Executive Summary
A. Purpose of the Electronic Export Manifest for Vessel Cargo
1. Need for the Regulatory Action
CBP's mission includes ensuring cargo security and preventing smuggling while enforcing U.S. trade laws and regulations. Obtaining data in a timely and sufficient manner prior to cargo arriving or departing the United States allows CBP to review, conduct risk assessment, and effectively inspect cargo. Pursuant to section 343(a) of the Trade Act of 2002, as amended (19 U.S.C. 1415), CBP seeks to mandate the electronic transmission of export manifest information and eliminate reliance on paper. CBP proposes to identify and clarify the responsibilities of different parties to transmit information, describe the time frames for transmission of information prior to cargo loading or conveyance departure, identify enforcement actions available while outlining consequences of default, and limit post-departure filing for cargo transported by vessel to assess cargo security concerns.
The requirement to submit manifest data electronically under specific time frames will facilitate a more efficient trade process for all parties involved. The submission of electronic manifest data will significantly increase CBP's ability to identify high-risk cargo, to ensure cargo security, and to prevent smuggling, as the earlier electronic submission allows CBP to use its Automated Targeting System (ATS) to assess all export manifest data transmitted. Trade members would also experience efficiencies with quicker CBP examination decisions, ability to resolve CBP requests, earlier mitigation of enforcement actions, and improved communication between CBP and trade members.
2. Statement of Legal Authority
CBP is authorized to promulgate regulations providing for the mandatory transmission of electronic cargo information by way of a CBP-authorized electronic data interchange (EDI) system of information before the cargo arrives or departs the United States by any mode of commercial transportation (sea, air, rail, or truck). Section 343(a) of the Trade Act of 2002, as amended (Trade
Act) (19 U.S.C. 1415). Pursuant to 19 U.S.C. 1415(a)(3)(F), the required vessel cargo information being sought is reasonably necessary to enable CBP to identify high-risk shipments for purposes of ensuring cargo safety and security, preventing smuggling, and commercial risk assessment targeting, pursuant to the laws enforced and administered by CBP. CBP needs to obtain timely and sufficient data prior to cargo arriving or departing the United States via any mode of commercial transportation to review and conduct risk assessments to identify high-risk shipments and inspect cargo effectively.
B. Summary of the Major Provisions of EEM for Vessel Cargo
This proposed rule would mandate the transmission of EEM data for all cargo prior to departing the United States by vessel. CBP is proposing to revise 19 CFR 4.63 to mandate the electronic transmission of vessel export manifest information, identify the parties eligible to transmit information, describe the time frames prior to departure of the vessel in which the information is due, and identify an initial filing as early as practicable but no later than 24 hours prior to loading of cargo on the outbound conveyance from the port of export while requiring the remaining data to be transmitted at least two hours prior to such departure. Proposed 19 CFR 4.63 would designate information as either transportation data, cargo data, or empty container data, and list the data elements to be transmitted while identifying them as mandatory, conditional, or optional. The data elements identified as mandatory must be submitted, while elements identified as conditional would be submitted if applicable, and optional elements may be provided at the discretion of the filers. These elements would allow for CBP to inspect cargo effectively, ensure compliance with U.S. export control laws and regulations, and identify high-risk shipments for purposes of ensuring cargo safety and security.
Proposed 19 CFR 4.63(d) would require the mandatory initial filing of eight data elements, identified below, be submitted as early as practicable but no later than 24 hours prior to the loading of cargo on the outbound conveyance from port of export, by either the carrier, U.S. Principal Party in Interest (USPPI), or other qualified parties or their authorized agents. The results of the test, described in Section III.C., have shown that some outbound vessel carriers have the export manifest data days before departure and therefore would have all the necessary information to submit the initial filing data to CBP and all other export manifest data well in advance of the 24-hour prior to departure deadlines. Except for the initial data elements, this rule would require the electronic export manifest information in proposed 19 CFR 4.63(e) and (f) to be transmitted two hours prior to vessel departure to a foreign port.
Proposed 19 CFR 4.63(g) would provide two types of holds, documentation and enforcement, that CBP may issue after a risk assessment of an outbound export manifest data transmission. Should any vessel cargo be identified by CBP as requiring review, the cargo would be held until required additional information related to the shipment is submitted or some other appropriate action is taken, as specified by CBP. These examinations allow CBP to secure the cargo, conduct risk assessment, and inspect cargo effectively. Once the cargo is cleared for loading, a release message would be generated and transmitted to the filer.
In addition to holds, proposed 19 CFR 4.63(h) would provide procedures for when a combination of risk assessment and intelligence point to a threat or terrorist plot in progress, and cargo or vessel container may contain an immediate threat to the vessel and its vicinity, and CBP issues a Do-Not-Load (DNL) instruction. Any cargo that is issued a DNL instruction must not be loaded onto a vessel and would require immediate adherence to the protocols and directions from law enforcement authorities.
CBP proposes to amend 19 CFR 4.75, which identifies a complete electronic export manifest and electronic export information requirements and the exceptions for post departure filing, in order to limit the situations where post departure filing would be permissible.
As an enforcement tool, CBP also proposes changes to the relevant bond provisions in 19 CFR 113.62 (basic importation and entry bond), 19 CFR 113.63 (basic custodial bond), and 19 CFR 113.64 (international carrier bond) to provide for the imposition of damages on parties that do not provide the mandatory EEM data in the required manner and time frame. Specifically, CBP proposes to amend 19 CFR 113.62, 19 CFR 113.63, and 19 CFR 113.64 to address compliance with the proposed requirements regarding timely electronically provided outbound information in addition to the current provisions regarding timely electronic transmissions for merchandise or cargo which is inbound. With each of these provisions, CBP may assess damages if a violation occurs. CBP's primary goal is compliance and CBP seeks to work alongside outbound vessel carriers and other parties to ensure that the proper data is provided in a timely manner for CBP to properly review the data, conduct risk assessment of high-risk shipments, and enforce U.S. export laws and regulations on U.S. exports in the sea environment.
C. Costs and Benefits
CBP anticipates that during the time period of analysis (2015-2030), this proposed rule would result in costs, cost savings, and benefits to CBP and trade members who export merchandise out of the United States by vessel. CBP estimates present value total costs to CBP and trade members would range from $172 million in 2023 U.S. dollars using a three percent discount rate to $102 million using a seven percent discount rate. Annualized total costs are expected to be $13.7 million using a three percent discount rate and $10.8 million using a seven percent discount rate. CBP identified other potential costs from this proposed rule but was unable to monetize them. These costs include time burdens to CBP officers if the proposed rule results in additional cargo examinations and trade members participating in the vessel EEM would also need to adjust business practices, be required to hold or obtain a qualifying bond, be required to have staff available to respond to CBP questions, and pay damages for any violations. Present value total cost savings to CBP and trade members are expected to be around $195 million in 2023 U.S. dollars using a three percent discount rate, or $15.5 million annualized, and $119 million in 2023 U.S. dollars using a seven percent discount rate, or $12.6 million annualized. CBP expects that there would be additional cost savings to trade members that CBP was unable to monetize, including reduced paper, printing, and storage costs related to the elimination of paper forms. CBP anticipates that benefits from this proposed rule would include improving CBP's security efforts by using ATS to conduct risk assessment on all sea exports, improving communication between Federal agencies with export jurisdiction, and improving efficiencies to participating trade members from transitioning from a paper to an electronic process. However, CBP was unable to monetize the expected benefits from this proposed rule. Present value total net cost savings from the implementation of this final rule would be around $17.2 million in 2023 U.S. dollars using a three percent discount rate, or approximately $1.4 million
annualized, and $9.3 million in 2023 U.S. dollars using a seven percent discount rate, or around $0.98 million annualized.
1
Table 1 displays CBP's estimates for annualized costs, costs savings, benefits, and net costs from this proposed rule using a three and seven percent discount rate over the period of analysis (2015-2030). Additionally, based on CBP's perpetual time horizon calculations the present value of net cost savings from this proposed rule would be $99.54 million and the annualized value of net cost savings will be $6.97 million using a seven percent discount. Therefore, this proposed rule is considered by CBP to be a deregulatory action for the purposes of meeting Executive Order 14192 requirements.
1
In the economic analysis for this proposed rule, CBP used a 3% and 7% discount rate for estimated future quantified and monetized costs, costs savings, and benefits based on guidance from OMB Circular A-4.
EP10FE26.006
III. Background
A. Legal Authority
Section 343(a) of the Trade Act of 2002, Public Law 107-210, 116 Stat. 933, 981, as amended (Trade Act) (19 U.S.C. 1415(a)), authorizes CBP to promulgate regulations providing for the mandatory transmission of electronic cargo information by way of a CBP-authorized electronic data interchange (EDI) system before the cargo is brought into or departs the United States by any mode of commercial transportation (sea, air, rail, or truck). The required cargo information is that which is reasonably necessary to enable CBP to identify high-risk shipments for purposes of ensuring cargo safety and security, preventing smuggling, and commercial risk assessment targeting, pursuant to the laws enforced and administered by CBP. 19 U.S.C. 1415(a)(2), (a)(3)(F). In developing such regulations, CBP must adhere to the parameters set forth in section 343(a)(3) of the Trade Act (19 U.S.C. 1415(a)(3)) to balance the impact on the flow of commerce with the impact on cargo safety and security.
In accordance with these parameters, CBP consulted with carriers throughout the process of developing the proposed regulation and during the course of the ACE Export Manifest for Vessel Cargo Test (see Section III.C. below) that has been administered since 2015.
See
Trade Act, sec. 343(a)(3)(A), 19 U.S.C. 1415(a)(3)(A). As section 343(a)(3)(B) of the Trade Act (19 U.S.C. 1415(a)(3)(B)) requires, the proposed regulation would impose requirements on the party most likely to have direct knowledge of information to be provided. When requiring information from the party with direct knowledge of that information is not practicable, the proposed regulation takes into account how, under ordinary commercial practices, information is acquired by the party on which the requirement would be imposed, and whether and how such party is able to verify the information. Where information is not reasonably verifiable by the party on which a requirement would be imposed, the proposed regulation would permit that party to transmit information on the basis of what it reasonably believes to be true. The proposed regulation would require the submission of the export manifest data electronically in ACE for cargo transported by vessel, requiring certain elements that would only be available for a vessel and not for other modes of transportation, pursuant to section 343(a)(3)(D), of the Trade Act (19 U.S.C. 1415(a)(3)(D)). The information that would be collected under the proposed regulation would be used exclusively for ensuring cargo safety and security, preventing smuggling, and commercial risk assessment targeting.
See
Trade Act, sec. 343(a)(3)(F), 19 U.S.C. 1415(a)(3)(F). The proposed regulation specifically avoids imposing requirements that are redundant with one another or that are redundant with requirements in other provisions of law, as seen below in Section IV.C.
See
Trade Act, sec. 343(a)(3)(I), 19 U.S.C. 1415(a)(3)(I).
B. Current Regulations and Processes
Under current CBP regulations in title 19 of the Code of Federal Regulations (CFR), certain information must be submitted to CBP for vessels with export cargo leaving the United States for any foreign area, whether directly or by way of other domestic ports. First, 19 CFR 4.61 requires the vessel master or other proper officer to execute a Vessel Entrance or Clearance Statement on CBP Form 1300 filed with CBP pertaining to the outbound vessel or that the necessary information be transmitted electronically pursuant to a system authorized by CBP. Then, 19 CFR 4.63 requires the filing of a Cargo Declaration Outward With Commercial Form (CBP Form 1302A) with the appropriate CBP officer at the port from which clearance is being sought. This section requires that “copies of bills of lading or equivalent commercial documents relating to all cargo encompassed by the manifest must be attached in such manner as to constitute one document, together with a Vessel Entrance or Clearance Statement, CBP Form 1300, and Electronic Export Information (EEI) as are required by pertinent regulations of the Bureau of the Census, Department of Commerce” (Census) (that is, the Foreign Trade Regulations (FTR), provided in 15 CFR part 30). 19 CFR 4.63(a). Currently, 19 CFR 4.63 also allows for the filing of an incomplete Cargo Declaration in certain cases pursuant to 19 CFR 4.75. Under 19 CFR 4.75, the vessel master, or the vessel's agent on behalf of the master, is required to file the complete vessel cargo manifest generally within four business days after clearance from each port in the vessel's itinerary.
Additionally, 19 CFR 4.76 sets forth procedures and responsibilities of carriers filing outbound vessel manifest information via the Automated Export System (AES) in lieu of paper CBP Form 1302A. Approved carriers submitting outbound vessel manifest information electronically in AES under 19 CFR 4.76 must, with limited exceptions, submit the complete manifest data within ten calendar days after departure. Finally, 19 CFR 192.14 requires the U.S. Principal Party in Interest (USPPI), the USPPI's authorized agent, or the authorized filing agent of the Foreign Principal Party in Interest (FPPI), to file any required EEI for the cargo on the vessel.
2
More details regarding the manifest requirements, the subject of this proposed rule, are provided in the next section.
2
USPPI is defined in the FTR as the person or legal entity in the United States that receives the primary benefit, monetary or otherwise, from the export transaction. Generally, that person or entity is the U.S. seller, manufacturer, or order party, or the foreign entity while in the United States when purchasing or obtaining the goods for export. 15 CFR 30.1(c). FPPI is defined in the FTR as the party abroad who purchases the goods for export or to whom final delivery or end-use of the goods will be made. This party may be the Ultimate Consignee. 15 CFR 30.1(c).
1. Current Vessel Cargo Export Manifest Data Requirements
As indicated in the previous section, generally the vessel master or agent must file paper copies of the vessel cargo manifest on CBP Form 1302A. CBP Form 1302A consists of the following data elements:
(1) Name of ship
(2) Port where report is made (not required by United States)
(3) Nationality of ship
(4) Name of master
(5) Port of loading
(6) Port of discharge
(7) Bill of Lading number
(8) Marks and Numbers, Container Numbers, Seal Numbers
(9) Number and kind of packages; Description of goods
(10) Gross Weight (lb. or kg.)
(11) Measurements (per HTS).
Though not a data element on CBP Form 1302A itself, the Internal Transaction Number (ITN) or AES Exemption Statement must be included on the outward manifest pursuant to 19 CFR 4.63(b) and 192.14(c)(3).
3
3
Specifically, 19 CFR 4.63(b) requires that the ITN of the EEI covering each shipment for which EEI is required must be shown on the Cargo Declaration Outward with Commercial Form (CBP Form 1302A) in the marginal column headed “B/L No.” If EEI is not required for a shipment, 19 CFR 4.63(b) requires that a notation must be made on the Cargo Declaration Outward With Commercial Form (CBP Form 1302A) describing the basis for the exemption or exclusion using the reference number found in the Census Bureau's FTR (see 15 CFR part 30, appendix B) where the particular exemption or exclusion is provided, that is, the AES Exemption Statement.
As mentioned above, 19 CFR 4.76 provides that approved carriers may submit outbound vessel manifest information electronically in AES in lieu of submitting a paper CBP Form 1302A. The Sea Carriers Module was CBP's early method of modernizing the submission of vessel manifest
information. Sea carriers are required to apply for participation. However, few carriers in fact sought to participate and instead opted to use DIS. In this case, the carrier had ten calendar days after the departure of the vessel from each port to submit the manifest information to CBP. CBP also allows some qualifying outbound vessel carriers to participate in the Vessel Transportation Module (VTM) which provides the carriers the ability to transmit this export manifest data to CBP electronically via the Automated Commercial Environment (ACE) in lieu of the paper CBP Form 1302A, but very few outbound vessel carriers actively provide this information electronically. Also, participants in the ACE Export Manifest for Vessel Cargo Test may opt to submit EEM via ACE as detailed in Section III.C. below.
1. Current Vessel Cargo Export Information Transmission Time Frames
As noted above, under current regulations, information regarding vessel export cargo may be transmitted post-departure. Generally, the vessel cargo manifest may be filed in complete form or incomplete form (pro forma). However, the complete manifest must be filed with CBP before a vessel will be cleared to depart to a foreign country listed in 19 CFR 4.75(c). Otherwise, for shipments to a foreign country, an incomplete manifest may be filed with CBP at the departure port when accompanied by the proper bond pursuant to 19 CFR 4.75(a). For shipments from any State or the District of Columbia to Puerto Rico, a complete manifest or proper bond shall be filed with CBP within one business day of arrival in Puerto Rico as provided in 19 CFR 4.84(c)(2). For shipments from any State or the District of Columbia to noncontiguous territories of the United States other than Puerto Rico, or from Puerto Rico to any State or the District of Columbia to any other noncontiguous territory, a complete manifest or proper bond must be filed with CBP before departure as provided in 19 CFR 4.84(c)(1).
When filing an incomplete manifest under the terms of the required bond, the complete manifest must be filed timely with CBP by the master, or the vessel's agent on behalf of the master. For shipments to foreign countries, the complete manifest must be filed no later than four business days post-departure. 19 CFR 4.75(b). For shipments from the United States to Puerto Rico, the complete manifest must be filed no later than one business day after arrival in Puerto Rico. 19 CFR 4.84(c)(2).
As mentioned above, carriers submitting outbound vessel manifest information electronically in AES under 19 CFR 4.76 must submit the complete manifest data within ten calendar days after departure of the vessel from each port. However, if the destination of the vessel is a foreign port listed in 19 CFR 4.75(c), the carrier must transmit complete manifest information before vessel departure. The time requirements for electronic transmission of complete manifest information for carriers destined to Puerto Rico are the same as the requirements found in 19 CFR 4.84 and described above.
During the vessel EEM test, participants would transmit completed vessel export cargo manifest data electronically to CBP via ACE, at least 24 hours prior to the loading of that cargo or container onto a vessel. CBP expected that the deadline of 24 hours prior to loading the cargo onto vessels would provide CBP adequate time to conduct a proper review of export manifest data to enhance cargo safety and security measures prior to cargo being loaded and a vessel's departure. Identifying any high-risk cargo and containers prior to the loading of cargo onto vessels improves security measures while ensuring compliance with U.S. export laws and minimizes the disruption of the trade process at the U.S. port of export. Additionally, the deadlines for export manifest data transmission provide CBP the time to compare the export manifest data with any EEI submitted by USPPI to further enhance security measures on cargo departing the United States in the sea environment.
During this initial phase of the vessel EEM test, CBP worked with outbound vessel carriers who agreed to participate and submit export manifest data electronically to CBP via ACE. CBP requested that vessel participants continue to submit CBP Form 1302A as they did before participating in the test so that CBP can capture any inconsistencies or issues with the electronic transmission of vessel EEM data to CBP. If an outbound vessel carrier was already providing data to CBP via VTM, those outbound vessel carriers do not provide the paper CBP Form 1302A to CBP. Additionally, if an outbound vessel carrier provides data through VTM and then participates in the vessel EEM, CBP did not require the carrier to submit both VTM and vessel EEM data.
Regarding the submission of EEI, the provisions of the Census FTR, 15 CFR 30.5(c), authorize an approved USPPI or its authorized agent to transmit EEI up to five calendar days after the date of export. This allows the presentation of manifest data and EEI after the departure of the vessel.
See
19 CFR 4.75, 4.76, 4.84, and 15 CFR 30.4.
This post-departure process engenders security gaps.
2. Streamlining the Submission of Export Information for Vessel Cargo and Closing Enforcement Gaps
Under the current regulatory requirements, paper and electronic processes co-exist for the presentation of cargo and transportation information for outbound vessels. The FTR set forth in 15 CFR part 30, and the CBP regulations at 19 CFR 192.14(b)(1)(i), generally require the transmission of EEI for outbound vessel cargo no later than 24 hours prior to loading of the cargo on the vessel at the U.S. port of lading. Under CBP regulations at 19 CFR 4.63(a)(1), no vessel can clear directly for a foreign port or for a foreign port by way of another domestic port or ports unless a Cargo Declaration Outward with Commercial Form (CBP Form 1302A) is filed along with bills of lading relating to cargo encompassed by the manifest, together with a Vessel Entrance or Clearance Statement, CBP Form 1300. The Cargo Declaration Outward with Commercial Form (CBP Form 1302A) is generally submitted on paper, unless the carrier is eligible to submit electronically. Requiring the electronic submission of the export manifest information in lieu of a paper Cargo Declaration Outward with Commercial Form (CBP Form 1302A) would streamline the submission of this information.
As noted above, much export manifest information and EEI is not required to be provided until after departure of the vessel. Additionally, with a few exceptions, EEI is only transmitted when the value of merchandise in a shipment exceeds $2500.00. 15 CFR 30.37 (y)(2). These regulatory gaps leave many shipments unavailable for CBP to review before they have already left the United States. The lack of pre-departure information, which includes commodity information submitted into CBP targeting systems, hinders CBP's ability to target and inspect cargo effectively to ensure cargo and conveyance safety and compliance with U.S. export control laws and regulations.
C. The ACE Export Manifest for Vessel Cargo Test
1. The National Customs Automation Program
In recognition of the shortfalls of the current regulations described above, on August 20, 2015, CBP published a
general notice in the
Federal Register
announcing a National Customs Automation Program (NCAP) Test
4
to gauge the feasibility of requiring certain export manifest information to be filed electronically in ACE for vessel cargo. 80 FR 50644. Participants in the voluntary test agree to submit the export manifest data to CBP at least 24 hours before the cargo is loaded on the vessel, consistent with EEI transmission requirements. Participation in the test was initially limited to nine stakeholders composed of a mix of a certain number of outbound vessel carriers and freight forwarders or Non-Vessel Operating Common Carriers (NVOCCs) who met the eligibility requirements.
4
The NCAP was established in Subtitle B of Title VI—Customs Modernization, in the North American Free Trade Agreement Implementation Act, Public Law 103-182, 107 Stat. 2057, 2188 (1993), as amended (19 U.S.C. 1411-15).
See also
19 CFR 101.9(b) (regarding NCAP testing).
2. Data Elements in the Test
The ACE Export Manifest for Vessel Cargo Test data elements are similar, but not identical to the data elements required on CBP Form 1302A. The data elements are mandatory unless otherwise indicated. Data elements that are indicated as “conditional” must be transmitted to CBP only if the particular information pertains to the cargo. The ACE Export Manifest for Vessel Cargo data elements are to be submitted at the lowest bill level.
The data elements consist of:
(1) Mode of transportation (containerized vessel cargo or non-containerized vessel cargo)
(2) Name of ship or vessel
(3) Nationality of ship
(4) Name of master
(5) Port of loading
(6) Port of discharge
(7) Bill of Lading number (Master and House)
(8) Bill of Lading type (Master, House, Simple or Sub)
(9) Number of house Bills of Lading
(10) Marks and Numbers (conditional)
(11) Container Numbers (conditional)
(12) Seal Numbers (conditional)
(13) Number and kind of packages
(14) Description of goods
(15) Gross Weight (lb. or kg.) or Measurements (per HTS)
(16) Shipper name and address
(17) Consignee name and address
(18) Notify Party name and address (conditional)
(19) Country of Ultimate Destination
(20) In-bond Number (conditional)
(21) Internal Transaction Number (ITN) or AES Exemption Statement (per shipment)
(22) Split Shipment Indicator (Yes/No)
(23) Portion of split shipment (
e.g.,
1 of 10, 4 of 10, 5 of 10—Final, etc.) (conditional)
(24) Hazmat Indicator (Yes/No)
(25) UN Number (conditional) (If the hazmat indicator is yes, the four-digit United Nations (UN) Number assigned to the hazardous material must be provided.)
(26) Chemical Abstract Service (CAS) Registry Number (conditional)
(27) Vehicle Identification Number (VIN) or Product Identification Number (conditional) (For shipments of used vehicles, the VIN must be reported, or for used vehicles that do not have a VIN, the Product Identification Number must be reported.)
3. Test Expansion, Extension and Modification and Renewal
On August 14, 2017, the Test was extended for an additional year (82 FR 37890). At the same time, the Test began accepting additional applications for all parties which met the eligibility requirements in lieu of the original nine stakeholders composed of outbound vessel carriers and/or freight forwarders.
CBP consulted with the Commercial Customs Operations Advisory Committee (COAC) to address issues concerning the quality, accessibility, and timeliness of export manifest data received during the test. One issue of concern was the availability of certain data elements required under the test 24 hours prior to loading of the cargo on the vessel in preparation for departure from the United States. COAC urged CBP to change the filing condition of those data elements.
After evaluating the initial phase of the ACE Export Manifest for Vessel Cargo Test and considering COAC's comments, CBP determined that, to better test the functionality and feasibility of submitting the specified export data at least 24 hours prior to loading of the cargo on the vessel, the filing condition for four of the data elements should be changed. The modified filing conditions enabled CBP to better determine the appropriate reporting requirements for each data element. (Data elements which are “mandatory” must be provided to CBP for every shipment. Data elements which are “conditional” must be provided to CBP only if the particular information pertains to the cargo. Data elements which are “optional” may be provided to CBP but are not required.)
CBP modified the ACE Export Manifest for Vessel Cargo Test to change the following four mandatory or conditional data elements to optional:
• Name of the master (Data Element #4)
• Number of house Bills of Lading (Data Element #9)
• Split Shipment Indicator (Data Element #22)
• Portion of Split Shipment (Data Element #23)
The remaining data elements under the ACE Export Manifest for Vessel Cargo Test continue to be mandatory, conditional, or optional as provided in the August 20, 2015, notice and as detailed in Section III.B.2. above.
It was noted in the expansion/modification that upon the conclusion of the ACE Export Manifest for Vessel Cargo Test, should CBP decide to conduct rulemaking to amend the regulations concerning the filing of the manifest for vessel cargo, CBP would reevaluate the filing conditions for each data element to determine the feasibility of requiring that data element to be filed electronically in ACE within a specified time before the cargo is loaded on the vessel.
On April 27, 2022, CBP renewed the ACE Export Manifest for Vessel Cargo Test for an additional two years. (87 FR 25036.)
4. Results of the Test, Modification, Expansion, Extension and Renewal
The ACE Export Manifest for Vessel Cargo Test assesses the functionality regarding the filing of export manifest data for vessel cargo electronically to ACE in furtherance of the ITDS initiatives described above. CBP re-engineered AES to move it to an ACE system platform. The re-engineering and incorporation of AES into ACE resulted in the creation of a single automated export processing platform for certain export manifest, commodity, licensing, export control, and export targeting transactions. This reduced costs for CBP, partner government agencies, and the trade community and improve facilitation of export shipments through the supply chain.
The ACE Export Manifest for Vessel Cargo Test also examines the feasibility of requiring the manifest information to be filed electronically in ACE within a specified time before the cargo is loaded on the vessel. (Under the current regulatory requirements, in most cases the complete manifest is not required to be submitted until after the departure of the vessel.) As described in the paragraph below, in the test, participants submit export manifest data electronically to ACE at least 24 hours prior to loading of the cargo on the vessel. This enables CBP to link the EEI submitted by the USPPI with the export manifest information earlier in the process. This capability better enables
CBP to assess risk and effectively target and inspect shipments prior to the loading of cargo to ensure compliance with all U.S. export laws.
Participants in the ACE Export Manifest for Vessel Cargo Test agreed to provide export manifest data electronically at least 24 hours prior to loading of the cargo onto the vessel in preparation for departure from the United States. If the outbound vessel carrier files this ACE Export Manifest data, the electronic filing is in lieu of the paper filing of CBP Form 1302A and copies of bills of lading or equivalent commercial documents relating to all cargo encompassed by the manifest. If a freight forwarder or NVOCC files the ACE Export Manifest data, the carrier is still required to file one of the following: the CBP Form 1302A with copies of bills of lading or equivalent commercial documents relating to all cargo encompassed by the manifest attached in such manner as to constitute one document; the 19 CFR 4.76 electronic equivalent, if the outbound vessel carrier is approved for this procedure; or the ACE Export Manifest data, if the outbound vessel carrier is a test participant.
The ACE Export Manifest data submission is used to target high-risk vessel cargo. The data should be available to test participants early in the planning stages of an export vessel cargo transaction. Data provided 24 hours prior to loading permits adequate time for proper risk assessment and identification of shipments to be inspected early enough in the supply chain to enhance security while minimizing disruption to the flow of goods.
Any vessel cargo identified as potentially high-risk receives a hold until required additional information related to the shipment is submitted to clarify non-descriptive, inaccurate, or insufficient information, a physical inspection is performed, or some other appropriate action is taken, as specified by CBP. Once the cargo is cleared for loading, a release message is generated and transmitted to the filer.
The success of the test allowed CBP to determine that the electronic submission of manifests provides improvements in capabilities at the departure level. As a result of these improvements, CBP is now seeking to end the test and codify this program by proposing new regulations in this document.
The Vessel Export Manifest Test described 27 data elements to be included in the vessel electronic export environment. The following data elements (with numbering corresponding to the list of data elements published in the General Notice published in 2015 (80 FR 50644)) are being carried forward from the test to the regulations unchanged:
(1) Mode of transportation (containerized vessel cargo or non-containerized vessel cargo.)
(7) Bill of Lading number
(9) Number of house Bills of Lading (optional)
(10) Marks and Numbers
(12) Seal Numbers (conditional)
(18) Notify Party name and address (conditional)
(19) Country of Ultimate Destination
(21) AES Internal Transaction Number (ITN) or AES Exemption Statement (per shipment)
(26) Chemical Abstract Service (CAS) Registry Number (conditional)
(27) Vehicle Identification Number (noting that Product Identification Number has not been included) (conditional)
The following data elements were found to be problematic or superfluous and will not be carried forward in the proposed rule:
(4) Name of master (optional)
(22) Split Shipment Indicator (Yes/No)
(23) (
i.e.,
1 of 4, 4 of 10, 5 of 10—Final, etc.)
(24) Hazmat Indicator (conditional)
(27) Product Identification Number (noting that Vehicle Identification Number has been included.)
The following data elements have been re-named or reconfigured for clarity:
(2) Name of ship or vessel is separated into two elements Vessel Name and Voyage Number
(3) Nationality of ship is now described as Vessel Country Code (International Organization for Standardization (ISO) country code)
(5) Port of lading is now described as Port of departure
(6) Port of discharge is now described as Port of Unlading
(8) Bill of Lading type (Master, House, Simple or Sub) is now described as Bill of Lading (Master, House, or Simple)
(11) Container Numbers (conditional) is split and reconfigured as two data elements, Container Information (mandatory), and Load Status (Empty or Loaded) indicator (yes/no)
(13) “Numbers and kind of packages” is now described as “The numbers and quantities of the cargo laden aboard the vessel as contained in the carrier's bill of lading, either master or house, as applicable (this means the quantity of the lowest external packaging unit; containers and pallets do not constitute acceptable information; for example, a container holding 10 pallets with 200 cartons should be described as 200 cartons)”
(14) “Description of goods” is now described as “A precise cargo description (or the Harmonized Tariff Schedule (HTS) number(s) to the 6-digit level under which the cargo is classified if that information is received from the shipper); or, for a sealed container, the shipper's declared description (generic descriptions, specifically those such as “FAK” (“freight of all kinds”), “general cargo,” and “STC” (“said to contain”) are not acceptable)”
(15) Gross Weight (lb. or kg.) or Measurements (per HTS) is now described in the initial filing as “Total weight of cargo expressed in pounds or kilograms”.
(16) Shipper name and address is now described in the initial data filing as “The shipper's complete name and address, or identification number, from the bill(s) of lading (for each house bill in a consolidated shipment). For mandatory export manifest cargo data due prior to departure but after the initial filing, the data element is described as “Shipper name and address (For empty containers, the shipper may be the carrier from whom the outbound vessel carrier received the empty to transport).”
(17) Consignee name and address is now described in the initial data filing as “The complete name and address of the consignee, or identification number, from the bill(s) of lading (The consignee is the party to whom the cargo will be delivered to in the foreign country. However, in the case of cargo shipped `to order of a [named party],' the `to order' party must be named as the consignee; and if there is any other commercial party listed in the bill of lading for delivery or contact purposes, the carrier must also report this other commercial party's identity and contact information including address in the `Notify Party' field).” For mandatory export manifest cargo data due prior to departure but after the initial filing, the data element is described as “Consignee name and address (For empty containers, the consignee may be the carrier to whom the outbound vessel carrier is transporting the empty container).”
(20) In-bond number (conditional) is now described as “In-bond type and or in- bond house bill number”.
(25) 6-character Hazmat Code (UN (for United Nations Number) or NA (North American Number) and the
corresponding 4-digit identification number assigned to the hazardous material must be provided.) (conditional)
The following data element did not appear as a data element in the test and has been added as mandatory initial filing data to provide more accuracy:
• Estimated Scheduled Departure Date and Departure Port.
The following data elements did not appear as data elements in the test and have been added as mandatory transportation data elements to more accurately describe the transporting vessel and to describe where the carrier takes possession of the merchandise in order to more accurately describe the transportation chain:
• The vessel carrier identification SCAC Code (the unique standard Carrier Alpha Code assigned for each carrier in the National Motor Freight Traffic Association).
• Place carrier took possession of merchandise or empty container.
The following data element has been added as a conditional data element:
• Mexican Pedimento for cargo exported to Mexico.
The following data element has been added as an optional data element to provide CBP with a second party to notify if the original notify party cannot be reached:
• Secondary Notify Party SCAC.
D. Purpose and Need of the Rule
CBP's primary impetus for this regulatory initiative results from the fact that CBP seeks to mandate the electronic transmission of EEM, in addition to the EEI data required under 15 CFR part 30, clarify the responsibilities of different parties to transmit information, identify enforcement actions available while outlining consequences of default, eliminate any reliance of paper, and limit post-departure filing for cargo transported by vessel to assess cargo security concerns.
CBP proposes to amend the current regulations to require the submission of export manifest data electronically in ACE as an export requirement for cargo transported by vessel, under the authority of section 343(a) of the Trade Act of 2002, as amended (19 U.S.C. 1415). Proposed 19 CFR 4.63 would mandate the electronic transmission of export manifest information in the vessel environment, identify the parties eligible to transmit information, describe the time frames for transmission of information prior to cargo loading or conveyance departure, and prescribe an initial filing that must occur as early as practicable but no later than 24 hours prior to loading of cargo at each port on the outbound conveyance.
Proposed 19 CFR 4.63 would designate information as transportation data, cargo data, electronic export information, or empty container data, and list the data elements to be transmitted while calling them out as mandatory, conditional, or optional. In addition, proposed 19 CFR 4.63 would provide direction regarding Hold and Do-Not-Load messages.
Furthermore, proposed 19 CFR 4.63 would require the electronic transmission of EEM information by outbound vessel carriers, and would permit non-vessel operating common carriers (NVOCCs), freight forwarders, customs brokers (CHB) or anyone with direct knowledge of the export manifest data to submit EEM. These actors may use the services of a shipping agent to transmit the data. The transmission would be required 24 hours prior to loading at each port except for a limited set of data that may be transmitted two hours prior to loading or, in some limited instances, post-departure. Parties other than EEI filers transmitting the information to CBP would be required to obtain a bond to guarantee timely, accurate performance. The rule would also remove obsolete references in Part 4 of the CBP Regulations, references to FTR provisions that no longer exist, and paper processes that are being eliminated.
The proposed regulations standardize data element requirements and electronic data transmission formats and processes and identify actors eligible to transmit information in the time frames required for completion of EEM transmissions. They also narrow the scope of information that can be presented post-departure of the outbound conveyance. The advance data can also allow for earlier mitigation of enforcement actions, such as examinations or information review.
IV. Proposed Regulatory Changes
CBP proposes to amend its regulations to require the submission of the export manifest data electronically in ACE as an export requirement for cargo transported by vessel, pursuant to section 343(a), of the Trade Act of 2002, as amended (19 U.S.C. 1415(a)). This proposed rule would require the transmission of EEM data for all cargo prior to loading onto vessels departing the United States and require outbound vessel carriers or their agents to present data related to the Vessel Entrance or Clearance Statement, CBP Form 1300 no later than two hours prior to departure of the vessel from the United States. By mandating the transmission of EEM, this proposed rule would also eliminate the use of the paper CBP Form 1302A and encourage the transition to the electronic equivalent of the paper Vessel Entrance or Clearance Statement, CBP Form 1300 for vessel clearance, and prohibit submission of the vessel export manifest data post-departure. CBP anticipates that requiring the transmission of EEM data prior to loading of cargo onto a vessel would significantly improve CBP's ability to conduct proper cargo security enforcement and prevent smuggling while minimizing the disruption to the flow of goods during the export process in the sea environment. This proposed rule would use ACE to obtain, conduct risk assessment on, and screen EEM data for cargo being loaded onto vessels preparing to depart the United States and allow for the party which most likely has the direct information on cargo to provide the export manifest data to CBP.
For CBP, the proposed requirement to submit EEM would enhance cargo security because it would allow for improvements in targeting capabilities at the port level through the use of CBP's automatic targeting system (ATS). Port operations would enjoy considerable efficiencies through the elimination of paper manifests. Storage space currently reserved for manifest documents would be freed. Coordination and information exchange between CBP and other Government agencies with export jurisdiction would improve. Carriers, USPPIs, NVOCCs, and other interested parties who transmit information would receive better and more rapid examination decisions from CBP.
CBP is proposing to amend 19 CFR 4.61 the application for clearance of a vessel departing for a foreign port requiring submission of the Vessel Entrance or Clearance Statement either electronically or by filing CBP Form 1300 prior to the conveyance.
CBP proposes to amend 19 CFR 4.62 to allow for electronic manifest corrections. In order to implement this requirement, CBP is primarily proposing to substantially revise 19 CFR 4.63 to add EEM to the required advance vessel and cargo departure information. CBP is also proposing to amend the last sentence of 19 CFR 4.72 to address potential failure to submit the required export certificate from the Department of Agriculture and resulting request for redelivery or penalties for failure to file the certificate.
CBP is also proposing to amend 19 CFR 4.75 to substantially limit post-departure manifest filing. Under this
proposed rule, the Vessel Entrance or Clearance Statement, CBP Form 1300, would continue to be required, but regulatory changes throughout 19 CFR part 4 would authorize use of its electronic equivalent. Additional proposed technical corrections to 19 CFR part 4 would remove references to sections of the FTR that have been removed from 15 CFR part 30 by Census, as well as remove references to “Customs” and replace them with references to “CBP” where applicable. CBP further proposes to remove 19 CFR 4.76, the sea carrier's module, which was the original version of electronic filing which has not been used by the carriers and is no longer necessary. Proposed 19 CFR 4.81 would allow for electronic equivalents of paper forms. Proposed 19 CFR 4.82 would require a carrier to electronically transmit cargo information for merchandise to be transported via a foreign port or ports to subsequent ports in the United States to include information consistent with the initial filing of EEM data. Proposed 19 CFR 4.84 removes references to Census regulation 15 CFR 30.47 which has been removed.
Proposed 19 CFR 4.85 would revise and update the language to reflect the submission of bonds. Proposed 19 CFR 4.88 seeks to revise references to Cargo Declaration Form 1302A and replace it with Electronic Export Manifest or EEM data transmission.
Finally, CBP is proposing to revise the relevant bond conditions in 19 CFR part 113 to incorporate the EEM requirements.
This proposed rule, through the creation of single integrated pre-departure EEM, would limit post-departure filings to EEI submitted in accordance with the provisions of the FTR, agriculture certificates, and shipments between the United States and Puerto Rico. Post-departure filings are permitted for agricultural certificates where the certificate has been obtained but is unavailable at the scheduled time of a vessel's departure. In that circumstance, the vessel may be cleared on the basis of the receipt of a statement, under the shipper's or shipper's agent's letterhead, certifying the number of boxes, the number of pounds, the product name and the U.S. Department of Agriculture export certificate number that covers the shipment of the product. 19 CFR 4.72(a). Post- departure filings are permitted for shipments between the United States and Puerto Rico when a vessel which is not required to clear is transporting merchandise from a port in any State or the District of Columbia to Puerto Rico. The master must file a complete manifest, when required by the FTR (15 CFR part 30), and all required EEI within one business day after arrival, as defined in 19 CFR 4.2(b), with the appropriate CBP officer in Puerto Rico. If the complete manifest and all required EEI are not filed with the appropriate CBP officer within that time frame, an appropriate bond must be filed with the CBP officer for the timely production of the required documents. 19 CFR 4.84(c)(2).
A. Proposed EEM Requirement
Proposed 19 CFR 4.63 would require certain advance vessel and cargo departure information, to include mandating the electronic transmission of export manifest information in the vessel environment, that is, EEM. Proposed 19 CFR 4.63 describes the time frames for transmission of certain advance vessel and cargo departure information prior to cargo loading or conveyance departure and identifies the parties eligible to transmit such information. Proposed 19 CFR 4.63 would prescribe an initial filing of EEM data that must occur as early as practicable but no later than 24 hours prior to loading of cargo at each port on the outbound conveyance, and designate additional EEM data as transportation data, cargo data, or empty container data, listing the mandatory, conditional, or optional data elements to be transmitted. In addition, proposed 19 CFR 4.63 would provide direction regarding Do- Not-Load messages, and Documentation and Enforcement holds. Finally, proposed 19 CFR 4.63, along with proposed 19 CFR 4.75, would substantially limit post-departure data filings.
B. Time Frame for Transmitting Advance Vessel and Cargo Departure Information
Proposed 19 CFR 4.63(b) provides the time frame for transmitting certain advance vessel and cargo departure information, including the vessel clearance statement, EEM, and EEI. Specifically, proposed 19 CFR 4.63(b)(1) sets forth that Vessel Entrance or Clearance Statement, CBP Form 1300, or its electronic equivalent, must be presented to CBP by the outbound vessel carrier no later than two hours prior to departure of the vessel from the United States either directly or via another domestic port or ports.
Proposed 19 CFR 4.63(b)(2) sets forth the time frames for the submission of EEM data. An initial filing of EEM data would be required to be transmitted as early as practicable, but no later than 24 hours prior to loading of cargo on the vessel departing from the United States. EEM data other than the initial filing, that is, export manifest transportation data, export manifest cargo data, and any data related to empty containers, would be required to be transmitted no later than two hours prior to loading of the cargo, or container as applicable, on the vessel in anticipation of departure of the vessel from the United States either directly or via another domestic port or ports. Proposed 4.63(b)(3) references the locations in the CBP regulations and FTR regarding the time frame for the transmission of EEI. Proposed 4.63(b)(4) requires the transmitted advance vessel and cargo departure information to be updated if any of the transmitted data changes or more accurate data becomes available. Proposed 19 CFR 4.63(b)(5) reiterates that only certain EEM or EEI may be filed post-departure as provided in 19 CFR 4.75, as revised and discussed below.
C. Parties Filing Advance Vessel and Cargo Departure Information
Consistent with section 343(a) of the Trade Act (19 U.S.C. 1415(a)), the proposed rule aims to impose the requirement to provide advance vessel conveyance and cargo departure information on the party most likely to have direct knowledge of it. In furtherance of that goal, the proposed rule recognizes that different parties might be best situated to provide certain types of EEM data. Under the proposed rule, the export manifest transportation data and any empty container data would always and only be required of the outbound vessel carrier, while the initial filing and/or the export manifest cargo data could be provided by any eligible party with direct knowledge of that information.
Accordingly, proposed 19 CFR 4.63(c)(1) provides that the outbound vessel carrier would be responsible for submitting the vessel clearance statement or transmitting its electronic equivalent and for transmitting the export manifest transportation data and data for any empty container. Should no other eligible party elect to transmit the initial filing and/or the export manifest cargo data, the outbound vessel carrier would be required to transmit it. The outbound vessel carrier could also choose to transmit the initial filing and/or export manifest cargo data even if another eligible filer transmits the information. Proposed 19 CFR 4.63(c)(2), consistent with the provisions of 19 CFR 192.14 and 15 CFR part 30, reiterates that the transmission of EEI is the responsibility of the USPPI, its authorized filing agent, or the authorized filing agent of the FPPI.
Proposed 19 CFR 4.63(c)(3) provides that any party with direct knowledge of the export information may elect to transmit the initial filing data and/or the export manifest cargo as well, so long as the filer meets the qualifications that require transmission of information through a CBP-approved electronic system. Such filers may include a customs broker, Automated Broker Interface (ABI) filer, non-vessel operating common carrier (NVOCC) as defined by 19 CFR 4.7(b)(3)(ii), or a freight forwarder as defined by 19 CFR part 112. If such a party does not elect to transmit EEM data, proposed 19 CFR 4.63(c)(4) would require the party that arranges for and/or delivers the cargo to the outbound vessel carrier to fully disclose and present to the outbound vessel carrier the cargo information required for the initial filing and the required export manifest cargo data. The outbound vessel carrier must transmit this information to CBP.
Any party transmitting any of the advance vessel conveyance and cargo departure information described in proposed 19 CFR 4.63 would be required by proposed 19 CFR 4.63(c)(5) to possess the appropriate bond containing all the necessary provisions of 19 CFR 113.62 (Basic Importation and Entry Bond), 19 CFR 113.63 (Basic Custodial Bond), or 19 CFR 113.64 (International Carrier Bond). CBP is proposing to amend the regulations covering certain bond conditions, as described in Section IV.H., to incorporate the advance vessel conveyance and cargo departure information requirements.
If any required information is in the possession of a third party who is not an eligible filer set forth in proposed 19 CFR 4.63(c)(1)-(3), proposed 19 CFR 4.63(c)(6) would require the third party to fully disclose and present the required data to either the outbound vessel carrier or other eligible electronic filer, as applicable, which must transmit such data to CBP. Consistent with the provisions of section 343(a)(3)(B) of the Trade Act (19 U.S.C. 1415(a)(3)(B)), proposed 19 CFR 4.63(c)(7) provides that where the party electronically transmitting the required EEM data receives any of this information from another party, CBP would take into account how, under ordinary commercial practices, the transmitting party acquired such information, and whether and how such party would be able to verify the information. Where the transmitting party would not reasonably be able to verify the information, CBP would permit the party to electronically transmit information on the basis of what such party reasonably believes to be true.
D. Initial Data Elements
For the mandatory initial filing required as early as practicable but no later than 24 hours prior to cargo loading on the outbound conveyances, CBP selected seven data elements from the vessel EEM test and added one new data element, Estimated Scheduled Departure Date and Departure Port. Additionally, seven of the initial filing data elements have their descriptions revised in this proposed rule to provide additional clarity on the data required. The carrier would have the ultimate responsibility to load, hold, or not load the merchandise. USPPIs and other parties qualified to transmit data (or their authorized agents) are eligible to submit the initial data filing, if however, no other eligible party makes such an election, then the outbound vessel carrier must transmit the initial data filing under proposed section 4.63(d) as follows:
(1) Bill of Lading number;
(2) The numbers and quantities of the cargo laden aboard the vessel as contained in the carrier's bill of lading, either master or house, as applicable (this means the quantity of the lowest external packaging unit; containers and pallets do not constitute acceptable information; for example, a container holding 10 pallets with 200 cartons should be described as 200 cartons);
(3) Total weight of cargo expressed in pounds or kilograms;
(4) A precise cargo description (or the Harmonized Tariff Schedule (HTS) number(s) to the 6-digit level under which the cargo is classified if that information is received from the shipper); or, for a sealed container, the shipper's declared description (generic descriptions, specifically those such as “FAK” (“freight of all kinds”), “general cargo,” “bulk cargo” and “STC” (“said to contain”) are not acceptable);
(5) The shipper's complete name and address, or identification number, from the bill(s) of lading (for each house bill in a consolidated shipment);
(6) The complete name and address of the consignee, or identification number, from the bill(s) of lading (The consignee is the party to whom the cargo would be delivered in the foreign country. However, in the case of cargo shipped “to order of [a named party],” the “to order” party must be named as the consignee; and if there is any other commercial party listed in the bill of lading for delivery or contact purposes, the carrier must also report this other commercial party's identity and contact information, including address, in the “Notify Party” field.);
(7) The estimated scheduled departure date and departure port; and
(8) AES Internal Transaction Number (ITN) or AES Exemption Statement (per shipment).
Under proposed 19 CFR 4.63(b), CBP would require the remainder of advance data to be transmitted two hours prior to loading the vessel for departure to a foreign port or for a foreign port by way of other domestic ports. That data, along with the initial filing data, comprises the vessel electronic export manifest data, containing all additional data elements to be described as export manifest transportation data, cargo data, electronic export information, and empty container data.
E. Export Manifest Transportation Data
In proposed 19 CFR 4.63(e), the following lists of data elements display CBP's proposed mandatory, conditional, and optional export manifest transportation data elements.
5
5
Certain data elements identified with an asterisk require lower-level data elements to be completed per the Electronic Export Manifest Implementation Guidelines.
1. Mandatory Elements
Proposed 19 CFR 4.63(e)(1) sets forth the mandatory export manifest transportation data elements that would be required in all circumstances, and are as follows:
(1) Mode of transportation data (containerized vessel cargo or non-containerized vessel cargo);
(2) Vessel Country Code (International Organization for Standardization (ISO) country code);
(3) Vessel Name;
(4) Voyage Number;
(5) Port of Departure *;
(6) Port of Unlading;
(7) Date of Departure;
(8) Bill of Lading type (Master, House or Simple);
(9) Vessel Code (International Maritime Organization (IMO) code);
(10) The vessel carrier identification SCAC code (The unique Standard Carrier Alpha Code assigned for each carrier in the National Motor Freight Traffic Association, Inc., Directory of Standard Multi-Modal Carrier and Tariff Agent Codes;
see
§ 4.7a(c)(2)(iii) of this chapter.);
(11) Container information *;
(12) Load Status (Empty or Loaded); and
(13) Place carrier took possession of merchandise or empty container.
2. Conditional Element
As provided in proposed section 4.63(e)(2), the seal number(s) constitutes
conditional transportation data and must be transmitted by the outbound vessel carrier when applicable. The seal numbers must be provided for all seals affixed to containers to the extent that CBP's data system can accept this information (for example, if a container has more than two seals, and only two seal numbers can be accepted through the system per container, electronic presentation of two of these seal numbers for the container would be considered as constituting full compliance with this data element).
3. Optional Elements
Proposed section 4.63(e)(3) lists optional data elements that may be provided by the eligible party transmitting transportation data, and are as follows:
(1) Marks and Numbers;
(2) Number of house Bills of Lading; and/or
(3) Country of Ultimate Destination.
F. Export Manifest Cargo Data
For proposed rule section 4.63(f), the following list of data elements displays CBP's proposed mandatory, conditional, and optional export manifest cargo data elements. The mandatory elements must be transmitted and may be transmitted by any eligible party described above. If the information below has already been transmitted in the initial filing, the filer does not need to transmit it again unless there are updates or changes.
1. Mandatory Elements
Proposed 19 CFR 4.63(f)(1) sets forth the mandatory export manifest cargo data elements that would be required in all circumstances, and are as follows:
(1) Shipper name and address (For empty containers, the shipper may be the carrier from whom the outbound vessel carrier received the empty container to transport.);
(2) Consignee name and address (For empty containers, the consignee may be the carrier to whom the outbound vessel carrier is transporting the empty container.);
(3) Port of Lading;
(4) Bill of Lading numbers;
(5) Bill of Lading type (Master, House, or Simple);
(6) Cargo description;
2. Conditional Elements
Proposed 19 CFR 4.63(f)(2) sets forth the conditional export manifest cargo data elements that would be required when applicable, and are as follows:
(1) In-bond number and type or in-bond house bill number;
(2) Mexican Pedimento (only for cargo exported to Mexico);
(3) Notify Party name and address;
(4) Chemical Abstract Service (CAS) Registry Number;
(5) Additional Party Details;
(6) 6-character Hazmat Code (UN (for United Nations Number) or NA (North American Number) and the corresponding 4-digit identification number assigned to the hazardous material must be provided).
3. Optional Elements
Proposed section 4.63(f)(3) lists optional data elements that may be provided by the eligible party transmitting cargo data, and are as follows:
(1) Secondary Notify Party SCAC; and
(2) Vehicle Identification Number (VIN).
G. Electronic Export Manifest Holds and Do-Not-Load Instructions
Once the outbound vessel carrier or other trade member electronically transmits the export manifest empty container, transportation, and cargo data to CBP via ACE, CBP would validate or if necessary, notify the responsible party of any holds under proposed sections 4.63(g) and (h). The process was designed to issue two different types of holds, a 2H Documentation hold and a 1H Enforcement hold. The party that transmitted the vessel export manifest data to CBP is responsible for responding to any holds issued upon CBP review of that data. A 2H Documentation hold notifies the party that transmitted the export manifest data of missing data elements or invalid information that the party would need to revise or correct.
Electronic data transmission would allow CBP to use its ATS for all exported cargo in the sea environment and the integrated system would conduct the majority of risk assessment, screening and review of the data, limiting the time burden to CBP officers to conduct manual review of such data. The submitting party must then work with CBP to provide the appropriate information, address issues or answer questions to release any hold(s). Until the hold(s) are released, that cargo cannot be loaded onto the vessel. CBP anticipates that when export manifest data is provided within the required deadlines of this proposed rule there should be very few if any instances where CBP issues a hold after cargo is loaded onto the vessel. However, if a hold is issued after loading the cargo or container onto the vessel, the outbound vessel may not depart or transport that cargo or container until the responsible party resolves all holds or that cargo is unloaded from the vessel.
CBP officers would manually review all export manifest data transmissions for which holds are issued for additional or corrected information. A Do-Not-Load or hold may be issued where CBP officers would conduct cargo examinations if necessary prior to loading the cargo or container onto the vessel. CBP anticipates that obtaining this export manifest data through the integrated system would help CBP work with outbound vessel carriers and other parties to address almost all outstanding issues resulting from CBP review before loading the cargo onto a vessel attempting to depart the United States. This would significantly reduce the instances where issues would be addressed after the cargo is loaded onto the vessel and would minimize requests for cargo returns or discharges at second U.S. ports and any other potential delays resulting from a CBP officer's examination of cargo in those scenarios.
CBP retains the enforcement discretion to assess penalties and/or claims for liquidated damages when a violation occurs. Any party that violates the requirements for data transmission as described above in this proposed rule is subject to pay liquidated damages of $5,000 for each violation and up to a maximum of $100,000 per departure.
Although there is the possibility for enforcement action, compliance is CBP's goal and CBP aspires to work alongside outbound vessel carriers and other trade members to ensure that trade members provide the proper data in a timely manner, so that CBP can properly review the data, conduct risk assessment to identify high-risk shipments and enforce U.S. export laws and regulations as to U.S. exports in the sea environment.
H. Technical Amendments to 19 CFR Part 4
CBP proposes to amend 19 CFR 4.61(a) to account for the electronic transmission of Vessel Entrance or Clearance Statement, CBP Form 1300, and CBP's response via ACE. In accordance with such an amendment, CBP further seeks to amend sections 4.61(b) and 4.61(c) to add in the electronic equivalent of Vessel Entrance or Clearance Statement, CBP Form 1300, and electronic receipt of required electronic vessel manifest information.
CBP also proposes 19 CFR 4.63 to be amended for a more inclusive heading of EEM and what is required in advance of export, specifically, “Electronic information for vessel conveyance and cargo required in advance of export; Electronic Export Manifest (EEM); Electronic Export Information (EEI).” CBP's proposed amendment includes
the general requirement in section (a) to address the electronic equivalent of the Vessel Entrance or Clearance Statement, CBP Form 1300, and type of information that is required; from whom it is required; the time in which the information is required; and whether examinations, Do-Not-Load or Hold instructions need to be addressed. No vessel would be cleared directly for a foreign port, or for a foreign port by way of another domestic port (see § 4.87(b)), unless CBP receives from the outbound vessel carrier a Vessel Entrance of Clearance Statement, CBP Form 1300, or its electronic equivalent.
CBP must also receive from the outbound vessel carrier, or other eligible filer as specified in paragraph (c), electronic information concerning the vessel and its cargo, as enumerated in paragraphs (d), (e), and (f) of this section. CBP proposes to remove 19 CFR 4.76 as the procedures and responsibilities are outdated and lack specificity and the Sea Carrier's Module is no longer being used by carriers. The timing, programming system, and message format have all been updated in the proposed new regulations and replaced with the EEM.
I. Proposed Amendments to Availability of Information
CBP proposes to amend 19 CFR 103.31 (Information on vessel manifests and summary statistical reports, disclosure to members of the press). Section 103.31 sets forth limited access to information on outward vessel manifests to accredited members of the press and the public. Currently, “only the name and address of the shipper, general character of the cargo, number of packages and gross weight, name of vessel or carrier, port of exit, port of destination, and country of destination may be copied and published. However, if the Secretary of the Treasury makes an affirmative finding on a shipment-by-shipment basis that disclosure of the above information is likely to pose a threat of personal injury or property damage, that information shall not be disclosed to the public.” 19 CFR 103.31(a)(1). Subject to the confidentiality requirements of 19 U.S.C. 1431 and 19 U.S.C. 1415(a)(3)(G), this proposed amendment will protect the privacy of business proprietary and any other confidential cargo information provided to CBP including any personally identifiable information before access to the manifest is provided to the public. CBP seeks to expand access to additional data elements listed in 19 CFR 103.31(a)(1) consistent with what is provided to CBP from the vessel manifests while maintaining the provisions for confidentiality should confidential treatment be requested. CBP also proposes to amend sections 103.31(d)(1)(iii) and (d)(2)(iii) to update the physical address for certification submissions. CBP also proposes to amend section 103.31(e) to address technology updates recognizing that data sought by the public will be made available via secure file transfer protocol (SFTP) in lieu of CD-ROM and that payments for such requests should be made via wire transfer.
6
6
Executive Order 14247.
J. Proposed Amendments to CBP Bond Conditions
As an enforcement tool, CBP also proposes changes to the relevant bond provisions in 19 CFR 113.62 (basic importation and entry bond), 19 CFR 113.63 (basic custodial bond), and 19 CFR 113.64 (International carrier bond) to provide CBP with authority to impose liquidated damages on parties that do not provide the mandatory EEM data in the manner and in the time frame required. Specifically, CBP proposes 19 CFR 113.62(k)(2) to address electronically provided outbound information. Section 113.62(k) currently addresses electronic transmissions for merchandise or cargo which is inbound via air or truck. CBP also proposes to amend 19 CFR 113.63(g) to add a descriptive heading for electronic entry and/or advance cargo information requirements and include advance outbound cargo information provided to CBP electronically in the manner and in the time period required by law and regulation. CBP further proposes to amend 19 CFR 113.64(d) to include outbound information provided electronically by international carriers in the manner and time period required under law and regulation.
Additionally, CBP proposes to amend 19 CFR 113.64(e) to include all transmitting parties other than the carrier who agree to provide advance electronic information. Finally, CBP proposes to amend 19 CFR 113.64(j) to provide export information including but not limited to certifications in the manner and time provided by law. At present, the text of 19 CFR 113.64(j) is obsolete as it refers to processes that were in existence when Shipper's Export Declarations (SEDs) were in use. However, SEDs were superseded on October 1, 2008, with the implementation of the FTR and by the EEI filed in the AES or through the AESDirect.
See
15 CFR 30.1.
See also
19 CFR 192.14, regarding required EEI.
V. Regulatory Analyses
A. Executive Orders 12866, 13563 and 14192
Executive Orders 12866 (Regulatory Planning and Review) and 13563 (Improving Regulation and Regulatory Review) direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits. Executive Order 13563 emphasizes the importance of quantifying costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. Executive Order 14192 (Unleashing Prosperity Through Deregulation) directs agencies to significantly reduce the private expenditures required to comply with Federal regulations and provides that “any new incremental costs associated with new regulations shall, to the extent permitted by law, be offset by the elimination of existing costs associated with at least 10 prior regulations.”
The Office of Management and Budget (OMB) has not designated this proposed rule a “significant regulatory action” under section 3(f) of Executive Order 12866. Accordingly, OMB has not reviewed this proposed rule.
This proposed rule, if finalized as proposed, is expected to be an Executive Order 14192 deregulatory action.
In summary, CBP expects that from 2015 to 2030 this proposed rule would result in a combined net cost savings to CBP, outbound vessel carriers, and other trade members engaging in the export process of goods departing the United States in the sea environment ranging from $17.2 million (2023 U.S. dollars) using a three percent discount rate to $9.3 million (2023 U.S. dollars) using a seven percent discount rate.
CBP anticipates that this proposed rule would also provide added benefits from enhanced cargo safety and security measures by improving compliance and the enforcement of U.S. export laws and regulations on U.S. exports in the sea environment. The following is the economic analysis of the potential impacts from this proposed rule.
Purpose, Background and Baseline
CBP's mission includes ensuring cargo security and preventing smuggling, while enforcing U.S. trade laws and regulations. CBP needs to obtain timely and sufficient data prior to cargo arriving or departing the United States via any mode of commercial transportation in order to review and conduct risk assessment to identify high-risk shipments and inspect cargo effectively. According to Section 343(a)
of the Trade Act of 2002, as amended Trade Act (19 U.S.C. 1415), CBP is authorized to establish regulations that provide for the mandatory electronic transmission of data by way of a CBP-approved electronic data interchange before cargo arrives or departs the United States in all environments (sea, air, rail, and truck). The requirement to submit manifest data electronically facilitates a more efficient trade process for all parties involved.
Submitting electronic manifest data (specifically pre-arrival or pre-departure) significantly increases CBP's ability to identify high-risk cargo to ensure cargo security and to prevent smuggling. Unlike export manifest data submitted on paper, export manifest data transmitted electronically to CBP allows CBP to use its Automated Targeting System (ATS) to target all export manifest data transmitted. The transmission of electronic manifest data also enhances the coordination and data exchange between Federal agencies overseeing cargo arriving and departing the United States.
Additionally, electronic manifest data improves CBP's review process, allowing CBP to make better examination decisions while also reducing the time required to make such decisions. Trade members would also experience efficiencies through quicker CBP examination decisions and improved communication between CBP and trade members. Resolving CBP requests for additional information to clarify or correct data electronically transmitted would be more efficient in an electronic environment.
Prior to this proposed rule, CBP does not require the electronic transmission of vessel cargo manifest data for all export cargo to CBP prior to departure in the sea environment. Although outbound vessel carriers provide some export manifest data to CBP electronically, the data elements are not always provided prior to departure and CBP believes that the data elements are insufficient for CBP to conduct proper cargo safety and security review for goods departing United States in the sea environment. Current regulations
7
require the U.S. Principal Party in Interest (USPPI), the USPPI's agent, or the authorized filing agent of the Foreign Principal Party (FPPI) to transmit EEI to CBP through the ACE. This EEI should be provided to CBP and verified no later than 24 hours prior to the cargo departing the U.S. port of export. CBP acknowledges that, although this pre-departure data is helpful, the information provided by EEI falls short of the data CBP requires to conduct proper cargo security screening while enforcing U.S. export control laws and regulations.
7
See 19 CFR 192.14.
The required transmission of EEI is also subject to certain exemptions as established by the Census regulations,
8
which generally only require EEI transmission on merchandise valued greater than $2,500 and do not require the transmission of EEI for shipments destined for Canada, unless the shipment contains certain controlled items under the Export Administration Regulations (EAR) or is being transshipped to another destination.
9
8
See 15 CFR part 30.
9
See 15 CFR 30.36.
Therefore, numerous cargo and shipments of merchandise of smaller value departing the United States by sea do not have EEI transmitted for CBP to review. The lack of detailed electronic manifest data for some shipments and the unavailability of electronic cargo data on lower value merchandise shipments impedes CBP's enforcement efforts on sea exports. During the export process, the outbound vessel carrier may not load cargo without first receiving from the USPPI or its authorized agent either the related EEI filing citation, covering all cargo for which the EEI is required, or exemption legends covering cargo for which EEI need not be filed. The outbound vessel carrier must then annotate the carrier's outward manifest, waybill, or other export documentation with the applicable Automated Export System proof of filing, post-departure, downtime, exclusion, or exemption citations, conforming to the approved data formats found in the FTR.
10
10
See 15 CFR part 30.
CBP also obtains additional vessel export cargo data, mostly in paper form, as per existing CBP regulations,
11
which require the submission of certain manifest data to CBP for vessels shipping goods out of the United States to any foreign area, whether directly or by way of other domestic ports. CBP requires outbound vessel carriers to complete and submit to CBP a Vessel Entrance or Clearance Statement on CBP Form 1300 for the outbound vessel. Additionally, the outbound vessel carriers or agent are required to file a Cargo Declaration Outward with Commercial Form (CBP Form 1302A) and submit this paper form to CBP at each port from which clearance is being sought.
12
Along with the CBP Form 1302A, outbound vessel carriers or agent must provide to CBP complete vessel cargo manifest with a compilation of all bills of lading or equivalent commercial documents relating to all cargo within the manifest.
13
CBP allows some qualifying outbound vessel carriers to participate in the Vessel Transportation Module (VTM) which provides the carriers the ability to transmit this export manifest data to CBP electronically via the ACE in lieu of the paper CBP Form 1302A, but very few outbound vessel carriers actively provide this information electronically.
11
See 19 CFR 4.61, 19 CFR 4.63, 19 CFR 4.75 & 19 CFR 4.76.
12
CBP Form 1302A consists of the following data elements; 1) Name of Ship, (2) Port where report is made (not required by United States), (3) Nationality of ship, (4) Name of master, (5) Port of loading, (6) Port of discharge, (7) Bill of Lading number, (8) Marks and Numbers, Container Numbers, Seal Numbers, (9) Number and kind of packages; Description of goods, (10) Gross Weight (lb. or kg.) or Measurements (per HTS), (11) Internal Transaction Number (ITN), or AES Exemption Statement.
13
Bills of lading are documents that essentially act as a receipt and contract for transporting cargo and goods and come from a number of sources depending on which party is privy to the information and the timing of when the information is provided. A house bill contains cargo details and is issued directly by a NVOCC, or freight forwarder. This bill acts as the receipt of goods that are going to be exported and provides export manifest data at its lowest level. Outbound vessel carriers can issue a Master bill which includes all other export manifest information such as transportation details for the vessel which could cover any number of house bills that are included on that vessel. Additionally, in the case where a NVOCC or freight forwarder is not involved in the shipment transaction and the outbound vessel carrier has the specific cargo data available the outbound vessel carrier can issue a simple bill which is similar to a house bill and contains cargo details at the lowest bill level of export manifest data.
Although CBP requires the submission of some export manifest data in the sea environment, prior to this proposed rule most of this data is not provided electronically or prior to the vessel departing the United States. Current regulations allow for the CBP Form 1302A, the vessel export manifest, and supporting documents to be submitted in a complete or incomplete form at the time of departure, depending on the foreign country to which the cargo is being shipped.
14
Conditional on the outbound vessel carrier holding a proper bond, the outbound vessel carrier has four business days post departure to submit the completed vessel export manifest data for shipments to foreign countries, seven business days post arrival for shipments to Puerto Rico, and seven business days post departure for shipments to other U.S. territories.
15
Additionally, if the
outbound vessel carrier is approved to submit the outbound vessel manifest information electronically and participates in the VTM, then the carrier is provided ten calendar days post departure to provide the completed vessel export manifest data to CBP for shipments to foreign countries.
16
The provisions of 15 CFR 30.5(c) authorize USPPIs that provide EEI data for vessel exports to transmit the completed EEI up to five calendar days after the date of export. Given the existing regulations prior to this proposed rule, outbound vessel carriers do not provide export manifest data electronically for most exports before loading cargo or prior to the vessel departing the United States. This lack of detailed pre-departure electronic vessel export manifest data impedes CBP's ability to effectively conduct cargo safety, and security assessments and to prevent smuggling for cargo departing the United States in the sea environment.
14
See 19 CFR 4.75.
15
As per 19 CFR 4.84(c)(2), for shipments from any State or the District of Columbia to Puerto Rico, a complete manifest or proper bond shall be filed with CBP within one business day of arrival in Puerto Rico. As provided in 19 CFR 4.84 (c)(1), for
shipments from any State or the District of Columbia to noncontiguous territories of the United States other than Puerto Rico, or from Puerto Rico to any State or the District of Columbia to any other noncontiguous territory, a complete manifest or proper bond must be filed with CBP before departure.
16
If the destination of the vessel is a foreign port listed in 19 CFR 4.75(c), the carrier must transmit the completed vessel export manifest data before the departure of the vessel.
Prior to this proposed rule, CBP does not typically receive export manifest data until days after a vessel and cargo depart the U.S. port of export. In the event that CBP identifies high-risk cargo or a container that has already been loaded, and the vessel has departed the U.S. port of export, CBP can issue a request that the outbound vessel carrier return the cargo or container. When a request for return is issued by CBP, outbound vessel carriers usually bring the cargo or container back to the United States after the vessel arrives at the foreign port and upon the vessel's return to the United States.
Additionally, if the vessel's itinerary stops at a second U.S. port, CBP can request the outbound vessel carrier to discharge the cargo or container at that second port. In either scenario, returning a container from a foreign port or discharging at a second U.S. port results in significant additional costs to outbound vessel carriers and trade members. In some instances, when outbound vessel carriers provide export manifest data four days or more post-departure, outbound vessel carriers have already delivered the cargo to a foreign port before submitting export manifest data to CBP or before CBP has the time to review the data. Many times, CBP does not even review the export manifest data because even if CBP were to identify a high-risk cargo or container, the exported cargo is untraceable once it has been released at a foreign port and outbound vessel carriers are unable to track down the cargo or container. As a result, in the sea environment, CBP only reviews a small amount of total exported cargo data prior to departure or prior to delivery to a foreign port. Ideally, CBP officers would obtain all export manifest data pre-departure and prior to the cargo loading onto a vessel. This would allow CBP to conduct its review and risk assessment on all export cargo prior to loading that cargo or container onto a vessel or before the vessel departs the United States. If CBP conducts its review prior to loading the cargo and if it identifies a high-risk cargo, CBP can prevent the loading of cargo or containers onto a vessel until CBP can conduct a manual examination. However, because the majority of export manifest data is provided post- departure CBP is usually unable to prevent high-risk cargo from being loaded onto vessels and departing the United States in the sea environment.
CBP has defined the process described above as the baseline. The analysis of this proposed rule attempts to measure any incremental costs, costs savings or benefits compared to the baseline scenario.
The Vessel EEM Test
In order to enhance CBP's efforts to ensure cargo security while also preventing smuggling and to further implement the Trade Act, CBP has been working towards developing a new process to require the transmission of EEM data for all cargo and containers departing the United States in the sea environment. CBP expects that the transmission of pre-departure EEM data would help CBP obtain all the necessary information and data to successfully review and conduct risk assessment and screening efforts before loading cargo onto vessels at U.S. ports of export.
In September 2015, CBP introduced a two-year test program, referred to in the analysis as the Vessel Electronic Export Manifest Test (vessel EEM test), to determine the feasibility of requiring outbound vessel carriers or their agents, and non-vessel operating common carriers (NVOCCs), to provide CBP with pre-departure export manifest data for vessel exports, electronically via ACE, within a specified time before cargo departed the United States in the sea environment.
17
The vessel EEM test created a single automated export processing platform for export manifest, commodity, licensing, export control and export risk assessment. In order for CBP to test the functionality of this new process, CBP initially limited participation in the vessel EEM test to nine trade members. CBP limited participation in the vessel EEM test to parties that had the capability of transmitting export manifest data to CBP in the acceptable format via ACE.
18
During this initial phase of the vessel EEM test, CBP worked with outbound vessel carriers who agreed to participate and submit export manifest data electronically to CBP via ACE. CBP requests that vessel participants continue to submit CBP Form 1302A as they did before participating in the test so that CBP can capture any inconsistencies or issues with the electronic transmission of vessel EEM data to CBP.
19
The responsibility to provide the proper export manifest data resides with the outbound vessel carrier regardless of whether an NVOCC has also submitted manifest data electronically. During the vessel EEM test, CBP still requires outbound vessel carriers to submit a Vessel Entry or Clearance Statement on CBP Form 1300, prior to that vessel's departure from a U.S. port of export.
17
The deadlines and requirements for the transmission of EEI data, as per current regulations found in 19 CFR 192.14, are not affected by the vessel EEM test or this proposed rule.
18
Prospective participants must have the technical capability to submit data electronically to CBP and receive response message sets via Cargo IMP, AIR CAMIR, XML, or Unified XML, and must successfully complete certification testing with their client representative. Unified XML may not be immediately available at the start of the test. However, parties wishing to utilize Unified XML may be accepted, pending its development and implementation.
19
CBP notes that if an outbound vessel carrier was already providing data to CBP via VTM, those outbound vessel carriers do not provide the paper CBP Form 1302A to CBP. Additionally, if an outbound vessel carrier provides data through VTM and then participates in the vessel EEM, CBP did not require the carrier to submit both VTM and vessel EEM data.
During the vessel EEM test, CBP requests that participants transmit completed vessel export cargo manifest data electronically to CBP via ACE, at least 24 hours prior to the loading of that cargo or container onto a vessel. CBP expected that the deadline of 24 hours prior to loading the cargo onto vessels would provide CBP adequate time to conduct a proper review of export manifest data to enhance cargo safety and security measures prior to cargo being loaded and a vessel's departure. Identifying any high-risk cargo and containers prior to the loading of cargo onto vessels improves security measures while ensuring compliance
with U.S. export laws and minimizes the disruption of the trade process at the U.S. port of export. Additionally, the deadlines for export manifest data transmission provide CBP the time to compare the export manifest data with any EEI submitted by USPPI to further enhance security measures on cargo departing the United States in the sea environment.
The vessel EEM test allows participants to provide and revise export manifest data electronically on a flow basis, whenever the information becomes available during the export process, before loading the cargo onto vessels. Transmitting vessel export manifest data electronically via ACE as requested during the vessel EEM test allows for the integrated system to conduct a large portion of the review process using data validations, checks, and risk assessment measures, prior to the loading of cargo onto vessels. Additionally, upon transmission of the pre-departure electronic manifest export data, CBP is able to review information on a flow basis while outbound vessel carriers or NVOCCs provide updated data throughout the export transaction process.
The integrated system implemented during the vessel EEM test improves CBP risk assessment and screening efforts of cargo and shipments. When outbound vessel carriers or NVOCC's transmit export manifest data, the integrated system automates most of the review process and generates holds to notify the outbound vessel carriers or NVOCCs of outstanding issues with the data provided. Depending on the issue identified by the integrated system, a different hold is issued and must be resolved prior to the cargo being loaded onto the vessel. CBP designed the integrated system in the vessel EEM test to issue two different types of holds, a 2H Documentation hold and a 1H Enforcement hold. The party that transmitted the vessel export manifest data to CBP is responsible for responding to any holds issued upon CBP review of that data. A 2H Documentation hold notifies the party that transmitted the export manifest data of missing data elements or invalid information that the party would need to revise or correct. In the instance of a 2H Documentation hold, the responsible party must update the missing or incorrect reference data to release the hold on the cargo or container. Until CBP releases the hold, the cargo may not be loaded onto the vessel.
If the integrated system identifies a potential high-risk cargo or container, then the system automatically generates a 1H Enforcement hold which requires a CBP officer to conduct a manual review of the export manifest data transmitted. The integrated system notifies the party that transmitted the data of the hold and if CBP needs to conduct further examination of the data transmitted or if a manual examination is necessary. These holds can also be issued and addressed even if the cargo has already been loaded onto the vessel. If a 1H Enforcement hold is issued after loading the cargo onto the vessel and CBP requests to manually examine cargo, the outbound vessel carrier must coordinate with the appropriate parties to remove the cargo or container before departure so CBP officers can manually examine the cargo or container. If the vessel has already departed the U.S. port of export, the outbound vessel carrier can return the cargo or container from a foreign port for CBP to examine or discharge the cargo or container if the vessel is stopping at a second U.S. port. If a CBP officer determines during manual review of vessel export manifest data that cargo or a container contains a potential threat to the vessel and its vicinity, a Do Not Load (DNL) instruction is issued which prohibits any party that currently has physical possession of that cargo from moving that cargo or container.
The electronic transmission of export manifest data in advance helps CBP review and issue holds before cargo, or a container is loaded onto the vessel. This facilitates a more efficient export process by reducing the likelihood of identifying cargo after it has been loaded or departed from the United States which results in significant return or discharge costs and potentially results in delays or disruptions to the vessel's export.
Additionally, CBP is able to use ATS to conduct risk assessment while reviewing more export manifest data than what is reviewed under the baseline scenario.
In the initial phase of the test, CBP asked trade members that agreed to participate in the vessel EEM test to provide information electronically to CBP via ACE for a total of 27 mandatory and conditional data elements 24 hours prior to the cargo being loaded onto vessels. CBP determined that the selected data elements would provide CBP the information necessary to conduct proper cargo safety and security enforcement.
Outbound vessel carriers were already providing these data elements to CBP prior to the test but in most cases they were submitted through various paper forms, usually post departure. The data elements selected by CBP during this initial phase of the vessel EEM test consisted of the following (all data elements are mandatory unless otherwise noted):
(1) Mode of transportation (containerized vessel cargo or non-containerized vessel cargo)
(2) Name of ship or vessel
(3) Nationality of ship
(4) Name of master
(5) Port of loading
(6) Port of discharge
(7) Bill of Lading number (Master and House)
(8) Bill of Lading type (Master, House, Simple or Sub)
(9) Number of house Bills of Lading
(10) Marks and Numbers (conditional)
(11) Container Numbers (conditional)
(12) Seal Numbers (conditional)
(13) Number and kind of packages
(14) Description of goods
(15) Gross Weight (lb. or kg.) or Measurements (per HTSUS)
(16) Shipper name and address
(17) Consignee name and address
(18) Notify Party name and address (conditional)
(19) Country of Ultimate Destination
(20) In-bond number (conditional)
(21) Internal Transaction Number (ITN) or AES Exemption Statement (per shipment)
(22) Split Shipment Indicator (Yes/No)
(23) Portion of split shipment (
e.g.,
1 of 10, 4 of 10, 5 of 10—Final. etc.) (conditional)
(24) Hazmat Indicator (Yes/No)
(25) UN Number (conditional)
20
20
If the hazmat indicator is yes, the four-digit United Nations (UN) Number assigned to the hazardous material must be provided.
(26) Chemical Abstract Service (CAS) Registry Number (conditional)
(27) Vehicle Identification Number or Product Identification Number (conditional)
21
21
For shipments of used vehicles, the VIN must be reported, or for used vehicles that do not have a VIN, the Product Identification Number must be reported.
After an initial two-year period, CBP determined that in the initial phase of the vessel EEM test it had been feasible and functional for participating parties to provide export manifest data electronically to CBP. CBP extended the vessel EEM test and expanded the test making it available to all outbound vessel carriers and other associated parties (beyond the initial nine-party limit) meeting eligibility criteria so that CBP could continue evaluating the feasibility and functionality of requesting electronic vessel export manifest data prior to cargo being loaded.
22
After the first two years of the
vessel EEM test, CBP consulted with the Commercial Customs Operations Advisory Committee (COAC) and it was determined that outbound vessel carriers and NVOCCs may not have access to certain export manifest data elements requested by CBP 24 hours prior to loading of cargo onto a vessel. Therefore, CBP modified the filing condition for four of the export manifest data elements for the vessel EEM test from mandatory to optional.
22
Limited to those parties able to electronically transmit manifest data in the identified acceptable format. Prospective ACE Export Manifest for Vessel
Cargo Test participants must have the technical capability to electronically submit data to CBP and receive response message via Ocean CAMIR, ANSI X12, or Unified XML and must successfully complete certification testing with their client representative. Once parties have applied to participate, they must complete a test phase to determine if the data transmission is in the required readable format. Applicants will be notified once they have successfully completed testing and are permitted to participate fully in the test. In selecting participants, CBP will take into consideration the order in which the applications are received.
At the start of the vessel EEM test extension, CBP separated export manifest data elements into three categories—mandatory, conditional, and optional data—and requested that participants provide export manifest data for all cargo at least 24 hours prior to loading of the cargo. CBP also requested that the following data elements be provided electronically via ACE for all cargo preparing for departure from the United States in the sea environment. Unless otherwise noted, data elements are mandatory.
(1) Mode of transportation (containerized vessel cargo or non-containerized vessel cargo)
(2) Name of ship or vessel
(3) Nationality of ship
(4) Name of master (optional)
(5) Port of loading
(6) Port of discharge
(7) Bill of Lading number (Master and House)
(8) Bill of Lading type (Master, House, Simple or Sub)
(9) Number of house Bills of Lading (optional)
(10) Marks and Numbers (conditional)
(11) Container Numbers (conditional)
(12) Seal Numbers (conditional)
(13) Number and kind of packages
(14) Description of goods
(15) Gross Weight (lb. or kg.) or Measurements (per HTSUS)
(16) Shipper name and address
(17) Consignee name and address
(18) Notify Party name and address (conditional)
(19) Country of Ultimate Destination
(20) In-bond number (conditional)
(21) Internal Transaction Number (ITN) or AES Exemption Statement (per shipment)
(22) Split Shipment Indicator (Yes/No) (optional)
(23) Portion of split shipment (
e.g.,
1 of 10, 4 of 10, 5 of 10—Final, etc.) (optional)
(24) Hazmat Indicator (Yes/No)
(25) UN Number (conditional)
23
23
If the hazmat indicator is yes, then UN (for United Nations Number) or NA (North American Number) and the corresponding 4-digit identification number assigned to the hazardous material must be provided.
(26) Chemical Abstract Service (CAS) Registry Number (conditional)
(27) Vehicle Identification Number or Product Identification Number (conditional)
24
24
For shipments of used vehicles, the VIN must be reported, or for used vehicles that do not have a VIN, the Product Identification Number must be reported.
CBP has continuously extended the vessel EEM test to gauge the functionality and feasibility of implementing the requirement of providing EEM data to CBP prior to a vessel's departure. CBP believes that the vessel EEM test has been successful and CBP is proposing to make the electronic transmission of pre-departure export manifest data mandatory for all cargo departing the United States in the sea environment.
The Vessel EEM Regulatory Program
This proposed rule would require the transmission of EEM data for all cargo prior to loading onto vessels departing the United States and require that outbound vessel carriers or their agents present data related to the CBP Form 1300 no later than two hours prior to departure of the vessel from the United States. This proposed rule would also eliminate the use of the paper CBP Form 1302A, encourage the transition to electronic equivalent of the paper CBP Form 1300 for vessel clearance and prohibit the providing of vessel export manifest data post departure. CBP has been testing the electronic transmission process for vessel export manifest data by conducting the vessel EEM test since 2015 and CBP anticipates that requiring the transmission of EEM data prior to loading of cargo onto a vessel would improve CBP's ability to conduct proper cargo security enforcement and prevent smuggling while minimizing the disruption to the flow of goods during the export process in the sea environment. This proposed rule would use ACE to obtain the data, conduct risk assessment, screen EEM data for cargo being loaded onto vessels preparing to depart the United States, and allow for the trade member which most likely has the direct information on cargo to provide the export manifest data to CBP.
In the initial vessel EEM test, CBP requested export manifest information for 27 data elements 24 hours prior to the loading of cargo or container onto the vessel. The experience CBP gained during the test helped revise deadlines for when participants should transmit data and which data elements should be mandatory, conditional, optional, and unnecessary. Of the original data elements put forth in the initial vessel EEM test CBP renamed or reconfigured twelve of these initial data elements in this proposed rule.
25
CBP determined that the following data elements in the vessel EEM test were not necessary and CBP did not include these vessel export manifest data elements in the vessel EEM. CBP lists the data elements below along with their original data element number during the vessel EEM test in parentheses.
25
CBP will also introduce new data elements. `Estimated Scheduled Departure Time and Departure Port' will be added as a mandatory data element in the initial filing. The data element `Departure Date' is added as a mandatory data element for transportation data. `Vessel carrier SCAC code' and `Place Carrier Took Possession of Merchandise or Empty Container' were two more data elements CBP introduced as mandatory in transportation data. CBP also introduced the `Mexican Pedimento' data element for cargo exports to Mexico as a conditional cargo data. Additionally, CBP added `Additional Party Details' as a cargo data element. CBP also introduced `Secondary Notify Party SCAC' data element as an optional cargo data element. CBP discusses the difference between initial filing, transportation and cargo data in more detail later in this section of the analysis.
• Name of master (optional) (4)
• Split Shipment Indicator (Yes/No) (22)
• Portion of split shipment (
i.e.,
1 of 4, 4 of 10, 5 of 10—Final, etc.) (23)
• Product Identification Number (noting that Vehicle Identification Number has been included) (27)
Based on the experience CBP obtained from the vessel EEM test, in this proposed rule CBP is adjusting the data elements and deadlines for transmission. For this proposed rule, CBP grouped the vessel EEM data elements based on the deadlines for submission of data and which trade member likely has the correct information to provide to the export manifest data element. As discussed earlier, CBP expanded the vessel EEM test to any eligible party in 2017, and in this proposed rule CBP anticipates that any party with direct knowledge of the export data element can participate in the program and provide export manifest data to CBP via ACE prior to loading cargo onto the vessel. This proposed rule would allow outbound vessel carriers, or their agents, USPPIs, FPPIs, customs brokers, ABI filers, NVOCCs, freight forwarders, or any other party with direct knowledge of the export manifest data element to provide
specific pre-departure export manifest data to CBP using CBP's ACE as a data transmission tool. This proposed rule also mandates that the party transmitting any specific export manifest data must hold or obtain a qualifying bond.
26
Additionally, any party that transmits data elements electronically to CBP for vessel EEM is responsible for addressing and responding to any questions, issues, instructions or holds that arise during CBP review of that specific data.
26
CBP acknowledges that any of the following bonds would be appropriate, CBP Basic Importation and Entry Bond containing the provisions found in section 113.62 of this chapter, a Basic Custodial Bond containing the provisions found in 113.63 of this chapter, or an International Carrier Bond containing the provisions found in section 113.64 of this chapter.
To improve CBP's risk assessment and screening efforts using pre-departure export manifest data, this proposed rule would require an initial filing of eight mandatory data elements, which must be transmitted to CBP by any eligible party as early as practicable but no later than 24 hours prior to loading cargo on the outbound conveyances attempting to depart from the U.S. port of export. Unlike in the vessel EEM test where CBP requested all 27 data elements to be transmitted 24 hours prior to the cargo being loaded, in this proposed rule CBP identified just eight data elements critical to CBP in conducting preliminary risk assessment and screening efforts. These would be transmitted by any eligible party as early as practicable but no later than 24 hours prior to the cargo being loaded on the outbound conveyance departing the United States. CBP refers to these mandatory eight data elements as the initial filing. All other vessel export manifest data elements, including data on empty containers, should be transmitted to CBP no later than two hours prior to loading of cargo onto a vessel preparing to depart the United States.
CBP acknowledges that for most outbound vessel carriers the position of these time containing the provisions found in 113.63 of this chapter, or an International Carrier Bond containing the provisions found in section 113.64 of this chapter. Requirements for transmitting export manifest data are a significant change compared to the baseline where for the majority of export cargo and containers outbound vessel carriers were providing the completed export manifest data four or more days post departure.
These deadlines could impose additional time burdens and costs to outbound vessel carriers and other trade members to provide the appropriate export information earlier in the export process compared to the baseline. CBP notes that although most export manifest data is submitted post departure, CBP does require complete export manifest data prior to departure depending on the country to which the cargo is being shipped. Additionally, a number of countries have their own import manifest data requirements enforcing import manifest data to be submitted 24 hours prior to a vessel departing a U.S. port of export to a foreign port. These import manifest data elements are similar to the export manifest data elements. Therefore, most vessel departures exporting goods from the United States require either import manifest data or complete export manifest data prior to departure.
Additionally, outbound vessel carriers and other parties transmitting export manifest data can provide data and information on a flow basis whenever it becomes available to help facilitate CBP's review of the export data and the overall export process. CBP anticipates that these deadlines would provide CBP adequate time to perform proper risk assessment and identify cargo and containers for examination prior to loading of cargo and containers onto vessels. CBP expects this would enhance security measures while minimizing the disruption to the flow of goods during the export process and reduce the number of requests for return and discharges of high-risk cargo and containers. Upon transmission of the initial filing, CBP would validate or notify the responsible trade member of any holds or DNLs. The trade member that transmits the data would be responsible for providing answers and updates on the data or information to CBP but the ultimate responsibility to load, hold, or not load merchandise falls on the outbound vessel carrier.
For the mandatory initial filing required as early as practicable but no later than 24 hours prior to cargo loading onto vessels, CBP selected seven data elements from the vessel EEM test and added one new data element, Estimated Scheduled Departure Date and Departure Port. Additionally, six of the initial filing data elements had their descriptions revised in this proposed rule to provide additional clarity on the data required. The initial filing data elements required in this proposed rule include the following:
(1) Bill of Lading number;
(2) The numbers and quantities of the cargo laden aboard the vessel as contained in the carrier's bill of lading, either master or house, as applicable (this means the quantity of the lowest external packaging unit; containers and pallets do not constitute acceptable information; for example, a container holding 10 pallets with 200 cartons should be described as 200 cartons);
(3) Total Weight of cargo expressed in pounds or kilograms;
(4) A precise cargo description (or the Harmonized Tariff Schedule (HTSUS) number(s) to the 6-digit level under which the cargo is classified if that information is received from the shipper) and weight of the cargo; or, for a sealed container, the shipper's declared description and weight of the cargo (generic descriptions, specifically those such as “FAK” [“freight of all kinds”], “general cargo,” “bulk cargo” and “STC” [“said to contain”] are not acceptable);
(5) The shipper's complete name and address, or identification number, from the bill(s) of lading (for each house bill in a consolidated shipment);
(6) The complete name and address of the consignee, or identification number, from the bill(s) of lading (The consignee is the party to whom the cargo would be delivered in the foreign country. However, in the case of cargo shipped “to order of [a named party],” the “to order” party must be named as the consignee; and if there is any other commercial party listed in the bill of lading for delivery or contact purposes, the carrier must also report this other commercial party's identity and contact information including address in the “Notify Party” field.);
(7) The estimated scheduled departure date and departure port; and
(8) AES Exemption Statement (per shipment).
In this proposed rule, CBP groups the remaining vessel EEM data elements based on CBP's understanding of which trade member may have the most direct knowledge of the export manifest data element. CBP categorized these remaining data elements as export manifest transportation data, export manifest cargo data, and empty container data.
27
According to this proposed rule, the outbound vessel carrier or its agent would be responsible for transmitting to CBP the data and information on any empty container data and export manifest transportation data. Outbound vessel carriers or agents must transmit these data elements electronically to CBP no later than two hours prior to the loading of the cargo or container onto the vessel. The outbound vessel carrier or its agent would also be responsible for providing the vessel clearance statement CBP Form 1300 or its electronic equivalent to CBP two hours prior to a vessel's departure from the United States. The
following list of data elements displays CBP's proposed mandatory and conditional export manifest transportation data elements:
27
CBP would continue to require; CBP Form 1300 be submitted before a vessel can be cleared for departure from the United States, these data elements for the CBP Form 1300 are not affected by this proposed rule, but this proposed rule would authorize the use of CBP Form 1300 electronic equivalent.
Mandatory Elements
(1) Mode of transportation data (containerized vessel cargo or non-containerized vessel cargo)
(2) Vessel Country Code International Organization for Standardization (ISO)
(3) Vessel Name
(4) Voyage Number
(5) Port of Departure
(6) Port of Unlading
(7) Date of Departure
(8) Bill of Lading (Master, House or Simple)
(9) Vessel Code (International Maritime Organization (IMO))
(10) The vessel carrier identification SCAC code
28
28
The unique Standard Carrier Alpha Code assigned for each carrier in the National Motor Freight Traffic Association, Inc., Directory of Standard Multi-Modal Carrier and Tariff Agent Codes; see § 4.7a(c)(2)(iii) of this chapter.
(11) Container information
(12) Load Status (Empty or Loaded)
(13) Place carrier took possession of merchandise or empty container
Conditional Elements
(1) Seal number(s)
29
29
The seal numbers must be provided for all seals affixed to containers to the extent that CBP's data system can accept this information (for example, if a container has more than two seals, and only two seal numbers can be accepted through the system per container, electronic presentation of two of these seal numbers for the container would be considered as constituting full compliance with this data element).
Optional Elements
(1) Marks and Numbers
(2) Number of house Bills of Lading
(3) Country of Ultimate Destination
CBP provides additional flexibility in this proposed rule by allowing any eligible party with the most direct information to provide export manifest cargo data electronically to CBP two hours prior to loading that cargo or container onto a vessel preparing to depart the United States. Any other trade member (USPPIs, FPPIs, customs
brokers, ABI filer, NVOCCs, freight forwarders or any other party with direct knowledge of the export data element) transmitting export manifest cargo data must be in possession of a bond to provide the export manifest cargo data and information to CBP. However, the outbound vessel carrier or its agent may also elect to transmit the mandatory manifest cargo data and in the case that no other party elects to provide the required manifest cargo data, it is the outbound vessel carrier's responsibility to provide this manifest cargo data to CBP. The following data elements comprise the CBP requested export manifest cargo data for vessel EEM in this proposed rule. CBP notes that if the data was already provided during the initial filing it does not need to be transmitted again unless there were updates or changes made to the data.
Mandatory Elements
(1) Shipper name and address
30
30
For empty containers, the shipper may be the carrier from whom the outbound vessel carrier received the empty container to transport.
(2) Consignee name and address
31
31
For empty containers, the consignee may be the carrier to whom the outbound vessel carrier is transporting the empty container.
(3) Port of lading
(4) Bill of Lading numbers
(5) Bill of Lading type (Master, House, or Simple)
(6) Cargo description
(7) Hazardous Materials
Conditional Elements
(1) In-bond number and type or in-bond house bill number
(2) Mexican Pedimento (only for cargo exported to Mexico)
(3) Notify Party name and address
(4) Chemical Abstract Service (CAS) Registry Number
(5) Additional Party Details
(6) 6-character Hazmat Code
32
32
Including the UN (for United Nations Number) or NA (North American Number) and the corresponding 4-digit identification number assigned to the hazardous material must be provided.
Optional Elements
(1) Secondary Notify Party SCAC
(2) Vehicle Identification Number (VIN)
CBP provides a mapping and comparison of the vessel EEM test data elements and the data elements for the vessel EEM in Table 2 below. There were four data elements that were not carried forward from the test:
(1) Name of master
(2) Number and kind of packages
(3) Split shipment indicator (optional)
(4) Portion of split shipment
There will also be six new data elements introduced in the vessel EEM that do not map back to the test data elements:
(1) Voyage Number
(2) Mexican Pedimento
(3) Additional Party Details (conditional)
(4) Secondary Notify Party SCAC (optional)
(5) Place carrier took possession of merchandise or empty container
(6) Date of Departure
BILLING CODE 9111-14-P
EP10FE26.007
BILLING CODE 9111-14-C
Once the outbound vessel carrier or other trade member electronically transmits the export manifest empty container, transportation, and cargo data to CBP via ACE, CBP would validate, or if necessary, notify the responsible party of any holds.
Transmitting this data electronically would allow CBP to use its ATS for all exported cargo in the sea environment and the integrated system would conduct the majority of risk assessment, screening, and review of the data limiting the time burden to CBP officers
to conduct manual review of such data. The responsible party must then work with CBP to provide the appropriate information, address issues, or answer questions to release any holds. Until the hold(s) are released, that cargo cannot be loaded onto the vessel. CBP anticipates that when export manifest data is provided within the required deadlines of this proposed rule there should be very few if any instances where CBP issues a hold after cargo is loaded onto the vessel. However, if a hold is issued after loading the cargo or container onto the vessel, the outbound vessel may not depart or transport that cargo or container until the responsible party resolves all holds or that cargo is unloaded from the vessel.
CBP officers would manually review all export manifest data transmissions for which 1H Enforcement holds are issued and CBP officers would conduct cargo examinations where necessary prior to loading the cargo or container onto the vessel. CBP anticipates that obtaining this export manifest data through the integrated system would help CBP work with outbound vessel carriers and other parties to address almost all outstanding issues resulting from CBP review before loading the cargo onto a vessel attempting to depart the United States. This would significantly reduce the instances where issues would be addressed after the cargo is loaded onto the vessel and would minimize requests for cargo returns or discharges at second U.S. ports and any other potential delays resulting from a CBP officer's examination of cargo in those scenarios.
As an enforcement tool, this proposed rule provides CBP with authority to impose penalties and/or claims for liquidated damages on parties that do not provide the mandatory EEM data in the manner and in the time frame required. CBP retains the enforcement discretion to assess penalties and/or claims for liquidated damages when a violation occurs. Any party that violates the requirements for data transmission as described above in this proposed rule is subject to pay liquidated damages of $5,000 for each violation and up to a maximum of $100,000 per departure. Although there is the possibility for monetary enforcement action, compliance is CBP's goal and CBP aspires to work alongside outbound vessel carriers and other trade members to ensure that trade members provide the proper data in a timely manner, so that CBP can properly review the data, conduct risk assessment to identify high-risk shipments, and enforce U.S. export laws and regulations on U.S. exports in the sea environment.
33
33
Information provided by CBP's Cargo and Conveyance Security, Office of Field Operations, subject matter expert on June 21, 2022. For EEM programs, while there is a possibility of penalties when a violation occurs, compliance is the goal and CBP will use flexible enforcement to encourage compliance while giving sufficient time for industry partners to acclimate to the new process.
Time Periods of Analysis
This analysis primarily focuses on the potential outcomes of this proposed rule after it would be in effect, but it also includes a discussion of the impacts during the vessel EEM test program that were in place before the proposed rule. The costs, cost savings, and benefits of this vessel EEM test are sunk (already incurred and cannot be recovered) for the purposes of deciding whether to proceed with the proposed rule, but they are important for understanding the full costs and benefits of implementing CBP's vessel EEM program as a whole. To give the reader a full view of the effects of implementation of CBP's vessel EEM program through the entire span of time, CBP analyzes the effects of implementing vessel EEM collection over two time periods, comparing each time period to the baseline scenario that existed prior to the vessel EEM test. First, CBP analyzes the effects from the vessel EEM test used for the collection of pre-departure manifest data on sea exports during the pilot period, fiscal years 2015-2025.
34
Second, CBP analyzes the effects of the proposed rule mandating the transmission of EEM data in the sea environment during the five-year regulatory period, beginning in fiscal year 2026 and ending in fiscal year 2030. For the regulatory period, CBP estimates, to the extent data is available, the total projected costs, cost savings and benefits to the Federal government, outbound vessel carriers and other trade members as a result of requiring the transmission of vessel EEM data for vessels departing the United States, compared to the baseline scenario. In the analysis for this proposed rule, CBP defines the pilot period as fiscal years 2015-2025 and the regulatory period as fiscal years 2026-2030. Additionally, all references to years are for fiscal years unless otherwise noted.
34
CBP anticipates that the test would still be active until fiscal year 2026 when the proposed rule would be finalized; however, at the time this analysis was written CBP only had actual data up through fiscal year 2023. Therefore, CBP provides estimates, not actual data, for the fiscal years 2024 and 2025 in this analysis.
Population Affected by the Proposed Rule
CBP expects that this proposed rule would affect a number of different parties. Because the vessel EEM test was limited in scope, CBP anticipates that effects were largely experienced by a few outbound vessel carriers and CBP during the pilot period. Additionally, CBP notes that although the initial vessel EEM test was made available to no more than a total of nine outbound vessel carriers and other trade members and during the test extension CBP removed the participant limitations as the test was extended to all eligible parties, in 2022 only two outbound vessel carriers actively participated in the vessel EEM test. However, by the end of 2023 there were 15 outbound vessel carriers actively or intermittently participating in the vessel EEM test. As the vessel EEM program expands during the regulatory period, CBP expects the expansion to have broader effects to all outbound vessel carriers, some other trade members (such as USPPIs, FPPIs, customs brokers, ABI filer, NVOCCs, freight forwarders or any other party with direct knowledge of the export data elements), CBP, and other government agencies that oversee U.S. exports in the sea environment. CBP expects that this proposed rule would affect all outbound vessel carrier companies currently participating in exporting cargo from the United States in the sea environment.
35
This proposed rule could result in effects to a large number of other trade members specifically in the case they elect to provide electronic manifest cargo data directly to CBP via ACE. CBP estimates that approximately 455 other trade members would elect to provide vessel EEM data directly to CBP as a result of this proposed rule.
36
CBP expects that this proposed rule would also improve the facilitation of the export process at all U.S. seaports currently conducting the exportation of goods from the United States and would improve communication between CBP and trade members and CBP and other government agencies that oversee the enforcement of U.S. export laws and regulations.
35
Information provided by CBP's Cargo and Conveyance Security, Office of Field Operations, subject matter expert on June 13, 2023.
36
Information provided by CBP's Cargo and Conveyance Security, Office of Field Operations, subject matter expert on June 13, 2023. CBP expects there will be approximately 500 trade members that will directly participate in vessel EEM. CBP used internal data to identify approximately 45 outbound vessel carrier companies that will participate which suggests around 455 other trade members would directly participate in vessel EEM.
Vessel EEM Test Data and Vessel Export Projections
CBP was able to identify the actual number of electronic export manifest data transmissions by participating outbound vessel carriers during the test from 2016-2023.
37
During that time frame, vessel EEM test participants provided a total of 2,768,815 export manifest data transmissions representing approximately 6.7 percent of all estimated export manifest data submissions.
38
Because CBP's pilot period includes future years, CBP does not have actual test data available for 2024 and 2025. To address this issue CBP provides estimates for the final two years of the pilot period. To estimate the number of vessel EEM test data transmissions that would occur in 2024 and 2025 CBP assumes that the number of transmissions would stay relatively the same as in 2023.
39
Therefore, CBP expects that in both 2024 and 2025 there would be approximately 749,113 test data transmissions.
37
Pilot period vessel EEM data transmission information provided by CBP's Cargo and Conveyance Security, Office of Field Operations subject matter expert on December 13, 2022 and December 20, 2023. Data obtained from CBP's ACE.
38
CBP estimated the number of total export manifest data submissions from 2016-2023 by assuming one CBP Form 1302A represents one export manifest data transmission. Additionally, CBP assumes that the total number of export manifest data submissions include the estimated number of outbound non-empty containers (CBP assumes one CBP Form 1302A per non-empty container), other vessel departures (CBP assumes one CBP Form 1302A per other vessel departure).
39
In 2023 CBP received 749,113 vessel EEM test data transmissions, data obtained by CBP's Cargo and Conveyance Security, Office of Field Operations subject matter expert on December 20, 2023. Data obtained from CBP's ACE.
In 2022, there were only two active outbound vessel carriers participating in the vessel EEM test. CBP notes that prior to the vessel EEM test both participants provided export manifest data to CBP electronically using VTM. However, by the end of 2023 the number of vessel EEM test participants increased to 15 outbound vessel carriers and none of these new participants was providing data using VTM prior to this test. Because CBP expects there would be different effects on vessel EEM test participants based on how they provided data to CBP during the baseline scenario (paper CBP Form 1302A or VTM), CBP includes data during the pilot period on VTM data transmissions and estimates how many vessel EEM data transmissions were conducted by prior VTM participants. CBP identified the actual number of VTM data transmissions submitted to CBP from 2016-2023 was around 3,806,162.
40
To estimate the number of VTM data transmissions that would occur in 2024 and 2025, CBP assumes that the number of transmissions would stay relatively the same as in 2023. Therefore, CBP expects that in both 2024 and 2025 there would be approximately 188,811 data transmissions.
41
40
Data provided by CBP's Cargo and Conveyance Security, Office of Field Operations subject matter expert on December 13, 2022 and December 20, 2023. Data obtained from CBP's ACE.
41
CBP notes that as of 2023 there was only one outbound vessel carrier actively participating in providing export manifest data to CBP via VTM; CBP assumes that this carrier will continue to participate in VTM in 2024 and 2025 and CBP uses the number of transmissions in 2023 (118,811) as an estimate for future years in the pilot period.
Because there were only two outbound vessel carriers participating in the vessel EEM test until 2023, and both of the participants were prior VTM participants, CBP assumes that all vessel EEM test data transmissions prior to 2023 were made by VTM participants. For the year 2023, CBP obtained data showing that the two initial vessel EEM test participants conducted around 527,938 vessel EEM test data transmissions.
42
CBP assumes these two participants will submit the same number of vessel EEM test data transmissions in 2024 and 2025 and all other vessel EEM test transmissions will be submitted by non-VTM participants. CBP estimates that during the entire pilot period there will be approximately 4.2 million vessel EEM test data transmissions, where 3.6 million test data transmissions will be made by VTM participants and 0.6 million will be submitted by non-VTM participants. Table 3 below displays actual number of vessel EEM test, VTM data transmissions, the expected number of vessel EEM test transmissions made by VTM participants, and the expected number of transmissions made by non-VTM participants from 2016-2023, and the estimated numbers for 2024 and 2025.
42
Data provided by CBP's Cargo and Conveyance Security, Office of Field Operations subject matter expert on December 20, 2023. Data obtained from CBP's ACE.
EP10FE26.008
Outside of the limited vessel EEM test and VTM data provided by participants, all other export manifest data (excluding data for EEI requirements) submitted by outbound vessel carriers are on paper forms. CBP assumes that the number of future EEM data transmissions would be equal to the number of CBP Form 1302As that would be submitted absent this proposed rule. Unfortunately, CBP does not track the number of CBP Form 1302As that are submitted annually. Therefore, it was not feasible for CBP to provide an exact count for how many CBP Form 1302As (and in turn electronic export manifest data transmissions) would be submitted once this rule is implemented. To estimate the number of export manifest data transmissions that would be submitted during the regulatory period, CBP used data from the United States Army Corps of Engineers Waterborne Commerce Statistics Center (WCSC). The WCSC publishes data on total foreign vessel departures by vessel type and total outbound non-empty container traffic exported out of the United States.
43
WCSC provides vessel departure numbers for different categories of vessels that actively engage in exporting goods and cargo out of the United States, including self-propelled dry bulk cargo vessels (including container vessels), tankers, dry cargo barges, liquid barges, towboats and cranes (other vessels).
43
United States Army Corps of Engineers Waterborne Commerce Statistics Center Waterborne Commerce Reports, `U.S. Waterborne Container Traffic by Port/Waterway in 2022
https://usace.contentdm.oclc.org/digital/collection/p16021coll2/id/1445
and `Waterborne Cargo and Trips Data Files 2022'
https://usace.contentdm.oclc.org/utils/getfile/collection/p16021coll2/id/14579.
Accessed July 2024. WCSC provides export non-empty container volume based in twenty-foot equivalent units (TEUs). TEUs is a unit of measurement used to determine cargo capacity for container ships and terminals and is the standard form of measurement for containers carried by container ships.
Unfortunately, the most recent data available from WCSC on outbound container traffic and vessel departures is for 2022.
44
Therefore, CBP provides estimates for the number of vessel departures for 2023, 2024 and 2025. CBP does not expect every vessel departure would require a paper CBP Form 1302A in the baseline scenario. CBP anticipates the only vessel categories provided by WCSC that would require the submission of a CBP Form 1302A (or EEM data transmission in the regulatory period) would be the self- propelled dry cargo vessels, tankers, dry cargo barges and liquid barges.
45 46
44
CBP used WCSC data from 2016-2022. CBP did not obtain WCSC data for 2015 because vessel EEM test participation did not start until 2016 despite the pilot period starting in 2015 because of CBP IT development costs.
45
CBP assumes that vessel departures for categories of towboats and cranes (other vessels) are typically not carrying cargo and would not require the submission of a CBP Form 1302A and therefore are excluded from the estimate for the number of future vessel EEM data transmissions.
46
For the remainer of this analysis CBP groups the following vessel categories (tankers, dry cargo barges and liquid barges) and refers to them as `other vessels'.
According to WCSC, from 2016-2022 there were a total of 400,954 self-propelled dry cargo vessel departures to a foreign country or on average 57,279 annually. To estimate the number of self-propelled dry cargo vessel departures in 2023, 2024 and 2025, CBP multiplied the CAGR for these types of vessels from 2016-2020 (1.31%) by the previous year's total estimated departures.
47
According to CBP's estimates from 2016-2025 there will be approximately 621,350 self-propelled dry cargo vessel departures or on average 62,135 departures annually. According to WCSC data, from 2016-2022 there were a total of 139,882 other vessel departures or on average 19,983 annually. CBP used the CAGR for other vessel departures from 2016-2022 (5.66%) to project the number of other vessel departures in 2023, 2024, and 2025.
48
CBP estimates that from 2016-2025 there will be around 224,318 other vessel departures or on average 22,432 departures annually.
47
CBP excluded departures in 2021 and 2022 from the CAGR calculation because there were significant increases resulting from the COVID-19 pandemic and CBP expects the change in departures for these vessels to return to the slower growth seen before 2021.
48
CBP excluded the departures in 2021 and 2022 from the CAGR calculation because there was a significant increase resulting from the COVID-19 pandemic in 2021 which CBP anticipates may have also skewed the 2022 departure numbers. CBP expects the change in departures for other vessels to return to the slower growth seen before 2021.
During the regulatory period CBP assumes that vessel departures should continue to increase at relatively the same rate in future years as estimated during the final three years of the pilot period. Therefore, to estimate the number of self-propelled dry cargo vessel departures and other vessel departures in the regulatory period CBP used the same CAGR for each vessel category (1.31% for self-propelled dry cargo, and 5.66% for other vessels) that was used for pilot period years 2023-2025. According to CBP's estimates during the regulatory period there would be around 386,930 self-propelled dry cargo vessel departures or on average 77,386 annually. Additionally, CBP expects there would be around 175,741 other vessel departures or on average 35,148 annually. Table 4 below displays WCSC data for total vessel departures (less towboats and cranes), self-propelled dry cargo vessels and other vessels from 2016-2022 and CBP's estimates for these types of vessel departures for the final three years of the pilot period and during the five-year regulatory period.
EP10FE26.009
For this analysis CBP assumes that other vessels departures would only require a single CBP Form 1302A and therefore CBP assumes that every single other vessel departure would require a single export manifest data transmission in the regulatory period.
49 50
However, CBP does not know how many CBP Form 1302As and in turn export manifest data transmissions would be submitted for each self-propelled dry cargo vessel departure. Some of the vessels within this category are container vessels which can carry a very large number of containers. Additionally, each container could potentially require the submission of one or many CBP Form 1302As. To estimate how many CBP Form 1302As are submitted by these vessels, CBP obtained data on outbound non-empty container traffic from WCSC from 2016-2022.
51
CBP assumes that for every outbound non-empty container, outbound vessel carriers would provide one export data submission and every export manifest transmission received during the vessel EEM test represents one non-empty container.
52
CBP used previous year data from WCSC to estimate the number of non-empty containers departing the United States in future years. CBP estimates that the CAGR of non-empty containers between 2016-2019 was approximately 1.56%.
53
CBP multiplied this CAGR by the number of non-empty containers that departed the United States in 2022 to estimate the number of non-empty containers that would depart in 2023. CBP used the CAGR to estimate the number of non-empty containers for each additional future year using the CAGR and the estimate in the prior year for the number of non-empty containers. According to CBP's estimates during the regulatory period there would be around 60 million non-empty containers departing the United States in the sea environment or on average 12 million annually. Table 5 displays the actual number of non-empty containers from
2016-2022 obtained from WCSC and CBP's estimates for the number of non-empty containers for years 2023-2030.
49
Information provided by CBP's Cargo and Conveyance Security, Office of Field Operations, subject matter expert on May 17, 2023.
50
Other vessels can carry a variety of goods and cargo, however when compared to container vessels the quantity of different products is typically much smaller, considering each container could have hundreds of different types of goods and cargo. CBP expects that the number of different products on other vessels is fewer than container vessels and, in most cases, it is likely that all cargo on other vessels could be entered onto a single CBP Form 1302A. To account for the difference CBP makes the assumption that each container represents one CBP Form 1302A and every other vessel departure represents one CBP Form 1302A.
51
CBP used WCSC data from 2016-2022. CBP did not obtain WCSC data for 2015 because vessel EEM test participation did not start until 2016 despite the pilot period starting in 2015 because of CBP IT development costs.
52
Information provided by CBP's Cargo and Conveyance Security, Office of Field Operations, subject matter expert on May 17, 2023. CBP assumes on average there would be one CBP Form 1302A per non- empty container. CBP acknowledges that one non-empty container could require multiple CBP Form 1302As depending on the content inside the container and it is possible for one CBP Form 1302A to represent more than one container. Additionally, CBP Form 1302A must be submitted at every U.S. port of export that the vessel departs. For the matter of simplicity CBP assumes that one export manifest data transmission represents one non-empty cargo container and likewise one CBP Form 1302A.
53
CBP excluded data from years 2020-2022 in the CAGR calculation for the number of future non-empty containers because CBP believes including these years would introduce a downward bias on future year estimates. CBP expects that the number of non-empty containers departing the United States should continue to increase gradually in future years and therefore believes that the CAGR from 2016-2019 is a better estimate.
EP10FE26.010
To estimate the number of vessel EEM data transmissions that would be submitted during the regulatory period, CBP added the estimated number of non-empty containers departing the United States each year (Table 4) and the estimated number of other vessel departures (Table 3). According to CBP's estimates, during the regulatory period outbound vessel carriers and other trade members would transmit around 60 million vessel EEM data transmissions or on average 12 million annually. During the baseline scenario CBP already had participants in the VTM and those participants did not submit paper CBP Form 1302As. CBP estimates that the number of paper CBP Form 1302As submitted during the pilot period by subtracting the number of VTM data transmissions and vessel EEM test data transmissions submitted by VTM participants (see Table 3) from the number of non-empty containers and other vessel departures during each year. During the pilot period CBP expects that outbound vessel carriers will submit around 108 million paper CBP Form 1302As, or on average 10.8 million annually.
CBP assumes that during the regulatory period VTM data transmissions and vessel EEM data transmissions by VTM participants would remain relatively constant to the numbers provided in 2023 (see Table 3). Because this proposed rule would require that all outbound vessel carriers provide EEM data, there would not be any VTM data transmissions during the regulatory period. CBP includes the annual VTM data transmissions from 2023-2025 (188,881) in the number of vessel EEM data transmissions by VTM participants. CBP expects that absent this proposed rule outbound vessel carriers would provide 3.5 million VTM transmissions to CBP during the regulatory period or on average 716,749 annually. Because VTM participants do not submit paper CBP Form 1302As, CBP adjusted the total number of vessel EEM data transmissions in the regulatory period to estimate the number of paper CBP 1302As that would be eliminated as a result of this proposed rule. CBP subtracted the estimated number of VTM transmissions by the estimated number of total vessel EEM data transmissions to estimate the number of paper CBP Form 1302As that would be eliminated as a result of this proposed rule during each year of the regulatory period. CBP expects that this proposed rule would eliminate approximately 56.6 million paper CBP Form 1302As or on average 11.3 million annually. Table 6 below displays CBP's regulatory period estimates for non-empty containers departing the United States in the sea environment, the number of other vessel departures, total vessel EEM data transmissions, EEM data transmissions from previous VTM participants and estimated number of eliminated paper CBP Form 1302As.
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Pilot Period (2016-2025)
Overall, the vessel EEM test was meant to test the functionality of providing export manifest data elements electronically to CBP through ACE and to test the feasibility of outbound vessel carriers providing those data elements prior to loading cargo onto vessels attempting to depart the United States. Unfortunately, the test participants do not provide these data elements within the time frames CBP requested during the vessel EEM test. Instead of providing vessel EEM test data prior to loading cargo onto vessels, the test participants typically provide the vessel EEM test export manifest data elements to CBP within the time frames discussed during the baseline scenario, no later than four days post departure from the U.S. port of export. Therefore, during the pilot period CBP officers are not reviewing any vessel EEM test export manifest data these participants transmitted pre-departure and all CBP review would be conducted post departure. Additionally, CBP and participating outbound vessel carriers do not review or resolve any 1H Enforcement holds or 2H Documentation holds, automatically issued through the vessel EEM test system when conducting risk assessment and screening export manifest data, during the pilot period. CBP does not expect that there will be any time burdens or costs associated with reviewing or resolving these holds during the pilot period and because export manifest data is not being provided prior to loading cargo onto vessels CBP does not expect that the vessel EEM test will limit the number of requests for a cargo or container to be returned or discharged at a second U.S. port.
Costs
CBP Costs
CBP expects that both CBP and outbound vessel carriers that participate in the vessel EEM test will incur costs during the pilot period. Because the vessel EEM test operates through ACE, CBP did not have to develop an entirely new system. CBP estimates that the one-time development costs for creating the vessel EEM test tool and implementing it into ACE was approximately $911,916.
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Beyond the systems costs from developing the vessel EEM test, CBP also experiences ongoing system operation and maintenance costs every year during the pilot period. CBP estimates ongoing maintenance of the vessel EEM test system will cost CBP a total of 1.5 million during the pilot period or on average $138,117
annually.
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Table 7 below displays CBP's systems costs related to the development and maintenance of the vessel EEM test during the pilot period. CBP estimates that total CBP system costs during the pilot period will be approximately $2.4 million or on average $221,018 annually.
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Information provided by CBP's Cargo and Conveyance Security, Office of Field Operations subject matter expert on December 13, 2022.
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Information provided by CBP's Cargo and Conveyance Security, Office of Field Operations subject matter expert on December 13, 2022. CBP estimated the annual amounts for 2023-2024 by assuming costs increased by 1.9% annually, the same growth rate CBP assumed in the actual year values.
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Trade Member IT Costs
CBP estimates that participating outbound vessel carriers also incur costs during the pilot period. Outbound vessel carriers that participate in the vessel EEM test also incur costs to adjust their IT systems to meet the requirements of the vessel EEM test and provide export manifest data directly to CBP via ACE. Many outbound vessel carrier companies that engage in exporting cargo out of the United States also engage in importing cargo into the United States. Similar to many other countries, the United States requires electronic transmission of import manifest data, and therefore outbound vessel carrier companies already have IT systems to meet these import requirements. The export manifest data requirements for the vessel EEM test at export are very similar to data requirements for advance electronic import manifest data required during the import process. Outbound vessel carriers have already developed systems for those electronic processes at import and, as such, the vessel EEM test participants stated that they did not need to develop new systems but merely adjusted existing IT systems.
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As vessel carriers already have systems to interface with ACE for import filings, among other things, systems needed to be modified rather than developed. Trade members also stated that the IT system costs to participate in the vessel EEM test would be largely operation and maintenance costs associated with the new export portion of their IT system.
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The cost of adjusting and maintaining IT systems to support providing export manifest data electronically to CBP can vary depending on the outbound vessel carrier or trade member. Therefore, CBP provides a range of estimates for the IT system costs to the average vessel EEM participant during the pilot period.
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Data was obtained from feedback from Trade members on the potential costs to internal IT systems to support providing EEM to CBP via ACE. Data was obtained in December 2022 and February 2023.
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Data was obtained from feedback from Trade members on the potential costs to internal IT systems to support providing EEM to CBP via ACE. Data was obtained in December 2022 and February 2023.
CBP anticipates that the annual IT systems costs required to participate in the vessel EEM test could range from approximately $10,000 to $60,000 each year.
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CBP used the midpoint within the range—$35,000—as CBP's primary estimate for annual IT systems costs to the average outbound vessel carrier participating in the vessel EEM test. As range estimates, CBP used a low estimate of $10,000 and a high estimate of $60,000 for the annual IT systems costs to each vessel EEM test participant each year. According to CBP's primary estimate the vessel EEM test participants will incur approximately $2,065,000 in total costs to adjust and maintain their IT systems for providing EEM data to CBP during the pilot period. CBP's alternate low and high estimates show that IT systems total costs to the participating outbound vessel carriers could be between $590,000 and $3,540,000 during the pilot period. Table 8 displays CBP's range of cost estimates for total annual IT systems costs to outbound vessel carrier participants during the pilot period. CBP requests comments from outbound vessel carriers and trade members on the costs associated with adjusting information technology systems to provide vessel EEM test data to CBP.
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Data was obtained from feedback from Trade members on the potential costs to internal IT systems to support providing EEM to CBP via ACE. Data was obtained in December 2022 and February 2023.
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CBP notes that the two vessel EEM test participants in 2022 were already providing VTM electronic export data to CBP prior to participation in the vessel EEM test thus merely transitioning from one form of electronic data transmission to another. Therefore, CBP does not know if IT systems costs to an outbound vessel carrier would be greater than the high range estimate of $60,000 annually if a carrier transitions from paper export manifest data to electronic data transmission as required by the vessel EEM test.
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Trade Member Opportunity Costs
In addition to costs associated with adjusting and maintaining information technology systems, CBP expects that some vessel EEM test participants face time burdens and opportunity costs when providing the vessel EEM test data to CBP. As mentioned earlier, as part of the vessel EEM test CBP requests that test participants provide the paper CBP Form 1302A along with the vessel EEM test data so that CBP can capture any inconsistencies or issues with the electronic transmission of vessel EEM test data to CBP. Because VTM participants are not required to provide paper CBP Form 1302As in addition to their VTM transmission, only vessel EEM test participants that were not previously VTM participants will incur this additional time burden when submitting both vessel EEM test data and paper CBP Form 1302As.
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In Table 3, CBP provides an estimate for the number of vessel EEM test data transmissions that will be submitted by non-VTM participants (663,525) during the pilot period. CBP anticipates that during the pilot period, vessel EEM test participants that were not previously VTM participants incur a time burden of approximately 1.71 minutes (0.028 hours) per vessel EEM data transmission.
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CBP multiplied the number of non-VTM participant EEM test data transmissions each year by the average time burden per transmission to estimate the time burden to ves
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