U.S. - Automated Manifest System (AMS) Regulations - Update

March 2004

Since publication of Club Circular B.400 last month the U.S. Bureau of Customs and Border Protection (CBP) has clarified certain issues:

Vessels Loading Before 4 March

The AMS Regulations come into force on 4 March. CBP has confirmed that for vessels loading before 4 March and arriving at U.S. Ports after 4 March AMS filing will not be required.

30 Day "Informed Compliance" Period For Bulk, Break Bulk and Passenger Vessels 

A 30 day period of informed compliance will be allowed by CBP for bulk and break bulk carriers, as well as for passenger vessels. (This is in recognition of the fact that some of these carriers are experiencing difficulties in obtaining the Activity Code 3 International Carriers bond by the 4 March deadline.)  

Offshore service vessels common in the Gulf are considered akin to break bulk carriers and will also be subject to the 30 day informed compliance period. 

Informed compliance means that CBP will essentially explain to the carrier those portions of the regulations that they have failed to follow (and hopefully how to correct the situation for the next U.S. call - although this will no doubt differ from port to port). No fine or penalty will be assessed during the 30 day informed compliance period. 

However, any bulk, break bulk or passenger vessel beginning the entire voyage on or after 2 April must comply with the AMS regulations and enforcement actions will be initiated from 2 April for non-compliance. 

However, for container vessels enforcement action for non-compliance will still begin on 4 March. It is important to bear in mind that bulk and break bulk vessels carrying any containers, even just one, will not be granted the 30 day delay and will be subject to immediate enforcement actions starting on 4 March.

Update

Full enforcement from 6 July 2004

Enforcement

Enforcement actions will range from denial of preliminary entry, to penalties, and up to denial of permit to unlade cargo. 

Identity Of Carrier*

It has been confirmed that there will be no further guidance issued at this time on the identity of carrier issue. CBP takes the position that the parties involved in the trading of the ship should work out amongst themselves who is required to comply with the regulations. CBP cautions, however, that owners contemplating compliance by charterers should bear in mind that the penalties which may be assessed are targeted at the vessel. CBP suggests, therefore, that the owner has the most at stake if there is non-compliance. 

While the situation is still not clear, no further clarification is currently available from CBP.

Deepwater Ports  

It has confirmed that deepwater ports such as LOOP are not subject to U.S. Customs laws and, therefore, the AMS and ICB regulations do not apply to vessels discharging at such ports. For the avoidance of doubt, however, CBP has confirmed that where cargo is brought into a U.S. port from an STS offshore operation by a lightering vessel, that lightering vessel must comply with both AMS and ICB regulations.

Frequently Asked Questions (FAQs) Updated

The link to the CBP FAQs page was provided in Circular B.400. The page has recently been updated and is likely to be updated on a fairly regular basis as the CBP address the practical problems which arise in the early days of implementation of the AMS Regulations.     

Further information can be obtained from the CBP Trade Act of 2002 - Advance Electronic Information webpage.

Update - March 2004

*See Circular B.402 - Identity of 'Carrier' on Identity of 'Carrier'