U.S. Customs 24 Hour Rule - BIMCO Voyage and Time Charterparty Clauses

March 2003

From BIMCO Press Release of 5 March 2003:

On 2 February 2003 the U.S. Customs Service began enforcing new regulations requiring carriers to provide the U.S. Customs with the vessel's cargo manifest (cargo declaration) latest 24 hours before loading, at a foreign port, cargo destined for the U.S. or passing through U.S. ports in transit. It is important to note that the regulations do not apply to bulk cargoes. In the case of break-bulk cargoes an exemption may be available.

The so called "24 hour rule" has been implemented to try to help the U.S. Customs evaluate the risk of smuggled weapons of mass destruction before the goods are loaded on vessels for importation in the U.S. while, at the same time, enabling the U.S. Customs to facilitate the prompt release of legitimate cargo following its arrival in the U.S.

Failure to provide the required information within 24 hours prior to loading may result in the delay of a permit being issued to discharge the cargo in the U.S. and/or the assessment of penalties or claims for liquidated damages levied on the carrier by the U.S. Customs.

In an effort to protect carriers against the consequences of these new security measures, two standard clauses have been produced by BIMCO for incorporation into voyage and time charter parties, respectively.

Acknowledging the fact that the charterers are usually in a better position than the owners to obtain and assess the correctness of the information provided for the cargo, sub-clause (a)(i) applies the principle that the charterers shall provide all necessary cargo information to the owners to enable them to submit a timely and accurate cargo declaration.

Ideally it would be more expedient if the charterers were themselves to submit the cargo declaration directly to the U.S. Customs. However, given the wording of the regulations, the charterers are only allowed to do so in a very limited number of circumstances. To cater for those situations, sub-clause (a)(ii) stipulates that if permitted by the regulations the charterers must submit the cargo declarations.

Sub-clause (b) sets out the legal consequences for the charterers if they do not comply with the provisions of sub-clause (a).

The first part of sub-clause (c) obliges the charterers to provide security should the vessel be detained, attached, seized or arrested as a result of the charterers' failure to comply with the provisions of sub-clause (a). The second part of sub-clause (c) differs between the voyage and time charter party clause versions as it deals with the consequences of time lost.

For further information, please contact Carsten Hornecker, Manager, Documentary & Legal Department (e-mail: [email protected]).

The full text of the U.S. 24 Hours Rule Clauses follow this article and are also available to download from the "Features" section of BIMCO's website (www.bimco.dk).

Steamship Maritime Security articles

BIMCO Standard Clauses - U.S. Customs 24 Hours Rule for Voyage and Time Charter Parties