A period of "Informed Compliance" began Monday, November 15, whereby carriers crossing at 40 major border
points from Canada or Mexico into the United States will be warned if they do not deliver the right information and/or in the right format at the right time. As of November 15th: Drivers not in compliance with
the regulations will receive the following warning:
As of November 15, 2004 you are not in compliance with new U.S. advance electronic cargo information regulations (19 CFR 123.92) because your current
shipment arrived in the United States:
[ ] Without submitting cargo information via PAPS 1 hour in advance of arrival.
[ ] With a BRASS entry and the driver did not present a valid FAST ID card.
[ ] Without submitting cargo information for an in-bond shipment via QP/WP or CAFES.
Such violations of 19 CFR 123.92 may lead to denial of entry and/or monetary penalty Cargo
carriers and Customs brokers have known for weeks about new regulations mandating them to submit advance electronic cargo information one hour before they get to the border.
After November 30, the potential fines
are extremely onerous at $5,000 USD for a first infraction and $10,000 USD for subsequent infractions against the same driver. Importers and transport brokers also face fines of $5,000 every time they break the rules.
The regulations, intended to better target high-risk shipments, came into effect this year for marine and rail companies. Notification is also being phased in for air cargo.
The most dramatic impacts will
be felt by road carriers due to border proximity and because they generally rely on less sophisticated technology than major carriers. That means they could be less prepared for the changes.
These new rules come
at a tough time. Carriers are being battered by higher fuel costs, increased insurance premiums, a shortage of drivers, and increased security costs.
Shippers, like retailers and manufacturing companies, are
equally concerned. They worry about increased logistics costs and disruptions to their well-oiled production systems that rely on just-in-time inventory. By November 30, 2004: A penalty will be
issued, with the following guidelines: The driver (in care of the carrier) will be liable under 19 USC 1436.
The importer and broker would be assessed liquidated damages pursuant to 19 CFR 113.62(j)(2), as the
electronic filer.
A single penalty may be assessed against the person in charge of the truck under 19 USC 1436, or a single claim for liquidated damages under 19 CFR 113.62(j)(2) may be assessed against each
authorized electronic transmitter responsible for the violations.
The amount of the penalty/liquidated damage will be as follows: Carriers will be assessed $5,000 first time violation, $10,000 for subsequent
violations against same driver. Importers and brokers will be assessed $5,000 for first and subsequent violations. By January 31, 2005:
Entry will be denied for any truck arriving at the border that is non-compliant. A penalty/liquidated damage will also be issued as appropriate.
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