Updated 12/02/04

Updated Questions # 2, 18, 32, 37

Customs and Border Protection (CBP) has received numerous questions concerning the Trade Act of 2002 of which the final rule was published on December 5, 2003 (68 FR 68140). The final rule provides for advance manifest regulations for all modes of transportation both in and out of the United States. CBP has provided our response, for now, of the most frequently asked questions. CBP is hopeful that this document will assist the trade community in understanding the expectations of CBP concerning the advance manifest rules for air cargo operations. The effective dates of implementation of the final rule will be August 13, 2004 for the Eastern U.S., October 13, 2004 for Central U.S., and December 13, 2004 for the Western U.S. Should you have additional questions that are not answered in this document please feel free to write to Manifest.Branch@dhs.gov. CBP will continue to update this list, adding questions and answers. Please continue to monitor this document for changes and updates.

1. Systems to be Used

Q. How will CBP collect electronic information for imported air cargo?

A. For imported cargo arriving aboard an aircraft, CBP will collect such information through the Air Automated Manifest System (Air AMS). Air AMS is a component of the CBP Automated Commercial System (ACS).

2. Required and Voluntary Participation

Q. What parties are required to participate in Air AMS?

A. The incoming air carrier is always required to provide information through Air AMS when the aircraft is required to enter and there is commercial cargo aboard.

Q. What other parties may voluntarily participate in Air AMS?

A. The information supplied by the incoming carrier may be supplemented by additional information provided by four other eligible parties including:

1. An Automated Broker Interface Filer (Importer or Customs broker)

2. A Container Freight Station

3. An Express Consignment Carrier Facility

4. An air carrier that arranged to have the incoming air carrier transport the cargo to the United States.

Q. Are these parties required to participate in Air AMS?

A. Under these rules, participation for these parties is voluntary. These parties may voluntarily participate in Air AMS for the purpose of providing house air waybill level information directly to CBP without having to provide it to the carrier. If such parties do not voluntarily present the full house air waybill information directly to CBP, that information must be provided by the incoming air carrier.

Q. What is the benefit for an eligible voluntary party to participate in Air AMS?

A. By providing house-level air waybill information directly to CBP, an eligible voluntary Air AMS participant need not disclose to the carrier those data elements of the house air waybill related to the shipper and consignee. Many such parties consider this information to be business proprietary information, which it would prefer to report directly to CBP without having to so disclose to the carrier. In addition, voluntary participants would be able to request in-bond authorization at the house air waybill level through Air AMS. Finally, a Container Freight Station (CFS) or Express Consignment Carrier Facility (ECCF) that voluntarily participates in Air AMS would receive electronic Freight Status Notification (FSN) messages related to CBP processing of entries for cargo located at its facility.

Q. If a freight forwarding company does not fall into one of the categories of eligible participants, may it participate in Air AMS?

A. No. Only those parties specified in the regulation may participate in Air AMS. If a freight forwarding company does not fall into one of these categories, it must fully present the required information to the incoming air carrier or to another eligible party which would then be responsible for providing the information to CBP.

Q. If an ABI filer elects to voluntarily provide house air waybill information to Air AMS, is the same ABI filer (Customs broker or importer) also required to file the entry for the related merchandise?

A. No. Providing advance electronic information to Air AMS does not obligate the ABI filer to file an entry for the same merchandise.

Q. Is an air carrier required to participate in Air AMS at a port where it will never have an aircraft required to make entry under 19 CFR 122.41? In other words, is Air AMS participation mandatory for an air carriers at a port where it only handles in-bond destination cargo?

A. The air carrier is not required to participate in Air AMS at a port where it will not make entry under 19 CFR 122.41. Participation in Air AMS for the purposes of handling in-bond cargo at the destination port is voluntary.

3. When Air AMS Filing Required

Q. Since Air AMS filing is required for aircraft required to enter, when is such entry required?

A. All aircraft coming into the United States from a foreign area must make entry except: public aircraft, private aircraft and aircraft chartered by and transporting cargo that is the property of the U.S. Department of Defense.

Q. What is a private aircraft?

A. A private aircraft is an aircraft engaged in a trip that does not involve carrying passengers or cargo for commercial purposes.

Q. For purposes of Air AMS filing, what areas constitute the United States?

A. The customs territory of the United States contains the fifty states, the District of Columbia and Puerto Rico.

Q. Is Air AMS filing required for flights from foreign locations to the U.S. Virgin Islands, Guam, American Samoa, Wake Island, Midway Islands, Johnston Atoll and the Northern Mariana Islands?

A. As these locations do not fall within the customs territory of the United States, Air AMS filing is not required for flights from other foreign areas to these insular possessions. However, Air AMS filing is required for flights from these insular possessions to ports within the customs territory of the United States.

Q. Is Air AMS filing required for flights from Puerto Rico to any of the fifty states?

A. No. Puerto Rico is within the customs territory of the United States.

4. Participant Procedures

Q. What methods may be used to transmit information through Air AMS?

A. A potential Air AMS participants has three options:

1. Develop its own software interface based on the technical specifications as provided in the Customs Automated Manifest Interface Requirements – Air (CAMIR-Air) document.

2. Provide the data through an Air AMS service center.

3. Purchase a commercially available software and communications package.

Q. Does CBP provide a list of service centers and software vendors?

A. CBP will maintain a list of Air AMS service centers and software vendors on its web site. This list is currently available at:

http://www.cbp.gov/ImageCache/cgov/content/import/operations_5fsupport/ams/vendor_5fair_2edoc/v1/vendor_5fair.doc\

Q. Once a software and communications package has been selected, how does one become an Air AMS participant?

A. The potential Air AMS participant may complete the Air AMS Respondent Checklist and then mail or fax the document to:

Customs and Border Protection

Client Representative Branch

7501 Boston Blvd. Rm. 211

Springfield, VA 22153

FAX: (703) 921-7563

The Air AMS Respondent Checklist is the last page of the document attached to the service center and software vendor list found at:

http://www.cbp.gov/ImageCache/cgov/content/import/operations_5fsupport/ams/vendor_5fair_2edoc/v1/vendor_5fair.doc\

Q. If an air carrier is already an Air AMS participant but chooses to expand its Air AMS participation to additional ports, what must that carrier do?

A. The air carrier must notify the CBP port and its assigned client representative prior to expanding its Air AMS participation to additional locations. The assigned client representative may establish a user record for the air carrier participant in that port upon receipt of confirmation that the port has acknowledged the commencement date of Air AMS participation.

5. Bond Requirements

Q. What type of bond is required for carriers to participate in Air AMS?

A. An international carrier’s bond (activity code type 3) is required for air carriers.

Q. What type of bond is required for container freight station operators, express consignment carrier facilities and ABI filers?

A. To participate in Air AMS, a container freight station operator or an express consignment carrier facility must have an international carrier’s bond (activity code type 3). To participate in Air AMS, an ABI filer must have an importer’s bond (activity code type 1).

Q. How does an Air AMS participant obtain a bond?

A. A bond may be obtained from a Department of the Treasury approved surety company. A current list of such approved surety companies may be found at:

www.fms.treas.gov/c570/index.html/

Q. What bond amount is required for Air AMS participants?

A. The amount of the bond is set by the port director of the port where the bond has been filed. The minimum bond amount has been set at $50,000 but the port director may require a higher amount.

Q. Does an Air AMS participant need to have a separate bond filed at each port where it intends to participate in Air AMS?

A. No. A continuous bond filed at one port is valid for Air AMS purposes at all ports where the party so participates in Air AMS.

Q. If a voluntary Air AMS participant elects to create in-bond movements at the house air waybill level, does it need to have a custodian of bonded merchandise bond (activity code type 2)?

A. When requesting an in-bond movement at the house air waybill level, a voluntary Air AMS participant is required to identify the onward bonded carrier. If the onward carrier is an air carrier, it is identified by its carrier code. Alternatively, the onward carrier may be identified by its bonded carrier identification number (IRS #, Social Security Number or CBP-assigned number). For further information see question #13.

The voluntary Air AMS participant requesting the in-bond movement may obligate its bond by specifying its own bonded carrier identification number if it has the required activity code type 2 bond. If the voluntary Air AMS participant does not have the required activity code type 2 bond, it may specify the onward carrier identification of another bonded party. The voluntary Air AMS participant must have authorization from the party whose bond is so obligated.

6. Air AMS Documentation

Q. What type of documentation is available to explain all the data elements in Air AMS?

A. The Customs Automated Manifest Interface Requirements-Air (CAMIR-AIR) is the source document for electronic data interchange between CBP and Air AMS participants.

Q. How does an Air AMS participant obtain a copy of the CAMIR-Air?

A. The CAMIR-Air is available on the CBP web site at:

http://www.cbp.gov/xp/cgov/import/operations_support/automated_systems/ams/camir_air/

Q. If changes are made to the CAMIR-Air, how are these distributed?

A. When a change is made to the CAMIR-Air the version of the document on the CBP web site is updated. Air AMS client representatives also distribute copies of the changes to their assigned clients.

7. Compliance Dates

Q. When will CBP expect compliance with the provisions of the Final Rule?

A. CBP has established the following implementation schedule when CBP will require electronic transmission of inbound air cargo information, depending on the location of the airport where cargo arrives in the United States.

Date	Ports in the Following Locations
August 13, 2004 Eastern U.S.	Connecticut, Delaware, District of Columbia, Florida, Georgia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Vermont, Virginia, West Virginia
October 13, 2004 Central U.S.	Alabama, Arkansas, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Mexico, Ohio, Oklahoma, South Dakota, Tennessee, Texas, Wisconsin
December 13, 2004 Western U.S.	Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, North Dakota, Oregon, Utah, Washington

Q. If cargo arrives on an aircraft after August 13 but before December 13 and the first port of arrival is in one of the locations that comprise the Western U.S. in the above chart, but the final destination of the cargo is in one of the locations that comprise the Eastern U.S. in the above chart, what is the required compliance date?

A. The required compliance date is based on the first airport of arrival for the cargo. In the above example, the required compliance date would December 13, 2004. This is true if the cargo is unladen from the aircraft at the first airport of arrival and transported to the destination airport under the in-bond procedures or if the cargo remains aboard the same aircraft and is transported to the destination airport under a permit to proceed.

8. Enforced Compliance Procedures – Phase 1

Q. What compliance actions is CBP undertaking for those air carriers that are required to participate in Air AMS but fail to do so before the required compliance date?

A. Beginning on the dates established in the above schedule, CBP will establish the procedures in each port for any aircraft that arrives in the United States which is required to transmit information through Air AMS but has not yet established Air AMS communications for that port with CBP. There will be 4 phases of this initial enforcement. The schedule for each of these phases is noted in the table below.

Phase 1

Phase 2

Phase 3

Phase 4

Eastern

8/13/04-8/22/04

Central

10/13/04-10/24/04

Western

12/13/04-12/19/04

Eastern

8/23/04-8/29/04

Central

10/25/04-10/31/04

Western

12/20/04-12/26/04

Eastern

8/30/04-9/6/04

Central

11/01/04-11/08/04

Western

12/27/04-1/3/05

Eastern

After 9/7/04

Central

After 11/9/04

Western

After 1/4/05

Phase 1

· CBP will not grant new landing rights for a carrier to land at a landing rights airport or permission to land at an international airport, if the carrier has not yet established an Air AMS user record at that port.

· In addition, CBP will establish the following procedures for entrance and unlading for those carries that previously had landing rights or permission to land but are not yet Air AMS participants. Although no penalties will be issued in this phase, the following procedures will allow CBP conduct a full and complete review of the manifest information before any cargo may be unladen from an arriving aircraft.

Ø The new regulations (part 122.38(c)) specifically state that term permits and special licenses to unlade will not be applicable to any flight with respect to which CBP has not received the required advance electronic information.

Ø Therefore, for carriers that are not Air AMS participants, CBP will no longer honor any term permit or special license to unlade that may already be on file with CBP. This does not mean that CBP will deny an aircraft from landing if that air carrier is not in compliance with the regulations. In the first phase of enforcement, the carrier must complete the following process before unlading any cargo from the aircraft. If any unlading occurs prior to the completion of the process, CBP will issue a penalty for violation of 19 USC 1453 – penalty equal to the value of the merchandise for unlading without a special permit or license.

q Upon arrival of each flight, the carrier must present a paper copy of the manifest on the existing CBP Form 7509 (Air Cargo Manifest) with copies of the attached air waybills, in addition to all other required documentation for arrival reporting and entrance purposes. The carrier will also prepare and submit CBP Form 3171 (Application-Permit-Special License Unlading-Lading-Overtime Services) for each flight since the any previously filed term versions of the document will no longer be valid. Ports should designate an inspector to act as a rover on the airfield to ensure that air carriers are not unloading their aircraft without a valid CBP Form 3171. Those air carriers that are in violation of this requirement should be issued penalties for unlading without a permit.

q Upon receipt of the above-mentioned documentation, CBP will conduct a paper review of the manifest information. Upon completion of this review, the CBP officer will sign the CBP Form 3171 to allow the unlading of the merchandise from the aircraft. CBP will conduct manifest reviews for as long as it takes to determine the threat. Be advised, the air carrier is required to submit the cargo manifest no later than four hours prior to arrival or no later than wheels-up/time of departure for designated locations. CBP will not expedite the review process upon request by the air carrier. Upon completion of this review, the CBP officer will sign the CBP Form 3171 to allow the unlading of the merchandise from the aircraft.

Phase 2

· In the second phase, CBP will begin to issue penalties for failure to submit the required electronic information to CBP. CBP will issue a penalty under 19 USC 1436 (b) / 19 CFR 122.48a for failure to file the air waybill information electronically. The penalty is $5,000 for the first violation and $10,000 for subsequent violations.

· In addition to issuing a penalty, CBP will only allow the unlading of cargo for carriers that are not Air AMS participants when the procedures outlined in Phase 1 have been completed.

Phase 3

· In the third phase, CBP will no longer grant permission to unlade cargo for carriers that are not Air AMS participants even if the carrier follows the procedures outlined in phase 1. The cargo may not be unladen at the first U.S. port of arrival or at any subsequent U.S. port. CBP will still require that the carrier present a paper copy of the CBP Form 7509 (Air Cargo Manifest) in the required timeframes The cargo will remain aboard the aircraft while CBP conducts its manifest review. CBP will conduct a full manifest review before granting permission for the aircraft to depart. Such permission to depart is granted either by signing the permit to proceed if the aircraft is continuing to another U.S. port or signing the outbound General Declaration (CBP 7507) if the aircraft is travelling to a foreign port.

· In addition to disallowing the unlading of cargo, CBP will also issue a penalty as outlined in phase 2.

Phase 4

· For any aircraft that arrives where the carrier is not an Air AMS participant, CBP will continue to disallow the unlading of cargo and issue a penalty as outlined in phase 3 of these procedures.

· In addition, CBP will inform the carrier that future violations may subject it to the provisions of 19 USC 1436(b) which states that any conveyance used in connection with violations of manifest requirements may be subject to seizure and forfeiture. Any such decision to seize an aircraft must be made with concurrence from CBP headquarters.

9. Enforced Compliance Procedures – Phase 2

Q. What enforced compliance actions will CBP initiate against those parties that fail to transmit air waybill records in the time and manner as specified by the regulations?

A. Beginning on the dates established in the schedule below, CBP will begin the next phase of its enforced compliance procedures to ensure that the information is presented in the time frames required by the regulation. CBP will initiate a penalty or claim for liquidated damages when the air waybill record has not been received by CBP in the time frame established by the regulation.

CBP will also begin to place holds on air waybill records when the cargo description, shipper or consignee information is not provided or the information provided is not acceptable. CBP will also place holds on master air waybill records if the required house air waybill information has not been received by CBP. Finally, CBP will place a hold on split master air waybill records when the carrier fails to submit the required information for the affected house air waybills pursuant to 19 CFR 122.48a(d)(3). These holds will be placed in addition to any other holds placed on air waybill records when the cargo has been selected for physical inspection.

Date	Ports in the Following Locations
Eastern U.S. September 7, 2004	Connecticut, Delaware, District of Columbia, Florida, Georgia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Vermont, Virginia, West Virginia
Central U.S. November 9, 2004	Alabama, Arkansas, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Mexico, Ohio, Oklahoma, South Dakota, Tennessee, Texas, Wisconsin
Western U.S. January 4, 2005	Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, North Dakota, Oregon, Utah, Washington

10. Delivery Authorization

Q. What is considered the electronic equivalent of delivery authorization for Air AMS participants?

A. Delivery authorization in the electronic environment requires that the four following conditions must be met:

1. The cargo has arrived in the port.

2. An entry has been filed.

3. Examinations, if required, have been completed.

4. All holds placed on the air waybill have been removed.

Q. If a carrier utilizes the services of a ground handling agent to handle its cargo, does that ground handling agent need to be an Air AMS participant?

A. All participants in Air AMS are required to honor the electronic freight status notifications. A carrier is required to maintain control of the cargo pending CBP disposition whether its staff handles the cargo or if such services are provided by a ground handling agent. How the carrier communicates such information to its ground handling agent is a business decision for the carrier and its agent.

11. Split Shipments

Q. What is a split shipment?

A. A split shipment occurs when cargo covered by a single air waybill arrives in the United States on more than one conveyances.

Q. When a carrier splits a consolidated shipment, is it required to send any information for the associated house air waybills?

A. For consolidated shipments covered by a master air waybill, the carrier is required to report to CBP certain information regarding each associated house air waybill to indicate which house air waybills have been laden on each flight.

Q. Since the Automated Broker Interface (ABI) cannot accommodate multiple flight arrival information for split shipments how can a single entry be filed for a split shipment and the proper freight status notifications be sent?

A. CBP has an existing policy to allow a single entry to be filed for a split shipment provided that the conditions of part 141.57 of the Customs Regulations have been satisfied. If these conditions are satisfied, the entry filer must include additional information on the CBP Form 3461.

For purposes of completing boxes 12, 13, 15, 16 and 17 of the CBP 3461, the filer will include the transportation information for the first portion of the split shipment. For the purposes of completing boxes 21, 22 and 23, the filer must enter all air waybills and the quantities for which a single entry or a special permit for immediate delivery are requested. In box 29, the filer will enter the following information for all portions of the split shipment covered by the single entry or special permit for immediate delivery:

· Carrier Code

· Flight Number

· Arrival Date

· Piece Count for that Arrival.

In order to transmit an electronic permit to release for each portion of a split shipment, CBP must post such release to each portion covered by the single entry or special permit for immediate delivery. To effect such release, the importer must provide a copy of the CBP 3461 to CBP with the information noted above. If the release is to occur incrementally, the filer must provide such notification to CBP upon arrival of each portion of the shipment.

12. Cargo that Fails to Arrive in the United States

Q. If an air waybill record has been transmitted to Air AMS, but the cargo will not be transported to the United States (i.e, the cargo is re-routed outside the U.S ), what must the Air AMS participant do?

A. The Air AMS participant that transmitted the air waybill record must delete the air waybill record from Air AMS.

13. Consolidated Shipments

Q. Does CBP require a separate air waybill record for each shipper/consignee relationship? In other words, if a freight forwarding agent arranges transportation for a single consignee to import merchandise from multiple vendors, suppliers or manufacturers, may the freight forwarding agent be listed as the shipper on a single air waybill or must there be a separate air waybill record for each vendor/supplier/manufacturer?

A. CBP requires detailed shipper information on each air waybill record for the purposes of targeting high-risk shipments. If a freight forwarder or other consolidator receives merchandise from multiple foreign vendors and arranges for such transport to the United States, listing the freight forwarder as the shipper would not provide sufficient information for CBP to conduct its targeting. Air AMS does not have the capability of accepting multiple shippers or consignees for a single air waybill record, nor could it be readily adapted to so accept multiple shippers/consignees.

Q. The regulations require that a carrier transmit a conditional data element referenced as a “consolidation identifier.” What is this data element and what is it used to indicate?

A. The consolidation identifier is a conditional element in the air waybill line of an Air AMS message. An Air AMS participant includes the value “M” to identify the air waybill as a master air waybill which indicates that one or more house air waybills is associated with that master air waybill.

Q. How should the carrier report the master air waybill record, when an express consignment carrier is providing house air waybill level information through a CBP-approved proprietary system? If the carrier transmits the master air waybill with the consolidation identifier and no house air waybill records are received in Air AMS, no transfer requests (in-bonds or permits to transfer) will be approved.

A. Only in cases where the house air waybill level information will be received by CBP through an approved proprietary system for express consignment cargo may the carrier eliminate the consolidation identifier and identify the record as a simple air waybill. In this case, the carrier will still use the AGT field of the record to identify the party that will supply the house air waybill level information.