December 4, 2002	Wednesday	Ramazan 28,1423

KARACHI, Dec 3: The US Customs Service has announced new disciplines and procedures for shipment to the US with heavy penalties to exporters on violation.

According to Export Promotion Bureau (EPB) here on Tuesday these major changes in the US shipment policy are effective from December 2, 2002.

These rules will be applied on trial basis for two months without penalty and from February 2, 2002, strict implementation of rules will start with penalties of $5,000 for first violation and $10,000 for each subsequent violation with the possibility that the cargo involved might be subject to seizure and forfeiture.

This change in rules will also affect Pakistan exports destined for the US market and the exporters and carriers will have to adopt new disciplines and processes to ensure timely manifesting and loading of cargo and conveying of the same information to the US ports.

According to changes, the manifest must be submitted to US Customs for all shipment on all vessels calling on US ports both which discharge their cargo on the US ports and those vessels which call US ports in transit for onward movement.

These rules have been made under a US initiative called US Container Security Initiative (CSI) with a view to eliminating possibilities of terrorist attack on the US ports through containers carrying export cargo to the US.

The exporters will have to be very vigilant to meet the US requirements. The number and quantities from the ocean carriers B/L must identify the lowest external packaging unit in the container. For example, a container containing 10 pallets with 200 cartons should be manifested as 200 cartons.

Generic descriptions like FAK (freight of all kinds), general cargoes, STC (said to contain), etc., will not be acceptable. Description of goods must be precise with accurate weights to be provided. Exporters and consignees complete address or identification number must be indicated on all bills of lading.

The identification will be a unique number to be assigned by the US Customs upon implementation of the automated commercial environment (ACE). The carrier must have detailed information within 24 hour of sailing of vessel from Karachi, otherwise the shipping company will not be able to manifest the cargo as per the requirements of the US Customs.

In case the exporter fails to provide the required information in a timely manner within the time required by the US Customs regulation the carrier may be denied permission to un-load the cargo at the US port. Shipping companies like Maersk Sealand, Safmarine and APL have already taken steps to inform their customers. Exporters having any question relating to the advance manifest requirements for shipment to USA must contact their carrier and obtain necessary clarifications at their earliest convenience.—APP