Confusing? Yes. Causes for delay of cargo? Yes. More such restrictions to come? You can count on it.

As America’s war on terrorism expands, the transportation community has been made subject to an almost bewildering array of new requirements that are all designed to make America’s borders safer. Most of these requirements stem from Congressional mandates on agencies to impose additional security measures.

It is important for managers in all phases of the distribution chain to be aware of these requirements and stay abreast of still further requirements that are sure to be mandated. Increased delays, more paperwork and additional costs for security should be anticipated.

Customs Service Notification Rule

The Customs Service has established a rule requiring an electronic notification to it, not less than 24 hours before a container, destined for the U.S., is loaded onboard a ship at a foreign port. Such submissions are made through the Customs Service Automated Manifest System (AMS).

Active enforcement began on February 2, 2003. The Customs Service is trying to work out glitches and is tightening enforcement. With about 7 million containers expected to enter the U.S. this year, it is a big job.

The rule puts the logistics manager on the spot because a container cannot be loaded with less than 24 hours to go before it is put on the ship. Non-compliance can hold up loading and result in an entire container being barred from entry.

The Customs Service will soon begin the formal rulemaking process for prior notification relating to shipments outbound from the U.S. The indications are that by October 1, 2003, the Customs Service will propose an outbound rule that will require vessel operators or consolidators to notify it of the contents of shipments at least 72 hours before a shipment embarks from a U.S. port.

Importers of food will soon be subject to new notification rules by the U.S. Food and Drug Administration (FDA) for food imports.

In January, FDA announced a proposed regulation that would require that FDA be notified electronically by noon of the calendar day before the day that imported food will arrive at a U.S. border crossing or at a U.S. port of entry. The FDA proposal would require at least 13 items of information be report to it on each food shipment. FDA anticipates receiving 20,000 notices a day for food imports. That would be 7,300,000 food import notices a year.

The rule was mandated by the Bioterrorism Preparedness and Response Act of 2002. That Act requires that prior notification of imported food begin by December 12, 2003. FDA has stated that it will have its final rules on the subject in place by October 12, 2003. By traditional Washington standards for issuing regulations with such a broad impact that is practically warp speed.

Air Cargo Reporting

Both the Customs Service and the Transportation Security Administration (TSA) have or will be issuing regulations or standards for air cargo. TSA has already informed air carriers that they can only accept cargo for transport in the belly of a passenger aircraft if it is from a "known" shipper. A "known" shipper is a shipper known to the particular air carrier from the carrier’s previous handling of that shipper’s freight and from the carrier’s examination of the shipper's facility for security purposes. If a shipper is not "known" then its cargo must go on an all cargo aircraft.

The Customs Service is also in the process of promulgating regulations required by the Trade Act of 2002, that would mandate the electronic notification to it of the cargo to be loaded on an aircraft at least 12 hours prior to putting it on the aircraft (8 hours for courier shipments). Such notices would be accomplished using the Air Automated Manifest System. The Customs Service has indicated that it intends to promulgate final rules for air cargo notifications by October 1, 2003.