Proposed Rule2026-02662
Electronic Export Manifest for Vessel Cargo
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 10, 2026
Issuing agencies
Homeland Security DepartmentU.S. Customs and Border Protection
Abstract
U.S. Customs and Border Protection (CBP) proposes to amend its regulations to require the advance submission of electronic export manifest (EEM) information to CBP for cargo transported by vessel departing the United States. The proposed rule identifies the parties that would be eligible to transmit vessel EEM information and their responsibilities, and the time frames for transmission of the information prior to cargo loading or conveyance departure. Requiring advance transmission of EEM data would significantly improve cargo safety and security while minimizing disruption to the flow of commerce for exports in the sea environment.
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<title>Federal Register, Volume 91 Issue 27 (Tuesday, February 10, 2026)</title>
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[Federal Register Volume 91, Number 27 (Tuesday, February 10, 2026)]
[Proposed Rules]
[Pages 6074-6134]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-02662]
[[Page 6073]]
Vol. 91
Tuesday,
No. 27
February 10, 2026
Part III
Department of Homeland Security
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U.S. Customs and Border Protection
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19 CFR Parts 4, 103, and 113
Electronic Export Manifest for Vessel Cargo; Proposed Rule
Federal Register / Vol. 91 , No. 27 / Tuesday, February 10, 2026 /
Proposed Rules
[[Page 6074]]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
19 CFR Parts 4, 103, and 113
[Docket No. USCBP-2025-0911]
RIN 1651-AB59
Electronic Export Manifest for Vessel Cargo
AGENCY: U.S. Customs and Border Protection, DHS.
ACTION: Notice of proposed rulemaking.
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SUMMARY: U.S. Customs and Border Protection (CBP) proposes to amend its
regulations to require the advance submission of electronic export
manifest (EEM) information to CBP for cargo transported by vessel
departing the United States. The proposed rule identifies the parties
that would be eligible to transmit vessel EEM information and their
responsibilities, and the time frames for transmission of the
information prior to cargo loading or conveyance departure. Requiring
advance transmission of EEM data would significantly improve cargo
safety and security while minimizing disruption to the flow of commerce
for exports in the sea environment.
DATES: Comments must be received by April 13, 2026.
ADDRESSES: Please submit comments, identified by docket number [USCBP-
2025-0911], by the following method:
<bullet> Federal eRulemaking Portal: <a href="http://www.regulations.gov">http://www.regulations.gov</a>.
Follow the instructions for submitting comments.
Instructions: All submissions received must include the agency name
and docket number for this rulemaking. All comments received will be
posted without change to <a href="http://www.regulations.gov">http://www.regulations.gov</a>, including any
personal information provided. For detailed instructions on submitting
comments and additional information on the rulemaking process, see the
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION
section of this document.
Docket: For access to the docket to read background documents or
comments received, go to <a href="http://www.regulations.gov">http://www.regulations.gov</a>. In accordance with
5 U.S.C. 553(b)(4), a summary of this rulemaking may also be found at
<a href="https://www.regulations.gov">https://www.regulations.gov</a>.
FOR FURTHER INFORMATION CONTACT: David Garcia, Program Manager,
Outbound Enforcement and Policy Branch, Office of Field Operations,
CBP, via email at <a href="/cdn-cgi/l/email-protection#b6d5d4c6d3cec6d9c4c2dbd7d8dfd0d3c5c2f6d5d4c698d2dec598d1d9c0"><span class="__cf_email__" data-cfemail="ccafaebca9b4bca3beb8a1ada2a5aaa9bfb88cafaebce2a8a4bfe2aba3ba">[email protected]</span></a>, or by telephone, 202-
344-3277.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Public Participation
II. Executive Summary
A. Purpose of the Electronic Export Manifest for Vessel Cargo
1. Need for the Regulatory Action
2. Statement of Legal Authority
B. Summary of the Major Provisions of EEM for Vessel Cargo
C. Costs and Benefits
III. Background
A. Legal Authority
B. Current Regulations and Processes
1. Current Vessel Cargo Export Manifest Data Requirements
2. Current Vessel Cargo Export Information Transmission Time
Frames
3. Streamlining the Submission of Export Information for Vessel
Cargo and Closing Enforcement Gaps
C. The ACE Export Manifest for Vessel Cargo Test
1. The National Customs Automation Program
2. Data Elements in the Test
3. Test Expansion, Extension, and Modification and Renewal
4. Results of the Test, Modification, Expansion, Extension and
Renewal
D. Purpose and Need for the Rule
IV. Proposed Regulatory Changes
A. Proposed EEM Requirement
B. Time Frame for Transmitting Advance Vessel and Cargo
Departure Information
C. Parties Filing Advance Vessel and Cargo Departure Information
D. Initial Data Elements
E. Export Manifest Transportation Data
1. Mandatory Elements
2. Conditional Element
3. Optional Elements
F. Export Manifest Cargo Data
1. Mandatory Elements
2. Conditional Elements
3. Optional Elements
G. Electronic Export Manifest Holds and Do-Not-Load Instructions
H. Technical Amendments to 19 CFR Part 4
I. Proposed Amendments to Availability of Information
J. Proposed Amendments to CBP Bond Conditions
V. Regulatory Analyses
A. Executive Orders 12866 and 13563 (Regulatory Planning and
Review)
B. Regulatory Flexibility Act
C. Paperwork Reduction Act
D. Privacy
E. Unfunded Mandates Reform Act
VI. Signing Authority
I. Public Participation
Interested persons are invited to participate in this rulemaking by
submitting written data, views, or arguments on all aspects of the
notice of proposed rulemaking.
U.S. Customs and Border Protection (CBP) also invites comments that
relate to any economic, environmental, or federalism effects that might
result from this proposal. Comments that will provide the most
assistance to CBP will reference a specific portion of the proposed
rule, explain the reason for any recommended change, and include data,
information, or authority that support such recommended change.
II. Executive Summary
A. Purpose of the Electronic Export Manifest for Vessel Cargo
1. Need for the Regulatory Action
CBP's mission includes ensuring cargo security and preventing
smuggling while enforcing U.S. trade laws and regulations. Obtaining
data in a timely and sufficient manner prior to cargo arriving or
departing the United States allows CBP to review, conduct risk
assessment, and effectively inspect cargo. Pursuant to section 343(a)
of the Trade Act of 2002, as amended (19 U.S.C. 1415), CBP seeks to
mandate the electronic transmission of export manifest information and
eliminate reliance on paper. CBP proposes to identify and clarify the
responsibilities of different parties to transmit information, describe
the time frames for transmission of information prior to cargo loading
or conveyance departure, identify enforcement actions available while
outlining consequences of default, and limit post-departure filing for
cargo transported by vessel to assess cargo security concerns.
The requirement to submit manifest data electronically under
specific time frames will facilitate a more efficient trade process for
all parties involved. The submission of electronic manifest data will
significantly increase CBP's ability to identify high-risk cargo, to
ensure cargo security, and to prevent smuggling, as the earlier
electronic submission allows CBP to use its Automated Targeting System
(ATS) to assess all export manifest data transmitted. Trade members
would also experience efficiencies with quicker CBP examination
decisions, ability to resolve CBP requests, earlier mitigation of
enforcement actions, and improved communication between CBP and trade
members.
2. Statement of Legal Authority
CBP is authorized to promulgate regulations providing for the
mandatory transmission of electronic cargo information by way of a CBP-
authorized electronic data interchange (EDI) system of information
before the cargo arrives or departs the United States by any mode of
commercial transportation (sea, air, rail, or truck). Section 343(a) of
the Trade Act of 2002, as amended (Trade
[[Page 6075]]
Act) (19 U.S.C. 1415). Pursuant to 19 U.S.C. 1415(a)(3)(F), the
required vessel cargo information being sought is reasonably necessary
to enable CBP to identify high-risk shipments for purposes of ensuring
cargo safety and security, preventing smuggling, and commercial risk
assessment targeting, pursuant to the laws enforced and administered by
CBP. CBP needs to obtain timely and sufficient data prior to cargo
arriving or departing the United States via any mode of commercial
transportation to review and conduct risk assessments to identify high-
risk shipments and inspect cargo effectively.
B. Summary of the Major Provisions of EEM for Vessel Cargo
This proposed rule would mandate the transmission of EEM data for
all cargo prior to departing the United States by vessel. CBP is
proposing to revise 19 CFR 4.63 to mandate the electronic transmission
of vessel export manifest information, identify the parties eligible to
transmit information, describe the time frames prior to departure of
the vessel in which the information is due, and identify an initial
filing as early as practicable but no later than 24 hours prior to
loading of cargo on the outbound conveyance from the port of export
while requiring the remaining data to be transmitted at least two hours
prior to such departure. Proposed 19 CFR 4.63 would designate
information as either transportation data, cargo data, or empty
container data, and list the data elements to be transmitted while
identifying them as mandatory, conditional, or optional. The data
elements identified as mandatory must be submitted, while elements
identified as conditional would be submitted if applicable, and
optional elements may be provided at the discretion of the filers.
These elements would allow for CBP to inspect cargo effectively, ensure
compliance with U.S. export control laws and regulations, and identify
high-risk shipments for purposes of ensuring cargo safety and security.
Proposed 19 CFR 4.63(d) would require the mandatory initial filing
of eight data elements, identified below, be submitted as early as
practicable but no later than 24 hours prior to the loading of cargo on
the outbound conveyance from port of export, by either the carrier,
U.S. Principal Party in Interest (USPPI), or other qualified parties or
their authorized agents. The results of the test, described in Section
III.C., have shown that some outbound vessel carriers have the export
manifest data days before departure and therefore would have all the
necessary information to submit the initial filing data to CBP and all
other export manifest data well in advance of the 24-hour prior to
departure deadlines. Except for the initial data elements, this rule
would require the electronic export manifest information in proposed 19
CFR 4.63(e) and (f) to be transmitted two hours prior to vessel
departure to a foreign port.
Proposed 19 CFR 4.63(g) would provide two types of holds,
documentation and enforcement, that CBP may issue after a risk
assessment of an outbound export manifest data transmission. Should any
vessel cargo be identified by CBP as requiring review, the cargo would
be held until required additional information related to the shipment
is submitted or some other appropriate action is taken, as specified by
CBP. These examinations allow CBP to secure the cargo, conduct risk
assessment, and inspect cargo effectively. Once the cargo is cleared
for loading, a release message would be generated and transmitted to
the filer.
In addition to holds, proposed 19 CFR 4.63(h) would provide
procedures for when a combination of risk assessment and intelligence
point to a threat or terrorist plot in progress, and cargo or vessel
container may contain an immediate threat to the vessel and its
vicinity, and CBP issues a Do-Not-Load (DNL) instruction. Any cargo
that is issued a DNL instruction must not be loaded onto a vessel and
would require immediate adherence to the protocols and directions from
law enforcement authorities.
CBP proposes to amend 19 CFR 4.75, which identifies a complete
electronic export manifest and electronic export information
requirements and the exceptions for post departure filing, in order to
limit the situations where post departure filing would be permissible.
As an enforcement tool, CBP also proposes changes to the relevant
bond provisions in 19 CFR 113.62 (basic importation and entry bond), 19
CFR 113.63 (basic custodial bond), and 19 CFR 113.64 (international
carrier bond) to provide for the imposition of damages on parties that
do not provide the mandatory EEM data in the required manner and time
frame. Specifically, CBP proposes to amend 19 CFR 113.62, 19 CFR
113.63, and 19 CFR 113.64 to address compliance with the proposed
requirements regarding timely electronically provided outbound
information in addition to the current provisions regarding timely
electronic transmissions for merchandise or cargo which is inbound.
With each of these provisions, CBP may assess damages if a violation
occurs. CBP's primary goal is compliance and CBP seeks to work
alongside outbound vessel carriers and other parties to ensure that the
proper data is provided in a timely manner for CBP to properly review
the data, conduct risk assessment of high-risk shipments, and enforce
U.S. export laws and regulations on U.S. exports in the sea
environment.
C. Costs and Benefits
CBP anticipates that during the time period of analysis (2015-
2030), this proposed rule would result in costs, cost savings, and
benefits to CBP and trade members who export merchandise out of the
United States by vessel. CBP estimates present value total costs to CBP
and trade members would range from $172 million in 2023 U.S. dollars
using a three percent discount rate to $102 million using a seven
percent discount rate. Annualized total costs are expected to be $13.7
million using a three percent discount rate and $10.8 million using a
seven percent discount rate. CBP identified other potential costs from
this proposed rule but was unable to monetize them. These costs include
time burdens to CBP officers if the proposed rule results in additional
cargo examinations and trade members participating in the vessel EEM
would also need to adjust business practices, be required to hold or
obtain a qualifying bond, be required to have staff available to
respond to CBP questions, and pay damages for any violations. Present
value total cost savings to CBP and trade members are expected to be
around $195 million in 2023 U.S. dollars using a three percent discount
rate, or $15.5 million annualized, and $119 million in 2023 U.S.
dollars using a seven percent discount rate, or $12.6 million
annualized. CBP expects that there would be additional cost savings to
trade members that CBP was unable to monetize, including reduced paper,
printing, and storage costs related to the elimination of paper forms.
CBP anticipates that benefits from this proposed rule would include
improving CBP's security efforts by using ATS to conduct risk
assessment on all sea exports, improving communication between Federal
agencies with export jurisdiction, and improving efficiencies to
participating trade members from transitioning from a paper to an
electronic process. However, CBP was unable to monetize the expected
benefits from this proposed rule. Present value total net cost savings
from the implementation of this final rule would be around $17.2
million in 2023 U.S. dollars using a three percent discount rate, or
approximately $1.4 million
[[Page 6076]]
annualized, and $9.3 million in 2023 U.S. dollars using a seven percent
discount rate, or around $0.98 million annualized.\1\ Table 1 displays
CBP's estimates for annualized costs, costs savings, benefits, and net
costs from this proposed rule using a three and seven percent discount
rate over the period of analysis (2015-2030). Additionally, based on
CBP's perpetual time horizon calculations the present value of net cost
savings from this proposed rule would be $99.54 million and the
annualized value of net cost savings will be $6.97 million using a
seven percent discount. Therefore, this proposed rule is considered by
CBP to be a deregulatory action for the purposes of meeting Executive
Order 14192 requirements.
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\1\ In the economic analysis for this proposed rule, CBP used a
3% and 7% discount rate for estimated future quantified and
monetized costs, costs savings, and benefits based on guidance from
OMB Circular A-4.
[GRAPHIC] [TIFF OMITTED] TP10FE26.006
[[Page 6077]]
III. Background
A. Legal Authority
Section 343(a) of the Trade Act of 2002, Public Law 107-210, 116
Stat. 933, 981, as amended (Trade Act) (19 U.S.C. 1415(a)), authorizes
CBP to promulgate regulations providing for the mandatory transmission
of electronic cargo information by way of a CBP-authorized electronic
data interchange (EDI) system before the cargo is brought into or
departs the United States by any mode of commercial transportation
(sea, air, rail, or truck). The required cargo information is that
which is reasonably necessary to enable CBP to identify high-risk
shipments for purposes of ensuring cargo safety and security,
preventing smuggling, and commercial risk assessment targeting,
pursuant to the laws enforced and administered by CBP. 19 U.S.C.
1415(a)(2), (a)(3)(F). In developing such regulations, CBP must adhere
to the parameters set forth in section 343(a)(3) of the Trade Act (19
U.S.C. 1415(a)(3)) to balance the impact on the flow of commerce with
the impact on cargo safety and security.
In accordance with these parameters, CBP consulted with carriers
throughout the process of developing the proposed regulation and during
the course of the ACE Export Manifest for Vessel Cargo Test (see
Section III.C. below) that has been administered since 2015. See Trade
Act, sec. 343(a)(3)(A), 19 U.S.C. 1415(a)(3)(A). As section
343(a)(3)(B) of the Trade Act (19 U.S.C. 1415(a)(3)(B)) requires, the
proposed regulation would impose requirements on the party most likely
to have direct knowledge of information to be provided. When requiring
information from the party with direct knowledge of that information is
not practicable, the proposed regulation takes into account how, under
ordinary commercial practices, information is acquired by the party on
which the requirement would be imposed, and whether and how such party
is able to verify the information. Where information is not reasonably
verifiable by the party on which a requirement would be imposed, the
proposed regulation would permit that party to transmit information on
the basis of what it reasonably believes to be true. The proposed
regulation would require the submission of the export manifest data
electronically in ACE for cargo transported by vessel, requiring
certain elements that would only be available for a vessel and not for
other modes of transportation, pursuant to section 343(a)(3)(D), of the
Trade Act (19 U.S.C. 1415(a)(3)(D)). The information that would be
collected under the proposed regulation would be used exclusively for
ensuring cargo safety and security, preventing smuggling, and
commercial risk assessment targeting. See Trade Act, sec. 343(a)(3)(F),
19 U.S.C. 1415(a)(3)(F). The proposed regulation specifically avoids
imposing requirements that are redundant with one another or that are
redundant with requirements in other provisions of law, as seen below
in Section IV.C. See Trade Act, sec. 343(a)(3)(I), 19 U.S.C.
1415(a)(3)(I).
B. Current Regulations and Processes
Under current CBP regulations in title 19 of the Code of Federal
Regulations (CFR), certain information must be submitted to CBP for
vessels with export cargo leaving the United States for any foreign
area, whether directly or by way of other domestic ports. First, 19 CFR
4.61 requires the vessel master or other proper officer to execute a
Vessel Entrance or Clearance Statement on CBP Form 1300 filed with CBP
pertaining to the outbound vessel or that the necessary information be
transmitted electronically pursuant to a system authorized by CBP.
Then, 19 CFR 4.63 requires the filing of a Cargo Declaration Outward
With Commercial Form (CBP Form 1302A) with the appropriate CBP officer
at the port from which clearance is being sought. This section requires
that ``copies of bills of lading or equivalent commercial documents
relating to all cargo encompassed by the manifest must be attached in
such manner as to constitute one document, together with a Vessel
Entrance or Clearance Statement, CBP Form 1300, and Electronic Export
Information (EEI) as are required by pertinent regulations of the
Bureau of the Census, Department of Commerce'' (Census) (that is, the
Foreign Trade Regulations (FTR), provided in 15 CFR part 30). 19 CFR
4.63(a). Currently, 19 CFR 4.63 also allows for the filing of an
incomplete Cargo Declaration in certain cases pursuant to 19 CFR 4.75.
Under 19 CFR 4.75, the vessel master, or the vessel's agent on behalf
of the master, is required to file the complete vessel cargo manifest
generally within four business days after clearance from each port in
the vessel's itinerary.
Additionally, 19 CFR 4.76 sets forth procedures and
responsibilities of carriers filing outbound vessel manifest
information via the Automated Export System (AES) in lieu of paper CBP
Form 1302A. Approved carriers submitting outbound vessel manifest
information electronically in AES under 19 CFR 4.76 must, with limited
exceptions, submit the complete manifest data within ten calendar days
after departure. Finally, 19 CFR 192.14 requires the U.S. Principal
Party in Interest (USPPI), the USPPI's authorized agent, or the
authorized filing agent of the Foreign Principal Party in Interest
(FPPI), to file any required EEI for the cargo on the vessel.\2\ More
details regarding the manifest requirements, the subject of this
proposed rule, are provided in the next section.
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\2\ USPPI is defined in the FTR as the person or legal entity in
the United States that receives the primary benefit, monetary or
otherwise, from the export transaction. Generally, that person or
entity is the U.S. seller, manufacturer, or order party, or the
foreign entity while in the United States when purchasing or
obtaining the goods for export. 15 CFR 30.1(c). FPPI is defined in
the FTR as the party abroad who purchases the goods for export or to
whom final delivery or end-use of the goods will be made. This party
may be the Ultimate Consignee. 15 CFR 30.1(c).
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1. Current Vessel Cargo Export Manifest Data Requirements
As indicated in the previous section, generally the vessel master
or agent must file paper copies of the vessel cargo manifest on CBP
Form 1302A. CBP Form 1302A consists of the following data elements:
(1) Name of ship
(2) Port where report is made (not required by United States)
(3) Nationality of ship
(4) Name of master
(5) Port of loading
(6) Port of discharge
(7) Bill of Lading number
(8) Marks and Numbers, Container Numbers, Seal Numbers
(9) Number and kind of packages; Description of goods
(10) Gross Weight (lb. or kg.)
(11) Measurements (per HTS).
Though not a data element on CBP Form 1302A itself, the Internal
Transaction Number (ITN) or AES Exemption Statement must be included on
the outward manifest pursuant to 19 CFR 4.63(b) and 192.14(c)(3).\3\
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\3\ Specifically, 19 CFR 4.63(b) requires that the ITN of the
EEI covering each shipment for which EEI is required must be shown
on the Cargo Declaration Outward with Commercial Form (CBP Form
1302A) in the marginal column headed ``B/L No.'' If EEI is not
required for a shipment, 19 CFR 4.63(b) requires that a notation
must be made on the Cargo Declaration Outward With Commercial Form
(CBP Form 1302A) describing the basis for the exemption or exclusion
using the reference number found in the Census Bureau's FTR (see 15
CFR part 30, appendix B) where the particular exemption or exclusion
is provided, that is, the AES Exemption Statement.
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As mentioned above, 19 CFR 4.76 provides that approved carriers may
submit outbound vessel manifest information electronically in AES in
lieu of submitting a paper CBP Form 1302A. The Sea Carriers Module was
CBP's early method of modernizing the submission of vessel manifest
[[Page 6078]]
information. Sea carriers are required to apply for participation.
However, few carriers in fact sought to participate and instead opted
to use DIS. In this case, the carrier had ten calendar days after the
departure of the vessel from each port to submit the manifest
information to CBP. CBP also allows some qualifying outbound vessel
carriers to participate in the Vessel Transportation Module (VTM) which
provides the carriers the ability to transmit this export manifest data
to CBP electronically via the Automated Commercial Environment (ACE) in
lieu of the paper CBP Form 1302A, but very few outbound vessel carriers
actively provide this information electronically. Also, participants in
the ACE Export Manifest for Vessel Cargo Test may opt to submit EEM via
ACE as detailed in Section III.C. below.
1. Current Vessel Cargo Export Information Transmission Time Frames
As noted above, under current regulations, information regarding
vessel export cargo may be transmitted post-departure. Generally, the
vessel cargo manifest may be filed in complete form or incomplete form
(pro forma). However, the complete manifest must be filed with CBP
before a vessel will be cleared to depart to a foreign country listed
in 19 CFR 4.75(c). Otherwise, for shipments to a foreign country, an
incomplete manifest may be filed with CBP at the departure port when
accompanied by the proper bond pursuant to 19 CFR 4.75(a). For
shipments from any State or the District of Columbia to Puerto Rico, a
complete manifest or proper bond shall be filed with CBP within one
business day of arrival in Puerto Rico as provided in 19 CFR
4.84(c)(2). For shipments from any State or the District of Columbia to
noncontiguous territories of the United States other than Puerto Rico,
or from Puerto Rico to any State or the District of Columbia to any
other noncontiguous territory, a complete manifest or proper bond must
be filed with CBP before departure as provided in 19 CFR 4.84(c)(1).
When filing an incomplete manifest under the terms of the required
bond, the complete manifest must be filed timely with CBP by the
master, or the vessel's agent on behalf of the master. For shipments to
foreign countries, the complete manifest must be filed no later than
four business days post-departure. 19 CFR 4.75(b). For shipments from
the United States to Puerto Rico, the complete manifest must be filed
no later than one business day after arrival in Puerto Rico. 19 CFR
4.84(c)(2).
As mentioned above, carriers submitting outbound vessel manifest
information electronically in AES under 19 CFR 4.76 must submit the
complete manifest data within ten calendar days after departure of the
vessel from each port. However, if the destination of the vessel is a
foreign port listed in 19 CFR 4.75(c), the carrier must transmit
complete manifest information before vessel departure. The time
requirements for electronic transmission of complete manifest
information for carriers destined to Puerto Rico are the same as the
requirements found in 19 CFR 4.84 and described above.
During the vessel EEM test, participants would transmit completed
vessel export cargo manifest data electronically to CBP via ACE, at
least 24 hours prior to the loading of that cargo or container onto a
vessel. CBP expected that the deadline of 24 hours prior to loading the
cargo onto vessels would provide CBP adequate time to conduct a proper
review of export manifest data to enhance cargo safety and security
measures prior to cargo being loaded and a vessel's departure.
Identifying any high-risk cargo and containers prior to the loading of
cargo onto vessels improves security measures while ensuring compliance
with U.S. export laws and minimizes the disruption of the trade process
at the U.S. port of export. Additionally, the deadlines for export
manifest data transmission provide CBP the time to compare the export
manifest data with any EEI submitted by USPPI to further enhance
security measures on cargo departing the United States in the sea
environment.
During this initial phase of the vessel EEM test, CBP worked with
outbound vessel carriers who agreed to participate and submit export
manifest data electronically to CBP via ACE. CBP requested that vessel
participants continue to submit CBP Form 1302A as they did before
participating in the test so that CBP can capture any inconsistencies
or issues with the electronic transmission of vessel EEM data to CBP.
If an outbound vessel carrier was already providing data to CBP via
VTM, those outbound vessel carriers do not provide the paper CBP Form
1302A to CBP. Additionally, if an outbound vessel carrier provides data
through VTM and then participates in the vessel EEM, CBP did not
require the carrier to submit both VTM and vessel EEM data.
Regarding the submission of EEI, the provisions of the Census FTR,
15 CFR 30.5(c), authorize an approved USPPI or its authorized agent to
transmit EEI up to five calendar days after the date of export. This
allows the presentation of manifest data and EEI after the departure of
the vessel. See 19 CFR 4.75, 4.76, 4.84, and 15 CFR 30.4.
This post-departure process engenders security gaps.
2. Streamlining the Submission of Export Information for Vessel Cargo
and Closing Enforcement Gaps
Under the current regulatory requirements, paper and electronic
processes co-exist for the presentation of cargo and transportation
information for outbound vessels. The FTR set forth in 15 CFR part 30,
and the CBP regulations at 19 CFR 192.14(b)(1)(i), generally require
the transmission of EEI for outbound vessel cargo no later than 24
hours prior to loading of the cargo on the vessel at the U.S. port of
lading. Under CBP regulations at 19 CFR 4.63(a)(1), no vessel can clear
directly for a foreign port or for a foreign port by way of another
domestic port or ports unless a Cargo Declaration Outward with
Commercial Form (CBP Form 1302A) is filed along with bills of lading
relating to cargo encompassed by the manifest, together with a Vessel
Entrance or Clearance Statement, CBP Form 1300. The Cargo Declaration
Outward with Commercial Form (CBP Form 1302A) is generally submitted on
paper, unless the carrier is eligible to submit electronically.
Requiring the electronic submission of the export manifest information
in lieu of a paper Cargo Declaration Outward with Commercial Form (CBP
Form 1302A) would streamline the submission of this information.
As noted above, much export manifest information and EEI is not
required to be provided until after departure of the vessel.
Additionally, with a few exceptions, EEI is only transmitted when the
value of merchandise in a shipment exceeds $2500.00. 15 CFR 30.37
(y)(2). These regulatory gaps leave many shipments unavailable for CBP
to review before they have already left the United States. The lack of
pre-departure information, which includes commodity information
submitted into CBP targeting systems, hinders CBP's ability to target
and inspect cargo effectively to ensure cargo and conveyance safety and
compliance with U.S. export control laws and regulations.
C. The ACE Export Manifest for Vessel Cargo Test
1. The National Customs Automation Program
In recognition of the shortfalls of the current regulations
described above, on August 20, 2015, CBP published a
[[Page 6079]]
general notice in the Federal Register announcing a National Customs
Automation Program (NCAP) Test \4\ to gauge the feasibility of
requiring certain export manifest information to be filed
electronically in ACE for vessel cargo. 80 FR 50644. Participants in
the voluntary test agree to submit the export manifest data to CBP at
least 24 hours before the cargo is loaded on the vessel, consistent
with EEI transmission requirements. Participation in the test was
initially limited to nine stakeholders composed of a mix of a certain
number of outbound vessel carriers and freight forwarders or Non-Vessel
Operating Common Carriers (NVOCCs) who met the eligibility
requirements.
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\4\ The NCAP was established in Subtitle B of Title VI--Customs
Modernization, in the North American Free Trade Agreement
Implementation Act, Public Law 103-182, 107 Stat. 2057, 2188 (1993),
as amended (19 U.S.C. 1411-15). See also 19 CFR 101.9(b) (regarding
NCAP testing).
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2. Data Elements in the Test
The ACE Export Manifest for Vessel Cargo Test data elements are
similar, but not identical to the data elements required on CBP Form
1302A. The data elements are mandatory unless otherwise indicated. Data
elements that are indicated as ``conditional'' must be transmitted to
CBP only if the particular information pertains to the cargo. The ACE
Export Manifest for Vessel Cargo data elements are to be submitted at
the lowest bill level.
The data elements consist of:
(1) Mode of transportation (containerized vessel cargo or non-
containerized vessel cargo)
(2) Name of ship or vessel
(3) Nationality of ship
(4) Name of master
(5) Port of loading
(6) Port of discharge
(7) Bill of Lading number (Master and House)
(8) Bill of Lading type (Master, House, Simple or Sub)
(9) Number of house Bills of Lading
(10) Marks and Numbers (conditional)
(11) Container Numbers (conditional)
(12) Seal Numbers (conditional)
(13) Number and kind of packages
(14) Description of goods
(15) Gross Weight (lb. or kg.) or Measurements (per HTS)
(16) Shipper name and address
(17) Consignee name and address
(18) Notify Party name and address (conditional)
(19) Country of Ultimate Destination
(20) In-bond Number (conditional)
(21) Internal Transaction Number (ITN) or AES Exemption Statement (per
shipment)
(22) Split Shipment Indicator (Yes/No)
(23) Portion of split shipment (e.g., 1 of 10, 4 of 10, 5 of 10--Final,
etc.) (conditional)
(24) Hazmat Indicator (Yes/No)
(25) UN Number (conditional) (If the hazmat indicator is yes, the four-
digit United Nations (UN) Number assigned to the hazardous material
must be provided.)
(26) Chemical Abstract Service (CAS) Registry Number (conditional)
(27) Vehicle Identification Number (VIN) or Product Identification
Number (conditional) (For shipments of used vehicles, the VIN must be
reported, or for used vehicles that do not have a VIN, the Product
Identification Number must be reported.)
3. Test Expansion, Extension and Modification and Renewal
On August 14, 2017, the Test was extended for an additional year
(82 FR 37890). At the same time, the Test began accepting additional
applications for all parties which met the eligibility requirements in
lieu of the original nine stakeholders composed of outbound vessel
carriers and/or freight forwarders.
CBP consulted with the Commercial Customs Operations Advisory
Committee (COAC) to address issues concerning the quality,
accessibility, and timeliness of export manifest data received during
the test. One issue of concern was the availability of certain data
elements required under the test 24 hours prior to loading of the cargo
on the vessel in preparation for departure from the United States. COAC
urged CBP to change the filing condition of those data elements.
After evaluating the initial phase of the ACE Export Manifest for
Vessel Cargo Test and considering COAC's comments, CBP determined that,
to better test the functionality and feasibility of submitting the
specified export data at least 24 hours prior to loading of the cargo
on the vessel, the filing condition for four of the data elements
should be changed. The modified filing conditions enabled CBP to better
determine the appropriate reporting requirements for each data element.
(Data elements which are ``mandatory'' must be provided to CBP for
every shipment. Data elements which are ``conditional'' must be
provided to CBP only if the particular information pertains to the
cargo. Data elements which are ``optional'' may be provided to CBP but
are not required.)
CBP modified the ACE Export Manifest for Vessel Cargo Test to
change the following four mandatory or conditional data elements to
optional:
<bullet> Name of the master (Data Element #4)
<bullet> Number of house Bills of Lading (Data Element #9)
<bullet> Split Shipment Indicator (Data Element #22)
<bullet> Portion of Split Shipment (Data Element #23)
The remaining data elements under the ACE Export Manifest for
Vessel Cargo Test continue to be mandatory, conditional, or optional as
provided in the August 20, 2015, notice and as detailed in Section
III.B.2. above.
It was noted in the expansion/modification that upon the conclusion
of the ACE Export Manifest for Vessel Cargo Test, should CBP decide to
conduct rulemaking to amend the regulations concerning the filing of
the manifest for vessel cargo, CBP would reevaluate the filing
conditions for each data element to determine the feasibility of
requiring that data element to be filed electronically in ACE within a
specified time before the cargo is loaded on the vessel.
On April 27, 2022, CBP renewed the ACE Export Manifest for Vessel
Cargo Test for an additional two years. (87 FR 25036.)
4. Results of the Test, Modification, Expansion, Extension and Renewal
The ACE Export Manifest for Vessel Cargo Test assesses the
functionality regarding the filing of export manifest data for vessel
cargo electronically to ACE in furtherance of the ITDS initiatives
described above. CBP re-engineered AES to move it to an ACE system
platform. The re-engineering and incorporation of AES into ACE resulted
in the creation of a single automated export processing platform for
certain export manifest, commodity, licensing, export control, and
export targeting transactions. This reduced costs for CBP, partner
government agencies, and the trade community and improve facilitation
of export shipments through the supply chain.
The ACE Export Manifest for Vessel Cargo Test also examines the
feasibility of requiring the manifest information to be filed
electronically in ACE within a specified time before the cargo is
loaded on the vessel. (Under the current regulatory requirements, in
most cases the complete manifest is not required to be submitted until
after the departure of the vessel.) As described in the paragraph
below, in the test, participants submit export manifest data
electronically to ACE at least 24 hours prior to loading of the cargo
on the vessel. This enables CBP to link the EEI submitted by the USPPI
with the export manifest information earlier in the process. This
capability better enables
[[Page 6080]]
CBP to assess risk and effectively target and inspect shipments prior
to the loading of cargo to ensure compliance with all U.S. export laws.
Participants in the ACE Export Manifest for Vessel Cargo Test
agreed to provide export manifest data electronically at least 24 hours
prior to loading of the cargo onto the vessel in preparation for
departure from the United States. If the outbound vessel carrier files
this ACE Export Manifest data, the electronic filing is in lieu of the
paper filing of CBP Form 1302A and copies of bills of lading or
equivalent commercial documents relating to all cargo encompassed by
the manifest. If a freight forwarder or NVOCC files the ACE Export
Manifest data, the carrier is still required to file one of the
following: the CBP Form 1302A with copies of bills of lading or
equivalent commercial documents relating to all cargo encompassed by
the manifest attached in such manner as to constitute one document; the
19 CFR 4.76 electronic equivalent, if the outbound vessel carrier is
approved for this procedure; or the ACE Export Manifest data, if the
outbound vessel carrier is a test participant.
The ACE Export Manifest data submission is used to target high-risk
vessel cargo. The data should be available to test participants early
in the planning stages of an export vessel cargo transaction. Data
provided 24 hours prior to loading permits adequate time for proper
risk assessment and identification of shipments to be inspected early
enough in the supply chain to enhance security while minimizing
disruption to the flow of goods.
Any vessel cargo identified as potentially high-risk receives a
hold until required additional information related to the shipment is
submitted to clarify non-descriptive, inaccurate, or insufficient
information, a physical inspection is performed, or some other
appropriate action is taken, as specified by CBP. Once the cargo is
cleared for loading, a release message is generated and transmitted to
the filer.
The success of the test allowed CBP to determine that the
electronic submission of manifests provides improvements in
capabilities at the departure level. As a result of these improvements,
CBP is now seeking to end the test and codify this program by proposing
new regulations in this document.
The Vessel Export Manifest Test described 27 data elements to be
included in the vessel electronic export environment. The following
data elements (with numbering corresponding to the list of data
elements published in the General Notice published in 2015 (80 FR
50644)) are being carried forward from the test to the regulations
unchanged:
(1) Mode of transportation (containerized vessel cargo or non-
containerized vessel cargo.)
(7) Bill of Lading number
(9) Number of house Bills of Lading (optional)
(10) Marks and Numbers
(12) Seal Numbers (conditional)
(18) Notify Party name and address (conditional)
(19) Country of Ultimate Destination
(21) AES Internal Transaction Number (ITN) or AES Exemption Statement
(per shipment)
(26) Chemical Abstract Service (CAS) Registry Number (conditional)
(27) Vehicle Identification Number (noting that Product Identification
Number has not been included) (conditional)
The following data elements were found to be problematic or superfluous
and will not be carried forward in the proposed rule:
(4) Name of master (optional)
(22) Split Shipment Indicator (Yes/No)
(23) (i.e., 1 of 4, 4 of 10, 5 of 10--Final, etc.)
(24) Hazmat Indicator (conditional)
(27) Product Identification Number (noting that Vehicle Identification
Number has been included.)
The following data elements have been re-named or reconfigured for
clarity:
(2) Name of ship or vessel is separated into two elements Vessel Name
and Voyage Number
(3) Nationality of ship is now described as Vessel Country Code
(International Organization for Standardization (ISO) country code)
(5) Port of lading is now described as Port of departure
(6) Port of discharge is now described as Port of Unlading
(8) Bill of Lading type (Master, House, Simple or Sub) is now described
as Bill of Lading (Master, House, or Simple)
(11) Container Numbers (conditional) is split and reconfigured as two
data elements, Container Information (mandatory), and Load Status
(Empty or Loaded) indicator (yes/no)
(13) ``Numbers and kind of packages'' is now described as ``The numbers
and quantities of the cargo laden aboard the vessel as contained in the
carrier's bill of lading, either master or house, as applicable (this
means the quantity of the lowest external packaging unit; containers
and pallets do not constitute acceptable information; for example, a
container holding 10 pallets with 200 cartons should be described as
200 cartons)''
(14) ``Description of goods'' is now described as ``A precise cargo
description (or the Harmonized Tariff Schedule (HTS) number(s) to the
6-digit level under which the cargo is classified if that information
is received from the shipper); or, for a sealed container, the
shipper's declared description (generic descriptions, specifically
those such as ``FAK'' (``freight of all kinds''), ``general cargo,''
and ``STC'' (``said to contain'') are not acceptable)''
(15) Gross Weight (lb. or kg.) or Measurements (per HTS) is now
described in the initial filing as ``Total weight of cargo expressed in
pounds or kilograms''.
(16) Shipper name and address is now described in the initial data
filing as ``The shipper's complete name and address, or identification
number, from the bill(s) of lading (for each house bill in a
consolidated shipment). For mandatory export manifest cargo data due
prior to departure but after the initial filing, the data element is
described as ``Shipper name and address (For empty containers, the
shipper may be the carrier from whom the outbound vessel carrier
received the empty to transport).''
(17) Consignee name and address is now described in the initial data
filing as ``The complete name and address of the consignee, or
identification number, from the bill(s) of lading (The consignee is the
party to whom the cargo will be delivered to in the foreign country.
However, in the case of cargo shipped `to order of a [named party],'
the `to order' party must be named as the consignee; and if there is
any other commercial party listed in the bill of lading for delivery or
contact purposes, the carrier must also report this other commercial
party's identity and contact information including address in the
`Notify Party' field).'' For mandatory export manifest cargo data due
prior to departure but after the initial filing, the data element is
described as ``Consignee name and address (For empty containers, the
consignee may be the carrier to whom the outbound vessel carrier is
transporting the empty container).''
(20) In-bond number (conditional) is now described as ``In-bond type
and or in- bond house bill number''.
(25) 6-character Hazmat Code (UN (for United Nations Number) or NA
(North American Number) and the
[[Page 6081]]
corresponding 4-digit identification number assigned to the hazardous
material must be provided.) (conditional)
The following data element did not appear as a data element in the
test and has been added as mandatory initial filing data to provide
more accuracy:
<bullet> Estimated Scheduled Departure Date and Departure Port.
The following data elements did not appear as data elements in the
test and have been added as mandatory transportation data elements to
more accurately describe the transporting vessel and to describe where
the carrier takes possession of the merchandise in order to more
accurately describe the transportation chain:
<bullet> The vessel carrier identification SCAC Code (the unique
standard Carrier Alpha Code assigned for each carrier in the National
Motor Freight Traffic Association).
<bullet> Place carrier took possession of merchandise or empty
container.
The following data element has been added as a conditional data
element:
<bullet> Mexican Pedimento for cargo exported to Mexico.
The following data element has been added as an optional data
element to provide CBP with a second party to notify if the original
notify party cannot be reached:
<bullet> Secondary Notify Party SCAC.
D. Purpose and Need of the Rule
CBP's primary impetus for this regulatory initiative results from
the fact that CBP seeks to mandate the electronic transmission of EEM,
in addition to the EEI data required under 15 CFR part 30, clarify the
responsibilities of different parties to transmit information, identify
enforcement actions available while outlining consequences of default,
eliminate any reliance of paper, and limit post-departure filing for
cargo transported by vessel to assess cargo security concerns.
CBP proposes to amend the current regulations to require the
submission of export manifest data electronically in ACE as an export
requirement for cargo transported by vessel, under the authority of
section 343(a) of the Trade Act of 2002, as amended (19 U.S.C. 1415).
Proposed 19 CFR 4.63 would mandate the electronic transmission of
export manifest information in the vessel environment, identify the
parties eligible to transmit information, describe the time frames for
transmission of information prior to cargo loading or conveyance
departure, and prescribe an initial filing that must occur as early as
practicable but no later than 24 hours prior to loading of cargo at
each port on the outbound conveyance.
Proposed 19 CFR 4.63 would designate information as transportation
data, cargo data, electronic export information, or empty container
data, and list the data elements to be transmitted while calling them
out as mandatory, conditional, or optional. In addition, proposed 19
CFR 4.63 would provide direction regarding Hold and Do-Not-Load
messages.
Furthermore, proposed 19 CFR 4.63 would require the electronic
transmission of EEM information by outbound vessel carriers, and would
permit non-vessel operating common carriers (NVOCCs), freight
forwarders, customs brokers (CHB) or anyone with direct knowledge of
the export manifest data to submit EEM. These actors may use the
services of a shipping agent to transmit the data. The transmission
would be required 24 hours prior to loading at each port except for a
limited set of data that may be transmitted two hours prior to loading
or, in some limited instances, post-departure. Parties other than EEI
filers transmitting the information to CBP would be required to obtain
a bond to guarantee timely, accurate performance. The rule would also
remove obsolete references in Part 4 of the CBP Regulations, references
to FTR provisions that no longer exist, and paper processes that are
being eliminated.
The proposed regulations standardize data element requirements and
electronic data transmission formats and processes and identify actors
eligible to transmit information in the time frames required for
completion of EEM transmissions. They also narrow the scope of
information that can be presented post-departure of the outbound
conveyance. The advance data can also allow for earlier mitigation of
enforcement actions, such as examinations or information review.
IV. Proposed Regulatory Changes
CBP proposes to amend its regulations to require the submission of
the export manifest data electronically in ACE as an export requirement
for cargo transported by vessel, pursuant to section 343(a), of the
Trade Act of 2002, as amended (19 U.S.C. 1415(a)). This proposed rule
would require the transmission of EEM data for all cargo prior to
loading onto vessels departing the United States and require outbound
vessel carriers or their agents to present data related to the Vessel
Entrance or Clearance Statement, CBP Form 1300 no later than two hours
prior to departure of the vessel from the United States. By mandating
the transmission of EEM, this proposed rule would also eliminate the
use of the paper CBP Form 1302A and encourage the transition to the
electronic equivalent of the paper Vessel Entrance or Clearance
Statement, CBP Form 1300 for vessel clearance, and prohibit submission
of the vessel export manifest data post-departure. CBP anticipates that
requiring the transmission of EEM data prior to loading of cargo onto a
vessel would significantly improve CBP's ability to conduct proper
cargo security enforcement and prevent smuggling while minimizing the
disruption to the flow of goods during the export process in the sea
environment. This proposed rule would use ACE to obtain, conduct risk
assessment on, and screen EEM data for cargo being loaded onto vessels
preparing to depart the United States and allow for the party which
most likely has the direct information on cargo to provide the export
manifest data to CBP.
For CBP, the proposed requirement to submit EEM would enhance cargo
security because it would allow for improvements in targeting
capabilities at the port level through the use of CBP's automatic
targeting system (ATS). Port operations would enjoy considerable
efficiencies through the elimination of paper manifests. Storage space
currently reserved for manifest documents would be freed. Coordination
and information exchange between CBP and other Government agencies with
export jurisdiction would improve. Carriers, USPPIs, NVOCCs, and other
interested parties who transmit information would receive better and
more rapid examination decisions from CBP.
CBP is proposing to amend 19 CFR 4.61 the application for clearance
of a vessel departing for a foreign port requiring submission of the
Vessel Entrance or Clearance Statement either electronically or by
filing CBP Form 1300 prior to the conveyance.
CBP proposes to amend 19 CFR 4.62 to allow for electronic manifest
corrections. In order to implement this requirement, CBP is primarily
proposing to substantially revise 19 CFR 4.63 to add EEM to the
required advance vessel and cargo departure information. CBP is also
proposing to amend the last sentence of 19 CFR 4.72 to address
potential failure to submit the required export certificate from the
Department of Agriculture and resulting request for redelivery or
penalties for failure to file the certificate.
CBP is also proposing to amend 19 CFR 4.75 to substantially limit
post-departure manifest filing. Under this
[[Page 6082]]
proposed rule, the Vessel Entrance or Clearance Statement, CBP Form
1300, would continue to be required, but regulatory changes throughout
19 CFR part 4 would authorize use of its electronic equivalent.
Additional proposed technical corrections to 19 CFR part 4 would remove
references to sections of the FTR that have been removed from 15 CFR
part 30 by Census, as well as remove references to ``Customs'' and
replace them with references to ``CBP'' where applicable. CBP further
proposes to remove 19 CFR 4.76, the sea carrier's module, which was the
original version of electronic filing which has not been used by the
carriers and is no longer necessary. Proposed 19 CFR 4.81 would allow
for electronic equivalents of paper forms. Proposed 19 CFR 4.82 would
require a carrier to electronically transmit cargo information for
merchandise to be transported via a foreign port or ports to subsequent
ports in the United States to include information consistent with the
initial filing of EEM data. Proposed 19 CFR 4.84 removes references to
Census regulation 15 CFR 30.47 which has been removed.
Proposed 19 CFR 4.85 would revise and update the language to
reflect the submission of bonds. Proposed 19 CFR 4.88 seeks to revise
references to Cargo Declaration Form 1302A and replace it with
Electronic Export Manifest or EEM data transmission.
Finally, CBP is proposing to revise the relevant bond conditions in
19 CFR part 113 to incorporate the EEM requirements.
This proposed rule, through the creation of single integrated pre-
departure EEM, would limit post-departure filings to EEI submitted in
accordance with the provisions of the FTR, agriculture certificates,
and shipments between the United States and Puerto Rico. Post-departure
filings are permitted for agricultural certificates where the
certificate has been obtained but is unavailable at the scheduled time
of a vessel's departure. In that circumstance, the vessel may be
cleared on the basis of the receipt of a statement, under the shipper's
or shipper's agent's letterhead, certifying the number of boxes, the
number of pounds, the product name and the U.S. Department of
Agriculture export certificate number that covers the shipment of the
product. 19 CFR 4.72(a). Post- departure filings are permitted for
shipments between the United States and Puerto Rico when a vessel which
is not required to clear is transporting merchandise from a port in any
State or the District of Columbia to Puerto Rico. The master must file
a complete manifest, when required by the FTR (15 CFR part 30), and all
required EEI within one business day after arrival, as defined in 19
CFR 4.2(b), with the appropriate CBP officer in Puerto Rico. If the
complete manifest and all required EEI are not filed with the
appropriate CBP officer within that time frame, an appropriate bond
must be filed with the CBP officer for the timely production of the
required documents. 19 CFR 4.84(c)(2).
A. Proposed EEM Requirement
Proposed 19 CFR 4.63 would require certain advance vessel and cargo
departure information, to include mandating the electronic transmission
of export manifest information in the vessel environment, that is, EEM.
Proposed 19 CFR 4.63 describes the time frames for transmission of
certain advance vessel and cargo departure information prior to cargo
loading or conveyance departure and identifies the parties eligible to
transmit such information. Proposed 19 CFR 4.63 would prescribe an
initial filing of EEM data that must occur as early as practicable but
no later than 24 hours prior to loading of cargo at each port on the
outbound conveyance, and designate additional EEM data as
transportation data, cargo data, or empty container data, listing the
mandatory, conditional, or optional data elements to be transmitted. In
addition, proposed 19 CFR 4.63 would provide direction regarding Do-
Not-Load messages, and Documentation and Enforcement holds. Finally,
proposed 19 CFR 4.63, along with proposed 19 CFR 4.75, would
substantially limit post-departure data filings.
B. Time Frame for Transmitting Advance Vessel and Cargo Departure
Information
Proposed 19 CFR 4.63(b) provides the time frame for transmitting
certain advance vessel and cargo departure information, including the
vessel clearance statement, EEM, and EEI. Specifically, proposed 19 CFR
4.63(b)(1) sets forth that Vessel Entrance or Clearance Statement, CBP
Form 1300, or its electronic equivalent, must be presented to CBP by
the outbound vessel carrier no later than two hours prior to departure
of the vessel from the United States either directly or via another
domestic port or ports.
Proposed 19 CFR 4.63(b)(2) sets forth the time frames for the
submission of EEM data. An initial filing of EEM data would be required
to be transmitted as early as practicable, but no later than 24 hours
prior to loading of cargo on the vessel departing from the United
States. EEM data other than the initial filing, that is, export
manifest transportation data, export manifest cargo data, and any data
related to empty containers, would be required to be transmitted no
later than two hours prior to loading of the cargo, or container as
applicable, on the vessel in anticipation of departure of the vessel
from the United States either directly or via another domestic port or
ports. Proposed 4.63(b)(3) references the locations in the CBP
regulations and FTR regarding the time frame for the transmission of
EEI. Proposed 4.63(b)(4) requires the transmitted advance vessel and
cargo departure information to be updated if any of the transmitted
data changes or more accurate data becomes available. Proposed 19 CFR
4.63(b)(5) reiterates that only certain EEM or EEI may be filed post-
departure as provided in 19 CFR 4.75, as revised and discussed below.
C. Parties Filing Advance Vessel and Cargo Departure Information
Consistent with section 343(a) of the Trade Act (19 U.S.C.
1415(a)), the proposed rule aims to impose the requirement to provide
advance vessel conveyance and cargo departure information on the party
most likely to have direct knowledge of it. In furtherance of that
goal, the proposed rule recognizes that different parties might be best
situated to provide certain types of EEM data. Under the proposed rule,
the export manifest transportation data and any empty container data
would always and only be required of the outbound vessel carrier, while
the initial filing and/or the export manifest cargo data could be
provided by any eligible party with direct knowledge of that
information.
Accordingly, proposed 19 CFR 4.63(c)(1) provides that the outbound
vessel carrier would be responsible for submitting the vessel clearance
statement or transmitting its electronic equivalent and for
transmitting the export manifest transportation data and data for any
empty container. Should no other eligible party elect to transmit the
initial filing and/or the export manifest cargo data, the outbound
vessel carrier would be required to transmit it. The outbound vessel
carrier could also choose to transmit the initial filing and/or export
manifest cargo data even if another eligible filer transmits the
information. Proposed 19 CFR 4.63(c)(2), consistent with the provisions
of 19 CFR 192.14 and 15 CFR part 30, reiterates that the transmission
of EEI is the responsibility of the USPPI, its authorized filing agent,
or the authorized filing agent of the FPPI.
[[Page 6083]]
Proposed 19 CFR 4.63(c)(3) provides that any party with direct
knowledge of the export information may elect to transmit the initial
filing data and/or the export manifest cargo as well, so long as the
filer meets the qualifications that require transmission of information
through a CBP-approved electronic system. Such filers may include a
customs broker, Automated Broker Interface (ABI) filer, non-vessel
operating common carrier (NVOCC) as defined by 19 CFR 4.7(b)(3)(ii), or
a freight forwarder as defined by 19 CFR part 112. If such a party does
not elect to transmit EEM data, proposed 19 CFR 4.63(c)(4) would
require the party that arranges for and/or delivers the cargo to the
outbound vessel carrier to fully disclose and present to the outbound
vessel carrier the cargo information required for the initial filing
and the required export manifest cargo data. The outbound vessel
carrier must transmit this information to CBP.
Any party transmitting any of the advance vessel conveyance and
cargo departure information described in proposed 19 CFR 4.63 would be
required by proposed 19 CFR 4.63(c)(5) to possess the appropriate bond
containing all the necessary provisions of 19 CFR 113.62 (Basic
Importation and Entry Bond), 19 CFR 113.63 (Basic Custodial Bond), or
19 CFR 113.64 (International Carrier Bond). CBP is proposing to amend
the regulations covering certain bond conditions, as described in
Section IV.H., to incorporate the advance vessel conveyance and cargo
departure information requirements.
If any required information is in the possession of a third party
who is not an eligible filer set forth in proposed 19 CFR 4.63(c)(1)-
(3), proposed 19 CFR 4.63(c)(6) would require the third party to fully
disclose and present the required data to either the outbound vessel
carrier or other eligible electronic filer, as applicable, which must
transmit such data to CBP. Consistent with the provisions of section
343(a)(3)(B) of the Trade Act (19 U.S.C. 1415(a)(3)(B)), proposed 19
CFR 4.63(c)(7) provides that where the party electronically
transmitting the required EEM data receives any of this information
from another party, CBP would take into account how, under ordinary
commercial practices, the transmitting party acquired such information,
and whether and how such party would be able to verify the information.
Where the transmitting party would not reasonably be able to verify the
information, CBP would permit the party to electronically transmit
information on the basis of what such party reasonably believes to be
true.
D. Initial Data Elements
For the mandatory initial filing required as early as practicable
but no later than 24 hours prior to cargo loading on the outbound
conveyances, CBP selected seven data elements from the vessel EEM test
and added one new data element, Estimated Scheduled Departure Date and
Departure Port. Additionally, seven of the initial filing data elements
have their descriptions revised in this proposed rule to provide
additional clarity on the data required. The carrier would have the
ultimate responsibility to load, hold, or not load the merchandise.
USPPIs and other parties qualified to transmit data (or their
authorized agents) are eligible to submit the initial data filing, if
however, no other eligible party makes such an election, then the
outbound vessel carrier must transmit the initial data filing under
proposed section 4.63(d) as follows:
(1) Bill of Lading number;
(2) The numbers and quantities of the cargo laden aboard the vessel
as contained in the carrier's bill of lading, either master or house,
as applicable (this means the quantity of the lowest external packaging
unit; containers and pallets do not constitute acceptable information;
for example, a container holding 10 pallets with 200 cartons should be
described as 200 cartons);
(3) Total weight of cargo expressed in pounds or kilograms;
(4) A precise cargo description (or the Harmonized Tariff Schedule
(HTS) number(s) to the 6-digit level under which the cargo is
classified if that information is received from the shipper); or, for a
sealed container, the shipper's declared description (generic
descriptions, specifically those such as ``FAK'' (``freight of all
kinds''), ``general cargo,'' ``bulk cargo'' and ``STC'' (``said to
contain'') are not acceptable);
(5) The shipper's complete name and address, or identification
number, from the bill(s) of lading (for each house bill in a
consolidated shipment);
(6) The complete name and address of the consignee, or
identification number, from the bill(s) of lading (The consignee is the
party to whom the cargo would be delivered in the foreign country.
However, in the case of cargo shipped ``to order of [a named party],''
the ``to order'' party must be named as the consignee; and if there is
any other commercial party listed in the bill of lading for delivery or
contact purposes, the carrier must also report this other commercial
party's identity and contact information, including address, in the
``Notify Party'' field.);
(7) The estimated scheduled departure date and departure port; and
(8) AES Internal Transaction Number (ITN) or AES Exemption
Statement (per shipment).
Under proposed 19 CFR 4.63(b), CBP would require the remainder of
advance data to be transmitted two hours prior to loading the vessel
for departure to a foreign port or for a foreign port by way of other
domestic ports. That data, along with the initial filing data,
comprises the vessel electronic export manifest data, containing all
additional data elements to be described as export manifest
transportation data, cargo data, electronic export information, and
empty container data.
E. Export Manifest Transportation Data
In proposed 19 CFR 4.63(e), the following lists of data elements
display CBP's proposed mandatory, conditional, and optional export
manifest transportation data elements.\5\
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\5\ Certain data elements identified with an asterisk require
lower-level data elements to be completed per the Electronic Export
Manifest Implementation Guidelines.
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1. Mandatory Elements
Proposed 19 CFR 4.63(e)(1) sets forth the mandatory export manifest
transportation data elements that would be required in all
circumstances, and are as follows:
(1) Mode of transportation data (containerized vessel cargo or non-
containerized vessel cargo);
(2) Vessel Country Code (International Organization for
Standardization (ISO) country code);
(3) Vessel Name;
(4) Voyage Number;
(5) Port of Departure *;
(6) Port of Unlading;
(7) Date of Departure;
(8) Bill of Lading type (Master, House or Simple);
(9) Vessel Code (International Maritime Organization (IMO) code);
(10) The vessel carrier identification SCAC code (The unique
Standard Carrier Alpha Code assigned for each carrier in the National
Motor Freight Traffic Association, Inc., Directory of Standard Multi-
Modal Carrier and Tariff Agent Codes; see Sec. 4.7a(c)(2)(iii) of this
chapter.);
(11) Container information *;
(12) Load Status (Empty or Loaded); and
(13) Place carrier took possession of merchandise or empty
container.
2. Conditional Element
As provided in proposed section 4.63(e)(2), the seal number(s)
constitutes
[[Page 6084]]
conditional transportation data and must be transmitted by the outbound
vessel carrier when applicable. The seal numbers must be provided for
all seals affixed to containers to the extent that CBP's data system
can accept this information (for example, if a container has more than
two seals, and only two seal numbers can be accepted through the system
per container, electronic presentation of two of these seal numbers for
the container would be considered as constituting full compliance with
this data element).
3. Optional Elements
Proposed section 4.63(e)(3) lists optional data elements that may
be provided by the eligible party transmitting transportation data, and
are as follows:
(1) Marks and Numbers;
(2) Number of house Bills of Lading; and/or
(3) Country of Ultimate Destination.
F. Export Manifest Cargo Data
For proposed rule section 4.63(f), the following list of data
elements displays CBP's proposed mandatory, conditional, and optional
export manifest cargo data elements. The mandatory elements must be
transmitted and may be transmitted by any eligible party described
above. If the information below has already been transmitted in the
initial filing, the filer does not need to transmit it again unless
there are updates or changes.
1. Mandatory Elements
Proposed 19 CFR 4.63(f)(1) sets forth the mandatory export manifest
cargo data elements that would be required in all circumstances, and
are as follows:
(1) Shipper name and address (For empty containers, the shipper may
be the carrier from whom the outbound vessel carrier received the empty
container to transport.);
(2) Consignee name and address (For empty containers, the consignee
may be the carrier to whom the outbound vessel carrier is transporting
the empty container.);
(3) Port of Lading;
(4) Bill of Lading numbers;
(5) Bill of Lading type (Master, House, or Simple);
(6) Cargo description;
2. Conditional Elements
Proposed 19 CFR 4.63(f)(2) sets forth the conditional export
manifest cargo data elements that would be required when applicable,
and are as follows:
(1) In-bond number and type or in-bond house bill number;
(2) Mexican Pedimento (only for cargo exported to Mexico);
(3) Notify Party name and address;
(4) Chemical Abstract Service (CAS) Registry Number;
(5) Additional Party Details;
(6) 6-character Hazmat Code (UN (for United Nations Number) or NA
(North American Number) and the corresponding 4-digit identification
number assigned to the hazardous material must be provided).
3. Optional Elements
Proposed section 4.63(f)(3) lists optional data elements that may
be provided by the eligible party transmitting cargo data, and are as
follows:
(1) Secondary Notify Party SCAC; and
(2) Vehicle Identification Number (VIN).
G. Electronic Export Manifest Holds and Do-Not-Load Instructions
Once the outbound vessel carrier or other trade member
electronically transmits the export manifest empty container,
transportation, and cargo data to CBP via ACE, CBP would validate or if
necessary, notify the responsible party of any holds under proposed
sections 4.63(g) and (h). The process was designed to issue two
different types of holds, a 2H Documentation hold and a 1H Enforcement
hold. The party that transmitted the vessel export manifest data to CBP
is responsible for responding to any holds issued upon CBP review of
that data. A 2H Documentation hold notifies the party that transmitted
the export manifest data of missing data elements or invalid
information that the party would need to revise or correct.
Electronic data transmission would allow CBP to use its ATS for all
exported cargo in the sea environment and the integrated system would
conduct the majority of risk assessment, screening and review of the
data, limiting the time burden to CBP officers to conduct manual review
of such data. The submitting party must then work with CBP to provide
the appropriate information, address issues or answer questions to
release any hold(s). Until the hold(s) are released, that cargo cannot
be loaded onto the vessel. CBP anticipates that when export manifest
data is provided within the required deadlines of this proposed rule
there should be very few if any instances where CBP issues a hold after
cargo is loaded onto the vessel. However, if a hold is issued after
loading the cargo or container onto the vessel, the outbound vessel may
not depart or transport that cargo or container until the responsible
party resolves all holds or that cargo is unloaded from the vessel.
CBP officers would manually review all export manifest data
transmissions for which holds are issued for additional or corrected
information. A Do-Not-Load or hold may be issued where CBP officers
would conduct cargo examinations if necessary prior to loading the
cargo or container onto the vessel. CBP anticipates that obtaining this
export manifest data through the integrated system would help CBP work
with outbound vessel carriers and other parties to address almost all
outstanding issues resulting from CBP review before loading the cargo
onto a vessel attempting to depart the United States. This would
significantly reduce the instances where issues would be addressed
after the cargo is loaded onto the vessel and would minimize requests
for cargo returns or discharges at second U.S. ports and any other
potential delays resulting from a CBP officer's examination of cargo in
those scenarios.
CBP retains the enforcement discretion to assess penalties and/or
claims for liquidated damages when a violation occurs. Any party that
violates the requirements for data transmission as described above in
this proposed rule is subject to pay liquidated damages of $5,000 for
each violation and up to a maximum of $100,000 per departure.
Although there is the possibility for enforcement action,
compliance is CBP's goal and CBP aspires to work alongside outbound
vessel carriers and other trade members to ensure that trade members
provide the proper data in a timely manner, so that CBP can properly
review the data, conduct risk assessment to identify high-risk
shipments and enforce U.S. export laws and regulations as to U.S.
exports in the sea environment.
H. Technical Amendments to 19 CFR Part 4
CBP proposes to amend 19 CFR 4.61(a) to account for the electronic
transmission of Vessel Entrance or Clearance Statement, CBP Form 1300,
and CBP's response via ACE. In accordance with such an amendment, CBP
further seeks to amend sections 4.61(b) and 4.61(c) to add in the
electronic equivalent of Vessel Entrance or Clearance Statement, CBP
Form 1300, and electronic receipt of required electronic vessel
manifest information.
CBP also proposes 19 CFR 4.63 to be amended for a more inclusive
heading of EEM and what is required in advance of export, specifically,
``Electronic information for vessel conveyance and cargo required in
advance of export; Electronic Export Manifest (EEM); Electronic Export
Information (EEI).'' CBP's proposed amendment includes
[[Page 6085]]
the general requirement in section (a) to address the electronic
equivalent of the Vessel Entrance or Clearance Statement, CBP Form
1300, and type of information that is required; from whom it is
required; the time in which the information is required; and whether
examinations, Do-Not-Load or Hold instructions need to be addressed. No
vessel would be cleared directly for a foreign port, or for a foreign
port by way of another domestic port (see Sec. 4.87(b)), unless CBP
receives from the outbound vessel carrier a Vessel Entrance of
Clearance Statement, CBP Form 1300, or its electronic equivalent.
CBP must also receive from the outbound vessel carrier, or other
eligible filer as specified in paragraph (c), electronic information
concerning the vessel and its cargo, as enumerated in paragraphs (d),
(e), and (f) of this section. CBP proposes to remove 19 CFR 4.76 as the
procedures and responsibilities are outdated and lack specificity and
the Sea Carrier's Module is no longer being used by carriers. The
timing, programming system, and message format have all been updated in
the proposed new regulations and replaced with the EEM.
I. Proposed Amendments to Availability of Information
CBP proposes to amend 19 CFR 103.31 (Information on vessel
manifests and summary statistical reports, disclosure to members of the
press). Section 103.31 sets forth limited access to information on
outward vessel manifests to accredited members of the press and the
public. Currently, ``only the name and address of the shipper, general
character of the cargo, number of packages and gross weight, name of
vessel or carrier, port of exit, port of destination, and country of
destination may be copied and published. However, if the Secretary of
the Treasury makes an affirmative finding on a shipment-by-shipment
basis that disclosure of the above information is likely to pose a
threat of personal injury or property damage, that information shall
not be disclosed to the public.'' 19 CFR 103.31(a)(1). Subject to the
confidentiality requirements of 19 U.S.C. 1431 and 19 U.S.C.
1415(a)(3)(G), this proposed amendment will protect the privacy of
business proprietary and any other confidential cargo information
provided to CBP including any personally identifiable information
before access to the manifest is provided to the public. CBP seeks to
expand access to additional data elements listed in 19 CFR 103.31(a)(1)
consistent with what is provided to CBP from the vessel manifests while
maintaining the provisions for confidentiality should confidential
treatment be requested. CBP also proposes to amend sections
103.31(d)(1)(iii) and (d)(2)(iii) to update the physical address for
certification submissions. CBP also proposes to amend section 103.31(e)
to address technology updates recognizing that data sought by the
public will be made available via secure file transfer protocol (SFTP)
in lieu of CD-ROM and that payments for such requests should be made
via wire transfer.\6\
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\6\ Executive Order 14247.
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J. Proposed Amendments to CBP Bond Conditions
As an enforcement tool, CBP also proposes changes to the relevant
bond provisions in 19 CFR 113.62 (basic importation and entry bond), 19
CFR 113.63 (basic custodial bond), and 19 CFR 113.64 (International
carrier bond) to provide CBP with authority to impose liquidated
damages on parties that do not provide the mandatory EEM data in the
manner and in the time frame required. Specifically, CBP proposes 19
CFR 113.62(k)(2) to address electronically provided outbound
information. Section 113.62(k) currently addresses electronic
transmissions for merchandise or cargo which is inbound via air or
truck. CBP also proposes to amend 19 CFR 113.63(g) to add a descriptive
heading for electronic entry and/or advance cargo information
requirements and include advance outbound cargo information provided to
CBP electronically in the manner and in the time period required by law
and regulation. CBP further proposes to amend 19 CFR 113.64(d) to
include outbound information provided electronically by international
carriers in the manner and time period required under law and
regulation.
Additionally, CBP proposes to amend 19 CFR 113.64(e) to include all
transmitting parties other than the carrier who agree to provide
advance electronic information. Finally, CBP proposes to amend 19 CFR
113.64(j) to provide export information including but not limited to
certifications in the manner and time provided by law. At present, the
text of 19 CFR 113.64(j) is obsolete as it refers to processes that
were in existence when Shipper's Export Declarations (SEDs) were in
use. However, SEDs were superseded on October 1, 2008, with the
implementation of the FTR and by the EEI filed in the AES or through
the AESDirect. See 15 CFR 30.1. See also 19 CFR 192.14, regarding
required EEI.
V. Regulatory Analyses
A. Executive Orders 12866, 13563 and 14192
Executive Orders 12866 (Regulatory Planning and Review) and 13563
(Improving Regulation and Regulatory Review) direct agencies to assess
the costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits. Executive Order 13563 emphasizes the importance of
quantifying costs and benefits, reducing costs, harmonizing rules, and
promoting flexibility. Executive Order 14192 (Unleashing Prosperity
Through Deregulation) directs agencies to significantly reduce the
private expenditures required to comply with Federal regulations and
provides that ``any new incremental costs associated with new
regulations shall, to the extent permitted by law, be offset by the
elimination of existing costs associated with at least 10 prior
regulations.''
The Office of Management and Budget (OMB) has not designated this
proposed rule a ``significant regulatory action'' under section 3(f) of
Executive Order 12866. Accordingly, OMB has not reviewed this proposed
rule.
This proposed rule, if finalized as proposed, is expected to be an
Executive Order 14192 deregulatory action.
In summary, CBP expects that from 2015 to 2030 this proposed rule
would result in a combined net cost savings to CBP, outbound vessel
carriers, and other trade members engaging in the export process of
goods departing the United States in the sea environment ranging from
$17.2 million (2023 U.S. dollars) using a three percent discount rate
to $9.3 million (2023 U.S. dollars) using a seven percent discount
rate.
CBP anticipates that this proposed rule would also provide added
benefits from enhanced cargo safety and security measures by improving
compliance and the enforcement of U.S. export laws and regulations on
U.S. exports in the sea environment. The following is the economic
analysis of the potential impacts from this proposed rule.
Purpose, Background and Baseline
CBP's mission includes ensuring cargo security and preventing
smuggling, while enforcing U.S. trade laws and regulations. CBP needs
to obtain timely and sufficient data prior to cargo arriving or
departing the United States via any mode of commercial transportation
in order to review and conduct risk assessment to identify high-risk
shipments and inspect cargo effectively. According to Section 343(a)
[[Page 6086]]
of the Trade Act of 2002, as amended Trade Act (19 U.S.C. 1415), CBP is
authorized to establish regulations that provide for the mandatory
electronic transmission of data by way of a CBP-approved electronic
data interchange before cargo arrives or departs the United States in
all environments (sea, air, rail, and truck). The requirement to submit
manifest data electronically facilitates a more efficient trade process
for all parties involved.
Submitting electronic manifest data (specifically pre-arrival or
pre-departure) significantly increases CBP's ability to identify high-
risk cargo to ensure cargo security and to prevent smuggling. Unlike
export manifest data submitted on paper, export manifest data
transmitted electronically to CBP allows CBP to use its Automated
Targeting System (ATS) to target all export manifest data transmitted.
The transmission of electronic manifest data also enhances the
coordination and data exchange between Federal agencies overseeing
cargo arriving and departing the United States.
Additionally, electronic manifest data improves CBP's review
process, allowing CBP to make better examination decisions while also
reducing the time required to make such decisions. Trade members would
also experience efficiencies through quicker CBP examination decisions
and improved communication between CBP and trade members. Resolving CBP
requests for additional information to clarify or correct data
electronically transmitted would be more efficient in an electronic
environment.
Prior to this proposed rule, CBP does not require the electronic
transmission of vessel cargo manifest data for all export cargo to CBP
prior to departure in the sea environment. Although outbound vessel
carriers provide some export manifest data to CBP electronically, the
data elements are not always provided prior to departure and CBP
believes that the data elements are insufficient for CBP to conduct
proper cargo safety and security review for goods departing United
States in the sea environment. Current regulations \7\ require the U.S.
Principal Party in Interest (USPPI), the USPPI's agent, or the
authorized filing agent of the Foreign Principal Party (FPPI) to
transmit EEI to CBP through the ACE. This EEI should be provided to CBP
and verified no later than 24 hours prior to the cargo departing the
U.S. port of export. CBP acknowledges that, although this pre-departure
data is helpful, the information provided by EEI falls short of the
data CBP requires to conduct proper cargo security screening while
enforcing U.S. export control laws and regulations.
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\7\ See 19 CFR 192.14.
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The required transmission of EEI is also subject to certain
exemptions as established by the Census regulations,\8\ which generally
only require EEI transmission on merchandise valued greater than $2,500
and do not require the transmission of EEI for shipments destined for
Canada, unless the shipment contains certain controlled items under the
Export Administration Regulations (EAR) or is being transshipped to
another destination.\9\
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\8\ See 15 CFR part 30.
\9\ See 15 CFR 30.36.
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Therefore, numerous cargo and shipments of merchandise of smaller
value departing the United States by sea do not have EEI transmitted
for CBP to review. The lack of detailed electronic manifest data for
some shipments and the unavailability of electronic cargo data on lower
value merchandise shipments impedes CBP's enforcement efforts on sea
exports. During the export process, the outbound vessel carrier may not
load cargo without first receiving from the USPPI or its authorized
agent either the related EEI filing citation, covering all cargo for
which the EEI is required, or exemption legends covering cargo for
which EEI need not be filed. The outbound vessel carrier must then
annotate the carrier's outward manifest, waybill, or other export
documentation with the applicable Automated Export System proof of
filing, post-departure, downtime, exclusion, or exemption citations,
conforming to the approved data formats found in the FTR.\10\
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\10\ See 15 CFR part 30.
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CBP also obtains additional vessel export cargo data, mostly in
paper form, as per existing CBP regulations,\11\ which require the
submission of certain manifest data to CBP for vessels shipping goods
out of the United States to any foreign area, whether directly or by
way of other domestic ports. CBP requires outbound vessel carriers to
complete and submit to CBP a Vessel Entrance or Clearance Statement on
CBP Form 1300 for the outbound vessel. Additionally, the outbound
vessel carriers or agent are required to file a Cargo Declaration
Outward with Commercial Form (CBP Form 1302A) and submit this paper
form to CBP at each port from which clearance is being sought.\12\
Along with the CBP Form 1302A, outbound vessel carriers or agent must
provide to CBP complete vessel cargo manifest with a compilation of all
bills of lading or equivalent commercial documents relating to all
cargo within the manifest.\13\ CBP allows some qualifying outbound
vessel carriers to participate in the Vessel Transportation Module
(VTM) which provides the carriers the ability to transmit this export
manifest data to CBP electronically via the ACE in lieu of the paper
CBP Form 1302A, but very few outbound vessel carriers actively provide
this information electronically.
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\11\ See 19 CFR 4.61, 19 CFR 4.63, 19 CFR 4.75 & 19 CFR 4.76.
\12\ CBP Form 1302A consists of the following data elements; 1)
Name of Ship, (2) Port where report is made (not required by United
States), (3) Nationality of ship, (4) Name of master, (5) Port of
loading, (6) Port of discharge, (7) Bill of Lading number, (8) Marks
and Numbers, Container Numbers, Seal Numbers, (9) Number and kind of
packages; Description of goods, (10) Gross Weight (lb. or kg.) or
Measurements (per HTS), (11) Internal Transaction Number (ITN), or
AES Exemption Statement.
\13\ Bills of lading are documents that essentially act as a
receipt and contract for transporting cargo and goods and come from
a number of sources depending on which party is privy to the
information and the timing of when the information is provided. A
house bill contains cargo details and is issued directly by a NVOCC,
or freight forwarder. This bill acts as the receipt of goods that
are going to be exported and provides export manifest data at its
lowest level. Outbound vessel carriers can issue a Master bill which
includes all other export manifest information such as
transportation details for the vessel which could cover any number
of house bills that are included on that vessel. Additionally, in
the case where a NVOCC or freight forwarder is not involved in the
shipment transaction and the outbound vessel carrier has the
specific cargo data available the outbound vessel carrier can issue
a simple bill which is similar to a house bill and contains cargo
details at the lowest bill level of export manifest data.
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Although CBP requires the submission of some export manifest data
in the sea environment, prior to this proposed rule most of this data
is not provided electronically or prior to the vessel departing the
United States. Current regulations allow for the CBP Form 1302A, the
vessel export manifest, and supporting documents to be submitted in a
complete or incomplete form at the time of departure, depending on the
foreign country to which the cargo is being shipped.\14\ Conditional on
the outbound vessel carrier holding a proper bond, the outbound vessel
carrier has four business days post departure to submit the completed
vessel export manifest data for shipments to foreign countries, seven
business days post arrival for shipments to Puerto Rico, and seven
business days post departure for shipments to other U.S.
territories.\15\ Additionally, if the
[[Page 6087]]
outbound vessel carrier is approved to submit the outbound vessel
manifest information electronically and participates in the VTM, then
the carrier is provided ten calendar days post departure to provide the
completed vessel export manifest data to CBP for shipments to foreign
countries.\16\ The provisions of 15 CFR 30.5(c) authorize USPPIs that
provide EEI data for vessel exports to transmit the completed EEI up to
five calendar days after the date of export. Given the existing
regulations prior to this proposed rule, outbound vessel carriers do
not provide export manifest data electronically for most exports before
loading cargo or prior to the vessel departing the United States. This
lack of detailed pre-departure electronic vessel export manifest data
impedes CBP's ability to effectively conduct cargo safety, and security
assessments and to prevent smuggling for cargo departing the United
States in the sea environment.
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\14\ See 19 CFR 4.75.
\15\ As per 19 CFR 4.84(c)(2), for shipments from any State or
the District of Columbia to Puerto Rico, a complete manifest or
proper bond shall be filed with CBP within one business day of
arrival in Puerto Rico. As provided in 19 CFR 4.84 (c)(1), for
shipments from any State or the District of Columbia to
noncontiguous territories of the United States other than Puerto
Rico, or from Puerto Rico to any State or the District of Columbia
to any other noncontiguous territory, a complete manifest or proper
bond must be filed with CBP before departure.
\16\ If the destination of the vessel is a foreign port listed
in 19 CFR 4.75(c), the carrier must transmit the completed vessel
export manifest data before the departure of the vessel.
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Prior to this proposed rule, CBP does not typically receive export
manifest data until days after a vessel and cargo depart the U.S. port
of export. In the event that CBP identifies high-risk cargo or a
container that has already been loaded, and the vessel has departed the
U.S. port of export, CBP can issue a request that the outbound vessel
carrier return the cargo or container. When a request for return is
issued by CBP, outbound vessel carriers usually bring the cargo or
container back to the United States after the vessel arrives at the
foreign port and upon the vessel's return to the United States.
Additionally, if the vessel's itinerary stops at a second U.S.
port, CBP can request the outbound vessel carrier to discharge the
cargo or container at that second port. In either scenario, returning a
container from a foreign port or discharging at a second U.S. port
results in significant additional costs to outbound vessel carriers and
trade members. In some instances, when outbound vessel carriers provide
export manifest data four days or more post-departure, outbound vessel
carriers have already delivered the cargo to a foreign port before
submitting export manifest data to CBP or before CBP has the time to
review the data. Many times, CBP does not even review the export
manifest data because even if CBP were to identify a high-risk cargo or
container, the exported cargo is untraceable once it has been released
at a foreign port and outbound vessel carriers are unable to track down
the cargo or container. As a result, in the sea environment, CBP only
reviews a small amount of total exported cargo data prior to departure
or prior to delivery to a foreign port. Ideally, CBP officers would
obtain all export manifest data pre-departure and prior to the cargo
loading onto a vessel. This would allow CBP to conduct its review and
risk assessment on all export cargo prior to loading that cargo or
container onto a vessel or before the vessel departs the United States.
If CBP conducts its review prior to loading the cargo and if it
identifies a high-risk cargo, CBP can prevent the loading of cargo or
containers onto a vessel until CBP can conduct a manual examination.
However, because the majority of export manifest data is provided post-
departure CBP is usually unable to prevent high-risk cargo from being
loaded onto vessels and departing the United States in the sea
environment.
CBP has defined the process described above as the baseline. The
analysis of this proposed rule attempts to measure any incremental
costs, costs savings or benefits compared to the baseline scenario.
The Vessel EEM Test
In order to enhance CBP's efforts to ensure cargo security while
also preventing smuggling and to further implement the Trade Act, CBP
has been working towards developing a new process to require the
transmission of EEM data for all cargo and containers departing the
United States in the sea environment. CBP expects that the transmission
of pre-departure EEM data would help CBP obtain all the necessary
information and data to successfully review and conduct risk assessment
and screening efforts before loading cargo onto vessels at U.S. ports
of export.
In September 2015, CBP introduced a two-year test program, referred
to in the analysis as the Vessel Electronic Export Manifest Test
(vessel EEM test), to determine the feasibility of requiring outbound
vessel carriers or their agents, and non-vessel operating common
carriers (NVOCCs), to provide CBP with pre-departure export manifest
data for vessel exports, electronically via ACE, within a specified
time before cargo departed the United States in the sea
environment.\17\ The vessel EEM test created a single automated export
processing platform for export manifest, commodity, licensing, export
control and export risk assessment. In order for CBP to test the
functionality of this new process, CBP initially limited participation
in the vessel EEM test to nine trade members. CBP limited participation
in the vessel EEM test to parties that had the capability of
transmitting export manifest data to CBP in the acceptable format via
ACE.\18\ During this initial phase of the vessel EEM test, CBP worked
with outbound vessel carriers who agreed to participate and submit
export manifest data electronically to CBP via ACE. CBP requests that
vessel participants continue to submit CBP Form 1302A as they did
before participating in the test so that CBP can capture any
inconsistencies or issues with the electronic transmission of vessel
EEM data to CBP.\19\ The responsibility to provide the proper export
manifest data resides with the outbound vessel carrier regardless of
whether an NVOCC has also submitted manifest data electronically.
During the vessel EEM test, CBP still requires outbound vessel carriers
to submit a Vessel Entry or Clearance Statement on CBP Form 1300, prior
to that vessel's departure from a U.S. port of export.
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\17\ The deadlines and requirements for the transmission of EEI
data, as per current regulations found in 19 CFR 192.14, are not
affected by the vessel EEM test or this proposed rule.
\18\ Prospective participants must have the technical capability
to submit data electronically to CBP and receive response message
sets via Cargo IMP, AIR CAMIR, XML, or Unified XML, and must
successfully complete certification testing with their client
representative. Unified XML may not be immediately available at the
start of the test. However, parties wishing to utilize Unified XML
may be accepted, pending its development and implementation.
\19\ CBP notes that if an outbound vessel carrier was already
providing data to CBP via VTM, those outbound vessel carriers do not
provide the paper CBP Form 1302A to CBP. Additionally, if an
outbound vessel carrier provides data through VTM and then
participates in the vessel EEM, CBP did not require the carrier to
submit both VTM and vessel EEM data.
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During the vessel EEM test, CBP requests that participants transmit
completed vessel export cargo manifest data electronically to CBP via
ACE, at least 24 hours prior to the loading of that cargo or container
onto a vessel. CBP expected that the deadline of 24 hours prior to
loading the cargo onto vessels would provide CBP adequate time to
conduct a proper review of export manifest data to enhance cargo safety
and security measures prior to cargo being loaded and a vessel's
departure. Identifying any high-risk cargo and containers prior to the
loading of cargo onto vessels improves security measures while ensuring
compliance
[[Page 6088]]
with U.S. export laws and minimizes the disruption of the trade process
at the U.S. port of export. Additionally, the deadlines for export
manifest data transmission provide CBP the time to compare the export
manifest data with any EEI submitted by USPPI to further enhance
security measures on cargo departing the United States in the sea
environment.
The vessel EEM test allows participants to provide and revise
export manifest data electronically on a flow basis, whenever the
information becomes available during the export process, before loading
the cargo onto vessels. Transmitting vessel export manifest data
electronically via ACE as requested during the vessel EEM test allows
for the integrated system to conduct a large portion of the review
process using data validations, checks, and risk assessment measures,
prior to the loading of cargo onto vessels. Additionally, upon
transmission of the pre-departure electronic manifest export data, CBP
is able to review information on a flow basis while outbound vessel
carriers or NVOCCs provide updated data throughout the export
transaction process.
The integrated system implemented during the vessel EEM test
improves CBP risk assessment and screening efforts of cargo and
shipments. When outbound vessel carriers or NVOCC's transmit export
manifest data, the integrated system automates most of the review
process and generates holds to notify the outbound vessel carriers or
NVOCCs of outstanding issues with the data provided. Depending on the
issue identified by the integrated system, a different hold is issued
and must be resolved prior to the cargo being loaded onto the vessel.
CBP designed the integrated system in the vessel EEM test to issue two
different types of holds, a 2H Documentation hold and a 1H Enforcement
hold. The party that transmitted the vessel export manifest data to CBP
is responsible for responding to any holds issued upon CBP review of
that data. A 2H Documentation hold notifies the party that transmitted
the export manifest data of missing data elements or invalid
information that the party would need to revise or correct. In the
instance of a 2H Documentation hold, the responsible party must update
the missing or incorrect reference data to release the hold on the
cargo or container. Until CBP releases the hold, the cargo may not be
loaded onto the vessel.
If the integrated system identifies a potential high-risk cargo or
container, then the system automatically generates a 1H Enforcement
hold which requires a CBP officer to conduct a manual review of the
export manifest data transmitted. The integrated system notifies the
party that transmitted the data of the hold and if CBP needs to conduct
further examination of the data transmitted or if a manual examination
is necessary. These holds can also be issued and addressed even if the
cargo has already been loaded onto the vessel. If a 1H Enforcement hold
is issued after loading the cargo onto the vessel and CBP requests to
manually examine cargo, the outbound vessel carrier must coordinate
with the appropriate parties to remove the cargo or container before
departure so CBP officers can manually examine the cargo or container.
If the vessel has already departed the U.S. port of export, the
outbound vessel carrier can return the cargo or container from a
foreign port for CBP to examine or discharge the cargo or container if
the vessel is stopping at a second U.S. port. If a CBP officer
determines during manual review of vessel export manifest data that
cargo or a container contains a potential threat to the vessel and its
vicinity, a Do Not Load (DNL) instruction is issued which prohibits any
party that currently has physical possession of that cargo from moving
that cargo or container.
The electronic transmission of export manifest data in advance
helps CBP review and issue holds before cargo, or a container is loaded
onto the vessel. This facilitates a more efficient export process by
reducing the likelihood of identifying cargo after it has been loaded
or departed from the United States which results in significant return
or discharge costs and potentially results in delays or disruptions to
the vessel's export.
Additionally, CBP is able to use ATS to conduct risk assessment
while reviewing more export manifest data than what is reviewed under
the baseline scenario.
In the initial phase of the test, CBP asked trade members that
agreed to participate in the vessel EEM test to provide information
electronically to CBP via ACE for a total of 27 mandatory and
conditional data elements 24 hours prior to the cargo being loaded onto
vessels. CBP determined that the selected data elements would provide
CBP the information necessary to conduct proper cargo safety and
security enforcement.
Outbound vessel carriers were already providing these data elements
to CBP prior to the test but in most cases they were submitted through
various paper forms, usually post departure. The data elements selected
by CBP during this initial phase of the vessel EEM test consisted of
the following (all data elements are mandatory unless otherwise noted):
(1) Mode of transportation (containerized vessel cargo or non-
containerized vessel cargo)
(2) Name of ship or vessel
(3) Nationality of ship
(4) Name of master
(5) Port of loading
(6) Port of discharge
(7) Bill of Lading number (Master and House)
(8) Bill of Lading type (Master, House, Simple or Sub)
(9) Number of house Bills of Lading
(10) Marks and Numbers (conditional)
(11) Container Numbers (conditional)
(12) Seal Numbers (conditional)
(13) Number and kind of packages
(14) Description of goods
(15) Gross Weight (lb. or kg.) or Measurements (per HTSUS)
(16) Shipper name and address
(17) Consignee name and address
(18) Notify Party name and address (conditional)
(19) Country of Ultimate Destination
(20) In-bond number (conditional)
(21) Internal Transaction Number (ITN) or AES Exemption Statement (per
shipment)
(22) Split Shipment Indicator (Yes/No)
(23) Portion of split shipment (e.g., 1 of 10, 4 of 10, 5 of 10--Final.
etc.) (conditional)
(24) Hazmat Indicator (Yes/No)
(25) UN Number (conditional) \20\
---------------------------------------------------------------------------
\20\ If the hazmat indicator is yes, the four-digit United
Nations (UN) Number assigned to the hazardous material must be
provided.
---------------------------------------------------------------------------
(26) Chemical Abstract Service (CAS) Registry Number (conditional)
(27) Vehicle Identification Number or Product Identification Number
(conditional) \21\
---------------------------------------------------------------------------
\21\ For shipments of used vehicles, the VIN must be reported,
or for used vehicles that do not have a VIN, the Product
Identification Number must be reported.
After an initial two-year period, CBP determined that in the
initial phase of the vessel EEM test it had been feasible and
functional for participating parties to provide export manifest data
electronically to CBP. CBP extended the vessel EEM test and expanded
the test making it available to all outbound vessel carriers and other
associated parties (beyond the initial nine-party limit) meeting
eligibility criteria so that CBP could continue evaluating the
feasibility and functionality of requesting electronic vessel export
manifest data prior to cargo being loaded.\22\ After the first two
years of the
[[Page 6089]]
vessel EEM test, CBP consulted with the Commercial Customs Operations
Advisory Committee (COAC) and it was determined that outbound vessel
carriers and NVOCCs may not have access to certain export manifest data
elements requested by CBP 24 hours prior to loading of cargo onto a
vessel. Therefore, CBP modified the filing condition for four of the
export manifest data elements for the vessel EEM test from mandatory to
optional.
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\22\ Limited to those parties able to electronically transmit
manifest data in the identified acceptable format. Prospective ACE
Export Manifest for Vessel Cargo Test participants must have the
technical capability to electronically submit data to CBP and
receive response message via Ocean CAMIR, ANSI X12, or Unified XML
and must successfully complete certification testing with their
client representative. Once parties have applied to participate,
they must complete a test phase to determine if the data
transmission is in the required readable format. Applicants will be
notified once they have successfully completed testing and are
permitted to participate fully in the test. In selecting
participants, CBP will take into consideration the order in which
the applications are received.
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At the start of the vessel EEM test extension, CBP separated export
manifest data elements into three categories--mandatory, conditional,
and optional data--and requested that participants provide export
manifest data for all cargo at least 24 hours prior to loading of the
cargo. CBP also requested that the following data elements be provided
electronically via ACE for all cargo preparing for departure from the
United States in the sea environment. Unless otherwise noted, data
elements are mandatory.
(1) Mode of transportation (containerized vessel cargo or non-
containerized vessel cargo)
(2) Name of ship or vessel
(3) Nationality of ship
(4) Name of master (optional)
(5) Port of loading
(6) Port of discharge
(7) Bill of Lading number (Master and House)
(8) Bill of Lading type (Master, House, Simple or Sub)
(9) Number of house Bills of Lading (optional)
(10) Marks and Numbers (conditional)
(11) Container Numbers (conditional)
(12) Seal Numbers (conditional)
(13) Number and kind of packages
(14) Description of goods
(15) Gross Weight (lb. or kg.) or Measurements (per HTSUS)
(16) Shipper name and address
(17) Consignee name and address
(18) Notify Party name and address (conditional)
(19) Country of Ultimate Destination
(20) In-bond number (conditional)
(21) Internal Transaction Number (ITN) or AES Exemption Statement (per
shipment)
(22) Split Shipment Indicator (Yes/No) (optional)
(23) Portion of split shipment (e.g., 1 of 10, 4 of 10, 5 of 10--Final,
etc.) (optional)
(24) Hazmat Indicator (Yes/No)
(25) UN Number (conditional) \23\
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\23\ If the hazmat indicator is yes, then UN (for United Nations
Number) or NA (North American Number) and the corresponding 4-digit
identification number assigned to the hazardous material must be
provided.
---------------------------------------------------------------------------
(26) Chemical Abstract Service (CAS) Registry Number (conditional)
(27) Vehicle Identification Number or Product Identification Number
(conditional) \24\
---------------------------------------------------------------------------
\24\ For shipments of used vehicles, the VIN must be reported,
or for used vehicles that do not have a VIN, the Product
Identification Number must be reported.
CBP has continuously extended the vessel EEM test to gauge the
functionality and feasibility of implementing the requirement of
providing EEM data to CBP prior to a vessel's departure. CBP believes
that the vessel EEM test has been successful and CBP is proposing to
make the electronic transmission of pre-departure export manifest data
mandatory for all cargo departing the United States in the sea
environment.
The Vessel EEM Regulatory Program
This proposed rule would require the transmission of EEM data for
all cargo prior to loading onto vessels departing the United States and
require that outbound vessel carriers or their agents present data
related to the CBP Form 1300 no later than two hours prior to departure
of the vessel from the United States. This proposed rule would also
eliminate the use of the paper CBP Form 1302A, encourage the transition
to electronic equivalent of the paper CBP Form 1300 for vessel
clearance and prohibit the providing of vessel export manifest data
post departure. CBP has been testing the electronic transmission
process for vessel export manifest data by conducting the vessel EEM
test since 2015 and CBP anticipates that requiring the transmission of
EEM data prior to loading of cargo onto a vessel would improve CBP's
ability to conduct proper cargo security enforcement and prevent
smuggling while minimizing the disruption to the flow of goods during
the export process in the sea environment. This proposed rule would use
ACE to obtain the data, conduct risk assessment, screen EEM data for
cargo being loaded onto vessels preparing to depart the United States,
and allow for the trade member which most likely has the direct
information on cargo to provide the export manifest data to CBP.
In the initial vessel EEM test, CBP requested export manifest
information for 27 data elements 24 hours prior to the loading of cargo
or container onto the vessel. The experience CBP gained during the test
helped revise deadlines for when participants should transmit data and
which data elements should be mandatory, conditional, optional, and
unnecessary. Of the original data elements put forth in the initial
vessel EEM test CBP renamed or reconfigured twelve of these initial
data elements in this proposed rule.\25\ CBP determined that the
following data elements in the vessel EEM test were not necessary and
CBP did not include these vessel export manifest data elements in the
vessel EEM. CBP lists the data elements below along with their original
data element number during the vessel EEM test in parentheses.
---------------------------------------------------------------------------
\25\ CBP will also introduce new data elements. `Estimated
Scheduled Departure Time and Departure Port' will be added as a
mandatory data element in the initial filing. The data element
`Departure Date' is added as a mandatory data element for
transportation data. `Vessel carrier SCAC code' and `Place Carrier
Took Possession of Merchandise or Empty Container' were two more
data elements CBP introduced as mandatory in transportation data.
CBP also introduced the `Mexican Pedimento' data element for cargo
exports to Mexico as a conditional cargo data. Additionally, CBP
added `Additional Party Details' as a cargo data element. CBP also
introduced `Secondary Notify Party SCAC' data element as an optional
cargo data element. CBP discusses the difference between initial
filing, transportation and cargo data in more detail later in this
section of the analysis.
<bullet> Name of master (optional) (4)
<bullet> Split Shipment Indicator (Yes/No) (22)
<bullet> Portion of split shipment (i.e., 1 of 4, 4 of 10, 5 of 10--
Final, etc.) (23)
<bullet> Product Identification Number (noting that Vehicle
Identification Number has been included) (27)
Based on the experience CBP obtained from the vessel EEM test, in
this proposed rule CBP is adjusting the data elements and deadlines for
transmission. For this proposed rule, CBP grouped the vessel EEM data
elements based on the deadlines for submission of data and which trade
member likely has the correct information to provide to the export
manifest data element. As discussed earlier, CBP expanded the vessel
EEM test to any eligible party in 2017, and in this proposed rule CBP
anticipates that any party with direct knowledge of the export data
element can participate in the program and provide export manifest data
to CBP via ACE prior to loading cargo onto the vessel. This proposed
rule would allow outbound vessel carriers, or their agents, USPPIs,
FPPIs, customs brokers, ABI filers, NVOCCs, freight forwarders, or any
other party with direct knowledge of the export manifest data element
to provide
[[Page 6090]]
specific pre-departure export manifest data to CBP using CBP's ACE as a
data transmission tool. This proposed rule also mandates that the party
transmitting any specific export manifest data must hold or obtain a
qualifying bond.\26\ Additionally, any party that transmits data
elements electronically to CBP for vessel EEM is responsible for
addressing and responding to any questions, issues, instructions or
holds that arise during CBP review of that specific data.
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\26\ CBP acknowledges that any of the following bonds would be
appropriate, CBP Basic Importation and Entry Bond containing the
provisions found in section 113.62 of this chapter, a Basic
Custodial Bond containing the provisions found in 113.63 of this
chapter, or an International Carrier Bond containing the provisions
found in section 113.64 of this chapter.
---------------------------------------------------------------------------
To improve CBP's risk assessment and screening efforts using pre-
departure export manifest data, this proposed rule would require an
initial filing of eight mandatory data elements, which must be
transmitted to CBP by any eligible party as early as practicable but no
later than 24 hours prior to loading cargo on the outbound conveyances
attempting to depart from the U.S. port of export. Unlike in the vessel
EEM test where CBP requested all 27 data elements to be transmitted 24
hours prior to the cargo being loaded, in this proposed rule CBP
identified just eight data elements critical to CBP in conducting
preliminary risk assessment and screening efforts. These would be
transmitted by any eligible party as early as practicable but no later
than 24 hours prior to the cargo being loaded on the outbound
conveyance departing the United States. CBP refers to these mandatory
eight data elements as the initial filing. All other vessel export
manifest data elements, including data on empty containers, should be
transmitted to CBP no later than two hours prior to loading of cargo
onto a vessel preparing to depart the United States.
CBP acknowledges that for most outbound vessel carriers the
position of these time containing the provisions found in 113.63 of
this chapter, or an International Carrier Bond containing the
provisions found in section 113.64 of this chapter. Requirements for
transmitting export manifest data are a significant change compared to
the baseline where for the majority of export cargo and containers
outbound vessel carriers were providing the completed export manifest
data four or more days post departure.
These deadlines could impose additional time burdens and costs to
outbound vessel carriers and other trade members to provide the
appropriate export information earlier in the export process compared
to the baseline. CBP notes that although most export manifest data is
submitted post departure, CBP does require complete export manifest
data prior to departure depending on the country to which the cargo is
being shipped. Additionally, a number of countries have their own
import manifest data requirements enforcing import manifest data to be
submitted 24 hours prior to a vessel departing a U.S. port of export to
a foreign port. These import manifest data elements are similar to the
export manifest data elements. Therefore, most vessel departures
exporting goods from the United States require either import manifest
data or complete export manifest data prior to departure.
Additionally, outbound vessel carriers and other parties
transmitting export manifest data can provide data and information on a
flow basis whenever it becomes available to help facilitate CBP's
review of the export data and the overall export process. CBP
anticipates that these deadlines would provide CBP adequate time to
perform proper risk assessment and identify cargo and containers for
examination prior to loading of cargo and containers onto vessels. CBP
expects this would enhance security measures while minimizing the
disruption to the flow of goods during the export process and reduce
the number of requests for return and discharges of high-risk cargo and
containers. Upon transmission of the initial filing, CBP would validate
or notify the responsible trade member of any holds or DNLs. The trade
member that transmits the data would be responsible for providing
answers and updates on the data or information to CBP but the ultimate
responsibility to load, hold, or not load merchandise falls on the
outbound vessel carrier.
For the mandatory initial filing required as early as practicable
but no later than 24 hours prior to cargo loading onto vessels, CBP
selected seven data elements from the vessel EEM test and added one new
data element, Estimated Scheduled Departure Date and Departure Port.
Additionally, six of the initial filing data elements had their
descriptions revised in this proposed rule to provide additional
clarity on the data required. The initial filing data elements required
in this proposed rule include the following:
(1) Bill of Lading number;
(2) The numbers and quantities of the cargo laden aboard the
vessel as contained in the carrier's bill of lading, either master
or house, as applicable (this means the quantity of the lowest
external packaging unit; containers and pallets do not constitute
acceptable information; for example, a container holding 10 pallets
with 200 cartons should be described as 200 cartons);
(3) Total Weight of cargo expressed in pounds or kilograms;
(4) A precise cargo description (or the Harmonized Tariff
Schedule (HTSUS) number(s) to the 6-digit level under which the
cargo is classified if that information is received from the
shipper) and weight of the cargo; or, for a sealed container, the
shipper's declared description and weight of the cargo (generic
descriptions, specifically those such as ``FAK'' [``freight of all
kinds''], ``general cargo,'' ``bulk cargo'' and ``STC'' [``said to
contain''] are not acceptable);
(5) The shipper's complete name and address, or identification
number, from the bill(s) of lading (for each house bill in a
consolidated shipment);
(6) The complete name and address of the consignee, or
identification number, from the bill(s) of lading (The consignee is
the party to whom the cargo would be delivered in the foreign
country. However, in the case of cargo shipped ``to order of [a
named party],'' the ``to order'' party must be named as the
consignee; and if there is any other commercial party listed in the
bill of lading for delivery or contact purposes, the carrier must
also report this other commercial party's identity and contact
information including address in the ``Notify Party'' field.);
(7) The estimated scheduled departure date and departure port; and
(8) AES Exemption Statement (per shipment).
In this proposed rule, CBP groups the remaining vessel EEM data
elements based on CBP's understanding of which trade member may have
the most direct knowledge of the export manifest data element. CBP
categorized these remaining data elements as export manifest
transportation data, export manifest cargo data, and empty container
data.\27\ According to this proposed rule, the outbound vessel carrier
or its agent would be responsible for transmitting to CBP the data and
information on any empty container data and export manifest
transportation data. Outbound vessel carriers or agents must transmit
these data elements electronically to CBP no later than two hours prior
to the loading of the cargo or container onto the vessel. The outbound
vessel carrier or its agent would also be responsible for providing the
vessel clearance statement CBP Form 1300 or its electronic equivalent
to CBP two hours prior to a vessel's departure from the United States.
The
[[Page 6091]]
following list of data elements displays CBP's proposed mandatory and
conditional export manifest transportation data elements:
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\27\ CBP would continue to require; CBP Form 1300 be submitted
before a vessel can be cleared for departure from the United States,
these data elements for the CBP Form 1300 are not affected by this
proposed rule, but this proposed rule would authorize the use of CBP
Form 1300 electronic equivalent.
Mandatory Elements
(1) Mode of transportation data (containerized vessel cargo or non-
containerized vessel cargo)
(2) Vessel Country Code International Organization for Standardization
(ISO)
(3) Vessel Name
(4) Voyage Number
(5) Port of Departure
(6) Port of Unlading
(7) Date of Departure
(8) Bill of Lading (Master, House or Simple)
(9) Vessel Code (International Maritime Organization (IMO))
(10) The vessel carrier identification SCAC code \28\
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\28\ The unique Standard Carrier Alpha Code assigned for each
carrier in the National Motor Freight Traffic Association, Inc.,
Directory of Standard Multi-Modal Carrier and Tariff Agent Codes;
see Sec. 4.7a(c)(2)(iii) of this chapter.
---------------------------------------------------------------------------
(11) Container information
(12) Load Status (Empty or Loaded)
(13) Place carrier took possession of merchandise or empty container
Conditional Elements
(1) Seal number(s) \29\
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\29\ The seal numbers must be provided for all seals affixed to
containers to the extent that CBP's data system can accept this
information (for example, if a container has more than two seals,
and only two seal numbers can be accepted through the system per
container, electronic presentation of two of these seal numbers for
the container would be considered as constituting full compliance
with this data element).
---------------------------------------------------------------------------
Optional Elements
(1) Marks and Numbers
(2) Number of house Bills of Lading
(3) Country of Ultimate Destination
CBP provides additional flexibility in this proposed rule by
allowing any eligible party with the most direct information to provide
export manifest cargo data electronically to CBP two hours prior to
loading that cargo or container onto a vessel preparing to depart the
United States. Any other trade member (USPPIs, FPPIs, customs
brokers, ABI filer, NVOCCs, freight forwarders or any other party
with direct knowledge of the export data element) transmitting export
manifest cargo data must be in possession of a bond to provide the
export manifest cargo data and information to CBP. However, the
outbound vessel carrier or its agent may also elect to transmit the
mandatory manifest cargo data and in the case that no other party
elects to provide the required manifest cargo data, it is the outbound
vessel carrier's responsibility to provide this manifest cargo data to
CBP. The following data elements comprise the CBP requested export
manifest cargo data for vessel EEM in this proposed rule. CBP notes
that if the data was already provided during the initial filing it does
not need to be transmitted again unless there were updates or changes
made to the data.
Mandatory Elements
(1) Shipper name and address \30\
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\30\ For empty containers, the shipper may be the carrier from
whom the outbound vessel carrier received the empty container to
transport.
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(2) Consignee name and address \31\
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\31\ For empty containers, the consignee may be the carrier to
whom the outbound vessel carrier is transporting the empty
container.
---------------------------------------------------------------------------
(3) Port of lading
(4) Bill of Lading numbers
(5) Bill of Lading type (Master, House, or Simple)
(6) Cargo description
(7) Hazardous Materials
Conditional Elements
(1) In-bond number and type or in-bond house bill number
(2) Mexican Pedimento (only for cargo exported to Mexico)
(3) Notify Party name and address
(4) Chemical Abstract Service (CAS) Registry Number
(5) Additional Party Details
(6) 6-character Hazmat Code \32\
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\32\ Including the UN (for United Nations Number) or NA (North
American Number) and the corresponding 4-digit identification number
assigned to the hazardous material must be provided.
---------------------------------------------------------------------------
Optional Elements
(1) Secondary Notify Party SCAC
(2) Vehicle Identification Number (VIN)
CBP provides a mapping and comparison of the vessel EEM test data
elements and the data elements for the vessel EEM in Table 2 below.
There were four data elements that were not carried forward from the
test:
(1) Name of master
(2) Number and kind of packages
(3) Split shipment indicator (optional)
(4) Portion of split shipment
There will also be six new data elements introduced in the vessel
EEM that do not map back to the test data elements:
(1) Voyage Number
(2) Mexican Pedimento
(3) Additional Party Details (conditional)
(4) Secondary Notify Party SCAC (optional)
(5) Place carrier took possession of merchandise or empty container
(6) Date of Departure
BILLING CODE 9111-14-P
[[Page 6092]]
[GRAPHIC] [TIFF OMITTED] TP10FE26.007
BILLING CODE 9111-14-C
Once the outbound vessel carrier or other trade member
electronically transmits the export manifest empty container,
transportation, and cargo data to CBP via ACE, CBP would validate, or
if necessary, notify the responsible party of any holds.
Transmitting this data electronically would allow CBP to use its
ATS for all exported cargo in the sea environment and the integrated
system would conduct the majority of risk assessment, screening, and
review of the data limiting the time burden to CBP officers
[[Page 6093]]
to conduct manual review of such data. The responsible party must then
work with CBP to provide the appropriate information, address issues,
or answer questions to release any holds. Until the hold(s) are
released, that cargo cannot be loaded onto the vessel. CBP anticipates
that when export manifest data is provided within the required
deadlines of this proposed rule there should be very few if any
instances where CBP issues a hold after cargo is loaded onto the
vessel. However, if a hold is issued after loading the cargo or
container onto the vessel, the outbound vessel may not depart or
transport that cargo or container until the responsible party resolves
all holds or that cargo is unloaded from the vessel.
CBP officers would manually review all export manifest data
transmissions for which 1H Enforcement holds are issued and CBP
officers would conduct cargo examinations where necessary prior to
loading the cargo or container onto the vessel. CBP anticipates that
obtaining this export manifest data through the integrated system would
help CBP work with outbound vessel carriers and other parties to
address almost all outstanding issues resulting from CBP review before
loading the cargo onto a vessel attempting to depart the United States.
This would significantly reduce the instances where issues would be
addressed after the cargo is loaded onto the vessel and would minimize
requests for cargo returns or discharges at second U.S. ports and any
other potential delays resulting from a CBP officer's examination of
cargo in those scenarios.
As an enforcement tool, this proposed rule provides CBP with
authority to impose penalties and/or claims for liquidated damages on
parties that do not provide the mandatory EEM data in the manner and in
the time frame required. CBP retains the enforcement discretion to
assess penalties and/or claims for liquidated damages when a violation
occurs. Any party that violates the requirements for data transmission
as described above in this proposed rule is subject to pay liquidated
damages of $5,000 for each violation and up to a maximum of $100,000
per departure. Although there is the possibility for monetary
enforcement action, compliance is CBP's goal and CBP aspires to work
alongside outbound vessel carriers and other trade members to ensure
that trade members provide the proper data in a timely manner, so that
CBP can properly review the data, conduct risk assessment to identify
high-risk shipments, and enforce U.S. export laws and regulations on
U.S. exports in the sea environment.\33\
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\33\ Information provided by CBP's Cargo and Conveyance
Security, Office of Field Operations, subject matter expert on June
21, 2022. For EEM programs, while there is a possibility of
penalties when a violation occurs, compliance is the goal and CBP
will use flexible enforcement to encourage compliance while giving
sufficient time for industry partners to acclimate to the new
process.
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Time Periods of Analysis
This analysis primarily focuses on the potential outcomes of this
proposed rule after it would be in effect, but it also includes a
discussion of the impacts during the vessel EEM test program that were
in place before the proposed rule. The costs, cost savings, and
benefits of this vessel EEM test are sunk (already incurred and cannot
be recovered) for the purposes of deciding whether to proceed with the
proposed rule, but they are important for understanding the full costs
and benefits of implementing CBP's vessel EEM program as a whole. To
give the reader a full view of the effects of implementation of CBP's
vessel EEM program through the entire span of time, CBP analyzes the
effects of implementing vessel EEM collection over two time periods,
comparing each time period to the baseline scenario that existed prior
to the vessel EEM test. First, CBP analyzes the effects from the vessel
EEM test used for the collection of pre-departure manifest data on sea
exports during the pilot period, fiscal years 2015-2025.\34\ Second,
CBP analyzes the effects of the proposed rule mandating the
transmission of EEM data in the sea environment during the five-year
regulatory period, beginning in fiscal year 2026 and ending in fiscal
year 2030. For the regulatory period, CBP estimates, to the extent data
is available, the total projected costs, cost savings and benefits to
the Federal government, outbound vessel carriers and other trade
members as a result of requiring the transmission of vessel EEM data
for vessels departing the United States, compared to the baseline
scenario. In the analysis for this proposed rule, CBP defines the pilot
period as fiscal years 2015-2025 and the regulatory period as fiscal
years 2026-2030. Additionally, all references to years are for fiscal
years unless otherwise noted.
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\34\ CBP anticipates that the test would still be active until
fiscal year 2026 when the proposed rule would be finalized; however,
at the time this analysis was written CBP only had actual data up
through fiscal year 2023. Therefore, CBP provides estimates, not
actual data, for the fiscal years 2024 and 2025 in this analysis.
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Population Affected by the Proposed Rule
CBP expects that this proposed rule would affect a number of
different parties. Because the vessel EEM test was limited in scope,
CBP anticipates that effects were largely experienced by a few outbound
vessel carriers and CBP during the pilot period. Additionally, CBP
notes that although the initial vessel EEM test was made available to
no more than a total of nine outbound vessel carriers and other trade
members and during the test extension CBP removed the participant
limitations as the test was extended to all eligible parties, in 2022
only two outbound vessel carriers actively participated in the vessel
EEM test. However, by the end of 2023 there were 15 outbound vessel
carriers actively or intermittently participating in the vessel EEM
test. As the vessel EEM program expands during the regulatory period,
CBP expects the expansion to have broader effects to all outbound
vessel carriers, some other trade members (such as USPPIs, FPPIs,
customs brokers, ABI filer, NVOCCs, freight forwarders or any other
party with direct knowledge of the export data elements), CBP, and
other government agencies that oversee U.S. exports in the sea
environment. CBP expects that this proposed rule would affect all
outbound vessel carrier companies currently participating in exporting
cargo from the United States in the sea environment.\35\ This proposed
rule could result in effects to a large number of other trade members
specifically in the case they elect to provide electronic manifest
cargo data directly to CBP via ACE. CBP estimates that approximately
455 other trade members would elect to provide vessel EEM data directly
to CBP as a result of this proposed rule.\36\ CBP expects that this
proposed rule would also improve the facilitation of the export process
at all U.S. seaports currently conducting the exportation of goods from
the United States and would improve communication between CBP and trade
members and CBP and other government agencies that oversee the
enforcement of U.S. export laws and regulations.
---------------------------------------------------------------------------
\35\ Information provided by CBP's Cargo and Conveyance
Security, Office of Field Operations, subject matter expert on June
13, 2023.
\36\ Information provided by CBP's Cargo and Conveyance
Security, Office of Field Operations, subject matter expert on June
13, 2023. CBP expects there will be approximately 500 trade members
that will directly participate in vessel EEM. CBP used internal data
to identify approximately 45 outbound vessel carrier companies that
will participate which suggests around 455 other trade members would
directly participate in vessel EEM.
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[[Page 6094]]
Vessel EEM Test Data and Vessel Export Projections
CBP was able to identify the actual number of electronic export
manifest data transmissions by participating outbound vessel carriers
during the test from 2016-2023.\37\ During that time frame, vessel EEM
test participants provided a total of 2,768,815 export manifest data
transmissions representing approximately 6.7 percent of all estimated
export manifest data submissions.\38\ Because CBP's pilot period
includes future years, CBP does not have actual test data available for
2024 and 2025. To address this issue CBP provides estimates for the
final two years of the pilot period. To estimate the number of vessel
EEM test data transmissions that would occur in 2024 and 2025 CBP
assumes that the number of transmissions would stay relatively the same
as in 2023.\39\ Therefore, CBP expects that in both 2024 and 2025 there
would be approximately 749,113 test data transmissions.
---------------------------------------------------------------------------
\37\ Pilot period vessel EEM data transmission information
provided by CBP's Cargo and Conveyance Security, Office of Field
Operations subject matter expert on December 13, 2022 and December
20, 2023. Data obtained from CBP's ACE.
\38\ CBP estimated the number of total export manifest data
submissions from 2016-2023 by assuming one CBP Form 1302A represents
one export manifest data transmission. Additionally, CBP assumes
that the total number of export manifest data submissions include
the estimated number of outbound non-empty containers (CBP assumes
one CBP Form 1302A per non-empty container), other vessel departures
(CBP assumes one CBP Form 1302A per other vessel departure).
\39\ In 2023 CBP received 749,113 vessel EEM test data
transmissions, data obtained by CBP's Cargo and Conveyance Security,
Office of Field Operations subject matter expert on December 20,
2023. Data obtained from CBP's ACE.
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In 2022, there were only two active outbound vessel carriers
participating in the vessel EEM test. CBP notes that prior to the
vessel EEM test both participants provided export manifest data to CBP
electronically using VTM. However, by the end of 2023 the number of
vessel EEM test participants increased to 15 outbound vessel carriers
and none of these new participants was providing data using VTM prior
to this test. Because CBP expects there would be different effects on
vessel EEM test participants based on how they provided data to CBP
during the baseline scenario (paper CBP Form 1302A or VTM), CBP
includes data during the pilot period on VTM data transmissions and
estimates how many vessel EEM data transmissions were conducted by
prior VTM participants. CBP identified the actual number of VTM data
transmissions submitted to CBP from 2016-2023 was around 3,806,162.\40\
To estimate the number of VTM data transmissions that would occur in
2024 and 2025, CBP assumes that the number of transmissions would stay
relatively the same as in 2023. Therefore, CBP expects that in both
2024 and 2025 there would be approximately 188,811 data
transmissions.\41\
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\40\ Data provided by CBP's Cargo and Conveyance Security,
Office of Field Operations subject matter expert on December 13,
2022 and December 20, 2023. Data obtained from CBP's ACE.
\41\ CBP notes that as of 2023 there was only one outbound
vessel carrier actively participating in providing export manifest
data to CBP via VTM; CBP assumes that this carrier will continue to
participate in VTM in 2024 and 2025 and CBP uses the number of
transmissions in 2023 (118,811) as an estimate for future years in
the pilot period.
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Because there were only two outbound vessel carriers participating
in the vessel EEM test until 2023, and both of the participants were
prior VTM participants, CBP assumes that all vessel EEM test data
transmissions prior to 2023 were made by VTM participants. For the year
2023, CBP obtained data showing that the two initial vessel EEM test
participants conducted around 527,938 vessel EEM test data
transmissions.\42\ CBP assumes these two participants will submit the
same number of vessel EEM test data transmissions in 2024 and 2025 and
all other vessel EEM test transmissions will be submitted by non-VTM
participants. CBP estimates that during the entire pilot period there
will be approximately 4.2 million vessel EEM test data transmissions,
where 3.6 million test data transmissions will be made by VTM
participants and 0.6 million will be submitted by non-VTM participants.
Table 3 below displays actual number of vessel EEM test, VTM data
transmissions, the expected number of vessel EEM test transmissions
made by VTM participants, and the expected number of transmissions made
by non-VTM participants from 2016-2023, and the estimated numbers for
2024 and 2025.
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\42\ Data provided by CBP's Cargo and Conveyance Security,
Office of Field Operations subject matter expert on December 20,
2023. Data obtained from CBP's ACE.
[GRAPHIC] [TIFF OMITTED] TP10FE26.008
[[Page 6095]]
Outside of the limited vessel EEM test and VTM data provided by
participants, all other export manifest data (excluding data for EEI
requirements) submitted by outbound vessel carriers are on paper forms.
CBP assumes that the number of future EEM data transmissions would be
equal to the number of CBP Form 1302As that would be submitted absent
this proposed rule. Unfortunately, CBP does not track the number of CBP
Form 1302As that are submitted annually. Therefore, it was not feasible
for CBP to provide an exact count for how many CBP Form 1302As (and in
turn electronic export manifest data transmissions) would be submitted
once this rule is implemented. To estimate the number of export
manifest data transmissions that would be submitted during the
regulatory period, CBP used data from the United States Army Corps of
Engineers Waterborne Commerce Statistics Center (WCSC). The WCSC
publishes data on total foreign vessel departures by vessel type and
total outbound non-empty container traffic exported out of the United
States.\43\ WCSC provides vessel departure numbers for different
categories of vessels that actively engage in exporting goods and cargo
out of the United States, including self-propelled dry bulk cargo
vessels (including container vessels), tankers, dry cargo barges,
liquid barges, towboats and cranes (other vessels).
---------------------------------------------------------------------------
\43\ United States Army Corps of Engineers Waterborne Commerce
Statistics Center Waterborne Commerce Reports, `U.S. Waterborne
Container Traffic by Port/Waterway in 2022 <a href="https://usace.contentdm.oclc.org/digital/collection/p16021coll2/id/1445">https://usace.contentdm.oclc.org/digital/collection/p16021coll2/id/1445</a> and
`Waterborne Cargo and Trips Data Files 2022' <a href="https://usace.contentdm.oclc.org/utils/getfile/collection/p16021coll2/id/14579">https://usace.contentdm.oclc.org/utils/getfile/collection/p16021coll2/id/14579</a>. Accessed July 2024. WCSC provides export non-empty container
volume based in twenty-foot equivalent units (TEUs). TEUs is a unit
of measurement used to determine cargo capacity for container ships
and terminals and is the standard form of measurement for containers
carried by container ships.
---------------------------------------------------------------------------
Unfortunately, the most recent data available from WCSC on outbound
container traffic and vessel departures is for 2022.\44\ Therefore, CBP
provides estimates for the number of vessel departures for 2023, 2024
and 2025. CBP does not expect every vessel departure would require a
paper CBP Form 1302A in the baseline scenario. CBP anticipates the only
vessel categories provided by WCSC that would require the submission of
a CBP Form 1302A (or EEM data transmission in the regulatory period)
would be the self- propelled dry cargo vessels, tankers, dry cargo
barges and liquid barges.<SUP>45 46</SUP>
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\44\ CBP used WCSC data from 2016-2022. CBP did not obtain WCSC
data for 2015 because vessel EEM test participation did not start
until 2016 despite the pilot period starting in 2015 because of CBP
IT development costs.
\45\ CBP assumes that vessel departures for categories of
towboats and cranes (other vessels) are typically not carrying cargo
and would not require the submission of a CBP Form 1302A and
therefore are excluded from the estimate for the number of future
vessel EEM data transmissions.
\46\ For the remainer of this analysis CBP groups the following
vessel categories (tankers, dry cargo barges and liquid barges) and
refers to them as `other vessels'.
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According to WCSC, from 2016-2022 there were a total of 400,954
self-propelled dry cargo vessel departures to a foreign country or on
average 57,279 annually. To estimate the number of self-propelled dry
cargo vessel departures in 2023, 2024 and 2025, CBP multiplied the CAGR
for these types of vessels from 2016-2020 (1.31%) by the previous
year's total estimated departures.\47\ According to CBP's estimates
from 2016-2025 there will be approximately 621,350 self-propelled dry
cargo vessel departures or on average 62,135 departures annually.
According to WCSC data, from 2016-2022 there were a total of 139,882
other vessel departures or on average 19,983 annually. CBP used the
CAGR for other vessel departures from 2016-2022 (5.66%) to project the
number of other vessel departures in 2023, 2024, and 2025.\48\ CBP
estimates that from 2016-2025 there will be around 224,318 other vessel
departures or on average 22,432 departures annually.
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\47\ CBP excluded departures in 2021 and 2022 from the CAGR
calculation because there were significant increases resulting from
the COVID-19 pandemic and CBP expects the change in departures for
these vessels to return to the slower growth seen before 2021.
\48\ CBP excluded the departures in 2021 and 2022 from the CAGR
calculation because there was a significant increase resulting from
the COVID-19 pandemic in 2021 which CBP anticipates may have also
skewed the 2022 departure numbers. CBP expects the change in
departures for other vessels to return to the slower growth seen
before 2021.
---------------------------------------------------------------------------
During the regulatory period CBP assumes that vessel departures
should continue to increase at relatively the same rate in future years
as estimated during the final three years of the pilot period.
Therefore, to estimate the number of self-propelled dry cargo vessel
departures and other vessel departures in the regulatory period CBP
used the same CAGR for each vessel category (1.31% for self-propelled
dry cargo, and 5.66% for other vessels) that was used for pilot period
years 2023-2025. According to CBP's estimates during the regulatory
period there would be around 386,930 self-propelled dry cargo vessel
departures or on average 77,386 annually. Additionally, CBP expects
there would be around 175,741 other vessel departures or on average
35,148 annually. Table 4 below displays WCSC data for total vessel
departures (less towboats and cranes), self-propelled dry cargo vessels
and other vessels from 2016-2022 and CBP's estimates for these types of
vessel departures for the final three years of the pilot period and
during the five-year regulatory period.
[[Page 6096]]
[GRAPHIC] [TIFF OMITTED] TP10FE26.009
For this analysis CBP assumes that other vessels departures would
only require a single CBP Form 1302A and therefore CBP assumes that
every single other vessel departure would require a single export
manifest data transmission in the regulatory period.<SUP>49 50</SUP>
However, CBP does not know how many CBP Form 1302As and in turn export
manifest data transmissions would be submitted for each self-propelled
dry cargo vessel departure. Some of the vessels within this category
are container vessels which can carry a very large number of
containers. Additionally, each container could potentially require the
submission of one or many CBP Form 1302As. To estimate how many CBP
Form 1302As are submitted by these vessels, CBP obtained data on
outbound non-empty container traffic from WCSC from 2016-2022.\51\ CBP
assumes that for every outbound non-empty container, outbound vessel
carriers would provide one export data submission and every export
manifest transmission received during the vessel EEM test represents
one non-empty container.\52\ CBP used previous year data from WCSC to
estimate the number of non-empty containers departing the United States
in future years. CBP estimates that the CAGR of non-empty containers
between 2016-2019 was approximately 1.56%.\53\ CBP multiplied this CAGR
by the number of non-empty containers that departed the United States
in 2022 to estimate the number of non-empty containers that would
depart in 2023. CBP used the CAGR to estimate the number of non-empty
containers for each additional future year using the CAGR and the
estimate in the prior year for the number of non-empty containers.
According to CBP's estimates during the regulatory period there would
be around 60 million non-empty containers departing the United States
in the sea environment or on average 12 million annually. Table 5
displays the actual number of non-empty containers from
[[Page 6097]]
2016-2022 obtained from WCSC and CBP's estimates for the number of non-
empty containers for years 2023-2030.
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\49\ Information provided by CBP's Cargo and Conveyance
Security, Office of Field Operations, subject matter expert on May
17, 2023.
\50\ Other vessels can carry a variety of goods and cargo,
however when compared to container vessels the quantity of different
products is typically much smaller, considering each container could
have hundreds of different types of goods and cargo. CBP expects
that the number of different products on other vessels is fewer than
container vessels and, in most cases, it is likely that all cargo on
other vessels could be entered onto a single CBP Form 1302A. To
account for the difference CBP makes the assumption that each
container represents one CBP Form 1302A and every other vessel
departure represents one CBP Form 1302A.
\51\ CBP used WCSC data from 2016-2022. CBP did not obtain WCSC
data for 2015 because vessel EEM test participation did not start
until 2016 despite the pilot period starting in 2015 because of CBP
IT development costs.
\52\ Information provided by CBP's Cargo and Conveyance
Security, Office of Field Operations, subject matter expert on May
17, 2023. CBP assumes on average there would be one CBP Form 1302A
per non- empty container. CBP acknowledges that one non-empty
container could require multiple CBP Form 1302As depending on the
content inside the container and it is possible for one CBP Form
1302A to represent more than one container. Additionally, CBP Form
1302A must be submitted at every U.S. port of export that the vessel
departs. For the matter of simplicity CBP assumes that one export
manifest data transmission represents one non-empty cargo container
and likewise one CBP Form 1302A.
\53\ CBP excluded data from years 2020-2022 in the CAGR
calculation for the number of future non-empty containers because
CBP believes including these years would introduce a downward bias
on future year estimates. CBP expects that the number of non-empty
containers departing the United States should continue to increase
gradually in future years and therefore believes that the CAGR from
2016-2019 is a better estimate.
[GRAPHIC] [TIFF OMITTED] TP10FE26.010
To estimate the number of vessel EEM data transmissions that would
be submitted during the regulatory period, CBP added the estimated
number of non-empty containers departing the United States each year
(Table 4) and the estimated number of other vessel departures (Table
3). According to CBP's estimates, during the regulatory period outbound
vessel carriers and other trade members would transmit around 60
million vessel EEM data transmissions or on average 12 million
annually. During the baseline scenario CBP already had participants in
the VTM and those participants did not submit paper CBP Form 1302As.
CBP estimates that the number of paper CBP Form 1302As submitted during
the pilot period by subtracting the number of VTM data transmissions
and vessel EEM test data transmissions submitted by VTM participants
(see Table 3) from the number of non-empty containers and other vessel
departures during each year. During the pilot period CBP expects that
outbound vessel carriers will submit around 108 million paper CBP Form
1302As, or on average 10.8 million annually.
CBP assumes that during the regulatory period VTM data
transmissions and vessel EEM data transmissions by VTM participants
would remain relatively constant to the numbers provided in 2023 (see
Table 3). Because this proposed rule would require that all outbound
vessel carriers provide EEM data, there would not be any VTM data
transmissions during the regulatory period. CBP includes the annual VTM
data transmissions from 2023-2025 (188,881) in the number of vessel EEM
data transmissions by VTM participants. CBP expects that absent this
proposed rule outbound vessel carriers would provide 3.5 million VTM
transmissions to CBP during the regulatory period or on average 716,749
annually. Because VTM participants do not submit paper CBP Form 1302As,
CBP adjusted the total number of vessel EEM data transmissions in the
regulatory period to estimate the number of paper CBP 1302As that would
be eliminated as a result of this proposed rule. CBP subtracted the
estimated number of VTM transmissions by the estimated number of total
vessel EEM data transmissions to estimate the number of paper CBP Form
1302As that would be eliminated as a result of this proposed rule
during each year of the regulatory period. CBP expects that this
proposed rule would eliminate approximately 56.6 million paper CBP Form
1302As or on average 11.3 million annually. Table 6 below displays
CBP's regulatory period estimates for non-empty containers departing
the United States in the sea environment, the number of other vessel
departures, total vessel EEM data transmissions, EEM data transmissions
from previous VTM participants and estimated number of eliminated paper
CBP Form 1302As.
BILLING CODE 9111-14-P
[[Page 6098]]
[GRAPHIC] [TIFF OMITTED] TP10FE26.011
BILLING CODE 9111-14-C
Pilot Period (2016-2025)
Overall, the vessel EEM test was meant to test the functionality of
providing export manifest data elements electronically to CBP through
ACE and to test the feasibility of outbound vessel carriers providing
those data elements prior to loading cargo onto vessels attempting to
depart the United States. Unfortunately, the test participants do not
provide these data elements within the time frames CBP requested during
the vessel EEM test. Instead of providing vessel EEM test data prior to
loading cargo onto vessels, the test participants typically provide the
vessel EEM test export manifest data elements to CBP within the time
frames discussed during the baseline scenario, no later than four days
post departure from the U.S. port of export. Therefore, during the
pilot period CBP officers are not reviewing any vessel EEM test export
manifest data these participants transmitted pre-departure and all CBP
review would be conducted post departure. Additionally, CBP and
participating outbound vessel carriers do not review or resolve any 1H
Enforcement holds or 2H Documentation holds, automatically issued
through the vessel EEM test system when conducting risk assessment and
screening export manifest data, during the pilot period. CBP does not
expect that there will be any time burdens or costs associated with
reviewing or resolving these holds during the pilot period and because
export manifest data is not being provided prior to loading cargo onto
vessels CBP does not expect that the vessel EEM test will limit the
number of requests for a cargo or container to be returned or
discharged at a second U.S. port.
Costs
CBP Costs
CBP expects that both CBP and outbound vessel carriers that
participate in the vessel EEM test will incur costs during the pilot
period. Because the vessel EEM test operates through ACE, CBP did not
have to develop an entirely new system. CBP estimates that the one-time
development costs for creating the vessel EEM test tool and
implementing it into ACE was approximately $911,916.\54\ Beyond the
systems costs from developing the vessel EEM test, CBP also experiences
ongoing system operation and maintenance costs every year during the
pilot period. CBP estimates ongoing maintenance of the vessel EEM test
system will cost CBP a total of 1.5 million during the pilot period or
on average $138,117
[[Page 6099]]
annually.\55\ Table 7 below displays CBP's systems costs related to the
development and maintenance of the vessel EEM test during the pilot
period. CBP estimates that total CBP system costs during the pilot
period will be approximately $2.4 million or on average $221,018
annually.
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\54\ Information provided by CBP's Cargo and Conveyance
Security, Office of Field Operations subject matter expert on
December 13, 2022.
\55\ Information provided by CBP's Cargo and Conveyance
Security, Office of Field Operations subject matter expert on
December 13, 2022. CBP estimated the annual amounts for 2023-2024 by
assuming costs increased by 1.9% annually, the same growth rate CBP
assumed in the actual year values.
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BILLING CODE 9111-14-P
[GRAPHIC] [TIFF OMITTED] TP10FE26.012
BILLING CODE 9111-14-C
Trade Member IT Costs
CBP estimates that participating outbound vessel carriers also
incur costs during the pilot period. Outbound vessel carriers that
participate in the vessel EEM test also incur costs to adjust their IT
systems to meet the requirements of the vessel EEM test and provide
export manifest data directly to CBP via ACE. Many outbound vessel
carrier companies that engage in exporting cargo out of the United
States also engage in importing cargo into the United States. Similar
to many other countries, the United States requires electronic
transmission of import manifest data, and therefore outbound vessel
carrier companies already have IT systems to meet these import
requirements. The export manifest data requirements for the vessel EEM
test at export are very similar to data requirements for advance
electronic import manifest data required during the import process.
Outbound vessel carriers have already developed systems for those
electronic processes at import and, as such, the vessel EEM test
participants stated that they did not need to develop new systems but
merely adjusted existing IT systems.\56\ As vessel carriers already
have systems to interface with ACE for import filings, among other
things, systems needed to be modified rather than developed. Trade
members also stated that the IT system costs to participate in the
vessel EEM test would be largely operation and maintenance costs
associated with the new export portion of their IT system.\57\ The cost
of adjusting and maintaining IT systems to support providing export
manifest data electronically to CBP can vary depending on the outbound
vessel carrier or trade member. Therefore, CBP provides a range of
estimates for the IT system costs to the average vessel EEM participant
during the pilot period.
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\56\ Data was obtained from feedback from Trade members on the
potential costs to internal IT systems to support providing EEM to
CBP via ACE. Data was obtained in December 2022 and February 2023.
\57\ Data was obtained from feedback from Trade members on the
potential costs to internal IT systems to support providing EEM to
CBP via ACE. Data was obtained in December 2022 and February 2023.
---------------------------------------------------------------------------
CBP anticipates that the annual IT systems costs required to
participate in the vessel EEM test could range from approximately
$10,000 to $60,000 each year.<SUP>58 59</SUP> CBP used the midpoint
within the range--$35,000--as CBP's primary estimate for annual IT
systems costs to the average outbound vessel carrier participating in
the vessel EEM test. As range estimates, CBP used a low estimate of
$10,000 and a high estimate of $60,000 for the annual IT systems costs
to each vessel EEM test participant each year. According to CBP's
primary estimate the vessel EEM test participants will incur
approximately $2,065,000 in total costs to adjust and maintain their IT
systems for providing EEM data to CBP during the pilot period. CBP's
alternate low and high estimates show that IT systems total costs to
the participating outbound vessel carriers could be between $590,000
and $3,540,000 during the pilot period. Table 8 displays CBP's range of
cost estimates for total annual IT systems costs to outbound vessel
carrier participants during the pilot period. CBP requests comments
from outbound vessel carriers and trade members on the costs associated
with adjusting information technology systems to provide vessel EEM
test data to CBP.
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\58\ Data was obtained from feedback from Trade members on the
potential costs to internal IT systems to support providing EEM to
CBP via ACE. Data was obtained in December 2022 and February 2023.
\59\ CBP notes that the two vessel EEM test participants in 2022
were already providing VTM electronic export data to CBP prior to
participation in the vessel EEM test thus merely transitioning from
one form of electronic data transmission to another. Therefore, CBP
does not know if IT systems costs to an outbound vessel carrier
would be greater than the high range estimate of $60,000 annually if
a carrier transitions from paper export manifest data to electronic
data transmission as required by the vessel EEM test.
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[[Page 6100]]
[GRAPHIC] [TIFF OMITTED] TP10FE26.013
Trade Member Opportunity Costs
In addition to costs associated with adjusting and maintaining
information technology systems, CBP expects that some vessel EEM test
participants face time burdens and opportunity costs when providing the
vessel EEM test data to CBP. As mentioned earlier, as part of the
vessel EEM test CBP requests that test participants provide the paper
CBP Form 1302A along with the vessel EEM test data so that CBP can
capture any inconsistencies or issues with the electronic transmission
of vessel EEM test data to CBP. Because VTM participants are not
required to provide paper CBP Form 1302As in addition to their VTM
transmission, only vessel EEM test participants that were not
previously VTM participants will incur this additional time burden when
submitting both vessel EEM test data and paper CBP Form 1302As.\60\ In
Table 3, CBP provides an estimate for the number of vessel EEM test
data transmissions that will be submitted by non-VTM participants
(663,525) during the pilot period. CBP anticipates that during the
pilot period, vessel EEM test participants that were not previously VTM
participants incur a time burden of approximately 1.71 minutes (0.028
hours) per vessel EEM data transmission.\61\ CBP multiplied the number
of non-VTM participant EEM test data transmissions each year by the
average time burden per transmission to estimate the time burden to
vessel EEM test participants during each year of the pilot period. CBP
estimates that these vessel EEM test participants will incur a time
burden of around 18,889 hours. CBP calculated the costs to these
outbound vessel carriers in the pilot period, by multiplying the total
time burden (18,889) hours by the average hourly loaded rate for vessel
operators ($72.17). CBP calculated this loaded wage rate by first
multiplying the Bureau of Labor Statistics' (BLS) 2022 median hourly
wage rate for Captains, Mates, and Pilots of Water Vessels ($45.77),
which CBP assumes<SUP>62 63</SUP> CBP anticipates that these outbound
vessel carriers will incur time burden costs of approximately
$1,363,245 or on average $454,415 annually during the pilot period.
Table 9 displays CBP's time burden and cost estimates to non-VTM
participants while providing the vessel EEM test data to CBP during the
pilot period.
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\60\ Information provided by CBP's Cargo and Conveyance
Security, Office of Field Operations, subject matter expert on March
15, 2023.
\61\ CBP calculations based on data obtained from feedback and
discussions with Trade members on the potential costs associated
with providing EEM to CBP via ACE. Data was obtained in December
2022 and February 2023. CBP obtained time burden hours associated
with providing vessel EEM data to CBP over the course of several
months and the number of data transmissions provided. CBP used this
data to estimate the average time burden associated with a single
vessel EEM data transmission.
\62\ CBP calculated this loaded wage rate by first multiplying
the Bureau of Labor Statistics' (BLS) 2022 median hourly wage rate
for Captains, Mates, and Pilots of Water Vessels ($45.77), which CBP
assumes best represents the wage for captains, mates, and pilots of
water vessels, by the ratio of BLS' Q4 2022 total compensation to
wages and salaries for Transportation and Material Moving
occupations (1.4736), the assumed occupational group for captains,
mates, and pilots of water vessels, to account for non-salary
employee benefits.
Source of median wage rate: U.S. Bureau of Labor Statistics.
Occupational Employment and Wage Statistics, ``May 2022 National
Occupational Employment and Wage Estimates United States.'' Updated
April 25, 2023. Available at <a href="https://www.bls.gov/oes/2022/may/oes_nat.htm">https://www.bls.gov/oes/2022/may/oes_nat.htm</a>. Accessed August 21, 2023. The total compensation to
wages and salaries ratio is equal to the total compensation cost per
hour worked for Transportation and Material Moving occupations
($33.51) divided by the wages and salaries cost per hour worked for
the same occupation category ($22.74). See ``Table 2. Employer Costs
for Employee Compensation for civilian workers by occupational and
industry group.'' Bureau of Labor Statistics, ``Employer Costs for
Employee Compensation--December 2022.'' Released March 17, 2023.
Available at <a href="https://www.bls.gov/news.release/archives/ecec_03172023.pdf">https://www.bls.gov/news.release/archives/ecec_03172023.pdf</a>. Accessed August 29, 2023.
\63\ CBP assumes an annual growth rate of 7.01% based on the
prior year's change in the implicit price deflator, published by the
Bureau of Economic Analysis. To adjust to 2023 dollars, multiply by
the 2021-2022 percent change in the Bureau of Economic Analysis's
Implicit Price Deflators for Gross Domestic Product (127.224/
118.895-1). See ``Table 1.1.9. Implicit Price Deflators for Gross
Domestic Product,'' Line 1 Gross Domestic Product, annual. Bureau of
Economic Analysis. Updated August 30, 2023.
Available at <a href="https://apps.bea.gov/iTable/?reqid=19&step=2&isuri=1&categories=survey#eyJhcHBpZCI6MTksInN0ZXBzIjpbMSwyLDMsM10sImRhdGEiOltbImNhdGVnb3JpZXMiLCJTdXJ2ZXkiXSxbIk5JUEFfVGFibGVfTGlzdCIsIjEzIl0sWyJGaXJzdF9ZZWFyIiwiMjAxNiJdLFsiTGFzdF9ZZWFyIiwiMjAyMyJdLFsiU2NhbGUiLCIwIl0sWyJTZXJpZXMiLCJBIl1dfQ==">https://apps.bea.gov/iTable/?reqid=19&step=2&isuri=1&categories=survey#eyJhcHBpZCI6MTksInN0ZXBzIjpbMSwyLDMsM10sImRhdGEiOltbImNhdGVnb3JpZXMiLCJTdXJ2ZXkiXSxbIk5JUEFfVGFibGVfTGlzdCIsIjEzIl0sWyJGaXJzdF9ZZWFyIiwiMjAxNiJdLFsiTGFzdF9ZZWFyIiwiMjAyMyJdLFsiU2NhbGUiLCIwIl0sWyJTZXJpZXMiLCJBIl1dfQ==</a>. Accessed
September 20, 2023.
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[[Page 6101]]
[GRAPHIC] [TIFF OMITTED] TP10FE26.014
Total Costs
CBP estimates that during the pilot period total costs from this
proposed rule will be around $5,859,444 or on average $532,677 per
year. CBP anticipates CBP will incur total costs of around $2,431,199
and outbound vessel carriers participating in the vessel EEM test will
incur costs around $3,428,245. Table 10 below shows CBP's estimates for
the total costs from this proposed rule during the pilot period.
[GRAPHIC] [TIFF OMITTED] TP10FE26.015
Cost Savings
CBP expects that some vessel EEM test participants may have
experienced some time and cost savings during the pilot period as a
result of participating in the vessel EEM test. As stated earlier, two
vessel EEM test participants provided export data to CBP through VTM
prior to participating in the vessel EEM test. Unlike the VTM, the
vessel EEM test does not require outbound vessel carriers to submit and
match booking data with the export manifest data.\64\ Therefore, when
transitioning from VTM to the vessel EEM test, these outbound vessel
carriers experienced some time savings from no longer providing and
matching booking data with the export manifest data. CBP
[[Page 6102]]
estimates that this resulted in a time savings to these outbound vessel
carrier participants of approximately 30 minutes (0.5 hours) on average
per departing vessel.\65\ During the pilot period CBP obtained the
number of export manifest data transmissions from outbound vessel
carriers participating in the vessel EEM test but CBP does not have
exact data available for the number of vessel departures that
experience this potential time savings during the pilot period.
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\64\ If a vessel carrier participated in the vessel EEM test and
was providing data via VTM prior to participating in the test, such
a vessel carrier would not be required to provide VTM data when
providing EEM data.
\65\ This estimate was based on data obtained from feedback from
Trade members on the potential costs to internal IT systems to
support providing EEM to CBP via ACE. Data was obtained in December
2022 and February 2023.
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To estimate the number of vessel departures that experience this
time savings as a result of the vessel EEM test, CBP used data from the
WCSC. Outbound vessel carriers participating in the vessel EEM test
that are expected to experience a times savings largely provide export
data for dry cargo onboard large container vessels. WCSC data does not
provide the level of detail necessary to identify the specific number
of container vessels within the self-propelled dry cargo vessels
classification. Therefore, CBP used WCSC data on outbound container
volume and the number of self-propelled dry cargo vessel departures to
calculate an estimate for the number of vessel departures that
experienced a time savings during the pilot period.\66\ According to
CBP's estimates from 2016 to 2025, there will be a total of 621,350
self-propelled dry cargo vessel trips and a total of 116,356,689
outbound non-empty containers. CBP assumes that for every outbound non-
empty container, outbound vessel carriers would provide one export data
submission. CBP assumes that these non-empty containers are equally
distributed across all self-propelled dry cargo vessel departures.
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\66\ For vessel departures WCSC provides data in six categories,
self-propelled dry, tanker, towboat, dry cargo barge, liquid barge,
crane (other). Unfortunately, WCSC does not provide departure data
on container vessels only. Therefore, due to this lack of data CBP
assumes that the self-propelled dry vessel category is the
appropriate classification for large container vessels; however,
there are other vessels included in the total count for self-
propelled dry cargo vessels beyond large container vessels.
Additionally, WCSC most recent data is only available through 2022,
therefore CBP projected the number of self-propelled dry vessel
departures and number of non-empty containers above in Tables 4 and
5 above.
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CBP calculated the ratio of total outbound containers that will
have vessel EEM test data transmitted by VTM participants during the
vessel EEM test by dividing the total expected outbound non-containers
departing the United States (see Table 5) by the expected number of
export manifest data transmissions that will be provided by previous
VTM participants during the vessel EEM test (see Table 3) for each year
of the pilot period. Overall, CBP estimates that in total from 2016-
2025 these vessel EEM test participants transmitted around 3.1% of all
expected export manifest data submissions. To determine an estimate for
the number of vessel departures affected by the vessel EEM test during
the pilot period, CBP multiplied the ratio of total export manifest
data transmitted by VTM participants during the vessel EEM test by the
estimated number of self-propelled dry cargo vessel departures each
year (see Table 4). During the pilot period CBP estimates that, as a
result of the vessel EEM test, previous VTM participants experienced a
time savings from 20,167 vessel departures or on average 2,017 vessel
departures annually.\67\ Table 11 displays CBP's estimates for total
EEM data transmitted to the vessel EEM test, data from WCSC for non-
empty container traffic and self- propelled dry cargo vessel departures
for 2016-2022, along with CBP's estimates for 2023, 2024, and 2025 and
CBP's estimate for the number of vessel EEM test departures that will
experience a time savings from no longer having to match booking data.
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\67\ Because participation did not begin until 2016, the annual
average for vessel departures is based on 2016-2022 departures.
[GRAPHIC] [TIFF OMITTED] TP10FE26.016
To calculate the potential time savings experienced by these
outbound vessel carriers during vessel EEM test participation, CBP
multiplied the expected number of vessel EEM departures (20,167) by the
average time savings per vessel (0.5 hours). CBP estimates that during
the pilot period these outbound vessel carrier
[[Page 6103]]
participants experienced a total of 10,083 hours in time savings or on
average 917 hours annually.
CBP quantified these time savings using the average hourly loaded
wage rate for vessel operators ($72.17). CBP estimates that for each
vessel EEM departure the participating carriers experienced a cost
savings of approximately $36.09 ($72.17 X 0.5 hours). CBP estimates
that the total cost savings to outbound vessel carrier participants
during the vessel EEM test will be approximately $727,716 or on average
$66,156 annually.\68\ Table 12 displays CBP's estimates for the time
and cost savings that will be experienced by outbound vessel carriers
participating in the vessel EEM test that were prior VTM participants
during the pilot period.
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\68\ The annual average only includes data from years 2016-2025.
[GRAPHIC] [TIFF OMITTED] TP10FE26.017
Benefits
According to Section 343(a) of the Trade Act (19 U.S.C. 1415), CBP
is authorized to establish regulations that provide for the mandatory
electronic transmission of data by way of a CBP-approved electronic
data interchange before cargo arrives or departs the United States in
all environments (sea, air, rail, and truck). CBP developed and
implemented the vessel EEM test to determine a feasible process to
implement the Trade Act authority. Because during the pilot period
vessel EEM test participants are not providing export manifest data to
CBP prior to the cargo loading or prior to departure of the vessel, CBP
does not believe that vessel carrier participants or CBP experience any
benefits from the vessel EEM test during the pilot period. Because
participants are not providing export manifest data to CBP earlier in
the export process when compared to the baseline scenario, the vessel
EEM test likely will not affect CBP's ability to identify high-risk
cargo and improve cargo safety and security measures during the pilot
period. CBP acknowledges that if there were any benefits during the
pilot period, they will most likely be minimal. CBP believes that there
could be some gained efficiencies from obtaining export manifest data
in an integrated system even when provided post departure if CBP
reviews the vessel EEM test data once received four or more days post
departure. Unfortunately, CBP does not have data on how often this
occurred prior to the vessel EEM test or during the pilot period but
CBP expects it was most likely infrequent.\69\ The pilot was deemed
successful not for the benefits attained during the pilot period but
because of the cost savings and because it helped CBP and the trade
identify a workable regulatory framework in line to implement the Trade
Act of 2002 authority.
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\69\ Information provided by CBP's Cargo and Conveyance
Security, Office of Field Operations, on December 15, 2022 and
February 15, 2023.
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Net Impact of the Pilot Period
During the pilot period the vessel EEM test results in costs to CBP
and vessel EEM test participants and some cost savings to some test
participants. Because outbound vessel carriers are not providing the
export manifest data within the timeframes requested by CBP during the
test, the vessel EEM test will not likely result in security benefits
during the pilot period. According to CBP's estimates the vessel EEM
test will result in total net costs of over $5,131,729 or on average
$466,521 annually. CBP incurred IT systems costs of approximately
$2,431,199 during the pilot period while vessel carrier participants
experienced net costs of around $2,700,529 or on average $245,503
annually.\70\ Table 13 displays CBP's estimates for net costs from the
vessel EEM test during the pilot period.
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\70\ Average annual net costs to outbound vessel carriers were
based on data from 2016-2025 since no costs or cost savings were
incurred in 2015.
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[[Page 6104]]
[GRAPHIC] [TIFF OMITTED] TP10FE26.018
Table 14 below displays CBP's estimate for discounted net costs
from the vessel EEM test during the pilot period. As shown, CBP expects
that this proposed rule will result in net costs to CBP and
participating vessel carriers during the pilot period ranging from
$4,167,303 in 2023 U.S. dollars using a three percent discount rate and
$3,248,717 in 2023 U.S. dollars using a seven percent discount rate.
CBP estimates that annualized net costs will range from $450,391 using
a three percent discount rate to $433,329 using a seven percent
discount rate.
[GRAPHIC] [TIFF OMITTED] TP10FE26.019
Regulatory Period (2026-2030)
For the regulatory period CBP estimated the future costs, cost
savings, and benefits to CBP, vessel carriers, other trade members and
other Federal government agencies as a result of the implementation of
the vessel EEM program. During the regulatory period CBP would require
trade members providing data to abide by the deadlines established by
the proposed rule and, as a result of providing the export manifest
data prior to loading cargo onto vessels, there would be additional
effects that did not exist during the pilot period. These effects would
also be on a much larger scale during the regulatory period because all
outbound vessel carriers and some other trade members would be
affected.
Summary of Changes and Effects of This Proposed Rule
This proposed rule would directly result in a number of required
changes that would affect both CBP and trade members. CBP was able to
quantify some of the costs, cost savings and benefits resulting from
these changes; however, due to lack of available data and information
for some of these changes, CBP could only discuss these effects
qualitatively. CBP provides in Table 15 below, a summary of the
changes, costs, cost savings, benefits, and where the change or effect
is discussed in greater detail in the regulatory period section of this
analysis.
BILLING CODE 9111-14-P
[[Page 6105]]
[GRAPHIC] [TIFF OMITTED] TP10FE26.020
[[Page 6106]]
BILLING CODE 9111-14-C
Costs
CBP IT Systems Costs
CBP would bear technology and opportunity costs by expanding the
existing test to a mandatory program for all outbound vessel carriers
and all exports in the sea environment. CBP does not anticipate it
would incur any costs to develop new systems during the regulatory
period because CBP completed the system development and implementation
of the vessel EEM application into ACE during the pilot period. CBP
does expect to incur some ongoing systems operations and maintenance
costs associated with the vessel EEM application in ACE. Over the
course of the regulatory period, CBP estimates that ongoing systems
costs associated with the vessel EEM would be approximately $873,847 or
on average $174,769 each year.\71\
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\71\ Information provided by CBP's Cargo and Conveyance
Security, Office of Field Operations, subject matter expert on
December 13, 2022. CBP extrapolated ongoing maintenance and
operations costs using a 1.9% annual increase each year, as used in
the initial estimate provided.
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CBP Opportunity Costs
In addition to the ongoing systems costs, CBP expects to incur
additional time burdens as a result of CBP officers manually reviewing,
addressing and resolving 1H Enforcement holds during the regulatory
period. To estimate the number of CBP 1H Enforcement holds that would
be issued during the regulatory period, CBP used the number of CBP 1H
Enforcement holds issued from 2018 through 2023 (6,157) compared to the
total number of vessel export manifest data transmissions during the
vessel EEM test during that same time period (2,277,226).\72\ CBP
estimates that on average a 1H Enforcement hold was issued on 0.27
percent (6,157 divided by 2,277,226) of all EEM test data
transmissions. CBP assumes that during the regulatory period the
percent of 1H Enforcement holds issued per export manifest data
transmissions would remain relatively constant compared the percent
issued from 2018-2023. CBP multiplied the estimated 1H Enforcement hold
rate of 0.27 percent by the estimated future volume of export manifest
data transmissions to CBP (see Table 6) to estimate the number of 1H
Enforcement holds issued during each year of the regulatory period.
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\72\ CBP vessel EEM test data provided by CBP's Cargo and
Conveyance Security, Office of Field Operations, on December 13,
2022 and December 20, 2023. CBP did not include 2016 and 2017 in the
calculation because the vessel EEM test was gradually being
implemented and 1H Enforcement holds were not issued for all vessel
EEM test data transmissions until 2018.
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Although CBP does not anticipate 2H Documentation holds would
require any action or response by a CBP officer, 2H Documentation holds
would affect trade members and for consistency CBP elected to present
the calculation of all estimated future holds together in Table 16.
During the vessel EEM test, 2H Documentations holds are not being
issued because participants are only providing data once it is complete
and finalized no later than four days post departure. Therefore, in
order to estimate the number of 2H Documentation holds that would be
generated during the regulatory period as a result of this proposed
rule, CBP used data obtained from a similar EEM test program--the ACE
Electronic Export Manifest for Rail Cargo test (rail EEM test). In the
rail EEM test, 2H Documentation holds were issued for approximately
3.78% percent of all EEM test data transmissions and CBP uses this as a
proxy for how many 2H Documentation holds would be issued during the
vessel EEM regulatory period.\73\ To estimate the potential number of
CBP issued holds each year of the regulatory period, CBP multiplied the
percentage of data transmissions that were issued holds during the
pilot period by the estimated number of total data transmissions. CBP
anticipates that this proposed rule would result in CBP issuing
approximately 162,823 1H Enforcement holds and around 2,276,381 2H
Documentation holds during the regulatory period. Table 16 below
displays CBP's estimates for the number of 1H Enforcement holds and 2H
Documentation holds that would be issued each year as a result of this
proposed rule.
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\73\ Data from the ACE Electronic Export Manifest for Rail Cargo
test for years 2020- 2023, provided by CBP's Cargo and Conveyance
Security, Office of Field Operations, subject matter expert on
December 6, 2022, and May 9, 2024. Data obtained from CBP's ACE.
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[[Page 6107]]
[GRAPHIC] [TIFF OMITTED] TP10FE26.021
CBP believes that it is possible that the total number of holds
could be fewer than these estimates during the regulatory period as
outbound vessel carriers and other trade members become more familiar
and efficient at providing the pre-departure EEM data, potentially
improving compliance and limiting the number of holds CBP issues. CBP
has not issued any DNL holds during the vessel EEM test and does not
expect a significant number of DNL holds to be issued during the
regulatory period.\74\ If DNL holds are issued, this would be an
additional cost to outbound vessel carriers, who are ultimately
responsible for loading and not loading cargo.
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\74\ Information provided by CBP's Cargo and Conveyance
Security, Office of Field Operations, subject matter experts on
December 13, 2022.
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CBP estimates that a total of 162,823 1H Enforcement holds would be
issued during the regulatory period. CBP expects that the time burden
to a CBP officer to manually review a 1H Enforcement hold is about 5
minutes (0.083 hours).\75\ CBP also anticipates that after reviewing
these holds CBP officers would incur an additional time burden to
address and resolve these 1H Enforcement holds. Depending on the
complexity of the hold and if it is determined that a CBP officer needs
to manually examine cargo, the time burden to CBP officers to address
and resolve these holds varies from a few minutes to a few hours.\76\
CBP expects that the majority of these 1H Enforcement holds issued
would not result in a cargo examination.\77\ CBP estimates that, on
average, CBP officers incurred an additional time burden of ten minutes
(0.167 hours) to address and resolve each 1H Enforcement hold.\78\ In
total CBP expects on average a CBP officer to incur a time burden of
approximately 15 minutes (0.25 hours) to review and resolve each 1H
Enforcement hold.
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\75\ CBP assumes that the time to review a 1H Enforcement hold
should not differ depending on the environment, therefore CBP uses
time burden estimates provided in the NPRM ACE Electronic Export
Manifest for Rail Exports analysis to review and resolve a 1H
Enforcement hold.
\76\ Information provided by CBP's Cargo and Conveyance
Security, Office of Field Operations, meeting with subject matter
experts on December 15, 2022.
\77\ Information provided by CBP's Cargo and Conveyance
Security, Office of Field Operations, meeting with subject matter
experts on December 15, 2022.
\78\ Information provided by CBP's Cargo and Conveyance
Security, Office of Field Operations, meeting with subject matter
experts on December 15, 2022.
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To calculate the estimated time burden to CBP officers to review
and resolve 1H Enforcement holds during each year of the regulatory
period, CBP multiplied the estimated number of 1H Enforcement holds
issued each year by the combined time burden to CBP officers to review
and resolve these holds. During the course of the regulatory period CBP
expects that CBP officers would incur a time burden of approximately
40,706 hours (162,823 1H Enforcement holds x 0.25 hours) when reviewing
and resolving 1H Enforcement holds. CBP calculated the costs to CBP
officers in the regulatory
[[Page 6108]]
period, by multiplying the total time burden (40,706) hours by the
average hourly loaded rate for a CBP officer ($101.44).\79\ As a result
of this proposed rule, CBP estimates that CBP officers would incur time
burden costs of approximately $4,129,195 or on average $825,839
annually during the regulatory period. Table 17 shows CBP estimates for
time burden and costs to CBP officers during the regulatory period.
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\79\ CBP bases this wage on the FY 2022 salary, benefits,
premium pay, non-salary costs and awards of the national average of
CBP Officer Positions, which is equal to a GS-11, Step 10. Source:
Email correspondence with CBP's Office of Finance on September 26,
2023.
[GRAPHIC] [TIFF OMITTED] TP10FE26.022
CBP Miscellaneous Costs
CBP does not expect that this proposed rule would result in
additional cargo examinations when compared to the baseline. To the
extent that CBP is wrong and there are more manual examinations of
cargo as a result of issued 1H Enforcement holds when compared to the
baseline, then the time burden to CBP officers during the regulatory
period would be larger than CBP estimated. Unfortunately, CBP does not
have data on how many 1H Enforcement holds typically result in a cargo
examination. In the case where CBP determines it is necessary to
conduct a physical examination of cargo or a container on average a CBP
officer is able to complete the examination and submit the findings in
about 60 minutes.\80\ Given the CBP officer hourly loaded wage rate of
$101.44, CBP estimates the average time burden cost to CBP to conduct a
cargo or container examination is approximately $101.44 per
examination. Again, CBP does not expect that this rule would result in
additional cargo examinations.
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\80\ Information provided by CBP's Cargo and Conveyance
Security, Office of Field Operations, subject matter experts on
December 15, 2022.
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In total, CBP estimates that CBP would incur around $5.0 million in
costs during the regulatory period or on average around $1.0 million
annually, from operation and maintenance costs for the vessel EEM
application in ACE and opportunity costs from reviewing and resolving
1H Enforcement holds. CBP displays its estimates for total costs to CBP
during each year of the regulatory period below in Table 18.
[GRAPHIC] [TIFF OMITTED] TP10FE26.023
Trade Member IT Systems Costs
CBP anticipates that this proposed rule would result in costs to
trade members in the form of both IT systems and opportunity costs. CBP
estimates that this proposed rule would require that all 45 outbound
vessel carriers and approximately 455 other trade members would incur
costs to adjust and maintain their IT systems to provide EEM data
directly to CBP via ACE.\81\ CBP anticipates that the cost to adjust
and maintain IT systems could vary significantly depending on the
outbound vessel carrier or other trade member, and therefore CBP
provides a range of estimates for the annual IT system costs to the
average vessel EEM participant during the regulatory period. CBP uses
the same range of estimates provided during the pilot period cost
section of this analysis. CBP's primary estimate suggests that the
average outbound vessel carrier or other trade member would incur an
annual cost of approximately $35,000. CBP also provides a range of
costs using a low estimate of $10,000 and a high estimate of $60,000
for the average annual cost to
[[Page 6109]]
the average outbound vessel carrier or other trade member.\82\
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\81\ CBP discusses the expected number of trade members affected
by this rule above in the population affected by the proposed rule
section of this analysis.
\82\ Data obtained from feedback and discussions with Trade
members on the potential costs associated with IT systems to support
providing EEM to CBP via ACE. Data was obtained in December 2022 and
February 2023.
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CBP expects that approximately 500 trade members would incur
systems costs to adjust and maintain their IT systems while providing
EEM data to vessel EEM.\83\ CBP notes that it is voluntary for the
other trade members to provide the export manifest cargo data directly
to CBP via ACE. If no other party elects to provide this export
manifest cargo data, then o
[…truncated; see source link]Indexed from Federal Register on February 10, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.