Page 20: of Maritime Reporter Magazine (April 2004)

Government Update ticipate in AMS. Alternatively, carriers (SCAC). While many carriers had may work through an Authorized Data acquired their own SCAC previously, it

Processing Service. was voluntary in nature. It has now become mandatory under the rule. The

Standard Carrier Alpha Code - SCAC SCAC can only be obtained from the

The cargo manifest must include the National Motor Freight Traffic carrier's Standard Carrier Alpha Code Association. The SCAC may be obtained by just about any entity engaged in the transportation business.

In the marine sector, an application may be submitted by a steamship agent, a steamship company, a barge line, a car ferry, a tug boat operation, or any other "company engaged in transportation by vessel over a body of water".

International Carrier Bond - ICB

Previously, the carrier could, if so authorized, make use of the local port agent's international carrier bond (ICB) to ensure payment of any assessed duties, civil penalties, etc. Under the

Advance Electronic Presentation Rule, the carrier must have its own ICB. The

ICB must be obtained through a bonding company authorized to provide such bonds. The ICB can also be costly, but it can be used to cover a variety of

Customs penalties, not just those direct- ly related to this reporting requirement.

CBP regulation provides that the ICB binds the obligators, which means the principal and the surety. The principal is defined as the carrier. Thus, the entity that assumes the role of carrier for pur- poses of filing the advance cargo infor- mation via AMS is the entity that becomes the principal for purposes of the ICB. The regulation and the

Customs Bond application form (CF 301) provide for either a single transac- tion bond or a continuous bond, at the applicants' option. CBP reserves the right, though, to place conditions on the bond or to require an increased amount.

The minimum amount for purposes of this regulation appears to be $50,000, but that is obviously subject to change.

The CF 301 should be submitted to the

Customs Director for the U.S. port most frequently utilized by the carrier.

Normally, a carrier will want to obtain a continuous bond, which may be utilized by multiple vessels and for multiple port calls.

Consignee

The consignee is the party to whom the cargo is to be delivered in the United

States, with the exception of freight cargo remaining on board (FROB). In the case of cargo being shipped "to the order of (a named party)", the consignee is the named party. If there is any other commercial party listed in the bill of lading for delivery or contact purposes,

Circle 263 on Reader Service Card electronically by means of the

Automated Manifest System (AMS).

For bulk carriers, specially designated break-bulk carriers, and passenger ves- sels, enforcement has been delayed until

April 2, 2004. AMS began in 1986 as an experiment and was intended to acceler- ate the flow of commerce. It is now being turned into a security tool, a task for which it was not designed and for which it is only partially suited. As noted above, carriers must register with the CBP and have appropriate telecom- munications capability in order to par-

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