[Federal Register Volume 67, Number 153 (Thursday, August 8, 2002)]
[Proposed Rules]
[Pages 51519-51524]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-20147]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR parts 4 and 113

RIN 1515-AD11


Presentation of Vessel Cargo Declaration to Customs Before Cargo 
is Laden Aboard Vessel at Foreign Port for Transport to the United 
States

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: Proposed rule.

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SUMMARY: This document proposes to amend the Customs Regulations to 
require the advance and accurate presentation of manifest information 
prior to lading at the foreign port and to encourage the electronic 
presentation of such information in advance. The document also proposes 
to allow a non-vessel operating common carrier (NVOCC) having an 
International Carrier Bond to electronically present this cargo 
manifest information to Customs. This information is required in 
advance and is urgently needed in order to enable Customs to evaluate 
the risk of smuggling before goods are loaded on vessels for 
importation into the United States, including the risk of smuggling of 
weapons of mass destruction through the use of oceangoing cargo 
containers, while, at the same time, enabling Customs to facilitate the 
prompt release of

[[Page 51520]]

legitimate cargo following its arrival in the United States. Failure to 
provide the required information in the time period prescribed may 
result in the assessment of civil monetary penalties or claims for 
liquidated damages.

DATES: Comments must be received on or before September 9, 2002.

ADDRESSES: Written comments are to be addressed to the U.S. Customs 
Service, Office of Regulations & Rulings, Attention: Regulations 
Branch, 1300 Pennsylvania Avenue NW., Washington, DC 20229. Submitted 
comments may be inspected at U.S. Customs Service, 799 9th Street, NW., 
Washington, DC, during regular business hours. Arrangements to inspect 
submitted comments should be made in advance by calling Mr. Joseph 
Clark at (202) 572-8768.

FOR FURTHER INFORMATION CONTACT: For legal matters: Larry L. Burton, 
Office of Regulations and Rulings, (202-572-8724).
    For operational matters: Kimberly Nott, Office of Field Operations, 
(202-927-0042).

SUPPLEMENTARY INFORMATION:

Background

    The Customs laws impose certain requirements upon vessels that will 
arrive in the United States to discharge their cargo. In particular, 
vessels destined for the United States must comply with 19 U.S.C. 1431, 
which requires that every vessel bound for the United States and 
required to make entry under 19 U.S.C. 1434 have a manifest that meets 
the requirements that are prescribed by regulation. To this end, under 
19 U.S.C. 1431(d), Customs may by regulation specify the form for, and 
the information and data that must be contained in, the vessel 
manifest, as well as the manner of production for, and the delivery or 
electronic transmittal of, the vessel manifest.
    Currently, Sec. 4.7, Customs Regulations (19 CFR 4.7), requires: 
that the master of every vessel arriving in the United States and 
required to make entry have on board the vessel a manifest in 
accordance with 19 U.S.C. 1431 and Sec. 4.7; and that an original and 
one copy of the manifest must be ready for production upon demand and 
must be delivered to the first Customs officer who demands the 
manifest. Sections 4.7(a) and 4.7a, Customs Regulations (19 CFR 4.7a), 
set forth the documentary and informational requirements that 
constitute the vessel manifest.
    Pursuant to Sec. 4.7(a), the cargo declaration (Customs Form 1302 
or its electronic equivalent) is one of the documents that comprises a 
vessel manifest. The cargo declaration, or cargo manifest, must list 
all the inward foreign cargo on board the vessel regardless of the 
intended U.S. port of discharge of the cargo (Sec. 4.7a(c)(1)).
    Furthermore, 19 U.S.C. 1448 provides, in pertinent part, that no 
merchandise may be unladen from a vessel which is required to make 
entry under section 1434 until Customs has issued a permit for the 
unlading. In addition, under section 1448, Customs possesses a 
reasonable measure of regulatory discretion as to whether, and under 
what circumstances and conditions, to issue a permit to unlade incoming 
cargo from a vessel arriving in the United States. Section 4.30, 
Customs Regulations (19 CFR 4.30), lists the requirements and 
conditions under which Customs may issue a permit to unlade foreign 
merchandise from a vessel arriving in the United States.
    Finally, 19 U.S.C. 1436(a)(1) and (a)(4) provide that it is 
unlawful to fail to comply with sections 1431, 1433 or 1434 or any 
regulation prescribed under any of those statutory authorities. 
Further, 19 U.S.C. 1436(a)(2) states that it is unlawful to present or 
transmit, electronically or otherwise, any forged, altered or false 
document, paper, data or manifest to the Customs Service under 19 
U.S.C. 1431, 1433(d) or 1434. Under section 1436(b), the master of a 
vessel who commits any such violation is liable for a civil penalty of 
$5,000 for the first violation and $10,000 for each subsequent 
violation and any conveyance used in connection with any such violation 
is subject to seizure and forfeiture.

Proposed Rulemaking; Advance Presentation of Vessel Cargo Manifest to 
Customs; Required Information

    Customs proposes in this document to amend Sec. 4.7 to provide 
that, pursuant to 19 U.S.C. 1431(d), for any vessel subject to entry 
under 19 U.S.C. 1434 upon its arrival in the United States, Customs 
must receive the vessel's cargo manifest (declaration) from the carrier 
24 hours before the related cargo is laden aboard the vessel at the 
foreign port.

Necessity for Advance Presentation of Vessel Cargo Manifest to Customs

    The United States Customs Service recently launched the Container 
Security Initiative (``CSI''), a program that will protect the United 
States and a significant part of the global trading system--
containerized shipping--from terrorists and the implements of 
terrorism, including weapons of mass destruction. With CSI, the United 
States is entering into partnerships with other governments to target 
and inspect high-risk sea containers in foreign ports, before they are 
shipped to the United States. This will not only deter terrorists from 
attempting to use the global shipping system for their destructive 
purposes, it will also substantially reduce the risk of weapons of mass 
destruction from ever reaching our shores.
    CSI, which provides improved security without slowing the flow of 
legitimate trade, is an integral part of the President's homeland 
security strategy. The initiative also has the full support of the G-8 
and the World Customs Organization.
    The Customs Service successfully piloted a version of CSI in Canada 
and already has agreements with the governments of the Netherlands, 
Belgium, and France to implement CSI at the ports of Rotterdam, 
Antwerp, and Le Havre. U.S. Customs Service inspectors will be 
stationed at those ports shortly. Agreements with other governments are 
imminent, and the Customs Service anticipates continued, rapid growth 
of CSI over the next several weeks and months.
    An essential element of CSI is advance transmission of vessel cargo 
manifest information to Customs. Analysis of the manifest information 
prior to lading will enable overseas Customs personnel to identify 
high-risk containers effectively and efficiently, while ensuring prompt 
processing of lower risk containers. Because of CSI's rapid growth and 
critical role in homeland security, it is necessary that Customs begin 
receiving the advance manifest information required for CSI 
implementation as soon as possible.

Non-Vessel Operating Common Carriers (NVOCCs)

    In the event that a non-vessel operating common carrier (NVOCC) 
delivers cargo to a vessel carrier for lading aboard the vessel at the 
foreign port, the NVOCC, if licensed by the Federal Maritime Commission 
and in possession of an International Carrier Bond executed pursuant to 
part 113 of the Customs Regulations (19 CFR part 113), containing the 
provisions of Sec. 113.64 (19 CFR 113.64), may electronically transmit 
the corresponding required cargo manifest information directly to 
Customs through the Automated Manifest System (AMS) 24 or more hours 
before the related cargo is laden aboard the vessel at the foreign 
port; in the alternative, the NVOCC would need to fully disclose and 
present the required manifest information for the related cargo to the 
vessel carrier which would be required to present this information to 
Customs. For purposes of this rulemaking, a non-

[[Page 51521]]

vessel operating common carrier (NVOCC) means a common carrier that 
does not operate the vessels by which the ocean transportation is 
provided, and is a shipper in its relationship with an ocean common 
carrier.
    This document proposes to amend the conditions of the International 
Carrier Bond (19 CFR 113.64) to add a new provision which would 
recognize the status of an NVOCC as a manifesting party and would 
obligate any NVOCC having such a bond and electing to provide cargo 
manifest information to Customs electronically under Sec. 4.7 and 4.7a 
to transmit such information to Customs in an accurate and timely 
manner. Breach of these obligations would result in liquidated damages 
against the NVOCC.

Cargo Declarations; Information Required

    Additionally, Customs proposes in this rulemaking to amend 
Sec. 4.7a to require that the cargo declaration, on Customs Form 1302 
or a Customs-approved electronic equivalent, separately list all 
foreign cargo not destined for the United States that remains on board 
the vessel (``FROB'') as well as any empty containers that are on the 
vessel. Moreover, in addition to the cargo declaration information 
required for cargo destined for the United States in Sec. 4.7a(c)(1)-
(c)(3), Sec. 4.7a would be amended in this proposed rule to add a new 
paragraph (c)(4) to provide that the cargo declaration, either on 
Customs Form 1302, or on a separate sheet or Customs-approved 
electronic equivalent, must state:
    (1) The foreign port of departure;
    (2) The carrier (SCAC) code;
    (3) The voyage number;
    (4) The date of scheduled arrival in the first U.S. port in Customs 
territory;
    (5) The numbers and quantities from the carrier's ocean bills of 
lading, either master or house, as applicable;
    (6) The first port of receipt of the cargo by the inward foreign 
ocean carrier;
    (7) A precise description (or the Harmonized Tariff Schedule (HTS)) 
numbers 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 such as ``FAK'' (``freight of all 
kinds''), ``general cargo'', and ``STC'' (``said to contain'') are not 
acceptable;
    (8) The shipper's name and address, or an identification number, 
from all bills of lading;
    (9) The consignee's name and address, or the owner's or owners' 
representative's name and address, or an identification number, from 
all bills of lading;
    (10) Notice that actual boarded quantities are not equal to 
quantities as indicated on the relevant bills of lading (except that a 
carrier is not required to verify boarded quantities of cargo in sealed 
containers);
    (11) The vessel name, national flag, and vessel number;
    (12) The foreign port where the cargo is laden on board;
    (13) Hazardous material indicator;
    (14) Container number (for containerized shipments); and
    (15) The seal number affixed to the container.
    As explained above in the context of the CSI, these expanded 
information requirements are necessary to enable Customs to evaluate 
the risk of smuggling before goods are loaded onto vessels for 
importation into the United States, including the risk of smuggling of 
weapons of mass destruction. This information is required in advance 
for Customs to assess the risks presented by shipments for smuggling 
while providing expedited treatment of cargo upon arrival.
    The failure by the master to present or transmit accurate manifest 
data in the time period prescribed by regulation and the presentation 
or transmission by the master of any false, forged or altered document, 
paper, manifest or data to Customs may result in the assessment of 
monetary penalties under the provisions of 19 U.S.C. 1436(b). If an 
NVOCC having an International Carrier Bond elects to transmit such data 
electronically to Customs and fails to do so in the time period 
prescribed by regulation or transmits any false, forged or altered 
document, paper, manifest or data to Customs, the NVOCC may be liable 
for the payment of liquidated damages for breach of the condition of 
the International Carrier Bond.

Issuance of Permit to Unlade Cargo

    If the carrier does not present cargo declaration information to 
Customs prior to the lading of the cargo aboard the vessel at the 
foreign port, Customs may, in addition to assessment of civil monetary 
penalties, delay issuance of a permit to unlade the entire vessel until 
all required information is received. Customs may also decline to issue 
a permit to unlade the specific cargo for which a declaration is not 
received 24 hours before lading in a foreign port. Such a delay in the 
issuance of a permit to unlade or refusal of a permit to unlade would 
be appropriate because Customs cannot determine whether or when to 
permit the unlading of cargo until it has received timely, complete, 
and accurate declaration information and has reviewed the cargo 
manifest to gauge the potential risk associated with the importation of 
that cargo.

Preliminary Entry

    It is also proposed that Sec. 4.8 be amended to make it clear that 
the granting of preliminary entry by Customs will be conditioned upon 
the electronic submission of the Cargo Declaration (Customs Form (CF) 
1302), as well as the provision to Customs either electronically or in 
paper form of all other forms required by Sec. 4.7.

Comments

    Before adopting this proposal, consideration will be given to any 
written comments that are timely submitted to Customs. Only a 30-day 
comment period is being provided for in this notice because of the 
urgent necessity for Customs to receive advance manifest information to 
strengthen the CSI and to prevent the risk of smuggling of weapons of 
mass destruction. Customs specifically requests comments on the clarity 
of this proposed rule and how it may be made easier to understand. 
Comments submitted will be available for public inspection in 
accordance with the Freedom of Information Act (5 U.S.C. 552), Sec. 1.4 
of the Treasury Department Regulations (31 CFR 1.4), and 
Sec. 103.11(b), Customs Regulations (19 CFR 103.11(b)), at the U.S. 
Customs Service, 799 9th Street, NW., Washington, DC during regular 
business hours. Arrangements to inspect submitted comments should be 
made in advance by calling Mr. Joseph Clark at (202) 572-8768.

Regulatory Flexibility Act and Executive Order 12866

    The advance presentation to Customs of vessel manifest information 
for cargo destined for the United States as prescribed under the 
proposed amendments is intended to expedite the release of incoming 
cargo while, at the same time, ensuring maritime safety and protecting 
national security. As such, pursuant to the provisions of the 
Regulatory Flexibility Act (5 U.S.C. 601 et seq.), it is certified 
that, if adopted, the proposed amendments would not have a significant 
economic impact on a substantial number of small entities. Accordingly, 
the proposed amendments are not subject to the regulatory analysis or 
other requirements of 5 U.S.C. 603 and 604. Nor do they meet the 
criteria

[[Page 51522]]

for a ``significant regulatory action'' as specified in E.O. 12866.

Paperwork Reduction Act

    The collection of information in this document is contained in 
Sec. 4.7a(c)(4). Under Sec. 4.7a(c)(4), the information would be 
required and used to determine the security conditions under which 
cargo was maintained prior to and following its delivery for lading 
aboard a vessel for shipment to the United States. The likely 
respondents and/or recordkeepers are business or other for-profit 
institutions.
    The collection of information encompassed within this proposed rule 
has been submitted to the Office of Management and Budget (OMB) for 
review in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507). An agency may not conduct, and a person is not required 
to respond to, a collection of information unless the collection of 
information displays a valid control number assigned by OMB.
    Estimated annual reporting and/or recordkeeping burden: 66,700 
hours.
    Estimated average annual burden per respondent/recordkeeper: 6.67 
hours.
    Estimated number of respondents and/or recordkeepers: 10,000.
    Estimated annual frequency of responses: 100.
    Comments on the collection of information should be sent to the 
Office of Management and Budget, Attention: Desk Officer of the 
Department of the Treasury, Office of Information and Regulatory 
Affairs, Washington, DC 20503. A copy should also be sent to the 
Regulations Branch, Office of Regulations and Rulings, U.S. Customs 
Service, 1300 Pennsylvania Avenue, NW., Washington, DC 20229. Comments 
should be submitted within the time frame that comments are due 
regarding the substance of the proposal.
    Comments are invited on: (a) Whether the collection is necessary 
for the proper performance of the functions of the agency, including 
whether the information will have practical utility; (b) the accuracy 
of the agency's estimate of the burden of the collection of the 
information; (c) ways to enhance the quality, utility, and clarity of 
the information to be collected; (d) ways to minimize the burden of the 
collection of information on respondents, including through the use of 
automated collection techniques or other forms of information 
technology; and (e) estimates of capital or startup costs and costs of 
operations, maintenance, and purchase of services to provide 
information.
    Part 178, Customs Regulations (19 CFR part 178), containing the 
list of approved information collections, would be revised to add an 
appropriate reference to 4.7a(c)(4), upon adoption of the proposal as a 
final rule.

List of Subjects

19 CFR Part 4

    Administrative practice and procedure, Arrival, Cargo vessels, 
Customs duties and inspection, Declarations, Entry, Freight, Harbors, 
Hazardous substances, Imports, Inspection, Landing, Maritime carriers, 
Merchandise, Reporting and recordkeeping requirements, Shipping, 
Vessels.

19 CFR Part 113

    Bonds, Customs duties and inspection, Exports, Foreign commerce and 
trade statistics, Freight, Imports, Reporting and recordkeeping 
requirements.

Proposed Amendments to the Regulations

    It is proposed to amend parts 4 and 113, Customs Regulations (19 
CFR parts 4 and 113), as set forth below:

PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADES

    1. The general authority citation for part 4 and the relevant 
specific authority citations would continue to read as follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1431, 1433, 1434, 1624; 
46 U.S.C. App. 3, 91;
* * * * *
    Section 4.7 also issued under 19 U.S.C. 1581(a); 46 U.S.C. App. 
883a, 883b;
    Section 4.7a also issued under 19 U.S.C. 1498, 1584;
    Section 4.8 also issued under 19 U.S.C. 1448, 1486;
* * * * *
    Section 4.30 also issued under 19 U.S.C. 288, 1446, 1448, 1450-
1454, 1490;
* * * * *
    2. It is proposed to amend Sec. 4.7 by revising its section 
heading; by redesignating the existing text of paragraph (b) as 
paragraph (b)(1) and revising the first sentence of newly redesignated 
paragraph (b)(1); and by adding new paragraphs (b)(2), (b)(3), and (e) 
to read as follows:


Sec. 4.7  Inward foreign manifest; production on demand; contents and 
form; advance filing of cargo declaration.

* * * * *
    (b)(1) In addition to any Cargo Declaration that has been filed in 
advance as prescribed in paragraph (b)(2) of this section, the original 
and one copy of the manifest must be ready for production on demand. * 
* *
    (2) For any vessel subject to paragraph (a) of this section, 
Customs must receive from the carrier the vessel's Cargo Declaration, 
Customs Form 1302, or a Customs-approved electronic equivalent, 24 
hours before such cargo is laden aboard the vessel at the foreign port 
(see Sec. 4.30(n)(1)). Participants in the Automated Manifest System 
(AMS) are required to provide the vessel's cargo declaration 
electronically.
    (3)(i) Where a non-vessel operating common carrier (NVOCC), as 
defined in paragraph (b)(3)(ii) of this section, delivers cargo to the 
vessel carrier for lading aboard the vessel at the foreign port, the 
NVOCC, if licensed by the Federal Maritime Commission and in possession 
of an International Carrier Bond containing the provisions of 
Sec. 113.64 of this chapter, may electronically transmit the 
corresponding required cargo manifest information directly to Customs 
through the Automated Manifest System (AMS) 24 or more hours before the 
related cargo is laden aboard the vessel at the foreign port (see 
Sec. 113.64(c) of this chapter); in the alternative, the NVOCC must 
fully disclose and present the required manifest information for the 
related cargo to the vessel carrier which is required to present this 
information to Customs.
    (ii) A non-vessel operating common carrier (NVOCC) means a common 
carrier that does not operate the vessels by which the ocean 
transportation is provided, and is a shipper in its relationship with 
an ocean common carrier. The term ``non-vessel operating common 
carrier'' does not include freight forwarders as defined in part 112 of 
this chapter.
* * * * *
    (e) Failure to provide manifest information; penalties/liquidated 
damages. Any master who fails to provide manifest information as 
required by this section, or who presents or transmits electronically 
any document required by this section that is forged, altered or false, 
or who fails to present or transmit the information required by this 
section in a timely manner, may be liable for civil penalties as 
provided under 19 U.S.C. 1436, in addition to penalties applicable 
under other provisions of law. In addition, if any non-vessel operating 
common carrier (NVOCC) as defined in paragraph (b)(3)(ii) of this 
section elects to transmit cargo manifest information to Customs 
electronically and fails to do so in the manner and in the time period 
required by paragraph (b)(3)(i) of this section, or electronically 
transmits any false, forged or altered document, paper, manifest or

[[Page 51523]]

data to Customs, such NVOCC may be liable for the payment of liquidated 
damages as provided in Sec. 113.64(c) of this chapter.
    3. It is proposed to amend Sec. 4.7a by revising the first sentence 
of paragraph (c)(1), by adding a new paragraph (c)(4), and by adding a 
new paragraph (f) to read as follows:


Sec. 4.7a  Inward manifest; information required; alternative forms.

* * * * *
    (c) Cargo Declaration. (1) The Cargo Declaration (Customs Form 1302 
or a Customs-approved electronic equivalent) must list all the inward 
foreign cargo on board the vessel regardless of the U.S. port of 
discharge, and must separately list any other foreign cargo remaining 
on board (``FROB'') as well as any empty containers that are on the 
vessel. * * *
* * * * *
    (4) In addition to the cargo manifest information required in 
paragraphs (c)(1)-(c)(3) of this section, for all inward foreign cargo, 
the Cargo Declaration, either on Customs Form 1302, or on a separate 
sheet or Customs-approved electronic equivalent, must state the 
following:
    (i) The foreign port of departure;
    (ii) The carrier (SCAC) code;
    (iii) The voyage number;
    (iv) The date of scheduled arrival in the first U.S. port in 
Customs territory;
    (v) The numbers and quantities from the carrier's ocean bills of 
lading, either master or house, as applicable;
    (vi) The first port of receipt of the cargo by the inward foreign 
ocean carrier;
    (vii) A precise description (or the Harmonized Tariff Schedule 
(HTS)) numbers 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 such as ``FAK'' (``freight of all 
kinds''), ``general cargo'', and ``STC'' (``said to contain'') are not 
acceptable;
    (viii) The shipper's name and address, or an identification number, 
from all bills of lading;
    (ix) The consignee's name and address, or the owner's or owners' 
representative's name and address, or an identification number, from 
all bills of lading;
    (x) Notice that actual boarded quantities are not equal to 
quantities as indicated on the relevant bills of lading (except that a 
carrier is not required to verify boarded quantities of cargo in sealed 
containers);
    (xi) The vessel name, national flag, and vessel number;
    (xii) The foreign port where the cargo is laden on board;
    (xiii) Hazardous material indicator;
    (xiv) Container number (for containerized shipments); and
    (xv) The seal number affixed to the container.
* * * * *
    (f) Failure to provide manifest information; penalties/liquidated 
damages. Any master who fails to provide manifest information as 
required by this section, or who presents or transmits electronically 
any document required by this section that is forged, altered or false, 
may be liable for civil penalties as provided under 19 U.S.C. 1436, in 
addition to penalties applicable under other provisions of law. In 
addition, if any non-vessel operating common carrier (NVOCC) as defined 
in Sec. 4.7(b)(3)(ii) elects to transmit cargo manifest information to 
Customs electronically, and fails to do so as required by this section, 
or transmits electronically any document required by this section that 
is forged, altered or false, such NVOCC may be liable for liquidated 
damages as provided in Sec. 113.64(c) of this chapter.
    4. It is proposed to amend Sec. 4.8 by revising the second and 
third sentences of paragraph (b) to read as follows:


Sec. 4.8  Preliminary entry.

* * * * *
    (b) Requirements and conditions. * * * The granting of preliminary 
vessel entry by Customs at or subsequent to arrival of the vessel, is 
conditioned upon the presentation to and acceptance by Customs of all 
forms, electronically or otherwise, comprising a complete manifest as 
provided in Sec. 4.7, except that the Cargo Declaration, Customs Form 
(CF) 1302, must be presented to Customs electronically in the manner 
provided in Sec. 4.7(b)(2). Vessels seeking preliminary entry in 
advance of arrival must do so: by presenting to Customs the electronic 
equivalent of a complete Customs Form 1302 (Cargo Declaration), in the 
manner provided in Sec. 4.7(b), showing all cargo on board the vessel; 
and by presenting Customs Form 3171 electronically no less than 48 
hours prior to vessel arrival. * * *
* * * * *
    5. It is proposed to amend Sec. 4.30 by adding a new paragraph (n) 
to read as follows:


Sec. 4.30  Permits and special licenses for unlading and lading.

* * * * *
    (n)(1) Customs will not issue a permit to unlade until it has 
received the cargo declaration information pursuant to Sec. 4.7(b). In 
cases in which Customs does not receive complete cargo manifest 
information from the carrier or from the NVOCC, in the manner and 
format required by Sec. 4.7(b), 24 hours prior to the lading of the 
cargo aboard the vessel at the foreign port, Customs may delay issuance 
of a permit to unlade the entire vessel until all required information 
is received. Customs may also decline to issue a permit to unlade the 
specific cargo for which a declaration is not received 24 hours before 
lading in a foreign port. Furthermore, where the carrier does not 
present an advance cargo manifest to Customs electronically, in the 
manner provided in Sec. 4.7(b)(2), preliminary entry pursuant to 
Sec. 4.8(b) will be denied.
    (2) In addition, while the advance presentation of the cargo 
manifest for any vessel subject to Sec. 4.7(b)(2) may be made in paper 
form or by electronic transmission through a Customs-approved 
electronic data interchange system, the submission of an electronic 
manifest for the cargo in this regard, as opposed to a paper manifest, 
will further facilitate the prompt issuance of a permit to unlade the 
cargo.

PART 113--B CUSTOMS BONDS

    1. The general authority citation for part 113 would continue to 
read as follows:

    Authority: 19 U.S.C. 66, 1623, 1624.

    2. It is proposed to amend Sec. 113.64 by revising the first 
sentence of paragraph (a); and by redesignating paragraphs (c), (d), 
(e) and (f) as paragraphs (d), (e), (f) and (g), respectively, and 
adding a new paragraph (c) to read as follows:


Sec. 113.64  International carrier bond conditions.

    (a) Agreement to Pay Penalties, Duties, Taxes, and Other Charges. 
If any vessel, vehicle, or aircraft, or any master, owner, or person in 
charge of a vessel, vehicle or aircraft, or any non-vessel operating 
common carrier as defined in Sec. 4.7(b)(3)(ii) of this chapter incurs 
a penalty, duty, tax or other charge provided by law or regulation, the 
obligors (principal and surety, jointly and severally) agree to pay the 
sum upon demand by Customs. * * *
* * * * *
    (c) Non-vessel operating common carrier (NVOCC). If a non-vessel 
operating common carrier (NVOCC) as defined in Sec. 4.7(b)(3)(ii) of 
this chapter elects to provide vessel cargo manifest information to 
Customs electronically, the NVOCC, as a principal under this

[[Page 51524]]

bond, in addition to compliance with the other provisions of this bond, 
also agrees to provide such manifest information to Customs in the 
manner and in the time period required by Secs. 4.7(b) and 4.7a(c) of 
this chapter. If the NVOCC, as principal, defaults with regard to these 
obligations, the principal and surety (jointly and severally) agree to 
pay liquidated damages of $5,000 for each regulation violated.
* * * * *

Robert C. Bonner,
Commissioner of Customs.
    Approved: August 6, 2002.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 02-20147 Filed 8-6-02; 11:42 am]
BILLING CODE 4820-02-P