Is Trucking industry ready for $10,000 Fines for a Clerical Error?

How Will Trucking Companies Adapt to New Customs Filings Requirements on Jan 1st?

The sea and air cargo industry has managed advance Customs Filing requirements for years and they know how to handle it. The same requirements will now apply to all trucks coming in from Mexico and Canada.

In 2018 CBP collected $5.5B in fines from importers. As tariff collection and enforcement goes up so will the fines.

An article from American Shipper:

By Brian Bradley | Nov 6, 2018

Submission of an advance electronic manifest in the Automated Commercial Environment (ACE) will be required for de minimis shipments arriving in the U.S. via commercial truck starting Jan. 1, U.S. Customs and Border Protection said in a Cargo Systems Messaging Service (CSMS) message on Monday.

Beginning in the new year, CBP will start issuing penalties for carriers that “make no attempt” to comply with the electronic manifest requirement, the agency said. First offenses will incur a fine of $5,000, and subsequent offenses will incur fines of $10,000, CBP said.

Shipments qualifying for de minimis, or Section 321, release have been exempt from the electronic manifest filing requirement because of a CBP policy decision made during the implementation of the Trade Act of 2002, the agency said. The growth in e-commerce and an increase of the de minimis value from $200 to $800 have resulted in a significant growth in shipments being manifested and released under Section 321, CBP said.

“Companies not utilizing the provided portal will need to hire a service provider or have an [electronic data interchange] EDI system in place to submit the information,” the CSMS message says.

The lack of an electronic manifest eliminates CBP’s ability to conduct risk assessments or perform advance targeting in the Automated Targeting System and results in longer processing and wait times, the agency said.

Starting Nov. 26, CBP “will begin a phased approach for noncompliance with conveyances being referred to secondary for processing,” the CSMS message says.

Christopher WallComment