Security Filings on Cargo not Remaining in the U.S.

Everyone knows by now the importer's requirements for reporting the 10 elements on cargo discharging in the U.S., but what about cargo that just transits through the U.S.? I've seen cases where cargo discharges from a vessel coming from a foreign country and then transits inland by rail and / or truck to either Canada or Mexico where the goods will be cleared by CBP at the U.S. border and the security filings are not properly reported.

There seems to be some confusion between reporting FROB (foreign cargo remaining onboard), T&Es (transportation and exportation) and I.E.s (immediate exportation) entries when it comes to the security filings. They are all reported the same. That is they have 5 elements that are required instead of the usual 10.

The difference between FROB cargo and cargo moving on a T&E or I.E. is that the FROB cargo never discharges the vessel at a U.S. port and therefore is only reported with a foreign port of discharge when filing in AMS. When reporting cargo on a T&E or I.E. in AMS, you report it under a U.S. port of discharge because the goods physically come off the vessel. They just aren't cleared by a customs broker under a consumption entry because the goods will not be sold or consumed in the U.S.

In the case of the T&E, the goods are moved through the U.S. overland to cross the border either into Canada or Mexico where they will be sold or consumed there. Sometimes they discharge one vessel and move overland to another coast to load a different vessel and go via ocean to a foreign country. Therefore the T&E is the inbond entry that will be filed with customs at the port of entry to allow the goods to leave the port to move inland without a consumption entry being filed. The T&E will note the foreign destination of the goods and customs will clear out the T&E at the border crossing or the port of exit. In the case of the I.E., the goods never leave the port of entry but still discharge the vessel. Instead of moving away from the port, the goods are loaded onto another vessel and sent foreign again. The I.E. will note the foreign destination and customs will clear the I.E. at the port of entry where the goods came in.

When reporting the 5 elements to customs on this type cargo, you must report the foreign port of unlading. This includes the foreign port that the T&E and I.E. cargo is destined to, not the U.S. port of unlading that is reported in AMS. That seems to confuse alot of users that they must show the U.S. port of unlading for the security filings but they do not.

Example #1: A shipment loads a vessel in Antwerp, Belgium that is discharging in Norfolk, VA. The goods are being moved inbond on a T&E to Montreal, Canada. The T&E will be cleared at the border in Buffalo, NY by customs. For the security filing you will show Montreal, Canada as the foreign port of unlading, not Norfolk, VA. For AMS you will show port of unlading as Norfolk, VA.

Example #2: A shipment loads a vessel in Liverpool, U.K. and discharges in New York. A T&E is issued to move the goods inland to the west coast port of Seattle, WA. where the goods load another vessel for destination Kobe, Japan. For the security filing you will report Kobe, Japan as the foreign port of unlading, not New York.

Example #3: A shipment loads a vessel in Lisbon, Portugal and discharges in Charleston, SC. An I.E. is issued to load the goods on another ship to send them to their destination in Montevideo, Uruguay. The security filing will show Montevideo, Uruguay as the foreign port of unlading, not Charleston, SC.

These are different transmissions with different requirements. I hope this helps out with some of the confusion on this.

The 5 elements are:

1) Booking Party name and address
2) Foreign port of unlading (explained above)
3) Place of delivery (city of final destination)
4) Ship to name and address
5) Commodity HTSUS number


www.artemus.us