CBP Proposes New Electronic Export Manifest Mandate for Rail Cargo
CBP issued a proposed rule this week that could mandate the submission of more detailed electronic export manifest (EEM) data for cargo leaving the U.S. by rail, identify which parties should be submitting that electronic information, and set timelines for how soon that information would need to be submitted before the cargo leaves the country.
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The proposal, which is accepting public comments through March 14, is part of a broader, yearslong process by CBP to also require electronic submissions for exports traveling by ocean, air and truck (see 2406250070). The agency has been operating EEM pilot programs for rail (see 2405100036), ocean (see 2405300010) and air (see 2406030060) for years, but EEM for truck cargo is further behind, partly because the U.S. is trying to align its manifest with Mexico and Canada (see 2207290035 and 2312050026).
The 138-page proposed rule released this week said CBP is looking to “reduce the data gaps existing under current regulations” for rail exports, adding that those regulations are “insufficient to adequately capture” information on the type of cargo leaving the U.S. and are limiting CBP’s enforcement efforts. The agency is proposing to establish an “integrated” pre-departure electronic export manifest under which it will be sent export data “from the source most likely to have correct information about the cargo.”
The rule states that the “outbound carrier” would be responsible for submitting this data unless another “eligible party” chooses to, including the U.S. Principal Party in Interest, the Foreign Principal Party in Interest, the customs broker, the Automated Broker Interface filer, the non-vessel operating common carrier, the freight forwarder or “any other party with direct knowledge of the export information.” If no other party sends the export data, “the party that arranges for and/or delivers the cargo to the outbound carrier must fully disclose and present to the outbound carrier the data elements for the initial filing,” CBP said.
CBP said seven initial data elements about the cargo would need to be submitted at least 24 hours before departure:
- Bill of lading numbers
- Total quantity of items
- Total weight
- Cargo description
- Shipper’s name and address
- Consignee's name and address
- Automated Export System Exemption Statement, as applicable.
The agency isn’t expecting this 24-hour time frame to be a challenge -- it said some rail carriers have shown that they have this data “days in advance” of the departure.
CBP said all other information can be transmitted up to two hours before the train departs, including “all additional data elements” that it describes as export manifest transportation data, cargo data and empty container data. That includes information about the date of departure, the mode of transportation, a potential hazmat code, port of lading and unlading, and more.
If CBP determines that a particular rail shipment needs to be reviewed, the agency can hold the cargo until “additional information related to the shipment is submitted or some other appropriate action is taken,” the rule said. The filer will be notified if the cargo is cleared and released.
The agency said rail carriers, shippers and others moving cargo by rail likely will "incur time burdens and costs" while responding to CBP holds, which can vary depending on the "complexity of the issue." But the agency also said "feedback received from trade members suggests that cargo examinations are not a frequent occurrence," and it doesn't expect its cargo reviews to increase because of this proposed rule.
The agency also is proposing changes to its regulations so that it can “impose liquidated damages” on parties that don’t provide the required EEM data in time. Violators could face penalties of $5,000 for each violation, up to a maximum of $100,000 per departure.
“CBP’s primary goal is compliance and CBP seeks to work alongside rail 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. rail exports,” the agency said.
The agency is asking for feedback on the potential "costs and cost savings" to rail carriers and other traders as a result of the EEM mandate, including those relating to "internal system adjustments, operation and maintenance needed to support transmitting pre-departure EEM data to CBP via ACE." It's also asking for comments about any costs associated with transitioning from paper forms to electronic data.