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Why
The WCO framework
“Act as a deterrent to international terrorism,
secure revenue collections and promote trade facilitation worldwide”.
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Historical Prospective
A convergence of Government and Commercial Interests
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Chain of Security
Knowing the chain is security
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Security around the world
2002: USA AMS 2005: Canadian ACI 2006: Mexican AMS 2009: USA 10+2 2011: EU ENS 2013: Canada e-Manifest March 2014: Japan
Coming: China – full roll out Taiwan
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March 2014
• Carriers & NVO’s
• Reporter ID
• Manifest cargo
• 24 hours before departure
• On vessel departure
JP24 Requirements
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JP24 Data Elements
• Shipper Name
Address Telephone Number Country CODE
• Consignee Name
• Consignee Address
• Consignee Telephone Number
• Consignee Country CODE
• Notify Party Name
• Notify Party Address
• Notify Party Telephone Number
• Notify Party Country CODE
• Description of Goods
• Harmonized System Code (6-digit)
• Number of Packages
• Total Gross Weight
• Volume
• Mark and Number of Cargo
• Carrier code
• Vessel Code (Call Sign)
• Voyage Number
• Port of Loading
• Estimated Date and Time of Departure (from port of loading)
• Port of Origin Code
• Port of Discharge Code
• Estimated Date of Arrival (at port of discharge)
• Place of Delivery
• Bill of Lading Number
• Container Number
• Seal Number
• Container Size Code
• Container Type Code
• Container Ownership Code
• Dangerous Goods Code (IMDG Code)
• Whether each container is empty or full
• Processing Category Code*
* The element for distinguishing the presence or absence of information about House Bill of Lading and relaxed application to the deadline for filing.
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JP24 Fines & Penalties
Penalty Imprisonment for 1 year with hard labor
Fines 500,000 Yen ($5,300 USD) Due before vessel arrival
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Shift Time
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Shift & Compress Time
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Three Models of Compliance
3 Models of Compliance
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Method of Compliance
Benefits • Least amount of process change required
Issues • Shifts but does not compress time to prepare documents • No Feed back loop to Origin
- Exporter Confidentiality - Authorization to Load Cargo
• Costs are borne in the Supply Chain. Greatest costs overall.
Manual/Traditional
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Method of Compliance
Benefits • Document Preparation Time is compressed rather than shifted • Costs are borne in process change, additional services, and technology • Costs are kept out of the Supply Chain where they are substantially higher.
Issues • Not clear who will provide this service at origin when cargo is moving directly with the Ocean Carriers • Not clear how Exporter’s confidentiality will be protected • Not clear how the feed back loop will function to Origin
Semi-Automated
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Method of Compliance
Benefits • Most significant compression of Document Preparation Time • Exporter’s confidentiality requirements are protected • Supply Chain may accelerate in other areas achieving significant cost savings off-setting or exceeding the deployment costs
Issues • Requires the greatest process and system change • Unclear who will provide the service at origin when cargo is moving with the Ocean Carriers directly.
Fully-Automated
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Case Study
Centralized 3rd Party Processing
• The internal processes did not change for 40+ offices
• Time for implementation was greatly reduced
- Implemented across the globe in 30 days
• Experience and accuracy enabled the company to
greatly reduce cargo holds, off loads and fines.
• Measurements and reporting
• 3rd party stays current with new rules and regulations
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• Do it yourself
• Service Provider
• No Carrier option if you are an NVO
JP24 Compliance
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Canadian eManifest
Rules
• CBSA has worked to mirror USCBP and the WCO rules and data sets
• eManifest will require carriers, freight forwarders and importers in all modes of transportation (air, marine, highway and rail) to electronically transmit cargo, conveyance, house bill / supplementary cargo and importer data to the CBSA prior to loading in the marine mode and prior to arrival in the air, rail and highway modes.
Data Elements & Process
• Similar to ISF
• 24 hours in advance of vessel loading
Risks
• Cargo will not be loaded or held at POD
Solutions
• Be sure that your service provider and or if you are a carrier that you have tested or are in the test queue.
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Canadian eManifest
Key Dates
Importers System functionality for importers to begin transmission of advance importer data is expected to be deployed in July 2014
Freight Forwarders System functionality for freight forwarders to transmit advance house bill / supplementary cargo data is expected to be deployed in March 2013
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Forecast
• The completion of ACE
• The completion of eManifest
• Full enforcement of the JP24 rule
• China will get all ports complete and enforce
• EU ENS may finally require true security data and
NVOCC and Freight Forwarders may be required
to on their own at the HBL level
• Taiwan may announce their rules
• Others…
These data will truly help the security of the supply
chain and our lives
Known Entities & Known Events
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The Future of Global Trade