1 of 3 DECEMBER 10, 2010 CIRCULAR NO. 32/10 TO MEMBERS OF THE ASSOCIATION Dear Member: EUROPEAN UNION ADVANCE CARGO DECLARATION REGIME COMES INTO EFFECT ON JANUARY 1, 2011 Background On January 1, 2011, the European Union advance cargo declaration regime will come into force. These regulations are akin to the U.S. “24 hour rule” automatic manifest system (AMS) and other cargo declaration requirements that were promulgated after the September 11th terrorist attacks. The EU first adopted its own advance cargo declaration regime in 2005. This was to become effective on January 1, 2009, but implementation was in the result delayed until January 1, 2011. Since July 2009, a transitional period of voluntary compliance has been in effect, but this transitional period expires at the end of this year. As of January 1, 2011, any failure to comply with the requirements contained in the EU advance cargo declaration regime will result in the imposition of penalties by EU member states. Each EU member state may impose penalties against any party found to be in violation of the regime, and according to its own national legislation. Moreover, such requirements will apply in addition to existing customs requirements set forth in the Community Custom Code. Key requirements The new advance cargo declaration regime presents the following four major amendments to existing customs requirements of the Community Custom Code : • It requires traders to provide customs authorities with information on goods prior to import to or export from the EU. • It allows reliable traders – designated as Authorized Economic Operator, or AEO, which expression includes carriers, importers, exporters, freight forwarders, manufacturers, warehouse keepers, and customs agents – to take advantage of streamlined trade facilitation procedures. • It introduces uniform risk-selection criteria for controls, supported by computerized systems for goods brought into, or out taken of, the EU customs jurisdiction. • It introduces an EU data base allowing consultation of all relevant national registration numbers (EORI ). The regulations further require an entry summary declaration for imports and an exit summary declaration for exports. Such entry and exit summary declarations are electronic 2 of 3 messages that must be sent to EU customs authorities at a prescribed point before goods enter or leave an EU state. Responsibility for declaring the required cargo information falls upon the carrier, e.g., the party which has assumed the responsibility of the carriage of the goods, or issued the bill of lading. For practical purposes, a vessel owner / operator or its representative would be such an entity bearing such responsibility. Third parties such as freight forwarders are entitled to file the information instead of the carrier, but the carrier will still ultimately remain liable. Members trading to, from, or within, the EU are encouraged to ensure that they and their agents sufficiently familiarize themselves with the required forms, documentation and procedures of this new regime to ensure that all cargo declarations are submitted in compliance with it so as to avoid unnecessary delays to their shipments, and possible penalties and fines. BIMCO clauses Much in the same manner that BIMCO produced charter party clauses to address the US customs advance notification / automated manifest system (AMS) requirements when they were enacted in 2004, BIMCO has prepared a set of clauses for both voyage