Traffic and Documentation. Users Guideline Page 1

Transcription

1 Users Guideline Page 1 Traffic & Documentation User s Guideline - Part II U.S. & Canada Customs Manifesting Guidelines 3rd Edition by HMM HQ Traffic & Documentation Section in Service Coordination Department March, 2006

2 Users Guideline Page 2 U.S & Canada Customs manifesting Guidebook Contents User s Guideline - U.S. Customs 24-Hours Rule a. What is U.S. Customs 24 Hour-Rule - 6 b. Job of origin & T/S port for AMS filing - 8 c. Shipper/Consignee s name & address - 11 d. Cargo Description (Commodity) - 12 e. HTS Number - 15 f. To order Bill of Lading - 15 g. Consolidated Cargo - 15 h. FROB (Foreign cargo Remaining On Board) - 16 i. Handling of Canada & Mexico Cargo - 16 j. Handling procedure of Co-loaded cargo - 17 k. Filing procedure of Automated NVOCC s cargo - 18 l. Second notify party - 19 m. Bonds - 19 n. IT handling procedure - 19 o. Manifest correction(c/a) - 20 p. C/A handling procedure in HMM system - 21 q. Surcharges - 22 r. Double filing - 23 s. 6H Hold Placed & 6I Removal - 23 t. Customs AMS down time - 24 u. Customs rejection type - 25 v. Cargo roll-over - 28 w. Missed voyages - 29 x. Inland/intermodal cargo clearing procedure - 29 y. Accordance of master B/L & house B/L - 30 z. Difference of cargo s location & shipper s location - 30 aa. Switch Bill of Lading - 30 bb. Special Bill of Lading - 31 cc. 353 Regulation, CSI Examination - 32 dd. CSI Examination - 33 ee. SOC Cargo - 33 ff. Vessel Charter - 33 gg. Seal Management - 34 hh. Empty Container Canada Customs ACI a. What is ACI (Advance Commercial Information) - 37

3 Users Guideline Page 3 b. Job procedure of each party - 39 c. Customer Information - 41 d. Cargo Description (Commodity) - 43 e. Auto Freight Forwarder (NVOCC) - 45 f. Non-auto Freight Forwarder (NVOCC) - 46 g. Accordance of Master B/L & House B/L - 47 h. Manifest Correction (C/A) - 47 i. Switch Bill of Lading - 49 j. Empty Manifest Handling - 49 k. Surcharges - 49 l. Customs Penalty - 50 m. HS (Harmonized System) Code - 50 n. Hazardous Cargo - 50 o. FROB (Freight Remaining On Board) - 51 p. In-Transit Cargo - 51 q. CCN (Cargo Control Number) - 51 r. Definition of Do not Load Hold & Do not unload - 52 s. REJ, DNL, HLD Handling Procedure - 52 t. Roll-over Cargo - 53 u. Explanation of Terms & Acronyms - 54 v. Conversation/Cut-over plans for implementation - 55 User s Manual - U.S. Customs 24-Hours Rule a. AMS (Automated Manifest System) - 57 b. TAG Management of Master B/L - 72 c. House B/L Creation Logic & Procedure - 74 d. Input House B/L No & SCAC Code of Automated NVOCC Canada Customs ACI Rule a. AMS (Automated Manifest System) - 79 b. Master B/L Pre-assignation Procedure - 91 c. Nation, State, City Input Procedure d. Tag Management e. Empty Container Cargo Type f. SLAC (Shipper s Load & Count) g. Cargo Control Number Inquiry - 106

4 Users Guideline Page 4 Form - U.S. Customs 24-Hours Rule a. Letter of Indemnity format for Auto Nvocc (Freight Forwarder) b. Letter of Indemnity format for Non-Auto Nvocc (Freight forwarder) c. Letter of Indemnity for C/A Canada Customs ACI a. Letter of Indemnity for Auto Freight Forwarder (NVOCC) b. Letter of Indemnity format for Non-Auto Freight forwarder (NVOCC) c. Letter of Indemnity for C/A - 124

5 Users Guideline Page 5 U.S.Customs 24 hours rule What is U.S. Customs 24 Hour-Rule Job of origin & T/S port for AMS filing Shipper/Consignee s name & address Cargo Description (Commodity) HTS Number To order Bill of Lading Consolidated Cargo FROB (Foreign cargo Remaining On Board) Handling of Canada & Mexico Cargo Handling procedure of Co-loaded cargo Filing procedure of Automated NVOCC s cargo Second notify party Bonds IT handling procedure Manifest correction(c/a) C/A handling procedure in HMM system Surcharges Double filing 6H Hold Placed & 6I Removal Customs AMS down time Customs rejection type Cargo roll-over Missed voyages Inland/intermodal cargo clearing procedure Accordance of master B/L & house B/L Difference of cargo s location & shipper s location Switch Bill of Lading Special Bill of Lading 353 Regulation, CSI Examination SOC Cargo, Vessel Charter Seal Management, Empty Container

6 Users Guideline Page 6 WHAT IS U.S CUSTOMS 24 HOUR-RULE 1. SCOPE OF APPLICATION A. Customs regulation requires ocean carrier or qualified non-vessel operating common carrier (NVOCC) to electronically transmit cargo manifest information to the agency 24 hours before cargo is loaded at a foreign port onto a ship destined for the United States. According to Customs, this advanced information is necessary in order to reduce the risk of smuggling weapons of mass through the use of oceangoing containers as well as facilitate the release of legitimate cargo following its arrival in the U.S. B. The regulations apply to all vessels that will call at a U.S. port and it affects cargos bound for U.S and on vessels transiting U.S as well as cargo remaining on board the vessel subsequent discharge at a non-u.s. port. C. The regulations do not apply to feeder or transshipment vessels that are not calling the U.S, but the advance manifest requirements will apply before the cargo is loaded on the vessel (Mother Vessel) that will actually call the U.S. D. Also these regulations do not apply to Bulk shipments and break-bulk shipments may be exempted if an exemption application is submitted and approved properly. 2. EFFECTIVE DATE The effective date of the new regulations is December 2,2002, followed by a 60 day grace period and full enforcement date is February 2,2003. Penalties for noncompliance (except for fraud) will not be imposed until February 1, REQUIRED DATA ELEMENTS The following 14 elements will be required for each shipment: A. The last foreign port called by the vessel before it departs for the United States. B. Carrier SCAC (Standard Carrier Alpha ) Code. C. Carrier-assigned voyage number. D. Date of scheduled arrival of the vessel in the first U.S. port in Customs territory. E. Numbers and quantities from the carrier s ocean bills of lading, either master or house, as applicable, expressed in the lowest external packaging unit. Containers and pallets are not acceptable manifested quantities. For example, a container containing 10 pallets with 200 cartons should be manifested as 200 cartons. F. First non-u.s. port (Origin Port) where the carrier takes possession of the cargo destined to the United States.

7 Users Guideline Page 7 G. Precise description of the cargo (or the 6-digit HTS number under which cargo is classified if that information is provided by the shipper) and weight of the cargo or, for a sealed container, the shipper s declared description and weight of the cargo. Generic descriptions such as FAK, General Cargo, Said to Contain, Chemicals, and Foodstuffs would not be acceptable descriptions. H. Shipper s complete name and address, or the identification number issued to the shipper by the Customs Service upon implementation of the Automated Commercial Environment ( ACE ). I. Complete name and address of the consignee, owner or owner s representative or its identification number. J. Vessel name, country of documentation, and official vessel number assigned to the vessel by the International Maritime Organization. K. Foreign port (Origin or T/S Port) where the cargo is laden on board. L. Internationally recognized hazardous material code when such materials are being shipped. M. Container number(s). N. Seal numbers for all seals affixed to the container. Above items (C,E,F,G,H.I,J,K,L,M,N) are related to B/L information and rest ones came from system automatically when manifest is transmitted to U.S. Customs. 4. PENALTIES OR LIQUIDATED DAMAGES FOR FALSE OR UNTIMELY FILING If carrier fails to present accurate manifest data in the required time period,or transmit any false, forged, altered document, paper, manifest, data to U.S.Customs, the proposed regulation specified that monetary penalties could be assessed under the provision of 19 U.S.C.1436(b). Under section 1436(b), the carrier who commits any such violation is liable for a civil penalty of $ 5,000 for the first violation and $ 10,000 for each subsequent violation and any conveyance used in connection with any such violation is subject to seizure and forfeiture.

8 Users Guideline Page 8 JOB OF ORIGIN & T/S PORT FOR AMS FILING For smooth & perfect AMS filing, both origin port & T/S port are required to keep following job procedure very strictly. Here are detailed information. 1. THE JOB OF ORIGIN OFFICE A. Create accurate B/L as per guidance. B. Create correct T/S information into B/L. - AMS filing is done based on mother vessel calling port not out port. If natural port of loading on behalf of T/S port is submitted to U.S Customs, AMS (Automated Manifest System) can t recognize B/L. So all origin offices are strongly requested to create/input accurate T/S vessel & port w/o fail. - If you do not create/input correct T/S information in the B/L, B/L data would not be appeared on AMS. C. Check B/L information before closing. D. Close B/L by using closing option 72 hrs before vessels' berthing time. E. Make T/S cargo information of each voyage then report it to T/S port. Especially the report should contain detailed information, like Vessel, POL, POD/PVY, T/S port, container number, B/L number, B/L type (Direct Account B/L, Non-Automated NVOCC B/L, Automated NVOCC B/L). - Actually T/S port is not able to check B/L of origin one by one to see whether B/L is in good order in comparison with T/S cargo information given from origin office before manifesting to Customs within time frame. If there is some missing, discrepancy in the T/S cargo list and AMS system, actually T/S port may not follow up within allowed time under this new procedure and after all it results in cargo roll-over. so all origin office has to advise accurate T/S cargo information to T/S port 72 hrs before berthing time, otherwise all responsibilities are in each origin offices. F. Keep a good communication channel opened to cope with T/S port's feed back of Customs rejection & hold message. G. Issue C/A & recreate T/S data for roll-over cargo. - Once you receive cargo roll-over notification from T/S port, Please make a vessel C/A and update T/S data w/o fail (See the C/A of vessel change for more information).

9 Users Guideline Page 9 H. As k DIT (Delay in Transit) & cargo holding to T/S port within following time frame. - DIT: Origin office has to send DIT report to T/S port before feeder vessel's sailing at origin port. - Cargo Hold: If cargo holding is necessary at T/S port as per A/C's request, origin office should ask it to T/S port at least 72 hrs before vessel's berthing. I. Take immediate action when you receive rejection & 6H hold message from U.S. Customs via T/S port. - When you receive rejection message for manifest, It means that rejected B/L is still not filed by customs and re-filing is required before 24-hrus clock starts. Once 24-hrs clock starts, you could not touch B/L up to vessel s departure as it is violation against Customs rule. so your speedy action to correct mistake and file rejected B/L to customs within limited time is very important. - As 6H hold message is also issued by U.S. Customs in the event of bad customer, or commodity information, you need to make coordination with T/S port & destination office to fix 6H hold message immediately. - If origin office fails to do timely action, there is no choice but to hold cargo at T/S port and load it onto next voyage. 2. THE JOB OF T/S PORT A. Receive accurate T/S information from origin 72 hrs before vessel s berthing and confirm receipt of it by return. Also report the party, who does not keep guidance, to SEL HQ, if any. B. Once T/S information is duly received from origin, Please check information through the AMS system to see if all B/Ls are in good order. C. File cargo manifest to U.S. Customs at least 30 hrs before vessel berthing. - If the meaning of 24 hours is interpreted literally, you could submit cargo manifest to U.S. Customs 24 hrs before cargo loading into vessel, but it is impossible procedure in reality for you to handle of U.S Customs reaction as Customs response sometimes would be delayed than your expectation, and furthermore follow-up for rejection/hold message should be done before 24-hours clock starts. For this reason, we asked you to send cargo manifest to U.S Customs at least 30 hours prior to vessel s berthing at T/S port where mother vessel calls directly. - T/S port could check T/S error before AMS fling with option # 36 in AMS system and fix it with origin. D. Inform origin office of cargo roll-over, vessel change immediately for needful action. - In case of cargo roll over, vessel change due to space problem & other reasons, T/S port should

10 Users Guideline Page 10 inform the same to origin office promptly in order them to do needful action ( Notifying it to Automated NVOCC, Issuing C/A of T/S vessel & port ). - If cargos that have filed B/L with U.S. Customs require roll-over at T/S port, deletion of filed B/L is mandatory. Please enter into # 12 of AMS system then use option "D" to withdraw B/L from U.S. Customs. - Once schedule is fixed for roll-over cargo, T/S port could handle as normal cargo under procedure. E. Feed back customs response to origin port as quickly as possible. - If rejection reason is related to wrong information such as mis -inputting, please contact with origin offices through the established communication channel and ask them to correct data for AMS filing before 24 hrs clock starts. - If rejection is about format matter, or solvable matter, Please handle it at your office directly. - Please take care of all AMS problems more positively by contacting origin & destination office to avoid cargo roll-over. - If cargo is not loadable by target vessel due to none proper action within timely fashion, Please advise situation of cargo roll-over to origin offices for necessary action, such as notification to shipper, update vessel & T/S of B/L. F. Handle cargo hold of U.S. Customs - U.S. Customs release 6H hold placed message through the system and you also could check result by using # 21, # 23. Please monitor these options very closely before cargo loading to see whether you receive 6H hold placed message or not. - Once T/S (origin office) receives 6H hold placed message from Customs, you must hold cargo at origin port until U.S Customs changes 6H hold placed message to 6I hold removal, otherwise serious consequence would be generated. - Advise the same situation to origin office & destination office and settle problem immediately. G. Handle DIT (Delay in Transit) & cargo hold of A/C - DIT is acceptable as long as origin port send formal DIT report to T/S port within established time. After getting report, Please handle cargo as a normal procedure at the time of cargo loading onto expected vessel. - A/C's cargo hold is also available, if information is received 72 hrs before vessel's berthing time.

11 Users Guideline Page 11 SHIPPER & CONSIGNEE S NAME & ADRESS This is for Master B/L basis. 1. SHIPPER Under 24 hours customs rule, the name and address of the actual shipper must be indicated on the manifest as U.S. Customs want to identify who is cargo owner and where cargo is originated. Currently U.S. Customs tightens enforcement of regulation and any invalid information such as Blank, mentioning of only shipper name, different address with origin would not allowed. Providing this type information will invite closer security and increase the likelihood that shipment will be examined at destination. 2. CONSIGNEE Consignee is also one of important factors and full information with U.S. name and address should be placed in the consignee field without fail, otherwise U.S Customs would regard none-compliance as a serious violation and will issue 6H hold placed message. U.S. Customs acknowledges that for business and financial reasons to order must be placed in the consignee field. Also they admit that FROB (Freight Remaining On Board) cargo would not have U.S name and address. For more detailed information, Please refer to page 15, 16 of this guide book. 3. Notify Party Notify party could be cargo owner, NVO/Freight forwarder, someone who is associated with cargo and full information is required. In case of to order B/L, notify party must contain the owner or owner s representative name. * S/C Holder S/C holder must appear on the B/L as either the shipper or consignee to comply with FMC regulation, otherwise it is violation against FMC rule and results in serious effect. In case that shipper name following S/C holder name, you can refer to below. Ex: S/C Holder- ABC Freight forwarder ABC Freight forwarder on behalf of Seoul Corporation # 270, Yangjae-Dong, Seocho-ku, Seoul Korea TEL: FAX:

12 Users Guideline Page 12 CARGO DESCRIPTION (COMMODITY) The regulation requires a precise narrative description of the cargo or the 6-digit tariff number for those with the skill to provide it correctly. If there is doubt about the accuracy of a 6-digit tariff number, which can sometimes be difficult to ascertain, a precise narrative description should be used. A precise narrative description is a description that is precise enough for Customs to be able to identify the shapes, physical characteristics, and likely packaging of the manifested cargo so that Customs can identify any anomalies in the cargo when a container is run through imaging equipment. The description must also be precise enough to identify any goods, which may emit radiation. How specific that information must be depends on the nature of the commodity. For example, "electronics" is not a precise description, but "CD players" or "computer monitors" would be. Customs will continue to work with the trade to refine what descriptions are acceptable. Customs will not begin its enforcement actions with descriptions when these more difficult commodities are not adequately described. However, cargo descriptions are one of the most important elements to assist Customs in precise targeting, and it is in the trade s interest to become precise and compliant as quickly as possible. Not only will this avoid eventual enforcement action, but it may also avoid container "do not load" message and holds due to Customs not being comfortable that it knows what is in the container. To be clear, IN NO CASE is a blank description, freight all kinds (FAK), said to contain (STC) with or without other description, general merchandise, 26 pallets, various retail merchandise, consolidated cargo or other similarly vague descriptions acceptable. With May 4th, 2003, Customs has began to intensify cargo description on the manifest where the required level of precision is not clear. Customs will continue to notify the carriers The following terms are meant to be used as a guide. They are illustrative, not exhaustive, examples of acceptable and unacceptable descriptions. Phrases or words in parenthesis are meant as examples. Not Acceptable Acceptable Apparel Clothing Wearing Apparel Shoes Ladies' Apparel Footwear Men's Apparel Jewelry (may include watches) Kitchen Appliances Appliances Industrial Appliances Heat Pump Autoparts New Autoparts Parts Used Autoparts Baseball Caps Blasting Caps Caps Bottle Caps Hub Caps

13 Users Guideline Page 13 Chemicals, hazardous Chemicals, non-hazardous Electronic Goods Electronics Equipment Flooring Flooring Foodstuffs Iron Steel Leather Articles Machinery Machines Pipes Plastic Goods Polyurethane Rubber Articles Rods Actual Chemical Name (not brand name) Or U.N. HAZMAT Code Identifier # Computers Consumer Electronics, Telephones Electronic Toys (can include Gameboys, Game Cubes, Dancing Elmo Doll etc.) Personal/Household Electronics (i.e. PDA's, VCR's, TV's) Industrial Equipment, Oil Well Equipment Automotive Equipment, Poultry Equipment etc. Wood Flooring, Plastic Flooring, Carpet, Ceramic Tile, Marble Flooring Wood Flooring, Plastic Flooring, Carpet, Ceramic Tile, Marble Flooring Oranges Fish Packaged Rice, Packaged Grain, Bulk Grain Iron Pipes, Steel Pipes Iron Building Material, Steel Building Material Saddles Leather Handbags Leather Jackets, Shoes Metal Working Machinery Cigarette Making Machinery Sewing Machines Printing Machines Plastic Pipes PVC Pipes Steel Pipes Copper Pipes Plastic Kitchenware, Plastic Houseware, Industrial Plastics Toys, New/Used Auto Parts Polyurethane Threads Polyurethane Medical Gloves Personal Effects Hous ehold Goods Rubber Hoses Tires Toys Rubber Conveyor Belts Welding Rods Rebar Aluminum Rods

14 Users Guideline Page 14 Scrap STC (Said to Contain) General Cargo FAK ( Freight of All Kinds) "No Description" Tiles Tools Wires Reactor Rods Plastic Scrap Aluminum Scrap Iron Scrap Ceramic Tiles Marble Tiles Hand Tools Power Tools Industrial Tools Electric Wires Auto Harness Coiled Wire (Industrial)

15 Users Guideline Page 15 HTS (Harmonized Tariff System) Number Customers can utilize the HTS number as well as cargo description in place of commodity description on the manifest. However, it is suggested that if they do this they provide at least a general description along with the HTS number. This is for the general knowledge of shipping people so that they know what they are moving. The commodity description may be utilized for other purposes other than customs, like railroad download of manifest, terminals, truckers, etc... so a general description along with the specific HTS number is fine. The HTS number is simply input in place of commodity description. The Harmonized Tariff System (HTS) number is simply the tariff number accepted internationally at least the first six digits of it for most nations. After the first six digits then it becomes country specific for their internal purposes. Customs prefers the HTS number as they design that system. TO ORDER BILL U.S. Customs admits that "TO ORDER" is acceptable in the consignee field. In this case, if possible you need to input complete name & address following TO ORDER OF statement to show who the bill is to order of. If this recommendation is not acceptable due to shipper s request, you may input just "TO ORDER statement or similar wording in consignee field. Under "TO ORDER B/L" 1st notify party always must contain U.S. name & address of consignee or the party that is responsible to the cargo without fail. In case of FROB (Freight Remaining On Board) cargo, which discharges at foreign port, the actual consignee name and foreign address must be listed in the first notify field. However, if the shipment is not a "TO ORDER shipment, the actual consignee name and address must be listed in the consignee field. CONSOLIDATED CARGO If the cargo is consolidated from many different suppliers for the same consignee and there is no House B/L involved, that it is not necessary to create house bills for each supplier depended upon only FCR. Instead of it, a single B/L as we did prior to CSI is acceptable. In this case the shipper can be the name of the consolidating party, normally a company providing 3rd Party Logistics (3PL) services for the

16 Users Guideline Page 16 eventually cargo owner. Sometimes the use of the 3PL as the shipper can create a conflict with the FMC requirements that the S/C holders name must appear on the B/L. If this is the case then the shipper can be shown as: Name of 3PL, as agent for Name of S/C party. When describing the cargo in a consolidated container it is necessary to supply sufficient information to allow U.S Customs to determine if the cargo presents a risk, but this does not mean that the B/L must include a complete inventory. For instance, a container of 40 cartons of footwear does not have to include the model numbers or other descriptions of the cargo. If the container included different types of commodities then a listing of the different commodities must be included (35 cartons of footwear, 5 cartons of automobile disk break linings). FROB (Freight Remaining On Board) FROB (Freight Remaining On Board) cargo is cargo that is loaded in a foreign port and it to be unloaded in another foreign port with intervening vessel stop in one or more ports in the United States. FROB cargo is also governed under 24-hour rules and cargo manifest should be provided 24 hours before cargo loading like normal cargo destined for U.S port. For shipper, consignee & notify are not associated with a name and address in the United States and U.S Customs also recognizes the fact. In case of HMM, there are FROB cargos for PS1, PS3 & PNW service, which call Vancouver Port after touching U.S port and origin office have to follow this rule. One more thing, C/A is available after AMS filing as manifest correction for FROB cargo has something to do with foreign country s Customs not U.S Customs. HANDLING OF CANADA & MEXICO CARGO Cargo destined for Canada & Mexico via U.S. port is required to governed under 24 hours rule. In this regard, there are several points you have to understand. Firstly, Canada and Mexico address are okay on manifest, regardless of who arranges the in-bond movement as long as consignee s broker/handling party of U.S are indicated on the notify column correctly. Secondly, C/A for inbound arrangements are the same as normal U.S. destined cargo.

17 Users Guideline Page 17 HANDLING OF CO-LOADING CARGO Customs is defining the term "master NVOCC" as the party responsible for presenting the container to the vessel carrier. After all Automated NVOCC or Non-Automated NVOCC could be Master NVOCC of co-loading cargo and handling procedure would be different depended upon what type of co-loading. All origin offices, therefore, have to ask customer or agent what type of co-loading and push them do needful business under current customs rule. By doing so, inbound business at discharging port would be accomplished smoothly for both carrier & customer. Here are detailed procedures to handle coloaded NVO containers. 1. MASTER NVO IS AUTOMATED, CO-LOADED IS AUTOMATED An automated master NVOCC is responsible for all paper cargo declaration. If individual Automated NVOCC cargo is co-loaded into container, each Automated NVOCC must file directly to Customs in AMS. In this case Master Automated NVOCC have to present S/R for whole cargo to HMM with index & SCAC CODE of all Automated NVOCC. Also HMM's master B/L is tagged "N" and it is not transmitted to U.S. Customs. 2. MASTER NVO IS AUTOMATED, CO-LOADED IS NON-AUTOMATED An automated master NVOCC is responsible for providing paper cargo declaration to U.S. Customs. If Non-automated NVOCC cargo is involved into container, they must provide the cargo declaration information to the master Automated NVOCC to transmit information to Customs. After all, the Automated NVO is responsible for reporting all house bills in their AMS submission. In this regard, HMM's master B/L is tagged "N". HMM's master B/L is not transmitted to U.S. Customs. 3. MASTER NVO IS NON-AUTOMATED, CO-LOADER IS NON-AUTOMATED HMM will issue a single master bill for this shipment showing the master NVO as the shipper and consignee. The master bill is to be tagged "Y" and must include all house bills for all co-loaders. All house bills are transmitted to AMS by HMM 24 hours before loading the vessel. 4. MASTER NVO IS NON-AUTOMATED, CO-LOADED IS AUTOMATED In case of Master non-automated NVO, carrier is responsible for filing House B/L to U.S.Customs and each co-loaded Automated NVO has to submit their House B/Ls to Customs directly. Under the original 24-hour rule House B/L was the document that cleared Customs. To see this House B/L in our system, it was necessary to input separate HMM Master B/Ls that would allow destination to track the entry/release of each Automated House B/L and release the cargo to consignee. With the special bill provisions now in place the customs entry has reverted to the carrier s Master B/L and these procedures are no longer required for tracking purposes. This means that only a single carrier Master B/L is required for a shipment. The origin office must show the HMM House B/L numbers against this MB/L because this is still required. Including the SCAC and HB/L numbers for the automated NVO co-loaders in the section allows destination to insure that the NVO has also reported to AMS.

18 Users Guideline Page 18 FILING PROCEDURE OF NVOCC 1. PROCEDURE - Automated NVO A. Once NVOCC s obtain International carrier bond from U.S. Customs, they are ready to submit their cargo manifest to Customs without carrier s intervention. B. Please make a contract with Automated NVOCCs as to their direct manifest submission. By doing so, they are responsible for consequences of their direct manifesting and failure of reporting to HMM, when they receive rejection or 6H hold message from U.S. Customs ( For this purpose, you should use attached Letter of Indemnity ). C. NVOCCs prepare cargo information and present to U.S. Customs at least two days before vessel berths and provide HMM House B/L number & master B/L information. D. When Automated NVOCCs receive rejection or 6H hold message from U.S. Customs, they have to notice the same content to HMM immediately in order to do immediate action. E. Automated NVOCC s are fully liable for reporting manifest correction of house B/L submitted by them to HMM so that HMM would update Master B/L information such as port of loading, place of delivery, piece count, weight, measurement, etc for smooth cargo handling. E. If cargo is not loadable on target vessel or port of discharging is changed, Please advise same situation to Automated NVOCC immediately enable them to correct manifest data on time. - Non Automated NVO A. As House B/L submission to U.S. Customs through the HMM is possible for only Non-Automated NVO. So please verify what type of NVO. B. Please receive S/R (Shipping request) for both Master B/L & House B/L. C. Please create both Master B/L & House B/L then submit them to U.S. Customs within required time. D. Please notify rejection or 6H hold message to Non-Auto NVO immediately and collaborate with them to fix problems as soon as possible. E. If cargo is not loadable on target vessel or port of discharging is changed, Please advise same information to Non-Automated NVO 2. LETTER OF INDEMNITY FORMAT (Please see attachment of form).

19 Users Guideline Page 19 SECOND NOTIFY The automated NVOCC s are required to list vessel carrier as the second notify party of House B/L w/o fail. If container is denied at foreign port, Customs will notify the automated NVOCC, and it will be the NVOCC s responsibility to make the necessary notifications to carrier. Also, Customs posts status of cargo clearance on the system with second notify and carrier check & see it on the AMS for smooth cargo releasing, once automated NVOCC s indicate carrier on second notify of their manifest properly. So you are kindly requested to ask Automated NVOCC s, who submit manifest to U.S. Customs, to mention HMM on the second notify field perfectly. BONDS 1. INTERNATIONAL CARRIER BOND NVOCC s that are transmitting their cargo declarations electronically to CBP ( Customs and Border Protection), whether directly or thoroughly the use of a service provider or port authority, must obtain an international carrier bond. Once a bond is on file with CBP, it is good for all ports of entry. 2. TYPE 2 CUSTODIAL BOND AMS participants are required to have a type 2 Custodial Bond if business practices involve creating inbond shipment, initially bond requirement will be set in the amount of $ 50,000. However, Port Directors may increase the bond amount at their discretion. I.T. HANDLING PROCDURE (Immediate Transportation) After Special Bill took effect, carrier is responsible for cutting IT (Immediate Transportation) for inland cargos regardless of cargo type. Ig, carrier has to process IT cutting for all inland shipments of direct customer/non-auto NVO as well as Auto NVO. Thus Auto NVO does not need to cut IT (Immediate Transportation) of inland cargo any more.

20 Users Guideline Page 20 MANIFEST CORRECTION In relation to cargo manifest correction, U.S. Customs still does not determine their policy and just say perfect cargo manifest should be submitted to them from the beginning stage to avoided customs penalty & cargo inspection at discharging port. Also they state that "information may and can be changed due to clerical error, etc., and that change should be notified to U.S. Customs because they would rather carrier be honest, then to not notify at all of the change. Under this circumstance, It is true that change of cargo manifest after filing would require a lot of risks & burdens for carrier & customer, though C/A is inevitable in considering market practice. U.S. Customs focus their utmost attention on the 14 mandatory items as a priority and especially changes of cargo description, consignee, and container number will lead considerable impact to HMM & customer as these information would not changeable in Customs point of view. Thus we would like to introduce you of following procedure with recommended Letter of Indemnity format for HMM interest. 1. PROCEDURE A. Please try your best to collect accurate S/R data from customer from the beginning stage to reduce manifest correction as much as possible. B. Please try to avoid manifest correction of consignee, cargo commodity, container & seal number as they are first important factors by U.S. Customs and they think these data should be accurate from the beginning stage without argument. C. If C/A is inevitable due to A/C's demand, you should let them know whole possible risks & scenarios to customer correctly. D. If customer fully recognizes whole situation and ready to take all responsibilities, then go into C/A against complete Letter of Indemnity w/o fail. E. Regarding none 14 items (Please refer to page 6 for 14 items), You can issue C/A against Letter of Indemnity. 2. LETTER OF INDEMNITY FORMAT (Please see attached format).

21 Users Guideline Page 21 C/A HANDLING PROCEDURE For more speedy & efficient business, only destination offices in U.S have authorization of manifest correction on AMS. Please read following procedures correctly. 1. SIMPLE C/A Simple C/A means change or update of contents on manifest, which is already submitted to Customs. In this case, each origin office obtain a Letter of Indemnity from customer first then issue C/A on the HMM system and notice the same to U.S. destination offices through the message. Upon receiving it, destination office checks the C/A inquiry system and send C to U.S Customs on daily basis. 2. SPECIAL C/A Special C/A means that unusual C/As such as, B/L split, B/L combine, B/L deletion and they require complicated process. In case of B/L split, first you have to take a letter of indemnity from customs and split B/L into several B/Ls on the system and notify details to destination offices, then they will submit new B/L to update previous B/L with Customs. Receiving request & L/I => Issuing C/A in the HMM s system => Notification to destination => Manifest update through AMS by destination. For B/L combine, Please secure a letter of indemnity from customer and update only target B/L s contents without touching other B/Ls on the HMM system and advise concerned information to destination offices. Once discharging offices are informed by you, they need to delete unnecessary B/Ls from Customs record and re-transmit combined B/L to Customs for update. Once above procedure is finally done, you have to remove unnecessary B/Ls from HMM s system as per destination office s order. Receiving request & L/I => Issuing C/A for target B/L in the HMM s system => Notification to destination => Manifest deletion & update through AMS by destination office => Unnecessary B/Ls removal on the HMM system by origin. B/L deletion except roll-over cargo is required to be done by destination office to avoid confusion. Once origin office ask destination office, then they delete unnecessary B/L from Customs file then origin office finally get rid of B/L from HMM system. Receiving request & L/I => Notification to destination => B/L deletion from Customs file by destination office => Unnecessary B/Ls removal from HMM system by origin..

22 Users Guideline Page 22 SURCHARGES To compensate for carrier s additional working & efforts under 24 hrs rule, there has been rule making on the general tariff and following charges are applicable. 1. Surcharge Code & amount A. CDC (Cargo Declaration Data Charge) : USD 25 per Master Bill of Lading. - According to Special Bill, Master B/L as well as House B/L is required to report to U.S. Customs 24 hours prior to loading of cargo and all Master B/Ls for direct A/C, Non-Automated NVOCC, Automated NVOCC are applicable for this surcharge B. CDN (Cargo Declaration Data fee for Non-automated NVOCC s House B/L) : USD 25 per House ill of lading. C. CDF (Cargo Declaration Data Correction fee) : USD 40 per each submission. - In the event one of 14 essential elements of Master B/L & House B/L, which have already submitted to U.S. Customs, are changed by customer s request, this charge shall be applied. 2. How to input surcharges on the B/L A. Please collect above surcharges from your A/C w/o fail from effective data, SEL TPS/PRC has guided you already. B. If you input above surcharge before closing of documentation, you do not need to issue the freight C/A to insert them on the freight column, otherwise freight C/A is necessary. C. In case of C/A for 14 elements, first you should input CDF on the freight column by issuing freight C/A then you would issue other C/A of 14 items as system has a function to block none inputting of CDF when other C/A. is issued. D. CDF is on the basis of each C/A at origin office not data manifest transmission of U.S. office to Customs. * Note: - In case of Non-Auto NVO, both CDC & CDN are applicable respectively. - CDF is applicable for each submission for both Master B/L & House B/L after manifest submission. - Above is applicable for only cargo destined for U.S not FROB as VCR discharging cargo is subject to Canada Customs ACI)

23 Users Guideline Page 23 DOUBLE FILING Double filing means manifest (B/L) of same shipment is transmitted to U.S.Customs by both carrier & Automated NVOCC at the same time and it happens so frequently. Please be advise that U.S. Customs has clarified that carrier that transmitting manifest in AMS for Automated NVOCC s should be stop doing as it is definitely violation of 24 hrs rule. Once NVO becomes automated, They are fully responsible for filing their manifest with U.S. Customs directly without any exception and carrier also does not have any option to be involved into AMS filing any more, otherwise carrier would be in position to be taken customs penalty. In the beginning stage, a lot of NVOCC s were still Non-Automated due to system or monetary matter, but more and more NVOCC s are becoming authorized automated by U.S. Customs. Hence all origin offices have to check record of NVOCC's status and update it periodically not to see double filing matter any more. 6H HOLD PLACED & 6I REMOVAL With effective March 4, 2003, two new disposition codes have been programmed in AMS by U.S. Customs and they issue " Do Not Load message" in AMS for all automated participants. Disposition code: 6H - Do not load Disposition code: 6I - Release of the Do Not Load Message. 6H hold placed message is issued due to vague cargo description (Commodity) or wrong customer information. So, you need to ask customer to provide you with more detailed/accurate cargo description & customer information through shipping document. When 6H hold placed message is issued by U.S. Customs, cargo has to be held at loading port until Customs confirm to load of cargo. For cargo holding, U.S. Customs will coordinate with foreign customs authorities in each CSI and non-csi port regarding how it will clear cargo. Foreign government will perform inspection at CSI & non-csi ports and advise result to U.S. Customs. Immediately after the foreign government notifies U.S. Customs that the shipment is cleared, CBP will remove the 6H Hold placed message through AMS. This message is shown # 21 & # 23 of AMS and here are right handling procedure. - Update commodity of B/L to be more detailed/accurate then submit B/L to U.S. Customs immediately. - Let destination offices (RCSC PHX & CHA) know situation then ask them to check U.S.Customs to remove 6H hold placed message. - Once 6H hold placed message is changed to 6I hold removal by Customs before vessel's sailing, you can load cargo onto target vessel without additional filing, otherwise you have to shift cargo to next available vessel. - If cargo loading is not possible with target vessel, you must delete B/L after Customs issues 6I hold removal message then shift cargo to next available vessel (You need to ask destination office to delete B/L from Customs first then remove it from HMM system then change VVD of B/L to new one). - Once above step/working are completed, please file B/L with new vessel like normal cargo.

24 Users Guideline Page 24 * Note - This procedure is also applicable for Auto NVO shipment and cargo is not loadable onto target vessel until U.S. Customs and Auto NVO finally withdraw 6H HOLD PLACED message. - 6H hold placed cargo of Auto NVO, You have to keep communication channel with Auto NVO in order to know HOLD & REMOVAL situation. CUSTOMS AMS DOWNTIME U.S. Customs is required to initiate scheduled downtime for system maintenance and updates. Those times are generally in two or three hour increments and regularly occurring events or are announced well in advance. For regularly scheduled downtime, which meets the definition above, carrier/nvocc s should file enough in advance to ensure that Customs has the entire 24 hour period prior to loading. The regularly scheduled downtimes are as follows; - Saturday 05:00-07:00 EST - Saturday 23:00 into Sunday 03:00 SET - Sunday 22:00 into Monday 02:00 EST - Wednesday 050:00-07:00 EST Thus, Please stay away from above-mentioned system downtimes in filing cargo manifest to U.S. Customs to ensure perfect manifesting.

25 Users Guideline Page 25 CUSTOMS REJECTION TYPE There are almost 300 common errors for AMS filing on the distributed common error appendix, but it is too difficult to identify accurate reason with description. That s why we would like to introduce frequent errors as following. Below are only common errors you would encounter after AMS filing. 033 INVALID INBOUND NUMBER When manifest is submitted to U.S. Customs for cargos, which are not discharged or passed U.S. ports, it could be shown on the system. As an example, If PNW service s schedule is changed due to operation reason and it calls VCR first, you do not need to present VCR cargo to U.S. Customs as it is not FROB, otherwise you will see the above message. 038 B/L ALREDY ON FILE This error message appears when you submit the same Bill of Lading to U.S. Customs again in case the same Bill of Lading is existed on the file of Customs. In order not to see it, you can check #10 of AMS and delete existed Bill of Lading from Customs first then file it with new vessel. 040 B/L NOT ON FILE This message means that there is no Bill of Lading in the U.S. Customs file when you send D(Delete) option to Customs through the AMS. So please do not delete some B/L on the AMS, it has been deleted by you already. 047 MISSING DESCRIPTION When bad character is inputted to B/L s description, this rejection is issued. 058 ACCUM QTY NOT= BILL QTY Please check piece count to see if piece count unit or total number is right. 084 EXCEEDS BILL CNT FOR PORT In case of no ETB in long-term vessel schedule, this error message appears. 048 INVALID SECONDARY SCAC1 026 SECONDARY SCAC1 NOT AMS 097 PLEASE CALL CLIENT REP In case of SCAC Code & House B/L of Auto NVO cargo are missing from #2859, this error message appears. So, please input SCAC Code & House B/L no correctly.

26 Users Guideline Page PORT NOT VALID FOR IB NUM It show when you file some Bill of Lading to Customs with new vessel after previous Bill of Lading is deleted by you and the reason is because In-Bound Number given by discharging port is not deleted Customs system and it is reused again. 148 INCORRECT CONV CODE If vessel is not registered in U.S. Customs in advance, this error message appears. when new vessel is launched for U.S. trade, service is switched, vessel s name is changed, operation carrier have to advise vessel information and register it to U.S. Customs prior to AMS filing w/o fail. 196 INVALID SECONDARY SCAC2 / 027 SECONDARY SCAC2 NOT AMS This error message appears when SCAC Code & House B/L No of Auto NVO are not inputted into system(# 2859). so please make sure to input necessary information before AMS filing. 303 EXCEEDED MAX SNP COUNT This error message appears when more than 10 different SCAC codes for Auto NVO House B/L are inputted into #2859 as U.S Customs allows 10 limits. 325 MASTER BILL TYPE EXPECTED This error message appears when wrong tags (Y, N, Blank) are inputted, or same B/L no is reused by HMM/ Auto NVO.

27 Users Guideline Page 27 Undermentioned cases are occurred sometimes when you try to go into # 11 in AMS for filing or short after AMS filing. INBOUND SCHEDULE NOT FOUND It appears when you try to submit manifest to U.S. Customs when POD is not registered in the operation schedule of U.S. System. LIOYD S OR FLAG ERROR When vessel register information such as Lloyd s code, flag, Etc is missing or different, you will find this error message and need to correct it. NO RESPONSE OF U.S. CUSTOMS If you do not receive response from U.S. Customs, please first check to see if you are in U.S customs down time or not. If not, it probably because of double vessel against same Lloyd code on the HMM system or U.S. Customs system matter. Said mentioned things are very common cases and there is a possibility of unexpected rejection types would be occurred. When you are not able to fix problem on time, Please consult with your IT (Local, SEL, HMMA) & HASA PIX/CHR, SEL.HQ/TRF & DOC immediately.

28 Users Guideline Page 28 CARGO ROLL OVER Cargo roll over would be occurred frequently due to various reasons such as space problem, customer s request, unexpected incident, etc and it requires special attention of all parties involved to resubmit cargo manifest to U.S. Customs properly. Here are two cases for cargo roll over. 1. Local cargo If cargo roll over is necessary for above-mentioned reasons, the most important thing is to keep good communication channel among concerned parties. Normally decision of cargo roll over is made by sales organization and they have to advise the same situation to documentation party & terminal immediately for smooth AMS filing & cargo loading, otherwise documentation party is likely to fail to provide U.S. Customs with cargo declaration on time. If manifest of roll over cargo is already sent to Customs with previous vessel, most important thing is that you have to delete first submission from Customs and then transmit manifest( B/L) with new target vessel. Also you are responsible for reporting the same to Automated NVOCC s in order them to present accurate cargo information to U.S. Customs again. 2. Transshipment cargo At transshipment port, cargo loading is delayed due to several reasons. If cargo roll over is inevitable, transshipment port should notice it to origin port immediately so that origin office could update vessel & voyage on the Bill of Lading and let Automated NVOCC know changed vessel information for perfect filing. Once above working is done, finally transshipment port submits manifest of roll over cargo to U.S Customs correctly. In this case, If manifest of roll-over cargo has already sent to U.S Customs by origin office, they need to delete manifest of roll-over cargo from U.S. Customs first then change VVD to new target vessel so that T/S port finally resubmit manifest to U.S. Customs on time.

29 Users Guideline Page 29 MISSED VOYAGES If information on a container has been transmitted 24 hours prior to loading on the vessel and the 24 hours have expired without the carrier receiving a DO NOT LOAD message from U.S. Customs, but for some reason the container misses the sailing of the vessel, the container would be allowed to sail on the next schedule voyage without requiring a new 24 hours period, provided that; - The original bill of lading is deleted from the original vessel. - The bill of lading is input on the second vessel without any changes to the bill information with the exception of the change required to the transportation/voyage data. - The next scheduled voyage must be within be within 24 hours of the previous departure time. If this is not the case, a new 24-hour time frame will be required prior to loading on the second vessel. Please make sure this case would be applicable only when next voyage is connected within 24 hours from first scheduled voyage. For example, after AMS filing if cargo roll-over is necessary from SAX vessel to PSI vessel at Singapore port due to space problem, PS1, next scheduled vessel, should depart within 24 hours from SAX vessel s sailing time. INLAND/INTERMODAL CARGO CLEARING PROCEDURE - U.S. Customs allows cargo that enters the U.S. to move away from the discharging port into the interior of the country prior to the cargo being cleared by U.S. Customs. This allows the cargo to start its intermodal/inland movement immediately after discharging without being delayed at the port of discharging during the process of clearing U.S. Customs. - All cargo that is moved away from the discharge port prior to its having cleared U.S. Customs must move under the coverage of a custodial bond and is referred to as in-bond cargo. The custodial bond acts as an insurance policy against which Customs will assess any penalties that may be levied against the bondholder for failure to properly declare and clear in-bond cargo. - Customs requires that an in-bond document be filed for all cargo that will move away from the discharge port prior to Custom s clearance. The document used for most intermodal shipment is an I.T(Immediate Transportation). The I.T. allows cargo to move from the discharge port s Customs district to another Customs district within the U.S.A T&E (Transportation and Export) is issued for cargo that discharges in the U.S. and will move overland to a foreign destination requires that the filer be a participant in Customs paperless master in-bond program. This program is to open to AMS participants. - Paperless in-bond participants must have the capability to (a) and submit the IRS number of the custodial bond holder and the U.S. Customs district/port code of the inland customs clearance location in their AMS transmissions and (b) transmit an in-bond arrival message to U.S. Customs when he cargo reaches the inland customs clearance point. U.S. Customs will not release Customs status of the cargo until the in-bond arrival has been reported.

30 Users Guideline Page 30 ACCORDANCE OF MASTER B/L & HOUSE B/L Under 24 hours rule, both Master B/L and House B/L are submitted to U.S. Customs and basic information such as vessel & voyage, port of loading, port of discharging, place of delivery of both B/Ls (Master B/L & House B/L) are required to be same correctly without any exception. Also, the sum total of piece count, weight, and measurement of house B/Ls should be the same with those of master B/L. If C/A of said mentioned items is necessary, you are required to issue C/A in Master B/L & House B/L separately as current system does allow Master B/L (or House B/L) to reflect C/A to House B/L (or House B/L ) automatically. Additionally, options #2871 has been designed in GIS and they allow you to check several items in advance to reduce unnecessary discrepancy. DIFFERENT SHIPPER S LOCATION There is a possibility of difference of cargo s origin & shipper s location. Namely, cargo is originated from country A, but actual shipper is located in country B. In this case, Country B shipper should be shown on the Bill of lading as following Manner. Shows the country A party as first name on B/L as agent for country B party, showing the full address of the country B party. SWITCH BILL OF LADING In considering trading practice, there is no choice but to accept Customs request on B/L switching, but carrier should pay utmost attention on this business as the changing of shipper /consignee names & address after submitting the 24 hour notification will raise red flags for U.S. Customs. As described on the manifest correction guide, manifest change after AMS filing will accompany Customs penalty & extensive cargo examination at destination. Thus please switch Bill of Lading before AMS filing (In case of out port, This manner is available), If not possible, Please let party requesting such change know reality and secure firm Letter of Indemnity from the party to be sure that they has the financial capability and then switch B/L.

31 Users Guideline Page 31 SPECIAL BILL U.S Customs & Border Protection has introduced Special Bill in the market in relation to 24 hours Customs rule and this new procedure took effect from January 10 th, 04. Here are detailed information. 1. Effective Date January 10 th, Background This new provision is aimed at several levels, but its primary intent is to allow the carrier to again handle the IT (Immediate Transportation) function of moving Automated NVO Bills to inland destination. a secondary, but equally important, will allow the NVOs (Both Auto NVO & Non-Auto NVO) to enter their bills in AMS while referencing the carrier Master Bill in the same process. This means that the entry information will be presented to the carrier using the Master B/L number. This will eliminate the problem the terminals have been having when trying to match the carrier s freight release (Using Master B/L number) to the Customs release which reflects the House B/L number. 3. Major Changes Under Special Bill, There are three major changes in comparison with original procedure. 1) Auto NVO input carrier s Master B/L No & SCAC Code on the SNP(Second Notify Field) of their House B/L. A. For this purpose, HMM has developed Master B/L No Pre-Assign function on the booking system. B. If Automated NVOCC does not want Pre-Assigned B/L No at the time of booking, Please encourage them to present shipping request (S/R) first then get the Master B/L No. C. If Automated NCOCC wants Master B/L No in advance before documentation processing, Please assign Master B/L No at the time of booking by using developed function and present it to customer. (Please make sure that HMM's Master B/L No consists of 15 character - HDMU + prefix (4 digits) + XXXXXXX _. D. Ask Automated NVOCC to indicate correct HMM's Master B/L NO & SCAC CODE "HDMU" and input right B/L information (piece of count, weight, measurem ent, etc) on their House B/L to match Master B/L. E. If Pre-Assigned Master B/L No is changed, or different, Please immediately correct Master B/L No of shipper to ensure proper manifest submission. F. Current AMS Filing time is not changed. Thus please have Automated NVOCC submit manifest to Customs 24 hours before vessel's berthing time G. If information such as piece of count, gross weight, measurement, etc of House B/L is changed, Master B/L also needs to be updated to U.S. Customs. so ask Automated NVOCC to report same thing to HMM without fail. 2) Carrier submits all Master B/L to U.S. Customs 24 hours before cargo loading A. HMM is required to submit Master B/L details for all shipments (Direct A/C, Automated NVOCC,NON-Automated NVOCC ) to U.S. Customs 24 hours before cargo is loaded onto vessel. B. Shipping request (S/R) of both Master B/L & House B/L of Automated NVOCC should be taken from shipper 72 hours before vessel's berthing time. C. Input whole & accurate information on the Master B/L, especially piece of count, weight, measurement, etc of Master B/L are required to be equal to House B/L's total information.

32 Users Guideline Page 32 D. If contents of Master B/L, such as piece of count, weight, measurement are changed, House B/L also should be changed to Customs. E. Master B/L will be used for Customs clearance purpose only, but House B/L would be reviewed by Customs for targeting purpose F. Customs will release cargo hold ("6H-DO NOT LOAD") message to carrier against Master B/L as well as to the Automated NVOCC House B/L. G. USA import customs entry will take place against Master B/L. H. Cargo release in terminal also will be against Master B/L. 3) IT (Immediate Transportation) handling for inland cargos is done by Carrier. HMM is responsible for cutting I.T for inland shipments regardless Customer's type. 353 REGULATION With effective May 3, 04, all AMS participants are required to submit two additional elements to U.S. Customs as to 24-hours rule. Please read following contents then comply with new regulation. - Effective date: May 3,04 - Purpose: To verify manifest is submitted to U.S. Customs 24-hours before cargo is loaded onto vessel. - Required elements : Departure Date & Time of foreign port -Time frame : Within 24-hours after vessel's sailing - Method System saves VVD & POL when AMS filing then sends two information automatically depend upon vessel's schedule. Mandatory working by origin user is not necessary. - HQ's requirement The purpose that U.S Customs want to receive these data is to see if all AMS participants keep 24 hours rule or not. As you may think, with this new rule Customs is able to know easily whether manifest is submitted within timely fashion or not. Therefore you are strongly asked to file manifest to U.S.Customs within established time frame. CSI EXAMINATION U.S. Customs sent representatives to several main origin ports and they are doing joint examination with foreign Customs as to local & T/S cargos destined for U.S. In this process, they will ask you to check more information of customer/commodity or update manifest after AMS filing. Here are more information for you. - CSI ports conducting joint inspection by local & U.S. Customs officials.

33 Users Guideline Page 33 Busan, Korea Tokyo, Japan Kaoshiung, Taiwan Singapore Laemchabang, Thailand Bremerhaven, Germany Le Havre, France Rotterdam, Nethlands Felixstowe, Belgium - Manifest correction You can provide CSI team with more detailed information of customer/commodity when they demand it, but manifest update is not necessary as manifest is already accepted by U.S. Customs. - Examination Fee In the process of cargo inspection, additional costs like examination, shuttle, etc would be occurred and these are chargeable to cargo owner as per HDMU-040, Rule #109 (Pass-Through of Security Charges. * Note Some local Customs like Taiwan break seal in process of cargo random checking then affix new seal to container. In this case, T/S port must notify same situation to both origin & destination office in order them to notify it to customer and amend manifest correctly. SOC CARGO 1. When HMM Cargo is loaded to other s carrier If HMM s own cargo is loaded to other carrier as a SOC, HMM is responsible for reporting manifest to U.S. Customs as you are manifesting with current consortium carriers (APL,MOL). 2. When HMM receives SOC booking from other carrier In this case, each carrier who books SOC cargo to HMM need to submit their manifest to U.S. Customs directly. 3. When NVO books SOC Cargo to HMM If the SOC containers are to be moved as revenue cargo, they must be reported under a HMM bill of lading. If this is the case than HMM must report the B/L to AMS in the normal manner complying with the 24HR rule. NVO at this end must then make an entry with Customs to clear the containers before they can be delivered. Since the containers are arriving as manifested "full" containers local demurrage rules will apply at the ocean terminal unless special arrangements are made with the terminal before hand. If the NVO is to be the actual shipper & consignee of the containers than there is no need for a House b/l. If they are doing this for different parties then these parties must be named on a HB/L, either filed directly to AMS as an automated NVO or by HMM as a non-automated NVO.

34 Users Guideline Page 34 vessel(space) CHARTER If HMM make space charter to load cargo destined for U.S, responsible party of AMS filing is HMM not other carrier. In order to submit manifest, vessel schedule needs to be in HMM s system and vessel particular (Information) is also required to registered in Customs file in advance. SEAL management Seal is one of important factors U.S. Customs is focusing to enhance security under 24 Hours rule. Therefore, we would like to ask you to pay your utmost attention to seal # management and here are detailed guidance. 1. High security seal using Please use only high security seal not normal seal for U.S bound cargo. This is not a just requirement of U.S Customs but duty of carrier, who joined C-TPAT (Customs Trade Partnership Against Terrorism). Furthermore customers is also very sensitive about seal management of carrier to secure safety of their goods contained in container. Hence, please have shipper or third parties who directly affix seal to container follow this regulation very strictly. 2. Seal No recording & double checking In order to record of seal # and make double checking, Please adhere to following procedures. - Received shipping request, in which mentioned container & seal # affixed by shipper without fail. - Check container & seal # of shipping request with actual information of container through the system or procedure available in your side. - Verify seal # with shipper, trucker, terminal to see if there are missing, broken, discrepancy. 3. Seal missing, broken of in-transit container If seal missing, broken, discrepancy are found by T/S port for in-transit container, you should follow below procedures. (T/S Office) - Set up procedure with terminal in your area to get notification of seal missing, broken, discrepancy in timely manner.

35 Users Guideline Page 35 - Cooperate with terminal and affix new seal (only high security seal is acceptable) to container immediately without lapse of time. - Advise both origin & destination office of situation and new seal # in order them to notify situation to customers and update system & manifest. - new seal was affixed to container due to missing & broken after AMS filing, report & manifest are required immediately. * If seal # of container is different from manifest, please check origin office to see what seal # is right and update manifest correctly before AMS filing or vessel s departure. (Origin Office) - Let shipper know seal missing & broken immediately. - Update seal # of system and B/L to show new one. (Destination Office) - Inform consignee of same situation for understanding. - Amend manifest of Customs to read new one together with origin office. EMPTY CONTAINER When Empty Container is imported into U.S, manifest reporting is also required as per U.S. Customs rule, but manifesting 24 hours before cargo loading is not necessary. In this regard, origin office who arranges empty containers for positioning need to create memo B/Ls first then notify them to destination office 5 working days before vessel s arrival so that destination office is able to declare B/Ls of empty container to U.S. Customs directly.

36 Users Guideline Page 36 Canada Customs ACI (Advance Commercial Information) What is ACI (Advance Commercial Information) Job procedure of each party Customer Information Cargo Description (Commodity) Auto Freight Forwarder (NVOCC) Non-auto Freight Forwarder (NVOCC) Accordance of Master B/L & House B/L Manifest Correction (C/A) Switch Bill of Lading Empty Manifest Handling Surcharges Customs Penalty HS (Harmonized System) Code Hazardous Cargo FROB (Freight Remaining On Board) In-Transit Cargo CCN (Cargo Control Number) Definition of Do not Load Hold & Do not unload REJ, DNL, HLD Handling Procedure Roll-over Cargo Explanation of Terms & Acronyms Conversation/Cut-over plans for implementation

37 Users Guideline Page 37 What is ACI (Advance Commercial Information) 1. DEFINITION As part of global efforts to improve cargo security, the Canada Border Service Agency (CBSA) has introduced ACI (Advance Commercial Information) with effective April 21, 2004 (U.S. Eastern Time). ACI is an effective risk management process and tool to identify threats to health, safety, and security prior to the arrival of shipments in Canada. In support of these enhanced risk assessment processes, the Canada Border Service Agency (CBSA) requires carrier/freight forwarder to transmit several data electronically within time frames. These data would be processed through a sophisticated targeting tool to detect high-risk shipment in advance. Below are required reports & time frames of submission. 1) Canada Import (From the viewpoint of Canada) A6A Document 24 hours before cargo loading A6 Document 96 hours before arrival A6A Empty Document 96 hours before arrival Paper Remanifest, House B/L, Abstracts On/after arrival 2) Canada Export (From the viewpoint of Canada) A6A Document 72 hours after vessel s departure A6 Document 72 hours after vessel s departure =>Electronic export cargo reports are optional. - A6A Document: Cargo Primary Report(Master B/L) & Supplementary Report (House B/L). - A6 Document: Vessel Conveyance Report. - A6A Empty Document: Empty Container Manifest - Remanifest, House B/L, Abstract: Secondary Cargo Document. 2. EFFECTIVE DATE This regulation will come into effect on April 21,2004 (U.S Eastern Time). This requirement will apply if the vessel is starting its voyage after April,21,2004 (U.S.Eastern Time). 3. REQUIRED ELEMENTS (For A6A Document) - Purpose- Add, Change, Delete - Carrier Code - Report Number (CE #) CE # - Vessel Name - Vessel Voyage - Current port of loading (Last POL) - POD - Last POL data ( For supplemental data Auto NVO Master only) - Last POL time ( For supplemental data Auto NVO Master only) - Shipper, Consignee, Notify name & address - State (For C.A & U.S only) - Country Code - POR (Canada origin except FROB) & PVY (Canada destination except FROB)

38 Users Guideline Page 38 - Terminal name (For Canada origin) - Service - Container type - Equipment initial - Equipment number - Load/Empty - Gross weight - Package count - Package type - Lading description - Marks and Numbers (UN Code for hazardous) Most data including City Name, State Code (U.S & Canada only) are available from current B/L information and rest ones are controllable from program at the time of manifest submission.

39 Users Guideline Page 39 JOB PROCEDURE of EACH PARTY (OFFICE) For smooth & s uccessful data submission, each party has to keep following procedure very strictly. 1. HANDLING PATY OF EACH REPORT T/S Port Discharging Port A6A Document 0 A6 Document 0 A6A Empty Document 0 Remanifest, House B/L, Abstracts 0 2. ORIGIN OFFICE A. Provide Automated NVOCC (Freight forwarder) a CCN(Cargo Control Number) before document processing enable them to report it to Customs at the time of manifest submission. B. Create accurate B/L - Verify type of customer first and input right TAG on the B/L inquiry (8). - City, State, Nation of shipper, consignee, notify are mandatory and you have to input them without fail. If shipper is not related location of Canada & U.S, you can input only City & Nation without State ( Please refer to page). - Input accurate cargo description (Commodity) on the B/L and do not use unacceptable descriptions include: FAK (Freight all kinds), STC (Said to contain), SLAC (Shipper s load & Count), General merchandise and other vague descriptions. For hazardous cargo, sufficient information like commodity, UN No, IMO class are required. - Create correct T/S information on the B/L, otherwise subject B/L will not appear in Canada AMS (Auto Manifest System) and as a result T/S port is not able to do filing within timely fashion. C. Check B/L data before closing - Close B/L data 72 hours before vessel's berthing at T/S Port (current document cut off time for U.S. Customs 24 hours rule is available). D. Inform T/S port of cargo information like B/L No, Container No, POL, POD, Etc for safe/smooth handling. E. Keep a good communication channel with T/S Port to cope with B/L data missing/discrepancy, feed back of Customs' rejection on time. F. Issue C/A & recreate T/S data for rejected B/L & roll-over cargo. G. Ask DIT (Delay In Transit) & Cargo holding to T/S Port within following time. ( DIT: Before feeder vessel 's sailing at origin port, Cargo Hold: 72 hours before vessel's berthing at T/S Port). H. Assist T/S Port and take immediate action when rejection message of Customs is received through T/S Port. I. Complete empty manifest and notice result to destination office no later than 3 days of vessel's departure. J. Issue C/A of manifest correction after vessel's sailing and notify content to destination office.

40 Users Guideline Page TRANSHIPMENT PORT A. Provide Automated NVOCC (Freight forwarder) CCN(Cargo Control Number) before document processing enable them to report it to Customs at the time of manifest submission. B. Create B/L data of local cargo and received B/L data of T/S cargo within established time. C. Access to AMS then select a Canada Customs and check all B/L information of Local cargo & T/S cargo. D. Submit manifest to Canada Customs at least 30 hours prior to vessel berths at T/S Port - 30 hours is a minimum time frame. Thus please try your best to file manifest more earlier for prompt reaction before 24 hour clock starts E. Check Customs response through AMS and adjust rejection with parties involved immediately F. You need to handle directly for solvable matter, otherwise please keep in touch with HMMA IT & HASA VCR, SEL TRF/DOC within 1 hour after manifest submission. - Ask origin office to fix document related matter urgently. G. Inform origin office of Customs rejection & cargo roll-over. - Advise Do Not Load, Hold, Do Not Unload message to origin office. - For roll-over cargo & canceled cargo, please delete presented B/L data from Customs and notify cargo-roll over situation to origin office. - Once T/S schedule is fixed, Please present B/L to Customs within timely fashion. H. Handle DIT (Delay In Transit)& cargo holding - Once you receive same request from origin office, Please arrange it under time frame. I. Keep same cargo cut-off time, now you are using for U.S. Customs 24 hours rule J. Assist local Customs if they ask something for Hold cargo by Canada Customs K. Complete manifest for empty and notice result to destination office (HASA VCR) no later than 3 days of vessel's departure. L. Do C/A of manifest correction for local cargo after vessel's sailing and notify same content to destination office (HASA VCR) by separate mail 4. DESTINATION OFFICE (HASA VCR) 1) IMPORT CARGO A. Input a CCN (Cargo Control Number) in the system. B. Present A6 Document (Conveyance Report) to Customs 96 hours before vessel's arrival at Canada. C. Receive Empty Container information from origin office and check it. D. Submit Empty Container Document to Customs 96 hours before vessel's arrival at port of Canada, If any. E. Keep in touch with Canada Customs to assist AMS filing party on rejected B/Ls. F. Take care of Paper remanifest, House B/L, Abstracts when cargo arrives. G. Receive C/As of origin office and resubmit them to Customs directly. H. Monitor Customs' reaction on AMS and feed back result to relevant parties. 2) EXPORT CARGO A. Create accurate B/L data. B. Check B/L data before closing. C. Close B/L immediately after vessel sails from Canadian Port (It will be adjustable as per Canada local situation) D. Access to AMS and report A6A Document & A6 Document to Customs within 72 hours after departure from the Canadian Port.

41 Users Guideline Page 41 CUSTOMER INFORMATION 1. SHIPPER, CONSIGNEE & NOTIFY In order to identify where cargo is originated and who is cargo receiver, Customs wants full & accurate information of customer. So please input customer name & address on the B/L correctly. also City, State, Nation are important factors and you have to mention correct information, otherwise there is a possibility that serious results, such as Hold, penalty may result in. 1) City The City name is one of important factors, carrier has to report to Customs. Thus, please ensure to input accurate City name of shipper & consignee, notify without fail. In case of TO ORDER B/L", you can input City of location for to order party, where shipper, bank are located. Ex) TO ORDER OF CITY BANK 3201 N.W. 116TH STREET MIAMI FLORIDA In this regard, proper City is a Miami. 2) Nation The nation is also important factor and you need to input right information. For "TO ORDER B/L", proper nation is country, the parties following TO ORDER statement is located. 3) State The state of shipper, consignee & notify is mandatory, but it is related to only Canada & U.S territory not foreign countries. - Shipper of foreign countries excluding Canada & U.S does not need to have state, but shipper of Canada & U.S. for export cargo has to right state code. - Also consignee & notify of Canada & FROB (U.S Cargo) shipments are required to has right state without fail. - If B/L is TO ORDER and party following this statement has nothing to do with Canada & U.S, the state is not necessary and you can select code XX. 2. TO ORDER B/L The Canada Border Services Agency (CBSA) acknowledges that "TO ORDER" in the consignee field is a common business practice. However, the CBSA requires the name and address of the cargo's owner or owner's representative in the consignee field. In addition, when the "TO ORDER" cargo is an importation, the address to where the cargo is being delivered in Canada, must be reported in the notify (Delivery Address) field. To help clarify our requirements the following examples illustrate what information is to be transmitted in what fields.

42 Users Guideline Page 42 Ex 1) "TO ORDER of Shipper" The shipper's name and address, as reported in the shipper's name and address fields, would be repeated in the consignee name and address fields. The delivery address would provide the Canadian address, where by contract, the shipment is to be delivered. Ex 2) "TO ORDER of a Bank on behalf of" The consignee's name and address would be the complete name and address of the bank as the owner or owner's representative. The ultimate consignee's name and address, if known, would be reported in the notify party field. The delivery address would provide the Canadian address, where by contract, the shipment would be delivered. * NOTE: For in-transit & FROB shipments the reporting requirements for the consignee field are the same, but notify (Delivery address) field would be in the U.S. or other country to where the goods are destined.

43 Users Guideline Page 43 CARGO DESCRIPTION (COMMODITY) A detailed commodity description is a description of an item that is clear and concise. The description should be in plain language and detailed enough to allow Canada Customs to identify the size, shape and characteristics of the commodity. Only the commodity description should be included in this field of the EDI transmission. Superfluous information, not relevant to the commodity description i.e., type of packaging, carrier disclaimers, etc., should not be transmitted in the commodity description field. The following descriptions are not acceptable and may result in "Hold for Examination" or "Hold for More Information" notices. Unacceptable descriptions include: freight of all kinds (FAK); said to contain (STC); shippers load stow and count (SLAC); general merchandise and other similar vague descriptions. A less detailed description will be accepted from the marine carrier if the complete and accurate description is being provided in a supplementary cargo report from the freight forwarder. The following list, provided by U.S. CBP, is a guide to acceptable and unacceptable descriptions. This list is not exhaustive and will continue to expand as acceptable descriptions are further refined. Apparel Wearing Apparel Ladies' Apparel Men's Apparel Appliances Autoparts Parts Caps Not Acceptable Chemicals, hazardous Chemicals, non-hazardous Electronic Goods Electronics Equipment Acceptable Clothing Shoes Footwear Jewelry (may include watches) Kitchen Appliances Industrial Appliances Heat Pump New Autoparts Used Autoparts Baseball Caps Blasting Caps Bottle Caps Hub Caps Actual Chemical Name (not brand name) Or U.N. HAZMAT Code Identifier # Computers Consumer Electronics, Telephones Electronic Toys (can include Gameboys, Game Cubes, Dancing Elmo Doll etc.) Personal/Household Electronics (i.e. PDA's, VCR's, TV's) Industrial Equipment, Oil Well Equipment Automotive Equipment, Poultry Equipment etc. Flooring Not Acceptable Wood Flooring, Plastic Flooring, Carpet, Ceramic Tile, Marble Flooring Acceptable

44 Users Guideline Page 44 Foodstuffs Iron Steel Leather Articles Machinery Machines Pipes Plastic Goods Polyurethane Rubber Articles Rods Scrap STC (Said to Contain) General Cargo FAK ( Freight of All Kinds) "No Description" Tiles Tools Wires Oranges Fish Packaged Rice, Packaged Grain, Bulk Grain Iron Pipes, Steel Pipes Iron Building Material, Steel Building Material Saddles Leather Handbags Leather Jackets, Shoes Metal Working Machinery Cigarette Making Machinery Sewing Machines Printing Machines Plastic Pipes PVC Pipes Steel Pipes Copper Pipes Plastic Kitchenware, Plastic Houseware, Industrial Plastics Toys, New/Used Auto Parts Polyurethane Threads Polyurethane Medical Gloves Personal Effects Household Goods Rubber Hoses Tires Toys Rubber Conveyor Belts Welding Rods Rebar Aluminum Rods Reactor Rods Plastic Scrap Aluminum Scrap Iron Scrap Ceramic Tiles Marble Tiles Hand Tools Power Tools Industrial Tools Electric Wires Auto Harness Coiled Wire (Industrial) Note: SLAC (Shipper s Load & Count) is very important wording to cover carrier s responsibility in handling of FCL (Full Container Load) cargo and for this reason, it should be remained on Bill of Lading without change. In order to meet Canada Customs need, system will block clause SLAC automatically at the time of manifest submission.

45 Users Guideline Page 45 AUTO FREIGHT FORWARDER (NVOCC) Freight forwarders may transmit supplementary cargo report to CBSA if they have an 8000 serious carrier code and are capable of transmitting data electronically to CBSA either directly or through a service provider. 1. HANDLING PROCEDURE Please make a contract with freight forwarder about direct manifest submission. By doing so, they are r responsible for timely manifest submission and failure of reporting to HMM for Do Not Load, Hold, Do Not Unload messages. A. Please make a contract with Freight Forwarder for direct manifest submission. B. When booking is done, please provide Auto Freight forwarder a CCN (Cargo Control Number) enable them to report it to Customs with manifest. CCN consists of under 25 character. Ig, HMM Code (9463) + CE +VVD (7 Digits) + B/L Number(11 Digits) and you can refer to it from the system every case, but please make sure B/L number (11 Digits) should be created by you through B/L number pre-assign function. C. Auto Freight forwarder has to prepare and present supplementary cargo report (House B/L) to Customs at least 36 hours before vessel s berthing. D. Please receive a certification of direct filing from Auto Freight Forwarder (Auto NVO) to ensure perfect manifest submission. If they receive Do Not Load, Hold, Do Not Unload messages from Canada Customs, they have to notify same content to HMM immediately. E. Cargo is loadable, or Hold message is removed by Customs, Auto Freight forwarder need to inform same thing to HMM. F. If correction is occurred on supplementary cargo report (House B/L) and it results a change to Primary cargo report (Master B/L), they have to advise content to HMM immediately. 2. LETTER OF INDEMNITY FORMAT (Please refer to attachment of form).

46 Users Guideline Page 46 NON AUTO FREIGHT FORWARDER (NVOCC) If freight forwarder is not capable of transmitting data electronically to CBSA, they would ask carrier to submit manifest on behalf of them. 1. HANDLING PROCEDURE A. Please make a contract with Non-Auto Freight Forwarder(NVO) for manifest submission. B. Receive accurate Supplementary cargo information (House B/L) and close document 72 hours before vessel s berthing. C. If correction is occurred on Supplementary cargo report (House B/L) and it results a change to Primary cargo report (Master B/L), they have to advise it to HMM for update. D. In case of cargo-roll over, not loadable, not dischargeable, Please inform customer of same situation soon. 2. LETTER OF INDEMNITY ( Please refer to attachment of form).

47 Users Guideline Page 47 ACCORDANCE OF MASTER B/L & HOUSE B/L The basic information such as vessel & voyage, port of loading, port of discharging, place of delivery of both B/Ls (Master B/L & House B/L) are need to be matched correctly without any exception. Also the sum total of piece count, weight, and measurement in individual house B/Ls should be the same with those of master B/L. One more thing, If C/A of said mentioned items is necessary, you are required to issue C/A in Master B/L & House B/L separately as current system does not link Master B/L to House B/L about C/A. Additionally, option #2871 have been designed in GIS and it allows you to check several items in advance to reduce unnecessary discrepancy. MANIFEST CORRECTION Basically accurate cargo information (Primary report & Supplementary report) should be reported to Customs within timely fashion. In case of manifest correction of cargo report, carrier is encouraged to transmit changes as soon as changes are known. If changes are transmitted prior to the cargo being loaded on board the vessel, the 24-hour clock restarts. All cargos are risk assessed prior to arriving in Canada, for health and safety and contraband concerns and for reason, any changes transmitted after cargo is loaded may result in a Hold EPOA message. 1. REQUIREMENTS A. Ask shipper to provide accurate cargo information (Master B/L & House B/L) from initial stage to prevent from occurring manifest correction. B. All elements are important, but commodity, customer information, container & seal number are priorities for risk-assessment. so please pay attention in handling of correction for these data. C. If manifest correction is inevitable because of customer s demand, please let customer know right situation & possible scenarios. D. If A/C agrees with, pleases obtain written C/A request the do C/A in the system. E. Once C/A is done, please advice C/A content to discharging office (HASA VCR) in order them to re-submit B/L to Customs. 2. HANDLING PROCEDURE There are two C/As depend upon handling logic. 1) SIMPLE C/A Simple C/A means change or update of content on B/L, which already submitted to Customs. a. Have C/A request by written letter from customer and issue C/A in HMM system. b. Inform discharging office (HASA VCR) of content by separate mail.

48 Users Guideline Page 48 c. Re-submit update manifest to Customs by destination office (HASA VCR). 2) COMPLICATED C/A Special C/A means that unusual C/As,such as B/L split, B/L combine, B/L deletion, which require complicated process. B/L Split a. Split B/L into another ones and issue C/A in HMM system (AS 400). b. Notify situation to destination office (HASA VCR) by separate mail. c. Re-submit updated B/L & new splited B/L to Customs by destination office (HASA VCR). B/L Combine a. Notify situation to destination office (HASA VCR). b. Delete unnecessary B/L from Customs record by destination office (HASA VCR) then advise result to request office soon. c. Combine B/L and remove unnecessary B/L from HMM system (AS 400) then notify action taken to HASA VCR again. d. Finally HASA VCR re-submit combined B/L to Customs. B/L Deletion a. Notify situation to destination office (HASA VCR). b. Delete unnecessary B/L from Customs record by destination office(hasa VCR) then advise result to request office c. Remove unnecessary B/L from HMM system (AS 400) then notify action taken to HASA VCR finally. 3. LETTER OF INDEMNITY (Please refer to attachment of format).

49 Users Guideline Page 49 SWITCH BILL OF LADING In considering trading practice, there is no choice but to accept Customs request on B/L switching, but carrier should pay utmost attention on this business when they change shipper/ consignee names & address after 24 hour clock starts. As described manifest correction procedure, manifest change after AMS filing will accompanies risk & cargo examination at destination. Thus please switch Bill of Lading before AMS filing (In case of out port, This manner is available), If not possible, Please have customers know reality and secure a Letter of Indemnity from the party to be sure that they has the financial capability and then switch B/L. EMPTY MANIFEST HANDLING Manifest for Empty Container is also required to be reported to Canada Customs 96 hours before vessel s arrival at first Canadian port. In this regard, origin office, who loads Empty container to Canada & U.S (only FROB: Oakland/PS1, Seattle/PS3), should create Empty Container Manifest then send it to HASA VCR no later than 3 days of vessel s departure. In case of contents of Manifest, shipper, consignee, notify party, vessel & voyage, port of loading & discharging, commodity (Empty Container positioning) container number, container type & size, weight (Tare weight), Package(1 Unit) are necessary. SURCHARGES Like surcharges for US Customs 24 hours rule, you can use current surcharge kind & amount as follows. a. CDC (Cargo Declaration Data Charge): USD 25 per Master B/L. b. CDN (Cargo Declaration Data Fee for Non-Auto Freight Forwarder) : USD 25 per House B/L. c. CDF ( Cargo Declaration Data Correction Fee): USD 40 per each submission for both Master B/L & House B/L after manifest submission. * Note: - In case of Non-Auto Freight Forwarder (NVO), both CDC & CDN are applicable respectively. - CDF is applicable for each submission for both Master B/L & House B/L after manifest submission. - Above is applicable for only cargo destined for Canada not FROB (Surcharges for U.S. Customs 24 hours rule is also subject to U.S cargo only not FROB).

50 Users Guideline Page 50 CUSTOMS PENALTY No specific AMPS (Monetary Penalty System) have been created for the initial implementation of ACI. Instead clients who fail to provide accurate data electronically in a timely manner will be subject to loading delays in the foreign port and increased examination rates. In extreme circumstances, vessels may be refused entry to a Canadian port or containers could be refused authorization for unloading in a Canadian port. In addition, freight forwarders who fail to provide accurate data electronically in a timely manner will lose their direct transmission privileges and be required to provide detail data to the carrier. Existing AMPS related to the Report of Goods and Conveyances and Transportation will continue to be applicable. Eventually, new AMPS provisions will be introduced. In the case of the 24-hour rule for marine these AMPS will only be applicable to carriers. However, it must be emphasized that carriers will not be assigned penalties where they exercise due diligence to ensure accurate data is provided in a timely manner but are misinformed by shippers or freight forwarders. We will also be initiating changes to legislation to require Canadian freight forwarders to provide secondary data and importers to provide key import data in advance of arrival. In the case of the marine mode, we expect to require this data 24- hours prior to arrival in Canada. HS (Harmonized System) CODE HS Code (Harmonized System Code) consist of a 10 digit code classifying the good based on an accurate description. As this is not mandatory for Canada Customs ACI, only cargo description (commodity) could be utilized on the manifest. However it should be transmitted to Customs if available. By doing so, Customs is able to know exactly what item is stuffed in the container. If HS classification number utilizes on the manifest (B/L), it is suggested that HS classification number need to be mentioned along with cargo description (commodity). HAZARDOUS CARGO Information of Hazardous Cargo is one of essential items of ACI, Therefore you are kindly requested to input accurate information, such as cargo description (commodity) of hazardous cargo, UN number, Class number on the manifest

51 Users Guideline Page 51 FROB (Freight Remaining On Board) FROB (Freight Remaining on Board) cargo is cargo that is loaded in a foreign port and it to be unloaded in another foreign port with intervening vessel stop in one or more ports in the Canada. FROB cargo is governed under Canada Customs ACI and cargo manifest also should be provided 24 hours before loading of cargo onto vessel at foreign port like normal Canada import cargo. Especially all conditions such as customer s information, cargo description (commodity), other ones need to be handled within category of normal cargo. In case of HMM, Oakland of PS1, Seattle of PS3 are next ports of Vancouver and they are FROB cargos. In case of manifest correction as to FROB cargo after data submission, it is related to only U.S Customs not Canada Customs. IN-TRANSIT CARGO The case that cargo destined for U.S is moved via Canada Port seldom happens. If this case occurs due to special reason, cargo manifest should be reported to Canada Customs 24 hours prior to loading of cargo at foreign port. In this case, U.S company name & address of notify is okay as long as handling party/broker of Canada shows on the consignee field of B/L. Also handling procedure manifest correction is the same as normal Canada import cargo. CCN (Cargo Control Number) Cargo Control Number is assigned by the carrier or carrier s agent to transport document. CCN is given to each Master B/L and would be utilized by Customs to match Primary Report & with Supplementary Report sent by Auto Freight forwarder (NVO). HMM s CCN consists of HMM s own carrier code (9463) + B/L Number (10 or 11 Digits). - HASA VCR will insert Carrier code (9463) in the system in advance so that origin office use it at the time of booking (B/L no should be assigned by origin office). - Origin office create B/L No by using B/L No pre-assign function on booking system then refer to information of CCN using by option # Provide Auto Freight forwarder with full Cargo Control Number.

52 Users Guideline Page 52 DEFINITION OF DO NOT LOAD, HOLD & DO NOT UNLOAD If cargo reports (Primary Report & Supplementary Report) do not meet CBSA s requirement, Do Not Load, Hold, Do Not Unload message will be issued to the initiator and other relevant parties. The CBSA would not issue those messages against A6 Conveyance Report. In an extreme situation that a Do Not Unload message could be issued for an empty container, but it would rarely happen. - Do Not Load: This type of message may be transmitted to the carrier prior to the loading of cargo onto vessel. If Do Not Load message is received, cargo is not authorized to be loaded onto vessel until removal message is issued by Customs. - Hold: This message will be issued subsequent to the loading of the cargo on the vessel in at the foreign port and Canada Customs will require information pertaining to the cargo such as delivery address, notify party. In this regard, the carrier/freight forwarder must retransmit the required data to Customs using EDI change function of AMS. Also Canada Customs may require an examination of the cargo upon arrival. In the worst case, the cargo may be unloaded from the vessel in Canada but it is not authorized to move until permission is granted by Customs in the form of a HOLD cancellation message. - Do Not Unload: This type of message may be transmitted to carrier/freight forwarder subsequent to the loading of cargo on the vessel. If a Do Not Unload message is received, the cargo is not authorized to be unloaded from the vessel in Canada. In this regard, a cancellation message will not be issued. REJ,DNL,HLD HANDLING PROCEDURE 1. REJECTION Rejection sometimes occurs at the time of bad B/L's information or format error. In this case, rejected container can not be loaded to the target vessel until rejection is finally removed. So, please check reason of rejection first and correct incorrect portion then resend B/L to remove rejection. 2. DNL (DO NOT LOAD) The DNL (Do Not Load) notice is issued by Canada Customs when wrong information (Customer & Commodity) is reported or supplementary cargo report of NVOCC is not received/linked. Especially, DNL notice continues to be in effect until a CNL (Cancel) notice is issued by Customs. Here is procedure. 1) Correct wrong information B/L and check NVOCC to see whether supplementary report is submitted to Customs properly. 2) Let VCR office know situation immediately then ask them to check Canada Customs to change DNL to CNL notice. 3) Once Canada Customs remove DNL and issue CNL notice before cargo loading time, you can load cargo onto target vessel as scheduled, otherwise you have to shift cargo to next available vessel. 4) If cargo loading is not possible with target vessel due to time restriction, you need to shift cargo to next vessel with following procedure. - Advise your new target vessel to HASA VCR and ask them to delete old B/L from Customs directly. - HASA VCR advise CNN of old & new vessel to Customs and delete B/L.

53 Users Guideline Page 53 - Once delete is completed, you can change VVD of B/L to show new one. 5). Finally you can resubmit manifest to Canada Customs. 3. HLD (HOLD) HLD notice is issued by Customs when it does receive the supplementary house B/L, but requires more information. Most likely they require information on the consignee address. HLD is also issued by Customs if a container has had a DNL and has accidentally been loaded to vessel. If you receive HLD before cargo loading, container is still loadable to the vessel, but please make sure it should be removed from Customs immediately before vessel arrives at Canadian Port. If you get HLD after vessel sails, procedure is the same above. ROLL OVER CARGO Cargo roll-over would be occurred due to various reasons like space problem, customer request, incomplete documentation, unexpected incident, etc. If cargo roll-over happens after manifest submission to Canada Customs, You should keep following procedure. 1. Local cargo If cargo roll over is necessary for above-mentioned reasons, the most important thing is to keep good communication channel among concerned parties. Normally decision of cargo roll over is made by sales organization and they have to advise the same situation to documentation party & terminal immediately to ensure perfect AMS filing & cargo loading, otherwise documentation party is likely to fail to provide Canada Customs with cargo declaration on time. If manifest of roll over cargo is already sent to Customs with previous vessel, you have to delete first submission from Customs and then transmit manifest( B/L) with new target vessel. Also you are responsible for reporting the same to Automated Freight Forwarder (NVO) in order them to present accurate cargo information to Canada Customs. 2. Transshipment cargo At transshipment (T/S) port, cargo loading is delayed due to several reasons. If cargo roll over is inevitable, you must delete B/L from Canada Customs file without fail and you can handle it above items 4) of DNL (Do Not Load) procedure.

54 Users Guideline Page 54 EXPLANATION OF TERMS & ACRONYMS TERM DEFINITION A6 A6A ACI CCN Consortium CRN EDI CE ETA (Estimated Time of Arrival) FROB Freight Forwarder HS-Code In-Transit Secondary cargo Document General declaration from of inward/outward Vessel movement. Freight/Cargo Manifest. Advance Commercial Information. Cargo Control Number and it is assigned by the carrier or carrier s agent to transport document. A formal or informal association of business interest that jointly engage in an enterprise. Conveyance Reference Number and it is unique reference number assigned by carrier to identify a particular voyage for a particular conveyance. Electronic Data Interchange. Consortium & EDI. Generally used in the context of Pre-Arrival for the purpose of knowing the approximate time of arrival in at a dock in Canada. Freight Remaining on Board. Cargo on a vessel that is not being discharged at a Canadian Port. It means an agent who arranges for the transportation of goods and who may provide other services such as grouping, consolidating, stuffing/destuffing, Customs brokerage and warehousing. Harmonized System Code. A 10-digit code classifying the goods based on an accurate description. The movement of a conveyance/goods through Canada, without disposing of goods. The document including all prescribed secondary cargo data (Customs Procedure Codes Abstract/House Bill/Remanifest) that is presented to CBSA by transporter, freight forwarder, etc when cargo arrives.

55 Users Guideline Page 55 CONVERSION / CUT-OVER PLANS FOR IMPLEMENTATION Effective Saturday, April 17, 2004, at 11:30 p.m. EST - Current EDI format marine transmissions will no longer be accepted. Current EDI Carriers should transmit data for as many of their current transactions as possible prior to this cut-off point. We will not maintain parallel EDI systems. Effective Monday, April 19, 2004, at 00:01 a.m. EST - New EDI format transmissions will be accepted. Corrections to old format EDI transmissions will be accepted provided the new format is used for the correction. Effective Wednesday, April 21, 2004, at 07:00 a.m. EST - Data for all containerized and nonauthorized break bulk shipments that will be loaded in the foreign port on or after April 21 at 7:00 a.m. EST must be reported in the new EDI format, at least 24 hours prior to loading. This requirement will only apply if the vessel is starting its voyage after 7:00 a.m. EST, on Wednesday, April 21, This includes any applicable supplementary reports from freight forwarders. Data for all bulk and authorized break bulk shipments that will arrive in Canada on or after April 21 at 7:00 a.m. EST must be reported in the new EDI format at least 24 hours prior to arrival at the first port of call or discharge in Canada. Note that we are asking carriers to provide us with electronic transmissions in the new format for all shipments that are des tined for Canada as of April 18, 2004 even though they are not subject to the 24- hour rule. Shipments for which an electronic transmission is provided on or after April 19, 2004 will no longer automatically require the submission of paper bills of lading. Paper bills of lading, A6 and A6A reports will be required in accordance with today's timeframes for all shipments that are loaded onto a vessel starting its voyage prior to April 21 at 7:00 a.m. EST if an electronic transmission is not provided. Finally, the conversion process will be facilitated if carriers include the EDTL to identify any shipments that are not subject to the 24-hour rule based on the conversion process.

56 Users Guideline Page 56 User s Maual U.S.Customs AMS (Automated Manifest System) TAG Management of Master B/L House B/L Creation Logic & Procedure Input House B/L No & SCAC Code of Automated NVOCC - Canada Customs AMS (Automated Manifest System) Master B/L Pre-assignation Procedure Nation, State, City Input Procedure Tag Management Empty Container Cargo Type SLAC (Shipper s Load & Count) Cargo Control Number Inquiry

57 Users Guideline Page 57 < U.S.CUSTOMS 24 HOUR-RULE > AMS (Automated Manifest System) - Automated Manifest System (AMS) Please click origin AMS Menu then select # 2570 (Log on AMS & ACI system as different user)

58 Users Guideline Page 58 Please input assigned User ID/Password to access AMS (Automated Manifest System).

59 Users Guideline Page 59 Automated Manifest System consists of 14 parts (From #2571 to #2584) as follows. In order to accomplish AMS filing business successfully, Here are rough procedures. A. Check # 2584 option to see if wrong T/S data & error messages are. B. Check and count target filing B/Ls with option #2581, #2282, #2583 and compare them with T/S list, you received from origin port. C. To avoid 38 B/L ALREDY ON FILE, Please check # 2571 to see what B/Ls are already filed to U.S. Customs with previous vessel. Once you select certain B/Ls, Please input D on the ACT field then enter to delete B/Ls that already filed to Customs with different vessel, otherwise you will get the rejection message 38 ALREDY ON FILE from Customs as U.S. Customs has same B/L in their system. D. Once all procedures above are completed, Please send B/L to Customs with # E. # 2573 allows you to Add, Change, Delete after first manifest submission. F. You can check # 2574 to know B/L filing status. Please select sent inquiry by clicking right mouse button to see filing log. G. With # 2576, you can see Customs response. H. # 2575 & 2577 are options to show you of 6H HOLD message. I. #2578 & #2579 also provide you with AMS filing status, but program. J. For cargo hold in U.S, you can refer to it with # 2580

60 Users Guideline Page 60 For your perfect handling, please see more detailed information as follows. # 2584 T/S DATA ERROR LIST Type VVD in the blank field to see wrong information including T/S data & AMS tag with origin office before AMS filing then correct them first, otherwise you are not able to see relevant B/L in # 2582,2583.

61 Users Guideline Page 61 # 2583 B/L INQUIRY BY M.POL This screen shows you of all Master B/Ls & House B/Ls by mother vessel s POL and you can check information with various functions as follows. - TAG : Direct Account B/L. Y : Non-Automated NVOCC B/L. A : Direct Account B/L + Non-Automated NVOCC B/L. N : Automated NVOCC B/L. M : Master B/L including Direct Account B/L. - B/L TYPE Master B/L: Total Master B/L Non Auto: Master B/L for Non Automated A/C Auto : Master B/L for Automated A/C Direct : Master B/L for Direct A/C. House B/L: House B/L for Non Automated A/C Non Auto: House B/L for Non Automated A/C and it is the same as quantity of House B/L. Auto: This is Automated NVO House B/L, but it always Blank (No Data)

62 Users Guideline Page 62 # 2582 INQUIRY BY ORIGINAL POL Like above # 2583, You can view all Master B/Ls & House B/Ls by POL (Origin Port). # 2581 FILING PRE-ARRANGED B/LS BY M.POL This screen shows you of all Master B/Ls & House B/Ls, you need to transmit to U.S Customs.

63 Users Guideline Page 63 # 2571 PRECHECK IF B/L MANIFESTED Above is useful function to delete B/L which has already filed to U.S Customs with different vessel. For roll-over cargo, you have two options to delete B/L from U.S Customs. One is manual working and the another is system working. Once you change vessel of B/L to new one, B/L appears on this screen and you need to send D to U.S. Customs to delete it then file same B/L on # 11. Also please be advised that this function probably will not work at the first mother vessel calling port as U.S. Customs system could not recognize same B/L No if they do not have new vessel/voyage in their file.

64 Users Guideline Page 64 # 2572 MANIFEST DATA TRANSMISSION Please type in VVD & POL on the above options and you will see each POD of shipment in blue color. Also this screen does a pre-check to identify common problems before proceeding. If error happens, you need to correct it first. Once everything is OK, you could transmit manifest to Customs finally by pressing submit button.

65 Users Guideline Page 65 # 2573 AMENDEMENT BY VVD - 1 Add, Change, Deletion after first manifest submission are only available on above option. Please type in VVD & POL,and, if necessary, POD, Action, Display Type, Show cancelled B/L before entering next screen. Action consists of four things; = all, A= add, C=Change (Delete & Add), D= Delete and you can choose what you wish to act. Display Type and Show cancelled B/L also allow you to check manifesting result. # 2573 AMENDEMENT BY VVD 2

66 Users Guideline Page 66 Once all necessary parameters are entered of AMENDEMENT BY VVD - 1,a program identifies master B/Ls and House B/Ls accordingly and displays those on the above screen. This screen shows you of manifesting result you did action for all B/Ls. Please select A, C, D then put any action code on an ACT column for specific B/Ls to send to Customs. If you already typed action code on the AMENDEMENT BY VVD - 1, it appears on the this screen automatically. Here is more information for Auction. A (Add ) : Add new B/Ls for manifesting. C (Change) : Change B/Ls that are already manifested and C has two functions (Delete & Add) at the same time. If you send C to Customs, B/L that manifested are deleted from Customs then same B/L is added. D (Delete) : Delete B/Ls that are already manifested to Customs. # 2576 RESPONSE NOTIFICATION Above screen allows you to check U.S Customs response of all B/Ls, but be sure that system could not able to indicate situation of acceptance & rejection by B/L. Therefore you need to count all target B/Ls correctly before manifest submission then check response to if see all B/Ls are accepted. If all B/Ls are accepted, everything is OK and cargos are loadable. If some B/L is rejected, Please move a cursor on the line of target batch and double click to inquiry accurate rejection reason and correct it with handling party before 24-hours clock starts. For detailed error type, please refer to common error codes of this guidance.

67 Users Guideline Page 67 # 2574 AMS FILING CONFIRMATION -1 On this screen, you are able to view transmitted B/Ls and check filing log to see if B/Ls have been filed to U.S. Customs successfully or not. To see the options, you can click right button of mouse. # 2574 AMS FILING CONFIRMATION - 2 Once you select Sent Inquiry, You can find filing log like above.

68 Users Guideline Page 68 #2575 CUSTOMS B/L STATUS NOTIFICATION With above screen you can see status of B/Ls by VVD/B/L and it provides you with all information issued by U.S. Customs. In order to check B/L status, you either type certain code like 54 on the disposition field or leave it as a blank. Also you can sort 6H HOLD PLACED cargo by entering Y on the HLD field. Please keep in mind that Customs can put shipment on hold at any time and you can see the 6H HOLD PLACED message on the screen from AMS filing time to vessel s sailing time. If it shows on above screen, cargo must be held at loading port until Customs finally remove 6H HOLD PLACED message and release 6I HOLD REMOVAL message. Definition: Disposition -This is a status field. Customs uses a term Disposition instead of status. Please click button of disposition and inquiry various codes with their definitions. Action-date(EST) - Date U.S. Customs took action. EST means an East-coast of U.S time since Custom s system is in Washington, D.C. Rcvd-date (WST) - Date we received Custom s data. WST simply means western but actually it is Denver, Colorado time since HMMA s system is in Denver, Colorado. S/N Code & Description - It is actually custom s disposition code with corresponding description.

69 Users Guideline Page 69 # 2577 NOT LOADABLE B/L LIST This screen allows you to see only 6H HOLD PLACED message. So, please monitor this screen with #2576 very closely until vessel s departure from origin port. Once 6H HOLD PLACED message appears on AMS, you must hold cargo at origin port immediately without loading.

70 Users Guideline Page 70 #2578 M/F LOG FILE INQUIRY #2579 M/F STATUS BY VVD You can check AMS filing status with said #2578 & #2579 but, these screen are for reference functions and for this reason, we recommend you to use #2574 for AMS filing verification.

71 Users Guideline Page 71 # 9262 INBOUND MONTHLY SCHEDULE INQUIRY This is to check vessel itinerary schedule. If vessel itinerary is missed, you are not able to submit manifest to U.S Customs through AMS. So, please contact SEL operation/traffic & Document, if you see vessel itinerary schedule error on # 2572 at the time of manifest submission. OTHERS For out-ports users, representative USER ID/PASSWORD "AMSUSR/AMSUSR" is registered into the system and you can use it in order to check B/L information, such as T/S Data Error, Filing situation, Customs' response, etc through AMS. However you need to remember is that this is just for reference purpose and you are not authorized to use functions of manifest submission/update (#2572,# 2573). Also, AMS filing party mus t keep their own USERID/ PASSWORD without opening and can change it to new one, if necessary.

72 Users Guideline Page 72 TAG MANAGEMENT OF MASTER B/L 1. Purpose of function It is necessary for us to sort out B/L types such as HMM direct B/L, Non-Automated NVOCC's B/L, Automated NVOCC B/L. In case of HMM's direct B/L & Non-Automated NVOCC's B/L, HMM is fully responsible for AMS filing, but Automated NVOCC B/L is not HMM s concern as it is to be submitted by Automated NVOCC directly. For this reason, B/L type is very important and you need to input accurate TAG into option of Master B/L when you create B/L data so that AMS filing party (Origin or T/S port) would submit classified B/L to U.S. customs smoothly. 2. Definition of B/L type A HMM's Direct B/L HMM receives booking from direct Account and direct A/C's name is showing on the master bill of lading and this B/L is submitted to customs directly by HMM. One more thing, Direct B/L does not have any House bills like NVOCC cargo. B Non Automated NVOCC B/L Non- Automated NVOCC asks HMM to submit cargo manifest to U.S. Customs on behalf of them and present shipping request (S/R) of House B/L to HMM enable you to declare it to Customs. Also they have to give Master B/L's information to HMM and it would be remained in the HMM s internal system without releasing to customs. C Automated NVOCC B/L Automated NVOCC submits cargo manifest to U.S. customs directly without HMM's help or intervention. In this case, you need to get the shipping request (S/R) information from NVOCC for Master B/L and it has to be kept in the internal system without releasing to customs. Also House B/L number & SCAC code of Automated NVOCC should be inputted onto designed program for cargo releasing at destination. 3. How to use function Once you decide B/L type (HMM direct B/L, Non-Automated NVOCC B/L, and Automated NVOCC B/L ), Please input tag Y, N into field below in blue or leave the field as Blank". Here are detailed explanations. A "Blank" (HMM's direct B/L) : Please leave the filed as "Blank" without inputting any tag. B "Y" (Non Automated NVO B/L) : HMM file House B/L to customs instead of Non-automated NVOCC.

73 Users Guideline Page 73 C "N" (Automated B/L NVOCC B/L) : Automated NVOCC declares their cargo manifest to Customs directly. (Example Screen) 1. What Happens if you not fulfill with this function If you mis -input tag or omit it when you create Master B/L, T/S port could not check something wrong at the time of AMS filing and serious consequence would be brought to HMM. Namely, B/Ls ( Direct B/L, Non-Automated B/L), which need to be filed to U.S. Customs by HMM, will be missed on the manifest. on the contrary, B/L (Automated NVOCC B/L) which need to be held in just HMM's internal system could be submitted to customs. As a result, HMM will be in serious danger of wrong AMS filing, like vessel hold, customs penalty, etc. Thus you are kindly to check B/L type thoroughly and input accurate tag on the option to prevent possible human errors from occuring, otherwise enormous result is inevitable and after all you are also not free from it. Please regard it as a top important issue and take guidance to heart.

74 Users Guideline Page 74 HOUSE B/L CREATION LOGIC & PROCEDURE This is for only Non-Automated NVOCC cargo requiring HMM submits cargo declaration to U.S. Customs on behalf of them. 1. General logic of House B/L number creation Basically House B/L Number (HMM given) consists of HMM Master number (11 digit) and one sequence number. Also alphabet (34 digit) & Arabic figure (10 digit) could be utilized as a sequence number freely. A. If the number house B/L for Non-automated NVOCC is under 34, you could use only Arabic figures (From 0 to 9) & Alphabet (from A to Z) as a sequence number by adding it as following. Example ) Master B/L No : BUCA House B/L No (HMM Given) : BUCA _ (0-9, A-Z) B. If NVOCC s House B/Ls are over 34 quantity, you could replace last two number of Master B/L by sequence number. First please delete the last number of Master B/L number and add alphabet "A" on it then give sequence number as above logic. If you want more House B/L, alphabet ''B" is available with same logic. Example) Master B/L No : BUCA House B/L No (HMM Given): BUCA105897A _ (0-9,A-Z) * Taiwan is NVOCC market and they have exceptional logic in creating House B/L for non-automated NOCC. 2. How to create House B/L. Input Master B/L No first. SCAC CODE for HMM s House B/L is always HDMU. For House B/L No (HMM Given), You create it under above mentioned logic by yourself. House B/L No (NVOCC) is Non-automated NVOCC s actual House B/L number, they issue to their customer. Ref House B/L No is a copy function and will lessen your burden when you need to create many

75 Users Guideline Page 75 House B/Ls. Pleases make first house B/L and then copy it with this option for further Houser B/Ls. Example) If you already made House B/L (HMM Given): BUCA A, you need to input NVOCC's real House B/L's No on the House B/L No (NVOCC), then input another House B/L No (HMM Given): BUCA B on the option for copy.

76 Users Guideline Page 76 Input actual & precise shipper & consignee, notify name/address screen. NVOCC could be Master B/L s shipper & consignee, notify but, House B/L requires actual customer s information. Customer code is not mandatory field and you do not need to input individual customer code in the House B/L. If customer want HMM to send arrival notice to anyone else in addition to first notify party at discharging port, you need to input second notify on notify-party 2 column. The vessel & port information are automatically shown without manual inputting when you type enter The vessel & port information are automatically shown without manual inputting when you type enter.

77 Users Guideline Page 77 Once you input package, weight, measurement on the side of container & seal number, then the same data would be reflected on upper column automatically. On this screen, Commodity you input is utilized for cargo handling purpose by terminal & Rail, Truck company not Customs declaration. (Commodity of S/C is acceptable). Please input Marks & Number, Commodity in below screen then select option Y to create House B/L finally.

78 Users Guideline Page 78 INPUT HOUSE B/L NO & SCAC CODE OF AUTOMATED NVOCC 1. Why index (House B/L NO) & SCAC CODE of Automated NVOCC is necessary You are kindly requested to know the fact that House B/L No & SCAC Code are essential information by U.S.discharging office to see customs entry of Automated NVOCC on the AMS. especially no record or mistake in the inputting of Automated NVO's B/L & SCAC Code would make it impossible for HASA to see the AMS entries for cargo releasing, though Automated NVOCC indicated HMM on the SNP (Second Notify Party) field of their manifest. Therefore, Pls check HOUSE B/L NO & SCAC Code with Automated NVOCC correctly and input them into existed Automated NVOCC House B/L No input menu before AMS filing. 2. How to create index( House B/L NO) & SCAC CODE A. Input VVD & port of loading onto below screen B. Please input House B/L NO & SCAC Code of Automated NVOCC. C. House B/L No shall not exceed 12 digit as it is formally fixed by U.S. Customs.

79 Users Guideline Page 79 CANADA CUSTOMS ACI RULE AMS (Automated Manifest System) 1. Entering Canada AMS A. In order to enter Canada ACI, Please select Origin Canada Customs as below. B. You can access to this program with only authorized pass world & user ID. 2. Brief function A. All menus except #2894,#2896,#2897are the same as them of U.S. Customs 24 hours rule. B. Check all target B/Ls through #2898,#2899,#2900 to see if they are in good order on AMS then count number of B/Ls depend upon T/S information, you received from origin office. C. Check # 2901 to see if T/S error is existed or not. E. # 2891 is manifest submission option and # 2892 is amendment option.

80 Users Guideline Page 80 #2900 B/L Inquiry by M.POL This screen shows all B/Ls by customer type. so please type VVD & mother vessel POL then see B/Ls what you want. Below is explanation for options. : Direct Account B/L. Y : Non-Auto Freight Forwarder (NVO) B/L. A : Direct Account B/L + Non-Aut Freight Forwarder (NVO) B/L. N : Automated Freight Forwarder (NVO) B/L. M : Master B/L including Direct Account B/L.

81 Users Guideline Page 81 # 2899 B/L Inquiry by Origin POL On this screen, you can view Master B/Ls & House B/Ls by Origin Port & B/L type.

82 Users Guideline Page 82 # 2898 Filing Pre-arranged B/Ls by M.VSL POL This screen shows you Master B/Ls & House B/Ls, you need to transmit to Canada Customs. Please check all target B/Ls carefully before submission. Details of B/L types are are as flowing. MST TOTAL: Total of Master B/L. DIRECT-MST: Direct B/L, which is also used as a Master B/L at the same time. NTO-MST: Master B/L of Non-Auto Freight Forwarder (NVO). ATO-MST: Master B/L of Auto Freight Forwarder (NVO). NTO-HOUSE: House B/L for Non-Auto Freight Forwarder (NVO).

83 Users Guideline Page 83 # 2901 Data Error List Please type VVD to check status of T/S information error. If you have T/S error, B/L does not appear on option #2898,#2899, #2900&, #2891 and B/Ls would be missing from manifest submission. so please correct error with origin office perfectly before final manifest submission.

84 Users Guideline Page 84 # 2891 M anifest Data Transmission Please type in VVD & POL on the above options then you will see each POD of shipment in blue color. Also this screen does a pre-check to identify common problems before proceeding. If error happens, you need to correct it first. Once everything is OK, you could transmit manifest to Canada Customs finally by entering F5 key.

85 Users Guideline Page 85 # 2892 Amendment by VVD-1 Add, Change, Deletion after manifest submission are only available on above screen. Please type in VVD & POL,and, if necessary, POD, Action, Display Type, Show cancelled b/ls before entering next screen. Action consists of four things; A= add, C=Change(Delete & Add), D= Delete, blank option and you can choose what you wish to act. Display Type and Show cancelled b/l also allow you to check manifesting result. Once all necessary parameters are entered, a program identifies Master B/Ls and House B/Ls accordingly and displays those on the next screen. One more thing, Empty Report is for only destination office not origin.

86 Users Guideline Page 86 #2892 Amendment by VVD-2 This screen shows you manifesting result you did action for B/Ls. Pls select A, C, D then put any action code on an ACT column for specific B/Ls to send to Customs. If you already typed action code on the Amendment by VVD (#12)-1, it appears on this screen automatically. Anyway please select target B/L in this screen then action type what you want. Here is more information for Actions. A (Add ) : add new B/Ls for manifested PODs. C (Change) : change B/Ls that are already manifested and C has two functions (Delete & Add) at the same time. If you send C to Customs, B/L that manifested are deleted from Customs then same B/L is added. D (Delete) : delete B/Ls that are already manifested from Customs.

87 Users Guideline Page 87 # 2894 Response Notification -1 - Type in VVD & M.POL, Full/Empty (F: Full cargo, E: Empty Cargo). - You can type kinds (ACC, REJ, DNL, DNU, HLD,???, ERR) on the kind option to sort response, you want to see. - You also could see response by B/L number and it is big different point from U.S.24 hour rule. - If enter F1 key on above initial screen, kind inquiry window will appear and meanings of them are as follows. ACC: Accepted B/L REJ: Rejected B/L DNL: Do not Load DNU: Do Not Unload HLD: Hold

88 Users Guideline Page 88???: No response for B/L submission and it means that B/L still does transmit to Customs, or not receive response. ERR: This is a check function not Customs response. You can sort all B/Ls except ACC. : This is a check function not Customs response. You can sort all B/Ls. # 2894 Response Notification -2 Once you type information, you will show Customs response for yor manifesting. As indicated above, Canada Customs releases response by B/L not VVD and it is significant difference from AMS of U.S Customs. If all B/Ls are accepted by Customs, everything is OK. However if some B/Ls are rejected, Please move a Cursor on the line of target batch and press F8 key to inquiry rejected reason and correct error with concerned parties before 24 hours clock starts. For your easy understanding, you can refer to #26 rejected code inquiry. Also F9 key is useful function to check log of B/Ls, you submitted to Customs

89 Users Guideline Page 89 # 2896 Rejection Code Control In order to know more accurate rejected reasons, you can refer to above code inquiry menu. You can see specific code by typing code on code option or just enter to see all types.

90 Users Guideline Page 90 # 2897 CCN Inquiry You can refer to CCN (Cargo Control Number) on above option. CCN consists of carrier code (9463) + B/L Number (11, or 12 Digits). So please create Master B/L Number and notify whole CCN to Auto Freight Forwarder (NVO).

91 Users Guideline Page 91 MASTER B/L PRE-ASSIGNATION PROCEDURE This function allows you to create Master B/L Number before documentation processing for CCN (Cargo Control Number). Please assign Master B/L Number in advance then provide CCN to Automated Freight Forwarder (NVO). Here is detailed procedure. #1001 Booking Entry - Click Input on the option and enter to assign Master B/L Number in advance. - If you already made Booking Number, You can choose Update for pre-assignation of Master B/L Number.

92 Users Guideline Page 92 # 1001 Booking Entry (1) - Input necessary booking information on the screen above and go to next screen.

93 Users Guideline Page 93 # 1001 Booking Entry (2) - Complete inputting of rest Booking information on the screen (2). - Select Pre B/L CRT(Pre-Assignation of Master B/L)" from B/L Option. - To save Booking information, Please click "Yes" on the save field.

94 Users Guideline Page 94 Pre B/L Number Creation - Type number (quantity) of B/L, you want to create Pre-Assign B/L for Customer. - This system allows you to create maximum 10 B/Ls, but please make sure that you have to input accurate quantity to reduce abuse of B/Ls. Once B/L No is created with this function, system recognizes this B/L No automatically and never create same B/L No later. Thus you have to create correct quantity of Master B/L. - If you want WAY BILL, Please input "Y" on the blank. - Once you succeed in making Master B/L No, Please enter save button finally.

95 Users Guideline Page 95 # 1001 Booking Entry (2) - You will see above mentioned notice when booking is done successfully. If you create Master B/L No with update option, notification" Booking Updated" will appear.

96 Users Guideline Page 96 # 1010 PRE MASTER B/L NO INQUIRY (1) - By using above function, you can check Pre-assigned B/L No. Please select options, you want and then enter to see record.

97 Users Guideline Page 97 # 1010 PRE MASTER B/L NO INQUIRY (2) - Once you select options, Pre-assigned B/L No, Booking No will appear.

98 Users Guideline Page 98 # 2001 B/L INPUT - With pre-assigned B/L No, you can create B/L on this menu. For this purpose, Please input booking No first then enter.

99 Users Guideline Page 99 # B/L Input (1) - This is a B/L input menu and allows you to see all Pre-assign B/L Nos you already created # Pleas e select and type "Y" to input B/L's whole information. Once B/L No is used by you, it is not selected in this screen any more. - If you create more B/L No than your consumption, it is waste of B/L No as long as you use extra B/L No manually as system could not create same B/L No again. thus please make sure that you have to create only necessary quantity of Pre-Assign B/L. - For above reason, deletion of Pre-Assigned B/L No is not available. - If you want more B/L No due to customer's request, Please go back to # 1001 and create additional B/L No with "update" option.

100 Users Guideline Page 100 NATION, STATE, CITY INPUT PROCEDURE 1.City Name The City name is one of important factors, carrier has to report to Customs and you are asked to input customer located city name within m aximum 30 characters without code. In case of "TO ORDER B/L", you can input city following the " TO ORDER OF" statement. 2. Nation Nation is also one of mandatory elements and you need to input customer located nation code. Help key allows you to search available Nation code. Regarding "TO ORDER B/L" proper nation is where the parties, such as shipper/bank of following the "TO ORDER OF" statement are located. 3. State (U.S. and Canada customer only) Input customer located state code and help key is available to search code. This is related to only state in Canada & U.S territory. Foreign countries excluding Canada & U.S have nothing to do with state. If address of shipper & bank of "TO ORDER B/L" is not related to Canada & U.S, you could inquire code "XX", which is existed on description, then select it.

101 Users Guideline Page 101 TAG MANAGEMENT 1.Purpose The Supplementary Report (House B/L) as well as Primary Report (Master B/L) is required to be to submitted to Canada Customs in advance. In order to sort out Customer s type by user, additional indicator (AMS TAG) is introduced into B/L inquiry (8) and this is very important portion to ensure successful manifest submission. so all origin offices should input accurate TAGs in the designated fields of Master B/L. 2. Defination of cargo type 1) Direct Account HMM receives booking from direct customer and this account s name is showing in the Master B/L and no House B/L is involved. HMM receives S/R (Shipping Request) from Direct account for Master B/L creation then submit it to Canada Customs. 2) Non-Automated Freight forwarder Freight forwarder is not able to transmit House B/L (Supplementary Report) to Customs and that s why of both House B/L & Master B/L from account for creation then submit them to Canada Customs. 3) Auto Freight forwarder Freight forwarder is capable of reporting House B/L (Supplementary Report) to Customs directly. In this case, HMM obtains S/R (Shipping request) for Master B/L creation then submit it to Canada Customs. 3. How to use tag function Now there are two tag options on NVO-AMS field of B/L inquiry (8). The former is tag of U.S 24 hours Customs rule and the latter is for Canada Customs ACI. Therefore origin office should recognize difference of two options first then input accurate tag separately. 1) Please check type of customer (Direct account, Non-auto Freight forwarder, Auto Freight forwarder) then input tag Y, N on NVO-AMS field or leave it as a Blank with below logic. - Direct Customer: Blank - Non-Auto Freight Forwarder) : Y - Auto Freight Forwarder: N 2)You have to input tags on two fields of NVO-AMS depend upon Customs, where manifest is reported to. First option is for only U.S Customs declaration as per 24 hour rule and second tag option is related to only Canada Customs ACI. A.NVO-AMS (US): Tag for only U.S local cargo & FROB (VCR) cargo under U.S. Customs 24 hours rule. B.NVO-AMS (CA): Tag for only Canada local Cargo & FROB (Portland/PNW, LosAngeles/PS1, Seattle/PS3) under Canada Customs ACI.

102 Users Guideline Page 102 3) Please make sure that this is to accommodate varied account types. Ig, some is an Auto NVO (Freight Customs declaration. Also contrary case would be taken place. So you could handle NVO-AMS (US) like current procedure, you have done till today under U.S Customs 24 hours rule, but NVO- AMS (CA) requires accurate account type for only Canada Customs. For your easy understanding, Please see example cases below. 1) Customer is an Auto Freight Forwarder for both U.S.Customs & Canada Customs. NVO-AMS N (US) N (CA) 2) Customer is a Non-Auto Freight Forwarder for both U.S.Customs & Canada Customs. NVO-AMS Y (US) Y (CA) 3) Customer is an Auto Freight Forwarder for U.S.Customs, but they are Non-Auto Freight Forwarder for Canada Customs. NVO-AMS N (US) Y (CA) 4) Customer is a Non-Auto Freight Forwarder for U.S.Customs, but they are Auto Freight Forwarder for Canada Customs. In case, this case will not happen. NVO-AMS Y (US) N (CA) 5) Direct Account for Both U.S.Customs & Canada Customs NVO-AMS _ (US) _ (CA)

103 Users Guideline Page 103 * If Customer is an Auto Freight Forwarder for U.S.Customs 24 hours rule, they submit their manifest of Portland/PNW, LosAngeles/PS1, Seattle/PS3) to U.S.Customs directly. H wver if they want to be Non- Auto Freight Forwarder against Canada Customs ACI, You need to create House B/L for cargos of Oakland/PS1, Seattle/PS3 then present it to Canada Customs within FROB cargo handling regulation.. EMPTY CONTAINER CARGO TYPE Empty Container manifest is also required to be reported to Canada Customs 96 hours prior to arrival of vessel at first port of Canada.originally below cargo type function is used for only Korea Export cargo, but it is applied to all origins in order to destination to identify empty container status through the system. when you enter below screen, system will always show you "S". Therefore you should update cargo type to read "E" for empty container, but you has to leave default "S" without touch for full Container.

104 Users Guideline Page 104 SLAC (SHIPPER S LOAD & COUNT) As indicated, Canada Customs does not permit a phrase SLAC (Shipper s Load & Count) on the manifest, but this wording is very important factor to protect carrier from unexpected matters such as, mis -stuffing, short/over landing, discrepancy of piece count, etc of cargo which was loaded, counted, weighed by customer directly. For those reasons, system (AMS) will block this clause SLAC automatically at the time of manifest submissions to Canada Customs and you do not need to take any additional manual working to get rid of this passage from B/L.