U.S. Supply Chain Managers Must Get Up to Speed on Intra-Asia Trade Next Year
By Patrick Burnson, Executive Editor
September 30, 2013
Editor’s Note: This is the first of a two-part analysis of trade challenges looming in 2014.
Intra-Asia trade will be taking a big step forward toward transparent supply chains with Japan’s upcoming Advanced Filing Requirement (AFR). Beginning in March 2014, Japan will be mirroring the US and Canada’s requirement for 24-hour advanced filing of bill of lading and cargo details.
The good news, says Trade Tech chief executive officer Bryn Heimbeck, is that the framework for the Japan 24-hour rule is very similar to the 24-hour rule frameworks in place in the U.S. and Canada.
“Everyone who already has processes in place for cargo moving to the U.S. and Canada will find no big changes,” he says. “Almost all of the requirements are the same except that it is required in the same document and not two separate submissions as it is in the U.S. with AMS (Automated Manifest Service) and ISF (Importer Security Filing).”
According to Heimbeck, the major AMS and ACI (Advance Commercial Information for Canadian Customs) service providers are all working on establishing connections to NACCS, Japan Custom’s systems affiliate, and all of the leading providers will have web-based interfaces to make compliance easy and fast.
The big impact will be on NVOCCs (nonvessel operating common carriers) and forwarders who have been filing their documents via the steamship lines for AMS and ACI or who have not been involved in the North American trades. If the name of the shipper or consignee on the steamship line’s bill of lading is masked in any way, then the forwarder or NVO has a requirement to file separately from the steamship line.
This is the most substantial difference between the U.S. and Canadian 24-hour rule and JP 24.
For those who have not been involved in the U.S. or Canadian 24-hour rules, the requirement is that all of the essential information about the shipment, including the trading parties, the route, schedule, and vessel, and container and cargo information will need to be transmitted to NACCS 24 hours before the cargo is loaded on board the vessel.
Failure to comply has some significant penalties that include a fine of $5,000, which will need to be paid before the cargo reaches Japan or the cargo may not be allowed to off-load. Other penalties may apply as well including potentially time in jail of up to one year with hard labor.
“It’s no coincidence that JP 24 looks so similar to U.S. and Canadian 24-hour rules.,” said Heimbeck. “The World Customs Organization adopted the Security Framework in 2005 based on the successful implementation of the 24-hour rules in the U.S. and Canada. You can expect to see a growing number of countries to adopt or advance their rules in line with the security framework.”