Government Finally Notices Trains Cross Borders, Demands Electronic Paperwork
Published Date: 1/13/2025
Proposed Rule
Summary
Starting soon, rail companies exporting cargo from the U.S. will have to send their export info electronically through the Automated Commercial Environment (ACE) before their trains leave. This new rule helps Customs keep cargo safe and speeds up the export process. Rail operators and exporters should get ready to meet these new electronic filing deadlines to avoid delays or fines.
Analyzed Economic Effects
6 provisions identified: 1 benefits, 5 costs, 0 mixed.
Mandatory ACE electronic filing for rail exports
If you export cargo by rail from the United States, the rule would require you to submit an electronic export manifest (EEM) in the Automated Commercial Environment (ACE). An initial set of seven data elements must be filed at least 24 hours before the train departs, and the remaining manifest data must be filed at least 2 hours before departure.
Who may file and carrier responsibility
The outbound rail carrier must submit transportation and empty-car data and must submit the initial filing and cargo data if no other eligible party does. Other eligible filers include the USPPI or FPPI (or their agents), customs brokers, ABI filers, NVOCCs, and freight forwarders.
New pre-departure holds and Do-Not-Load powers
CBP may hold rail cargo flagged by risk assessment until more information is submitted or a physical inspection is completed, and CBP can issue Do-Not-Load (DNL) instructions that prohibit a carrier from transporting a rail car. If cargo is cleared, CBP will send a release message to the filer.
Bond changes and liquidated damages for noncompliance
CBP proposes amending bond regulations (19 CFR 113.62, 113.63, 113.64) so it may assess liquidated damages on parties that fail to provide mandatory EEM data in the required manner and time frames. Parties transmitting EEM data must be in possession of an applicable CBP bond.
Security and efficiency gains from ACE EEM
CBP says the EEM will let it screen all rail export data with its Automated Targeting System, reduce paper-manifest storage, improve interagency coordination, and let filers get faster examination decisions and easier electronic corrections. The Test showed nearly 94% of transmissions occurred more than 24 hours before departure and CBP notes avoiding train deconstruction inspections can prevent up to 2-hour delays and about $3,000 in freight movement costs per incident.
CBP's estimated aggregate costs and savings
CBP estimates present-value (2016–2030) total costs to CBP and trade members of about $9.3 million (2% discount rate, annualized $0.7 million) and present-value total cost savings of about $59.1 million (annualized $4.6 million). CBP also states present-value total net costs of about $49.8 million (annualized $3.9 million) using a 2% discount rate.
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