CBP Provides Trade Update Regarding Hurricane Katrina

New Orleans, Gramercy, Mobile, Gulfport, and Pascagoula are non-operational. According to CBP, the port locations of New Orleans (port code 2002), Gramercy (port code 2010), Mobile (port code 1901), Gulfport (port code 1902), and Pascagoula (port code 1905) are currently non-operational due to Hurricane Katrina.

Atlanta designated for oversight on all cargo clearance and import-related processing for affected area, etc. CBP states that the Atlanta field office has been designated oversight on all cargo clearance and import related processing for the affected area. The Atlanta Field Office has designated the port of Memphis (port code 2006) to manage all import-related transactions.

(CBP adds that the Atlanta Field Office also has designated oversight of the following ports that have not been closed due to Hurricane Katrina; Memphis, TN, Knoxville, TN, Nashville, TN, Chattanooga, TN, Blountville, TN, Little Rock, AR, Rogers, AR, Gulfport, MS, Vicksburg, MS, Birmingham, AL, Huntsville, AL, Shreveport, LA, Lake

Charles, LA.)

Goods imported for relief efforts. Merchandise imported for relief efforts from foreign entities, including foreign governments, are admissible, as directed by the CBP Commissioner. Questions regarding importation of such merchandise under 19 USC 1318(b)(2) and 19 USC 1322(b) should be directed to the port office where the merchandise is arriving.

Entry summaries and duty collections.Entry summaries and duty collections that could not be filed in the ports of New Orleans, Gramercy, Baton Rouge, Mobile, Gulfport and Pascagoula prior to closure due to Hurricane Katrina will not be deemed late or assessed penalties. The Port of Memphis (port code 2006) has been designated to receive entry-related items that would have been filed at the aforementioned locations.

Protests.Protests are to be filed at the Port of Atlanta, GA at the following address: ATTN: SIS Robert Lynch, US Customs & Border Protection, 4341 International Parkway, Suite 600, Atlanta, GA 30354. The telephone number is (404) 675-1245.

Seizures and penalties.CBP states that all questions and concerns regarding Fines Penalties & Forfeiture (FP&F) cases at the Ports of New Orleans, LA and Mobile, AL should be forwarded to the FP&F Office in Memphis, TN (901) 544-0455. CBP notes that information regarding cases may not be readily available, but all messages and calls will be researched and a response provided.

Vessel repair entries.Vessel repair entries normally submitted to New Orleans may be submitted to any office under the Atlanta Field Office or directly to the Newark/New York Area Vessel Repair Specialist, Amy Campbell. If a vessel repair entry is receipted outside of the Newark/New York Area, it should be immediately forwarded to that office for processing.

Remote Location Filing.CBP states that Remote Location Filing (RLF) entries transmitted for non-operational port offices should be cancelled. Requests for cancellation should be directed to the port of Memphis.

Warehouse entries.Warehouse entries that cannot be closed under normal procedures due to complete destruction of the warehoused merchandise may be closed out by the filer/importer filing a statement regarding the destruction of the merchandise in the disaster. Warehouse operators will not be held responsible for this merchandise.

October 2005 broker license examination.CBP states that individuals that were signed up to take the exam in New Orleans may elect to take the exam at any other port office, or they may withdraw from the exam and receive full reimbursement. If an individual elects to take the exam at another port office, written notification must be provided to both the Atlanta Field Office and to the selected port office. In order to withdraw from the exam and receive reimbursement, the Atlanta Field Office must be notified in writing.

Broker local and national permits.The Atlanta Field Office will issue local permits for the non-operational ports. The collection of the permit fee shall be made using the port code for the non-operational port, and the permit will be printed using the non-operational ports numbering scheme. The Atlanta Field Office will also ensure proper collection of any National permit fees for the non-operational port offices.

Filer codes.Requests for filer codes that would normally be sent by brokers and importers to one of the non-operational ports should be sent to the Atlanta Field Office, which will forward such requests to Headquarters, Broker Management Division, for further action.

Account management. The accounts assigned to National Account Managers Edward Ernst and Raymond Perry have been temporarily reassigned to National Account Manager Ms. Hedwig Lock at the Port of Nashville, tel. 615.736.5861 ext. 221. All Port Accounts handled by the non-operational port offices will be temporarily transferred to the Atlanta Field Office.

Jones Act waiver for petroleum and refined petroleum products.President Bush has instructed the Secretary of Homeland Security Chertoff to waive the coastwise merchandise statute (46 USC App. 883, also known as the "Jones Act") so non-coastwise-qualified vessels (i.e., not U.S.-built, owned and documented) can help distribute petroleum and refined petroleum products to where it is needed. Unless otherwise instructed, the waiver of the Jones Act applies only to vessels transporting petroleum and refined petroleum products and ends September 19, 2005 at 12: 01 a.m. eastern daylight time.

In addition, Secretary Chertoff has exercised his discretion and authority to waive the coastwise laws generally for the transportation of petroleum released from the Strategic Petroleum Reserve, whether pursuant to an exchange, sale or otherwise, undertaken in response to the circumstances arising from Hurricane Katrina.

The destruction created by Hurricane Katrina has rendered various U.S. ports temporarily inoperable, thereby necessitating the diversion of incoming foreign cargo from its original U.S. port of destination to the nearest feasible U.S. port. In these instances, CBP can expect to receive requests for permission to use non-coastwise-qualified vessels to transport such diverted cargo from the U.S. port of unlading to another U.S. port. The underlying issue with respect to these scenarios is the coastwise merchandise statute, which provides that no merchandise shall be transported between U.S. points on a non-coastwise-qualified vessel. Consequently, the use of such vessels not covered by the President's waiver violates the law.

CBP field officers and managers do not have authority to waive the provisions of the Jones Act beyond what Secretary Chertoff has authorized. However, I view of the exigent circumstances, CBP's position is that the requester should be instructed to contact the Maritime Administration (MARAD) at (202) 366-0760 in order to obtain a referral as to any available coastwise-qualified vessel(s) for commodities other than petroleum and refined petroleum products. The requester should be further advised that the failure to use such referenced vessels has potential penalty consequences under the Jones Act.

Vessel diversions.The CBP Port Director in the port of discharge must approve the CBP Form 3171 before passengers, baggage, cargo or any other article is removed from a vessel arriving in a U.S. port either directly or indirectly from a foreign port or place. Requests for diversion should be submitted in the form of an updated CBP Form 3171 to the Port Director in the port of discharge as soon as the decision to divert the vessel is made. CBP officers in the port of discharge must complete screening for security purposes before the vessel will be allowed to discharge.

For cargo that would have been subject to a "DO NOT LOAD" order, CBP may deny permission for the carrier to unlade the cargo. The electronic cargo information transmitted to CBP via the Vessel Automated Manifest System (AMS) must reflect the actual port of discharge. CBP recognizes that carriers cannot just "amend" the cargo information in AMS. In order to make changes, they must "delete" and "add" the same bill numbers to make the necessary changes. For Trade Act enforcement purposes, CBP will use the first transmission of the bill and the date/time of sailing from the port of loading to determine if the cargo information was transmitted timely provided that there are no extended "gaps" (more than a few seconds) between the transmissions of the cargo information. However, the first transmission must contain the mandatory data elements.

Other CBP notices related to Hurricane Katrina. CBP has also posted various other notices to its Web site regarding Hurricane Katrina, including:

• Import Specialist Team Assignments for New Orleans which provides the HTS tariff description and HTS chapter range for New Orleans import specialist teams 501, 502, 503, 504, 506, 508, and 571, which are now assigned to other ports (the other port phone numbers are also listed). (List, effective 09/06/05, available at http://www.cbp.gov/xp/cgov/import/communications_to_industry/katrina/new_orleans_is_team_assignments.xml.)
• Press release on CBP's support of Hurricane Katrina's recovery efforts (press release, dated 08/31/05, available at www.cbp.gov/xp/cgov/newsroom/highlights/katrina.xml.
• Questions and answers regarding immunizations for CBP employees responding to or affected by Hurricane Katrina (Q&A, dated 09/05/05, available at http://www.cbp.gov/xp/cgov/newsroom/highlights/cbp_employee_katrina_information/fact_sheet_katrina_immune.xml.)

CBP's trade update on Hurricane Katrina (dated 09/05/05) available at

http://www.cbp.gov/xp/cgov/import/communications_to_industry/katrina/trade_update_katrina.xml.