US Customs makes new "prior to lading" rules
Shipping to the US is about to become more complex, slower and more expensive as the latest US Customs initiative requires shippers to give 24 hours notification of cargo before loading. But this might have a positive effect on the use of freeports for the storage of things that are passed around the world as value in money laundering transactions
As from 2 February manifests for all container cargo bound for the USA must be notified to US Customs 24 hours before it is loaded on board. The Advance Manifest Regulation is not limited to the ports that have signed up to the Container Security initiative nor to the thousands more that have not. All shipments will be subject to the rules and they will be denied unloading in the event that the information was not sent in time.
US Customs Commissioner Robert Bonner says ""I believe we have provided sufficient time for the change of business practices needed to comply with the 24-hour rule... Vague descriptions of cargo on ships or blank descriptions will not be accepted."
This measure in some way complements the recent announcement that airlines must send passenger manifests to US Immigration before aircraft arrive in the USA.
But there is some oblique benefit to counter-money laundering action: it has long been known that goods are shipped around the world in containers that are not opened until the money is required. Cigarettes and video cassettes have been favourite because of the ready market for them anywhere. These goods have often sat in freeports for some time.
The detailed manifests will mean that such transactions are less likely. The point about a freeport is that local customs do not open the container. Now they will be able to know what it declared in detail and, if they do inspect, then any discrepancy will be cause for complaint.
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