VES-5-11-RR:IT:EC 116211 GOB
Hector Maldonado
Operations Director
Nortex International
1211 Pier Road
Orange, Texas 77630
RE: Vessels of Navy of Mexico; Advance Electronic Presentation of Cargo Information; 19 CFR 4.5, 4.7
Dear Mr. Maldonado:
FACTS:
This is in response to your letter of April 22, 2004, in which you state as follows:
This correspondence is in regard to the clarification of the use of the AMS system with regard to the Mexican Navy (Armada de Mexico). Nortex International handles the cargo for export of the Mexican Navy exclusively. The Mexican Navy, on occasion, will return to the United States, equipment that is in need of repair and replacement, for the exclusive use onboard its military vessels and aircraft. All exports are carried aboard the Mexican Navy vessels “Tarasco”, “Rio Panuco”, “Vicente Guerrero”, and on occasion , the “Rio Papaloapan.” All of these vessels are units of the Mexican Navy, and are crewed by commissioned and non-commissioned officers and enlisted crews. No civilians are members of the crew, and when there is an occasional return imported for repair or replacement, it is only that which is for Mexican Navy use. No commercial cargo is brought aboard the vessels for export.
You ask whether the subject vessels are subject to advance reporting requirements of the Vessel Automated Manifest System. You also ask if they are required to have an international carrier bond for this purpose.
ISSUE:
Whether the vessels of the Mexican Navy are required to present advance electronic cargo declaration information to CBP pursuant to 19 CFR § 4.7.
LAW AND ANALYSIS:
Section 343(a) of the Trade Act of 2002 (Pub. L. 107-210, 116 Stat. 933, enacted on August 8, 2002), as amended by section 108 of the Maritime Transportation Security Act of 2002 (Pub. L. 107-295, 116 Stat. 2064, enacted on November 25, 2002), required that the Secretary endeavor to promulgate final regulations providing for the mandatory collection of electronic cargo information by CBP, either prior to the arrival of the cargo in the United States or its departure from the United States by any mode of commercial transportation (sea, air, rail or truck). Under section 343(a), as amended (codified at 19 U.S.C. 2071 note), the information required must consist of that information about the cargo which is determined to be reasonably necessary to enable CBP to identify high-risk shipments so as to ensure cargo safety and security and prevent smuggling pursuant to the laws that are enforced and administered by CBP.
Consequently, in accordance with the parameters set forth in section 343(a), as amended, a document was published in the Federal Register (68 FR 43574) on July 23, 2003, proposing to amend the Customs Regulations in order to require the advance electronic transmission of information pertaining to cargo prior to its being brought into, or sent from, the United States by sea, air, rail, or truck. The Final Rule amending Customs Regulations in parts 4, 103, 122, 123, 178, and 192 was published as CBP Dec. 03-32 in the Federal Register (68 FR 68140) on December 5, 2003.
The applicable Customs Regulation, 19 CFR 4.7, provides in pertinent part as follows:
§ 4.7 Inward foreign manifest; production on demand; contents and form; advance filing of cargo declaration.
The master of every vessel arriving in the United States and required to make entry shall have on board his vessel a manifest as required by section 431, Tariff Act of 1930 (19 U.S.C. 1431), and by this section. . . .
. . .
(b)(2) Subject to the effective date provided in paragraph (b)(5) of this section, and with the exception of any bulk or authorized break bulk cargo as prescribed in paragraph (b)(4) of this section, Customs and Border Protection (CBP) must receive from the incoming carrier, for any vessel covered under paragraph (a) of this section, the CBP approved electronic equivalent of the vessel’s Cargo Declaration (Customs Form 1302), 24 hours before the cargo is laden aboard the vessel at the foreign port (see § 4.30(n)(1)). The current approved system for presenting electronic cargo declaration information to CBP is the Vessel Automated Manifest System (AMS).
[Emphasis supplied.]
Notwithstanding the alternate time frames for filing advance cargo information for other than containerized cargo referenced in 19 CFR 4.7a, any vessel exempt from entry would, or course, be exempt from the provision of advance cargo information. In this regard we note that the vessels in question are vessels of the Mexican Navy. Consequently, we find relevant 19 CFR 4.5, which provides in pertinent part as follows:
§ 4.5 Government vessels.
(a) No report of arrival or entry shall be required of any vessel owned by, or under the complete control and management of the United States or any of its agencies, if such vessel is manned wholly by members of the uniformed services of the United States, by personnel in the civil service of the United States, or by both, and is transporting only property of the United States or passengers traveling on official business of the United States, or it is ballast.
. . .
(c) Every vessel owned by, or under the complete control and management of, any foreign nation shall be exempt from or subject to the laws relating to report of arrival and entry under the same conditions as a vessel owned or controlled by the United States.
[Emphasis supplied.]
We believe that the subject vessels are owned by, or under the complete control and management of Mexico, are manned wholly by members of the uniformed services of Mexico, by personnel in the civil service of Mexico, or by both, and are transporting only property of Mexico or passengers traveling on official business of Mexico. The facts of your request therefore indicate that the above-cited “provisos” are satisfied, i.e., the vessels of the Navy of Mexico are crewed by commissioned and non-commissioned officers and enlisted crews and transport only property of Mexico. Consequently, pursuant to 19 CFR 4.5, we find that the subject vessels of the Navy of Mexico are not required to report arrival or make entry.
Because the subject vessels are not required to make entry, they are not covered by 19 CFR 4.7(a). Therefore, the subject vessels are not subject to the advance reporting requirements (AMS) described in 19 CFR 4.7(b)(2). See the highlighted language of 19 CFR 4.7(b)(2), above.
Accordingly, the Mexican Navy vessels are not subject to the advance reporting requirements of 19 CFR 4.7, and are therefore not required to have an international carrier bond.
HOLDING:
The subject vessels of the Navy of Mexico are not required to make entry. Therefore, they are not subject to the advance reporting requirements (AMS) of 19 CFR 4.7 and are not required to have an international carrier bond.
Sincerely,
Glen E. Vereb
Chief
Entry Procedures and Carriers Branch