The Story Behind The New Rules
BAL Promoted SP’s Role In JP24
- BAL’s Information Site – To assist readers overseas to learn about the New Rulings by Japan Customs
- NACCS Readies Its AFR (JP24) Web Portal Detailing More Information
- AFR(JP24) are officially released by Cutoms Tariff Bureau and NACCS
- Customs Tariff Bureau Submitted Policy Documents On Import Cargo Security (JP24)
- BAL – About Japan Import Cargo Security Info Box
On March 10, 2014 has marked the final step in Japan’s Ocean Advance Filing Rules (AFR-JP24) implementation. Since that time, filers around the globe are now required to send data to Japan Customs or face potential penalties where Descartes Systems is fully ready and available to service all such customers. Descartes customers were among the first to move into compliance and successfully submit thousands of messages in the first week alone. As a pioneer in the field of regulatory compliance, Descartes was also the first logistics technology provider to work with the Nippon Automated Cargo and Port Consolidated System (NACCS) Center to electronically submit manifest information to Japan Customs.
(Source: NACCS Website 2013-3-1)
This is the place where a variety of relevant information about JP24 are available by NACCS. For English readers outside Japan can have an easy access to necessary details on the coming implementation in terms of Procedure. EDI Mapping, Code, Service Provider, FAQ etc. Please bookmark and visit this portal site so as to make your information updated for the security filing fules of Japan. NACCS defines its purpose of this portal site to read;
“The purpose of this website is to provide obliged filers information on using NACCS to report maritime container cargo information to Japan Customs based on Advance Filing Rules*
(Source: BAL Editor 2012-8-21)
BAL has attended the two official presentations hosted by CTB (Customs Tariff Bureau) and NACCS (Nippon Automated Cargo and Port) on JP24 where several official documents were made available. The audience includes a variety of people from the Japan trade community where shippers as well as carriers and NVOCC have participated.
(On JP24 System Project)
CTB (Customs Tariff Bureau) and NACCS (Nippon Automated Cargo and Port Consolidated System Inc.) have jointly hosted an official presentation of the JP24 program to the Japan local trade community with more system specifics for the very first time. This presentation continues to be made at the 15-locations across Japan. The first event opened from Yokohama Customs on September 10th which is followed by Tokyo Customs on September 11th. All events will be completed by the last session at Okinawa Customs on September 20th.
(On Service Provider)
NACCS had a special information session to focus on Service Providers (SP) before starting its official contact and invitation to individual SP candidates in October. About 30 people attended this gathering held at NACCS Center which includes such parties from SPs, software developers and trade institutions as JIFFA. It addressed three issues; a. an executive summary of the new rules, b. business and system flow, c. operational specifications. This event was arranged in Japanese language only while NACCS will soon release its official English documents sometime soon that will be posted at its English website.
(Note: All English document will be posted on this site after NACCS releases its official PDFs in English)
(Source: Oct. 27, 2011 BAL website)
CTB WG Chairman Submitted His Policy Document Defining Basic Rules On Import Cargo Security (JP24)
The Special Advisory Council on Customs, Tariff, Foreign Exchange of Ministry of Finance (Customs & Tariff Bureau – CTB) was convened on Monday October 25, 2011 and has adopted a crucial policy paper that was prepared by the Working Group chairman on the strategic issues of how best to manage and ensure “Trade Facilitation and Cargo Security” in the global supply chain or international logistics. After the policy overview section on the global trade scene and its critical role of customs, this document in the item-3 has devoted several pages with more concrete and specific details than before in terms of Import Cargo Security agenda.
In this chairman report, three general policy challenges ahead are tabled that must be addressed to by CTB i.e. (1) customs paperless framework and platform, (2) AEO with its effective and efficient use, (3) import cargo security i.e. the so-called 24-hour rule in Japan.
In terms of JP24 or Import Cargo Security in particular, this document is to cover general issues as well as specific agenda that include, for the very first time, on CTB’s time table or roadmap for an implementation of the new proposed legislation. The below chart (prepared by this Editor referring to the CTB original chart) explains such time table while the three keywords as already elaborated in this info box are kept intact also in the chairman paper, i.e. (1) advanced cargo manifest before vessel loading at foregin port, (2) import cargo details must be reported by carrier as well as NVOCC, i.e. master/house B/Ls, (3) electronic filing becomes mandatory thereby eliminating the current remaining paperwork in use.
In addition, a status of NVOCC with its genuine carrier role and its responsibility for e-filing their house B/L to customs is more explicitly redefined. And also an employment of “Service Provider” scheme appears now well stated. These ideas will, in respect of the advanced cargo security operational arrangement, surely open the door for direct e-filing at loading side from overseas.
(by BAL Editor)
BAL – Free Translation of CTB Document
The following is BAL Editor’s free translation of the CTB official document (Page 15-17) in Japanese language as referred to the above. Contents are limited to selected relevant parts of Import Cargo Security in the Item-3.
– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –
(The Original Document in Japanese language- Page 15-17)
Item-3. Import Cargo Manifest – Three Keys To Secure Availabililty of Information
1) Advanced Cargo Manifest,
2) Cargo On Master & House B/Ls,
3) Electronic Data Filing
(1) Basic concepts and approaches
Under the current global supply chain management and international logistics operation, if any country may fail to protect required levels of the international security standards, it might inevitably cause targets of terrorism by leaving security holes uncovered. As a result, it could invite proliferation of terrorism that may spread over around the globe. Therefore, Japan must meet the level of international security standards as required which simultaneously protect the global trade from the threats of terrorism and enforces the stabilization of international trade system.
This situation calls for one agenda among customs organization of every nation on how to carry out the combined efforts to the challenges on “Trade Facilitation and Cargo Security” and manage the international trade system. In June 2005, the WCO Council adopted the SAFE Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework) that would act as a deterrent to international terrorism, secure revenue collections and promote trade facilitation worldwide. To meet these challenges, United States, EU and some other nations have then focused on maritime container cargo which may be used to conceal terrorism-related materials or weapons of mass destruction. These countries implemented so-called the 24-Hour Rule that was adopted in December 2002 by U.S. for the very first time. It requires cargo information to be reported by three keys, i.e. 1) advanced cargo manifest before loading, 2) full details of cargo onboard by Master as well as House B/Ls, 3) reporting be made electronically. These are the efforts eventually to strengthen the border protection based on risk management by using information available from the trade.
In the meantime, Japan Customs rules today define the responsibility of ship captain or its agent who must make sure cargo manifest report be available 24-hours before vessel arrival at port of entry by compiling Master B/Ls onboard (hereafter called Master B/L). In addition, Customs may, if so deemed necessary, also request consignees or its agent to report their House B/Ls details issued by NVOCC (hereafter called House B/L). Such reports can be made either electronical form or by paper document.
In the light of SAFE Framework including the advanced cargo manifest before vessel loading, the import practice of Japan Customs today appears needing some reviews so as to enforce, protect and prevent our borders from the international terrorisim, smuggling of illegal goods and social ills as applicable. Some of reviews necessary on the current practice are;
– Submission of cargo manifest is made just before ship’s arrival
– Container cargo with consolidations appears missing some crucial details
– Some of Master B/L information continues to be made in paper instead of in electronic form
These elements are calling for more scrutiny and improvement of risk management, operational method and timing of report, CTB finds that renewed administrative measures and corresponding actions are now necessary.
(2) Measures to be taken
The globalized supply-chain and international logistics today makes a situation very critical for Japan where it needs to embrace the SAFE Framework and meet its levels of the security standards. In terms of the ocean cargo manifest issues in particular, it shouldl be made available prior to vessel loading at foreign port. This rule applies to both of shipping company as well as NVOCC being the party responsible for its carrying cargo contents as contracted.
And such contents of shipment information should be made in more of details submitted by electronic form as compulsory. By these measures with relevant cargo information available, it makes CTB far easier, more efficient and effective to conduct its risk analysis.
In the meantime, it may be necessary and desirable for CTB to allow about two years time to develop systems and setup relevant arrangement for implementation including its outreach programs to the trade as well as implications on risk management.
In addition, information relating to air cargo shipment that is currently made just before the arrival to port of entry, the attempted terrorist incidents occurred in Yemen October 22, 2010 has caused rethinking on the security of air cargo at a variety of international forum including WCO where measures are, similar to sea cargo, to be taken so as to obtain relevant information well in advance.
(3) Concrete and specific measures
1) Advanced Cargo Manifest
– To advance timing of report: 24-hour before vessel departure at foreign port instead of the current timing of vessel arrival at Japan port
– To have some flextibility: time allowance for Asian neighboring countries be considered because of its importance in Japan import trade in terms of volume, traffic and values
2) Cargo On Master & House B/Ls
– To have more details on cargo: commodity items (HS 6-digit), seal numbers, stopover countries, information on senders/consignees and other items to facilitate and secure necessary examination and analysis over potential risks if any
– To ensure direct manifest e-filing from overseas: with an effective use of IT technology including Internet, cargo manifest be made from overseas direct
– To consider Service Provider employment: as adopted in U.S. and others, e-filings be made with a use of such service provider who is qualified to perform required regulatory compliance filing service.
3) Electronic Data Filing
– To have manifest submission by electronic form only: Master and House B/L information be filed using electronic method as compulsory thereby making the paper-oritented submission by FAX or paper document be no longer acceptable
– To facilitate risk management by using Service Provider: With a use of qualified professional service as available, filers can easily comply with the compulsory electronic filing requirement.
– To promote e-business among the trade indutry: An advanced availability of electronic import data at upstream (at the time of vessel departure from loading port), opens a door for effecitve business management solutions including good cargo visibility among relevant trading parties.
(Free Translation by BAL Editor)
(Source: Sep.12, 2011 BAL Editor at BAL website)
About Japan Import Cargo Security Info Box
Official Documents Published By Customs and Tariff Bureau(CTB) – Sept. 2011
The Customs and Tariff Bureau (CTB), Ministry of Finance of Japan, the governmental body in charge of all matters relating to Customs administration and tariff policy, has recently published its official document on Japan Import Cargo Security measures for the very first time. It is a similar security program to the AMS 24 hour rules in U.S. or the same of ICS-ENS in EU. (Note: we tentatively name this planned security program in Japan as “JP24” in this website). It is released after the policy study group of CTB has reviewed a draft on the new legislation program. Although there are no specifics available relative to its implementation details such as schedule or timetable, however, this document may become the basic policy guidance for the business community in Japan as well as foreign countries.
In the released report, CTB has adopted three key words i.e. (1) advanced manifest filing before vessel loading at foreign port, (2) Master and House cargo details be submitted, (3) e-filing is mandatory to eliminate paper document. These elements are extremely important and crucial to those people and organizations in the trade community overseas as well as in Japan who are the key players for the success of JP24 program. Although the CTB released document (written in Japanese language) can be downloaded at the CTB website, you can also read the same PDF here at our site. Please click here.
(Sep.12, 2011 BAL Editor)
Note from the Editor:
This website has been focusing on the “Cargo Security” issues since many years after the introduction of the 24-Hour Advanced Cargo Manifest System was implemented by U.S. Customs and Border Protection (CBP) in December 2002. We have also reported the recent security issues of ISF (10+2) by U.S. as well as the program of ICS-ENS by EU Customs. To meet with the need of our readers from Japan, we setup a special column naming “Cargo Security Info Box” in Japanese language, but nothing similar has been arranged in English. While the latest policy move by CTB on the Japan Import Cargo Security may invite more interest of readers outside Japan, our website now starts English pages so as to report news and information in the “Japan Cargo Security Info Box” section. (9/12/2011)