However, a letter from the group to the bill's sponsors — Chairman John McCain, R-Ariz.; Sen. Fritz Hollings, D-S.C.; and John Breaux, D-La. — came two weeks after the committee adopted the Maritime Transportation Security Act of 2004 by voice vote April 8.
The bill gives the Department of Homeland Security — and by extension the Bureau of Customs and Border Protection — the authority to move containers left on the dock more than five days to a general order warehouse and issue administrative penalties of $5,000 for each bill of lading associated with shipments in the container.
The proposed rule “creates an inconsistent clash with existing customs law and existing security measures, resulting in an untenable ‘Catch-22’ scenario for importers and customs brokers,” NCBFAA President Federico Zuniga wrote. Brokers are sometimes penalized now for too quickly facilitating the movement of cargo to inland destinations in cases in which a truck driver was not aware Customs had slapped a hold on a shipment for closer inspection.
The trade group said it is unfair to penalize industry when Customs is slow to release goods. “Neither the customs broker, nor the importer, nor the steamship line is authorized under existing law to transport the container until entry and release occurs and a permit for its delivery is granted,” the NCBFAA said.
The association said the proposed rule is unnecessary because importers already have an incentive to avoid demurrage charges that vessel operators often start to calculate if a container has not been moved within two days of unloading from a ship.
The bill must still be enacted by the full Senate.
Brokerage Compliance Symposium
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The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now