Just when you thought you had mastered all of the post-9/11 maritime security rules, here comes another – this time from Japan. From the beginning of March 2014, the world’s third largest importing country will require 24-hour advance notice of all containerized freight to be loaded on vessels destined for its ports.

A trial period to test the electronic filing requirement will begin in November 2013. The good news is that enforcement of Japan’s 24-Hour Rule (JP24) will largely follow the framework established for similar rules in the United States and Canada. Those accustomed to Automated Manifest System (AMS) and Importer Security Filing (ISF) processes will find compliance with JP24 to be familiar ground.

Exporters and forwarders in the United States and Canada who are new to advance filing
requirements, however, may need to make significant changes to their procedures, including establishing a relationship with a service provider authorized to make electronic filings with Nippon Automated Cargo and Port Consolidated System (NACCS), the Japanese government entity responsible for import/export and Customs clearance services. Information to be filed includes the type of cargo, names of trading parties, route and schedule, and identification of the vessel and container, etc., etc.

There is one notable difference between JP24 and the 24-hour rules in effect in the United States and Canada. This difference will impact Non-Vessel Operating Common Carriers (NVOCCs) and Forwarders currently filing their Customs documents via the shipping
lines.

Under JP24, the NVOCC/Forwarder will be required to separately file an advance notice with NACCS for that shipment. The shipping company must file also. Failure to comply with Japan’s 24- Hour Rule will carry significant penalties, including a fine of approximately $5,000. Payment of this fine must be received before the cargo reaches Japan or off-loading can be prohibited. Other penalties for non-compliance also may apply, including a jail term of up to one year with hard labour. This may sound severe, but remember that the primary purpose of this rule is to interdict international terrorism.

Since the World Customs organization (WCO) adopted the Framework of Standards to
Secure and Facilitate Global Trade (SAFE Framework) in June 2005 – based on the successful implementation of the 24-hour rule in the United States and Canada – many countries have begun the process of adopting a 24-hour security protocol. The European
Union’s Entry Summary Declaration (ENS) is a 24-hour advance notice rule that
applies to all modes and has been adopted by 27 countries in Europe. China is implementing
its own version of a 24-hour rule in several ports, as are Mexico, Australia, and Brazil. This trend is certain to continue as more countries embrace such procedures as an integral part of national security and as an enhancement to international trade.

In addition to these worthy goals, the Framework has a silver lining: supply chain visibility!
This is no less true for governments with security concerns, who now are learning what the rest of us already know – supply chain visibility is both essential and difficult.

Governments, however, have a trump card: the power to create procedures to mandate
supply chain transparency through the timely information contained in security filings. The
increased supply chain visibility that such mandated information provides can benefit everyone involved in global trade. With governments realizing the necessity of this data to ensure security, the vision is within reach.
Source: PB Agencies