Industry Adopted Proactive Approach to the 24-hour Rule 

To get the industry fully prepared for the implementation of the “24-hour Advance Cargo Vessel Manifest Rule” (24-hour Rule) and clear up any possible mystery about the rule, a free briefing on “Container Security Initiative” was held on 22 January 2003 by the Hong Kong Shippers’ Council, jointly with the Hong Kong Exporters’ Association, Textile Council of Hong Kong, Federation of Hong Kong Industries, the Chinese Manufacturers’ Association of Hong Kong, and Hong Kong Association of Freight Forwarding and Logistics. More than 200 people showed up for the seminar. Speakers for the seminar included representatives from the Hong Kong Shippers’ Council, Hong Kong Liner Shipping Association, Hong Kong Association of Freight Forwarding and Logistics, Tradelink Electronic Commerce Ltd and Hong Kong Shipping Gazette. They explained the requirements of the rule and its impact on the trade and industry, as well as providing guidelines and solutions to help the audience tackle any foreseeable problem.  

Comprehensive Impact on the Trade

Mr Sunny Ho, Executive Director of the Hong Kong Shippers’ Council, pointed out that the 24-hour rule would create a comprehensive influence on Hong Kong export trade, not only weakening Hong Kong shippers’ flexibility to handle urgent orders, but also shortening the time allowed to hold containers. Any missing or inaccurate information submitted on the manifest may result in an ocean liner or NVOCC’s rejection to handle the cargo. Mr Peter Cheung of Hong Kong Liner Shipping Association raised the audience’s awareness of the shipping instruction cut-off time for submitting cargo information. The cut-off time for submitting cargo information ranges from 72 to 48 hours prior to lading, depending on individual ocean liners and NVOCCs. He also emphasized that ocean liners will refuse to load containerized cargos on their ships if the manifest is not in the required format. All losses subsequent to the cargo hold-up, like warehouse rental, will be borne by the shipper and exporter.  

US Customs Air Cargo Security Measures to Implement this October

Mr Sunny Ho also remarked that US Customs was putting forward a proposal (known as the Strawman Proposal) that all carriers, de-consolidators, freight forwarders and some consignment couriers should be required to use the Air Automated Manifest System (AAMS) to provide advanced, electronic cargo declaration information to Customs in a paperless environment. Such manifest data must be supplied 8 to 12 hours prior to lading for courier shipments. The manifest information will be analyzed by US Customs which then notifies the relevant carrier via the AAMS whether the shipment needs to be impounded for Customs inspection based on security reasons. Views and suggestions on the Strawman Proposal can be sent to US Customs through emails at traderelations@customs.treas.gov. The Economic Development and Labour Bureau and Hong Kong Customs & Excise Department also commence to consult the affected sectors in March on possible counter-proposals, with an aim to minimize the impact of such measures. 

Since the full-fledged implementation of the 24-hour rule for vessel-borne cargos on 2 February, according to the trade and sources from Hong Kong Customs, only 2% of Hong Kong shippers have failed to comply with the rule, much lower than the original estimated failure rate of 60%-40%. The successful experience with the 24-hour rule will lead Hong Kong exporters and the transportation community to believe that they will survive the Strawman Proposal on mandatory advanced electronic air cargo information, as long as the requirements of the rule are clearly set out, there is adequate time for the trade to reflect their opinions and get prepared, and effective solutions are accessible on the market.

Mr Willy Lin, Honorary Chairman of the Hong Kong Exporters’ Association and Chairman of the Hong Kong Shippers’ Council delivers a welcome speech at the briefing.

林宣武先生以香港出口商會名譽會長及香港付貨人委員會主席身份於簡報會上致歡迎辭