FAQs

Why are the carriers only now notifying exporters?

Since the carriers are unwilling to lose a client by refusing freight without the SED, they assume the burden of the penalty. In order for the carrier to comply, the exporter must also comply, hence the letter. This is clearly a business decision on the part of the carrier. Therefore, carriers are reminding all clients of their responsibilities. The Outbound Informed/Enforced Compliance Program was initiated by the Customs Outbound Planning Council (Board of Directors) as a result of vessel carriers complaining about penalties they were receiving for untimely filing of Shipper's Export Declarations (SED) and Bills of Lading (BOL). Vessel carriers admitted that illegal "roll over" was a common industry practice. "Rollover" also means that the carriers are falsifying their BOL's and the SED's received by erasing the name of the ship and the date of exportation and replacing them with false data. The findings of a Customs audit chartered by the Planning Council to look into the extent of this practice indicated that 63% of the BOL's and 70% of the SED's were compliant with respect to the timely filing of these documents. Smaller ports were more compliant than larger ports. The Informed/Enforced Compliance Program focuses on bringing the "paper world" back on track.

REG FAQ #0021