EU Customs Advanced Manifest Rule Update

November 2010

• What is the EU Customs Advanced Manifest Rule?

• What is an Entry Summary Declaration (ENS) and when is it required?

• ENS basic principles

• ENS non-compliance

• What are the elements of an ENS?

• When does Safmarine need to provide the ENS to the EU Customs?

• When do I need to provide the ENS related information to Safmarine?

• How is an ENS filed? (a visual illustration)

• Can the ENS related information be amended?

• What is an Exit Summary Declaration (EXS)?

• How will Safmarine help you?

• Contact information

Contents

2

What is the EU Customs Advanced Manifest Rule?

• The EU Customs Advanced Manifest Rule will be enforced from the 1 January 2011 and apply to all 27 European Union (EU) member states .Switzerland and Norway will adopt rules. The 27 members states also include the overseas areas such as Canary Islands, French Guyane, Madeira, Martinique, Reunion, Guadeloupe and Acores ( see map)

• Primary purpose: ensure security risk assessment is performed before goods arrive in the EU

• The components of the Manifest are:

– Entry Summary Declaration (ENS) – these are the customer shipping instructions which must be submitted by the carrier for all the cargo arriving in the EU from outside

– Exit Summary Declaration (EXS) – this must be submitted to cover cargo that is leaving the EU (EXS roll-out date to be confirmed)

3

What is Entry Summary Declaration (ENS)?When is it required?

• Entry Summary Declaration or ENS are electronic messages that need to be sent to the EU Customs prior to your cargo entering an European Union (EU) port

• To ensure that cargo is permitted to load on vessels bound for the EU member states as well as preventing delays at the EU port of arrival, it is critical that complete and accurate shipping instructions are submitted within the deadlines set by the local Safmarine offices. This will allow for an accurate and timely ENS submission with customs at the first port of entry into the EU

• The ENS is required for all goods that are scheduled to ARRIVE in the EU:

– All EU Imports

– Transhipments For EU and non-EU destinations (e.g. Cargo discharged at Algeciras and onboard another vessel to Tunis – destination can be EU or non EU)

– Transit CargoWith final discharge port in the EU but delivery outside of the EU (e.g. Finland trucking to Russia)

– Freight Remaining on Board (FROB)(e.g. cargo loaded in USA, is on board when the vessel calls Spain and will discharge in Morocco)

5

ENS basic principles

• Who is responsible for submitting the ENS?

We as carrier* are responsible for the timely electronic transmission the ENS with the EU Customs

• Can a third-party file an ENS?

Yes, third-party parties may file an ENS, however only with written notification to Safmarine for our consent and knowledge.

• Where shall the ENS be submitted?

We will submit the ENS to the Customs office of first port of entry into the EU

* In the case of Vessel Sharing Agreement or similar ongoing contractural agreement, the bill of lading (B/L) issuing carrier is responsible for filing the ENS

6

ENS non-compliance

What happens if there is a non-compliance of ENS or the ENS is missing?

• The consequence of non-compliance (or a missing ENS submission) would be the halting of loading or unloading and the consequent disruption of cargo flows and supply chains

• Customs will electronically alert Safmarine should there be any risk identified with cargo scheduled to arrive in the EU

• Risk types and their consequence:

– Risk type A: Do not load

– Risk type B: Hold at entry port

– Risk type C: Hold at discharge port

7

What are the elements of the Shipping Instruction for ENS that you must submit to the Carrier?

• Consignor (EORI number if available) - Shipper

• Consignee (EORI number if available)

• Notify Party (mandatory for “To Order” B/L)

• Acceptable goods description

• Code for the type of packages

• Number of packages

• Shipping marks for packaged goods (not necessary for containerised goods)

• Container number(s)

• Seal number(s)

• The first 6 (six) digit HS code (Safmarine would like to insist on receiving this code in order

to ensure smooth handling by local customs and to avoid possible language

misinterpretations)

• Gross weight (kg)

• UN code for dangerous goods

• Transport charges method of payment code ( where available)

The ENS must include the following data elements or risk rejection by the EU customs authorities:

8

What are the additional ENS elements that Safmarine -the carrier - submit to EU Customs on your behalf?

• Number of items

• Unique consignment reference number – bill of lading number

• Place of loading

• Place of unloading

• Goods item number

• Declaration date

• Authorisation/Signature

• Person submitting the summary declaration

• Carrier

• Conveyance reference number – vessel IMO code

• Identity and nationality of active means of transport crossing the border – vessel, voyage, flag

• First place of arrival code

• Date and time of arrival

• Countries of routing codes – cargo, not vessel routing

9

When does Safmarine need to provide the ENS to EU Customs?

Safmarine needs to provide the ENS to the EU Customs for:

• Containerised cargo, deep sea – 24 hours prior vessel loading at the overseas load port on the vessel that will enter the EU

• Containerised cargo, short sea* – 2 hours prior arrival in the EU

• Non-containerised cargo – 4 hours prior arrival in the EU

* Short sea shipments are defined as being either one of the following :

– i. Movements between - Greenland, Faroe Islands, Ceuta, Melilla, Norway, Iceland, ports on the Baltic Sea, ports on the North Sea, ports on the Black Sea or ports on the Mediterranean AND The Community except French overseas department, Azores, Madeira and Canary Islands

– ii. Movements with a duration of less than 24 hours, between -A territory outside the customs territory of the Community AND The French overseas departments, Azores, Madeira and Canary Islands"

10

When do I need to provide the shipping instructions for ENS to Safmarine?

Customers are required to send us their shipping instruction at least 48 hours prior to CY cut-off at the loading port outbound to the EU (or as stipulated by local country office)

Note: if after business hours please increase hours to submit during business hours

Example:

• CY Cut-off at load port X, outside EU: Sept 29 at 21:00 h local time

• Subtract 48 hours: Sept 27, 21:00 h

• As it is after business hours (close at 17:00 local time) please submit before 17:00 Sept 27

11

Exporter

ENSSafmarine submits ENS electronically for verification before 24hrs of cargo being loaded

Customs Office

ENS is verified as OK.

Sends notificationwith Movement Reference Number

Submits accurate Shipping Instructions 48 hours prior to CY cut-off (or as stipulated by the local office)

First port of entry in the EU receives the ENS for verification

How an ENS is filed (a visual illustration)

Safmarine

12

Amendments to your filings

• Safmarine customers are requested to file amendments in the same manner as as you submit your bill of lading

• The person filing the ENS, the representative and the customs office of first entry should not be amended

• The amended ENS does not initiate a new time limit, it is still considered from when it was first submitted

• The amendment triggers, a new risk analysis with regards to the amended particulars

• If an amendment is made shortly prior arrival of goods this could potentially delay the release of the goods, since the customs authorities need additional time for their risk analysis

13

• Who can submit the amendment?

Amendments may be submitted by the same entity who submitted the original ENS or its representative. However, amendments can only be submitted to the customs office of first entry

When is an amendment request not acceptable?

The amendment request cannot be accepted when the person submitting the original ENS has been informed that the office of first entry intend to examine the goods or the custom authorities have established that the particulars in question are incorrect or the office of first entry, upon presentation of the goods, has allowed their removal

All containers on the same Bill of Lading will be affected not just the ones rejected by customs.

Amendments to your filings (Continued)

14

What is an Exit Summary Declaration (EXS)?

• An EXS is required for goods to be brought out of the EU without a customs or re-export declaration

• is responsible for submitting the EXS to the customs office at the load port of the vessel that will carry the cargo out of the EU

• Deadlines and data elements are similar to those for ENS

• EXS exemptions are highly complex

• The EXS roll-out date will be confirmed at a later time and accordingly more information will be made available to our customers

15

European Union (EU)

Member countries:• Austria• Belgium• Bulgaria• Cyprus• Czech Republi

c• Denmark• Estonia• Finland• France• Germany• Greece• Hungary• Ireland• Italy

• Latvia• Lithuania• Luxembourg• Malta• Netherlands• Poland• Portugal• Romania• Slovakia• Slovenia• Spain• Sweden • United

Kingdom

16

Please note Norway, Switzerland as well as French Guyane, Canary Islands, Madeira, Martinique, Reunion, Guadeloupe and Acores will also apply the same rule.

How will Safmarine support you?

Safmarine is committed to assist you throughout the implementation of this rule with minimal impact to your business. We are preparing for the implementation by ensuring that relevant processes are in place. Preparations include:

– Working closely with EU customs – We have extensive experience working with EU customs and are receiving accurate and timely responses regarding the implementation

– Test runs and pilots - We have already initiated real-time test runs and pilots in different EU countries. This simulates the conditions during actual implementation of the rule; therefore any issues that may arise can be resolved prior to the official “go live” date

– Safmarine Training – We will ensure our employees have the necessary knowledge in order to support you throughout the implementation process

We will continue to send updates regarding developments and other relevant information. Should you have any further questions regarding this rule, please visit our EU Customs Advanced Manifest Rule page on www.safmarine.com or contact your local Safmarine office.

17

For more information on the EU Customs Advanced Manifest Rule and ENS, please contact your local Safmarine representative.

Further information can also be found on:

– European Commission website

– EU Member states

– HS Codes

– ENS FAQ

Appendix

18

Cherry YangE-Business Live-Help Team

ApproachableUnderstanding

100% Safmariner

We believe the difference in our website is the human touch

19