Tuesday, September 20, 2011

It’s Exam Time – Cargo Exam Time That Is…

CES is a privately operated facility at which imported merchandise - identified by Customs for physical examination - is made available to Customs inspectors for that purpose.


I recently attended a program put on by the Long Island Import Export Association that had to do with Central Exam Sites (CES) and US Customs inspections.

The speakers, which included those from US Customs as well as those from local CES facilities, gave an overview of the CES exam process here at our local New York/Newark area ports. Non-intrusive inspections (NII – think VACIS* Exam), are currently done at the marine terminal, e.g., on-site at APM, PNCT, Maher, Red Hook, Global and NYCT terminals.

For intrusive exams however, Customs has consolidated its ports for examination by type of exam so that there are 2 ports each for Enforcement (Salson and East Coast) and Commercial (H&M and Railhead) related activity, 2 for Agricultural related activity, 1 for Outbound Cargo related activity, and an additional port at Perth Amboy in New Jersey.

Customs’ goal is to have all exams performed in as few as possible locations. It claims that the advantage of this is that it will improve the efficiency of the exam process. In addition, it intends to make CES facilities designated Automated Manifest System (AMS) service centers. In so doing, it would allow for the real-time release of cargo, essentially providing for the “electronic” movement of cargo so that it can be released immediately after the conclusion of the exam without the lag in time for the inspecting officer to return to Customs offices to input the release in the system.

Starting January 1, 2012, Customs anticipates that AMS capabilities will be up and running at CES facilities. Therefore, contacting the customer service line at the CES itself to check on the status of the exam is recommended for the quickest possible update about the cargo.

CES notifies Customs ahead of time about the location and exam-preparedness of cargoes within its facility, and Customs uses this data to determine what manpower will be needed for the inspection(s).

From the CES perspective, their goal, with respect to Customs, is to arrange the merchandise for the most expeditious exam possible. This means that where a “tailgate” exam is involved, the CES has the truck open at the back and ready for inspection when Customs is available to conduct the exam. Where a “full strip” exam is necessitated, the CES will unload and stage the goods for Customs to examine it.

As for the importer, CES facilities have a goal for the exam to be as expeditious as possible so that the cargo can be released for entry.

Where an agricultural or contraband exam is being conducted, Customs notifies the CES directly, who arranges to pick up the cargo from the terminal to its facility. The CES custodial bond covers cargo moving from the terminal to the CES.

For a compliance exam (i.e., random invoice/packing list check), the broker is contacted by Customs about the commercial exam and it is the broker that contacts the CES. Once notification has been received about the exam, CES has 24-48 hours to pick up the container.

Good news for CTPAT members – members get “front of the line” privileges in the case of CES exams, meaning their containers are examined first.

Why was the CES program developed in the first place?

Well, back in the early 1990s, there was a significant increase in the volume of merchandise imported into the United States stimulating an increase in the number of Container Freight Stations (CFS), bonded warehouses, truck and rail terminals, and other facilities which receive and hold imported cargo for purposes of examination and clearance by Customs. As a result of this increase, some examination facilities had become antiquated, unable to support the quantity of exams, or technological advances in equipment available for Customs examinations.

Often times, multiple facilities were not in close proximity to each other within a given port of entry, requiring Customs inspectors to spend a greater proportion of their time traveling from one location to another in order to perform cargo examinations necessary to ensure compliance with the law.

These factors had a negative effect on Customs productivity, complicated Customs efforts to properly allocate personnel to meet its workload, and had a corresponding negative effect on Customs ability to render efficient clearance and related services to the importing community.

For more information on the history of CES, click here.

* VACIS Exam: Vehicle and Cargo Inspection Systems (VACIS) is a gamma ray imaging system, that uses radiographic images to help Customs inspectors examine the contents of trucks, containers, cargo, and passenger vehicles for hidden compartments containing contraband. The system was developed as a joint project between the U.S. Customs Service, the Office of National Drug Control Policy, and the Department of Defense.

Questions/comments? Post below or email me at clark.deanna@gmail.com



2 comments:

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  2. Cargo insurance is certainly one of many important considerations. Thanks for your comment Joe!

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