4410-019 Procedures for Processing Manifest Penalty Violations for Vessels

Published CBP guidance; operative status and applicability must be assessed from the retained publisher edition.

1
PROCEDURES FOR PROCESSING MANIFEST PENALTY
VIOLATIONS FOR VESSELS
1.PURPOSE.
To provide guidance to field personnel on appropriate procedures for completing
manifest penalty violations and the information required when violations are discovered.
Mitigation guidelines are provided in the Fines, Penalties, and Forfeiture (FP&F)
Handbook (HB 4400-01).
2.POLICY.
2.1There has been a lack of uniformity in manifest penalty actions taken against
carriers and other culpable parties for violations of manifest requirements discovered by
the U.S. Customs Service. This lack of uniformity is due to failure to provide proper
guidelines concerning information that is required when a manifest penalty is being
processed.
2.2It is essential that field officers who are in a position to enforce these
requirements be knowledgeable in the appropriate penalty action, which should be
initiated in the automated SEACATS system. The appropriate statute should be cited
for similar violations in all ports.
3.AUTHORITY/REFERENCE.
Please reference CD 099-4410-016 issued April 20, 1992, when applying this directive.
4.RESPONSIBILITIES.
4.1The Directors, Field Operations, Custom Management Centers are to ensure
implementation of this directive.
4.2Port Directors will ensure local procedures accommodate these guidelines.
4.3Port Directors will distribute this information through routine notification practices.
CUSTOMS DIRECTIVE NO. 4410-019
DATE: August 2, 2000
ORIGINATING OFFICE: FO:TP
SUPERSEDES:
REVIEW DATE: August 2002

2
4.4It is the responsibility of each Customs officer initiating a liquidated damage or
penalty case to obtain the documents necessary to establish a violation, promptly
initiate the case in the automated SEACATS system citing the appropriate statute,
regulation or both, and supply any necessary bond information.
4.5FP&F officers are responsible for quality control over cases initiated by field line
officers and case mitigation of all penalties. Port directors are ultimately responsible for
all enforcement actions within their area. Port directors may make available for public
dissemination the material contained in this directive.
5.PROCEDURES.
5.1The following procedures outline information that must be input on all manifest
and cargo delivery penalty violations. Please refer to the attachment for a list of the
most frequently referenced discrepancies or irregularities involving manifests.
5.2The SEACATS system will automatically input a pre-determined statement when
the case initiator inputs the violation. This pre-determined statement is known as a
canned remark. The Office of Regulations and Rulings created this pre-determined
statement and it is included on the CF-5955A form when a manifest penalty has been
issued.
5.3In addition to the canned remark statement, the following identifiable information
will be included in the narrative of the CF-5955A. This is to ensure that the carriers can
view the CF-5955A and immediately cross-reference their files without having to
conduct research or contact the U.S. Customs Service for further information.
This identifiable information consists of:
Vessel name
Voyage number
Date of arrival to the United States
Time of arrival
Specific bill(s) of lading which the penalty is being assessed against
Brief description of the issue
Description of cargo
In-bond number (if applicable)
Dollar amount of the penalty in the narrative
Port of discharge

3
5.4Documents should be forwarded to the Fines, Penalties, and Forfeitures office
within 3 working days of case initiation.
5.5The mitigation guidelines as defined in the FP&F Handbook shall be applied to
all cases established under this directive.
/signed/
Bonni G. Tischler
Assistant Commissioner
Office of Field Operations
Attachment

4
Attachment
MANIFEST AND CARGO DELIVERY PENALTIES
I. PRESENTATION OF MANIFESTS
A.Carrier does not have manifest in its possession, the master of a vessel
does not produce the manifest to an officer demanding the same or the carrier
does not produce it upon demand by post-audit team.
REQUIRED ELEMENTS:
The penalty violation must include the identifiable information listed
in Section 5.3.
B.Carrier does not deliver manifest to Customs immediately upon arrival.
REQUIRED ELEMENTS:
The penalty violation must include the identifiable information listed
in Section 5.3.
II. INACCURACIES OR DISCREPANCIES IN MANIFESTS
The following violations involve manifests that inadequately describe merchandise ,
including merchandise that is not found (shortage) or fail to manifest merchandise
entirely (overage).
A.Manifest does not contain sufficient description of merchandise included
thereon as required by 19 U.S.C. 1431. The manifest should contain sufficient
detail to enable Customs to verify the type and number of packages. Carriers are
obliged to manifest the quantity of packages in their smallest external packaging
units; i.e., the manifest description should be the equivalent of that on any
pertinent bills of lading or packing lists. Those carriers that accept unit-loaded
cargo may use the provisions of 19 CFR 4.7a and indicate Shipper’s Load and
Count (SLAC) next to the quantity on the manifest. When discrepancies are
discovered for SLAC quantities, the carrier should be warned and permitted to
rectify this with the shipper.

5
REQUIRED ELEMENTS:
The penalty violation must include the dates when Customs
counseled the carrier as to the correct manner of description of the
merchandise. The penalty information must also contain the
applicable identifiable information listed in Section 5.3.
B.Manifest does not contain shipper/consignee names, or identifies the
shipper as “various”.
REQUIRED ELEMENTS:
Must include the dates when Customs informed the carrier of the
problem and counseled as to the appropriate designation of
shippers or consignee names that should appear on the manifest.
The penalty information must also contain the applicable
identifiable information listed in Section 5.3.
C.Manifest quantity is greater than entered or discovered quantity, i.e.,
manifested but not found (shortage).
REQUIRED ELEMENTS:
The penalty violation must include the identifiable information listed
in Section 5.3.
D.Manifest quantity is less than entered or discovered quantity (overage).
REQUIRED ELEMENTS:
The penalty violation must include the identifiable information listed
in Section 5.3.
E.Merchandise is manifested for delivery at Port B, but is off loaded at Port
A, before conveyance arrival at Port B (vessels only). Special Note: If this
violation is discovered only because the carrier informs Customs of the off
loading, then the penalties may be waived at the discretion of the Port Director.
REQUIRED ELEMENTS:
The penalty violation must include the identifiable information listed
in Section 5.3.
F.Merchandise is manifested for delivery at Port A, but is not off loaded at

6
Port A, and is overcarried to Port B (vessels only). Special Note: If this violation
is discovered only because the carrier informs Customs of the off loading, then
the penalties may be waived at the discretion of the Port Director.
REQUIRED ELEMENTS:
The penalty violation must include the identifiable information listed
in Section 5.3.
III.CARGO DELIVERY VIOLATIONS
This section describes cargo misdelivery by bonded carriers, or other carriers, and
describes the obligations of container freight stations and centralized examination
stations.
A.Failure to deliver merchandise to a Centralized Examination Station or
other location designated by Customs.
REQUIRED ELEMENTS:
The penalty violation must include the identifiable information listed
in Section 5.3.
B.Merchandise is delivered with seals intact, but upon examination, either
an overage or shortage is discovered, and without a proper manifest discrepancy
report being filed or on file.
REQUIRED ELEMENTS:
The penalty violation must include the identifiable information listed
in Section 5.3.
C.Unauthorized delivery of merchandise by carrier.
REQUIRED ELEMENTS:
The penalty violation must include the identifiable information listed
in Section 5.3.
D.Theft of merchandise from Customs custody.
REQUIRED ELEMENTS:
The penalty violation must include the identifiable information listed
in Section 5.3.

7
IV.MANIFEST DISCREPANCY REPORT
A.Carrier fails to file a manifest discrepancy report or to respond to a
manifest discrepancy report issued by Customs within the time period provided
for by regulation.
REQUIRED ELEMENTS:
The penalty violation must include the identifiable information listed
in Section 5.3.
B.Carrier does not maintain adequate records at the time of audit review.
REQUIRED ELEMENTS:
The penalty violation must include the identifiable information listed
in Section 5.3.