The US government is considering stricter compliance for air and road borne cargo coming to its soil to stave of potential threat of terrorist attack.
Disclosing this, James L Dozier, Customs Attaché, US Embassy of New Delhi, said US Customs Service was working on the issue and new rules could be expected in future. He could not put exact timeframe on when these laws regarding air and road cargo would be enforced.
"All I can say that these issues are being looked at but we at Customs Attaché are yet to receive any intimation on this," Dozier said.
The new road and rail norms would affect imports coming in from Mexico and Canada including third country cargo from Indian offloaded at Mexican and Canadian ports.
The impending law on air borne cargo would also have bearing for Indian export since most of the gems and jewellery exported to the US are carried by air.
India exported $ 2666.08 mn worth of gems and jewellery to US in 2001-2. Perishable items, food, vegetables, flowers and leather goods, tools, small engineering items are also exported through air.
This development comes close on the heels of new '24 hour vessels manifest rule' for marine cargo, which has come into effect February 2, 2003.
Under this new system, exporters are asked to file a cargo declaration as early as possible, but no later than 24 hours in advance of a vessel's berthing.
Failure to compliance with this norm may entail penalties, liquidated damages, denial of loading at foreign port or permission for cargo to unload on arrival in the US.
Dozier hinted that in case of air, rail and road cargo the time limit could be between 8-12 hours. "It is yet to be decided," he said.
Marine cargo was first brought under the purview as half of the incoming cargo (in terms of value) comes by ship. But there is need to protect land and air ports. Land is important as the US shares borders with Mexico and Canada.
Some trade sources said the new '24 hours vessel manifest rule' as another non-tariff barriers.
However, Dozier tried to allay the fears saying the same law applies for all. Dozier tried to explain it would actually expedite the movement of cargo and it was not meant to harass exporters.
With this new rule for marine cargo, exporters have to furnish details of the cargo, on electronic platform, to shipping lines.
Exporters informed shipping lines would be charging $ 25 for each bill of lading (BL). Prakash Thaker, chairman (eastern region) of Federation of Indian Exporters, which organised the meet, agreed with Dozier saying Indian exporter would have no problem complying with this law.
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