(July 14, 2006)

As many of you know, US Customs and Border Protection (CBP) started using the ACE system in the Port of Champlain, NY on June 23, 2006. According to CBP notices, 30 days from ACE deployment, CBP will begin what they call Phase IV enforcement, which is described on their website at the following link:

If PAPS (or other advanced information) has not been keyed one hour (1/2 hour for FAST approved) prior to arrival at the port of entry, your truck may be turned around at the primary booth. The driver will not be allowed to wait or go to his broker for help unless the shipment was processed through ACE (Truck eManifest).

A new PAPS number may be required, and an additional hour wait time on the Canadian side of the border may be required.

Carriers are advised to:

• Work with the shipper and Deringer to ensure the information regarding the arrival of the cargo is transmitted to Deringer well in advance of arrival.
• Provide a fax cover sheet with the estimated date and time of arrival and a contact person if we are unable to complete the file.

• Review tracking information on Deringer's website at www.anderinger.com prior to arrival at the border to ensure the shipment has been processed.

While ACE Truck eManifest is not mandatory yet, it is the position of Customs and Border Protection that carriers can now begin to use ACE Truck eManifest in ports like Champlain, where ACE has been deployed. As a result, CBP will allow ACE Truck eManifest participants to enter the Customs compound area and work with the broker or others to perfect their shipments should there be any problem with the shipment. In short, ACE participants will be afforded more privileges than those who are not participating in ACE. Keep in mind that not only will a manifest need to be filed in advance, but the PAPS information must be also be transmitted in advance for the truck to be released into the United States.