CHINA'S NEW RULE ON ADVANCE MANIFEST

(DEGREE NO.172 OF GENERAL ADMINISTRATION OF CUSTOMS)

Chinese Customs will begin enforcing a new rule on advance manifesting (Degree No. 172), effective 1 st January 2009. This will require significant changes to the shipment processes for all cargo on vessels that load at foreign ports and are destined or transshipped at ports in China , as well as cargo loading out of ports in China . The rule will have an impact on many of our customers, as it requires that both shippers and carriers adopt disciplines and processes at both foreign ports and ports in China to ensure timely manifesting of cargo. The rule however does not affect Hong Kong , which as a Special Administration Region of China, is outside the jurisdiction of this rule.

What does this new rule mean?

• For cargo destined or transshipped at ports in China , the inbound manifest for cargo must be electronically submitted to Chinese Customs 24 hours prior to loading at foreign ports.

• For cargo loaded out of ports in China , a pre-manifest has to be electronically submitted to Chinese Customs 24 hours prior to loading and a final manifest submitted 30 minutes before loading.

In order to meet the requirements of the new rule, shippers or their partner forwarders will need to review supply chain processes in their sourcing locations and ensure that manifest information is provided to their Ocean Carriers much earlier in the shipment process