A Cargo Declaration is a mandatory submission of data to customs authorities that functions as the digital announcement of what is entering or leaving a country. In the post-9/11 world, security is paramount, and the Cargo Declaration is the primary tool governments use to screen shipments for risks before they even arrive.
For US exports and imports, this process is largely handled through the Automated Commercial Environment (ACE), the central data portal for U.S. Customs and Border Protection (CBP).
24-Hour Rule and ISF (10+2)
For machinery entering the US, the Cargo Declaration is tied strictly to time limits. The Importer Security Filing (ISF), often called 10+2, must be filed at least 24 hours before the cargo is loaded onto the vessel at the foreign port. This is not 24 hours before arrival; it is 24 hours before it leaves the origin.
If you are importing a fleet of wheel loaders from Japan, and you file this declaration late, you face a potential $5,000 fine per violation. This declaration includes critical data points like the manufacturer (or supplier), the buyer, the ship-to party, and the commodity HTS-6 code.
Accuracy is Everything
In the machinery trade, vague declarations are dangerous. Declaring a shipment simply as “Machinery” is a red flag for customs inspectors. The declaration needs specific descriptions.
- Bad declaration: Construction Equipment
- Good declaration: “Self-propelled track-laying excavator, used.”
If the physical cargo does not match the declaration, for example, if you declared a bucket but the container also contains a hidden hydraulic hammer, Customs can seize the undeclared items. This is common with parts containers, where shippers throw in extra filters or tools without listing them. Every item inside the container must be accounted for in the declaration data.
Role of the VIN/PIN
For vehicles and heavy equipment, the Cargo Declaration must often include the Vehicle Identification Number (VIN) or Product Identification Number (PIN). This allows authorities to check against databases for stolen equipment.
The National Insurance Crime Bureau (NICB) works closely with ports to ensure that the $300,000 loader being exported wasn’t stolen from a job site in Texas last week. If the VIN on the iron doesn’t match the VIN on the declaration, the cargo will be placed on hold immediately.
ACE Export Manifest
For exports leaving the US, the rules are tightening. Shippers and carriers are moving toward more rigorous electronic export manifests. This ensures that the US Census Bureau captures accurate trade statistics and that sensitive technology (which might require an export license) isn’t slipping out of the country under a false description.