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IMPORT CARGO REPORTING3 - for journeys of less than two hours these reports must be lodged inaccordance with shorter periods as prescribed in the regulations4 – Parties related to the cargo are: the airline operator the airlines principal agent the current or intended custodian of the cargo (CTO or depot) the cargo reporter a licensed broker (for the purpose of transhipment only)As cargo reports are lodged they are automatically ‘linked’ to related reportsalready lodged in the ICS. The fields used to link related reports include: Flight Number & Date of Arrival Port and date/time of last overseas departure Port of arrival Party responsible for first receiving any cargo dischargedA diagram showing the linking fields between air cargo reporting documents is atannex B to this module. A diagram showing the linking fields between air cargoreporting documents and UBMR are at annex C to this module.CASCADE REPORTINGCascade reporting refers to the process by which cargo reporters notify Customsof other cargo reporters on whose behalf they have carried cargo, or to whom theyhave on-sold cargo space. Cascade reporting applies in both the air and sea cargoenvironments. The ICS facilitates this reporting by means of a ‘freight forwarderindicator’ on the relevant cargo reports.The carrier is required, as the first cargo reporter, to report to Customs the fulldetail of cargo for which they are directly responsible. They are also required tonotify Customs of any cargo carried on behalf of another cargo reporter. The‘freight forwarder indicator’ is used for this purpose. Cargo described onsubsequent (lower level) reports will not receive clear status until it has been fullyreported. This requires full reporting of all details required for Customs and AQISrisk assessment, including ultimate consignee.Second, and subsequent, cargo reporters have a similar reporting obligation. Theyare required to report to Customs the full detail of the cargo for which they areresponsible. They are also required to notify Customs that lower levels of reportingare expected. The ‘freight forwarder indicator’ is used for this purpose.Diagram three, below, demonstrates a simplified cascade reporting flow as itapplies in the sea cargo environment. In this example the carrier has reported twoocean bills of lading (OBL) - MEL0001 and MEL0002. The carrier has indicatedthat they are responsible for the goods on OBL MEL0001 and have reported thefull details for consignments on that bill. The carrier has, by use of the freightforwarder indicator, indicated that OBL MEL0002 is subject to further reporting byanother cargo reporter. The carrier has not provided full details for theIMPORT CARGO REPORTING OVERVIEW MANUAL – V1.0 27/08/20071.11

IMPORT CARGO REPORTINGconsignments on OBL MEL0002. The goods on OBL MEL0002 will not receive aclear status until they are fully reported at a lower level.Freight forwarder 1 has lodged two cargo reports for the goods on OBL MEL0002.They have notified Customs that this OBL covers goods on two house bills oflading (HBL) - # 100100 and # 200200. Freight forwarder 1 has, by use of thefreight forwarder indicator, indicated that HBL # 100100 is subject to furtherreporting by another cargo reporter. The goods on HBL # 100100 will not receive aclear status until they are fully reported at a lower level.Freight forwarder 2 has also lodged a cargo report for goods on OBL MEL0002.They have notified Customs that this OBL covers consignments on two of theirhouse bills - # 07734 and # 318. Freight forwarder 2 has not indicated further linksto lower level bills, and therefore must report all details for the consignments onthese bills.Links between consignments in the ICS are based on the highest-level document.Although they may choose to do so, freight forwarder 2 is not required to indicatethe link between their HBLs and those of freight forwarder 1.Cargo reports may be lodged as soon as the reporter has the required informationavailable. Cargo reports must in any case be lodged in accordance with legislativerequirements. Early reporting by all parties will ensure that status is returned to allreporters at the earliest opportunity. Late or delayed reporting of high-level reportswill cause delays in the return of delivery and /or underbond status to reporterslower in the chain.Diagram Three – Simplified Cascade Reporting FlowUNDERBOND MOVEMENT REQUESTS (UBMR)Once approved, an underbond movement request (UBMR) allows for themovement to a licensed Customs depot or warehouse of cargo that does not yethave an authority to deal and may not be released for home consumption or1.12IMPORT CARGO REPORTING OVERVIEW MANUAL – V1.0 27/08/2007

IMPORT CARGO REPORTINGwarehousing. Section 71E(1) of the Act, provides for certain parties to apply toCustoms for permission to move goods under Customs control to another place.A UBMR may be lodged with Customs electronically any time after the associatedcargo report has been received. An integrated cargo report (ICR) allows for theconcurrent lodgement of a cargo report and a UBMR.The conditions that are applied to the approval of an underbond movement requestinclude: the associated cargo report has been lodged; the screening period for the cargo report has expired; the correct ‘Request Reason’ has been used for certain types of cargo.If one or more of these conditions is not met the UBMR will not be approved.Unapproved UBMRs may be stored in the ICS until they meet all the conditions forapproval.STATES AND STATUSOnce a UBMR is validated and processed, its state (and that of related UBMRs)will be reflected in the status of the cargo report. Valid UBMR states are: Stored - the UBMR is stored awaiting a request to move the cargo to theoriginating destination as quoted in the request (see ‘stacking’ below) Chained - the UBMR is linked to a request to move the cargo to the originatingdestination as quoted in the request. Approved - underbond movement of the goods is allowed; this may be subjectto certain conditions Acquitted - the goods have been reported as having arrived at the destinationestablishment Withdrawn - the UBMR has been withdrawn by the requestor.The ‘condition’ of a UBMR is established via existing information from the cargoreport or as a result of risk assessment of the UBMR. The ‘condition’ of a UBMRcan only be checked/viewed in the ICS.CHAINING AND STACKINGThe ICS will allow multiple UBMRs to be reported and approved concurrently for acargo shipment. This means that an UBMR can be lodged at any time after therelated cargo report has been lodged, irrespective of where the UBMR is in thesequence of underbond moves. Different parties may lodge UBMRs for differentstages in the movement of the same cargo. The ICS uses a ‘chaining’ process toallocate a sequential number to each underbond cargo movement. This ensuresthe cargo can be tracked. UBMRs may be lodged in any order within a ‘chain’.UBMRs may also be ‘stacked’ in the ICS. ‘Stacking’ occurs where some of theUBMRs in a ‘chain’ are not yet lodged in the ICS.Diagram Four shows a simplified example of stacking. In this example goods areunloaded at a CTO. They are then to be moved to depot A. This movement mayIMPORT CARGO REPORTING OVERVIEW MANUAL – V1.0 27/08/20071.13

IMPORT CARGO REPORTINGbe approved on the lodgement of a separate cargo report and an UBMR or thelodgement of an integrated cargo report.From depot A the goods are further planned to move to depot B and then depots Cand D. The diagram shows that the UBMR for the movement from Depot A toDepot B has not yet been lodged.Depot B has lodged UBMRs to move the goods to depot C and D. The ICS willaccept these UBMRs and ‘stack’ them awaiting the earlier link in the chain – theUBMR from depot A to depot B. The UBMR for the moves from depot B to willhave a status of ‘Stored’. Once the UBMR for the move from depot A is lodged allUBMR in the sequence will become ‘Chained’.Diagram Four – Simplified example of UBMR stacking.INTEGRATED CARGO REPORT (ICR)The ICS allows cargo reporters to submit a cargo report simultaneously with anunderbond movement request. This facility is known as the integrated cargoreport.An ICR may only be lodged electronically using electronic data interchange (EDI)messaging. There is no functionality in Customs Interactive for this document.An ICR for sea cargo must be reported not less than 48 hours prior to theestimated time of arrival (ETA) at the first port in Australia.An ICR for air cargo must be reported not less than two hours prior to the ETA ofthe aircraft at the first airport in Australia.1.14IMPORT CARGO REPORTING OVERVIEW MANUAL – V1.0 27/08/2007

IMPORT CARGO REPORTINGOther timeframes for reporting an ICR may be specified in the CustomsRegulations.The ICR contains the same information as would otherwise be included in thecargo report and an initial UBMR.The ICS processes the cargo report component of the ICR first. If the cargo reportsection fails validation, the entire ICR (including the UBMR) will be rejected withoutfurther processing.OFFENCES IN RESPECT OF CARGO REPORTINGThe Customs Act contains a range of both strict liability and fault-based offencesthat may apply where a person fails to meet reporting requirements. For a strictliability offence it is not necessary for Customs to prove that it was committedintentionally. Some of the strict liability offences are subject to the InfringementNotice Scheme (INS).Further information on cargo reporting in the ICS is contained in the modules of thestep process manual. Each of these modules addresses the lodgement andprocesses for the individual documents required to correctly report cargo toCustoms.Further information about the Customs Regulatory Philosophy can be found athttp://www.customs.gov.auFURTHER INFORMATION ABOUT THE CUSTOMSINFRINGEMENT NOTICE SCHEME CAN BE FOUND ATHTTP://WWW.CUSTOMS.GOV.AUIMPORT CARGO REPORTING OVERVIEW MANUAL – V1.0 27/08/20071.15

IMPORT CARGO REPORTINGIMPORT DOCUMENT STATUSAll cargo reports are assigned a ‘consolidated status’ within the ICS. The statusrepresents an evaluation of information as it applies to all documents in the importprocess such as: the impending arrival report higher- and lower-level ‘cascade’ cargo reports (if any) underbond movement requests (if any) import clearance documents (e.g., import declaration) (if any).Consolidated status indicates whether: all relevant documents have been lodged linking fields such as flight number, voyage number, Master/Ocean billnumbers have been correctly reported and linking has occurred all applicable conditions such as deconsolidation have been met Customs and AQIS impediments exist.The status process determines whether a Cargo Status Advice (CSA) messageshould be transmitted. If a CSA is required then the ICS will send the report to theappropriate destination(s) for example the release premises and the owner/broker.The cargo status advice is first sent to relevant industry parties when:a.the date and time of departure from last overseas port (as reported by theimpending arrival report) has passed, andb.the screening period for the cargo report has expired.A CSA will be re-sent if amendments to documents produce a change in theconsolidated cargo status.Screening PeriodsThe screening period begins when the cargo report is received in the ICS. Theinitial screening period is 24 hours for sea cargo, and two hours for air cargo. If acargo report is amended then a re-screening period of two hours is applied. There-screening period of two hours applies to both air and sea cargo, andcommences immediately the amended document is lodged.If the amendment was made after the expiry of the initial screening period then there-screening period will have the effect of reverting status for all documentsassociated with the amended cargo report to HELD. This will apply for a two-hourperiod commencing on lodgement of the amendment.If the amendment was made before the expiry of the initial screening period andthe duration of the re-screening period is contained wholly within the remainingperiod of the original screening period (this can only happen in sea cargo) then there-screening period will have no effect on the time at which status is transmitted.For example, a sea cargo report is amended six hours after its original lodgement;1.16IMPORT CARGO REPORTING OVERVIEW MANUAL – V1.0 27/08/2007

IMPORT CARGO REPORTINGthe duration of original screening period remaining is 18 hours. As the re-screeningperiod of two hours is fully contained within the original screening period this willhave no effect on the transmission of status.If the amendment was made before the expiry of the initial screening period andthe duration of the re-screening period is not contained wholly within the remainingperiod of the original screening period (this can happen in air or sea cargo) thenthe re-screening period will have the effect of delaying the transmission of statusby the duration of the re-screening period not included in the original screeningperiod. For example an air cargo report is amended one hour after its originallodgement, the duration of original screening period remaining is one hour - onehour of the two hours re-screening period is not contained in the original screeningperiod and thus delays the transmission of status by this amount (one hour).Consolidated StatusThe Import Document Status Summary View and Import Document Status DetailView screens display ‘status’ for a consignment. Communicators of cargo reportsand declarations may use these screens to verify that a consignment is availablefor delivery into home consumption or may be moved between approved premises.For example goods may be ‘CLEAR’ for release or ‘HELD’ due to a Customs orAQIS impediment; underbond movement may be required, permitted or notpermitted.The following table lists valid values for consolidated status in the ICS:StatusMeaningCLEARThe consignment is clear of impediments and may releasedinto home consumption.CONDCLEAR(Conditionallyclear)The consignment may be delivered into Home Consumptionafter certain conditions have been met. For example AQISapproved fumigation, or production of an MVSA permit.HELDAfter the expiry of the screening period, a HELD statusindicates that there is an impediment to the release of cargointo home consumption. For example, the impending arrivalreport has not been lodged, a voyage number has beenincorrectly reported, a Master or Ocean Bill has not beenreported or an AQIS or Customs examination is required. Itmust not be assumed that a Customs or AQIS impediment iscausing the HELD status.SUBUBMOV(Subject tounderbondmovement)Consolidated cargo (LCL sea cargo or air cargo on a HAWB)may receive this status. The consolidation must be moved toan approved premises, subject to an approved underbondmovement request, and deconsolidated before it can bereleased into home olidated cargo may be deconsolidated at sub-masterairway bill level (i.e. without further underbond movement)where the lower level airway bills have the same responsibleparty as the sub-master airway bill. (This status applies to aircargo only).IMPORT CARGO REPORTING OVERVIEW MANUAL – V1.0 27/08/20071.17

IMPORT CARGO REPORTINGTRANSHIP (Clearfor transhipment)The cargo may be transhipped through Australia.Transhipment cargo has an Australian port of discharge andan overseas port of destination. If the departureestablishment is not the same as the arrival establishmentthen an approved underbond movement is also required.Reason code TSH is used on these underbond movementrequests. Transhipment cargo may, where the intent totranship the cargo was not known at the time the cargo reportwas lodged, also be identified solely on the basis of anunderbond movement request. Reason code TSH is alsorequired in these cases.TRANSIT (intransit cargo)The cargo may transit through Australia. Transit cargo has anoverseas port of discharge and an overseas port ofdestination.WITHDRAWNThe cargo report has been withdrawn. A withdrawn cargoreport may not be further amended. A withdrawn cargo reportwill be displayed with the word WITHDRAWN in red textacross the top centre of the report.ACSSEIZED(Seized byCustoms)After completing an assessment an authorised Customsofficer has determined the goods to be seized under relevantlegislation.CLEARHRMClear High Risk Movement - a status applied by AQIS toallow release of certain AQIS risks. The risk may be relatedto the commodity, Australian destination or the origin of thegoods. These consignments must be delivered to AQISapproved premises.TRANSHPHRMHigh Risk Movement Transhipment allowed - a status appliedby AQIS to allow transhipment of certain AQIS risks. The riskmay be related to the commodity or the origin of the goods.These consignments may only be transhipped through AQISappro

per bill of lading Cargo reporter2 Not less than 48 hours before ETA at first Australian port3 Cargo reporter or a bureau Cargo list report One report per discharge port, if required Cargo reporter2 Not less than 48 hours before ETA at first Australian port3 Must be amended not less than 48 hours before ETA at subsequent Australian ports Cargo