CBP Seeks to Add Post-Departure Filing Requirements for Rail Shipments to Canada and Mexico

Jan. 10, 2025
By: Marvin E. McPherson

U.S. Customs and Border Protection (CBP) proposed a new regulation that would require exporters and rail carriers to file additional export manifest data for rail shipments to Canada and Mexico. The proposal, outlined under 19 CFR 123.93, seeks to align current practices with the Trade Act of 2002 (as amended), mandating electronic filing in the Automated Commercial Environment (ACE). Once implemented, the regulation will increase some compliance obligations for exporters, carriers, and other stakeholders engaged exporting goods via rail to Mexico and Canada.

Under current regulations, the submission of export manifest data for rail shipments is less stringent, with no comprehensive requirement for advance electronic filing. Pursuant to 19 C.F.R. 192.14, the U.S. Principal Party in Interest (USPPI), the USPPI’s agent, or the authorized filing agent of a Foreign Principal Party in Interest (FPPI) is required to transmit Electronic Export Information (EEI) to CBP through ACE. However, EEI is generally only required by the Bureau of Census regulations on shipments that exceed $2500 per Schedule B number and is not generally required for shipments to Canada, unless certain controlled items are involved, or the shipment is being transshipped to another destination. 15 CFR parts 30 and 758.

The proposed rule would introduce a new structured framework, and data elements that would close CBP identified the gap for exports that do not require export filing.

The proposed rule requires the transmission of export manifest data in two phases:

1. Initial Filing (24 Hours Prior to Departure): At least seven critical data elements must be submitted no less than 24 hours before the train’s departure from the port of export. These elements include:
   • Bill of Lading Number
   • Total Quantity
   • Total Weight
   • Cargo Description
   • Shipper’s Name and Address
   • Consignee’s Name and Address
   • Automated Export System (AES) Exemption Statement (if applicable)
2. Supplemental Data (2 Hours Prior to Departure): Additional transportation, conveyance, and empty container details must be submitted at least two hours before the train’s departure, replacing the current informal reporting mechanisms.

The proposed rule emphasizes that parties with the most direct knowledge of the cargo should file the required information. While carriers remain responsible for transportation data, other entities such as U.S. Principal Parties in Interest (USPPI), Foreign Principal Parties in Interest (FPPI), customs brokers, Automated Broker Interface (ABI) filers, freight forwarders, and Non-Vessel Operating Common Carriers (NVOCCs) may file cargo data. If these parties fail to file, the responsibility shifts to the party arranging or delivering the cargo to the carrier.

This rule is sure to impact those exporting goods to Mexico and Canada. Exporters, carriers, and logistics providers should review their current practices against the proposed requirements, identifying gaps in data collection, transmission capabilities, and coordination.  CBP is seeking comments regarding the proposed rule. Comments are due March 14, 2025. If you need further assistance or have specific questions about the proposed export requirements, please contact any attorney at Barnes Richardson and Colburn.