Countdown to implementation of the Japan Advanced Filing Requirement

Japan’s 24 Hour Rule, the Advanced Filing Requirement (AFR), goes into effect on March 1, 2014 and the penalty phase will apply just 10 days later on March 10, 2014. This doesn’t leave much time for those who have not already begun the process of selecting a service provider and begun the process of developing internal procedures and training programs.

The Japan AFR requires the electronic submission of shipment details 24 hours prior to vessel departure for all Bills of Lading covering shipments that discharge in Japan. The AFR applies to both carrier and NVOCC bills of lading.

There is no so called “carrier option.” 

The penalty could be a 500,000 yen fine (approximately $5,000) or up to a year in jail. A potentially more sever consequence could be the refusal by Japan Customs to issue a permit to discharge the cargo.

“There are a number of nuances in the application of the rule relative to specific types of cargo or shipment situations” says Trade Tech’s president, Bryn Heimbeck. “Smooth compliance is going to mean being able to work collaboratively with offices in Japan for review of special ordinances and laws requirements or transshipment vessel tracking. The service provider’s application interface is going to be critical to handling large volumes of cargo smoothly.” 

Trade Tech, and other approved service providers, have been collaborating with NACCS, the private sector IT division of Japan Customs, to get information out to the market through a series of seminars presented around the world beginning last spring. The seminars are designed to outline the regulations and to discuss the challenges aw well as to suggest solutions. These seminars will continue in major port cities throughout the next three months. There are also on-line webinars being presented on a regular basis by Trade Tech and other providers.

“We want to be sure of is that the carriers and NVOCCs are well informed, as early as possible, so that they can work both internally and with their customers to secure the required information before the shipment dates and avoid unnecessary delays to the supply chain,” says Heimbeck.

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