Customer Advisory to Importers & Exporters for Brazil-Introduction of “Siscarga” by Brazil Customs Authority (for Europe/Asia regions)

29 February 2008

Dear Valued Customer,

Customer Advisory to Importers & Exporters for Brazil

Introduction of “Siscarga” by Brazil Customs Authority
(for Europe/Asia regions)

Please be aware that the Brazilian Government has decided to unify the current manifest reporting system, “Merchante” (for imports) and “Siscomex” (for exports) into a new and unique system called “SISCOMEX CARGA”.

The implementation of this system will be based on the regulatory instruction “RFB Number 800” dated December, 27th, 2007 issued by the Federal Tax bureau which is affiliated with the Brazilian Ministry of Economy. The system will serve to control and audit Brazilian cargoes loaded, trans-shipped or discharged on any vessel.

A breakdown outlining what specific details will be required on your Shipping Instructions is noted below. We will be implementing these requirements effective from 3rd March 2008.

Please note that non-compliance with above requirement may result in fines by customs. Said fines will be officially stipulated by the Brazilian authorities and will have to be borne by the Shipper or Consignee, respectively.

Below is a summary of the main requirements of “SISCARGA”:

Exports from Brazil (Shipping Instruction cutoff is 72 working hours before the vessel’s arrival at the port of loading):

1. Full address and contact information of shipper will be mandatory;
2. Freight Conditions and payment terms(Prepaid-collect, etc)
3. Cargo gross weight (without container tare) in kilograms for each container;
4. The total cargo measurement in cubic meters for each container.
5. Type of packaging of the product: bags, pallet, big bags, etc;
6. CNPJ (Tax ID number of the legal entity) or CPF (in case of an individual), of the shipper, which must be a register and active user in the customs’ system;
7. NCM (“Nomenclature Comun do Mercosul” or Harmonized Code for Mercosul) will be necessary for each container. The NCM is composed of 8 digits but only the first 4 of them will be mandatory. In case that the cargo involves to more than one NCM number, all of them will have to be specified.

Please note that any bills lacking the above information will be rejected by APL.

Imports into Brazil

1. Shipping instructions must be submitted to APL office by the locally stipulated timings at origins/load ports prior CY Port cut-off to allow full manifest details to be completed in our system;
2. Full address and contact of the consignee (and “notify” if applicable) will be mandatory;
3. Gross weight (without container tare) in kilograms for each container
4. The total cargo measurement in cubic meters for each container,
5. Type of packaging of the product: bags, pallet, big bags, etc;
6. CNPJ (Tax ID number of the legal entity) or CPF (in case of an individual), of the consignee, which must be a register and active user in the customs’ system;
7. NCM (Harmonized cargo Code) is mandatory in all import B/L’s for each container. The NCM is composed of 8 digits but only the first 4 of them will be mandatory. In case the cargo involves more than one NCM number, all of them will have to be specified. (FAK and GDSM not allowed as cargo description).
8. For Bills of Lading consigned “TO ORDER” is accepted but full address, contact information and the CNPJ of the final consignee will have to be provided to APL at least 72 hours before the estimated time of vessel’s arrival at the first Brazilian Port call. Once received our offices will update SISCARGA. Non compliance with this requirement will provoke and automatic blocking of the cargo by customs and possible delays in its clearance.

Please note that any bills lacking the above information will be rejected by APL.

For cargoes in transit through Brazil with destination to other countries (e.g. US to Argentina, in transit through Brazilian ports).

Full address and contact of the consignee (and “notify” if applicable) will be mandatory;

9. Gross weight (without container tare) in kilograms for each container
10. The total cargo measurement in cubic meters for each container,
11. Type of packaging of the product: bags, pallet, big bags, etc;
12. NCM (“Nomenclatura Comun do Mercosul” or Harmonized Code for Mercosul) will be necessary for each container. The NCM is composed of 8 digits but only the first 4 of them will be mandatory. In case that the cargo involves to more than one NCM number, all of them will have to be specified.

Please note that any bills lacking the above information will be rejected by APL.

Please remember the importance of complying with these requirements to ensure a smooth throughput of your cargoes through Brazilian ports. We urge all customers, especially Brazilian importers, to certify that all the above information is being provided to APL by shippers at foreign ports of loading.

If you have any questions please do not hesitate to contact your local APL Account Manager, or Customer Support.