China's New Rule on Advance Manifest (Decree No. 172 of General Administration of Customs)

20 October 2008

Dear Valued Customer,

Chinese Customs will begin enforcing a new rule on advance manifesting (Decree No. 172), effective 1st January 2009. This will require significant changes to the shipment processes for all cargo on vessels that load at foreign ports and are destined or transshipped at ports in China, as well as cargo loading out of ports in China. The rule will have an impact on many of our customers, as it requires that both shippers and carriers adopt disciplines and processes at both foreign ports and ports in China to ensure timely manifesting of cargo. The rule however does not affect Hong Kong, which as a Special Administration Region of China, is outside the jurisdiction of this rule.

What does this new rule mean?

• For cargo destined or transshipped at ports in China, the inbound manifest for cargo must be electronically submitted to Chinese Customs 24 hours prior to loading at foreign ports.

• For cargo loaded out of ports in China, a pre-manifest has to be electronically submitted to Chinese Customs 24 hours prior to loading and a final manifest submitted 30 minutes before loading

What is APL doing in response to these requirements?

APL has assigned a special task force to:

• Develop the operational and commercial processes that will facilitate compliance with the new requirements.

• Identify the specific impact of the regulations on our customers.

• Develop and communicate the deadlines for receipt of manifest information at each load port location.

• Establish protocols for communications with shippers and NVOCCs about 'load/no-load' messages from Chinese Customs.

• Design and develop systems enhancements to lessen the impact of this new requirement on the flow of cargo.

How will this affect you?

• In order to meet the requirements of the new rule, shippers or their partner forwarders will need to review supply chain processes in their sourcing locations and ensure that manifest information is provided to their Ocean Carriers much earlier in the shipment process.

We will continue to work with Chinese Customs on the implementation of this new rule and communicate with you on the impacts of this new regulation. Regular updates will also be made available online from our website, www.apl.com

You can find further information (in Chinese) from the Chinese Customs at: www.customs.gov.cn

In the meantime, if you have questions or require more information on the matter, please contact your local APL Sales or Customer Service representative.

Yours sincerely,