A new regulation that will affect shipping companies and freight forwarders operating to and via the UAE has taken effect from October 1, as the country seeks to boost its security systems.
The maritime pre-load cargo information (MPCI) programme, which was launched in July last year, applies to all cargo destined for, transiting through, or transhipping via the UAE.
It is being implemented by the National Advance Information Centre (NAIC), which was set up to boost the efficiency and security capabilities of the country's ports, borders, and free zones. It was intended that MPCI would become mandatory from March 31, but it was pushed back to September 30 due to the Iran war.
“While MPCI filing remains mandatory, certain enforcement measures will continue to be introduced progressively to provide stakeholders with additional time to enhance operational readiness and align their processes with the programme requirements,” NAIC said in an update on its website.
How does it work?
Previously, all ships coming to UAE ports had to submit data about the cargo they planned to offload in the country at least 48 hours before the vessel's arrival. The filing is done by the shipping line and freight forwarders to the customs authorities of the respective port in the country.
Under the new process, ship operators and freight forwarders need to submit the details of the cargo – including shipper and consignee details – to NAIC before the ship leaves from the loading port. The authority will then issue one of three decisions: acceptance (ACT), request for information (RFI) or do not load (DNL).
Containers that are rejected cannot be loaded on to the ship. When the ship arrives at the UAE port, the old process of submitting details to local port and customs authorities stays in place.
The filing can be done through direct integration with NAIC (for shipping lines only) or through an accredited service provider (for all filers).
“All large logistics service providers have started regular filings,” said Binai Thoppil, chief operating officer of ODeX, one of the accredited service providers. “The filing process is quite simple and straightforward. All the information is already available with the shipping lines and freight forwarders as part of the bill of lading.”
A bill of lading is a legal document issued by a carrier to the shipper that contains details about the goods being shipped, where the shipment is coming from and going to, as well as details of the shipper, carrier and consignee.
Why is it being introduced?
The NAIC said the initiative is part of efforts to enhance security standards, strengthen the safety and security of maritime cargo, and improve communication with maritime carriers operating through UAE ports.
“These efforts are intended to support secure and efficient cargo movement while facilitating smooth and uninterrupted trade operations,” it added.
The MPCI filing will bring enhanced visibility on cargo expected into the UAE, and this will “actually help in better planning overall across the industry”, Mr Thoppil said.
It represents a shift towards advance cargo security assessment – identifying and addressing potential risks before cargo is loaded for the UAE rather than after it reaches its destination. “Such measures and filings have been in place in the US since 2004 and central and western Europe in the last few years,” he added.
What are the penalties?
Failure to comply with MPCI filing requirements, including late submissions, missing filings, or incorrect data “will be considered a violation and may result in fines”, according to the NAIC.
In notes to their customers, global shippers, including CMA CGM and Maersk, have notified their customers about the MPCI mandatory roll-out.
“Consignments without an MPCI reference number or without all the rest of the mandatory data may be rolled over to the next vessel,” CMA CGM said.
Enforcement responses such as RFI and DNL notifications will be introduced gradually through a phased implementation approach, Maersk said.
“Shipments submitted during this period are expected to be approved for loading, and customers should not experience shipment shutouts or cargo being Retained on Board (ROB) due to the current situation in the region,” it said.
Cases of non-compliance will initially be addressed through formal communications and warning notices, it said. “Customers are expected to continue complying with all UAE advance manifest regulations and make every reasonable effort to ensure timely and accurate submissions,” Maersk added.
Costs involved
NAIC does not charge fees for filing. However, third-party service providers may apply charges, depending on their pricing model.
Shipping lines and freight forwarders have to incorporate the filing process into their existing shipment handling and documentation process, Mr Thoppil said.
“The incremental cost to the customers is very minimal – for example, each filing may cost a few dollars as compared to thousands of dollars in freight cost and cargo value,” he said.
