CUSTOMER NOTICE: EU ADVANCE CARGO SECURITY RULES

The European Union (EU) has promulgated new advance cargo security rules
that are scheduled to take effect after midnight December 31, 2010.
These rules are similar to those established in other jurisdictions.

The European Advance Cargo Security Rules requires that the ocean carrier
file with the relevant national Customs authority in the EU an Entry Summary Declaration (ENS)
for all shipments that will be carried on a vessel that will call one or more ports in the European Union.
It must be noted that this new EU regulation also applies to imports into Norway and Switzerland
as they have the same status as the EU Member States as far as this regulation is concerned.

The EU rules require that the ENS must be filed no later than 24 hours
before commencement of vessel loading for container shipments in each foreign (i.e., non-EU) port on the vessel schedule and no later than 4 hours before arrival in the 1^st port of first entry of the Community for breakbulk cargo (includes cars and rolling equipment).

An ENS is required irrespective of the final destination of each individual shipment on a vessel arriving in the EU.
This means that an ENS is required for shipments:

• Imported into the EU
• Discharged in an EU port for transit by rail or truck to a non-EU destination
• Transshipped in an EU port for loading on to another vessel for carriage to a non-EU destination
• Remaining on board the vessel (FROB) during ports of call in the EU with a destination outside the EU.

The ENS will be sent to the Customs office of the first port of entry (first port of call) in the EU.
This Customs office will carry out the security assessment.
In case a risk is identified subsequent EU ports will be informed.
Following risk types can potentially be assigned to shipments submitted in the ENS information:

• Risk Type A = do not load
• Risk Type B = interception of a suspicious shipment at the first port of entry
• Risk Type C = interception of a suspicious shipment at the port of discharge

The EU rules prescribes the data elements that must be included in the ENS.
An incomplete ENS will be rejected by the Customs authorities.
A container shipment for which an ENS has not been filed and accepted by Customs may not be loaded.
In other words -- the EU 24 Hour Rule applies a “no documentation – no load” requirement for container cargo.
Penalties and delay of the vessel and shipments carried may result in case of breach of this requirement.

Wallenius Wilhelmsen Logistics will apply this “no documentation- no load” requirement
for container shipments loaded on vessels calling an EU port.

The data elements required to be included in the ENS
will need to be taken from the ocean carrier’s master Bill of Lading (B/L).
We Wallenius Wilhelmsen Logistics issue our master B/L on the basis of information provided at the time of booking
and completed by the shipping instructions as received from each of our shipper customers.

The most efficient way to reduce the likelihood of European Customs authorities issuing “Do Not Load” requests
or holding cargo after discharge is to ensure that the shipping instructions are:

• Provided in due time and at the latest by our documentary cut-off;

• Complete; and

• Accurate.

The data elements we will need to receive as part of the shipping instructions for inclusion in the ENS are:

• Full name and address of Shipper
• Full name and address of Consignee
• Full name and address of Notify Party (mandatory for “To Order” B/L)
• Cargo description as per the guideline defined in the EU Regulation
  (http://ec.europa.eu/taxation_customs/resources/documents/customs/policy_issues/customs_security/acceptable_goods_description_guidelines_en.pdf)
• 4 digit HS code, but 6 digit HS Code is recommended
• Code for the type of packages if cargo is packed
• Number of packages
• Shipping marks for packaged goods (not necessary for containerized goods)
• Container and seal number as applicable
• Gross cargo mass (in kilograms)
• UN code for dangerous goods

Wallenius Wilhelmsen Logistics has been following up on the implementation of this regulation
since it was first published some years ago and we have established a project team
to ensure compliance well within the deadline of 1^st January 2011.
This includes the development of the necessary systems and interfaces with the various customs authorities of the EU Member States.

We are planning to further inform our customers and trading partners latest by end of September of our progress
to comply with these regulations and possible business impacts.

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More information about the EU’s new advance cargo security rules
can be obtained from the European Commission’s website: http://ec.europa.eu/ecip/index_en.htm