We at UTi would like to keep you informed of the latest in a number of security programs designed to reduce security risks related to cargo imported into the United States. Effective August 13, 2004, the United States Bureau of Customs and Border Protection (CBP) will mandate additional information in the Air Automated Manifest System (AAMS).

This additional cargo information must be received in advance of the cargo's arrival via electronic presentation for all air imports into the United States beginning with goods that arrive at all of the East Coast airports. The second phase is effective October 13th for the Central United States; the final phase is effective for the West Coast on December 13th, 2004.

As a result all Master Air Waybill (MAWB) and House Air Waybill (HAWB) data will be pre-manifested via the AAMS for the first U.S. port of entry. The information needs to be transmitted four hours prior to arrival for continental flights, or at "wheels up" from NAFTA countries and from locations north of the equator in Central and South America. The US AAMS regulation is also mandatory for cargo loaded on aircrafts with technical stops on U.S. soil.

The AAMS program parallels the Customs Security Initiative CSI/24-hour rule for ocean containers with one major exception: ocean shipments destined for the United States must submit advance electronic presentation of cargo information at least 24 hours prior to departure of the vessel.

To enable our compliance with the CBP, UTi must receive the details of shipments including but not limited to: 1) the real shipper's name and address; 2) the real name and address of the consignee or owner; 3) a precise description (in English) of the cargo along with weight and value; and, 4) quantity reported in the smallest external packing unit (SLAC – “Shipper's Load and Count”), in a timely, accurate and complete manner.

Non-compliance with the new CBP AAMS regulations can result in delays, penalties and/or seizure of goods. Any fines, charges or extra costs incurred by UTi as a result of filing inaccurate, incorrect, or late information provided by shippers will be for the account of the cargo.

With the implementation of the AAMS there will be a nominal fee of USD 10.00, EURO 8.00 or the equivalent in local origin currency assessed per HAWB to offset the additional cost charged by the airlines in addition to the responsibility and labor necessary to perform these new requirements by UTi.

We look forward to continuing to provide you with world-class service in meeting your supply chain needs. If you have any questions about these new regulations, please do not hesitate to contact your UTi representative or to refer to www.go2uti.com or www.cbp.gov for further information and updates.

Regards,

Mike O'Toole
Vice President, Predictable Performance