Dear Valued Customers

Dear Customers:

Since the implementation of 24-hour manifest rule by the US Customs & Border Protection (CBP), most of Non Vessel Operating Common Carriers (NVOCC) have applied Standard Carrier Alpha Code (SCAC) to differentiate bills of lading between VOCs and NVOCCs.

In order to comply with the rule, Wan Hai will no longer transmit data on behalf of automated NVOCCs. This is a mandatory requirement for compliance with the U.S. Customs & Border Protection, 24-hour rule. Otherwise, Wan Hai will receive penalty from CBP.

Furthermore, to address current problems of 24-hour rule, CBP has issued the “Special Bill,” which ocean carriers will submit Master bills of lading to CBP Automated Manifest Systems (AMS) on top of NVOCCs submission of House bills of lading. In compliance with the new regulation of "Special Bill", Wan Hai Line would like to provide below as a guide to our valued customers:

Effective date: January 10, 2004 is the scheduled date for the AMS "Special Bill"

How does this affect the AMS procedure?

A. For non-vessel operating common carrier participating as a direct filer in AMS (NVOCC SELF-FILER):

1) When NVOCC transmit their manifest data directly to USC, he has to insert the Wan Hai’s MASTER BILL NO. (s) In his NVOCC HOUSE BILL(s); under reference identifier!

2) It is of utmost importance for the NVOCC SELF-FILER to include the respective Wan Hai’s master bill number that coincides with the documentation surrendered by customers. Please be aware of local documentation cut-offs.

3) The NVOCC SELF-FILER must insert the Carrier’s SCAC code, in the Second Notify Party field of their NVOCC House Bills. For the sake of good order, Wan Hai Line’s SCAC Code is WHLC!

4) This is a mandatory requirement for compliance with the U.S. Customs & Border Protection, 24-hour rule. Therefore, Wan Hai imposes MTF USD25 on per bill of lading for direct AMS filers (NVOCC SELF-FILER) from Jan 10, 2004.

B. For Non-SCAC NVOCC customers:

1) Non-SCAC NVOCC needs to provide Wan Hai their House Bill (s) in order for Wan Hai to transmit the AMS.

2) Wan Hai will transmit the Master Bill (s) to AMS also.

3) Therefore, Wan Hai will also charge NVOCCs in accordance with one (Master Bill) and numbers of House Bill(s) for MTF. For example: • NVOCC has one CY container – one Master Bill with the NVOCC’s name only; one House Bill with actual customers’ name : Wan Hai will charge 1 PLUS 1 MTF = 2 X USD25 = USD50 • NVOCC has one consoled box and 10 customers – one Master Bill with NVOCC’s name only, 10 numbers of House Bill with actual customers’ name: Wan Hai will charge 1 PLUS 10 MTF = 11 X USD25 = USD275 C. For Carrier:

1) All Wan Hai Master Bills will be transmitted by Wan Hai to AMS under the new Special Bill function 24 hour prior to the ETA of the vessel in the Port of Load. This includes master bills of lading issued to direct AMS filers (NVOCC SELF-FILER). This is a mandatory requirement for compliance with the U.S. Customs & Border Protection, 24-hour rule.

2) USA import entry/ USA customs release: The USA import customs entry will take place against the Wan Hai master ocean bill of lading and no longer against the NVOCC bill of lading.

3) USA terminal (carrier) release: The USA terminal release will be against the Wan Hai master ocean bill of lading ONLY this will be much simpler with the implementation of the "special bill".

On the AUTMATED MANIFEST SYSTEM and the "SPECIAL BILL": we provide the CUSTOMS AND BORDER PROTECTION, CBP web link:

http://www.cbp.gov

We hope having assisted you with this information and thank you for your attention and continued support.

Sincerely Wan Hai Lines Ltd.