|
|
"Shap" Talk
|
February 2003 - Issue #11
In This Issue:
Overseas Port Strikes Lead to Disruptions at European Ports
Transportation News
Customs Enforcement of the 24-Hour Rule Begins February 2, 2003
Steel Import License Required Under Section 201
Customs Proposes to Amend Confidentiality Rule
U.S. East Coast / U.S. West Coast Port Congestion
Afghanistan Designated Beneficiary Country Under GSP
C-TPAT Seminar Hosted By Samuel Shapiro & Company, Inc.
Trade Industry News
Overseas Port Strikes Lead to Disruptions at European Ports
European dockworkers have coordinated strikes to protest against the proposed European liberalization of port services. The European Transport Workers’ Federation (ETF) contends that adoption of a pending directive by the European Commission and European Parliament effecting European ports will undermine the working conditions of port workers, threatening both their safety and employment.
The ETF reported strikes in the ports of Rotterdam, Amsterdam, Antwerp, Zeebrugge, Ostend, Limassol, and Larnaca. Labor actions are also expected in Hamburg and Bremerhaven. Our agents report general strike announcements from January 20th through the 24th and beyond for all Spanish ports. French, British, Danish and Maltese ports are expected to follow suit. Delays are inevitable as there will be no equipment moves of any kind and some of the vessels may even cancel their ports of call.
For the latest European strike information, please contact your local Shapiro office or e-mail us at info@shapiro.com.
Back to top
Transportation News
Deferred Asian airfreight service to major destinations for known shippers can be obtained for as low as $1.10 per kilo, excluding fuel and security surcharges. Destinations include Beijing, Hong Kong, Nagoya, Osaka, Seoul, Shanghai, Taipei and Tokyo.
Samuel Shapiro & Company can meet all of the transportation needs of our import and export clients. We have space on vessels and airlines from Asia to the East Coast. Please contact our Transportation Department at Marketing@shapiro.com if you require assistance.
Back to top
Customs Enforcement of 24-Hour Rule to Begin February 2, 2003
The U.S. Customs Service has stated that they have no intention of delaying the start date for enforcement of the 24-Hour Advance Cargo Manifest Rule, scheduled to take effect on February 2, 2003. Carriers and Non-Vessel Operating Common Carriers (NVOCC's) will be subject to enforcement actions for any vessel beginning a voyage on or after February 1, 2003. Vessels beginning a voyage at that time will be subject to full compliance with the 24-Hour Rule. Those vessels that are between foreign ports of call on February 1, 2003 will not be considered for penalty action for violation of the rule.
The 24-Hour Advanced Manifest Rule calls for the following:
- All ocean carriers or Non-Vessel Operating Common Carriers (NVOCC's) must submit manifest information to U.S. Customs at least 24-hours in advance of cargo loading if vessel is calling on a U.S. port. It is encouraged that this information be presented electronically, as this electronic filing is a key ingredient in Customs' plan for end-to-end supply chain security.
- The rule extends not only to cargo off-loaded in the U.S., but also includes all cargo remaining on board the vessel for subsequent off-loading at a non-US port.
- Details of the cargo manifest must be based on the actual declaration of cargo by the shipper and must be submitted no later than the carrier's cut-off deadline at the foreign cargo-loading port.
- Failure to comply could result in significant penalties against the carrier or NVOCC as well as the removal of the container for inspection by U.S. Customs and/or the denial of permission to unload vessel cargo.
Customs states that they will deny permission to ocean carriers and cargo consolidators to off-load non-compliant containers at U.S. ports. Commissioner Bonner has stated that shippers and carriers will face fines or other penalties and sanctions beginning February 2, 3003 for non-compliance with the new rule.
For more information please visit http://www.customs.ustreas.gov/
Source: Journal of Commerce On-Line Edition, dated January 2003.
Back to top
Steel Import License Required Under Section 201
Effective February 1, 2003, all imports of steel products covered by the President's Section 201 Steel Relief Determination, including those products subject to country or product exclusions, will be required to obtain a steel import license prior to the submission of the U.S. Customs entry summary documents. The Department of Commerce established a Steel Licensing and Surge Monitoring System as instructed by President Bush in his announcement of safeguard remedies on certain steel products.
The license can be obtained sixty days prior to importation, is valid for seventy-five days and can be obtained by the importer, the importer’s broker or importer’s agent. The Single Steel Import License is issued for the same importer of record, manufacturer, country of origin and country of export. If any of these data elements change, a separate license must be obtained. There may be multiple licenses required for each entry. Violations and untimely filing of the Steel Import License may result in penalty actions.
For a listing of the tariff numbers subject to the steel licensing requirement, please refer to Presidential Proclamation 7529, issued on March 7, 2002 or visit the White House website at http://www.whitehouse.gov/news/releases/2002/03/20020305-7.html , or http://ia.ita.doc.gov/steel/license/ or contact compliance@shapiro.com.
Back to top
Customs Proposes to Amend Confidentiality Rule
Customs has issued A Notice of Proposed Rulemaking (NPRM), published in the Federal Register on January 9, 2003, which amends the new 24-Hour Advance Vessel Manifest Rule to allow non-vessel operating common carriers (NVOCC's) to make confidentiality requests on behalf of importers and consignees.
Specifically, the NPRM states that “in addition to the importer or consignee, parties that electronically transmit vessel cargo manifest information directly to Customs 24 or more hours before cargo is laden aboard the vessel at the foreign port may request confidentiality with respect to the name and address of the importer or consignee, related marks and identification numbers that reveal their names and addresses, and the names and addresses of their shippers.” Such parties would need a letter of authorization signed by the importer or consignee in order to submit a request for confidentiality.
The proposed amendment is in response to concerns raised by NVOCC's that under the new 24-hour rule they would be required to report vessel manifest data, which would be subject to publication. The NVOCC group contends that disclosure of this commercially sensitive and confidential information could harm their industry and give ocean carriers the advantage.
Although Customs’ proposal attempts to address this confidentiality issue, the NVOCC community feels that more needs to be done to rectify the problem created by the 24-hour rule. According to Edward Greenberg, regulatory attorney for the National Customs Brokers and Forwarders Association of America (NCBFAA), the NCBFAA may petition Congress to enact a “cargo confidentiality law.” Written comments concerning this proposal must be submitted to Customs by February 10, 2003 at the following address:
U.S. Customs Service, Office of Regulations and Rulings
Attention: Regulations Branch
1300 Pennsylvania Avenue, NW
Washington, DC 20229
Sources: “Customs Proposes Manifest Confidentiality Rule Change.” Monday Morning Briefing dated January 13, 2003, “Customs proposes confidentiality rules.” The Journal of Commerce Online dated January 8, 2003, “Confidentiality Protection for Vessel Cargo Manifest Information.” Federal Register: January 9, 2003 (Volume 68, Number 6)
Back to top
U.S. East Coast / U.S. West Coast Port Congestion
Four months following the lockout by management of longshoreman from the International Longshoreman and Warehouse Union (ILWA), ports on both coasts continue to deal with a backlog of congestion. Independent contractors are reporting excessive waiting times and are refusing to pick up loads in Los Angeles, even when offered bonuses. The situation has improved somewhat in the Pacific Northwest, where ports are working their way back to one-hour turn-around times.
East Coast ports are also experiencing delays and waiting lines due to the fall-out from the West Coast strike. In an effort to circumvent the delays, many importers and retailers have diverted their shipments from Asia to East Coast ports. These shipments were originally intended to off-load at West Coast ports. Savannah has realized record gate moves, while the ports of New York and New Jersey are short of labor, trucks and chassis.
Operators are looking forward to the Chinese New Year on February 1, 2003. Factories in Asia will close for two weeks, hopefully allowing terminals the time to clear the backlog and return to normal operations.
Source: Journal of Commerce On-Line Edition, dated January 6, 2003.
Back to top
Afghanistan Designated Beneficiary Country Under GSP
On January 10, 2003 President Bush signed a presidential proclamation designating Afghanistan as a beneficiary developing country under the Generalized System of Preferences (GSP). Afghanistan's beneficiary status will become effective on January 29, 2003. Since Afghanistan was also designated as a least-developed GSP-beneficiary country, it will also be able to enjoy duty-free treatment for more than five thousand commodities imported into the United States. Afghanistan's duty-free status will take effect March 17, 2003.
Back to top
Shapiro Products & Services
C-TPAT Seminar Hosted by Samuel Shapiro & Company, Inc.
Samuel Shapiro & Company, Inc. is hosting a half-day seminar focusing on the Customs-Trade Partnership Against Terrorism (C-TPAT) program. The seminar will be held on Tuesday, February 11, 2003, from 8:30 a.m. to 12:00 p.m. at the World Trade Center in Baltimore, Maryland.
Our featured guest speaker, Bonni Tischler, former Assistant Director of Field Operations at Customs Headquarters, has been involved with C-TPAT since its inception and is now Vice President for Pinkerton’s Global Transportation and Supply Chain Security Department. Additionally, Robert A. Shapiro, a partner in the law firm of Barnes, Richardson & Colburn, will be presenting some of the legal aspects with respect to the C-TPAT program.
Customs is encouraging all importers to voluntarily participate in the C-TPAT program. For more information and seminar details, please contact compliance@shapiro.com or 1-800-695-9465, Ext. 281.
|
|
