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November 2004 - Issue #31

In This Issue:

Automated Commercial Environment (ACE) & Periodic Duty Payment Update
New “Red Flags” Proposed by Bureau of Industry and Security (BIS)
CBP Changes Policy and Reporting Requirements for Ultimate Consignee
C-TPAT Program Likely to Become an Import Industry Requirement
Import Documentation Required in Advance of Arrival at US- Canadian & US-Mexican Borders
CBP Issues Statement on "5% Myth" Regarding Cargo Container Inspections
Customs Revises Compliance Policy Regarding Personal Shipments
Possible Expansion of Anti-Dumping Duty on Candles from China
Do you have an Export Management System?
CBP Revises Instructions for Filing and Substantiating Claims
U.S. Announces Major New Initiative to Fight Global Trade in Fake Goods
The Container Security Initiative is Operational at the Port of Naples
Senate Eliminates Proposed $5,000 Fine per Bill of Lading
Shapiro Appoints New Branch Manager in Charleston Office
Shapiro’s Consumer Liaison for Marine Cargo Insurance Program
Avoid Letter of Credit Bank Penalties - Get It Right the First Time!

Trade Industry News
Automated Commercial Environment (ACE) & Periodic Duty Payment Update

To address the challenges of explosive growth in international trade and travel and ever-increasing law enforcement demands, U.S. Customs and Border Protection (CBP) is in the midst of enhancing its operations. Customs Modernization includes the reengineering of Customs operational processes and the development of new technology infrastructure, computer systems, and software applications to support these processes. Modernization will address Customs commercial, enforcement, and administrative operations. The first Modernization project is the development of the Automated Commercial Environment (ACE), Customs new, high-tech trade system. ACE will streamline import operations and deliver dramatic benefits to both Customs employees and the trade community.

In mid-2004, CBP launched a three-month pilot test of the new Automated Commercial Environment designed to speed trade and combat terrorism. The continued progress in ACE development and the expansion of ACE capabilities within government and the trade community are critical components of CBP ant-terror and pro-trade strategies.

"The launch of ACE Periodic Payment and other account revenue capabilities marks a key period of growth for ACE and CBP," said Customs Commissioner Robert C. Bonner. "This is another important step toward enhancing our ability to both protect America's borders and expedite legitimate trade. ACE will provide CBP personnel with the information they need to decide what should be targeted based on a security threat, and what should be expedited because it complies with U.S. laws, before a shipment reaches the border."

Approximately 350 CBP personnel and trade community representatives participated in the pilot test. The CBP test participants included employees from the CBP National Finance Center (NFC), as well as import and entry specialists, account managers, and client representatives.

The features that were tested included new monthly account statement and payment capabilities, as well as ledger integration, notifications, alerts, and other enhancements. Similar to commercial credit card payment processes, ACE participants are able to receive a monthly listing of their daily account statements and make one monthly payment via the Automated Clearing House (ACH) electronic funds transfer system.

Through the ACE Secure Data Portal -- essentially a customized computer screen, similar to a web-site home page -- government and the trade community will be connected through a single, centralized, on-line access point. Significant enhancements were made to the entire portal for all users, even those not participating in the Periodic Payment pilot test. Through the development of tools such as the portal, ACE will provide unprecedented integration of data and communication abilities among CBP, the trade community, and other government agencies.

The ACE portal is already enhancing processing and communications with the trade community, and providing quicker, more comprehensive reporting and information gathering capabilities to all users. To date, more than 145 importer and broker accounts are on-line and accessible through the ACE Secure Data Portal, representing more than 25 percent of the value of U.S. imports.

Requirements for Importers and Brokers to Access the ACE Portal

  • Internet Access
  • Participation in C-TPAT, Customs – Trade Partnership Against Terrorism
  • Additional Requirements for use of the Periodic Monthly Payment / Statement feature include:
    • Having the ability to make periodic payments via ACH Credit or ACH Debit
    • Having the ability to file entry / entry summary information via ABI
    • Submission of a bond rider covering the periodic payment of estimated duties
  • Importer account applicants must provide the following information:
    • Importer of Record Number (IR Number)
    • Company Name
    • Address
    • Name of Trade Account Owner
  • Broker account applicants must provide the following information:
    • Filer Code Number
    • Company Name
    • Address
    • Name of Trade Account Owner
  • Requirements of Carriers:
    • Internet Access
    • Account applicants must provide the following information:
      • Standard Alpha Code (SCAC Code)
      • Company Name
      • Address
      • Name of Trade Account Owner

No fees or additional costs are required to access the ACE Secure Data Portal.
U.S. Customs and Border Protection is the agency within the Department of Homeland Security charged with the protection of our nation's borders. CBP unified Customs, Immigration, and Agriculture Inspectors and the Border Patrol into one border agency for the United States.
For more information on ACE and Customs Modernization please contact the Customs and Border Protection Modernization Office at CBPMO@dhs.gov or log onto http://www.cbp/gov.

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New “Red Flags” Proposed by Bureau of Industry and Security (BIS)

On October 13, 2004, the Bureau of Industry and Security (BIS) issued a proposed rule that would revise the knowledge definition in the Export Administration Regulations (EAR) to incorporate a “reasonable person'' standard and to replace the phrase “high probability'' with the phrase “more likely than not.'' Its proposed rule would also update the “red flag'' guidance and would provide a safe harbor from liability arising from knowledge under that definition.

BIS is proposing to update and augment the “red flag'' guidance and to increase from 12 to 23 the number of circumstances identified as presenting a red flag. The “red flags'' would continue to provide guidance that BIS believes is useful in preventing the diversion of items that are subject to the EAR to proliferation related purposes as well as other potential violations of the EAR.

The RED FLAGS include:

1. The customer or purchasing agent is vague, evasive, or inconsistent in providing information about the end-use of a product.

2. The product's capabilities do not fit the buyer's line of business or level of technical sophistication. For example, a customer places an order for several advanced lasers from a facility with no use for such equipment in its manufacturing processes.

3. A request for equipment configuration is incompatible with the stated ultimate destination (e.g., 120 volts for a country with 220 volts).

4. The product ordered is incompatible with the technical level of the country to which the product is being shipped. For example, semiconductor manufacturing equipment would be of little use in a country without an electronics industry.
  
5. The customer has little background in the relevant business. For example, financial information is unavailable from ordinary commercial sources and the customer's corporate principal is unknown.

6. The customer is willing to pay cash for an expensive item when the normal practice in this business would involve financing.

7. The customer is unfamiliar with the product's performance characteristics, but still wants the product.

8. Installation, testing, training, or maintenance services are declined by the customer, even though these services are included in the sales price or ordinarily requested for the item involved.

9. Terms of delivery, such as date, location, and consignee, are vague or unexpectedly changed, or delivery is planned for an out-of-the-way destination.

10. The address of the ultimate consignee, as listed on the airway bill or bill of lading, indicates that it is in a free trade zone.

11. The ultimate consignee, as listed on the airway bill or bill of lading, is a freight forwarding firm, a trading company, a shipping company or a bank, unless it is apparent that the ultimate consignee is also the end-user or the end-user is otherwise identified on the airway bill or bill of lading.
 
12. The shipping route is abnormal for the product and destination.

13. Packaging is inconsistent with the stated method of shipment or destination.

14. When questioned, the buyer is evasive or unclear about whether the purchased product is for export, re-export, or for domestic use.

15. The customer uses an address that is inconsistent with standard business practices in the area (e.g., a P.O. Box address where street addresses are commonly used).

16. The customer does not have facilities that are appropriate for the items ordered or end-use stated.

17. The customer's order is for parts known to be inappropriate or for which the customer appears to have no legitimate need (e.g., there is no indication of prior authorized shipment of system for which the parts are sought).

18. The customer is known to have or is suspected of having dealings with embargoed countries.

19. The transaction involves a party on the Unverified List published by BIS in the Federal    Register.

20. The product into which the exported item is to be incorporated bears unique designs or marks that indicate an embargoed destination or one other than the customer has claimed.

21. The customer gives different spellings of its name for different shipments, which can suggest that the customer is disguising its identity and/or the nature and extent of its procurement activities.

22. The requested terms of sale, such as product specification and calibration, suggest a destination or end-use other than what is claimed (e.g., equipment that is calibrated for a specific altitude that differs from the altitude of the claimed destination).

23. The customer provides information or documentation related to the transaction that you suspect is false, or requests that you provide documentation that you suspect is false.

Please click on the following link for the full text of the Federal Register Notice dated October 13, 2004 (Volume 69,
 Number 197), Pgs 60829-60836

We encourage the exporting community to read this notice carefully as the proposed rule could significantly increase the compliance burden of all exporters. In addition, the proposed rule also makes it easier for BIS to act against exporters with enforcement measures for non-compliance. Please be certain to submit all comments by November 12, 2004.

Send comments on this proposed rule via:

  • The Federal e-Rulemaking Portal: http://www.regulations.gov;
  • E-mail to rpd2@bis.doc.gov;
  • Fax to 202-482-3355;
  • Or on paper to Regulatory Policy Division, Office of Exporter Services Room 2705, U.S. Department of Commerce, Washington, DC 20230.

Refer to Regulation Identification Number 0694-AC94 in all comments.

For further information regarding the proposed rule please contact: William Arvin, Office of Exporter Services, at warvin@bis.doc.gov, fax 202-482-3355 or telephone 202-482-2440.

    CBP Changes Policy and Reporting Requirements for Ultimate Consignee

    U.S. Customs and Border Protection has announced new policy changes for reporting ultimate consignee at time of entry and release along with the reporting format for U.S. / Foreign Ultimate Consignee numbers. The changes took effect October 1, 2004 and correct systemic weaknesses, including the inability to effectively target arriving shipments for security and enforcement examinations.

    Customs states that the ultimate consignee at the time of entry or release is defined as:

    • the party in the United States, to whom the overseas shipper sold the imported merchandise;
    • if, at time of entry or release, the imported merchandise has not been sold, then the ultimate consignee is the party in the United States to whom the overseas shipper consigned the imported merchandise;
    • if the merchandise has not been sold or consigned to a United States party at the time of entry or release, then the ultimate consignee is defined as the proprietor of the United States premises to which the merchandise is to be delivered.

    The entire guidance policy and reporting change for ultimate consignee ID numbers have been posted to the Customs website and can be viewed at the following link.
    http://www.cbp.gov/xp/cgov/import/cargo_summary/ult_consignee.xml

    C-TPAT Program Likely to Become an Import Industry Requirement

    Officials from The Department of Homeland Security (DHS) stated recently that Customs-Trade Partnership Against Terrorism (C-TPAT) is moving forward from a strictly voluntary program where importers adopt suggested supply chain security practices to one in which membership will require implementation of minimum security standards.

    Some Customs and Border Protection (CBP) officials are indicating that the new C-TPAT requirements could be implemented within 30 days.

    Samuel Shapiro & Company, Inc. offers a variety of C-TPAT consulting options. Please contact Brunella Caldas at brunella@shapiro.com or (843) 971-0441 x 28 for more information regarding the C-TPAT program.

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    Import Documentation Required in Advance of Arrival at US- Canadian & US-Mexican Borders

    Now more than ever it is imperative that brokers receive supporting import documentation as far in advance of the arrival of a shipment as possible to US-Canadian and US-Mexican borders. Brokers have experienced delays in processing the entry of cargo, now that the Bureau of Customs and Border Protection (CBP) requires complete tariff classification of all goods arriving at US borders. If a driver walks into a border office requiring clearance of a lengthy entry, ten or more entry lines, that has not been pre-processed and accepted in the automated ABI system, there may be significant delays and the driver may be required to return to Canada to wait.

    Effective November 15, 2004, all shipments will require an advance notice manifest at a minimum of one hour prior to arrival. Consequently, there is clearly an urgent need pre-filing documents in advance of the expected arrival. For lengthy entries brokers will require more than one hour notice in order to process. The one-hour clock begins one hour from the time the information is accepted by the ABI system. It is recommended that import documentation is made available to brokers at least one day in advance of the arrival.

    Border brokers clearing the cargo require a package of rated invoices with accurate tariff detail and country of origin breakdowns per invoice item in the manner acceptable for a CF7501.  In conjunction, border brokers also require the carriers PAPS (pre arrival processing system) bar code so they are able to transmit the data to ABI and obtain certification of CF3461’s and CF7501’s. Customs is also requiring border brokers to present a calculation tape showing entered values on a line-by-line basis. We have been advised that Customs will reject entries if a calculation tape is omitted.

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    CBP Issues Statement on "5% Myth" Regarding Cargo Container Inspections

    CBP has issued a fact sheet summarizing its cargo container inspection practices. CBP addresses the "5% Myth": an assertion that 95% of the containers that come into U.S. ports are not inspected. CBP states that it uses intelligence to review information on 100% of cargo entering U.S. ports and all cargo that presents a risk is inspected using large x-ray and radiation detection equipment.

    Source: CBP Fact Sheet – 5% Myth Regarding Cargo Container Inspections is available at:
    http://www.cbp.gov/linkhandler/cgov/toolbox/about/accomplish/5percent_myth.ctt/5percent_myth.doc

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    Customs Revises Compliance Policy Regarding Personal Shipments

    CBP has announced revised compliance policy changes regarding personal shipments.  The joint Food and Drug Administration / CBP Compliance Policy Guide states that the two agencies will exercise enforcement discretion on Bioterrorism Act (BTA) issues until such time as the FDA publishes a final BTA rule for food imported or offered for import for non-commercial purposes.

    Source: FDA/CBP compliance policy guide notice is available on CBP Website at:
    http://www.cbp.gov/xp/cgov/import/commercial_enforcement/bioterrorism/rev_comp_policy.xml

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    Possible Expansion of Anti-Dumping Duty on Candles from China

    The National Candle Association (NCA) has requested the Department of Commerce to consider investigations which might significantly expand the scope of the existing anti-dumping duty (ADD) order on petroleum wax candles from China. If enacted, the order would increase duties on imported candles made of palm and other vegetable-based waxes, which currently do not fall under the scope, to as high as 108.3 %. The NCA asserts that there is widespread fraud on the part of Chinese manufacturers and US importers to illegally circumvent existing provisions.

    It is likely that the Department of Commerce will launch investigations into these allegations and as a result will open the proceedings to allow comments, rebuttals, and other presentations at its hearings.

    Samuel Shapiro & Company, Inc. will forward additional information as it becomes available.

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    Do you have an Export Management System?

    The Department of Commerce, Bureau of Industry and Security (BIS), held their annual update for exporters in Washington, DC on October 4th & 5th 2004. BIS placed a great emphasis on convincing exporters to develop formal written procedures or an EMS (Export Management System). BIS stressed the importance of written procedures and communication of these procedures throughout an organization.

    The benefit of having a good EMS is that it minimizes the risk of violating the Export Administration Regulations and other U.S. export regulations and prevents inadvertent shipments to unauthorized end-uses, end-users, and destinations. Exporters can play an important role in this regard, while at the same time protecting the commercial interests and corporate image of their companies. An effective EMS or compliance program receives significant mitigation in administrative enforcement proceedings according to BIS. It is considered a “great-weight” mitigating factor in penalty situations.

    The EMS Guidelines have various elements to guide the exporter through the entire EMS process.

    • Element 1: Management Policy Commitment
    • Element 2: Responsible Officials
    • Element 3: Record keeping
    • Element 4: Training
    • Element 5: Internal Reviews
    • Element 6: Notification

    Order Processing System Element

    • Screening Element 1: Denied Persons Screen
    • Screening Element 2: Product/licensing Screen Sample Product/License Matrix
    • Screening Element 3: Diversion Risk Screen
    • Screening Element 4: Nuclear Screen
    • Screening Element 5: Missile Screen
    • Screening Element 6: CBW Screen
    • Screening Element 7: Anti-Boycott Screen
    • Screening Element 8: Informed letter/Entity List Screen

    A sample module and updated guidelines appear on the BIS website located at: http://www.bis.doc.gov/exportmanagementsystems/EMSGuidelines.html.

    For further questions, please contact compliance@shapiro.com.

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    CBP Revises Instructions for Filing and Substantiating Claims
    U.S. - Chile Free Trade Agreement
    U.S. - Singapore Free Trade Agreement

    U.S. Customs and Border Protection (CBP) has issued two sets of amendments for filing and substantiating claims for preferential tariff treatment made under the U.S - Chile Free Trade Agreement (US-CFTA) and the U.S. – Singapore Free Trade Agreement. (US-SFTA).

    There are five sections of amendments to the U.S – Chile Free Trade Agreement, which include verification by CBP, determination of a claim, post-importation claims, marking rules and automated processing.  Questions regarding provisions of the US-CFTA should be directed to Lori Whitehurst, Trade Agreements Branch at (202)-344-2722. The US-CFTA update can be viewed at the following link: http://www.cbp.gov/linkhandler/cgov/import/international_agreements/us
    _cfta/chile_fta_ammend.ctt/chile_fta_ammend.doc

    The amendments to the U.S. – Singapore Free Trade Agreement also include: verification by CBP, determination of a claim, post entry claims, marking rules, and Integrated Sourcing Initiative (ISI).  ISI provides that the country of origin for ISI goods may be any country, including Singapore or the United States, and defines the term “exported from Singapore”.  Additionally, Customs states that, for all ISI goods, those goods that appear on the list in Generate Note 25(m) of the Harmonized Tariff Schedule of the U.S. will not use the special program indicator “SG”.  Instead, these goods will be entered under the primary tariff number 9999.00.84, and the secondary tariff number (the actual descriptive tariff classification number) will appears on the next line. Even ISI goods with Singapore as the country of origin should be entered using he Chapter 99 number.

    Questions regarding the US-SFTA should be directed to Ms. Anne Marusza, Trade Agreements Branch at (202)-344-1264. The US-SFTA update can be viewed at the following link:
    http://www.cbp.gov/linkhandler/cgov/import/international_agreements
    /us_sgfta/singapore_fta_ammend.ctt/singapore_fta_ammend.doc

    Source: US-CLFTA amendment dated September 29, 2004 is available on the CBP Website at: http://www.cbp.gov/xp/cgov/import/international_agreements/us_cfta/, US-SGFTA amendment dated September 16, 2004 is available on CBP Website at:
    http://www.cbp.gov/xp/cgov/import/international_agreements/us_sgfta/

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    U.S. Announces Major New Initiative to Fight Global Trade in Fake Goods

    On October 4, 2004, U.S. Trade Representative (USTR) Robert B. Zoellick announced a major new government-wide initiative, the Strategy Targeting Organized Piracy (STOP!), to fight billions of dollars in global trade in pirated and counterfeit goods that cheat American innovators and manufacturers, hurt the U.S. economy, and endanger consumers worldwide.

    From familiar products such as CDs and DVDs to clothing, brake pads and even automobiles, trade in fakes has been growing not only with the United States but also between other countries, thereby escaping the reach of U.S. law enforcement efforts. "Trade in fake goods is growing, cheating American innovators and producers out of billions of dollars and threatening consumers all over the world with low quality and often unsafe products. This problem crosses many different jurisdictions, laws and countries, and the STOP initiative provides a coordinated and effective answer," said Zoellick.

    STOP! is broad in scope and brings a new approach, new tools and new pressure to bear through a coordinated effort from the federal government, the private sector and America’s international trading partners. Key elements of the STOP! initiative include:

    • Helping and empowering American businesses, inventors and innovators, particularly small businesses, secure and enforce their rights in overseas markets;
    • Ensuring consumer safety by securing America’s borders and marketplace from fakes;
    • Raising the stakes and making life more onerous for intellectual property thieves through new customs methods that increase costs to violators far beyond seizing shipments and by naming and shaming global pirates and counterfeiters who are producing and trafficking in fakes;
    • Developing a "No Trade in Fakes" program in cooperation with the private sector to ensure that global supply chains are free of infringing goods;
    • Working to dismantle criminal enterprises that steal intellectual property using all appropriate criminal laws, and overhauling, updating and modernizing U.S. intellectual property statutes; and
    • Joining forces with like-minded trading partners concerned about the growing global IPR piracy problem, such as the European Commission, Japan, the United Kingdom and France who have all recently launched initiatives.

    Since 2000, the U.S. Customs and Border Protection (CBP) agency has increased IPR seizures by 100 percent. This year, CBP is setting a record pace with increased seizures (5,500) and value ($90 million).

    Source: “U.S. Announces Major New Initiative to Fight Global Trade in Fakes” appearing in The Office of the United States Trade Representative’s website on October 4, 2004 available at http://www.ustr.gov/Document_Library/Press_
    Releases/2004/October/U.S._Announces_Major_New_
    Initiative_to_Fight_Global_Trade_in_Fakes.html

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    The Container Security Initiative is Operational at the Port of Naples

    On September 30, 2004, the U.S. Customs and Border Protection (CBP) and the Italian Customs announced that the Container Security Initiative (CSI) is operational at the Port of Naples.

    CSI is an initiative to enhance international security from ocean container traffic after the terrorist attacks of September 11th. The initiative between the U.S. and Italy began in June of 2003 at the ports of Genoa and La Spezia, and calls for cooperation between CBP and the Italian Customs. CSI has developed along the guidelines set forth in the Declaration of Principles that was signed in November of 2002 between U.S. Customs and Border Protection Commissioner Robert C. Bonner and Italian Customs Director General Mario Andrea Guaiana.

    "The primary purpose of CSI is to protect the global trading system and the trade lanes between CSI ports and the U.S. By participating in CSI at the Port of Naples, the government of Italy is helping to make a safer, more secure world trading system," said Commissioner Bonner. "CSI is essential in securing containerized shipping, an indispensable but vulnerable link in the chain of global trade."

    Italian Customs Director General Mario Andrea Guaiana said, "The declaration of principles addresses a common objective to enhance the security of ocean container shipments since this form of transport is vulnerable to the terrorist threat. The effective cooperation existing between the U.S and Italy at the ports of Genoa and La Spezia and the positive expertise developed during the year of operation of CSI in Italy are a matter of reference for the expansion to Naples and soon after, the ports of Gioia, Tauro, and Livorno."

    CSI is now operational in 26 ports in Europe, Asia, Africa, and North America. The operational ports include: Halifax, Montreal, and Vancouver, Canada; Rotterdam, The Netherlands; Le Havre, France; Bremerhaven and Hamburg, Germany; Antwerp, Belgium; Singapore; Yokohama, Tokyo, Nagoya and Kobe, Japan; Hong Kong; Gothenburg, Sweden; Felixstowe, United Kingdom; Genoa and La Spezia, and Naples, Italy; Busan, Korea; Durban, South Africa; Port Klang and Tanjung Pelepas, Malaysia; Piraeus, Greece; Algeciras, Spain; Laem Chabang, Thailand.

    Source: “The Container Security Initiative is Operational at the Port of Naples” appearing in U.S. Customs and Border Protection’s website on September 30, 2004 available at http://www.cbp.gov/xp/cgov/newsroom/press_releases/09302004.xml

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    Senate Eliminates Proposed $5,000 Fine per Bill of Lading

    On October 5, 2004 the U.S. Senate decided to eliminate the Maritime Transportation Security Act amendment which proposed to fine import consignees $5000.00 per bill of lading for merchandise left on the dock for seven (7) calendar days

    House of Representatives bill number HR4355.
    U.S. Senate bill number S.2279.

    Samuel Shapiro & Company, Inc. encouraged you to voice your objections to the bill; Congress responded accordingly.

    The Library of Congress website: http://thomas.loc.gov/. Information regarding your local congressperson can be found at: http://www.house.gov/writerep/.

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    Shapiro Appoints New Branch Manager in Charleston Office

    Baltimore Corporate - October 21, 2004 - Samuel Shapiro and Company, Inc. recently appointed CJ McCarthy as Branch Manager of its Charleston office to oversee Shapiro operations in North Carolina. As Branch Manager, McCarthy will monitor day-to-day operations for compliance and accuracy, assure that our customers' expectations are exceeded, and actively participate in new business development.

    "CJ comes to Shapiro with nearly thirty years experience in our industry including both imports and exports", explained Margie Shapiro, CEO and President of Samuel Shapiro & Company,
    Inc. "CJ has a unique entrepreneurial spirit; this will benefit Shapiro's financial goals for the Charleston Branch."

    Formally a Certified Financial Manager at Merrill Lynch where he ranked in the top 15% of mortgage sales producers, McCarthy is no stranger to  both import and export operations.  Prior to his investment career, he worked for several transportation and logistics companies where he oversaw less-than-container-load activities, international warehousing, and vessel operations departments.

    "I feel very fortunate to have a great team behind me," stated McCarthy. "Samuel Shapiro has a powerful reputation in the shipping and logistics industry, specifically their hands-on customer service philosophy, provided by each branch. I'm very proud to be in a position where I, along with my team can contribute to the success of the Shapiro family name."

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    Shapiro’s Consumer Liaison for Marine Cargo Insurance Program
    Customers Receive the Best Possible Service to Properly Insure Their Cargo

    Samuel Shapiro & Company, Inc. believes that an integral component of our freight forwarding/Customs Brokerage service is to make certain that our clients are aware of the need to properly insure their cargo. Therefore it is our pleasure to announce the creation of a Consumer Liaison that will provide our clients with a competitive and comprehensive insurance program during the transit of their cargo.

    “Amy Schultz was promoted this month to Corporate Insurance Specialist,” explained Perijo Bennett, Director of Transportation for Samuel Shapiro & Company, Inc. “In her role, Amy will work to further enhance the development of Shapiro’s Insurance product by consulting customers as to the problems inherent to the transportation process. Amy’s position will entail assisting with insurance rate quotes, setting up and maintaining insurance profiles, and facilitating our company’s insurance claims.”

    “Facts to Be Aware Of”

    • Lloyds of London recently reported that on average, one ship sinks every day.
    • Due to regulatory changes in the industry such as, Montreal Protocol No. 4 and the Ocean Shipping Reform Act, transportation as we know it is not the same and carrier’s liability is constantly changing.
    • Some goods are simply prone to loss simply by their nature. In fact, approximately 35% of losses in transit are unavoidable due to the rigors of transit (moving, shifting, bad weather, extensive handling, etc.).

    “I think there is a misconception out there by even veteran importers and exporters that cargo insured by shipping lines equals full coverage,” noted Amy. “When a claim is made, you’re lucky to recover up to $500 per container,” stated Schultz. She explained that carriers limit their liability in the event of a loss. In most instances, the limited liability amounts will not cover the value of the customer’s shipment. The same is true if shipping via air, the most you can expect to recover is $20.00 per kilo (actual weight).

    If you are an international shipper, take a moment to review information on the insurance coverage Samuel Shapiro & Company, Inc. can provide. To make sure your company’s interests are protected against the perils of transit click on:  www.shapiro.com and search Marine Cargo Insurance or e-mail insurancerates@shapiro.com.

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    Shapiro Products & Services

    Avoid Letter of Credit Bank Penalties - Get It Right the First Time!

    Statistically, 60-70% of letter of credit documents are submitted to a bank with discrepancies. The results are time-consuming and costly. The exporter experiences delay of payment for its product, additional banking charges, and non-payment headaches. By carefully selecting your freight forwarder, you can avoid these problems.

    Samuel Shapiro & Company, Inc. has established strong partnerships with domestic and international banks from both the operational side and the business development side of our business."  Samuel Shapiro & Company, Inc. is staffed with individuals experienced in all aspects of the export process. They are well qualified to handle your letter of credit transactions.

    Shapiro L/C Services for Exporters:

    • We assist the exporter in the understanding and interpretation of L/C terminology.
    • We guide the exporter step-by-step in formalizing the draft L/C to advise the importer of terms prior to the establishment of letter of credit.
    • Shapiro will prepare the required documents for the letter of credit such as the commercial invoice, packing list, and certificate of origin, insurance certificate, sight/acceptance draft, legalized documents, and all other documents to comply with the letter of credit.
    • We provide instructions to steamship lines to ensure that the bill of lading is in compliance with the letter of credit.
    • We communicate with the bank on behalf of the shipper with regard to documentation, and make any necessary corrections to comply with the letter of credit.
    • Shapiro monitors and tracks documents with the negotiating bank until monies are paid.

    Shapiro's in-house letter of credit expert has over 25 years of letter of credit experience and is well respected within the industry. Please call at 410-539-0540 ext. 206 or e-mail us at marketing@shapiro.com.

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