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MANDATORY USE OF AUTOMATED EXPORT SYSTEM TAKES EFFECT JULY 2
The Census Bureau has issued a final rule requiring export information to be filed through the Automated Export System or AESDirect for all shipments where a shipper’s export declaration is required. The rule is effective as of July 2 but Census states that it will not implement its provisions until 120 days after June 2 (approximately Oct. 2) in order to allow affected entities sufficient time to come into compliance. The final rule document can be found at: http://www.strtrade.com/wti/2008/june/02/doc_aes_filing.pdf
EXPORTERS WARNED OF STIFF PENALTIES FOR NEW E-FILING
Shippers, forwarders and ocean carriers have less than four months to prepare for the enforcement of new electronic filing regulations for exports, along with the threat of fines as high as $10,000. The Census Bureau on June 2 published its final rule on changes to the Automated Export System filing regulations. The new rule will become effective on July 2, but the government will allow the trade community three months to learn the system without incurring liability. The grace period ends on Sept. 30, and after that date shippers or their agents who file inaccurate or tardy export documentation will be subject to penalties that are much higher than those currently levied by the federal government. “Mistakes are OK, but don’t let them ride on,” said Joe A. Cortez, project manager for the regulations, outreach and education branch of the Census Bureau.
After Sept. 30, Customs will shift from informed compliance to enforced compliance. The shift will come with heavy penalties. “If you fail to file, or you persist in illegal activities, you are liable for fines up to $10,000 per incident,” Cortez said. That compares with criminal penalties of $1,000 at present. The government may also charge civil penalties of $1,000 per day up to a total of $10,000. Until now, the penalties provision section of the code governing the filing of export documentation totalled 15 words. Under the new regime, the penalties provisions take up an entire sub-part of the export filing regulations, demonstrating the importance the government attaches to accurate and timely filing of export documentation. Under the new regulations, the SED has been replaced by the electronic export information document and the EEI must be filed electronically via the Automated Export System. The new regulations spell out the particulars of the filing requirements. In the first three months of the program, Customs, which enforces the export regulations on behalf of Census, will work with the trade community to prevent shippers from making repeat mistakes.
CONTAINER VENTILATION CAUSING BIG PROBLEMS - JULY 10, 2008
Containers that CBSA has identified for Customs inspection and removed to their designated inspection facility are tested for chemicals. If, when the container arrives at the inspection facility it tests positive for chemicals/fumes etc., it is set aside for ventilation. Originally it was thought this increase in positive testing was due to unnecessary ‘fumigation’ at origin. However, origin fumigation is apparently not the real issue.
On June 13th, the CBSA added a test for Formaldehyde to their list. Formaldehyde is not part of the container fumigation process – but is used extensively in many manufacturing operations.
In some exam warehouses, more than 90% of the containers being tested are testing positive for Formaldehyde and being set aside for ventilation.
The container will not be handled until it has ventilated. This has additional costs of +/- $700, in addition to the inspection charges – and will add at least another 2-3 days delay. Yards are filling up with containers and delays are being compounded.
THE CBSA HAVE ADVISED THAT THEY ARE TAKING STEP TO IMPROVE THE CONTAINER FLOW
Marine operations has moved as of July 1, 2008 to 7/24 in order to accommodate these ventilations. (Ventilation must be 6 hours with a fan or 24 hours without a fan. Because Customs only worked 8 hour shifts, it was taking 3 days to get the 24 hour ventilations done … but the container doors had to be shut when the officers went home, so it was pretty useless.) Now, container doors can stay open for 24 hours in a row.
* The CBSA has ordered more fans
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The CBSA has hired ‘exterminator’ companies to open the container doors
* It is unclear if the CBSA is buying more ‘ambient air masks'
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It is unclear if the CBSA is actively urging Health Canada to review or revise the safe level of formaldehyde
Good news, the CBSA has confirmed that all charges related to ‘ventilation’ are for their account. The charges are NOT to come forward to the importer/forwarder. If you have received an invoice for ventilation (several members have received invoices of + $725 in addition to the normal inspection charges) refuse to pay. Return the invoice to the steamship company, advising them to send to the CBSA"
CBSA - CUSTOMS NOTICE 08-018, PROOF OF REPORT FOR EXPORTED GOODS
The purpose of this notice is to remind the exporting community of the policy concerning export proof of report.
Memorandum of Understanding (MOU) for Carrier Export Reporting - Since 2005, the Canada Border Service Agency (CBSA) has undertaken memoranda of understanding with carriers (including couriers) and customs service providers to help ensure that goods exported from Canada meet all requirements under the program legislation. MOU participants have agreed to accept for export only those goods that have been (or, in the case of Summary Reporting, will be) reported to the CBSA by the exporter, and for which the exporter can provide written proof that the goods have been (or will be) reported.
Exporters - Exporters whose goods are transported from Canada by a carrier who has signed an MOU will be required to provide that carrier with a proof of report. Acceptable proofs of report are as follows:
(a) A 23-digit alpha-numeric transaction number from a transmitted Canadian Automated Export Declaration (CAED), e.g. 12A345AA123420080500001;
(b) A 17-digit alpha-numeric transaction number from a transmitted G7 Electronic Data Interchange Export Report, e.g. AA123420080500001;
(c) A 21-digit numeric customs proof of report transaction number from a stamped B13A, Export Declaration, e.g. 2008/05/01 13:00 123 000001; or
(d) A 7-digit alpha-numeric Summary Reporting identification number, e.g. SUM9999.
For convenience, exporters may choose to provide the carrier with a paper copy of the export declaration, which shows the proof of report. However, please note that exporters are not obliged to do this; only the proof of report is required. Please note that exporters should never complete a paper B13A form in addition to submitting an export report in CAED, G7 EDI or Summary Reporting to meet proof of report requirements.
No Declaration Required (NDR) - Sometimes, exporters do not have to report their goods to the CBSA. If the goods to be exported are not required to be reported, the exporter will be expected to specify to the carrier or service provider that no declaration is required and to state the reason for the exemption.
Carriers and Service Providers - Carriers and service providers who have signed an MOU with the CBSA are expected to collect proof of report from exporters prior to accepting goods for export. If the goods for export are not required to be reported, the MOU participant is expected to obtain the reason for the exemption from the exporter. In addition, the MOU participant is responsible for marking the exporter's proof of report (or NDR exemption) on the cargo document, the bill of lading or the air waybill. This notation may be completed manually or as an element in the data set.
MOU participants should ensure that the exporter's proof of report follows the correct sequence of one of the four acceptable proofs of report listed in paragraph 4. However, MOU participants are not expected to verify the accuracy of the proof of report or to enforce the legislated time frames for export reporting.
A list of exports that do not have to be reported and their applicable NDR exemption codes is available on the CBSA Web site at www.cbsa.gc.ca/export. This Notice is available on the CBSA web site, http://www.cbsa-asfc.gc.ca/publications/cn-ad/cn08-018-eng.html
TSI CUSTOMERS NOTICE = REDUCTION NIGHT GATE OPERATIONS
Please be advised that due to continued low night gate utilization TSI will be reducing their night gate operations by one night a week at both Terminals. Effective Monday, July 21st night gate operations at both Deltaport and Vanterm will be as follows:
Deltaport (reduced to 3 nights per week)
Monday: CLOSED
Tuesday: 1700-2330
Wednesday: 1700-2330
Thursday: 1700-2330
Friday: CLOSED
Please cancel all Monday extended gate appointments from July 21st onward.
Vanterm (reduced to 2 nights per week)
Monday: 1700-2330
Tuesday: CLOSED
Wednesday: CLOSED
Thursday: 1700-2330
Friday: CLOSED
TSI will be monitoring their gate operations on an on going basis and will be reinstating additional night gate operations as soon as sufficient volume levels dictate a need to do so.
INCREASE IN VIETNAMESE TERMINAL HANDLING CHARGE
Due to steadily increasing operational costs at terminals in Vietnam, all shipping lines that call there will increase the terminal handling charge (THC) on 15 July. The following THCs will be levied on all outbound and inbound shipments from/to Vietnam: USD 75/TEU, USD 113/FEU and USD 140/45 foot box.
REMINDER TRANS-ATLANTIC CONFERENECE AGREEMENT CEASED OPERATIONS JUNE 30, 2008
The Trans-Atlantic Conference Agreement (TACA), whose member carriers served the trade between the USA and North Europe, United Kingdom and Ireland, Scandinavia and Baltic Ports, ceased operation June 30, 2008.
As of July 1, 2008 the TACA tariffs are no longer applicable, but remain accessible for the public for historical access – as is required by FMC regulations. On September 25, 2006, the EU Council of Ministers abolished Council Regulation 4056/86 to repeal the block exemption for liner conferences on routes to and from the European Union, but allowed two years for this decision to take effect.
Effective October 18, 2008, Council Regulation No. 1419/2006 officially puts an end to liner conferences in the European trade lanes. Shippers should refer to individual carriers' tariffs for governing rules, regulations and rates in effect from July 1, 2008. Former TACA carrier members are now charging Bunker Adjustment Factors (BAF) according to their own formulas.
OOCL - HIGH SECURITY SEAL REQUIREMENT FOR CONTAINERS IN TRANSIT TO UNITED STATES
Effective October 15th, 2008 all cargo laden containers in transit to the United States will require a High Security Seal (HSS) that meets the requirements of the International Organization for Standardization Publicly Available Specification 17712 (ISO PAS 17712). The ISO PAS 17712 HSS seal type may include, but is not limited to, HSS seals such as bolt, cable, wire, or padlock seals.
OOCL is already fully compliant in requiring shippers to place ISO PAS 7712 standard HSS seals for all USA inbound containers prior to tendering to OOCL at origin load port. OOCL provides a HSS bolt seal to all parties picking up OOCL empty equipment with a booking for a USA destination unless origin country industry practice is for shipper to provide own ISO PAS 7712 standard HSS seals or where local customs ISO PAS 7712 HSS standard seal is required. These are in addition to OOCL HSS affixing.
As a participating ocean carrier in U.S. Custom's C-TPAT program, OOCL's HSS seal policy is well established and designed to be fully compliant with the CBP C-TPAT's requirement of affixing HSS seals at cargo origin to for all USA inbound containers. Should you have any questions contact OOCL Customer Service in USA or Canada at 1-888-388-6625.
CN INTERMODAL SERVCIE TO BE REDUCED - HALIFAX - CENTRAL CANADA
CN will cut its Intermodal service from two trains a day to one, just two weeks after saying no decision to cut service had been made. Railway spokesperson Mark Hallman wrote: ‘Effective [8July], CN eliminated a train pair between Central Canada and Halifax on account of reduced volumes of container traffic.
Port of Halifax terminals will continue to be served by pure intermodal trains between Toronto and Halifax. There will also continue to be merchandise service to and from Halifax. ‘CN is discussing the service change with their customers in order to accommodate their needs; however, the remaining intermodal trains have adequate capacity for existing traffic. If volumes increase,
CN will adjust train service as required. ‘The train pair that was cut carried a mix of merchandise/intermodal between Halifax and Montreal. Information to stakeholders Paul Richard, chair of Halifax Shipping Association and an official with ZIM, said the two daily CN trains were often only 50% full, so the move is “cost-effective” for CN and should not affect the stakeholders. He did note that CN, though it did inform the port of the service change, did not inform all stakeholders directly. “Some were in the dark.”
MOMBASA HIT BY 15,000 CONTAINER BACKLOG
Mombasa the key hub port for east Africa, is suffering from a huge container backlog after hardware and software problems with the implementation of a new port automation system left over 15,000 boxes sitting in the port.
The situation has been compounded by a strike of railway workers. Shipping sources on the spot said that not a single container has left Mombasa by rail in over a week.
Difficulties were initially triggered by the introduction of the Kilindini Waterfronts System known as Kwatos on July 1. The operational issues that frequently accompany new IT systems have reportedly forced the Kenya Ports Authority-owned port to revert to the old manual system.
Shipping sources suggest that the backlog of unmoved containers has risen from 9,000 a few week ago to over 15,000 as of today, while a number of vessels have been unable to make scheduled calls. How quickly matters can be rectified is unclear. The local representative of a major shipping line said that problems included hardware, software and resistance from staff unhappy at being asked to operate a system they do not understand. Results have included delays to operations and low productivity.
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