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CBP opens final three CEEs

Monday, June 10th, 2013

US Customs has announced that it will launch the final three Centers of Excellence and Expertise (CEEs) – Agriculture & Prepared Products in Miami, Apparel, Footwear & Textiles in San Francisco, and Consumer Products & Mass Merchandising in Atlanta.

As reported here previously, the now 10 CEEs are the result of a collaborative effort between CBP and the trade to create a virtual one-stop processing center for imports that fall within broad industry categories (although each category is based in a specific port, CBP experts for that category are linked virtually to that CEE even if they work remotely).  As part of CBP’s Trade Transformation efforts, the CEEs lower the trade’s cost of business, provide greater consistency and predictability and enhance CBP enforcement efforts for transactions within each center.

Some additional points from Adrienne Braumiller, Esq., of Braumiller Schulz, LLP, from her recent post, “Centers of excellence and expertise:  a boon for importers”:

  • In a recent survey of the trade community,
    • 75% of participants indicated that they were very satisfied with their membership in a center
    • 96% percent indicated that their center helped them resolve issues they had with CBP
    • 50+% percent said they benefited from fast shipment delay resolutions, direct contact with CBP, and more clarity on CBP requirements.
  • Many non-CEE participants have used centers to answer questions ranging in subject from C-TPAT procedure to CF-28s and cargo holds and these non-participants seemed to be satisfied with the center’s assistance.
  • CEEs plans to transfer all port-of entry responsibilities to the CEEs, including revenue collection, a gap now that requires participating importers to file their entries with their designated CEE but provide a copy with a check for duties owed to the actual port of entry

 

 

 

Hong Kong port strike is over

Tuesday, May 7th, 2013

The BBC reports that striking dockworkers at the Port of Hong Kong — the world’s third busiest — have agreed to end their work stoppage.  The workers, on strike since March 28, will accept a pay raise of about 10%, significantly less than the 23% increase they sought.

During the strike, the affected terminal ran at less than 90% capacity, forcing shippers to divert cargo to ports on mainland China.

Back-up plan for strike-crippled Port of Hong Kong

Monday, April 22nd, 2013

As a strike by dockworkers that has battered operations at the Port of Hong Kong enters its fourth week, the Hong Kong Shippers’ Council has devised a back-up plan to continue to move goods.

According to Carbon Positive, the Council has negotiated with the Port of Guangdong on mainland China to divert Hong Kong cargo there, as well as receive expedited clearance of diverted cargo by Guangdong customs officials.  The Council has been working in tandem with the Federation of Hong Kong Industries for an alternative course of action to avoid even more shipping delays in advance of next month’s peak season.

The Port of Hong Kong is one of the world’s busiest.

Port of Hong Kong, HK Container Terminal.  © 2006 by Photocapy.  All rights reserved

Port of Hong Kong, HK Container Terminal. © 2006 by Photocapy. All rights reserved

More improvements underway at Port of Long Beach

Sunday, April 7th, 2013

© 2013 Port of Long Beach

Last week, officials at the Port of Long Beach kicked off the Green Port Gateway project, an $84 million undertaking to “remove a railroad bottleneck and build additional on-dock capacity.”  The project involves realigning a rail route, adding a railyard and constructing a third rail line.

The Green Port Gateway construction is to align with the port’s Middle Harbor Terminal project, already underway, which will add capacity for the nation’s second busiest port to handle 3 million cargo containers.

What is the Customs Training Enhancement Act?

Tuesday, March 26th, 2013

Introduced last week by US Representative Dan Lipinski (D-IL), the Customs Training Enhancement Act will, if enacted, facilitate the sharing of information between the private sector and US Customs with the goal of reducing the importation into the US of foreign goods in ways that bypass duty collection.

According to Lipinski, the bill is modeled after a well-established program in which US steel industry representatives “have taught Customs agents how to spot products that have been deliberately mislabeled”, misclassified or undervalued in an attempt to avoid paying duties.

The US Government Accountability Office estimates that since 2001, the US  has been shorted by $600 million in duties, and that “90 percent of all transshipped or mislabeled items originated in China.”

See Rep. Lipinski’s press release.

Sequester delays may hit ports hard

Wednesday, March 6th, 2013

Port Newark (Star Ledger file photo)

The so-called sequester — automatic cuts in federal spending that began on March 1 — is predicted to have significant impact on the movement of cargo through US ports.

According to the Newark Star Ledger, US Customs has warned of five-day delays for container inspections at the Port of New York and New Jersey,  the busiest port on the East Coast.   Port representatives predict the delay will cause a greater “backlog of containers that the crowded port doesn’t have room for.”

On the West Coast, there are similar concerns.  As reported in The Washington Post,

Art Wong, a spokesman for the Port of Long Beach, which handles 40 percent of the nation’s imports, said uncertainty about how the cuts will affect operations make it difficult to plan.  ”We’re not sure where this is going to go,” he said.  ”There are a lot of people whose jobs depend on this [port].”

The Department of Homeland Security, which includes US Customs, expects delays to become widespread “as the department begins furloughing employees.”   Furlough letters may be sent to employees as early as tomorrow.

For the latest CBP guidance on the sequester, see the agency’s information page.

CBP Commissioner Aguilar to resign

Tuesday, February 12th, 2013

David V. Aguilar, head of US Customs & Border Protection for the last 3 years, is retiring, effective March 31.

US Secretary of Homeland Security Janet Napolitano issued a statement showcasing Mr. Aguilar’s accomplishments at CBP:

…During his tenure, Commissioner Aguilar led a workforce of over 60,000, including 43,000 uniformed law enforcement officers, focusing on integrated border management, which includes securing our nation’s border from all threats, while facilitating travel and trade.

Under his leadership, attempts to cross the border illegally are down nearly 80 percent from their peak, seizures of illegal drugs, weapons and other contraband are up, and some of the safest communities in America are found in our border states.

He also led CBP to conduct the first West Coast Trade Symposium; expanded its travel facilitation “Trusted Traveler” programs; fully implemented the Anti-Border Corruption Act of 2010 requirement of 100 percent applicant polygraph screening, ahead of schedule; launched two new Centers of Excellence and Expertise and created six more; and worked with our international partners to facilitate international trade and travel.

Commissioner Aguilar has been integral in leading CBP’s modern transformation, leveraging enhanced technology and training, increased Office of Air and Marine capabilities, and advanced information analysis to assist legal travel and trade….

A successor has yet to be named.

US works to enhance trade with Mexico, EU

Monday, February 4th, 2013

The United States continues its efforts to facilitate trade with two of its significant trading partners, Mexico and the European Union.

On the southern border, the US and Mexico recently signed a joint work plan for mutual recognition of each other’s trade security program, CBP’s C-TPAT and Mexico’s New Certified Companies Scheme (NEEC).  Both countries expect to implement the plan in two years.  This is similar to Beyond the Border initiative with our northern trading partner, Canada.

Separately, the US and the EU have renewed efforts to create a free trade zone for their mutual benefit.  Previously, the parties were unable to agree on the harmonization of taxes, tariffs, regulations and standards.  But with economic woes still engrained on both sides of the Atlantic, a free trade zone will likely save hundreds of billions of dollars — on both sides — each year, providing an incentive to find common ground.  Listen to the report from National Public Radio.

Possible change in Panama Canal toll calculation

Tuesday, January 22nd, 2013

As the expansion of the Panama Canal continues, the Panama Canal Authority may change the way it calculates tolls for commodity carriers and tankers hauling fuels, once construction work is complete in 2015.

According to Bloomberg.com, the Authority may calculate fees based on the cargo capacity of these vessels, rather than the existing toll system that does not usually reflect such capacity.  That price structure would be more in line with fees charge to container ships, for which tolls have been calculated based on cargo capacity since 2005.

The possible change is purportedly to increase canal traffic, which now represents 5 percent of world trade.  A decision of the toll calculation change is expected in February 2014.

Check out this Panama Canal time-lapse video.

ILA strike avoided for now

Monday, December 31st, 2012

The International Longshoremen’s Association and the U.S. Maritime Alliance, representing the shipping lines and terminal operators, signed a 30-day contract extension late last week, as ILA workers at 14 ports from Maine to Texas prepared to strike on Sunday.

See full story at BreakBulk.com.