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News

ACE: Microsoft IE 8 security patch removal

Friday, January 27th, 2012

US Customs has reported that the recently released Microsoft Internet Explorer version 8 security patch KB2585542 is not compatible with the current ACE application and has resulted in slow Portal performance.

While CBP works to find a resolution, the agency has proposed a potential interim solution — the removal of the security patch. Customs has provided steps “to back out the Microsoft Internet Explorer version 8 security patch KB2585542.” The official notice containing the removal steps can be found here. (Per CBP, these steps are not to be considered official guidance by Microsoft and are to be used at the ACE account owner’s discretion.)

Posted in ABI (Automated Brokerage Interface), ACE (Automated Commercial Environment), Customs & Border Protection, News | Add Comment »

Port of Long Beach’s Middle Harbor “green” project expected to move forward

Thursday, January 19th, 2012

The Port of Long Beach has reached a tentative agreement with Orient Overseas Container Line to complete the port’s long-awaited Middle Harbor project. According to the Los Angeles Times, the nation’s second busiest port and OOCL, the world’s 12^th largest ocean shipping line, will spend a combined $1.7 billion on the 300 acre project, which “is expected to be one of the greenest and most advanced cargo terminals” in the US. When complete, the Middle Harbor terminal will have the capacity to handle 3 million cargo containers.

Middle Harbor “by itself would rank as the fourth busiest seaport in the nation.” It will “add on-dock rail to eliminate truck trips and allow ships to plug into the electrical grid, eliminating the need for them to idle their diesel engines.”

The deal also contemplates that OOCL will take a 40-year, $4.6 billion lease.

The full story, “$4.6 billion lease being finalized at Long Beach port,” is available here.

Posted in News, Ports | Add Comment »

CBP’s Centers of Excellence working well for CE, pharma importers

Thursday, January 12th, 2012

Under the tenure of former Commissioner Alan Bersin, CBP strived to facilitate trade. In that regard, one of Customs’ significant accomplishments has been the launch of two Centers of Excellence and Expertise (CEE), a collaborative effort between the agency and the trade.

As reported in American Shipper, the CEEs were created to expedite processing of imports in two different industries – consumer electronics in Los Angeles and pharmaceuticals in New York. To develop the program, CPB worked closely with a select group of importers in each industry (who were also enrolled in C-TPAT and ISA).

In the pilot program for pharmaceuticals which lead to the launch of the CEEs,

…small teams of [CBP] commodity specialists trained with leading pharmaceutical companies to learn how their supply chains operate and monitored the way CBP examines cargo from trusted shippers. The units identified which shippers are at risk for regulatory violations or government-caused shipping delays. CBP officials say they found many non-productive exams and document reviews being conducted, or cargo detained for clerical rather than substantive reasons. The experts then educated officers at ports how to make better decisions about whether to hold, examine or release consignments, thereby removing unnecessary holds for low-risk cargo.

Given the success of the pilot, the two CEEs officially launched in LA and NY. Required import documents for these two industries are now routed to the respective industry centers for validation, protest, PEAs/PSCs and more. Revenue collection will still occur in the ports of entry.

Although there are still issues related to legal, policy, personnel and process before the centers “achieve full operational processing capabilities,” CBP plans to roll out additional CEEs for the following industries:

Agriculture and prepared products
Automotive and aerospace
Base metals and machinery
Consumer products
Customs brokers
Industrial and manufacturing materials
Petroleum, natural gas and chemicals
Textiles, apparel and footwear

The full article, “Customer service at the border,” is available here (site registration required).

Posted in C-TPAT, Customs & Border Protection, News, Ports, Post-Entry | Add Comment »

CBP’s Bersin resigns

Friday, December 23rd, 2011

US Customs & Border Protection Commissioner Alan Bersin has resigned his post, effective December 31.

As reported in our blog post of September 28, Bersin was named to his position in a recess appointment by President Obama nearly 2 years ago, raising the ire of the Senate Finance Committee who sought to interrogate him about possible violation of immigration laws regarding hired household help.

Now that the Senate has adjourned without confirming his appointment, Bersin has resigned from the post in advance of its expiration at year end.

Overall, the trade was quite satisfied with the progress that Bersin made in helping to streamline the agency and facilitate trade with modernization efforts.

Deputy Commission David Aguilar will serve as Acting Commissioner.

Posted in Customs & Border Protection, General, News | Add Comment »

Country of origin – how the Chinese honey industry flouted the rules

Thursday, December 15th, 2011

As recently reported on National Public Radio, members of the US honey industry have taken major steps to prevent the importation into this country of Chinese honey purportedly from other countries.

In response to anti-dumping concerns, in 2008 the United States imposed significant duties on Chinese honey. Almost immediately, shipments of Chinese honey ceased, while imports of honey from China’s neighbors, such as Malaysia, Taiwan and Indonesia – with no commercial beekeeping history – increased markedly.

Scientific analysis of that honey revealed an absence of pollen present in those countries, but typical of pollen found in China, leading to charges of false labeling and fraud.

Now, with an sudden surge in honey imports from India, another Chinese neighbor, some members of the US honey industry have established True Source Honey, LLC, an organization that certifies foreign honey as authentically from the stated country of origin through audits, lab analysis and random inspection of honey producers.

Read or listen to NPR’s story, “Funny honey? Bringing Trust to a Sector Full of Suspicion.”

Posted in General, News, Priority Trade Issues (PTI) | Add Comment »

Ready for the California Transparency in Supply Chains Act?

Thursday, December 1st, 2011

On January 1, 2012, the California Transparency in Supply Chains Act of 2010 takes effect. The new law mandates that retailers and manufacturers 1) with global sales exceeding $100 million, and 2) that do business in California (broadly defined) to disclose on their websites the steps taken to prevent slavery and human trafficking in their supply chain.

Because the law is broadly drafted and somewhat vague, those businesses that may be subject to the Act’s requirements should consult with legal counsel to determine applicability. In addition, suppliers to covered retailers and manufactures that are asked to certify their operation should also evaluate their obligations and responsibilities under the law.

For more information on the Act, check out the law firm of Mitchell Silberberg & Knupp’s International Trade Alert on this topic.

Posted in General, News | Add Comment »

ISF progress reports – how to access

Monday, November 28th, 2011

US Customs has announced that it will no longer be emailing ISF Progress Reports after the December 2011 reports. Rather, recipients can continue to access the reports through the ACE Secure Data Portal.

The full notice, which can be found here, includes a link to set up a free ACE Portal Account.

Posted in ACE (Automated Commercial Environment), ISF, News | Add Comment »

How shippers can weather predicted trucking shortage

Wednesday, November 23rd, 2011

As recently reported in American Shipper, analysts and trucking executives are predicting an alarming commercial truck scarcity in the US in 2012. Currently, capacity is extremely tight, and if the economy improves, the situation will worsen.

The main factors that are leading to the looming crisis are a shortage in both equipment and drivers. As for equipment, the trucking industry has significantly reduced its fleets since the global economic downturn began in 2007 by selling used tractors and deferring purchase of new equipment. In addition, many small trucking companies went out of business.

With regard to drivers, more than 13 percent left the workforce left since 2007, and there are fewer younger drivers entering the market to replace older workers. Factors such as new federal hours-of-service rules inhibit hiring, leaving a current driver deficit of 125,000.

Astute shippers can take steps to mitigate problems caused by the shortage:

Strengthen relationship with key carriers (give consistent business, accept fair rates, reduce dock-wait times, pay invoices early) to increase priority during busy shipping times.
Create more consistent shipping patterns and share demand forecasts so carriers may deploy their trucks and drivers more efficiently.
Secure dedicated contract carriage (set asides of certain number of vehicles or drivers).
Use the spot market where rates and terms are better than contract rates.
Increase size of private fleet, and sell empty space in trailers on return trips.
Work with a truck broker for flexibility in last minute scheduling.
Adjust production schedules to produce loads when carriers have extra seasonal capacity.

The full article, “Where did all the trucks go?,” is available here.

Posted in General, News | Add Comment »

Merchandise fee for processing entries increases

Tuesday, October 25th, 2011

On Friday, October 21, 2011, H.R. 2832 became law. The main purpose of the statute is to extend the Generalized System of Preferences (GSP), which expired on December 31, 2010, through July 31, 2013. However, to offset the estimated cost of lost tariffs associated with expanding the GSP benefits, H.R. 2832 increases US Customs’ merchandise fee for processing entries (Class Code 499) from 0.21% to 0.3464%.

Currently, Customs is modifying the Automated Broker Interface to accept the new rate, which will apply to entries filed via ACS and ACE between October 1, 2011 and June 30, 2014. CBP has indicated that it will provide the trade with one week’s notice before it is able to accept the new MPF rate.

Customs’ official notice regarding the rate increase can be found here.

Posted in ABI (Automated Brokerage Interface), ACE (Automated Commercial Environment), Customs & Border Protection, News | 1 Comment »

Port of LA: “The traditional peak season has not materialized”

Sunday, October 16th, 2011

Officials at the bellwether Ports of Los Angeles and Long Beach are bemoaning the apparent lack of a peak season. According to the Los Angeles Times, port representatives have indicated that the annual “surge in holiday cargo headed to retailers’ shelves, which usually begins in August, is still nowhere to be seen.”

Both ports reported an unexpected decrease in cargo traffic and imports in September, and attribute it, not surprisingly, to a weakened world economic recovery and the continued threat of a double dip recession.

The full article, “Cargo surge takes a holiday at L.A., Long Beach ports,” is available here.

Posted in News | 1 Comment »