Trans American

Importer Security Filing (ISF) Enforcement

ISF is required on most ocean imports destined to the U.S. Non compliance with ISF requirements can lead to liquidated damages (penalties) to the Importer. For shipments that are on the water on or after June 30, 2016, U.S. Customs will no longer be required to send requests for liquidated damages (LD) claims to Headquarters for review, and the “three-strikes” approach to LD claims against importers’ bonds will also end. There is no change to cargo holds for ISF non-compliance; ports may hold cargo instead of (or in addition to) initiating LD claims. Headquarters has instructed ports to continue to focus on “significantly” late ISF shipments. Maximum penalty per ISF violation is $5,000.

https://www.cbp.gov/sites/default/files/assets/documents/2016-Jun/Vol_50_No_24_title.pdf

SOLAS Mandate & U.S. Rail Exports

Brexit Impact on Container Shipping

The decline of the U.K. as a container shipping hub began before the vote for the U.K. to leave the European Union.  British flagged vessels account for only 3.7 percent of the global capacity.  U.K. imports, especially from Asia, are expected to decrease in the short term due to the devaluation of the British Pound since the announcement.  The risk of an economic downturn in Europe in general will however put further stress on the container supply and demand imbalance.  This year global container supply will grow 3.6 percent while demand only expected to grow 1.3 percent. Additional details are available at: http://www.joc.com/economy-watch/world-economy-news/brexit-have-minimal-impact-container-shipping-alphaliner-says_20160629.html

No Increase in the Merchandise Processing Fee This Year

U.S. Customs (CBP) posted in their June 15 Customs Bulletin that they will not increase user fees, including the Merchandise Processing Fee, in 2016.  A surface transportation funding bill from last year allows for the increase in fees based on the Consumer Price Index (CPI).  The law allows for Treasury and CBP to decline to raise the fees if the yearly CPI increases by less than one percent from fiscal year 2014.  For full Customs Bulletin detail on this matter, see page 13 at the following link: https://www.cbp.gov/sites/default/files/assets/documents/2016-Jun/Vol_50_No_24_title.pdf

SOLAS Mandate & U.S. Rail Exports

It remains unclear how containers moving to a marine terminal for export via on-dock intermodal rail ramps will be weighed to comply with the SOLAS verified gross mass mandate taking effect July 1.  It has been confirmed that some terminals do not have the equipment to weigh containers arriving via on-dock rail.  Shippers are urged to verify weights themselves for these exports.  Carriers are currently working on a solution to this issue and have indicated that further details and guidelines will be released. Additional details:http://www.joc.com/maritime-news/container-lines/solas-process-weighing-us-exports-moved-still-work-progress_20160628.html

Food & Drug Administration (FDA) Updated Guide on Prior Notice of Imported Food

The FDA has posted an updated “Prior Notice of Imported Food Questions and Answers (Edition 3): Guidance for Industry” at their website.  Significant changes have occurred since the last Guidance was posted in 2004.  Link to updated 2016 Guidance: http://www.fda.gov/downloads/Food/GuidanceRegulation/GuidanceDocumentsRegulatoryInformation/UCM505851.pdf

Trade Groups Call for Congress to Re-Evaluate the 100% Scanning Mandate

A letter has been sent to Jeh Johnson, Secretary of Homeland Security, requesting that Congress re-evaluate the 100% cargo inspection mandate as part of the Security and Accountability for Every Port Act of 2006.  The letter, as signed by a wide range of trade associations is available at:  https://www.wewear.org/assets/1/7/customs100_scanningltr160620.pdf

Canadian Truckers May Face U.S. Tax Collectors

As reported in the Huffington Post Canada, new border rules have Canadian truckers fearing U.S. tax collectors.  Planned new border security measures may lead truckers into a complicated maze of U.S. laws that will lead to tax collection and possible immigration difficulties.  Per David Bradley, President of the Canadian Trucking Alliance, “This could cause some truckers to exit the market, creating potential capacity shortages in the transborder trucking space”.  The Huntington Post Canada full article is available at: http://www.huffingtonpost.ca/2016/06/25/canadian-truckers-wary-new-border-measure-will-cause-collision-with-u-s-laws_n_10670980.html?ir=Canada+Business