Trans American

Trans-Pacific Carriers Cutting Capacity at the Front End of Peak Season

China Cosco Shipping, the G6 Alliance, and Ocean Three Alliance/Hamburg Sud AAE 3, have all cut back capacity on moves from China to the U.S. Shipping analyst Alphaliner said, “Carriers appear to have overestimated the demand growth for trans-pacific cargo and they are now forced to belatedly scale back capacity provision, total capacity removed will reach 16,000 TEUs per week, resulting in a 1 percent year-on-year reduction in overall trans-pacific capacity.” The timing of the reduction in capacity is surprising as it comes at the start of the traditional summer peak season, this suggests that carriers are intensifying efforts to manage overcapacity amid low spot rates after the conclusion of a tough contract season, where carriers took a huge hit on pricing.

New U.S. Customs Regulations Needed to Address Major Changes in Drawback

The Trade Facilitation and Trade Enforcement Act of 2015 as enacted on February 24, 2016, included major changes to Drawback. The new provisions take effect February 24, 2018, and allow for an additional grace period of one year, until February 24, 2019. Changes include simplification of the drawback law, including the time frames for filing drawback and modernizing the claimant recordkeeping requirements.

Trade Facilitation and Trade Enforcement Act of 2015, Increase in the De Minimis Value Exemption

U.S. Customs & Border Protection (CBP) has recently released a Fact Sheet on the increased de minimis value threshold. The Act of 2015 included an amendment for Section 321 releases which increased the de minimis value exemption from duties and taxes from $200 to $800. In order for imports to be processed under a Section 321, the Customs Invoice must include a clear designation of a Section 321 release to be processed, and the carrier must complete their e-Manifest with a release type of Section 321. CBP implemented the change on March 10, 2016. CBP Fact Sheet:

https://www.cbp.gov/sites/default/files/assets/documents/2016-May/TFTEA-Increase%20in%20the%20De%20Minimis%20Value%20Exemption.pdf

World Customs Organization Tariff Classification Rulings, Changes to Explanatory Notes, and Amendments

The World Customs Organization (WCO) released on June 3, its latest tariff classification rulings, as well as changes to the Harmonized Tariff System Explanatory Notes, and amendments to their Compendium of Classification Opinions. WCO detail on same:

http://www.wcoomd.org/en/media/newsroom/2016/june/~/link.aspx?_id=5E7F80AA4413497E9F7A4F8116A163C4&_z=z

U.S. – Canada Border Crossing on the Rise

The three largest U.S.-Canada borders, Detroit, Port Huron, and Buffalo have had a 6.2 percent increase in crossings during the first three months of this year. This is substantial considering in 2015 the increase was only 1 percent. If the U.S. begins allowing “in transit” shipments again, border crossings will increase even more. An “in transit” shipment is when a driver is allowed to pass through the U.S. or Canada without presenting customs documents to save time and miles. For example, it is faster to drive through Canada than to stay in the U.S. when going from Michigan to New York. Since the terrorist attacks of September 11, 2001, the U.S. has treated these pass through shipments as international customs moves that require full documentation. There is a study being conducted currently to evaluate the security of allowing these “in transit” moves again. Additional details are available at:

http://www.joc.com/trucking-logistics/us-canada-cross-border-freight-demand-puts-pressure-crossing-points_20160606.html

Agriculture Quarantine Inspection (AQI) Treatment Monitoring Fees

The Animal and Plant Health Inspection Service has posted an FAQ on their new Agriculture Quarantine and Inspection (AQI) fees for treatment services. The FAQ is available at:

https://www.aphis.usda.gov/import_export/plants/plant_imports/aqi/downloads/treatment-user-fees-faqs.pdf

Canada – U.S. Softwood Lumber Trade Talks

As reported in the Globe and Mail, Canada and the U.S. continue to meet over the softwood lumber issue, but progress is not being made and sources believe that the issue may end up back in court. Full article as in the Globe and Mail is available at:

http://www.theglobeandmail.com/report-on-business/economy/us-canada-softwood-lumber-talks-stalled-litigation-looms-sources/article30393552/