Trans American

Food Supplier Verification Program (FSVP), Canada — U.S. Comparability Agreement

On May 4, the U.S. Food & Drug Administration (FDA) advised that the U.S. and Canada signed an agreement recognizing the comparability of each other’s food safety systems. The agreement means that importers of most food from Canada will be largely exempt for the requirements of FDA’s Foreign Supplier Verification Program. FDA Constituent Update is available at:

http://www.fda.gov/Food/NewsEvents/ConstituentUpdates/ucm498611.htm

Shipper & Trucker Relationships

A study of 1 million truckload transactions has indicated that giving more lead time to truckers or third party logistics providers can help reduce overall transportation costs. The reason behind this savings is if given enough lead time the shippers preferred trucking company will have the proper capacity to handle a load but if less lead time is given shippers will have to rely on second or third preferred carrier with higher pricing. Currently there is excess capacity in the trucking industry but this could all change very fast so it is important to establish a good working relationship with preferred carriers. Additional details are available at:

Journal of Commerce:

http://www.joc.com/trucking-logistics/ltl-shipping/fragmented-us-trucking-market-challenges-shippers_20160511.html

C-TPAT (Customs-Trade Partnership Against Terrorism) Notice

C-TPAT, which was launched by U.S. Customs (CBP) in 2001, is a voluntary, incentive based security program. C-TPAT criteria for Importers is risk based, flexible and designed to help CBP achieve its twin goals of security and facilitation. It is important the Importers who are not C-TPAT already, to at least once a year review this matter and the feasibility of becoming a C-TPAT member. Your Trans American Account Manager can assist you in the process. Significant benefits exist for C-TPAT members, they include: (1) Reduced number of CBP inspections. (2) Priority Processing for CBP Inspections (Front of the line processing for inspections when possible). (3) Assignment of a C-TPAT Supply Chain Security Specialist that will work with your company. (4) Potential eligibility for CBP Importer Self-Assessment program on self-policing, not CBP Audits. All Trading Partners, whether a C-TPAT (Customs — Trade Partnership Against Terrorism) member or not, are reminded of the criticality of having security procedures in place at the point of stuffing, procedures to inspect, properly seal and maintain the integrity of the shipping containers and trailers. It is recommended that Trading Partners conduct periodic reviews with their personnel of the seven-point inspection process for empty containers prior to the loading the cargo, as well as the seventeen-point inspection process for all trailers/tractors. Further information for C-TPAT members can be found at the C-TPAT portal. Non-members can call their personal account managers for more information. Please be reminded that all loaded U.S.-bound containers and trailers for a C-TPAT Importer must have high security seals that meets or exceed the current PAS ISO 17712 standards. In addition, procedures must be instituted for identifying and reporting compromised seals to CBP or the appropriate foreign authority. If you are a current and valid C-TPAT member, we ask you to provide your Trans American Account Manager your Status Verification Interface (SVI) Account number so our records are current. If you have previously provided your SVI number to Trans American, and there has been a change in your status for C-TPAT, please advise your Trans American Account Manager. Further detail on the above and other information on C-TPAT can be found at:

http://www.cbp.gov/border-security/ports-entry/cargo-security/c-tpat-customs-trade-partnership-against-terrorism

THE Alliance

Ocean carriers Mitsui O.S.K Lines, NYK Line, “K” Line, Hanjin Shipping, Hapag-Lloyd and Yang Ming Line announced a new alliance covering all east-west trade lines called THE Alliance. Subject to regulatory approval, the agreement would begin in April 2017 and would compete with alliances 2M and the Ocean Alliance. THE Alliance accounts for 18% of global container fleet capacity. Additional details:

http://www.joc.com/maritime-news/japan-carriers-join-hapag-lloyd-yang-ming-and-hanjin-new-alliance_20160513.html

Canada Customs Expanding FAST Eligibility and Lanes

Free and Secure Trade (FAST) is a joint Canada — U.S. initiative to enhance border and trade chain security while making cross-border commercial shipments simpler and subject to fewer delays. The requirements to access the FAST lanes vary between the two countries as each is administered independently. Canada Customs hopes to expand membership and use of the FAST lanes by relaxing the criteria and will be adding additional FAST lanes in 2017 and 2018. Full detail is available at:

http://news.gc.ca/web/article-en.do?nid=1064479&tp=930