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2/15/2010

Rate Changes

The following increases/adjustments are noted for your information:

Latin America

GRI: $10/ WM                                                Date Effective: 3/15/10

Australia / New Zealand Export

EFAF:

USADA (United States Australian Discussion Agreement between Hapag Lloyd, Maersk, Hamburg Sud, and US Lines) have now announced an increase in the EFAF from $644/20 and $1288/40 to $716/20 and $1432/40, effective March 15, 2010.  The new EFAF level for LCL will be $27 W/M up from $ 24 W/M.

GRI for Direct Shipments:

LCL:  $10 / WM                                            Date Effective: 2/15/10

FCL:    $250/20’                                            Date Effective: 2/15/10

$500/40’

GRI for Transhipments:

All transhipment carriers have passed on GRI’s from the USA to Australia. The GRI applicable date and rate change varies by shipping line. Please check with your local DGX sales office for more details.

BAF for Transshipments:

The BAF varies by shipping line. Please check with your local DGX sales office for more details.

Importer Security Filing (ISF aka 10+2)

On January 26, 2010, U.S. Customs and Border Protection (CBP) commenced full enforcement of the Importer Security Filing (ISF) rule. CBP stated they will initially take an informed compliance approach rather than strict enforcement. This rule has been created to improve ocean import cargo safety and security.

The following information is provided for your review:

What is an Importer Security Filing?

Before merchandise arriving by ocean vessel can be imported into the United States, the Importer Security Filing (ISF) Importer, or their agent (e.g., licensed customs broker, forwarder), must electronically submit certain advance cargo information to CBP in the form of an Importer Security Filing.

Who is responsible for the filing?

The ISF Importer is required to submit the Importer Security Filing. The ISF Importer is the party causing the goods to arrive within the limits of a port in the United States by vessel. Typically, the ISF Importer is the goods’ owner, purchaser, consignee, or agent such as a licensed customs broker or freight forwarder. It is required for the ISF agent to obtain a Power of Attorney from the ISF Importer in order to transmit ISF on the ISF Importer’s behalf.

What must be filed?

Shipments consisting of goods intended to be entered into the United States and goods intended to be delivered to a Foreign Trade Zone, ISF Importers, or their agent, must provide ten data elements along with the Bill of Lading number no later than 24 hours before the cargo is laden aboard a vessel destined to the United States. Those data elements include:

1.      Importer of Record Number / FTZ applicant identification number

2.      Consignee number

3.      Seller (Owner) name/address

4.      Buyer (Owner) name/address

5.      Ship to party

6.      Manufacturer (or supplier) name/address

7.      Country of origin

8.      Commodity Harmonized Tariff Schedule of the United States (HTSUS) number

9.      Container stuffing location; and

10.  Consolidator (Stuffer) name/address

Bond Requirements

The ISF Importer needs a bond for ISF Filing. A CBP 301 Continuous Bond may be used for the security filing requirements. The ISF importer or its agent may also obtain an Appendix D stand-alone ISF bond (single transaction or continuous).

Continuous ISF Bond: The minimum required bond amount will be $50,000. The amount of the bond is subject to increase based on the filer's violation history.

Single Transaction ISF Bond: The required bond amount will always be $10,000.

CBP301 Continuous Bond: An Activity Code 1, 2, 3 or 4 bonds may be used for the security filing requirements. The bond amount calculation for any of these activity codes will not change for the security filing requirements.

Will additional surety obligation of ISFs increase cost of CBP 301 bonds?

–        Rate increases not anticipated at this time

–        Premiums based on liability limit, higher limit will equal higher premium

–        Rates based on loss experience

–        If surety companies see significant losses as a result of ISF claims, rates may increase

 What about ISF Bonds?

–        Pricing to be determined, Depending on usage, liability limits, source of business, experience, etc. 

–        Bond Requirements are waived for the following ISF transactions; Household Goods/Personal Effects, Government and Military, Diplomatic, and Carnets.

How will the rule be enforced?

CBP may issue liquidated damages of $5,000 per violation for the submission of an inaccurate, incomplete or untimely filing. If goods for which an ISF has not been filed arrive in the U.S., CBP may withhold the release or transfer of the cargo; CBP may refuse to grant a permit to unlade for the merchandise; and if such cargo is unladen without permission, it may be subject to seizure. Additionally, noncompliant cargo could be subject to “do not load” orders at origin or further inspection on arrival.

Where Can I Find More Information?

Please visit http://www.cbp.gov/ for the latest information on the Importer Security Filing “10+2” program.  Most of the information on “10+2” can be found at the following link:

http://www.cbp.gov/xp/cgov/trade/cargo_security/carriers/security_filing/

The website includes factsheets, FAQs, and other public outreach sources.

Should you have additional questions, please contact our Import Department at 888-488-4888, Ext. 2004 or email us at laximports@dhx.com.

Thank you for your business – we appreciate it!

Sincerely,
Bradley J. Dechter
President

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