Monday Morning eBriefing

The Federal Maritime Commission today announced January 16 and 17, 2018 as the dates it will hold public hearings to receive testimony from maritime industry witnesses regarding a petition filed by the Coalition for Fair Port Practices (Petition P4-16) that raised issues associated with detention, demurrage, and per diem charges.

In CSMS message #17-000718, CBP says it "intends to provide on a national basis one additional day for payments attempted to be made on November 14, 2017. CBP will work with members of the trade community that were impacted by this outage. If needed, CBP will provide support on an individual basis and address any payment issues during this outage.

NCBFAA has been monitoring the ACE downtime over the past 24 hours. While we are pleased that CBP was able to get ACE back up and running by 11 pm ET, we have continuing questions on downtime policies and procedures, the communication channels for those downtime producers, and port uniformity of downtime procedures. For more information about the initial CBP communications, please see CSMS message #17-000714.

NCBFAA is encouraging our members to prepare for this transition in several ways. First, please move your entry filing dates up as much as possible to minimize the number of transactions CBP is processing in ACE over the deployment weekend(s). Please minimize the number entries, if possible, on the daily statements in order to control the environment as much as possible. We suggest you move your statements that are due to be paid during the deployment week up early to avoid any miscues and non-payment. Remember to alert your clients if you move their statement dates so they too can have the best information possible. We also encourage you to reach out to your client rep to make sure they will be in the office during the deployment, and find out what your contingency plan should be if they will not be there. Find your best channel of communication with CBP ahead of the deployment so you will have the best chance of success in resolving an issue should one occur during the drop. We also recommend that you reach out to your software vendors to discuss their plans and how you can be the best partner possible for them during this deployment. Again, find a good communication channel with your vendor before the deployment so you won't have to spend precious time just trying to find the right person to speak with. Finally, you may consider sending a communication similar to the following to your clients:

A number of members have reported the growing trend by several steamship lines to stop paying forwarder compensation to ocean forwarders. Some carriers have explained their rationale for doing so is that the use of IT systems to exchange shipping data has somehow reduced the importance of services provided by ocean forwarders. The NCBFAA is well aware that this is not the case and that forwarders are often required, for example, to correct data entry errors made by the carriers, just to mention one of the key services that forwarders provide. Other carriers have provided no explanation and just take the position that they won't continue to pay compensation and simply eliminate their tariff rule providing for the payment of compensation.

Consumers should work with licensed international shipping companies when shipping personal effects and automobiles overseas. Unlicensed companies are not authorized to provide international ocean shipping services. Recently the Commission received questions and complaints about these companies shipping cargo and household goods primarily between the U.S. and Brazil:

We have previously reported that the NCBFAA, in conjunction with a large number of other trade associations, that was collectively referred to as the Coalition for Fair Port Practices, filed a petition with the FMC raising issues associated with detention, demurrage and per diem charges assessed during periods of port congestion. Essentially, the NCBFAA and the Coalition requested the FMC to establish an interpretive rule that would require the carriers and ports to extend the number of free days accorded NVOCCs and cargo interests during those periods when congestion, severe weather, or other issues prevented parties from timely picking up or returning containers to the ports and the carriers.

In our communications with CBP about several questions that we have posed about the Inbond Final Rule we have been told that the requirement for supplying the HTS number on the inbond transmission postponed and will not be required on the effective date of November 27, 2017. CBP will be issuing a Frequently Asked Questions (FAQ) to the Trade to explain this change and other issues from the FRN on the final rule. We expect the FAQ to be issued this week.

NCBFAA RAC member, Myra Reynolds with the John S. James Co. recently analyzed the FCC's newly effective rules related to the authorization of radiofrequency devices. She had composed the attached summation of the rule provisions to help members to better understand this complex rule and assist them in conveying some of the new requirements to their clients

The Commercial Customs Operations Advisory Committee (COAC) held a quarterly meeting last week, November 14, in Washington, DC and NCBFAA President Geoff Powell and Vice President Amy Magnus were in attendance. The following day, Mr. Powell, as well as the Officers, Board of Directors and Committee Chairs attended another Strategic Planning discussion. On Thursday, November 16, Mr. Powell spoke at the Customs Brokers & International Freight Forwarders Association of Virginia in Norfolk.

Earlier this year, during the quarterly Board of Director's meeting, a decision was reached by our Board of Directors regarding 2018's membership dues. There will be a 5% increase next year due to the increase and need for advocacy over the last year and the rising costs associated to remain in a position in which we can address the challenges and opportunities within our industry. We strive to improve on the value we bring to our members. Here are just a few examples of value we've added to your company and our industry over the last year:

The NCBFAA Customs Committee is looking for a volunteer to be our BKIP Champion. We need BKIP to become widely adopted by our membership and widely recognized in the trade. A champion to head up this effort-either working as a committee of one or with friends and allies--will work to promote understanding of the program with our members, encourage use of the program, and work with the NCBFAA on promotional activities.

CBP's automated Customs Broker Exam administered on October 25 experienced system latency and performance deterioration. Working with its contract exam provider, CBP is identifying and addressing the technical issues that caused these problems. Long term system remediation is underway. The NCBFAA will be discussing the situation with CBP senior management early this week.

NCBFAA President Geoff Powell and NEI Executive Director Kiko Zuniga recently attended the ASAPRA meeting in Cartagena, Colombia. Todd Owen, Executive Assistant Commissioner, Office of Field Operations, addressed the group and then spent some time talking to both on a number of issues. At the 2017 Government Affairs Conference, Alfonso Rojas, the President of ASAPRA, addressed the attendees on the important work of ASAPRA in central, South America and North America. ASAPRA now has been appointed to the Private Sector Consultative Group (PSCG) at the World Customs Organization (WCO), an additional path for the NCBFAA to be present and represented at the WCO. Mr. Powell, as well as Rich Roche and Kristine Little, attended the FMC Sunshine meeting. At the meeting, Mr. Powell was able to speak with all the Commissioners and the Chairman on a variety of topics. They thanked Commissioner Dye and Acting Chairman Khouri for their great work in moving this NPRM forward. As Commissioner Dye and Acting Chairman Khouri said, the NPRM is a very positive step in the right direction, but we are not finished with deregulation to bring greater efficiencies to the supply chain.

NCBFAA President Geoff Powell urged Congressional trade leaders to renew GSP before it expires on December 31, 2017. The letter to House Ways and Means and Senate Finance Committee leaders pointed out to lawmakers that, if the GSP program is allowed to lapse, "companies will face an estimated $75 million in duties on imports from GSP countries each and every month until the program is renewed!"

On December 9, ACE will become the only CBP-authorized EDI system for generating, transmitting, and updating daily and monthly statements for all entries except reconciliation (type 09) entries and the ACS will be decommissioned for such purposes. However, until reconciliation entries are filed in ACE, statements for reconciliation entries will continue to use ACS.

FDA recently issued a memo addressing Division of West Coast Imports communication and a factsheet providing a status update on the new ITACS functionality. The Division of West Coast Imports new communication directive outlines the correct format that parties must follow when contacting West coast ports through a central e-mail address.

BIS along with the Department of the Treasury's Office of Foreign Assets Control and the Department of State are taking coordinated steps to implement portions of the National Security Presidential Memorandum on Strengthening the Policy of the United States Toward Cuba. Included in these actions is a BIS rule to amend the licensing policy for Cuba and portions of three license exceptions available for exports and reexports to Cuba: License Exceptions Gift Parcels and Humanitarian Donations, Consumer Communications Devices, and Support for the Cuban People.

President Geoff Powell announced that NCBFAA has joined the U.S. Global Value Chain Coalition -- a newly formed coalition of companies and trade associations whose mission is to educate policymakers and the public about the American jobs and economic benefits generated by companies in the global supply chain.

The FMC invites comments on its recently released Initial Draft Strategic Plan for FY 2018-2022 (draft Plan). Comments on the Commission's draft Plan must be submitted on or before December 6, 2017.