Noticeboard
Pool Ammunition and Explosives Sailing 1/2010
Europe/North & South America/New Zealand/Australia
1. Having reviewed currently known cargo and readiness dates, we are now working towards the following programme:
-Load Europe: mid to end April (target in Europe is now the week 19 - 25 April)
-Discharge / Load North America: early to mid May
-eta Manzanillo International Terminal, Panama: end May (On inducement)
-eta Paita, Peru: end May (On inducement)
-eta Puerto Angamos, Chile: early June (On inducement)
-eta Kauri Point, Auckland, New Zealand: end June
-eta Port Alma, Qld, Australia: early July
2. Timings in the Southern Hemisphere depend on whether we are induced to call on the West Coast of South America en route to New Zealand and Australia.
3. Please continue to let us know the details of any cargo you may have for Voyage 1/2010 including the likely readiness dates and significant timing factors. We intend to update the programme in mid March.
US EXPORT GUIDANCE
Implementation
The regulations for automated filing of export information, along with subsequent penalties for late filing, were issued under a new Foreign Trade Regulation (FTR), which became effective on 2 July 2008. However, the US Census Bureau allowed an additional 90 days (until 30 September 2008) for the trade community to comply with the requirements. Full implementation commenced on 1 October 2008 and any late filing of export information after this date will prove to be a costly proposition.
SED
As of 1 October 2008, the Shipper’s Export Declaration and its abbreviation SED no longer exists. Export trade data is now referred to as Electronic Export Information (EEI) and, wherever the term SED was used previously, the term AES EEI is now used in it’s place.
AES Filing Timeframe
AES filing timeframe varies according to method of transportation. For cargo that will load to Ridgeway vessels, exporters, or their authorised forwarder, must file Electronic Export Information using the AES and provide proof of an AES Citation Number or Exemption Legend to Ridgeway 24 hours prior to loading of the cargo to the vessel at the U.S. port. Effectively, all relevant EEI data will have to be filed by the exporter sufficiently ahead of time (suggest 72 hours) to allow input of the data, its transmission through AES and then sending the ITN reference statement to Ridgeway and/or vessels port agent before the cut-off date/time (see CBP requirements below).
AES Filing Changes/Corrections
It is not yet clear how changes in shipping times will affect the filing period and therefore any penalties, but the new rules do say that all corrections, cancellations or amendments to the EEI, should be transmitted to AES as soon as they become known. It is important to note that exporters will have to work closely with Ridgeway in order to accomplish the timely transmission of any amendment, as any late filing penalties will fall on both parties.
Penalties
A civil penalty will not exceed $1,100 for each day late beyond the applicable period prescribed but no more than $10,000 per shipment may be imposed. Another consequence where ITAR cargo is concerned is that the cargo may not be allowed to be loaded to the vessel, or if it has already been loaded, the vessel may not be allowed to sail and de-murrage may become payable by the exporter. Consequently, all exporters should ensure that processes are firmly in place to allow timely and accurate reporting of all export information. The cost of not doing so could be substantial for all parties concerned.
United States Customs and Border Protection (CBP)
During Pool Sailing 1/2008 (MV Skaftafell), discussions took place at Wilmington NC, between Ridgeway representatives and the US CBP. A number of concerns were raised by the CBP regarding DSP-5/DSP-94 export licences and the timescales for AES EEI filing with particular emphasis on the timescales for lodging these with US Customs.
It is essential that the CBP at the port of exit for the shipments covered under the export licences, be satisfied with the manner in which the licences have been lodged. A number of recommendations were put forward by the CBP, which are intended to expedite the customs process and avoid any possible violations, fines or holds on the export of the cargo and/or sailing of the vessel, summarised as follows:
Form DSP-94 (Authority to Export Defence Articles Sold Under the FMS Programme)
a. Form DSP-94 is the authority to export defence articles sold under the FMS programme. The CBP at Wilmington has encountered many difficulties attempting to identify which cargo is covered by which DSP-94 licence. In order to assist the CBP, it is requested that Export Licence Numbers be forwarded to Ridgeway in advance so that the ship’s manifest, which is lodged with CBP prior to sailing, identifies individual cargoes against corresponding export licence numbers. It is also recommended that an AES EEI entry be filed for each separate DSP-94.
b. Government directives authorise that Electronic Export Information (AES EEI) must be filed with US CBP at the port of export 24 hours prior to vessel lading. CBP can only decrement a shipment on the DSP-94 after the export information has been filed correctly using AES. However, CBP often discover that the DSP-94 has been lodged at a different port of exit and their efforts to track this down inevitably leads to delays. Suffice to say, the possibility of delays does not allow a reasonable amount of time for Customs Officers to check that Shippers are exporting exactly what they say they are exporting, especially if large numbers of containers are being shipped. In order to allow CBP at the port of exit sufficient time to track down the appropriate DSP-94, to make the decrementation and check the cargo, Shippers are requested to submit AES EEI entries at least 72 hours prior to cargo lading at the port of exit.
c. The AES EEI must clearly show:
i) DSP 94 Licence Number
ii) Where it is lodged
iii) Expiration date
iv) Decent description of cargo to allow decrement to be done
v) Value in USD of cargo to be exported
vi) Quantity (piece count) and Weight
vii) The correct port of lading for the cargo being exported
d. It is recommended that 1 AES EEI entry is filed per export licence (e.g. DSP-5 or DSP-94).
Form DSP-5 (Authority for Permanent Export of Unclassified Defense Articles)
a. Unlike the DSP-94, which is a hard copy document, original DSP-5s are electronically produced in the form of an emailable PDF document (although a hard copy must be still be lodged with the CBP at the port of exit when the licence is first used). This makes the DSP-5 more easily traceable and poses fewer problems for the CBP when they need to check the export licence against the AES EEI filing and cargo quantities. However, commercial shippers are requested to submit AES EEI entries at least 72 hours in advance of cargo lading in order to satisfy the requirements of the CBP and importantly, to avoid any possible Customs hold or seizure.
b. The piece count on the DSP-5 should match, or exceed, that on the commercial invoice and should never be less than what is stated on the invoice.
Strict compliance with above should ensure that US CBP are given sufficient time to check both the documentation and the cargo and avoid any complications with the export process.
Pool Explosive Sailings Contact Information
For further information on the Ridgeway International Pool Explosive Sailings, please link to our website:
http:/www.ridgewayintl.com
Tel No: - +44 (0)1491 839780
Fax No: - +44 (0)1491 839765
To enable us to get information to you more timely, please send your e-mail address to:
ril@ridgewayintl.com
Please include in the message the name of the company and the name of the contact person(s).
IMPORTER SECURITY FILING - 10+2
In 2002, following the tragic events of 9/11, the US Customs and Border Protection (CBP) issued new regulations whereby ocean carriers and non-vessel owning common carriers (NVOCCs) are required to electronically file manifest data via the CBP Automated Manifest System (AMS), at least 24 hours prior to lading on a vessel at a foreign port.
Further to this and in order to provide a more accurate risk assessment of imported goods to the USA, Congress passed the Safe Port Act in 2006, which mandated that ten additional data elements and two new message types had to be submitted to CBP for all ocean shipments. This new regulation is commonly known as “10+2”.
The ‘10’ data elements required by the new regulation create what is called the Import Security Filing (ISF), 8 of which are required to be submitted by the importer or importer’s agent at least 24 hours prior to cargo being loaded in a foreign port, which includes.
1. Manufacturer name and address
2. Seller name and address
3. Buyer name and address
4. Ship to name and address
5. Importer of record, Foreign Trade Zone (FTZ) applicant identification number (IRS,
SSN, Customs Assigned)
6. Consignee identification number (IRS, SSN, Customs Assigned, CBP encrypted ID)
7. Country of origin where goods were manufactured, produced or grown
8. Harmonized tariff schedule at minimum 6-digit level
The remaining 2 elements of the ISF must be submitted as early as possible, but no later than 24 hours prior to the vessel’s arrival at the US port, as follows:
9. Container stuffing location
10. Consolidator (Name/address of the party who stuffed the container or arranged the stuffing)
The ISF 10 are to be filed for all inbound cargo with the exception of Freight Remaining On Board (FROB), goods moving on an Immediate Exportation (IE) or Transportation and Exportation (T&E) bond.
For ocean cargo types FROB, IE and T&E only 5 data elements are required, as follows:
1. Booking party name and address
2. Foreign port of unlading
3. Place of delivery
4. Ship to name and address
5. Harmonized tariff schedule at minimum 6-digit level
The ‘2’ part of “10+2” refers to two additional message types that are to be submitted to CBP by the ocean carrier where cargo containers are destined for the USA, as follows:
1. Container Status Messages referencing the disposition of a container
2. Vessel stow plan
The interim final rule was published by the US CBP on 25 November 2008 and will take effect 60 days after publication. Hence, this regulation will become effective on 26 January 2009. However, the interim final rule allows for a 12 month phase-in period, whereby CBP will show restraint in enforcing the rule and work with parties to achieve the required compliance levels. After this period, CBP has proposed significant penalties for non-compliance with the regulation for both the principal and surety. Failure to comply with ISF requirements could result in damages equal to the value of the cargo involved and holds being placed on cargo on arrival in the USA.
Ridgeway recognizes that the additional ISF requirements will significantly impact on resources and workloads for all parties involved with the filing. As per all previous Pool Explosive sailings, Ridgeway International will continue to submit AMS data and in addition, will now work closely with all Importers and Exporters in order to ensure strict compliance with the new ISF regulations. RIDGEWAY WILL SUBMIT THE APPROPRIATE DATA TO THE CBP IN CONJUNCTION WITH AND ON BEHALF OF ALL INTERESTED PARTIES. Further news on the implementation will be passed on to all our customers, as we receive it.
American/British Management
The Ridgeway Group is owned and directed by an American and British management team. This reflects the increasing transatlantic integration that is taking place in the international defense market and enables management decisions to be based on a thorough understanding of the US and European defense sectors.
Ridgeway USA Inc. is based in Plattsburgh, NY. Its mission is to support the international transportation requirements of the Department of Defense and US defense contractors.
The Ridgeway International Ltd team in Wallingford, UK has considerable combined experience in the safe, secure and legal movement of explosives, munitions and security classified materials. They have extensive links with European government transport agencies such as NAMSA and the UK MOD and with major European aerospace companies such as BAE Systems, MBDA, Thales and Saab Bofors.
The medium/long term strategy is to take the group forward to consolidate the gains and experience which have been achieved over the last 30 years by operating and thinking more as an international group. Lessons learnt in North America can be applied in Europe and vice versa.
