Monthly Archives: July 2014

What Every Freight Forwarder should Know about Global Customs Trends

global customs trends

Global Customs Trends – Advance Manifest Filing


1. Background

On June 2005, following the 911 terrorist attack in the US, World Customs Organization (WCO) presented a standard for cooperation between customs and private sector including AEO by upgrading the previous programs and practices into WCO SAFE Framework to Secure and Facilitate Global Trade (hereinafter “SAFE Framework”), with a view to ensuring that its member states improve trade security and efficiency. The SAFE Framework stipulates that WCO member states require electronic declaration of detailed maritime container cargo information prior to its loading at the port of departure.


2. Status of International Organizations and Major Countries

WCO, the US, EU, and Japan are pushing for cooperation among nations and coming up with a series of measures in response in order to strengthen security for import and export freight.
Table 1. Logistics Security Programs Implemented in Major Countries

Country

Related agency etc.

Program

Date of implementation

The US

U.S. Customs and Border Protection(CBP)

Automated Manifest System(AMS)

+

Import Security Filing(ISF) Regulation

* AMS

- August 13, 2004:
18 eastern states
(including New York, Washington, and Atlanta)

- October 13, 2004:
20 central states
(including Chicago and Dallas)

- December 13, 2004:
12 western states
(including L.A., San Francisco, and Anchorage)

 

* ISF – January 26, 2010

Canada

Canada Border Services Agency(CBSA)

Advance Commercial Information(ACI)

April 19, 2004

China

China Customs

China Customs Advance Manifest(CCAM) Regulation

January 1, 2009

Europe

EU Regulation 1875/2006

Entry Summary Declaration(ENS)

January 1, 2011

Japan

NACCS

Advanced Filing Rule(AFR)

March 1st, 2014

 
(1) The US

In the wake of the September 11 attacks, the United States created the Department Homeland Security (DHS). US Customs Service, previously with the Department of Treasury, was transferred to DHS, with its name changed to US Customs and Border Protection (CBP). The US has adopted cargo security programs such as C-TPAT, CSI, and 24-hour rule, and seeing greatest risks in cargo transported in maritime containers, continues to expand the implementation of 24-hour rule in the entire world, with a view to eliminating hazards before a cargo bound for the US is loaded on a ship in a foreign country. Especially since SAFE Port Act 2006 was established in 2006, the US has added new several kinds of security programs, which are spearheaded by the enforcement of 100% cargo scanning in 2007 and of the ’10+2′ program in early 2008.
 

(2) EU

In its turn, EU adopted Entry and Exit Summary Declaration and Authorised Economic Operator (AEO) through the amendment of the Implementing Provisions of the Community Customs Code. With regard to securing safety for international supply chain, EU member states can grant the AEO status to any economic operator meeting the EU’s security requirements, while an AEO is thus allowed to benefit from customs simplifications including exemption of customs procedure in all EU member states and benefit from facilitations with regard to the customs controls relating to security. Also, EU customs has enforced ’24-hour advance manifest rule’, starting Jan. 2009. Meantime, EU is going to implement ’10+2′ program, additionally required with importers and shipping companies by the US Customs and Border Protection, and is also planning to adopt GTX (Global Trade Exchange).
 

3. Logistics Security Program ― Advance Cargo Manifest Filing

Advance cargo manifest filing by freight forwarders is applied in various ways in different countries. WCO provides relevant regulations in Pillar 1, while the US began a related program in accordance with US Code on Commerce and Trade in 2002. Furthermore, EU includes a relevant regulation in Implementing Provisions of the Community Customs Code, which stipulates that for import cargo in EU, Black Sea, and the Mediterranean, an advance manifest must be filed 2 hours prior to arrival at the first port in EU while for export cargo, an advance manifest must be filed 2 hours prior to departure from the first port in EU. Regulations on advance cargo manifest filing are as follows.
 
Table 2. Regulations on Advance Cargo Manifest Filing

Category

The US

EU

WCO

Maritime transport

Container cargo for import

24 hours before shipment at a foreign port

24 hours before shipment at a port of departure

 

Container cargo for export

24 hours before departure from a US port of shipment

24 hours before vessel loading departing from EU

24 hours before shipment at the port of departure

Bulk cargo / break bulk cargo for import

Bulk: 24 hours before arrival to the port

Break bulk: in accordance with application for exemption from 24-hour rule

4 hours before arrival at the first EU port

24 hours before arrival at the first port in the country of destination

Bulk cargo / break bulk cargo for export

24 hours before departure from a US port of shipment

4 hours before vessel departure from an EU port

 

Air transport

Short-distance flight for import

Immediately after takeoff from the port of exit before arrival in the US

Immediately after takeoff

At takeoff

Short-distance flight for export

2 hours before departure from the US

 

 

Long-distance flight for import

2 hours before arrival in the US

4 hours before arrival in the first port of entry in EU

4 hours before arrival at the first port of entry in the country of destination

Long-distance flight for export

2 hours before departure from the US

30 minutes before departure from an EU port

 

 
 
From our next issue, we will take a closer look at key details of advance cargo manifest filing with customs in different countries.
 
 
world customs history since 2004

Customs History in Major Countries

 
Posted by Ki-Nam Kim, a solution specialist, who has researched and developed business solution related to customs and logistics.

Have something to say about the global customs trends or customs filing? Leave a comment below. 

3 Ways for Bulk Carriers to Improve its Profitability in Bulk Shipping

bulk carrier shipping


Continuing effort to cut down on cost and improve profitability for bulk carriers
 

With BDI sharply falling through recent years of economic depression, global shipping business is involved in cut-throat competition for survival. With both demand and supply in shambles, we cannot expect BDI to rise quickly. For the second half of the year, however, we have some positive prospects for a gentle recovery in bulk carrier market. So, it is now up to bulk carriers to not fall behind this trend and respond nimbly. 
Surviving tough times places a high priority on securing cost competitiveness. Hence, bulk shipping companies have sought ways to cut down on costs and enhance profitability. Then, what should we do to maintain profit margins while reducing costs and risks? 

 

1. Linkage with diverse information for cost reduction

The most efficient cost reduction method should be not generating unnecessary costs. If we take full advantage of the specialized technical data such as port distance table from Netpas and weather information from Weather news and apply it to management of ship navigation, we can predict actual costs and calculate optimized sea routes. With this prediction, we can reduce sailing distance and prevent wasting fuel to help cut down on a shipping company’s cost. Also, with regard to bulk shipping, a comparative look at regional prices for fuel and port expenses would help reduce costs.

 

2. Automation and process organization

Automation reduces the burden of manual work for the employees of shipping companies and enhances work efficiency. It directly links to the system various reports coming from the vessel, thus making possible an efficient and accurate management of navigation records. Especially if we get away from work relying on manually handled Excel files and create database for various data, it can not only ensure operational continuity among employees, but also easily incorporate desired data into reports or reduce time for account settlement.

 

3. Upgrading balance management

Based on data obtained through automation, information at the beginning, at the completion of shipment, and at the final stage should be compared to analyze causes of changes in profitability. With such analytical data, a shipping company can manage balance for different voyage numbers, vessels, or customers, and contract history, which can upgrade business competitiveness for a bulk carrier. 

 

As an IT company specializing in shipping, port, and logistics and from years’ experience, CyberLogitec clearly understands the problems facing the shipping and logistics industry and possesses various solutions that could improve work efficiency for related companies.

 

Among others, the software solution for bulk shipping companies boasts the following features.

  • Performance management as against a plan through management of project-specific plans
  • Analysis of closed deals and implementation of contracts
  • Maximized use of data through linkage among navigation, performance, and analytical data from specifics of profitability review
  • Voyage phase-specific analysis from initial profitability, completion of shipment, and completion of a voyage number
  • Invoice management and automatic accounting fit for business characteristics
  • Effective interface with other accounting systems

Have something to say about profitability issue in bulk shipping? or Do you like to know more about our solutions? Leave a comment below. We’ll get back to you as soon as we can.

 

Posted by Seung-Hee Seo, a Business strategist, who has made business plans and researched the maritime industry including container and bulk shipping.