November 2006| Issue 46


In This
Issue:

>The Need for Regulatory Defense:
Combined Transit Liability (CTL) Program

>Port Security Bill Passes

>NCBFAA Government Affairs Conference

>Truck Claims and Loss Prevention:
LGIC Seminar Highlights

>International Truck Show:
Highlights and Truck Insurance

>CBP Update:
Enhanced Bonding Requirements

>Increasing Premiums for E&S Lines

>Claims Corner:
CTL Program

Events Calendar:

November 11 - 14
Transcomp
Ft. Lauderdale, FL

December 13 - 15
Trade Symposium
Washington, DC

 

NCBFAA Government Affairs Conference

Avalon Risk Management, Inc. joined NCBFAA members when they lobbied Congress during their Government Affairs Conference (GAC) Sept. 17-20 in Washington, D.C.

The GAC is the one time during the year when industry professionals meet at the Capitol to exchange ideas, hear from government officials on new programs, promote changes to current programs and bring trade issues to the attention of Congress. This year’s attendance was the highest since 2000, with more than 100 members participating.

On Monday, members attended seminars regarding government and industry issues. They also held a keynote luncheon featuring U.S. Customs and Border Protection Commissioner Ralph Basham as the guest speaker.

“CBP’s partnership with the trade community is the key point to reaching its goals,” Basham said during the luncheon, praising the NCBFAA for helping in security.

Basham also discussed his plan to keep security and trade linked together, mentioning how CBP looks to the trade industry for advice on how to handle issues and assistance in educating Congress.

“The Customs Brokers and Foreign Freight Forwarders Association of Chicago (CBFFFAC) is dedicated to staying in touch with our congressmen and women. Our legislative chairman sends correspondence regarding the issues that are important to the trade in Illinois on a regular basis.  We want to make sure our Illinois legislators are informed when issues come up for a vote,” said CBFFFAC President, Mary Peglow.

The generalized system of preferences (GSP), duty drawback and port security were the three main position papers the NCBFAA brought to Congress, and locally, the CBFFFAC discussed rail infrastructure issues within Illinois.

 GSP is a trade program designed to promote economic growth in developing countries and allow smaller U.S. companies the opportunity to become more competitive with cheaper raw materials. NCBFAA members promoted the extension of the program, which expires on December 31.
Duty drawback is an export incentive program giving U.S. companies a refund of 99 percent of duties paid on imported goods, which are then exported or used to manufacture goods for export. The current drawback statute is difficult for CBP to administer and many want simpler procedures.
Both the Senate and the House of Representatives recently passed a port security bill. The NCBFAA urged Congress to realize that 100 percent physical inspection of all containers entering the U.S. would completely halt trade. Members persuaded politicians to support a layered approach to security, with 100 percent security screening rather than inspection, informing Congressmen and women about  C-TPAT and other beneficial programs members of the international trade community engage in. 
Within Illinois, railroads experience a growth of more than 15 percent each year, and many companies are forced to relocate facilities or shorten the amount of time available for importers to pick up containers. In a survey the CBFFFAC conducted in late July, it was revealed that it takes the average trucker 30 to 60 minutes just to pick up a container, which adds costs for shippers and reduces the efficiency in the supply chain. Members urged Illinois Congressmen and women to facilitate discussions between the railroads and the trade community to improve service.

·       
Avalon is fully committed to your industry and our Customs Surety program is underwritten by our sister company, Lincoln General Insurance Company (Lincoln). Lincoln is rated A- (Excellent) by A.M. Best and has a Treasury listing of more than $16 million to accommodate any Customs bond request. 

Avalon’s Bond Merlin™ software will assist you in complying with the National Finance Center’s (NFC) requirements. Avalon works closely with U.S. Customs and Border Protection to ensure that the current version meets their criteria to file continuous bonds with the NFC via e-mail. Bond Merlin™ is a network able, PC-based, product. Bonds are reported on a 30 day schedule and all bond information is stored locally on your computers. Our Bond Merlin™ brochure provides more information about this program. 

Avalon’s Centralized Bond Unit (CBU) was established in 2006 to assist our customers with the centralized bond process the NFC has mandated on all Activity 1 continuous bonds. Our CBU Department can assist with any questions you may have and provide further guidance on how to avoid your importer’s operation being disrupted due to this NFC nationwide initiative.

Left to right: Mary Jo Muoio, President, NCBFAA; Mary Peglow, President, CBFFFAC; Scott Larson, NCBFAA Area Director; Cindy Allen, President, DCBFA.
Scott Larson, NCBFAA Area 5 Director; Mary Peglow, President, CBFFFAC; Honorable Danny K. Davis, House of Representatives, 7th District State of Illinois.
Mary Peglow, President, CBFFFAC; Jon Kent, NCBFAA, Legislative Representative; Jason Cunningham, CBFFFAC Legislative Committee Chairman; Scott Larson, NCBFAA Area 5 Director.

For further information, please contact Christine Wade, National Accounts Manager in our CBU Department or Gale Lawton, Surety Manager at Avalon’s corporate headquarters. Christine Wade can be reached at 847-700-8180 or via e-mail at cwade@avalonrisk.com. Gale Lawton can be reached at 847-700-8070 or via e-mail at glawton@avalonrisk.com. Of course, please do not hesitate to contact one of our 9 regional offices throughout the U.S. To view a directory of Avalon’s office locations, please visit our Web site at www.avalonrisk.com

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The Quest newsletter is published once a month and is designed to provide critical information to the transportation and logistics industry. Subscribers to The Quest also benefit by receiving policy change notifications, special industry information bulletins, and notifications of upcoming conferences. Avalon Risk Management, Inc. is not responsible for the accuracy or reliability of information contained herein. The reader/user assumes all risk in the use of such information. To subscribe to or unsubscribe from The Quest, please visit the Quest Newsletter page on our Web site. To view prior issues of The Quest visit the Quest Archives.

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