JAN 2007 | Issue 56


In This
Issue:

>“10+2” Proposal

>Truck e-Manifest

>C-TPAT for Customs Brokers:
Changes to Security Criteria Requirements

>Final rule for Transportation Worker Identification Credential (TWIC)

>CBP requires marine terminals to post bonds for cargo security

>FMCSA proposed regulations for intermodal equipment providers

>Claims Review: What is a package?:
COGSA’s $500 per package limitation

Events Calendar:

FEB 01-03
Mid-West Truck Show & Convention
Peoria, IL

FEB 05-09
Northern Border Customs Brokers Association, Inc.
Los Cabos, Mexico

FEB 13-14
NAFTZ Legislative & Regulatory Seminar Washington, D.C.

FEB 23-25
California Delivery Association
Irvine, CA

MAR 11-13
Air Cargo 2007
Phoenix, AZ

MAR 22-24
Mid-America Trucking Show
Louisville, KY

APR 15-18
Transportation & Logistics Council
Orlando, FL

APR 15-19
NCBFAA Annual Conference
Phoenix, AZ

APR 19-21
TIA 29th Annual Convention and Trade Show

“10+2” Proposal

U.S. Customs and Border Protection (CBP) plans to start implementing their “10+2” proposal in September 2007, forcing importers and customs brokers to submit additional information for enhanced security screenings.

Commissioner Ralph Basham revealed his plan at CBP’s annual Trade Symposium December 13-15 in Washington, D.C. The “10+2” proposal is named for the number of points that must be transmitted to CBP at least 24 hours before goods are loaded on an ocean vessel bound for the U.S. The data collected will be checked for inconsistencies, assisting to indicate which containers may be linked with terrorists or criminals.

Ten data elements were selected because of their significance and availability in the logistics process:

  1. Manufacturer name and address
  2. Seller name and address
  3. Container stuffing location
  4. Consolidator name and address
  5. Buyer name and address
  6. Ship to name and address
  7. Importer of record number
  8. Consignee number
  9. Country of origin of the goods
  10. Commodity Harmonized Tariff Schedule number (six digit)

In addition to the ten data elements, CBP will require ocean carriers to provide two additional data sets to complete the security filing: the vessel stow plan and container status messages.

CBP has not decided how the data elements will be communicated and who will be responsible for the communication. CBP is closely coordinating its efforts with the Commercial Operations Advisory Committee (COAC) to work out the data’s definitions and the most efficient way to execute the next step in advance manifest reporting. The COAC has been urged to complete their review in time for a meeting in February 2007. A Notice of Proposed Rule Making will then be published in the Federal Register.

Basham said the end of summer is CBP’s target date for implementing the new security program, which has many importers concerned about their ability to gather data they don’t normally collect and the need to reprogram their computer systems.

Smaller companies are encouraged to track down information in countries where they don’t have a presence. Importers without access to all the required information may be initially allowed to submit a smaller version of the ten data elements.

To view CBP’s plan in its entirety, please link to:
http://www.cbp.gov/linkhandler/cgov/import/carriers/adv_data_
elements.ctt/adv_data_elements.doc

CBP is seeking comments on the plan by February 5, which must be e-mailed to securityfilingstrawman@dhs.gov

Avalon is fully committed to your industry and will keep you up to date on any governmental changes or regulations. Avalon works with multiple markets to provide coverage tailored to meet specialized cargo insurance needs. All policies provide basic All-Risk coverage for cargo in transit, including Free of Particular Average and With Average alternatives. At Avalon, we go beyond standard coverage forms to offer customized cargo policies which can include:

  • Project Shipments
  • Break Bulk & Bulk Cargo
  • Warehouse Storage
  • Cargo Legal Liability
  • Special Cargo Clauses

Avalon accepts electronic reporting transmissions from your computer system or through our proprietary Internet-based system, Marine Merlin. With Marine Merlin, the user can view policy and rate information, automatically calculate premiums, print an insurance certificate, view invoices, request special quotes via e-mail, store special quotes for the future and search for previous transactions. Marine Merlin allows the user to manage their cargo insurance program and save time.

To find out more, select our Cargo brochure or application for a cargo quotation.

For further information, please contact Andriana Davis, Product Manager at Avalon’s corporate headquarters. Andriana Davis can be reached at 847-700-8087 or via e-mail at adavis@avalonrisk.com. Please do not hesitate to contact one of our nine 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 per 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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