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

Truck e-Manifest

Effective January 25, 2007, three states will participate in U.S. Customs and Border Protection’s (CBP) new mandatory truck manifest.

All ports in Washington and Arizona are included as well as selected ports in North Dakota: Pembina, Neche, Walhalla, Maida, Hannah, Sarles and Hansboro.

E-Manifests must be received at least one hour prior to the carrier reaching the first U.S. port of arrival. Informed compliance notices will be given for approximately 60 days to carriers arriving without submitting or attempting an e-Manifest. Beginning around March 26, 2007, CBP will take enforcement action and deny entry into the country. Around April 26, 2007, and continuing as ongoing enforcement, CBP will deny entry to any truck that arrives at one of the ports without successfully transmitting an e-Manifest. Monetary penalties of up to $5,000 for violation of the Trade Act of 2002 may also be assessed for carriers who make no attempt to comply with the requirements.

Currently, carriers must present a paper manifest to CBP before a shipment can enter the country. E-Manifests will submit information about the trip, conveyance, equipment, crew, passenger and shipment details electronically.

Filing manifests electronically can be accomplished either by Electronic Data Interchange (EDI) or via the Internet by using the ACE Secure Data Portal. As a truck approaches, ACE is used to retrieve e-Manifest details for the CBP officer to review. If the truck is equipped with a CBP-approved electronic transponder, ACE will automatically retrieve e-Manifest details along with matching pre-filed entries or in-bond requests.

The next phase of the e-Manifest program will take place on April 19 at all ports in California, Texas and New Mexico.

The remaining ports requiring e-Manifests are listed in sequential order, which has changed since the announcement in October.

  • Michigan and New York
  • Vermont, New Hampshire and Maine
  • Idaho and Montana
  • Minnesota and all remaining ports in North Dakota
  • Alaska

CBP will always provide 90 days’ notice through publication in the Federal Register prior to implementing mandatory e-manifest at each group of ports.

Electronic manifests assist in border security by enabling CBP officials to prescreen trucks and shipments, freeing up time to inspect suspicious cargo without delaying the border crossings of legitimate carriers. Automating the process also allows information to be integrated electronically with CBP systems to provide better cargo screening.

Trucking companies are urged to prepare for the mandatory e-manifest policy by contacting a customs broker and establishing truck carrier accounts with the ACE Secure Data Portal.

Avalon Risk Management, Inc. is a premier provider of insurance and surety solutions for the third-party logistics and trucking industries. Avalon is a leading Customs surety, writing approximately 30 percent of all bonds on file with Customs. We also provide various bonds that are required by truckers as follows:

  • Bonded Carrier Customs Bond
  • AMS Customs Bond
  • Canadian Carrier Bonds
  • Fuel Tax Bonds

Avalon’s surety program is underwritten by our sister company, Lincoln General Insurance Company. Because both Avalon and Lincoln are wholly-owned subsidiaries of Kingsway Financial Services, you can be assured of our commitment to your industry. Avalon is also a General Agent for Lincoln General’s Trucking Program and can offer a complete business package to truckers including: Auto Liability, Physical Damage, Motor Truck Cargo, General Liability and Umbrella coverage.

For further information, please contact Andriana Davis, Bonds Product Manager or Anna Vize, Truck Product Manager at Avalon’s corporate headquarters. Andriana Davis can be reached at 847-700-8087 or via e-mail at adavis@avalonrisk.com. Anna Vize can be reached at 847-700-8154 or via e-mail at avize@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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