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Inside this issue:
Single transaction bonds required for suspected AD/CVD shipments
Appeals court reverses case involving
‘independent contractor’
$5.2 million verdict against a
transportation broker and driver in negligent hiring case
C-TPAT and AEO to be mutually
recognizable in June 2012
Goods from Argentina to lose GSP
benefits
Claims Review:
International Coverage
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C-TPAT and AEO to be mutually
recognizable in June 2012
Beginning in June 2012,
companies that have joined C-TPAT in the United States or
AEO in the European Union will receive reciprocal benefits
from each country’s trusted trader program.
CBP Acting Commissioner David V. Aguilar and
Director-General Heinz Zourek, European Union Taxation and
Customs Union Directorate (TAXUD) signed a mutual
recognition decision in May, which recognizes compatibility
between the EU and the U.S. cargo security programs.
Mutual recognition among these programs allows certified
companies to benefit from reduced Customs controls and
priority treatment in additional countries, thus providing
an expedited release of goods. According to a study released
by U.S. Customs and Border Protection in 2011, participants
said their reduced delays resulted in a median savings of
$500 for air shipments and $1,500 for ocean shipments.
Companies may also wish to become certified in these
programs for competitive reasons. CBP’s survey revealed that
91% of respondents said they received contracts that
required C-TPAT membership.
The United States already has mutual recognition
arrangements with New Zealand, Canada, Jordan, Japan and
South Korea. AEO is already recognized in Japan, South Korea
and Singapore.
Both the European Union and the United States expect mutual
recognition to reduce costs and time delays, result in less
red tape and provide greater ease and predictability in the
movement of goods across EU and U.S. borders. CBP states there are more than 10,000
participants in C-TPAT and about 4,600 AEO participants.
While becoming certified in trusted trader programs helps
secure the supply chain, loss or damage in transit can
always occur. The smart solution is to always obtain Cargo
Insurance to protect shipments in transit. Our customized
Cargo Insurance policies provide broad “All-Risk” coverage
on most goods,
with streamlined certificate issuance through our Web
Merlin™ portal.
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