The Quest
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



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.

For more information, please contact your local Avalon office or Andriana Davis at (847) 700-8087 or at adavis@avalonrisk.com. A list of our offices may be found at www.avalonrisk.com.

Avalon Risk Management


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