Speaker: Jessica Libby - Managing Director, KPMG Trade & Customs


Balancing Cash Flow & Compliance in the Age of COVID-19
When: Wednesday, May 13, 2020 5:30 - 7:00 PM PDT
Where: Webinar. Link and dial in details will be provided upon registration.
Members - No Fee
Non-members - $40.00 

---

The trade community is facing unprecedented challenges during this COVID-19 pandemic, but it’s not all doom and gloom. Please join us for a discussion on creative and timely strategies to limit cost and improve cash flow to help fund your critical trade compliance initiatives.
Click on the link below to register.

Register Here!

 

Please connect with us!

Twitter - @cbfanc

LinkedIn - CBFANC

Facebook - CBFANC

• P.A.E.I - Professional Association of Exporters and Importers
• www.paei.org.

• OWIT NC - Organization of Women in International Trade Check website for updates
• Monterey Bay International Trade Association (MBITA) - Monterey Bay International Trade Association
  Check Website for updates
• Norcal W.T.C. - The Northern CaliforniaWorld Trade Center
  Check Website for updates
• PTA. - Pacific Transportation Association Check Website for updates

CBFANC PRESIDENT EVEY HWANG OFFERS LOCAL PORT UPDATES

 CBFANC held another Port Working Group on April 7^th via conference call.  For the most part, Port of Oakland is operating normally but expecting up to 20 blank sailings between now and the end of May as announced by ocean carriers.  Oakland Terminals verify this report.  The terminals are also adjusting processes to address COVID-19 safety concerns.

On April 17^th, a new Health Order was issued by the county of Alameda.   Along with other Bay Area counties, effective April 22, 2020 the Alameda Order mandates and enforces the CDC recommendation for  “members of the public, when they need to interact with others outside the home and especially in settings where many people present such as waiting in lines and shopping, should cover the mouth and nose to prevent inadvertently spreading the virus that cause Coronavirus Disease 2019 (“COVID-19”)”.  

 Unfortunately, since April 17^th, TraPac terminal in Oakland has been mired with cargo congestion issues which have created long lines of trucks outside the terminal’s gates.   We are watching situation and hope to report resolution soon. 
  
 We wish to remind our readers that for OICT/SSA, effective May 1^st pre-gate Full-In transactions are required through eModal and effective July 6^th  the OICT/SSA gate fees will increase from $30 to $35.00.    Information and contacts for seaport terminals are availablle on our website..
 

Sold out webinar on importing PPE - Click here to download the recording.
We know many of you wanted to join the successful webinar hosting CBP and FDA to get the latest updates on import requirements of PPE - Due to platform limitation on number of attendees we could not accommodate everyone live, but we are pleased to make the recording and FDA documents available for download.   As well, the following links are guidance material for your reference.
 
https://content.govdelivery.com/bulletins/gd/USDHSCBP-287b755?wgt_ref=USDHSCBP_WIDGET_2?utm_source=search.usa.gov&utm_medium=search.usa.gov&utm_term=undefined&utm_content=undefined&utm_campaign=(not set)&gclid=undefined&dclid=undefined&GAID=880968667.1527274216
 
https://www.fda.gov/industry/importing-covid-19-supplies/information-filing-personal-protective-equipment-and-medical-devices-during-covid-19
 
Please share freely - we want this valuable information to be available to everyone who are working to supply the frontline heroes in battling the spread of COVID 19.  
 
A Big Thank You to our panelists that were able to speak yesterday from CBP: 

• Richard DiNucci, Port Director
• Steve Baxter, Assistant Port Director

FDA - Division of West Coast Imports (DWCI): 

• Lydia Chan, Compliance Officer
• Marissa Chan, Supervisory Consumer Safety Officer
• Gordon Chu, Acting Program Division Director
• Carla Fernandez, Acting Special Assistant to the PDD
• Lawton Lum, Director of Compliance Branch
• Evanguel Strickland, Acting Director of Investigation Branch 

FDA - Division of Import Operations (DIO): 

• Alison Nicoli, Branch Chief, DIO
• Brenda Reihing, Supervisory Consumer Safety Officer, DIO
• Allison Scott, Supervisory Consumer Safety Officer

James McNamee - Senior Customs Manager - Flexport
 

 

PORT OF OAKLAND SEEKS INFORMATION REGARDING AG EXPORTS AS HARVEST SEASON BEGINS

The Port of Oakland has a long-established partnership with California Co-operatives representing shippers of various agriculture commodities.  Currently, The Port of Oakland is seeking feedback from the trade to help determine which markets (countries) shippers are experiencing the most difficulty in getting their commodities off loaded or picked up at the foreign port of destination.  This information is needed because this is the beginning of the picking and shipping season for:   Cherries; Peaches; Nectarines; Plums; Blueberries; Onions;  Citrus    The Port advises that they are aware of India, Pakistan, Bangladesh having 14 day quarantine on imported food items.  Are you aware of other markets where US Ag exports are having difficulty off loading or being picked up?  If you have any input on the Agriculture commodities or any concerns for CBFANC Ocean Committee, please contact us at ocean@cbfanc.org. 
 

PCC MISSION TO DC – CBFANC holds productive afternoon meetings FMC ( Feb 24^th)
 
The PCC Missionaries had 3 separate meetings arranged with the FMC commissioners 1:30 Chairman Khouri, 2:15 Rebecca Dye + Louis Sola 3:00 Carl Bentzel + Daniel Maffeiso  ( broken up to meet with quorum regulations). The conversation started with concerns over the start of the Coronavirus and also we asked for an update on the  investigation into the matter of the steamship lines charging the trade community demurrage when a container is not available for pick up or the terminal is closed. We sought out the support and guidance by the Commissioners in the form of an interpretive rule to resolve an issue that has been perceived to be unfair to shippers.  We are pleased to see that the FMC subsequently issued the guidelines on April 28th.  Please see the story below for details.
 

By The Maritime Executive 04-28-2020 08:28:35
The U.S. Federal Maritime Commission has issued new guidance about how it will assess the reasonableness of detention and demurrage regulations and practices of ocean carriers and marine terminal operators under 46 U.S.C. 41102(c).
The final rule, “Docket No. 19-05, Interpretive Rule on Demurrage and Detention under the Shipping Act” will become effective upon its publication in the Federal Register.
Under the new interpretive rule, the Commission will consider the extent to which detention and demurrage charges and policies serve their primary purpose of incentivizing the movement of cargo and promoting freight fluidity. The rule also provides guidance on how the Commission may apply that principle in the context of cargo availability (and notice thereof) and empty container return.
 

PCC HOSTS TWO PORT CONFERENCE CALLS 

In April, Peter Friedmann arranged and led two Port conference calls for Pacific Coast Council Association members.   A call on April 7^th featured an update from Port of Long Beach Executive Director Mario Cordero.  Mr. Cordero’s update focused on adjustments at the port due to the trade war, blank sailings and the impact of COVID19.  During the call, Harbor Trucking Association representative offered their listing of blank sailings through May.  This listing showing blank sailings for Ports Seattle, Oakland, Los Angeles and Long Beach is available on the CBFANC website. 

On the second PCC call of April 17^th John Driscoll of the Port of Oakland informed the group that he will be leaving Oakland as Maritime Director to become Executive Director at the Port of Mobile, Alabama.   He also introduced Andrew Hwang as Oakland Port’s Manager of Business Development & Intl Marketing.  Attendees on the call raised concerns for the port’s continued focus on the importance of agriculture products at Oakland and the need for sustained availability of equipment needed to support the supply chain.   
While on the call, Oakland advised that the largest vessel yet to call Port of Oakland, the 1,312 foot-long vessel MSC Anna, docked at OICT on April 16^th.  
 

MAY DAY PROTEST PLANNED BY ILWU.  TRAPAC SCHEDULE AFFECTED.

Friday May 1^st is May Day, which is the globally recognized date celebrating International Workers Rights.  Port terminals will be closed to observe May Day.   Members of International Longshore Workers Union (ILWU) have a planned march from the Port terminals through Oakland for actions on COVID-19 concerns and inequalities #PeopleAndPlanetOverProfits

As a result of the ILWU stop work tomorrow 1^st shift, TraPac will be open this Saturday from 8am to 4pm. Ingate will close at 3pm to ensure all vehicles are out by 1600, as 1600 is when customs will stop manning the outgate. We will be open for all lines, all Export & Import transactions, MTY IN and MTY reefer out ONLY (No dry empties out). Appointments will be added this morning and will be required as normal.
 

NCBFAA Names New President, Officers

Janet Fields, director of risk management at John S. James Co., was elected April 18 to be the new National Customs Brokers and Forwarders Association of America president, replacing Amy Magnus, who will now be chairman of the board. The organization’s new vice president will be Jose D. Gonzalez, a self-employed broker; the new secretary is Victoria Lane, from Coppersmith Global Logistics; and the new treasurer is Scott Larson from MOL Logistics (USA).

Editor’s Note: Victoria Lane, newly elected NCBFAA secretary and pictured below, will be a great addition to the leadership of NCBFAA and she will be an effective voice for the interests of brokers and forwarders in our area and nationwide.


 

Coronavirus-driven capacity cuts could result in weeks of delays and disruptions to global supply chains.  Per the Wall Street Journal, April 27, 2020, the pandemic has caused drastic capacity cuts in air cargo space, and this could force some businesses to utilize ocean and rail modes of transport.  A high volume of air freight rides in the holds of passenger aircraft, but, many of these aircraft are sitting idle as passenger traffic plummets by 90%.  This is reshaping the airfreight market, as shippers hunt for space on freighters or charter flights.  Prices have skyrocketed.  While companies such as DHL Express have dedicated aircraft (DHL has 250 cargo planes), they are unable to replace the cargo space lost due to the grounding of passenger aircraft.  Even with the challenges that have arisen due to the pandemic, Frank Appel, chief of DHL parent Deutsche Post AG, doesn't expect the world to turn away from global, international supply chains.  Appel advised the Wall Street Journal that business will change and diversify supply chains so that they are not dominated by sources in China.  Appel predicts "They might put them in other places as well, but it will not be all near-shore because that's not affordable,"  He added that anyone who thinks "the game is over with globalization doesn't understand what drives consumers or what drives business decision."  Clearly, costs to businesses and prices to consumers will drive the outcome after the pandemic recedes.

Here is a letter from Americans for Free Trade, forwarded by Ray Bucheger in Washington D.C., regarding the proposal to allow duty payment deferments during the COVID19 crisis. 
  
Ray Bucheger                        Peter Friedmann

[NOTE from Peter Friedmann, Our Man in DC: since Ray lives on the Hill, and is working from home, he is literally “on the Hill”, even if he is on the cell phone and email with Hill staffers who are working from home and not actually in their offices on the Hill, and impossible to reach unless they already know you well.]

Here is the text of the letter.
April 28, 2020  
The President
The White House
1600 Pennsylvania Ave., NW
Washington, DC 20500
 
Dear President Trump,
 
Thank you for your ongoing leadership to address the unprecedented economic challenges created by the deadly COVID-19 pandemic. Your leadership has included measures that have helped many businesses delay payments like income and payroll taxes to increase liquidity. The announcement to delay certain duties was another welcome step to help American companies stabilize their finances and buy time.
 
While this program will certainly benefit some U.S. companies, it will not benefit many others because certain important duties have been excluded and because it only covers imports made during the first half of March and April. While we understand the need to keep strong U.S. trade policies front and center, merely delaying the payment of these additional duties will not harm trade policy. The duties will still be paid, just at a later date. 
 
It is with this in mind that we make two urgent recommendations. First, we ask that you extend the program to cover imports made during May and June. Second, we urge that the program be expanded to defer the due dates for all duties and fees.
 
 

Keith Hwang, Instructor CHB January 2020 Broker Exam Prep Course

Shortly after the completion of the CBFANC Broker Exam Prep Course for the April 1, 2020 exam, CBP in CSMS#42152812 announced cancellation of the exam due to COVID19 concerns and they did not specify an alternate date.  The current (though unofficial) expectation is that the July 2020 exam will be held, as usual.