Topics
August 19 - Classification Webinar
September 16 - CBP CEE Seminar
October 21 - Valuation
November 18 - Export focused webinar
December 9 - Happy Hour (Holiday) or CBP Importer/Broker Audit Assessment or BOTH!  TBA.
 

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

 Courtesy of John McLaurin, PMSA (pictured above) here is a new joint OpEd by PMSA and the California Manufacturers and Technology Association.  Please click on the link below.

https://www.foxandhoundsdaily.com/2020/10/to-support-economic-recovery-lawmakers-must-support-californias-ports/
 
The California Legislature and our Governor must prioritize the retention of quality manufacturing and logistics jobs!  

WIT-NC and CBFANC presents US Food & Drug Administration    FDA VIRTUAL WORKSHOP, Wednesday, October 14, 2020   Key Officers from US Food and Drug Administration will provide an online workshop for brokers and importers interested in learning more about FDA Reorganization and Program Alignment; Entry Review; ACE processing, FSVP update; Devices, Drugs, and Dietary Supplements.   Adapting for a virtual format, the introductory remarks and FDA Overview will be delivered to the full group, followed by concurrent interactive sessions provided for smaller breakout groups to further address importation concerns on process and requirements.     Don’t miss this opportunity to enhance your understanding with personalized discussion on import admissibility.   When registering, please state your preference of which breakout session you plan on attending.   This will assist our ability to monitor attendance and ensure each breakout sessions are well moderated.

Port of San Francisco Centralized Exam Station (CES) applications deadlines ends October 9, 2020.
 Per CBP San Francisco Notice 728-20-04 dated August 10, 2020 announced acceptance of bids for additional Centralized Exam Station (CES) for Trade and Agriculture.   Per Notice 728-20-04, please note the following:

• CES applications deadline is 4:30 p.m. October 9, 2020. 
• CES public comments welcomed within 30 days upon CES applications (accepted as timely) by and as notified by Customs.
• U.S. Customs and Border Protection

Attn:  Assistant Port Director, Trade/Tactical
555 Battery Street
San Francisco, CA 94111
 Your input on CES applicants are valued.   CBFANC will notify on CES applicants and encourage your comments on CES.   This is your opportunity to have a say on CES in your port.     As in previous process, you may send comments directly to CBP.   Or send through to CBFANC via email info@cbfanc.org.  Comments necessarily required one day prior to CBP deadline in order for CBFANC to collect and submit timely.   If any questions on CES, please contact CBP Watch Commander Kelvin Alexander at kelvin.f.alexander@cbp.dhs.gov or Chief Alex Cheng at alex.m.cheng@cbp.dhs.gov
 

UNPRECEDENTED EVENT:  WESCCON 2020 WILL BE HELD ONLINE!  

    

Port Headaches:  Congestion, Chassis, Ocean Rates…and Rail
 In August, CBFANC with Pacific Coast Council associations joined other port stakeholders to sign onto coalition letter requesting the Executive Directors of Los Angeles and Long Beach to review Port competitiveness and chassis situation.  Per Peter Friedmann, the letter asked the Port authorities to “develop and implement strategies” and “best practices that reduce costs to shippers and increase gate productivity”.    Now heading into midst of “peak season”, the situation has not improved much.   Containers stuck at terminals, collecting demurrage, delays to off-terminals and rail to inland.    During AgTC discussion early September, American Trucking Association (ATA) cited need to end box rules with restrictions on chassis/pools.   Chassis/equipment issues continue to cast shadows on West Coast ports and inland points.
 Mixed news on ocean rates.   Good news that ex-China General Rate Increase (GRI) for mid-September was cancelled.  Per Peter Friedmann, Zest Media Group reported this was due to China government intervening to limit freight rates “to further stabilize foreign trade and maintain the stability of the international container liner markets such as China and United States”.   Other Asia routes however continue with GRIs.   However blank sailings and continued high demand due to eCommerce may still impact vessel capacity and port congestion issues.  
 

CBFANC Board of Directors
2021 Elections coming up soon!
 
Ask not what CBFANC can do for you; ask what you can do for CBFANC!
  
                                           
 
We are seeking member participation on the CBFANC Board of Directors.  If you are a professional member of CBFANC and are interested in serving on the board of directors please ask another member to nominate you for the upcoming elections.  Nominations can be sent to info@CBFANC.org.
If you know a fellow CBFANC professional member who you think would be a great addition to the board of directors, contact that person and see if they would like you to submit a nomination in their favor to info@CBFANC.org.
 
Board terms are for three years.  The board meets every other month for a dinner meeting, and on other months it meets via conference call. 
Now is your chance to help shape the future of our association. 
The election results will be announced at our annual meeting/holiday gathering to be held on December 9, 2020.
Below, Chris Ramos, KSI Inc, CBFANC Chairman

The annual NCBFAA Government Affairs Conference (GAC)  took place this year from September 14^th to 18^th via Webinar  and is considered a top event for addressing timely and critically important industry changes by means of members making their voices heard when explaining the industry's pressing challenges to government representatives and elected officials. 
 
Each day consisted of varying topics and speakers working toward a better industry

• Monday -  Michael Khouri FMC Chairperson addressing issues that lead to a FMC https://www.fmc.gov/commissioners-discuss-ocean-carrier-issues-global-alliances-and-market-developments/ ,

CBP Deputy Commissioner Robert E. Perez – updating industry on the success of ACE Initiatives that are in process ( 214 upgrade, collections) , 111 rewrite and continuing education is under review  & the success of the chatbot on CBP website to address issues

• Tuesday - Legislative Committee advising membership to the approach on the – Bankruptcy Law as it relates to the Customs Broker https://www.ncbfaa.org/Scripts/4Disapi.dll/userfiles/uploads/BACKGROUND_ON_BANKRUPTCY_BILL.pdf
• Wednesday - Risk Management – challenges with ISF, cybercrime & human trafficking and how it effects our industry / Joel Szabat – Acting Undersecretary for transportation – updating industry on the balance of air cargo flights between USA & China / Drawback Committee – presenting news on accelerated payment working well and that many of the backlogged drawback rulings are being completed
• Thursday – Export compliance updates and new rulings
• Friday -  Industry and the future of eCommerce, how the 321 is looking moving forward , customs exams for the courier vs traditional freight , the importance of customs brokerage oversight for courier shipments / new CFR 182 provisions

 
The next GAC conference will be in Washington DC from September 20-22^nd 2021
 
Chris Kammer
CEO
Access Supply Chain Service
Tel: 650-477-2691
Fax: 650-931-4328
Mobile: 415-244-7859
chris.kammer@accesssupplysolutions.com
http://www.accesssupplysolutions.com/
 

Sung Wook (John) Lee, pictured below, provides the following important report issued by the Center for Strategic and International Studies (CSIS).


Click on the link below to download / view the entire brief.

Hidden Harbors: China’s State-backed Shipping Industry
CSIS Briefs
July 8, 2020
Download the Brief
THE ISSUE

• Chinese companies are increasingly dominant across the maritime supply chain, aided by a complicated and opaque system of formal and informal state support that is unrivaled in size and scope.

 

• Combined state support to Chinese firms in the shipping and shipbuilding industry totaled roughly $132 billion between 2010 and 2018, according to CSIS analysis. This includes financing from state banks ($127 billion) and direct subsidies ($5 billion). Owing to data limitations and the opacity of China’s political system, this conservative estimate does not include direct subsidies to unlisted firms, indirect subsidies, state-backed fundraising, preferential borrowing rates, and other nonmarket advantages from China’s state capitalist system.

 

• While most analysis focuses on more traditional types of state backing, most notably direct subsidies, we find that China has evolved increasingly sophisticated financial tools to select and support winners that render our traditional understanding of China’s state capitalist system largely outdated. Future research will be needed to understand Beijing’s evolving playbook for supporting the global rise of strategically significant industries.

THE RISE OF CHINA’S SHIPPING INDUSTRY
Chinese companies are increasingly dominant across the entire global maritime supply chain, controlling the world’s second-largest shipping fleet by gross tons and constructing over a third of the world’s vessels in 2019.¹ They also produce 96 percent of the world’s shipping containers, more than 80 percent of the world’s ship-to-shore cranes, and own seven of the ten busiest ports in the world (including Hong Kong).² Although still a nascent naval power, China has already become a dominant player in the commercial maritime space.
 
 

Below, car 1208 on flat bed truck arriving at Schnitzer Steel facility in Oakland.


For each BART train car recycled at Schnitzer Steel at the Oakland Harbor, an estimated 22 tons of scrap metal will be used to creat new products in support of critical infrastructure and transportation projects.  The process diverts heavy metals from Bay Area landfills and contributes to California's sustainability goals.  This activity also provides sustainable jobs to local residents.  Please click on the link below for a full report!!! 

https://mailchi.mp/c3d0a5875196/notes-from-the-east-oakland-stadium-alliance-4046017?e=4e631b7e5f

This activity is what the Oakland As Team is working to destroy in order to build their ball park and luxury condos at Howard Terminal!!!  Please refer to article below regarding Oakland As lawsuit to stop blue collar industrial work at the Port of Oakland.

Lawsuit confirms A's first priority will be luxury development and loss of jobs at the Port of Oakland.

Idle cranes stand next to the proposed stadium and luxury highrise development

The Oakland A's sued the California Department of Toxic Substances Control over alleged pollution at Schnitzer Steel's metal shredding facility which is next door to Howard Terminal where the A's propose to build a new stadium and luxury real estate development.

Dave Kaval, president of the A's, wrote on Twitter, "West Oakland has long dealt with unacceptably high levels of pollution, as wel as elevated risks of health problems like asthma, heart disease, and COVID."  (This is not the first time that the A's organization has tried to use COVID to justify their new stadium proposal).  

Opposing Parties in Industry Respond to the A's Recent Action

Colin Kelly of Schnitzer Steel said in a statement that the A's lawsuit is part of "efforts to dismantle the Port of Oakland to make room for their waterfront stadium and luxury housing development."
Mike Jacob of PMSA said "This aggressive action by the A's proves what we have been afraid of this whole time:  They are intending to shut down and push back on the current operations of Oakland's working waterfront."

CBFANC Supports the Continued Success of Maritime Operations at the Port of Oakland!  Thousands of local jobs depend on our working port.

Dear reader:  Did you or any of your customers have cargo on one of these three ships?  Don't let the A's force ships to bypass Oakland in favor of L.A. or Prince Rupert!
 

 

Congress has sent the Caribbean Basin Trade Partnership Act to the President to extend duty-free and quota-free access for apparel made in the region. The program, which requires that fabrics are made and cut in the US, would have expired on September 30 without Congressional action. Haiti is the main beneficiary, but other eligible countries include Barbados, Belize, Curacao, Guyana, Jamaica, St. Lucia, and Trinidad and Tobago.

Congress did not take up legislation to extend the Generalized System of Preferences (GSP) program – that program doesn’t expire until December 31, and Congress doesn’t tend to act on these sorts of things until the last minute. Senate Finance Committee Chairman Chuck Grassley has introduced a bill (S.2479) to extend GSP for 16 months. This legislation could be combined with other trade items – such as the Miscellaneous Tariff Bill, or MTB – during a post-election lame duck session of Congress, although it is certainly possible that consideration of this bill could slip into 2021. If that is the case, it is notable that Congress generally extends these types of programs retroactively to when the program expired.

 

Customs brokers and forwarders and logistics professionals have long considered CES held annually in Las Vegas to be one of the most important trade shows of the year.  In 2021, however, the event will be strictly virtual due to COVID19 concerns. This development will have a big, negative impact on the struggling hospitality industry in Las Vegas.  The CES is the largest event by exhibition space in the country, spanning nearly 3 million net square feet.  More than 170,000 people from 164 countries, regions and territories attended the weeklong showcase earlier this year.  The virtual CES 2021 will run from Jan 6 to Jan 9.  (Source:  Wall Street Journal, July 29, 2020)

 
 

U.S. Customs and Border Protection's (CBP) National Commodity Specialist Division (NCSD) is hosting their next round of commodity-specific webinars and have released their schedule for June through August. Below is the list of available webinars.