President's Desk Newsletter

INDUSTRY NEWS

Maersk Announces Delays and Blank Voyages Due to Severe Port Congestion

Maersk announced significant delays in vessel schedules on Monday due to severe terminal congestion in Mediterranean and Asian ports, leading to extended waiting times and disruptions to their regular schedules. To address this, Maersk will introduce several blank voyages in the coming weeks, starting with MSC AMELIA from Qingdao on July 1, 2024, and MSC MIRJAM from Busan on July 2, 2024. This announcement coincides with rising container spot rates, with increases reported by Drewry’s World Container Index and the Shanghai Container Freight Index. Industry experts have long forecasted the ripple effects of reroutings, including bottlenecks, vessel bunching, and shortages of equipment and capacity. Read More

Panama Canal Authority Increases Booking Slots and Transit Capacity

The Panama Canal Authority (ACP) will offer additional booking slots in the Neopanamax locks for booking dates from July 11, 2024, available starting June 11, 2024. This change increases the number of daily transits in the Neopanamax and Panamax locks to 33.?

Effective June 15, 2024, the maximum authorized draft for vessels transiting the Neopanamax locks will be 14.02 m (46 ft). For booking dates from July 22, 2024, the total number of daily transits in the Neopanamax and Panamax locks will increase to 34, with slots available starting July 8, 2024.

To view the full Advisory to Shipping, visit:?Panama Canal Authority's Advisory to Shipping No. A-19-2024

Portland secures container shipping continuity at Terminal 6

The Port of Portland will maintain marine container shipping services at Terminal 6, supported by Oregon Gov. Tina Kotek's inclusion of terminal development and reduced channel maintenance costs in the 2025-27 budget. Since resuming operations in 2018, the port has struggled without government backing or a viable lease. The April announcement to end container service sparked renewed interest and lobbying, leading to Gov. Kotek proposing a $40 million investment, with $35 million in the governor’s 2025-27 recommended budget and $5 million in operational support from the Oregon Emergency Board in September, to ensure long-term viability. Executive Director Curtis Robinhold emphasized the benefits to Oregon businesses and jobs. Read More

FMC clarifies language around ocean carrier-drayage provider billing

The US Federal Maritime Commission (FMC) recently clarified a rule regarding detention and demurrage charges by ocean carriers, in response to concerns raised by the World Shipping Council (WSC). The clarification stipulates that ocean carriers can only bill truckers for these fees if the trucking move is not part of a continuous bill of lading. This distinction separates contracts between ocean carriers and shippers from those involving subcontracted trucking services as part of a continuous bill of lading. The FMC's amendment is seen as an attempt to address ambiguity in the original rulemaking and will take effect on May 28th, mandating that bills must be sent to the party responsible for ocean transportation or cargo storage. Read More

CUSTOMS BROKERAGE NEWS

Implementation of Revised Lacey Act Provisions

The US Department of Agriculture's Animal and Plant Health Inspection Service (APHIS) has released the enforcement schedule for Phase VII of the Lacey Act implementation, set to commence on December 1, 2024. This phase mandates declarations for all remaining plant product HTS codes that are not entirely composite materials, encompassing various imported products such as furniture, additional essential oils, and cork, which were previously exempt from Lacey Act declarations. Furthermore, this phase encompasses a diverse array of items, including industrial or medicinal plants, handbags, plywood, laminated wood, tools, matches with natural wood stems, products made from natural cork, bamboo and rattan products, and footwear.

APHIS encourages?public commentary?until July 30th, 2024, regarding the products included in this phase and the potential addition of further Harmonized Tariff Schedule (HTS) chapters to the current phase-in schedule. Any additions to Phase VII will be announced with at least 6 months' notice to ensure affected parties and industries can adequately adjust to the new requirements.

?To review the complete Federal Registry notice or submit formal comments, please visit?https://www.federalregister.gov/d/2024-11901.

Notice of Extension of Certain Exclusions: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation

The U.S. Trade Representative has announced a 14-day extension for all current product exclusions from additional duties under the Section 301 investigation of China, moving their expiration date from May 31, 2024, to June 14, 2024. Additionally, certain exclusions are extended through May 31, 2025, as detailed in Annex C, to support efforts to shift sourcing out of China or to account for limited availability outside China. Exclusions not further extended are listed in Annex D, primarily because public comments did not demonstrate a need or benefit for continued exclusion. These decisions consider public comments, confidential import data, and advisory committee advice. U.S. Customs and Border Protection will provide further implementation guidance.?

?To view the full notice, visit: The Federal Register

Section 301 Tariff Changes

The United States Trade Representative, Katherine Tai, has announced a formal proposal to modify tariff actions as part of the Section 301 investigation into China's trade practices regarding technology transfer and intellectual property. Tai emphasized the commitment to combat China's unfair trade practices by implementing substantial tariff increases on targeted strategic products, following President Biden's directive. A recent report highlighted China's persistence in technology transfer-related practices, including aggressive cyber intrusions, prompting Tai to recommend actions to President Biden. Consequently, on May 14, 2024, President Biden instructed Tai to take several measures. These include issuing a proposal to increase tariffs on specific products in strategic sectors, establishing an exclusion process for machinery, and suggesting temporary exclusions for 19 tariff lines for solar manufacturing equipment. The notice establishes a 30-day period for public comment on these modifications.?

?To view the full proposed notice, visit: USTR.gov

Trade groups warn of Europe import delays amid new security measures

Global and European trade associations issued an urgent alert for businesses moving goods by ocean into or through Europe to prepare for new import security measures, Import Control System 2 (ICS2), which started on June 1. This program, covering the EU, Norway, Finland, Switzerland, and Northern Ireland, rolled out in three phases: ocean and inland waterway carriers in June, forwarders in December, and road and rail shipments from April 1, 2025. Non-compliance could result in delays, disruptions, fines, and penalties. ICS2 demanded extensive advance data, including detailed buyer and seller information and six-digit HS codes. Despite similar import rules existing in North America and Japan, there were concerns about readiness due to the scale of required information. Concurrently, the UK implemented its own post-Brexit import control system, imposing significant costs on British firms. Read More

Revisions of the Section 232 Steel and Aluminum Tariff Exclusions Process

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has made revisions to the Section 232 Steel and Aluminum Tariff Exclusions Process, effective from July 1st, 2024. These changes refine the framework for requesting exclusions from tariffs on steel and aluminum, ensuring a fairer and more transparent process. As part of this update, 12 General Approved Exclusions (GAEs) have been removed. Six GAEs pertain to steel, and six to aluminum. The affected Harmonized Tariff Schedule (HTS) codes are listed below:

Steel GAEs: 7208.38.0015, 7209.27.0000, 7209.90.0000, 7211.29.6080, 7216.10.0010, 7216.33.0090

Aluminum GAEs: 7601.20.9080, 7604.21.0010, 7604.29.1010, 7604.29.5090, 7607.11.6010, 7609.00.00001

To view the full document, visit the?Federal Register

CBP Releases Guidance on Importer Obligations and Requirements for Completing Origin Documents

In response to an observed increase in the use of consignee information where importer details are required, Customs and Border Protection (CBP) has issued guidance on importer obligations and requirements for completing origin documents. This guidance emphasizes that when the consignee is not the importer of record (IOR), the actual importer must fulfill this role. Specifically, if a consignee is not the IOR, they may not be listed as the importer on the origin declaration, origin statement, or certification of origin. Furthermore, the origin declarations, origin statements, or certifications of origin must be completed and signed by an official of the importer, exporter, or producer, or an agent of any of these entities, possessing knowledge relevant to the origin of the goods as specified by the respective trade preference program. Importantly, a claim for preferential tariff treatment may be denied if an importer fails to submit, upon request by CBP, the completed origin declaration, origin statement, or certification of origin prepared in accordance with the requirements of the trade preference program.?

?To view the full Cargo Systems Messaging Services, visit:? https://content.govdelivery.com/bulletins/gd/USDHSCBP-39c8342?wgt_ref=USDHSCBP_WIDGET_2

EASTERN NEWS?

Eastern Racing Announces Sponsorship with Enrico Fulgenzi Racing

Eastern Racing announced a new sponsorship with Enrico Fulgenzi Racing, cementing a partnership built on shared values of precision, purpose, and continuous improvement. Enrico Fulgenzi Racing, a prominent Porsche team founded by Carrera Cup Italia Champion Enrico Fulgenzi, participates in major Italian and international championships and offers Racing Programs and Driver Coaching. Eastern Racing's President and Race Car Driver, Eric Wagner, will join Enrico Fulgenzi Racing in the Porsche GT3 Cup 992 at the Hankook 12H Misano on July 5 and 6. Eric Wagner stated, "We are thrilled to partner with Enrico Fulgenzi Racing. Our shared values make this collaboration a perfect fit and reinforce our commitment to excellence." Read More

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