Emergency Revenue Charge (ERC)on ocean shipments from Asia to the US!

As part of a revenue recovery plan on the transportation trade, steamship lines have implemented an Emergency Revenue Charge (ERC).  This price hike on shipments is due in large part to off-set the decline in import volumes.  It is uncertain exactly how long this additional fee will be in effective.  As of now, the expected time period is from Jan 15th, 2010 to April 30th, 2010.  Then the already published TSA - General Rate Increase (GRI) program will be activated on May 1st, 2010.

The increase quantum will be as follows:

       +USD 320 per 20’ all types

       +USD 400 per 40’ all types

       +USD 450 per 40’ HC all types

       +USD 505 per 45’ HC all types

“Taking this step now is a milestone in the necessary recovery program expected by all operators on this major East / West trade lane. The implementation of this rate restoration on the Transpacific trade will enable us to maintain an optimal fleet deployment for the benefit of Asian and US exporters and importers ; this is the first stage towards a financial breakeven needed by the liner shipping industry on this route” explains Jean-Philippe Thénoz, Vice President North America Lines, CMA CGM Group.

These price increases are paid by the Third Party Logistic providers, and then that economic burden will likely need to be passed along to the end customer.  If you see this sharp rise in your shipping costs, it is not the “middle guy” making more profit, but rather a need for him to not lose revenue and go out of business.

The brand new “ISF 10 + 2 Rule” and its importance to you!

Is your business directly importing cargo on an ocean container into the United States?  If so, are you adequately prepared to abide by the new safety regulations and avoid the costly fines? 

Or, if you outsource your imports to a third party (“freight forwarder”), are you sure they will meet the criteria of the new rule?  If they don’t, you, the consignee, are the one who is liable for those hefty fines, not the contracted freight forwarder!

Effective on January 26, 2010 any business that imports products and doesn’t strictly follow the new “ISF 10 + 2 Rule” will be faced with a $5,000 fine per violation. 

This brand new rule is the “Importer Security Filing and Additional Carrier Requirements Rule” and is often referred to as the “ISF 10 + 2 Rule”.  This rule is being enforced in an effort to:

• enhance the importer’s sphere of accountability back to the point of stuffing (origin)
• enhance cargo targeting prior to the loading at the foreign port, and
• result in fewer exams for low risk shipments

The responsibility of the ISF importer, or consignee, for the “Importer Security Filing” is to provide the “10″ data elements component of the rule.  The responsibility of the steamship line is to provide the “Additional Carrier Requirements” which corresponds to the “+2″ portion of the rule.

The 10 data elements of the importer or consignee are to provide proof of: seller, buyer, importer, consignee, manufacturer, ship to party, country of origin, harmonized tariff schedule (HTS) number, container stuffing location, and consolidator. The 2 data elements of the steamship line are to produce: the vessel stow plan and the container status messages.

The rule has been a goal of Customs and Border Patrol for many years, as an effort to push supply chain security efforts back from our borders to the point of origin (or “stuffing”). The proposed rule was published back in January of 2008, with the final rule published in November of that same year. The effective date of the rule was this last January, 2009.  The full enforcement of the rule is happening later this month on January 26^th.
Unitrans Worldwide, Inc. employees are experts at this new rule and can conduct this mandatory government filing on your behalf to keep your company in compliance and save you possible hefty fines.