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Wednesday, July 31, 2013

Hazardous Cargo Certification Training - What is the cost of NOT having the knowledge to handle these cargos?

Many of our clients and those who we work with in the industry often comment that they feel training does not have a return on investment.  That with the Internet, the resources available to assist and the outsourcing of functions, why should I pay to have someone in my office go get trained on how to properly handle hazardous cargo....just from the perspective of ensuring the proper information is reported to the carriers responsible to carry the cargo?  Heck, the carriers themselves should know what to do, right? 

Well, yes, they should but what can a cargo carrier do if they don't know, what they don't know?  What does a transport company do if they don't know what they are carrying?  What does a packing and/or consolidation facility know how to mark shipments if they are not properly reported?  Finally, how do you, as a shipper, forwarder, broker or the like, know how to properly classify cargo, especially if you don't even know a commodity is hazardous?  How do you know?  TRAINING!!!!

Here are some examples of Hazardous cargo not reported properly, or not classified properly, not marked properly or not even having the proper paperwork......

  • Value Jet 1996 - Undeclared Dangerous Goods.  No one knew it was hazardous...
  • Shipper improperly offered a class 6.1 Haz Material without proper paperwork, marking, labeling of packages and therefore it was undeclared...no one was trained in the company to handle this.  DOT Penalty paid - $11,500
  • Shipper improperly offered hypochlorite solution.  Did not register with PHMSA, no paper mentioned the emergency response numbers.  DOT Penalty paid $3044
  • Shipper improperly shipped acetone, not marked, not labeled, no certification, no UN class, no training of staff...DOT Penalty paid - $12,000.
For someone to take two 8 hour days to learn how to properly identify, document, mark, report, placard, classify etc, hazardous cargo and pay a few hundred dollars every three years to ensure that no cargo is shipped without properly classifying and document paperwork could save a company tens of thousands of dollars and in some cases, save lives. 

So, think about this...does your company have someone who is knowledgeable in hazardous cargo identification, classification etc?  If not, suggest getting certified in Hazardous Cargo Handling procedures and classification.  It takes no more than two days every three years to save thousands of dollars and many, many lives. 

Until next month, ARTEMUS OUT!

ARTEMUS Transportation Solutions provides Trade Compliance Web Based Software for Importer Security Filings (ISF, ISF 10+2) and Automated Manifest Filing  (AMS, AMS 24 hour Rule), fully compliant to the new ACE Standard (Automated Commercial Environment for US Customs ) Canadian Customs Automated Commercial Interface (ACI Canadian 24 Hour Rule) and Panama Customs Reporting.  These online products are accessible to all devices and media with Internet Access.  In addition, ATS provides online training and support materials all supporting those who work within international transportation and trade. Check out www.artemus.us for more information.   

Wednesday, June 5, 2013

The FMC has published Proposed OTI Reform Rules for Comment

This is a MUST READ to all OTI License holders

FMC publishes OTI reform rule notice | AS Daily Newsletter | AS Daily | American Shipper

Some highlights are
  1. OTI Licenses will need to be renewed every two years so they will no longer be "non-expiring"
  2. There are added requirements/guidelines for those who are OTI applicants Qualifying Individuals
  3. The financial requirements for OTI License applicants will change
  4. All applications must be submitted electronically.
 The exact details can be found at https://www.federalregister.gov/articles/2013/05/31/2013-12429/amendments-to-regulations-governing-ocean-transportation-intermediary-licensing-and-financial

If you need help navigating these changes, want to ask more questions or need help with getting your OTI License, please contact us at spniewski@artemus.us

Until next time, ARTEMUS OUT!

Friday, March 29, 2013

IMPORTER SECURITY FILING - DO IT YOURSELF OR BROKER IT OUT? - THE FACTS

There are still skeptics (like Importers, Freight Forwarders, NVOCC’s)  out there that claim “in order to file an ISF for a shipment, you must utilize a customs broker (obtain a custom house broker) because of their bond”.  This entry is meant to show that this statement is false, an importer or their agent can file using their bond.  Below are some excerpts taken from Customs FAQs on ISFs and bonds which anyone can access on the internet to myth-bust this claim.

Q: How will a bond for an ISF be filed in cases where an importer, or its agent, does not have a continuous bond? How will this actually work? Will there be paperless single transaction bonds for ISF purposes?


A: The Importer Security Filing (ISF)  Importer, or its agent, will need to obtain a bond which may be a continuous bond (type 1, 2, 3 or 4) or an Appendix D stand-alone ISF bond (single-transaction or continuous).

Q: If an agent allows his bond to be obligated, is he considered the ISF Importer with all of the liabilities associated with the ISF filing?

A: If an agent is submitting an Importer Security Filing (ISF) on behalf of another party and the agent posts its own bond, the agent agrees to have its own bond charged if there are breaches of obligations regarding the filing.  However, the IMPORTER remains ultimately liable for the complete, accurate, and timely ISF filing.

Q:  Does the “filing agent” for the importer have to be a Licensed Customs Broker?  Can it be the foreign freight forwarder?  Can the Importer File their own Importer Security Filings?
A: filing agent does not have to be a customs broker except for the case of a “unified filing.”  A foreign freight forwarder can also be a filing agent. An Importer can also set up and file their own Importer Security Filings. 

Q: Does an importer have to have the Importer Security Filing (ISF) stand-alone bond to be an ISF Importer?

A: No. An importer does not have to have the Importer Security Filing (ISF) stand-alone bond to be an ISF Importer.

AND LASTLY

Q: Will US Customs and Border Protection (CBP) accept one bond for the Importer Security Filing (ISF) filing and a second bond for entry? Is this true for a continuous bond as well as Single Transaction Bonds?

A: Yes. US Customs and Border Protection (CBP) will accept one bond for the Importer Security Filing (ISF) and a separate bond for entry. However, if the Importer Security Filing (ISF) Importer and the Importer of Record are the same party and the Importer Security Filing (ISF) and entry are submitted to US Customs and Border Protection (CBP) via the same electronic transmission (“unified filing option”), that party must submit one bond that secures both the Importer Security Filing (ISF) and the entry.

I think the last question and answer reflects when a broker is needed and that is only when (it specifies) a unified entry is made and both are submitted through the same electronic system, therefore one bond secures both the Importer Security Filing (ISF) and the entry.  However US Customs and Border Protection (CBP) will accept one bond for the Importer Security Filing (ISF) and a separate bond for the entry as noted above.  All importers are required to have a valid Customs bond in place and this bond can be used to fulfill your ISF bond requirements, thereby allowing you, or your agent to file ISF, providing potential cost savings.

The bond requirements are waived for the following ISF coded transactions:

            Type 3  Household Goods / Personal Effects

            Type 4  Government and Military

            Type 5  Diplomatic

            Type 6  Carnets

            Type 9  International Mail

            Type 11  Informal Shipments

We hope this clarifies the issue for some of you out there who are still unsure.  Please contact ARTEMUS Transportation Solutions if you should have any additional questions or need our services for your own Importer Security Filings (ISF), Automated Manifest Filings (AMS), or Canadian Automated Commercial Interface (ACI) filings.

Until next time, ARTEMUS OUT!



Wednesday, March 6, 2013

Hazardous Cargo - Do you really need training?

So don't think you need hazardous cargo handling training? This accident was due to a clerical error. Someone, somewhere, probably unemployed now, did not class this cargo correctly. In turn, the stow planners did not stow it correctly. In turn BOOM! Here is the result.

So many in the shipping industry feel they do not need to take training to handle hazardous cargo. But, fork lift drivers have to get certified to handle Hazardous Cargo, warehouse workers needs to know how to pack and placard boxes and your ship planners must understand the consequences of stowing hazardous cargo within a ocean vessel as the elements and/or motion and/or flashpoints of cargo and the location of that cargo on a vessel has serious repercussions...as illustrated above.

All of us in shipping oooh and awwe at pictures like this but maybe someone reading this post was one of those responsible for this.

As we take all the neccesary precautions to ensure safe travel on airplanes, trains, subways, and even our cars...these cargo vessels come into and out of the US in the hundreds and thousands EVERY SINGLE DAY.

Dont be the one to blame for this type of situation. If you handle hazardous cargo, do paperwork for hazardous shipments, help pack and stow this containers and cargos, get certified, get trained and let's try to avoid pictures like this from happening again, not to be forgotten, the cost of the mistake could run into the big bucks! There goes your insurance premiums!

Do you want to take immediate action and get train and certified today?   Just sign up for the ARTEMUS TS online Hazardous Course today 

Until next time, ARTEMUS OUT!

Tuesday, January 8, 2013

NVOCC - Negotiated Rate Arrangements or NRA's

Each week, a number of new applicants for OTI licenses are published to the general public.  This means that we continue to add to the over 3500 US NVOCC-FF to the market.  Many are looking for some guidance and tips to best work and build their business within this industry.  For an NVOCC, the establishment of the NRA is one of the newer tools to build lasting relationships with shippers and build your business in a very competitive environment. 

So, using some specific language from the Fed Regs published March 2 2011 Vol 76, No 41 Pages – 11351 – 11361 and paraphrasing and pointing out some additional specifics, this posts’ main purpose is to NVOCC’s and Shippers that there are other ways of entering into agreements that are not required to be published in the public tariff nor subject to the same publishing requirements as Service Contracts, Tariff Rates and NSA’s (Negotiated Service Arrangement).

‘‘NVOCC Negotiated Rate Arrangement’’ or ‘‘NRA’’ means a written and binding rate arrangement between a shipper and an eligible licensed NVOCC to provide specific transportation service for a stated cargo quantity, from origin to destination, on and after receipt of the cargo by the carrier or its agent (or the originating carrier in the case of through transportation) (definition source: Fed Reg Part 532.3 pg 11360 Definitions)

The NRA is a tool used to exempt the NVO and client service arrangements from having to publish rates within the Shipping Act requirement regarding publishing and hosting this information online.  This means that the NVO is exempt from publishing the rate as per the Shipping Act and as their FMC license requires…

(Further from the Fed Regs….) In order to qualify for the exemptions to the general rate publication requirement as set forth in section 532.2, an NRA must:
  • Be in writing;
  • Contain the legal name and address of the parties and any affiliates; and contain the names, title and addresses of the representatives of the parties agreeing to the NRA;
  • Be agreed to by both NRA shipper and NVOCC, prior to the date on which the cargo is received by the common carrier or its agent (including originating carriers in the case of through transportation);
  • Clearly specify the rate and the shipment or shipments to which such rate will apply; and
  • May not be modified after the time the initial shipment is received by the carrier or its agent (including originating carriers in the case of  through transportation).
An NVOCC wishing to invoke an exemption pursuant to this part must indicate that intention to the Commission and to the public by:
  • A prominent notice in its rules tariff and bills of lading or equivalent shipping documents; and
  • By so indicating on its Form FMC– 1 on file with the Commission. 
Further requirements of using the NRA, the NVOCC must state in their tariff rules of the use of NRA’s as part of their services and of course, allow access by the FMC to further audit this information upon request.  This also extends the requirement of allowing access to the Rule portion of the NVOCC Tariff to the public, free of charge. 

An NRA is not an NSA or Service Contract and therefore the NSA and/or Service Contracts must still meet the original publishing requirements of the Shipping Act and are not exempt from filing. 

If you would like more information about Tariff Filing, Tariff Publishing or if you are a start up or expanding NVOCC needing some support, help or just general questions answered, give us a call at 866-744-7101 or send us a message at information@artemus.us 

Until next time, ARTEMUS OUT!