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!

Japan Import Cargo - Advanced Filing Rules March 2014

Yes, the fever is spreading!  The need to report to your country's customs organization about the details surrounding a shipment of cargo coming in on the water continues to spread.   Customs Reporting, Cargo Reporting, Automated Manifest Reporting, Import Security Filing, Automated Commercial Reporting, Advance Cargo Reporting Information, all these terms have been used in countries such as the US, Canada, Australia, New Zealand, China, Euro Zone and now....JAPAN!

In March of 2014, it will be MANDATORY to file your cargo information destined to Japan at least 24 hours prior to vessel loading at the last foreign load port.  But, the ability to do this is NOW. 

Globally, Japan imports are #3 on the list of the worlds Imports...behind the US and China.  Yet, Japan imports less than half of what is imported into the US. 

Cargo security benefits all citizens, both on the export side and the import side.  Exports from the US to Japan are 4th among the top receiver of US Goods.  This is a market that is increasing by 5% - 7% a year.  But, the trade deficit with Japan is still upside down, where we of course, import more than we export with Japan. 

None of this matters to the security community.  The job of Customs and homeland security is to ensure that the respective citizens of a country are safe.  Advanced reporting of cargo information makes a country safer.  It is still easy to put on paper different information than what you load in a "box", the fact that cargo informaiton is sent in advance, gives the receiving countries more technologically advanced mechanisms to identify potential risks and stop things at origin, rather than let them travel to destination. 

The advance cargo reporting requirements are similar to that of the US.  Information at the BL level including contact addresses and phone numbers.  There are requirements of detailed cargo descriptions, based on HTSUS codes at the 6-digit level and the responsiblity of reporting the inbound cargo lies with the shipping company or NVOCC.  This can be done with direct system link with Japan Customs or through a service provider/software provider approved to allow reporting. 

So, over the next two years, please keep a look out for these requirements to come in place and if you are looking for a provider to report this information, please contact ARTEMUS at 866-744-7101 or information@artemus.us

Until next time, ARTEMUS OUT!

www.artemus.us

Transportation and the Role of the Software Provider

Who can you trust? Who should you use? What makes sense for your business?   Who's the most affordable?

So many of our clients approach us with the same issues that plague many companies in the international transportation and trade industry.  They tell us "We need a software product to manage our shipments, meet trade compliance requirements and, by the way, we want it cheap, it should do it all (and speak to us when we make a mistake and fix it for us yesterday)".   Typical requirements for clients, right?  ABSOLUTELY. 

Please read this paragraph....No matter what is said throughout the software industry...the fact is software is cheaper, faster, and easier and can “do it all”.  Besides those facts, a good software product is easy to use and should require little training and support to get started.  Finally, if mistakes are made, the software should fix it and then make sure that mistake does not happen again. 

But, would a client of ours (or a potential client) call Adobe, Microsoft, Apple etc. to get software to manage International Transportation and Trade shipments…maybe…but no one at these companies would know what a T&E is, what a disposition code means or even how to report a shipment that is transshipped, short shipped, or is FROB cargo…you know, basic shipping stuff.

No one at Microsoft, Apple or even our 50+ competitors knows how to handle these shipments like our staff, both from an operators perspective and from a software-user perspective.  All of us here at ARTEMUS have done the actual work, we have transported shipments all over the world so we know what needs to be done and how it should be done.  That’s what makes ARTEMUS Transportation Solutions so attractive to our clientele and has kept us in business for 8 years, getting ready to start our 9^th year. 

Listed below, are the most popular products and services ARTEMUS offers and the reasons why our products are state of the art, faster, easier, and cheaper. 

US CUSTOMS AND CANADIAN CUSTOMS SOFTWARE – Does your company import shipments into the US or Canada?  Do you control shipments that arrive on a vessel in the US or Canada but are destined to another country?  Well, our software is a one screen, single entry product that can do an entire vessel reporting in ONE CLICK!  Enter an entire shipment into the system ON ONE SCREEN!  Even an Importer Security Filing, one screen, one click, one time.  If you perform more than 5 shipments a month, we here at ARTEMUS can save you over $1000 a year by using our product. 

Our software is accessible from any internet enabled device.  Our system is available 24/7, we don’t charge you by the user, we charge by the shipment, just as you get paid.  Whether it is an AMS Filing or an ISF Filing or for Canada, and ACI Electronic Filing, ARTEMUS Compliance Solution is the cheapest, fastest, easiest, best supported, and most technologically advance product on the market today. 

RATE FILILNG AND TARIFF HOSTING SERVICES (powered by Info-X Software) – ARTEMUS, teaming with Info-X, have put into the market the first new RATE FILING and TARIFF HOSTING product in over 10 years.  This product is priced 35%-50% less than our nearest competitors and meets the FMC Requirements for Tariff Filing/Hosting.  As with all products ARTEMUS provides, it is the most cost effective, fastest, easiest and most technologically advanced product on the market today and is accessible on any device with internet access.  No special software required!

TRAINING – ONLINE AND CLASSROOM – Do you know how to do everything in the shipping industry?  Most of you who are reading this would say, of course!  I don’t need any training!  But, you do need Hazardous Cargo Certification or Recertification, correct?  You do need to know new regulatory requirements for terms and conditions, tariffs’, documentation, etc.  Well you can, with three clicks, take an online course and get all of this information while at the comfort of your desk or from the privacy of your home (pajama’s and coffee not included).  ARTEMUS conducts classroom training sessions consistently in New York, New Jersey, Virginia and Texas.  We can also provide the course at your facility at a very affordable price.  ALL STUDENTS who take our course are considered “alumni".  You have lifetime support with questions, feedback or help with any and all international trade support when needed….just an email or phone call away.   FINALLY, does your company have training classes that they would like to be put online?  ARTEMUS can do this for you, quickly and easily. 

With a partner like ARTEMUS, the only thing we cannot do is get you business….oh wait, we can do that too!  We refer shippers, exporters, agents and importers to our clients consistently.  We provide our clients with freight rate quotation opportunities to help their business.  We can also help you negotiate service contracts….yep, that too.  Finally, we can help set your company up as an Ocean Carrier or NVOCC.  Yes, we have done 5 of them in 2012 and expect to double that in 2013. 

With ARTEMUS as your long term partner, we can help you set up, build and manage your business, cheaper, faster, and provide you with all the solutions you need to be your clients best service provider. 

An easy answer to all of your transportation and trade needs and questions? ARTEMUS Transportation Solutions

Until Next Month….ARTEMUS OUT!

Follow the Effects of Hurricane Sandy on the Shipping Industry on the US. East Coast

Hurricane Sandy began its rampage on the east coast back on October 23^rd. Most of us heard of the start of a Tropical Depression and reports started to circulate about a potential “once in a lifetime” event up the eastern coast of the United States.  Most of us on the east coast, by the end of October, feel the air cool, the leaves turn and the chill of fall strike the air.  None of us even think much about a Hurricane this time of year as the official Hurricane Season was only about three weeks away from being over. But, this was a historical event…

How did this affect ocean cargo and shipping? 

Starting on October 23^rd, this storm was well south of Florida…in fact, directly south.  As the storm traveled north through Jamaica, Cuba and the Bahamas, it caused just minor tidal issues off of the Port of Miami/Palm Beach and Fort Pierce, which caused the Port Capt. to put in place Condition ZULU on October 26^th.  

As the storm continued north, the Port of Norfolk Virginia put Condition ZULU in place on Saturday October 27^th…, this was about the same time, the Coast Guardsman put into place a response exercise in North Carolina…a staging exercise, to ensure they were prepared for a potential disaster response as the storm went north.  Also, Master Carriers started to divert cargo through the Ports of Savannah and Charleston, SC that was previously destined to NYNJ Port; which began taking place on October 25^th. 

Then, as the storm passed Virginia, we saw port closures for days at the Port of Baltimore, Port of Philadelphia and of course, Port of New York and Port of Newark for almost a week.  Subsequently, we saw airport closures some of which lasted 4 days to almost a week. 

Most everyone has seen the personal devastation of the New York, New Jersey and Connecticut shorelines and all of the people affected by the storm. But, for our industry, even almost two weeks since the effects started to become visible, we have cargo needing to be diverted, both Air and Sea Cargo.  

Brokers/Forwarders, Carriers and US Customs having to redo paperwork, redo entries, remove holds, set up new container and shipment moves and the over utilization of road and domestic transportation to ensure cargo is not adversely affected or delayed, especially as the final holiday shipments starts to arrive.  When you see life lost and tragedy, you say, why care about the paperwork and diversion of my shipments?  Well, it’s because lives and livelihood of your staff and clients depend on this.  Your family and personal safety and health are extremely important but you also need to maintain an income and business to stay secure as well. 

The purpose of this piece is simple….many of our company’s do not prepare for this type of situation.  If there is anything we can learn from this it would that disasters happen at any place, at any time…but client satisfaction, business transactions, and freight orders continue and most clients expect delivery, even in these type of tragic situations.  

Start today to get a plan in place for all potential possibilities and ensure that even this type of once in a lifetime situation, your business can survive, your staff will still have jobs and your clients will still get your service…by taking the time to do the plan and test it, you could solidify your business for years to come and your clients and your staff will be more dedicated to you in the process.  

Finally, help out…help a vendor, help a customer, help an organization to get back on their feet.  Do what you can to ensure that the “chain” we work in remains productive and strong. 

Until next time…ARTEMUS OUT!

ACE – New Processing Environment for the Trade Commercial Industry in the US

As most reading this would know, ACE has been put into its final phases of full implementation.  That one large step, getting all trade information into one environment has been completed as of 29 Sept 2012.  This centralizes all shipment related data into one place with many participants benefiting from a centralized system, free of charge, for trade participants. 
In the following paragraphs, Artemus TS would like to point out the benefits for different participants who are using or can use this new environment. 

The list distributed by the Customs and Border Protection Service (from now on, CBP) says that those listed as Trade Participants are: Trade Account Owners, Brokers, Carriers (Truck, Rail and Sea), Importers, Self-Filers, Sureties and all those not covered with a label previously stated. 

The main discussion on this post is for the ARTEMUS TS clientele and how you can benefit from getting an account set up for yourself and your clients in ACE. 

For our Importer clients, you can set up an account in ACE for your shipments and enable your ability to manage your duty payments, track and trace the details of your shipments, add partners who can also review and track cargo under your control.  Importers can also check Hazardous Material Codes, check Harmonized Tariff Numbers and design your own reports for your cargo, stating the details for each shipment in form and structure to match your service needs. 

For our Carrier and Freight Forwarder Clients, you can search bond details, search your client details, give clients access to their shipment information, take care of In Bond Transaction Authorization details, design your own operations/service reports. Finally, Carriers and Forwarders can get cargo systems messages, to provide more proactive customer service for your clients’ shipments.  For Master Carriers, you can add/delete vessel details, rather than sending emails to CBP for these updates.  Carriers can also search vessel information and also provide these details to their clients. 

For more information or help with setting up your accounts for ARTEMUS TS Clients and/or their ultimate clients, please send us an email at ACE@artemus.us

CBP has many detailed documents listed on their website, some of which we will link you to rather than reprint information already very detailed. 

ACE 101

http://www.cbp.gov/linkhandler/cgov/trade/automated/modernization/ace/ace101.ctt/ace101.pdf

Trade Benefits from the Automated Commercial Environment

http://www.cbp.gov/linkhandler/cgov/trade/automated/modernization/ace/ace_benefits_automated.ctt/ace_benefits_automated.pdf

Information Notice: e-Manifest: Rail and Sea (M1)

http://www.cbp.gov/linkhandler/cgov/trade/automated/modernization/manifest_railsea/m1_trade.ctt/m1_trade.pdf

Create and Maintain Ocean Conveyances

http://www.cbp.gov/linkhandler/cgov/trade/automated/modernization/manifest_railsea/create_maintain.ctt/create_maintain.pdf

ACE Resource Contact Guide
http://www.cbp.gov/linkhandler/cgov/trade/automated/modernization/ace/ace_resource_guide.ctt/ace_resource_guide.pdf

Until next month, ARTEMUS OUT!

TAG BOX – AMS, ACE, Automated Commercial Environment, ACE M1, Automated Manifest System, Import Security Filing, ISF, ISF 10+2, Importer, Exporter, Import, Export, Customs, Customs Broker, ABI, ACI, Automated Commercial Interface, Canada Customs, 24 Hour Rule, 10+2 Rule, Ocean Shipping, Cargo Shipping, Logistics, Rail Carriers, Sea Carriers, Master Carriers, Import Documentation, Export Documentation, Hazardous Cargo Certification, Hazardous Cargo, HazMat.

Setting Up a New Ocean Carrier or NVOCC or Freight Forwarder

Start ups seem to be the focus of our upcoming election and also the regs and requirements for these start ups are at issue nationally. So, if you want to start an Ocean Carrier or NVOCC-FF business, there are several steps at a minimum that need to be completed in order for you to start operations.

Now, a bit of background here. ARTEMUS Transportation Solutions has helped start up 5 NVOCC-FF businesses over the last two years and 2 OCEAN CARRIERS during that time plus we are working with a third Master Carrier right now. So, that's the experience that goes with the entry you are reading. There are several details that are required beneath many of these steps but these basic steps are "required" parts of the process. So, here goes.....

First, what's in a name? What's the name of the company? Do you have your organization set up in the US as a corporation, LLC etc.?  If so, please obtain an EIN Number. This is required down the road.   With your company name, you also need a company contact or key person to represent your company in this process.  This name will be listed with the FMC and used when publishing your application to the public through the Federal Register.

Next, have financials available. If this is a company that already exists but is now looking to get into the US Market, your financial performance and corporate profile will be critical in many parts of the process.

Identify, what will you do? Are you a Master Carrier, Freight Forwarder or NVOCC? Let's get that SCAC for your company

Go to www.nmfta.org and apply for your Standard Carrier Alpha Code (SCAC). A letter is issued to you within 24-48 hours. This four digit identifier is used in so many areas.

Then, contact a bond or surety company and apply for your Type 3 Carrier Bond or continuous bond. The bond company can provide you with details on which would better suit your business.

Pick a Tariff Publishing Company to help you set up the publishing of your tariff. This applies more to the Master Carrier...could apply to the NVOCC and depending on your operation, might apply to the FF. Each case is different as we have found out.

For the Master Carrier, you need to start by going to the FMC Website and complete a FMC FORM-1. During this form filling out process, you will need to identify who will publish your tariff for you. There are several tariff filing companies available and you can usually get recommendations, based on what you are looking for.

For the NVOCC and Freight Forwarder, you need to get an FMC License. If you apply online, the cost is a third of what it would be if you print the application out and mail it in. This is also done through the www.FMC.gov website

Then, of course, you will need to set up filing your imports through AMS and ISF.  This is the company who can help you with this and teach you how to file your own shipments....ARTEMUS Transportation Solutions.

NEXT BLOG - So, now we have our tariff publishing company, our SCAC, our FMC License or Form 1 filled out, we have our bond, company name, corporation set up, and we are ready to go. Now, do you have your bill of lading set up and completed? What about your customer experience? Customer Service, Documentation process, managing containers, shipments etc. Do you have a shipment management system?

Check back later this month for the next steps in the process of How to Set Up a Master Carrier or NVOCC-Freight Forwarder. Until then.....

ARTEMUS OUT!

Automated Commercial Environment - Better Known as ACE - Its coming!

Just published and off the press on 29 March 2012 in Federal Regsiter Vol 77 #61...Department of Homeland Security - ACE or the Automated Commercial Environment for transmission of Ocean and Rail Cargo has now been deemed mandatory by 29 September 2012. Ok, what does this all mean?

Turns out ACE has been working for a very long time. Several organizations, this one included, have been part of the early adopter group whom have tested, fixed, retested, fixed and tested again to ensure that the transition from the old to the new is a seamless one. Being a part of this process, I can say, with confidence that this has been the best example of trade and CBP working together that I have seen or experienced in my 20+ years in the business.  There is real collaberation here and it shows in the development and now implementation of this upgrade to cargo security tracking. 

For many of those reading, the transition won't mean much. For this company, it is a back end change to our clients front end system. But for clients of our company, this opens up the possibility not only to track/trace shipments and input clearance but also monitor and perform functions previously assigned to a broker or forwarder. Being an importer, this give you more control over the data and functions of your shipment.

There is a great link to a document posted by CBP on ACE. Follow this link http://www.cbp.gov/xp/cgov/trade/automated/modernization/ace/ and click the PDF called TRADE BENEFITS.

Most Importers, NVO's, Carriers and Brokers are all looking to expand the relationship with their clients or vendors. ACE facilitates this. For the Importer, you can actually save money by using this environment to pay your duties. Also, you can see the actual duty charges specific to your shipment. For NVO. Carriers and Brokers, this portal environment provides customize reporting and customized functionality to improve your service to your clients.

This post is general. There is much more specific information available at the link above. The most important benefit is the centralization of our Homeland Security in relation to Cargo and allows better targeting and better monitoring of cargos posing a security risk to the United States. I think we all can agree, this is the best benefit of all.

Until next posting...ARTEMUS OUT!