October 2014 Newsletter

Posted October 17, 2014
Category Company News

Attention Importers ~ Special Updates!!!

FDA Food Facility Registration Renewal Requirement

The Food and Drug Administration’s (FDA) Food Safety Modernization Act (FSMA) requires domestic and foreign facilities that manufacture, process, pack or hold food for human or animal consumption in the U.S. to register with FDA. Under FSMA, all food facilities that are required to register with FDA under Section 415 of the FD&C Act must renew their registrations with FDA, every other year, during the period of time beginning on October 1 and ending on December 31 of each even-numbered year.

Beginning on January 1, 2015, if a foreign food facility is required to register with the FDA, but fails to do so, food from that facility that is being imported or offered for import into the U.S. is subject to be held under Section 801(l) of the FD&C Act. Food Facility Registrations (FFR) that are not renewed by December 31, 2014 will be subject to invalidation of registration and could result in food shipments manufactured by those facilities without valid registrations to be held at the port upon arrival in the U.S. If you are an importer of food products for animal or human consumption, please visit www.access.fda.gov to renew your registration.

If you require Food Facility Registration Renewal Assistance or have questions regarding this matter, please contact your JWA Customer Service Rep or contact us at info@jwallen.com.

CBP Notice to the Area Port of New Orleans Trade Community
SUBJECT: Liquidated Damages Claims for Late ISF Violations

On May 13, 2014, CBP ports of entry were authorized to begin issuing up to three warning letters to importers who violate the ISF regulations. At that time, CBP ports of entry were also issued instructions that authorize the initiation of liquidated damages claims for ISF-10 non compliance after the third warning letter has been sent. ISF-10 violations that occurred prior to that date are not subject to the generation of one of the three warning letters.

Importers should be cognizant of this increase in scrutiny of ISF submissions and be aware of the consequences of untimely filing of such submissions. If you have any questions regarding this matter, please contact Acting Chief CBPO George Rizk at 504-623-6684.
Raymond S. Polley
Area Port Director New Orleans.

Louisiana Court Decision ~ Individuals can be Liable for Company Imports

A September 16, 2014 U.S. Court of Appeals decision to allow the president of an importing corporation to be held individually liable for customs penalties resulting from the ‘introduction’ into the United States of undervalued merchandise has broad implications for corporate officers, import managers and others involved in import operations.

In a reversal of its earlier decision, the court took special interest in the phrase ‘enter or introduce’ which they felt widened the scope of the word ‘persons’ which they determined extended beyond the importer of record. In citing their final ruling, the court stated since ‘the president of the company was actively involved in directing the importation of this merchandise, and did so on the basis of false statements, he “introduced” the merchandise and could be held liable for gross negligence.”

Tight trans-Pacific eastbound capacity resulting from higher cargo volumes leads to the rolling of cargo in Asia

Peak season shipments and diversion traffic has resulted in a spike in East Coast traffic as shippers worked to avoid potential West Coast labor disruptions. Ships are reportedly moving at, or very near to, full capacity to the East Coast.

Shippers in Asia say carriers are being selective about the cargo that makes it onto the trans-Pacific trek. Customers who pay higher prices, and whose cargo is therefore more lucrative for the carriers, are getting slots at the expense of those who pay lower contract rates. That is placing some shippers with contracts signed at lower rates than today’s spot rate at a disadvantage versus spot market shippers paying current rates.

“It’s not all of the time, and it’s not to everybody, but it’s happening,” an executive at one of the world’s largest 3PLs told JOC.com. “It’s not just rolling cargo, either. Sometimes we can’t even get a booking because things are so tight.”

When contract rates are lower than spot rates, most of the time one of two things can happen. First, carriers may choose not to honor the contract rates and quote higher spot rates. Or lower-priced cargo can sit at the port of origin in Asia as higher-priced cargo gets loaded on the ship, because financially challenged carriers are trying to maximize profit on every voyage during those rare moments capacity is tight. That lower-priced cargo gets rolled off of the ship, as carriers cut contracted space allocations in favor of loading the cargo that’s going to make them the most money.

~ News & Notes ~

Maersk and MSC filed a 10-year vessel-sharing plan with FMC known as ‘2M’ which extends to trades between ports in Northern Europe and the Mediterranean, ports on the U.S. Atlantic, Gulf and Pacific coasts and ports in Mexico and the Bahamas and ports in Asia (from) Japan to Malaysia. A 45-day review period follows the filing.

‘2M’ involves a total of 185 vessels with a capacity of 2.1 million TEUs and has a market share of 35 % on Asia-Europe, 16 % on trans-Pacific and 30 % on trans-Atlantic trades, according to Alphaliner.

The Army Corp of Engineers advises Mississippi River infrastructure needs fixing to handle increased shipping demands caused by higher agriculture, oil and natural gas production and to manage climate change effects.

While President Obama signed a $12.3 billion water projects bill in June that finances 34 new projects over the next 10 years, the Corp advises more investment is needed citing the United States ranks about 143rd in the world in infrastructure investment.

The American Society of Civil Engineers’ 2013 Report Card for America’s Infrastructure gave inland waterways a D-minus.

Long-haul trucker shortage expected to drive up wages as much as 6 % this year as the driver shortfall now exceeds 214,000 with rising cargo volumes adding an ever greater sense of urgency to fill the void. Trucking companies have responded by boosting wages by levels up to four times over the average industry wide wage increase. “You have the early stages of what could be a wage war,” said John Larkin, a Stifel Financial Corp. analyst in Baltimore. “It’s hard for others to stand pat and not take pay up.”

Top 10 U.S. Ports by Volume (January – July 2014)

1. Los Angeles, CA – 2,407,058 TEUs, (8.88 % increase)
2. Long Beach, CA – 2,024,073 TEUs (4.38 % increase)
3. New York/New Jersey (including 5. Newark) – 1,668,534 TEUs (6.42 % increase)
4. Savannah, GA – 736,881 TEUs (17.38 % increase)
5. Norfolk, VA – 554,312 TEUs (11.39 % increase)
6. Oakland, CA – 472,032 TEUs (4.53 % increase)
7. Tacoma, WA – 443,878 TEUs (10.8 % increase)
8. Charleston, SC – 426,561 TEUs (13.91 % increase)
9. Houston, TX – 414,414 TEUs (15.99 % increase)
10. Seattle, WA – 256,877 TEUs (23.13 % decrease)

Family News

Please join us in wishing the following employee Happy Birthday:

Jerry Becnel – October 12th

Please join us in wishing the following employee Happy Anniversary:

Sandy Frazier – October 26th (Celebrating 5 Years!!!)

“I want my children to have all the things I couldn’t afford. Then I want to move in with them.” Phyllis Diller

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