A KPMG June tax report on shipping and offshore activities details country developments on easing and restricting tax measures for the shipping industry. The report covers revisions of tonnage taxes in Croatia, Cyprus and Greece; reduced value-added tax rates in Germany; a recently issued tax regime for ship leasing in Hong Kong; and other information.

A longshoreman's union on the West Coast is calling for a one-day work stoppage on June 19 in response to racism and police brutality, the Local 10 leader told Jacobin magazine. International Longshore and Warehouse Union Local 10 is a majority African American local, and the stoppage is also in protest of what it called plans to privatize the port of Oakland. The stoppage will be for eight hours, and will affect all 29 ports on the West Coast.

The Federal Maritime Commission is using newly formed Supply Chain Innovation Teams to look into potential agency actions to reduce supply chain slowdowns related to the COVID-19 pandemic, the FMC said in an April 6 news release. Commissioner Rebecca Dye, who is overseeing the effort, and the teams will “begin work this week to identify what actions can provide immediate relief to the most pressing challenges the American freight delivery system faces from COVID-19 related disruptions,” it said. The information provided by team members about possible FMC actions “will dictate the scope and priorities of the Teams’ work,” it said. Dye said the teams “are committed to minimizing disruptions to the Nation’s cargo delivery system and will be prepared to offer practical solutions about what must be done to promote the competitive advantage of our supply chain networks,” The teams are an offshoot of the FMC's investigation into detention and demurrage fees that resulted in a proposed interpretive rule (see 2003170058).

Treasury Secretary Steven Mnuchin hasn't talked specifically to cargo airlines' executives, though he said with regard to passenger airlines “I've had conversations around the clock with all the airline CEOs.” Mnuchin spoke to reporters after leaving the Senate Republicans luncheon. “Essential travel, we want to have airlines that operate, maybe on a reduced basis. Airlines have a short-term liquidity issue, and absolutely, that's something we talked about today” with Senate Republicans. “I've also spoken to the [House] Speaker about that,” he said.

The Federal Maritime Commission should quickly adopt its proposed interpretive rule for addressing detention and demurrage charges (see 1909130026), trade associations said in a March 16 letter to the FMC. “With ongoing challenges posed by the coronavirus, there is real concern about these fees being assessed when there are equipment issues beyond the control of the shipper or motor carrier,” the groups said. “Thus, these fees appear to be punitive measures by the ocean carriers, not an incentive to expedite container flow.”

Export shipments out of the Port of Los Angeles fell 5.7% in February compared with last year, and overall traffic through the port fell by nearly a quarter, with declines expected to continue in March, the port said in a press release March 10. The coronavirus has been a major contributor to the decline. “We are more interconnected than ever with our global partners so it’s no surprise that Trans-Pacific maritime trade has been significantly impacted,” Port of Los Angeles Executive Director Gene Seroka said. “As factory production in China remains at low levels, we expect soft volumes in March. Looking ahead to anticipated manufacturing improvements, we will need to return empty containers to Asia and push lingering U.S. export boxes out swiftly,” Seroka said. “We’re actively working with our supply chain partners to be prepared for a cargo surge once production levels ramp up.” Imports were down 22.5% in the month of February. The Lunar New Year holiday in Asia was also a factor in the decline, the release said.

Hapag-Lloyd will require a minimum of four digits on Harmonized System codes to accompany U.S. and Canadian exports as of April 1, the carrier said in a notice. “To ensure high quality, faster Bill of Lading release and due to the increasing customs requirements of different countries throughout the world,” the company will require at least four digits “on your submission of Shipping Instructions for exports from Canada or the United States,” it said. When that information isn't available, “our documentation team will input an HS code that is determined to be suitably close to your commodity description,” it said. “It is your responsibility to review the inputted HS Code and advise if a correction is needed. Any costs, penalties or fines related to incorrect HS Code submission will be on customers account.”

The Agriculture Transportation Coalition is urging U.S. exporters, before loading their containers, to confirm with ocean carriers that the cargo will reach their Chinese customers and will have proper refrigeration in case of delays at Chinese ports due to the coronavirus outbreak. The AgTC also said it is continuing to urge ocean carriers to refrain from imposing detention penalties on containers that are stuck at ports due to the virus containment measures in place (see 2002030034). “Within China, the supply chain has been compromised, starting at the China maritime terminals extending all the way to the ultimate inland destination points,” the AgTC said in a Feb. 11 emailed press release.

The Basel Convention’s global ban on exporting e-waste and other hazardous materials to developing countries became international law Dec. 5, the Basel Action Network said. Ninety-nine countries have ratified the ban, but not the U.S., which “produces the most waste per-capita,” the green group said. Canada, Mexico and Japan are among nations that also have not ratified the ban.

A recent Federal Maritime Commission proposed rule would lead to a much fairer enforcement process for alleged violations of the Shipping Act, the National Customs Brokers & Forwarders Association of America said in comments submitted to the agency. The proposal would create a process for notifying a target of an investigation and allowing it to respond, and ensure that FMC commissioners see the target’s statement before deciding how to proceed. “As the members of the Commission would necessarily be involved at the outset, it seems more likely that potential enforcement cases would focus on issues that have a material adverse effect on trade or competition and minimize the initiation of cases that are based on relatively minor or technical infringements of regulations,” the NCBFAA said. The proposal would also make it “less likely that there would be an anecdotal approach to enforcement where only [the Bureau of Enforcement] and a respondent know what the issues in any prosecution actually involved.” But FMC should go beyond its proposal and create penalty and mitigation guidelines for Shipping Act violations, the trade group said.