The Transportation Department this week unveiled a final rule that will place new financial security requirements on forwarders and freight brokers that fail to pay for services provided by a motor carrier. The new measures, first released as a proposed rule in January by the agency’s Federal Motor Carrier Safety Administration, are meant to address freight brokers and forwarders that purposely default on payments, triggering what can be a “costly and time consuming” process in a claims court that “generally results in motor carrier claims being paid pro rata.”
The Bureau of Industry and Security issued a temporary denial order on Nov. 7 against seven people and three companies for orchestrating a scheme to illegally export millions of dollars worth of export-controlled dual-use electronics to Russia. BIS said the U.S.-origin items were bought by Russian procurement agents and transshipped through other countries before being delivered to Russian companies with ties to the country’s military.
RANCHO MIRAGE, Calif. – The Federal Maritime Commission must eliminate the "perverse incentive" for ocean carriers and marine terminal operators to allow congestion as a way to make more money, FMC Chair Dan Maffei said, speaking Oct. 27 at the Pacific Coast Council's Western Cargo Conference, or Wesccon.
The Census Bureau is looking to eliminate one of two fields in the Automated Export System that collect redundant information on an export’s state of origin, said Omari Wooden, a Census official. Wooden, speaking Oct. 28 during the Pacific Coast Council's Western Cargo Conference, or Wesccon, said Census is hoping to either remove the state of origin data element in AES or not require the state to be reported in the address of the U.S. Principal Party in Interest.
Forwarders should think carefully before they file an export license application on behalf of a customer, a service that could make the forwarder liable in case of an export violation, said Tirrell McKnight, an official with the Bureau of Industry and Security's western regional office. McKnight suggested export application services should only be offered by forwarders who are confident in their export compliance, know their customers well and “want to take on that liability.”
The Census Bureau should remove the state of origin data element in the Automated Export System and instead direct state governments and other partner agencies to use the state reported in the address of the U.S. Principal Party in Interest, the National Customs Brokers & Forwarders Association of America said in comments to the agency this month. NCBFAA said a separate data field for the data element is “unnecessary” because Census’ Foreign Trade Regulations already require that the originating state be reported in the USPPI address data field.
Certain logistics companies and other parties that were previously eligible to be importers of record when shipping into Japan may no longer qualify as an IOR after a recent clarification by Japan’s customs authority, DLA Piper said in a client alert last week. The firm said it “may be worth reviewing the existing arrangements used for exporting goods to Japan to confirm who” must pay the Japanese consumption tax, which is done by the IOR, and who will be entitled to claim tax credit for that paid tax.
The Bureau of Industry and Security added 49 entities, mostly from China, to the Entity List for shipping microelectronics to Russian consignees connected to the country’s defense sector. The entities are semiconductor companies, technology businesses, logistics companies and others, and also include companies based in Estonia, Finland, Germany, India, Turkey, the United Arab Emirates and the U.K.
The U.K. updated its Russia sanctions guidance to add additional licensing grounds with the aim of divesting from Russia, the Office of Financial Sanctions Implementation said. The guidance says that, for divestment purposes, a license may be granted to provide oil refining goods, energy-related goods, luxury goods, jet fuel and "Russia's vulnerable goods" in Russia or to someone linked with Russia. The licensing grounds also cover the provision of technical assistance, brokering services, financial services or funds related to the oil refining goods, energy-related goods, jet fuel and Russia's vulnerable goods.
Texas Department of Public Safety inspections are causing delays at the ports of Eagle Pass and El Paso/Ysleta Bridge, but Southern border ports remain open for commercial processing despite an influx of migrants (see 2109200028), with the exception of rail at Eagle Pass, according to an email from a CBP official sent out by the Laredo Licensed U.S. Customs Broker Association.