UN shifts focus to turmoil in Africa, 7/16/03 Air Carrier Fuel Prices on Increase, 2/20/03 Lawmaker Raises Concern Over DHL, 12/16/02 Presentation of Vessel Cargo Declaration, 12/2/02
UN shifts focus to turmoil in Africa
By Thalif DeenUNITED NATIONS: Focusing its attention on one of the world's most politically troubled continents, the United Nations has decided to downsize its peacekeeping operations in Sierra Leone , upgrade its mission in the Democratic Republic of Congo (DRC), and push for the creation of a new UN intervention force in Liberia.
All three developments are taking place simultaneously, underlying the heavy emphasis on a continent which is experiencing 10 different inter-state and intra-state conflicts, including those in Burundi, Liberia, DRC, Cote d'Ivoire, Guinea- Bissau and Zimbabwe.
After a visit to the White House on Monday, UN Secretary- General Kofi Annan told reporters that he expects about 1,000 to 1,500 troops from the Economic Community of West African States (ECOWAS), including contingents from Nigeria and Ghana, to form a regional peacekeeping force to end the civil war in Liberia.
The United States, which has sent in a military team to assess the situation in Liberia, has demanded that Pres. Charles Taylor leave the country before the arrival of any troops in the capital of Monrovia.
"I assured (the Secretary-General) that our government's position (on Liberia) is a strong position," US President George W. Bush told reporters after meeting with Annan.
"We want to enable ECOWAS to get in and help create the conditions necessary for the ceasefire to hold, that Mr Taylor must leave, and that we'll participate with the troops," he added.
Although the United States has refused to make any firm troop commitments for a peacekeeping force in Liberia, Bush said his administration is still debating how Washington can logistically help create the new mission.
"I told the Secretary-General that we want to help, and there must be a UN presence, quickly, in Liberia," he said.
Bush also said that he discussed how long it would take for UN "blue-helmeted" troops to arrive in Liberia. "We would not be blue-helmeted. We would be there to facilitate - and then to leave."
The Secretary-General has described the situation in Liberia as "deplorable", with a million people trapped in Monrovia, and with 80 percent of the country inaccessible. Liberia's humanitarian needs are "very serious", Annan said, adding that the country is also facing serious human rights abuses.
"I think whatever we can do to help the Liberian situation will be appreciated by millions, not just in Liberia, but also around the continent," he added.
Annan said that with the arrival of a vanguard ECOWAS force, Taylor has promised to leave Liberia. "And then the force will be strengthened, hopefully, with US participation, and additional troops from the West African region," he added.
Eventually, UN blue helmets will be sent to stabilize the situation, along the lines of the UN peacekeeping mission in Sierra Leone. "Once the situation is calmer and stabilized, the US would leave and UN peacekeepers would carry on," Annan said.
After a closed-door meeting on Monday, Ambassador Inocencio Arias of Spain, president of the 15-member Security Council, told reporters that the Council had agreed to "respond quickly" to Annan's proposal last week for a reduction of the UN Mission in Sierra Leone (UNAMSIL).
The 13,000-strong UNAMSIL, currently the largest single UN peacekeeping force, is to be gradually phased out, with a view to a complete shutdown by December next year.
Annan has said that if the security situation continues to improve in Sierra Leone, UNAMSIL will close shop as early as June next year. The peacekeeping force in Sierra Leone has cost the United Nations over $500 million annually.
After a five-year civil war that killed more than 10,000 people and displaced several hundred thousand, a democratically elected government under Pres. Ahmad Tejan Kabbah signed a peace treaty with the rebel group Revolutionary United Front (RUF) in November 1996.
In May 1997, however, Kabbah was ousted in a military coup, but was restored to power in March 1998 with the help of a regional African peacekeeping force, the Economic Community of West African States Monitoring Group (ECOMOG), led by neighbouring Nigeria.
Although Kabbah regained office after a 10-month-long exile, the remnants of the RUF continued their fight despite the peace treaty. The United Nations decided to send a peacekeeping force in October 1999 to stabilize the Kabbah government.
Meanwhile, the UN Mission in DRC (MONUC) has been trying to monitor a ceasefire since November 1999. But the situation has taken a turn for the worse with ethnic clashes of genocidal proportions breaking out in the town of Bunia.
Annan has proposed that the 4,500-strong MONUC be upgraded to a 10,800-strong force: more than doubling the present military strength. "I think we are making progress on the Congo peacekeeping force," he told reporters on Monday. "We have asked for an increase in the ceiling (to 10,800 troops), and I think that is going to be done."
Last month the Security Council approved a 1,400-strong rapid deployment force specifically to contain the ethnic conflict in DRC. The force, led by a 1,000 French troops, is mandated to complete its peacekeeping mission by September this year.
In a 10-page briefing paper titled 'The Regional Crisis and Human Rights Abuses in West Africa,' the New York-based Human Rights Watch (HRW) said that the Security Council should hold governments in West Africa accountable for their support of abusive regimes and rebel groups.
"Just a month ago, Cote d'Ivoire was the big concern. Today, it's Liberia," HRW's Peter Takirambudde said. "This downward spiral in the region must be stopped, which means addressing the main human rights abusers throughout the region, and improving protection of civilians."
-Dawn/The InterPress News Service.
Air Carrier Fuel Prices on Increase
February 20, 2003The soaring price of crude oil is forcing airlines to raise their fuel surcharges:
- Northwest Airlines, Cargolux, KLM and Martinair announced plans to raise their fuel surcharges to 15 cents a kilo or the equivalent in local currency at the beginning of March, up from the current rate of $.10 cents.
- American Airlines announced late Friday that it will increase its surcharge by the same amount, effective Feb. 24.
- More carriers, including Air France and Lufthansa, are expected to follow suit early next week.
- Northwest's new surcharge for domestic shipments will be 7 cents a pound, up from 5 cents.
- American Airlines is lifting its surcharge on domestic freight to $.06 cents per pound.
- A fuel index used by most European airlines topped 165 during the past two weeks, triggering the surcharge increase to 15 cents.
If the index goes above 190, the carriers would raise the surcharge to $.20 cents.
Lawmaker Raises Concern Over DHL
12/16/02A US lawmaker has asked for an administrative law judge to review who controls air cargo firm DHL Airways , raising concerns about a possible breach of the 25% foreign ownership limit, according to a letter obtained by Reuters.
Sen. John Rockefeller said he feared that DHL has violated a US law that bars a foreign entity from owning more than 25% of a US carrier's voting stock because of a stake in the company by Germany's big postal firm Deutsche Post, which is 69% government-owned.
Available information "raise very serious concerns about whether DHL Airways is actually controlled by the German parent that claims to be a minority shareholder," the West Virginia Democrat said in a Nov. 18 letter to the US Department of Transportation.
A DHL official was not immediately available for comment.
In September the company issued a statement saying similar fears raised by its rival air shippers, FedEx Corp. and United Parcel Service, were unfounded and DHL complied with the ownership restrictions.
Rockefeller complained, among other things, that Deutsche Post paid for all maintenance, insurance, fuel and crew costs for DHL and that the airline's board is comprised of one American citizen, his two consultants and an executive from the postal service.
"It involves a exceedingly complex ownership arrangement for DHL Airways that appears to be intended to create the appearance of corporate independence while strengthening effective control by the German parent," he said.
A Transportation Department spokesman said the letter had been received but declined further comment.
Deutsche Post won approval in October from the European Commission to acquire Deutsche Lufthansa AG's 25% stake in DHL, bringing its holding in the package delivery firm to just over 75%.
Rockefeller demanded that a judge look into the matter, saying the DOT's inspector general had told his office that the department's review of the DHL ownership issue was handled in an "ad hoc and informal way." (Reuters)
December 2, 2002
Synopsis of Customs Rules Requiring Filing of
Cargo Declaration 24 Hours
In Advance of Cargo LoadingOn October 31, 2002 U.S. Customs published a final rule entitled Presentation of Vessel Cargo Declaration to Customs before Cargo is Laden Aboard Vessel at Foreign Port for Transport to the United States. The rule is scheduled to go into effect on December 2, 2002, although Customs has stated that it will not begin enforcement against non-fraudulent violations of the rule for 60 days following that date. Customs believes that, by giving the trade a total of 90 days to comply with this new rule, there should be adequate time in which to work through any problems.
The new rule requires that certain specified information about cargo destined to the United States from foreign ports be submitted to Customs in formal Cargo Declarations no later than 24 hours before that cargo is loaded on board the vessel. Failure to provide this information within the required time will subject the responsible parties to penalties and will likely delay the unloading of that cargo and, in certain instances, all other cargo on board a given vessel.
Purpose of the Rule
The purpose of the rule is to help Customs prevent the use of cargo containers and other instruments of transport from being used to commit terrorist acts in the United States. In particular, there is a real concern that cargo containers may be used to smuggle weapons of mass destruction into the United States.
This rule has been adopted in conjunction with the Container Security Initiative (CSI). CSI is a program in which the United States and foreign countries with ports from which U.S. bound cargoes originate reach agreements to place U.S. Customs inspectors at these ports to pre-screen cargo containers before they are shipped to the United States. Initially, Customs has targeted the countries containing the 20 major ports through which approximately 70% of all U.S. inbound containers transit. Countries, and their ports, which are already participants in the CSI program are as follows:
Country Ports
Canada Port of Halifax
Port of Montreal
Port of VancouverSingapore Port of Singapore Netherlands Port of Rotterdam Belgium Port of Antwerp France Port of LeHavre Germany Port of Bremerhaven
Port of HamburgHong Kong Port of Hong Kong Japan Port of Yokohama
Port of Tokyo
Port of Kobe
Port of NagoyaIn addition, on October 25, 2002, the United States announced that the Peoples Republic of China has agreed in principle to join with the United States in the Container Security Initiative.
Customs has identified four core elements of the CSI. These are: (1) identification of high-risk containers; (2) pre-screening of containers before they are shipped; (3) use of technology to screen high-risk containers; and (4) use of more secure containers. To accomplish these goals, Customs needs to have the cargo information at a time when the containers are still on foreign soil.
The Specific Requirements of the Rule
The rule states that, for any vessel arriving in the United States, Customs must receive from the carrier the vessels Cargo Declaration, Customs Form 1302, or a Customs-approved electronic equivalent, 24 hours before such cargo is laden aboard the vessel at the foreign port. The rule specifically exempts bulk cargo and permits carriers of break bulk cargo to apply for an exemption from the rules requirements. All other cargo, including military cargo, cargo from U.S. territories outside of the U.S. Customs Territory (i.e., the U.S. Virgin Islands), and foreign cargo remaining on board the vessels calling the United States (FROB cargo) are subject to this new requirement.
NVOCCs that are either licensed by or registered with the Federal Maritime Commission may electronically file the Cargo Declaration information with Customs rather than giving that information to the vessel operating carrier.
A number of specific data elements required on the Cargo Declaration have been added by this rule. These elements are as follows:
1. The last foreign port before the vessel departs for the United States;
2. The Standard Carrier Alpha Code (SCAC) assigned to the carrier;
3. The carrier-assigned voyage number;
4. The date the vessel is scheduled to arrive at the first U.S. port in Customs territory;
5. The numbers and quantities from the carriers ocean bill of lading, either master or house, as applicable (this means that the carrier must transmit the quantity of the lowest external packaging unit; containers and pallets are not acceptable manifested quantities; for example, a container containing 10 pallets with 200 cartons should be manifested as 200 cartons);
6. The first foreign port where the carrier takes possession of the cargo destined to the United States;
7. A precise description (or the Harmonized Tariff Schedule (HTS) numbers to the 6-digit level under which the cargo is classified if that information is received from the shipper) and weight of the cargo or, for a sealed container, the shippers declared description and weight of the cargo. Generic descriptions, specifically those such as FAK (freight of all kinds), General Cargo, and STC (said to contain) are not acceptable;
8. The shippers complete name and address, or identification number, from all bills of lading. (The identification number will be a unique number assigned by U.S. Customs upon the implementation of the Automated Commercial Environment);
9. The complete name and address of the consignee or the owner or owners representative, or identification number, from all bills of lading. (The identification number will be a unique number assigned by U.S. Customs upon implementation of the Automated Commercial Environment);
10. The vessel name, country of documentation and official vessel number. (The vessel number is the International Maritime Organization Number assigned to the vessel);
11. The foreign port where the cargo is laden on board;
12. Internationally recognized hazardous material code when such materials are being shipped;
13. Container numbers (for containerized shipments); and
14. The seal numbers fro all seals affixed to containers.
Obviously, portions of this information will not be in the possession of all parties to a shipment. Customs expects that these parties; shippers, NVOCCs, and vessel operators, will cooperate to ensure that the filer of the Cargo Declaration is able to provide all information in an accurate and timely manner.
Finally, the rule provides that a failure to file the required information accurately and 24 hours in advance of vessel loading may result in penalties for the party responsible and in cargo not being permitted to be unloaded from the vessel at U.S. ports.
Various Issues Arising From This Rule
Questions Regarding the Data Elements on the Cargo Declaration
There are a number of issues pertaining to the various data elements that must be included on the Cargo Declaration, whether it is transmitted to Customs electronically or in paper form. These will be dealt with separately below.
Commodity Descriptions
The rule requires precise descriptions of the commodities in the Cargo Declaration. It is not perfectly clear what Customs means by this requirement. On the one hand, we know that a description to the six-digit level under the Harmonized Tariff Schedule would meet the requirements. On the other hand, Customs has specifically forbidden generic descriptions such as FAK, General Cargo and Said to Contain. This is one of the issues that has been raised with Commissioner Bonner and we are hopeful of obtaining a clearer response in the near future.
In providing the commodity description on the Cargo Declaration, the vessel operator or NVOCC is entitled to rely on information provided by the shipper if the carrier receives the cargo in a sealed container. In such cases, the vessel operator or NVOCC is required to alert Customs to this fact by including a statement on the Cargo Declaration. In this regard, there are two alternatives. If the Cargo Declaration only covers containerized or palletized cargo, the NVOCC or vessel operator may include the following statement on the declaration:
The information appearing on the declaration relating to the quantity and description of the cargo is in each instance based on the shippers load and count. I have no knowledge or information which would lead me to believe or to suspect that the information furnished by the shipper is incomplete, inaccurate, or false in any way.
If the Cargo Declaration covers conventional cargo and containerized or palletized cargo, or both, the carrier should put the abbreviation SLAC next to each container or palletized shipment on the Cargo Declaration to which the statement applied and put the following statement at the end of the declaration:
The information appearing on this declaration relating to the quantity and description of cargo preceded by the abbreviation SLAC is in each instance based on the shippers load and count. I have no information which would lead me to believe or to suspect that the information furnished by the shipper is incomplete, inaccurate, or false in any way.
Finally, there is a distinction between the Customs requirement that cargo not be described on the Cargo Declaration as FAK, general Cargo, or by any other generic term, and the use of these descriptions for rating purposes.
The Consignee, Owner or Owners Representative
Customs has made it clear that the consignees name is to be provided on all Cargo Declarations except in the case of To Order shipments. For such shipments, where the carrier knows the name of the true consignee (as opposed to a nominal consignee such as a bank) the true consignees name must be shown on the Cargo Declaration. If the true consignees name is not known, the carrier must show the owner of the goods or the owners representative on the Cargo Declaration.
Container Seal
Customs has clarified that, for all sealed containers, the seal number of the last person/company to load the container must be shown on the Cargo Declaration.
Second Notify Party
There is a field in the AMS system identified as the Second Notify Party. All NVOCC and slot charterers using the AMS system to file the Cargo Declaration will be required to put the name of the vessel operator in this field. This will enable the vessel operator to know that a Cargo Declaration has been filed for that container and will also alert the vessel operator to any hold messages from Customs so that it will know whether the container is prohibited from being loaded on the vessel.
How Will This Rule Affect NVOCC Co-Loading?
According to Customs, the rule will not affect co-loading at all. Given the need to transmit data from co-loading NVOCCs to the master loaders, however, it is not so clear that there will not be an indirect effect, at least on co-loading activity overseas.
What Are the Differences Between Cargo Declaration Reporting in CSI Countries and Non-CSI Countries?
There are no differences between CSI and non-CSI countries for Cargo Declarations filed electronically via the AMS system. Paper Cargo Declarations, however, will be filed differently depending on whether the cargo originates in a CSI or non-CSI country.
All paper Cargo Declarations will have to be filed directly with the U.S. Customs inspectors at the ports in the CSI countries. The rules for filing in each country will vary according to the CSI agreement between that country and the United States. For cargo originating in non-CSI countries, all paper Cargo Declaration will have to be filed in the United States in the Customs district where the cargo is destined to be unloaded. All such paper Cargo Declarations must still be filed at least 24 hours in advance of vessel loading. For carriers located overseas, this obviously presents some operational difficulties. Paper Cargo Declarations will have to be filed via an agent and communications with Customs regarding containers subject to these Cargo Declarations will be between Customs and the Agent who will then have responsibility for communicating Customs instructions to the carrier.
In addition to the issues discussed above, it is inevitable that other issues will arise that will need to be discussed with Customs and resolved in a satisfactory manner. If you have any such questions or issues that have not been addressed in the materials you have seen, please do not hesitate to get in touch with us.
All Importers need to be fully informed about these new procedures. Steamship Lines are still developing their policies but it appears that Shippers will be required to supply certain manifest details well before sailing. This could require substantial changes in shipping processes for some overseas suppliers. It will be important that suppliers know and comply with the advance information requirements for each carrier that is moving their cargo.
home | ocean | air freight | secure shipments | special projects | import/brokerage
domestic
services | news
| contacts
| background