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Category Archives: Nuts & Bolts
Post Covid Customer Service
Here is a link to my article published today:
https://www.linkedin.com/pulse/post-covid-customer-service-ad-hoc-logistics-llc
5 Steps to Export Compliance
Clients often know that they need help with export compliance but don’t know where to start. A written Export Compliance Program is the ideal way to keep compliant and is a good investment for any company to make. An ECP establishes clear accountability, written instructions, and reduces risk of non-compliance. However, an ECP is costly and time consuming, requiring a significant commitment on the part of management. If the exporter has not experienced problems or incurred any fines it is easy to make compliance a “back burner” issue. But doing nothing does not mitigate the risk!
Here are few best practices to help you get started :
1) Review and confirm correct Harmonized Tariff and Schedule B codes and maintain master list as updates occur. Proper classification follows established protocols and is the starting place for compliance.
2) Check Export Administration Regulations (EAR) for correct ECCN and license exception codes. Are you automatically using EAR99 and NLR? https://www.bis.doc.gov/ can help.
3) Confirm Country of Origin for all imports. This is not always obvious so consider consulting a Licensed Customs Broker.
4) Check common “Red Flags” such as denied parties lists, entities lists, and unverified lists. Once again, https://www.bis.doc.gov/ provides details and training.
5) Review export documentation for possible improvements.
Make export compliance a front-end process not a last minute shipping function. Remember, while Logistics Service Providers (LSPs) are valued partners, the exporter bears primary responsibility for compliance. Finally, if exporting under ITAR you need a responsible trained officer.
Contact mitch@52.91.45.227 for immediate assistance.
TRB Meeting
On July 13th I was honored to participate in the midyear meeting of the Standing Committee on International Trade and Transportation, which is part of the Transportation Research Board: National Academies of Sciences, Engineering, and Medicine. The committee reviews cutting edge research studies and makes recommendations for publication. While many committee members are from academia, I bring a logistics practitioner’s perspective.
The meeting included a very informative presentation on “Post Covid 19 Impacts on International Trade and Transportation”.
Becoming a “Friend of” a TRB committee thru the attached link is a great way to learn and get involved.
https://www.nationalacademies.org/trb/transportation-research-board
19% Pass Customs Broker Exam
CBP has posted this information on their website:
The bi-annual Customs broker license exam (CBLE) was administered on April 21, 2021. The electronic exam was held nationwide at over 120 testing locations and via remote proctor delivery. The exam results letters were emailed to the examinees on June 4, 2021. First appeals for the April 2021 exam are due to CBP no later than August 3, 2021.
The April 21, 2021 CBLE resulted in a 19% pass rate prior to appeal decisions.
The October 8, 2020 CBLE resulted in a 37% pass rate prior to appeal decisions.
Congratulations to those who passed the exam! Previous passing rates have rarely been higher than 10-15% so the test is obviously not easy. If you are planning to take the exam in October 2021 and would like some study tips I am happy to share what worked for me.
Contact mitch@52.91.45.227
Own It Exporters
Many of our posts focus on the basics of export compliance. Due diligence is required when filing EEIs, classification of Schedule B and ECCNs, and Country of Origin determination. An Export Compliance Program (ECP) is highly recommended as well as red flag screening, training, and audits. In spite of best efforts, mistakes will be made. In these cases a Voluntary Self-Disclosure is a smart move. Here is some info from the BIS (Bureau of Industry and Security) website:
Parties who believe they may have committed a violation of the EAR are encouraged to submit a Voluntary Self-Disclosure (VSD) to BIS. VSDs are an important indicator of a party’s desire to bring their export activities into compliance, and also may provide important information to BIS helping to identify foreign proliferation networks. Parties submitting VSDs may be eligible for significant reductions in administrative penalties, and those with well-implemented EMCPs may expect further significant reductions of administrative penalties. Procedures for submitting VSDs may be found in Section 764.5 of the EAR. The procedures detailed in Section 764.5 do not apply to VSDs involving violations of the antiboycott provisions of the EAR. Procedures for submitting VSDs for boycott violations are found in Section 764.8 of the EAR.
Contact mitch@52.91.45.227 for assistance in submitting VSDs.
LinkedIn Comment- Logistics People
Is Logistics still a people business or is the digital marketplace technology replacing the need for skilled 3PL/Logistics Pros? Or will tribal knowledge still remain a powerful differentiator?
In my opinion logistics providers must offer both high level technology and skilled people. Problem solving is a big part of logistics and clients want to follow up with trusted human contacts.
On the Borderline
The June edition of Logistics Management magazine includes a very informative article by John Schulz. Cross-Border Update illustrates the growth and complexities of trade among the three North American nations.
Along with information about USMCA and CTPAT, the author advises that in-house logistics teams must be properly trained on how to develop and maintain a classification matrix for commodities that are shipped across borders. This matrix should include Harmonized Tariff Schedule number, Schedule B number, Export Control Classification Number (ECCN), Export License Authorization, and Country of Origin, as well as any other pertinent customs data.
For help setting up your matrix contact mitch@52.91.45.227
LinkedIn Comment- USPS
Dean Maciuba• Last Mile Experts
Not a Major Part of USPS Change Strategy
It is disappointing to see that the USPS has invested 6 years in a new vehicle search process with a flawed result, that does not embrace electric vehicles (EV’s) Clearly, it was not a major objective for the USPS to specify a major, future role for EV’s during the evaluative process. Most likely, the organization must have intentionally specified a limited role for EV’s during the process with potential suppliers.
@Dean Maciuba thanks for a good post. Perhaps USPS could use EV charging stations as a revenue source by making them available to the public….
A Little Math
Tight capacity in the trucking industry illustrates the impact of density on freight rates. Here is an old school example from the archives:
Or you can use a density calculator!