I recently reviewed two research papers for the Transportation Research Board in my role as a member of the Standing Committee on International Trade and Transportation.

While I recommended acceptance of both of these papers, they have not yet been published, so I may name them in a future post. These studies are academic in nature, highly technical, and contain plenty of statistics. They obviously won’t be of interest to everyone but they do make contributions to the literature in their fields. I am pleased to have had the opportunity to review these papers and am very impressed by the amount of work done by the authors.

Working remotely has become the norm with obvious advantages in cost savings and productivity. Managing remotely also brings challenges. While it is easy to move information and analyze data from any location, the human element is different. Without “face time” one of the big risks is miscommunication. Some basic management skills can help improve performance.

Here is a proven method for your toolbox. The links of the performance chain can are useful for day to day management and problem solving.

Expectations– Are goals and deliverables crystal clear? Don’t assume. Feedback– Information which is specific, timely, and relevant. Not just an annual review. Resources– Time, tools, and staffing to do the job right. Skills/Knowledge– Is training needed? Managers often point to training as the solution to problems. However, if employees know how to do the job training may not be the answer to performance issues. Look to the other links of the chain. Capacity– Does the person have the physical and mental ability to do the job with training? If not, reassign or terminate, and screen new hires more carefully. Incentives– What rewards are most meaningful to the workforce? These include money, benefits, flex time, etc. and will vary for individuals. Incentives are external and provided by the company. Motivation– Internal and personal to each employee. Top performers are self motivated. For others the idea is to bring out their motivation through incentives, training, or simply clearer expectations and feedback.

New to management? The performance chain is a good starting place. Experienced manager? Old dogs can learn new tricks.

From BIS (Bureau of Industry and Security) website….

GENERAL EXPORT LICENSE FAQS

Does my shipment require an export license? Maybe. A U.S. export license requirement from the Department of Commerce can be triggered by several important factors specific to your transaction: the actual item (commodity, software, or technology) that will be exported, where it is going, who is going to use it, and what they will be using it for. If any of these factors change in your transaction, the license requirements may change.

The customs broker license examination (CBLE) is scheduled for October 8, 2020, as previously announced in the Federal Register notice (84 FR 71440) published on December 27, 2019.  CBP will administer two examination sessions: one in the morning and one in the afternoon, the times will be announced soon.  CBP’s highest priority is the health and safety of all test-takers and CBP personnel.  Information will be added concerning the CBLE as soon as possible, please regularly check this website for updates regarding the October 8, 2020 examination.  If you have questions please email Headquarters Broker Management Branch at brokermanagement@cbp.dhs.gov.

Updated: July 28, 2020

Next Exam

The CBLE registration is scheduled to open early on August 3, 2020 and will close on September 8, 2020. 

David J. DiSanto • 1stDiSanto & Associates, Inc. Consulting in Supply Chain Analysis & Optimization2w • 2 weeks agoWould you buy airline stock now ?400,000 Jobs Lost at Airlines During Coronavirus Pandemicaviationpros.com • 2 min readAbout 400,000 airline workers have been fired, furloughed or told they may lose their jobs due to the coronavirus, according to Bloomberg calculations. The aviation industry has suffered more than most as the pandemic destroys ticket sales and strips..

Mitch Kostoulakos, LCB 

1m

Good question Dave. Would be a great investment if you pick the right airline.Like Mitch Kostoulakos, LCB’S comment

The Bureau of Industry and Security is a good resource for export compliance information and training.

Complying with U.S. Export Controls Virtual Seminar September 9-10, 2020

September 9-10, 2020 Complying with U.S. Export Controls

This two-day virtual program is led by BIS’s professional counseling staff and provides an in-depth examination of the Export Administration Regulations (EAR). The program will cover the information exporters need to know to comply with U.S. export control requirements on commercial goods. We will focus on what items and activities are subject to the EAR; how to determine your export control classification number (ECCN); steps to take to determine the export licensing requirements for your item; when you can export or reexport without applying for a license; export clearance procedures; and record keeping requirements.

As I have written in previous posts, it is a mistake to leave export compliance in the hands of your shipping department. Shippers are under time pressure to get shipments out the door and often do not have sufficient knowledge or training to avoid mistakes. In addition shippers rarely have the authority to stop shipments if they spot red flags and this can have big consequences. So don’t give shippers the responsibility for compliance without the authority.

Many exporters automatically classify their shipments as EAR99 and NLR without checking that these designations are accurate. A little due diligence goes a long way so here goes.

Exporters, do you know how to determine your ECCN (Export Control Classification Number)? While it is true that many exported commodities can be designated EAR 99 and NLR (No License Required), it is important to first check for an ECCN. The correct ECCN is necessary in order to determine if a license is required for your shipments.

There are three ways to determine ECCN: 1) self classify, 2) consult manufacturers of commodities, 3) request a classification by BIS.

The CCL (Commerce Control List) Index @ bis.gov is a good place to start.

If you need help contact mitch@52.91.45.227

The U.S.-Mexico-Canada Agreement entered into force on July 1st.
Check the CBP website under Trade for a list helpful FAQs

In a recent post we discussed Country of Origin and “substantial transformation”. Here are a few questions from the April 2019 Customs Broker License exam. If you sit for the exam you have 4.5 hours to answer 80 questions, or a little more than 3 minutes per question, in an open book format. Questions 8 and 9 may seem obvious using the substantial transformation rule. Question # 11 will take a deeper dive into the regulations and this is what makes the exam difficult as it may consume valuable time. Test yourself and post your answers if you like.

8. Swedish iron ore is refined into steel near the town of Essen, Germany, and subsequently fashioned into automobile radiators in Bratislava, Slovakia, in 2018. What marking is required for the automobile radiators?

A. Product of EEC B. Made in SK C. Product of Germany D. Made in Slovakia E. Made in Czechoslovakia

9. Fish are caught by a Norwegian flagged vessel in international waters off the coast of Portugal. The fish are kept either whole or filleted on-board. The fillets are sent to England, where they are seasoned, battered, and pre-fried. What is the country of origin of the battered fillets?

A. Portugal B. England C. Norway D. Canada E. Spain

11. Mr. Smith contacts your brokerage from the Customs area at the local international airport. He has just flown in from the UK and is attempting to bring in new Scottish 100% wool sweaters to sell at his new store. CBP has advised him that although an appropriate country of origin label is found affixed to the sweaters, the fiber content label is not acceptable. Which of the following actions should the local CBP brokerage take? A. The sweaters should be released to Mr. Smith if he agrees to remove the content label because no labeling is needed due to the exemption of wool wearing apparel. B. The sweaters should be released to Mr. Smith because they fall under the Wool Products Labeling Act of 1939. C. The sweaters must be returned to the UK. D. The sweaters should be released to Mr. Smith, but he will have to label the sweaters at his own expense under Customs supervision. E. The sweaters should be released to Mr. Smith, but a marking duty equal to 10% of the price in the domestic retail market duty should be assessed against Mr. Smith.

A. The sweaters should be released to Mr. Smith if he agrees to remove the content label because no labeling is needed due to the exemption of wool wearing apparel. B. The sweaters should be released to Mr. Smith because they fall under the Wool Products Labeling Act of 1939. C. The sweaters must be returned to the UK. D. The sweaters should be released to Mr. Smith, but he will have to label the sweaters at his own expense under Customs supervision. E. The sweaters should be released to Mr. Smith, but a marking duty equal to 10% of the price in the domestic retail market duty should be assessed against Mr. Smith.

Mitch Kostoulakos, LCB commented on thisDavid J. DiSanto • 1stDiSanto & Associates, Inc. Consulting in Supply Chain Analysis & Optimization2w •

The airline said it’s starting to see signs people are flying again. United expects passenger revenues to grow 50% to 100% between June and July, though that will still be down as much as 88% compared with last July, normally part of the busy summer travel season.

United Taps Frequent Flyer Program for $5 Billion Loan as Air Travel Remains Sluggish….United Airlines is using its frequent flyer program to borrow $5 billion as passenger travel, which ground to a near-halt during the COVID-19 pandemic, starts to pick up but remains far short of a typical summer travel season. The loan secured by its…

Mitch Kostoulakos, LCB   Licensed Customs Broker, International Logistics Consultant

EU is not an option for Americans right now