Lizbeth Rodriguez-Johnson

Did you know that individuals who are admitted as refugees or granted asylum in the United States are U.S. persons under the ITAR? Following its issuance in April 2023 of guidance on how to avoid immigration-related discrimination when complying with export controls, DOJ continues its effort to enforce these legal requirements. This new case should serve as a reminder to ensure your company’s HR practices and export compliance program are in line with applicable legal requirements.

Mitch Kostoulakos, LCB Ad Hoc Logistics LLC, Int’l Logistics Consultant/Licensed Customs Broker

Good reminder that compliance needs upper management oversight. A C-level compliance officer would mitigate the risks of separate HR and Export Compliance silos.

Announcements

The next CBLE will be on October 25, 2023. The registration period will be earlier than for previous CBLE exam administrations. For the October 25, 2023 CBLE, registration opens on August 14, 2023 and closes on September 12, 2023. Please review the information under the “Exam Registration” drop-down for additional information and changes to the CBLE registration process.

ALSO: The exam configuration has changed for the October 25, 2023 CBLE. Although the exam still consists of 80 multiple-choice questions, each question will now only have four (4) possible answer choices instead of five (5) answer choices.

CBP has contracted with PDRI to administer the October 2023 exam. PDRI is utilizing PSI resources as part of administering the CBLE.

https://www.cbp.gov/trade/programs-administration/customs-brokers/license-examination-notice-examination

Screening export shipments has become routine for most companies involved in international trade. Export software packages can perform this task or it can be manual; using the Consolidated Screening List https://www.trade.gov/consolidated-screening-list or individual lists. No one wants to do business with the bad guys. However, the routine nature of export screening makes it likely that upper level management is not involved in the process.

Here is where C-level leadership is important:

SUPPLEMENT NO. 3 TO PART 732 – BIS’s “KNOW YOUR CUSTOMER” GUIDANCE
AND RED FLAGS

(3) Do not self-blind. Do not cut off the flow
of information that comes to your firm in the
normal course of business. For example, do not
instruct the sales force to tell potential customers
to refrain from discussing the actual end-use, end user, and ultimate country of destination for the
product your firm is seeking to sell. Do not put
on blinders that prevent the learning of relevant
information. An affirmative policy of steps to
avoid “bad” information would not insulate a
company from liability, and it would usually be
considered an aggravating factor in an
enforcement proceeding.

For help with exports or developing an ECP (Export Compliance Plan) contact mitch@adhoclogistics.com

Mitch Kostoulakos, LCB Ad Hoc Logistics LLC, Int’l Logistics Consultant/Licensed Customs Broker

Good advice from Kathy Fulton applying to all disasters and with hurricane season approaching…

Fulton also reiterated a request from many members of the non-profit relief community: Please don’t self-deploy to Maui or Big Island – and refrain from participating in product collection drives.
“Although the intention behind these efforts is good, they often create more challenges than they solve, including getting in the way of rescue efforts. So please don’t add to an already difficult situation,” she said. “If you truly wish to help, send funds. Cash donations allow non-profits to buy what they need, when and where they need it. And that will help survivors faster.”

Many of my clients are hard-working owners or operators of small businesses. They don’t have in-house compliance or logistics expertise, so must wear several hats. Day to day activities or unexpected issues take up most working hours. As a result, functions such as logistics planning and import/export compliance are often unmanaged or left entirely to LSPs (Logistics Service Providers).

Making sure that your business is in compliance with import and export regulations is good risk management as well as good business. Think of it as insurance. A few basic steps can make a big difference and can be implemented quickly.

Ad Hoc Logistics can provide step by step guidelines, train your employees, and set up sustainable procedures. Our copyrighted programs include:

Exporting for Smart People- Because You’re No Dummy
Red Flag Screening
A to Z of Managing Logistics

Contact mitch@adhoclogistics.com for info.

Mitch Kostoulakos, LCB• Ad Hoc Logistics LLC, Int’l Logistics Consultant/Licensed Customs Broker

I have always favored Continuing Education (CE) requirements for brokers. Now that this final rule has become effective I would suggest that CBP take a good look at the CBLE (Customs Broker License Exam). The passing rate for the April 2023 exam was only 5.5%. The rates for previous exams were low as well, so not many new brokers will be entering the profession. Is this what CBP wants?

LCBs take a look at the April exam and see if you could pass it.

https://lnkd.in/d2_ZdfzJ

Brandon Lord Director at U.S. Customs and Border ProtectionExecutive Director at U.S. Customs and Border Protection

On Monday, July 24, CBP’s final rule for our new Broker Continuing Education (CE) requirement became effective. Answers to a few frequent questions I’ve been getting:

1. CE credits won’t need to be reported by individually licensed brokers to CBP until the 2024-2027 Triennial Status Report that is due in February 2027.

2. CBP will not require the full 36 hours of CE credits during the initial 2024-2027 triennial. Future triennial periods will require the full 36 hours of CE credits.

3. CBP’s next step will be to solicit for and select accreditors who will review and approve non-government training content for broker continuing education credits.

Check out our website below and the factsheet under CBP Publications for more information. I look forward to implementing the CE requirement!

With less than 90 days before the next CBLE (Customs Broker License Exam), candidates are advised to start planning how to prep. Thanks to Pete Mento here is a group of LCBs ready to help you: https://www.linkedin.com/groups/12862151/

From the CBP website:

The next CBLE will be on October 25, 2023. Please continue to monitor these Announcements for the registration period dates to be posted.

CBP has contracted with PDRI to administer the October 2023 exam. PDRI is utilizing PSI resources as part of administering the CBLE.

CBP highly recommends that CBLE candidates have paper copies of the references available during the exam. Please click on the Reference Materials tab below for additional information.

NOTICE: Given the evolving COVID-19 situation examinees are responsible for checking the COVID-19 page (https://www.psionline.com/important-notice-update-concerning-covid-19-c…) regularly to find out if there is a vaccine and/or mask mandate at the registered testing site. It is THE EXAMINEE’S responsibility to stay up to date. CBP will NOT provide refunds for those who are unable to test due to being uninformed or are noncompliant with the COVID-19 policy at their respective testing sites. CBP recommends that the examinee checks the website regularly leading up to the exam, including the night before the CBLE.

Mid-year is a good time to check your HTS and Schedule B codes. The HTS has been revised 10 times so far in 2023. The Census Bureau publishes lists of obsolete Schedule B codes in January and July. Reviewing your codes at least semi-annually is a good business practice. However, in small/medium companies with minimal staffing this can easily be overlooked. When working with new clients checking codes is my first step in helping them achieve compliance with import and export regulations.

Why not take it one step further and develop a parts matrix listing descriptions, HTS codes, Schedule B codes, ECCN, License info, Country of Origin, and any other relevant import/export data? Your matrix will enable you to document new parts additions and changes as they occur. All departments involved in trade will be working with the same information so errors and omissions will be reduced.

Contact mitch@adhoclogistics.com for help with developing your matrix.

While most of my posts are focused on international logistics and regulations, I sometimes assist clients with domestic transportation issues. I have been on both sides of the table in the LTL industry so allow me to offer some thoughts.

Many shippers are making quick carrier changes at the moment due to the possible demise of YRC. Capacity will tighten and the remaining carriers will be selective in taking on, and pricing, new business. However, the industry will always be competitive and the pricing pendulum swings back and forth.

A common mistake made by small and medium sized clients is failing to prepare before meeting with carrier representatives. Another mistake is focusing on price. A better strategy is to emphasize value and show the desirability of your freight. If you determine that prospective carriers  have the capabilities to provide quality services you will be better prepared to discuss price.

Determine your specific transportation needs and goals ….for example

• Price- compare net rates (not % off because base rates differ), minimums
• Transit Times/Reliability- including pick up and delivery, terminal services, linehaul
• Inventory Costs- reduced transit time = reduced inventory costs… how transportation adds value
• Product Differentiation- faster, better service as a marketing tool
• Capability/Access- carrier has right equipment in right place at right time
• Security- carriers claim ratio and loss/damage experience
• Relationship- responsiveness and problem solving protocols

Analysis Prior to Negotiation

There is not much advantage to withholding your shipping profile from LSPs. Because the industry is competitive you will get a better deal if transportation providers know what volume they are bidding on and any specific service requirements. If this information is not available to them they will hedge their bets and be less aggressive in their offers. Gather some data and present it. This will give you professional status in the eyes of your carriers. Here is some minimum information needed. Most of it can be found in bill of lading or invoice files.

• Volume/Frequency- # of shipments per day, week, or month
• Weight- average weight per shipment
• Dimensions- standard dimensions, if any… palletized or non palletized…pictures are helpful
• Heaviest Shipping lanes- domestic and international
• Services- priority or economy, express or deferred
• Density- pounds per cubic foot ( for motor carriers)
• Classification- NMFC item numbers (for motor carriers)
• Dimensional Weight or Dim Factor (for air freight forwarders)
• Packaging type- transportation only, display, labeling
• Freight Payment Terms- prepaid, collect, third party
• Control- Who has authority to sign an agreement? Who makes routing decisions?

Request for Proposal/Request for Quotation

A formal RFP or RFQ is an effective way to both reduce transportation costs and gain the value that you need from your carriers. Ad Hoc Logistics can prepare your RFP/ RFQ, get it to the appropriate transportation providers, and even negotiate on your behalf.

Contact mitch@adhoclogistics.com for assistance.