News

Parker & Company Worldwide Bridge Shutdowns from Customs

By Michele Schueler on May 02, 2019 at 04:06 PM in Industry News

Note on Bridge Shutdowns from Customs / Brokers meeting Pharr 4/2/19 -There is no notice to shut down CBP Pharr, no “prepare to shut down” instruction, and in there is no notice from Homeland Security that it is imminent. Now there are going to be delays not only at the passenger area but also at the commercial area of crossing.
- Reason: The immigration crisis is at a level not experienced by CBP in some time. On the 22nd of March, Homeland Security advised 750 CBP officers are to be redistributed to Border Patrol and taken from every customs port by percentage equally. They have closed commercial lanes from 7 lanes to 5 lanes.
- CBP will not be adding hours of operation
- CBP will be processing everything that arrives
- There is no time frames for this to go back to normal

How to help and assure your shipments get processed:
- They have a window between 7am to 11am that volume of shipments are very low. They encourage to cross in the morning more. If you have late shipments, have them process in evening but cross in early AM.
- Encourage your transportation companies to cross empties through the empty truck lane provided by CBP through the passenger area of crossing. Your carrier will need to assure truck has the user fee prepaid online, all data transmitted for driver, NO passenger allowed only driver, in order to use this lane. Will remove a lot of manpower that can be better used for commercial crossing.

Laredo experiencing delays in truck traffic – Due to the closure of some truck lanes northbound due to the lack of Customs personnel, Laredo is experiencing delays due to the fact the cross border dray companies are only getting 1-2 round trips per day versus 4. The shortage is not projected to let up any time soon. As with most border crossings on the southern border the least used time frame at crossings is 7am – 11 am. Shippers and receivers should program in extra days transit on their supply schedules.

Border Wait Times can be checked via this https://bwt.cbp.gov/index.htmlor also obtained in the BWT App on their smartphone via Apple App Store and Google Play (CBP BWT) so that they can observe the wait times at all the border crossings in order to make an informed decision on which bridge to use. These wait times are updated on an hourly basis.

Update on Law suit additional duties on Steel and Aluminum from Ron Silverman firm GDLSK
On March 25, 2019, a three-judge panel of the U.S. Court of International Trade (“CIT”) dismissed Am. Inst. For Int’l Steel v. Judges United States, CIT No. 18-00152, in which a number of plaintiffs had challenged President Trump’s decision of March 18, 2018 to impose a 25% additional duty on certain steel imports and a 10% additional duty on certain aluminum imports.

CBP struggles to fill officer ranks - The time to hire for the agency currently takes about 300 days, with less than 3 percent of applicants successfully completing the hiring process. By Chris Gillis | Mar 08, 2019 Congressional lawmakers are questioning why U.S. Customs and Border Protection continues to struggle to recruit and retain officers. CBP has not been able to meet its congressionally mandated hiring levels since fiscal year 2014, and “at the current rate, it takes about 50 applicants to hire one CBP officer,” said Rep. Dan Crenshaw, R-Texas, ranking member of the House Homeland Security Committee’s Oversight, Management and Accountability Subcommittee, during a hearing Thursday.

LNG news Port of Brownsville - Next Decade, Rio Grande Valley LNG receives a 20 year contract from Shell NA LNG LLC
Here is link to Story https://investors.next-decade.com/news-releases/news-release-details/nextdecade-and-shell-execute-2-mtpa-20-year-lng-sale-and


CTPAT news and bulletins –
Parker & Company encourages all customers, transport companies and warehouses our customers and transport partners to use the seven-point inspection process for empty containers prior to the loading the cargo, as well as the seventeen-point inspection process for all trailers/tractors, and that this should be followed. Here is a link to the page that has both procedures to be down loaded. The procedures are found in the CTPAT resources library at:
http://www.cbp.gov/border-security/ports-entry/cargo-security/c-tpat-customs-trade-partnership-against-terrorism/c-tpat-resourcelibrary-
and-job-aids

Trailer and container security; All customers and transport companies are reminded: all loaded U.S.-bound containers and
trailers must have a ISO 17712 high-security seal affixed.

Compromised seals: Parker and Company encourages all customers and business partners to report to CBP or
appropriate foreign authority compromised seals.

Trucking News from Fleet Owner Elaine Chow Transportation Secretary announced FMCSA is rolling our more flexible rules on
hours of service at the Mid America truck show the NPRM has been sent to the Office of Management and Budget for Review.
Customs Brokers, Carriers, and others to be scrutinized in Counterfeit Goods initiative – President Trump has directed
federal agencies to develop a plan to combat “the dangers and negative effects of counterfeit and pirated goods, including those
that re imported” through third-party intermediaries such as online marketplaces, carriers, customs brokers, payment providers,
venders, and others. A CQ article cites presidential trade advisor Peter Navarro as saying the White House is seeking to “shift the
burden” of policing counterfeit products to these entities.

Tariff Hike on $11 Billion in Imports from EU Could Come This Summer
Hundreds of goods imported from the European Union are on a preliminary list of products that could be subject to additional tariffs
as early as this summer in a long-running dispute over aircraft subsidies. Importers of goods on this list should consider taking
proactive measures to mitigate the impact of any potential tariff increase, such as working to have their products omitted from the
final list or considering alternative sourcing locations.

Tariffs to Remain in Place After China Deal, Trump Says
President Trump indicated this week that higher tariffs on $250 billion worth of goods imported from China will remain in place for
the foreseeable future. The president’s stance could complicate efforts to secure a bilateral trade agreement.

Mexico’s new HOS rule driving up truck rates - Tightening Mexican truck capacity fueled by new regulations cutting down on how
long drivers can stay behind the wheel and at loading docks is pushing up rates, with some users reporting increases of more than
10 percent. Transportation executives said capacity dropped by double digits after the new rules, which limit trucker work days to
no more than 14 hours — with mandated 30-minute rest breaks every five hours — went into force six months ago. Once their hours
expire, drivers are required to take an eight-hour break. That added to existing pressure on the nation’s trucking capacity that
stemmed from a driver shortage and a June 2018 rule mandating new certification and inspection requirements for double-tractor
trailers, which are a key component of many transportation plans in Mexico. The tightened capacity made it especially difficult for
some shippers to find trucking coverage in more remote areas of the country, forcing shippers and truckers to plan cargo moves
farther in advance and pay way over the odds to ensure their cargo arrived, container line executives told JOC.com. One trucker
said the lack of drivers has stunted his company’s fleet growth and investment, for fear of buying trucks for which he can’t find an
operator.

Stricter GSP Enforcement Highlights Need for Attention to Compliance- The Trump administration has taken a more active
approach to enforcement of the Generalized System of Preferences, which provides duty-free treatment for imports of thousands of
products. This shift presents both challenges and opportunities for companies utilizing this program.
United States Will Terminate GSP Designation of India and Turkey 03/04/2019 Washington, D.C. – At the direction of President
Donald J. Trump, U.S. Trade Representative Robert Lighthizer announced today that the United States intends to terminate India’s
and Turkey’s designations as beneficiary developing countries under the Generalized System of Preferences (GSP) program
because they no longer comply with the statutory eligibility criteria. India’s termination from GSP follows its failure to provide the

United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors. Turkey’s
termination from GSP follows a finding that it is sufficiently economically developed and should no longer benefit from preferential
market access to the United States market. By statute, these changes may not take effect until at least 60 days after the
notifications to Congress and the governments of India and Turkey, and will be enacted by a Presidential Proclamation.

Shippers / Receivers and Warehouses can assist keep transportation costs down by reviewing their loading and unloading
procedures so that trucks are spending maximum of their time on the road and not waiting at docks.
Overages and shortages the importer/exporter is obligated to notify CBP and/or any other appropriate law
enforcement agency of any errors and/or shortages and overages of merchandise that create a security risk in the
supply chain.

Foot notes - Articles in this newsletter are taken from variety of sources. Including Journal of Commerce, Sandler and Travis
newsletter, and NCBFAA briefings. Other articles are personally written by the newsletter publisher Frank Parker. Depending on
importance of the topic some articles may run for more than one issue of the newsletter. The publisher has taken all
reasonable steps to verify the accuracy of the content of this site. However, Parker & Company shall not be
responsible for errors or omissions. Any advice in this newsletter is general and we recommend you contact Parker
& Company licensed brokers or your customs council with specifics on your import or export transactions.