Congress Appropriates Funding for Section 301 and Section 232 Exclusion Process:
Exclusion Process for Section 301 List 3 products Mandated
As the March 2 deadline for a potential increase in the List 3 tariffs approach, the recently passed appropriations bill provides for some possible relief to those currently dealing with the 10% tariffs.
Under the bill, Congress has mandated the USTR’s office to implement an exclusion process for products covered by List 3. USTR Robert Lighthizer had previously indicated that no exclusion process would be allowed for products on List 3 unless the tariffs were raised to 25% on March 2.
However, now the USTR’s office is tasked with implementing an exclusion process within 30 days from the date of the bill’s enactment. This process should be similar to the ones currently in place for the List 1 and List 2 products. Additional funding has been provided to the USTR’s office. The process for granting exclusions for products on List 1 and List 2 has been lengthy.
In addition, the USTR must report to the Congressional committees no later than 30 days after enactment of the Act on the status of the exclusion process.
As talks between the U.S. and China continue this week, we can hope for another delay in a potential increase and look forward to an exclusion process for those currently importing products on List 3.
In addition, the bill also appropriates additional funding to the Bureau of Industry and Security specifically earmarked for an “effective Section 232 exclusion process.” The Department shall provide quarterly reports to the Committees, due not later than 15 days after the end of each quarter, on the implementation of the exclusion process, which shall include: (a) the number of exclusion requests received; (b) the number of exclusion requests approved and denied; (c) the status of efforts to assist small- and medium-sized businesses in navigating the exclusion process; (d) Department-wide staffing levels for the exclusion process, including information on any staff detailed to complete this task; and (e) Department-wide funding by source appropriation and object class for costs undertaken to process the exclusions.
As there does not appear to be any relief in sight for the Section 232 tariffs on steel and aluminum products, this is hopefully a positive step for companies looking for relief from these tariffs.
If you have questions, please contact your BOC Representative.
TRANSPACIFIC CUSTOMER ADVISORY
GENERAL NOTICE – USWC DELAYS
Dear Valued Customer,
Please be informed that due to various factors, below vessels suffer a delay:
- PEARL – CC A. LINCOLN: 7 days late at LAX
- PEARL – APL SENTOSA: 9 days late at LAX
- PEARL – CSCL SATURN: 5 days late at FUG
- BOHAI – COSCO PORTUGAL: 5 days late at TAO (due to phase out)
- BOHAI – COSCO YANTIAN: 8 days late at PRR
- BOHAI – CSCL SOUTH CHINA SEA: 7 days late at PRR
- HBB – ITAL CONTESSA: 7 days late at TYO (due to phase out)
- SCS – OOCL GENOA: 5 days late at KHH
- PSX – COSCO BELGIUM: 5 days late at LGB
- COLUMBUS JAX – CC TAGE: 5 days late at HKG
- CPNW CIMEX1 – APL SOUTHAMPTON: 5 days late at SIN
- CPNW CIMEX1 – CC PEGASUS: 15 days late at VAN
- CPNW CIMEX1 – CC LYRA: 15 days late at VAN
- CPNW CIMEX1 – CC TUTICORIN: 6 days late at SEA
- CPNW CIMEX1 – CC AQUILA: 5 days late at SEA
- TPX CIMEX7 – CSCL AUTUMN: 7 days late at PRR
- NWX – EVER SIGMA: 8 days late at VAN
- NWX – EVER STRONG: 6 days late at TIW
- NWX – EVER EAGLE: 7 days late at VAN
- NWX – EVER SUMMIT: 7 days late at VAN
Delays are due to bad weather crossing pacific and congestion in US/CA ports.
Actions have been taken in cooperation with the ports to improve significantly our transit time reliability.
Thank you for your continued support. For more information, please contact your local CMA CGM sales representative.
Sincerely,
Asia Regional Office – Transpacific Lines
CMA CGM Asia Pte Ltd
9 North Buona Vista Drive #13-01/04 The Metropolis (Tower 1) Singapore 138588
Tel: (65) 6714 2600 Fax: (65) 6714 2699
Business Registration / GST No. 201606722M
www.cma-cgm.com
China Airlines Pilot Strike Enters Fifth Day
by Jennifer Meszaros – February 12, 2019, 9:30 AM (Excerpted from www.ainonline.com)
Taiwanese flag carrier China Airlines remains locked in a bitter dispute with its pilots’ union after a second round of negotiations failed on Monday evening over a list of grievances varying from pilots’ working hours and year-end bonuses to transparency over promotions. Longstanding disagreements over poor management and work pressure combined with labor-law violations prompted China Airline pilots to call a strike on February 8 amid Asia’s Lunar New Year holiday.
Talks between the Taoyuan Union of Pilots, China Airlines management, and the Ministry of Transportation and Communications (MOTC) resulted in a complete impasse Monday after the airline refused to meet the pilots’ demands over working hours. Union representatives want the airline to roster three pilots instead of the current two on flights lasting more than seven hours to counter fatigue and reduce flight risks. China Airlines rejected the union’s demands on the grounds that the extra manpower would result in a spike of annual operating costs.
China Airlines mainly serves regional routes to destinations in Northeast and Southeast Asia; some 40 percent of all flights last seven hours or more. On a seven-hour flight, the union said pilots actually work for at least nine hours and may get only five to six hours of rest time between flights. Following the first round of negotiations, the airline agreed to schedule three pilots on eight-hour flights, arguing its rostering policy aligned with global industry standards.
According to a China Airlines spokesperson, the strike between February 8 and February 11 resulted in a loss of $3.41 million in revenue after the cancellation of 80 flights. Although some 600 of the airline’s 1,300 pilots have participated in the strike, the Taiwanese flag carrier has managed to maintain 90 percent of its schedule.
While pilot working hours remains the key sticking point, the union has also called for China Airlines’ chairman Nuan-Hsuan Ho to step down from his position, which he has held since 2016. In a statement released on Friday, the union said the airline had violated the Labor Standards Act and the Occupational Safety and Health Act 33 times under Ho’s leadership. Additional demands include the dismissal of managers who have harmed employer-employee relations; greater transparency over recruitment, training programs and promotions; a year-end bonus comparable to that of Taiwan’s EVA Air; and protection of employees involved in union activities.
A China Airlines Boeing 777-300ER takes off from Taiwan’s Kaohsiung International Airport. (Flickr: Creative Commons (BY-ND) by Chung ChengYen)
We are pleased to announce that 1A Auto has named BOC as their choice for 2018 Supply Chain Provider of the Year(award letter below).
1A Auto, Inc. is a family-owned, online aftermarket auto parts retailer based in Westford, MA with other offices in Taiwan, Mexico, and Kansas. They have a comprehensive automotive video library with over 7,000 videos to empower their customers to make “do it yourself” repairs on the automobiles(www.1aauto.com).
We are grateful for 1A Auto’s partnership and look forward to growing our businesses together in the future. Thank you to all BOC customers for their efforts in working with us as one unit to build world-class supply chains. A wise football coach quoted below summarizes BOC’s core value of a one unit approach eloquently:
“There is an old saying about the strength of the wolf is the pack, and I think there is a lot of truth to that. On a football team, it’s not the strength of the individual players, but it is the strength of the UNIT and how they all function together.” Bill Belichick
West Coast Situation – Update 1
January 15, 2019
Dear Valued Customer,
As we continued to dig out from the unprecedented volumes discharged in US ports during the course of time prior to the Lunar New Year, we are experiencing heavy congestion, especially in the ports of Los Angeles and Long Beach.
Port Delays
Because of the congestion and extra vessels calling LAX/LGB, there have been overall labor shortages. The Pacific Maritime Association (PMA) has implemented work gang allocations. Vessels are waiting 2-3 shifts after arrival prior to receiving labor and what is allocated is based on ship size. This delays cargo availability, extends the vessels at berth and causes bunching of vessels as they are delayed leaving the area.
Chassis Shortages
The chassis pool of pools (PoP) has increased to 68,000 but chassis supply remains constrained due to the amount of imports and importers keeping containers and chassis in their yards longer than average.
Import Container Dwell Times
As noted, importers are holding containers longer than average. Average on the street dwell time has increased to 7 days. This is an increase of 3 days over normal periods.
Terminal Congestion
As terminals are trying to cope with these import flows having issues evacuating containers due to chassis issues, their congestion issues worsen as they start to face gridlock. Terminals are maxed out space-wise and the normal flow of appointments is being interrupted as they simply have too much in certain areas of their yards to be able to work. Some terminals are refusing to accept empties from carriers they try to dig out of the volumes they have on-dock.
Truck Power
Given the flow of cargo and the congestion, truckers are in high demand which leads to difficulties when allocating drivers, making it difficult to get containers out of terminals.
Rail
Railcar supply is also challenged, which forces terminals to change many destinations from on-dock to off- dock. This means that containers need to be trucked out of the port, putting more pressure on trucker and chassis supply.
All these factors contribute significantly to the challenges that we are experiencing in Los Angeles and Long Beach. We are asking and encouraging all our customers to pick up their containers as soon as possible, upon availability and return the chassis and empty container as quickly as possible. The more chassis we have in the pool to evacuate loads, enables us to begin to clear up this congestion and return to normal operating procedures.
As a reminder, for all containers that charges incurred due to containers staying in the port too long, or not being returned in a timely manner, will be for the account of the importer of record.
Source: www.cma-cgm.com CUSTOMER ADVISORY #12-011519 Update 1
Hapag-Lloyd has evacuated the crew of the containership Yantian Express after the fire aboard the vessel increased in intensity.
Namely, the shipping firm said that the ship’s crew of 8 officers and 15 seafarers “is unharmed and was safely transferred” to the salvage tug Smit Nicobar on January 5 and 6.
“Due to bad weather conditions, the fire has not been successfully contained yet and has significantly increased in intensity at times,” Hapag-Lloyd said, adding that firefighting support at the site is ongoing.
The fire broke out on January 3 in one container on Yantian Express’ deck and spread to additional containers.
“At this time, it is not possible to make a precise estimate of any damage to Yantian Express or its cargo,” the company continued.
The 7,510 TEU Yantian Express was on its way from Colombo to Halifax via the Suez Canal when the fire started. The ship is currently around 800 nautical miles off the coast of Canada, Nova Scotia.
MSC Zoe Loses Up to 270 Containers Overboard in North Sea
January 2, 2019 by Mike Schuler
The Dutch Coastguard has issued a navigational warning after an ultra-large containership lost scores of containers while underway in the North Sea.
The ship, MSC ZOE, was in German waters when it lost the containers in heavy seas between Vlieland, Netherlands and the German Bight in the southeastern North Sea on New Year’s Day.
The Coastguard initially reported about 30 containers lost. However, an update Wednesday morning said it now understands that a whopping 270 containers went overboard.
Photos released Wednesday by Germany’s Havariekommando shows toppled boxes both fore and aft of the ship’s superstructure:
Photo: Havariekommando |
The Coastguard is warning ships in the vicinity keep an eye out for containers floating in the water.
At least 21 containers with loose goods have washed up on the Dutch islands of Vlieland, Terschelling and Ameland.
The MSC ZOE was underway from Antwerp, Belgium to Bremerhaven, Germany at the time of the incident.
Delivered in 2015, the 396-meter-long MSC Zoe ranks among the world’s largest containerships with a carrying capacity of 19,224 TEU.
The contents of all lost containers has not been confirmed, however at least three are reported to contain hazardous materials.
The Coastguard is warning the public not to handle or approach any of the containers.
Photo: Havariekommando |
A Challenge to Shippers Who Would Never Dream of Controlling the Insurance
Shippers who rely on suppliers to furnish cargo insurance or who rely on their carriers to take responsibility for losses may be in for a big surprise. Protecting your investments by insuring your goods provides peace of mind.
Buying CIF: Who’s really responsible if your product is lost or damaged in transit? According to internationally accepted trade terms, referred to as Incoterms, suppliers selling “CIF” (Cost, Insurance, Freight) are responsible for arranging cargo insurance. But just because your supplier has the obligation to arrange insurance under CIF terms, it doesn’t mean that they are ultimately responsible if your product is lost or damaged during transit. The ultimate burden of loss falls upon you, the buyer. This is why many experts recommend importers change their buying terms to EXW, FOB, FCA, CFR or similar terms in order to control the selection, and thereby the quality, of insurance coverage.
How much is that insurance really costing you? Foreign suppliers and their forwarding agents often tack on placement fees to the insurance costs. Those added fees often inflate the cost of insurance well beyond market pricing for the same coverage purchased in the United States. Find out how much you’re really paying and then compare quotes received from BOC International.
Is the coverage your supplier purchased for you adequate? Importers relying on their suppliers to arrange insurance run the risk of having inadequate insurance coverage. Cargo insurance policies can vary widely in levels of coverage, deductibles and special restrictions. Ask your supplier for a complete copy of the insurance policy or for a certificate of insurance detailing all the policy terms and conditions
What’s the financial health of your supplier’s insurance company? Recent financial and catastrophic events have exposed the vulnerability of insurance companies to sudden economic devastation. Importers are encouraged to make certain their suppliers use insurers with a favorable financial rating supplied by a respected financial rating service. A.M. Best, Standard & Poor’s and Moody’s are among some of the world’s most respected. BOC’s insurance company, underwriters at Lloyd’s of London, has an A.M. Best financial rating of A (Excellent).
How will your claim be handled? If insurance is arranged overseas, will you be forced to deal with an inexperienced, sub-contracted independent adjuster unfamiliar with the assessment of transportation related losses? Ask your supplier for a list of insurance claims adjusters contracted by the insurance company. Adjuster and surveyor networks approved by Lloyd’s of London and AIMA are among the most credible. BOC has a vested interest in your insurance needs and will directly handle cargo claim documentation requirements to ensure prompt processing and timely settlement.
Every Shipper Needs Cargo Insurance
Global trading involves risk; however, broad insurance coverage minimizes your financial risk. Don’t leave your livelihood up to chance! Statistics show that one ship sinks each day and you will experience a General Average loss every eight years. If you are depending on the carrier to cover losses, their responsibility is limited by law as follows:
Ocean Carriers $500 per shipping unit
A shipping unit may be defined as one ocean container.
Air Carriers $9.07 per pound
Truckers $.50 per pound
The insurance we offer is competitively priced and insures approved merchandise against physical loss or damage from external causes. By purchasing cargo insurance, you can avoid inconvenience and frustration. Contact your BOC Representative at 617-345-0050 for your free quote.
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Notice of Product Exclusions: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of product exclusions.
SUMMARY: Effective July 6, 2018, the U.S. Trade Representative (Trade Representative) imposed additional duties on goods of China with an annual trade value of approximately $34 billion (the $34 billion action) as part of the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The Trade Representative’s determination included a decision to establish a product exclusion process. The Trade Representative initiated the exclusion process in July 2018, and stakeholders have proceeded to submit requests for the exclusion of specific products. This notice announces the Trade Representative’s determination to grant certain exclusion requests, as specified in the Annex to this notice. The Trade Representative will continue to issue decisions on pending requests on a periodic basis.
DATES: The product exclusions announced in this notice will apply as of the July 6, 2018 effective date of the $34 billion action and will extend for one year after the publication of this notice. U.S. Customs and Border Protection will issue instructions on entry guidance and implementation.
FOR FURTHER INFORMATION CONTACT: For general questions about this notice, contact Assistant General Counsels Arthur Tsao or Megan Grimball, or Director of Industrial Goods Justin Hoffmann at (202) 395-5725. For specific questions on customs classification or implementation of the product exclusions identified in the Annex to this notice, contact traderemedy@cbp.dhs.gov.
SUPPLEMENTARY INFORMATION:
- Background
For background on the proceedings in this investigation, please see the prior notices issued in the investigation, including 82 FR 40213 (August 23, 2017), 83 FR
14906 (April 6, 2018), 83 FR 28710 (June 20, 2018), 83 FR 33608 (July 17, 2018), 83
FR 38760 (August 7, 2018), and 83 FR 40823 (August 16, 2018), 83 FR 47974
(September 21, 2018), and 83 FR 65198 (December 19, 2018).
Effective July 6, 2018, the Trade Representative imposed additional 25 percent duties on goods of China classified in 818 8-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), with an approximate annual trade value of $34 billion. See 83 FR 28710. The Trade Representative’s determination included a decision to establish a process by which U.S. stakeholders may request exclusion of particular products classified within an 8-digit HTSUS subheading covered by the $34 billion action from the additional duties. The Trade Representative issued a notice setting out the process for the product exclusions, and opening a public docket. See 83 FR 32181 (the July 11 notice).
Under the July 11 notice, requests for exclusion had to identify the product subject to the request in terms of the physical characteristics that distinguish the product from other products within the relevant 8-digit subheading covered by the $34 billion action. Requestors also had to provide the 10-digit subheading of the HTSUS most applicable to the particular product requested for exclusion, and could submit information on the ability of U.S. Customs and Border Protection to administer the requested exclusion. Requestors had to provide the quantity and value of the Chinese-origin product that the requestor purchased in the last three years. With regard to the rationale for the requested exclusion, requests had to address the following factors:
- Whether the particular product only is available from China and specifically whether the particular product and/or a comparable product is available from sources in the United States and/or third countries.
- Whether the imposition of additional duties on the particular product would cause severe economic harm to the requestor or other U.S. interests.
- Whether the particular product is strategically important or related to “Made in China 2025” or other Chinese industrial programs.
The July 11 notice stated that the Trade Representative would take into account whether an exclusion would undermine the objective of the Section 301 investigation.
The July 11 notice required submission of requests for exclusion from the $34 billion action no later than October 9, 2018, and noted that the Trade Representative would periodically announce decisions. The Trade Representative regularly updates the status of each pending request and posts the status at https://ustr.gov/issue- areas/enforcement/section-301-investigations/request-exclusion.
- Determination to Grant Certain Exclusions
Based on the evaluation of the factors set out in the July 11 notice, which are summarized above, pursuant to sections 301(b), 301(c), and 307(a) of the Trade Act of 1974, as amended, and in accordance with the advice of the interagency Section 301 Committee, the Trade Representative has determined to grant the product exclusions set out in the Annex to this notice. The Trade Representative’s determination also takes into account advice from advisory committees and any public comments on the pertinent exclusion requests.
As set out in the Annex to this notice, the exclusions are established in two different formats: (1) as an exclusion of an existing 10-digit subheading from within an 8- digit subheading covered by the $34 billion action, or (2) as an exclusion reflected in specially prepared product descriptions. In particular, the exclusions take the form of seven 10-digit HTSUS subheadings, and 24 specially prepared product descriptions.
In accordance with the July 11 notice, the exclusions are available for any product that meets the description in the Annex, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the 10-digit headings and product descriptions in the Annex to this notice, and not by the product descriptions set out in any particular request for exclusion.
The exclusions in the Annex cover approximately 1,000 separate exclusion requests: the excluded 10-digit subheadings cover 918 separate requests, and the 24 specially drafted product descriptions cover approximately 66 separate requests.
As stated in July 11 Notice, the exclusions will apply as of the July 6, 2018 effective date of the $34 billion action, and extend for one year after the publication of this notice. U.S. Customs and Border Protection will issue instructions on entry guidance and implementation.
The Trade Representative will continue to issue determinations on pending requests on a periodic basis.
Stephen Vaughn General Counsel
Office of the U.S. Trade Representative.
ANNEX
Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on July 6, 2018, subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS) is modified:
- by inserting the following new heading 9903.88.05 in numerical sequence, with the material in the new heading inserted in the columns of the HTSUS labeled “Heading/Subheading”, “Article Description”, “Rates of Duty 1-General”, respectively:
Heading/ Subheading | Article Description |
Rates of Duty |
||
1 |
2 |
|||
General |
Special |
|||
“9903.88.05 |
Articles the product of China, as provided for in U.S. note 20(h) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative . . . . . . . . . . . . . . . . . . . . . |
The duty provided in the applicable subheading” |
- by inserting the following new U.S. note 20(h) to subchapter III of chapter 99 in numerical sequence:
“(h) The U.S. Trade Representative determined to establish a process by which particular products classified in heading 9903.88.01 and provided for in U.S. notes 20(a) and 20(b) could be excluded from the additional duties imposed by heading 9903.88.01. See 83 Fed. Reg. 28710 (June 20, 2018) and 83 Fed. Reg. 32181 (July 11, 2018). Pursuant to the product exclusion process, the U.S. Trade Representative has determined that the additional duties provided for in heading 9903.88.01 shall not apply to the following particular products, which are provided for in the enumerated statistical reporting numbers:
- 21.0075
- 69.0120
- 71.8045
- 10.5044
- 10.5048
- 10.5052
- 60.1010
- Spark-ignition engines for marine propulsion, outboard, each rated at not less than
29.83 kW but not more than 44.74 kW (described in statistical reporting number 8407.21.0080)
- Welded hydraulic linear acting (cylinders) engines and motors, each with piston bore of 12.7 mm or more but not over 34.6 mm, with stroke not over 11.43 m, overall length not over 15.24 m and rod diameter not over 1.219 m (described in statistical reporting number 21.0030)
- Stretchers of stainless steel, designed to move rollers to adjust tension of paper fabric to be dried, each with a pivoting arm with an actuator, linear rail movement with an actuator, and front and back units with mounting holes for tube roll bearing housings (described in statistical reporting number 90.2000)
- Roller machines with dies for embossing paper, manually powered (described in statistical reporting number 10.9080)
- Salad spinners of plastics, with capacity of at least 2.4 liters but not more than 3.8 liters (described in statistical reporting number 19.0000)
- Nonelectric water filtration apparatus consisting of three cylinder-shaped filter cartridges, each measuring 6.35 cm by 26.67 cm, having water storage tank and plastic tubing measuring 0.63 cm or more but not over 0.95 cm, presented with installation kit (described in statistical reporting number 21.0000)
- Winches, each having a winch frame with a corrosion resistant coating and stainless steel mandrel with nylon bushings, operated manually by a worm gear mechanism (described in statistical reporting number 39.0100)
- Elevators, comprising L-shaped steel buckets bolted to a steel chain, with guide rollers and a drive system (described in statistical reporting number 32.0000)
- Belt conveyors, each comprising a frame with leveling feet, electric motor and food grade plastic conveyor belt (described in statistical reporting number 33.0000)
- Belt conveyors, each comprising a welded frame with leveling feet and casters, electric motor and food grade plastic modular conveyor belt (described in statistical reporting number 33.0000)
- Guards of stainless steel, designed to shield operators of papermaking machines from moving or rotating equipment, each with dimensions ranging from 30 cm by 30 cm by 50 cm to 50 cm by 50 cm by 4 m, weighing 30 kg or more but not over 100 kg (described in statistical reporting number 99.1000)
- Scrapers (“doctors”) of stainless steel, designed to scrape impurities from the rotating roll surface of the forming and press sections of papermaking machines, each comprising a beam with a blade of non-symmetrical cross section, long aspect ratio, and mounting journals and turning devices on either end, with dimensions ranging from 50 cm by 50 cm by 8 m to 60 cm by 6 m by 11 m, weighing 1 metric ton or more but not over 3 metric tons (described in statistical reporting number 8439.99.1000)
- Frameworks of the forming and press section of papermaking machines, of stainless steel or cladded mild steel with stainless or acid proof steel, each with dimensions ranging from 1 m by 1 m by 1 m to 2.3 m by 2.3 m by 12 m, weighing 500 kg or more but not over 40 metric tons (described in statistical reporting number 99.1000)
- Guides of stainless steel, designed for locating conveyer belts on papermaking machines, each with a moving arm with an actuator and front and back units with mounting holes for tube roll bearing houses, each with dimensions ranging from 40 cm by 50 cm by 30 cm to 1 m by 1 m by 50 cm, weighing 300 kg or more but not over 500 kg (described in statistical reporting number 99.1000)
- Rollers of steel and cast iron (“nip rollers”) with bearing journals on either end, designed for use in paper manufacturing to mechanically compress paper web to remove water or impart desired mechanical properties in paper web, each with a polymer cover, the foregoing with length of 7 m or more but not over 12 m, with diameter of 1 m or more but not over 1.5 m, weighing 15 metric tons or more but not over 30 metric tons (described in statistical reporting number 8439.99.1000)
- Open containers (“savealls”) of stainless steel, designed to catch water run off generated in the papermaking process, constructed of large square shaped plates and flat constructions with mounting holes on ends, each with dimensions ranging from 50 cm by 50 cm by 50 cm to 1.5 m by 1 m by 10 m, weighing 50 kg or more but not over 2 metric tons (described in statistical reporting number 99.1000)
- Stretchers of stainless steel, designed to move rollers of papermaking machines to adjust tension of fabric, each with a pivoting arm with an actuator, linear rail movement with an actuator and front and back units with mounting holes for tube roll bearing housings (described in statistical reporting number 99.1000)
- Suction boxes of stainless steel, which remove water from paper web or papermaking fabrics during papermaking, each with dimensions ranging from 50 cm by 50 cm by 8 m to 1 m by 1 m by 10 m, weighing 1.5 metric tons or more but not over 2 metric tons (described in statistical reporting number 99.1000)
- Rollers of stainless steel or cast iron, designed for use in paper manufacturing to support and convey papermaking cloth (i.e. fabric) or the paper web, each weighing 7 metric tons or more but not over 20 metric tons, measuring 7 m or more but not over 12 m in length, with diameter of 40 cm or more but not over 1.5 m, presented with bearing journals on either end and a polymer cover (described in statistical reporting number 99.1000)
- Workstands designed to use with miter saws, each with metal tube frame, 4 metal legs and 2 metal extension arms (described in statistical reporting number 8466.92.5010)
- Workstands designed for use with miter saws, each with wheels to make workstand mobile and with sides that fold up to extend the work area (described in statistical reporting number 92.5010)
- Angle cock handle assemblies, of iron and steel, each measuring 11.43 cm by 59 cm by 5.08 cm and weighing 0.748 kg (described in statistical reporting number 8481.90.9040)
- Radiation therapy systems, each encased by steel-based structural shell with gantry cover comprising three pairs of plastics-based panels (described in statistical reporting number 14.0000)
- Thermostats designed for air conditioning or heating systems, not designed to connect to the internet, the foregoing designed for wall mounting (described in statistical reporting number 10.0030)
- by amending the last sentence of the first paragraph of U.S. note 20(a) to subchapter III to chapter 99 by inserting after the phrase “imposed by heading 9903.88.01” the following phrase:
“, except products of China granted an exclusion by the U.S. Trade Representative and provided for in heading 9903.88.05 and U.S. note 20(h) to subchapter III of chapter 99”;
- by amending the first sentence of U.S. note 20(b) to subchapter III to chapter 99 by inserting after the phrase “the following 8-digit subheadings” the following phrase:
“, except products of China granted an exclusion by the U.S. Trade Representative and provided for in heading 9903.88.05 and U.S. note 20(h) to subchapter III of chapter 99”; and
- by amending the Article Description of heading 9903.88.01:
- by deleting: “Articles the product of China,” and, “Except as provided in heading 9903.88.05, articles the product of China,”.
A Challenge to Shippers Who Would Never Dream of Controlling the Insurance
Shippers who rely on suppliers to furnish cargo insurance or who rely on their carriers to take responsibility for losses may be in for a big surprise. Protecting your investments by insuring your goods provides peace of mind.
Buying CIF: Who’s really responsible if your product is lost or damaged in transit? According to internationally accepted trade terms, referred to as Incoterms, suppliers selling “CIF” (Cost, Insurance, Freight) are responsible for arranging cargo insurance. But just because your supplier has the obligation to arrange insurance under CIF terms, it doesn’t mean that they are ultimately responsible if your product is lost or damaged during transit. The ultimate burden of loss falls upon you, the buyer. This is why many experts recommend importers change their buying terms to EXW, FOB, FCA, CFR or similar terms in order to control the selection, and thereby the quality, of insurance coverage.
How much is that insurance really costing you? Foreign suppliers and their forwarding agents often tack on placement fees to the insurance costs. Those added fees often inflate the cost of insurance well beyond market pricing for the same coverage purchased in the United States. Find out how much you’re really paying and then compare quotes received from BOC International.
Is the coverage your supplier purchased for you adequate? Importers relying on their suppliers to arrange insurance run the risk of having inadequate insurance coverage. Cargo insurance policies can vary widely in levels of coverage, deductibles and special restrictions. Ask your supplier for a complete copy of the insurance policy or for a certificate of insurance detailing all the policy terms and conditions
What’s the financial health of your supplier’s insurance company? Recent financial and catastrophic events have exposed the vulnerability of insurance companies to sudden economic devastation. Importers are encouraged to make certain their suppliers use insurers with a favorable financial rating supplied by a respected financial rating service. A.M. Best, Standard & Poor’s and Moody’s are among some of the world’s most respected. BOC’s insurance company, underwriters at Lloyd’s of London, has an A.M. Best financial rating of A (Excellent).
How will your claim be handled? If insurance is arranged overseas, will you be forced to deal with an inexperienced, sub-contracted independent adjuster unfamiliar with the assessment of transportation related losses? Ask your supplier for a list of insurance claims adjusters contracted by the insurance company. Adjuster and surveyor networks approved by Lloyd’s of London and AIMA are among the most credible. BOC has a vested interest in your insurance needs and will directly handle cargo claim documentation requirements to ensure prompt processing and timely settlement.
Every Shipper Needs Cargo Insurance
Global trading involves risk; however, broad insurance coverage minimizes your financial risk. Don’t leave your livelihood up to chance! Statistics show that one ship sinks each day and you will experience a General Average loss every eight years. If you are depending on the carrier to cover losses, their responsibility is limited by law as follows:
Ocean Carriers $500 per shipping unit
A shipping unit may be defined as one ocean container.
Air Carriers $9.07 per pound
Truckers $.50 per pound
The insurance we offer is competitively priced and insures approved merchandise against physical loss or damage from external causes. By purchasing cargo insurance, you can avoid inconvenience and frustration. Contact your BOC Representative at 617-345-0050 for your free quote.