Dear Valued Customers & Partners,
With the recent resolution of the ILA strike, we recognize the challenges that supply chain disruptions have caused to your operations. As the industry transitions back to normalcy, we have outlined key strategies to help you manage your customs entries and containers effectively:
1. Understand Each Party’s Obligations to Limit Exposure
Vessel Arrival: A vessel is considered to have arrived “when the vessel first comes to rest, whether at anchor or at a dock, in any harbor within the Customs territory of the U.S.” 19 C.F.R. § 4.0(f). Within 48 hours after arrival, all vessels identified in Section 4.3(a) of CBP Regulations are required to be entered unless specifically excepted by law.
Customs Entry: All cargo unladed from vessels arriving at impacted ports remains subject to the requirement of being entered “within 15 calendar days after landing from a vessel, aircraft or vehicle, or after arrival at the port of destination in the case of merchandise transported in bond.” 19 C.F.R. § 141.5
- Cargo Release Update is allowed up to 15 days from the later of the estimated arrival date, actual arrival, or date of cargo release. This allows us to change the port of entry if necessary.
Payment of Customs Duties:
- Customs Duty must be paid within 10 Business Days from the time of entry.
- Failure to file an Entry Summary with duty payments timely will result in liquidated damages. However, these are typically mitigated to $100.00 per entry.
2. Follow Your Cargo
Assess the current status of your cargo to guide your next steps:
- Has your cargo been diverted?
- Is your cargo onboard a vessel at anchor in international waters?
- Is your cargo onboard at anchor within the customs territory of the US?
- Is your container sitting on the pier or in a stack?
CH Powell will assist you in determining the best course of action for entry filing.
3. Protect Your Rights Against Unlawful Billing:
- The U.S. Federal Maritime Commission (FMC) has issued guidance that all FMC regulations remained in full effect throughout the strike.
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- Demurrage, detention, and all other fees and surcharges must be reasonable, clearly defined, and serve a specific measurable purpose.
- FMC regulations require that demurrage and detention fees serve as legitimate financial incentives to encourage cargo movement. The FMC said it will “scrutinize” any demurrage and detention charges assessed during terminal closures.
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- To avoid potential counterargument, Importers should take every action to retrieve cargo that has been unladed at terminals to document their intent to move the cargo.
- An informational webinar regarding filing complaints is available [here].
4. Prepare for Business Resumption:
- Prioritize the retrieval of your most critical containers.
- Communicate proactively with your final-mile service providers to ensure smooth operations.
- If applicable, leverage your CTPAT partnership status to receive priority processing as operations resume.
At CH Powell, we remain committed to supporting your needs during this transition. We understand the complexities of this situation and encourage open communication as we navigate these challenges together.
For any questions or concerns, please reach out to your CH Powell representative.
Disclaimer:
The information provided herein is for general guidance only and may be subject to change based on the evolving situation. While due diligence has been used to ascertain the correctness of this information, any use or reliance on it is understood to be without recourse to C.H. Powell Co.
Please be advised that while the ILA strike has ended, residual delays and disruptions in cargo operations may still occur. CH Powell will not be responsible for any additional costs that arise, including storage, demurrage, or rerouting fees. We recommend planning accordingly and will keep you updated with any new developments.