Liquidated damages (also referred to as liquidated and ascertained damages)
Are damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach (e.g., late performance).
(see article below on US Import Documentation Compliance )
Irish Presidency on Transport Issues Praised
An exchange of views took place in the European Parliament this week on the results of the Irish Presidency on Transport issues.
Mr Varadkar, Irish Minister for Transport, underlined thework undertaken, together with the European Parliament, on reaching an agreement on the Trans-European Networks, on the Tachograph Regulation as well as on two elements of theRoad Worthiness Package.
He detailed the progress made on the Connecting European Facility and on the Rail interoperability.
Members of the European Parliament’s Transport Committee praised the Irish Presidency for its work with the Parliament, noting the progress that had been made on many important files which are essential for economic growth and jobs in Europe. All Members stressed the need to continue working hard to achieve as many agreements as possible during the next Presidency.
Source – Clecat
Sailings cancelled after ferry hits quay.
1/7/13 – The DFDS-owned Sirena Seaways, hit Parkeston Quay, in Harwich, Essex, just after midday. The operator said the vessel would probably be out of service for at least a week.
The Marine Accident Investigation Branch said a team was at the port conducting preliminary inquiries.
A spokeswoman for DFDS said the ferry was being repaired in a dry doc. “As a result, it is likely that the vessel will be out of service until at least Saturday 29 June,” she said.
“We would like to apologise to customers for any inconvenience caused during this time.”
Eyewitnesses spoke of hearing a loud bang as the vessel hit the quay at the port. The 23,000-tonne ship started to let in water and began listing to its port side.
Its crew plugged the hole in the vessel’s hull from inside and built a compartment with watertight doors to stem the leak.
With almost 500 passengers on board, lifeboats and coastguard vessels were launched and an RAF search and rescue helicopter was sent to the scene.
Police, firefighters and ambulances also attended, but there were no injuries reported and no pollution.
Airforwarders Association endorses e-AWB
June 27/2013 – After review by its legal counsel, the AfA advised members that the e-AWB is a major step forward in facilitating the use of the electronic master Airway Bill transmission between the forwarder and carrier.
The agreement removes the need for bilateral e-AWB agreements between airlines and freight forwarders. Airlines will have a single agreement with IATA that enables them to accept e-AWBs from all participating freight forwarders, while freight forwarders will have a single agreement that will allow them to tender e-AWB shipments to multiple airlines at numerous airports worldwide.
The multilateral e-AWB agreement became possible earlier in 2013 and was approved by governments and endorsed by International Federation of Freight Forwarders Associations and other groups worldwide.
The multilateral e-AWB agreement sets the terms for the use of electronic documents between the freight forwarder and carrier, but does not change the Carrier’s Conditions of Contract. The agreement only spells out the terms of when the documents are created, when obligations are formed and who is responsible for information.
This agreement does not come into effect until the carrier has joined the system, the freight forwarder has joined the system and the freight forwarder and carrier have agreed to the relevant locations and start dates for their mutual participation. In order for the multilateral e-AWB agreement to be effective, the carrier must send an activation notice to the freight forwarder.
Freight forwarders do not have to join the agreement but once signed, shipments on the agreed upon lane must be tendered using electronic communications as specified in the agreement.
Momentum builds for e-Airway Bill adoption
28/6/13 – “It’s big for us in the U.S,” said Mike White, assistant director cargo facilitation, security and standards for Cargo Network Services.
The advisory board, nicknamed the “e-Air Waybill Champions,” held its first meeting in Houston on Thursday and will move on to Chicago on July 9. Other airports are Seattle, San Francisco, Los Angeles, Dallas, Detroit, Atlanta, Washington, D.C., Newark and New York’s JFK.
“It was our first opportunity to meet with the local folks and start locally to get the airlines, forwarders and ground handlers on board,” White said. “We will be moving on to the other 11 locations over the next six weeks or so and will hit other locations as well.”
White said about 70 people attended the Houston meeting and a lot of good questions were asked by small forwarders. Several niche forwarders serving the military in Afghanistan and Iraq are navigation issues about how to go paperless in those countries, he said.
“There is a real good understanding forwarder-wise and airline-wise that this is coming and it’s not going to be easy on day one,” White said. “There are some that are hesitant and kind of watching what the others are doing, but once some of the key forwarders are on board and see how it works, we will be getting there. Some are still dealing with paper, but many are willing to make the effort.”
Meanwhile, there have been additional signers on to the e-AWB, including Cargolux. More than 40 airlines and more than 60 forwarders are now on board.
“There’s been a real buy-in of forwarders of late,” White said. “They understand that this is coming. We have most of the multinational forwarders with a couple still looking at legal issues. I’m hearing that that’s more of a formality than anything
The champions meetings for the initial 12 cities will conclude by the end of August, but now there are plans to add more. White says there have been discussions about adding Philadelphia, Boston, Minneapolis, Portland, Phoenix and Charlotte. The effort will also go international with meetings to be scheduled at the major airports in Toronto, Montreal and Vancouver in Canada and Mexico City and Guadalajara in Mexico.
The champions are comprised of cargo chiefs of major airlines, association officials and logistics company executives.
“It helps to have them out there not just waving the flag, but being industry representatives,” White said. “It’s not just IATA or CNS. We all have to embrace it to make it work. It’s a real plus for us having these individuals on board….we are moving along and I think we probably moved further during the last two to three months than we did during the last two to three years.”
Croatia becomes 28th Member State of the EU – AEP Helpdesk Announcement
28/6/13 – PLEASE NOTE THAT FROM 1 JULY 2013 CROATIA BECOMES THE 28TH MEMBER STATE OF THE EUROPEAN UNION. DETAILS OF THE CHANGES TO THE CUSTOMS OFFICE LIST MAINTAINED BY THE EUROPEAN COMMISSION , ARE AVAILABLE FOR DOWNLOAD TO TRADER SYSTEMS ON THE FOLLOWING LINK;
ALSO PROVIDED FOR INFORMATION IS A LINK TO THE PRESS RELEASE FROM THE EUROPEAN COMMISSION IN RELATION TO THE ACCESSION OF CROATIA.
Tel: LoCall 1890 204 304
US Import Documentation Compliance
28/6/13 – U.S. Customs and Border Protection (CBP) will begin full enforcement of the Importer Security Filing requirement on July 9, 2013.
On that date, the agency will begin to issue liquidated damages for ISF violations, such as filing incomplete, inaccurate or late documentation.
The ISF rule went into effect on Jan. 26, 2009, but for the first year the program had no sanctions so that shippers and carriers could learn how to collect and file the necessary data, develop software systems that could communicate with CBP, or farm out filing to customs brokers and other third parties.
CBP began enforcing the rule in January 2010. It has used its authority to place holds on containers with shipments that don’t have documentation in order, typically upon arrival in the United States, and can order non-intrusive or full inspections of cargo if the ISF data indicates something might be amiss about a shipment, but to date has not issued any damage claims against filers.
For ocean carriers, CBP may refuse to grant a permit to unload the merchandise if they violate the vessel stow plan requirement.
CBP requires importers to submit 10 pieces of data, such as the name and location of the manufacturer, associated with international shipments moving by ocean container. The data must be electronically transmitted 24 hours prior to cargo loading on the vessel and carriers must subsequently provide their vessel stow plans and container status messages. The ISF rule is commonly referred to as “10+2″ because of the two data sets required.
CBP originally said it would start issuing liquidated damages associated with ISF filing mistakes in the fourth quarter of 2010. Liquidated damages is a Customs term that means an importer or its agent failed to meet the conditions of a bond. They are technically different from penalties, which are issued in response to smuggling and other direct violations of law. The ISF rule allows for liquidated damages of $5,000 per violation, which could reach $10,000 on a shipment if amendments to the ISF are filed with errors.
The phased approach to enforcement was designed to minimize disruption to the trade community as it adapted to a new, complex security regime aimed at using advance data for targeting shipments with smuggled contraband or terrorist weapons.
CBP has stressed that every liquidated damage enforcement action instituted by a port will be reviewed by CBP headquarters personnel before being issued, according to a customer note from trade insurance broker Avalon Risk Management.”
FTA Ireland disappointed over lack of post code progress
June 26, 2013 – FTA Ireland has expressed its frustration and disappointment at the lack of any progress or information from the Department of Communications, Energy and Natural Resources (DCENR) on the introduction of a postcode system for Ireland.
A significant increase in e-commerce, business to customer and business to business deliveries means such a system would enable greater speed and efficiency and result in significant savings in time and money, to the benefit of businesses and customers alike.
The introduction of a post code system was recommended by a working group as long ago as 2005, and was recommended in 2006 by the National Postcode Panel Board. In 2009 the Minister for Communications, Energy and Natural Resources, Eamon Ryan TD, announced that the government had approved the introduction of such a system, but so far there are still no time-bound plans for its delivery.
Declan McKeon, Head of Policy for FTA Ireland said: “We met with Minister Pat Rabbitte and his officials in September 2012, along with affected FTA Ireland members, to outline the importance of such a system, and he committed to finishing the procurement process in early 2013. This was subsequently pushed back to the end of the first quarter of 2013, then to the end of the second quarter. His department is giving no commitment on the schedule or any progress that has been made, and has refused to discuss the issue with us.
“The benefits in efficiency and cost savings which a postal coding system would bring have been acknowledged by An Post, and private industry has developed its own system, ‘Loc8’, which has already developed 200,000 codes and is widely used by many organisations, including local authorities. We believe that the introduction of an official system is long overdue.”
FedEx opens up in Dublin
26 June 2013 – First of its freight forwarding offices in the republic will cater for strong growth in export traffic.
The operation is the operator’s first in the Republic of Ireland, 24th in Europe and is part of its ongoing global growth scheme.
The new office is located within easy reach of Dublin Airport, the port and major motorways. FedEx said it aims to offer customers better access to major global markets by increasing coverage across the region.
Over the past two years Dublin has recorded a strong export performance, providing the freight forwarding arm of FedEx Corp with “an ideal location”.
Christian Blain, Vice-President EMEA Operations, FedEx Trade Networks, said: “With the new operation in Dublin, we can provide global shippers and businesses in the region with the local support they need.
“Dublin is an important transport hub for the medical device, pharmaceutical, technology, aerospace and industrial sectors, and offers multiple import and export options.
“This new office will provide customers enhanced access to the whole of Europe and increase connectivity worldwide.”
UPS expands protection services
27 June 2013 – Latest software helps ensure time- and temperature-sensitive shipments reach their destinations
UPS has launched UPS Proactive Response Secure, a proactive shipment monitoring and risk management solution to protect customers against lost profits.
The US express specialist claims the service fills a gap in the marketplace and helps ensure time- and temperature-sensitive shipments reach their destinations, offering guarantees up to the retail value, in addition to other costs, when unexpected events occur – including weather delays.
“This is the highest level of service we offer. By leveraging our proprietary technology, UPS can identify shipments that will be impacted by a delay,” said Bill Hook, Vice President of UPS Global Healthcare Strategy.
More than 60 million packages have been shipped using UPS’s Proactive Response products since its 2007 launch. The complete solution leverages proactive technology to provide continuous visibility into potential delivery disruptions in near real time to ensure successful product delivery.
UPS is further enhancing its risk-management solutions to meet the growing global demand. It has recently expanded its UPS Proactive Response service into Europe, added Next Flight Out services from UPS Express Critical to provide another option for fast, convenient expedited delivery, expanded dry ice replenishment and refrigeration to select destination locations through the entire shipment’s journey and expanded its UPS Proactive Response control towers in Europe and Asia.
The new Proactive Response Secure service is targeted at healthcare shipments, including specialty pharmaceuticals, biologics, diagnostic specimens, implantable surgical materials and clinical trial shipments. It also is effective in other industries with high-value shipments or time- or temperature-sensitive needs.
The First 8 of Murphy’s Other 15 Laws
1. Light travels faster than sound. This is why some people appear bright until you hear them speak.
2. A fine is a tax for doing wrong. A tax is a fine for doing well.
3. He, who laughs last, thinks slowest.
4. A day without sunshine is like, well, night.
5. Change is inevitable, except from a vending machine.
6. Those who live by the sword get shot by those who don’t.
7. Nothing is foolproof to a sufficiently talented fool.
8. The 50-50-90 rule: Anytime you have a 50-50 chance of getting something right, there’s a 90% probability you’ll get it wrong.
Term of the Week
Stuff you didn’t know you didn’t know !
Only two people signed the Declaration of Independence on July 4,
John Hancock and Charles Thomson. Most of the rest signed on August
2, but the last signature wasn’t added until 5 years later
It is impossible to lick your elbow.