Volume 6 Issue 2

February 2012

The J-Report
Information and News from the World of Compliance and Logistics Connecting you to the world www.johnsjames.com

OFFICE LOCATIONS
ATLANTA, GA 404-762-5556 CHARLESTON, SC 843-554-6400 CHARLOTTE, NC 704-357-6901 JACKSONVILLE, FL 904-356-9646 KNOXVILLE, TN 865-544-0530 SAVANNAH, GA 912-232-0211

Bills of Lading Reading the Fine Print

The bill of lading is one of the most fundamental documents in a shipping transaction. This document sets forth the terms and conditions for the contract of carriage between the main carrier and the parties on the B/L. The word contract is very important here. In a very general, summarized and succinct explanation, a contract is an agreement between two or more parties that demonstrates the terms and conditions for performance of an act or duty by one party (i.e., the steamship line; shipping your goods from point A to point B) to the other party (i.e., the importer or exporter). There is an exchange value between the parties for the performance of service; in laymans terms, you pay the carrier for shipping your goods. But then theres the fine print, and if you read the terms and conditions on the bill of lading you will see just how fine the print is. Of course the carriers website should also list B/L terms and conditions. Those of you who had cargo on the vessel, the Hanjin Osaka may have been prompted to read that fine print when the vessel declared General Average earlier this month.

General Average and Marine Insurance

Per the U.S. Supreme court, "General Average is a contribution by all the parties in a sea adventure to make good a loss sustained by one of their number on account of sacrifices voluntarily made of part of the ship or cargo to save the residue and lives of those on board from an impending peril, or for extraordinary expense necessarily incurred by one or more of the parties, for the general benefit of all the interest embarked in the enterprise."This type of loss sharing is based on the historic notion that the relationship between shipper and vessel owner is that of a joint business venture (a "sea adventure") and that a vessel would not take to the seas if it weren't for the merchants' cargo. Among other criteria, the captain must sacrifice some portion of the cargo or vessel in order to save the vessel and/or the rest of the cargo on-board, with a statement to this effect in the ship's log. So...when General Average is declared, the vessel owner seizes ownership of the cargo to determine the value of the voyage (vessel value + value of cargo). The shipper must then post a bond, or a cash deposit before receiving cargo. The settlement of General Average can then take months, or years. For those of you who do not opt for Marine Insurance you run the risk of learning just how expensive a General Average claim can be. A marine insurance policy through John S. James Co. provides for a bond in the event of General Average.

So now what? When do we get our answer?

Understand the clauses on your Ocean B/L, especially:

-Limitation of Liability -General Average -Lien -Jurisdiction
Ask your dedicated account representative about Marine Insurance

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The J-Report Information and News from the World of Compliance and Logistics

C-TPAT High Security Seal Standards Update

How many of you are C-TPAT participants? How many of you make use of High Security Seals for your ocean containers? The Department of Homeland Security made an announcement that the ISO mechanical seal standard (ISO/ PAS 17712) will be replaced by an updated ISO standard; specifically ISO 17712:2010. Initially, the new standard was to become effective on March 1, 2012 but this has since changed. C-TPAT has learned that the tamper evidence element of the ISO 17712:2010 requirements (Clause 6) cannot be met. To date, no accredited independent laboratories have been willing to test and certify seals as complying with the tamper evidence requirement. Consequently, C-TPAT has determined that implementation of the new standard is not viable by the March 01, 2012 deadline. C-TPAT has also become aware that the ISO is working to amend ISO 17712:2010 to address the issue with this standard. Therefore, implementation of the new ISO 17712:2010 standard for mechanical seals will be delayed until C-TPAT receives definitive information that ISO has resolved this issue. C-TPAT partners will be advised when the ISO has resolved the tamper evidence issue with the ISO 17712:2010 standard. Since the ISO 17712: 2010 (18 mm) certification for high security seals is attainable without the Clause 6 testing portion of the standard, C-TPAT encourages partners to buy seals that meet this part of the standard. If C-TPAT companies decide to transition to seals that meet this portion of the new ISO standard, they should request documentation to confirm that the purchased seals comply with the current testing requirements for ISO 17712: 2010 (18 mm) certification.

High Security Seals Also known as Bolt Seals Some countries such as India and Pakistan require this type of seal to be affixed to the container prior to export. Some carriers require this type of seal for certain destinations, Venezuela is a prime example

According to Indias Central Board of Customs & Excise (Specifically Section 116 of the Customs Act): As of November 1, 2005, containers, trucks and rail cars must have this "one time bottle seal" (a serialnumbered bolt seal) already installed prior to arrival into India, with the type of seal and seal number stated on the import carrier's pre-arrival customs manifest and transport document. This effectively makes it the shipper's responsibility to place this type of seal on a shipper-packed container to India. Containers arriving without an acceptable "bottle seal" may be denied entry or the importer or carrier may be subject to fine and/or additional fees upon arrival to inspect and re-seal the container (practices and consequences vary by Customs region within India).

Speaking of C-TPAT...
Customs has updated their website and provided the following CTPAT guidelines at: http://www.cbp.gov/xp/cgov/trade/whats_new.xml One item of particular interest is the Minimum Security Criteria for CTPAT for Foreign Manufacturers. These have been translated into Japanese, Portuguese, Arabic, Chinese. Dutch, German, Italian, Thai. You may want to share these with your suppliers. If you have any questions regarding C-TPAT, please contact your dedicated account representative or [email protected].

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The J-Report Information and News from the World of Compliance and Logistics

EXPORT South Carolina District Export Council

We are very pleased to deliver some extraordinary news. Our own Corporate Export Manager, Mr. Pat Fosberry has been appointed to serve on the South Carolina District Export Council (SCDEC). This is a tremendous honor for John S. James Co. We strive to deliver the ability, knowledge, technology and experience it takes to be successful in international trade and by virtue of Pat Fosberrys participation on the District Export Council, we can continue to support this mission by having a presence with a consortium of experienced individuals that will deliver value and expertise to those companies who undertake the endeavor of exporting. District Export Councils (DECs) are organizations of leaders from the local business community whose knowledge of international business provides a source of professional advice for local firms. Appointed by successive U.S. Secretaries of Commerce, DECs have served the United States for the past 30+ years by assisting companies in their local communities to export, thus promoting our countrys economic growth and creating new and higher-paying jobs in their communities. Closely affiliated with the U.S. Commercial Services U.S. Export Assistance Centers, the 55 DECs combine the energies of more than 1,500 exporters and private and public export service providers throughout the United States. The South Carolina DEC is currently comprised of 30 business leaders who represent manufacturers, service providers and state and federal government agencies.
District Export Council
DECs are tasked with assisting the U.S. Commercial Service, the international field agency of the U.S. Department of Commerce, with export promotion. DEC members volunteer their time to sponsor and participate in numerous trade promotion activities, as well as to supply specialized expertise to small and medium-sized businesses that are interested in exporting.

A Brief History Of District Export Councils

In 1960, the President asked the Secretary of Commerce to enlist the efforts of the U.S. business community in enlarging export opportunities for American firms. The Secretary created the National Export Expansion Council to review the challenge. In response to National Export Expansion Council recommendations and to stimulate greater business participation in the national export expansion effort, the President signed an Executive Order in 1973, which directed the Secretary of Commerce to establish District Export Councils throughout the United States. Under the authority of the U.S. Department of Commerce, the Secretary of Commerce established 41 DECs in 1974. Approximately 1,000 business and trade experts were appointed to serve on the newly formed DECs. Since then, the number of DECs and DEC membership has been expanded to 55 DECs and 1,500 members to better meet the needs of the growing number of U.S. exporters.
The SC District Export Council... Actively promotes awareness of export opportunities to SC firms, working closely with the three U.S. Export Assistance Centers of the U.S. Commercial Service in the state. The South Carolina DEC brings a comprehensive array of export services directly to local firms. Members include exporters from manufacturing, the services industry, and export trading companies; bankers; U.S. Small Business Administration representatives; state and local officials; and international lawyers. On both a national and local level, South Carolina DEC members work to educate their local communities about international trade. They speak out on national trade policy issues through a variety of means, including the issuance of trade policy recommendations at the annual national DEC conference.

Career Vitae Pat Fosberry

Pat started his career with John S. James Co. in 1983 in the export department. As the Corporate Export and Transportation Manager, his responsibilities include oversight of regulatory issues and compliance for all exports; import, export and domestic transportation; hazardous material training and compliance; and agency partnerships. He served on the Board of Directors of Global Logistics Associates, the JSJ worldwide agency partner network and was President of their NVOCC GlobeTrans, Inc. Currently he is the President of the Customs Brokers and Freight Forwarders Association of Charleston, S.C., Inc., serves on the Board of Directors of the Charleston Port and Seafarers Society, and in 2012 was appointed by the U.S. Secretary of Commerce to the South Carolina District Export Council. For 15 years he has taught The Export Move and Letters of Credit classes at the Intermodal Program at the College of Charleston, and has previously taught industry-related classes at the University of South Carolina, Trident Technical College and The Citadel. Pat brings a tremendous wealth of experience that will serve the South Carolina District Export Council and those who rely on John S. James Co., & the SC District Export Council for guidance.

Volume 6 Issue 2

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John S. James Co. Check us out on Facebook & Twitter!

All of our valued clients know of our worldwide capabilities when it comes to providing valued services for Customs Compliance, Freight Forwarding and Transportation, and we work to deliver you the news thats important to you in the J-Report every month. With the advent of social media we can now fill in those blank spots in between J-Reports to provide you with more industry news and events happening within our company! On our Facebook and Twitter pages you will find various webinars, informational publications and other news & events we want to share with you. So...if you love us, now you can like us on Facebook! If you ever feel lost you can follow us on Twitter! It would be a nice treat to get a tweet! www.facebook.com/johnsjamesco www.twitter.com/johnsjamesco

John S. James Co. Employee Spotlight

This month we would like to introduce you to Charleston employee, Scott Register. Scott is currently the International Transportation Manager in Charleston and oversees the operations of our NVOCC arm of the company, Eur-A-Med Shipping, Ltd. Scott came to John S. James Co. 14 years ago when he moved from Atlanta, Georgia and he worked in our Import department. After a few years he transferred into the operations arm of Eur-A-Med Shipping and had the pleasure of working on some unique projects. One of those such projects was handling the export of oversized, overweight and difficult-to-ship manufacturing machinery to the Dominican Republic for the opening of a new plant. He also helped form the import operations function of the department. He then moved back into our Import department, handling customs entries and assumed the role of Assistant Import Manager in 2005. One year later, he stepped into his current role as International Transportation Manager. His flexibility and experience is a tremendous asset to John S. James Co. Here are some things you may not know about Scott. He holds degrees in Liberal Arts and in Criminal Justice. He had all intentions of becoming a secret service agent but he didnt have the 20/20 vision requirement. He went into the Insurance industry and became an inside adjuster for two years before he found his way to the lovely city of Charleston and to John S. James Co. Scott enjoys spending time with his wife and two children and is an avid Georgia Bulldogs fan. Tell Scott you read about him and other great articles in the J-Report!

John S. James Co. Employee Anniversaries

We would like to acknowledge the contributions of the following JSJ employees, wishing them a happy anniversary in February Lynn Miles 6 yrs Debra Swain Scott Register Melissa Phillips 34 yrs 14 yrs 8 yrs I don't believe you have to be better than everybody else. I believe you have to be better than you ever thought you could be.
-Ken Venturi