Inherent Vice: The Ultimate FAQ Guide

If you have any question about inherent vice, your answer is right here.

This is because this guide covers everything you need to know about inherent vice.

Keep reading to learn.

What Is Inherent Vice In Cargo Insurance Terms?

Inherent vice is a charge that is set aside for cargo insurance policies.

 It acts as compensation for damages that might occur due to the instability nature of the products.

Inherent vice mostly occurs during the shipping of the product.

Normally, it is hard to ensure the inherent vice from damages and loss since these defects are not physical.

As a result, the aspect of visibility to the carrier or the insuring company is unachievable.

How Can Inherent Vice Damage Cargo?

The unpredictability of the nature of the products will result in an inherent vice.

This normally causes damages to the cargo due to the nature of the product.

For instance, grains that are not properly dried will absorb moisture from the package which will result in fermentation.

These damages are mostly internal unlike inflicting physical damages as a result of the carrier’s negligence to the products.

When Does The Inherent Vice Exclusion Apply?

Below are some of the incidences under which an inherent vice exclusion will apply;

  • Deterioration of the food value due to improper storage measures.
  • Films that deteriorate over time as a result of chemical instability.
    This occurs if there is no equal proportionate mixture of the chemicals.
  • Deterioration of quality of books as a result of the acids on the papers which is a result of the manufacturing process.
  • Rapid fermentation or combustion of improperly dried grains.
    The grains will absorb moisture in the package which will result in fermentation.

What Are Examples Under Which Inherent Vice Exclusion Would Apply?

Different products have an operation timeframe or the duration in which we consider them better quality.

Over the years the timeframe reduces leading to an increase in vulnerability of these products.

In our case, inherent vice falls under the following classification and a list of examples where inherent vice exclusion would apply.

They include;

Short-lived, Temporary, Or Impermanent Materials

Examples under which inherent vice under this category include;

  • The acidity in papers leads to deterioration over a while.This is notable especially when you leave used or unused papers over a while they will start to fade off.
  • Fundamental chemical instability in cellulose acetate film as a result of slow degradation of chemicals resulting in vinegar syndrome.You can easily detect it due to the production of the vinegar smell.
  • Natural degradation of the magnetic tapes.This occurs mostly in cassettes and videotapes; they tend to have scratches over time thus hindering continuous filming.
  • Poor leather fades over a while as a result of exposure to the light.

Structural Nature

Examples include;

  • Leather: levels of acidic chemicals result in corrosion.These acid levels cause a reaction with metals surrounding the leather materials.
  • Paints that are not properly mixed will result in peeling or even fading over time.

History Function

These products have a history of corrosion due to humidity exposure.

Examples;

  • Ceramic bowl
  • Stained window glass
  • Stamps

What Other Common Cargo Insurance Exclusions Should I Be Aware Of?

Insuring the cargo during shipping into the destination is very important.

It allows compensation in case of damages or losses while under shipping.

Note, as much as insuring the cargo save you from losses, there are common cargo insurance exclusions you should be aware of.

Most insurers will not account for some of these cargo insurance exclusions thus planning well will allow you to avoid them.

Some of these cargo insurance exclusions include;

  • The inherent vice of the product.
  • Latent defect.
  • Loss as a result of poor/improper packaging.
  • Loss as a result of delay or loss of market.
  • Willful misconduct by the assured.

What Does Cargo Insurance Generally Cover?

Cargo insurance covers you and the business from encountering losses as a result of damages or losses during the shipping.

You will receive a compensation amount which you are insured for in case of the following incidents;

  • Piracy
  • Abandonment of the cargo
  • Vehicle accidents or accidents as a result of different modes of shipping
  • Customs rejection
  • Unavoidable natural disasters
  • Acts of war

Why Am I Not Eligible For A Claim In Inherent Vice?

Eligibility of the claim for inherent vice depends on the type of insurance policy you have for the cargo.

Mostly, this insurance policy will cover certain incidents with an exemption of damages as a result of inherent vice.

This will result in a lot of questions regarding eligibility.

Here are some of the reasons why you may not be eligible for a claim in inherent vice;

Contract Terms:

It’s important to read through the terms of the contract before signing to get the assurance of the claim for inherent vice.

Lack Of Causation:

Lack of the relationship/connection between the damages and a specific carrier will reduce the eligibility.

Example, we know that iron boxes are prone to rusting due to moisture in the shipment this is an interior element.

In cases where the shipment drowns in water, the carrier will be responsible for the damages.

Therefore, you need to insurer the cargo for such incidents.

How Do I Validate Cargo That Is Damaged Due To Inherent Vice?

To validate a cargo with damages as a result of inherent vice, you should first evaluate the following incidences;

  1. You should evaluate if the damage was a result of the nature of the product. For instance, spoiled food or fermentation and combustion of grains.
  2. Evaluate if the carrier is at fault for improper handling of the products.

For instance, forgetting to put water inside the container in a refrigerator.

If indeed the damages are a result of inherent vice, look for insurance policies that cover part if not all the damages.

What Should I Do In Case Of Loss Or Damage Due To Inherent Causes?

If there is loss or damage on the product as a result of inherent vice, provide a burden of proof to state otherwise.

This burden of proof will justify that the carrier is liable for the damages during shipping.

For instance, if the product absorbs moisture as a result of a moist container this will fall on the carrier.

If you prove the carrier is responsible for these damages, the burden shifts to the insurer.

The insurer will try and prove that the damages fall under the exclusion.

If the insurer’s proof is not evident enough, they will compensate you for the damages.

Am I Eligible For A Concurrent Causation Claim If One Of The Risks Is Inherent Vice?

We can look at the eligibility of a concurrent causation claim in two ways;

If one of the concurrent causations has coverage and the other one is not and there is no exclusion, the insurer will be liable.

Meaning, the insurer will be liable for the losses and damages of the goods even when the other risk is an inherent vice.

In this case, the insurer will pay for the losses and damages in regards to proportions of the insured concurrent causation.

The other scenario

When one of the concurrent causations is an insured peril and the other one is not yet excluded, insurers will not be liable.

What Is The Difference Between Inherent Vice And Latent Defect?

They are distinct differences between these two common types of cargo insurance exclusion.

Inherent vice is loss or damage of goods during shipping and this damage is visible during inspection.

Inherent vice occurs as a result of the underlying conditions and the physical nature of the goods.

Losses and damages in inherent vice are a result of internal causes rather than external causes.

For instance, an iron box tends to rust when it meets moisture.

With latent defects it’s hardly to note the defects during the inspection of the product.

Normally, we consider these damages as a result of poor quality of labor or poor manufacturing of the goods.

For instance, unnoticeable cracks on the products which majorly affect its performance.

Does An All-risk Policy Cover Against Inherent Vice?

An all-risk policy is an insurance policy that covers all risks that the agreement does not explicitly exclude.

If the contract /agreement does not have exemptions, then the insurer will account for every risk.

The all-risk policy covers fortuity incidences that occur as a result of external factors.

This means that all the risks should be a result of unpreventable accidents such as earthquakes or storms in the oceans.

The all-risk policy also covers peril policies that occur as a result of external factors such as fire.

There is an exemption of damages as a result of inherent vice.

Inherent vice is not a fortuity accident but rather an accident as a result of the nature of the product.

As result, the all-risk policy does not cover the inherent vice.

Is The Named-peril Policy Any Better?

Named peril policy is mostly applicable at homes or in businesses.

This insurance policy covers losses you incur on the property from different dangers or hazards.

Some of the dangers you will find coverage under the named-peril policy include;

  • Floods
  • Fire
  • Earthquake
  • Theft
  • Hailstorms
  • Explosion and lightening

Purchasing/acquiring a peril policy does not provide a possible solution.

This is because there are exemptions too.

Peril policy is much cheaper if you compare it to comprehensive coverage which provides coverage for all peril policies.

Note, a peril policy will work well with an all-risk policy because it covers all damages as a result of external factors.

From the above description peril policy is no better while the damages of the products are a result of inherent vice.

This means the peril policy cannot provide coverage of the inherent vice thus the insured will receive no compensations.

Are There Exceptions To The Inherent Vice Exclusion?

No, there are no exceptions to the inherent vice exclusion.

The inherent vice exclusion does not receive an interpretation that broadly sidelines the insurer.

This means will be liable for cargo that can withstand external factors.

As an insurer, you should be careful while relying on the inherent vice.

This means ensuring there is no fortuity causing loss or deterioration of products completely.

Additionally, you should ensure you have complete proof of the inherent vice that leads to the deterioration of the product’s value.

Is There A Cargo Insurance Policy That Covers Inherent Vice?

No, cargo insurance does not account for inherent vice.

The insurance policy will cover all other cases leaving out the inherent vice cases. This means there is no compensation for damages to the products.

Inherent vice is a result of interior cause due to the nature of products.

As stated earlier the insurance company covers external damages soaking products as a result of rain.

Before shipping, it is important you first evaluate what the insurer insures and what is not insured.

What Is The Difference Between The FC&S (Free Of Capture Seizure) Clause And Inherent Vice In Cargo Insurance?

The free of capture and seizure clause is a result of loss of goods due to;

  • War
  • Capture from unknown people
  • Seizure from relevant authority or government.

The insurer is not liable for this loss and the insured should seek assistance from the war insurance policy.

With inherent vice in cargo insurance, the insurer is not liable for inherent vice which is a result of internal factors of the products.

The cargo insurance policy does not provide the inclusion of the inherent vice.

If the insured can provide sufficient evidence of the damage as a result of external factors during shipping, there is a guarantee of compensation

How Much Is Cargo Insurance?

The insurance will account for the total value of the shipment including the limits coverage when there is loss or damage to the shipment.

You should include the price rate of every insured item on the shipment.

This price rate reflects the replacement cost in case of damages or loss of the shipment during shipping.

Research on the best-selling online website will also help in case you are unsure of the price rates.

To calculate the total cost of the insurance, use the following formula;

The total cost of the shipment*insurance rates= Total cost of the insurance

How Much Cargo Insurance Do I Need For My International Shipments?

While analyzing how much cargo insurance you need for international shipment, you need to understand the term under-insuring.

This commonly applies to the importation of second-hand items.

If you are importing second-hand items, it’s important to disclose them to the insurer.

This allows the inclusion of landing charges, duty charges, and freight charges to the replacement amount.

Failure to do this and the market value of the goods is below the replacement amount results in average.

This mostly occurs as a result of depreciating the market value of the goods.

You should not over quote the gross value of the goods before checking how much the insurer is offering to reduce under-insuring.

This will reflect your side as a loss since you will have to account for the difference.

For instance, if you ship a table that costs $90 to replace and your quote reads $50, you will be liable for margins.

What Are Some Tips For Getting The Right Marine Cargo Insurance Policy?

Having a marine cargo insurance policy is of great importance. Ensure you buy the best quality insurance policy.

Below are a few tips that will enable you to determine/choose the best marine cargo insurance;

Evaluate The Different Types Of Losses And Damages They Cover

You should always choose an insurance policy that covers all risks.

This means the insurer will account for all losses and damages if there is no exemption made.

Some of these losses include rain, lightning, and natural calamities which are unpreventable.

It is important to make a comparison of the different marine insurers since there are great variations.

Note, there is an exemption of the wear and tear from the marine cargo insurance policy.

Evaluate Claim Settlement

It is important to be able to determine on what basis is the coverage given.

That is whether it is agreed on value or actual cash value.

For agreed value, the marine insurer will account for the total amount indicated on the policy document in case there is a loss

With actual cash value, the coverage is low in comparison to the agreed policy. Normally, the present market value determines the coverage of the products.

Determine The Tenure Of The Policy

This means you should evaluate the frequency at which you transport goods.

You can opt for the apt policy tenure if you conduct frequent transportation of goods.

This apt policy tenure provides you with variations such as;

  • Annual turnover policy
  • Annual policy to specific voyage policy
  • Open policy

We recommend that you choose the annual or the turnover policy as it provides full coverage throughout the year.

How Do I Avoid Coverage Gaps When Getting Marine Cargo Insurance?

If you are unfamiliar with how an insurance policy works, you can hire an expert with this knowledge.

They will ask questions on your behalf to avoid coverage gaps.

These questions include;

  • Who is responsible/liable for insuring the goods, is it the buyer or the seller?
  • When does the title of goods change from the seller to the buyer?
  • What are the insuring terms?
  • Where is the location of the insurance company?

For instance, if the location of the insurance company is in the US it makes it hard for the claiming process due to the timeframes.

If you ask questions, there is a probability of getting accurate information of the coverage.

Is It Wise To Get Cargo Insurance Through My Freight Forwarder?

Yes, there are no doubts as to whether you can involve a freight forwarder in the cargo insurance process.

If you are an occasional shipper or shipping a low quantity of products, freight forwaders are the best deal.

  • Freight forwaders will get the best deals for you.
  • Secondly, they have more experience and good relations with some of the insurance companies thus fastening the whole process.

At Tj chinafreight, we will help you in all your freight forwarding needs from China.

Contact us today when shipping from China.

International Ship And Port Facility Security Code: The Ultimate FAQ Guide

In this guide, you will find all information about international ship and port facility security code.

So if you want to learn more about ISPS, read this guide.

What Is ISPS?

ISPS is otherwise known as International Ship and Port Facility Security Code.

It refers to a security measure established to fight insecurity and enhance the safety of ships, ports, and cargo.

The establishment of ISPS resulted from the realization that sea freight or transport was prone to risks just as air transport.

It awakened the idea of having specific security measures to handle ships and port facilities in case of attacks or threats.

When Was ISPS Code Adopted?

The International Ship and Port Facility Code were enacted on July 1st, 2004, by IMO.

It states the responsibilities to the shipping companies, the government, port staff, and shipboard workers to spot any threat.

The responsible bodies should also take preventive measures on the security of the port or the ship operating in international trade.

ISPS is applicable on all ships participating in international voyages, not excluding;

  • Cargos ships not less than 500GT
  • Voyager vessels and high-speed passenger craft
  • Amenities in the port used by the ships.
  • Mobile offshore drilling units.

What Are The Main Objectives Of The International Ship And Port Facility Security Code In Shipping?

Below are some of the goals that ISPS is aiming to achieve;

  • To observe people’s activities and cargo operations.
  • To identify any threats on onboard vessels and develop the necessary security measures suitable for the situation.
  • To put in place what roles and responsibilities will be played by the local administrators, government, national and international port industries.
  • To gather information about security threats faced in the marine industry and establish measures to handle them.
  • To identify any problems facing the security of the ports and ships and come up with solutions.
  • To facilitate efficient exchange of security data with other ports and ship owners’ networks globally.
  • To assign port state officers and onboard officers with their respective roles and responsibilities in handling international-level security threats.

Who Has To Comply To The ISPS Code?

Being part of SOLAS, the ISP’s code applies to all the 148 contracting parties to SOLAS required to comply with it. ISP’s code applies to;

  • Ships that are cruising internationally (this includes passenger ships and cargo ships having a lot less than 500GT, among others)
  • Port facilities that serve these ships.

What Is The Importance Of ISPS Code In Shipping?

The ISP’s code’s primary purpose is to ensure maritime threats posed on port facilities and ships are detected early and security actions are taken.

Aside from that, here are other benefits of the ISPS Code;

  • Enhance safety and security of port facilities and ships – This, in turn, reduces any risks as shipping vessels rarely have any protection weapons against piracy, stowaways, or terrorist attack.
    Therefore, the ISP’s code prevents the entry of explosives or weapons that might cause harm to ships and port facilities.
  • Provide a secure working environment for maritime workers and thus facilitate efficient and effective working conditions.
  • ISPS has an improved documentation process owing to the standard procedures everywhere.
  • With ISP’s code, the flow of cargo and personal access is better controlled and monitored.

What Are The Requirements Of the ISPS Code For Ships And Port Facilities?

To achieve secure and safe conditions on ships and ports the ISP’s code includes several functional requirements which are not limited to;

  • Go through all the data received.
  • Ensure that dangerous weapons, explosives, and incendiary devices have no access to the port facilities and the ships.
  • Plan and conduct training, exercise, and drills of the ship crew to familiarize them with security plans. This way, they shall be well prepared to handle any threats or incidents on time.
  • Collect all data regarding security from various contracting government agencies.
  • Come up with a proper security strategy after conducting an assessment on the security.
  • We establish the proper communication protocols for port facilities and ships to facilitate a smooth exchange of information.
  • Prevent any unauthorized person from gaining access into the port facility or ship and other prohibited areas. It will still apply even when the unauthorized party is not a threat. Any unauthorized person is regarded as a potential threat.
  • Come up with different ways of raising the alarm in case of a security threat or incident.

What Is The ISPS Code Meaning For Ships?

Mostly, there is a higher risk of experiencing security threats on cargo ships since they lack means of protection in an attack.

Such attacks can range from piracy, stowaways, and terrorist attacks, among others, and threaten the crew and the ship.

To pin down and curb such security incidents. The security of the ship should be enhanced. It is the responsibility of the administration as it evaluates and decides whether the ship security plan should be approved or not.

The same administration also analyzes amendments made to old plans and decides whether to approve them.

The company has the mandate to provide training. The certified officers can assess the security of the ship on board.  Do not forget that they are the only ones allowed to perform this task.

Timely evaluation of the security plan implemented for the ship allows identification of any shortcomings. It also helps to amend the current security plan for the ship.

After that company reviews, documents, retains, and accepts the evaluation or assessment of the ship’s security.

What Does ISPS Code For Port Facilities Cover?

The ISPS code for port facilities provides a framework used by port facilities and ships to collaborate to identify activities.

That otherwise poses a threat to maritime security.

ISP’s code covers the establishment of roles and responsibilities and the provision of methodologies used to assess security.

Additionally, the ISPS code provides ways to raise alarms as well as collect and assess data.

So generally, it covers security regarding any terrorist threats and incorporates robust risk management strategies.

What Are The Three Levels Of ISPS Security?

Security levels aim to explain current situations about security threats to a country together with its coastal region and ships that dock in the ports.

The port officials and ship cooperation are responsible for making decisions about these security levels based on the present state of security internationally.

The three levels of ISP’s security include;

Security Level 1

This level can be described as the average level at which the ships and ports operate. This level does not require a lot of security measures.

Some of the measures carried out at this level include;

  • Minimum entry to the ship is upheld every time.
  • Minimum security measures are maintained both in port and onboard.
  • Restricted areas are keenly observed at all times.
  • The ship and port operations are based on the security plan for the sip and port facility.

Supervision of the loading and unloading cargo and stores is done by the ship and port officials, ensuring minimum security criteria and access control.

Security Level 2

This level comes through when the security risk is heightened. At security level 2, extra security measures will be performed, including establishing SSP to protect against the heightened risk. Below are some of the measures carried out at level 2;

  • We are appointing extra patrolling personnel for the access areas.
  • It is setting aside an area that’s controlled on the shoreside of the ship.
  • By Conducting a full or partial search of the ship
  • Guiding all guests onboard.
  • We are carrying out more security briefings to the ship’s personnel regarding the security levels.

Security Level 3

In security level 3, additional security measures are put in place for an impending incident or one that has already occurred and must be maintained for some time.

As much as there might not be any particular target sighted, the security measure needs to be handled accordingly.

Some of the measures that have to be enacted are not limited to;

  • Eviction of the ship if need be.
  • We are restricting entry to a single controlled access point.
  • Keeping a close eye on how people move on board
  • Restricting entry only to authorized personnel.
  • By Canceling cargo operations and stores
  • Cancelling of embarkation and disembarkation

Who Is Responsible For Setting Security Levels Under The ISPS Code?

All security levels are agreed upon by the ship’s cooperation and the port officials maintaining the present state of security internationally.

The local government is responsible for putting in place the security level. To see to it that port states and ships are informed before accessing the port.

Does The International Ship And Port Facility Security Code Apply To All Ships?

The international ship and port facility security code doesn’t apply to all ships. Some of the ships excluded are not limited to;

  • Warships
  • Naval auxiliaries
  • Ships that are only used on non-commercial services controlled by the government.

Is ISPS Code Mandatory Or Voluntary?

To answer this question, we first must understand the three security levels and two parts of the ISPS Code. The parts are not limited to;

  • Part A – here, guidelines are mandatory to explain the employment of the company’s security officers, their ships, and port facilities that they call.
    It also includes requirements that government shipping companies and port officials need to adhere to.
    Additionally, several security issues are included. Such security issues are those that require to be factored in when preparing security plans for ships as well as port facilities.
  • Part B – ISPS Code part B guidelines are not mandatory. Nevertheless, several countries have made it compulsory in their respective national security regulations. Part B provisions guide the preparation and implementation of the above security plans. In short, it explains how the requirements can be met.

How Is ISPS Code Implemented In A Port Facility?

ISPS Code was implemented via chapter X1I-2 particular measure to improve the maritime security for the Safety of Life at Sea (SOLAS).

In a port facility, the ISPS Code is implemented in the following ways;

Assessing The Ship’s Security

The main goal is to identify an impending threat to the company’s assets and develop measures to avert security incidents.

Tactical Planning

Prepare the development of the security plans for the company and ships and achieve its implementation.

Security Policy

Inform all employees about the security measures being implemented so that they are aware of how they are directly concerned by the implementation.

Security Responsibilities And Authority

Ensure that every person managing the security plan knows what’s expected of them.

The managing team comprises the ship security officer, Master in relation with the security officer of the port facility, and the one for the company.

Security Project Team

The main goal is to develop security plans and provide adequate measures to be taken under the project.

The aim is also to withstand any problems that could inhibit the success of the project.

Company Security Program

Should explain how the company’s security measures will be handled to protect the company’s personnel and assets.

Ship Security Plans

It explains how the security measures will protect and the ship despite the ship’s location.

Approval Of The Ship’s Security Plans

Its main goal is to ensure its security plan. Adheres to the set requirements by the contracting government as well as the ISPS Code

Training And Drills

The main objective is to develop ways to prevent potential threats from affecting seafaring personnel regarding port security and during sailing.

Final Assessment

The final assessment is done to ensure that the security plan is implemented.

It will be effective in enabling the company to meet the ISPS Code requirements and acquire its certification.

What Are ISPS Charges? And Who Pays For It?

It is fees that are billed by the shipping line to cover the security and safety of the ship, cargo, and staff.

The charges cover the planning and workforce and the equipment used to implement the ISPS Code.

The fee is billed to the customer by the shipping line, and it’s typically included in the freight quote. It is paid along with the freight.

What Is The Difference Between ISPS Code And ISM (International Safety Management)?

The difference between ISPS Code and ISM lies in their objectives.

ISM is aimed at ensuring the safety of the crew by averting human injuries and deaths.

By ensuring there’s no damage to the environment and property as well as safety at sea.

On the other hand, ISPS Code explicitly ensures the safety of port facilities and ships.

What Is ISPS Certificate?

An ISP’s certificate is a document that verifies your adherence to statutory security regulations contained in. The ISPS Code but also the Port Security Act and the European Regulation 724/2004.

What Is The Duration Of An International Ship Security Certificate?

The Certificate remains valid for five years as long as you perform at least one intermediate verification in the validity period.

What Happens To Ships And Ports That Are Not Compliant With The ISPS Code Requirements?

To begin with, if the ship doesn’t adhere to the requirements, it shouldn’t be granted the International Ship Security Certificates.

As these are security matters, every measure has to be upheld, and if not.

The respective contracting governments are required to cancel operations of ships and ports that are non-compliant.

The ships to be canceled also include those that have not met the stated guidelines per chapter XI-2.

As well as the International Ship and Port Security Code and are yet to be certified.

Any ship that’s required to adhere to requirements of ISPS Code and chapter XI-2 should also follow.

The compliance and control measures in another different port.

Who Are The Key Players In International Ship And Port Security Code?

The key players in ISPS Code are the ones to ensure that the safety measures are implemented on vessels and port facilities.

Below are the three key players in the ISPS Code;

  • Company Security Officer (CSO) – Ensures a proper assessment of the ship’s security. Additionally, the security officer is in charge of developing the ship security plan, handing it over for approval, and implementing it.
  • Port Facility Security Officer (PFSO) – Not only does he implement but also develops and maintains the security plan of the port amenity. The CSO and SSO work closely together with the PFSO.
  • Ship Security Officer (SSO) – As the name implies, a ship security officer ensures that the ship is secure and implements the ship security plan. Additionally, he contacts the PFSO and CSO when need be.

What Is Declaration Of Security About Ship And Port Security?

A declaration typically involves more than one party.

Therefore, in our case a declaration of security is stating matters concerning security between two parties.

These two parties can either be a shipowner, and the other party can be a port or a different ship.

DoS is not used as often but only during high-risk situations when the port facility and ship urgently agree on a solution regarding the measures to be executed.

DoS needs to be filled under three circumstances, namely;

  • When the ship is being managed at a high-security level as compared to its calling port.
  • When a ship is calling a port that lacks a port facility security plan
  • When a ship is working at a high-security level compared to other ships, it is operating with.
  • When a ship is working with a ship lacking an approved ship security plan,
  • There has been a security threat to the ship or port facility.

What Are The Challenging Areas In ISPS Code Implementation?

Since its adoption in the year 2004, some questions concerning the ISPS Code have arisen. The relationship between the ISM and ISPS Code can be problematic regarding whether or not to consider safety or security.

A ship can be secured but unsafe, and this can result in the loss of the ship.

Also, lack of security might result in losses caused by piracy and other similar acts.

Another challenge might be the lack of an official monitoring process on the security problems since no audits are carried out.

In addition to that, a Ship Security Plan always includes confidential data.

This might affect the efficiency in making amendments and make it difficult to maintain or revise a Ship Security plan.

What Are The Advantages And Disadvantages Of the ISPS Code?

Some of the advantages of ISPS include the following;

  • Ensures improved control of the flow of cargo, personal access.
  • Provides a safe working environment for seafarers and port staff, thus creating favorable working conditions.
  • Better documentation process owing to the standardized procedures globally.
  • ISPS Code enhances the ship’s security and safety, thereby minimizing risks.

Aside from the advantages, ISPS Code also has some drawbacks which are not limited to;

  • Owing to the extra security-related tasks introduced to the work routine, the seafarers have additional work.
  • More paperwork as well as certification requirements,
  • Once the security level increases, the work progress becomes slower.
  • Increase in expenditures caused by shooting up of the ship’s operating costs for ISP’s implementation. This rising cost doesn’t exclude port costs since higher security levels result in a more extended port stay.
  • Extra administration work.

What are the challenges of the ISPS Code?

Regulations come with their challenges, and this doesn’t exclude the ISPS Code. Below are some of the challenges of the ISPS Code;

  • Some ports restrict cargo handling at security level 3 not unless there is a depreciation of the level.
  • Implementing the International Ship and Port Facility Security Code becomes challenging since not every crew is trained for ship security.
  • The rise of security level results in slow cargo operations, which affect port activities.
  • In addition to that, the implementation process is an added task that consumes a lot of time.
  • The crew’s daily activities are affected as it comes with extra security watch duties for them to handle.

What Are The Implications Of The ISPS Code Awareness?

ISPS Code has indirect impacts on ports. The impacts are categorized according to how they affect the;

  • Efficiency
  • Service price
  • Customer satisfaction
  • Manning
  • Checking process
  • Administration cost
  • Damage occurring
  • Lead time
  • Competitiveness
  • Effectiveness
  • Profit
  • Service level
  • Documentation

It’s worth noting that the ISPS Code has both positive and negative implications on port facilities and ships.

For instance, the ISPS Code generalizes the impacts. This might hinder the proper scope of research as it will be based on the combined parts of the port rather than addressing the impact on each service.

The general aspects are researched by analyzing the factors mentioned above.

At Tj chinafreight, we handle all your freight forwarding needs from China to any global destination.

Contact us now for all your shipping from China.

Aluminum Window Profiles: The Ultimate FAQ Guide

This guide covers all information you’re looking for about Aluminum Window Profiles.

So, before importing Aluminum Window Profiles from China, read this guide.

Is There Difference Between Aluminum Window Extrusion And Aluminum Window Profiles?

Yes, there is a difference between aluminum window extrusion and Aluminum Window Profiles.

One of the most notable differences is in the manufacturing mode.

You will use the extrusion manufacturing method to produce or fabricate the aluminum window extrusion.

On the other hand, you can either use extrusion method or any other manufacturing method to manufacture Aluminum Window Profiles.

Other than that, you can use both Aluminum Window Profiles and aluminum window extrusion to make windows on different applications.

What Are Thermal Break Aluminum Window Profiles?

Thermal break Aluminum Window Profiles are special type of Aluminum Window Profiles with thermal break technology.

In other words, this type of Aluminum Window Profiles has a reinforcement of polyamide bar between inner and outer bar.

It will create an insulated barrier within the window frame thus slowing down conduction of heat, noise, and cold.

What Are The Advantages Of Thermal Break Aluminum Window Profiles?

There are numerous benefits that you will realize when using the thermal break aluminum window.

Here are some of the benefits of using the thermal break Aluminum Window Profiles.

Reduce Conduction Of Heat

Thermal break Aluminum Window Profiles have the ability to slow down conduction of heat 1000 times over.

Implying that, you will have a better experience with thermal break Aluminum Window Profiles in comparison to other profiles.

Prevent Frost And Moisture Condensation

It consists of a three-way sealing structure that separates water vapor cavity and achieve pressure balance of water and air.

This system improves water and air tightness thus achieving a clean and bright effect on the thermal break Aluminum Window Profiles.

Saves Energy

During the winter season, you can save a lot of heating energy as it reduces heat loss by a third.

In summer season, the insulation strips are heated thus reducing loss of energy more through air conditioning.

Environmentally Friendly

Through the application of the heat insulation systems, you can reduce consumption of energy and environmental radiation.

It will reduce heat conditioning which eventually reduce environmental radiation and heating thus conserving the environment.

Proper For Human Health

It is capable of creating a very comfortable environment for human habitation by regulating interior and exterior temperatures.

You will enjoy your time indoors as the window profile balances the body heat and the environmental heat.

Reduces Noise

It has the capability of reducing resonance effect of the sound waves thus maintaining a quiet environment.

Apart from that, it is capable of preventing transmission of sound thus reducing noise by up to 30 DB.

Very Attractive

It comes in a wide array of colors thus making it highly attractive which is a product of proper aluminum anodizing.

You have the freedom of combining more than one color thus increasing the beauty of the window profile.

Which Is The Best Alloy For Aluminum Window Profiles?

Choosing a suitable aluminum alloy for your window profile will depending on your unique requirements and specifications.

Of course there are many aluminum alloys.

However, for Aluminum Window Profiles, we recommend 6063 aluminum alloy.

It is strong, durable, and reliable.

Besides, it has good corrosion resistance and weldability.

Which Factors Should You Consider When Selecting Best Alloy For Aluminum Window Profiles?

When making the Aluminum Window Profiles, you should consider using the best types of materials.

To make the best choice, you should know the properties that you would like on the window profile.

Here are some of the properties of the Aluminum Window Profiles to help you make the right choice.

Strength

You must know the kind of strength that you would like to have on your Aluminum Window Profiles.

Implying that, different alloys have different strengths prompting you to make the most informed choice.

Surface Finish

You should also note that there are numerous types of surface finishes that you can have on the Aluminum Window Profiles.

On that note, these surface finishes match different aluminum alloys which forces you to make the best choice.

Suitability For Decorative Anodizing

You should also consider an aluminum alloy that is highly suitable for anodizing for the purpose of decoration

Corrosion Resistance

In addition to that, you will increase the durability of the Aluminum Window Profiles by using corrosion resistant aluminum alloys.

Machinability

You must also choose an alloy that will give you easy time when it comes to fabrication to make the window profile.

Weldability

Fabrication of the Aluminum Window Profiles also forces you to choose the most suitable alloy that you can join by welding.

Production Economics Or Price

You must also work within a particular budget which you can comfortably afford to avoid straining the production economics.

Does The Type Of Aluminum Alloy Affect The Production Process Of Aluminum Window Profiles?

Absolutely, the type of aluminum alloy affects the production process of Aluminum Window Profiles.

Aluminum has different indices that that determine the quality of assessment suitable for producing Aluminum Window Profiles.

Since there are different types of aluminum, you should expect them to have different characteristics.

With that in mind, you will note that the aluminum alloys affect the production process of Aluminum Window Profiles.

What Are The Processes Involved In The Manufacturing Of Aluminum Window Profiles?

There are four main processes that you will have to follow during the manufacturing of Aluminum Window Profiles.

Here is the main procedure involved in making of the Aluminum Window Profiles.

1)      Ingot Casting

This is the first step that you will undertake in the process of manufacturing the Aluminum Window Profiles.

Here, you will prepare the ingredients that you need for the manufacturing process of the Aluminum Window Profiles.

Apart from that, you will melt the ingredients and then proceed with casting before homogenizing.

This is the stage where you will determine the chemical composition as well as dimensions of the ingot.

2)      Extrusion Process

This is the main process of making the Aluminum Window Profiles.

At this point, you will go through particular processes such as ingot heating then followed by extrusion.

After that, you will cool the extruded die before straightening it under tension.

As soon as it is straight enough and cool enough, you will cut it into different pieces according to dimension specifications.

When heating the ingot, you should control the temperatures between 400 to 520 degrees centigrade.

Apart from that, you will use a hydraulic press with 800 to 2500 tonnes of pressure.

3)      Heat Treatment

Here, you will heat the aluminum alloy in order to quench and age to get the best mechanical properties.

You can proceed with the heat treatment process after molding to make sure it is in the right form.

4)      Surface Treatment

Finally, you will treat the surface of the aluminum extrusion profile through anodizing.

There are other surface treatments you can opt for even though anodizing gives the best colors.

Which Are The Different Styles Of Aluminum Widow Made Using Aluminum Widow Profiles?

When it comes to styling, you have the freedom of choosing the most suitable window to suit your needs.

Implying that there are quite a number of styles that you can have for your Aluminum Window Profiles.

Here are the main Aluminum Window Profiles styles that you can choose from.

  • Casement Windows
  • Sliding Windows
  • Stacking Windows
  • Fixed Pane Windows

Does The Temper Of Aluminum Window Profiles Impact The Product Quality?

Yes, the temper of Aluminum Window Profiles has an impact on the product quality.

In other words, when choosing the most suitable quality of Aluminum Window Profiles, temper plays a huge role.

These are the different variations that you can achieve from the extrusion of different aluminum alloys for Aluminum Window Profiles.

There are five different types of temper profiles that you have to pay close attention to.

F Temper As Fabricated

These are semi-finished products that you can use in shaping, finishing, and other thermal process to achieve other tempers.

O – Temper Or Annealed

You will use this form of temper to achieve the lowest strength condition of the Aluminum Window Profiles.

H – Temper Or Strained Hardened

You will use this type of temper on non-heat treatment alloys whose strength increases from hardening.

W – Temper Solution Heat-Treated

You will use this type of temper on alloys which age spontaneously or naturally after heat treating.

T – Temper Or Thermally Treated

You will use this on any product that has heat treatable alloys then followed by quenching and aging.

How Do You Measure The Strength Of Aluminum Window Profiles?

You can measure the strength of the Aluminum Window Profiles by examining the impact and tensile strength.

Apart from that, you will have to look at the hardness as well as the ductility of the Aluminum Window Profiles materials.

When it comes to measuring ductility, you will use percentage elongation and percentage reduction tests.

What Are The Applicable Surface Finishes For Aluminum Window Profiles?

Well, there are different types of surface finishes that you can have on the Aluminum Window Profiles.

The surface finish will improve the beauty of the Aluminum Window Profiles and increase corrosion resistance.

Here are the main surface finishes that you can have for the Aluminum Window Profiles.

Anodizing Surface Finish

You can opt for anodizing which involves adding a surface on top of the natural oxide film.

It is an electromechanical process that increases the durability and adds more colors to any type of aluminum alloy.

Power Paint Surface Finish

You can use this process which will leave behind a film that will meet the intense performance criteria.

It involves applying solid powder which will fuse with the aluminum alloy to form the coating.

Liquid Paint Surface Finish

You can apply different colors on the Aluminum Window Profiles with uniform thickness.

It comes complete with VOCs which you can remove through the baking process.

Why Is Tolerance Of Aluminum Window Profiles Important?

It is very important to have a look at the tolerance of the Aluminum Window Profiles.

Here are the reasons why you should look at the tolerance of the Aluminum Window Profiles.

  • Helps in meeting the functional requirements that you desire
  • It will also help in the determination of the maximum permissible die wear
  • Enhance the ability to produce the most suitable shape for the aluminum extrusion
  • In addition to that, it helps in the establishment of necessary press technical conditions like cooling and run out-side.

Are Your Aluminum Window Profiles Lead-Free?

Yes, our aluminum windows profiles are lead free.

Implying that, they are safe not only for you to use but also for the environment.

Apart from that, our aluminum alloys are machinable even without having lead material as a constituent part.

In addition to that, we comply to the RoHS quality requirements which requires exclusion of lead from aluminum alloys.

What Factors Affect The Bending Of Aluminum Window Profiles?

There are different points which can help you identify the most suitable aluminum alloy for bending.

There are particular factors which help in the identification of the aluminum for proper bending.

Here are the main factors affecting the bending of Aluminum Window Profiles.

Formability

You should have an aluminum alloy with lower strength ratio to a higher elongation ratio.

In this case, as strength increases, the elongation decreases and if the other decreases another increases.

Bend Radius And Thickness

Since aluminum becomes harder as you bend, you must take into consideration the radius and thickness.

Elongation Percentage

In this case, you will look at elongation in relation to the difference between yield strength and ultimate strength.

Do You Manufacture Custom Sizes Of Aluminum Window Profiles?

Yes, we do manufacture custom sizes of the Aluminum Window Profiles.

You should provide us with the different sizes or dimensions that you need.

Apart from that, you must also specify the type of aluminum alloy you would like to use.

What Are The Parameters To Check During Quality Assessment Of Aluminum Window Profiles?

During the assessment of the quality of aluminum, there are particular factors that you have to consider.

Here are the main determinants for the right quality of the aluminum materials.

Thickness

Here, you can either choose between the 70 series or 90 series which will determine the type of window profile.

Apart from that, you can also use the 55 series or the 60 series to make the Aluminum Window Profiles.

Tensile Strength

When looking at the tensile strength, you must make sure that it is equal to or greater than 157 N/mm².

Apart from that, you must also pay attention to the yield strength that should be equal to or greater than 108 N/mm².

Color Scale

You must also go for an aluminum alloy that has a proper color scale with obvious chromatic aberrations.

In many cases, you have to confirm that the colors between the two ends of an aluminum is consistent.

Flatness

You have to make sure that there is no bulging or dents on the surface of the aluminum alloy of choice.

Glossiness

In case you spot ash and bubbles on the surface of aluminum alloys, you have to avoid that kind of material.

Degree Of Anodizing

You must also note that the alloy allows a degree of anodized material greater or equal to 10 micrometers.

You can confirm this by scratching the surface just to confirm that the film is erasable.

What Is The Lifespan of Aluminum Window Profiles?

After installing your Aluminum Window Profiles, you should rest easy knowing that they are durable.

Implying that, Aluminum Window Profiles have very high durability spanning to about 45 years.

You should, however, have the best form of maintenance to ensure it reaches the maximum service life.

How Do You Color Aluminum Window Profiles?

Well, you can color the Aluminum Window Profiles after the surface finish to suit any color combination.

Depending on the type of aluminum alloy, you can simply anodize aluminum to provide the most suitable color.

Which Are The New Trends In Aluminum Window Profiles Manufacturing?

As time goes by, you should expect to have better technology and trends on the Aluminum Window Profiles.

The most recent trends that you should expect to have on the Aluminum Window Profiles are.

Multi-tone Surface Treatments

At the moment anodizing does not meet the ever-increasing decorations on the exterior of different buildings.

It is the reason why you should adopt the multi-tone surface treatment on the Aluminum Window Profiles to match decoration specifications.

Electrostatic Powder Spraying

This form of spraying has a better effect on the Aluminum Window Profiles than anodizing.

It makes the Aluminum Window Profiles more resistant to corrosion, slat spray and alkali.

Electrophoretic Coating

You can also opt for electrophoretic coating which makes the exterior of the Aluminum Window Profiles soft and resistant to corrosion.

Which Are The Relevant Industry Standards That Aluminum Window Profiles Should Comply With?

You must also make quality of the Aluminum Window Profiles a priority by adhering to industry standards.

Here are the main industry standards for Aluminum Window Profiles that you should comply with.

  • ISO Quality Standards
  • cGMP Quality Standards
  • BS Quality Standards such as BS 7950 and BS 8213
  • PAS Quality Standards such as PAS23 and PAS24

What Is Aluminum Window Profiles Price?

The price of the Aluminum Window Profiles varies depending on a number of factors.

Here are the main factors that affect the cost you will pay for the Aluminum Window Profiles.

Type Of Materials

You have to understand that different types of Aluminum Window Profiles use different types of aluminum alloys.

In addition to that, you should also understand that the different types of alloys come with different price tags.

Size Of Aluminum Window Profiles

In this case, the bigger the size of the Aluminum Window Profiles, the higher the cost you will pay.

Type Of Aluminum Window Profiles

You should also note that there are different types of Aluminum Window Profiles that you can opt for.

For instance, you will pay more for Aluminum Window Profiles with thermal break properties than one without thermal break properties.

Is There Minimum Order Requirement For Your Aluminum Window Profiles?

Yes, there is a minimum order quantity requirement that you need to adhere to.

The minimum order quantity requirement will vary depending on the manufacturer.

You should also note that you can order more Aluminum Window Profiles above the minimum order quantity requirement.

Do You Have Standard Sizes for Aluminum Window Profiles?

Yes, there is a standard size for the Aluminum Window Profiles.

You can opt for the standard size which is usually high-profile cross-section size.

In this dimension, you can have the 40, 45, 50, 55, 60, 65, 70, 80, 90 and 100mm series.

Apart from that, you can also come up with unique dimensions that will fit your application requirements.

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We handle all the custom clearance, packaging, booking spaces in ships, and free warehousing, amongst others.

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Jones Act: The Ultimate FAQ Guide

If you have any question about Jones Act, you will find the answer right here.

So, keep reading to learn more.

What Is The Jones Act?

 It is an act created by the United States federal government to control and manage maritime commerce.

The Jones act is the one that provides the rules of trade and also determines which vessels can engage in that trade lawfully.

The Jones act requires that American citizens’ shipping between U.S. ports is done on ships constructed, owned, and ran.

What Is The History Of The Jones Act?

The Jones Act was introduced to the Senate by Senator Wesley R Jones from Washington State. On June 4, 1920, it was approved by the House and Senate.

On June 5, 1920, then-president Woodrow Wilson enacted it into law.

Since then, the Jones act has been through many amendments and revisions. The latest revision was in the year 2006, which involved remodifying the United States Code.

Why Was The Jones Act Created?

The main reason for creating the Jones Act was to ensure that the United States maritime industry remains safe, active, and dynamic.

This act came as a reaction to World War 1 where the German navy destroyed the United States fleet.

The Jones Act seeks to provide the U.S. with reliable maritime resources ready for shipping goods between the country’s ports.

Help grow the marine industry and ensure national security in times of war.

The Jones Act is vital in national security and defense and for the continued prosperity of America’s maritime trade.

Why Is The Jones Act Important?

Some of the important benefits of the Jones Act are:

  • The Jones act guarantees American citizens of reliable water transport at all times.
  • Vessels engaging in trade are American-built, owned, and operated; safety standards are assured.
  • The jones act ensures that American mariners remain employed and trained as one of its requirements. These jobs include ship crews, construction and maintenance of vessels, and other management jobs.
  • In times of war and emergencies, the jones act ensures that the U.S. has sufficient merchant mariners and vessels to aid in military operations.
  • The jones act subject’s revenue generated by domestic carriers to taxes while those owned by foreigners are not.

How Does The Jones Act Advance U.S. National Security?

The Jones act plays a critical role in advancing national security, especially in times of war or national emergencies.

It helps ensure that America maintains its political power, economic strength, and national security in the maritime industry.

With the Jones Act in place, America has reliable access to vessels and workforce at any given time.

The Jones Act vessels act as a naval auxiliary in times of war and national emergencies.

The Jones Act restrictions on vessels allowed in U.S. ports further advance National Security as they oversee. Hence they are indeed up to the set American rules and regulations.

What Are The Underlying Goals Of The Jones Act?

The underlying goals of the Jones Act are as follows:

  • Ensure the growth and development of national maritime vessels and support national defense- in times of war or national emergencies.

American ships readily provide the resources and workforce to help military operations.

During World War 1, before the Jones Act was enacted, the U.S. government was struggling with shipbuilding to support the war.

It was one of the underlying issues that brought up the Jones Act to be.

  • Build up the United States maritime trade and set off economic growth. The Jones Act provides about 650,000 Americans with employment and generates approximately $150 billion annually in monetary value.

Which Industries Are Supported By The Jones Act?

The Jones Act supports a variety of industries, for instance:

  • Crude oil and petroleum
  • Iron core, coal limestone
  • Farm and food products
  • Chemical and allied products
  • Steel and other construction materials
  • Shipbuilding industries

How Did The Jones Act Come About?

During a meeting in 1789, Congress’s initial proposition was to encourage American vessels for shipping through discriminatory tariffs and taxes.

However, at that time, U.S. sailors and shipbuilders were among the best in the world regarding cost and quality.

It is argued that the U.S. ships were so competitive that encouraging their use was cost-free.

Congress had to think beyond low cost and think matters national security. In times of war, such vessels would be used as a naval auxiliary.

There had to be laws to ensure their availability in service to the national interest.

By the mid-1800s, the U.S. shipping laws had become even more restrictive. This, in turn, made shipping less competitive and difficult.

In 1919, Senator Wesley Jones from Wesley State. The chairman of the Senate Commerce Committee commenced a series of hearings on the United States maritime industry.

In early 1920, a proposal was made to govern domestic water transport eliminating less expensive means of transportation to Alaska.

This proposal and language are what formed the basis of the Jones Act. On June 5, 1920, the proposals were folded into the 1920 Merchant Marine Act as section 27, otherwise known as the Jones Act.

The Jones Act was passed by the Senate and signed into law by the president.

Why Was The Jones Act Created?

The jones act was created mainly to revive the American maritime industry, which had been badly affected by World War 1.

When creating this act, Congress intended to ensure that national defense and security were provided for.

The jones act was to ensure the proper and continued growth of both foreign and domestic maritime commerce.

It was also to ensure that the United States have suitable and sufficient vessels. To serve or offer back up to military operation in times of war or national defense.

Where Does The Jones Act Apply?

The jones act applies to territories like Hawaii, Puerto Rico, Alaska, and all other ports in the U.S. mainland.

The Jones Act, Hawaii

What Are The Requirements For Vessels Carrying Goods Between U.S. Ports?

The main requirements for vessels shipping goods between U.S. Ports are as follow:

  • Vessels must belong to United States citizens or be controlled by U.S. citizens with 75% ownership.
  • They must have been constructed or assembled on American soil.
  • Vessels should have their registration done in the U.S.
  • At least 75% of the maritime crew should consist of American citizens.
  • They must be US-flagged.

Vessels shipping goods between Us ports are expected to fulfill these requirements before legally participating in the trade or other maritime activities.

The Jones Act excludes territories like Guam and requires that vessels be at least possessed and operated by U.S. citizens. But not necessarily built or rebuilt in the United States.

How Does The Jones Act Restrict Vessels Entering Puerto Rico?

Any vessels can get into Puerto Rico under the Jones Act. However, it requires that shipping between two U.S. ports be done by ships constructed and operated by American citizens.

The jones act further restricts vessels going into Puerto Rico by ensuring shipping from the island to the U.S. mainland.

It is done using expensive and protected ships instead of just regular ones.

Based on data collected by a financial consulting firm John Dunham and Associate.

The difference between the cost of a U.S. vessel and a foreign vessel is 62% and 57%.

According to the report, Puerto Rico’s lost economic value is approximately $1.2 billion.

This makes products shipped from the U.S. mainland expensive and thus raising Puerto Rico’s overall cost of living.

What Is The Jones Act Specifications On Seamen’s Rights?

The jones act indicates that sailors and seamen can make claims and should be paid for damages or injuries obtained at work.

The jones act requires employers to compensate seamen for injuries suffered from the negligence of the ship’s owner. Any other action by the captain or crew members is also considered.

The Jones Act further specifies that any worker who spends less than 30% of their working on a vessel is not considered a seaman.

Therefore, they cannot file a lawsuit for damages.

A person who spends over 30% time serving on a vessel is a seaman and sue their employer for claims.

Suppose a seaman is injured in the line of duty. They have up to three years to file a lawsuit from the time of the injury.

If a seaman does not file the lawsuit within that specified time, the court may dismiss the claims.

Can The Jones Act Be Waived?

The jones act can be waived temporarily if the Secretary of Defense makes a request. If it’s a national security case or if there is a national emergency.

Historically, the Jones Act has been waivered several times in the wake of natural disasters like hurricanes.

The Department of Homeland Security is the body that is in charge of reviewing Jones Act waivers.

In the past, the Jones Act has been waivered in times of natural disasters like hurricanes and other national security instances.

Some instances where the Jones Act have been waivered are:

  • In 2005, Michael Chertoff, the secretary of Homeland Security. Temporarily waived the Jones Act ships transporting natural gas and oil from 1st to September 9 that year. It was in the wake of Hurricane Katrina.
  • In 2012, when Hurricane Sandy hit and gave rise to fuel shortages. A temporary waiver of the Jones Act was issued to help curb these shortages.
  • On 2017 September 8, a temporary Jones Act was issued due to Hurricanes Irma and Harvey. The waiver was to help deal with the effects of these hurricanes.
  • In 2017, President Trump gave a temporary Jones Act waiver to Puerto Rico after Hurricane Maria hit them.

Why Was The Jones Act Waived For Hurricane Harvey And Irma, And Did It Help?

Hurricane Harvey heavily affected the Texas Gulf Coast’s oil supply system. Texas being the main distribution hub for petroleum products in the U.S., Hurricane Harvey led to a fuel supply shortage.

As a result, a temporal waiver was issued by Trump that allowed foreign ships to transport fuel-related products.

The release was to help cover the shortages and gaps that were brought about by the hurricane.

It is reported that approximately eight vessels took advantage of the waiver for both Harvey and Irma hurricanes. It is safe to say that the waiver did provide relief to the damage caused by the hurricanes.

What Are The Two Types Of Jones Act Waiver Requests?

The two types of Jones act waiver requests process are; one for the secretary of defense and the other for non-defense entities.

However, it is essential to note that the Secretary of Homeland security is the final. The maritime officials do not have the authority to issue Jones Act Waivers.

Secretary of Defense – Secretary of defense has been given authority under the constitution to make the Jones Act waivers in national security and protection matters.

Non-defense entities – Department of homeland security must evaluate if the waiver request is in the interest of national defense to go ahead with it.

If there is enough interest in national defense, the secretary of homeland security makes the final decision on the waiver of the Jones Act.

Does The Jones Act Apply To Airlines?

The Jones act may apply to airlines. However, many United States courts have proved it difficult to determine which cases it applies to and which it does not.

What Are The Concerns Of The Jones Act?

There has been criticism about the shipping cost implications brought about by the Jones Act.

However, their labor cost can explain the difference between the U.S. and other foreign shipping costs. Taxation systems are working conditions and other factors.

Generally, American citizens have access to higher working and living conditions.

Companies and workers in the U.S. have to meet set national safety and compensation regulations.

American employees, suppliers, and vendors have to pay American taxes strictly.

These extra costs impact shipping costs put Americans at a disadvantage with their foreign counterparts.

Who does not require to spend all that?

Suppose the Jones Act was recalled, the U.S. would experience a significant loss in maritime jobs.

It would be such a huge blow to the economy as thousands of jobs would be lost.

Shipyards would stop production, making the shipping industry collapse.

The U.S. government has to oversee that the Jones Act fleet is intact. And is not threatened by foreign competition to continue benefitting from the economic benefits it yields.

What Is The Economic Impact Of The Jones Act?

The Jones Act helps boost various sectors of the U.S. economy. It dictates that vessels be built or rebuilt in the U.S. shipyards.

Shipowners need to take their vessels for regular inspection, maintenance, and monitoring.

The Jones act contributes to the American economy beyond ship-related operations. For instance, shipbuilders buy materials for construction from domestic companies, thus impacting the economy positively.

These shipbuilding activities offer employment to Americans who spend their wages, generating more income for the economy.

Other economic cost implications associated with the Jones Act include:

  • Transportation costs for vessels under the Jones Act are double those of ships not subject to the Jones Act.
  • One of the requirements of the Jones Act is an all or higher percentage American crew. It makes costs of operating ships is subject to the Jones act 2.7 times higher.
  • The prices of ships constructed in the United States are two to four times higher than the average vessel built elsewhere.

How Does The Jones Act Influence Higher Shipping Rates?

As a result of the specifications and restrictions of the Jones Act, the U.S. endures overall high shipping costs.

Transport of goods between U.S. ports is off-limits to foreign vessels. Therefore, domestic shippers incur very high shipping rates for the vessels they use.

Demand for shipping services goes down when the shipping rates go up.

This, in turn, causes reduced demand for purchasing vessels by shipping companies and reduced employment opportunities for merchant mariners.

Who Is Responsible For The Jones Act Enforcement?

It is the responsibility of the Department of Homeland Security and U.S. Customs and Border Protection to oversee the enforcement and implementation of the Jones Act.

These two bodies have the authority to impose penalties and fines on violators of the Jones Act.

The department of Homeland Security is also in charge of issuing waivers for the Jones Act.

If you witness a Jones Act violation, you are encouraged to report it to the following address:

The Jones Act Division of Enforcement

U.S. Customs and Border Protection

Office-(504)670-2074

jonesact@cbp.dhs.gov

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Known Shipper: The Ultimate FAQ Guide

Let’s look at yet another important freight term – known shipper.

If you have any question about known shipper, you will find the answer right here.

So keep reading to learn more.

What Is A Known Shipper?

The Transport Security Administration (TSA) requires any shipper to transport cargo on passenger aircraft from the U.S. To be included in the database that lists known shippers.

This database contains names of any shipper legally allowed to export cargo from the U.S. via a passenger aircraft.

Thus, explaining what we mean by a known shipper. To expound further, here is a brief explanation.

A known shipper management system is a program established by the Transport Security Administration (TSA). To make use of the extra space left after loading cargo in passenger aircraft.

To make this move efficient & effective. The Transport Security Administration had to come up with proper standards.

To help the cargo in a bid to ensure the safety of the passengers and cargo in the aircraft.

That said. A known shipper refers to a person who has permission to ship goods in a passenger air carrier from the U.S.

Who Administers The Known Shipper Program?

The Federal Aviation Administration first initiated the Known shipper program due to the 9/11 tragic events.

Afterwards, TSA took over in the program’s administration, whose purpose is to ensure air cargo security.

TSA is responsible for evaluating and selecting qualified shippers for the known shipper status in the U.S., Thus enabling them to have privileges when shipping cargo through air.

What Is The Difference Between a Known Shipper And An Unknown Shipper?

A known shipper is a person that has been listed in the known shipper database by the Transport Security Administration.

The TSA ensures that they evaluate and select individuals to be listed in the known shipper database based on factors such as;

  • Their previous customs history -Having a customs history places you in a better position to be approved for the known status.
  • Shipment history – Same as the customs history, a shipment history will back up your application and increase your chances of being approved.
  • Contracts
  • Dun and Bradstreet vetting

Known shippers get to enjoy a wide variety of benefits—one of the main ones being the ability to transport their cargo via passenger and cargo aircraft.

On the other hand, an unknown shipper is not included in the known shipper database. Meaning, they only have one option for shipping their cargo, which is via cargo aircraft.

In addition to that, an unknown shipper must name their cargo and supporting documents. “UNKNOWN SHIPPER, CARGO AIRCRAFT ONLY” when shipping their cargo.

It is just one of the many advantages of being a known shipper that we shall look at later in this guide.

Why Was The Known Shipper Program Established?

After the occurrence of the catastrophic incident of 9/11, the known shipper program was established. To ensure the security of the cargo and passengers.

Aside from this, another purpose for establishing it was to use the available space left in the passenger aircraft.

It was realized that once passengers’ luggage was loaded, there was a huge amount of space left. Therefore, using space to ship cargo became a brilliant idea.

TSA had to evaluate each individual and assess whether they meet the requirements for being included in the database for known shippers.

Additionally, the TSA saw that every standard was adhered to be successfully and safely executed.

Is It Cheaper To Ship Under Known Shipper Status?

Shipping under known shipper status is quite beneficial in several aspects: cheap cargo shipping.

As we all know, airfreight is the most expensive means of transport that you can use to ship cargo.

You must know that shipping your cargo via a cargo aircraft becomes expensive compared to shipping via passenger aircraft.

That said, it’s easy to see why known shipper status is beneficial.

You will get to enjoy faster shipping and more flexibility, but also the availability of diverse options and reasonable rates.

What Are Some Other Benefits Of Being A Known Shipper?

A known shipper has several advantages that unknown shippers lack. Such benefits include;

  • Timely delivery – You are bound to experience faster delivery if you are a known shipper, and here is why.

Globally, there are more passenger planes as opposed to cargo aircraft. What’s more, the passenger aircraft take more trips as compared to cargo planes. Thus they can ship and transport several people and goods.

In addition to that, most if not all-cargo aircraft use fewer routes to travel, therefore slowing down your shipping process.

That said, having the opportunity to use passenger planes to ship your cargo dramatically benefits you and your business.

  • Additional options –Known shippers have the opportunity to ship cargo on both passengers and cargo ships and enjoy faster transit times.
  • Cheaper rates and costs – Passenger aircraft are funded by the shippers and passengers, minimizing overall costs.

In addition to that, known shippers have two shipping options which place them in a better position. In case of unnecessary rate fluctuations by cargo planes.

  • Less hassle – As an unknown shipper, you should be ready to pass through several thorough checkups and screenings.

Known shippers are saved from such hassles by having their cargo X-rayed, just like passenger baggage.

  • More flexibility – Being a known shipper is quite flexible as you have options if a client decides to adjust your shipping schedule.

The available options allow you to meet deadlines regardless of any adjustments made.

  • Fewer delays and efficiency – A know shipper will experience fewer delays than unknown shippers due to regulatory reasons.

What Is A Known Shipper Number?

To ship cargo outside the U.S. via a passenger aircraft, you need to be a known shipper.

Every known shipper is assigned a number that helps identify them as a known shipper and is used in making bookings.

What Are The Requirements For Becoming A Known Shipper?

There are no solid requirements that TSA has publicized.

The reason behind this secrecy is abiding by the policy and ensuring safety for domestic and international travel.

It, in turn, facilitates adequate vetting of the shippers.

However, we can generalize TSA’s factors when individuals or companies apply to become known shippers.  They include;

  • Secure Infrastructure
  • Security threat assessment
  • Background checks
  • Access controls
  • Security and awareness training
  • Supervision at sites for air cargo as well as staff working in air cargo

Again, keep in mind that there is no detailed information about what’s strictly required by the TSA.

Your freight forwarder can offer you additional advice on what factors you should consider when applying to become a known shipper.

How Do I Apply For Known Shipper?

The process of becoming a known shipper can be complex or straightforward based on the amount of information you have.

IAC will require you to present as many documents as you can.

This including a history of your shipping records and enough documentation to prove the validity of your business.

Once you are done submitting the necessary documents and information.

TSA will go through your application and decide whether or not to approve it.

This might take from 24 hours to a few weeks before your approval status is communicated. The period taken to approve might differ based on factors such as;

  • Length of Queue of other companies
  • Missing information
  • Any red flags are being raised during the process.

Keep in mind that if you resell goods, there are minimal chances of your application being approved.

The reason being re-sale goods are considered to have many risks.  That said if you are a manufacturer.

You have a higher probability of being approved as compared to an individual who resells goods.

In addition to that, having experience with airfreight shipping provides you with a good chance of being approved.

A freight forwarder can guide you in the application process by providing you with advice and answers to your questions.

Working with freight forwarders allows for a faster application process with TSA.

What Would I Need To Become A TSA Known Shipper?

Becoming a known shipper is not a walk in the park. There is a lot of information or documentation you will need to present.

TSA will examine your business to assess whether it meets the requirements for attaining the known shipper status.

Having knowledge and access to your shipping history and data records might be beneficial to the TSA professionals. It helps investigating your business will be of importance.

Being a manufacturer of goods with experience in airfreight is an added advantage when applying for this process compared to a goods reseller.

It’s because manufacturers can quickly provide valid information on the nature of their goods and prove their safety.

How Long Does It Take To Become A Known Shipper?

There are several steps to be taken when applying to become a known shipper.

Often, the length of time to become a known shipper will range from a week to several weeks. This will depend on how fast your documents are received.

How Much Does It Cost To Become A Known Shipper?

Becoming a known shipper involves several processes. The first one is filling and submitting a known shipper request form.

After that, the information that you provide will be verified via the TSA database. Any site inspection conducted will attract a fee of not less than $75 or more.

How Long Is A Known Shipper Status Valid For?

After your known shipper status is approved, it will be valid for one year. You will need to renew your Known status every year to retain the known shipper status.

In as much as acquiring a known status might be challenging. I cannot stress enough how beneficial a known shipper status is to your shipping processes.

More so in terms of flexibility and efficiency.

Do I Need To Be A TSA Known Shipper For U.S. Airfreight Imports?

No. It is not a must for you to be a TSA known shipper when importing to the U.S. via airfreight.

Only US registered businesses and residents are required to register with TSA. It’s done to ensure that the cargo being shipped is safe to aircraft staff and passengers in the planes.

What Are The Limitations To What I Can Ship As A Known Shipper?

It’s vital to understand that in as much as known shipper status is beneficial, it also has its downside.

To begin with, you are limited to the size of cargo you can ship via a passenger aircraft.

For instance, you cannot cargo vessels above 62H inches or longer than 125 Long inches.

Failure to observe this measurement will result in your cargo being prevented from being shipped in passenger aircraft.

Cargo aircraft are specifically designed to accommodate cargo, and therefore they allow diverse dimensions and weight of cargo to be shipped.

Let’s have a quick look at the Boeing 747 freighter.

It’s a maximum height of 300 centimetres for every piece of cargo, while the 747-passenger aircraft has a size of 160 centimeters.

From this example, it’s easy to conclude that you are not always guaranteed a known shipper.

Before deciding on the aircraft to use, ensure that you are aware of the dimensions of your cargo.

Are There Exceptions For Shipments Not Requiring Shippers To Be Known?

Yes, some shipments will not need you to have a known status. Such loads are not limited to;

  • Shipment transported via cargo flights
  • A live animal
  • Shipments moving around Alaska
  • A package that’s either 16 ounces or below.
  • Medical shipments.

Does Being A Known Shipper Exempt Me From Cargo Screenings?

No. While there are several benefits of having a known status, exemption from cargo screenings isn’t one.

Just like other goods and passenger baggage being transported in the passenger aircraft, your cargo will need to be screened.

Together with the port customs.

The TSA will carefully examine your cargo and ensure that all the requirements are met, to ensure safety on the plane.

The screening of cargo happens before they are loaded in the passenger aircraft, thereby facilitating the efficiency of the operation.

What Should I Do If I Can’t Get The Known Shipper Status?

It is never guaranteed that you will be approved to get a known status. Therefore, in case you are not among the selected ones. You shouldn’t lose hope yet as there are several other alternative options you could take.

First, you need to remember that you still have the option of shipping via a cargo aircraft. Shipping your goods through a cargo aircraft will not require you to have the known shipper status.

Nevertheless, due to the downsizing of the commercial airline fleet in the U.S.

The number of domestic air freighters left is very minimal if they still exist.

It poses a challenge to the unknown shippers as they have fewer options to choose from.

Secondly, you can work with a freight forwarder and open an account with them. Your freight forwarder will help submit your business information to the DHS for them to review.

Upon submitting, the response as to whether you’ve been accepted or rejected will be communicated after a few minutes or so.

What Is The Difference Between Known Shipper And Known Consignor Status?

A known shipper and a known consignor are two different statuses that might sound to be similar.

A known shipper is entitled to ship their cargo via passenger flights and cargo flights approved by TSA.

On the other hand, a known consignor refers to an individual or company that ship’s cargo on their account.

A known consignor will be required to meet the required standards of security. As well as the regulations for the specific cargo they are shipping.

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What Steps Should I Take To Become A Known Shipper For Business?

Typically, TSA already recognizes businesses as known.  For you to qualify for a known shipper status, your business needs to be TSA recognized.

Here are some steps to take to become a known shipper as a business.

  • Submit your application electronically via your phone to your cargo operators. Who will then contact TSA to establish whether you are known under TSA.

Below are some of the information that might be required when submitting your application.

  • Physical address
  • Full name
  • A valid email address
  • Your phone number
  • A mailing address (if applicable)
  • Primary shipping station
  • Suppose you are known under the TSA. You will be given a customer identification number, and you can commence shipping once your status reflects in the system.

On the other hand, if you happen to be an unknown shipper, your air cargo operator can appeal on your behalf.

This, however, might vary depending on different air cargo services. For instance, Alaska air cargo does appeal on behalf of their client’s business.

Nonetheless, after appealing, it might take several weeks to hear from the TSA. If your status is still not updated to known, you can discuss other options with your air cargo operator.

An IAC can Be A Known Shipper?

Whether it’s a foreign air carrier, IAC, adhering to security requirements must be applied qualify their clients to a known shipper status.

If you are a shipper wishing to ship your cargo via air transport, your transportation service provider can assist you in becoming a known shipper.

What Is The Purpose Of KSMS?

KSMS (Known Shipper Management System) is a program used to approve shippers to ship their cargo via passenger.

KSMS also ensures that both domestic, as well as international airline safety and security, are upheld.

In case you are shipping from China to U.S.A., Tj chinafreight offers cost effective and reliable solution.

Contact us now for all your freight forwarding services.

How to Import Stainless Steel Valves From China?

The choice of a China stainless steel valve manufacturer is an important decision for an enterprise. A good China stainless steel valve manufacturer means possessing the processing technology to manufacture high-quality products, having sufficient production capacity, and being able to provide competitive products while making profits.

Nowadays China Stainless Steel Valves are widely used in chemical, petrochemical, petroleum, papermaking, mining, electric power, liquefied gas, food, pharmaceuticals, water supply and drainage, municipal administration, mechanical equipment, electronic industry, urban construction and other fields.

With over 20 years of manufacturing experience, Jiangsu BCST Group Co., Ltd is a professional manufacturer of flowmeters, control valves, pressure transmitters, level gauges s, etc. BCST Group has Germany imported estimation system and long-time tracking estimation record. BCST’s products have CE, SIL2, RoHs, ATEX approval, and fast delivery time. There is a professional specialized support platoon and experienced technical team. Our products are widely applied in various industries, including water treatment, paper making, sugar mill, oil & gas, chemical and power industry,.etc.

The stainless steel valves used for fluid control, from simple shut-off valves to extremely complex valves used in automatic control systems, have a wide range of varieties and specifications.

The working pressure of them can be from 0.0013MPa to 1000MPa at high pressure and working temperature from a low temperature of -269°C to a high temperature of 1430°C.

However for overseas valve buyers who are thousands of miles away, choosing a reliable Chinese stainless steel valve manufacturer to cooperate & to import is not an easy thing.

China stainless steel valve manufacturer management is a key part of the supply chain management, its purpose is to establish a stable and reliable China stainless steel valve manufacturer management team.

Through the implementation of good supply chain strategy, the manufacturer of stainless steel valves China to establish good cooperation Relations, to provide end customers with high-quality and fast service guarantee.

A good China stainless steel valve manufacturer is a guarantee of high quality. An excellent China stainless steel valve manufacturer is an important asset of the organization and will be the organization that purchases its products or services. Bring good returns.

In China manufacturers of stainless steel valves management, select China stainless steel valve manufacturer is a very important job. The smooth supply of materials by China stainless steel valve manufacturers prevents production stops due to waiting for materials.

The stable quality of materials supplied by China stainless steel valve manufacturers will ensure the stable quality of finished products.

The accuracy of the delivery date of China stainless steel valve manufacturers will guarantee the accuracy of your delivery date. If you can cooperate well with quality China stainless steel valve manufacturers, the work of both the supply and demand sides will progress smoothly.

Therefore, the choice of China stainless steel valve manufacturers directly affects the production and sales of yours, and has a great impact.

Therefore, it is very important to choose an excellent China stainless steel valve manufacturer. Importing from a China stainless steel valve manufacturer is to ensure timely delivery on the premise that the China stainless steel valve manufacturer can continue to meet the pre-set quality standards.

At the same time, according to the carefully formulated quality and delivery standards, the China stainless steel valve manufacturer should conduct regular scientific evaluations.

China manufacturer of stainless steel valves evaluation and selection problem because many factors have a certain degree of complexity, according to China stainless steel valve manufacturers set out three factors evaluation system followed, choose easy-to-measure, data collection easy and convenient indicators.

For evaluation and selection, the evaluation of China stainless steel valve manufacturers should refer to the 7 major index systems: Product quality, product price, after-sales service, geographic location, technical level, supply capacity, delivery status. See details as follows:

<1> Product Quality refers to the degree to which the products of China stainless steel valve manufacturers meet the needs of enterprises. Whether the product quality provided by the China stainless steel valve manufacturer is reliable is an important evaluation index.

The China stainless steel valve manufacturer must have a good quality control system, and the products provided must be able to continue and stably meet the requirements of the product specification, expressed by the product qualification rate:

Product Qualification Rate = (number of qualified products / total number of products) *100%

<2> Product Price refers to the cost that a company pays for each unit of product. China stainless steel valve manufacturers should be able to provide competitive prices. In modern supply chain management, product price is no longer the primary factor in choosing a China stainless steel valve manufacturer, but it is still an important factor.

<3> The level of after-sales service is an indispensable indicator for choosing a China stainless steel valve manufacturer. The China stainless steel valve manufacturer should be able to solve the various service needs of users in a timely manner, or provide certain technical support.

<4> Geographical location refers to the distance between the location of the China stainless steel valve manufacturer and the nearest seaport or airport. The geographic location of China stainless steel valve manufacturers has a considerable impact on inventory.

If the unit price of the items is high and the demand is large, the Eastern coastal provinces such as Zhejiang, Jiangsu and Guangdong’s manufacturers will be beneficial to management. Especially some large-scale enterprises need to consider this aspect.

<5> The level of technical means their stainless steel valves commodities technical parameters. Whether they have a strong technical team? Whether they own new product development? How about their product development capability and the required manufacturing or supply ability? Expressed by the rate of new product development:

New product development rate = (Successfully developed new products / total number of products) *100%

<6> Supply capacity refers to the production capacity of China stainless steel valve manufacturers. Enterprises need to verify whether China stainless steel valve manufacturers have considerable production scale and development potential.

This means that the manufacturing equipment of China stainless steel valve manufacturers must be able to be in quantity. Reaching a certain scale can guarantee the number of products required by China stainless steel valve manufacturers. Here, the daily output of a single shift is used to express: (Estimated based on an eight-hour shift)

<7> Delivery status refers to the extent to which China stainless steel valve manufacturers meet corporate orders in a timely manner.

But from the perspective of time to measure the supply capacity of China stainless steel valve manufacturers, the higher the percentage of on-time delivery, the lower the safety stock that the company needs to keep. Here, the on-time delivery rate is used to express:

On-time delivery rate = (number of orders delivered on time / total number of orders) *100%

Among the above 7 indicators, the larger the product quality, technical level, supply capacity, delivery status the better, these are benefit indicators. The smaller the product price, after-sales service, and geographic location indicators the better as these are disadvantage indicators.

How to ship your stainless steel valve from china?

  1. Tj chinafreight’aim is to ensure that all the stainless steel valves are not accidentally damaged during packaging and transportation.
  2. Before packing the stainless steel valve, Tj chinafreight need to check carefully whether the stainless steel valve model, size, specification, quantity, and connection method are the same as the packing list.
  3. Packing method: Unless specified otherwise, all the stainless steel valves are packed in export standard plywood cases fitted with tarred paper on the inside and a layer of plywood between the layers of valves (if applicable). This kind of packing allows normal requirements for transport to be satisfied, guaranteeing effective resistance against humidity.
  4. The plywood case full of stainless steel valves shall be wrapped with iron tape around it to prevent the case from being damaged during transportation.
  5. The label on the outside of the stainless steel valve’s case should be written neatly and clearly with the destination country, sea port or airport, so that to avoid any mistake during the transportation.

If you’re looking for a reliable freight forwarder to help your shipping stainless steel from China, we will not let you down. Contact Tj chinafreight today to know further information regarding our freight services.

We just want to use our experience to make overseas customers avoid detours and not be deviated by some low-quality suppliers. Tj chinafreight hope all overseas valve importers can directly work with the best stainless steel valve manufacturers in China.

As a senior and responsible professional freight forwarding leader in China, we Tj chinafreight are very familiar with China’s stainless steel valve market. Here we have listed some of China’s excellent stainless steel valve manufacturers recommended by us, in no particular order.

 

Intensive Exam: The Ultimate FAQ Guide

Let’s look at yet another import freight term – intensive exam.

If you have any question on intensive exam, you will find the answer right here.

So keep reading to learn more.

What Is An Intensive Exam?

An intensive exam is one of the three types of exams performed on cargo by a customs officer.

A shipping container with cargo gets devanned and all its contents separated.

This is to allow for a thorough inspection by the customs officer who might as well take samples.

The time taken and cost incurred will depend on a variety of factors such as;

  • Amount of cargo
  • The port
  • Size of labor

Performing this process is neither cheap as you are bound to spend from $1000 to $2500 up.

Time taken can range from one week to one month or more depending on the factors mentioned above.

After the intensive exam is completed, the cargo is loaded back into the container.

What Are The Functions Of Intensive Exams In US Customs Clearance?

The intensive exam is performed to prevent contraband such as drugs, dangerous weapons, and other illegal goods from entering the country.

This way, the security of the country is also upheld.

What Criteria Do Customs Use To Flag Shipments For An Intensive Exam?

The truth of the matter is that there are no solid criteria used to determine whether or not a shipment should undergo an intensive exam.

Nonetheless, this shouldn’t worry you much as only 3%-5% of shipments get selected for examination.

Again, this procedure would only occur if the officer suspects something fishy with your shipment.

That said, there are several ways you could counter this but I shall explain that later in this guide.

If you are a new importer, you probably should be prepared for such instances happening. New importers are targeted to having intensive exams performed on their shipment to ensure the credibility of the cargo.

How Long Does An Intensive Exam Take?

Normally, the time taken for an intensive exam to be completed can range from 2-7 days. You need to factor in that there will be two examinations conducted.

The X-ray exams can take from 2-3 days and the intensive exam takes from 5-7 days to be completed.

However, other factors such as the location of the port, size of labor, and container size can slow down the procedure.

A very busy port will experience delays in the examination of your shipment.

Also, having inadequate labor to load and Devan the contents of the container can lead to delays.

Without forgetting that the size of the container or amount of cargo could also influence the time taken to conduct the intensive exam.

Do Customs Open Shipment During An Intensive Exam?

Yes. Once the shipment arrives at the Centralized Examination Station, It’s unloaded from the container and a thorough inspection follows.

Within this period, the customs officer can decide to take samples from the shipment.

This will mean opening the shipment and conducting an inspection.

Will My Shipment Be Safe During A Customs Hold For Intensive Examination?

Your cargo may be damaged after an intense inspection.

To add salt to the injury, neither of the port personnel or officials shall be held accountable for the damages done.

Keep in mind that the repacking of the items in the container won’t be as perfect as initially done.

All these are factors might result in your shipment arriving when damaged after an intensive inspection is conducted on it.

Therefore, you can tell that there is a high need to properly secure your goods before the intensive examination.

What Is The Difference Between VACIS And Intensive Customs Exam?

Unlike the intensive customs exam which might involve opening the shipment, VACIS is done without unsealing the shipment.

VACIS otherwise known as the Non-intrusive Inspection involves a scanner that is passed through the entire container.

This is to reveal its contents without unsealing the shipment.

VACIS is the first examination to be conducted on a shipment and if it doesn’t pass this step, the container will be passed to the tail gate and afterward to the intensive exam.

How Can I Avoid An Intensive Customs Exam?

Customs exams can not only result in significant expenses but also delays which can affect several other factors in your business.

To avoid falling into this trap, below are some measures to consider to minimize the possibilities of being selected for an intensive custom exam.

  • Ensure that you have all your paperwork ready and that it can be clearly understood. You might consider hiring a freight forwarder to advise you accordingly and take you through this process.
  • Work with qualified and established partners along the supply chain.

This can range from freight forwarders and shippers to customs brokers.

Working with established partners minimizes the possibility of your shipment being subjected to an intensive customs exam.

  • If you can, avoid LCL shipping as it’s more likely to be selected for a customs exam as compared to FCL shipping.
  • It’s better to import from low-risk countries as opposed to the high-risk ones.
  • Do thorough research on the items’ quota information and requirements before the actual importation process begins.
  • Ensure that your ISF is filed early enough.
  • Conduct accurate valuation of your cargo and present correct figures.

Your freight forwarder will be in a position to advise you accordingly as per your shipment.

  • Be aware of any certificates or licensing that might be needed by the partner government agencies.

Is The Location Of The Intensive Customs Exam Any Important?

The location of the intensive customs exam will matter in terms of the amount of time taken to complete the exam.

For instance, if you happen to have the intensive customs exam conducted in a busy port. There’s a higher probability that you will experience delays as compared to it being done in a smaller port.

Additionally, you are bound to evade significant storage fees and have your process accelerated by having your cargo moved to an in-bound warehouse.

What Percentage Of Shipping Containers Are Subjected Through An Intensive Exam?

Only 3% to 5% of shipping containers are selected for an intensive exam.

This happens in a random selection or if the officer suspects anything about your shipment.

Is A Customs Intensive Exam The Same As A Tailgate Exam?

No. In as much as these two are all types of customs exams, they vary.

A tail gate exam will involve the officer breaking the seal and opening the back of the container.

He will have a look at its contents and if everything looks unsuspicious, the container will be released.

As we now know, a customs intensive exam might go an extra mile to unseal the goods while doing the inspection.

Can Customs Still Hold My Package Post An Intensive Examination?

Quite simply, yes.

You need to keep in mind that there might be other agencies involved with your cargo and not just the Customs and Border Protection.

Such agencies can include the US Department of Agriculture, Food and Drug Administration, and Consumer product safety commission among others.

Therefore, once your cargo has gone through an intensive examination, the respective agency concerned with the type of cargo,

you are importing might request further examination.

What Are The Costs Associated With A Customs Intensive Examination?

A customs intensive examination can result in significant expenditures that make your overall import process expensive.

It’s worth noting that the CBP expects you to bear all these expenses even though they don’t directly charge the fees.

The CES is the one in charge of collecting the fees.

To enlighten you on the charges to expect, let’s have a look at the expenses you are bound to incur below;

  • To begin with, your cargo will be unloaded and load from the container by CES staff. You will be expected to pay for these services as well as storage fees for keeping your shipment in their warehouse.
  • Transportation charges – Your shipment will be moved to the examination station and back by a transportation company.

This adds an extra cost to transportation services.

  • Demurrage – Demurrage refers to fees charged by a shipping company for prolonged use of the container.

An intensive examination can take from 5-7 days and this will affect the period which you were to return the container.

As a result, you will end up being charged demurrage fees for the extra days you stay with the container.

Additionally, storage fees might be added based on your specific situation.

With all these factors considered, you can tell how important it is to make earlier arrangements for the payment .

These services  is to avoid further delays and extra charges.

How Do I Pay For Customs Intensive Exam Charges?

You will pay the customs intensive charges to the Centralized Examination Station.

These costs can range from $500 to $1000 and more depending on the port where the examination is conducted.

What Is The Difference Between A C.E.T Exam And Customs Intensive Exam?

A CET exam and Customs intensive exam are more or less the same.

A CET (Contraband Enforcement Team) exam specifically aims at ensuring that no drugs, weapons, or narcotics are contained in the shipment.

This is done by conducting a physical examination of the shipment.

Is An Intensive Exam A Type Of Customs Inspection?

No. An intensive exam differs from a custom inspection in the following aspect.

An intensive exam is one of the types of customs exams conducted on a shipment.

It involves the shipment being transferred to a Centralized Examination Station where it is opened and contents unloaded for examination.

The shipment is afterward released once it meets the requirements.

During an intensive exam, the officer is also allowed to unseal and take samples from the shipment for further examination.

When conducting a customs inspection, the clearance officer examines every feature of your shipment including;

The value, quantity, and properties of the shipment among others.

Other factors that might trigger inspection of your cargo include doubts that relate to;

  • Monitoring
  • Violation of trademarks
  • Customs declaration
  • Smuggling

The customs officer can decide to derive samples from the shipment and evaluate them and in some instances.

You might be required to unpack some specific cargo.

This however might result in damages to the cargo.

When doing a customs inspection, you will not only have the duty to tolerate the handling of the cargo and present the shipment for inspection.

You will also you are obligated to provide all information that the customs might need.

How Will A Customs Intensive Exam Impact My Supply Chain?

No one wants to receive news that their shipment is on hold as this might heavily impact the entire supply chain.

Nevertheless, it’s never easy to determine whether or not your shipment will be subjected to a customs intensive exam.

The selection happens randomly.

If by chance your shipment is selected, you have no option but to follow the required procedures stipulated by the port officials.

To prepare you for such situations, here is what you need to know regarding the impacts of customs intensive exams on the supply chain;

It Will Cause Delays

The truth of the matter is that once your shipment is unexpectedly selected for inspection, it’s difficult to determine;

How long it will take for the entire process to be completed.

If your shipment has been held in a busy port, be sure to wait longer for the shipment in line to be cleared before you are reached.

This might take up to a week for them to start your process or even a longer period. And that’s not enough, don’t forget that this is an intensive exam.

Therefore, loading and unloading of the cargo, inspection, and sampling will also be part of the entire exam.

Roughly, expect to experience delays that range from 7- 30 days for this entire process.

This will not only affect your business but also the shipper’s operations.

Additional Costs

Expenditure you will incur for the entire process is one of the major factors that can hugely impact the supply chain.

Think of it this way, your shipment has been held for an intensive exam and you are requested to pay all the costs associated with it.

Such costs can range from transport costs, loading and unloading costs, storage costs, and demurrage charges just to mention some.

In the end, you will realize you have spent from $1000- $2500 for this process.

Might Result In Damages

Just as the name implies, an intensive exam will be more detailed to the specific items in the ship.

Thus you should expect some damages to occur as a result.

This is because the opened box will not be carefully loaded back and therefore the items are prone to damages.

Damages incurred might result in inadequate products for the business or market.

Also, the damages might cause mistrust between the importer and the freight forwarder if applicable.

Working With The Wrong Partners e.g., Freight Forwarders And Brokers

https://youtu.be/ws8I2JbnVwc

When doing your importation, working with established freight forwarders or brokers will make your procedure less stressful.

This is because such personnel are experienced in their work and know what’s required by the customs for your specific shipment.

However, working with the wrong partner can affect the efficiency of your importation.

You might lack enough advice to help you make major decisions that would adversely affect your shipment and result in it being kept on hold.

Also, be keen when importing using LCL as you are more likely to be selected for an examination.

Your freight forwarder can provide you with suitable options for your shipment.

What Is The Significance Of CTPAT In Relation To Customs Intensive Exams?

If you are a frequent importer or planning to be one, then you must read this.

CTPAT (Customs Trade Partnership Against Terrorism) is an important requirement if so, you want to avoid the random examinations by customs.

Being a member of CTPAT will minimize the chances of your shipment getting flagged for inspection.

CTPAT members are considered reliable shippers and therefore given the benefit of doubt when passing through customs.

There are requirements that you need to meet to become a member.

Once you pass, you will never have to worry much about being selected for inspections.

What Is The Difference Between An Intensive Exam And A Customs Manifest Hold?

A custom manifest hold comes as a result of goods being held by customs owing to the submission of inadequate data in the manifest.

If by chance there are concerns regarding your shipment, the CBP will flag them for VACIS/NII exam.

An intensive exam is done after the shipment neither meets the VACIS exam nor the tail gate exam.

It is the costliest exam and entails a thorough inspection of the shipment.

Do Customs Brokers Have A Say In Customs Intensive Exams?

No.

Custom brokers have no say when it comes to customs intensive exams.

Once your shipment has been selected, it will have to undergo inspection at that port until the completion of the inspection.

If it’s a busy port, it might take longer for the processes to be completed as compared to smaller ones.

During this time, you can also minimize the storage fees by having your shipment moved into an in-bond warehouse.

This will also fasten the exam process.

How Will I Know If My Shipment Is Undergoing A Customs Exam?

In case your shipment is flagged for inspection, your customs broker will be notified electronically.

Sometimes, the broker might handle the issue without involving the importer.

However, if it involves more complex issues, the importer is notified by the broker.

After examining the cargo, CBP might either decide to request additional information then release it .

It can also  forward the shipment for further examination.

What Are Other Types Of Customs Exams Are There?

There are three main types of customs exams namely;

  • X-ray exam –An X-ray machine is passed through a container to examine the contents of the shipment.

Afterward, the shipment can either be released or forwarded for further examination.

  • Tail Gate Exam – The seal of the container is broken and the customs officer examines the cargo.

In case he is not contented, the shipment is forwarded to intensive exam for further examination.

  • Intensive Exam -The container is unloaded and thorough inspection is carried out. Some samples might also be taken to help in the inspection process.

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International Roadcheck: The Ultimate FAQ Guide

If you have any question about international Roadcheck, you will definitely find the answer right here.

So, if you want to learn more, read this guide.

What Is International Roadcheck?

This is an annual event that occurs within 72 hours across roads in North America.

During this period, certified CVSA inspectors conduct inspections along the roads to enforce driver safety, motor carriers, and vehicles.

The main targets of the international roadcheck are commercial vehicles, which include buses and trucks.

Roadcheck increases awareness to the general public and industry on the importance of roadside inspection programs.

Also, safe commercial vehicle operations.

What Is the General Aim of International Roadcheck?

The general aim of the international roadchecks is to inspect commercial vehicles, Road equipment, and drivers who are using it.

This includes inspection of buses, trucks, equipment, and drivers.

Normally, we experience change due to age or deterioration of the quality of these elements as time goes by.

Motor vehicles will wear out and hence the need of replacing the worn-out parts. Similarly, equipment mighty is faulty over a period making the unsafe for usage.

You will find also drivers who take continuous long trips without resting.

This will result in fatigue making them unsafe and less reliable to use the roads.

All these incidences bring in the aspect of the DOT to conduct an inspection.

This ensures there is no usage of unsafe vehicles, faulty equipment, or unfit drivers who pose a risk to other road users.

Even though you cannot control the roads 100%, it’s important to conduct the DOT for safety and maintenance purposes.

This brings the aspect of the DOT week.

When Is DOT Week?

DOT week is also known as the DOT Blitz week normally occurs during the late springs or early summer.DOT week runs for 3 days.

During this period the CVSA inspectors work tirelessly along the North America roads inspecting motor vehicles and drivers.

We can generally describe the DOT week as a large-scale audit along all roads in North America.

Drivers and carriers need to prepare in advance for the DOT week by ensuring they are working in compliance.

Note, there is a period where the DOT week will have themes.

This means specific elements that the inspectors will be looking out for. They include;

  • Speeding
  • Driver safety
  • Brakes/steering
  • Suspension systems.

Who Are the Parties In International Roadcheck?

We have different parties who work in conjunction with CVSA certified inspectors to accomplish the international roadcheck.

These parties include;

  • Canadian Council of Motor Transport Administrators.
  • The Federal Motor Carrier Safety Administration
  • Pipeline and Hazardous Materials Safety Administration.
  • Transport Canada.
  • Secretariat of Communications and Transport (Mexico).

All these parties help conduct enforcement educational initiatives and compliance of the commercial vehicles, driver’s safety, and motor carriers.

What Is The Criteria Of Inspection During International Roadchecks?

Within 72 hours, over 9,000 inspectors are assigned to conduct inspections.

This is done on the drivers and commercial vehicles across all roads in North America.

They will follow the set protocols of the North America Standard Level 1 Inspection.

This is usually a 37-step procedure that contains two aspects of inspections;

  1. Examination of the vehicle mechanical fitness
  2. Examination of the driver operating requirements.
  • Availability of dangerous/hazardous goods that pose a great risk.

Level 1 inspection has been the primary inspection, the inspectors might decide to dig deeper into other processes to ensure complete compliance.

For instance, depending on the availability of resources and weather conditions, the inspectors a Level 2 inspection.

This involves a Walk-Around Drive or Vehicle Inspection.

The inspectors may also upgrade to a Level 3 inspection of Driver/Credentials/ Administrative inspection.

They can also use the Level 5 Vehicle-only Inspection.

Only the inspectors can discretely choose which of these criteria to use while inspecting the commercial vehicles, carriers, and drivers.

What Is The Main Areas Of Inspection In International Roadcheck?

During the international roadcheck, vehicles will undergo inspections to determine the condition of the different elements of the vehicle.

The inspectors will check the condition of the following elements;

Lighting

Inspection of full functionality of all required lamps on the vehicle.

This includes the mounting, visibility, operations, and proper colors of the lamps.

Steering

Inspect the steering lash by determining the distance/diameter of the steering wheel.

To determine this diameter, turn the steering wheel in opposite directions until the wheel begins to pivot.

Mark the steering wheel at that fixed position.

Rotate the wheel in the opposite direction and mark using the same procedure.

Measure the distance between the two points to determine the steering lash. To be on the safe side compare your steering lash with the allowable amount given.

Brakes

To ensure the brakes are operational, check for the following conditions;

  • Ensure there is no low air pressure in the air system.
  • Check for ABS malfunctioning such as brake warning system devices.
  • Check for any loose, missing, contaminated, or malfunctioning parts of the breakaway system.

Fuel And Exhaust Systems

For exhaust system inspect for any excessive carbon deposits around the clamps areas.

For fuel tanks inspect for leakage, loose mounting, or missing caps.

Coupling Devices

Check for visible space between the upper and lower fifth wheel, improper repairs, and devices that are incapable of a secure attachment.

Frame, And Open-top Trailers

For frames inspect for any defects that will result in collapsing of the frame. This includes beds, sagging, loose fasteners among others.

For van and open-top trailers check for any cracks or loose fasteners.

Suspension

Check for any unsecured axle positioning parts or misalignment of the axle. On the front of the axle, check for misalignments and cracks.

Securement Of The Cargo

Check the tiedown anchor points for any cracking and deformation.

Check for appropriate bracing and blocking of the shipment.

Tires, Wheels, Rims, And Hubs

Check tires for bulges and cuts, tread wear, or inflation.

Check the rims and wheels for missing studs, clamps, or lugs.

Inspect the hubs for missing plugs or caps, lubricant leakage, positioning, and misalignments.

What Are The Hours Of Service (Hos) Rules With Regards To International Roadcheck?

Hours of services rules are general rules that govern every driver’s operational time and the set resting period.

The establishment and maintenance of these hours of services rules are under the FMCSA.

Also, the main of these rules is to provide improvements on safety and minimizing driver’s fatigue.

Additionally, the HOS rules regulate the drivers operational time hence limiting the driver’s income.

In most cases, drivers tend to work extra hours to increase what they earn. This poses a great risk of fatigue.

With the advancement in technology, the HOS process is now automated, thus making it easy to track the drivers and enforce laws.

While enacting the HOS rules the FMCSA has exceptions of emergency cases and adverse driving conditions.

What Is A CVSA Decal?

CVSA decal is a sticker that provides information on the year in which the inspection of the vehicles took place.

Normally, these stickers are colored and are inclusive of the CVSA trademark logo.

After a successful level1/level 2 inspection, and there is no critical violation, the CVSA inspectors will issue a CVSA decal to the vehicle.

A vehicle with a CVSA decal does not undergo the inspection process for three months.

To determine the period of the issuing of the CVSA decal check on the color of the decal.

These colors determine the years of issuing.

  • Green: indicates issued CVSA decals between January, February, and March.
  • Yellow: Indicates months of April, May, and June.
  • Orange: decals issued in July, August, and September.
  • White: decals issued in October, November, and December.

To prevent the vehicle been rendered out of service ensure that the vehicle is in the right condition and all the items are properly working.

Who Must Comply With The Hos Rules?

The drivers and carriers of all commercial motor vehicles must comply with the Hours-of-Service rules.

Drivers operating an interstate business must comply with these rules if the vehicles have the following conditions;

  • Transport hazardous materials of any quantity which requires placards.
  • Weighs 10,001 pounds or more.
  • Used to transports 16 or more passengers including the driver where compensation is not applicable.
  • Used to transports 9 or more passengers including the driver for compensation.
  • Has a gross vehicle weight rating or gross combination weight rating of 10,001 pounds or more?

What Happens If A Trucker Is Found To Be Non-Compliant During International Road checks?

If the trucker is found to be non-compliant with regulatory measures during the audit of the vehicle, the following actions will be taken;

  1. Hauling of the journey for the driver and the cargo.This allows the driver to look for an amicable solution to fixing the given issue.For instance, if the driver violates the HOS rules, they must wait until the given out of service time is over.This normally results in congestions along the roads leading to delivery delays of the cargo.
  1. Immediate examination for further violations as a result of violating one commercial motor carrier.For instance, a single violation of having an expired tail light will lead to speculations of the general condition of the vehicle.
  1. High impact on the compliance, safety, and accountability score of the driver found with a violation offense.This has a major impact on the driver because the scores determine their eligibility to stay in the market.Accountability scores distinguish drivers who practice safety measures.Thus, improving the operational period in the markets.

Will International Roadcheck Influence Capacity Crunch?

During the DOT week, there is a visible fluctuation of the capacity.

Drivers tend to go on vacation and be with families during the 3-day event to avoid the hassle on the roads.

If the CVSA inspectors find any violation of HOS rules, worn out tires, licensing violations.

This will result in the hauling of the vehicle from the road.

For instance, a sample of 18% of freights and 4% of drivers out of a sample of 67,000 inspections in the previous year was rendered an OOS.

This resulted in fewer trucks on the roads translating to a low capacity of freights.

To combat these incidences the few truckers remaining on the roads strive to achieve and adhere to the regulatory measures.

During the DOT week, shipping the freights becomes a question of whether it’s worth the risk.

This is because there might arise issues during the inspection putting the driver at risk of even losing the job.

You will find most drivers do not accept freights after short notices before the DOT week.

This results in fewer trucks on the road and a significant drop in the capacity of freights.

In conclusion, the international roadcheck greatly impacts the capacity crunch.

Will International Roadchecks Affect Freights Rates? How?

Yes, international roadchecks have a major impact on freight rates.

Due to the roadcheck, you will only find a few vehicles shipping freights on the roads.

This means you will end up incurring more costs to ship the freights.

The availability of fewer drivers to ship the freights results in to increase in the cost of shipping the freights for you.

An increase in charges is normally a momentary thing due to a shortage of capacity considering the demand is always high.

What Practices Can I Employ to Minimize Supply Chain Disruptions During International Roadcheck Week?

The international roadcheck week is coming and this does not mean you put on hold the plans of shipping the freights.

You can use/apply different practices to minimize supply chain disruption.

These practices include;

Shipping Early

To prevent delays as a result of the international roadcheck consider shipping the freights earlier before the DOT week.

The inspection process includes a 37-stage inspection which takes a longer duration, hence to account for this, ship early.

Use Of Reliable Carriers Only

You must choose a carrier who will be liable to deliver the freight even amid the international roadcheck.

You should ensure you choose carriers who follow the CVSA guidelines to ensure smooth shipping of freights.

Use Flexible Windows

Reduction in the number of drivers results in to decrease in capacity.

Therefore, there is a need for you to go the extra mile and look for more carriers to help ship your freights

For instance, the availability of a green appointment window allows the carriers you choose to squeeze the job into their schedule.

This means the carriers will comfortably ship your freights and reduce carbon emissions.

Other practices include;

  • If the shipment is not critical, hold the orders until the DOT week is over.
  • Factor in the lead time you will need to source other trucks.
  • Explore other multimodal shipping solutions for alternative shipping options.

How Can Carriers Prepare For The International Roadcheck Week?

Adherence to the regulatory rules given by the CVSA inspectors’ results in a smooth inspection process and delivery of freights in time.

To prepare for the DOT week carries should;

  • Ensure all the vehicles lights are working properly because this is one of the DOT week’s themes.
  • Ensure you are working as per the HOS rules given by the CVSA certified inspectors.
  • Ensure the availability of all the paperwork and your driving credentials are valid and up to date.
  • Review the North America Standard OOS criteria to ensure the carrier and freight comply with regulations.
  • Review the CVSA North American Standard Roadside inspection cheat sheet.

To get more information on which items undergo inspection.

What Are The Most Common Violations During International Roadchecks?

Critical violations result in out-of-service penalties for both the carrier and the freight.

There is a tremendous increase in rates of the OOS in North America from 17.9% to 20.9%.

We categorize these common violations into two;

Vehicle-out-of-service Violation North America 2020

They include;

  • Brake systems result in 28.8%
  • Tires results to 19%
  • Lights results to 13.5%
  • Cargo securement results in 12.9%
  • Brake adjustments result in 12.8%

2. Driver Out-of-service Violation North America 2020

  • HOS:34.7%
  • Other (use of cellphone, moving violations):21.8%
  • Wrong class license:22.2%
  • Falsified logs:14%
  • Suspended license yet to be determined.

What Are The Penalties Of Failed Inspections During International Roadcheck Week?

Violation results in failure inspection meaning there is no issuing of the CVSA decal.

Drivers or equipment with serious violation issues is put out of service for some time.

The OOS greatly affects the accountability score and the driver’s compliance which results in suspension.

Issuing the OOS to the driver or equipment means stalling until you find an amicable solution.

The delay results in loss of finances for both shipper and driver.

Shippers suffer the loss of repair for the OOS order to be lifted.

Is International Roadcheck Week Optional?

International roadcheck week is not optional but rather a compulsory event.

You may opt to skip it by avoiding shipping freight during the 72 hours.

This though does not mean it will always be like that as it sends signals to the CVSA certified inspectors.

What Are Some Tips To Avoid Violations During International Roadcheck?

Being able to avoid violations not only saves you on the cost but also reduces the hassle or roads which occur during the Roadcheck.

It is important to be aware of what needs to be done to avoid the violation.

For instance, this year DOT week concentrates on the lighting.

Here are some tips to help you avoid the violations;

  • Ensure to inspect all the wiring to ensure sealing and splicing out of frayed wires.
  • Ensure that you seal all corrosions with dielectric grease to safeguard the system.
  • Constant cleaning, greasing, and tightening to protect the battery and the overall battery system.
  • Ensure you bundle and securely fasten the wires with a plastic tie to prevent dislodging due to change in environmental conditions.

How Can I Stay Up-To-Date Regarding International Roadchecks?

To stay up-to-date with information regarding the international roadcheck, bookmark this page on the CVSA website.

This allows you constantly view all the recent updates on the international roadcheck.

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Inventory Linked: The Ultimate FAQ Guide

I know you’re wondering what inventory linked is all about.

A reason this guide will answer all your questions on inventory linked.

So, if you want to learn more, read this guide.

What Is Inventory Linked Meaning?

Ideally, the customs declaration is always linked with the inventory system at the port and specific consignment.

It allows the custom release status to update on the clearance of the customs declaration automatically.

Transfer of updated custom clearance from customs to the port directly in the safest and most secure methods.

How Is Inventory Linked Different From Non-Inventory Linked?

The main factor that distinguishes these two is how to conduct the customs clearance process. Below are some of the differences between the inventory linked and non-inventory linked.

For inventory linked, clearance of goods from port or airport is mostly done electronically. It is a fast and more efficient way of achieving custom clearance.

Additionally, it speeds up the movement of goods and saves on the cost of moving goods from the port or airport.

Thus increase the commercial benefits that come with it.

Availability of inventory linked port also gives you accessibility to ports records, and you can present all entries.

Inventory linking ensures no goods leave the dock without completion of the customs clearance process.

For non-inventory linked, submission of entries is normally made by the port of all the entry details.

The entry of more information is normally manual since the non-inventory linked is not electronically automated.

If you are receiving goods on non-inventory linked, it’s advisable to use/acquire a badge.

To use these badges, it depends on which port you are clearing the goods to or from.

What Is The Purpose Of Customs Inventory Linking?

Custom inventory linking has an important aspect in controlling the movement of goods.

They contain and maintain the movement of goods through temporal storage facilities.

Furthermore, it allows the transition of goods through a frontier.

Customs inventory linking has different functional areas. They include;

  • Consolidation: Facilitate a combination of other consignments into one consignment. It also enables the splitting of one consignment into multiple consignments.
  • Movement: Keeps records of all movements of consignment within custom-controlled storage facilities.
  • Query: Allows querying of data that is held inside the database of the inventory linking export.

What Is The Difference Between GVMS And Inventory Linking?

GVMS (Goods Vehicle Movement Service). It facilitates the movement of goods via the roll-on, roll-off.

To achieve this, presenting vehicles details and custom declaration references of goods is necessary.

Inventory linking involves clearance of the goods from the port of destination.

With this information in mind, it’s easier to get the difference between the GVMS and inventory linking.

Here is the main distinctive feature between the two;

Timing is an essential factor to consider while differentiating the two.

For inventory linking recording of all goods into the inventory of the terminal through the manifest of the shipping line.

After this process, you can release goods from the inventory through custom declaration.

For the GVMS, lodging of custom declaration occurs before the arrival of goods at the port of departure.

This process reduces delays with any custom declaration process, and goods can move freely upon arrival into the UK.

For the border, location it’s up to you to choose which mode to use between inventory linking and the GVMS.

What Is A Community System Provider (CSP) ‘Badge’ In Relation To Inventory Linking?

A community system provider is more of an account that allows you to operate the custom clearance.

The Desecrates e-custom software also provides access to appropriate relevant UK port systems.

In the case of inventory linking export, the CSP covers all modes of transport. Note that if you have separate accounts, you need different CSPs at the airport or port.

Where Do I Get A CSP Badge For UK Custom Clearance?

If you want to acquire a CPS Badge for UK custom clearance, you can get one from the different pennants around the UK.

You can a CSP badge from the following;

  • Descartes systems group.
  • Maritime cargo processing.
  • Community network services ltd.
  • Cargo community system-UK.

How Has The Mandatory Use Of Electronic Communications And Data Processing Systems Impacted Import/Export In The UK?

Automating processes controlling the importing and exporting of goods in the UK results in a significant increase in the economy.

Furthermore, the clearance process of the imports and exports is fast, secure, and more efficient.

The use of data processing systems and electronic communications eliminates the manual entry of information on papers.

It enhances a seamless process of tracing the payment of customs duties and taxes.

It allows the HRMC staff to trace the payments of the duties and impose penalties on individuals breaching the union trust.

What Is Roro Location?

Roll on roll off describes a process of loading and offloading the goods from the container vessel.

For RoRo to take place, there must be specifically authorized loading locations set aside. It is what we term the Roro location.

Below are some roro locations you will find in the UK;

  • Pembroke
  • Fishguard
  • Holyhead
  • Newhaven

What Is Authorized Loading Port?

An authorized loading port is normally under the port authority.

These loading ports have the certification to operate for the offloading and loading goods onto the vessels.

Rules and regulations are governing these loading ports.

For, instance rules are governing which type, weight, loading procedures of the goods.

What Is Authorized Consignor Status?

These are privileges that an authorized consignor gets to carry out transit movements.

This means the authorized consignor will conduct operations without giving the transit declaration or goods to the customs office.

Additionally, the authorized consignor can print transit accompanying documents and a list of items at the consignor’s premises.

You can also remove goods under customs control directly from an authorized location.

To apply for an authorized consignor, you can do it electronically via a custom decision system.

What Are The Requirements For Becoming An Authorized Consignor?

To become an authorized consignor gives you the privileges of starting and ending transit at your premises rather than in a customs office.

To become an authorized consignor, you require the following;

  • VAT registration number.
  • Economic operator registration and identification number
  • You should have an establishment in at least one of the contracting parties of the common transit convention.
  • Any available offenses done against tax legislation or custom in the UK or EU are to be recorded.
    The available custom system controls the movement of goods under transit in the UK or EU.
    In addition, accompanying record-keeping documents for all these movements.
  • Complete hard copy specimen of your manifest, this means choosing the mode of transit you want.
    It can either be through road or air. You can present these manifests in the form of paperwork or use an electronic transport document.

Can I Delay Paying Customs Charges At An Inventory Linked Port?

Yes, it’s possible to delay paying custom charges, but you need a duty deferment account. Acquiring a duty deferment account allows you to postpone or delay making the payments of custom charges, among other tasks.

A duty deferment account allows you to consolidate the custom charges.

For lets a month, then you can make the payments using a direct debit card.

The use of a duty deferment account poses a great threat as it delays the custom clearance process of goods at the port.

Do I Need A Local Agent To Clear Goods For Import At EU Inventory Linked Ports?

Unless you have establishments in the EU or are willing to submit customs declarations yourself, you need a local agent first.

If you don’t have establishments in the EU and want to become an importer of records or supply goods on an intracommunity basis.

Then you will need a fiscal representative.

It means a local agent who will always take care of your intrastate reporting needs and VAT.

What Is A Transit Accompanying Document?

You receive documentation papers from an authorized consignor or departure office indicating when the transit move is due to start.

TAD contains a movement reference number that only matches your transit declaration and a barcode.

These documents should always accompany goods from their point of departure to destination point will all license when need be.

How Do I Know If Using Common And Union Transit Is Right For Me?

The main purpose of these two common transits is to fasten the movement of goods to or from the UK and the EU.

Additionally, they help delay the duty services until the goods arrive at the destination.

To determine which type of transit is best.

It’s important to understand the procedures guarding every kind of transit.

Common Transit

Contains custom procedures that allow movement of goods to, from, between, and through countries under a common transit convention.

It is inclusive of all the EU members of states.

Union Transit

Contain custom procedures that allow the movement of goods that are not in free circulation within the EU.

This movement occurs even with the suspension of customs duties and any other charges.

It also facilitates free circulation of goods within the EU to move from departure to destination. And movement through the third country territory.

What Does T2 Status Mean?

T2 status is also known as the Internal union transit procedure.

T2 status mostly applies to union goods moving from the EU or UK to or through a common transit country.

For instance, they are moving union goods to or from San Marino or to and from Andorra.

In this case, only interests of tariff chapters 25 to 97 of the harmonized industrial system apply.

Note, T2 applies only while moving union goods to or from select territories.

How Do I File A Transit Declaration?

You can achieve transit declaration filing using two methods.

You can use the electronic filing method or use the manual message format.

To file for transit declaration;

  • You need to submit the transit declaration to the NCTS as an electronic message. This message will be sent to the customs offices at the departure port.
  • After successful approval of the declaration, you will receive a movement reference number. A recorded message is sent to the destination customs office from the departure port.

What Does It Mean When Goods Are In ‘Free Circulation’ In The UK?

We refer to the movement of goods freely without restrictions as the free circulation of goods. It means you can move goods into the UK or EU.

Normally, goods entering the customs territory of the UK are usually non-community goods. Meaning they have not yet undergone the custom clearance process, and therefore you cannot market such goods.

Importation of goods into the UK requires custom clearance before placing the goods in free circulation.

Upon payment of customs duties and clearance of all the formalities, you can freely market the goods in the UK.

For goods originating within the UK, they are already in free circulation, meaning they meet all the formalities put in place.

You can market these goods unless there are claims whisky export refund on them.

Union goods do not require union transit or custom status to move these goods within the UK or EU.

Goods moved directly into the UK or EU are normally refer to as union goods if there is no evidence proving otherwise.

For non-union goods should remain under custom clearance, and moving these goods is only via union transit.

How Do I Use The New Computerized Transit System To Move Goods Across The EU?

Use of New Computerized Transit Systems normally is a system of electronic declarations and processing.

The traders have a mandate to use it while submitting common transit declarations.

Additionally, the new computerized transit system processes all the declarations and controls all the transit movements.

To use the new computerized transit system to move goods across the EU, you will need the following;

  • Trade identification number.
  • Your business addresses
  • Economic operator registration and identification number
  • A guarantee.

Furthermore, if you opt to use the online system for the services, you will need the following;

  • Accessibility to a computer that can easily down and print the adobe acrobat pdf documents,
  • Fully functional and high-quality printer. It allows you to print barcodes of transit accompanying documents and a list of items.
  • Specific settings that enable you to access the internet browser.
  • Government Gateway ID is easy to acquire the first time you access the new computerized transit system.

Which Locations Use The Goods Vehicle Movement Service In The EU?

The use of good vehicle movement service is becoming a norm as time passes by.

Without it, you will experience delays in moving the goods due to a lack of good movement references.

This service renders fast movement of goods due to combining multiple good movement reference into one good movement reference.

Below are locations you will need to use the good vehicle moment service;

  • Northern Ireland
  • Larne
  • Warren Point.
  • Belfast.

What Are The Penalties For Breaching UT (Union Trust) Rules And Regulations?

You can attribute breaching of union trust to acts of dishonesty or evading to pay the mandatory custom duty and taxes.

For such events, penalties will be vindicated on the individuals who commit these illegalities.

Normally, the amount that is always equal to or more than the tax or duty evaded is imposed on you by the HMRC.

There is a reduction of this amount into any amount, including a reduction to nil.

Check out the HRMC policy on how these reductions are made.

With no restriction on who can face the penalties, the business’s managers, directors, and secretaries can face fines if found with attempts to break the union trust.

If found guilty of breaching the union trust and the penalty is imposed, you can try and reduce the penalty through;

  • We are offering full disclosure of information.
  • Offering full cooperation will ensure a smooth check process.

At Tj chinafreight, we will help you in all freight forwarding services from China.

In fact, we will make shipping from China cost effective and seamless at all times – contact us now.

How To Import a Packaging Machine From China?

As a new importer, do you want to know how to import a suitable packaging machine as easily and professionally as other experienced importers? We’ve dedicated this article to help you. It will take you through a simple process of importing packaging machines from China.

 

How easy is it to import a packaging machine from China?

It is a straightforward process. First, be sure the machine is permitted in your country. Next, find a reputable packing machine producer and place your order. Then pay for the equipment and arrange for the shipping to your location.

China is one of the largest markets in the world that exports machines to other countries.

They produce and sell machines at a more attractive price than other countries. This is because of the mature supply chain and the lower cost of labor, China produces and supplies high-quality equipment. Importing your machine from China is highly beneficial to your business.

For instance, we once had a UK client who is into the equipment business. He confirmed the cost of importing an automatic packaging production line from Italy. Stating it to be over €200,000 for the complete set.

But importing the same equipment from China is below €70,000. Despite the huge difference in cost of importation, the production quality is the same. This made him face the China market for all his machinery purchases.

We will be showing you a straightforward process below. Read further to find out.

 How to Find A Suitable Supplier?

 This is an important stage in your machinery importation process. Getting a reliable supplier at this stage will help fasten the process.

Offline and online sourcing are the two main ways you can get a reliable supplier.

  1. Offline Sourcing

This can be in the form of an in-person consultation. You can attend trade shows like Canton Fair or Yiwu commodities fair. There are also ones that are nice down to serve different market purposes. An example is the Hong Kong International Printing and Packaging Fair. They are the perfect avenue to meet packaging equipment producers.

  1. Online sourcing 

For reliable information sourcing, Google is your best bet. Yahoo, trade webinars, and other similar forms of information are also great to find suitable machine suppliers.

  1. How to Identify a Good Company?

You can look out for machine production companies in these China locations: Zhejiang, Guangdong, Shandong, and Jiangsu.

These locations have expert packaging machine manufacturers, especially Guangdong. You can pay a business visit or have an in-depth look online. This can be through customer reviews on their website or via call.

Endeavor to check the supplier’s background(most importantly, license ), and sales support. Machine manufacturers with past clients are usually reliable. Check for ones who may have exported goods to your country before.

Go for ones with good after-sales services. This can include design assistance, machine maintenance, shipping help, etc.

How to Find a Suitable Machine?

Below are ways we have enumerated to help ease the process.

  1. Confirm the Materials You Need to Pack

If your product are different, you need to decide the one that needs the packaging machine.

A machine used for packaging creams differs from the one used for coffee. Make up your mind on the one you need as there is no one size fits all.

  1. Confirm the Type of Packaging You Want

Machines for packaging goods are of different types. It ranges from vertical, horizontal, premade, sealer machines to coffee/teabags machine.

  1. Determine Your Approximate Capacity Requirements

You need to take note of the following information during your research:

1) Confirm if the equipment can work stably under the voltage of your country.

2) A sort of protection for the packing equipment.

3) Timeframe for complete production.

4) Function compliance certificates and efficiency.

5) After-sales servicing. E.g coaching you or your staff on how to operate and maintain the device.

6) Know the average warranty most manufacturers give.

7) Know the size of the machine and make sure it fit your workshop.

8) Also take note and adhere to safety precautions of the importing country.

9) Ask supplier to offer packaging samples or testing videos according to your packing needs.

While the language barrier may be a concern to new buyers. Do note most suppliers in China have sales representatives who understand English. There are also several mediums where you can communicate with each other.

You can chat over Whatsapp, Skype/zoom to get more details. There’s also email, although the response rate here can be quickly slow. And then phone calls or video call, which are faster way to communicate.

What are the Terms of International Trade?

There are many trade terms, the machinery industry often uses the following ones:

  • EXW (EX- Works): Seller is only responsible for the production and packing of the goods. Buyer needs to arrange the pickup from seller’s factory or warehouse, deal with every following steps and cover the corresponding expenses.
  • FOB (Free on Board): After goods are ready, seller is responsible to load the goods on the vessel or plane, and cover the trucking fee, customs clearance cost and local charge at seller’s place. The transportation cost and following expenses are charged by Buyer.
  • CIF (Cost Insurance & Freight): Seller covers the costs of transportation and insurance. Buyer needs to declare the goods on the customs, unload the goods from the desitination port, deliver them back to Buyer’s place and cover the correspoding expenses.
  • DDU/ DDP: They are the easiest way for Buyer.

DDU means Delivered Duty Unpaid. After Buyer pays for the duties, Seller’s agent will deliver the goods to Buyer’s place.

DDP means Delivery Duty Paid. Seller is reposnsible for all the steps and costs and deliver the goods to Buyer’s place.

Requirements for Certificates and Documents for Importing Packaging Machinery in Different Countries (e.g UK, USA, Canada, EU, Australia)

The general documentation requirements for importing packaging machines are:

  • Bill of Lading
  • Certificate of Origin
  • Commercial Invoice
  • Packing List
  • An EORI number (UK locations only) for tracking purposes

Importing to USA Requirements

  • General requirements above
  • Made in China label.

Importing to UK / EU

  • General requirements above
  • CE Certificate
  • Must support EU type socket inputs
  • A declaration of conformity and a user manual.

Importation to Australia

  • General requirements above (can be faster with the help of freight forwarders)

Calculating duties of imports from China

Check for the import duties of the location you are importing to. You can also go to the organization’s website of the country you are importing to. Type in the HS code: 8422. Then add the total value, insurance, and shipment, including other costs.

What to Pay Attention to When Receiving Goods?

  • Ensure that all parts of the boxes(in and out) are without damage before you sign the receipt.
  • Check if the packaging machine has an manual and all machine parts are received well as the list.

Summary

By thrivingly supporting all of our clients, we have explained an easy process to import packaging machines. We hope that now you feel more capable of importing goods from China.

This guide has detailed the area of focus.  Including things to look out for and compliance regulations. Also, by choosing the right machine and manufacturer, your business will thrive.

For more FAQ about the packaging machine, please click here More Info for First-Time Buyers.