/ By tjchinafreight ivy / Shipping

From May 1st, China’s coal imports will be “zero tariff”?

From May 1st, China's coal imports will be "zero tariff"?
From May 1st, China's coal imports will be "zero tariff"?

In order to strengthen the guarantee of energy supply and promote high-quality development, the Customs Tariff Commission of the State Council has decided in accordance with procedures that from May 1, 2022 to March 31, 2023, a provisional import tax rate of zero will be imposed on coal.

According to the schedule of the announcement, the provisional import tax rate of zero will be implemented this time for imported coal that originally implemented the most-favored-nation tax rate of 3%, 5% or 6%.

According to Shanghai Securities News, at present, the largest source country of my country's coal imports is Indonesia. According to the Framework Agreement on Comprehensive Economic Cooperation between the People's Republic of China and the Association of Southeast Asian Nations and the Import and Export Tariff (2021), the currently applicable tax rate is 0.

The most-favored-nation tax rate applies to coal imported from Russia, Mongolia, and Canada from other import source countries, and the tax rate varies according to different coal types. After Australia cut coal exports to China last year, Russia became my country's second-biggest coal importer after Indonesia.

A number of industry insiders said that under the scenario of high international coal prices, the tariff policy will have a limited impact on the import coal market in the short term, and may have a certain impact on the long-term supply.

According to Guosheng Securities, the current FOB price of 4600 kcal thermal coal in Russia is about US$149.8/ton. If the tariff is reduced from 6% to zero, the CIF duty payment cost will be reduced from 1430 yuan/ton to about 1350 yuan/ton. The domestic quotation of 5000 kcal thermal coal is 950-980 yuan / ton, and the price of nearly 400 yuan / ton is still upside down.

China's seaborne coking coal mainly comes from Russia, the United States, and Canada. The current price of coking coal shipped to China plus freight is about US$515/ton. If the tariff is reduced from 3% to zero tariff, the duty-paid cost will be reduced from 3965 yuan/ton to 3855 yuan/ton .

The first-line quotation of coking coal in Jingtang Port in China is 3500-3600 yuan / ton, and the price of 250-350 yuan / ton is still upside down.

Data from the National Bureau of Statistics shows that last year, China produced 4.07 billion tons of raw coal and imported 323 million tons of coal, an increase of 6.6% year-on-year. The import volume exceeded 300 million tons for the second consecutive year. The coal import dependence was 7.3%, an increase of 0.05 percentage points year-on-year.

According to Qinhuangdao Coal Network, under the circumstance that coal imports are expected to decrease, the relevant ministries and commissions of the state have organized a mid- and long-term contract to supplement the emergency guarantee for imported coal. The amount of mid- and long-term contracts signed is 158 million tons, accounting for about 49% of the country's coal imports in 2021, and the vacancy of nearly half of the total imports has been guaranteed by the policy.

In order to ensure the stable supply of domestic coal and other energy sources, some provinces in southeastern and southern China have also relaxed customs clearance restrictions on imported coal, and the customs clearance procedures of the new process have been significantly simplified.

The previous Indonesian coal import policy requires that, except for Guangdong, other South China ports need to provide terminal purchase contract endorsement. Now Guangxi has fully liberalized the customs clearance of Indonesian coal imports, and Fujian has partially liberalized. This is conducive to the rapid entry of Indonesian coal, which is intended to encourage traders to import customs clearance.

According to data from the General Administration of Customs, coal imports in March 2022 were 16.423 million tons, a year-on-year decrease of 39.9%; in the first quarter, coal imports totaled 51.812 million tons, a year-on-year decrease of 24.2%.

Zhang Jianhong, a senior engineer at China International Engineering Consulting Co., Ltd., said that the current high price of overseas coal is the main reason for inhibiting the growth of imports. The implementation of a provisional import tax rate of zero for all coal this time will help reduce import costs and expand the import of coal resources. It is the coal import from Mongolia, Russia, Canada and other countries, which can better ensure the supply, guide the downstream coal industry to reduce coal consumption, and promote the transformation, upgrading and high-quality development of the coal industry. However, until the international energy prices fall, it is expected that coal imports will be difficult to increase significantly.

/ By tjchinafreight ivy / Shipping

U.S.-West Port labor negotiations are imminent

U.S.-West Port labor negotiations are imminent
U.S.-West Port labor negotiations are imminent

Labor negotiations are imminent, and the Pacific Maritime Association (PMA), which represents shipping companies and terminal operators, has released a research report that counts the benefits of port automation, but the trade unions (ILWU, International Longshore and Warehouse Union, American International The Terminals and Warehousing Alliance) argues that productivity gains from port automation have exacerbated employment imbalances.

The study, commissioned by PMA and conducted by UC Berkeley public policy professor Michael Nacht, was released on May 2. According to Michael Nacht and Larry Henry, founder of Container Trac, automation is good for the competitiveness and growth of ports on the U.S. West Coast. At 13 container terminals in the Ports of Los Angeles and Long Beach, automation benefits trade, the environment and workers, providing more jobs, the study said.

On the employee side, ILWU workers have increased their paid hours at automated terminals in Los Angeles and Long Beach by 31.5 percent since 2015, the last year of the transition to automated operations, more than double the rate at non-automated terminals, the data shows. ILWU's registered labor force in Los Angeles and Long Beach grew 11.2 percent, compared with 8.4 percent at the other 27 West Coast ports.

In trade, automation has halved container handling time since 2019. Terminals can handle 44 percent more containers per acre than non-automated terminals because automated vehicles and cranes can stack containers higher and denser and transport them more efficiently by trucks and trains. Michael Nacht said: “Higher terminal throughput can provide more port-related jobs and increase employment across the supply chain. If the trend of automation is not kept up, cargo will be diverted to other ports, resulting in terminal and Job losses across the region.” PMA chief executive Jim McKenna said in an interview last month: “The Covid-19 pandemic and the surge in cargo have proven that automated terminals are much more efficient than traditional terminals. As these terminals With a lot of cargo being handled, they actually provide more jobs for dockworkers as well.”

However, these conclusions were not endorsed by the ILWU, and union representative Frank Ponce De Leon responded that the report did not take into account workers who lost their jobs due to the introduction of automated machinery, and that the increase in container throughput at automated terminals was also reflected in the apparent decline in throughput at other terminals. costly and will result in job losses.

The PMA has long campaigned for the introduction of automation in the terminals but has been criticised by the international terminal ILWU. Negotiations between the PMA and the ILWU will take place on May 12 to develop new labor contracts for the 22,000 West Coast dockworkers due July 1.

/ By tjchinafreight ivy / Shipping

How to Calculate Multimodal Import Dutiable Value

How to Calculate Multimodal Import Dutiable Value
How to Calculate Multimodal Import Dutiable Value

The concept of international multimodal transport

The United Nations Convention on International Multimodal Transport of Goods defines international multimodal transport as, in accordance with the international multimodal transport contract, at least two different modes of transport, the multimodal transport operator takes over the goods from the territory of a country. Carriage of goods to a designated delivery point within another country. The "Maritime Law of the People's Republic of China" stipulates that domestic multimodal transport is: there must be a way of shipping. For international multimodal transport goods, the carrier issues a full transport document, also known as a multimodal transport bill of lading.

With the continuous development of China's economy, more and more goods enter my country's inland cities by multimodal transport. Inland transport has become an important component of multimodal transport, and inland freight also exists as part of the entire freight rate. . In reality, there are confusions about whether the freight in the inland section of multimodal transport is deducted and how to deduct it.

Is the freight for inland section related to the import dutiable value?

According to Article 3 of the "Guidelines for Valuation of Imported Maritime Transportation and Related Expenses" (hereinafter referred to as the "Guidelines"), the inclusion of transportation and related expenses into the dutiable value of imported goods shall satisfy the following three conditions: first, it is related to transportation; second It should be calculated until the goods arrive at the import point within the territory of the People's Republic of China before unloading; the third is actually paid by the buyer and should be paid.

According to the nature of the freight for the inland section of the import transit, the above conditions are marked one by one: First, the freight of the inland section is indeed related to transportation, and the conditions are met; second, the conditions are not met before the loading and unloading at the domestic import point - take the sea port as an example , when the trunk line means of transport enters the country (the demarcation point of "before unloading"), that is, the branch line transportation from the sea port to the inland point, after the loading and unloading; the third is the actual payment by the buyer, which should be paid, which needs to be based on specific trade terms. to judge.

According to Article 5 of the "Guidelines", there are two conditions for the identification before the arrival at the import location within the territory of the People's Republic of China. The place where the imported goods leave the means of transport for the first time; the other is before unloading, which refers to the beginning of the loading and unloading of goods.

The key point of the identification condition 1 is: the means of transport for international voyages and the imported goods leave the means of transport for the first time, which can be judged that the inland port where the goods are transported in the inland segment does not meet the definition of "input location"; the second identification condition mentions Pre-loading and unloading refers to the loading and unloading of goods transported in the inland section before the act of loading and unloading (international navigation means of transport), which does not meet the definition.

To sum up, according to Articles 3 and 5 of the Guidelines, the freight for the inland section is not included in the dutiable value.

/ By tjchinafreight ivy / Shipping

Saverys family blocks Euronav and frontline merger

The Saverys family has invested more than 33 million shares in Euronav in order to win proxies at Euronav's annual general meeting on May 19 to block the merger of Euronav and frontline.

As previously reported by Xinde Maritime.com, the ship king Frederickson hopes that Euronav and frontline will merge to create the largest oil tanker company in history, so as to counter market risks and expand the market influence of the fleet.

The Saverys family goes all out to build up their holdings

Saverys family blocks Euronav and frontline merger
Saverys family blocks Euronav and frontline merger

But Euronav's largest shareholder, the Saverys family, seems to have objections to this. It is reported that the Saverys family prefers Euronav to develop towards a green fleet, either not to merge or to merge with other companies. However, we can see from Euronav's investment ratio that although the Saverys family is the largest shareholder, its share of shares is far from the point where the family has a full say in the board of directors.

So, recently, the Saverys family used their other company, Compagnie Maritime Belge (CMB), to increase its outstanding shares in Euronav to more than 16%.

Specifically, CMB's latest purchase of 33.25 million shares brought its share in Euronav to 16.49%, a significant increase from the 14.39% reported on April 14 and the 13.22% held earlier this month. CMB's stake also significantly exceeds Fredrickson's roughly 10 percent stake.

CMB chief executive Alexander Saverys is trying his best to persuade Euronav's shareholders to reject the merger with Frontline and to agree to a merger of Euronav and CMB.

In addition to this, the Saverys family have also publicly stated that they will seek to replace Euronav's board of directors, currently led by De Stoop, as the likes of De Stoop are on Frontline's side.

According to the latest CMB filing, the company will nominate Ludovic Saverys, Alexander's younger brother, to Euronav's board of directors. Ludovic is currently CMB's Chief Financial Officer. Two other CMB directors, Patrick De Brabandere and Bjarte Boe, are also among the board members to be elected.

In a letter to Euronav on Tuesday, the Saverys brothers said: "Euronav is at an important crossroads in its development, and as the world's largest independent crude oil tanker company has the opportunity and responsibility to think carefully about its long-term future and industry before setting its course. future. By proposing the appointment of three additional supervisory board members, we hope to enable the company to discuss various strategic options openly, comprehensively and fairly, taking into account the interests of all stakeholders.”

Approaching the right to gain "negative control"

As mentioned above, the Saverys family already owns about 16.5% of Euronav, which means that the family is getting close to negative control of the company - the stake must reach 25%.

Jørgen Lian, senior analyst at DNB Markets, said: “We can only speculate, but they (the Saverys family) are getting more and more shares, approaching 25%, which may mean they will gain negative control. But at the same time I also Think it's going to be more and more difficult for them to get more shares (to buy additional shares)."

According to the Financial Times, Alexander Saverys has told the outlet that he is working on a plan to block the announced merger of Euroav and Frontline. He said he "has more than one way".

/ By tjchinafreight ivy / Shipping

EU imports of Russian LNG surge by 50%

Shipping brokerage Banchero Costa said in its latest weekly market report to Xinde Maritime that the EU's total LNG imports from Russia in the first quarter of this year soared by 50% year-on-year.

It is for this reason that the EU became the world's largest importer of LNG in the first quarter of 2022.

Europe frantically imported LNG in the first quarter

Europe frantically imported LNG in the first quarter
Europe frantically imported LNG in the first quarter

The latest data provided by Banchero Costa for Xinde Maritime Network shows that in 2021, the European Union (27 countries) is the world's third largest importer of seaborne LNG, accounting for 15.8% of global seaborne LNG imports

In 2021, China will be the world's largest LNG importer with a share of 20.2%, followed by Japan with 19.7%.

Earlier in 2020, the EU imported 62.8 million tonnes of LNG, down 4.2% from 2019.

In 2021, EU LNG imports will actually decrease further, to only 58.5 million tons, a further 6.8% drop from 2020.

But the turning point came so suddenly. In the first quarter of this year, with the outbreak of the Russian-Ukrainian conflict, dramatic changes took place.

In the first three months of 2022 (the first quarter of this year), the EU imported 22.1 million tons of LNG by sea, a jump of 72.8% from 12.8 million tons in the first quarter of 2021. This made the EU become the world's largest LNG importer in the first quarter, with a share of 20.9%!

The United States and Russia are the main sources of increased European imports

The United States and Russia are the main sources of increased European imports
The United States and Russia are the main sources of increased European imports

The US is a major incremental contributor to European LNG imports, with the EU importing 10.4 million tonnes of LNG from the US in the first three months of 2022, an increase of 234.8% from 3.1 million tonnes in the first quarter of 2021. In the first quarter of 2022, U.S. gas accounted for 46.9% of European seaborne LNG imports.

In the first quarter of 2022, the EU imported 4.1 million tons of LNG from Russia, an increase of 49.1% from the 2.7 million tons in the first quarter of 2021. This is an all-time high. The EU has never imported more LNG from Russia than this year. In the first quarter of 2022, Russia accounted for 18.3% of EU seaborne LNG imports.

In fact, March 2022, when the Russian-Ukrainian conflict broke out, is also the highest month in history for Russian gas imports into the EU.

In March 2022, the EU imported 1.6 million tonnes of LNG from Russia, a 14.5% increase from February 2022 and a 34.3% increase from March 2021.

/ By tjchinafreight ivy / Shipping

Greece’s Almi Marine returns to the newbuilding market

Greece's Almi Marine returns to the newbuilding market
Greece's Almi Marine returns to the newbuilding market

Greek shipowner Almi Marine has returned to the newbuilding market after 15 years, placing an order for 3 bulk carriers at Dalian COSCO Shipping Kawasaki.

It is reported that Dalian COSCO Shipping Kawasaki and Almi Marine signed a construction contract for three 64,000-dwt Ultramax bulk carriers on April 21, and the new ships will be delivered in 2024. This is the first new ship order undertaken by Dalian COSCO Shipping Kawasaki this year, and the specific price has not been announced.

It is reported that Almi Marine started negotiating with Dalian COSCO Shipping Kawasaki about 4 months ago to order new ships. The initial plan was to order 2 Ultramax ships, but then the order quantity was expanded to 3 ships. This series of ships will meet the Ship Energy Efficiency Design Index (EEDI) Stage 3 requirements.

For Almi Marine, the Dalian COSCO Shipping Kawasaki order is the company's first order for a new vessel since 2007. According to Clarksons data, Almi Marine last booked a ship in 2007, when the company placed an order with STX Marine Shipbuilding for three 57,260 dwt Handysize bulk carriers, three ships from 2010 to 2011 Year delivered.

At present, Almi Marine's fleet has 7 bulk carriers with a total capacity of about 400,000 dwt, of which the youngest is the 58,635 dwt "Sole" built in 2013, which was acquired by Almi Marine in March last year.

Clarksons data shows that at present, Dalian COSCO Shipping Kawasaki has a total of 31 orders of 3.4892 million dwt, including 11 container ships and 20 bulk carriers, and the delivery time has continued until 2025.

/ By tjchinafreight ivy / Shipping

What is Electronic Export Information (EEI)?

What is Electronic Export Information (EEI)?
What is Electronic Export Information (EEI)?

EEI is data that must be submitted through the Automated Export System (AES) for shipments from the United States to a foreign country. The filing includes information about the sender and recipient of the goods, as well as information about the exported goods. The Census Bureau uses these documents to calculate U.S. trade statistics, and Customs and Border Protection (CBP) and the Bureau of Industry and Security (BIS) use the data to help ensure compliance with U.S. export regulations.

There are various nuances regarding the EEI application. Therefore, it is important to understand how the EEI reporting requirements apply to your shipments - when you need to declare and when your shipments are exempt from these requirements.

General EEI filing requirements

The EEI must be submitted with shipments from the U.S. to foreign destinations if any of the following applies:

  • Shipping a single item or item worth more than $2,500. (Note: Goods shipped from the U.S. to Canada are exempt from this requirement.)
  • The shipment contains goods that require an export license or license, regardless of value.
  • Goods are subject to International Traffic in Arms Regulations (ITAR) (link is external), regardless of value.
  • Shipped as a self-propelled vehicle.
  • When exporting "600 Series" items, (i.e. "xY6zz" format for items on the Commercial Control List (CCL) that were previously regulated by the United States Munitions List (USML).
  • Export under license exception Strategic Trade Authorization (STA) (link is external).
  • Shipments to China, Russia and Venezuela for military end use, regardless of value or content.
  • Goods contain rough diamonds, regardless of value (HTS 7102.10, 7102.21 and 7102.31).

Who submits the EEI?

In standard export transactions, the U.S. Principal Interested Party (USPPI) is responsible for submitting the EEI through AESDirect. However, USPPI may provide its freight forwarder (or other third party) a Letter of Authorization (POA) or written statement authorizing them to prepare and submit an EEI on their behalf. (In most cases, the USPPI is the same as the exporter.)

However, in a routed export transaction, the Foreign Principal Interested Party (FPPI) must provide a POA or other written authorization to submit the EEI to the USPPI or U.S. Authorized Agent. (In most cases, the FPPI is your ultimate consignee or foreign customer.)

/ By tjchinafreight ivy / Shipping

How Certificates of Insurance Affect Your Cargo Insurance Claims

How Certificates of Insurance Affect Your Cargo Insurance Claims
How Certificates of Insurance Affect Your Cargo Insurance Claims

In the freight industry, poorly organized documentation can have a significant negative impact on the shipment of goods and increase shipping risks, costs, time and fines. Now more than ever, trucking companies are moving towards a paperless approach to document management to achieve greater efficiency and initiative and reduce risk.
Typically, large shipping companies have to deal with hundreds of documents every day for customs clearance and delivery, from bills of lading, commercial invoices and certificates of origin to cargo insurance certificates, export licenses and packing lists. If that wasn't complicated enough, shipping companies also have to deal with a multitude of contacts, from trade and logistics companies to various international agencies and authorities.

How does a certificate of insurance affect your claim?

A certificate of insurance actually grants insurance rights to another party, someone other than the purchaser of the insurance. Regarding filing a claim, it is similar to handing over a signed blank check to the other party. In the case of a letter of credit, the right to make a claim is vested in the bank providing the letter of credit. However, for exports, the purchaser of the goods is entitled to a claim.

Ultimately, this means that when a claim occurs, the claim will be paid to the assignee of the insurance certificate, not the policyholder. However, the claim will be credited to the policyholder's claims history.

Customers do not need proof of insurance if all shipments are done using a letter of credit. Instead, the bank can be named as the lender's loss payee on the policy.

The importance of managing cargo insurance certificates

Cargo insurance certificates are one of the most important documents in the shipping industry as they carry the greatest risks inherent in them. A cargo insurance certificate is a document that indicates the type and amount of insurance coverage that is valid for a given item. It is used to assure the consignee that insurance is provided to cover loss or damage to the goods in transit.

Certificates of insurance typically include the following information:

  • Conditions of Insurance Coverage
  • Transport information
  • Additional/Special Coverage Conditions
  • Instructions or Actions to Take in the Case of Loss or Damage of Goods
  • Billing agent contact information
  • LIABILITY OF CARRIER, TRUSTEE OR OTHER THIRD PARTIES

Alternatives to Certificates of Insurance

If all you need is proof that you have insurance, a letter of insurance can be issued for this purpose. In fact, these letters can be issued as general proof of insurance or to confirm that a single shipment complies with the policy.

Here are some examples of situations where a letter of insurance is sufficient:

  • Carriers often require importers and exporters to certify that they have insurance before waiving insurance premiums.
  • Clients of importers/exporters want to be sure they have an insurance policy if something goes wrong with their goods. This is typically the case if the policyholder pays the premium in the sales agreement with the importer/exporter.

If you are not expressly required to provide proof of insurance, then you may only need a letter of insurance. If your insurance provider asks if you need proof of insurance, don't say "just to be safe." This request often results in wasted time and money.

/ By tjchinafreight ivy / Shipping

A Simple Guide to Dock Receipts

What is a dock receipt?
What is a dock receipt?

What is a dock receipt?

A receipt from a warehouse supervisor or port official certifying that the freight company has received the goods. Terminal receipts are used to transfer responsibility when export items are shipped by a domestic carrier to the port of shipment and by an international carrier to the destination. Terminal receipts are usually prepared by the freight forwarder or shipper.

On the terminal receipt, the authorized representative records the arrival of the cargo and provides information about the information received at the terminal. For liability purposes, the condition of the goods is also recorded. Any broken seals, damage to shipping crates, and other issues are recorded and discussed. A damages lawsuit in the case of lost, lost, stolen and damaged merchandise will require people to sift through receipts, bills of lading and other documents to see when the problem arose and who was responsible for shipping when the incident occurred.

Electronic Terminal Receipt

Many shippers offer electronic terminal receipts. Fill out and submit receipts using a computerized system, providing instant updates to anyone with access to the system. Electronic terminal receipts can also be printed out for your records and signed with an electronic authentication key to indicate the official signature of the authorized representative. Electronic systems are heavily used in the shipping industry as many people want to be able to track their cargo in real time.

Once the terminal receipt is signed, the carrier will be responsible for what happens to the cargo during storage at the terminal and before it is transferred to another location. If the load requires special handling, such as climate-controlled storage, this is noted and arrangements are made to ensure it is safe and secure. Guards are usually stationed at the dock to monitor traffic, with the aim of preventing theft and other losses. If a problem does occur while the shipment is at the terminal, the carrier may cover the cost of replacement or repair.

Many companies involved in the shipping industry offer standardized dock receipt forms that people can also generate themselves. When examining such documents, it is important to note who signed it and to read the details in the document carefully to confirm that it is accurate and complete. Questions or concerns should be addressed immediately.

/ By tjchinafreight ivy / Shipping

What is a manufacturing certificate?

What is a manufacturing certificate?

A manufacturing certificate is a notarized or certified document that certifies that the goods ordered were manufactured by the manufacturer and are exclusively at the buyer's risk and responsibility. Suppliers of finished products use this certification to show if any changes have been made to a specified recipe or process. The revision date needs to match the date on the master file to be valid.

How to use the manufacturing certificate?

The certificate of manufacture issued by the manufacturer must be on company letterhead and include the following information. The certificate should have:

  • Manufacturer's name
  • Product name
  • Batch number
  • Item Number
  • Revision code
  • Revision date
  • Certificates in support of claims of lack of product modification
  • The name of the quality control manager performing the certification
  • Signature of the above quality control manager
  • Date signed
  • Import Approval Certificate

Manufacturing Certification

Whether someone works in a manufacturing environment or is considering a career in the field, there are many different options available for certification. General manufacturing certification is not available, instead, manufacturing certification usually falls into one of two categories. The first includes an industry-related diploma or certificate. This is given after someone has undergone detailed work experience and training in a specific industry, such as an electrician or a tool and die maker.

The other category relates to specific aspects of the wider industry. Every company that produces goods falls into this category. The training will cover details of specific parts of this process. Jobs such as logistics, quality certification, safety and health training, and engineering technicians can be found here.