/ By tjchinafreight ivy / Shipping

Brazil removes import duties on some goods

Affected by the epidemic in the past two years, Brazil's poor population has increased, the proportion of the middle class has shrunk, and the inequality between the rich and the poor has widened.

Inflation has caused the prices of basic materials in Brazil to rise again and again, and the prices of canned food, preserved food, olive oil, vegetables, beef, coffee, etc. have all continued to increase. In addition to Brasilia being the most expensive city, Salvador, Curitib and Belo Horizonte also saw very big price increases.

Wages can't keep up with inflation, and Brazilians have begun to reduce expenses, change the family diet, replace more expensive beef with chicken, sausage, cream, etc., and reduce life and entertainment activities.
In order to fight inflation and stabilize prices, Brazil recently announced a reduction in import tariffs on some commodities.

Brazil removes import duties on some goods
Brazil removes import duties on some goods

The Executive Management Committee (Gecex) of the Foreign Trade Commission (Camex) of the Brazilian Ministry of Economy announced:

1. From now until the end of this year, import taxes on seven products will be cancelled, including: ethanol (the original import tax is 18%, the same below), coffee (9%), margarine (10.8%), cheese (28%) ), pasta (14.4%), sugar (16%), soybean oil (9%).

2. From April 1 to the end of this year, the import tax rate levied on electronic products and mechanical equipment will be reduced by 10%. This measure aims to promote the purchase of equipment for industrial production and reduce the prices of some technical items. In March last year, the Brazilian government cut tariffs on capital goods and telecommunications imports by 10 percent. Overall, the cuts will be 20%.

The changes came into effect after they were published in the Brazilian Federal Official Gazette on March 23. Combining all the tax cuts, the tax cuts generated this year are around R$ 1 billion.

However, the skyrocketing sea freight has also affected the Asia-Brazil route. The current sea freight is 5.7 times higher than before the outbreak!

/ By tjchinafreight ivy / Shipping

Maersk warns container shipping market to return to normal

Maersk warns container shipping market to return to normal
Maersk warns container shipping market to return to normal

Although Maersk's first-quarter results beat expectations, the shipping giant warned that the global shipping industry may gradually return to normal in the second half of the year.

On April 26, Maersk reported financial results for the first quarter of 2022, with revenue of $19.3 billion, underlying EBITDA of $9.2 billion, and underlying EBIT of $7.9 billion. Maersk said, "The first quarter results exceeded expectations," the quarter's results were driven by the continued abnormal conditions in the ocean shipping market, compared with the first quarter of 2021, the volume fell by 7%, and the freight rate increased by 71%. Maersk said: "The strong performance stemmed from exceptional market conditions within the container shipping market, with volumes down 7% compared to the first quarter of 2021, while freight rates increased by an average of 71%."

Given the strong performance in the first quarter, Maersk expects current market conditions to continue in the second quarter and raises its full-year 2022 outlook. Maersk once again significantly raised its full-year profit forecast as last year. Maersk expects full-year 2022 actual earnings before interest, tax, depreciation and amortization (EBITDA) to be $30 billion (previously expected to be $24 billion), an increase of 25%. Actual EBIT was $24 billion (previously expected to be $19 billion) and free cash flow would exceed $19 billion (previously expected to be around $15 billion).

"The already tight supply chain situation deteriorated further in the first quarter of this year, with the Russian-Ukrainian conflict adding to uncertainty," Maersk Chief Executive Detlef Trefzger said in a statement. "The current market situation is expected to continue in the second quarter. Going down, combined with higher contracted freight rates, we expect full-year 2022 results to be stronger than previously expected."

It should be noted that, unlike last year, the shipping giant also warned that this year's container traffic may actually decline, and the Russian-Ukrainian conflict and high inflation may have adverse effects on the global economy. The current performance forecast is still based on the assumption that the marine business will return to normal in the second half of 2022. Although it continues to be optimistic about the container shipping market this year, Maersk also expressed concern about global container demand based on the decline in freight volume in the first quarter, and lowered its outlook for global container demand growth from 2-4% to -1/+1%.

The shipping industry has made record profits in recent quarters, as surging consumer demand, blockages at major global ports due to the pandemic and the recent closure of airspace following the conflict between Russia and Ukraine have kept prices up.

Clarksons data shows that there are currently 861 container ships on order, with a total capacity of 6.57 million TEU, equivalent to 26.4% of the existing fleet. The data shows that the new ships ordered by the shipping giants in large quantities last year are also about to start delivering. This means that the state of high freight rates in the container shipping market will be difficult to sustain.

/ By tjchinafreight ivy / Shipping

Hapag-Lloyd fined $822,000

Hapag-Lloyd fined $822,000
Hapag-Lloyd fined $822,000

Approved by the Federal Maritime Commission on April 22, German carrier Hapag-Lloyd has been ordered to pay a civil penalty of $822,220 for 14 violations of U.S. shipping law -- $58,730 per violation Dollar.

The FMC's Enforcement Bureau investigated a complaint from freight company Golden State Logistics that Hapag-Lloyd imposed demurrage charges on 11 containers that could not be returned in time due to lack of storage space at the terminals (LA, LB ports) .

The Bureau of Enforcement launched an investigation into whether Hapag-Lloyd’s practice of imposing demurrage fees violated the U.S. Shipping Act and found that Hapag-Lloyd either failed to provide a location for the return of equipment or even did so when assessing demurrage fees. The location does not have an appointment to return the empty box.

This is part of an ongoing dispute over demurrage and demurrage (D&D) charges in the industry. Long controversial, D&D fees have become a hot topic in the industry as more and more containers are overloaded at terminals and ports over the past two years. In response to these complaints, the FMC has become increasingly vocal about fees, recently encouraging shippers and haulage companies to alert the Commission to disputes over fees.

Hapag-Lloyd fined for detention charges and told to stop violating Shipping Act (file photo)
Hapag-Lloyd fined for detention charges and told to stop violating Shipping Act (file photo)

Liner companies believe demurrage is necessary to ensure the efficient use of very scarce containers, while other stakeholders in the supply chain have complained that due to port congestion, container returns cannot be achieved within the stipulated time. Additional costs should not be borne by the business.

The findings of this incident will support the shipper's argument that it is unfair to charge when a timely return of the container is not possible.

The FMC said: “We have been focusing on the issue of container detention and demurrage for many years, providing multiple opportunities for parties to weigh possible solutions, and in the Container Detention and Demurrage Rules provide information on the collection of containers Specific requirements for the return of demurrage charges for empty containers, but despite such efforts, Hapag-Lloyd has not been able to change its behavior or practices.”

The FMC added that evidence showed Hapag-Lloyd had not changed its policy on container detention and demurrage rules. The FMC Commission provided extensive notice and opportunity for comment prior to developing demurrage and detention rules that clearly set out the criteria for imposing detention for the return of empty boxes, and when there is documentation indicating that there is not enough appointment time to return these It is unreasonable for Hapag-Lloyd to impose demurrage charges when shipping containers.

/ By tjchinafreight ivy / Shipping

Some countries or regions toy certification system.

In order to ensure the safety of children, many countries or regions have formulated strict laws, regulations and safety standards for toy products, and formulated corresponding certification systems according to international practices and national conditions. As an import and export party, it is necessary to understand the laws and regulations, safety standards and certification systems of the corresponding countries, and always pay attention to their changes and make corresponding adjustments accordingly, so that toy products can be exported smoothly and avoid the risk of notification and recall. This article briefly summarizes the certification systems of some countries or regions.

China

China Compulsory Certification（CCC
China Compulsory Certification（CCC

CCC certification

The full name of CCC certification is "China Compulsory Product Certification", and the English name is: China Compulsory Certification (CCC). It is a product conformity assessment system implemented by the Chinese government in accordance with laws and regulations in order to protect the personal safety and national security of consumers and strengthen product quality management.

EU

CE certification

CE certification is a pass for toy products to enter the EU market. In order to protect the life and property safety of the people of the EU member states, whether it is a product produced by an enterprise within the EU or a product produced by any country or region outside the EU, if it wants to circulate freely in the EU market, it must be affixed with compulsory certification. CE mark to indicate that the product complies with the essential requirements of the EU Directive on New Methods for Technical Harmonization and Standardization.

Germany

GS certification

GS certification is a voluntary certification based on Germany's "Product Safety Law" and tested in accordance with the European Union's unified standard EN or German industrial standard DIN. It is a German safety certification mark recognized in the European market. However, it should be noted that while the product meets the GS certification, it must also meet the requirements of the EU CE certification.

U.K.

UKCA certification

On December 31, 2020, the UK officially left the EU. The UK Toys (Safety) Regulations UKCA certification is revised and fully effective on 1 January 2021. On August 24, 2021, the British government issued the latest announcement on the requirements for the use of the UKCA logo on the official website: It was originally scheduled to be launched in the UK market (including England, Scotland and Wales from January 1, 2022, but not applicable to North America). Ireland) the period in which the CE marking can no longer be used has been extended until 1 January 2023. However, it should be noted that this notification is based on the premise that the UK and EU regulations are still consistent, that is, if the EU updates its regulations, and the CE marking on the manufacturer's products complies with the new regulations, then these CE marked products will not be used. UK market accepted. From 1 January 2023, products entering the UK market must be marked with the UKCA mark in accordance with regulations.

U.S.

"CPSC certification + UL certification + FCC certification"

CPSC (Consumer Product Safety Committee) is an important consumer protection agency in the United States, namely the Consumer Product Safety Commission. CPC (Children's Product Certificate) is the Children's Product Certificate. The United States requires manufacturers and importers to certify in writing that their children's products comply with the applicable US safety regulations, based on the qualified test report issued by a CPSC-accredited laboratory that meets the requirements of CPSIA and ASTMF963-17, toys and children sold to the United States Products must have CPC.

In addition to the regulatory tests that meet the CPC requirements, related products sold to the U.S. market for children under the age of 12 must also comply with the Tracking Label requirements. The purpose of this move is to ensure that when there is a problem with the product, consumers can trace the source to the responsible party to deal with related compliance issues. Therefore, traceability labels are required on both packaging and products (except for exemptions). If it is a durable product for infants and young children, it must also meet the relevant requirements of the Product Registration Card.

In addition to obtaining CPSC certification, some toys also need to apply for UL certification and FCC certification.

/ By tjchinafreight ivy / Shipping

Why is the commercial invoice important?

What is a commercial invoice?
What is a commercial invoice?

What is a commercial invoice?

A commercial invoice is a document created for international shipments that contains important information about the export. It includes more details than a regular sales invoice and is used to calculate duties and confirm that the goods are legal. Commercial invoices are also used to create customs declarations.
It is important to obtain a commercial invoice and not a pro forma invoice, which is not accepted by customs.

What's in the commercial invoice?

Commercial invoices should be issued in English. If other languages ​​are used, at least the detailed description of the product should be translated. Including the HS code will significantly speed up customs clearance. The invoice includes the following information:

  • Invoice number corresponding to the packing slip number
  • Invoice date
  • Order number
  • Consignee information (recipient): name, address, phone number, tax ID, etc.
  • Shipper Information (Sender)
  • Party Information Notified to Shipper
  • Shipping Information: Freight Forwarder, Date of Export
  • Clearly describe the goods (type, package quantity, unit, weight, etc.) according to the packing list and bill of lading
  • HS code
  • Incoterms on which the sale of goods is based
  • The price of each item in a specific currency (usually in U.S. dollars)
  • Total sales
  • Payment instructions
  • Insurance
  • Origin of the product (country of origin or manufacture)
  • Invoice signature with issuer stamp

When do I need to issue a commercial invoice?

A commercial invoice is required for any goods shipped outside the EU. Used as a customs declaration, provided by the exporter (shipper).
In other words, every time you ship a package from the EU to a country outside the EU, you need to fill out a commercial invoice.

Do you need to keep records of commercial invoices?

Yes, it is very important to keep records of commercial invoices and any customs documents.

If you are VAT registered, you will also need to record your exported goods in your VAT account. This is important as you will need this information at all times when completing your VAT return.

/ By tjchinafreight ivy / Shipping

A Simple Guide to Customs Declaration

Lifting a container from stack to a ship.
Lifting a container from stack to a ship.

What is a customs declaration?

A customs declaration is a document showing a list and detailed description of the goods imported or exported. Customs declarations are mainly submitted by travelers at the borders of individual countries upon arrival or departure.
Through customs declaration, customs authorities control the type of goods or items that are imported or exported. Essentially, it is used to determine import duties or to comply with export regulations during export or import.

Through customs declaration, customs authorities control the type of goods or items that are imported or exported. Generally, the control has two main purposes:

  • Import: Protect the country from goods that are harmful or dangerous to the economy and the environment.
  • Exports: Executive orders restrict the export of certain goods and impose surveillance measures.

Passengers who fail to declare their imported or exported goods correctly may be subject to fines or confiscated goods. However, in some cases, high import duties are imposed on certain goods to prevent citizens or businesses from importing them.

Who should file a customs declaration?

Generally, it is the owner of the goods or a person acting on his behalf (representative).
The person in control of the goods can also do it. These people may be individuals or companies, and in some cases associations of individuals.
As a rule, these people should be established in the EU.

Simplified customs declaration

Simplified Declaration (Article 166 UCC)

If certain details or documents are missing when submitting the declaration, the declarant is allowed to place the goods under the customs procedure on the basis of a simplified declaration. Abnormal use simplified declaration without authorization.

Centralised customs clearance (UCC Art. 179)

Customs declarations can be submitted to Customs at the MS where the Authorised Holder is located, regardless of whether the goods are submitted to Customs at another MS (Participating MS (PMS) - Submitting Customs). To do this, economic operators must obtain central clearing authorization.

Access to the filer's record (UCC s. 182)

The authorised holder may submit a customs declaration in the form of access to the declarant's record, provided that the details of the declaration are processed by customs at the time of submission. The way to enter the declarant's record can be by submitting the goods or not. For the latter additional conditions, must be satisfied.

This type of declaration is not suitable for all customs procedures (eg exclusion of transit).

Drafting customs declarations for goods belonging to different tariff subheadings (UCC Art. 177)

This simplification allows one customs declaration to be drawn up for goods under different tariff subheadings.
In this case, import or export duties must be levied according to the tariff subheading of the goods for which the highest duty is imposed.

Self-assessment (UCC Article 185)

This enables economic operators to perform certain customs formalities normally performed by customs, such as calculating customs duties, and to perform certain controls under customs supervision

/ By tjchinafreight ivy / Shipping

Do I need a license to export from the US?

Do I need a license to export from the US?
Do I need a license to export from the US?

What is an export license?

An export license is a government document authorizing or permitting certain export transactions, including technology exports. Export licenses are issued by the appropriate licensing agency after careful review of the facts regarding a particular export transaction.

Most U.S. export transactions do not require special approval from the U.S. government in the form of a license. In fact, only a small percentage of all U.S. export transactions require permission from the U.S. government. It is up to the exporter to decide whether the product requires a license and to study the end use of the product, in other words, to conduct "due diligence" on the transaction.

For most U.S. exports, the Bureau of Industry and Security or the U.S. Department of State's Defense Trade Controls Agency is the licensing agency.

Exporters should understand which federal department or agency has jurisdiction over the items they plan to export to determine whether a license is required.

Do I need a license?

This is one of the most frequently asked questions by trade experts in the U.S. Commerce Service Office network. The answer is usually no, as approximately 95% of all items exported from the United States do not require an export license. As a result, only a small percentage of U.S. export transactions require permission from the U.S. government.

These laws and regulations determine whether you can sell your product to international buyers, to which countries you can export it, and to which buyers you can sell. However, just because your product is among the 95% that don't require a license, doesn't mean you can sell it to anyone, anywhere.

It is up to the exporter to decide whether the product requires a license and to study the end use of the product, in other words, to conduct "due diligence" on the transaction.

For most U.S. exports, the Bureau of Industry and Security or the U.S. Department of State's Defense Trade Controls Agency is the licensing agency. Exporters should understand which federal department or agency has jurisdiction over the items they plan to export to determine whether a license is required.

Export Administration Regulations and Bureau of Industrial Security

Most U.S. procured items and some internationally procured items deemed dual-use (those with commercial and military or proliferation applications), as well as some purely commercial or purely munitions items, are subject to the Export Administration Regulations (EAR) and are and Security Bureau (Bank for International Settlements). The EAR controls exports for reasons of national security, foreign policy, supply shortages, nuclear non-proliferation, missile technology, chemical and biological weapons, regional stability, crime control, and counterterrorism.

Items within the U.S., certain items located outside the U.S., and certain U.S. activities are subject to the EAR. To determine if your item (commodity, software, or technology) is subject to the EAR, see the EAR's Commerce Control List (CCL) to see if it has an Export Control Classification Number (ECCN). If your item falls under the jurisdiction of the U.S. Department of Commerce and is not listed on the CCL, designate it as EAR99. Most EAR99 commercial products do not require a license to be exported. However, even EAR99 items may require a BIS export license depending on the item's destination, end user or end use.

/ By tjchinafreight ivy / Shipping

Insurance Policy vs. Insurance Certificate

Insurance Policy vs. Insurance Certificate
Insurance Policy vs. Insurance Certificate

The international marine cargo insurance market offers 3 types of cargo insurance documents.
These are the insurance policy, certificate of insurance and declaration of insurance.
In contrast to the other two insurance document types, opening statements are not often used in day-to-day practice.
Therefore, knowing the details of insurance policies and insurance certificates is very important not only for exporters and importers but also for other foreign trade participants.

What is a cargo insurance policy?

An insurance policy is a legally binding written document issued by an insurance company or underwriter to the policyholder or the insured/insured.
Just like a bill of lading (which has the terms and conditions of carriage as a shipping document), an insurance policy defines the terms and conditions of an insurance contract and serves as legal evidence for an insurance agreement.

What is a cargo insurance certificate?

In some cases, exporters or importers do not like to insure each shipment individually, but they will sign the insurance for a certain period of time, such as 1 year.
During the insurance period, 1 year as shown in the example above, all goods of the exporter will be covered by cargo insurance. Term insurance contracts are also known as open-ended insurance.
If an exporter using open insurance requires insurance documents for a specific shipment, the insurance company issues a certificate of insurance.

Document content

Both the insurance policy and the insurance certificate should be issued by the insurance company or underwriter.

Both documents should state the same information, such as:

  • Insurance terms and additional risks covered
  • Premium amount
  • Shipment details such as port of shipment, port of discharge, vessel name and voyage, cargo description.
  • Insured currency
  • Insurance amount
  • Agent of insurance company at destination port
  • Claims Procedure and Required Documents

What is the difference between an insurance policy and a certificate of insurance?

Probably the only difference between an insurance policy and a certificate of insurance occurs under a letter of credit payment. Under the rules of the letter of credit, an insurance policy may be accepted in lieu of a certificate of insurance or a statement under the cover. But the opposite is invalid.

So if you are not dealing with letters of credit, there is no difference between an insurance policy and a certificate of insurance.

If you are going to present the documents under the letter of credit then you should keep in mind that you can present the insurance policy and not the insurance certificate. But you cannot present a certificate of insurance instead of an insurance policy under a letter of credit.

/ By tjchinafreight ivy / Shipping

Cargo insurance certificate

What is a certificate of cargo insurance?
What is a certificate of cargo insurance?

What is a certificate of cargo insurance?

A document indicating the type and amount of insurance in force for a particular shipment. Used to assure the consignee that insurance is provided to cover loss or damage to goods in transit. In some cases, the shipper may issue a document certifying that the goods are insured under a given open policy, and this certificate represents and supersedes such an open policy, the provisions of which are governing. Since objecting to such an instrument does not constitute a "policy" within the scope of the credit requirements, it has become common practice to use a special marine policy. A special marine policy is indistinguishable from an open policy and exists independently as an obligation of the underwriting company. Also known as Certificate of Insurance and Special Cargo 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 Party

Mistake

Proper management of insurance documents is essential to understand the financial requirements of the shipping company and the consignee. Proper management of insurance documents can help detect errors on documents and help companies correct errors during shipping transactions.

Penalty or fine

Errors in insurance documentation may result in penalties and fines under the terms of the agreement. Effective management of insurance certificates helps avoid these consequences, making business transactions smoother.

/ By tjchinafreight ivy / Shipping

Simple guide to Warehouse receipt

Shot of a young man using a digital tablet while working in a warehouse
Shot of a young man using a digital tablet while working in a warehouse

Meaning of warehouse receipt

A warehouse receipt is a form of document used in the futures market to ensure the quality and quantity of a specific commodity stored in an approved facility. Warehouse receipts are part of the processing of business transactions involving physically delivered futures contracts.

Instead of immediately moving the actual goods under the contract, the warehouse receipt is used to settle the futures contract. In the case of precious metals, a warehouse receipt can also be called a vault receipt.

Warehouse receipts can be transferable or non-transferable.

Negotiable warehouse receipt

Negotiable warehouse receipts specify that the goods can be delivered to the document holder, which means they can be used as collateral for a loan. If the borrower defaults, the lender takes over the warehouse receipt and can sell the goods for payment of the loan.

Non-negotiable warehouse receipt

A non-negotiable warehouse receipt specifies to whom the goods should be delivered.

How to use warehouse receipt?

Stored goods cannot be delivered without a receipt.

Warehouse receipts are used to settle futures contracts. A vault receipt is an example of a warehouse receipt, but it is for metal. Vault receipts show ownership of precious metals stored in warehouses, banks and other approved facilities.

Warehouse receipts are used for stored goods that will be delivered or used at a later date. They are called physically delivered commodities. Physically delivered commodities are used in the production and manufacture of many commodities.

Tracking physical inventory is a critical process for future contracts. Inventory of goods must be registered with the designated authority and must be inspected and certified before it can be used in the future market.

When to use warehouse receipts?

Warehouse receipts are typically used when a seller signs a contract with a manufacturer to purchase some item that is not in stock, and then uses the warehouse receipt to collect the product at the warehouse.