Here is a very useful and post by Tony Rodriguez

https://www.linkedin.com/posts/adhoclogistics_nvocc-vs-freight-forwarder-whats-the-difference-activity-6842432850256572416-HJxA

https://www.linkedin.com/posts/adhoclogistics_the-veteran-military-spouse-logistics-career-activity-6841725450335645696-3dN4

Compliance professionals know that an effective ECP (Export Compliance Program) must include C- level commitment and involvement, sufficient funding, well defined and documented responsibilities, on-going training, and internal audits. Weak ECPs lack some of these elements and are simply window dressing or paper programs.

In house compliance professionals are often given responsibility without authority. Further, they may be at mid or lower management levels or in the wrong chain of command. With or without a formal ECP, compliance professionals must have the authority to place holds on questionable exports without being overruled by sales, finance, or supply chain. Well written protocols for resolving issues and releasing holds require C-level or legal approval.

All of the above illustrates the importance of compliance independence. This may mean reporting to the CEO, COO, or legal department in order to remove pressure from other groups.

If your in house compliance professional is not truly independent hire a consultant!

Contact mitch@52.91.45.227 for immediate assistance.

The August edition of Logistics Management magazine includes an interesting article by Jeff Berman on the infrastructure legislation working its way through Congress. I have strong political opinions but usually keep them out of my posts and articles. In this case, however, politics and policy have major implications for logistics.

A few years ago I wrote and published a book review of “Wedding of the Waters” which chronicles the building of the Erie Canal. The debate about the project was similar to today’s and centered around the amount of federal funding needed. Of course the canal was completed and transformed commerce in the US as well as globally through the Port of NY/NJ. Later infrastructure projects (which were called internal improvements in the 19th Century) included the transcontinental railroad, the interstate highway system, the St. Lawrence Seaway, and many more. None of these would have been possible without federal funding.

While Public-Private Partnerships and a potential Infrastructure Bank are good politics and good policy, our massive needs also require massive federal funding.

As a former LSP (Logistics Service Provider) account executive, and currently as a Licensed Customs Broker and consultant, I have had many clients assure me that their commodities fall under EAR99 and NLR.

EAR99 means that an item is subject to Export Administration Regulations but is not listed with a specific ECCN (Export Control Classification Number). NLR is the abbreviation for No License Required. The first step in the license/NLR decision is to determine ECCN or EAR99.

The CCL (Commerce Control List) is an index listing commodities and product groups. It is a good starting place for researching ECCNs. Here is the link for your reference:

https://bis.doc.gov/index.php/documents/regulations-docs/13-commerce-control-list-index/file

For help with ECCN contact mitch@52.91.45.227

Bill Connolly, LCB

Mitch, I couldn’t agree more with what you say and honestly, CBP expects brokers to be experts in all chapters while CBP IS Teams focus on certain areas. This is not a knock on CBP by any means. That is why they are such a great resource. Importers, your best bet is a Binding Ruling and I’m amazed at the number of importers who will not file for rulings. Mostly it’s because they do not want to find out the HS they’re using is wrong, but you should want to know your exact costs to protect yourselves and your bottom line.

Mitch Kostoulakos, LCB

Hi Bill thanks for your input. I have also found that importers are sometimes reluctant to request a ruling because they don’t want to “invite “ CBP into their business. I agree that a ruling is good business.

How many classifications per hour should a Licensed Customs Broker be able to complete? This question came up in a recent LinkedIn discussion and resulted in many comments. In my opinion it is not possible to answer the question accurately and even providing a range is problematic. A thorough classification includes HTS lookup, GRI (General Rules of Interpretation) review, checking notes and CROSS (Customs Rulings Online Search System). This is the procedural aspect of classification but there is more. Most commodities require interpretation of the tariff language based on experience. Finally, the process needs to be documented for future reference and parts lists updated.

As an independent consultant and Licensed Customs Broker my most frequent client requests are for classification help. While some commodities are easy to classify, most require research and interpretation. Here is an example of an easy one with no research or interpretation needed:

9506.69.2040 Baseballs

Here is one which is more challenging and time consuming:

8532.10.00 00 Fixed capacitors designed for use in 50/60 Hz circuits and having a reactive power handling capacity of not less than 0.5 kvar (power capacitors).

So what’s your goal; fast or accurate?

For accurate classification help contact mitch@52.91.45.227.

Amy Breeman, MBA, LCB

I have applied to a couple of positions, along the lines of a classification specialist and trade consultant/manager. One of the key questions that I have been noticing is the amount of time it takes for you to make a classification. If for instance it is a product I had no idea about, I would do a thorough look up of the product, look up the HTS, GRI, notes, CROSS. It may take 10 to 15 minutes depending on how much a rabbit hole you can go down. I am very methodical when doing a classification, and some may call this too much time.

I had never found a question like this 5 to 10 years ago when applying for brokerage or other positions where classification was part of the job. What are your thoughts. Is this a fair question for employers to be asking?

Mitch Kostoulakos, LCB

10-15 minutes is reasonable for a thorough classification…certainly this is offset by faster classifications for commodities which are very familiar to you….better to be accurate than fast

Many of my clients are hard-working owners or operators of small businesses. They don’t have in-house compliance or logistics expertise so must wear several hats. Day to day activities or unexpected issues take up most working hours. As a result, functions such as logistics planning and import/export compliance are often unmanaged or left completely to LSPs (Logistics Service Providers).

Making sure that your business is in compliance with import and export regulations is good risk management as well as good business. Think of it as insurance. A few basic steps can make a big difference and can be implemented quickly.

Ad Hoc Logistics can provide step by step guidelines, train your employees, and set up sustainable procedures. Recent consultations included our copyrighted programs:

Exporting for Smart People- Because You’re No Dummy

Red Flag Screening

A to Z of Managing Logistics

Contact mitch@52.91.45.227 for a no obligation discussion.