update on new solas regulations - united states … on new solas regulations hosted by united states...
TRANSCRIPT
Update on New SOLAS
Regulations
Hosted by
United States Fashion Industry Association (USFIA) & OHL
May 4, 2016
2:00 P.M. Eastern/11:00 A.M. Pacific
Today’s Speakers
Edward D. Greenberg, Principal at GKG Law
Represents clients before the Federal Maritime Commission and other transportation agencies
Clients include industrial rail shippers, oil companies, and freight forwarders
USFIA’s Customs Broker Partner for 2016/2017
Do you have a question?
During the webinar, all attendees will be assigned to listen-only mode. Please use the Questions box on your dashboard to ask a question during the webinar.
Before we turn it over to our speakers…
May 10: Update on Cuba & Iran Sanctions (Click to Register)
A one-hour webinar hosted by Barnes & Thornburg LLP covering the latest developments in U.S.-Cuba and U.S.-Iran relationships, including trade, travel, permissible business activities, and remaining restrictions.
May 17: Customs Reauthorization Legislation (Click to Register)
A one-hour webinar hosted by OHL on the Trade Facilitation & Enforcement Act, including Section 321 and benefits under 9801.00.10.
SAVE THE DATE! We will host Trade Is Fashionable! USFIA Washington Trade Symposium on July 13 at the Capitol Visitor Center in Washington, D.C.
Que s t i o n s ?
Please use the “Questions” box on your dashboard on
the right side of your screen.
You can also ask a question after the webinar.
Email: [email protected]
Twitter: @usfashion
Phone: +1-202-419-0444
Edward D. Greenberg
1055 Thomas Jefferson St., NW
Suite 500
Washington, D.C. 20007
(202) 342-5277
Are guidelines established by International Maritime Organization (IMO) as amendments to the International Convention for the Safety of Life at Sea (SOLAS)
• MSC 1/ Circ. 1475 - June 9, 2014
Carriers and terminal operators will require certified gross weight certificates for all cargo prior to loading
Scheduled to go into effect July 1, 2016
Certificates must be signed by the Shipper
Electronic transmission of the certificates to be preferred
7
8
Guidelines published by World Shipping Council
• http:www.worldshipping.org/industry-issues/safety/WSC_Guidelines_for_Implementing_the_SOLAS_Container_Weight_Verification_Requirements.pdf
• http://www.worldshipping.org/industry-issues/safety/cargo-weight
Adopted due to belief that M/V Comfort sinking attributable to lack of accurate information about weight of cargo
To be enforced by carriers and marine terminal operators
9
Enforcement likely to take form of a commercial penalty by carriers or MTOs
• Not loaded, returned, reweigh costs, demurrage/detention/storage
Applies to all containerized cargo, whether tendered by exporters, forwarders, NVOCCs or other parties
Applies to international
• Not domestic offshore commerce
10
The party tendering the container to the carrier must certify the accuracy of the weight
• The shipper on MB/L has the responsibility to certify
Must be signed
• Scales used must be calibrated and certified in accordance with the requirements of each State
• Any costs incurred due to noncompliance or if carrier has cause to doubt accuracy will likely be for account of named shipper
Commercial matters for parties to decide
Watch rules tariffs
Must always use calibrated weighing equipment that meets the applicable accuracy standards and requirements of the State
Only two methods are approved
• First, weigh the entire container
Preferred by carriers and ports
• Second, separately weigh all packages and add tare weight of container (visible on box)
Need to include all packing material, pallets, dunnage
No estimates of weight are permitted
This method is considered unacceptable to types of cargo, such as scrap metal, unbagged grain and other cargo in bulk that does not easily lend itself to individual weighing
11
Can use a weight provided by others if involves “individual, original sealed packages that have the accurate mass of the packages and cargo items clearly and permanently marked on their surfaces” (refrigerators, electronic appliances, etc.)
• Must be: 1) original, sealed package2) been weighed3) weight shown on carton4) add all packing, dunnage
12
Three exceptions to the need for weight certificates for containerized cargo
• Containers on chassis or trailer driven onto a RO/RO vessel for short international voyages
• Cargo tendered to the vessel for packing into containers already on-board the ship
• “Offshore containers” to which the IMO guidelines do not apply
13
Must be signed by the party listed as the Shipper on Master Bill of Lading
• Would be the actual shipper or NVOCC
• On co-loaded cargo, would be the master loader
Can be provided as a separate document – a weight certificate – or as part of the shipping instructions to the carrier; in both instances, must still be signed by person “duly authorized by shipper”
Can be electronic signature
14
• Where exporter is using an NVOCC or some other party to tender the cargo, will need to authorize that party to certify the accuracy of the weight certificate
• Carriers can double-check if they have cause to believe certificate is in error
Again, commercial matters/tariff
No overweight containers will be accepted for loading
15
16
OCEMA Issued Best Practices – 3/21/16*
• Prefer Electronic Transmission of VGM
Some carriers may refuse to accept written certificates
• Alternatives
EDI message (VERMAS, or a 304 message)
Portal service (INTTRA, Nexus, CargoSmart)
Through ocean carrier’s web portal designed to accept VGM
Other alternatives determined by carrier
* www.ocema.org
17
What is VGM cutoff?
• For electronic transmission, by noon of cutoff date
• For other methods, as determined by carrier
Likely to be earlier than for electronic transmission
MTOs may have separate, earlier cut-off dates
NY, LA/LB
If late
• Won’t be loaded on planned vessel
• Sidelined until next available sailing
• Possible costs
Demurrage/detention
Drayage costs
Storage off pier
18
Next steps
• Carrier transmits VGM to MTO
• MTO plans vessel stow
• MTO transmits VGM and stow plan to vessel
operator
• Vessel operator reviews and approves stow
15 Countries out of 167 SOLAS signatories have taken any action
Actions vary
• Final Rules
UK
Argentina
Japan
India
19
• Drafts, discussion pieces, guidelines
20
Australia – discussion document
Belgium
Canada – draft guidelines
China – draft
Denmark – preliminary order
Finland
Germany – general information
Hong Kong
Malaysia
New Zealand – seeking comments
S. Africa – guidelines
Countries that have taken no action to implement
21
• US
• Mexico
• Brazil
• Peru
• Ecuador
• Chile
• Taiwan
• Singapore
• Vietnam
• Finland
• France
• Greece
• Italy
• Netherland
s
Question as to applicability in U.S.
• Coast Guard responsible for implementing SOLAS in U.S. states
• Coast Guard has stated
VGM Rules not mandatory; are guidelines
VGM Rules not self-executing in U.S.; requires legislation or NPRM
E.O. 12234
Existing process of requiring carriers to know VGM is satisfactory
22
Coast Guard does not believe are any issues if safety in
U.S. supporting need for application here
Coast Guard has no jurisdiction over shippers
No need for shippers to change any process
• Recent USCG safety bulletin 009/16 4/28/16
Flexibility to determine cargo weights
Terminal weighs
Shipper /carrier agreement
23
Carriers unhappy with Coast Guard
At present carriers and MTOs appear to intend to enforce VGM Rules
Congressional concerns about possible congestion and burden
• Agricultural interest (exporters) and other groups (primarily importers)
Possible challenge at Federal Maritime Commission
• Unreasonable practice? 46 U.S.C. 41102(c)
• Collective refusal to deal? 46 U.S.C. 41105(1)
• Unfiled agreement? 46 U.S.C. 41102
24
What happens July 1?• Will Ports provide VGM?
Charleston – Yes
Baltimore - Yes
Others?
• Is a compromise in U.S. possible?
25