Commissioner Dye Completes Work in NY & NJ, Turns Attention to New Orleans
August 4, 2020

Operations and cargo flow at the Port of New York and New Jersey have been minimally impacted by COVID-19 and the leadership at the bi-state organization has prioritized improving the container return process to further increase efficiencies and better serve shippers and truckers.

Those are the two central observations highlighted by Commissioner Rebecca F. Dye in Phase Two of her review under Fact Finding 29, an investigation of COVID-19 impacts on liner shipping supply chains in U.S. trades.

Interviews with users of the port, as well as the findings of Innovation Teams assembled for Phase Two, revealed that despite being situated in an early COVID-19 hotspot, Port Authority leadership responded effectively to challenges that arose. Port users report that as a result of this effort facilities in the two states are working well. Especially helpful was the early and active intervention of port leadership with the local and state governments. Also cited was the effectiveness of stakeholder cooperation under the Council for Port Performance (CPP).

Commissioner Dye began her Phase Two review by assessing which of the four operational challenges identified during the Phase One examination of the Southern California ports were applicable to the situation in New York and New Jersey. The only common challenge was the need to make progress in returning chassis in a manner that facilitates a “double move”. Senior port executives advised that achieving that goal is a high priority and the CPP is working to improve the process.

“During Phase One, our team members raised concerns about specific operations at Los Angeles and Long Beach. They identified container returns, terminal closure notification, blanked sailings, and communication of Earliest Return Date for export containers as areas for improvement. After many interviews and careful review of circumstances, it was clear that operations at the Port of New York and New Jersey were in good shape. However, our team members did encourage greater ocean carrier participation in port performance discussions as a step toward achieving better drayage outcomes,” commented Commissioner Dye.

While Fact Finding 29 will next examine the Port of New Orleans, Commissioner Dye continues to focus on progress made to adopt the operational changes Phase One Innovation teams identified as necessary to improve performance of the Southern California ports and terminals.

“We believe trade volumes are likely to substantially increase going forward and the Southern California ports remain the key gateway for the Nation’s international commerce. The ports, their terminal tenants, and the ocean carriers that use those facilities must embrace changes that improve efficiencies and operations and act now to implement them,” said Commissioner Dye.

Gemini Shippers Group will be part of the Federal Maritime Communion discussion of COVID-19 related impacts to the supply chain. You can learn about next phase of fact finding 29 below:

Commissioner Rebecca Dye’s Fact Finding investigation of COVID-19 related impacts to the supply chain (Fact Finding 29) is entering Phase Two with a concentration on issues related to operations at the Port Authority of New York & New Jersey (PANYNJ) and surrounding facilities. She is also announcing plans for an online seminar addressing key topics of interest to the industry.

Three teams consisting of truckers, terminal operators, shippers, intermediaries, and other parties critical to the movement of intermodal ocean cargoes through the PANYNJ facilities will support Phase Two of the investigation. These teams will study what operational adjustments will prepare the bi-state port complex for dealing with increasing cargo volumes in the future. Successes will be captured and analyzed for their applicability at other ports. Additionally, as in Phase One in Southern California, Phase Two Supply Chain Innovation Teams are tasked with identifying any operational challenges to efficient port and supply chain operations and then proposing an industry-driven solution for improving matters.

“I heard from many parties that Fact Finding 29 should take a regional approach in its examination of COVID-19 related impacts to the supply chain. Given its prominence as an East Coast gateway, the Port Authority of New York and New Jersey is the logical focus for Phase Two of my investigation. As with Los Angeles, we will be examining how the Port Authority of New York and New Jersey is both adjusting operations in response to the pandemic and laying the groundwork for handling higher cargo volumes in the future,” said Commissioner Dye.

As part of Fact Finding 29, Commissioner Dye will hold an online seminar where she will provide a briefing on service contracts and related vessel capacity and cargo forecasting issues. Details regarding the specifics of the event will be announced at a later date.

Concurrently, Commissioner Dye continues to engage key industry leaders in Southern California about progress they have made in implementing four approaches that can immediately address critical operational issues at the Ports of Los Angeles and Long Beach. These objectives were identified by Supply Chain Innovation Teams created for Phase One of Fact Finding 29.

“A key to improving supply chain efficiencies is overcoming the lack of ‘ownership’ for the most serious operational issues. Everyone wants to see meaningful operational changes at our Southern California port gateway, but solutions will require serious engagement between ocean carriers and marine terminal operators. Toward that goal, we have directly involved the most senior U.S.-based executives of ocean carriers belonging to the three alliances and expressed the expectation they work with their terminal partners on the four issues identified by the Phase One Innovation Teams. In particular, priority will be given to allowing truckers to return empty containers to the terminal where they picked up the loaded container. We will continue supporting the progress to improve preparations for increased future volumes and will have continued conversations with the carrier CEOs and marine terminal operators in this regard,” said Commissioner Dye.

A later phase of Fact Finding 29 will focus on the Port of New Orleans.

Members of Gemini Shippers Group joined other industry CEO’s in signing the below letter to the President this week on duty deferral during the COVID-19 crisis.

A copy of the letter and companies that signed is included here: CEO Duty Deferral Letter to President Trump 033120 – Final

March 31, 2020
The President The White House
1600 Pennsylvania Ave., NW Washington, DC 20500

Dear President Trump,
Thank you for the unprecedented steps your Administration has taken to meet the enormous liquidity
challenges that have been created by the economic fallout of the deadly COVID 19 pandemic. These
steps have included delaying many payments, such as income tax and student loans. Until these
payments are ultimately made, these delays will give Americans access to much needed cash to help
them survive during these challenging times. In that vein, we are writing to ask for additional,
urgent help this week.

We are urgently asking you to delay the collection of duties, including those that many companies
were required to pay this past Friday, for a period of 90-180 days to give companies like ours
access to cash that would normally be paid to the U.S. government.

Delaying duties helps us preserve cash flow – critically important during a prolonged period of
little to no revenue – allowing us to keep our businesses in operation so we can preserve U.S.
jobs. At the same time, delaying duties does not undermine the effect of tariffs on trade flows
because the money is still due.

Mr. President, only you can take this swift action, but in doing so, you would provide immediate
relief to both large and small businesses, including manufacturers, retailers and other service
providers, farmers and ranchers.
Sincerely,

CSMS #42181055 – GUIDANCE: Section 301 Tranche 3 – $200B Eleventh Round of Product Exclusions from China

BACKGROUND
On March 26, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 17158 announcing the decision to grant the eleventh round of certain exclusion requests from the Section 301 duty related to goods from China ($200B Action – Tranche 3).

These product exclusions relate to the imposed additional duties announced in 83 FR 47974 on Chinese goods with an annual trade value of approximately $200 billion. The product exclusions announced in this notice retroactively apply as of the September 24, 2018 effective date of the $200 billion action (Tranche 3), and will extend through August 7, 2020.

The exclusions are available for any product that meets the description as set out in the Annex to 85 FR 17158, (see attachment), regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the Harmonized Tariff Schedule of the United States (HTSUS) 10-digit headings and product descriptions in the Annex; not by the product descriptions set out in any particular request for exclusion. For ease of reference, a link to the entire Federal Register Notice is embedded in this message.

The functionality for the acceptance of the eleventh round of products of China excluded from Section 301 duties will be available in the Automated Commercial Environment (ACE) as of 7am eastern standard time, March 31, 2020.

GUIDANCE
Instructions for importers, brokers and filers on submitting entries to CBP containing products granted exclusions by the USTR from the Section 301 measures as set out in 85 FR 17158 are set out below.

• In addition to reporting the regular Chapters 03, 05, 12, 16, 28, 29, 38, 39, 40, 42, 48, 51, 55, 59, 60, 68, 69, 70, 73, 74, 76, 79, 82, 83, 84, 85, 87, 90, and 94 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.43 (Articles, the product of China, as provided for in U.S. note 20(vv) to this subchapter, each covered by an exclusion granted by the USTR for imported merchandise subject to the exclusion).
  • Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.43 is submitted.

ADDITIONAL INFORMATION
Imports which have been granted a product exclusion from the Section 301 measures, and which are not subject to the Section 301 duties, are not covered by the Foreign Trade Zone (FTZ) provisions of the Section 301 Federal Register notices, but instead are subject to the FTZ provisions in 19 CFR part 146.

Duty exclusions granted by the USTR are retroactive for imports on or after the initial effective date of September 24, 2018. To request a refund of Section 301 duties paid on previous imports of products granted duty exclusions by the USTR, importers may file a Post Summary Correction (PSC) if within the PSC filing timeframe. If the entry is beyond the PSC filing timeframe, importers may protest the liquidation if within the protest filing timeframe.

Reminder: When importers, brokers, and/or filers are submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, refer them to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are required).

For ease of reference, a summary of Section 301 duties and product exclusion notifications as well as the Annex to 85 FR 17158 are attached.

For more information related to the eleventh round of products of China excluded from Section 301 duties, please refer to 85 FR 17158, issued March 26, 2020.

Questions from the importing community concerning ACE entry rejections involving product exclusions should be referred to their CBP Client Representative. Questions related to Section 301 entry-filing requirements, please refer to CSMS message #40969690 (Information on Trade Remedy Questions and Resources) https://content.govdelivery.com/accounts/USDHSCBP/bulletins/27125da

March 25, 2020

Dear Members and Friends –

We hope that you are all staying safe and healthy during these difficult times.    While COVID-19 has caused chaos in the world of logistics, there are several other things going on that may affect your shipments.

On March 20, 2020, the U.S. Trade Representative published a list of almost 200 additional exclusions from the China 301 Tranche 3 actions.   As you may recall, Tranche 3 is subject to an additional 25 percent duty, unless the products have previously been excluded.  The full list is scheduled to be published tomorrow, but the unpublished list is attached here and here.

Some of the items on this list that may be of significance to our members include the following:

44) Backpacks and duffel bags with an outer surface of a blend of hemp and organic cotton, each measuring not less than 38 cm by 30 cm by 15 cm and not more than 36 cm by 72 cm by 34 cm (described in statistical reporting number 4202.92.2000)

45) Backpacks with outer surface of textile materials of man-made fibers, each measuring at least 35 cm but not more than 75 cm in height, at least 19 cm but not more than 34 cm in width, and at least 5cm but not more than 26 cm in depth (described in statistical reporting number 4202.92.3120)

46) Fishing tackle bags of man-made fibers, each measuring at least 5 cm but not more than 17 cm in width, at least 23 cm but not more than 27 cm in height and at least 37 cm but not more than 43 cm in depth, with a shoulder strap and carrying handles (described in statistical reporting number 4202.92.3131)

48) Tote bags with outer surface of man-made fibers, with handles, with printing on front and back, each bag measuring more than 20 cm but not more than 36 cm in width and more than 22 cm but not more than 39 cm in height, with a gusset measuring not more than 16 cm (described in statistical reporting number 4202.92.3131)

49) Bags with outer surface of textile materials of man-made fibers, each with a base of plastics and a coil zipper, weighing 0.22 kg or more but not over 4.6 kg, shaped to fit power sports vehicles (including but not limited to off-road vehicles, all-terrain vehicles, snowmobiles and motorcycles) (described in statistical reporting number 4202.92.9100)

50) Pouches and tool holsters of woven man-made fibers, each measuring at least 13 cm but not more than 19 cm in height, at least 4 cm but not more than 11 cm in width and at least 3 cm but not more than 5 cm in depth, valued not over $16 each, designed to fit over the wearer’s belt or attach to belt loops to provide hands-free carrying of mobile phones, tools, flashlights and articles of similar size (described in statistical reporting number 4202.92.9100)

52) Women’s, girls’, and infants’ pants, skirts and dresses, of polyurethane-coated leather of swine or of polyurethane-coated composition leather of swine (described in statistical reporting number 4203.10.4095)

54) Notebooks of paper or paperboard, each incorporating a plastic toy building block on the cover, measuring at least 13 cm but not more than 16 cm on the short side, at least 15 cm but not more than 22 cm on the long side and at least 1 cm but not more than 3 cm in thickness, with at least 192 but no more than 352 ruled or blank pages (described in statistical reporting number 4820.10.2060)

73) Windshields of laminated safety glass, of a size and shape for vehicles, each weighing at least 10.9 kg but not over 15.4 kg (described in statistical reporting number 7007.21.1010)

74) Rear-view mirrors for vehicles, composed of stainless steel, aluminum, glass filled nylon, polyethylene, and acrylonitrile-butadiene-styrene, each weighing at least 500 g but not more than 1 kg, with mirrors measuring at least 180 mm but not more than 400 mm in length (described in statistical reporting number 7009.10.0000)

75) Rear-view mirrors for vehicles, each consisting of a multi-curvature convex glass mirror, a steel case and a heating element (described in statistical reporting number 7009.10.0000)

76) Replacement kits for rear-view mirrors for vehicles, each consisting of a multi-curvature convex mirror, a gasket and a heating element (described in statistical reporting number 7009.10.0000)

168) Cabinets of wood with glass fronts, each measuring at least 208 cm but not more than 234 cm in height, at least 86 cm but no more than 128 cm in width and at least 40 cm but not more than 49 cm in depth (described in statistical reporting number 9403.60.8081)

169) Cabinets of wood with glass fronts, each measuring at least 91 cm but not more than 117 cm in height, at least 165 cm but no more than 216 cm in width and at least 38 cm but not more than 59 cm in depth (described in statistical reporting number 9403.60.8081)

For the full list, please see the preliminary notice from the office of the USTR.   If there are questions about customs classifications, contact traderemedy@cbp.dhs.gov.

These exclusions are retroactive to September 24, 2018 and are in effect through August 7, 2020.   To seek refunds of duties paid, speak to your customs broker or a customs attorney.

CBP has published a notice about requesting extensions of exclusions.  That notice is attached here.

There were also several notices of about 200 medical items that have been granted exclusions.  See the following link.

For U.S. importers, Customs is reviewing requests for a 7 day delay in payments of customs duties.   A notice should appear in the Federal Register shortly.   If anyone is interested, reach out to Director Randy Mitchell at randy.mitchell@cbp.dhs.gov and include the name of the importer and the IOR number in the request.

In other news, India’s Prime Minister, Narendra Modi, yesterday ordered the country on lockdown for 21 days.   Production and shipments from India will obviously be significantly delayed.  Although ports and carriers are still operational, truckers and factories are closed.   Bangladesh has just announced that all public transport (except for emergency medical transport) is shut down from March 26 to April 4.

Stay safe, stay indoors, stay healthy.

Sara Mayes,
President