Seajet
Shipping
News

 

 

 

Early

October

2009

 


 

  

What about your CFR, CIF, DDP or DDU import shipping terms?

Some very important considerations for you to think about!

 

Dear Customer and Friends of Seajet!

We realize this is getting to be a tiring subject for many of you. However, giving the possible consequences, we feel that we must communicate to you once again the importance of “10+2 / ISF” and not only the possible penalties that are associated with it, but also how this will almost certainly change the ocean import shipping business because your future shipping terms will play an important role in how easily your business will cope with 10+2.

With 10+2 being the responsibility of the U.S. importer, yet the ISF information must be filed prior to cargo loading on a vessel at the port of origin, any importer still agreeing to CFR, CIF, DDP or DDU terms would be well advised to take immediate control of all their cargo to avoid getting into trouble with Customs!

We have no doubts at all that U.S. Customs plans to go full speed into the penalty phase of the ISF program starting on January 26, 2010 and so far have shown no sign of mitigating the penalty amounts from $5,000 per infraction.  We do know this because they told us! I sat in at a Customs meeting a few weeks ago where they made it very clear to all of us that 10+2 is here to stay!

Considering that you, the importer, will be fined $5,000 by Customs if the ISF filing is late, incomplete or incorrect, do you think it is wise to continue allowing your suppliers to control your cargo by you agreeing to CFR, CIF, DDP or DDU terms, when the results could be that you will be fined $5,000.00 ? Think again!

Some of you may have considered it to be a great convenience to let the supplier worry about the cost of shipping and how to get the goods to you. Or, you simply did not think much about it and accepted the offer when your supplier quoted you their price. But, if you continue to agree to these terms, you will accept a very high level of risk of hearing from Customs!

The only way to help avoiding this from happening, is to take control, now, by changing the shipping terms to FOB PORT (Best) or EX WORKS (2nd Best) and by talking to Seajet about any such business, which is currently still arranged by your supplier!

Think about this! Your allow the shipper to arrange your shipment; they have no clue what ISF is all about (many don't, if just for a lack of understanding the English language!) or they miss understood its requirements, their foreign based forwarder may not know or care, BINGO, you get a bill for $5,000 from Customs!

Do you really like playing roulette that much?

It could be very costly for your business!

There is still a short period of time to take care of this but do not wait until the very last minute! January 2010 is around the corner and changing terms and setting-up new shipping procedures will take time.

All of us at Seajet stand-by to assist you and we invite you to call us!

Thank you for your continued support! 

Sincerely yours,

Ronald W. Hiemann, CEO  

 

 
 

   
   

Seajet Express Inc., 46 Arlington Street, Chelsea, MA 02150 - Telephone 617.884.0991 - www.seajet.com