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US Government Shutdown

11 January 2019

We are now into the 20th day of the longest US Government shutdown in history and Shoreline would like to advise their clients of the current situation regarding OPA COFR applications. 

Currently and until such time as the US Government is open for business once more, COFR applications are not being processed from any source, be it a Guarantor, the National Pollution Fund Centre (NPFC) online system or via traditional mail. 

However, Shoreline continues to processes COFR applications for its clients on a daily basis and ensures that completed applications are forwarded electronically to the NPFC. 

However, during the shutdown, any compliance queries will need to be routed through the Captain of the Port (COTP) to the NPFC, with all such enquiries being handled in the order received. The resolution of any such enquires will be confirmed directly to the COTP. 

Please be aware, at this time, no external phone queries will be responded to by the NPFC irrespective of the urgency of the query, consequently, it is most important that Ship Operators contact their local Agent to follow the procedure as noted above during this shutdown period. 

Finally it should further be noted that the NPFC website will not be updated at all during the shutdown period. 

If you have any questions relating to this advisory note please do not hesitate to contact a member of Shoreline’s underwriting team for further information.

Instruments of International Traffic

16 August 2018

Instruments of International Traffic, aka IIT or 10.41a, is a U.S. Shipment Type for goods to clear through CBP. It allows for the release at the border of shipments consisting of skids, containers and similar articles.

In order to qualify as Instruments of International Traffic, the goods must be suitable for repeated use, must either arrive containing merchandise or arrive empty to be filled with merchandise to be exported to a foreign country, and must be covered under a continuous bond filed by either the importer or the carrier on Customs Form 301.

Goods entering as Instruments of International Traffic are free of duty and tax.

To further clarify, an Instrument of International Traffic bond, or Activity 3A, is used to cover the movements and clearances of containers which move internationally. Without this provision, each container moved into the United States would have to be entered as a standard consumption entry and duty would be due to Customs on the container. Containers commonly used in intermodal freight (that is, freight that is moved using various modes of transportation, such as ship, truck, rail) fall into this category. Other “instruments of international traffic” may include shipping pallets, containers for specialized products like chemicals and liquids, or even empty containers returned to the U.S. after being used to deliver goods. The minimum bond amount usually requested by Customs is $20,000.

For Shoreline Members who will require a Type 3a Bond for $20,000, it will also be necessary to apply for a Type 3 Bond for $100,000; however for the Port of Miami in the near future the current limit of $150,000 will increase to $250,000 if a Vessel Owner, Operator or Manager are not Customs-Trade Partnership Against Terrorism (C-TPAT) Members as per U.S. Customs Information Bulletin No: 18-24. For more formal confirmation or information of the bonding requirements, U.S. Customs at the Port of Miami can be contacted by email or phone as per the referenced Bulletin.

For C-TPAT Members the Bond amount for the Port of Miami will be $100,000 only. It is evident that the US CBP are trying to encourage the C-TPAT partnership, which also allow the C-TPAT members to have the lower Type 3 bond amount of $100,000.

Pricing of the Bonds will be advised in due course.

Effects of the Shipping Industry of Sound in the Sea

18 July 2018

An article by Dr. Anthony Knap about the Effects of the Shipping Industry of Sound in the Sea

Hurricane Harvey

15 February 2018

An article by Dr. Anthony Knap about Hurricane Harvey and Climate Change

Significant Service Enhancements

25 August 2017

In line with our continuing commitment to provide a round the clock best in class service to our Members we are pleased to announce the following enhancements to the services we provide which will streamline and reduce further the interaction time required with our Members and brokers:

Tanker Voyage Declarations
Tanker voyage declarations will no longer be required commencing with the second quarter from May 21 to August 20, 2017, as we will monitor all tanker voyage activity and issue invoices according to voyage activity on a quarterly basis.

Vessels on Deposit
From now on we will monitor all vessels entered on a deposit basis and issue invoices for vessels that have entered US waters as per the agreed fleet terms for those vessels.

COFR Processing Fees
We will immediately dispense with COFR processing fees and include this service at no additional charge where we have been designated as Agent for Service of Process. We will continue to issue the draft COFR renewal notices to ensure there are no corrections to be made prior to submission to the USCG for processing.

Policyholder dividend credit for terminated entries
Dividend credits will now be tracked at fleet level and as long as a fleet consists of three or more vessels it will be entitled, in accordance with MISL’s Dividend Policy, to a full dividend credit on the premium paid for terminated entries during the policy year of termination.

Not only do we continue to stand behind the Shoreline promise to never be knowingly undersold, we reiterate our commitment to always listen and react immediately to the ever-changing needs of our Members’ so that we continue to deliver the most robust and user friendly COFR product available.

The Shoreline Promise

1 July 2015

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