We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » nowhere to run, nowhere to hide
newsworthy

nowhere to run, nowhere to hide

January 1, 2004
DC Velocity Staff
No Comments

Nothing's exempt from U.S. Customs' scrutiny these days. Up until last month, only oceangoing cargo arriving at U.S. ports was subject to advance security screening, while exports and materials moving by air, rail or truck got a free pass. But that's all changed. Rules took effect last month that require that advance manifest information be transmitted to U.S. Customs for cargo coming into the country by air, rail and truck as well as for exports. The rules represent the next step in the Department of Homeland Security's efforts to prevent terrorists from using the international freight system to sneak weapons into the country or to smuggle strategically important materials out.

In the short term, at least, the rules mean shippers can expect to put in longer hours as they scramble to meet new and strict timetables. The U.S. Department of Customs and Border Protection says it will process the advance cargo information through an automated targeting system linked to various law enforcement and commercial databases. The result will be additional pressure to hit the deadlines, says John Urban, president of global supply chain software maker GT Nexus. "From an internal processes point of view, you will have to tighten up the processes so you have 100 percent of the information on time."

How difficult will it be to comply with the rules? That will depend on how well shippers are already prepared to move data to Customs electronically, says Beth Peterson, a vice president of Open Harbor, a company that provides Web-based international trade services. "Companies that are already providing advance manifests should not have any problem," she says. "Those without that ability may find their cargo has to sit for several hours. That could cause huge delays."

The problem could be especially vexing for importers with a complex supply chain involving unsophisticated vendors. "If you don't do something right, the freight won't move," Peterson says, "but if you comply and have the right duty rate, Customs will expedite the shipments." She urges companies to make sure their product descriptions comply with terminology acceptable to Customs. The days of "freight—all kinds," she notes, are gone.

As with any new system, it could take some time to work out the kinks. Urban says that when the ocean rules were first implemented, they added two to four days to the supply chain to ensure compliance. "It took some time to squeeze those days out," he says.

And although companies are likely to incur added costs—both through processing expenses and through the inevitable delays—Urban believes that the new demands for accurate advance information could result in greater supply chain efficiencies for those businesses that rise to the challenge. "In the long term," he says, "what ends up happening is that as shippers are forced to invest in their supply chain capabilities, they end up gaining efficiencies as well."

Transportation Regulation/Government Safety & Security
  • Related Articles

    the road to nowhere

    Senate confirms Martinez to head FMCSA, Batory to run FRA

    UPS names Cindy Miller to head Europe; Derek Woodward to run new emerging markets unit

Recent Articles by DC Velocity Staff

Report: Supply chains prepared to meet demand growth

Private equity firm combines Peak-Ryzex and Optical Phusion in double acquisition

Nuvocargo raises $12 million in funding round

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • A look into the future of robotics

  • Exotec Skypod System Adopted by Gap Inc. to Optimize Returns Process

  • Roadrunner Freight bolsters LTL capabilities with $50 million in new backing

  • A primer on warehouse robots

  • Truck driver availability tightens to three-year low, ACT says

Now Playing on DCV-TV

B56eecf1 4687 42a4 865e c3f3223925f7

How serious are you about controlling your freight costs?

DCV-TV 4: Viewer Contributed
If you’ve been feeling like your freight budget is under attack, you’re in good company! Whether you’re looking at the ocean, parcel, LTL, truckload, or air markets, capacity is tight and prices are soaring.RELATED RESOURCES:Rapid AssessmentVisit our websiteSubscribe to our YouTube Channel

FEATURED WHITE PAPERS

  • Special Report: Supply Chain Trends in Retail & Consumer Goods

  • Fortify Your Operational Resilience

  • Cold Storage Automation: Leveraging Advanced Technologies to Meet Increasing Demand

  • The modern warehouse: Maximizing productivity and capacity

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing