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May 2020 Newsletter

A summary of our Industry Updates, Blogs and Market Information

New blog article - "Your Guide to Importing PPE"

Are you considering importing PPE or other Medical Equipment into the United States?

The impact of COVID-19 has created an unprecedented global demand for medical equipment needed to combat and treat the virus.The critical nature of PPE and other medical supplies has created a crisis of supply and demand for hospitals, state and local authorities and private individuals. In response, many US companies are considering importing medical and non-medical equipment to meet this bigstock-Ppe-Coronavirus-Theme-With-Med-360082945 croppeddemand. Governmental agencies in the US and abroad have been forced to respond to the COVID-19 pandemic with new and updated regulations regarding the import of critical supplies. We offer the following information as a reference for importers who are interested in importing PPE or other medical equipment into the United States.

Read the full article HERE.

The Chinese Ministry of Commerce (MOFCOM) has announced effective April 26, manufacturers exporting non-medical face masks must submit a declaration, jointly signed by the importer and exporter in either written or electronic format. This declaration states the products meet the qualification standards of either China or the importing country. It must also state the foreign importer is aware that the face masks are not to be used for medical purposes.

In addition, effective April 26, MOFCOM is also requiring exporters to submit a written declaration that all COVID-19 inspection reagents, medical face masks, PPE, respirators and infrared thermometers meet the qualification and safety standards of the importing country.

A sample Joint Declaration of the Exporter and Importer form mentioned above can be found HERE

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Air Cargo Impact on Global Capacity:

Governments restricted international air travel in an attempt to contain the spread of COVID-19. The result was widespread cancellation of commercial passenger flights across multiple lanes. Commercial flights represent a significant percent of available global air cargo capacity. Loss of this cargo space on commercial air carriers continues to impact available cargo space and pricing. The results of this are extreme spikes in air freight costs and backlogs in cargo. These costs continue to change daily. Air carriers are working on alternatives to increase lift capability for cargo.Airline seats-1

Many commercial air carriers have begun utilizing passenger equipment to move freight. The FAA recently issued a ruling allowing removal of passenger seating, which will expand carriers capability to use commercial aircraft for cargo. It is important to note that actual in-flight transit times have not increased. The main delays are pre-flight while cargo is staged with airline agents, in air freight terminals and at gateway warehouses. In many cases, delays of up to 6-7 days prior to flight have been reported. Due to the actual loss of space capacity it is hard to indicate how long this backlog of cargo will last but we will continue to monitor the situation and update as information becomes available. 

Recent spikes in air cargo rates are illustrated in the below infographic from Freightwaves. The full article can be found HERE

FreightWaves Air Freight Rate spike 041520

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Recent demand for toilet paper and other products offer an excellent example of the Bullwhip Effect. Supply Chain Dive explains this phenomenon Empty Toilet Paper role

"When the retail or end-user node of the supply chain sees even a slight variation in demand, it quickly ripples and grows larger as it reaches suppliers and manufacturers. In the world of supply chain, this is known as the bullwhip effect." The full article can be found HERE.  

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Industry Update Email Header for newsletterLearn more. "COVID-19 Impact on Supply Chain Operations" 

 

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CBP has issued the "Temporary Postponement of the Time to Deposit Certain Estimated Duties, Taxes, and Fees During the National Emergency Concerning the Novel Coronavirus Disease (COVID19) Outbreak" 

CBP has issued two notices CSMS #42421561 and CSMS #42423171- COVID-19 – Payment Instructions for 90-Day Postponement of Payment for the Deposit of Certain Estimated Duties, Taxes, and Fees. The following is an excerpt of CSMS #42421561.

"On April 20, 2020, the Secretary of the Treasury and U.S. Customs and Border Protection (CBP) will be postponing for 90 calendar days the deadline for payment for the deposit of certain estimated duties, taxes, and fees for importers experiencing a significant financial hardship due to the coronavirus disease (COVID-19). This temporary postponement applies to formal entries of merchandise entered, or withdrawn from warehouse, for consumption (including entries for consumption from a Foreign Trade Zone) in March or April 2020. CBP will not return deposits of estimated duties, taxes, and fees that have already been paid.

The 90 day deferment will not apply to duties or tariffs for goods applicable to Section 201, 232 and 301. It will also not apply to any imports subject to anti-dumping or countervailing duties. 

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May 2020 Newsletter

A summary of our Industry Updates, Blogs and Market Information

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