Interim Fuel Surcharge Decrease

Reilly Transports Oversize Equipment for Client

Important Reminder: New Airfreight Screening Requirements

Reilly International decreases the Interim Fuel Surcharge (IFS) for all LCL shipments

Prices for bunker fuel have decreased. Consequently, the steamship lines have reduced their Fuel Surcharge.

As a result, we’re pleased to announce that as of 1 February 2009, Reilly International has reduced its IFS from $13 to $8 per cubic meter.

Please do not hesitate to contact us for further information.

Reilly Transports Oversize Equipment
for Client

Reilly International’s 25-year client, Rotek, Inc., a ThyssenKrupp company, is in full swing to further automate its two U.S. plants in Aurora, OH and Florence, KY and increase capacity. The company supports and supplies what Reilly International owner Vickie Reilly calls “feel-good” industries. That is, it is good for people and the environment. Rotek manufactures large diameter bearings for medical scanners, as well as airport scanners. It anticipates significant growth to come from the wind energy industry in the coming years and thus is expanding its domestic production capabilities. With the addition of capital equipment and expansion of facilities, it will enhance its ability to supply large diameter bearings to U.S. production companies.

As part of the project, which will span the first half of 2009, Rotek requested our assistance in arranging transportation of its capital equipment from several manufacturers in Europe. The equipment shown is a Raceway Hardener, one piece of equipment required to manufacture the bearings. While much of the world is concerned about the future, this company is certainly using this time to prepare itself for future success. We congratulate Rotek on its expansion, which will increase the number of products manufactured in the United States. 

Rotek, Inc. President Len Osborne pictured at top with Vickie Reilly .

Pictured at bottom is the equipment in the export crating, ready for unloading at the newly expanded plant in Florence, KY. 

Important Reminder: New Airfreight Screening Requirements Announced

As part of our ongoing effort to keep you informed about Transportation Security Administration (TSA) changes and regulations, we want to remind you that as of 1 February 2009, the TSA has mandated the screening of air cargo transported on passenger flights.

This change will take place over an 18-month timeframe. By August 2010, 100% of airfreight must be screened by a certified cargo screening facility prior to being loaded onto the aircraft.

As of this publishing, the airlines and screening facilities have not yet harmonized their screening fees; however, in our spirit of making it easy for you, as we quote and book your shipments, we will provide recommendations and advise you of any screening fees that may apply.

Prepare Yourself for Advance Data Requirements

Customs and Border Protection Requiring Advance Data—Action Required by All U.S. Importers Using Sea Freight Transportation Services to U.S. Ports.

Congress, acting through U.S. Customs and Border Protection (CBP), has mandated that importers using containerized sea freight (full and less than full) must transmit 10 data elements for each shipment, at least 24 hours prior to loading the shipment onboard a vessel. This is a sweeping change in advance data collection and is being required by Congress to increase security by increasing visibility. Customs currently targets suspicious consignments through the entry and manifesting data. This new requirement, called Importer Security Filing (ISF), will be exclusively the responsibility of the importer. This newly imposed regulation places a significant burden on the importing community at a time that, in most of our memories, has had more challenges than any other. 

The data elements importers are required to file with Customs are: 

• Seller

• Buyer

• Importer of record number

• Consignee number

• Manufacturer or supplier

• Ship-to-party

• Country of origin

• Commodity HTSUS (6-digit level)

• Container stuffing location

• Consolidator

The challenge is that most importers do not currently have access to these data elements 24 hours prior to loading a shipment on a vessel. Over the next 11 months, importers and their suppliers and service providers will be charged with making the necessary process changes to their supply chain and internal procedures to allow for the collection of this data. 

Reilly International has programmed our computer system to be able to file this data. However, the collection of the data as yet remains a challenge. Our intention is to assist our clients in compliance, and since each supply chain is slightly different, we will work individually with our clients to achieve it. The first day importers were able to send this data to Customs was January 26, 2009, but most have not yet done so. This change in the supply chain will take time. Accordingly, Customs is treating the first year as a learning experience, giving the trade time to get it right and for Customs to digest the data being presented. Although compliance is not mandatory until January 25, 2010, importers are required to take active steps towards compliance. 

Reilly International is facilitating our clients’ compliance with this new regulatory environment with a phased approach. We have attended the outreach session held by CBP and have begun sending ISF data. As is typical with new government regulations, the first 30 days of implementation has brought much more clarity in terms of the requirements. Although we realize our clients may be eager to comply with this new regulatory environment, we intend to balance our compliance efforts with a measure of careful, step-by-step implementation. We prefer to make this as easy as possible for you, as we are acutely aware of the challenging business environment we are all facing. 

On March 24 and April 7, Reilly International will host introductory webinars to further update you on ISF. In the meantime, please do not hesitate to contact your client representative if you have any questions or immediate concerns. 

CBP's Online Trade Violation
Reporting System

U.S. Customs and Border Protection’s Office of International Trade last year launched an online trade violation reporting system called
e-Allegations to provide the public with a means to confidentially report suspected trade violations.

Violations that may be reported online through e-Allegations include misclassification of merchandise, country of origin markings, health and safety violations, intellectual property rights violations, and textile or other trade violations.

For example, e-Allegations will provide a means to report a possible violator who is importing substandard steel, claiming that it is of a higher grade, therefore creating a potential safety issue.

Other possible violations that can be reported include a company claiming a lower than actual value on a product they are importing to pay less duty or a company who is importing textiles from one country but stating that the goods are from another country to avoid quota restrictions.

e-Allegations is not intended for assertions of security issues such as terrorists or weapons of mass destruction. Immediate threats to the health and/or safety of the public can be submitted electronically; however, CBP asks that they also be reported to CBP's
1-800-BEALERT.

Six Questions About Danielle Siemsen

Each member of our staff is a dedicated, hard working individual. But what else do you know about us? Below are six questions we asked Danielle Siemsen. Among the many roles she switches between, her most important is that of Import Team Leader.

1. What one thing do you like most about your job?
I enjoy the level of responsibilities I have recently taken on and I enjoy the people I work with.

2. What three words would others use to describe you?
Helpful, loyal and entertaining. (Yes, I have my silly side.)

3. How have you been spending most of your free time lately?
I spend what little free time I have at the gym, cleaning bathrooms, chasing after four dogs, cooking for an army (includes my son’s variety of friends) and spending money on my daughter’s new college life.

4. If you won the lottery, what would you do?
I would finally get my Johnny-on-the-spot at my cubicle. (Seriously, I need one of those.) I would buy each of my family members a brand new car, and share a good portion of it with my closest family members and friends.

5. If you could have dinner with any famous person, who would it be
and why?
Ellen DeGeneres. She is absolutely my favorite comedian and talk show hostess. She is funny, generous and kind.

6. What is your favorite line from a movie?
I would say I’m stuck between the two of these:
“Do I amuse you?” –Goodfellas and
“You can't handle the truth!" –A Few Good Men