FRACHT NEWS

We are delighted to announce that effective February 9, 2010 Metro Shipping Limited has been accredited with full Authorised Economic Operators (AEO) Status for both Customs Simplifications and Safety & Security.

AEO is the European Union equivalent of C-TPAT.

We justed added a Tips page in our Tools section.

This page will feature resources and tips for our customers. To kick it of we posted a link to page on the US Customs and Border Protection web site with information for New Importers and Exporters.

We will continue to add more tips and resources as we come across them.

January 26, 2010, marks the enforcement date for the importer security filing (ISF) rule (also called 10+2), and US Customs and Border Protection (CBP) recently released details on its enforcement approach. CBP now terms the enforcement approach as "graduated escalated", which mirrors its "informed compliance" approach used in previously rolled out programs. This approach is more lenient than previously communicated in CBP's January 14th announcement. Below are highlights of CBP's enforcement approach:

• CBP will not use data collected during the delayed enforcement period (over the past year) against the trade. After January 26, 2010, as CBP moves toward stricter enforcement, the data gathered will be used to enforce the filing requirements.
• No liquidated damages will be issued during the first quarter (until April or May 2010) instead CBP will issue warning letters. When importers fail to file, CBP will send a letter notifying them they are required to file an ISF and that failure to file will result in liquidated damages and other cargo release delays. If importers are experiencing difficulty filing, CBP will help to resolve issues during the first quarter.
• CBP will issue do not loads (DNLs) when it's appropriate for national security purposes; however, it will not take action for shipment issues solely relating to ISF.
• During the second quarter, CBP will put shipments on hold if they are at risk, no ISF has been filed, and CBP has informed the responsible party. If CBP sees repeated incidents of not filing an ISF and a response is not received from the filer, CBP may issue liquidated damages.
• In the third and fourth quarters, CBP will take a stronger enforcement approach - including liquidated damages and cargo holds - for members of the trade that fail to file ISFs or do not rectify ISF issues that CBP works with them to correct.
• Due to increased security precautions, shipments identified as high risk that do not include an ISF may experience delays including request for documentation, non-intrusive inspections, and cargo holds.
• ISF bonds will be required beginning January 26, 2010.

CBP stated that further details regarding its "graduated escalated" approach will be available shortly.

With effect on January 16th 2010 our office address will change to:

Fracht (Shanghai) Ltd.
Suite #2608
26th Floor China Insurance Building
166 Lu Jia Zui Road (E), Pudong
CN-Shanghai 200120

Telephone and Fax Nos. remain unchanged.

We are pleased to announce the opening of our latest office in Azerbaijan. They handle all general cargo with a particular focus on the Oil and Gas Industry of Azerbaijan.

Their particulars are:

FRACHT AZERBAIJAN LLC
AGA Business Centre
5th Floor
55, Khodjali Avenue
Baku

Key contacts: