NEWS 2007

In January 2007 U.S. Customs and Border Protection (CBP) published the Strawman Proposal for the Advance Trade Data 10+2. The proposal states the additional data elements requested will be used for security and enhanced targeting and are not intended for commercial or trade enforcement purposes.

As CBP continues to move forward with the Security Filing or “10+2” initiative, CBP has reviewed the comments received by the trade and has continued to work with the Commercial Operations Advisory Committee (COAC) members on this proposal. The Office of Regulations and Rulings has completed its initial work on developing the draft Notice of Proposed Rule Making (NPRM). Once CBP finalizes, the NPRM will be published in the Federal Register.

The Security Filing proposal requires submission of 10+2 specific data elements to be transmitted to CBP 24 hours prior to cargo being loaded onto a vessel bound for the U.S. Currently this proposal only deals with ocean freight. CBP has stated, in the future, similar data elements will be required of other modes of transportation.

The proposal requires the importer to provide 10 data elements. These 10 data elements are: manufacturer name and address; seller name and address; container stuffing location; consolidator name and address; buyer name and address; ship to name and address; importer of record number; consignee number; country of origin of the goods; and the 6 digit commodity harmonized tariff schedule number.

The other two required data elements, to be provided by the carrier, are: vessel stow plan and container status messages.

As the proposed 10+2 Security Filing NPRM is nearing publication, importers may wish to begin determining who in their supply chains has access to the proposed 10 data elements, and may also wish to determine who in the supply chain will have responsibility for making the 10+2 data available to the agent elected to transmit the Security Filing. Importers may wish to combine these Security Filing requirements with their import compliance requirements.

CBP has posted an FAQ to address trade issues. A final rule is expected to be published in the Feder Register by year-end 2007. Implementation will be in a phased aproach, where the first year will be informed compliance, and outreach, before full implementation.

We have informed you previously about our strategic alliance with Skytruck Air/Sea Transport in a continuous effort to further strengthen and improve our airfreight related service products.

Starting August 1, 2007 Fracht FWO Inc. and Skytruck Air/Sea Transport will merge their airfreight operation at John F. Kennedy International Airport (JFK). Please note the new contact details and warehouse address:

As of August 1, 2007 please ship/consign to:

Skytruck Air/Sea Transport c/o
JJS Transportation
Airport Industrial Park, Bldg. B5E
Hook Creek Blvd.
Valley Stream, NY 11581

As of August 1, 2007 please contact:

Skytruck Air/Sea Transport Inc.
145-119 Guy R. Brewer Blvd.
Jamaica, NY 11434

Phone: (718) 528-4200
Fax:    (718) 712-9124

We are looking forward to your continuous support and to serve your airfreight transportation needs!

The office workers of the International Longshore and Warehouse Union in Southern California may go on strike.

The union, who's contract expired July 1, gave the employers a deadline of last Sunday, mightnight, to reach an agreement. If no such agreement can be reached in time it's expected that the seperate IWLU dockworkers will honor the picket lines, thus slowing or even crippling the nation's largest port complex.

We have the pleasure to announce that our new subsidiary in France (Paris CDG Airport) is officially open and operational as of Friday, May 11.

The team consists of:

Their address is:

FRACHT France
Bat.1 - SOGARIS Fret 5 / Cel.6
14 rue de la Belle Borne
BP 13138
95701 Roissy CDG Cedex France

Phone: +33 1 74 29 49 72
Fax: +33 1 74 29 49 93
www.fracht.fr

The European legislation on Customs is stipulating that shippers are required to submit a declaration for export before loading any cargo on board.

In the past it was common practice for Customs in Antwerp to check the documents after the departure of the vessel.

This implied that so-called "Shipments Without Document" was technically possible, but not allowed since financial fines and penalties were imposed on the shipping line's agent or the shipper afterwards. Therefore it seemed only like Belgian Customs did allow export shipments without a customs document being available.

For various legal reasons, Antwerp Customs Authorities are now gearing up to check the documents in time, i.e. before arrival of the vessel. In Hamburg, Bremerhaven, Rotterdam and Le Havre it is simply not possible to load a box on board without a Customs document being available.

If no export Customs document is submitted to the terminal before the vessel's arrival, the Customs officer on duty will prevent the cargo from being loaded on board of the ocean vessel by setting a block directly in the IT systems of the Terminal Operator.

Right now, Belgium Customs Authorities are selecting a number of vessels for control (statistical sample) per week, but this selection is being extended gradually, and the target is zero tolerance as of June 1st 2007.

Please ensure that you or your forwarder adhere to this requirement by submitting the Customs declaration before arrival of the vessel, or even better together with the cargo. Deliberate infringement will result in financial fines of EUR 1,250 per container, which will be for account of the shipper or the vendor.

From the real-life experience gathered over the past few weeks, it is obvious that further fine-tuning of the "best practice" is still desirable and necessary. The name of the game is well-known, but not all rules of the game are clear yet, resulting in certain grey areas. Therefore there are discussions on a high level between the various Antwerp state offices, the local Customs Authorities and other parties involved in order to come to a workable and efficient solution.

We are pleased to welcome Mr. GABRIELE FERMI as our new General Manager of Fracht Italy. We want to strengthen and expand our business from and to Italy. We are sure that with Mr. Gabriele Fermi is the right person for this endeavor. Mr. Vincenzo Mappa will be appointed as the new Sales & Marketing Manager.

Contact details of Mr. Fermi:

Fracht Italia Srl
Via G. Verga 22
I-20020 Lainate

E-Mail: Gabriele.fermi@frachtitalia.it
Tel.: +39 (02) 931 953 201

Mr. Gabriele Fermi is very experienced in the freight forwarding business and we are convinced that he will fulfill the requirements of this position.

We have the great pleasure to inform you of the opening of our own branch in Paris under following address:

Fracht France
14 rue de la Belle Borne
Zone de fret 5
Batiment Sogaris N° 1
Cellule 6, 1er etage
BP 13138
95702 Roissy CDG Cedex

Tel: +33 (1) 74 29 49 64
Fax: +33 (1) 74 29 49 93 (will be activated on May 4^th)

This new agency will be operational as of May 8, 2007. Fracht France will have well experienced staff in both sea- and airfreight areas.

Following persons are at your disposal:

We have been able to close a gap in our network, which was bothering us for years. We are very proud to annonce, that as of 1st March 2007, we will have

FRACHT ITALIA SRL
via G.Verga 22
20020 Lainate (MI)
IT05504620963

in Milano. Fracht Italia will have experienced staff in both seafreight and airfreight. They will be more then happy to assist you with with any of your shipments.

We will release the names and telephone, e-mail etc. of our future collegues a little bit closer to the starting date. For the time being, please note the address, and any inquiry you may have with regards to Italy from now until our next mail in this respect, please address to Rudolph Reisdorf (r.reisdorf@frachtag-bs.ch).

In our continued quest to improve our service we have decided to merge our activities in Los Angeles with those of our strategic partner Skytruck. With immediate effect you are kindly requested to direct you inquiries, requestes, new shipments and/or routing order to:

PIC: Reto Kaufmann, Branch Manager (retok@skytruck.com)

Shipments and/or inquiries in process will still be handled by our old colleagues Derek Pritchard (derek.pritchard@fracht.com) and Mery Chacon (mery.chacon@fracht.com) until February 28, 2007 and they can be reached at the regular phone and fax numbers:

Phone: (310) 649-0098
Fax:     (310) 649-0764

As of March 1st, 2007 these numbers will be transferred to the Fracht/Skytruck office. Mery Chacon will join Skytruck and remains your contact for air exports.