H.K. FORWARDER SAYS MANY NVOCCS ARE NOT LINKED INTO AMS

H.K. FORWARDER SAYS MANY NVOCCS ARE NOT LINKED INTO AMS    Many non-vessel-operating common carriers have not completed the procedures and secured the surety bond to participate in the U.S. Customs’ automated manifest system, according to Hong Kong NVOCC Piff Shipping.
   While Piff Shipping is linked into the automated manifest system, the company said that “many NVOCCs will be unable to register for AMS.”
   On Feb. 5, U.S. Customs listed 288 NVOCCs that were participating in the automated manifest system.
   “Although the numbers will increase, it will be in hundreds rather than thousands,” said Nick Coverdale, managing director of Piff Shipping.
   “It is incredible that so many NVOs have not foreseen this problem,” he added.
   It is a requirement of AMS that NVOCCs must obtain a Federal Maritime Commission bond, which in turn requires full insurance cover. Once the FMC bond has been obtained, a carrier has to apply to the National Motor Freight Traffic Association for an SCAC code. A surety company must then be appointed to post a bond.
   The International Federation of Freight Forwarders Associations, more commonly know as FIATA, reported that many non-U.S. NVOCCs have been unable to get surety bonds to become eligible “international carriers” under U.S. Customs rules.
   This means that NVOCCs are unable to file their cargo manifests directly to Customs, and have to send their sensitive, detailed shipment data to U.S. Customs via ocean carriers.
   “Piff Shipping received its FMC bond in 1994 and we consistently maintain full insurance cover, although it appears a number of other companies do not,” said Coverdale.
   Piff Shipping reported that, since Sept. 11, insurance premiums have rocketed and “carriers with a significant claims record may be refused cover,” which means that they will not be eligible to link into the automated manifest system.