E-Flash No 58 - 2 August 2013

1. Warning! Fraud e-mail alert!

We would like to remind all our members that fraud emails in the name of FIATA are in circulation. Please be aware that FIATA uses only one domain and this is fiata.com. Any emails from any other domain names should be disregarded immediately. Please note that our bank details have not changed and remain the same as before. If you are in receipt of an invoice with FIATA branding, please check the bank details with your records or with us (at info@who-needs-spam.fiata.com) before proceeding with payment.

2. Update your details with FIATA

The Secretariat wishes to once again emphasize the importance of up to date information about our members for our records. Without accurate and correct contact information on our systems we cannot maintain healthy relationships with our members. You are urged to please ensure that your company details are correct by visiting our online Members Directory at www.fiata.com/index.php to confirm that we have the correct details on our records. Any changes to physical or postal addresses, telephone numbers, email addresses or company name changes must be reported to the FIATA Secretariat as soon as possible.

3. FIATA World Congress 2013: Discounted Airfares with Star Alliance

FIATA is pleased to announce, with many thanks extended to our congress organisers in Singapore, the Singapore Logistics Association (SLA), that a recently concluded agreement will allow delegates travelling to the FIATA World Congress in Singapore from 15 to 19 October 2013 to benefit from discounted airfares when purchasing travel with Star Alliance. The Convention Code required for logging into the booking facility is: SQ07S13. Please take note that the “0” is a numeric zero and not the letter O. The following link should be used to gain access to the Star Alliance booking tool allowing you to access these discounted fares:

4. The Bureau of Industry and Security for the United States releases annual report for 2012

The Bureau of Industry and Security (BIS) recently issued its annual report for the fiscal year 2012, which includes information on the administration of export controls, enforcement efforts and penalty actions. BIS investigations resulted in the criminal conviction of 27 individuals and businesses for export violations, down from 39 in FY 2011. The penalties for these convictions came to US$4.79 million in criminal fines, more than US$5 million in forfeitures and more than 187 months of imprisonment, compared to US$20.2 million in criminal fines, more than US$2.1 million in forfeitures and more than 572 months of imprisonment the previous year. BIS investigations also resulted in the completion of 42 administrative export and anti-boycott cases against individuals and businesses and US$7.44 million in civil penalties, down from 47 cases and more than US$8.51 million in civil penalties in FY 2011. Ten of the 42 cases closed involved anti-boycott violations that resulted in total civil penalties of US$142,600, up from eight cases and US$129,300 a year earlier. BIS responded to 981 requests from companies for guidance on compliance with the anti-boycott provisions of the EAR. For more on the results of FY 2012 visit:

5. New rule allows foreign Ocean Transportation Intermediaries (OTIs) to enter into Negotiated Rate Agreements (NRAs)

The Federal Maritime Commission has issued a final rule, Docket No. 11-22, on Non-Vessel-Operating Common Carrier Negotiated Rate Arrangements: Tariff Publication Exemption. This final rule is effective as of 19 July 2013. Under the rule, foreign Ocean Transportation Intermediaries (OTIs) are able to enter into negotiated rate agreements (NRAs) in lieu of publishing rates. In order to enter into an NRA they need to register with the FMC and provide slightly more information than that which is currently required. They will also need to renew their registrations every three years. This topic has been reported on many times at both HQ Sessions and World Congresses. It was in July 1990 that the first NVOCC tariff exemption petition was filed on behalf of FIATA by the TIA. Foreign-based unlicensed NVOCCs may begin to register as of 19 July and may enter into NRAs once their registration is completed. However, mandatory compliance with the registration requirement is being delayed until 17 October 2013. For more information visit:

6. Chinese notification of Value Added Tax

New rules have been issued by the Ministry of Finance and State Administration of Tax in their Cai Shui No. 37 (Circular 37) regarding application of VAT to ocean transport services. The majority of carriers have confirmed that they will start to debit 6% VAT on all charges payable in China. There is a great deal of uncertainty about the application of the new rules and some carriers are seeking clarification with the Ministry of Finance and the State Administration of Tax. We understand that until those carriers receive clarification of the rules and their application to ocean shipping, existing invoicing arrangements will remain unchanged. As is often the case with changes to regulations in China there will be some contradictory statements and we cannot make definitive statements regarding implementation at present. The information below has been compiled from carrier notices:

The following carriers have indicated that they will apply the 6% VAT charge on all invoices payable in the PRC from 1st August 2013 based on the issuance date of the VAT invoice – OOCL, Hamburg Süd, MSC, MOL, NYK Lines, CSAV, China Shipping Container Lines. The following carriers have stated that existing invoicing arrangements will remain unchanged until they have obtained clarification with the Chinese Authorities – Evergreen, Maersk, MCC.

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