11 August 2003

Review & Outlook 2003 -- Executive Viewpoints

Federico “Kiko” C. Zuniga, President, National Customs Brokers and Forwarders Association of America

The following article is excerpted from the 11 August 2003 edition of “The Journal of Commerce”.

The issues facing our industry in 2002 will remain with us throughout 2003. The adoption of the 24-hour manifest rule, the continuing West Coast labor discord, and the realignments associated with the Department of Homeland Security will all influence the conduct of transportation logistics in the years ahead.

Although we continue to have significant concerns regarding Customs’ new rule, we believe the measure is an honest attempt by Customs to fulfill its statutory mandate to secure our borders and protect America from terrorist actions. However, the use of the manifest beyond its intended purpose may compromise the confidentiality of proprietary information contained in the document, especially in light of its availability through Freedom of Information Act requests. … [I]t would be more effective to establish a process that identifies all parties involved in the supply chain for each container, and we question whether the 24-hour rule can be as effective as it needs to be. One important feature of the rule is the involvement of a subcommittee of the Advisory Committee on the Commercial Operations of the U.S. Customs Service (COAC), which is already being formed and expanded to include non-vessel-operating common carriers. The industry, which is well represented on this group, will be able to raise highly specific operational issues for COAC to bring to Customs. Hopefully, this mechanism will mitigate the more onerous aspects of the rule in favor of the industry.

The labor dispute on the West Coast will have ramifications in 2003 as trade participants continue to dig out from the backlog. The question of surcharges for delayed cargo and costs of rerouted cargo will have to be addressed. And finally, the full effect of the consolidation of transportation logistics oversight into the Department of Homeland Security will not be known for many months. We are hopeful though that U.S. Customs will, given its expertise and experience, maintain its premier role in overseeing our industry.