BREAKING NEWS FOR IMPOTERS & EXPORTERS

US Exporters can celebrate the removal of tariffs on American Whisky

Announcements were spread throughout the industry yesterday in regards to the change in policy from the E.U. per Chris Swonger of DISCUS:

“After three very difficult years of sagging American Whiskey exports, the E.U. and U.S. are back to a zero-for-zero tariff agreement on distilled spirits, which has been instrumental to our export success and job creation on both sides of the Atlantic since 1997,” said Chris Swonger, president and CEO of the DISCUS. “Lifting this tariff burden on American whiskeys not only boosts U.S. distillers and farmers, it also supports the recovery of E.U. restaurants, bars and distilleries hit hard by the pandemic. We are energized and ready to ramp up our American whiskey promotions in the E.U. to re-introduce America’s native spirits to EU consumers.”

The official announcement is expected this week. While tariffs remain in place in the UK, it is expected that these tariffs will also be removed in the coming weeks.

US Importers in LA/LB can expect additional fees:

The announcement last week of the implementation of a new fee to be imposed on containers exceeding designated dwell times created a lot of buzz in the industry. Is it legal? Should it have been subject to the FMC 30 day filing rule? Who is going to end up paying? This press release from the Port of Long Beach covers the details of the new fee, and we have provided a summary of the facts below:

• Name of the new fee: Container Excess Dwell Fee
• Ports affected: LA and Long Beach
• Cargo affected: Full Import containers only
• Date of implementation: November 1
• Date of first assessment of the fee: November 15
• Fee basis: $100 for first day, and each day the fee increases by $100. For containers scheduled to move from the terminal via truck, the charge will start on the 9^th day. For containers scheduled to move out via rail, the charge will start on the 6^th day.
• Percentage of containers currently on terminals more than the 6 or 9 day time frame: 40%
• Who will pay: The ocean carriers will be billed for the charge and most have announced that they will bill the consignee/importer. 
• Where will the money go: Per Harbor commission announcement: “ Any fees collected from dwelling cargo will be re-invested for programs designed to enhance efficiency, accelerate cargo velocity, and address congestion impacts”

The Harbor Commission has stated that if dwell times are dramatically improved prior to November 15, the fee will not be assessed. The impact of this announcement is, of course, unknown at this time. Will importers that have been unable to pull containers off terminals due to lack of space in warehouses rush to move containers? Could this mean fewer chassis available due to more containers sitting on chassis in trucking company or warehouse yards? Or, will this plan effectively improve the velocity of movement from the terminals and improve the overall schedule integrity of the ocean carriers? We will see how this pans out and will be reporting back.