COVID-19 General Logistics Update
Port of Virgina Porsmouth Closure: Due to the record number of blank sailings, lack of equipment, and overall loss of volume due to the COVID-19 pandemic, Portsmouth Marine Terminal in Virginia has announced it will close effective May 4, 2020. While this was a difficult decision to make, the port assures that their high level of customer service will be maintained and operations will be adjusted to other terminals to meet the current demand. In order to do so, truck gate hours at Norfolk International Terminal, Virginia International Gateway and their subsequent container yards will be adjusted to 0700 hours Monday – Friday. Vessel service operations will be moving to the other terminals as well, and full schedule details can be found on the Port of Virginia website. We will continue to monitor this situation, and provide updates as needed.
Follow up on Duty/TAX postponement: The beverage alcohol industry was generally disappointed in the announcement by CBP on the 90 day postponement for a very limited amount of duty/tax payments. WSSA and the other key associations have been pressuring the Department of Treasury for parity on excise tax payments for importers after TTB Circular 2020-2 was announced a few weeks ago. This has not been granted and another industry coalition letter from WSSA, DISCUS, NABI, Beer Institute, ADSA, and WSWA is being sent today to Secretary Mnuchin requesting further review. Should anyone want a copy of this letter, please let us know.
Blank Sailings: Further blank sailings have been announced by carriers in various trade lanes. Cargo volumes have dipped at all ports, but ports and terminals are planning for a potential surge of cargo in upcoming weeks. Plans are in place to accommodate storage of containers deemed "non-essential". Supplies assisting the fight against COVID 19 will, of course, receive top priority treatment in movement from ports.
CBMA Refunds: US Customs/CBP is continuing to process CBMA claims as quickly as possible. We know that importers awaiting refunds need this money more than ever, and we can at least report that CBP conducts a weekly conference call to review claims in process. The less complex claims are processed more quickly. Importers with more complex Controlled Group Spreadsheets and multiple suppliers per claim definitely take longer to review. As reported many times, the law is complex and the current process for review relies on a manpower to review the supporting documents. We are continuing our work with the industry to examine automation solutions, while also supporting the extension/permanence of this legislation.