Shipping HAZMAT? Do It Right or Pay the Price

If your company ships hazardous materials (a/k/a “HAZMAT”), a single misstep could cause your business to incur hundreds of thousands of dollars in penalties.

In fact, every day HAZMAT shippers are slapped with penalties issued by the Federal Aviation Administration (FAA)–and the penalty amounts sometimes reach seven figures or more.  

If you think “well, I made only one mistake–I won’t get caught,” or if you think you can talk yourself out of getting a penalty like you do a speeding ticket, think again.  When the FAA investigates an incident and issues a penalty, you can bet what you think is just one violation will quickly become multiple violations. 

FAA regulations require proper marking, printing, labeling, describing, packing, and classifying HAZMAT. Also, there is another set of regulations for the training of employees and recordkeeping of shipments.  Understanding the FAA’s policies and procedures in HAZMAT penalty cases is a necessary first step to mitigating what can be exorbitant penalties.

The FAA issues the penalties for violations of the Department of Transportation Hazardous Materials Regulations (HMR) found at 49 CFR Parts 171 to 185 pursuant to the Federal Hazardous Materials Transportation Law, 49 U.S.C. Sections 5101 to 5127.  The FAA penalties have increased from $10,000 to now $50,000 for each violation of the HMR that occurred after August 10, 2005.  It is common for the FAA to issue a penalty for hundreds of thousands of dollars against a company for illegally shipping, or even attempting to ship, a HAZMAT on an aircraft, including […]

OWIT – South Florida to Host Ambassador Juan Miguel Gutierrez-Tinoco

diaz_j3 (1)On September 9, 2009, the South Florida chapter of the Organization of Women in International Trade (OWIT) will host Ambassador Juan Miguel Gutierrez Tinoco, the Consul General of Mexico. This month, OWIT-South Florida’s focus is Mexico at our monthly luncheon. The luncheon will take place at the Sofitel Hotel from 11:30 to 1:00 p.m. I hope you make it!  Register here.

Did you know Mexico is the third largest trading partner of the United States? Mexico’s top import into South Florida is gold, up by 184.17% according to World City’s 2009 Miami Trade Numbers.

Save the Date!

Please save November 12, 2009, for our annual International Business Women of the Year (IBWOY) awards luncheon, honoring exemplary women in the South Florida international trade community.  While the details are being fine tuned, I can say that we are doing something different this year. Typically, we raise money for a scholarship for a university student.  However, this year, so many of us have been touched by cancer.  We recently lost Bunny Schreiber, a beacon in the South Florida trade community, and one of our own Board members is currently fighting cancer. Therefore, this year we would like to raise money for breast cancer awareness and will donate proceeds of our silent auction to the Susan G. Komen foundation. If you have any items you’d like to include in the auction, or are interested in sponsorship, please contact me.

I have to say, I personally have truly enjoyed being a Board […]

By |2015-11-30T19:33:47-05:00September 1, 2009|Import, OWIT|0 Comments

International Trade May Return as a Priority at U.S. Customs

Ever since the tragic events of 9/11, the sole focus of U.S. Customs and Border Protection has been anti-terrorism.   This is true, despite the rhetoric in more recent years that U.S. Customs serves the equally vital goals of anti-terrorism and facilitating the flow of legitimate trade and travel.  The former priorities of collecting customs duties and fees, facilitating international trade, preventing illegal trade practices, and interdicting drugs and other contraband was shoved to the side in the name of protecting our homeland from terrorists.

Fortunately, the United States Congress, through the Senate Finance Committee led by Sen. Max Baucus (D-Montana), on August 6, 2009, introduced a bill entitled “The Customs Facilitation and Trade Enforcement Reauthorization Act of 2009.” Senator Baucus said that U.S. Customs and Border Protection (CBP) and U.S. Immigration and Customs Enforcement (ICE) have not been focusing sufficient resources on their trade missions, “and this bill would direct them to do so.”

If the bill becomes law, and it should, because of both Democratic and Republic support,  it would refocus U.S. Customs on regulating international trade, a mission U.S. Customs has performed very well for over 200 years.   In summary, among other things, the law would:

1) Replace the Office of  Trade Relations with a new Trade Advocate, who would be the primary liaison between the public and U.S. Customs;

2) Create a Principal Deputy Commissioner, appointed by the President of the United States;

3) Consolidate the current Office of International Trade and the Office of International Affairs into a single Office of International Trade;

4) Make health and safety issues a top priority;

5) […]

Mexico Fires its Customs Officials

Did you hear that Mexico replaced all 700 Customs Inspectors?  It did so because the Mexican Customs officers were considered corrupt, allowing undeclared merchandise (including drugs and weapons) to cross into and out of Mexico.  The replacement officers are allegedly specially trained to collect the tax revenues that the Mexican Government depends upon, and prevent undeclared merchandise from entering the country (i.e. smuggling).  Mexico depends upon collection of revenues by the Mexican Customs authorities much more than we do in the United States with the customs duties and fees collected by our U.S. Customs and Border Protection (CBP) officers.  Most importantly, the new Mexican Customs officials are supposed to be specially selected and trained so they will not be susceptible to the same enticements that corrupted the former 700 Mexican Customs officials.  Mexican Government officials say not to worry about  the new Mexican Customs officials as over 70% of the new Mexican Customs officials are colleged educated, as opposed to just 10% for those who were fired.

Do you believe any of this nonsense?  This is not the first time that the Mexican Government has fired huge numbers of its Customs officials.  It happened before and it will likely happen again.  Mexican Customs officials need better salaries and better working conditions, not college degrees.

In contrast, if an international passenger or importer or exporter attempted to bribe a U.S. Customs officer, the chances are excellent that the U.S. Customs officer would promptly arrest or take other similar serious and immediate action.  That is not to say there […]

Export Manager Fined $15k for False Statements to BIS

diaz_j3 (1)Lesson of the day –  Don’t make an intentionally false or misleading statement to the U.S. Commerce Department’s Bureau of Industry and Security (BIS)! Carol Wilkins apparently did, and will now pay $15,000 to the BIS. Important to note is that this export manager was fined individually. RF Micro Devices, Inc., the company Carol worked for, was fined $190,000 separate and apart from Carol.

From at least 2002-2003, a responsibility of Carol’s was export control compliance for RF Micro Devices, Inc. The company had exported spread-spectrum modems which are properly classified as ECCN 5A001 to China.  Yet, the company did not obtain the required license from the BIS.

The BIS Charging Letter discussed Ms. Wilkins’ false or misleading statement to the BIS. During the course of a BIS investigation, she allegedly told a BIS Special Agent that all product classifications were confirmed by an outside consultant to be EAR99 (no export license required). Apparently the consultant disagreed, and even kept the documentation in which the consultant had specifically advised Carol that the items were not EAR99.  Carol might not have realized how resourceful the BIS Agents could be as she may not have realized that BIS Agents would confirm her statements to them by doublechecking with the consultant. Even I was always taught “trust but verify”.  BIS is no different in this case.

Whenever you are going to be interviewed by a Special Agent of BIS or any other Federal law enforcement agency, always remember two things: (1) tell the truth, and (2) seek the advice of […]

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