Advance Cargo Declaration…
Advance Cargo Declaration ... confused?  Let Transmar help you navigate through the new regulations. The new EU Import Control System (ICS) for Advance Cargo Declarations - in force for all Greek ports from 1 July - throws up some real challenges for ship operators, carriers and their representatives. From meeting the deadlines for electronic Entry Summary Declarations and Exit Summary Declarations, to the need to register for an EORI number, complying with the new system and its intricacies can seem complex and confusing. That's where Transmar can help. EUROPEAN UNION (EU) ENTRY SUMMARY DECLARATION (ENS) OBLIGATORY Entry Summary Declaration (ENS) in force for Greek ports from 1 July 2011   GENERAL From 1 January 2011, the European Commission (EC) adopted a new regulation (Annex 30A to Regulation 1875/2006) regarding the entry and exit of goods in the Customs territory of the EU (Advance Cargo Declaration). From 1 July 2011, this regulation will be in force for all Greek ports, meaning that the ship operator or carrier, or their representative (typically an authorized ship agent), will have to declare cargo information in advance to the Customs office solely in the case of import or export of goods. The above-mentioned message is in the form of a pre-arrival electronic declaration - the so-called Entry Summary Declaration (ENS) and Exit Summary Declaration (EXS), both generally lodged by the person who is bringing the goods into or out of the EU's Customs territory (the carrier) or the person responsible for the haulage. It is possible, following approval and authorization, that these declarations can be submitted by a third party or by a representative. The EU Advance Cargo Declaration Regime will apply in the following three cases: The IMPORT of goods from third countries to one or more EU Member States; The EXPORT of goods from one or more EU Member States to third countries; or The TRANSIT of goods, which are not into free circulation, over the territory of one or more EU Member States. The EU Advance Cargo Declaration Regime (ENS / EXS) will apply to all shipping sectors but there are different provisions for each of these sectors. The time limits within which a ship operator or its representative must submit an Advance Cargo Declaration are different for deepsea container shipping, deepsea bulk shipping, shortsea shipping and combined transport. For Deepsea Container Shipping: 24 hours before loading of the cargo onboard a ship in a foreign (non-EU) port in case of import; or 24 hours before loading of the cargo onboard a ship at the EU port of departure. In case of import, the declaration obligation applies to each foreign (non-EU) port of loading and not just to the last foreign (non-EU) port of loading before entering the EU. For Deepsea Bulk Shipping: 4 hours before arrival of the ship in the first EU port of arrival in case of import; and 4 hours before departure of the ship in an EU port in case of export. For Shortsea Shipping and Combined Transport: 2 hours before arrival of the ship in the first EU port of arrival in case of import; and 2 hours before departure of the ship in an EU port in case of export.   Exception: The above-mentioned Exit Summary Declaration (EXS) will not be in force from 1 July 2011, but is due to become obligatory within the next few months. TIPS Ensure that all goods to be imported into the EU via Greek ports from 1 July 2011 have been declared correctly, by checking with the representative at the loading port.   If nobody at the loading port has lodged an ENS at the first entry port of the EC, or the ENS has been lodged but during the trip the EU port of entry has changed, for example for bunkering purposes, then it is obligatory to advise the representative accordingly in order to send the initial or the revised ENS. In addition to the ENS, there is another important message - the Arrival Notification (AN). This must be submitted to the Customs office immediately on arrival of the vessel at the first EU port of entry.   For the lodgment of the above mentioned messages, the following data must be available to the representative in advance: Bill of Ladings or Cargo Manifests (copies) UN Dangerous Goods Code (if the vessel is laden with dangerous cargo) anddetailed info for this cargo on board. Loading port and Actual Time of  Departure (ATD) or ETD Discharging port and ETA Economic Operators Registration and Identification (EORI) number of carrier (vessel's owner or operator). Intermediate ports  (if any) between loading and discharging ports & arrival / departure dates In order to meet the declaration deadlines and thus avoid delays in transporting the goods, it is necessary to send the above data to the representative after loading at the very latest and, when possible, prior to this.   In this context, we must emphasize: transmissions that are not on time, are incorrect or are incomplete can result in fines and delays to the transport of goods, due to the risk analysis that must be carried out by the Customs authorities. In addition, an incorrect declaration can lead to Customs costs being incurred.   TRANSMAR Our office staff have attended two seminars organized by the Ministry of Finance (12/2010 & 6/2011). Transmar was assigned an EORI number in November 2010. We are able to declare as owner's or vessel's representative the Entry Summary Declaration (ENS) concerning the first or second EU entry port or any other modification of the ENS that may be required during the vessel's trip. We can also assist your company in registering for an EORI number (see below).   EORI An EORI number, unique throughout the European Community, is assigned by a Customs authority or designated authority or authorities in a Member State to economic operators and other persons in accordance with the rules laid down in Part I, Title I, Chapter 6 of the Customs Code Implementing Provisions (CCIP). By registering, for Customs purposes, in one Member State, operators are able to obtain an EORI number that is valid throughout the EC. Obviously, in order to benefit fully from this reform, holders must use the EORI number - once it has been assigned - in all communications with any EC Customs authorities where a customs identifier is required. The provisions of the EORI number neither limit nor undermine the rights and obligations derived from requirements to register for, and obtain, any identification number demanded in individual Member States in fields other than Customs, such as taxation or statistics.   Requested documents for EORI number The documents required for the registration and assignment of an EORI number to economic operators not established in the Customs territory of the European Community are as follows: Personal declaration (provided by our office) Application form (provided by our office) Authorization letter to our office for the EORI registration formalities. In the case of legal persons or associations of persons: a document from the business register (original or certified copy of an official document providing identification data and issued at least six months earlier by the authorities responsible for the business register or by chambers of commerce in the EU or in the third country). Customs authorities may ask for an official translation of the document.    
Lay-ups
Given the current state of the dry bulk market it is evident vessels may enter lay-up. Here, Clubs assess whether it is a "hot" or "cold" lay-up. Only in circumstances when they determine it is a cold lay-up will there be a reasonable return of premium granted.The conditions for lay-up are typically:- No cargo remaining on board- Safe anchorage or berth as determined by Class or surveyors appointed by underwriters (Hull and/or P&I)- Skeleton crew of no more than 2-3 crew watchmen remain on board- Minimum number of days in one sequence of 30-45 days- No hot works to be undertaken- The vessel is effectively a dead ship"Typically" the Clubs will agree between a 60%-75% return (dependent upon trading premium) of the P&I trading premium for the duration of the lay-up (no return for FD&D premium). It is important to establish real premium returns since the Clubs, in general, apply different methodology to the actual returns granted i.e. re-insurance, administration, retained premium etc., Upon re-activation, the trading premium is then re-registered. For H&M, the majority of policies are for "Cancelling Returns Only" ("CRO") which means that no returns of premium are granted for lay-up, only for sales or scrapping etc. It is possible to re-negotiate this with underwriters but there are no guarantees they will agree to lay-up returns. However, they may agree a limited AP for H&M to the expiry of the policy on a fleet basis to reinstate lay-ups i.e. cancel the CRO condition, and then allow a 25% - 35% return on H&M "trading" premium for laid up periods in excess of 30 days, with a re-activation survey warranty if the vessel is laid up for more than 6 months. Premium returns are subject to satisfactory lay-up details.If owners are willing to increase deductibles to say US$ 250,000 - US$500,000 each incident then underwriters may agree up to a 45% / 50% return. It is all subject to negotiation.Port Risks It is possible to cancel both H&M and P&I policies and attach cover on a port risk only policy whilst in lay-up but this only offers limited coverage, including limited P&I, up to Hull value.Thus, for a claim for ATL/CTL, pollution, wreck removal or RDC/FFO etc. the P&I element of the claim will only cover to the maximum vessel(s) value. For the avoidance of any doubt, the limit for both Hull and P&I risk(s) is the hull value i.e. a combined single limit. It is, of course, possible to perhaps negotiate a separate limit of liability for the P&I but this will come at an additional premium.The rate is not fixed i.e. a standard rate, and will be determined by the size of the vessel, value, location and firefighting / mooring arrangements etc., but this excludes crew cover which is typically placed as a separate cover.Underwriters will agree a 5% (only) return for excluding P&I risks absolutely from the standard Time Clauses Hulls – Port Risks conditions.It is possible, of course, to reduce values(s) to reduce premiums but this concurrently reduces the limits of liability available to owners.It must be stressed this is a very limited form of cover and carries ‘risk’.   Iain Burley
Cosco asked to raise its Piraeus offer
Taiped accepts ‘significantly improved’ Cosco bid for Piraeus Cosco Pacific has been given the go-ahead to buy a majority stake in Piraeus Port Authority, following its ‘significantly improved’ offer. Taiped, the Greek privatisation agency, accepted Cosco’s €368.5 million bid for a 67% share in PPA, after rejecting an initial offer which was reported to be around €300m. The deal will be in two phases – Cosco will initially pay €18.5m for 51% of the port authority and five years later, subject to other terms of the deal being met, it will pay another €88m to take the stake to 67%. Part of the agreement is that Cosco will invest €350m over ten years, while concession proceeds for Greece are forecast at €410m. The transaction will be an important driver for employment growth and economic development around the port area, said Taiped.  Cosco, which already operates the larger part of the port’s container terminal in a 35-year concession, has already pushed Piraeus to become one of the fastest growing container ports in the Mediterranean. Thessaloniki – Greece’s second port – and ten regional ports are also for sale under the privatisation programme required by international creditors. However, port privatisation has been opposed by trade unions and also caused fierce debate within the government.
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