Another New Customs procedures - ITN numbers

The following new booking regulation procedure has been released by Customs:
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Export Regulations As of July 2,2008 in accordance with Title 15, Part 30, Foreign Trade Regulations (FTR), Shippers Export Declarations (SED) must he filed electronically via the Automated Export System (AES). Prior to crossing the border, you must have an Internal Transaction Number (ITN) generated from the ABS as proof of filing the required export information. You will have until September 30, 2008 to comply. In accordance with the FTR section 30.71 (a)( I). Any person or entity including U. S. Principal Party in Interests (USPPIs), authorized agents, or transportation carriers (truck, rail, vessel, or air), who knowingly fails to File or knowingly submits, directly or indirectly, to the United States Government false or misleading export information through the AES, shall he subject to a fine not to exceed $10,000 or imprisonment for not more than five years. or both for each violation.
File Shipper Export Declaration information free. Register at www.aesdirect.gov.
For questions, please call 1-800- 549-0595.
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This new process is scaring a lot of exporters, but is really nothing special. What this ITN number does is make it easier for Customs to monitor cargo from each shipper and track each shipment. Customs will now be more up to date with the rest of the world and finally not a pencil driven environment.
Most exporters dont want to be monitored more, who does? But it is not a difficult process. The ITN number will also apply for the entire booking and not just one container.
From what i can gather talking to Customs is the 10,000 USD fine wont be imposed right away either. The process will be monitored per shipper and per carrier by Customs and they will then reprimand each for the first month or two. The process wont be perfect and they know that, and the last thing Customs or this economy is a reason not to trade goods. The 10k fine will be imposed on the shipper and the carrier as Customs deems fit. At no time is the terminal operator liable for an exported container that does not have an ITN number.

How is the going to affect the industry? In my opinion it will not have an impact. This is just another regulation that the industry must get used to and impliment into their daily Standard Practices. The shippers will have to atain the ITN's and submitt them to their chosen carrier. The only real affect this may have in the begining is, many containers missing their intended vessel voyages.

Please let me know how this Regulation is going to affect you.

Was it a mistake when many Financial companies bought shipping terminals?

I am very interested in the buying and selling of container terminals and terminal operators by large financial organizations. Companies such as AIG, Deutsche Bank and others have been investing in the Transportation industry by buying Terminals. The thought process being that the industry and container shipping is only going to grow and fast. Some thought of it as a quick flig (5 year) investment oportunity. This has not shown to be the case. Many people do not recognize that the transportation industry also fluctuates with the World economy and high-profit volumes can shrink in a poor market. The world market will always dictate the rise and fall of container shipping, both import and exports.
That being said, the industry is not doing poorly when comapred to the investment and mortgage firms out there. With many terminals not making the large sums as money as expected (but still being profitable) and now being a part of large investment conglomorats; Are they going to be sold? If an investment firm is losing money as a whole, what do they sell to make up for that? I would think they would sell a sector that is semi-profitable with growth potential, such as their shipping terminals. For example; AIG's High Start Capital is the parent company to Ports America. What are they going to do after being baled out by the US government. Are they going to sell to a Carrier company, another investment firm, or hold onto this infrastructure investment in hopes to make money.

The Global economy is so interesting to watch and learn about. Please add your comments and knowledge.