US document rule affects all exporters

By PAM GRAHAM

Exporters at a hastily organised meeting in a customs shed in Auckland yesterday were told that they will all be affected by tougher security on freight.

Exporters to and through the US are grappling with a rule, effective from last Monday, that goods be documented 24 hours before they are put on vessel.

Shipping companies want the information four days early and say vague descriptions such as "personal effects" are not good enough.

One of the 120 exporters at the meeting asked if all exports would be affected and was told they would be.

As a result of the new rule, Customs is reviewing its "derogation" procedure, which allows some exporters to file paperwork up to five days after goods have left New Zealand.

"Derogation will be reviewed in the new year and it is likely to be removed," Allen Bruford, Customs' national manager of goods, said after the meeting.

New Zealand law requires that paperwork be filed 48 hours before goods leave the country, while the US rule is 24 hours before they are put on to a vessel, which may go to several ports before leaving the country.

Gilbert Ullrich, chairman of Export New Zealand's trade and transport committee, said the documentation issue was just the tip of an iceberg of security issues for exporters.

It was inevitable that freight would be rejected by US authorities as the new system settles down, he said. Exporters who do not comply could be fined, but there is a 60-day period to let the new rule bed in.

And Ullrich said that if New Zealand moved fast to adapt it could create an advantage over other exporters.

Exporters also asked about several practical issues to do with shared containers. A meat exporter asked that Customs worked with the Ministry of Agriculture to ensure that checks were kept to a minimum.

"This issue is not going to go away," said Reinhold Goeschl, managing director of logistics company Bax Global. "We have to make the best of the situation."

Customs will also seek to reach bilateral arrangements with the US customs, the meeting heard.

Columbus Line's website has information about the new rules.

Columbus Line