Figure 2.1-1 Bill of Lading from Shipper to Clearance Authority Operating Concept
Figure 2.1-2 Bill of Lading from Shipper to POD Operating Concept
Figure 2.1-3 Bill of Lading from POD to Consignee Operating Concept
Figure 2.2-1 Pictorial Diagram of IDEF0 Objects
Figure 2.2-2 Transportation Processes
Figure 2.2-3A-0 Movement
Figure 2.2-4A-0 Movement
Figure 2.2-5A-1 Prepare Cargo
Figure 2.2-6 Transport Cargo
Table 2.2-1 Arrow Definitions
Table 4.3-1 USTRANSCOM Units and Locations
Table 4.3.2-1 AMC Global Missions
This report presents a preliminary analysis of the overseas shipment
documents process. The defense transportation freight movement
process includes four major areas: tender submission, planning,
movement, and payment. The overseas shipment documents
process is a part of the movement process.
This report examines the Department of Defense (DoD) overseas
shipment Electronic Data Interchange (EDI) operating concept with
respect to overseas shipment documents. DoD document processes
are addressed, and projected EDI operating concepts are explained.
A model of the overseas shipment documents process has been developed
as part of this report. This "As-Is Movement Activity Model"
is a representation of the activities associated within the movement
process of the defense transportation freight movement system.
This base model will be used to develop a preliminary business
case for adopting a standard electronic interface among the countries
of interest and the U.S. The model will also serve as an assessment
tool for determining the feasibility of developing a generic foreign
customs interface.
With respect to developing a foreign customs interface, it would
be difficult to include all customs requirements from every country
in the world. However, in this work, we were tasked to look specifically
at the nine following countries:
In order to ascertain DoD's interaction with each of the aforementioned
countries for overseas shipments, status of forces agreements
with the countries were compiled and reviewed for relevant information.
Further, DoD transportation components were identified, and their
roles within the defense transportation freight movement process
were delineated.
This report is a summation of our discovery process results ascertaining current "DoD" and "EDI" overseas shipment documents concepts, and foreign customs requirements. This preliminary report was prepared for the purpose of providing information. No assessment of operating concepts with respect to foreign customs interfaces was performed. That assessment, as well as additional survey information, will be included in the final version of this report.
Shrinking budgets, downsizing forces, and many other factors are
contributing to the DoD's effort to "rethink the way it does
business." Although the DoD's mission remains "to provide
for the common defense," the DoD must also be able to project
military power anywhere in the world on relatively short notice.
This projection of power requires the DoD to maintain a material/communications
and logistics infrastructure that enables the Department to ship
personnel and materiel globally in times of peace or conflict,
and with enough "visibility" to know where the shipped
assets are at any time, as well as their status. Lesson learned
from every major military deployment during this century point
out that sound logistics' practices are critical to the success
of military operations; yet, every major DoD military operation
undertaken this century has been plagued by logistics and communications
difficulties. To this end, the DoD has started to reengineer
many of their logistics and communications business practices,
utilizing commercial business practices and techniques such as
Electronic Data Interchange (EDI) where practical. The Overseas
Shipment Documents Process (OSDP) is one of the business processes
that DoD hopes to infuse EDI practices. However, according to
the defense Transportation EDI (DTEDI) Implementation Plan[1],
"This process presents the largest and most complex of the
DTEDI challenges. To electronically process overseas shipment
documents, the defense transportation community needs to develop
at least 10 telecommunications links among 15 different systems
and support more than 80 EDI interfaces."
Currently, the DoD is expanding its use of EDI techniques in the
logistics process[1]. Further, DoD has addressed its need for
Total Asset Visibility (TAV), as well as Intransit Visibility
(ITV) through a series of plans, programs, and systems development
efforts. These efforts, when completed, will provide the DoD
with total visibility of assets throughout the world, the status
of these assets, and the ability to exchange asset data.
Currently, the defense transportation community is exchanging
bills of lading, invoices, rate tenders, and shipment status messages
electronically among its members and commercial industry with
some success, often using minimal resources. The United States
Transportation Command (USTRANSCOM) has been designated as the
lead agency for the Defense transportation EDI (DTEDI) program
effort. The objective of the DTEDI program is to automate the
transfer of data between information systems that are used for
different purposes. The program has categorized critical success
factors for the DTEDI program into two categories; Program
Administration, and Technology Management.
This section focuses on the DoD EDI efforts with respect to the
overseas shipment documents process. DoD's current EDI operating
concept for the overseas shipment documents process consists of
three subprojects:
The operating concept for each of the three subprojects above
is only a proposed operating concept, because the availability
of automation at each of the required nodes in the transportation
pipeline does not presently exist. Pictorial representations of
the three subprojects are presented in Figures 2.1-1, 2.1-2, and
2.1-3.
Currently, the "Bill of Lading from Shipper to Clearance
Authority Operating Concept," Figure 2.1-1, calls for the
utilization of ASC X12 transaction sets to perform the overseas
shipment documents process between the shipper to the clearance
authority, as well as from the clearance authority to the consignee.
The Shipper is defined as "A Service or Agency Activity
(including the contract administration or purchasing office of
vendors) or a vendor that originates shipments."[2] Clearance
Authority is defined as " The activity which controls and
monitors the flow of cargo into the airlift or water transportation
system."[2] There are two categories of clearance authorities,
Airlift Clearance Authority (ACA), and Ocean Cargo Clearance Authority
(OCCA). The ACA is defined as "A service activity which
controls the movement of cargo (including personal property) into
the airlift system."[2] An example of an ACA would be Air
Mobility Command (AMC). The OCCA is defined as "The Military
Traffic Management Command (MTMC) activity which books DoD-sponsored
cargo and passengers for surface movement, performs related contract
administration, and accomplishes export/import surface traffic
management functions for DoD cargo moving within the Defense Transportation
System (DTS)."[2]
This operating concept calls for the transmittal of the Advanced
Transportation Control and Movement Document (ATCMD) from the
shipper to the clearance authority utilizing the Accredited Standards
Committee (ASC) X12 858 transaction set. The 858 "Shipment
Information Transaction Set" can be used to provide the sender
with the capability to transmit detailed bill of lading, rating,
and/or scheduling information pertinent to the shipment. Information
that is found within the 858 transaction set includes:
among others. Once the ATCMD EDI information is received by the
clearance authority from the shipper, the clearance authority
may issue a "Challenge Status" to the shipper, using
the ASC 864 transaction set. The ASC 864 "Text Message Transaction
Set" provides the user with the capability to electronically
send messages, contracts, explanations, and other one-time communications,
with the purpose of providing communication to the recipient in
some human-readable form. The clearance authority will utilize
this transaction set to communicate to the shipper additional
requirements required for the OSDP not previously addressed.
The shipper's communications network will dictate what capabilities
exist to receive information from the clearance authority. Should
the clearance authority "challenge" the shipment, then
the DoD's current operating concept calls for the clearance authority
to notify the consignee of the challenge. It has not been
determined what type of transaction will be used by the clearance
authority to notify the consignee. If the transaction
is performed via EDI, then an appropriate ASC X12 transaction
set may be required.
Figure 2.1-2 presents the "Bill of Lading from Shipper to
POD Operating Concept," for the OSDP. The operating concept
calls for the use of the ASC X12 858 transaction set as the primary
EDI mechanism. As shown and previously discussed, the shipper
transmits the ATCMD (858) information to the clearance authority.
The clearance authority is then responsible for transmitting
the ATCMD data to the Port of Embarkation (POE) so that a manifest
may be generated by the POE. The manifest is generated by the
POE and sent, using ASC X12 858/304/856 transactions, to the port
of debarkation and/or to the over-ocean carrier. Any corrections
to the manifest are also transmitted by the POE to the POD using
858/304/856 transactions. The ASC X12 304 "Shipping Instructions
Transaction Set" provides the format and establishes the
shipping instructions data contents. When the transaction set
is transmitted to an ocean carrier, it provides all of the information
necessary to prepare and distribute a contract of carriage, such
as an ocean bill of lading, sea waybill, or other shipping documents.
When the transaction set is transmitted to a freight forwarder
or customs broker, it provides for the transmission of shipping
and financial information required by the forwarder or customs
broker to move the cargo and provide the services requested.
The 304 includes information such as:
The ASC X12 "Ship Notice/Manifest Transaction Set" is
used to list the contents of a shipment of goods as well as additional
information relating to the shipment such as order information,
product description(s), physical characteristics, type of packaging,
marking, carrier information, and configuration of goods within
the transportation equipment. This transaction set enables the
sender to describe the contents and configuration of a shipment
in various levels of detail, and provides an ordered flexibility
to convey information, especially concerning hazardous materials.
The current operating concept calls for the shipper to send the
bill of lading and TCMD information (via 858) to the POE. Shippers
use various shipping documents, including Government Bills of
Lading (GBLs), TCMDs, and commercial paper to move shipments to
POEs. The POEs, however, do not have the capability to receive
GBLs electronically, nor do they have the capability to create
other transportation documents (such as TCMDs or manifests) using
EDI standards[1].
As shown in Figure 2.1-2, the shipper also sends bill of lading
and TCMD information via the X12 858 transaction directly to the
carrier, or to the Container Consolidation Point (CCP) if required.
The CCP provides a means of combining shipments from multiple
shippers. These combined shipments may then be sent directly
to a single consignee, or by use of stopoffs or Break-Bulk Points
(BBPs), to multiple consignees. The military services and Defense
Logistics Agency (DLA) have established CCPs throughout the Continental
U.S. (CONUS) to consolidate cargo for onward movement. However,
some CCP functions may be performed by the POE for loose shipments
arriving at the port[2]. The current operating concept calls
for the CCP to send bill of lading and TCMD information that they
received from the shipper to the POE, or directly to the carrier
via 858. The CCP adds the necessary container information to
the TCMDs received from the shipper for each shipment. When the
container must be moved to the POE by a negotiable document, the
CCP prepares the GBL or Commercial Bills of Lading (CBL) as well[2].
The "Bill of lading from POD to Consignees Operating Concept"
is shown in Figure 2.1-3. The POD will send manifest information
using the ASC X12 858/856 transaction set to the Theatre Traffic
Management System. The Theatre Traffic Management System will
work in concert with the Joint Theatre Transportation System (JTTS).
When developed and fielded, the JTTS will be capable of processing
shipment information received from port systems; tracking containers
and pallets; reading Automatic Identification Technology (AIT)
and other devices; interfacing with the Global Transportation
Network (GTN); and generating documentation for deploying and
redeploying unit cargo and personnel, and for retrograde cargo[3].
The POD will also send bill of lading (858) and manifest information
(858/856) directly to the consignee. Bill of lading (858) information
will also be sent to the carrier from the POD.
When transshipping activities receive multiple shipments which
have been unitized, then breakbulk points (BBP) may be used.
In this case, the current operating concept calls for the POD
to forward manifest information (858/856) and bill of lading information
(858) to the BBP. MILSTAMP (Military Standard Transportation and
Movement Procedures) requires the BBP to notify the POD that the
unitized shipment has been received, and requires the BBP to return
to the POD the signed documentation. Similarly, the BBP notifies
the POD when the shipment is not received within 10 calendar days
of its anticipated delivery[2]. This passing of information from
the BBP to the POD is shown as a dashed line called "Return
Information" in Figure 2.1-3. In both cases, information
is passed from the BBP to the POD, and therefore, EDI techniques
should be utilized. The ASC X12 858/856 transaction sets for
manifest information may be used as the EDI transaction sets for
return of signatory information from the BBP to the POD. For
notification of late shipments (those shipments not received within
10 calendar days of anticipated delivery) the ASC X12 864 "Text
Message Transaction Set" may be used. The BBP is also responsible
for forwarding manifest information (858/856) to the consignee,
and bill of lading information to the consignee, and carrier if
required.
Foreign customs interface of EDI transactions occur between
the POD and customs using three ASC X12 transaction sets: 309,
353, and 355. The current operating concept calls for the
POD to forward customs manifest information to customs using the
ASC X12 309 "U.S. Customs Manifest Transaction Set."
This transaction set is used by carriers, terminal operators,
port authorities, or service centers to provide U.S. Customs with
manifest data on cargo arriving in or departing from the U.S.
on oceangoing vessels, railroad trains, or other types of conveyances.
The 309 contains information such as:
among others. The transaction set can also be used by carriers
to provide terminal operators, port authorities, or service centers
with manifest data on cargo arriving at their facilities.
The POD also sends a customs declaration to foreign customs using
the ASC X12 353 "U.S. Customs Events Advisory Detail Transaction
Set." This transaction set can be used by carriers to notify
U.S. customs of events concerning cargo moving in-bond or of conveyance
arrivals or departures. These events include the arrival of containers,
or cargo covered by individual ocean bills of lading or in-bond
numbers which have been moved in-bond to an island destination
or which have been exported from the United States. Carriers
can also use this transaction set to notify U.S. Customs of the
arrival or departure of a conveyance for which an electronic manifest
has been filed, and for the transfer of custodial liability when
an in-bond movement involves multiple legs.
The Current operating concept calls for foreign customs to issue
a manifest acceptance to the POD using the ASC X12 355 "U.S.
Customs Acceptance/Rejection Transaction Set." This transaction
set can be used by U.S. Customs to report errors and discrepancies
discovered in the U.S. Customs transaction sets to ocean carriers,
terminal operators, port authorities, and services centers.
In order to fully describe the overseas shipment documents process,
an Integrated Definition Language 0 (IDEF0) activity model was
developed for part of the transportation process. The IDEF0 modeling
technique was chosen for the following reasons:
An IDEF0 model is a pictorial representation of a business process
consisting of boxes and arrows. The boxes of an IDEF0 model represent
business activities: the actions or series of actions that have
a purpose and create something (output). The arrows represent
objects that interact with the activity. Figure 2.2-1 presents
a pictorial diagram of IDEF0 objects.
Figure 2.2-1 indicates four types of arrows; input, output,
control, and mechanism. The input arrow represents
items, such as objects or data, that are either consumed or somehow
transformed by the activity. The output arrow represents items
that occur as a direct result of the activity. The control arrow
of an IDEF0 model represents conditions that influence, rule,
or regulate the desired output. The mechanism arrows represent
the items (e.g., people, machinery, etc.) that perform the activity.
The functions of each arrow are important when interpreting the
"Model of the Overseas Shipment Documents Process" developed
for this task.
The "Model of Overseas Shipment Documents Process" was
developed based upon the Transportation Processes diagram from
the DTEDI Implementation Plan[1], depicted in Figure 2.2-2. The
model focuses on the "movement" section of the transportation
processes diagram, where the overseas shipment documents activity
occurs. The entire "movement" section was not modeled.
Only the overseas shipment documents activity and its by-products
were considered during the development of the model. The domestic
shipment activity, status information activity, and discrepancy
reports activity were omitted from the model because they are
not within the scope of the overseas shipment documents activity.
The model was developed from the perspective of the shipper.
The scope of the model is limited to those activities involved
in the movement of cargo, with respect to the overseas shipment
documents process. The activity definitions are included as part
of the model. The arrow definitions are included in Table 2.2-1.
The model is pictorially presented within the following pages.
| MOVEMENT | The third of four activities required to perform the "Overseas Shipping Document Process." The other three include 1) Tender Submission 2) Planning and 4) Payment. The movement activity defines the scope of this model. The model was developed from the "shipper's perspective," where the shipper is defined as the owner of the cargo. There are three major activities associated with movement: Prepare Cargo, Transport Cargo, and Release Cargo. |
| PREPARE CARGO | The Prepare Cargo activity consists of all of the actions necessary to ready the cargo for transportation. It includes determining the cargo-specific requirements for shipping, making the cargo ready by packaging or other means, as well as staging the cargo. The cargo is prepared by either the shipper or carrier, using the previously developed shipping plans, and considering required regulations/standards, as well as the clearance authorities' requirements. Information outputs of the activity include the completed TCMD, as well as the preparation status during any portion of the activity. | |
| TRANSPORT CARGO | The Transport Cargo activity consists of all of the actions necessary to ship the cargo from the POE to the POD. It includes loading the cargo, moving the cargo, and unloading the cargo according to the plan, bill of lading, and any regulations or standards. Once the cargo is loaded, a manifest of the cargo is developed, and the bill of lading is executed. The status of the cargo is monitored and reported (typically to the GTN) during both the movement activity as well as the unloading activity. The shipper and/or the carrier will be responsible for the loading of the cargo, while the carrier is responsible for both the movement and the unloading of the cargo. The major output of this activity is the incoming cargo to the POD and completed movement documentation. | |
| RELEASE CARGO | The Release Cargo activity consists of all of the necessary action required to clear the incoming cargo and documentation through customs. The local customs personnel will perform this activity in accordance with local customs regulations with respect to the type of cargo requiring release. Local customs may in fact release the cargo conditionally to the consignee. A conditional release is one where the shipper or carrier must perform additional activities prior to the finalization of the movement process. At the completion of this activity, the cargo is released and the necessary paperwork is finalized to complete the movement activity. | |
| MONITOR CARGO STATUS | The Monitor Cargo Status activity is an iterative process that consists of all of the actions necessary to report the current cargo position within the Defense Transportation System to the Global Transportation Network (GTN). The GTN is an automated system that provides the integrated transportation data necessary to accomplish transportation planning, command and control, patient movement, and intransit visibility of units, passengers, and cargo during peace and war. Status reports are generated during this activity in response to report requests. |
| Determine Cargo Specific Requirements | The Determine Cargo Specific Requirements activity consists of all actions necessary for the shipper to develop the initial paperwork for the cargo movement. The shipper, utilizing the shipping plan as the major guide, and adhering to the required regulations and standards where required, will develop the initial paperwork that will satisfy the clearance authority, as well as any paperwork required for the readying and staging of the cargo. The major output of this activity includes the cargo preparation checklist that will be used to ready the cargo, and the TCMD. The TCMD, which is prepared by the shipper, lists all of the data about a shipment, and may be prepared in several different formats. All cargo, except unaccompanied baggage (Code-J), must have a completed TCMD. The ATCMD provides the clearance authority, port, receivers, and others with advance notice of shipment information necessary to process the cargo through the Defense Transportation System. | |
| Make Ready | The Make Ready activity consists of all of the necessary actions required to prepare the cargo for staging. The shipper, guided by the cargo preparation checklist will prepare the cargo for staging at the POE. The shipper may have some interaction with the carrier prior to staging to determine carrier-specific staging requirements prior to the actual staging activity. The Make Ready activity also includes palletization of the cargo, if required. | |
| Staging | The Staging activity consists of all of the necessary actions required to prepare the cargo for loading onto the transportation equipment (plane, ship). The carrier, utilizing the plan as a guide, will organize the cargo in the order that it will be loaded onto the transportation equipment. |
| Load | The Load activity consists of all of the necessary actions required to place the cargo onto the transportation equipment. Utilizing the plan and the bill of lading as a guide, and considering any necessary regulations and standards, the carrier, shipper, and POE personnel will load the cargo. Necessary documentation required for the movement of cargo is also finalized at this point. Those documents include the executed bill of lading as well as the completed manifest. | |
| Move | The Move activity consists of all of the necessary actions required to transport the cargo from the POE to the POD. The carrier, utilizing the plan as a guide, will move the cargo to the POD as stated by the manifest and executed bill of lading. | |
| Unload | The Unload activity consists of all of the necessary action to remove the cargo from the transportation equipment and prepare it for release by the local customs personnel. The carrier, aided by POD personnel if required, will off-load the cargo, and finalize any documentation necessary at the POD for the successful release of the cargo from customs. |
| Bill of Lading | Two Types: Commercial Bill of Lading (CBL) and Government Bill of Lading (GBL).
Commercial Bill of Lading - A contract between shipper and carrier, where the carrier furnishes transportation services for the cargo. Government Bill of Lading- Same as a CBL with the addition of a signature block provided for the Releasing Officer, Issuing Officer, and Government agency against which the charges are billed. Appropriation charges, department symbol, authority for the shipment, a showing as to actual delivery, and the extent of loss and damage are additional information blocks included. |
| Cargo | The items to be shipped. Includes both materiel and personnel. |
| Cargo Preparation Checklist | A list prepared in accordance with regulations and standards and detailing how the cargo should be prepared for loading to fulfill the requirements stated in the GBL and plan. |
| Carrier | Contracted agent responsible for transporting the cargo. |
| Clearance Authority | The activity that controls and monitors the flow of cargo into the airlift or water transportation system. |
| Executed Bill of Lading | The completed bill of lading. |
| GTN | Global Transportation Network - Repository of transportation information that can provide status of cargo. |
| Incoming Cargo and Documentation | The cargo and documentation that arrives at the release authorization point. |
| Loaded Cargo | Cargo that has been readied for shipment. |
| Local Customs | The local customs regulatory officials that will approve the release of the cargo. |
| Local Customs Regulations | Those rules and regulations that the local customs officials must follow in order to release the cargo. |
| Manifest | List of loaded cargo. |
| Moved Cargo | The cargo that arrives at the release approval point. |
| Plan | The previously developed documentation that describes the rules, requirements, and actions necessary to ship the cargo. |
| POD | Port of Debarkation - The place where the cargo is removed from the equipment that transported it ( ship, airplane) and placed on shore. |
| POE | Port of Embarkation - The place where the cargo is loaded onto the equipment that will transport it to its destination. |
| Preparation Status | The information that is transmitted to the shipper (and GTN) that details the status of the cargo within the transportation network. |
| Prepared Cargo | The cargo that has been readied for staging. |
| Regulations/Standards | The rules that govern the preparation and transportation of the cargo. |
| Released Cargo | Customs cleared cargo that has been approved for release. |
| Release Condition Response | The actions that the shipper or shipper's agent performs to satisfy local customs personnel during a conditional release. |
| Release Condition | Conditions that need to be met for the cargo to be released. |
| Release Status | The current release state of the cargo. |
| Report Request | The call for notification from authorities to ascertain the cargo's status. May be electronic or paper response. |
| Shipper | The "owner" of the cargo to be transported. |
| Status Report | The report that delineates the current whereabouts of the cargo, its condition, and release status. May also include Estimated Time of Arrival (ETA). |
| TCMD | Transportation Control Movement Document - Provides clearance authority, ports, etc. with information necessary to process shipments, and is the basis for the preparation of manifests. |
| Transportation Status | The current position of the cargo within the transportation system. |
| Transport Ready Cargo | Cargo that has been packaged and prepared for shipment. |
Both The United States Customs Service (USCS), and the Department
of Transportation (DOT) are working towards the end goal of having
a paperless working environment. A large portion of this effort
is now being accomplished to electronically transfer overseas
shipping documents. Sections 3.1, 3.2, and 3.3 very
briefly describe some of the work now in process.
The United States Customs Service continues to move forward in
their accounting for and inspecting of imported and exported materials.
USCS is continually improving their processes and are now using
an Automated Commercial System (ACS) to track, control, and process
all commercial goods imported into the United States. It is also
understood that the USCS is also responsible for the status and
accountability of individuals traveling both in and out of the
United States.
The USCS is also working with other Government agencies to electronically
transfer data on customs transactions as well as receive data
on agency cargo status and authorizations for cargo disposition.
Using such information as departure, arrival, and closure dates,
cargo is tracked from the port of unlading to the port of entry
or exportation. More specifically, in the area of exportation,
the USCS is currently involved with the Foreign Trade Division
of the Bureau of Census (Commerce), the Bureau of Export Administration
(Commerce), the Office of Defense Trade Controls (State), other
federal agencies, and the export trade community in a joint venture
designed at collecting and sharing data by using the Automated
Export System (AES).
The AES will collect commodity data for all means of transportation.
Plans are to collect transportation data for rail, truck, and
air by December, 1997. Some export shipment and vessel data is
already being transmitted electronically from exporters or their
agents. The overall goal is to use a system that allows for the
electronic declaration filing of export documents. Additionally,
it is the intent of the USCS to have a paperless program that
controls import and export transactions, eliminating the need
for paper documentation.
The Department of Transportation serves as the focal point in
the Federal Government for the coordinated national transportation
policy. Like the USCS, they too are moving forward in efforts
to electronically share transportation information.
The DOT specializes in many areas such as air traffic control, highway engineering, rail safety, hazardous materials, auto and truck safety, and program administration. Little is known about the DOT at this time due to efforts being focused on other Federal Agencies in Task 1. Information aquired in the future will expand upon the DOT's mission, and its current and future efforts to interface with the international transportation community.
Current environments dictate change in both organizations. With
the dawning of the "Internet" and international electronic
commerce it is now imperative that both organizations possess
the capability to communicate in a real time environment and exchange
electronic information. The world is becoming smaller due to
electronic real time exchange of information and electronic commerce.
Both businesses and agencies are being forced to automate systems
and improve capabilities in order to be competitive in today's
marketplace.
As previously mentioned, the USCS is already well on its way to electronically exchange information with other federal and international agencies as well as electronically transferring vital import and export documentation. Future efforts will expand upon the current and future USCS and DOT activities to expand their internal and external capabilities.
The following sections describe existing military component transportation
roles, Status of Forces Agreements (SOFA), as well as their procedures
and interfaces to customs.
USTRANSCOM employs its service components--Military Traffic Management
Command (MTMC), Military Sealift Command (MSC), and Air Mobility
Command (AMC) to satisfy the DoD's worldwide transportation needs.
USTRANSCOM integrates all transportation resources while its
three components execute the missions. MTMC, the land component,
orchestrates movement of equipment, vehicles, weapon systems,
supplies, ammunition, and troops within their area of operation.
It uses surface transportation assets to accomplish its mission.
To enhance its future operations, MTMC is pursuing the single
port management concept, similar to the Tanker Airlift Control
Element (TALCE) employed by AMC. The sea component of USTRANSCOM,
MSC, provides ocean transportation for DoD cargo supporting U.S.
forces around the world. Using more than 145 ships organized
in four major area commands, MSC fulfills over 90 percent of the
DoD's total transportation requirements during both peace and
war[4].
The current mission statement for MTMC is to:
"Support the Department of Defense components and the mobilization
community worldwide during peace and war with proactive planning,
immediate response to crisis, and 21st Century technologies."[5]
The AMC mission statement encapsulates who AMC is and what AMC
does. Everyone associated with air mobility is part of a cohesive
team that makes the AMC mission happen. AMC is responsive to their
customers' needs and strives to employ resources in the most effective
and efficient ways possible. AMC's total commitment to quality
is how AMC will continue to improve process and provide effective,
reliable, and efficient services. Global Reach, the ability to
project and sustain forces worldwide, is unique to the United
States of America. AMC operates around the world, around the clock,
in support of America's national interests, every day.[4]
The USTRANSCOM component that fulfills 90% of the DoD's total
transportation requirements has the simplest mission statement
of all USTRANSCOM components. It states, simply:
"Service to Customers."[6]
One of the largest retail merchandise stores worldwide, AAFES
has the following mission statement:
"Provide Quality Merchandise and service at uniformly low
prices to active duty military, Guard and Reserve members, Military
retirees and family members, regardless of where they're stationed
and to donate 100 percent of our earnings back to our customers
for quality of life programs and modern places to shop."[7]
With the United States maintaining the largest contingent of
troops overseas and specifically in North Atlantic Treaty Organization
(NATO) countries, it became clear that an agreement was needed
that defined the status of these forces. On September 19, 1951,
the Status of Forces Agreement (SOFA) between NATO and the United
States of America was signed in Washington, D.C. This agreement
addresses problems associated with and arising from the stationing
of armed forces of one NATO country in the territory of another.
The major provisions addressed in the agreement are:
These provisions are still in effect today and facilitate the
stationing and logistical support of troops outside the United
States. This section highlights key provisions of the SOFA that
relate to the import, acceptance, and maintenance of troops and
materials within the respective countries.
No SOFA agreements with the United Kingdom have been found as
of the date of this preliminary report. Any additional information
found will be included in the "Final Overseas Shipment Operating
Concepts and Military and Commercial Foreign Customs Interfaces"
document.
The United States may station troops in the Netherlands as mutually
agreed upon and for the furtherance of the objectives of NATO.
The Netherlands will also provide necessary land and utilities
to facilitate the stationing of United States troops. United
States forces, its civilian components, and their dependents may
import duty free new and used personal effects including furniture
for a period of six months from the date of first arrival.
United States forces may procure supplies, facilities, and services
directly from local sources in the Netherlands. The United States
forces may also import free of duty reasonable quantities of supplies
and other goods for use by members of the United States forces,
civilian components, and their dependents and distribute them
through official activities.
United States military exchanges and commissaries, officers clubs,
and similar activities may be established and may operate without
being subject to taxes. Title to removable equipment, materials,
and supplies brought into, or acquired in, the Netherlands by
or on behalf of the United States in connection with the SOFA
will remain in the United States Government. This property will
be free from all duties, inspections, and other restrictions,
whether on import or export, and free of all taxes.
The customs office of entry shall, in general, allow goods to
be forwarded directly to the agency of the force or the civilian
component authorized to receive them under the simplified procedure
provided for by German customs legislation. The official certificate
shall, in that case, serve as a customs document during transportation.
The customs office of entry shall certify clearance on all copies
of the official certificate and retain one copy.
The customs office of entry shall, in general, permit direct transportation
of the goods, under the simplified customs procedure provided
for in the German customs legislation (to the German customs office
of exit).
With respect to facilities and areas which are to be used by United
States armed forces for limited periods of time, the Joint Committee
shall specify, in the agreements covering such facilities and
areas, the extent to which the provisions of this agreement shall
apply. The SOFA states:
"All materials, supplies and equipment imported by the United
States armed forces or the authorized procurement agencies of
the United States armed forces, or by the organizations provided
for in Article XV, for the official use of the United States armed
forces, the civilian component, and their dependents, and materials,
supplies and equipment which are to be used exclusively by the
United States armed forces or are ultimately to be incorporated
into articles or facilities used by such forces, shall be permitted
entry into Japan; such entry shall be free from customs duties
and other such charges.
United States and foreign vessels and aircraft operated by, for,
or under the control of the United States for official purposes,
shall be accorded access to any port or airport of Japan free
from toll and landing charges."
No SOFA agreements with Hungary have been found as of the date
of this preliminary report. Any additional information found
will be included in the "Final Overseas Shipment Operating
Concepts and Military and Commercial Foreign Customs Interfaces"
document.
No SOFA agreements with Spain have been found as of the date of
this preliminary report. Any additional information found will
be included in the "Final Overseas Shipment Operating Concepts
and Military and Commercial Foreign Customs Interfaces" document.
No SOFA agreements with Italy have been found as of the date of
this preliminary report. Any additional information found will
be included in the "Final Overseas Shipment Operating Concepts
and Military and Commercial Foreign Customs Interfaces" document.
The Republic of Korea grants, and the United States of America
accepts, the right to dispose United States land, air, and sea
forces in and about the territory of the Republic of Korea as
determined by mutual agreement.
Members of the United States armed forces, the civilian component,
and their dependents shall be subject to laws and regulations
administered by the customs authorities of the Republic of Korea.
All materials, supplies, and equipment imported by the United
States armed forces (including their authorized procurement agencies
and their non-appropriated fund organizations provided for in
Article XIII), for the official use of the United States armed
forces, the civilian component, and their dependents, and materials,
supplies and equipment which are to be used exclusively by the
United States armed forces or are ultimately to be incorporated
into articles or facilities used by such forces, shall be permitted
entry into the Republic of Korea; such entry shall be free from
customs duties and other such charges.
United States and foreign vessels and aircraft operated by, for,
or under the control of the United States for official purposes
shall be accorded access to any port or airport of the Republic
of Korea free from toll and landing charges.
No SOFA agreements with Saudi Arabia have been found as of the
date of this preliminary report. Any additional information found
will be included in the "Final Overseas Shipment Operating
Concepts and Military and Commercial Foreign Customs Interfaces"
document.
The following background information illustrates the evolution
of military organizations involved in transportation over the
past several years to arrive at current base locations, and operating
posture. Most of the changes have been the result of changing
military operational goals, and unrest in many foreign countries.
Table 4.3 -1 lists the unit and location for the components of
USTRANSCOM in the nine countries delineated in the Statement of
Work (SOW).
|
United Kingdom | 1320th Medium Port Command Unit 1035, Box 460 APO AE 0464-5460 (MTMC Terminal United Kingdom) Felixstowe, United Kingdom | 627 Air Mobility Support Squadron RAF Mildenhall, United Kingdom | DET London, England |
Netherlands | 1318th Medium Port Command PSC 72, Box 187 APO AE 09715-5220 Rotterdam, Netherlands (MTMC Terminal Benelux) w/ Rhine River terminal in Mannheim, Germany | No information found at this time | MSCO Benelux, Netherlands |
Germany | 1325th Medium Port Command Unit 22419 APO AE 09069-4463 Bremerhaven, Germany (MTMC Terminal Bremerhaven) | 621 Air Mobility / 623 Air Mobility Support Squadron
Ramstien AB, Germany 626 Air Mobility Support Squadron Rhine-Main AB, Germany | No information found at this time |
Hungary | No information found at this time. | No information found at this time |
No information found at this time |
Spain | MTMC unit relocated to Saudi Arabia | 625 Air Mobility Support Squadron NAS Rota, Spain | No information found at this time |
Italy | 1321st Medium Port Command APO AE 09613 Livorno, Italy (MTMC Terminal Italy) w/ an outport in Lisbon Portugal | No information found at this time |
COMSCEUR CAPT. J. Meyers 44-171-355-5307 Naples, Italy |
South Korea | 1317th Medium Port Command Unit 15179 APO AE 96259-0268 Pusan, South Korea | 631 Air Mobility Support Squadron Osan AB, Korea | MSCO Korea |
Japan | 1314th Medium Port Command Unit 35144 APO AP 96376-2900
Okinawa, Japan 1316th Medium Port Command PSC471 FPO AP 96347-2900 Yokohama, Japan | 630 Air Mobility Support Squadron
Ykota AB, Japan 633 Air Mobility Support Squadron Kadena AB, Japan | COMSCFE CPT. L. Diddlemyer 81-311-769-6318
Yokohama, Japan MSCO Okinawa |
Saudi Arabia | 1311th Medium Port Command Bahrain, Saudi Arabia 2 other detachments in Kuwait, and Qatar | No information found at this time. |
MSCO Southwest Asia |
Since July 1983, Headquarters MTMC Europe has been located in
Capelle aan den Ijssel, adjacent to the city of Rotterdam in The
Netherlands. Today, MTMC Europe is a regional transportation
command with manned sites in eleven nations in the European, Mediterranean,
and Middle East areas. Its ports handle over three million tons
of cargo per year. The command executes MTMC's worldwide missions
in the U.S. European Command, and parts of the U.S. Atlantic Command
and U.S. Central Command's area of operations.
On October 1, 1991, the Azores was transferred to MTMC Europe.
On December 2, 1991, a temporary MTMC terminal located in Ad
Dammam, Saudi Arabia, took on the difficult mission of returning
unit equipment and containers. This happened with strict time
constraints and minimum staffing under MTMC Europe. On June 25,
1992, MTMC Terminal Saudi Arabia was deactivated.
MTMC Europe was a subordinate of Headquarters MTMC until 1992.
On July 10, 1992, MTMC Europe was realigned under MTMC Eastern
Area, Bayonne, New Jersey. As part of MTMC, TTU Spain, Barcelona
was added to MTMC Europe in January, 1977, MTMC Europe's Outport
Barcelona was officially closed on September 30, 1992. Outport
Barcelona's closure was due to the reduction of U.S. Air Force
presence in Spain.
On October 1, 1992, the overall responsibility of the U.S. Army
Europe (USAREUR) organization "Joint Traffic Management Agency
(JTMA)" at Oberursel, Germany, was transferred to MTMC Europe.
Within the MTMC organization, the control of JTMA was delegated
to the Directorate of Inland Theater Transportation (ITTD), formerly
the Personal Property Directorate (PPD).
On September 30, 1994, MTMC 1311th Medium Port Command (MTMC Terminal
Spain), located at Rota, Spain, was deactivated due to the reduction
of the U.S. Air Force presence in Spain. In April 1996, MTMC
Europe's Terminal Southwest Asia in Bahrain had been officially
activated as MTMC's 1311th Medium Port Command. The terminal
has three detachments: in Saudi Arabia, Kuwait, and Qatar. On
October 1, 1996, MTMC Europe became a subordinate area command
of Headquarters, MTMC in Falls Church, Virginia.[8]
The entire globe is Air Mobility Command's area of responsibility.
During calendar year 1995, the men and women of the command flew
into all but seven nations of the world. Command aircraft during
the year flew over 72,000 missions and delivered over 1.8 million
passengers and 720,000 short tons of cargo. Tankers off loaded
137 million gallons of fuel. Even on a slow day, AMC personnel
can anticipate flying between 175 and 200 airlift and air refueling
missions.
In recent years, AMC airlifters and tankers have been called upon
to perform their combat mission to project power and to display
national resolve. Examples include transport aircraft loaded
with troops en route to Haiti when the invasion was called off.
In Operation Southern Watch, airlift and air refueling helped
impose a no-fly zone over southern Iraq. For Operation Vigilant
Sentinel, which augmented Southern Watch, air mobility ensured
a timely response to political turmoil in Iraq and the potential
of Iraqi military aggression against the states of Southwest Asia.
The command has supported implementation of many varied national
objectives. In support of arms limitations, for example, air
mobility aircraft have airlifted nuclear inspectors in compliance
with the Strategic Arms Reduction Treaty. Transport and tanker
aircraft have flown in support of the campaign to stop illegal
drug trafficking.
Efforts to build bridges to the former Soviet Bloc have been supported
by Air Mobility Command. Through an on-going program called Provide
Hope, AMC airlifts humanitarian cargo to the former Soviet republics.
In Cooperative Nugget, the command transported representative
army units from 14 nations of the former Soviet Union and Warsaw
Pact to the United States for an exercise with U.S. forces; the
exercise was part of the Partnership for Peace program designed
for nations of the former Soviet Bloc seeking closer ties with
NATO. During Peace Shield '95, AMC airlifted American soldiers
to the Ukraine for a joint exercise with Ukrainian troops. In
an exercise of U.S. and Russian troops in the United States called
Peacekeeper '95, Russian and AMC mobility aircrews conducted joint
maneuvers.
AMC flies humanitarian missions virtually every day of the year. An airlift of relief supplies to Bosnia known as Provide Promise surpassed the Berlin Airlift as the longest sustained humanitarian airlift, while at home, command aircraft brought medical supplies, equipment, and investigators to Oklahoma after a terrorist bomb destroyed a federal office building in Oklahoma City. Humanitarian missions have also evacuated noncombatants as well as seriously ill or injured patients. In Operation Assured Response, foreign nationals were extricated from Liberia as factional fighting produced anarchy. Emergency medical evacuations involved people from all stations in life, from an ill President of Fiji, to shark-attack victims, to children who ingested poison. Additional recent operations which show the scope of AMC's global reach mission include:
| PROVIDE COMFORT | Relief to Kurds and no-fly zone in northern Iraq. |
| DENY FLIGHT | No-fly zone over Bosnia. |
| SAFE HAVEN | Support move of Cuban refugees to Panama. |
| PROJECT SAPPHIRE | Airlift weapons grade uranium from Kazakstan to the United States for safekeeping. |
| VIGILANT WARRIOR | Augment Southern Watch forces to defend Kuwait in response to Iraqi troop movements. |
| UNITED SHIELD | Support redeployment of last UN forces from Somalia. |
| SAFE PASSAGE | Repatriate Cuban refugees in Panama. |
| SAFE BORDER | Support peacekeeping mission following a border dispute between Peru and Ecuador. |
| CARIBBEAN EXPRESS | Relief to U.S. Virgin Islands following hurricane Marilyn. |
| JOINT ENDEAVOR | Deployment and support of NATO forces in Bosnia. |
|
ASSURED RESPONSE | Noncombatant evacuation operation (NEO) of Americans and others from Monrovia, Liberia, following the civil war. |
| DECISIVE ENDEAVOR | UN peace implementation effort in Croatia. |
Military Sealift Command (MSC) area commands continue to have
key roles in the newlystructured MSC. Led by Navy captains
and ultimately located in Norfolk, Virginia; Pearl Harbor, Hawaii;
Yokohama, Japan; and Naples, Italy; the area commands will be
the MSC face to the fleet. Area commanders will exercise operational
control and provide ship husbanding and, in the case of MSC Europe
and MSC Far East immediate, priority repair for all MSC ships
in their areas of responsibility.
Area commands will work with all MSC customers to help develop
requirements and provide on-site assistance, as needed. The overseas
area commands will continue to provide ocean and intermodal transportation
toward requirements that originate in their respective areas of
reporting.
The U.S. area commands will reduce significantly in size during
the coming years to less than 80 employees each, down from more
than 550 at MSC Atlantic in Bayonne, NJ, and 470 at MSC Pacific
in Oakland, CA. In the near term, most of the displaced area command
employees will remain in their same geographic areas, and some
will transition to positions that will be colocated with
the area command, but will report to MSC program managers.
MSC Mid-Atlantic, located in Norfolk, VA, will be disestablished
and most personnel will move into Naval Fleet Auxiliary Force
or Special Mission Program project offices located in the Norfolk
area. The reduced MSC Atlantic staff will move to the Norfolk
area when funding becomes available, but not later than 1998.
The Fast Sealift Squadron staff will remain located in New Orleans;
however, the Navy captain serving as the squadron commander and
contractor's on scene representative responsible for ship readiness
will be replaced by a civilian headquartered in Washington, DC,
within the Sealift Program. MSC Atlantic will retain offices
in Port Canaveral, FL and in Panama.
MSC Pacific, currently located in Oakland, CA., with offices in
San Diego, CA., and Pearl Harbor, HI, will relocate to Pearl Harbor,
closer to its primary customer, the Commander-in-Chief, Pacific
Fleet. MSC Pacific will retain an office in San Diego and in
Concord, CA.
The size, structure and functions of both MSC Far East in Yokohama
and MSC Europe will remain largely unchanged by the reinvention.
MSC Europe, currently located in London with a sub-area office
in Naples, will move to Naples to be closer to its customers but
retain a detachment in the London area for transportation, as
well as offices in The Netherlands and in Southwest Asia in Bahrain.
MSC Europe also has operational command of Maritime Prepositioning
Squadron One, in the Mediterranean.
MSC Far East remains in Yokohama, Japan, with offices in Okinawa,
Korea, Diego Garcia and Guam. Maritime Prepositioning Squadrons
Two and Three report to MSC Far East, as does the MSC detachment
in Singapore.[9]
AAFES services active duty military, National Guard members, and
reservists, and their dependents. Additionally, AAFES does business
and buys goods or supplies from some 12,600 United States firms.
Approximately 94% of these are small businesses. The sale of
some categories of retail merchandise is limited within CONUS
by the Armed Service Exchange Regulations approved by the United
States Congress. There are no limitations on retail merchandise
sold in overseas exchanges.
Fourteen distribution centers (DCs) are strategically located
to support exchange facilities worldwide. Five DCs are located
within CONUS, three in Europe, four in the Pacific, one in Hawaii,
and one in Panama. The DCs receive, process, and ship a variety
of general and specialized merchandise. The following is a list
of DCs located in CONUS.
The Atlanta (DC)
Forest Park
Atlanta, Georgia
Provides general merchandise support to exchanges located in the
southeastern part of the United States.
The Oakland (DC)
Oakland, California
Distributes general merchandise support to stores west of the
rockies, including Alaska, and throughout the Pacific.
The Waco (DC)
Waco, Texas
Supports exchanges east of the rockies and west of the Mississippi.
The Dan Daniel (DC)
Newport News, Virginia
Serves stores along the northeastern seaboard of the United States
and also exchanges in Europe with general merchandise support.
The Fashion Distribution Center (FDC)
Dallas, Texas
Distributes women's, men's, and children's fashion and seasonal
clothing to exchanges world wide.
The other DC's located in Europe, the Pacific, Hawaii, and Panama
provide local support for high turnover items and also serve as
transship points for receipt of store orders from DCs in the United
States.
AAFES works in and through the Defense Transportation System (DTS).
AAFES has been working closely with USTRANSCOM for the past fourteen
months on current transportation and billing practices. AAFES
believes they have the best distribution system in the world.
On February 2, 1996, USTRANSCOM Command and Control (TCJ5) presented
USTRANSCOM's Streamlining Work Group (SWG) recommendations to
Commander-in-Chief Transportation (CINCTRANS). Included among
these recommendations was the establishment of a JTMO for intermodal
cargo, and container operations at HQJTMO. The SWG's intent was
to eliminate fragmented traffic management by combining it into
the JTMO traffic management functions currently performed at MTMC,
MSC, and AMC.
By a memorandum dated February 5, 1996, Deputy CINC (DCINC) directed
MSC and MTMC to develop a joint concept of operations (CONOPS)
for the JTMO. MSC and MTMC developed separate CONOPS and presented
a JTMO concept brief to CINCTRANS, who approved establishment
of the JTMO for surface intermodal cargo and container movements
at HQMTMC.
On May 22, 1996, USTRANSCOM established direction responsibilities
for the formation of Joint Traffic Management Office at Headquarters
MTMC. The mission of the office will be to serve as the single
USTRANSCOM focal point for the execution of surface intermodal
movements within the defense transportation system.[10]
MTMC's role is essentially the management of transportation resources,
as distinguished from the carrier operational roles of AMC and
MSC. The operational carriers, AMC and MSC, must contend with
foreign customs laws and regulations as stated by the SOFA for
that host nation. All interland cargo movement will be coordinated
through MTMC/JTMO. The JTMO must contend with all local laws and
regulations for intermodal transportation within the host country.
The JTMO will receive its validated requirements from the Mobility Control Center at the USTRANSCOM Joint Movement Control Group (JMCG), and then apply its expertise to determine the most efficient methods of moving the specified numbers of personnel and quantities of materials to the locations where they are needed in the most timely and efficient manner.
AAFES retail merchandise and food of foreign origin to be stocked
and sold in the overseas exchanges are primarily bought by Sales
Directorate's Europe buyers from sources in Europe. The Sales
Directorate's Purchasing Pacific Division handles sources in the
Pacific. A variety of customer service concessions are operated
under contract with individuals and businesses. Barber and beauty
shops, laundry and dry cleaning, optical shops, flower shops,
watch repair, amusement, music and beverage vending, and full-line
product vending are examples of some of the services provided.
AAFES operates 10,878 facilities worldwide, supporting 25 separate businesses in 25 countries and overseas areas, and in every state in the union. These include 1,423 retail facilities (172 are main stores of shopping centers) and 218 military clothing stores on Army and Air Force installations around the world.[7]
The following sections briefly explain current commercial foreign
customs procedures, requirements, and interfaces relating to the
nations identified below. In order to ensure validity and accuracy
of data, a number of reliable information sources were queried
in order to obtain information used in this section. Sources
visited and interviewed within the United States Federal Government
include the United States Commerce Department, the United States
Customs Service, the Department of Defense, as well as civilian
commercial international carriers, and foreign embassies. Additionally,
other sources were used to validate the information shared and
to provide historical and reference information as needed. Those
sources include the Pentagon Library, the National Defense University
Library, and the monthly International Trade Reporter published
by The Bureau of National Affairs, Washington, D.C. A list of
agencies and embassies contacted and visited is provided in Appendix
B of this report. The content found in this section is a result
of interviews, research, and input from the above named agencies.
The format followed parallels that found in the International
Trade Reporter and it is with their consent that we use the format
and some portions of the content.
The United States Export Administration Regulations' interim rule
took effect in 1996 and restructures and reorganizes the Export
Administration Regulations. This is the mechanism which the
Bureau of Export Administration (BXA) imposes export and re-export
controls on items and activities within its jurisdiction. The
interim rule was written and clarifies the language in regulations,
simplifies their applications, and makes export control easier.
Although the rule took effect in April 1996, mandatory compliance
has been delayed until January 1, 1997.
The following is a list of procedures, requirements, export controls,
and interfaces for the United Kingdom, Netherlands, Germany, Hungary,
Spain, Italy, South Korea, Japan, and Saudi Arabia.
The United Kingdom is a member of the European Union (EU). Other
members include Austria, Belgium, Denmark, Finland, France, Germany,
Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal,
Spain, and Sweden. Together, they form a customs union that calls
for free trade, and the absence of customs duties and quotas on
trade among members. The following vital areas and key terms
are used to explain import requirements as they relate to the
host nation.
Tariff on imports from countries outside the EU has been improved,
creating the so-called common customs tariff, now referred to
as the Common External Tariff (CXT). CXT rates of duty are uniformly
applied to imports into EU countries from non-EU sources. Exceptions
are for imports from associated countries and countries having
special agreements.
Import duties are payable in British currency.
In certain instances, import duties are levied on a specific basis.
When duties are levied on weight, the dutiable weight is considered
the net weight. The term "gross weight" includes packaging,
and the term "net weight" excludes both the inner and
outer packaging. In some cases, a net tare is used to arrive
at a net dutiable weight.
Imports are subject to a value-added tax payable on importation.
This is based on the Cost, Insurance, and Freight (CIF) duty-paid
value of the goods. The standard rate is currently 17.5%. No
tax is levied on certain essentials, such as food stuffs, animal
foodstuffs, medicines, children's clothing and shoes, books, newspapers,
and fuels. A reduction in tax liability is provided for imports
such as capital goods that are used for, or will be used for,
business purposes under specified conditions.
The United Kingdom has a well-developed network of import channels.
Their import channels vary based upon the products involved,
and individuals affecting such action commonly are commission
agents, specialized importers, brokers, and import distributors.
Some firms elect to appoint one distributor to cover the entire
country while other firms may elect to appoint a number of distributors
for greater market penetration. Many United States firms maintain
their own organizational structure in the United Kingdom. Others
may appoint agents that may be willing to handle additional items
on a commission basis.
The United Kingdom has over 400 ports, with some of the largest
being London, Heathrow, Belfast (Northern Ireland), Gatwick, and
Stanstest. Also included in this number of ports are the major
airports.
There are a number of free trade zones within the United Kingdom.
These free trade zones were established in 1983. Goods entering
the zones are treated for customs purposes as being outside the
customs territory of the United Kingdom. Additionally, goods
entering the free port are subject to simplified customs procedures,
among other non-tariff advantages. Activities permitted in the
free ports include loading, unloading, transshipment, storage,
stockholding, sampling, packing, labeling, and other forms of
handling related activities.
To enter goods, British law requires that a written declaration
entry form be submitted to the British customs authorities. Similar
to other nations, the British Government allows goods to be imported
temporarily without payment of duties and taxes. These are normally
goods that are used in the production or manufacture of a product
for export. Goods that are imported with the intention of being
stored in bonded warehouses must be cleared through customs.
This is normally done by the use of a special customs-entry form.
The storing facility/bonded warehouses are all approved by the
British customs authorities, and are operated either publicly
or privately.
In addition to the storing facilities/bonded warehouses, there
are also the Queen's warehouses. These warehouses are primarily
used for the safe storage of goods in custody or for the security
of duty owed. Many goods found in these warehouses are a result
of forfeiture, abandonment, or not being entered within allowable
time limits. Once the owner pays the duties, taxes, and expenses,
he/she can retrieve their held goods.
Special notices issued by the British Commissioners of Customs
and the Excise govern the procedures and conditions by which goods
temporarily entering the United Kingdom can be duty free. Many
items that enter the United Kingdom are there temporarily and
are being re-exported. The time frame for their staging within
the United Kingdom is usually six to twelve months from the date
of import. Extensions can also be obtained if needed. Additionally,
many items entering the United Kingdom may enter duty free. Examples
of these are machinery or equipment imported on loan or lease
for temporary use within the United Kingdom.
The following highlights and addresses all shipments into the
United Kingdom regardless of value and/or mode of transportation.
Listed below is key documentation and related processes needed
in order to properly transport and account for imported cargo.
The Netherlands is a member of the European Union (EU). Other
members include Austria, Belgium, Denmark, Finland, France, Germany,
Greece, Ireland, Italy, Luxembourg, Portugal, Spain, Sweden, and
the United Kingdom. Together, they form a customs union that
calls for free trade, and the absence of customs duties and quotas
on trade among members. The following vital areas and key terms
are used to explain import requirements as they relate to the
host nation.
Tariffs on imports from countries outside the EU have been improved,
creating the so-called common customs tariff, now referred to
as the Common External Tariff (CXT). CXT rates of duty are uniformly
applied to imports into EU countries from non-EU sources. Exceptions
are for imports from associated countries and countries having
special agreements.
EU members' trade is duty-free, and there are relatively few special
duties. If such duties are levied, they are based on the unit
volume or length, the number of units imported, or the net weight
or the gross weight minus a specific tare allowance.
There is no customs surcharge in the Netherlands. There is, however,
a Value Added Tax (VAT). This tax is put on all domestic and
imported goods at every stage of manufacturing distribution.
The VAT is currently 17.5%. A rate of 6% is levied on certain
essentials, such as food stuffs, farm animals, designated medicines,
books, newspapers, oil, gas, electricity, water, and several other
goods. Excise duties are levied on such goods as wine, beer,
sugar, tobacco products, soft drinks, petroleum products, as well
as other domestic and imported goods.
Violations in regard to customs regulations could result in fines,
and/or fines and imprisonment.
The Netherlands has highly-developed import channels with agents,
distributors, and experienced importers. Importers and purchasers
handle a large percentage of imported communities and use their
own accounts in order to distribute goods throughout their country.
Foreign firms customarily have one exclusive representative for
the entire country. This is mainly because the Netherlands represents
a compact market, however the representative may appoint sub-agents
to cover sectors of the market if profit margin and sales volume
warrant.
The Netherlands principal ports are Amsterdam and Rotterdam.
The Utrecht and the Hague are reached by Rotterdam. Schipol Airport
is the main airport and it services Amsterdam. International airports
are also located at Groningen, Eelde, Zestienhoven for Rotterdam,
and Beek for Maastricht.
There are no free trade zones or free ports, and customs facilities
provide the same services that are provided in free trade zones.
Customs activities are found at the major ports and airports.
Goods entering the Netherlands may be declared for home consumption,
storage in bonded warehouse, transit, transportation to another
location for delivery, or for re-exportation.
Temporary exemptions from duty and taxes on goods for re-export
are granted if the goods remain in the same state for a specific
period of time. Security for those goods needs to be posted in
the form of a bond, cash deposit, or other means in order to satisfy
customs requirements. Import tax and duty is only charged on
those goods or products sold in the EU.
Whenever goods arrive in the Netherlands for transshipment, they
need to be registered with customs and their destination identified.
A bond must be posted with the Netherlands customs whenever a
transit passport is issued to a shipping agent or person designated
to be in charge of a ship's cargo. The goods are normally unloaded,
inspected by customs, and resealed if possible.
The Netherlands adheres to the Transit International Routier (TIR)
Customs Convention and accepts shipments from the United States
made in accordance with the TIR carnets. These carnets allow
goods (freight shipments) to cross international borders of member
nations without discharge from road vehicles or inspection from
customs at border point crossings. The convention also provides
coverage and security for goods under the TIR carnet.
The following highlights and addresses all shipments into the
Netherlands regardless of value and/or mode of transportation.
Listed below are key documentation and related processes needed
in order to properly transport and account for imported cargo.
The Republic of Germany is a member of the European Union (EU).
Other members include Austria, Belgium, Denmark, Finland, France,
Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal,
Spain, Sweden, and the United Kingdom. Together, they form a
customs union that calls for free trade, and the absence of customs
duties and quotas on trade among members. The following vital
areas and key terms are used to explain import requirements as
they relate to the host nation.
Tariffs on imports from countries outside the EU have been improved,
creating the so-called common customs tariff, now referred to
as the common external tariff. CXT rates of duty are uniformly
applied to imports into EU countries from non-EU sources. Exceptions
are for imports from associated countries and countries having
special agreements.
Import duties are payable in German marks. If foreign currency
is used for any reason, the currency is exchanged at the exchange
rate in effect at the time of clearance.
Only a few items are subject to specific duties, and all customs
transactions are conducted using the system of metric weights
and measures.
Germany levies no customs surcharges. A value-added tax is the
basic German indirect tax and a rate import tax is normally charged
on the total landed cost of items plus any applicable duty or
excise tax. A rate of 7% is used on most food, agriculture goods,
and printed materials. A rate of 15% is used on most non-agricultural
goods.
The majority of imports into Germany go through import houses,
import wholesalers, and other general importer-distributorships.
These organizations handle consumer and industrial supplies (except
bulk commodities) as well as smaller types of equipment.
With the unification of Germany, contracts with agents and distributors
still have the same legal requirements as when western Germany
was a separate nation. Brokers, sales agents, and manufacturers'
representatives play an important role in the importation and
distribution of all types of goods.
Germany has several principal ports of entry that include Wilhelmshaven,
Hamburg, Rostock-Uberseehafen, and Bremen. The major international
airports are Stuttgart, Munich, Hanover, Hamburg, Leipzig, Frankfurt,
Dusseldorf, Dresden, Cologne, Bonn, and Berlin (East and West).
German import taxes and duties become payable when goods are cleared
for domestic consumption. Certain operations are permitted within
the free trade zones. They are loading, unloading, sorting, storing,
stockholding, sampling, repackaging, labeling, and exhibiting,
as well as other forms of handling-related activities. The only
locations where these activities cannot be performed is Cuxhaven.
Only storage of goods is allowed to take place in Cuxhaven.
An application or special customer declaration must be filled
out at the port of entry before any goods can clear customs.
Once cleared, freight shipments are allowed to cross international
borders of TIR Convention member countries without discharge from
road vehicles or containers at border point crossings.
Imported goods can be stored in certified warehouses without payment
of duty and taxes. Stored goods may undergo normal handling to
ensure that appearance, marketability, and preservation are maintained.
Shipments are accepted under the transit international routier
carnet. Freight shipments are also allowed to cross international
borders of TIR convention members without discharge from road
vehicles or containers at border points by customs.
The following highlights and addresses all shipments into Germany
regardless of value and/or mode of transportation. Listed below
is key documentation and related processes needed in order to
properly transport and account for imported cargo.
Hungary uses a custom tariff system that is multi-column. Different
customs duties get applied to the product dependent upon their
origin. Additionally, Hungary adheres to Article VII of the General
Agreement on Tariffs and Trade.
Hungary uses the Harmonized System Convention and has adopted
the Harmonized Commodity Description and Coding System for tariff
classification.