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By: Brooke Driver
EGL, Inc. of Houston, Texas has agreed to pay $139,650 for alleged violations of the Cuban Assets Control Regulations, 31 C.F.R. part 515 (CACR) and the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (ITSR). During 280 transactions between the dates of April 19, 2005 and December 15, 2008, EGL s foreign affiliates provided freight forwarding services to and from Cuba, in violation of the CACR. The alleged violations of the ITR occurred between August 15, 2008 and October 27, 2008, when affiliates of EGL provided freight forwarding services for ten shipments that contained oil rig supplies to Aban VIII, an oil drilling rig off the Iranian coast owned by Petropars an affiliate of the National Iranian Oil Company.
While the company voluntarily disclosed the CACR violations, it did not disclose the ITR violations, resulting in a base fine of $206,889. The lowered settlement amount and the case s non-egregious classification reflect OFAC s consideration of the following:
- EGL had no history of prior sanctions violations
- EGL substantially cooperated with OFAC s investigation, including by entering into statute of limitations tolling agreements, and by producing responsive materials in a clear and organized fashion
- EGL took remedial measures to prevent future OFAC violations
OFAC s required fine of $139,650 was based on the facts that:
- The alleged violations of the CACR and the ITR by EGL resulted in significant harm to OFAC s sanctions programs
- EGL had reason to know that the Aban VIII was an oil rig operated by an Iranian company in Iranian waters
So what have we learned?
1. Be aware of the actions of your affiliates, because you are accountable for their mistakes.
2. Speak up to pay less: The government will take your cooperation into consideration when determining consequences.
3. Suspicion counts as knowledge: reason to believe that a violation may occur is reason enough for the government to dole out severe consequences.
This entry was posted on Tuesday, June 18th, 2013 at 10:50 am by Brooke Driver and is filed under 20131, Cuba2, Defense Trade Controls3, Defense Trade Controls4, Denied & Restricted Parties5, Denied & Restricted Parties6, Embargoes7, Export License8, Iran9, ITAR10, Licensing11, OFAC12, Shipping13, Terrorism14, Violations & Fines15, Violations & Fines16. You can follow any responses to this entry through the RSS 2.017 feed. Both comments and pings are currently closed.
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Transporting goods by sea remains the most common way to trade globally, but in Africa cargo spends an abnormally long time in ports before it is moved inland, presenting a serious obstacle to the successful integration of sub-Saharan economies in worldwide trade networks. The port of Durban, however, has managed to buck the trend.
A World Bank study, titled Why does cargo spend weeks in sub-Saharan African ports? Lessons from six countries1, found the average cargo waiting time to be 20 days and that more than half of the time needed to transport cargo from ports to hinterland cities in landlocked countries in sub-Saharan Africa is wasted because of the time it spent in ports.
The average cargo dwell time in Durban is four days, which is on a par with ports in East Asia and Europe.
The African Development Bank s definition of dwell time is the time cargo remains in a terminal s in-transit storage areas while awaiting shipment for export or onward transportation by road or rail for import.
Dwell time is one indicator of a port s efficiency: the higher the dwell time, the lower the efficiency. And longer dwell times have an adverse effect on economic growth.
Long transport times reduce trade
A 2012 working paper produced by the National Bureau of Economic Research, titled Time as a trade barrier2, concluded that longer transport times dramatically reduce trade and estimates that each day in transit is worth 0.6% to 2% of the value of the goods.
Long transit delays also significantly lower the probability that a country will successfully export its goods.
Africa s estimated infrastructure deficit of $48-billion a year is often singled out as the culprit for hampering trade in and around the continent, but reasons for bottlenecks are far more complex and a lot more challenging to resolve.
Shantayanan Devarajan, the World Bank s chief economist for the Africa region, says that long dwell times are in the interest of certain players in the system and that dealing with the proximate cause of the problem, such as the apparent lack of berths in African ports, is unlikely to trigger a solution.
Specifically, importers use the ports to store their goods; in Douala Cameroon, for instance, storage in the port is the cheapest option for up to 22 days, Devarajan wrote in the foreword of the World Bank study.
Customs brokers, meanwhile, have little incentive to move the goods because they can pass on the costs of delay to the importers. Worse still, when the domestic market is a monopoly, the downstream producer has an incentive to keep the cargo dwell times long as a way of deterring entry of other producers.
The evidence in the study shows that discretionary behaviours increase system inefficiencies and raise total logistics costs.
In most ports in sub-Saharan Africa, the interests of controlling agencies, port authorities, private terminal operators, logistics operators (freight forwarders) and large shippers collude at the expense of consumers, the report said.
Surveys demonstrate that low logistics skills and cash constraints explain why most importers have no incentive to reduce cargo dwell time as, in most cases, doing so would increase their input costs.
Moreover, some terminal operators generate large revenues from storage, and customs brokers do not necessarily fight to reduce dwell time because time inefficiency is charged to the importer and eventually to the consumer.
Durban port is considered a good benchmark for sub-Saharan ports. Its average four-day waiting period for import and export cargo is much closer to best practice in East Asia and Europe, which is a three- or four-day waiting period.
South Africa s commercial ports have been placed firmly in the hands of the state through Transnet. With the exception of these ports and Mombasa in Kenya, all other ports surveyed in the study are run by private container terminal operators.
Lessons from the Durban port
The demand at South African ports surpasses all countries in East and Southern Africa and has a critical role to play in the international trade landscape for the region, according to a 2011 World Bank working paper.
It said Durban port could teach sub-Saharan African ports a few lessons namely that the onus was on public sector players such as customs and the ports authorities to put pressure on the private sector of port users to comply and reduce cargo dwell times.
Prohibitive charges for storage, coupled with strict enforcement and the possibility to preclear with customs with advantages attached to it and service level agreements binding both parties are critical tools for the reduction of cargo dwell time, the paper said.
In the late 1990s, Durban port was notoriously inefficient with high levels of congestion, characterised by long berthing delays for container vessels, long train turnaround times in the port and long queues for road trucks, which resulted in dwell times of six to seven days on average.
But in 1998, the paper said, shipping lines lost their patience and introduced a vessel delay surcharge.
This was a wake-up call for Transnet Port Terminals and the National Port Authority. A committee was created involving the port stakeholders with a defined strategy and several measures, which seem to have had the most important impacts.
Major stakeholders acknowledge that the introduction of the punitive storage charge after day three is probably the most important single factor affecting dwell time at Durban port, the working paper said.
This means that, after 72 hours, containers incur heavy storage charges. The result is that storage charges in Durban are almost six times as high as other ports in the country.
But investment in infrastructure has certainly also helped the process. At the time when Durban adopted its port liberalisation policy, South Africa s trade infrastructure was ageing and had been neglected for many years, and most of the country s ports were not performing well.
From 2002, Transnet invested more than $700-million in ports over a five-year period, focusing on creating capacity and equipment. An average dwell time for cargo of four days at Durban port has been achieved and maintained since 2006.
More investment is also on the way. Just last month, Minister of Public Enterprises Malusi Gigaba unveiled Transnet s seven new state-of-the-art ship-to-shore cranes at the Durban Container Terminal as the company surges ahead in its drive to boost productivity and efficiency in arguably the southern hemisphere s biggest and busiest port.
The cranes are part of Transnet s rolling R300-billion seven-year investment programme the market demand strategy , the state-owned enterprise said.
Over the next 20 years, Transnet Port Terminals, which currently operates 45 cranes in seven ports across the country, will buy 39 new ship-to-shore cranes.
While Durban may remain top dog when it comes to the continent s ports, improvements elsewhere will undoubtedly have positive spin-offs for South Africa.
Ga l Raballand, World Bank senior economist and co-author of the cargo dwell-time study, told the Mail & Guardian that reducing dwell time could possibly increase competition in Sub-Saharan Africa.
But, he added, what matters in transport are economies of scale and, therefore, there is somehow a first- mover advantage the biggest economy is likely to attract more flows, which are going to lead to reduced transport costs, which will reinforce its position. South Africa is the gateway because it is also the largest economy.
- ^ Why does cargo spend weeks in sub-Saharan African ports? Lessons from six countries (econ.worldbank.org)
- ^ Time as a trade barrier (www.nber.org)
- ^ http://mg.co.za/article/2013-06-14-00-durban-port-leads-way-for-african-trade (mg.co.za)
17 year old car owner/driver needs a proper car insurance policy
With the number of young car drivers growing every day, there is a need for a specific car insurance policy, which caters to 17-year-old drivers, having their own cars.
While we have the figures showing that the younger drivers being inexperienced are involved in more car and other accidents, than the older drivers. However, it cannot be said for the whole lot of young drivers, particularly the 17-year-old car drivers. At the same time, there is a greater need to educate the young car drivers including 17-year-old drivers to search for a comprehensive and proper car insurance policy that suits them best.
Certain insurance brokers may offer an insurance policy that has every stuff in it and ultimately it may not prove useful to the 17-year-old car driver, as there may be nanny benefits offered with the car insurance policy, which are not at required by the young driver.
The law should be very stringent with regard to the car insurance policy, particularly for the 17-year-old car drivers having their own cars. The law has to ensure that a 17-year-old car driver has a proper and well-documented car insurance policy, before he takes on the wheels and goes off to the road for a drive. Certain countries have fixed penalties for not having a proper car insurance policy by the 17-year-old car driver. In Great Britain the penalty for not having proper car insurance is a six point fine. This means in real terms that a 17-year-old car driver has to appear for a retest as their license gets revoked due to this offense.
Young car drivers, especially 17-year-old drivers and till the age of 25 years, are deemed as high-risk drivers. This means that the chances of more accidents are higher with this age group of drivers. Hence, most of the insurance companies add up their costs to quote a higher price for a 17-year-old car driver to have the car properly insured.
However, there are many instances where we can find that the insurance brokers and companies have a genuine case to put up the prices, as 17-year-old car insurance will have to meet the excess claims from the 17-year-old drivers due to their inefficient handling of the vehicle and its maintenance..But at the same time there are certain car insurance companies who provide 17-year-old car insurance at cheaper and reasonable prices, as they are specialists in the field of providing car insurance policies to the young drivers only, like a 17-year-old driver.
One needs to do a online search for such companies and here is the link to one website that can help
. /17-year-old-driver-auto-insurance.htmDuring the course of learning car driving, a 17-year-old car driver is taught to drive slowly and that too a older vehicle, so that the driving skills get perfect and the 17 year car insurance policy is also cheaper to get. Another web site address given here can be of much help in this direction.
In Netherlands, we can find many Dutch companies that can give a proper autoVerzekering and the companies like the following Dutch website can prove very useful
Whilton Mill Circuit, the home of Stars at Whilton Mill, have testing available for owner driver on the following dates:
- Monday 10th June
- Wednesday 12th June
- Thursday 13th June
- Monday 17th June
- Tuesday 18th June
- Wednesday 19th June
Times will be 10am till 4pm, with costs for members of 30 and 40 for non-members on a Wednesday and 50 every other day.
Despite the tough overall conditions that continue to plague north European economies, road freight volumes appear to be holding up.
The recent monthly Danske Bank freight forwarding index recorded a May level of 63, substantially up from April s level of 50 (a number that represents a stable level of volumes). However, road freight operators also remained relatively pessimistic about the forthcoming months, according to report author Erik Bergoo.
Expectations for road came in at 47 for July (57 in June) and indicate decreasing volume development over the next two months, he said.
The uncertainty over future business levels was reflected in the preliminary results of one of the UK s largest haulage companies, Wincanton, which were released today. Over the past year the company has refocused its business, withdrawing from its European operations and exiting the food distribution business and instead concentrating on the remaining UK and Ireland operations.
It recorded a 10% decline in revenues, which dropped from 1.2bn the year before to 1.08bn, partly as result of the withdrawal from Europe and food, but also partly as a result of two particular customers deciding to in-source supply chain operations.
Nonetheless, pre-tax profit was up, from 28.8m in 2012 to 32.1m this year, with underlying margins up from 3.6% to 4.3%, which were principally the result of cost savings, while it bolstered its revenues through a series of contract wins, and sought to offer existing clients a broader range of services.
We have made progress with offering broader supply chain solutions in the year, in particular with the extensive technological developments inherent in the convenience store distribution centre solutions. By increasing the value added in our solutions we have both increased the return from such projects and also the depth of our relationships with our customers, said chief executive Eric Born.
Its major difficulty is that in concentrating on the UK and Ireland it has hardly placed itself in a market that has significant growth potential. That said, after a challenging few years in which it has recorded losses and seen its markets hit by recession, it remains firmly in recovery mode.
Wincanton is making steady progress in its recovery programme and, whilst average debt levels (c 201m) remain too high in our view, the group is now generating a positive cash inflow and debt levels are falling. Underlying trading looks reasonably encouraging in a tough industry and group operating profit margins rose from 3.6% to 4.3% in the year, analysts at Investec wrote in a note following the publication of the results.
Mr Born added that he did not expect to see any general economic recovery in its markets over the next 12 months. We do not expect the economic environment in the UK and Ireland to offer any relief and as such we will focus on winning market share and capture customer opportunities through the development of supply chain solutions and the cross-selling of products and services.
In addition to growing the business and broadening our offering, we will continue to drive out further costs by improving the efficiency of our operating model across our three main asset pools of people, property and fleet.
A Dow Jones analyst told The Loadstar: Unemployment is slow because most people have kept their jobs, which is unusual for an economic downturn in this country, but on average they re actually earning what they were earning perhaps 10 years ago. Stobart offers a template for an alternative strategy, diversification into other business areas, but with the exception of its biomass operations, that doesn t seem to have paid off yet.
In terms of logistics, however, both companies are broadly transforming themselves from hauliers into integrated logistics service providers.
Wincanton splits its business into two sectors: contract logistics services, which covers its logistics customers in the construction, FMCG, retail grocery, retail general merchandise, tankers and fuel sectors, amongst others. Overall revenue for the division was down 10% to 923m, and every sector showed declining revenues bar construction, which was buoyed by new bulk cement powder transport operations for Lafarge from its network of six national plants nationwide.
It also won a new contract with Rolls Royce for the storage of defence-related power units, while other start-ups included two new distribution centres for Morrisons and Sainsbury s convenience store expansion.
Its other sector is the smaller, specialist services division, which comprises container haulage, document storage and vehicle maintenance and repair services, and which reported an 8.5% decline in revenue, mainly dragged down by the weakness in the container transport market.
The container transport market continues to be weak in the UK with limited overall volume growth. Factors such as increasing shipping line charges for UK delivery diverted volumes to European ports and transport operators, the company said.
For anyone who is a world provider of items then you definitely have to know the importance of logistic providers. Logistic services vendors or freight forwarders present variety of transportation providers for their customers. They help to maneuver the items and extras together with food items, attire, engineering machines, and lots of other items. They offer an opportunity for your makers to grow their business far across the nations. They will simply satisfy the intricate distribution wants on the makers. These logistic services vendors operate in the determined manner and use really regular procedures to ensure your business plans are achieved by the due date. busana muslim1
Logistic services vendors operate seamlessly with transportation services vendors, provide chain & logistics professionals, customizing the solution to the wants of their worldwide customers. They operate in association with their air, ocean, brokerage, warehousing as well as consolidation providers. Their wide ranging consolidation and distribution providers present worldwide logistics vendors and makers a complete control on their provide chain management. They provide logistics and distribution providers to the customers at the worldwide location where business wants on the customers are best achieved, by the due date and within their budgetary constraints.
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The flexible providers and their international network locations render an inspiring prospect for your makers, suppliers, transportation agencies, and warehousing companies to minimize cost of operation and distribution. Their efficient door to door transport providers refers to the quick movement of goods from the door on the seller / shipper to the door on the buyer. This type of transportation services may include various modes of transportation together with air, sea or road. Each mode of transport is specialized and wants a professional excellence and thorough understating on the warehousing and distribution providers.The logistic services busana muslim trendy 2vendors present absolute professionalism, loyalty, and consistency with the essential providers like:
1. Air Express Support, high priority (24 hours)2. Value added services to any destination3. Economical & timely distribution4. Door to Door & Airport to Airport services with excellent transit times5. Full Container Load (FCL) & Partial Container Load (LCL) cargo services6. Worldwide delivery
Logistics and freight forwarder companies provide the ideal balance of time, space, frequency and cost. They offer the most efficient and cost effective solutions for your worldwide customer s freight wants while meeting time critical schedules to meet their requirements. busana muslim terbaru3
Using a freight forwarder to handle your import or export shipment might not be as costly as you think.
Firstly, freight forwarders have good contacts with various hauliers and shipping lines. Freight forwarders understand their industry, and their suppliers. Shopping around for the best price is standard practice here at Mercator Cargo, we obtain the best price for our customers. Using a freight forwarder can have this advantage, if you consider a potential shipment, where would you start? Would you ring around lots of suppliers to get the best price? Would you know which supplier offers which route or service? Mercator Cargo knows, and that s why we are able to shop around for the most competitive price for you.
Would you know to ask suppliers if prices they gave you included this service, or that service? A freight forwarder can help you in this aspect, the price given will be the price paid. If you know your costs upfront, you can then work on your profit margins; how much do you need to sell this for to make a decent profit taking into account your shipping costs?
Finally, utilising a freight forwarder can prevent mistakes, thus saving money. For example, if a document is not in the right place at the right time, your shipment may have to be held on quay, or in storage, which can be costly. Putting your freight into trusting hands can alleviate this possibility of further costs incurred due to delays.
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