Shipper’s load stow and count clause

Trust when shipping vehicles and cargo overseas is very important factor. It is also important to know rights and responsibilities of all the parties. What happens, when shipper loads container himself or shipping agents company does it? This is very common situation…

Shipper-Packed Containers

If a Container has not been filled, packed, stuffed or loaded by the Carrier, the Carrier shall not be liable for loss of or damage to the Goods and the Merchant shall indemnify the Carrier against any loss, damage, liability or expense incurred by the Carrier, if such loss, damage, liability or expense has been caused by:

  • the manner in which the Container has been filled, packed, stuffed or loaded; or
  • the unsuitability of the Goods for Carriage in Container; or
  • the unsuitability or defective condition of the Container arising without any want of due diligence on the part of the Carrier to make the Container reasonably fit for the purpose for which it is intended; or
  • the unsuitability or defective condition of the Container supplied by the Shipper.

The Shipper shall inspect Containers before stuffing them and its use of the Containers shall be prima facie evidence of their being suitable and not in a defective condition.

What is a demurrage charge?

There are several terms or definitions when shipping a car, where shipper could be confused. Especially, when shipping agent does the things mechanically and doesn’t explain every difficult term. One of this hard terms is demurrage.

Definition for container demurrage:

The amount payable by the importer/exporter to carrier for retaining the container beyond the free time stipulated in the applicable contract. It is a penalty designed to discourage shippers and recipients  from keeping containers as free storage, and to speed up packing/unpacking time.
In other words, shipping agent would insist on the customer to deliver his car and all documents quickly, to avoid paying penalty fee to the carrier for retaining container. It is especially important regarding car title, which is necessary to be delivered for documentations and US Customs procedures – without title car cannot be shipped, and penalty fee (demurrage) cound occur.

What documents do I need to have, when exporting a vehicle overseas?

When transporting vehicle overseas, the number of documents for several insitutions could seem overwhelming. It is the task of shipping agent to take care of right papers preparation.

Below is the list of common used shipping documents required to be submitted when you ship cars from the USA oversea using international ocean freight services:

  • The original title along with at lest three copies (non-notarized) of the title, front and back.
  • Liens against the vehicle (if applicable), a notarized letter from the lienholder authorizing the export of the vehicle exported from U.S.
  • Bill of sale (if applicable)
  • Power of attorney to the person or company that represents the vehicle’s owner before customs (if applicable)
  • International ocean freight Bill of Lading - Carrier’s transport document. The title on shipped goods. Shows cargo routing, consigner, consignee, cargo description, etc.
Most of the time, it is as easy as giving these documents to shipping agents. Don’t forget to make some copies before!

Do I need to notify DMV when exporting a vehicle?

DMV is an insitution, which takes care of each single matter regarding cars and other vehicles. The main question of this article is very logical – do they find out by themselves or you have to go to your nearest office?

To export a vehicle you must:

  • Sign and present your completed Certification for Exportation (REG 32) in person at a DMV office(all registered owners whose names are joined by “and” or a slash (/) must be present and have signed the REG 32). The REG 32 form is available at any DMV office.NOTE: If the REG 32 is signed by power of attorney, the attorney-in-fact must be present in the office and submit a power of attorney worded specifically to complete the REG 32 or either the original or a photocopy of a general power of attorney.
  • Provide a clear title to the vehicle to be exported (the title must be in the name(s) of the registered owner(s) submitting the REG 32). If there is a lien holder, line 2 of the title must contain a lien release or a completed Lien Satisfied (REG 166) must be submitted.NOTE: A Salvage Certificate, Application for Duplicate Title, Notice of Vehicle Aquisition, and Bill of Sale cannot be used in lieu of a title.
  • Provide your California driver license or identification card.
  • You will also need court clearances for unpaid citations.NOTE: Military personnel exporting vehicles via a regular carrier must submit a REG 32 and comply with all of the above requirements.
The answer is – yes, you have to notify DMV.

What is the 24 hours rule for filing U.S. Harmonized Schedule?

24H E.U. Rule effective on January 1st, 2011. All commercial invoices or valued packing lists for shipments to/via E.U. require filing at least first six digits of U.S. Harmonized Tariff Schedule in the H.S. Code column. Shippers to other counties may leave the H.S. Code column blank. However, filing H.S. Codes to other countries is recommended.

  • In respect of international shipping of PERSONAL EFFECTS AND USED HOUSEHOLD GOODS, the HS Code# to be used is: 9905.00
  • Any COMMERCIAL SHIPMENTS to/via E.U. MUST PROVIDE H.S. CODES (at least the first six digits)

Shippers may find U.S. Harmonized Tariff Schedule in the following websites: http://hts.usitc.gov/

MSO – Manufacturer’s certificate of Origin

Here are some information regarding MSO, which could be important document in shipping car internationally process.

Manufacturer’s Certificate/Statement of Origin (CVC §4150[d])

Unless a new vehicle is sold by a licensed California dealer and an Application for Registration of New Vehicle (REG 397) is submitted, all applications for original registration and/or title of new vehicles and motorcycles must include a Manufacturer’s Certificate/Statement of Origin (MCO/MSO).

NOTE: This does not include a direct import vehicle or a specially constructed (SPCNS) vehicle manufactured to resemble a recognized make.
Refer to Chapter 12, Nonresident Vehicles, for direct imports and section 7.190 of this chapter for SPCNS.

The MCO/MSO may be prepared at a factory, an assembly plant, or a business authorized by the manufacturer. All MCO/MSOs, except those for off-road equipment, should be produced in an identical format, and must include:

  • The manufacturer’s name and address.
  • The make, identification number, body type, year model, and vehicle series or model name.
  • The date and to whom the ownership was transferred from the manufacturer and the signature of the manufacturer’s agent (a signature stamp is acceptable).
NOTE: Reassignments made in the space provided on the MCO/MSO do not need to be notarized for California, even if a notarization space is provided.

Although variations exist, an MCO/MSO normally is: 7″ x 11″ in size, on paper stock sixty (60) pound offset or equivalent durability, and printed with security features that include:

  • Sensitized security paper without added optical brighteners that will not fluoresce under ultraviolet light.
  • Engraved border and prismatic-rainbow printing with Copy Void Pantograph (the word “void” appears when the document is copied).
  • Two complex colors (colors developed by using a mixture of two or more primary colors and black) and two security threads, with or without watermark, and/or intaglio print, with or without latent image, and/or security laminate.

Duplicate MCO/MSO

A duplicate copy of an MSO issued by the manufacturer is acceptable as proof of ownership.

  • It must clearly state “Duplicate” on the face of the document, contain the same security features as the original MSO, and contain the identical descriptive information, except for the issuance date, as the original MSO.
  • Any discrepancy invalidates the duplicate. A photocopy of the original is not acceptable.

MSO Continuations

  • Any continuation to an MSO must clearly state “Continuation” on the face of the document and contain the same security features as the original.
  • A “continuation” MSO must be used in conjunction with the original MSO.

New Vehicle with MSO Registration Requirements

When a new vehicle is sold by other than a California dealer and the vehicle has never been registered or titled in any state or country, the following are required:

  • A properly completed Application for Title or Registration (REG 343).
  • The Manufacturer’s Certificate/Statement of Origin (MCO/MSO) properly endorsed to the purchaser. Bills of Sale are acceptable in lieu of endorsement(s) on the MCO/MSO.
  • A vehicle verification, unless the vehicle qualifies for a verification exception (see below).
  • Weight Certificate for a commercial vehicles less than 10, 001 pounds unladen.
    • If the vehicle weights 10,000 lbs or more, or is a trailer in the PTI program, the estimated unladen weight is required and may be shown on a Statement of Facts (REG 256).
  • Declaration of Gross Vehicle Weight/Combined Gross Vehicle Weight(REG 4008).
    • Completed and signed by the owner for a commercial vehicle weighing 6001 pounds or more unladen (not required for pickups).
  • A smog certification, if appropriate.
  • The fees due from date of first use in California.

Vehicle Verification Exceptions

A vehicle verification is not required for:

  • A new trailerpurchased in another state and eligible for registration under the Permanent Trailer Identification (PTI) Program provided:
    • the trailer has never been registered.
    • the trailer has not been modified, altered, or assembled from a kit.
    • a secured Manufacturer’s Certificate/Statement of Origin (MCO/MSO) is submitted for the complete trailer.
  • A new commercial vehiclepurchased in another state as a complete vehicle or as an incomplete vehicle to which a new body was added to make a complete vehicle provided:
    • the vehicle has never been registered or issued International Registration Plan (IRP) registration in California or was issued IRP registration with the last 60 days only.
    • the vehicle has not been modified, altered, or assembled from a kit.Manufacturer’s Certificated/Statement of Origin (MCO/MSO)
    • the vehicle has an unladen weight of 6,001 pounds or more.
    • the vehicle meets California emission standards.
      AND
    • a secured Manufacturer’s Certificate/Statement of Origin (MCO/MSO) is submitted for the (complete) vehicle, or
    • a secured MCO/MSO is submitted for both the cab/chassis and the body and the Statement of Facts (REG 256) from the owner which certifies the vehicle “was not constructed with any used components” and states the cody type model (BTM) for a vehicle that does not meet California emission standards.
Source: DMV California

Are the arrival details given by Car Shipping Companies accurate?

Sadly, arrival times are estimated and are not guaranteed. Most times car carriers are able to give you expected arrival dates, but sometimes due to custom delays or ships canceling their departures or in the event of there not being enough freight available for consolidated shipments, delays can occur.

However, depending on how usual a destination is – they  are usually on target. If there are any delays usually there are no refunds or deductions in price entertained. Consolidations (shared container service) are based on availability of at least 2-3 vehicles going to the same destination therefore arrival dates are confirmed once container sails.

US CUSTOMS examination – who pays for that?

Most of the Car containing containers taken by the US Customs and border protection for examinations are called “random”. One of the most common US customs export exams are called :Anti-Terrorism Contraband Enforcement Team (A-TCET)

The Outbound mission of such exam is:

•Preventing terrorists, terrorist groups, rogue nations and other criminal organizations from obtaining U.S. Munitions List and Commerce Control List commodities;
•Enforcing sanctions and embargoes against individuals, groups, organizations, and countries;
•Interdict illegal exports;
•Interdict unreported currency;
•Interdicting stolen vehicles;
•Increase export compliance.
There are 3 components of such examination:

COMPONENTS

Counter Terrorism Response Team

(CTR)

Operation EXODUS Unit

(OPEX)

Advanced Targeting Unit

(ATU)

The Automated Targeting System (ATS) is a key component of this multilayered security strategy. (See appendix C for a more detailed description of CBP’s Layered Security Strategy.)
ATS is an enforcement tool that uses sophisticated automated techniques and algorithms to perform risk-based analysis of anomalies and strategic intelligence to indicate which shipments are high risk and require additional scrutiny and mandatory security inspections. Additionally, CBP officers at ports of entry use their local knowledge and judgment to select unusual or irregular shipments for inspection.
A shipment selected by ATS or local CBP officers is held for a nonintrusive inspection. A nonintrusive inspection device takes x-ray images of the container’s contents, which CBP officers use to identify anomalies such as areas that appear unusual or inconsistent with the container contents listed on the shipping documents. If CBP Officers are unable to resolve the anomaly with a nonintrusive inspection, Officers may refer a shipment for physical examination, which may consist of a visual inspection of the container’s interior, limited inspection of selected contents, or complete unloading of the cargo. Officers also use physical examinations to determine whether a shipment contains undeclared or inadmissible cargo.

Shipper has to pay for the examination and cost of it could reach several thousands of dollars.

What is drain and disconnect requirement

Title 49, United States Code of Federal Regulations requires that all vehicles must be prepared for export so they do not constitute any danger while in transit.

Hazardous cargo: Please keep your gas tank at 1/4 of a tank or less. For safety, full tanks will be emptied.

Here is a Sample of Drain & Disconnect Letter:

Company Name & Address


Date: ___________
Booking number: ___________
Container number: _______________
VIN # 1:__________________
VIN # 2 (if applicable): ___________________
VIN # 3 (if applicable): ___________________
VIN # 4 (if applicable): ___________________
I/(we), ______________________________ hereby certify that (1) the used vehicles for the subject shipment have been properly stowed in the container in accordance with Title 49, United States Code of Federal Regulations. (2) The batteries have been disconnected, removed or the battery terminals are insulated and (3) the fuel tank(s) are completely drained and the used vehicles have been run until stalled for lack of fuel, unless the used vehicles use a fuel that has a flash point of 38 degrees C or (100 degrees F) or higher (i.e. diesel), and they have less than 5 liters (1.320 gallons) of fuel in their tanks and there are no fuel leaks in any portion of the fuel systems. All Vehicle Identification Numbers (VIN) for all used vehicles in container have been disclosed above.

Name of person signing this document: ____________________________
(Please Print)
Title: _________________________
Organization: ________________________
Signature: ___________________________ Date: __________________

 

Incoterms in a car shipping world

International Commercial Terms (abbr. INCOTERMS) is a set of definitions of international trade terms, developed by International Chamber of Commerce. Definition describe responsibilities and liabilities of buyer and seller, and as exporter and importer agree to the term, they don’t need to negotiate each detail.

You will find detailed desctiption of INCOTERMS on export911 website.