The Cargo Letter

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Air & Ocean Freight Forwarder - Customs Broker News
29 July 1998

Good Wednesday Morning from our Observation Deck...... overlooking the officially designated "Cargo City" area and....... Runway 25-Right, at Los Angeles International Airport, voted ``Best Cargo Airport in North America''. For your company travel this summer, or any time, the world's best discounts, information, selection & real deals can only be found at our

The thousands of Forwarders & Brokers who read this publication around the world need to learn of YOUR experiences and what YOU learned today. Contribute your knowledge, stories & company information ........ by e- mail to The Cargo Letter. We strive to bring you useful information which is timely & topical. Be sure to visit our web site ..........

For late breaking news or to post comments about The Cargo Letter or discuss articles, go to .......

Michael S. McDaniel, Editor & Publisher, Countryman & McDaniel, forwarder/broker attorneys at LAX.

INDEX to The Cargo Letter:

OUR Top Story
   1.  Chaos Central: The Opening Of CMK
      * Most Expensive Cargo Disaster In 
          Aviation History
OUR "A" Section: Trade, Financial & Inland News
   2.  Freight Forwarder Trade Briefs
   3.  The Cargo Letter Financial Page
OUR "B" Section: FF World Air News
   4.  Freight Forwarder World Air Briefs
OUR "C" Section:  FF World Ocean News
   5.  FF World Ocean Briefs
   6.  The Cargo Letter Cargo Damage Dispatches
OUR "D" Section: FF in Cyberspace
   7.  The Cargo Letter "Cyber Ports Of Call"
OUR "E" Section: The Forwarder/Broker World
   8.  Asian News Briefs
      * Our Warren Levine Feature
   9.  Overweight Containers Bite Brokers
      * You Were Previously Warned
   10. New U.S. Int'l Transport Legal Cases
   11. What's Your U.S. Customs Filer Code Number?
   12. HHG Moving Tips
      * Word From The Experts
   13. New HKG Airport Stats

OUR Top Stories

1. Chaos Central: The Opening Of CLK

-- by Cameron W. Roberts with Michael S. McDaniel for The Cargo Letter

Los Angeles - 28 July - Is it human error or corruption which plagues Hong Kong's (HKG) new US$20B Chek Lap Kok Int'l Airport?

On 6 July HKG's Chek Lap Kok (CLK) Airport opened. Thus began one of the most complicated cargo disasters of the 20th Century. After 3 weeks, mechanical & computer systems are still down amidst a sea of idle ULDs, soaring delay claims and missing freight in epic proportions. According to Hong Kong's Airport Authority a "bug" in CLK's master computer triggered a domino effect that instantly sent the new facility into utter chaos; erasing inventory, changing flight schedules; mis-routing cargo & baggage ....... and causing the biggest ever global snag.

In an attempt to gain control, Hong Kong officials enforced an air cargo embargo, hoping that the suspension would allow sufficient time to fix the computer & mechanical problems. At the time of the embargo Hong Kong Air Cargo Terminals Ltd. announced that to relieve pressures at so-called "Super Terminal 1", all import cargo processing - with the exception of perishables, strong room cargo, reefer freight, lifesaving materials, news material &statutorily controlled items would revert to the old HKG. venerable Kai Tak Int'l Airport.

Human Error, Hi Tech Stumble or Corruption? In the days immediately following the cargo embargo, it was widely reported that human error had caused the many computer problems. Other recent airport openings at Denver (US$4.9B), Kuala Lumpur, Kansai all had difficulty with computer systems intended to integrate various operating systems, but only CLK had sought to orchestrate all it's systems, from passengers & baggage to cargo & jet fueling via a single, central computer system designed in part by Oracle Corp. of Calif., & Electronic Data Systems Co. (EDS) and linked by over 400 miles of fiber optic cable. Contractors, computer experts & airline authorities all indicated that the individual systems would function separately in the event of a central computer failure. That was the plan. However, according to the Airport Authority & EDS somewhere in the system incorrect data was entered into the central database. In turn, central system instantly spread this erroneous information to all the connected systems with catastrophic results. Cleaning crews, passengers, baggage & cargo were directed to the wrong gates. Problems were exacerbated by a general breakdown in the telecommunications system, forcing ground crews to rely on cellular phones to coordinate with gate arrivals.

Thus far it is unclear if the computer system failed or if human error caused the problem; but it does seem clear that old fashion corruption has a role to play in the disaster. On 15 July four airport workers were charged with bribery & corruption for covering up shoddy construction of facilities connected with the rail link to the airport. Two engineers allegedly falsifying building requirements & delivery statements. HKG's Chief executive, Tung Chee-hwa, has appointed a judge to head an independent commission that will investigate and issue a full report within 6 months. [see our story in FF Air Briefs]

Opening Day - Peak Season? Clearly, the lessons of history are lost on CLK's Authority. HKG's traditional peak traffic volumes start in July and continue through October. Backlogs & lift are always an issue in these hectic months. Wearing apparel & other seasonal importers, busy building back to school & Christmas inventories rely on HKG as a primary logistics hub. Seasoned logistics experts question the wisdom of switching to CLK at a time when space & time were at a premium. "Just in time" inventory systems rely on reliable transit times that are measured in hours, not days. Delays of 2 to 3 days have caused major U.S. importers, such as LL Bean & The Gap to reconsider the importance of Hong Kong in their logistics planning. Many believe that local economics & politics, not logistics planning, were the driving force of a July opening day.

The Unexpected Problem - "Documents". Integrators, carriers, consolidators & shippers alike were scrambling to track & trace documents for inbound/out bound freight from HKG on 7 July 1998 . Courier services responsible for forwarding documents were temporarily unable to locate pouches containing original bills of lading, invoices & textile visas. These essential documents are often sent to foreign ports "just in time" to clear Customs. As a result, Hong Kong's embargo has sent a ripple through the logistics chain with global implications. In an effort to prevent further disruption, Cathay Pacific agreed to carry all express shipments on its passenger aircraft despite the cargo embargo. DHL & other courier services were exempt from the HACTL cargo embargo since courier shipments are classified under the same category as postal & perishables, not cargo. Several courier services are able to handle shipments direct from commercial airlines utilizing their own airport employees & systems based at the Express Cargo Terminal (ECT) facility, thus by passing the cargo handling problems at so called "Super Terminal One".

The Future. On 21 July 1998, The Hong Kong Association of Freight Forwarding Agents (HAFFA) responded to HACTL's plan for an air cargo recovery program with concern. HACTL announced that it has "achieved substantial increases in the amount of cargo being processed". Out of a predicted load of 4,000 tons at the start of each day, HACTL is currently processing only 1,900 tons. The company is expressing confidence in its recovery schedule which it says is realistic. HACTL has announced a 4-phase recovery program for air cargo - the 1st of which was executed on Saturday, 18 July. For the operation, both the old airport & the new will be used - "Super Terminal" at Chek Lap Kok & Terminal 2 at Kai Tak Int'l Airport HACTL'S objective is to finally shift all operations to "Super Terminal 1". Here are the details:

PHASE 1: From 18 July HACTL will start processing 50% of the projected daily tonnage of imports & exports. Cargo to be managed will be confined to pre-packed cargo on freighters only, but import perishable will still be processed at Check Lap Kok to ensure fast release.

PHASE 2: By the end of July, export pre-packed cargo on freighters &passenger aircraft will be dealt with, as will import cargo on freighters &passenger aircraft, representing 75% of daily tonnage.

PHASE 3: Mid-August will see services fully operational. HACTL will process 100% of projected tonnage of imports & exports using both airports.

PHASE 4: By the end of August, all import operations will be transferred to "Super Terminal 1". HAFFA has called HACTL's handling of the situation so far "an embarrassment" and "a disappointment" to the industry. It's now calling on the government to assist HACTL. saying the SAR's economy &reputation are at stake, and the "huge loss of revenue sustained by the industry & its customers" must be curtailed before further damage is done. The damage remains to be calculated.

......see our other CLK stories throughout The Cargo Letter

OUR "A" Section: Trade, Financial & Inland News

2. Freight Forwarder Trade Briefs

3. The Cargo Letter Financial Page

OUR "B" Section: FF World Air News

4. Freight Forwarder World Air Briefs

QUESTION: How Do I Calculate Charable Weight For Airfreight Based On Dimensions (DIM)? Domestic? Int'l? Metric?

ANSWER: Go to The Freight Dectective Transport Reference Desk

OUR "C" Section: FF World Ocean News

5. Freight Forwarder World Ocean Briefs

6. The Cargo Letter Cargo Damage Dispatches

As the world is now so taken by the movie "TITANIC", we seriously question what the response might be if the public came to know just how dangerous is the sea. Make certain your customers know the truth. Arrange quality marine cargo insurance for all shippers and let them see the following .........

Ocean CARGO disasters this month include: ..........

1.] 16 June. M/V Aptmariner (Liberian- registry operated by COSCO (Hong Kong) Shipping Co. Ltd.) ran aground off St. Nicholas Island in the St. Lawrence Seaway near Montreal due to steering problems, while sailing from Klaipeda, Lithuania, to Cleveland and Detroit with steel coils and was re floated 18 June by the tugs Avantage, Andre H. &Jerry Newberry. The Aptmariner suffered forepeak damage and will be repaired at a cost of U.S.$409,000, using 30 tons of steel;
2.] 26 June. M/V Diana- Maria (Antigua & Barbuda-registry) ran aground near La Marola Rock at Ria de Ares, Spain, while sailing from Blyth, England, to Ferrol, Spain, with 2,000 tons of scrap metal. Flooding was reported in the engine room and the 6 crew were rescued by a helicopter. On 29 June, work began to lighter 20 tons of fuel as the Diana-Maria continued to flood;
3.] 26 June. M/T Astro Gamma (Greek-registry 268,310-dwt tanker) suffered an engine room fire as it loaded fuel at Rotterdam, the Netherlands. The fire was extinguished by local firefighters and no one was injured. The Astro Gamma has 42 crew; x.] 26 June. The Chilean Navy's lead ship of the Condell (PG 06)-class frigate collided with the U.S. Military Sealift Command's Henry J. Kaiser-class Replenishment Oiler U.S.N.S. Pecos (T-AO 197) while operating 70 miles off California. No one was injured. The Condell was preparing to refuel from the U.S.N.S. Pecos when it apparently had steering problems;
4.] 28 June. M/V World Peace (Cypriot-registry) was abandoned at 11 degrees 26.8 minutes north, 62 degrees 51 minutes east after its No. 4 cargo hold flooded. The 21 crew abandoned ship & boarded M/T Maasstroom L (38,039-dwt motor tanker). The World Peace was sailing from Chennai, India, to Rotterdam, with marble and was last reportedly drifting at 2 knots west-southwest towards India;
5 .] 29 June. M/V Woo Yang Honey (South Korean-registry) was abandoned at 23 degrees 00 minutes north, 116 degrees 35 minutes east after it began flooding. The 16 crew were rescued by another vessel and taken to Shantou, China, before the Woo Yang Honey sank;
6.] 29 June. S/V Rita Allah (Syrian-registry wooden vessel) was towed to Limassol, Cyprus, after drifting for days in the eastern Mediterranean Sea. Two died of dehydration & were thrown overboard before the vessel was found. Some 115 people were aboard when it docked;
7.] 29 June. M/V Magdelan Sea (Canadian-registry offshore supply vessel) rescued 3 crew from a 30-foot S/V Swamba that had spent 25 hours drifting in a storm off Nova Scotia. The demasted Swamba was flooding in 16-foot seas;
8.] 29 June. M/T Katerina SG (Panamanian-registry) was disabled when the No. 5 piston in the main engine separated from the crankcase in an explosion. The vessel was left drifting at 03 degrees 30 minutes north, 87 degrees 42 minutes east. It had sailed from Port Klang, Malaysia, for Dar es Salaam, Tanzania, & Nacala, Mozambique, with palm oil;
9.] 2 July. U.S. Coast Guard seized 41 pounds of cocaine from M/V Friendly Express (Belize-registry). The vessel was sailing from Haiti to Miami when it ran out of fuel on 30 June. It was towed to the Miami anchorage by the USCGC Riga, where it was boarded by the Coast Guard and the U.S. Customs Service. The cocaine was found in a concealed compartment under the deck of a cargo hold;
10.] 5 July. M/T Captain X. Kyrinkou (Cypriot-registry) was damaged in heavy seas while sailing with diesel fuel from Jebel Ali, United Arab Emirates, to South Africa. It called at Aden, Yemen, where damage was found to cable ducting on deck;
11.] 7 July. M/V Tiger Force (Maltese-registry 224 TEU ship of Bengal Tiger Line) sank at 08 degrees 03 minutes north, 79 degrees 00 minutes east. It was carrying containers from Colombo, Sri Lanka, to Tuticorin, India, and the crew was rescued;
12.] 9 July. F/V Hosei Maru, an 11-ton fishing vessel, collided with a whale on Tokyo Bay . Seven of 14 people aboard the vessel were injured including one who had a broken jaw;
13.] 9 July. M/T Seasalvia (Maltese- registry 88,396-dwt motor tanker) ran aground on sand near the Haydarpasa Breakwater in Turkey's Bosporus Strait. It is carrying crude oil from Novorossiysk, Russia, to Italy;
14.] 10 July. M/T Tadoussac (Canadian- registry ) has run aground 2.2 miles east of Peche Island near Windsor, Ontario. It is carrying coal;
15.] 13 July. M/V Rautz (Austrian-registry) sank at 35 degrees 05 minutes north, 09 degrees 31 minutes west, while sailing from Safi, Morocco, to Poland. Six crew were rescued & 4 are missing;
16.] 15 July. M/V Aida (Swedish-registry 52,288-gt ro/ro operated by Wallenius Lines) & M/T Golden Asia (Panamanian-registry.) collided east of Saeki, Japan, at 32 degrees 58 minutes north, 132 degrees 09 minutes east. Each had damage. The Aida was sailing from Mizushima, Japan, to Portugal, while the Golden Asia was en route from Kaohsiung, Taiwan, to Oita, Japan, with alcohol;
17.] 15 July. M/V Docelirio (Liberian-registry) ran aground at Mile 85.7 in Venezuela's Orinoco River. It was sailing to Trinidad with iron ore pellets;
18.] 15 July. M/V Nickerie (Dutch-registry motor refrigerated ship.) was taken in tow following engine problems. The ship will be taken to its destination of Vigo, Spain. It is carrying frozen fish;
19.] 27 July. M/V Lindarosa as flames raced through a cabin on a freighter in Genoa's harbor, killing 5 illegal immigrants who had stowed away on the ship. The ship had unloaded a shipment of cars from Tunisia. Frequent readers of this feature will note that it was a very quiet month!

NOTE: Due to seasonal weather there were many, many more cargo vessel groundings, barge losses, fires & other disasters we had no room to report. Large loss of life was reported in the fishing fleets and on ferries, but it does not involve cargo and is nor reported. It was another BAD month at sea. We mourn the many vessels lost.

NOTE: The historic dangers of carriage by sea continue to be quite real. Shippers must be encouraged to purchase high quality marine cargo insurance from their freight forwarder or customs broker.

OUR "D" Section: FF in Cyberspace

7. The Cargo Letter "Cyber Ports Of Call"

Here are our suggested world wide web sites of the week for your business, your information and your amusement ...............

The Freight Detective's Spyglass .... LIVE ! The Only Gathering of 24 Hour Transport Cameras In The World - Where Will You Go Today?

Chek Lap Kok ............ Hong Kong's new, yet now infamous airport

Europort Vatry.

USBTS - US Bureau of Transportation Statistics.

Broker Licensing & Compliance ........... U.S. Customs Service. Soon to feature the National Broker Register.

Aviation Convention in Oshkosh, Wisconsin. July 29th August 4th. In addition to the seminars, we have 4 live video cameras set up for your pleasure. We are looking forward to providing an exciting week of live coverage.

Air Cargo Calculator ............. figure out dim weight, by CargoSoft, web site designs for transportation.

Transport Session of the European Parliament ............ set for 25 Sept. Italian Transport Minister Burlando will give the keynote address. Topics will include "Raw Material Logistics", "Logistics: What Future?", "International Port Networks", "Industrial Logistics", Transports in Europe", "Financial support of the transport infrastructures", "European Union Port Policy after 2000". Info available only in Italian.

Hazmat Safety Homepage ..........of the U.S. Dept. of Transportation. By October, this site will replace the Hazardous Materials Information Exchange, an electronic bulletin board run by the Research and Special Programs Administration. Eventually the site will offer online registration for training courses and hazmat seminars for small businesses conducted throughout the country by the HMS office and Transportation Safety Institute

High-Tech Forwarders Network

CargoFinder ........... an open market exchange where shippers' transport needs meets carriers' demand. See the online demo.

Reid's Consultancy Service ........... with online glossary and industry info.

Maritime Signal Flags ......... meanings & uses. It talks!

OceanWide .......... delivers sailing schedules via the PointCast Network, using free software to deliver news & other information to your PC or Mac. Users choose which sailing schedules they want to receive by filling out a form at the site. Allows forwarders to get instantaneous quotes and marine cargo insurance. The actual insurance certificates can then be printed by forwarders directly from their computers.

Rating Your Frequent Flyer Miles .......... and understanding them.

UPS E-Commerce

Transport R. Pynnonen Ltd .......... since 1948, the premier transporter by road from the UK & Finland to Russia, Central Asia & the Commonwealth of Independent States (Former Soviet Union). Now with a logistics representative in the USA.

Trade Expert ............ a commercial product from IHS TransPort Data Solutions contains rules & regulations necessary for importing goods into the U.S. & Canada.

Material Safety Data Sheets (MSDSs) ............ for trade & generic chemicals. Three CD-ROM set of more than 225,000 listings. NOT FREE.

Summer Diversions ................

The Freight Detective's Butler ............. the world's greatest collection of resources for gourmet cooking recipes, travel, wine, cigars and current event in YOUR own neighborhood! He's YOUR personal concierge! Don't miss this important & fun resource!

Top Ten Vacation Planning Sites

Free Card & Classic Games

Play Fantasy Baseball

OUR "E" Section: The Forwarder/Broker World

8. Asian News Briefs

-- by Warren S. Levine, for The Cargo Letter

Albright Stands Firm At ASEAN Conference

U.S. Secretary of State Madeleine Albright, in Manila for the regional forum of the Association of SouthEast Asian Nations, leveled heavy words at Burmese Foreign Minister Ohn Gyaw for the political repression aimed at silencing opposition leader and Nobel Laureate Suu Kyi.

Suu Kyi is reported stuck in a car on a rural road in Burma, surrounded by military police. She has been there for the better part of a week as of this writing. Albright was upset with Ohn Gyaw's support for the actions of his government. She characterized the Burmese for having " authoritarian government that just doesn't get it, that blames the victim for the problem."

Albright had sharp words for Chinese Foreign Minister Tang Jiaxuan regarding the rash of dissident arrests in China after President Clinton's June visit. However, they also exchanged good words about liberalization of trade between China and the United States.

Indonesian Military Accused of Mass Rapes, Murders

A number of Indonesian military officers and subordinates were arrested in Jakarta, according to official Indonesian news reports. The arrests are in the aftermath of the atrocities against and murders of ethnic Chinese citizens & businesspeople, some of whose families had been in Indonesia for generations.

Over a thousand people were killed, over 100 women were raped and over 20 other women were raped and murdered in the violence which erupted in May and led to the resignation of President Suharto after a reign of 32 years.

In one case, a nine-year-old girl was raped and tortured, and died a few days later in a Singapore hospital.

Many crime scene photographs have been transmitted out of the country and copied to news agencies and human rights organizations around the world via email attachments. The Cargo Letter will make these resources available to interested news or human rights organizations upon request with statement of intended use. Warning: these are extremely graphic pictures.

The U.S. House International Relations subcommittee is keeping a close eye on the situation in Indonesia. U.S. intelligence reports that the crimes may have involved high-level members of the Indonesian military. Next step: a visit from William Cohen, U.S. Secretary of Defense, in early August. It is hoped that prosecutions by the Habibie government will proceed swiftly thereafter.

Jiang Zemin Orders PLA to Divest Itself and Stop Smuggling
PAP Also Smeared In Daring Speech by Chinese President

In a brave political maneuver and as a demonstration of just how great and worthy a leader he is, Chinese President Jiang Zemin ordered the People's Liberation Army (PLA) and the People's Armed Police (PAP) to divest itself of lucrative real-estate, manufacturing, construction, importing and exporting businesses and stick to their prime objective -- presumably hunting down political opponents.

In an order issued last week, Jiang also instructed the militia to cease its smuggling operations, although the production of pirated CDs and videos was not specifically mentioned.

Now that China's army has fortified its cash reserves, they will soon close up shop and begin production of aircraft carriers and nuclear power plants, not weapons factories or anything.

A factory which until recently was making fake Louis Vuitton sweats &sneakers bearing a name similar to a Japanese stock index will be converted to a plant which will produce knockoff radar-invisible sheeting for the People's Air Force.

In news reports which raise further questions, Chinese Foreign Minister Tang, at the ASEAN Forum in Manila, repeated China's promise to stop targeting 13 American cities with nuclear missiles, as agreed to during President Clinton's visit in June.

But at the same time, in Beijing, the State Council released its first policy statement in three years, indicating their displeasure with the strengthening of relations between the United States and Japan.

In the July 27 statement, China once again refused to rule out the use of force in their claim of sovereignty over Taiwan. It is, evidently, the heat of the opera season in Beijing.

US Trade Rep Busted For Illegal Importation of Beanie Babies

U.S. Trade Representative Chalene Barshefsky, traveling with President Clinton to China last month, was reported by The Washington Post to have bought forty Beanie Babies in Beijing.

Customs Regulations allow the importation of one Beanie per family. Additionally, Ty, the maker of the original Beanie Baby, has an agreement with China that their product is not to be sold in China.

Barshefsky turned the Beanies over to Customs. Keep your eyes open for the next auction of seized merchandise in the DC Customs District.

South Vietnamese "Head Shot" General Dies of Cancer at 67

Nguyen Ngoc Loan, the South Vietnamese General who marched a Viet Cong prisoner into a Saigon street in 1968 and shot him in the head in front of rolling news cameras died of cancer at his home in Virginia on July 15. He was 67. The man Loan executed was involved in the killing of a policeman and his family during the Tet Offensive which led to the eventual collapse of South Vietnam.

9. Overweight Containers Bite Brokers

-- by Michael S. McDaniel for The Cargo Letter

As we warned in The Cargo Letter [306] of Oct. 1996, the Countryman & McDaniel law firm has begun to defend U.S. Customs Brokers (CHB) and forwarders against both civil & criminal cases stemming from a truckers so called "reliance" upon weight & dim information stated on the Delivery Order (D.O.) form. Potential penalties can run well over US$10,000, plus attorneys fees & costs. In these cases the motor carrier presumed an ability to haul the load if the weight of a particular ocean container was shown on the D.O. at less than 29,000 lbs. Then, when police authorities stopped and cited the truckers load as "OVERWEIGHT" .......... all fingers pointed at the Customs Broker for issuing a D.O. which had set forth weight or height information which was within lawful limits.

The problem is that D.O. information is simply copy typed from the ocean bill of lading under circumstances where the CHB never even sees the cargo. Especially where the CHB does not provide a copy of the OB/L or HB/L to the trucker along with the D.O., officials such as the Los Angeles City Attorney have previously taken the position that the D.O. is a representation of weight.

While great strides have been taken at Ports such as Long Beach/Los Angeles to educate officials as to the proper meaning & use of a D.O. form, our Oct. 1996 suggestion is still your best course. CHBs should reprint their D.O. form to contain a prominent notice such as "THIS IS NOT A REPRESENTATION OF WEIGHT OR HEIGHT", or "CUSTOMS BROKER DOES NOT WARRANT ACCURACY OF WEIGHT &HEIGHT INFORMATION OBTAINED FROM OCEAN CARRIERS FOR THIS CARGO".

It is good practice to supply a copy of the bill of lading to the delivering trucker. Indeed, these same principles may apply to the "Arrival Notice" forms issued by some NVOCC agents when providing cargo availability information to CGNEEs.

10. New U.S. Int'l Transport Legal Cases

United States v. Marin-Cuevas
No. 96-50686 June 8, 1998 9th Circuit Court of Appeals Immigration Law: Derivative Citizenship - Note This For Your Overseas Employees
Holding: Defendant's claim that he is a citizen of the United States by virtue of "derivative citizenship" through his mother failed because his mother did not spend enough time in the U.S. prior to his birth.
Defendant had claimed that as a legitimate child of a U.S. citizen, whose mother was physically present in the U.S. prior to his birth for the statutorily required period of time he is a U.S. citizen. Defendant, born in 1966, was counting on a statute 8 USC sec. 1401 that was amended in 1986 and not meant to operate retroactively. Hence his derivative citizenship claim failed. Furthermore, there was no error when, although the jury was to make a determination regarding citizenship, the district court instructed that the INS has "exclusive authority under the law to issue a certificate of citizenship." The jury instructions, taken as a whole were not found misleading. Affirmed.

Int'l Assoc. of Independent Tanker Owners (INTERTANKO) v. Locke
No. 97-35010 June 18, 1998 9th Circuit Court of Appeals
Constitutional Law: Federal preemption
Holding: Only one of Washington's Best Achievable Protection
Regulations, enacted to prevent oil spills, is impliedly preempted by Federal law because the state requirement attempting to regulate vessel design characteristics is preempted by the Ports & Waterways Safety Act (PWSA), which places the design and operating characteristics of oil tankers under federal regulation.
In the aftermath of the M/T Exxon Valdez oil spill, Washington enacted provisions more stringent than federal regulations in order to protect its waters from pollution by oil tankers. Section 1018 of the Oil Pollution Act (codified in 33 USC sec. 2701) demonstrates congressional intent not to preempt "the authority of any state . . . from imposing additional liability or requirements with respect to . . . pollution by oil." Regarding all requirements but one, petitioners failed to demonstrate that Washington's regulations were subject to conflict, field or express preemption. However, the regulation requiring tankers to be equipped with global positioning system receivers was impliedly preempted by PWSA. Affirmed in part, reversed in part and remanded.

Enesco Corporation v. Price/Costco Inc.
No. 96-56571 June 22, 1998 9th Circuit Court of Appeals
Trademark Law: Liability for failure to disclose repackaging of product NOTE: Marking case
Holding: The district court improperly dismissed plaintiff's claims against defendant for violations of sections 32 and 43(a) of the Lanham Act where, although a trademark owner's right to control distribution is limited by the "first sale" doctrine, plaintiff's product falls under the "repackaging notice" exception articulated by the Supreme Court in Prestonettes Inc. v. Coty (1924).
Plaintiff markets fragile porcelain figures which require careful packaging to avoid damage. Plaintiff contends that its success is attributable in part to the special cartons and inter packing it uses to protect its figurines. Without plaintiff's permission, defendant began selling the figurines to its customers in a kind of packaging that plaintiff alleges does not provide adequate protection from damage. Since a damaged product may reflect badly on the manufacturer, defendant may, if allegations by plaintiff are true, be required to disclose to the public that it repackaged the merchandise. Since appellants may be entitled to some relief, dismissal was improper. Reversed and remanded.

11. What's Your U.S. Customs Filer Code Number?

An Entry Filer Code is a unique three-character (alphabetic, numeric, or alphanumeric) code assigned to Customs brokers & importers who file entry documents for imported merchandise with the U.S. Customs Service. The code constitutes the 1st three characters of the unique number assigned to each entry filed with the Customs Service, and identifies the entity that prepared and filed the entry. Entry Filer Codes may also be assigned to others who are not entry filers, but who conduct business with U.S. Customs through the Automated Broker Interface (ABI), for example, international carriers participating in the Automated Manifest System (AMS).

Matt Zehner, V.P. for Customs Surety at Intercargo Insurance Co. has now brought to our attention a new web site from U.S. Customs which features downloadable, public notice of Filer Code files, including address & phone number info for each user. This information has been added to our U.S. Customs resource center

DID YOU KNOW? ............. Chicago's O'hare Int'l Airport has the port code of "ORD" because its name used to be "Orchard Field". Now you know.

12. HHG Moving Tips

Given that 45% household goods (HHG) moves occur during the summer months, the American Moving & Storage Assn. has some helpful advice for your customers:

13. New HKG Airport Stats

As the $20-billion Chek Lap Kok airport replaces Hong Kong's old & overcrowded Kai Tak airport. Hong Kong is one of the world's biggest cargo hubs.

CARGO RANK (In millions of metric tones annually)
1.   Memphis: 1.63 (due to FedEx)
2.   Los Angeles: 1.37
3.   Hong Kong: 1.30
4.   Miami: 1.28
5.   Tokyo: 1.27

PASSENGER RANK (In millions of people annually)
1.   Chicago: 53
2.   Atlanta: 50
3.   Los Angeles: 45
4.   London: 44
20. Hong Kong: 22

Note: 1997 figures. Source: L.A. Times

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