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Introducing CARGO INSURANCE e-SSENTIALS!

Cargo Insurance Fundamentals Explained for Logistics Service Providers  We’re thrilled to release the *NEW* e-Book titled, CARGO INSURANCE e-SSENTIALS.  This e-Book was developed to serve as a valuable resource and reference document for Logistics Service Providers and those involved in Supply Chain Logistics. This is the first resource planned in a series of insurance and surety related reference documents. This electronic document will be updated as necessary with new or expanded information related to Cargo Insurance and it how the coverages function in the real world. The goal of this CARGO INSURANCE e-SSENTIALS is to help Logistics Service Providers explain potentially complex insurance topics in more straightforward terms to their cargo owner clients. The e-Book addresses the different facets of the cargo insurance policy and why cargo owners need this coverage.   Listed below is the table of contents for CARGO INSURANCE e-SSENTIALS. What is Cargo Insurance? Carriers Obligation to Pay Coverage Types Common Exclusions Duration of Coverage Clauses Policy Limits Insured Value and Premium Special Valuations Claims Glossary   Functionality CARGO INSURANCE e-SSENTIALS is designed to give you information and insights on what you want to know, when you want to know it. The table of contents (above) is displayed on the side panel of each page enabling you to jump to the topic of your choice. In addition, a glossary is included in the e-Book that provides the definition of all key terms important to the LSP’s and cargo owner’s understanding of the cargo insurance policy.     Why We Published the CARGO INSURANCE e-SSENTIALS e-Book At Roanoke Trade we believe in the importance of simplifying the insurance process and educating our clients and partners about the insurance and surety products that impact their business and their customers.   About Roanoke Trade Roanoke Trade, a division of Roanoke Insurance Group Inc. and part of Munich Re Specialty Group Ltd., operates as a specialty insurance broker focused on surety and insurance solutions for logistics service providers, customs brokers and companies with supply chains.  We value our decades of partnership with the trade community as a trusted  provider of customs bonds, marine cargo insurance and ATA Carnets.  

Is It Time to Sharpen the Saw? Welcome to KnowledgePort

In 1963, John F. Kennedy said, “Leadership and learning are indispensable to each other.” Across the country, our team is there to listen, and you let us know what we can do to be a better partner and an asset to your team. To that end Roanoke’s staff of insurance, surety, and ATA Carnet experts are always learning and, in turn, hoping to impart our knowledge as well as our educational resources to you. Although we have offices throughout the country to serve you, these days we’re not able to see our clients as much as we want to. Shelter-in-place orders require that we all work from home. Now is a great time to focus on training and education, especially through online tools and interactive applications. Welcome to KnowledgePort™, our online learning management platform that we built specifically for our clients and partners. KnowledgePort™ provides training on insurance topics, risk mitigation and loss prevention strategies, surety bonds, and ATA Carnets. Through KnowledgePort™, Roanoke clients can learn the foundation of these topics via on-demand interactive courses and recorded webinars. The webinars, led by Roanoke professionals, are often co-hosted by partner companies such as logistics-focused law firms and consultants to bring the best minds together for you. Best of all, all courses are free to Roanoke clients, and most courses are eligible for NEI continuing education credits for CCS, CES, and MES designations. The current online course catalog consists of 18 modules. A few examples of highlighted courses include: ATA Carnet Fundamentals (Interactive Course): Clients will learn about the ATA Carnet document and the process of temporary importation, why the ATA Carnet is considered a passport for goods, what goods qualify, and which may be exempt from other government requirements. Also covered are the three types of temporary importation that fall under the ATA Carnet. Learn about best customs clearance practices — from mitigating claims to avoiding compliance red flags.   Cargo Insurance Basics (Interactive Course): Clients will gain a strong foundation in what cargo insurance is, how cargo insurance works, and the importance of the cargo owner insuring each and every shipment. You will be learn to explain to clients, how carriers limit liability, how insured value is calculated, and what happens in the event there is a loss to a cargo and a claim needs to be filed.   Can You Afford…
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Shipper & 3PL Contract Considerations | Roanoke Trade

Last updated on May 20th, 2020Managing the Risk for Brokers and Shippers The Transportation Intermediaries Association (TIA) recently released a comprehensive whitepaper titled, “Shipper 3PL Contracts Considerations” as a guide to navigating contracts for its members. Our own Glenn Patton, VP Business Development and a board member of TIA contributed to the piece, and we are happy to be able to offer access to the whitepaper to our clients and partners as well.       It’s not uncommon for brokers and logistics service providers to be presented with contracts by their shipper clients. While every situation is different and should be managed on an individual basis, there are some general issues LSPs should consider when presented with contracts from clients. In best-case scenarios, good contracts are designed to protect both the shipper and the logistics service provider; however, there are instances where contracts are worded in a way that puts a lot of the legal responsibility on the LSP. At Roanoke, it’s our goal to act as a resource for shippers and brokers to ensure they are making the right decisions for their business and employees.     Third-Party Logistics Contract Considerations for Brokers   As a general rule of thumb, we suggest that logistics service providers never contractually agree to perform tasks that only the actual carrier or driver can accomplish. This puts an unnecessary risk on the LSP and opens them up to potential legal issues that are ultimately outside of their control.   Just some examples of this include:   • Dictating a driver’s route • Having a driver check-in throughout transit • Verifying equipment maintenance • Drug testing drivers • Changing the contract language to “shipper-carrier” • Auto liability requirements It’s recommended that logistics service providers carefully review all language in a contract presented by a shipper. If there are requests or requirements in the language that are too demanding for motor carriers, there is a good chance as a third party broker it will be difficult to find a compliant carrier.    Another common issue that logistics service providers should watch out for is any language in a 3PL contract that can make them legally responsible for the actions of the client or shipper. This can include anything from placing unlimited liability on the LSP to indemnifying them for shipper negligence.   Ultimately, contracts are a way for shippers and logistics service providers to clarify their roles and protect themselves throughout the transaction. It is in the best interest of both parties to carefully review all contracts with their attorneys and insurers before ever signing. Many insurance policies don’t…
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CBP Provides Details of Duty Deferral for COVID-19 Relief

Last updated on May 20th, 2020 Since the start of the COVID-19 pandemic crisis, there have been shifting reports that the White House would impose temporary changes to duties, taxes and fees payment schedules in order to grant relief to importers. This past weekend, an Executive Order was issued that provides up to a 90-day duty postponement to qualified importers whose entries meet select conditions. The details of the CSMS message include: 1. The relief requires that importers seeking duty deferral be suffering “significant financial hardship.” This term is vague, but CBP provides guidance stating: “An importer will be considered to have a significant financial hardship if the operation of such importer is fully or partially suspended during March 2020 or April 2020 due to orders from a competent governmental authority limiting commerce, travel, or group meetings due to COVID-19, and as a result of such suspension, the gross receipts of such importer for March 13-31, 2020 or April 2020 are less than 60 percent of the gross receipts for the comparable period in 2019.” 2. Certain entries paid by one-time check, daily statement or Periodic Monthly Statement are eligible for the deferral. •  This includes formal entries of merchandise entered, or withdrawn from warehouse, for consumption (including entries for consumption from a Foreign Trade Zone). 3. Entries are not eligible for payment deferral if: •  Duties, Taxes and Fees have already been paid. •  Any line on the entry is subject to ADD/CVD. •  Any line on an entry is subject to Sections 201, 232 or 301 trade remedy tariffs. ° If an importer has a Section 232 or 301 approved exclusion prior to entry, the entry may be deferred if no other conditions apply (e.g. ADD/CVD). 4. Those importers who pay duty on period monthly statement have until 11:59 PM ET Monday, April 20th to amend their payment date for March entries. We encourage you to read the full CSMS 42423171 message for all relevant details including instructions on how to make payment. We also want to stress the importance of adhering to previous CBP instructions from CSMS 42421561 which emphasized that importers and CHBs should NOT prevent pending payment authorizations from occurring: “Any debit authorizations that have already been submitted to CBP will be sent for withdrawal on the regular schedule. Under certain conditions, if an importer or filer realizes…
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Employees Working Remotely? Step Up Your Cybersecurity

Last updated on May 20th, 2020The fallout from the COVID-19 pandemic in lost lives and economic disruption is tremendous. The pandemic has also caused unprecedented changes in the way we work. Many individuals throughout every sector of business are now working remotely. This includes the transportation sector, particularly as more state governments across the country impose stricter guidelines to stem the spread of the coronavirus. According to the National Customs Brokers and Forwarders Association of America (NCBFAA), customs broker and freight forwarder offices – large and small – throughout the United States are increasingly having employees work from home. The trade has shown confidence is the industry’s paperless environment, with the use of email, electronic data interchange (EDI) and blockchain, all of which enables documents to be scanned and transmitted securely online between parties. While it is tremendously positive for business that many of us are able to conduct work remotely, it’s important to remember that cyber criminals are looking to exploit an environment that falls outside of the usual boundaries of IT security.  With the increased use of personal internet service and personal devices that lack the accustomed level of security, a company’s IT infrastructure can be exposed to greater risks. Therefore, cybersecurity needs to be a top priority for every organization. This includes reviewing your data breach response plan to ensure it reflects remote workers. If your response plan or company policies and procedures don’t address remote work, now is the time to establish clear guidelines covering remote access to your company information systems and the use of personal devices. In addition, review your incident response plans to ensure your organization is prepared to respond to a data breach or security incident. Managers and all employees should also be familiar with applicable security guidelines, plans, and policies. Following are several measures you and your workers should be taking to mitigate the risk of a cyber breach while working remotely: • Safeguard all data related to confidential business information, trade secrets, protected intellectual property, work products, customer and employee information, and other personal information. • Provide remote cybersecurity awareness training, including on how employees can detect and handle phishing attacks and other forms of social engineering. Phishing and email scams are on the rise on the heels of the coronavirus. According to research from Barracuda Networks, the number of…
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ATA Carnet COVID-19 Updated Best Practices

Last updated on April 16th, 2020 **Last Updated 04/16/2020** COVID-19 continues to impact international travel, cargo shipments, and public and private events of all kinds. As such, ATA Carnet shipments are more susceptible to disruptions as country’s take action to stop the spread of COVID-19. Even in relatively good conditions right now, you may encounter unexpected difficulties booking timely re-exportations to meet ATA Carnet expiration deadlines. We understand the concerns of our clients and partners and will continue to work to keep you informed as this situation progresses. We have received new information relating to how specific ATA Carnet countries are handling the continued impact of COVID-19 on ATA Carnets. While our general recommendations on best practices for using the ATA Carnet in the time of this pandemic are unchanged and remain available below, we have received an updated release from  the U.S. Council for International Business (USCIB) and wanted to outline the most critical information for you. Important country-specific ATA Carnet updates: 1. Italy is allowing for a one month grace period after expiration date that does require approval from the Italian Guarantee Association. For longer than one month extensions Italian customs is recommending that a replacement ATA Carnet be obtained. For ATA Carnet shipments in Italy seeking to take advantage of the grace period being offered, you need to send an email to the Italian NGA at estero@legalmail.it, as well as include USCIB in the CC at replacements@uscib.org, gsung@uscib.org, and tsample@uscib.org. The email should include: a statement explaining that the reason for the delay in re-exportation is due to COVID-19 related complications, the ATA Carnet number, the expiration date and the name of the Customs office where the ATA Carnet is intended to be presented for re-exportation. 2. The Czech Republic is allowing all ATA Carnets including expired ones to be treated as valid. This means that any ATA Carnet, even if expired, should be presented to Czech Customs for exportation as soon as possible. They will honor this during government mandated lockdowns and for a short period after the mandate is lifted. 3. United Kingdom is offering a grace period but this has to be requested and approved by the UK Guarantee Association. In order to request the grace period for on your ATA Carnet, please email us the following information: Carnet Number, Expiration Date, Holder Name, Total Value on the General List, Port…
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Understanding Incoterms 2020 | Roanoke Trade

Understanding the Changes that Impact Insurance Recently, Roanoke President, Karen Groff, was featured in the NCBFAA monthly newsletter to talk about the release of Incoterms 2020. The NCBFAA, or National Customs Brokers and Forwarders Association of America, has been a prominent and effective voice for the industry since 1897, and they closely watch over legislative and regulatory issues that affect their members.    With the recent release of Incoterms 2020, some additional clarity has been provided to address some points of the confusion in the 2010 version. Karen Groff wrote a piece designed to help the industry absorb this information and understand exactly how it impacts insurance moving forward, and the NCBFAA published her message to keep its members at the forefront of these important changes.    Key Takeaways While we strongly encourage you to read the full article from the NCBFAA Newsletter, we have compiled a few of the major takeaways for the logistics and trade industry as a whole. In general, the changes have been regarded as positive up to this point, but need to be carefully read and understood.    Some of the general highlights include:   The Difference Between Cargo Clauses – In the article, Karen Groff explains in detail that Cargo Clause C only accounts for “named risk” coverage, while Cargo Clause A is designed to provide “all-risk” coverage.    Changes to CIP – Another relevant topic covered in the article is the increase of the minimum insurance requirements for goods traveling CIP (Carriage and Insurance Paid To).    Newly Released Mobile App – To improve the understanding of the Incoterms 2020, the ICC has released a very useful mobile app for the cargo industry to use as a resource.    The biggest thing to understand from the newly released Incoterms 2020 is that the ICC has taken great strides in providing additional clarity and understanding for those in the cargo industry.    Read the full article by Karen Groff in the NCBFAA newsletter and visit the International Chamber of Commerce webpage on Incoterms 2020 to learn more.    For additional in-depth insights into Incoterms 2020, please watch the recording of our webinar hosted by Rick Bridges and presented by Pam Holdrup and Cheryl Fee of Proven Logistics Solutions.   About Karen Groff, President of Roanoke Trade: Since 2017, Karen has been responsible for the leadership,…
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COVID-19 CBP Guidance: Duty Payment Deferral

On March 26, 2020, U.S. Customs & Border Protection issued CSMS #42161666 Additional Guidance for Entry Summary Payments Impacted by COVID-19. This message is a follow up to CSMS #42097586 Additional Days for Payments due to COVID-19 issued on March 20, 2020. CBP had granted duty payment extensions for many importers on a case by case basis as instructed in the CSMS #42097586. The notice advises those importers must initiate payment of approved duty deferrals by Friday March 27, 2020. If full and timely payment is not made, liquidated damages will ensue. For monthly statement payments due on March 20, 2020, debit vouchers may result if ACH payments failed. The notice further states that no more extensions will be granted. However, CBP may allow additional days for narrow circumstances, such as a physical inability to file entry or payments, due to technology outages or port closures. The extension of a payment deadline exists outside of the ACE system and might not prevent an automated issuance of liquidated damages. ACE might conclude the payment is untimely and trigger issuance of CBP form 5955a. We urge you to reach out us at infospot@roanokegroup.com to report any importers who have received duty payment extensions. This will allow us to track claims and ensure they are correctly handled.

COVID-19 ATA Carnet Best Practices

COVID-19 has already had a big impact on international travel and especially on large events. As such, ATA Carnet users are susceptible to disruptions right now, especially those needing to transit through multiple countries to operate effectively or even those going to single countries where quarantines or event cancellations are taking place. Furthermore, you may encounter unexpected difficulties booking timely re-exportations to meet carnet expiration deadlines. While we can’t make travel any easier, we are here to try to support our clients with best practices. Be proactive around approaching ATA Carnet expiration dates. If your established re-exportation plans are disrupted, you don’t want to get stuck with an ATA Carnet claim fee for late re-exportation in addition to the hassle of cargo rebooking. Reach out to our ATA Carnet Helpdesk. We can assist with requesting an extension or providing a Replacement ATA Carnet which will allow an additional 12 months in most member countries. Keep all documentation related to your trip. Airline tickets, cancellations, and rebookings, bills of lading or airway bills, hotel reservation extensions, and anything related to travel delays can help us as we work with the U.S. Council for International Business (USCIB) to mitigate any carnet claim issued against you that is the unforeseen and unavoidable result of this virus. Reach out as early as possible if your trip is disrupted. We have been working closely with the USCIB regarding the COVID-19 impact on ATA Carnets, and we are here to advocate for you. The USCIB has a direct line to foreign guarantee associations and foreign customs, and together we can help. The sooner we start the process though, the better for you. The US Council released the following statement: “We will work with Foreign National Guaranteeing Associations and National Customs Administrations to attempt to mitigate any ATA Carnet claims for U.S. issued Carnets that are caused by restrictions in the country of re-exportation due to the virus.  USCIB has been in contact with China Customs and have received their support on dealing with any future claims on U.S. issued Carnets. At the same time, USCIB also plans to work with U.S. Customs and Border Patrol (CBP) in efforts to help mitigate any Chinese Carnets impacted by the virus on re-exportation from the U.S.” With all the complications that a global concern like COVID-19 causes for daily…
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Cyber Risks and Supply Chain with Roanoke’s Glenn Patton

Live from AirCargo 2020, Roanoke Insurance Group’s Glenn Patton was featured on the FreightWaves INSIDERS podcast. In his conversation with supply chain expert Timothy Dooner of FreightWaves, Patton provides ways the transportation and logistics industry can be aware of the growing supply chain (including cyber) risks and stay competitive and relevant in these turbulent times. From high-end French chocolates, to truckloads of tablets, to even having to turn down the chance to insure the Declaration of Independence, Glenn Patton, VP of Business Development, shares his career’s worth of insurance and trade risk expertise with the podcast audience in this entertaining and educational interview. Glenn and Tim even discuss how Lloyd’s of London valued the insurance on NFL player Troy Polamalu’s hair! View the full interview below, or read on for more details. Premier among today’s supply chain risk concerns is the ever-growing threat of cyber crimes. Patton explained, “The (logistics) industry itself has reached the top 5% as the targets. Everything is done electronically now.” From issues as seemingly innocuous as fake invoices to nuclear-level cyber crimes of stealing data and ransomware, as the transportation and logistics field grows, so do cyber risks. While data and cyber crimes are now the biggest industry concern, traditional physical losses remain an ever present threat, and education remains the best way to mitigate the risk of loss. Besides assessing and insuring cyber risks, Roanoke proactively conducts webinars centered on supply chain risk and provides our online learning platform Knowledgeport to educate customers about current industry best practices as well as the fundamentals of cargo insurance, ATA Carnet, and customs bonds. In addition to supplying coverage for traditional freight and cargo, as part of the Lloyd’s of London syndicate, Roanoke Insurance Group has insured valuable and interesting commodities from around the world, including the ballots from the Iraqi election to music tour equipment for superstar bands like the Rolling Stones. Tours frequently cross international borders, and Roanoke is at the forefront of supplying ATA Carnets to facilitate the passage of equipment through customs and avoid the cost of duties and tariffs. While piracy remains a tremendous threat to freight and cargo on the move, sometimes that cargo is digital. As Patton cited, data breaches and ransom demands from cyber criminals can be more costly than actual loss to cargo. Cyber insurance policies are constantly…
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