Tag: Importers

Future Forwarding expands in to Scotland, UK

We have expanded our network into Scotland with the opening of a new branch based in Glasgow, providing freight forwarding services for all modes of transport and international trade lanes. With excellent connectivity for air, road, and sea, this is a key location for Future Forwarding’s development plans, bringing additional knowledge and networks to complement the existing UK offices in Leeds and Manchester.

“We are extremely pleased to be opening our new location in Scotland. It is an exciting time as we look to grow our UK operations and reach new customers. With a long and established customer base in the north of England it seemed a natural step for us to open north of the border, where we hope customers will appreciate our quality of service and personal approach” said Richard Lawford, Managing Director UK

The office based at Rutherglen in Glasgow is headed up by Regional Director Jason Sanders, alongside co-directors Scott Gallacher and Kenny Cooney, all bringing extensive knowledge and many years of experience from the Scottish freight forwarding industry.

 “We are delighted to be joining the Future Forwarding family, and opening an office that will serve Scotland’s companies who trade on an international scale,” said Jason Sanders Regional Director Scotland, “We look to take pride in building solid relationships with customers and suppliers, and providing them support for their supply chain models and businesses through our bespoke and flexible service offerings”

Understanding MoCRA: A Guide to the Modernized Cosmetics Regulation Act of 2022

In the ever-evolving world of cosmetics, ensuring consumer safety and regulatory compliance is of paramount importance. Recognizing the need for modernization, the Modernization of Cosmetics Regulation Act of 2022 (MoCRA) has ushered in significant changes to the regulatory landscape governing cosmetic products in the United States. Aimed at enhancing safety, transparency, and oversight, MoCRA replaces outdated regulations from 1938 and introduces a range of new requirements that impact manufacturers and importers alike. In this blog, we will delve into the key updates brought about by MoCRA, providing valuable insights to beauty manufacturers and importers regarding compliance and industry best practices.

 

Under MoCRA, cosmetic facilities must register with the US Food and Drug Administration (FDA) and renew their registrations every two years. The registration requirement applies to establishments involved in manufacturing or processing cosmetic products distributed in the United States. Existing facilities have until December 29, 2023, to complete their registrations, while new facilities must register within 60 days of commencing manufacturing operations. It is crucial for facilities to initiate the registration process early to account for any unforeseen issues or potential delays from the FDA.

 

The FDA holds the authority to suspend a facility’s registration if it determines that a product manufactured or processed by the facility poses a reasonable probability of causing severe adverse health consequences or death. Moreover, if the agency believes that other products in the facility may be similarly affected due to an inability to isolate the failure or a pervasive failure concern, registration suspension is also applicable. In such cases, the facility is prohibited from selling or distributing cosmetics products in the United States.

Additionally, responsible persons, such as manufacturers, distributors, or packers whose names appear on the label, are required to list each cosmetic product with the FDA. This step promotes transparency and facilitates efficient monitoring of products in the market.

 

The Voluntary Cosmetic Regulations Program (VRCP), which allowed voluntary submission of product information to the FDA, is no longer accepting submissions. MoCRA mandates a more extensive volume of submissions, necessitating the development of a new program by the FDA to handle facility registrations and product listings. This change enables the FDA to manage regulatory oversight effectively, ensuring greater transparency and safety within the industry.

 

MoCRA places a strong emphasis on consumer safety by mandating cosmetic manufacturers to submit safety information about their products to the FDA. This includes reporting any adverse reactions experienced by consumers and disclosing information regarding potentially harmful ingredients used in the products. The FDA utilizes this data to evaluate product safety and take appropriate actions to protect consumers.

 

Furthermore, manufacturers must adhere to Good Manufacturing Practices (GMPs), which encompass guidelines ensuring the quality and safety of cosmetic products. Compliance with GMPs involves using clean equipment, proper handling and storage of ingredients, and implementing robust quality control measures.

 

Another crucial aspect of MoCRA is the requirement for cosmetic manufacturers to disclose the full list of ingredients used in their products on the product label. This shift from previous regulations, which allowed vague terms like “fragrance,” provides consumers with enhanced transparency, enabling them to make informed decisions about the products they use.

Under MoCRA, certain exemptions are granted to cosmetic/drug and cosmetic/device combination products, relieving them from specific requirements including compliance with Good Manufacturing Practices (GMPs), adverse event reporting, registration and listing obligations, safety substantiation, and recordkeeping. These exemptions do not extend to facilities involved in the manufacturing of both combination products and cosmetics.

 

Small businesses are exempt from GMP and registration and listing requirements. A small business is defined as having average gross annual sales in the U.S. for the previous three-year period of less than $1,000,000, adjusted for inflation. It is important to note that the small business exemption does not apply if the business manufactures products that come into contact with the eyes, are injected, are intended for internal use, or alter appearance for more than twenty-four hours.

 

The Modernization of Cosmetics Regulation Act (MoCRA) represents a crucial leap forward in the regulation of cosmetics in the United States. With its emphasis on safety, transparency, and compliance, MoCRA ensures that the beauty industry aligns with evolving consumer expectations. Manufacturers and importers must familiarize themselves with the updated requirements to ensure they meet the standards set forth by MoCRA.


At Future Forwarding, our expertise in supply chain management and deep understanding of regulatory compliance can help you stay on top of these complex requirements. By leveraging our industry knowledge and network, we ensure that you can effectively navigate the regulatory landscape, maintain compliance, and streamline your operations. With our reliable support, shippers can focus on core business while confidently meeting the obligations imposed by MoCRA. To find out more, reach out to Future Forwarding today.

Benefit ABC’s of the FTZ

When is a foreign country not a foreign country for the purposes of customs, manufacturing, and duty assessment? When it’s actually here in the United States, is called a Foreign Trade Zone (FTZ) and allows U.S. companies to perform a wide spectrum of activities, all of which can delay payment of duties, reduce costs through a single entry fee, and cap Merchandise Processing Fees. As a bonus, it allows goods of multiple classifications and ad valorem duties to be imported, manufactured, and be removed, or “exported,” as a different finished product at an even lower duty rate, or even potentially duty-free. 

Foreign Trade Zones (FTZ) are secure and cost-effective options for importers who need cargo held indefinitely or have cargo that will undergo an alteration such as manufacturing, mixing, assembly or repair.  Most merchandise can be imported into an FTZ without formal customs entries or duties, which aren’t required until the goods enter the commerce of the United States. In a specifically designated location under FTZ rules, goods are still considered “international commerce” which means duty can be deferred until the goods leave. 

 

There are a number of benefits of using an FTZ:

  • Duty deferral – Duties aren’t due until the goods leave the FTZ.
    • Inverted tariff relief – if components or raw materials have a higher duty than finished goods, an FTZ allows manufacturers to pay the lower cost. Further to this, manufacturers won’t pay duties on waste, scrap, and loss as the finished goods are all that leave the FTZ as US consumer goods. 
    • Duty-free re-exports – If goods are entering the US just to be reexported to another country (Canada and Mexico being exceptions with their own rules and duties) an FTZ can act as an international point because technically the goods aren’t in the US and don’t have to pay duties. 
    • Single entry filings – using an FTZ means that an importer only needs to file a single Customs entry each week instead of filing one for each shipment. 
    • Inventory storage – Goods can be held at an FTZ for an indefinite period so cargo with quota restrictions is handled and duty is deferred permanently if the goods never leave. 
  • Enhanced security and tracking – FTZ’s by their very nature are tightly controlled. 
  • Easier identification and classification – this can be done at the FTZ and not at a port or Customs control location. 

 

While there are exceptions to every rule, a Foreign Trade Zone offers a number of valuable solutions across 193 active FTZ programs across the United States, at approximately 3,300 businesses, and importing over $767 billion in shipments. If you’re interested in learning more about how your cargo can benefit from adding an FTZ to the routing, reach out to your Future Forwarding representative today to discuss the benefits available to you. 

Unwelcome supply chain surprises: Withhold Release Orders

Importers need to add one more worry to their supply chains: detention orders issued by CBP for issues surrounding withhold release orders. Just as companies should perform due diligence before importing a shipment to look for antidumping or countervailing duties, questions should be asked of foreign suppliers whether or not the finished goods or component parts are the subject of withhold release orders and findings that would prohibit entry.

 

Every finished product begins with a bill of materials. The finished product, depending upon origin and parts, could need to undergo substantial transformation or meet minimum regional value contents to qualify for reduced or duty-free treatment under a bilateral or regional free trade agreement.

 

What happens, though, when one of those components turns out to be prohibited for entry? Importers of FDA regulated merchandise know about automatic detentions – if a product contains an ingredient deemed not safe for humans or animals, the agency detains and denies entry for consumption. CPSC regulated merchandise is the same. Fish & Wildlife prohibits improperly documented endangered species. 

 

Importers of goods from China and other countries are becoming increasingly familiar with Withhold Release Orders – a determination made by CBP that goods from a country, manufacturer, or region are produced using forced or prison labor. When an entry is presented for release, Customs places the merchandise on hold and refuses to allow the importer to clear and receive the goods.

 

Recently, an apparel importer filed a protest challenging an exclusion of goods subject to a WRO. CBP excluded a shipment, claiming the cotton came from Xinjiang Production and Construction Corporation (“XPCC”) and its subordinate and affiliated entities who are the subject of a WRO. 

 

CBP denied the protest.

 

The importer provided documentation showing the raw cotton was sourced from entities in the U.S., Australia and Brazil. What CBP demanded, and the importer could not produce despite the number and different types of records they presented, was no affirmative determination that at any point in the production forced labor was not used.

 

CBP maintains a list of active Withhold Release Orders that spans countries such as China, Brazil, India, Malaysia and others. Impacted industries include fishing, photovoltaic cells and even tomatoes.

 

Future Forwarding strongly encourages our clients to familiarize themselves with CBP’s Informed Compliance Publication on Forced Labor (available here) and also encourages requiring written answers about component sourcing and final point of manufacture locations. Companies should also lay out the expectation with vendors that production records can and will be produced on demand for either an internal compliance audit by the importer or in response to an inquiry from Customs and Border Protection.

 

For more information about Withhold Release Orders and whether your imports could be subject to this increasingly-used program by CBP, contact your Future Forwarding representative today.

FCL Not Available? Think LCL Instead.

Scheduled LCL as a viable option when FCL is unavailable

 

In the days of plentiful containers, on-time schedules and fluid ports, the decision whether or not to pay a flat rate for a full container versus per cubic meter for less than container load was never in doubt for most logistics managers. Now, with rates spiraling out of control and space allocations being how most cargo gets moved, the advantages to LCL shipping are outweighing the disadvantages.

 

If you’re new to contemplating LCL, we should probably start with what is LCL before moving on to why LCL is a better choice in today’s market environment.

 

Ocean freight moves in containers. What is inside those containers falls into one of three groups:

  • A full container that is loaded at a single origin factory for a single recipient at the destination.
  • A buyer’s consolidation in which freight from multiple suppliers is consolidated into that container for a single buyer or recipient at the destination.
  • A groupage container in which cargo from multiple shippers for multiple consignees is combined and shipped together.

 

Future Forwarding provides weekly scheduled LCL service between the United Kingdom and the United States, keeping our customers’ cargo moving on a stable, somewhat reliable schedule.

 

Each week, we commit to receive cargo until the closing date, the date that we stop accepting freight to load into the container. We then take all of the cargo in our possession, play a three dimensional game of Tetris to determine the optimal loading to maximize the space inside the container and give the loaded container to a steamship line.

 

That container with multiple cargo owner’s merchandise sails to the United States where it is taken to a deconsolidation warehouse to be separated into the same lots that were given to us at origin. Each of those shipments separately clears Customs and can be delivered after it is released and available.

 

We have discovered across our network that the cargo which moves the most reliability at this point is regularly scheduled less than containerload cargo. We have weekly confirmed bookings and equipment based on contracts and commitments we established and, by and large, carriers are honoring those contracts.

 

Unlike FCL, which comes with flat rate costs for ocean freight, bunker and terminal charges, the shipping costs and handling charges for less than container load are based on the weight, the volume or some combination of both. The extra handling that comes with loading and unloading the cargo containers at origin and destination adds cost, as well as the cargo being priced per cubic meter of space inside the container versus buying the entire container.

Future Forwarding has offices in both the United States and United Kingdom and  are currently offering fixed-day weekly sailings for cargo between the United Kingdom and the United States.

 

We close out every week on Tuesday evening, sail on Friday and approximately seventeen days later, the cargo arrives in Atlanta via Wilmington, North Carolina. 

 

For importers who order a monthly full container, working with their suppliers to ship whatever is produced weekly via LCL means a steady stream of cargo into their supply chains, avoiding additional weeks of delay after readiness waiting for equipment, a sailing or both. For companies who are unable to secure air freight capacity or for whom delays at origin or destination are causing gaps, LCL is a viable alternative.

 

At Future Forwarding, we understand that less than containerload may not be your first choice. It may not be your best option. It might, in all honesty, be your least worst option until rates, equipment and services have stabilized and become predictable and easier to demand forecast. Regardless of your reason for investigation less than container load, Future Forwarding is here to help.

 

For more information about our weekly LCL consolidation rates and schedule, fill out the contact form below and we’ll be in touch.

 

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