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Lufthansa and ANA restart cargo tie-up and add NCA and SWISS

Lufthansa Cargo, SWISS WorldCargo, All Nippon Airways (ANA) and Nippon Cargo Airlines (NCA) have signed a Memorandum of Understanding (MoU) with the aim of enhancing cooperation in the air cargo market between Japan and Europe. The four carriers will assess opportunities for collaboration, including greater network connectivity between Japan and Europe, additional routing and capacity options, as well as enhanced flexibility and service choices. The MoU is built on the past alliance between Lufthansa Cargo and ANA, whose parent company, ANA Holdings also owns NCA. In 2014, Lufthansa Cargo and ANA established a cargo joint venture covering the Japan-Europe market, but following restructuring activities within ANA Holdings' cargo business, the cooperation was suspended in September 2023. Now, building on the foundation established by the two companies, Lufthansa Cargo and ANA aim to explore the potential resumption of their cargo joint venture, including SWISS WorldCargo and Nippon Cargo Airlines. "Japan is an important market for Lufthansa Cargo, and our long-standing relationship with All Nippon Airways has enabled us to serve customers reliably for many years," said Ashwin Bhat, chief executive of Lufthansa Cargo. "Together with SWISS WorldCargo and Nippon Cargo Airlines, we now want to explore how we can leverage our respective brand strengths, networks and expertise to create even greater value for our customers. "By offering even more options and flexibility between Japan and Europe, we are further delivering on our mission of Enabling Global Business." Alain Chisari, head of SWISS WorldCargo, commented: "Europe and Japan are both key markets for customers that rely on trustworthy, high-quality air cargo services for care-intensive and time-critical shipments. "Bringing together our strong European network and specialised cargo expertise with the capabilities of our partners could provide customers with an even broader range of transport solutions." Kenichi Wakiya, executive vice president, cargo marketing & services, All Nippon Airways & chief executive, ANA Cargo, stated: "All Nippon Airways and Lufthansa Cargo have built a strong foundation over many years. We are pleased to renew our dialogue and broaden our cargo joint venture to include SWISS WorldCargo and Nippon Cargo Airlines. "By bringing together the individual strengths of all four carriers, we aim to respond even more effectively to the diverse logistics needs of customers in Japan and Europe." "Nippon Cargo Airlines leverages extensive experience in dedicated freighter operations and a strong presence in the Japan-Europe cargo market as we join forces with our partners," added Hiroyuki Homma, president and chief executive, Nippon Cargo Airlines. "We are fully committed to complementing the networks, aiming to provide customers with expanded capacity and flexible routing solutions."

Tougher rules for US imports on DDP put pressure on buyers and suppliers

US companies buying goods on Delivered Duty Paid (DDP) terms have been urged to examine who is responsible for their customs declarations, after US Customs and Border Protection (CBP) introduced new requirements for foreign importers of record (IORs). The interim final rule, published in the Federal Register last week takes effect on 5 January, with new conditions for foreign IORs making both formal and informal entries into the US, as well as additional verification responsibilities for licensed customs brokers. Under the rule, a foreign IOR validated under the Customs-Trade Partnership Against Terrorism (CTPAT) programme can make entries itself, or appoint a licensed customs broker that does not have to be CTPAT-validated. A foreign IOR without CTPAT must designate a broker that is both licensed and CTPAT-validated to make the entry or act as IOR. Where the foreign party is not the owner or purchaser of the goods, the designated broker must act as the importer of record. However, the rule also establishes stricter criteria for determining whether a business qualifies as a US IOR. An individual must be a US citizen or lawful permanent resident, while a company must be organised under US law, located in the country, and at least 51% of its beneficial owners must be US citizens or permanent residents who control the business, or who directly own a significant amount of unencumbered US real estate. Licensed customs brokers will have to verify a client's eligibility before declaring it to be a US IOR. They must request and review supporting records, which could include corporate documents, financial statements, and proof of citizenship or permanent residence. Verification records must then be retained for five years. The development follows CargoTrans's recent tariff webinar, which examined the risks associated with DDP arrangements, noted that in theory an overseas supplier typically arranging import clearance and paying duties and taxes, offered the US buyer a seemingly simpler route to receiving goods. But CargoTrans co-CEO Nunzio De Filippis said the new rule made that convenience harder to achieve, adding: "So that easy button that we spoke about just got harder to press." He advised buyers to establish exactly who is responsible for the import process when their overseas supplier sells on DDP terms. "You have to ask them who is the importer record, who is the customs broker, what does that arrangement look like, and does it meet the new requirements?" he said. "Welcome to the age of strengthening customs enforcement," he added. CBP explained the measures were intended to improve visibility of foreign importers, strengthen accountability, and help ensure duties are collected. The agency highlighted difficulties pursuing unpaid duties and enforcing customs requirements against foreign entities with few US assets. Brokers may request delayed compliance with the new verification requirements before 5 January, but all must be fully compliant by 6 May next year. Comments on the interim final rule are due by 5 January. For US buyers, the update means a DDP quotation alone is no guarantee that the underlying import arrangements meet the new requirements. Buyers should establish who is named as the IOR, which broker is filing the entry, and whether the relevant parties satisfy CBPconditions.

UPS in court bid to recover tariff payments ruled 'unlawful'

UPS has its sights set on US Customs and Border Protection (CBP), launching legal action against the agency to reclaim refunds and interest for tariffs paid under the International Emergency Economic Powers Act (IEEPA), with it having already received some $500m. Filed at the US Court of International Trade on Friday, the lawsuit seeks to compel CBP to re-liquidate entries and issue refunds, not only for duties paid, but also accrued interest, after the US Supreme Court ruled the tariffs unlawful in February. The lawsuit covers entries for which UPS was the 'importer of record' (IOR), allowing it to claim refunds directly from CBP, although the integrator noted that, in many cases, it was customers that had borne the cost of the duties. It said it would pass any recovered funds to them. Together with UPS, United Parcel Service Oasis Supply Corp and UPS Supply Chain Solutions are seeking the re-liquidation of entries on which the 'unlawful' duties were assessed, including those that have already been finally liquidated. Under the CBP's phased Consolidated Administration and Processing of Entries (CAPE), April's Phase 1 covered unliquidated entries and certain entries liquidated within the previous 80 days, Phase 2 followed in June, with Phase 3 opening last month. This covers finally liquidated entries, but refunds can only be processed where the importer has obtained an order for re-liquidation from the Court of International Trade - CBP maintains that such an order is required before it can repay the duties. Pointing to previous assurances from the government that refunds, including interest, would be made if the IEEPA tariffs were found unlawful, UPS said its claim was intended to preserve its own and its customers' rights to recover the money. Having received some $500m from CBP under the tariff refund programme, UPS's latest quarterly filings indicated that, by the start of October, it had passed on around $230m, with $270m still owed to customers.