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January 2 2023

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72 Journal of Commerce | J anuar y 2, 2023 EXECUTIVE COMMENTARY ANNUAL REVIEW & OUTLOOK 2023 Government ◀ "The supply chain and market structure has experienced profound shis over the past few years, requiring governments to look at policy and regulatory responses through new eyes." Stéphane Graber Commissioner Rebecca Dye, should always act as an incentive to move cargo. Because many shippers now feel they will be charged no matter what, the charges don't provide the incentive to move cargo more effi - ciently and may even aggravate congestion. The FMC is putting rules in place to ensure these charges are properly assessed and carriers or marine terminal operatorsin viola - tion of the law are held accountable. The COVID-19 pandemic and the intense shifts in demand for ocean shipping revealed weaknesses in our ocean cargo system, and the FMC is doing its part to shore up the supply chain system and ensure fair treat - ment of US importers and exporters. Enforcement is key. With only nine large carriers dominating the oceans, the FMC must remain vigilant to ensure competition and integrity in the market and set a robust deterrent to breaking the rules. Helping exporters — especially agricultural exporters — remains a top priority. The FMC will ensure, consistent with OSRA-22, that no exporter is unreasonably denied vessel space. Complementing these efforts, the FMC's Vessel-Operating Common Carrier (VOCC) Audit Program will continue assessing how the largest ocean carriers are serving exporters and help facilitate adoption of VOCC policies to increase export carriage. International Association of Freight Forwarders Associations (FIATA) Stéphane Graber Director General The global supply chain has continued to experience significant shocks in recent years, spurred on by the pandemic, regulatory changes, drastic variations in demand pat - terns, and geopolitical conflict. This has had visible impacts on the avail- ability of goods, traditional transport modes and routes, and, consequently, the price of the product. The global pandemic brought logistics and transportation to cen- ter stage in governmental priorities. Meanwhile, the supply chain and market structure has experienced profound shifts over the past few years, requiring governments to look at policy and regulatory responses through new eyes. Indeed, now is a time when many countries, including the US, are re-evaluating their regulatory positions relating to the shipping sector and transport- related infrastructure. The US Federal Maritime Commission has been leading regulatory reform, while the European Union, Austra - lia, and Malaysia are reviewing their regulations governing vessel-sharing agreements and competition law exemptions to shipping lines. Regu- lators in India and China have been examining weak links in infrastruc- ture and improving their transport capacities. The past few years have exposed the fragilities within the supply chain, and there is a need to build resilience so that it can with- stand inevitable crises in the future. The trend to look inward in many jurisdictions is catalyzed by lessons learned from the increase in rates and loss of reliable connectivity resulting from global shipping capacity being repositioned. It will be important to ensure regulations are appropriately framed to facilitate inclusivity and National Customs Brokers & Forwarders Association of America (NCBFAA) JD Gonzalez Board President The year 2022 has been yet another year of "interesting times" for our industry. As the first year of my two-year term comes to an end, I can say that never before has trade been more of a front- page issue in the media and never has it been more exciting to be at the fore - front of what comes next. While 2020 saw panic and trade volumes initially plummet, and 2021 witnessed an abso - lute explosion in trade volumes, 2022 has been a year of finding a new equilib- rium. Predictions for continued upward pressure on gas prices, contraction of growth on a global scale, and supply issues involving energy and grain will make for another interesting year in 2023. Looking into the upcoming year, we see a con- tinued focus on the Ocean Shipping Reform Act's implementation. The Federal Maritime Commission (FMC), a relatively small agency, has been given a heavy lift with this large piece of legislation. It will require the FMC to promulgate regulations that both achieve the congressional intent of the legislation and allow for a better trade balance and flow. NCBFAA con - siders the FMC to be one of our primary agencies for engagement, and we have been at the forefront of this regulatory agenda to ensure that our members receive clear and implementable "rules of the road." Speaking of rules, the long-awaited Customs and Border Protection (CBP) section 111 regulations, which govern the customs brokerage industry, were issued by the agency in late 2022 with a very short implementation window of 60 days. While Dec. 19 might be the official date for implementation, we know the ripple effect of these new regulations will be felt well into 2023. NCBFAA continues to seek clear and uniform written pol - icies and procedures from CBP, so that our members under this new national permit system can best support their clients across the country. Also in CBP, the 21st Century Cus - toms Framework (21CCF) effort will most likely continue to dominate the customs landscape in 2023. NCBFAA has been at the forefront of this effort to find a balance between enforcement and facilitation and is supportive of the trade efforts to cocreate with CBP a modernization package that we all can live with for the next 20 years. NCBFAA is especially grateful for the incredible amount of work that the Commercial Customs Oper - ations Advisory Committee (COAC) — of which I am one of the 20 members — has dedicated to this signifi- cant effort since the start of this term. Finally, we continue to look toward a future of one true US government approach to trade and one face at the border, with one entry and one release being rec- ognized by all of the partner government agencies that touch trade. Through our NCBFAA Regulatory Agen- cies Committee, we have met with dozens of federal agencies, broadened their understanding of trade and the role our members play in it, and ultimately helped build a more seamless and functional trading system here in the US. I look forward to a productive and prosperous 2023 for NCBFAA, our clients, and the entire global trade community. "Never before has trade been more of a front-page issue in the media and never has it been more exciting to be at the forefront of what comes next."

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