MSC Dealing With CTPAT Fallout After Major Cocaine Seizure
A recent CBP seizure of about $1.1 billion worth of cocaine aboard a Mediterranean Shipping Company ship has the company working to regain its status in the Customs-Trade Partnership Against Terrorism program, MSC said an advisory to its customers. MSC said its CTPAT certification was suspended and not revoked. CBP seized the cocaine on the MSC Gayane while it was at the Philadelphia seaport, the agency said in a June 21 news release.
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CBP said the 17.5 tons of cocaine found on the Gayane was the largest amount of cocaine ever seized by the agency. The drugs were found while government officials examined seven containers on the Liberian-flagged container ship, CBP said. "A combined 15,582 bricks, totaling more than 35,000 pounds of a white, powdery substance, which tested positive for cocaine," it said.
MSC said its CTPAT certification was "temporarily suspended" and "not revoked" by the agency as a result of the seizure. The company's "customers should only expect minimal disruption as a result of the C-TPAT certification issue," MSC said. "For example, there could possibly be additional inspections on certain containers coming from South and Central America to the USA. There will be no impact on customs clearance for cargo, which is flowing regularly in and out of the USA. We are actively seeking to assure the authorities that our certification can be reinstated as soon as possible. Notwithstanding the suspension of CTPAT status MSC will continue to comply with the requirements of the program."
According to CBP's CTPAT Portal, MSC's CTPAT category status is no longer listed, Geodis Trade Services said in a June 21 email. Geodis said CBP officials told Mary Jo Muoio, senior vice president, Trade Services, that "a carrier without CTPAT may experience additional boarding and is not eligible for [Advanced Qualified Unlading Approval Lane (AQUA)] lane efficiencies" and that "cargo examination decisions are determined by several factors -- one of which is the ocean carrier."
Despite MSC's downplaying of the impact, "it seems logical to expect more scrutiny of shipments carried aboard MSC vessels," Geodis said, while noting its advice is purely speculative at this point. Geodis recommends that its customers review what they have claimed regarding the use of CTPAT certified carriers. "Some CTPAT importers advise CBP that they refrain from doing business with companies that are not CTPAT certified and/or validated," Geodis said. "If you claim as such, you may wish to review." While much is yet to be decided, Geodis said "it should be noted that Maersk Lines cargo-shares with MSC, so if you have contracts with either carrier, you should be aware of the continuing investigation."
Meanwhile, government scrutiny of the Gayane is ongoing, CBP said. "The contents of the shipping containers included wine, coated paperboard, vegetable extracts, and dried nuts from Chile, carbon black from Colombia, and scrap metal batteries from United Arab Emirates," CBP said. "They were destined to Ireland, Nigeria, South Africa, Lebanon, India, and Haiti. The MSC Gayane made port calls to Chile, Peru, Panama and the Bahamas before arriving in Philadelphia."