eGov/Mil Newsletter: January 27, 2017

January 27, 2017

In this Issue:

  • 2017 DP3 Rate Filing Round 1 Ends
  • SDDC to Hold Open Season in 2017
  • Air Force Issues New Points of Emphasis for DP3 in 2017
  • SDDC Advisory 17-0048 - Clarification of US Customs Clearance for Import of DoD Personal Property not requiring a Power of Attorney (POA)
  • Implementation of FMCSA’s new carrier registration system delayed indefinitely
  • American Logistic Aid Network Sends Request for Help to IAM
  • Trucking Industry’s Use of Drivers as Independent Contractors Under Siege
  • New DPS Rate Filing User Guide Issued
  • IAM Military News and Resources Page
  • Trump takes over as commander in chief, promising to restore military strength
  • Senate Panel Approves Elaine Chao as Secretary of Transportation

2017 DP3 Rate Filing Round 1 Ends

Round 1 of the 2017 rate filing for the Defense Personal Property Program (DP3) closed on Jan. 20. After a small misstep at the beginning of the round, few, if any, significant problems occurred after the start of this initial phase of the rate filing.

The next key marker in the process will be the release of the rate rejections. IAM has learned from the Surface Deployment and Distribution Command (SDDC) that the plan is to “run the rates processor in the middle of next week. That is the plan because we had a couple of technical hiccups and helpdesk tickets we had to work through which have caused some delays. We are aware of the desire to maintain days between the processor and Round 2 and believe the schedule accommodates that.

Without any further delays that seems to indicate that the rate rejections will be released on or about Feb. 1. The schedule for Round 2 is:

Round 2: 9 Feb 17 (6:00 PM CST) – 16 Feb 17 (6:00 PM CST)

IAM members should be sure to document any issues that arise during the rate filing and/or any anomalies that appear in the rate rejections and immediately communicate those issues to both the System Response Center (SRC)/Helpdesk and to IAM.

Sources: SDDC & IAM

SDDC to Hold Open Season in 2017

IAM had believed that SDDC planned to wait until 2018 to hold an Open Season. Just in the last week we realized that was incorrect. SDDC personnel reached out to IAM looking for feedback on what criteria should be used to vet companies that would apply for an Open Season they are planning to hold in 2017.

The plan is to have the Open Season process happen this year so that any newly accepted Transportation Service Providers (TSP) would be ready to file rates for the 2018 Annual Cycle.

SDDC’s goal is to add new capacity to the Defense Personal Property Program (DP3) and has indicated that their initial thoughts are to:

  • add tangible capacity instead of giving additional access to TSP's currently participating in the program
  • limiting new entrants to certain Interstate channel combinations where origins/destinations have demonstrated shortage of capacity
  • restrict the open season to Motor Carriers (i.e. excluding freight forwarders, move managers, etc.
  • limiting access to those with a warehouse and/or equipment who currently operate in capacity constrained areas
  • limiting access to those who are not already in domestic common financial and administrative control with an approved DP3 TSP
  • limiting access to those not already representing approved DP3 TSPs under exclusive restricted contracts limiting hauling capabilities to that approved DP3 TSP

SDDC also indicated that:

At our discretion, the intent would be for SDDC to progressively transition a successful new entrant into an unrestricted interstate participant within 3 years of program entry (subject to any other existing program rules and requirements).  The examples listed above are proposed items for consideration. Overall the goal is to ensure we bring new entrants into the program that will be able to help resolve the same capacity issues we have in the same locations every year.  Some proposed locations include:

a. National Capital Region

b. North Carolina

c. Northern Tier States (Montana, North Dakota, South Dakota, Wyoming) d. Kansas e. Hawaii f. Oklahoma g. New Mexico h. Colorado

IAM has some significant concerns with a number of the proposed Open Season criteria that SDDC has laid out in their initial communication with the Association.

We need your feedback.

The IAM Executive Committee and other relevant standing committees plan to meet soon to discuss what the Association’s position should be regarding SDDC initial thoughts on the Open Season.

IAM has been asked to provide SDDC with a set of consolidated comments. If you have any thoughts/position that you would like to share with IAM please send them to as soon as possible. SDDC has asked for this consolidated feedback no later than Feb. 17. If you wish to provide feedback to IAM on this issue please do so no later than Feb. 13.

Sources: SDDC & IAM

Air Force Issues New Points of Emphasis for DP3 in 2017

The Air Force Personal Property Activity Headquarters (PPA HQ) is the organization that oversees all the Air Force Joint Personal Property Shipping Offices (JPPSO). The PPA HQ provided IAM with a copy of the Air Force JPPSOs 2017 Special Interest Items.

This year the Air Force JPPSOs will focus on the following items:

  1. Subpar inventories
  2. Failure to deliver shipment on or before the RDD
  3. Failure to update DPS with Reweigh information
  4. Failure to update DPS with DTS delivery and receipt information
  5. Failure to prevent loss/damage
  6. Failure to provide tracer report to PPSO

Specific DTR references and the reasons that the Air Force has chosen these items as ones of Special Interest are included in the memorandum.

Transportation Service Providers and their Agents should familiarize themselves with this year’s Items of Special Interest and put processes and procedures in place to be sure to adhere to the regulations. As has been seen in the past, failure to adhere to these items of interest will lead to punitive action.

Sources : AF PPA HQ & IAM

SDDC Advisory 17-0048 - Clarification of US Customs Clearance for Import of DoD Personal Property not requiring a Power of Attorney (POA)

For almost a month, a debate has been ongoing between U.S. Transportation Command (USTC), SDDC, Customs & Border Protection (CBP) and IAM regarding specific instances where a Power of Attorney (POA) is necessary for the customs clearance of military household goods.

It is clear that no POA is necessary for customs clearance into the United States on most military household goods shipments when a form DD 1252 or a form 3299 is used in the customs clearance process. This is an “informal” customs clearance process and no customs broker nor POA is required.

It is also clear that a POA is necessary for shipments containing alcohol since a customs broker is required for the process. The charges associated with the use of a customs broker to clear shipments containing alcohol are reimbursable and the process for obtaining that reimbursement is stated in the International Tender.

The question that has been debated is whether or not a POA is necessary to clear motorcycles, which are considered “household goods” in a DOD shipment. DOD believes that a POA is not necessary for the clearance of motorcycles and states that fact in the recent SDDC Advisory 17-0048.

At the center of this debate is the proper form to use when clearing a motorcycle into the U.S. in a military member’s shipment and whether or not a licensed customs broker is required. Previously, in most cases, a POA has not been necessary to clear motorcycles in a DOD HHG shipment. However, recently this has changed, in at least some cases at the Port of Baltimore. Some entities clearing shipments on behalf of TSPs have used a form 7401. If that form is being used, CBP has indicated that it must be completed and presented to CBP by a licensed customs broker. Some brokers have then insisted that a POA be provided for them to clear the shipment containing motorcycle(s) on behalf of a military member.

IAM continues to work with all parties to full clarify the regulations but as of now DOD has stated in this latest Advisory that a POA is not necessary and will not be furnished.

IAM suggests that all TSPs should consult with the entities they use for customs clearance and ensure they are using the proper forms to clear these shipments without the need for a POA.

As further information becomes available IAM will disseminate it to the membership.

Sources: SDDC & IAM

Implementation of FMCSA’s new carrier registration system delayed indefinitely

The Federal Motor Carrier Safety Administration is once again delaying the final implementation of its Unified Registration System, which existing carriers will use for their biannual updates, name changes and transfers of authority.

In July, FMCSA delayed the implementation from Sept. 30, 2016, to Jan. 14, 2017. Now the agency is delaying URS’ final implementation indefinitely. FMCSA says it will issue a notice in early January to announce the revised implementation dates.

The cause of the delay, the agency says, stems from FMCSA needing more time to move registration data from its old platforms to the new central database and to further test the system with state agencies.

Since the first phase of the URS, which applies to new carriers only, was launched in December 2015, FMCSA says it has issued more than 100,000 new USDOT numbers, removed more than 360,000 dormant USDOT numbers and has screened 100 percent of authority applications for disqualified carriers trying to “reincarnate” as new carriers.

Editor’s Note – Official notification of the delay can be found at the following:

Unified Registration System; Suspension of Effectiveness

The official notification was sent to IAM in the following communication on Jan. 13:

Good morning, 

I’d like to share with you a notice put on public display this morning that announces the suspension of the Unified Registration System (URS).  During this suspension, entities needing to file will follow the same procedures and forms used to submit information to FMCSA as they do today. 

The URS 1 final rule was issued to improve the registration process for motor carriers, property brokers, freight forwarders, Intermodal Equipment Providers (IEPs), hazardous materials safety permit (HMSP) applicants, and cargo tank facilities required to register with FMCSA, and streamline the existing Federal registration processes to ensure the Agency can more efficiently track these entities. FMCSA is extending the implementation date of the final stage of the URS 1 final rule beyond January 14, 2017, because additional time is needed to securely migrate data from multiple legacy platforms into a new central database and to conduct further compatibility testing with its State partners.

Julie A. Bergling, Governmental Affairs Specialist

Federal Motor Carrier Safety Administration

U.S. Department of Transportation

Source: FMCSA & Moving Forward — PMSA Newsletter

American Logistic Aid Network Sends Request for Help to IAM

In recent years, the American Logistics Aid Network (ALAN) and IAM have worked in partnership to help bring assistance to areas of the U.S. effected by natural disasters. IAM recently received the following request for aid in the Southeastern portion of the U.S. If any IAM members can support ALAN in their efforts, we encourage you to do so.

ALAN is responding to the severe weather which affected several Southeastern states in the past weeks, including last weekend’s deadly tornadoes in Mississippi and Georgia.

We have been in contact with emergency management and non-profit partners regarding their response. At this time, we have open requests for 50,000 sqft of warehouse space in both Hattiesburg, MS and Tifton, GA. If you are able to donate this space or would like more information, please contact me; or submit your offer here:

We anticipate there will be additional not yet identified needs for warehouse space, transportation, and material handling equipment. These requests may take several days to a week to surface as damage assessments are completed and local resources are exhausted. As requests are received they will be shared via this forum and on our logistics map:

We continue to monitor this event and will host a coordination call should there be a need to do so. If you’d like more information on how you can assist with our response activities, please contact me.

Please help us share important messaging about this storm. Follow us on Twitter, Like Us on Facebook, Join our LinkedIn Group.

Thank you for your continued support of ALAN and all those we serve!

Source: ALAN & IAM

Trucking Industry’s Use of Drivers as Independent Contractors Under Siege

Several recent court rulings have dealt setbacks to the trucking industry’s practice of classifying drivers as independent contractors rather than full employees. In decisions against the California Trucking Association and the giant Swift Transportation carrier, two federal judges ruled that truckers should be categorized as employees unless their working conditions meet specific requirements that qualify them as independent contractors.

Read More

New DPS Rate Filing User Guide Issued

The Defense Personal Property System (DPS) Program Management Office has issued a new DPS Rate Filing User Guide which has been posted on the IAM website.

TSPs should review the document before the beginning of the 2017 DP3 rate filing that opened on Jan. 12.

Sources: IAM & DPS PMO

IAM Military News and Resources Page

The IAM Military News and Resources page provides military-based information in an easy-to-navigate tabbed format. In addition, IAM is linking to SDDC Personal Property updates and categorizing them by topic. Currently, on the SDDC website, these updates are hard to find and are organized chronologically – not a very user-friendly way to display information. This new system on the IAM site should make it easy for IAM members to easily find the important information they need. Contact Carl Weaver with questions.

Sources:  IAM

Trump takes over as commander in chief, promising to restore military strength

Business mogul Donald Trump was sworn as the nation’s 45th commander in chief on Friday, promising to return government to the people and return American might to the international stage.

Read More

Senate Panel Approves Elaine Chao as Secretary of Transportation

The Senate Commerce Committee on Jan. 24 approved the nomination of Elaine Chao to be Secretary of Transportation. The panel also approved President Trump’s choice of Wilbur Ross to be Secretary of Commerce.

Read More