October 30, 2002
Ocean Freight Customers of Danzas AEI Intercontinental and Danmar Lines doing business to and from the United States of America please take note of anticipated and pending changes of Rules and Regulations to improve US Maritime and Homeland Safety and Security outlined below:

Facts
What is C-TPAT? (Customs?Trade Partnership Against Terrorism)?
What is CSI (Container Security Initiative)?
What does it all mean to our customers?
What is Danzas AEI Intercontinental doing to minimize the impact of all these changes?

Facts

	Despite many recent articles and news bulletins released by trade publications, shipping lines and other logistics providers, there are no new rules and regulations in place as of today, October 30th, 2002
	US Customs has started 2 initiatives in 2002: C-TPAT and CSI
	Under CSI, it is anticipated that carriers and logistics provider will be required to provide Manifest information to US Customs 24 hours prior to departure of US bound shipments/containers at port of origin
	Numerous organizations (Forwarders and major Importer/Exporter Associations) are opposing the rules citing the proposed rules as unreasonable and incompatible in today?s international supply chain management
	WSC (World Shipping Council), the ocean carrier Washington lobbying group, has informed US Customs in a letter that the rule will cause chaos and will not accomplish the security objects sought
	NVO-GAC?s (Non Vessel Operating Common Carrier ? Government Affairs Conference, an organization of which Danzas AEI Intercontinental was a founding member) point of view is that US Customs is already committed to these proposed rules and is fully supportive of all changes that will increase port and homeland safety as long as trade flow is not disrupted
	Other port security bills and Initiatives are still pending that could bring further rules and regulations changes in the near future
	We expect US Customs and the US Census Bureau to announce similar changes for export shipments/containers leaving the USA shortly
	For US Exporters, we expect that US Customs will eliminate Option 1, 3 & 4 in AES (Automated Export System). This will require that all commodity data must be available before sailing
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What is C-TPAT? (Customs?Trade Partnership Against Terrorism)?

	A voluntary joint government-business partnership to enhance the supply chain and border security
	C-TPAT recognizes that Customs can provide the highest level of security only through close cooperation with the ultimate owners of the supply chain ? importers, carriers, brokers, warehouse operators and manufacturers
	Requires participants to assess and develop new practices to tighten up supply chain security. In turn, participants receive expedited cargo processing
	Customs is asking business to ensure integrity of security practices and communicate security guidelines to supply chain partners
	This is a voluntary program. It is expected that C-TPAT certified customers will want to work with C-TPAT carriers and logistics companies only
	So far several hundred importers have agreed to participate
	C-TPAT has been opened to carriers in July 2002 and most carriers have agreed to participate
	In August 2002, it has been opened to Forwarders and Logistics companies
	Danzas AEI Intercontinental immediately submitted its application to join C-TPAT

What is CSI (Container Security Initiative)?
The Container Security Initiative consists of 4 core elements:

	Use of automated information to identify and target high-risk containers
	Pre-screening those containers identified as high-risk before they arrive at U.S. ports
	Using technology to quickly pre-screen high-risk containers
	Using smarter, tamper proof containers

	The ports of Halifax, Montreal, Vancouver, Singapore, Hong Kong, Yokohama, Tokyo, Kobe, Nagoya, Rotterdam, Antwerp, Bremerhaven, Hamburg, Le Havre have joined CSI
	US Customs is positioning inspectors at these major foreign seaports
	New high security steel bolt seals and maybe even electronic seals equipped with RF (Radio Frequency) or GPS (Global Positioning Systems) will be required
	US Customs will be asking carriers and NVOCC's to provide manifest information at port of origin 24 hours prior to sailing

What does it all mean to our customers?

	There is a good possibility that these new changes can, especially in the early stages of implementation, disrupt and delay your supply chains regardless of whether you are importing to the USA or exporting from the USA. Combined with the effects of the recent lockout at all US West Coast Ports, please take these possible delays into consideration in your logistics planning
	You can minimize any additional delays by reviewing your documentation processes and make sure that your shipping documents (usually your commercial invoice and packing list) are available as soon as your shipment is ready at origin. US Importers should review these processes with their vendors, manufacturers and overseas offices. Please also ensure that all commercial invoices and packing lists contain accurate and detailed commodity descriptions.
	For all customers loading full container loads, we will provide information on the exact specifications of the new high security steel bolt seals that will be required to lock containers as soon as they become available

What is Danzas AEI Intercontinental doing to minimize the impact of all these changes?

	We have been monitoring these developments since the early stages to be able to provide you with details as soon as they become available
	You can be assured that Danzas AEI Intercontinental is operationally well prepared to handle these new regulations as efficiently as possible to minimize additional delays
	With your support to provide us with your complete shipping documents as early as possible you will allow us to expedite your shipments the fastest way possible
	Customers interested to learn more about C-TPAT can find additional information at www.customs.ustreas.gov. We do provide assistance with the application process through our consulting division

Please note that due to the complex nature of the subject matter, DHL Danzas Air & Ocean cannot be responsible for actions taken by the reader in reliance on the information contained herein without prior consultation with DHL Danzas Air & Ocean.