WCA members shipping to brazil must read this

Dear members,

 
As of 6 May, 2013 Normative Instruction from the Federal Reserve of Brazil ( No. 1.356/2013) came into effect making substantial changes in Customer clearance/cargo release procedures.
 
Importers and consignees in Brazil are NOT REQUIRED TO PRESENT ORIGINAL BILL OF LADING or AWB to obtain release of cargo. In consequence of this amendment importers and consignees will be able to gain possession of cargo even if the Original Bill of Lading/AWB is in the Shipper´s hand.
 
A few weeks ago, WCA passed on an alert drafted by WCA member ILS Cargo Transportes explaining the new law and how origin agents worldwide can protect themselves and their clients.  A few other Brazilian WCA members have also offered their advice, as follows:
 
Alfredo Roussos of Leadership Freight suggest that “the only way to protect ourselves is the overseas agent avoid sending the copy of the “Original 2 (for Consignee)” of the HAWB in the pre-alerts to the destination agent and to the exporter so that the consignee has no access to the copy of the “Original 2 (for Consignee)”.
 
“Release of ocean freight cargo is less problematic as the carrier will not release cargo if destination charges such as THC, ISPS are not paid”, explains Antonio Fernandes of Greenwich International.  In such cases, “the terminal contracted by the steamship line will not release the shipment even if it was cleared by customs”.  Destination agents in Brazil should refrain from releasing any copy of “Original No. 2” until consignee remits the destination charges AND they have verified with origin agents that the shipper has been paid for the merchandise and has therefore released original bills of lading to the consignee.
 
Further complicating matters is that fact that some jurisdictions in Brazil have not yet implemented this new regulation while other ports and airports are already enforcing it. Despite these irregularities, please take the prudent path and AVOID the potentially disastrous consequences of issuing copies of “Original No. 2”.
 
To REINFORCE, the best way to protect your interests and those of your clients:
 
1.   DO NOT SCAN ANY ORIGIN NO. 2 (FRONT AND REVERSE) TO ANYONE WHO REQUESTS IT

2.       OR BETTER YET, URGE YOUR CLIENT SHIPPERS NOT TO SHIP CARGO UNTIL THEY HAVE RECEIVED FULL PAYMENT FOR THEIR MERCHANDISE