2011 SDDC Personal Property Workshop Industry Panel Discussion The View from Italy

1. The Pasha Group 2011 SDDC Personal Property Workshop Industry Panel Discussion The View from Italy

2. Presentation Outline • Importing Service Members’ Motorcycles • TSPs role and the various requirements of the respective Military Bases in Italy • P1 Ocean Carrier Service • One year on - improvements and transit overview • DP3 • Perspectives from the General (Shipping) Agent and Local Servicing Agent

3. Importing Service Members’ MotorcyclesTSP’s Role • Motorcycles cannot clear Customs at the Italian port of entry with the household goods. • A separate T1 in bond document must be issued which means the motorcycles must be inspected and cleared at the ultimate destination in order to close the T1. • It is the TSP’s role is to ensure that any shipment containing a motorcycle must strictly adhere to the following requirements: • TSPs should instruct their CONUS Pack Agents to be proactive by securing and providing them a clear and legible copy of the title & registration indicating the correct VIN Number and the Service Member’s name, as appears on the GBL, as soon as possible. Suggested to request these documents when the Agent makes the initial contact with the Service Member to arrange pack and load schedule. • Motorcycle is noted on the GBL • The clear and legible copy of the title & registration is submitted to the CONUS port agent prior to the loading of the motorcycle in a container destined to Italy. This will enable our Port Agents in Italy to prepare the T1 for Italian Customs prior to the container’s arrival. • Motorcycle indicating the correct VIN Number must be listed on the OBL • Failure to provide the correct documentation on motorcycles will result in the entire container being held in transit, resulting in additional Customs and port storage charges. This will also affect all household goods shipments in the container by jeopardizing their RDDs. Also if the motorcycle does not clear Italian Customs on the T1, the Service Member will not be able to register the motorcycle in Italy.

4. Importing Service Members’ Motorcycles • Requirements of the Military Bases in Italy • Vicenza, Livorno, Naples and Sigonella • Only Motorcycles 50cc and above must be registered/plated * • Aviano • All motorcycles either under 50cc or 50cc and above, including mopeds, scooters, dirt bikes, three wheelers and quads, are required to be registered. • All motorcycle types mentioned above must be listed on the accompanying GBL and OBL. • Italian Customs requires a clear title with a legible name of the Service Member, VIN number, make, model & year of the motorcycle, and a clear and legible registration with the same information as on the title. • In cases where a bank or lending institution is holding a lien on the title Customs will accept a lien-holder letter written on their letterhead. The Service Member’s name, VIN number, make, model and year of the motorcycle must be included in the lien holder's letter. • *ANY BIKE UNDER 50 cc and OFF ROAD vehicles destined to these bases such as mopeds, scooters, dirt bikes and quads are NOT required to be registered/plated and therefore must NOT be listed on the accompanying GBL and OBL

5. Some Observations on Declaring Motorcycles • We understand that by declaring any kind of motorcycle on the GBL/OBL it will automatically generate a T1 customs document that cannot be closed if the motorcycle is not or cannot be registered in a short time at the MVRO. • (Unclosed T1s generate fines levied by Italian Customs.) • This situation creates a dilemma with many uncertainties. It is suggested that all the Bases and the respective MVROs should receive clear directives with common rules. • For example the most straight forward solution would be to declare all vehicles on shipping documents, Customs cleared, and have them registered on Base.

6. P1 Ocean Carrier Service • Initial implementation of the P1 all US Flag service for container loads to and from Genoa over Northern Europe began mid 2009 with one service provider • The Genoa service increased to two providers by year end 2009 • By summer 2010 the service expanded to include three providers and the inclusion of Naples as a port for Southern Italy freight • We have clear visibility of the movement of our freight with our ocean service providers • Continuous container tracking reports per each import vessel are provided by all three service providers indicating the time frame from the northern discharge port to delivery to the Italy terminus in Genoa and Naples. • The export containers are reported to us by the service providers from point of receipt in Genoa and Naples to confirmed loaded on board at the northern port. • We closely monitor the inland transit of the containers to and from the northern ports as per the time lines our service providers have established • We receive timely advice of any interruption in the service of transporting the containers • Our customers are thereby kept duly informed of any potential delays that would affect the transit their shipments

7. P1 Ocean Carrier Service

8. DP3 - Perspectives from the General (Shipping) Agent and Local Servicing Agent • General (Shipping) Agent • DPS outages cause backlog of shipment bookings with specific impact to short fuses as well as timely updates • Inaccurate data entered into DPS to include Service Member contact information and residence address is discovered only when initial contact with the Service Member is attempted. Also impacts short fuses. • Inaccurate data entered in DPS for code J & T POE and POD causes shipments to arrive at the wrong terminal (Naples /Capodichino rather than Aviano) causing a delay in the arrival at correct agent’s facility. • Lack of direct access to DPS Alert function (GBL Corrections, Terminations, PPSO requests, SM requests) causes delays in communicating with the responsible pack agent. • PPSO responses to our requests for corrections (pack/pick up dates), which they are capable of initiating, in DPS could be more timely handled • PPSO responses to data changes needed in DPS (incorrect GBLOC), which they cannot initiate themselves but require their verification so we can then address the issue with DPS Help Desk, could be more timely handled as well • As the General (Shipping) Agent we are increasingly the hub of the information wheel connecting the Service Member, Servicing Agent, PPSO and TSPs.

9. DP3 - Perspectives from the General (Shipping) Agent and Local Servicing Agent • Servicing Agent • Excessive exceptionally short fuse bookings (1-2 day notices) from one PPSO causes operational issues with organizing pre move surveys and crews in a practical and efficient manner. • Local TOs contact the pack agent immediately and before the TSP has designated the Shipping Agent (time differences Europe/CONUS) so the General (Shipping) Agent has no visibility in DPS. • The intent of DPS is to provide the Service Member with the best quality of service but the local agents require sufficient time to organize for jobs properly. • DPS has resulted in a higher and more time consuming email traffic between Servicing Agents, Service Members, General (Shipping) Agent and TSPs. • Service Members’ unfamiliarity with the local areas, assuming they are in part of a town but are actually in a suburb, causes confusion for crews locating residence addresses. • Daily agent updating transfers to DPS so the stress of accuracy is being felt. • Pre-approval requests (outside lifts on short fuses) that do not transfer to DPS timely are later denied as being submitted after the fact. • The direct contact with the Service Member to schedule pack out or delivery, rather than working through the TO’s office, affords a level of compatibility not seen with the TOPS system. • DP3 seems better organized in the sense that everyone (several different parties) needs to be on top of the situation and well organized themselves, and as a result the system works smoothly.