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	Editor's Interview: 7 questions for a customs broker. Jim Loux is the Founder and President of Allegheny Brokerage Company, Inc. Allegheny Brokerage is an independent, full service customs broker in Southwest Virginia and Tennessee. 1. What is the difference between a customs broker and a freight forwarder? Jim Loux: The key differences are: a customs broker is licensed by the US Government for the US government on imports. They operate with a specific power of attorney from their client authorizing the handling of export/import transactions as the client's agent. Customs brokers are generally more proactive on regulatory compliance matters with the exporter or importer of record. Freight forwarders are typically focused on moving freight from point to point and are not particularly concerned about export compliance issues except as they may apply to the forwarder. Some freight forwarders have acquired customs brokers in order to expand their revenues and service offerings. 2-Is congestion a problem at Virginia ports? Jim Loux: I have not seen that to any significant degree. There are no problems moving exports through the VPA that we have experienced. [What about all the trucks on I81?] Generally speaking, what I have gathered from sitting in on a couple of the I-81 upgrade meetings, the heavy truck traffic on I81 is due partly to imports entering Virginia or passing through it to other states. In addition, quite a lot of the traffic is coming from all of the East Coast ports and moving on to the South and Southwest US using the Interstate corridor system. I-81 to I-77 connecting to I-40 and I-85 etc. The Ports of Virginia [Norfolk, Portsmouth and Newport News] service is exemplary! They offer wonderful customer service and are always helpful. The West coast has other issues. Long delays and poor customer service are the hallmarks of the California ports and in some cases their associated consolidation warehouses. No real improvement since the big strikes from a few years ago. We work to bring as much freight as possible through the Panama Canal and in to the VPA system. 3-(hypothetical question) My cargo is very heavy and bulky. What are my options for freight transport to my overseas customers in Europe and Russia? Jim Loux: There are two main options that we use. Air freight on freighters from Atlanta on carriers such as Lufthansa or British Air make regular flights to Europe. They can handle big and heavy cargo. Ocean cargo by container or break bulk is an option too. The preferred choice is to use a container if at all possible. Containers are safer for the export goods and are generally cheaper. There is regular weekly traffic out of the Virginia ports to Europe. 4-How do the export services of UPS, DHL and FedEx work for small lightweight shipments overseas? Jim Loux: All three are pretty good at what they do. For shipments that do not require an export license (Defense dept or Commerce Dept), they are great, just like their domestic US package service. The challenge is if you a shipment that requires an export license. Some small package carriers will not accept shipments that require a Defense Dept export license. In this regard they do not have any additional expertise over a regular air cargo forwarder such as BAX Global or a commercial airline. 5-What is the latest on exports and the US federal Government? Jim Loux: The Automated Export System (AES) has been mandatory for licensed exports since October 15, 2003. Allegheny has been using AES for all shipments from the United States, whether licensed or not, since we began business. We believe that in Q1 of 2006, all shipments will have to use the AES. No more Shippers Export Declaration (SED). All exports will have to filed electronically. There is heightened scrutiny on all exports and more focus on more accurate paperwork. Nowadays there is a more likely chance of a cargo inspection. Also, there is much more export compliance enforcement from US Customs. The main US agencies for enforcement have been putting on local seminars to inform the business community about the rules and where to get help. They are putting the message out that exporting is a privilege not a right. 6-What do you see happening in the next year or two for Virginia's exporters? Jim Loux: My clients are forecasting growth in their exports. Many are also asking about additional overseas markets, especially the ones that they are reading about. Allegheny has experienced record growth these past few years and I think we will continue to see strong growth for at least the next 2-3 years. My company is even getting weekly web inquiries from people that are starting a business and want to start up international trade. There is a generally positive feeling towards increasing exports and improved interest in international trade throughout our region. I feel pretty good about the whole idea. 7- Do you have an anecdote on a export transaction that you have made to the UK? Jim Loux: I have shipped a lot of defense and non-defense products to the UK with no problems at all. The UK has gone to some automated system similar to the US AES. The organizations we work with in the UK are really good, concerned about regulatory compliance in their own right and very helpful.