US, New Zealand collaborate on container security

18 Oct 2004

Agreeing on a series of measures that will see high-risk containers identified and intercepted as early in the supply chain as possible, the New Zealand Customs Service and the US Customs and Border Protection Agency have agreed to implement comprehensive supply chain security measures for shipments between America and New Zealand,

The measures come into effect on December 1 and are expected to help ensure the low-risk nature of goods from New Zealand to the US, and to keep NZ goods flowing in times of heightened security.

Customs officials from both sides will work closely together to identify and intercept high-risk containers.

Smart Border Plan with Canada

18 Oct 2004 ST&R

On October 14, DHS Secretary Tom Ridge and Canadian Deputy Prime Minister Anne McLellan announced several new steps under the bilateral Smart Border Action Plan, including:

• the creation of two new dedicated Free and Secure Trade (FAST) lanes - southbound at Pacific Highway (British Columbia)/Blaine (Washington) on October 20 and in both directions at the Windsor-Detroit Ambassador Bridge on November 1;

• a joint plan to engage stakeholders in a discussion on commercial pre-screening at the Fort Erie-Buffalo Peace Bridge;

• an agreement to work with stakeholders to examine a full pre-clearance pilot at the same crossing, with appropriate legislative changes to enhance inspection authorities;

• a commitment by Canada to partner with the US in its Container Security Initiative (CSI), including the deployment of Canada Border Services Agency officials to a foreign marine port by April 2005 to assist in the targeting and verification of shipping containers destined to North America;

• implementation at Vancouver International Airport on November 30 of the joint NEXUS-Air pilot program, which will use biometric technology and will be open to citizens and permanent residents of both Canada and the US; and

• the expansion of the Integrated Border Enforcement Teams (IBETs) to the Sault Ste Marie region.

Bill Introduced To Encourage Container Workers
To Seal Empty Boxes [HR 5143]

October 1, 2004--Rep. Juanita Millender-McDonald (D-CA) has introduced a bill to amend title 46, United States Code, to direct the Secretary of Homeland Security to carry out an empty shipping container sealing pilot program to encourage shipping container handlers to seal empty shipping containers after they have unpacked them, and for other purposes.

Millender-McDonald's district includes the Ports of Los Angeles and Long Beach.

The measure was referred to the Committee on Transportation and Infrastructure.

Coalition Launched To Promote US Port Security

Stakeholders In Marine Cargo Chain To Advocate For United Approach To Improve Security

September 24, 2004--Terminal operators, vessel operators, port associations, shippers and other stakeholders responsible for handling the eight million cargo containers that enter the U.S. each year announced September 22 that they are joining together as the Coalition for Secure Ports to advocate for enhanced maritime security.

The Coalition will immediately initiate a campaign to educate policymakers and the public on steps that have been taken to improve port and cargo chain security since the 9/11 terrorist attacks, as well as identify actions that the government, in cooperation with private sector stakeholders, can take now to further improve the security of the nation's marine transportation system.

"Today's ports, vessels, and the entire marine transportation system are more secure than before 9/11" said Basil Maher, President and COO of Maher Terminals and President of the National Association of Waterfront Employers (NAWE). "Yet too much is at stake for the nation to be lulled into a false sense of security. Over 95 percent of the nation's import cargo moves through America's 361 seaports each year, and the maritime industry contributes more than one trillion dollars to America's annual GDP. We need to continue to make smart, sophisticated, technology-based improvements to ensure the security of this system."

"The Coalition's top priority is working with government leaders to increase maritime security awareness, appropriately fund port security programs, and ensure that the best available technology is utilized in port and cargo security."

The Coalition will focus its efforts on three important steps necessary to achieve its goal of strengthening port security:

1) Requiring enhanced cargo information, for example, knowing the contents of each cargo container before it enters this country;

2) Monitoring the location and security of containers in transit; and

3) Implementing a Transportation Worker Identification Credential (TWIC) to ensure that the identity of individuals with access to cargo can be verified reliably and expediently.

"Technology is the key to achieving each one of these crucial next steps," said Chuck Carroll, General Counsel of NAWE. "From the moment a cargo container is stuffed overseas to its arrival inside the U.S., appropriate government authorities must know its precise contents as well as the identity of the parties responsible for placing it in the marine transportation system. An advanced system that monitors cargo container data in order to produce timely and actionable information about container contents would greatly augment government's ability to screen and inspect cargo more effectively." Said Carroll, "Global monitoring of containers in transit must also be undertaken to immediately alert authorities to tampering or unauthorized entry. Also, we must implement the TWIC throughout the country as expeditiously as possible. Transportation system workers nationwide should obtain and carry a tamper-resistant credential that contains unique biometric identification to prevent unauthorized individuals from gaining access to secure cargo and critical infrastructure. Too much is at risk to pursue piecemeal, cosmetic, 'feel good' security measures."

"Today, U.S. Customs and Border Protection (CBP) screens intelligence information on 100% of all cargo containers being imported into the country," said Jon Hemingway, President and CEO of SSA Marine. "Each and every container identified as high risk is physically inspected by CBP upon arrival in the U.S. CBP has also placed Vehicle and Cargo Inspection System (VACIS) technology at major cargo terminal facilities throughout the nation to inspect containers for dangerous substances and devices, and is in the process of placing radiation scanning portals at marine terminals that will enable the detection of radioactive materials inside containers."

"Marine terminals themselves are also more secure as a result of installing enhanced security systems. Security training and awareness programs have been initiated and incident response and evacuation plans have been put in place. The government has also implemented programs such as Operation Safe Commerce, a pilot program analyzing security in the commercial supply chain and testing solutions with new technologies, as well as the Container Security Initiative (CSI), under which teams of CBP officials deployed at overseas terminals conduct on-site inspections of U.S.-bound cargo," said Hemingway.

The members of the Coalition for Secure Ports are part of a global cargo transportation system, and enhancing U.S. cargo security requires the cooperation of government, private sector stakeholders and U.S. international trading partners. To ensure cargo chain security, a multilateral, unified and cooperative effort is necessary -- from the shippers who stuff the containers overseas, to the ocean carriers that transport them, to the ports and terminals that transfer them to land-based transportation modes, to the trucks and railroads that deliver them to their eventual destination and, of course, to the U.S. government, which has the ultimate investigative, law enforcement, and regulatory authority over domestic security.

New Truck Driver Requirement

On August 15, 2004, U.S. Customs and Border Protection (CBP) published the “Required Advance Electronic Presentation of Cargo Information” for importers, carriers, and commercial truck drivers to meet the requirements of the Trade Act of 2002. 

This notice is to inform truck carriers when they will be required to transmit advance electronic cargo information to CBP regarding cargo they are bringing into the United States, as mandated by section 343(a) of the Trade Act of 2002 and the implementing regulations. 

These regulations, titled 19CFR123, specify that truck carriers carrying Border Release Advanced Screening and Selectivity (BRASS) merchandise may only utilize drivers who are registered under the Free and Secure Trade (FAST) program and carrying a valid FAST Driver Card.

CBP will begin enforcing the requirements indicated in the “Required Advance Electronic Presentation of Cargo Information” November 15, 2004.

The FAST Commercial Driver Program is the result of United States, Canada and Mexico Border Partnership Action Plans. These plans are designed to enhance the security of our shared borders while facilitating the legitimate flow of low-risk commerce.  These initiatives were implemented by CBP with the cooperation and assistance from the Governments of Mexico and Canada.

There are separate applications for the Northern Border FAST and Southern Border FAST programs. Applications take approximately six weeks to process for registration in the Northern Border Fast program and two weeks to process for registration in the Southern Border Fast program.

As of November 15, any BRASS shipment that is not being hauled by a FAST registered driver will be denied entry into the United States.

Fact Sheet: Cargo Container Security - U.S. Customs
and Border Protection Reality

OCTOBER 2004

Myth:

Only a small number of the containers that come into the ports are inspected.

Summary of Reality:

• We use intelligence to screen information on 100% of cargo entering our ports, and all cargo that presents a risk to our country is inspected using large x-ray and radiation detection equipment.

• Following 9/11, the Administration developed and implemented a smarter strategy to identify, target, and inspect cargo containers before they reach U.S. ports. Anyone can secure a nation by closing its borders and inspect everything and everybody that enters. Closing the borders is not an option.

• None of the security measures implemented as a result of this strategy existed before 9/11.

• Our strategy is to rule out potential threats before arrival at our borders and ports.  In fact, the security measures now in place allowed us to rule out 94% of the cargo as potential threats prior to arrival. This year, six percent (6 %) of total cargo containers were identified as potential threats and were physically inspected immediately upon arrival. (The percentage will change annually because the inspections are based upon identified risk following intensive screening.) Dramatically increasing physical inspections after arrival is a waste of resources that will not appreciably increase our national security. In fact, the type of increase in physical inspections implied by this allegation would cost billions of dollars in resources and cripple not only our economy, but the global economy as well.

Key Facts That Did Not Exist Before 9-11:

• We use intelligence to review information on 100% of all cargo information entering U.S. ports, and all cargo that presents a risk to our country is inspected using large x-ray and radiation detection equipment.

• Following 9/11, we developed and implemented a smart cargo container security strategy to identify, target, and inspect cargo containers before they reach U.S. ports. Under this strategy:

• All containers, 100%, identified as posing a terrorist risk are inspected using x-ray scans and radiation detection equipment. (i.e. Potential for concealment of terrorist weapons or terrorists.)

• The Administration requires that advance information be given to our border agency, U.S. Customs and Border Protection, about all containers well before they arrive. In fact, the information is required 24 hours before they are loaded on to vessels at foreign seaports (24-Hour Rule).

• Containers posing a potential terrorist threat are identified and targeted before they arrive at U.S. seaports by the National Targeting Center (NTC). The NTC was established as the centralized coordination point for all of CBP’s anti-terrorism efforts. Prior to 9/11, no national level targeting of people or goods crossing our borders existed.

• NTC uses intelligence and terrorist indicators to review advance information for all cargo, passengers, and imported food shipments before arrival into the U.S.

• NTC coordinates with other federal agencies such as U.S. Coast Guard, Federal Air Marshals, FBI, Transportation Security Administration, and the Departments of Energy and Agriculture, as well as the intelligence community.

• The Administration works with our foreign partners to allow U.S. officers working at major international seaports, currently 26, to identify and inspect containers prior to being loaded onto ships destined for the U.S. Container Security Initiative (CSI)

• The Administration created a public-private and international partnership with over 7,000 businesses, including most of the largest U.S. importers -- the Customs-Trade Partnership Against Terrorism (C-TPAT). Under this program, legitimate companies that do regular business with the U.S. have increased their own security to prevent terrorists from infiltrating their shipments. (We check not only the company shipping the goods, but also the companies that provided them with any services.)

• Approximately 40% of all cargo headed for the U.S. is transported by C-TPAT partners and is therefore better secured.

• Additional technology has been added, including Radiation Portal Monitors, Isotope Identifiers, and Personal Radiation Monitors. For the first time CBP has added chemical and explosive detector dogs.

U.S. Customs and Border Protection (CBP) is the unified border agency within the Department of Homeland Security charged with the management, control, and protection of our Nation's borders at and between the official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.

Homelandsecurity.org 15 October 2004

 Courtesy of the U.S. Customs and Border Protection Agency

Customs Announces Staggering Arrest Numbers Using New Technology U.S. Customs and Border Protection on 7 October announced that biometric identification technology, the Integrated Automated Fingerprint Identification System, is fully operational in all 136 Border Patrol stations. The technology enables Customs and Border Protection officers and Border Patrol agents to search fingerprint databases simultaneously using the Automated Biometric Identification System and the FBI fingerprint database. It provides rapid identification of individuals with outstanding criminal warrants by electronically comparing a live-scanned fingerprint against a nationwide database of previously captured fingerprints. From 1 October 2003 through 31 August 2004, Border Patrol agents arrested 138 homicide suspects, 67 kidnapping suspects, 226 sexual assault suspects, 431 robbery suspects, 2,342 suspects for assaults of other types, and 4,801 involved with dangerous narcotics, all as a direct result of the technology. [View press release]

Radar on Great Lakes May Aid U.S. Homeland Security (Canadian Press) Researchers in the Erie, PA, area “are studying whether low-cost commercial radar might be used to track vessels on the Great Lakes for U.S. homeland security purposes,” according to the Canadian Press. The Center for eBusiness & Advanced Information Technology “and Pennsylvania state Senator Jane Earll, who obtained [a] Pennsylvania Department of Community and Economic Development Grant for the initial study, are interested in the project because it could bring jobs to the area, should a security centre or technology cluster result from it.” [View article]

Coast Guard Maintains Enforcement of 96-Hour Advance Notice of Arrival The U.S. Coast Guard continues to enforce the Advance Notice of Arrival requirements as part of the effort to secure the nation’s ports. These regulations have been in place since 9/11. The requirements affect international and domestic vessels of 300 gross tons or more and vessels carrying certain dangerous cargo. [View press release]

DHS dishes out the dollars, and plans C-TPAT changes

21 Oct 2004

President Bush signed the FY 2005 Homeland Security Appropriations Act, which provides $28.9 billion in net discretionary spending for the Department of Homeland Security (DHS).

The Act includes $419.2 million in new funding to enhance border and port security activities, including the expansion of pre-screening cargo containers in high-risk areas and the detection of individuals attempting to illegally enter the United States.

Additional funding for the US Coast Guard (+$500 million, an 8.6% increase) will upgrade port security efforts and provide additional resources to implement the Maritime Transportation Security Act. Key enhancements funded by the act include:

- Container Security Initiative (CSI) - an increase of $25 million over the current program funding of $101 million to continue both Phases I and II, as well as to begin the final phase of CSI.

- Aerial Surveillance and Sensor Technology - $64.2 million for CBP to enhance land-based detection and monitoring of movement between the ports. The act also includes $28 million for CBP to increase the flight hours of P-3 aircraft and $12.5 million for long-range radar operations.

- Radiation Detection Monitors - $80 million for the next generation of screening devices for US ports of entry.

- CBP Targeting Systems - an increase of $20.6 million for staffing and technology acquisition to support the National Targeting Centre, trend analysis, and the Automated Targeting Systems.

- C-TPAT - an increase of $15.2 million.

- US Coast Guard - up 9% from $5.8 billion in FY 2004 to $6.3 billion in FY 2005. In addition to maintaining its ongoing mission, the budget provides over $100 million to support the implementation of the Maritime Transportation Security Act, and $724 million (up $56m) for the Coast Guard's ongoing Integrated Deepwater System initiative.

- Transportation Security Administration - $5.1 billion, including aviation security fees, a $679 million increase over 2004.

- Air cargo security - $115 million to enable continued research and deployment of screening technology started in FY 2004 and to increase air cargo inspectors.

- The Federal Air Marshals (FAMS) program, which has been moved to Immigration and Customs Enforcement (ICE) - $663 million, an increase of $50 million over the FY 2004 level.

- The bill provides a total of $315 million in transportation security grants – in particular, $150 million each for port security grants and rail/transit security grants.
In other news, the DHS plans to add more cargo security measures to the C-TPAT initiative.

From a purely voluntary program, C-TPAT will become a universal requirement for the whole industry.

Speaking at the eyefortransport Cargo Security Forum in Washington, DHS’s deputy assistant secretary for policy and planning for border and transportation security, Elaine Dezenski, said that the change is part of a thorough review of cargo security policies.

During a presentation at the conference, Renee Stein, senior manager for worldwide trade and customs compliance for Microsoft, said: “They are not guidelines anymore. Terms like ‘should’ and ‘recommend’ that permeate the C-TPAT agreement have now been replaced by the word ‘shall’.”

Although more than 7,000 companies have signed up for C-TPAT, Dezenski said that the agency needs to more effectively market the benefits of its supply chain standards to get corporations to take the initiative on security efforts, and suggested that the International Standards Organisation be a forum to develop standards for technology and procedures that could be linked to government standards for allowing entry of goods into the country.

The Office of the United States Trade Representative

U.S. Announces Major New Initiative to Fight Global
Trade in Fakes

10/04/2004

STOP! Initiative to Help Businesses Enforce their Rights, Stop Fakes at Borders, Dismantle Criminal Enterprises & Build an International Coalition against Piracy and Counterfeiting

WASHINGTON – U.S. Trade Representative Robert B. Zoellick joined colleagues from the Departments of Commerce, Justice, and Homeland Security today to announce a major new government-wide initiative, the Strategy Targeting Organized Piracy (STOP!), to fight billions dollars in global trade in pirated and counterfeit goods that cheat American innovators and manufacturers, hurt the U.S. economy and endanger consumers worldwide.

"Trade in fake goods is growing, cheating American innovators and producers out of billions of dollars and threatening consumers all over the world with low quality and often unsafe products. This problem crosses many different jurisdictions, laws and countries, and the STOP initiative provides a coordinated and effective answer," said Zoellick. "The message to the IPR pirates and counterfeiters is simple – we will do everything we can to make their life miserable. We will stop their products at our border; we will name and shame your company; we will ratchet up the penalties; and we will coordinate with our trading partners to prevent third-country trafficking."

From familiar products such as CDs and DVDs to clothing, brake pads and even automobiles, trade in fakes has been growing not only with the United States but also between other countries, thereby escaping the reach of U.S. law enforcement efforts. STOP! is broad in scope and brings a new approach, new tools and new pressure to bear through a coordinated effort from the federal government, the private sector and America’s international trading partners. The STOP! initiative is the culmination of efforts over the last year to build on the Administration’s successful efforts to combat piracy and counterfeiting around the world.

Making the announcement were Commerce Secretary Don Evans, U.S. Trade Representative Robert B. Zoellick, Attorney General John Ashcroft, and Under-Secretary of Homeland Security Asa Hutchinson.

In late 2003, USTR identified the evolution and growth of piracy and counterfeiting in the global economy as a top priority and engaged with agencies across the federal government and trading partners around the world to develop a new approach and solutions. Key elements of the STOP! initiative include:

• Helping and empowering American businesses, inventors and innovators, particularly small businesses, secure and enforce their rights in overseas markets;

• Ensuring consumer safety by securing America’s borders and marketplace from fakes;

• Raising the stakes and making life more onerous for intellectual property thieves through new customs methods that increase costs to violators far beyond seizing shipments and by naming and shaming global pirates and counterfeiters who are producing and trafficking in fakes;

• Developing a "No Trade in Fakes" program in cooperation with the private sector to ensure that global supply chains are free of infringing goods;

• Working to dismantle criminal enterprises that steal intellectual property using all appropriate criminal laws, and overhauling, updating and modernizing U.S. intellectual property statutes; and

• Joining forces with like-minded trading partners concerned about the growing global IPR piracy problem, such as the European Commission, Japan, the United Kingdom and France who have all recently launched initiatives.

In his remarks, Zoellick pointed to a specific and recent case involving ABRO, an Indiana exporter of glue and other products, that highlights this growing problem and how USTR effectively worked to solve it. A Chinese firm in Hunan Province was counterfeiting ABRO adhesives using identical packaging bearing the company’s name and trademarks. USTR sought resolution of this case and others at the highest levels. Just last month, ABRO secured an important victory when the Chinese Trademark Bureau stripped the Hunan counterfeiter of any right to use ABRO’s trademarks.

Background:

Global intellectual property rights (IPR) theft and trade in fakes have grown to unprecedented levels, threatening many American businesses, innovators and manufacturers that depend on strong IPR enforcement for their competitiveness. Interpol estimates that seven percent of global trade now involves counterfeited goods. Trade in fakes is more than just a commercial or copyright problem. Consumer safety world wide is threatened when cheap and unregulated goods are used. For example, car windshields that purport to be shatterproof may in fact shatter, endangering occupants involved in accidents.

Though not alone, China has emerged as a leading source of pirated and counterfeit goods. The United States is pressing China to fully implement and effectively enforce its WTO IPR obligations. In April 2004, China committed to subject the full array of piracy and counterfeiting operations to criminal prosecution, and to target production facilities and sales of fakes. China also agreed to strengthen its border enforcement. Last month, USTR initiated the first ever systematic review of China’s intellectual property enforcement regime, including soliciting evidence from U.S. businesses.

Historically the United Sates has played a key role internationally in developing, extending and supporting intellectual property rights, through multi-lateral and bilateral treaties. Throughout the world, the United States aggressively works to improve IPR protections and enforcement using all available tools. In addition to cooperatively working with trading partners, the United States has also acted forcefully when other countries have failed to protect IPR. For example, the United States imposed $75 million in trade sanctions on Ukraine, which are still in effect, and removed $250 million in preferential access for Argentina.

Additionally, Free Trade Agreements (FTAs) negotiated by the United States are a prime example of how USTR synchronizes trade negotiations with ongoing enforcement efforts. These FTAs contain the highest level of IPR protection of any international agreements in the world, upgrade our trading partners’ domestic laws for the modern age, and integrate law enforcement efforts.

Since 2000, the U.S. Customs and Border Protection (CBP) agency has increased IPR seizures by 100 percent. This year, CBP is setting a record pace with increased in seizures (5,500) and value ($90 million).

US Customs Proposes New Copyright Regs

26 Oct 2004 ST&R

Companies who ship copyrighted materials, such as videotapes, compact discs, DVD’s and books to the United States, will be interested to learn that US Customs and Border Protection is proposing new regulations to increase enforcement against copyright infringement at the border. If you would like to review the highlights of this proposal, please click here.

Rails ready to report profits on record volume

NEW YORK -- Carrying freight volumes not seen in decades, railroads are scheduled to report profitable quarters beginning next week.

But higher margins may come to the companies that have shown the most progress in unclogging their rail networks and in placing the best bets against the seemingly endless rise in fuel prices.

Intermodal traffic -- shipping containers partly by rail and through some other means -- has set weekly consecutive records in the last three months, and containers remain stacked at California's West Coast ports, awaiting shipment.

The result is that 2004 should be "the best rate environment in nearly 25 years, with 2005 to continue the up trend another 1.5 percent," according to a research note from Merrill Lynch transportation analyst Ken Hoexter.

Railroad carriers, having endured a wave of retirements that hampered their ability to operate trains, are now beset by the high cost of diesel.

Burlington Northern Santa Fe (BNI), Norfolk Southern (NSC) and Canadian National Railway (CNI) are the best hedged rails, with 57 percent, 67 percent and 56 percent of their respective third-quarter fuel needs hedged, according to Merrill analysis.

Both Union Pacific (UNP), the nation's largest railroad, and CSX (CSX) experienced service problems -- with CSX particularly hit by track closures in the Southeast as a result of four major hurricanes -- but both showed improvement in the last month, Hoexter said.

Norfolk Southern reports results Wednesday, with analysts expecting earnings of 54 cents on revenue of $1.75 billion

Union Pacific follows with earnings next Thursday that are estimated to be 75 cents per share from $3.07 billion in sales.

Burlington Northern reports results on Oct. 26; analysts expect, on average, that the company will earn 75 cents per share from $2.76 billion in revenue.

Canadian National Railway reports Oct. 27, with analysts expecting $1.13 per share on $1.66 billion in sales.

CSX earnings are due Oct. 28, and Wall Street's consensus is for earnings of 52 cents per share from sales of $1.97 billion.

US Considering New Trade Talks with Taiwan

18 Oct 2004 ST&R

In light of the island’s efforts this year to meet US concerns on several issues, the Bush Administration is reportedly considering a resumption of trade talks with Taiwan. Washington had suspended discussions over Taiwanese policies on intellectual property rights (IPR), rice, pharmaceuticals, telecommunications, and government procurement.

However, the two sides have resumed contacts this year, and Taiwan is now pushing to re-start negotiations under the bilateral Trade and Investment Framework Agreement (TIFA) the two sides signed in 1994. A US official expressed cautious support. “We have been working with the economic and trade team in Taiwan to resolve our existing bilateral trade issues,” the official said. “We are encouraged by some of the proposals Taiwan has made recently and we are looking at the possibility of scheduling a TIFA meeting. Doing this of course is contingent on Taiwan following through on its commitments and providing results.”

FedEx doubles flights to China

FEDEX Express has been awarded 12 additional weekly flights to China by the US Department of Transportation, bringing its total to 23.

The company will use six of its awarded frequencies to provide a new westbound round-the-world service connecting the US to Shanghai with stops in Europe and other points in Asia using an MD-11 freighter, said a company release.

The other six frequencies, available from March 2005, will be used to establish an eastbound round-the-world service connecting the US, Europe, Japan and India to Shanghai, Shenzhen and other points in Asia.

FedEx has requested an additional six weekly flights in 2006 to include Guangzhou in its global and regional express networks. Currently, FedEx Express operates 11 weekly flights to China, serving Shanghai, Beijing and Shenzhen.

In other news, FedEx Express plans to construct California's largest corporate solar electric system atop its hub at Oakland International Airport. The 904-kilowatt solar array will provide approximately 80 per cent of the peak load demand for the company's Oakland facility, which employs 1,700 people. Completion is expected in May 2005.

Mitch Jackson, managing director, corporate and international environmental programs said: "From hybrid electric delivery trucks to solar power, we are proud to lead our industry in committing to real, practical ways to reduce pollution, conserve fossil fuels, and contribute to a greener world."

FedEx's solar generation system will cover 81,000 square feet on the roofs of two buildings. Sunlight will be converted directly into electricity by 5,769 photovoltaic modules, comprised of more than 300,000 solar cells.

In addition to generating electricity, the solar panels help insulate the buildings, reducing their heating and cooling costs. The electricity generated by the FedEx Oakland solar electric system will be the equivalent used by more than 900 homes during the daytime, said a company statement.

EU to lift sanctions on U.S. exports

26 Oct 2004, JOC

The European Union announced it will lift sanctions on U.S. goods in January after Congress repealed $5 billion in export subsidies ruled illegal by the World Trade Organization.

At the same time the European Commission, the EU's executive agency, warned Washington against prolonging the tax breaks beyond the end of 2006.

The penalties on U.S. imports, which began in March at 5 percent of the value of the goods and rose to 12 percent in October, will be removed on Jan. 1, when the U.S. legislation takes effect, EU trade commissioner Pascal Lamy said.

"This has been the biggest of the trans-Atlantic disputes that we have experienced in the last five decades," Lamy said. "We're lifting the sanctions, and that is the essential part of the agreement, but we still have a few doubts about a small part of the system."

Lamy expressed concern American firms will benefit from the export tax breaks until the end of 2006 and some would enjoy the benefits even longer.