Printable Version                                      October 2004        

Announcement on U.S.- India Next Steps in Strategic Partnership

The United States and India announced  the Next Steps in Strategic Partnership (NSSP) initiative. Implementation will lead to significant economic benefits for both countries and improve regional and global security.

Libya, Iran and Iraq Trade Status

Libya has been granted trade privileges with the United States. Imports from Iran are limited to foodstuffs, carpets and other floor coverings. Iraq has been extended duty preference under the Generalized System of preferences (GSP)

United States, Pakistan Begin Bilateral Investment Treaty Negotiations

Global Trade to Expand by 7.5% this Year

WTO Approves Retaliation Against U.S. for Byrd Amendment

The Consuming Industries Trade Action Coalition (CITAC) said today that the U.S. should take immediate steps to end the Byrd Amendment's payouts to U.S. companies as a result of yesterday's World Trade Organization (WTO) decision to allow retaliation against U.S. exports by the European Union, Japan, Brazil and five other countries.

Taiwan Carriers in Joint Service

China Further Liberalizes Trade with Hong Kong

China Ranks Second in Shipping

House Bill would counter China Textile Threat

Major Bonded Area to be Built in Xinjiang

Essential China Advice

In the Chinese business environment, it is necessary for American companies to have a well-planned strategy. The following list of tips for doing business in China is not comprehensive, but a guideline for an initial market evaluation. Companies entering the China market should consider the following: http://www.buyusa.gov/china/en/doingbizinchina.html

U.S. Dept of Commerce

Announcement on U.S.- India
Next Steps in Strategic Partnership
September 2004

The United States and India announced major progress in the Next Steps in Strategic Partnership (NSSP) initiative. Implementation of the NSSP will lead to significant economic benefits for both countries and improve regional and global security.

In January 2004, the United States and India agreed to expand cooperation in three specific areas: civilian nuclear activities, civilian space programs, and high-technology trade. In addition, the two countries agreed to expand our dialogue on missile defense. These areas of cooperation are designed to progress through a series of reciprocal steps that build on each other.

Since January, the two governments have worked closely together to conclude Phase One of the NSSP. This has included implementation of measures to address proliferation concerns and to ensure compliance with U.S. export controls.

These efforts have enabled the United States to make modifications to U.S. export licensing policies that will foster cooperation in commercial space programs and permit certain exports to power plants at safeguarded nuclear facilities. These modifications, including removing the Indian Space Research Organization (ISRO) Headquarters from the Department of Commerce Entity List, are fully consistent with U.S. Government nonproliferation laws, obligations, and objectives.

The United States and India will continue to move forward under the NSSP, and have a joint implementation group for this purpose. The progress announced today is only the first phase in this important effort, which is a significant part of transforming our strategic relationship.

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The specific modifications to U.S. licensing policies designed to expand U.S.-India civil space and civil nuclear cooperation and enhance bilateral high-technology trade will be:

      Removing the Indian Space Research Organization (ISRO) Headquarters, Bangalore from the Department of Commerce Entity List,¹ which will permit many dual-use items to be exported to ISRO Headquarters without an export license. The removal of ISRO Headquarters from the Entity List will facilitate U.S. exports to India’s civilian space program and encourage U.S. investment in the peaceful uses of space.

      Removing licensing requirements for low-level dual-use items (known as EAR99 and XX999 items) exported to ISRO subordinate entities that are on the Entity List. This change in licensing policy is expected to reduce the number of applications submitted for exports to ISRO subordinate entities by approximately 75-85 percent and reduce the total number of applications for all dual-use exports to India by approximately 20-25 percent.

      Applying a “presumption of approval” policy for all dual-use items not controlled by the Nuclear Suppliers Group (NSG), if intended for export to the “balance-of-plant” portion of an Indian nuclear facility subject to International Atomic Energy Agency (IAEA) safeguards. Permitting the export of all U.S.-origin items not controlled by the NSG to the “balance of plant” portion of safeguarded facilities will expand the scope of civilian nuclear cooperation between the United States and India.

These modifications will be reflected in amendments to the Export Administration Regulations scheduled to be published in the Federal Register this week.

¹The Entity List is located in Supplement No. 4 to Part 744 of the Department of Commerce Export Administration Regulations.

United States, Pakistan Begin Bilateral
Investment Treaty Negotiations

09/28/2004

WASHINGTON –U.S. Trade Representative Robert B. Zoellick and Pakistan Minister for Commerce Humayun Akhtar Khan announced today that their two countries would begin negotiations on a bilateral investment treaty (BIT).  The two officials met at the conclusion of the first meeting of the Joint Council established by the U.S.-Pakistan Trade and Investment Framework Agreement (TIFA).
 
“I am very pleased to announce that discussions in the Joint Council have produced an agreement to start negotiating a U.S.-Pakistan BIT,” Zoellick said.  “These agreements level the playing field and ensure that Americans are treated fairly. Pakistan’s 150 million people also offer a large and potentially valuable market for U.S. exporters and investors.
 
“At the same time, Pakistan and the United States are partners in combating global terrorism.  A BIT based on the high standards contained in our model text can play an important role in strengthening Pakistan’s economy, so as to create new opportunities for exporters and investors in both economies and assist in meeting the economic conditions to counter terrorism.”
 
Zoellick and Minister Khan discussed a broad range of bilateral trade and investment issues during today’s meeting.
 
The TIFA, signed in June 2003, is an agreement that provides a forum for Pakistan and the United States to examine ways to expand bilateral trade and investment. Specifically the TIFA creates a Joint Council that considers a wide range of commercial issues and promotes principles that underpin the two nations’ trade and investment relationship.
 
U.S. goods exported to Pakistan in 2003 totaled $843 million, and included machinery, yarn and fabric, aircraft, electrical machinery, and fertilizers. U.S. goods exports also included $227 million in agricultural products, such as cotton, soybean oil, and planting seeds.  U.S. goods imports from Pakistan in 2003 were $2.5 billion, and included knit apparel, miscellaneous textile products, cotton, yarn and fabric, woven apparel, and textile floor covering. U.S. imports of agricultural products from Pakistan were $36 million in 2003 and included rice, sugars, sweeteners, beverage bases and spices.
 
Background
 
The United States recently completed a rewrite of the model text it has used in BIT negotiations over the past two decades.  The new model text includes provisions developed by the Administration to address the investment negotiating objectives in the Trade Promotion Act of 2002.  The new model BIT text is substantively similar to the investment chapters of the free trade agreements the United States has concluded during the past two years.
 
U.S. BITs level the playing field and ensure that U.S. investors are protected when they establish businesses in other countries.  By safeguarding foreign subsidiaries of U.S. firms, BITs help promote new U.S. exports to the markets of BIT partners.  BITs also protect the interests of average American investors, whose stock and bond portfolios often include stakes in foreign-invested firms. 
 
Key investor protections in U.S. BITs include an obligation by a host country to treat investors from the other BIT party as favorably as the host treats its own investors or those from any other country.  BIT parties must also permit the free and timely transfer of funds relating to an investment into or out of their territory.  U.S. BITs also include international law standards requiring host countries to provide prompt, adequate, and effective compensation if they expropriate an investment.  Finally, U.S. BITs give investors the right to seek binding international arbitration of claims that a host country government has violated a BIT obligation or certain types of contracts. 
 
The United States currently has BITs in force with 39 countries, providing protection for thousands of U.S.-owned businesses and their U.S. investors.  Earlier this month, the United States and Uruguay concluded negotiations on a BIT based on the new U.S. model text.  As treaties, BITs require the advice and consent of the Senate before they can enter into force.  Responsibility for BIT policy and negotiations is shared by the Office of the U.S. Trade Representative and the Department of State.

Global Trade to Expand by 7.5 per cent This Year
September 17, 2004

According to a World Trade Organization report released this week, world merchandise trade grew by 4.5 per cent in real terms, in 2003, a rate faster than in the preceding year but still well below the average rate in the second half of the 1990s.

The global trade expansion was a consequence of improved economic growth, which strengthened considerably beginning in the second quarter of 2003. In the first quarter of the year, the appearance of Severe Acute Respiratory Syndrome (SARS) in East Asia and the build up of tensions that led to the military conflict in Iraq weakened consumer and business confidence in many regions. Business indicators hit its lowest level in March 2003 before improving from May 2003.

The strengthening of the global expansion in the second half of 2003 is projected to continue in 2004. Global GDP is expected to grow at 3.7 per cent in 2004, up from 2.5 per cent in 2003. In line with the economic recovery, global trade is expected to expand by 7.5 per cent in 2004, twice as fast as output.

Two medium-term developments in international trade highlighted in the report are the above average trade growth in manufactured goods and other commercial services and the increased importance of processed agricultural goods in world trade.

Two notable developments in the structure of world trade are highlighted in the Report.

The first is the varied trade performance of different categories of goods and commercial services since 1985. Manufactured goods and "other" commercial services experienced above average trade growth during this period. By contrast, agricultural and mining products, as well as transport services, saw a relative decline in their trade shares.

The second medium-term development is a structural change in the composition of world trade in agricultural products, with processed agricultural goods becoming more important. This trend towards more processed goods in trade can be observed across countries and agricultural product groups throughout the 1990-2002 period.

WTO Approves Retaliation Against U.S.
for Byrd Amendment

WASHINGTON, Sept. 1 /PRNewswire/ -- The Consuming Industries Trade Action Coalition (CITAC) said today that the U.S. should take immediate steps to end the Byrd Amendment's payouts to U.S. companies as a result of yesterday's World Trade Organization (WTO) decision to allow retaliation against U.S. exports by the European Union, Japan, Brazil and five other countries.

The "Continued Dumping and Subsidy Offset Act" (CDSOA) -- known as the "Byrd Amendment" -- mandates distribution of antidumping and countervailing duties to companies that have petitioned for trade protection and other supporters of the petition, rather than to the U.S. Treasury, where Customs revenues generally go. In three years, the U.S. Government has paid more than $700 million to U.S. companies from duties collected from other U.S. companies that must pay the import duties.

Yesterday's WTO ruling came as a result of the Congressional failure to end the Byrd payouts which the WTO declared illegal in 2002. The Congressional Budget Office (CBO) earlier this year found that the Byrd Amendment harms the U.S. economy and encourages more antidumping and countervailing duty trade cases covering more products (which forces up the cost of affected imported products to consuming industries). CBO estimates that Byrd distributions to U.S. companies who file successful trade cases will total more than $3.8 billion by 2014.

"The WTO's authorization for retaliation is one more reason that Congress should repeal the Byrd Amendment," said Jon Jenson, CITAC President. "The Amendment is bad policy because it distorts trade, provides an incentive for filing trade petitions and keeps products under trade restrictions that are in short supply in the U.S. or not made here at all. CITAC has long argued that American consumers shouldn't pay the enormous windfalls from Byrd Amendment payouts. Now U.S. exporters may bear the consequences of Congressional failure to end this trade distorting law."

He explained that by placing an import tax on a product, the price of the product is likely to increase, its availability will decrease and those who buy the product take the hit. U.S. consuming industries (including, for example, producers of steel-containing products, candles, pasta, seafood, ball bearings and others) and ultimately the American consumer pay the tax that, as a result of the Byrd Amendment, goes into the pockets of petitioners.

Continued Jenson, "Repealing the Byrd Amendment will avoid retaliatory tariffs, and, as important, end an incentive for companies to file trade cases year after year in order to receive large sums of money at the expense of their customers. In fact, in a case involving shrimp imports, CITAC has documented evidence that law firms were promoting potential Byrd payouts to convince companies to sign onto the trade petitions. Companies should only file trade petitions if there is a legitimate case, and not in the hopes of receiving a windfall of corporate welfare money from the government."

CITAC is a coalition of companies and organizations committed to promoting a trade arena where U.S. consuming industries and their workers have access to global markets for imports that enhance the international competitiveness of American firms.

For addition information, or to view a list of industries that have received Byrd Amendment payouts to date, please visit http://www.citac.info/.

Taiwan Carriers in Joint Service

CO-OPERATING together for the first time, three of Taiwan's leading carriers, Evergreen, Wan Hai and Yang Ming are to launch a new container service linking North China with Singapore, Malaysia and Hong Kong. In so doing, the three companies will provide much needed additional capacity between North China and the Straits as well as complementing existing feeder links by interfacing with the lines' deep sea services in Hong Kong and Singapore.

The service will employ three ships on a 21-day round-trip schedule with the following port rotation: Xingang - Qingdao - Singapore - Port Kelang - Hong Kong (mid-stream) - Xingang.

The first sailing in this new service will be made by Evergreen's 1,618TEU Uni-Prosper from Xingang on 27 September, followed by Yang Ming's 1,512TEU YM Fukuoka and Wan Hai's 1,439TEU Arabian Express.

China Further Liberalizes Trade with Hong Kong

According to a September 10 article in The Straits Times, China has recently expanded the scope of the Closer Economic Partnership Arrangement (CEPA) it signed with Hong Kong in June 2003. With the existing pact having failed to increase bilateral trade as much as anticipated, Beijing has agreed to liberalize access for more goods and services from the special administrative region it reclaimed from the United Kingdom in 1997. Specifically, the article said, China will (a) beginning January 1, 2006, allow duty-free entry to 184 categories of goods not currently produced in Hong Kong, (b) ease entry requirements for 11 of 18 service sectors that already have access to the mainland, and (c) effective January 1, 2005, grant preferential access for eight new services

China Ranks Second in Shipping

A recent market survey conducted by the Standard Pool Company shows that China is now the world's second biggest shipping country, handling 10 million standard containers annually.

Experts said that the shipping industry has registered a dramatic increase over the past decade, of which the growth rate exceeded that of the global gross domestic product (GDP). Being a major Asian trader, China has benefited from the rapid development of shipping and has greatly improved its container ports.

China has three ports, which are in Shanghai, Guangzhou and Ningbo, whose annual handling capacity reaches 100 million tons each.

The other main container ports, such as Shenzhen, Dalian and Tianjin, also saw substantial development in the past ten years.

International maritime researchers predicted that the handling capacity of China's container ports will be the highest in Asia in the next 15 years.

House Bill would counter China Textile Threat

WASHINGTON -- Legislation was introduced by a group of House Democrats that they said would address problems anticipated by the end of international textile and apparel quotas in January.

The “Textiles and Apparel China Safeguard Act” states that the U.S. textile industry would not have to wait until the effects of unlimited Chinese imports are realized. The legislation would clarify that the domestic industry could file threat-based claims to preempt economic injury. It also would direct the president to negotiate a comprehensive, bilateral, textiles and apparel agreement with China

The WTO agreement allows members to negotiate bilateral agreements with China to avoid the type of market disruptions that are predicted.

The legislative proposal also would direct the president, if China does not agree to negotiations, to impose import restraints for all products that are currently under quota. A letter outlining the proposal and criticizing the Presidents administration for not acting to head off the threat China poses was signed by nine members of the House Democratic leadership and stated: "Your administration's continued inaction threatens the U.S. textile and apparel industries."

Press reports are that the administration has tentatively indicated that it will attempt to discuss this critical issue with China this week. The House Democratic leadership further stated: “What are needed are not informal discussions, but concrete steps as part of a comprehensive action plan."

Major Bonded Area to be Built in Xinjiang

A MAJOR bonded area covering five-square kilometres is to be developed in China's second largest railway customs checkpoint at Alashankou in Xinjinag, according to Xinhua. The bonded area will provide warehousing facilities and a wide range of logistics services including container loading and unloading, and will be built under a CNY150 million (US$18.12 million) joint venture involving the Alashankou Customs Check Point Administration Committee and four companies. The report said under the plan, an area adjacent to the customs checkpoint will be set aside for the processing industry. The Alashankou Customs Checkpoint is the second largest of its kind on the mainland, handling 90 per cent of the foreign trade that passes through Xinjiang

DHS to Require Import Container Seals

NEW YORK -- The Department of Homeland Security plans to require the use of non-electronic seals on all marine containers entering the United States.

DHS undersecretary for border and transportation security, Asa Hutchison, made the disclosure at the U.S. Maritime Security Expo.

Container seals have been adopted as part of the voluntary Customs-Trade Partnership Against Terrorism (C-TPAT).

The Maritime Transportation Security Act subcommittee of the Customs Operations Advisory Committee (COAC) recommended that a seal regulation be implemented within 12 months.

DHS officials said that the technology for electronic container seals -- in which information about the contents or location of the box is contained in electronic form -- has not matured to the point where it can be deployed on a large-scale basis without the risk of a high percentage of errors.

Requiring a seal on every import container "is the right thing to do". "We are going to pursue that recommendation from the COAC committee” said Hutchison.

The cost would be borne by the importer while the responsibility for verifying the seals would lie with the container line. About 6 million marine containers come into the U.S. each year.

DHS will formulate standards for the seals, which will also need to conform to existing ISO standards for high-security container seals.

C-TPAT Membership May Potentially Reduce Inspections by Customs

The U.S. Customs & Border Patrol (CBP) indicated that certified C-TPAT members are 3-5 times less likely to be examined for trade or compliance measurement reasons, and 5-8 times less likely to be examined for enforcement-related reasons. Customs acknowledged, however, that these numbers will vary depending upon the importer and the type of product being imported.

The original goal of the DHS was to enlist the top 1,000 importers in C-TPAT. However, this goal has been greatly surpassed, as over 3,800 importers, 1,236 carriers, and more than 1,200 brokers and freight forwarders have applied for C-TPAT membership. Once a company has signed a "Memorandum of Understanding" ("MOU") to participate in C-TPAT, it can advertise itself as being a "C-TPAT participant". After the company has been certified by Customs, it becomes a "C-TPAT member".

There has been some talk by CBP that it intends to limit C-TPAT membership to only 7,200 importers. If this holds, true, then only a few thousand more companies will be allowed to sign up for the program.

Following certification, CBP "validators" visit the premises of the applicant, review the underlying information that supports the applicant's the responses, and may make security related recommendations.

As of this date, 288 C-TPAT validations have been completed, and over 700 validations are in process. It is CBP's goal to complete 400 C-TPAT validations by the end of FY 2004 (October 2004).

As part of being certified for C-TPAT, members may participate in the C-TPAT Status Verification Interface ("SVI"). The SVI Internet-based user interface allows access to verify the C-TPAT status or obtain information from another consenting, certified Status Verification Interface Participant (SVIP).

The C-TPAT SVI function is accessed via the C-TPAT section of the CBP web site or by going directly to https://apps.cbp.gov/svi. Access to the C-TPAT SVI is obtained using a user ID and password.

There is an SVI "Frequently Asked Questions" (FAQ) posted on the CBP website https://apps.cbp.gov/svi.

US Targets Ships Arriving from Countries with Uncertain Port Security ST&R

The US Coast Guard (USCG) has announced that it will intensify scrutiny of ships registered in countries with substandard maritime security, as well as vessels coming from ports in countries in which implementation of the new international security regime is uncertain. USCG has said that it will increasingly board vessels flying the flags of countries that have not implemented basic antiterrorist security measures, including Albania, Benin, Democratic Republic of Congo, Equatorial Guinea, Guinea, Guinea-Bissau, Kiribati, Lebanon, Liberia, Madagascar, Mozambique, Nigeria, Serbia and Montenegro, Sierra Leone, Solomon Islands, and Suriname.

These countries have failed to communicate to the International Maritime Organization (IMO) or the USCG all information regarding port facility security information as required by Regulation 13 of Chapter XI-2 of the International Convention for the Safety of Life at Sea, 1974 (SOLAS) or the Maritime Transportation Security Act of 2002 (MTSA). Failure to submit the required information indicates noncompliance with the port facility requirements of the International Ship and Port Facility Security (ISPS) Code and leads the US government to believe that inadequate anti-terrorism measures are in place at port facilities in these countries. Vessels that have visited one of these countries during their last five port calls will be subject to increased Port State Control actions upon arrival at a US port.

Electronic Certification System (eCERT)

Foreign countries participating in the Electronic Certification System, eCERT, can now transmit export license/certificate data electronically. After transmissions are accepted by U.S. Customs and Border Protection (CBP), results are returned to the country of origin electronically. It should be noted that users of eCERT data that need information specific to the Message Implementation Guidelines (MIG) may go directly to the Technical Guidelines section of this site.

Background

For many types of commodities, an endorsement by a foreign government or its representative is required to signify that the shipments are authorized for export to the United States. This endorsement, often in the form of an export certificate, certificate of eligibility, or license, serves to describe the type and quantity of merchandise, certifies the country of origin and authorizes the shipment to be charged against any applicable quota. The merchandise covered could be textiles/apparel related to a Tariff Preference Level (TPL) or agricultural commodities such beef or dairy products.

The Electronic Certification System (eCERT) is a system developed by CBP that uses electronic data transmissions of information normally associated with a required export document such as a license or certificate to facilitate the administration of quotas and ensure that the proper restraint levels are charged without being exceeded.

Foreign countries participating in eCERT transmit information via a global network service provider. This allows connectivity to the CBP Automated Commercial System (ACS). When making entry, specific data elements transmitted to CBP by the importer/broker must match eCERT data from the foreign country before any applicable quota is reported. The ability to have government-to-government transmission decreases the potential for circumvention of quotas resulting from counterfeit documents.

Although the release of the shipment is not precluded by the absence of certificate information, no claims for a preferential duty rate will be considered unless the information transmitted by the filer matches the information transmitted by the foreign government. Once this information is processed through ACS, information regarding certificate/license usage is made available to the participating country upon request.

Benefits

• SECURITY. eCERT data moves electronically between government systems. Safeguards are in place to protect the integrity and confidentiality of the information.

• REDUCED CERTIFICATE/LICENSE FRAUD. There is an immediate reduction in the chance that counterfeit paper documents will be used because the information provided by the importer/broker must match the information transmitted by the foreign government. Paper documents are more susceptible to tampering.

• IMPROVED COMPLIANCE. There is a decrease in data discrepancies since the importer’s/broker’s entry data must match the foreign government’s export information.

• IMPROVED MONITORING. Statistical reporting and tracking of certificates/licenses is improved. eCERT allows the participating governments to monitor certificate/license utilization by electronically requesting a Document Activity Report (DAR).

• TIMELESS PROCESSING. eCERT participants are authorized to transmit an electronic request to register a certificate/license at any time, seven days a week, 24 hours a day.

Eligibility

Any country requiring a certificate (i.e., an export license/certificate, certificate of eligibility, etc.) for importation into the United States of specific commodities as a requirement to qualify for in-quota or tariff preference rates of duty is eligible to participate in eCERT.

The West Coast Congestion is Expected to Simmer Through 2005

The various problems that have plagued service this year; skipped port calls, waiting for berths, train shortages, gate delays, highway congestion are expected to force carriers to continue the peak season surcharge for at least an extra 5 weeks. 2005 will see capacity increase, however, the growth of container traffic is expected to keep pace with the new capacity – leaving us exactly where we are now.

All water services via the Panama Canal to East Coast destinations are useful but only if you can find space, since vessels in this trade lane have been fully booked since March. Adding vessels into this service is unlikely in the short term.

Terminal operators are hopeful that the service can improve simply by overpowering it with the addition of 3000 longshoremen. Some question the impact of these in the short term because of their inexperience.

UP Rail will not set a date as to when they might be able to meet customer service levels.

Senate Adopts New Port Security Legislation

9/24/04 The U.S. Senate on Tuesday by voice vote passed as amended S. 2279, the Maritime Transportation Security Act of 2004. As noted by Sen. Fritz Hollings (D-S.C.), the bill puts into action transportation recommendations from the 9-11 Commission Report. S. 2279 mandates that unclaimed cargo be removed from docks to a regulated customs warehouse within seven days and an administrative penalty of $5,000 may be imposed on the consignee for each bill of lading in violation of the new requirement. This measure requires federal grants to assist ports to implement security plans to be awarded based on risk assessment, including taking into account national security priorities, and national economic and strategic defense concerns. The grants are to be awarded after review by the Coast Guard Captain of the Port and the regional Maritime Administration official. S. 2279 requires a report to Congress on the security of ships and facilities used in the cruise line industry; a report on the design of maritime security grant programs; a report on transportation worker background investigation programs; and, a report on security at Caribbean ports. The bill requires MarAd, in coordination with the State Department, to identify foreign aid programs that could be used to help less developed countries implement port security programs. In addition, the measure requires MarAd, in coordination with the Federal Law Enforcement Training Center, to establish a curriculum to educate federal and state officials on commercial maritime and intermodal transportation. The House of Representatives must now consider S. 2279.

New Shipbuilding Surge Continues

The world shipbuilding industry is expected to spend US$5.3 billion on marine propulsion systems in 2004 and this is set to rise.

In 2004 alone, engines are likely to be installed with a total power output the equivalent of about 15 nuclear power stations”.

The world shipping and shipbuilding industry is currently enjoying a strong upturn. World economic growth is buoyant and it is expected to remain strong in the medium term boosted by the very strong growth of the Chinese economy and to a lesser extent in other developing economies.

New Study Reveals How Freight Rail Can Alleviate Gridlock on America's Highways, Help Commuters Save Time and Fuel

WASHINGTON, Sept. 16 /U.S. Newswire/ -- A new study of 49 major cities shows that freight rail can help reduce gridlock. The study reports that if by 2025, 25 percent of freight volume is shifted from road to rail, commuters across America could save an average of 44 hours each year.

The same shift would both save each commuter an average of 257 gallons of fuel each year and reduce congestion costs by an average of $620 per household each year in the cities studied.

"With freight volume expected to grow by two-thirds over the next 20 years, freight railroads will become even more critical to easing congestion," said Wendell Cox, a transportation expert and author of the annual study. "In order to carry increasing freight volumes, railroads need more capacity. Rail capacity depends on investment returns. Since railroads are not meeting their cost of capital, government policy makers may want to consider investment incentives to help meet the growing demand for freight rail."

Transporting more freight by rail also would positively impact the environment. The shift would lower air pollution by an average of 882,000 tons annually in the cities studied. Additionally, it would lessen highway capacity challenges.

Overall, the study shows that, by 2025, a 25 percent shift of freight from road to rail, on average, would: -- Save each commuter 44 hours per year

-- Save each commuter 257 gallons of fuel per year

-- Save the economy $620 per household in congestion costs each year

-- Reduce air pollution by nearly 900,000 tons each year

"One freight train can carry as much cargo as 500 trucks and one intermodal container train can carry nearly 300 truck trailers," said Edward R. Hamberger, president and CEO of the Association of American Railroads. "The intermodal partnership between the rail and trucking industries combines the best abilities of the transportation modes and is an important solution in the battle against traffic congestion."

Note: To receive a copy of the report visit http://www.tomorrowsrailroads.com.

© 2004 U.S. Newswire

CPR - Restricted Commodity Items

Many of the loads CPR transports include many that are not properly loaded or secured or packaged that can damage our environment or the equipment. Because of these issues CPR restricts or prohibits the movement of some commodities. The commodities that CPR lists in various tariff items or in other customer communication that are considered to be  embargoed, prohibited or restricted have been updated. The purpose of this notice is to let you know about these changes and to ensure that you have an opportunity to review the changes prior to the new tariff items becoming effective.

"Restricted, Prohibited, Forbidden Commodities and Equipment with either Non Acceptance and/or Conditions of Acceptance" terms are listed in the following tariffs:

1) Tariff 7000 Item 190 will be effective September 15, 2004. This applies to our Domestic US traffic.

2) Tariff 7100-C Item 3463 will be effective September 2, 2004. This applies to our Domestic Canada traffic.

3) Tariff 7800 Item 160 will be effective September 15, 2004. This is a new tariff for International traffic.

You can view these items by accessing tariff items at http://www.cpr.ca or by requesting a copy of the tariff that applies to your traffic from your Commercial contact.

These Items neither increase nor add any new tariff costs.

These Items have a short list of prohibited and forbidden commodities. In addition there is a list of commodities from coils and cigarettes to rolled paper and waste that are classified as restricted commodities.

Just because a commodity is listed on the restricted commodity list does not mean that you are not allowed to load it and ship it by CPR. It just means you either need special arrangements or agree to adhere to some provisions around the transportation of that particular commodity. You can move them but may need special equipment, specialized loading securement approved by CPR or special contract tariff items. Once you meet those loading requirements CPR will move those shipments safely and efficiently.