Making Secure Worldwide Trade a Reality
United States Joins New WCO Framework of Standards   Friday, June 24, 2005

BRUSSELS - United States Customs and Border Protection (CBP) Commissioner Robert C. Bonner submitted the United States’ “Declaration of Intent” to adopt the World Customs Organization (WCO) “Framework of Standards to Secure and Facilitate Global Trade.” Yesterday the United States was among the first nations to join the WCO’s newly adopted strategy to secure global trade.

The WCO consists of 166 member nations, representing 99-percent of global trade. The Framework represents the WCO’s effort to secure supply chains throughout the world, while allowing trade to move faster, smoother, and more predictably. For the first time in history, a common set of standards will be implemented to secure cargo moving into, through, and from all ports of the world. It is a global response to terrorists, organized criminals, smugglers, as well as other illegal activities.

“The adoption by the WCO of the Framework of Standards represents a global response to the threat of terrorism. The Framework makes safer, worldwide trade a reality,” Commissioner Bonner stated. “Its implementation by customs authorities around the world will revolutionize the security of trade, dealing a blow to international terrorists.”

“Through efforts such as the Container Security Initiative, Customs-Trade Partnership Against Terrorism, and the 24-Hour Rule, CBP has taken unprecedented actions to secure America’s borders. Trade security must also be international in scope, and I applaud the WCO’s leadership in pursuing this global strategy,” Commissioner Bonner said.

Commissioner Bonner joined the Customs Director Generals of the European Union, Japan, Australia, and Canada in announcing their commitment to provide aid to the developing nations who exhibit the political will to implement the security Framework but, require assistance to do so. Bonner also announced the creation of the Capacity Building Division within the CBP Office of International Affairs to help developing nations implement the Framework of security standards. This new CBP office will work closely with the Directorate for Capacity Building at the WCO Headquarters in Brussels, Belgium.

“Nations who exhibit a true will to purchase screening technology and implement minimum security measures will need – and deserve – assistance,” Bonner said. “Implementing these standards will improve the flow of trade for these smaller, developing nations thereby expanding their economies and improving the quality of life.”

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CBP Completes First Regional Installation of Nationwide Trade Processing System in Western Washington
June 17, 2005

With the successful deployment of the Automated Commercial Environment (ACE) trade processing system at Oroville, Washington, this week, U.S. Customs and Border Protection (CBP) today announced the completion of ACE installations at ports in western Washington. A pilot of the ACE Secure Data Portal and the first ever electronic manifest (e-Manifest) capability for trucks was completed in Blaine, Washington, on April 14, 2005, clearing the way for ACE to be rolled out to additional ports. The ports at Sumas, Lynden, and Point Roberts in western Washington were launched in late April.

"This is a key step forward in the roll out of ACE, the next generation of technology designed to enhance national border security and expedite lawful trade," said CBP Modernization Office Executive Director Louis Samenfink. "We've learned a great deal with these initial installations and adjustments continue to be made, but ACE is now officially on the move to land border ports around the country."

In the next few months, ACE is scheduled to be deployed at ports near select hub cities, including Douglas, Arizona, and Detroit, Michigan.

Truck carriers are encouraged to begin to establish ACE truck carrier accounts as soon as possible to ensure smooth border operations when electronic manifest capabilities are eventually mandated at all ports. To date, more than 100 carriers have established ACE accounts, bringing the total number of ACE importer, broker, and carrier accounts to more than 500.

ACE Secure Data Portal
The ACE Secure Data Portal is essentially a customized computer screen similar to a Website home page that connects CBP and the trade community by providing a single, centralized, on-line access point for communications and information. The portal enables information to be pulled from multiple systems throughout CBP into a single, integrated system. Through the development of tools such as the portal, ACE will provide unprecedented integration of data and communication abilities among CBP, the trade community, and eventually other federal agencies, helping government reduce paper-based transactions. New system-wide enhancements to the ACE Secure Data Portal were launched on May 28, 2005, to improve portal navigation, enhance editing/reporting abilities, and improve CBP screening and targeting features.

This article can be found on Customs Border Protection Website: http://www.customs.gov/xp/cgov/newsroom/press_releases/06152005_2.xml

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LA/Long Beach PIER PASS system now in place
25 Jul 2005, CIFFA eBulletin

As reported earlier, the PierPass system is now in place since July 23, 05. As of this day, the terminals in LA/LB will be charging U$40/per 20ft container and U$80/40ft+ container before they are released from the terminals during designated peak hours.  The charges will be assessed on ALL full containers and payment accepted if approved for credit or other electronic means (credit card, debit card, or electronic check payments) before release of containers from the terminals. Regular checks are not accepted. The responsible parties for payment will be the beneficiary on the B/Lading.

As of Saturday July the 23rd, most cargo will not be allowed to exit terminals in the two ports by road during peak hours unless the Traffic Mitigation Fee has been paid. The cargo owner (the consignee or shipper) is responsible for payment of the fee, not the trucking company or other carrier. In order to pay the fee, a cargo owner must be registered with PierPASS.

PierPASS urged cargo owners to set up their payment methods well in advance of July 23. Companies that intend to apply for credit should do so immediately. Credit will be granted only to companies meeting PierPASS credit requirements, including credit worthiness standards based on Dun & Bradstreet data, and a volume requirement for moving more than 500 containers per year through the two ports. Registration began on May 23. Since late April, PierPASS has conducted an intensive outreach effort to reach all affected parties and urge all cargo owners to register. As of June 28, more than 2,200 companies had registered.

Marine terminal operators at the Los Angeles and Long Beach ports created PierPASS in 2004 in response to demands from political leaders, community leaders and the shipping industry to shift cargo movement away from peak hours. By providing a financial incentive for cargo operations on nights and weekends, the OffPeak program aims to reduce daytime truck trips and improve air quality.

Even companies that are not responsible for payment should register. For example, registration will allow a trucking company to check whether the fee has been paid for a particular container before sending a driver to pick it up. Detailed information on the Traffic Mitigation Fee (including who must pay it, when it must be paid, payment methods and credit account information) is available on the PierPASS website at: www.pierpass.org

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Little Movement Toward Additional Byrd Amendment Retaliation.
ST&R

Inside US Trade reported on July 15 that there has been little movement by six of the eight countries that won a WTO case against the Byrd Amendment to impose trade sanctions against US exports. Brazil, Chile, India, Japan, Korea, and Mexico announced in June that they intended to take such action by July due to the US’ failure to repeal the law. The European Union (EU) and Canada are already retaliating, having imposed an additional 15% duty on various US exports as of May 1.

In threatening to retaliate, the six countries noted that more than $1 billion in collected AD and CV duties have been distributed under the Byrd Amendment and that a fifth round of disbursements slated for this fall “would add to the damage already done and cannot be accepted.” However, the article said, none of them have done much to move the process forward either internally or among each other, despite the fact that last month’s warning has had virtually no effect on raising the profile of the issue in Washington.

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"PERILS-OF-THE-SEA"

If you're shipping next winter, here's something to consider: There's growing scientific evidence that winter weather conditions in the North Atlantic and Pacific are getting worse.  The number and frequency of severe hurricanes and typhoons are increasing to levels last seen in the 1950s and 1960s. On top of this - literally - comes a layer of fresh water from the melting Arctic ice cap that may be producing even higher waves during storms.  And here's something else to think about: Increasingly, vessel owners and charterers are finding that courts are denying their traditional "perils-of-the-sea" defense against shippers' claims of cargo damage, losses or delays caused by storms at sea. The reason is that the science of predicting storms and other bad weather conditions has improved so much that judges are often finding that a vessel's captain should have been aware of severe weather forecasts or used a routing service that could chart a course for his ship around the bad weather.  "The development of accurate meteorology means that the 'perils-of-the-sea' defense doesn't work any more," said Vincent M. DeOrchis, a New York maritime law firm. "Judges are not sympathetic to it because they have not been to sea and don't understand what ships encounter." DeOrchis said.  The perils-of-the-sea defense is permitted under the 1936 Carriage of Goods by Sea Act. It exempts vessel owners or charter operators from damage claims when "acts of God" or "perils, accidents of the sea" are involved.  The issue is significant because the number of containers lost overboard varies between 2,000 and 10,000 a year, according to Richard G. Roenbeck, senior account executive at St. Paul Global Marine. "These are not rare or occasional events," he said. "If you search the Internet for information on container losses, you will find a number of sites posted by yachting associations expressing concern or annoyance about the growing number of floating and submerged cargo containers cluttering up the coastal waters in which they navigate." Roenbeck figures that 10,000 boxes lost overboard during a year would subject cargo underwriters to annual claims exceeding $443 million. As container ships become larger, with more containers stacked above deck, the number of containers lost and size of claims is bound to grow.  (The Journal of Commerce, 6/20/2005.)

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New Group Aims to Increase US-Arab Trade
ST&R

Lebanon’s The Daily Star reports that a new group has been formed with the goal of further increasing trade between the US and Arab countries. The Middle East and North Africa Council of the American Chamber of Commerce (AmCham MENA) will focus on laying the groundwork for free trade agreements (FTAs) between the US and countries in the region, as well as improving trade ties among those countries. US officials offered support for the new undertaking but cautioned that substantial reforms are needed before further progress can be made.

US, Iraq Sign TIFA. According to a USTR press release, the US and Iraq signed a bilateral Trade and Investment Framework Agreement (TIFA) on July 11. The TIFA creates a Joint Council that will consider a wide range of commercial issues and sets out basic principles underlying the two nations’ trade and investment relationship. “Iraq is making a major effort to reintegrate into the international economy, and the meetings of the Joint Council should assist Iraq in this important endeavor,” said Assistant USTR Ashley Wills. “We believe that the U.S. – Iraq TIFA will enhance trade between our two countries and assist Iraq as it seeks to grow and diversify its economy.” US exports to Iraq in 2004 of $856.5 million were dwarfed by imports of $8.5 billion, mostly oil.

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Panama Canal tolls “to more than double in 20 years"

A new study by US firm Global Insight predicts that tolls on the Panama Canal are set to more than double over the next 20 years, to finance expansion.

The study says that the first hikes may happen as early as 2008, with a predicted 5.8% annual rise. It adds that the new toll levels will virtually equalize the cost of going through the Panama and Suez canals (per TEU cost) for container ships.

Global Insight notes that the majority of expansion costs will be bore by the shipping community over the next 15 years, for an asset with a lifespan of 75 years. But it says that, if the US railways rise to the challenge and capitalize on new port developments at Tacoma and Prince Rupert Island, the toll rises could be even higher.

The study says that tolls could even rise by 272% over the next 20 years under a pessimistic financing scenario compared with 128% in the base case. It argues that tolls will have to rise steadily in the early years of the expansion project in order to avoid swinging increases 10 years out when the bulk of the project debt repayment surges upward. To avoid a balloon increase in tolls, the Canal will have to begin raising rates in 2008 by 5.8% each year until the year 2029.

Nuke detectors operational at LA and Long Beach

THE US has installed its first radiation portal monitors, at the ports of Los Angeles and Long Beach. The new equipment was unveiled by US Customs and Border Protection Commissioner Robert Bonner at a seaport security summit designed to acquaint port officials and the public with the pivotal role played by Customs and Border Protection (CBP) in safeguarding the nation’s busiest seaport.

“When it comes to the continued vibrancy of the United States economy, it is safe to say that as the ports of LA and Long Beach go, so goes the nation,” Commissioner Bonner stated. “Today I am confident to say we are striving to meet the challenge of securing our ports against terrorists and their weapons, without choking off the flow of our vital trade.”

The recent recommendations that Department of Homeland Security (DHS) Secretary Michael Chertoff announced on July 13, called for “better systems to move people and goods more securely”. Mr Bonner said, “Streamlining and flattening the DHS organizational structure will enable CBP to be even more effective in protecting our homeland”.

Mr Bonner, fresh from a major policy victory at the World Customs Organization in Brussels, Belgium, where the member nation’s adopted United States’ standards for cargo security, pointed to the Ports of Los Angeles and Long Beach as seaports where these standards are exemplified. 45 percent of all ocean-going cargo enters the US through the Ports of Los Angeles and Long Beach. “CBP uses a layered approach to security that begins before a container is even laded onto a U.S. bound vessel at a foreign port. And, our CBP officers are highly-trained and equipped to examine every container that arrives,” Mr Bonner noted.

Part of the layered approach Commissioner Bonner outlined is the Radiation Portal Monitor (RPM) system, designed to detect any radiological emission coming from a vehicle or container. More than ninety will be installed in the ports of LA and Long Beach and will screen every container leaving the ports toward the major population centres. By the end of the year, Commissioner Bonner stated, every container arriving at California sea ports and every private vehicle, truck or rail car coming into California through the land border crossings from Mexico will be monitored by these high tech devices.

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Elimination of import quotas and visa requirements on most textile and apparel products produced in a WTO member state
ST&R 7 Jul 2005

On January 1, 2005 the United States eliminated the import quotas and visa requirements on most textile and apparel products produced in a WTO member state. (Under these new rules, goods produced in China may still be subject to special safeguard quotas; Quotas, visas and other applicable requirements remain in effect for textile and apparel goods produced in countries that are not members of the WTO; Visas are still required for textile and apparel products imported under the African Growth and Opportunity Act.)

The elimination of quota raised a number of transitional problems relating to goods exported prior to January 1, 2005. These goods continued to be subject to quota and visa even if they arrived in the United States after January 1, 2005. This meant that if the goods were shipped in 2004 and arrived without a visa, the goods were denied entry.

Furthermore, goods exported in 2004 that arrived in the United States with a visa after the 2004 quota was filled were held by US Customs for “staged entry.” This meant that a small percentage of the over-quota goods was authorized for import every month while the balance had to be stored in a Duty Free Zone or outside the country awaiting permission to enter.

We are therefore pleased to report that the US Government has eliminated virtually all of the quotas, visas and staged entry requirements for over-quota goods exported to the United States prior to January 1, 2005. This means that most of the over-quota goods currently held in Duty Free Zones or outside the country may now be imported into the United States. Coincidentally, this also opens the door to cross-border shipments of off-shore apparel from Canada to the United States, regardless of when the goods originally entered Canada.

What is the impact of this change on goods produced in China that are currently subject to safeguard quotas?

For all intents and purposes, the new rules will have no impact on the importation of goods produced in China that are subject to safeguard quotas in 2005. Goods that are subject to safeguard quotas do not require a visa. However these goods must be release by US Customs before the annual safeguard quota runs out. Goods shipped in excess of the annual quota must be held in a Duty Free Zone or outside the country until 2006.

If safeguard quotas are not re-imposed on the goods in 2006, any over-quota goods from 2005 will be allowed entry beginning on February 1, 2006 on a pro-rata basis of up to 5% of the quota amount per month. It is still unclear how over-quota goods will be handled if safeguard quotas are re-imposed on the same goods in 2006.

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New Bill Would Automatically Impose Extra Tariffs on Imports from China
24 June 2005, ST&R

On June 21, four House Republicans introduced legislation (HR 3004) that provides for the automatic imposition of additional tariffs on all imported goods from China if the Treasury Department determines that China’s exchange rate policy meets the WTO definition of currency manipulation. Primary sponsor Phil English (PA) said the bill “represents a new approach to the relationship between the executive branch and the Congress on trade disputes.”

According to a joint press release, the Currency Harmonization Initiative through Neutralizing Action (CHINA) Act of 2005 would require Treasury, within 60 days of the bill’s enactment, to report to Congress on whether China’s exchange rate policy deviates from the intent of General Agreement on Tariffs and Trade (GATT) 1994 or relevant International Monetary Fund (IMF) agreements. Article XV of GATT 1994 prohibits WTO members from frustrating the intent of the provisions of that Agreement by exchange rate action or the intent of the IMF Articles of Agreement by trade action. The IMF prohibits the use of currency manipulation as a method of gaining unfair trade advantage, defining such manipulation as large-scale and protracted intervention in one direction to gain an unfair trade advantage.

If Treasury makes an affirmative determination, it would be required within 30 days of submitting the report to levy additional tariffs at a rate equal to the percentage of manipulation found. These increased tariff rates would be adjusted each year based on Treasury’s subsequent reports on China’s exchange rate policies.

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US CUSTOMS ARTICLES:
U.S. textile makers petition for protection from Chinese imports
12 Jul 2005, American Shipper

U.S. textile, apparel and fiber-producing trade associations on [11 July] filed four new safeguard petitions covering eight categories of textile and apparel imports from China.

The new safeguard categories are 341/641, cotton and man-made fiber non-knit shirts; 342/642, cotton and man-made fiber skirts; 351/651, cotton and man-made fiber pajamas and nightwear; 359S/659S, cotton and man-made fiber swimwear. The refiled category was 369/666, cotton and man-made fiber curtains.

The filings were made by the National Textile Association, the American Manufacturing Trade Action Coalition, the National Council of Textile Organizations, and Unite Here, a labor union.

"The U.S. textile industry will keep filing petitions until the United States and China reach a comprehensive agreement to moderate the growth of Chinese textile and apparel imports to a reasonable level through 2008," said Auggie Tantillo, executive director of the American Manufacturing Trade Action Coalition.

A 3-2 vote is necessary on the five-member CITA panel to approve any safeguard petition. CITA comprises representatives from the U.S. departments of State, Commerce, Labor and Treasury, as well as the office of the U.S. Trade Representative.

Once a safeguard petition is filed, CITA has up to 15 working days to accept or reject the petition on its technical merits. If the petition is accepted, a 30-day public comment period then begins, followed by a 60-day CITA decision-making window.

If CITA approves a safeguard petition, a consultation period then begins between China and the United States, as mandated by China's accession agreement to the World Trade Organization. If no agreement is reached, the United States can impose a limit on Chinese exports in the safeguard categories of 7.5 percent growth.

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U.S. and China Signs Agreement to Launch New International Partner Network to Further U.S.-China Business Relations

BEIJING, CHINA – U.S. Commerce Acting Under Secretary for International Trade Tim Hauser and China Council for the Promotion of International Trade (CCPIT) Chairman Wan Jifei signed a Memorandum of Understanding (MOU) to launch a new U.S.-China International Partner Network in 14 major business centers across China on July 12, 2005. The MOU was signed during the U.S.-China Joint Commission on Commerce and Trade annual meeting.

"The U.S.-China International Partner Network will foster new relationships between U.S. and Chinese small and medium-size companies in 14 key Chinese business centers, generating new opportunities for U.S. business in the China market and prosperity for both our great nations," said Hauser.

The wide-ranging cooperation established under the MOU immediately provides:

• Sharing and jointly preparing targeted Chinese market research and trade lead information,

• Establishing high quality business matchmaking services for American exporters in 14 major business centers across China,

• Cooperating on mutually beneficial trade exhibitions and trade missions in the 14 Chinese business centers,

• Using the latest software and technology to disseminate market opportunity information to American and Chinese business representatives to facilitate U.S.-China trade and

• Training CCPIT trade specialists on high quality client service standards and techniques.

Chairman Wan indicated, "This agreement will help Chinese companies find American partners and consequently generate more concrete business cooperation of mutual benefit, which will strengthen the foundation of US-China business relations."

The new U.S.-China International Partner Network agreement establishes service centers in Dalian, Chongqing, Hangzhou, Harbin, Kunming, Nanjing/Jiangsu Province, Ningbo Qingdao, Shenzhen, Tianjin, Wuhan, Xiamen, Xi'an/Shaanxi Province and Zhuhai.

American companies interested in utilizing the expanded trade promotion resources of the U.S.-China International Partner Network should contact their nearest Commerce Department U.S. Export Assistance Center or call 1-800-USA-TRADE or visit www.buyusa.gov/china/en. Chinese companies interested in learning more about this new Chinese-American cooperation should contact CCPIT Beijing at (8610) 8129-5127 or visit www.ccpit.org.

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eyefortransport events

http://www.eyefortransport.com/

Milwaukee World Trade Association

http://www.mwta.com/Events2.asp

NCBFAA 2005 Government Affairs Conference  September 18-20

http://www.ncbfaa.org/

Trade fairs in China 2005

http://www.buyusa.gov/china/en/upcomingshows.html

TODAY'S FRONT PAGES

http://www.newseum.org/todaysfrontpages/flash/

Today's Front Pages has the front pages from 435 newspapers in 47 countries, and you can see each one by dragging your mouse across a map. You simply choose a continent, then allow a few seconds for the newspapers to load. The front page will appear, and you can enlarge it or go directly to the newspaper's Web site to read that day's edition. It's a great way to compare the way other newspapers handle the same stories.