December  2005             

 

SECURITY NEWS

Hapag-Lloyd has changed it's tariff rules concerning undeclared hazardous cargo. The new rule reads as follows:

SHIPPER shall further be assessed a U.S. $1000.00 penalty for failure to properly offer and/or declare Hazardous Materials / Dangerous Goods at the time of booking, if such shipments load to a vessel prior to discovery and notification to the CARRIER of the undeclared material.


Buenos Aires, Argentina, 41st Operational Container Security Initiative Port to Target and Pre-Screen Cargo Destined for U.S.

WASHINGTON, D.C.— United States Customs and Border Protection (CBP) Commissioner Robert C. Bonner and the government of Argentina announced the port of Buenos Aires as the 41st operational Container Security Initiative (CSI) port to target and pre-screen maritime cargo containers destined for U.S. ports. 

U.S. Ambassador to Argentina Lino Gutierrez and Dr. Alberto R. Abad, Federal Administrator of National Revenue of the Argentine Republic, signed the declaration of principles on May 9, 2005.

“The Container Security Initiative is a deterrent to terrorists seeking to use containerized cargo as a conduit for terrorism within the maritime environment.  Having CSI ports, such as the one in Buenos Aires, is making U.S. borders more secure and more efficient,” said Commissioner Bonner.  “CSI is a way of addressing the threat to global trade making it more secure against terrorist exploitation and Argentina was the first South American country to agree to participate in CSI.  CBP will continue to cast out the CSI security blanket to additional foreign ports.”

CBP will deploy a team of officers to be stationed at the port of Buenos Aires to target maritime containers destined for the United States.  Argentine Customs officials, working with CBP officers, will be responsible for screening any containers identified as a potential terrorist risk.

Currently, there are 41 operational CSI ports in Europe, Asia, Africa, the Middle East, and North and South America.  Approximately 75 percent of cargo containers headed to the U.S. originate in or are transshipped from CSI ports.

Under the Container Security Initiative, CBP has entered into bilateral partnerships to identify high-risk cargo containers before they are loaded on vessels destined for the United States.  Today, a total of 25 administrations have committed to join CSI and are at various stages of implementation.

“When first initiated, CSI was a revolutionary idea – to engage foreign governments to work with us to extend the U.S. zone to security outward, so that our borders are not the first line of defense against the threat of terrorism, and to secure and protect trade lanes from foreign seaports to the U.S.,“ Commissioner Bonner said.  “Now CSI is an accepted model of international cooperation to protect the global supply chain against terrorism.”

CBP’s goal is to have 50 operational CSI ports by the end of 2006.  At that time, approximately 90 percent of all transatlantic and transpacific cargo imported into the United States will be subjected to pre-screening. 

CSI will continue to expand to strategic locations around the world.  The World Customs Organization (WCO), the European Union (EU), and the G8 support CSI expansion and have adopted resolutions implementing CSI security measures introduced at ports throughout the world.

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Oman to  Participate in Container Security Initiative to Screen Cargo
Destined for U.S
.

Washington, D.C. —U.S. Customs and Border Protection (CBP) Commissioner Robert C. Bonner announced that Oman will participate in the Container Security Initiative (CSI) a program that will enable all maritime cargo destined for the U.S. through the port of Salalah to be targeted and pre-screened for terrorists and terrorist weapons.

“CSI is a key initiative designed to prevent global maritime cargo from being exploited by terrorist intent on inflicting harm in America and other nations of the world.  Oman has taken steps to support the Container Security Initiative to safeguard global maritime trade,” said Commissioner Bonner.  “The CSI security blanket continues to expand and strengthen as it encompasses the port of Salalah.”

The signing brings large-scale and sophisticated radiological detection equipment to identify nuclear material under the Energy Department’s MegaPorts Initiative at the port of Salalah. 

U.S. Customs and Border Protection Assistant Commissioner E. Keith Thomson, Office of International Affairs, and Lieutenant General Malik bin Sulaiman al-Ma'amari, Inspector General of the Royal Oman Police as well as Eleanor Melamed, Deputy Director, Second Line of Defense Program, Department of Energy (DOE), signed a declaration of principles on November 19, 2005.

In addition to Oman screening and targeting high-risk containers, the Port of Dubai also became CSI operational on March 26, 2005.  CSI is continuing to expand to strategic locations around the world. 

CSI, the screening and targeting of containers at a foreign seaport, did not exist prior to the terrorist attacks of 2001.  On average, every day about 25,000 seagoing containers are offloaded at America’s seaports.  Commissioner Bonner, confirmed by Congress shortly after 9/11, made maritime cargo security one of his top priorities.  The Container Security Initiative was launched in January 2002.  It is a revolutionary and dynamic initiative to secure maritime cargo shipments against the terrorist threat.

Currently, there are 41 operational CSI ports in Europe, Asia, Africa, the Middle East, and North and South America.  Approximately 75 percent of cargo containers headed to the U.S. originate in or are transshipped from CSI ports.

Under the Container Security Initiative, CBP has entered into bilateral partnerships to identify high-risk cargo containers before they are loaded on vessels destined for the United States.  Today, a total of 24 additional administrations have committed to join CSI and are at various stages of implementation.

CSI is an accepted model of international cooperation to protect the global supply chain against terrorism.  CBP’s goal is to have 50 operational CSI ports by the end of 2006.  At that time, approximately 90 percent of all transatlantic and transpacific cargo imported into the United States will be subjected to pre-screening. 

The World Customs Organization (WCO), the European Union (EU), and the G8, support CSI expansion and have adopted resolutions implementing CSI security measures introduced at ports throughout the world.

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AAPA Policy Position on Seaport Security (pdf)

A description of AAPA’s public policy objectives regarding security and an overview of the challenges – including funding challenges – facing ports as they implement new security measures.

Port Security Fees - October 12, 2005
 

TRANSPORTATION NEWS

Transpacific Stabilization Agreement (TSA)
members to adjust 2006 rates

November 21, 2005

CONTAINER shipping lines with services that run between Asia and the US recently wrapped up discussions relating to the 2006 market outlook and potential 2006-2007 contract rate adjustments that they say will help cover soaring operating and network costs.

According to a release, member lines in the Transpacific Stabilization Agreement (TSA) expect rising inland rail and trucking charges, cargo and equipment imbalances and the network effects of inland infrastructure to add at least US$150 per FEU to their costs for port-to-port west coast service; $350 per FEU for intermodal mini land bridge (MLB) and inland point intermodal (IPI) shipments; and $400 per FEU for east coast all-water service, including reverse inland point intermodal (RIPI) moves. Those costs represent a minimum which lines say they intend to recover from customers in upcoming 2006-07 contract negotiations, and do not include fuel, terminal handling, Panama Canal transit, documentation or other costs already addressed by separate charges.

The group said it estimates that inland transport costs alone will increase 25 per cent or more in 2006 as railroads add locomotives and as truckers upgrade their vehicles and try to attract more drivers back to the industry. Equipment repositioning costs are expected to rise 11 per cent, due to increased volumes, tighter port and rail free-time/detention rules, and periodic rail embargoes of empty containers. As worldwide vessel charter rates ease, many transpacific carriers still pay premium rates under long-term charters negotiated during a crisis environment in 2003-04.

TSA members include: American President Lines, Ltd, Hyundai Merchant Marine Co, Ltd, CMA CGM, Kawasaki Kisen Kaisha, Ltd (K Line), Cosco Container Lines, Ltd, Mitsui OSK Lines, Ltd, Evergreen Marine Corp (Taiwan), Ltd, Nippon Yusen Kaisha (NYK Line), Hanjin Shipping Co, Ltd, Orient Overseas Container Line, Inc, Hapag Lloyd Container Line and Yang Ming Marine Transport Corp.

(Asia Shipping News)

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The Brink's Co. confirms $1.1 billion sale of BAX Global

Richmond, Va.-based security firm The Brink's Co. has agreed to sell its freight-forwarding arm BAX Global to Deutsche Bahn AG for about $1.1 billion in cash.

The announcement, made to the New York stock exchange early Wednesday morning, confirmed recent press speculation linking the Irvine, Calif. based
BAX Global with a takeover by the German state-owned rail operator. BAX Global has nearly 500 offices worldwide with approximately 12,000 employees. In 2004, BAX Global posted revenue of $2.44 billion and an
operating profit of $56.2 million.

Deutsche Bahn is also the parent company of international forwarding giant Schenker.

"BAX fits our strategy perfectly and is an ideal complement to our logistics subsidiary Schenker. With these two companies, DB AG is now one of the world's leading companies in the transportation and logistics sector," said Hartmut Mehdorn Deutsche Bahn's chairman and chief executive officer. As a result of the BAX Global acquisition, Deutsche Bahn said its
transportation and logistics division DB Logistics will increase its annual
revenue to just under 15 billion euros (about $17 billion) from $2.4 billion in 2004. "With BAX, we will significantly expand our position in air and sea freight, which are particularly important for the global supply chains that are constantly growing in demand," said Thomas Held, chairman and CEO of Schenker. "At the same time, we will substantially enhance our presence on the North American market and particularly in Asia. In contract logistics, the business of the future, we will also be able to position ourselves even more effectively. Last but not least, the new setup will further strengthen our leading position in European land transport, since we provide BAX customers in the U.S. with direct access to all the markets in Europe."

The Brinks Co. said its net proceeds after taxes and expenses related to the transaction are expected to be approximately $900 million. "This sale will mark an important financial and strategic milestone for The Brink's Co. Going forward, our company will be focused entirely on security-related services," said Michael Dan, chairman, president and CEO of The Brink's Co.

The two parties expect to conclude the transaction by the end of the year, subject to conditions and regulatory approvals, including reviews under the Hart Scott Rodino Act and the European Union's laws and regulations, as well as the approval of the German Ministry for Transport.

Source - American Shipper

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Border Wait Times, as provided by Canada Border Services Agency (CBSA) and Customs Border Protection (CBP).

Regular updates can be found here:

This link will provide Canadian Border Crossing Updates 

http://www.cbsa-asfc.gc.ca/general/times/menu-e.html

This link provides information for crossing Northern and Southern Border Points

http://apps.cbp.gov/bwt/
 

WORLD TRADE & RULINGS

CITA Approves Duty-Free Treatment for Sierra Leone Textile Articles

22 Nov 2005, ST&R

The Committee for the Implementation of Textile Agreements (CITA) has determined, following consultations with the government of Sierra Leone, that hand-loomed fabrics, hand-loomed articles (e.g., rugs, scarves, place mats, and table cloths), handmade articles made from hand-loomed fabrics, and certain folklore articles that are produced in and exported from Sierra Leone are eligible for duty-free treatment under the African Growth and Opportunity Act (AGOA). However, such products must be accompanied by an AGOA export visa for grouping 9 (handmade, hand-loomed, or folklore articles) issued by the government of Sierra Leone to be eligible for such treatment.

As a result, CITA has directed US Customs and Border Protection (CBP), effective November 28, to allow the duty-free entry of such products of Sierra Leone under HTSUS 9819.11.27 when accompanied by an appropriate export visa.

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Trade Talks Update: China; Cotton; Korea; Thailand; Peru; Africa
Bush Talks Trade with China
22 Nov 2005, ST&R

President Bush met with Chinese President Hu Jintao and Premier Wen Jiabao on November 20 in Beijing to discuss a wide spectrum of bilateral issues. Some of the more relevant economic and trade matters that were considered during the meeting included China’s efforts to protect US intellectual property rights (IPR), China’s move toward a more flexible exchange rate system, and market access for US beef and other products. In a statement issued following the meeting, President Hu vowed to “unswervingly press ahead with reform of the exchange rate mechanism,” although he did not elaborate as to the timing of such action. For his part, Premier Wen recognized that unchecked IPR violations would have a negative impact on the Chinese economy over the long term and described to President Bush a number of IPR enforcement actions that the Chinese government has carried out in recent months.

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African, European Countries Seek Early Doha Round Action on Cotton

On November 18, four African countries and the European Union (EU) made new proposals for liberalizing trade in cotton under the Doha Round. Among other things, Benin, Burkina Faso, Chad, and Mali proposed that (a) all exports of cotton and cotton products from least-developed countries (LDCs) receive duty- and quota-free treatment, (b) all export subsidies for cotton be eliminated by the end of 2005, (c) all cotton subsidies be eliminated by the end of 2008, with an 80% cut by the end of 2006, and (d) an emergency fund be established to compensate poor cotton-producing countries for low international prices. The EU said it was prepared to accept, immediately upon implementation of a Doha Round agreement, the elimination of (a) all duties and quantitative restrictions on imports of cotton, (b) the most trade-distorting domestic support for cotton, and (c) all forms of export subsidies on cotton.

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Comoros to Join African FTA in January

The Xinhua news agency reports that Comoros, an island nation in the Indian Ocean, plans to join on January 1, 2006, an FTA currently comprised of 11 member countries of the Common Market for Eastern and Southern Africa (COMESA). The FTA provides for duty- and quota-free trade among Burundi, Djibouti, Egypt, Kenya, Madagascar, Malawi, Mauritius, Rwanda, Sudan, Zambia, and Zimbabwe, with Uganda and Seychelles also planning to join in 2006. COMESA member countries are hoping to launch a bloc-wide customs union by 2008.


Trade Notes: ASEAN; China; Chile
21 Nov 2005, ST&R

US Seeks to Boost Trade Ties with ASEAN

On the sidelines of the APEC summit last week, the US and the Association of Southeast Asian Nations (ASEAN) agreed to implement various measures to strengthen bilateral cooperation on political, security, economic, social, and development issues. Among other things, the two sides pledged to conclude a Trade and Investment Framework Agreement (TIFA) and enhance economic cooperation in areas such as trade and investment facilitation. ASEAN is comprised of Brunei, Burma, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. 

The region-wide TIFA, once concluded, could accelerate the negotiation of FTAs between the US and ASEAN members. In October 2002, President Bush announced the Enterprise for ASEAN Initiative (EAI), which offers the prospect of bilateral FTAs to ASEAN countries that are committed to economic reforms and openness. Bush said each country could move toward an FTA at its own pace but would first have to conclude a TIFA, and to date only Brunei, Indonesia, the Philippines, Thailand, and Malaysia have met that requirement. With China, India, Japan, and South Korea each pursuing FTAs with ASEAN, there is speculation that the US is seeking to boost its own ties to the group so it isn’t left out of regional trade integration efforts. Washington is currently negotiating a bilateral FTA with Thailand and is expected to decide by the end of the year whether to pursue a deal with Malaysia.

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The Office of the United States Trade Representative

United States Government Critical of New Canadian Government Lumber
11/24/2005

Washington, DC - US Trade Representative Rob Portman and Secretary of Commerce Carlos Gutierrez responded to the announcement by the Canadian Government of a $C 1.5 billion (approximately $US 1.28 billion) package of assistance for its forest products industry.  The United States Government will consult with industry sources to gather information about the potential impact of the subsidies, which would be in addition to the subsidies to the Canadian softwood lumber industry the Commerce Department has previously identified.

"Today's announcement is disappointing.  Only days after we fully complied with a NAFTA decision, Canada responds by announcing huge new subsidies.  Canada's actions illustrate what the United States has been saying all along:  the Canadian industry is the beneficiary of subsidies that create an un-level playing field to the detriment of the U.S. industry," said Ambassador Portman.  "While we continue to believe that a long-term, durable settlement is the only way to resolve this dispute, Canada's actions complicate our attempts to reach a negotiated solution."

The new subsidy announcement follows a decision earlier this week by the Department of Commerce in which it found that the subsidy margin during the period of investigation used for the current countervailing duty order was de minimis.  Those findings were made in response to a direction from a dispute settlement panel established under Chapter 19 of the North American Free Trade Agreement. 

"The United States is very disappointed over Canada's announcement," said Secretary Gutierrez.  "The contrast is startling - at the same time a NAFTA panel has directed the Department of Commerce to find that Canadian subsidies are de minimis, Canada announces over a billion dollars in aid.  This just goes to show that Canada will continue to funnel vast amounts of assistance to its industry. We will continue to insist that there subsidies be eliminated by all means at our disposal.

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Saudi Arabia to Join WTO on December 11
14 Nov 2005, ST&R

The WTO General Council approved Saudi Arabia’s accession package on November 11, and a Saudi official signed the protocol of accession the same day. As a result, the kingdom will become the WTO’s 149th member on December 11, allowing it to fully participate in the December 13-18 Hong Kong ministerial meeting.

The WTO notes that as part of its accession negotiations, Saudi Arabia agreed to:

• review a fee charged for the authentication of trade documents and bring it into conformity with WTO rules within two years of accession;

• eliminate any non-tariff measures that cannot be justified under WTO rules while maintaining the right to restrict the importation and exportation of a certain number of goods and services in order to protect public morals, the life and health of the population, national security interests, etc.;

• review the list of banned imports at least once a year and remove items whose importation would not compromise the kingdom’s legitimate objectives;

• implement in full from the date of accession the WTO Agreements on Trade-Related Aspects of Intellectual Property Rights, Technical Barriers to Trade, and the Application of Sanitary and Phytosanitary Measures;

• reduce, by the end of a ten-year implementation period, average bound tariff levels for agricultural and non-agricultural products to 12.4% and 10.5%, respectively;

• allow foreign insurance companies to open and operate direct branches in Saudi Arabia;

• permit the commercial presence of banks in the form of a locally incorporated joint-stock company or a branch of an international bank;

• allow, within three years from accession, up to 70% foreign equity ownership in the telecommunications sector; and

• phase out restrictions on the distribution of goods inside the country over a three-year transition period.

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Statement from USTR Spokeswoman Neena Moorjani on Interim Wine Agreement between the U.S. and European Community
11/23/2005

"The United States and the European Community signed an interim agreement, in the form of an exchange of letters, related to wine trade between the United States and the EC. This exchange of letters is the precursor to the broader Wine Agreement, announced by USTR on September 15, 2005, and ensures that U.S. wine exports to the EU will not be disrupted pending the signing and entry into force of the Wine Agreement. Specifically, under the exchange of letters the EC will continue to recognize U.S. wine-making practice, the United States will accept EC wine-making practices, and EC wine imported into the United States does not have to be accompanied by a certification attesting that the wine is made in accordance with U.S. wine-making practices. EC procedures to consider signing the Wine Agreement are currently under way and a final decision on it is expected by the end of the year."
 

EXPORT NEWS & WEBSITES

Are you thinking of exporting to another country?

If you are new to the exporting world and haven’t shipped before, please be aware of the Known and Unknown Shipper requirements that could affect the transit times of your shipments.

Known and Unknown shipper security procedures are requirements for every airline, integrator and forwarder that moves cargo commercially on a domestic or international basis to and from the USA.  These procedures were put into effect after September 11th, 2001.

Passenger carriers can no longer accept any cargo from unknown shippers.  Since your freight must move on a cargo only plane, you may experience delays.

If you haven’t exported before then you will be considered an Unknown Shipper and your freight will move on a cargo only plane. In order to become a known shipper, M.E. Dey must visit your facility and do an on-site verification. 

If you plan to start exporting please call M.E. Dey in advance of your first shipment and we will set up your on-site verification.

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Wisconsin Exports and Exporters

Exporters are not required to report information on their international activities to the Wisconsin Department of Commerce.  Data on the state's exports by product category and by destination originates with the U.S. Census Bureau.

Click here for Wisconsin's top 10 export markets and the top 10 products shipped abroad.

http://commerce.state.wi.us/IE/IE-ExportData.html


HLB INTERNATIONAL'S "DOING BUSINESS IN" SERIES

http://www.hlbi.com/DBI_list.asp

The really big accounting firms have clients in many countries, and since much of what they do involves consulting, they have to know each country's economy inside and out. There are several accounting firms that have put country reports on their Web sites, and one that seems very thorough is HLB International's "Doing Business In" series. There are reports here on every country from Argentina to Vietnam, and they're very detailed indeed. You'll find an overview of the country, with information about its geography, population, political institutions, language and currency. Digging deeper, you'll find information about foreign investment (including relevant treaties and laws), labor matters, setting up a company, and taxation issues.

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Foreign Regulatory Changes That Could Affect US Exports
21 Nov 2005, ST&R

According to the Department of Commerce’s (DOC) National Institute of Standards and Technology (NIST), the WTO has been notified by the following countries of proposed regulatory changes that may affect US exports of the products indicated.

• Argentina – bicycles

• Armenia – types of rolls designed for concrete strengthening, including hardened steel, carbon steel, round compartment, with diameter less than 14mm, non-smoothed and non-imposed wire made from carbon steel, up to 0.25% and 0.6% or more carbon mass included, and others

• Switzerland – medicines

• Switzerland – complementary and herbal medicinal products

• Tunisia – concrete
 

DECEMBER WORLD HOLIDAYS & SEMINARS

5 - H.M. The King's Birthday (Thailand)

6 - St. Nicholas Day (International)

8 - Bodhi Day - Buddha's Enlightenment (Buddhist)

10 - Constitution Day (Thailand)

12 - Virgin of Guadalupe (Mexico)

21 - Winter Solstice (International)

25 - Christmas (Christian, Roman Catholic, International)

26 - Boxing Day (Canada, United Kingdom)

26 - Hanukkah (Jewish - Dec. 26, 2005 - Jan. 2, 2006)

26 - Kwanzaa (African-American - Dec. 26, 2005 - Jan 1, 2006)

31 - New Year's Eve (United States, International)

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UPCOMING SEMINARS

International Credit Executives - ICE

November 16, 2005 "An All-Day Look at Doing Business in India" & Silent Auction" 

Various Speakers

Click here for information and to register!
http://www.icewi.org/event.shtml

Who is attending this meeting? Click here to find out!
http://www.icewi.org/attendees.shtml


Milwaukee Athletic Club

Thursday, December 1, 2005 -  Past Presidents’ Night

758 North Broadway Milwaukee, WI

Registration Form http://www.mwta.com/Events/Forms/RegForm.htm

More Information http://mwta.com/Newsletters/December05.pdf

Click for Map

3:00 – 5:30 p.m.

Program I - The Joys and Challenges of International Business Careers

International Sales – Amy Germershausen, Account Manager, International Malting Company – US/Canada

International Logistics – Carrie Fix, Manager of Global Business Development,
M.E. Dey & Company, Inc.

International Banking – Bruce Glaub, Vice President for Global Trade Services, U.S. Bank

International Law – Masud Khan, Reinhart Boerner Van Deuren S.C

International Consulting – John Shank, Access International Markets, Ltd.

International Marketing – John Patneaude, International Marketing Rep, DCI Marketing

Expatriate Experiences - Peace Corps –
Al Liu, Director of Culture and Communications, Alterra Coffee Roasters

WISCONSIN ROOM – 8TH FLOOR   5:00–6:00 p.m   Collaboration and Networking

SUPERIOR ROOM – 2ND FLOOR   5:00–8:00 p.m.

2006 – Biting, Barking, or Whimpering   Chris Kuehl – Armada Corporate

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