July 2005             

M.E.Dey Customers Profit with Remote Location Filing

Enhancing our ability to provide ‘one-stop’ international service to our customers, remote location filing (RLF) extends our reach to every port in the nation.  We are able to directly file for Customs release for your cargo arriving at any ocean or air port in the United States.

You can take advantage of this technology and our own shipment tracing to move your data through a single portal at M.E. Dey to transact Customs business across the nation.  The idea of RLF was incorporated into the 1993 Customs Modernization Act.  Customs, through years of refinement, unleashed an efficient program that magnifies effectiveness and process control.  It is no longer necessary to actually be in the cargo's port of arrival to handle its Customs clearance. If you have the data, our offices in Milwaukee and Chicago can arrange for clearance – usually same day clearance for cargo arriving – at any port in the United States.  Customs has unfortunately designed some limitations into the RLF product – such as disallowing RLF treatment for articles subject to special duty or quota.  But RLF is a dynamic product and will continue to evolve along with the trade community.

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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, U.S. Customs and Border Protection (CBP) 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.

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CBP FAST Information Update

U.S. Customs & Border Protections has added the following information to their website:

FAST Reference Guide: Enhancing the Security and Safety of Trans-border Shipments
Outlines the FAST program, which promotes free and secure trade through risk-management principles, supply chain security, industry partnership, and advanced technology.
http://www.customs.ustreas.gov/linkhandler/cgov/import/commercial_
enforcement/ctpat/fast/fast_ref_guide.ctt/fast_ref_guide.pdf

Free and Secure Trade Video
A comprehensive narration of FAST procedures for carriers, drivers, importers, Mexican manufacturers, locations of enrollment centers, and requirements for use of dedicated lanes. (Download time: 8 minutes)
http://www.customs.ustreas.gov/xp/cgov/import/commercial_enforcement/ctpat/fast/

FAST Information Sheet
Provides importers, carriers and commercial drivers the criteria and eligibility requirements to utilize FAST lane processing.
http://www.customs.ustreas.gov/linkhandler/cgov/import/commercial_enforcement/ctpat/fast/us_
canada/us_canada_information.ctt/us_canada_information.docation
 

Contact us for more information to get into the FAST lanes and avoid border delays please contact us at: info@customshelp.com

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U.S Customs & Border Protection
http://www.cbp.gov/

"Eagle" Mobile Sea Container X-Ray System

The “Eagle” Mobile Sea Container X-ray System is a self-propelled non-intrusive inspection (NII) technology system designed for examining sea containers and other cargo conveyances.

A prototype Eagle was purchased and deployed to Miami in February 2001. Substantial system modifications were incorporated into two production models purchased by U.S. Customs and Border Protection (CBP) and deployed to the ports of Savannah in October 2004 and Baltimore in December 2004.

The Eagle is our largest and most powerful inspection system. It weighs 180,000 pounds and can penetrate more than a foot of steel.

Although mobile in principle, due to size, it cannot move from one terminal or port to another and must be dedicated to a specific location. It requires a large footprint that includes a radiation safety zone and a concrete pad to support its weight.

The Eagle is another tool in the CBP inventory of large-scale NII technology systems designed to examine the steady flow of commercial traffic while facilitating legitimate trade and cargo.

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Bureau of Industry and Security Publishes

"Don't Let This Happen to You!,"
http://www.bxa.doc.gov/ComplianceAndEnforcement/Dont_Let_This_Happen_To_You_2005.pdf

An Introduction to U.S. Export Control Law, with Real Life Investigations of Export Control and Anti-boycott Violations.

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Transportation

 

Fuel Surcharge Adjustment Effective on 12 July 2005

Please be informed that fuel surcharge will be levied as follows

Area 1 North & South America                    USD0.47/kg
Area 2 Europe, Middle East, Africa             USD0.47/kg
Area 3 Asia( except S. W. Pacific )             USD0.24/kg
        South and South West Pacific            USD0.47/kg

The above-mentioned new surcharge will take effect from 12 July 2005 (Tuesday).

Truck Capacity Crunch Looming  JOC Online

PASADENA, Calif. -- Shippers over the past five years enjoyed a trucking market in which rates barely budged. Now they are paying for the good times with a spike in rates, and possibly more devastating, a shortage of capacity.

"Capacity is the number one challenge," said Bill Burgess, vice president of transportation, logistics and supply at the Schwan Food Co.

Burgess said four trucking companies that had for years carried for Schwan recently went out of business. Another trucker shared its audited financial statement that showed the carrier was barely breaking even.

"Our concern is that we will lose additional capacity," Burgess told the Logicon 2005 Supply Chain Management Conference.

Logistics executives are caught in the middle between the trucking companies that are an integral part of their supply chains and financial officers at their own companies who resist large rate increases.

Burgess said trucking rates this year are up only 1 percent compared to1999, but it has been a roller-coaster ride. Rates actually declined for several years, but this year they jumped 7 to 8 percent.

In past years, over-capacity drove down freight rates while the trucking industry's costs went up due to rapidly increasing insurance rates and escalating diesel fuel prices.

The latest problem to plague the industry is a shortage of drivers caused by federal hours of service restrictions, inadequate pay and an aging driver pool.

About 21 percent of truck drivers nationwide are 55 or older. Since drivers' pay has not kept up with other blue collar jobs, it looks like they will not be replaced when they retire. "How many of you are raising your kids to be truck drivers?" said Mike Raehl, director of transportation services at Unilever Bestfoods.

Yet the demand for truck capacity continues to increase because the average truck haul is increasing. Raehl noted that when a factory closes in the U.S. and production is moved to Asia, a short haul from the factory to regional customers is replaced by a longer haul from an import distribution center.

Since shippers are competing for a declining pool of trucking companies, those that are willing to pay higher rates and run trucker-friendly operations will secure capacity.

Shippers must provide truck carriers with accurate volume forecasts. They will have to cut down the time it takes for a live load in order to reduce driver down time. Some shippers are turning to dedicated carriers.

Unaffiliated shippers -- even those that compete with each other -- are looking for opportunities to match a shipper's haul in one direction with a second shipper's haul in the opposite direction in order to eliminate dead miles for the trucker.

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Long Beach cuts 'free time' by one day to avoid congestion

THE Long Beach Board of Harbor Commissioners has voted to decrease by one day the time that container cargo can be temporarily stored on the docks free of charge in a bid to avoid backups of freight at the port's shipping terminals.

A statement issued by the port said that with trade growth threatening to congest shipping terminals, the commission took steps to encourage more expeditious movement of cargo.

The commission voted to reduce by one day the temporary storage period or "free time," from five business days to four for inbound cargo. For outbound cargo, the free time was cut from seven to six business days.

Under the new method approved by the commission, the free time for inbound containers will begin the day after a container is unloaded. Free time calculations will not begin for cargo subject to US Customs and Border Protection security-related inspections until the cargo is released for pickup.

The tariff amendments will start from July 1, the statement said.

"The changes in free time will help to keep cargo moving smoothly by giving shipping terminals tools to avoid the kinds of backups we saw last year," said Port executive director, Richard Steinke. "Less congestion will improve turn times for truck drivers and improve air quality."

Meanwhile, at the Port of Long Beach's recent conference devoted to the upcoming peak season entitled "Pulse of the Ports," transportation industry experts expressed optimism that there won't be major delays during the upcoming peak cargo season, but expressed concern about a possible shortage of truck drivers.

The conference focused on concerns that there might be another logjam like last year, when cargo and vessels were delayed a week or more because of labor shortages at rail yards, port shipping terminals and trucking companies.

The industry experts included Limited Brand's John Joseph, CMA CGM's Frank Baragona, Marine Terminals' Doug Tilden, and California Multimodal Inc.'s (CMI), Bob Curry Jr.

Last year, Long Beach trade surged 12 per cent after initial forecasts said trade growth would be less than five per cent.

The port recently announced that container throughput in May surged 20.4 per cent to 394,065 TEU, compared to May 2004. Since October 1, 2004, when the port's fiscal year began, and up to the end of May, a total of 2.89 million boxes were moved at the port, a year-on-year increase of 21.7 per cent.

At the Pulse of the Ports conference, the experts forecasted 2005 cargo gains of 10 to 15 per cent. In preparation for this year's increase, they said they have added workers and equipment, and cargo has been moving smoothly.

"All of the signs during the first six months have been extremely favorable," said Limited's  Mr. Joseph. "So I think there is reason to be optimistic."

"We may see two-to-three-day delays," during the peak season, said Mr Baragona of CMA CGM.

"We had one-week delays last year and that's not going to happen this year," said Mr Tilden of Marine Terminals.

The biggest note of caution came from Bob Curry of CMI, who warned that there are not enough truck drivers because of low rates.

"If they can't get more turns [cargo shipments], and make more money, we're not going to get more drivers," Mr Curry said.

Organizations at the conference included the Port of Los Angeles, NIT League, Waterfront Coalition, CITT, FTA, HAIC, HTC, IBA, LABFA, CALMITSAC and PMSA.

(Source: Asian Shipper -- June 23/05)

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TRANS-ATLANTIC CONFERENCE AGREEMENT

St. Andrews House, 26 Brighton Road, Crawley, West Sussex, RH10 6AA

Telephone: +44 (0) 1293 519131    Fax: +44 (0) 1293 540019     E-mail: secretariat@taafc.co.uk

 

TACA Trade Announcement

The TACA Parties wish to advise the trade of a further phase of TACA’s 2005 Tariff Westbound business plan, to take effect from July 1st 2005, in the amount of:

$240 per 20ft container      $300 per 40/45ft container.

These TACA 2005 Business Plan measures are necessary to address rising operating costs, which show no signs of abating, relating to high charter rates, container acquisition, repair and maintenance, stores, spares and supplies, insurance, manning and administration. Such rising costs cannot be absorbed and have to be passed on in order to sustain current and future investment in the provision of regular liner services meeting the needs of the trade.

With regard to the current and projected state of the Westbound trans Atlantic market, the prognosis of continued Westbound growth remains unchanged, and is reinforced by a first quarter 2005 volume performance up by just over 10 per cent compared to the same period 2004.  

Supply-side projections suggest that after certain capacity reductions, as previously publicised in the media, take effect during the first half of 2005, capacity will continue to be relative stable.

Capacity utilisation is expected to continue at high levels throughout the remainder of the year, with significant space constraints being experienced at times of heavy demand.

Further TACA tariff increases for implementation later in the year can be expected and announcements in that regard will be made in due course.

The Parties to TACA are:

Atlantic Container Line AB       Nippon Yusen Kaisha       Hapag Lloyd Container Linie GmbH
Orient Overseas Container Line Ltd
        Mediterranean Shipping Co. SA           P&O Nedlloyd Ltd.
A P Moller-Maersk Sealand

 

Issued: Crawley, England, April 29th, 2005           Website:  www.tacaconf.com

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World Trade

Chinese Cargo to Rise 50%
13 June 2005, JOC Online

The annual volume of cargo passing through China's ports every year is expected to rise by more than 50 percent in the next five years.

Communications Minister Zhang Chunxian, speaking at a conference in Shanghai, said the total cargo volume would rise to 6.1 billion tons a year by 2010 from 4 billion tons last year, the state-run newspaper Shanghai Daily reported.

Zhang said the number of shipping containers passing through the country's ports will rise to 140 million TEUs by 2010, up from 61.5 million last year.

The amount of cargo handled by China's ports jumped 21.3 percent last year, the report said.

Shanghai, mainland China's biggest port, overtook Rotterdam in the Netherlands last year as the top overall cargo handling port, processing 380 million tons of goods, according to Chinese statistics.

China's economy is growing at a rate of more than 9 percent a year, straining international shipping capacity. Already the biggest cargo handling nation, China aims to become the leading global shipbuilder by 2015.

Last year, Shanghai was third overall in handling shipping containers, with 11 million TEUs, behind Hong Kong, with more than 20 million TEUs, and Singapore, with about 19 million TEUs.

The growth has also set off a frenzy of new port construction in China, with the country's largest new project, Yangshan, taking shape on an island about 17 miles from Shanghai.

The terminal, being built with an investment of $12 billion, will eventually be connected to the city by a tunnel and bridge link and have annual capacity of 20 million TEUs.

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China Announces Textile Export Interim Control Measures

The Ministry of Commerce (MOFCOM) announced the Interim Measures for the Administration of Textile Exports (Trial Implementation) on 19 June 2005, which will take effect on 20 July.

In accordance with the new measures, MOFCOM will compile a Catalogue of Commodities Subject to Textile Export Interim Control. Commodities under the following categories will be included into the catalogue:

(1) Textile products subject to restrictions imposed against China by the countries or regions concerned.

(2) Textile products subject to temporary quantitative control under bilateral agreements.

The quantity allowed to be exported under provisional export quotas will be based on the export value of the relevant products and will be calculated according to the following formula:  
S = T x [a1 x (70% x Q1/M1 + 30% x Q2/M2) + a2 x Q3/M3]

Where:

(1) S is the quantity allowed for application;

(2) T is the total volume of provisional export quotas for the whole country;

(3) Q1 is the trader's export value to the country or region imposing the quota after 1 January 2005, Q2 is the trader's global export value to countries/regions other than the country/region imposing the quota (Q1 not equal to 0) after 1 January 2005, and Q3 is the trader's global export value for the period before 1 January 2005 within the time coverage of statistics (time coverage of statistics is 12 months prior to the implementation of export quota);

(4) M1 is the export value of all traders to the country or region imposing the quota after 1 January 2005, M2 is the global export value of all (Q1 not equal to 0) traders to countries/regions other than the country/region imposing the quota after 1 January 2005, and M3 is the global export value of all traders in the country during the time coverage of statistics before 1 January 2005.

5) a1 is export weight after 1 January 2005 and a2 is export weight before 1 January 2005, with a1 = 0.7 and a2 = 0.3.

For commodities subject to control for over one year, MOFCOM will, starting from the second year, allocate 5% of the total quotas each year to support new traders who have not been granted the amounts they applied for.  One provisional export license is issued for each batch of goods and each customs declaration and is valid for six months within each calendar year, after which it will no longer be valid. The license is non-transferable, not for sale and may not be forged or altered.  MOFCOM determines the categories and quantities of commodities open for application by traders on the principle of distribution and will notify the local departments of commerce in written or electronic format within 30 days of the publication of the catalogue. Such information will also be posted on MOFCOM's website. Traders granted an amount for export may submit their application to the local department of commerce within the scope of the categories and quantities specified by MOFCOM.  For details of the new measures, please visit the website of MOFCOM at:  http://www.mofcom.gov.cn/aarticle/b/c/200506/20050600123519.htm

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US Official Seeks More Trade with India ST&R

A Commerce Department official indicated that one way to lower the massive US trade deficit with China, without resorting to any of the punitive measures floating around Capitol Hill, would be to boost trade with other countries such as India, AFP reports. Acting Deputy Secretary of Commerce David Sampson told the US-India High Technology Cooperation Group that the US “is eager to collaborate with India to increase the level of trade…closer to the volume of trade we currently have with China.” That is not likely to happen anytime soon, the article noted, as US-India trade is currently valued at less than 10% of commerce between the US and China. Sampson said there are a number of issues India must address to improve this figure, including making its rules and regulations more streamlined and transparent and improving intellectual property rights (IPR) protections.

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Switzerland to Seek FTA with US

The Swiss Federal Council announced on June 10 that it has instructed the Federal Department of Economic Affairs to start exploratory talks on bilateral free trade agreement (FTA) with the US. A press release from the council noted that the US is Switzerland’s second-most important export market (after Germany) and the most important destination for Swiss investments, and that US companies are the most important foreign investors in Switzerland.

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Seminars & Workshops

Eyefortransport Events   www.eyefortransport.com


AAEI Events

C-TPAT and OSC: What You Need to Know Now     June 23, 2005    Warrenville, IL
https://www.aaei.org/events/event.asp?event_id=227 

85th Annual Conference & Exhibition     June 11-13, 2006    New York, NY
https://www.aaei.org/events/event.asp?event_id=228


“INCOTERMS 2000”
http://www.icewi.org/
Instruction on the Newly Revised Incoterms…direct from the ICC Revision Committee

WEDNESDAY JULY 27, 2005   Country Springs Hotel Pewaukee WI 

A MUST SESSION FOR EXPORTERS

SPONSORED BY THE INTERNATIONAL CREDIT EXECUTIVES GROUP OF WI

Please call Dianna Rowinski, 262-827-2880 X225 diannar@nacmwi.org


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Please join Governor Jim Doyle as he leads a trade delegation of Wisconsin businesses to
Poland and the Czech Republic
November 8th - 16th 2005.

Both of these Central European countries hold great promise for Wisconsin companies seeking to build their export volume. For the first quarter of 2005, Wisconsin exports are up 142 percent to Poland and up 109 percent to the Czech Republic. The Governor looks forward to helping mission members learn firsthand about these markets and make the contacts that will lead to future business.

Preliminary Schedule:

Tuesday, November 8th

Depart for Prague, Czech Republic

Wednesday, November 9th

Arrive in Prague
Afternoon business briefing by U.S. Embassy
Ambassador's reception in evening

Thursday, November 10th

Business meetings     Group dinner

Friday, November 11th

Business meetings

Saturday, November 12th

Follow-up business meetings and cultural activities

Sunday, November 13th

Travel from Prague to Warsaw, Poland

Monday, November 14th

Morning business briefing by U.S. Embassy
Business meetings    Ambassador's reception in evening

Tuesday, November 15th

Business meetings   Group dinner

Wednesday, November 16th

Return flight to Wisconsin

Department of Commerce staff are currently working to coordinate the mission logistics and budget which will be available soon. If you would like to receive additional mission information when it is available, send your contact information to europemission@commerce.state.wi.us.

If you would like to discuss the export opportunities available in Central Europe or have mission-related questions, please contact one of the staff members listed below.

Market conditions and opportunities:
Brad Schneider, (414) 967-5855, bschneider@commerce.state.wi.us
Dan Vogel (food and agriculture), (608) 224-5113, dan.vogel@datcp.state.wi.us

Travel and logistics questions:
Jennifer Winner, (608) 266-0413, jwinner@commerce.state.wi.us
Christine Stamm, (608) 264-7824, cstamm@commerce.state.wi.us

We hope you will join Governor Doyle on this exciting trade mission to the New Central Europe.

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China Conference Covers the Potential and the Pitfalls
http://mmac.org/display/router.asp?docid=530

With a population of 1.3 billion people, China is the world's largest market. Figuring out how to tap that market for both trade and investment was the focus of the 41st annual Wisconsin International Trade Conference held on May 17 in conjunction with the MMAC.

For the more than 600 people who attended it was an opportunity to hear from experts who provided valuable lessons learned.  Behind the scenes, MMAC's China Council — led by Board members Bob Kraft and Ulice Payne — is spearheading efforts to strengthen Milwaukee's ties to the country.

A morning session provided brief presentations from nine speakers.  John Shiely, chairman, president and CEO of Briggs & Stratton, said his company first entered the China market in 1986 with their cast-iron engine operation.  Shiely's advice included:

  • Have a China strategy (they have one for the U.S.);

  • Invest in innovation and brand development; and

  • Understand China's strengths: high-quality tool shops; low factory overhead; skilled technicians and superior copying skills.

Scott Harrison, who previously oversaw the operations of the CIA in China, left that post to form a consulting firm that specializes in Chinese business.  Harrison offered practical advice and some words of caution:

  • While China is a rapidly-expanding market, 850 million Chinese people still live in poverty.

  • To be successful in China, as in any market, businesses must use common sense and do their homework.

MMAC China Council Co-chair Ulice Payne announced at the conference that they are working on a partnership project between the Milwaukee Bucks and the Beijing Ducks basketball teams.  They are also looking to gain a trade zone status for the Milwaukee region that would make it easier for investors to gain residency rights in this designated zone, said Co-chair Bob Kraft.

To support commerce relationships with China, the MMAC is hosting a trade mission to China from September 14-22.  For more information, contact the MMAC's Peter Beitzel at (414) 287.4140.  Mayor Tom Barrett will follow that mission with a trip in October.

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