September 2005             

Final Newsletter Notice    Effective 9/16/05
SHIPMENTS NOT COMPLYING WITH WOOD PACKING RULE MUST BE RE-EXPORTED

For more information contact us at M. E. Dey or visit http://cbp.customs.gov/xp/cgov/home.xml


Alcoholic Beverages: Imported Natural Wine

The Alcohol and Tobacco Tax and Trade Bureau (TTB) has issued a temporary rule, effective August 24, 2005, which implements new certification requirements regarding production practices and procedures for imported natural wine. This rule includes a new requirement which requires importers to submit copies of certifications to TTB for use in enforcing the relevant labeling provisions.

Importers of natural wine must have a certification from the producing country. The rule requires, except as otherwise provided, an importer of natural wine to have an original or copy of a certification from the producing country stating that the practices and procedures used to produce the imported wine constitute proper cellar treatment. The certification must be from a governmental or government-approved entity AND it must include the results of a laboratory analysis of the wine. In addition, it must be in the possession of the importer at the time of release of the wine from customs custody but it is not required to be presented as part of the customs entry process. The certification may cover multiple importations provided that the wine in each case is of the same brand and class or type, was made by the same producer, was subjected to the same cellar treatment, and conforms to the statements made on the certification.

Exemptions: natural wine produced before January 1, 2005; natural wine imports that are of a personal, non-commercial nature; commercial samples.

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NS Expands the “1 or 3” Free Time Storage Program

Norfolk Southern will expand the “1 or 3” free time storage program to twelve additional terminals on Monday, September 19th.  The new terminals, in addition to Beth Intermodal which is already utilizing this program, are:

Albany, NY - Atlanta, GA - Austell, GA - Ayer, MA - Baltimore, MD - Charlotte, NC - Croxton, NJ  - Erail, NJ  - Harrisburg, PA  - Jacksonville, FL - Morrisville, PA  Rutherford, PA

This storage program ties terminal free time to Norfolk Southern’s service performance and offers the following free time on all domestic shipments:

  • If the load is grounded within three hours of our published scheduled availability, free time will be the day of notification plus the following one day

  • If the load is grounded later than three hours after our published scheduled availability, free time will be day of notification plus the following three days

Charges:  Once the free time expires on units at these terminals, standard storage charges will apply.  Note this program only applies to NS rail storage and will not impact standard per diem or REZ-1 charges.

World Wide Web: www.nscorp.com/intermodal

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23 Aug 2005, ST&R
Container Volumes Up at West Coast Ports

Bloomberg News reported recently that a number of West Coast ports have seen a significant rise this year in the number of cargo containers from Asia as shippers seek to avoid a possible repeat of congestion problems at Los Angeles/Long Beach. Labor disputes and shortages and infrastructure limitations have caused backups at the largest US port complex at crucial times in the past few years, causing carriers to divert some ships to other ports that have deepened channels, added capacity, and installed larger cranes. Some of those moves could be long-term, the article said; in the first six months of 2005, “the number of full, incoming containers at Los Angeles and Long Beach rose 3.2 percent to 3.39 million standard-size containers,” while those numbers were 30% and 391,715 for Oakland and 25% and 342,995 for Tacoma. As a result, LA/Long Beach’s share of all containerized imports from Asia dropped from 60% in 2001 to 57% in 2004.

Nevertheless, the Southern California port is likely to remain “the preferred gateway for Asian imports,” the article said. One shipping executive was quoted as saying that no other port can match its “combination of size, capacity, intermodal connections, local consumer market, labor pool and warehousing.” There are also a number of measures being taken to help it stay competitive, such as keeping terminal gates open on nights and weekends and building a second railroad track from Los Angeles to El Paso.

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Updated on 8/26/2005 - 8:15:00 AM EST
Oakland Port Reportedly to Set Night Hours

The Port of Oakland plans to open one of its terminals at night to cope with peak-hour traffic congestion, the Sacramento Bee newspaper reported Thursday, 8/25/05.

The proposal drew support from about six truckers and an air district official, the Bee reported.

Peter Schneider, vice president and general manager of TGS Transportation in Fresno, Calif., told the paper he supported the plan.

The port is the nation's fourth largest and ships more than $ 1 billion of agricultural products through it each year, including about 75% of California’s produce, the Bee said.

Oakland’s move follows the ports of Long Beach and Los Angeles in Southern California, which opened for night hours in late July, which officials there said have been working well.

In May, truckers who work the Oakland port protested a lack of parking at the facility.

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Port Congestion - Los Angeles and Long Beach

TACA wishes to advise that the suspension of the Congestion Surcharge at the above ports has been extended for a further period, through September 30th, 2005. 

Meantime, monitoring of congestion related issues at these ports will continue. Prior to October 1st, 2005, and depending upon prevailing circumstances, an announcement will be made confirming either a further period of suspension, or the re-application of the Congestion Surcharge (which remains published in relevant TACA Tariffs at $200 per 20ft container and $400 per 40/45ft container, against an  effective date of October 1st, 2005).

This cycle of monitoring and announcements/tariff adjustments will continue on a monthly basis, until further notice.

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China - U.S. textile talks fail - official
(Reuters) Updated: 2005-08-31 20:26

Talks between China and the United States over China's surging textile exports ended on Wednesday with the two sides still far apart, a U.S. industry official said, Reuters reported.


A Chinese vendor waits for customers at a clothing market in Beijing August 31, 2005. China has hardened its line in talks with the United States over its surging textile exports, dimming hopes of a deal by the time presidents Hu Jintao and George W. Bush meet in Washington in a week's time. [Reuters]


Negotiators had hoped to strike a deal so it could be blessed by presidents Hu Jintao and George W. Bush when they meet at the White House next Wednesday.

But Cass Johnson, president of the U.S. National Council of Textile Organizations, told Reuters that negotiators had not even narrowed their differences during two days of talks.

He said the American team would fly home on Thursday, while U.S. textile makers would respond to the failure of the talks by seeking to expand restrictions on Chinese garment exports.

"People thought there was a good chance of an agreement coming out of these meetings, but it's clear the Chinese government was not interested in moving off its position -- and neither was the U.S. government," said Johnson, one of a number of U.S. industry lobbyists who have been tracking the talks in Beijing.

U.S. and Chinese officials have now met four times since Washington imposed emergency curbs, known as safeguards, in May to restrain a burst of Chinese exports unleashed by the abolition of global textile quotas on January 1.

The Bush administration was already scheduled to decide on Wednesday on industry requests for emergency restrictions on six more categories of Chinese clothing and textiles, including bras, sweaters, dressing gowns and knit fabric.

Johnson said U.S. textile manufacturers had held off requesting protection in even more categories in the expectation that this week's talks would yield progress.

"So now we will begin filing new safeguard petitions next week on additional categories," Johnson said. He declined to say which lines of goods would be affected.

Chinese spokesmen were not immediately available for comment.

FRAYING AGREEMENT

China's textile exports to the United States surged 97 percent to $7.4 billion in the first six months, setting alarm bells ringing in textile-producing states and heightening wider fears about China's growing economic clout. The United States had a $162 billion trade deficit with China last year.

Negotiators had been eyeing a deal similar to one signed with the European Union on June 10 that capped growth in 10 lines of textile exports at 8 to 12.5 percent a year.

China went along because the EU would have been permitted under World Trade Organization rules to limit growth in China's textile exports to 7.5 percent a year until the end of 2008.

That deal has since run into trouble as the new quotas were quickly filled, leaving a pile-up of more than 80 million made-in-China bras, blouses and sweaters at EU customs posts.

Industry officials said earlier that the obstacles in the way of a Sino-American agreement included the length of any pact, the categories it would cover, how much Chinese exports would be allowed to grow each year and the right of the United States to impose new safeguard restrictions in the future.

Johnson said no date had apparently been set for new talks.

"What's striking is that they did not narrow their differences," he said. "It's hard to see what it's going to take for the two sides to agree."


Textile Group Calls for Permanent China Safeguard, Other Measures
18 Aug 2005, ST&R

The National Council of Textile Organizations (NCTO) recently issued a press release setting forth what it called “a five step process to achieving a long term solution to China’s distorting trade practices in the textile and apparel sector.” The announcement came just prior to two days of talks on a textile and apparel trade agreement between the US and China, which were due to wrap up on August 17.

The NCTO, which supported the US-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA), called a comprehensive agreement with China “an important first step.” The group emphasized that such a deal should extend through 2008 and cover “not only products where safeguard decisions have occurred or are pending, but also other categories where China is having a disruptive impact on the U.S. market.” In addition, it wants domestic manufacturers to be able to file safeguard petitions on products that are not covered.

The NCTO also called for a permanent textile safeguard to be maintained against China and other non-market economy (NME) countries until they “live up to the full scope of their WTO obligations.” The press release noted that this mechanism is necessary because US producers are unable to use antidumping (AD) or countervailing (CV) procedures against textile and apparel imports from China. Inside US Trade explained that AD cases are unavailable because there is insufficient domestic production of competing articles to meet statutory requirements. CV cases are barred by Department of Commerce (DOC) rules that affect imports from any NME country, although legislation now pending in Congress would reverse that.

Other steps urged by the NCTO include:

• attacking unfair Chinese trade practices, such as currency manipulation and industrial subsidization, through WTO cases and US trade law;

• preventing Chinese textile and apparel exports from gaining further access to the US market through “loopholes in future trade agreements” such as tariff preference levels (TPLs); and

• refusing to lower import duties on textile and apparel products as part of the Doha Round “until other countries reduce their tariff[s] to US levels.” 

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Wisconsin Lab Works on Post-Bar Code Tech
By RYAN J. FOLEY, Associated Press Writer Sun Aug 28

MADISON, Wis. - Alfonso Gutierrez smiles as boxes of Kraft Macaroni and Cheese tagged with tiny chips zip around a conveyor belt and pass under a reader that instantly displays information about the product.

"It's going fast," said Gutierrez, who heads a new university research lab dedicated to helping businesses deploy the technology that could one day replace the bar code.

Gutierrez was referring to the speed of the conveyor belt — 600 feet per minute, the speed Wal-Mart uses in its warehouses — but he could have been talking about the rapid acceptance of radio frequency identification, a technology that can revolutionize business, but also erode privacy.

RFID uses a computer chip the size of a grain of rice to store data, which are transmitted wirelessly by a tiny antenna to a receiver. The chips, embedded in tags, now track pallets in warehouses and let drivers pass toll booths without stopping, but its potential is almost limitless.

To accelerate deployment, the University of Wisconsin-Madison formally opened a lab this month to study how to make RFID work better, leaving others to debate the broader issues such as implementation and privacy.

"RFID technology and applications are revolutionizing supply-chain management and are enabling companies to obtain an enormous amount of data in a short period of time," said Paul Peercy, dean of UW's College of Engineering. "It's only in its infancy state, but it's going to affect nearly all industries."

More than 40 companies, including 3M Co., Kraft Foods Inc. and S.C. Johnson & Son Inc., are contributing $500,000 combined to start the lab, and the university is kicking in another $62,000. Other companies can pay for individual research projects, giving them access to top-notch scientists without having to fund their own lab.

In 2003, Wal-Mart Stores Inc. and the Department of Defense ordered their top suppliers to start using RFID technology by this year. The goal was to track products without human interaction, resulting in fewer misplaced shipments and the ability to restock store shelves as soon as a product runs out.

Wal-Mart spokeswoman Christi Gallagher said the retailer is on track to have the technology at 13 distribution centers and up to 600 stores by October, but she said many suppliers have had difficulties finding tags that fit their products or figuring out how to place them in such a way that they can be read without outside interference.

About a dozen of Wal-Mart suppliers are among the chief funders of the Wisconsin lab, which will be dedicated to finding solutions for such challenges, including interference from metal products in warehouses and metal doors on loading docks.

The conveyor belt that Gutierrez oversaw allows companies to test different tags and determine which work best and where they should be placed.

The lab comprises of a few rooms spread out on three floors of an engineering building on campus. It has an echo-free chamber that allows researchers to test the strength of signals from different antennas. Two floors below, a portal-dock station simulates goods passing beneath a reader in a warehouse or at a loading dock.

Researchers are looking at ways to embed the chips in the packaging rather than simply adding them as labels to the outside, allowing companies to lower costs and position tags correctly.

The lab also is testing whether permits that hang on the rearview mirrors of cars can carry tags reliable enough to lift parking lot gates and whether tags on wristbands can track patients in hospitals.

Patrick Sweeney, chief executive of ODIN technologies and author of "RFID for Dummies," said the lab will serve as a trusted source for information at a time the technology is beset by technical problems and fears of privacy abuses.

The technology, around since World War II, got a boost through research at the Massachusetts Institute of Technology. The four-year effort, sponsored by Wal-Mart, Gillette Co. and other major corporations, ended in 2003.

Other universities, including the University of Florida and the University of Arkansas, also have RFID labs as do dozens of other corporations.

What makes UW-Madison's lab unique is its collaboration with industry and its focus on the physics and engineering behind the technology, said Sweeney, who has visited other RFID labs elsewhere.

Critics worry, however, that UW-Madison is contributing to technology that could ultimately track humans.

One such fear involves the use of tags in clothing and shoes. If the chips aren't deactivated at the time of sale, unsuspecting consumers might essentially be carrying around information about their buying habits, allowing stores to target them with intrusive marketing pitches the next time they visit.

"When I see the move of RFID into universities, it concerns me," said Katherine Albrecht, a privacy advocate who specializes in RFID technology and shoppers. "It is sending a message that not only do we have to worry about privacy, but you can profit from it by a career perspective."

UW researchers acknowledge the potential for abuse, but insist their work is more about enabling mechanisms to ultimately make humans safer.

RFID could be programmed to detect bacteria and recall tainted food, prevent errors in blood transfusions and ensure that drugs are not counterfeit, they say.

Already, the tags help parents track children at amusement parks and help hospital personnel prevent unauthorized people from kidnapping newborns, said Raj Veeramani, director of a UW consortium of businesses involved in the lab.

And former Wisconsin Gov. Tommy Thompson, recently named to the board of a company that makes chips to implant into humans, says he may put one into his arm so that doctors can know his medical history. Federal regulators approved that use of the technology earlier this year, though few hospitals are equipped to read the chips.

"It's wrong to blame the technology. It's the people that develop applications for it," Veeramani said. "We are still trying to figure out what role RFID will play in the larger scheme of things."

On the Net: http://www.uwrfidlab.org

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CBP Announces New Procedures for Sealing Inspected Containers
10 Aug 2005, ST&R

CBP has announced that, effective August 9, only high-security bolt seals compliant with International Organization for Standardization Publicly Available Specification 17712 (ISO/PAS 17712) will be used by CBP officers to seal containerized cargo after they have inspected it. If a carrier then chooses to fasten an additional seal, the high-security bolt seal installed by CBP must not be removed, replaced, or manipulated in any way.

According to CBP, “containerized cargo” covers merchandise shipped in an enclosed container or trailer that is capable of having a seal affixed, notwithstanding the conveyance in or on which it is transported. The new policy is applicable to containerized cargo arriving, departing, or transiting the US via sea or land (including trailers, containers, and rail cars). It does not apply to empty containers or empty/full containers that are solely screened by non-intrusive inspection imaging technology.

CBP states that its officers will notify the appropriate parties of the number of the container that has been examined and the serial number of the newly installed high-security bolt seal before the container is released. This generally involves notifying the broker and/or annotating the transportation documents.

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Railroad Boasts "Love" for Truckers
BNSF Celebrates National Truck Driver Appreciation Week
FORT WORTH, Texas, August 22, 2005:

BNSF Railway Company (BNSF) honored the nation’s truck drivers by hosting events at BNSF Intermodal Facilities in Chicago, Ill.; Oakland, Calif.; San Bernardino, Calif.; Los Angeles, Calif.; and Seattle, Wash. These events celebrated National Truck Driver Appreciation Week, August 22-28.

More than 6,000 truck drivers are expected to enter these BNSF intermodal facilities during the events, see "BNSF Really Digs Your Rig" signage and enjoy lunch and refreshments passed out by BNSF’s truckload sales team and executives from BNSF’s trucking company partners, such as Gordon Trucking, Schneider National Inc., Swift Transportation Co., Inc. and U.S. Xpress Enterprises Inc.

In addition to the events in California, Seattle and Chicago, eight other BNSF intermodal facilities across the railway’s 32,000-mile network posted banners expressing BNSF’s appreciation of the nation’s truck drivers.

"These events are our way of saying thanks to our trucking company partners and their drivers who, along with railroad employees, are the backbone of ensuring the products American consumers use daily are delivered safely and efficiently," says John Hickerson, BNSF vice president, Domestic Intermodal. "By working together, trucks and trains are providing transportation solutions for companies across the nation."

Hickerson continues, "Intermodal continues to be a growth area for BNSF and BNSF’s truckload volume grew nearly 12 percent in the first half of 2005."

"Rail providers like BNSF are a vital link in today’s transportation and logistics industry. Increasing freight volume based on the strong U.S. import economy, and the driver shortage, continue to tax the industry’s resources. Relationships like the one we have with BNSF bring new capacity solutions to the marketplace through efficient and cost effective services with high reliability levels," says Bill Matheson, Schneider National Inc. vice president and general manager, Intermodal.

"BNSF’s participation in Truck Driver Appreciation Week is a perfect example of the integration between truckers and the railroads in this day and age. We have become connected at the hip, from a strategic perspective," says Patrick Quinn, incoming Chair, American Trucking Associations, and President, U.S. Xpress Enterprises Inc. "The ability for truckers and BNSF to meet customer requirements rests solely on our ability to maintain a cost-effective and efficient supply chain and our people are the key. BNSF appreciates our drivers and we appreciate the partnership that has developed between our industries."

A subsidiary of Burlington Northern Santa Fe Corporation (NYSE:BNI), BNSF Railway operates one of the largest railroad networks in North America, with about 32,000 route miles in 28 states and two Canadian provinces. The railway is among the world's top transporters of intermodal traffic, moves more grain than any other American railroad, transports the components of many of the products we depend on daily, and hauls enough low-sulphur coal to generate about ten percent of the electricity produced in the United States. BNSF Railway is an industry leader in Web-enabling a variety of customer transactions at www.bnsf.com.

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United Nations Resolutions

The International Day of Peace, established by a United Nations resolution in 1981 to coincide with the opening of the General Assembly, was first inaugurated on the third Tuesday of September, 1982. Beginning on the 20th anniversary in 2002, the UN General Assembly set 21 September as the now permanent date for the International Day of Peace.

http://www.internationaldayofpeace.org/

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CBP OKs Electronic NAFTA Certificates
23 Aug 2005, American Shipper

The U.S. Customs and Border Patrol is now accepting electronically submitted NAFTA Certificates of Origin.

CBP issued a directive (3810-014A) that clarifies customs brokerage industry questions about the different methods for treating electronically generated Certificates of Origin in different ports of entry, a client alert from Pisani & Roll, a law firm specializing in international trade and customs law, explained.

The alert said the new CBP directive said that in order to use computer-generated Certificates of Origin, an importer must seek CBP headquarters approval in writing prior to using the certificates; and the computer-generated certificate must contain 10 elements specified in the directive, which is available on the CBP web site [http://www.cbp.gov/linkhandler/cgov/toolbox/legal/directives/3810-014a.ctt/3810_014a.doc].

In addition, an importer… must have written authorization from the exporting party; and the importer must have had the electronic certificate in its possession at the time the claim for preferential duty treatment under NAFTA was made.

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Customs Tests FTZ e-reportng
22 Aug 2005, JOC Online

Customs and Border Protection on Oct. 1 will begin testing a system enabling companies in free trade zones to report import cargo via the Automated Broker Interface of the Automated Commercial System.

The trial is scheduled to last six months.

"It's a sensational deal for us," said Will Berry, executive director of the National Association of Foreign Trade Zones. "Foreign trade zones have been deprived of the technology everybody else works in."

Under the current system, cargo that's admitted to an FTZ is reported to Customs on paper forms.

The new reporting system is using Customs' old computer system. Automating foreign trade zones is part of the plan for the new Automated Commercial Environment, but it will be the very last piece of ACE to be completed, around 2010 or 2011.

Berry said that 7 percent of U.S. trade comes into one of the 250 U.S. foreign trade zones, or 538 sub-zones. Customs recognized that cargo that remained in an FTZ posed a security risk, since it was not part of the electronic supply-chain record until formal entry.

Using ACS is a way to keep track of imports in FTZs, Berry said. It is an interim step, and eventually the system will be transferred to ACE.

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You can now check the status of your regular (tourist) U.S. passport application online, using your last name, date of birth, and the last 4 digits of your Social Security Number.

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