August 2006         

H O M E          L A T E   B R E A K I N G   N E W S            P A S T   N E W S L E T T E R S

 

DOES MAERSK CARE?

Customer service from some Steamship lines is simply unsatisfactory. In this day of $100/day detention rules, time is of the essence. Also, some minimum concern for doing a good job is in our opinion, necessary. Maersk line does not make it to our recommended carrier list for these reasons. In a recent instance, one of our staff had this horrific experience:

Her story; Maersk routes all inquiries for active shipments to the Customer Service department. Customer Service advised they did not receive a delivery order. It was not until after sending the delivery order twice and making three phone calls to Maersk, that they explain they would not know if the delivery order was received or not. As it was further explained, with exasperation because after all, I was just another dumb Customs Broker, that the Customer Service Department doesn't really know if they get the delivery order or not, until the Delivery Order department actually inputs the information into the computer. We received a fax notice, two days later, that Maersk did not like the deliver-to address on the delivery order and we needed to either correct it or pay for a diversion. The Customer Service Department advised that they do not have access to Delivery Order Department's information and would not ever be able to help us... and NO they could not connect me or give the phone number for the Delivery Order Department.

In our opinion, a system such as this is not suitable for modern day intermodal processes. Beside M.E.Dey, there are service providers that do care about your cargo.  Call us for our ideas.

Please note that a rate increase of 20%~30% based on current rate
from Taipei to USA, effective from July 31,2006.

Fuel Surcharge will also be adjusted effective from July 31, 2006. 

To North & South America : $0.90 per kg

Security Surcharge $0.09 per (remain)


Two derailments in the Western U.S have closed rail access into and out of
Los Angeles for all Intermodal Providers.

The "ripple" effect upon locomotive and railcar assets in the overall network, especially in Los Angeles,  will be great, and we will incur origin delays until the effects of these accidents subsides.

As a result of the derailment  west of  Yuma, Arizona on 07/26/06 and the derailment west of Salt Lake City, Utah on 07/27/06 the flow of railcar and locomotive assets across the UPRR network have been seriously disrupted.

These events  will have a negative impact on assets required in the Los Angeles Basin, Chicago area, Southeast ,Southwest and Memphis. The ripple affects of these derailments will result in assets / volume already moving  being excessively delayed to destinations and origin volume delayed waiting for the locomotive and railcar assets  to arrive destinations in order  to turn back. Current evaluation indicates that it will be the middle of next week before the situation is corrected.

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 E X P O R T

Changes in Export Control for China

On July 6, 2006, U.S. Department of Commerce’s Bureau of Industry and Security (BIS) published a rule in the Federal Register that proposed amending the Export Administration Regulations (EAR) to clarify the United States' policy for exports and reexports of dual-use items to the People's Republic of China (PRC). BIS proposes to amend the EAR by revising and clarifying United States licensing requirements and licensing to prevent exports that would make a material contribution to the military capability of the PRC, while facilitating U.S. exports to legitimate civil end-users in the PRC

BIS will hold a meeting on July 17, 2006 for those companies, organizations, and individuals that have an interest in understanding the United States' revised policy for exports and reexports of dual-use items to the People's Republic of China (PRC). U.S. Government officials will explain the amendments proposed in the rule and answer questions from the public.

The meeting will be held on July 17, 2006 at 2 p.m. at the U.S. Department of Commerce, Herbert C. Hoover Building, Main Auditorium, 14th Street between Pennsylvania Avenue and Constitution Avenue, NW., Washington, DC. In order for BIS to prepare for those who plan to attend the meeting, please provide your name and company or organizational affiliation to fax number (202) 482-4094, Attn: China Policy Briefing. For further information, please contact Judith Peterson at BIS on (202) 482-0092.


Foreign Regulatory Changes That Could Affect U.S. Exports

18 Jul 2006, Sandler, Travis & Rosenberg’s WTI 

According to the Department of Commerce’s National Institute of Standards and Technology, the WTO has been notified by the following countries of proposed regulatory changes that may affect U.S. exports of the products indicated. More detailed information on the nature of the proposed changes can be accessed on the NIST Web site.

• Argentina – bicycles

• Armenia – wastes produced from packages and wrappings

• Armenia – stoves, ranges, grates, cookers (including those with subsidiary boilers for central heating), gas warmers, central heating boilers with gas fuel

• Colombia – safety-belts and restraint systems for adult occupants of motor vehicles

• European Communities – wine from fresh grapes

• Finland – products used in water and waste water installations

• Kenya – microwave ovens

• Kenya – valve for liquefied petroleum gas cylinders

• Korea – motor vehicles

• Nicaragua – fermented beverages

• Slovenia – bitumen, materials for roads engineering

• Sweden – life saving appliances

• Sweden – CPB 


PierPASS Urges Exporters To Test New Procedures Starting July 31

From August 7, Exporters Must Claim Booking Numbers Before Delivering Containers to
Terminals at Ports of Los Angeles and Long Beach

LONG BEACH, Calif., July 25, 2006 – PierPASS Inc. today announced that an open testing period will begin on Monday, July 31, for the new procedures for handling export containers under the OffPeak program at the Ports of Los Angeles and Long Beach. PierPASS urges all exporters to begin using the modified system during the testing period to ensure they are ready for the change.

Beginning Monday, August 7, 2006, exporters delivering containers during peak hours will be required to claim their booking numbers before the containers arrive at the marine terminals. Under the revised procedure, exporters must claim their booking numbers by visiting the PierPASS website and entering the booking numbers into their accounts. Export containers subject to the Traffic Mitigation Fee (TMF) that arrive at terminals during peak hours (Monday through Friday, 3:00 a.m. to 6:00 p.m.) without having been claimed in this manner will be turned around and encouraged to use the OffPeak hours of operation.

TMF payments must be made electronically through the PierPASS website by registered OffPeak users; no OffPeak payments are accepted at the terminal gates. The cargo owner (the shipper) is responsible for payment of the fee, not the trucking company or other carrier. The website for declaring booking numbers and making TMF payments is http://www.pierpass-tmf.org.

Exporters who are not current on their accounts will not be allowed to deliver additional containers. For exporters using direct pay methods (credit card, debit card or electronic check), all TMFs for Monday-through-Friday periods must be paid prior to the following Tuesday. For exporters using PierPASS Credit Accounts, all TMFs for Monday-through-Friday periods are invoiced the following Tuesday. Payment terms for credit accounts are net 10 days.

More information about the export procedure change is available at http://www.pierpass.org, including a Q&A and a link to a free webinar on the procedure change.

   About PierPASS

PierPASS is a not-for-profit company created by marine terminal operators at the Los Angeles and Long Beach ports to address multi-terminal issues such as congestion, security and air quality. For more information, please go to http://www.pierpass.org.

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 S E C U R I T Y

CBP Extends C-TPAT Portal Deadline to October 1, 2006

Who says the Government doesn't respond to the public? Facing a revolt from the trade community, U.S. Customs and Border Protection (CBP) pushed back the deadline for participant companies in the Customs-Trade Partnership Against Terrorism (C-TPAT) to post security profiles on the new C-TPAT portal. The previous deadlines were August 1 and September 1, depending on the type of participant. CBP has decided to give a slight reprieve. The new deadline for all categories is October 1, 2006.

There is still a lot to do in a very short time. Many companies, even those certified and validated companies, do not meet the latest C-TPAT security criteria. CBP promises to kick you out of C-TPAT if you fail to post your security profile on time or if your security profile does not meet the new security profile. CBP now has the means to easily carry out its threat now that all your C-TPAT information is automated through the C-TPAT Portal. The C-TPAT Portal creates additional requirements for participants.

If you require assistance with C-TPAT, please contact us at M.E.Dey.


Hazmat training is not a choice!

The United States Department of Transportation requires training for anyone who handles hazardous materials including individuals who ship or receive hazardous materials, prepare hazardous materials for transportation, mark and label containers, complete shipping documents, select packaging and load or unload hazardous materials.

Hazardous materials (hazmat) training now applies to any individual who;

  • Loads, unloads, or handles hazardous materials;

  • Marks, labels, or otherwise prepares containers, drums, or packaging for transportation of hazardous materials;

  • Prepares hazardous materials shipping papers for transportation;

  • Is responsible for safety of transporting hazardous materials;

On the other hand, if there was an intent to "willfully" violation the hazmat regulations then that can be a criminal matter. For example, a business owner reads this website and learns that the are required by law to train their hazmat employee but makes a willful decision not to do it (for whatever reason). That is intentionally violating the law and could be subject to criminal penalties.  Usually criminal penalties are pursued by DOT enforcement agents after discovery of a leak, spill or other accident and the violation appears to be "willful". In the list of criminal enforcement actions is one felony case where a man was convicted of shipping a used motorcycle by air without declaring it as hazmat.

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UGS Corporation of Plano, Texas agreed to pay a $57,750 civil penalty to settle allegations that it engaged in illegal exports of computer software or software updates to organizations in India and China and allowed downloads of software in China and India.

Dresser Inc. of Addison, Texas agreed to pay a penalty in the amount of $110,000 for allegedly shipping oil industry items to Libya and Iran in violation of OFAC prohibitions. Dresser Inc. of Addison, Texas also paid $6,000 for an alleged unauthorized shipment to Iraq.

Plains All American Pipeline of Houston Texas agreed to pay a penalty in the amount of $82,500 for alleged unauthorized export of crude oil to Canada.

Salinas International Freight Company of Dallas, Texas agreed to pay a penalty in the amount of $11,600 for allegedly shipping to a denied party.

The Ghashim Group of Houston, Texas has its export privileges suspended for allegedly shipping computers to Syria.

Raviv Aizen, owner of Maryland Core, Inc., a company in Baltimore, MD, that recycles late-model automobile parts, was fined $3,000 by a U.S. District Court judge in Baltimore for shipping automobile airbag modules via ground freight without properly labeling them as hazardous material. The modules contain cylinders of compressed gas capable of discharging with explosive force. Aizen did not label the contents to avoid paying the higher shipping costs of such materials.

Bernard Williams of Norwalk, CT, drew a 46-month prison term and a $7,500 fine from a U.S. District Court judge in Brooklyn, NY, for “recklessly delivering” two undeclared cartons of ammonia for transport on a commercial flight. Williams was convicted in July 2003 for declaring that two cardboard boxes which he checked on a February 15, 2002 flight from Fort Myers, FL to New York City, contained kitty litter when they contained 13 bottles of ammonia. During the flight, one of the bottles broke, causing 28 passengers, including a seven-week-old infant, to become ill. The infant had to be hospitalized. Williams was also ordered to pay $600 in restitution and will serve 36 month on probation following his jail term.

Greg Austin, president of Austin & Pruitt Fire & Safety Equipment, Wilmington, DE, pleaded guilty in U.S. District Court in Wilmington, to making false statements regarding the testing of about 2,000 high-pressure compressed-gas cylinders. Austin’s business is authorized by the Department to conduct visual and hydrostatic retests of high-pressure cylinders, such as fire extinguishers and firefighter air-packs. After an unannounced inspection in September 2000, the firm was asked to recall and retest 81 cylinders. On three occasions—September 26, 2001, January 29, 2002, and March 28, 2002—Austin informed Department officials that about 64 of the 81 cylinders had been recalled and retested. Not believing him, investigators found about 30 cylinders at fire departments that had not been retested. Firefighters count on certifications that their equipment is properly functioning and safe. By lying, Austin put their lives at risk. Austin is scheduled for sentencing on August 5. The case was investigated by OIG and RSPA.

Daryl Schumacher, former vice president of International Trading and Marketing of Lancaster, PA, was fined $2,700, for deliberately shipping thousands of undeclared gas-charged lighters and matches by air between January 1999 and October 2000, in violation of the Federal hazardous material law. Schumacher pleaded guilty in September 2002. He received a reduced sentence in exchange for his cooperation with other OIG hazardous materials investigations.

Alexander I. Eskin of Honolulu, HI, pleaded guilty, to filing a false report regarding a hazardous material shipment, for which he was fined a $5,000 criminal penalty and $12,500 civil penalty. Eskin was a pilot for Northwest Airlines, when in June 2001 he tried to air ship a used motorcycle concealed in a box from Albany to Michigan. In two phone conversations with the shipper the previous day, he was told he would have to declare the motorcycle as hazardous material (hazmat) because it contained gasoline and oil. Nonetheless, Eskin claimed on an airbill that the box did not contain dangerous goods regulated in air transport and also signed a shipper’s security endorsement stating the cargo did not contain hazmat. The motorcycle never was shipped because the box could not fit through the plane’s cargo door.

MGC Trading Corporation of Miami, FL, was fined $3,000 for willfully delivering unlabeled flammable, corrosive, and poisonous chemicals. The firm pleaded guilty to the charge in June 2003. In June 2002, MGC, through a freight forwarder, offered nine separate packages to Lan Chile, a foreign air carrier, for air transportation to Peru. The packages were described in the air bill as general laboratory supplies. During handling at Lan Chile, one of the packages broke open, exposing its hazardous contents. Many of the bottles inside the box had hazmat labels affixed. MGC sells laboratory and medical supplies, including chemicals used in medical laboratory work, to hospitals and medical clinics throughout Latin America.

Randa Michelson, a former employee of Mid-America Express, Inc., Chatsworth, GA, was sentenced in U. S. District Court in Minneapolis, MN, after earlier pleading guilty to participating in a conspiracy to transport undeclared hazardous materials by truck. The chemicals, which should have been labeled as hazardous, included hydrogen peroxide and sodium hydroxide, which can cause skin burns and irritation to the respiratory tract. Michelson was sentenced to 3 years’ probation and 150 hours of community service. She was charged in Biloxi, MS, in 2001 with co-defendant Jack Weaver. She then moved to Minnesota and was allowed to enter her guilty plea there. Weaver was fined $1,000 in 2002. OIG conducted the investigation jointly with the FBI and EPA.

Quick Transportation, Inc., a trucking company operating out of Michigan City, IN and Stockton, CA, was fined $100,000 and put on 36 months’ probation by a U.S. District Court judge in Sacramento for unlawfully transporting compressed nitrogen military decoy flares. The flares can become dangerous projectiles under extreme heat or pressure and must be shipped under constant surveillance. Although Quick received a bill of lading identifying the shipment as hazardous and specifying the need for surveillance, the company created new paperwork that deliberately omitted the hazard. Quick then trucked the shipment to an intermediary firm, which delivered the container to Union Pacific Railroad for transport to California. The flares were discovered when the train derailed near Lodi, CA in January 1998. The decoys did not explode. OIG investigated the case jointly with the Naval Criminal Investigative Service, FBI, FRA, FMCSA, and RSPA.

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 W O R L D  T R A D E

WTO NEWS

 

Talks suspended. ‘Today there are only losers.’

 

The Doha Development Agenda negotiations are to be suspended because gaps between key players remain too wide. Heads of delegations, speaking in an informal meeting of the Trade Negotiations Committee on 24 July 2006, agreed with WTO Director-General Pascal Lamy that this will be a setback for all members.

Mr Lamy told heads of delegations in the informal meeting that he will recommend a “time out” to the General Council on 27 July. He did not suggest how long the talks will be suspended. They can only resume when progress can be made, which in turn will require changes in entrenched positions, he said. The suspension will apply to all negotiating groups.

Click these links for more information

News item

Statement by Pascal Lamy at the informal Trade Negotiations Committee meeting

Audio: Statement by Pascal Lamy at the informal Trade Negotiations Committee meeting

Audio: Highlights from the press conference


NAFTA Rules of Origin Revisions

As of July 1 in the United States and Canada and July 5 in Mexico, regulations amending the NAFTA Rules of Origin Regulations have gone into effect in the three NAFTA countries. The revised rules affect headings and subheadings in the following chapters:

  • 18-Cocoa and cocoa products;

  • 20-Prepared vegetables, fruits, nuts and other parts of plants;
  • 41-raw hides and skins and leather;
  • 45-cork;
  • 54-man-made filaments,
  • 56-wadding, felt, and nonwovens and twine, ropes, and cable made there of;
  • 67-feathers and down, artificial flowers, products of human hair;
  • 70-glass;
  • 74-copper and copper products;
  • 78-lead and lead products;
  • 79-zinc and zinc products;
  • 80-tin and tin products;
  • 81-Other base metals and products made there of;
  • 85-electrical machinery; and

  • 90-optical, photographic, measuring, and medical/surgical instruments.

The text of the changes is available on-line at the Canada Gazette, published by the Canadian government.

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 E V E N T S / C L A S S E S

Learning Technical Chinese

To help business people and engineers who need to communicate with Chinese counterparts, UW-Madison is offering a Technical Chinese Program. The courses offered will incorporate language skills and cultural understanding that will help companies in their efforts to improve existing operations in East Asia and to develop new business opportunities. Participants can take the course via distance education around the world. The university also offers a Technical Japanese Program. More information is available online. For course details, please contact Professor James L. Davis, ph: (608) 262-4810.

Mexico Mission Date Change

The dates of the Wisconsin Department of Commerce Business Mission to Mexico have been changed to give participants the opportunity to attend one of two important industry trade shows: Enviro-Pro in Mexico City, September 27-29, and Eximueble in Monterrey, September 28-30. The mission will also be making a stop in Guadalajara, capital of Wisconsin’s sister-state of Jalisco. The mission will depart Wisconsin on September 24 and return on September 30. It is open to all Wisconsin exporters interested in establishing or expanding their sales in Mexico.

Wisconsin’s trade office in Mexico City will arrange business appointments for mission participants with pre-qualified prospective representatives, distributors or clients. You will have the opportunity to travel with other local exporters, sharing expertise, and learning best practices. For more information about the mission or other opportunities in the Mexican market, please contact our Latin America Specialist, Ms. Susan Dragotta, ph: (262) 691-5147.

Benelux Business Matchmaker Mission

The Wisconsin Department of Commerce plans to lead a Business Matchmaker Mission to Amsterdam which will target the entire Benelux region of Europe (Belgium, the Netherlands, and Luxembourg) from November 8-14, 2006. The Benelux countries provide proven and dynamic markets for Wisconsin exports and offer convenient shipping and logistical access to the entire European Union. The mission is open to all Wisconsin exporters interested in establishing or expanding their sales in these countries.

For companies involved in the medical equipment/accessories or marine equipment sectors, the mission is scheduled to give participants the opportunity to attend one of two leading industry trade shows: METS 2006 in Amsterdam, November 14-16, is the premier European exhibition of marine equipment and the leisure craft industry, while MEDICA 2006 in Düsseldorf, Germany, November 15-18, is the world's leading medical trade fair. Since 2001, Wisconsin exports of medical-related instruments to the Benelux countries have increased 55%, while exports of pleasure boats and other marine equipment have jumped over 160%.

Wisconsin's trade office in Europe will arrange customized business appointments with pre-qualified prospective representatives, distributors, partners or end-users throughout the Benelux region for mission participants. If you are interested in finding out more information about the mission, please contact our European Specialist, Mr. Brad Schneider, ph: (920) 420-1796.

Getting Started in Exporting Workshop

The International AgriBusiness Center of the Wisconsin Department of Agriculture (DATCP) is sponsoring a seminar to help state firms determine their company's export readiness, prepare quotes for trade leads, price products, understand terms-of-sale and payment, select the best method of distribution for products, and provide export resources to assist food companies. The program will be held on Thursday, August 10 at the DATCP office, 2811 Agriculture Drive in Madison. For additional information, please contact Agricultural Marketing Consultant, Ms. Lisa Stout, ph: (608) 224-5126. Click here to register on-line.


 HOLIDAYS

Thailand - THE QUEEN'S BIRTHDAY - August 12 

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