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The U.S. International Trade
Commission maintains a listing of current antidumping and
countervailing (Special duty) orders currently in place.
Click here to go to their
website:
Unsure if your imported product
might fall under a Special duty order, go to the website of the
International Trade Administration
Special duty orders apply to
specific articles. The articles are described as a ‘SCOPE’.
Click here for Scope Information by
Country
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C-TPAT
New C-TPAT
rules in effect
Foreign manufacturers in the Customs-Trade
Partnership Against Terrorism will be required to annually verify that
their supply-chain partners are following U.S.-approved security
measures, according to new minimum requirements for the program
implemented by Customs and Border Protection.
Companies in the program obtain benefits such as speedier clearance
and dedicated fast lanes at border crossings in exchange for
self-policing of their supply chains.
The minimum criteria for foreign manufacturers and U.S. rail carriers
went into effect Aug. 29. Minimum requirements for importers, and sea
and highway carriers, were published earlier this year.
The new rules require foreign manufacturers on a yearly basis to
assess all of their foreign partners such as parts providers,
warehouses or distributors or carriers, from point of origin to point
of distribution.
All will have to meet minimum standards for:
Container and trailer security;
Access controls on employees and visitors;
Fencing, lighting, and parking;
Personnel security including background checks;
Proper documentation;
Staff security training;
Passwords and accountability for information
technology.
Foreign manufacturers already in C-TPAT have until Nov. 27 to meet the
minimum standards detailed on Customs' Web site. Those who fail
security checks can be suspended or removed from the program. Canadian
and Mexican members who fail will have their Free and Secure Trade
(FAST) privileges revoked….
All six Class 1 rail carriers in the United States, including Canadian
Pacific and Canadian National Railway, are members of C-TPAT. The
railroads have a phased set of deadlines to meet extensive criteria,
including Oct. 30 for controls on access for employees and visitors,
and physical security of facilities and rolling stock. By Dec. 27 they
will have to meet conveyance tracking and monitoring criteria, and
have until Feb. 26 to comply with business partner requirements.
This article is excerpted from the 5 September 2006 edition of “The
Journal of Commerce”. News releases from US Customs and Border
Protection on this matter are found at:
http://www.customs.gov/xp/cgov/import/commercial_enforcement/ctpat/security_criteria/
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October 01, C-TPAT Web Portal
Deadline Final, No Extensions
22
Sept 2006, CSCB
During this
week's NCBFAA Customs Committee meetings with CBP, Customs said it
would NOT extend the October 1 deadline for C-TPAT participants to
establish and populate their C-TPAT portals. However, CBP did say
that, if the C-TPAT participant has shown a good faith effort to
complete the portal before October 1, CBP would not revoke their
C-TPAT status.
CBP said that C-TPAT
members couldn’t just upload their C-TPAT security plan and fill
in the sections to be completed with "per attached". While CBP can
upload your security plan and other documents, CBP wants a
narrative in each of the fields presented. The fields can
reference portions of the member's security plan.
For more
information, contact Industry Partnership Programs at (202)
344-1180 or fax (202) 344-2626
C-TPAT,
ISPS get mixed reviews in study
The Customs-Trade Partnership Against
Terrorism is a good idea, but the costs of membership outweigh the
advantages, according to shippers in a survey conducted by the
University of Texas Lyndon B. Johnson School of Public Affairs at
Austin, Texas.
The
full report is available through the NIT League web site:
http://www.nitl.org/LBJSecurityReport.pdf
SECURITY
Bahamas To Participate
in the Container Security Initiative
(Friday, August 04, 2006)
Washington, D.C.
— Today, U.S. Customs and Border Protection (CBP) and the Commonwealth
of the Bahamas signed a Declaration of Principles to participate in
the Container Security Initiative (CSI) program that will enable all
maritime cargo destined for the U.S. through the Port of Freeport to
be pre-screened for terrorists and terrorist weapons. D. Brent Hardt,
Chargé d’Affaires, signed on behalf of CBP, and John A. Rolle,
Comptroller of Customs, Commonwealth of the Bahamas, signed on behalf
of the Bahamian government.
CSI
is a key initiative designed to prevent global maritime cargo from
being exploited by terrorists intent on inflicting harm in America and
other nations of the world. The CSI security blanket continues to
expand and strengthen as it encompasses the Port of Freeport.
“Targeting and screening activities will be greatly advanced and
intensified as CSI expands to additional locations. The continuous
cooperation with foreign governments with regard to identifying
high-risk shipments, is essential to the ongoing success of CSI,” said
Commissioner W. Ralph Basham.
Under
CSI, officers from both CBP and Immigration and Customs Enforcement
are stationed at key seaports abroad to work with host governments to
identify high-risk shipments bound for the U.S. and to examine these
shipments prior to loading.
CSI,
which involves the screening and targeting of containers at foreign
seaports, 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. Launched in January 2002, CSI is a revolutionary
and dynamic initiative aimed at securing maritime cargo shipments
against terrorist threats.
CSI
has made great strides since its inception. In just over three years,
28 customs administrations have committed to joining CSI and are at
various stages of implementation. CSI is now operational in 44 ports
in North America, Europe, Asia, Africa, the Middle East North, South,
and Central America. CSI is continuing to expand to strategic
locations around the world. Approximately 75 percent of cargo
containers headed to the U.S. originates in or is transshipped from
CSI ports.
CBP’s
goal is to have 50 operational CSI ports by the end of 2006. At that
time, approximately 82 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
Group of Eight Nations (G8), support CSI expansion and have adopted
resolutions implementing CSI security measures introduced at ports
throughout the world.
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Taiwan to Implement
Container Security Initiative and Begin Targeting and
Pre-Screening Cargo Destined for U.S.
Tuesday, September 26, 2006
Washington, D.C.
- United States Customs and Border Protection (CBP) Commissioner Ralph
Basham announced today that CBP personnel will be stationed at the
Port of Keelung to assist their Taiwan counterparts in targeting and
prescreening cargo containers destined for the U.S. The deployment is
part of CBP’s Container Security Initiative (CSI).
“This
adds an important new layer to our defense,” said Commissioner Basham.
“It also represents a step forward for trade facilitation. Our goal is
to protect and promote the movement of trade.”
CSI
has deployed CBP officers to Europe, Asia, Africa, North, South and
Central America, and the Middle East. Approximately 82 percent of all
maritime cargo destined for the U.S. is screened at CSI ports.
Unveiled in January 2002, CSI serves the interests of business and
security. Under CSI, containers scheduled for importation into the
U.S. that are deemed high-risk are inspected at CSI ports. By
“extending the borders”, CSI thus secures shipping lanes and
facilitates the movement of goods.
CSI
is a critical component of the government’s strategy to secure the
Nation from the terrorist threat using maritime cargo containers.
Twenty-eight customs administrations have committed to joining CSI and
are at various stages of implementation.
CSI
initially deployed agency personnel to the top 20 largest volume ports
that export to the U.S. The program will continue to expand to
strategic locations globally that ship goods to the U.S. and that have
appropriate infrastructure and technology to participate in the CSI.
By the end of 2007, CBP officials hope to expand CSI to 58 ports. This
expansion would mean that about 85 percent of imported goods would be
covered by CSI.
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.
Jamaica to Implement
Container Security Initiative and Begin Targeting and
Pre-Screening Cargo Destined for the United States
Thursday, September 28, 2006
Washington, D.C.
- United States Customs and Border Protection (CBP) Commissioner Ralph
Basham announced today that the Container Security Initiative will
become operational at the port of Kingston. CBP personnel will be
stationed at the port to work with their Jamaican counterparts in
targeting and prescreening cargo containers destined for the United
States.
“This
marks a step forward in the protection of goods moving from the
Caribbean to the United States, as well as a step ahead for Jamaican
and United States commerce,” said Commissioner Basham. “This program
is a key instrument in CBP’s effort to protect and promote the
expeditious movement of goods.”
CSI
is operational in Europe, Asia, Africa, North, South and Central
America, and the Middle East. Approximately 82 percent of all maritime
cargo destined for the U.S. is screened at CSI ports. Unveiled in
January 2002, CSI serves the interests of both business and security.
Under CSI, containers scheduled for importation into the United States
that are deemed high-risk are inspected at CSI ports. By “extending
the borders,” CSI thus secures shipping lanes and facilitates the
movement of goods.
CSI
is a critical component of the government’s strategy to secure the
Nation from the terrorist threat using maritime cargo containers.
Twenty-eight Customs administrations have committed to joining CSI and
are at various stages of implementation.
CSI
initially became operational in the top 20 largest volume ports that
export to the United States. The program will continue to expand to
strategic locations globally that ship goods to the U.S. and that have
appropriate infrastructure and technology to participate in the CSI.
By the end of 2007, CBP officials hope to expand CSI to 58 ports. This
expansion would mean that about 85 percent of imported goods would be
covered by CSI.
Currently, there are 48 operational CSI ports worldwide. Kingston is
the 49th seaport at which CSI has become operational.
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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Senate
Unanimously Votes to Tighten Security Measures at Ports
Associated Press Friday, September 15, 2006
The Senate voted without
dissent yesterday to tighten security at U.S. seaports by scanning
nearly all incoming cargo for "dirty bombs" and other nuclear weapons.
The bill, approved 98 to 0
in a pre-election push on national defense, would increase safeguards
on the rail systems that pick up cargo from ports and authorize 1,000
new agents to screen containers coming off ships. But the legislation
does not go as far as some Democrats demanded in requiring inspections
for all U.S.-bound cargo before it leaves foreign ports. Almost 11
million containers a year are shipped to the United States.
WTO
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WTO Panel Finds for United
States in "Zeroing" Dispute with Japan
09/20/2006 |
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WASHINGTON - U.S. Trade
Representative Susan C. Schwab announced today that a WTO panel
has found in favor of the United States on Japan’s challenge to
the United States’ use in antidumping administrative reviews of
"zeroing" – a technique used in measuring alleged incidents of
selling below fair value, or dumping.
In a previous
dispute, the Appellate Body found that the WTO Antidumping
Agreement prohibits zeroing in such reviews. The panel also
concluded that zeroing is permitted in some circumstances in
antidumping investigations.
"We welcome the
panel’s careful and reasoned analysis on the issue of ‘zeroing’ in
administrative reviews," said Ambassador Schwab. "This marks the
second report in which a panel of antidumping experts has found
that the Antidumping Agreement does not prohibit ‘zeroing’ in that
context. That analysis is a model for how WTO adjudicatory bodies
should do their job, demonstrating a solid commitment to their
responsibility first and foremost to apply the WTO agreements as
written."
Background
When the U.S.
Department of Commerce ("Commerce") calculates a weighted average
dumping margin for a given company, it typically takes into
account numerous comparisons between sales in the United States
and sales in the home market or third country market (or costs in
the home market). It is not uncommon for Commerce to find that
some comparisons reveal dumping (e.g., the price in the United
States is lower than the home market price), while others reveal
no dumping (e.g., the price in the United States is higher than
the home market price). Where a comparison reveals no dumping,
Commerce assigns a zero to that comparison, rather than a negative
number equal to the amount by which the U.S. price exceeds the
home market price. This practice is commonly referred to as
"zeroing."
The WTO
Antidumping Agreement contemplates three methodologies for
calculating a dumping margin in investigations:
average-to-average, transaction-to-transaction, and
average-to-transaction. In addition to the question of the use of
zeroing for each methodology, there is a question as to whether
zeroing can be used in different types of antidumping proceedings,
including investigations, administrative reviews, and sunset
reviews.
The Appellate
Body had previously found that zeroing using the
average-to-average methodology in investigations is prohibited,
and this panel agreed with the Appellate Body.
In August the
Appellate Body circulated its report in Softwood Lumber, in which
it concluded that zeroing using the transaction-to-transaction
methodology in investigations is also prohibited. This panel
concluded the opposite, i.e., that zeroing in the
transaction-to-transaction methodology in investigations is
permitted. The panel had finalized its report before the Appellate
Body released its report in Softwood Lumber.
In April the
Appellate Body released its report in EC Zeroing, in which it
concluded that zeroing in administrative reviews is prohibited.
This panel considered the reasoning of the Appellate Body, but
concluded based on a thorough examination of this reasoning and
the language of the Antidumping Agreement that zeroing in
administrative reviews is permitted.
Return to
newsletter front page |
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United States Requests WTO
Panel in Challenge of China’s Treatment
of U.S. Auto Parts
09/15/2006 |
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WASHINGTON – United
States Trade Representative Susan C. Schwab announced today that
the United States, the European Union and Canada will be
requesting the World Trade Organization (WTO) to establish a
dispute settlement panel regarding China’s treatment of U.S. auto
parts. China is imposing charges that unfairly discriminate
against imported auto parts and discourage automobile
manufacturers in China from using imported auto parts in the
assembly of vehicles. The United States believes that these
charges are inconsistent with China’s WTO obligations.
"Working together
with Canada and the EU, we have tried to resolve this issue
through consultations as we always prefer to negotiate rather than
litigate, but China has demonstrated no willingness to remove its
unfair charges," Ambassador Schwab said. "While we remain open to
settling this dispute, China’s current stance leaves us no choice
but to proceed with our WTO case. We are committed to providing a
level playing field for U.S. exporters to China and, as we have
made clear, we will not hesitate to pursue dispute settlement if
necessary."
The United States
initiated the case on March 30, 2006, by requesting formal WTO
consultations. The United States will be joined by the European
Union and Canada, and both will also request WTO panels today to
consider China’s regulations.
Increasing access
to China’s auto market was a key issue in China’s accession to the
WTO. Although China’s WTO commitments limit its tariff on imported
auto parts to a rate that is significantly below China’s tariff on
finished vehicles, China’s regulations impose a charge on imported
auto parts equal to the tariff on complete automobiles, if the
parts are incorporated into a final assembled vehicle that fails
to meet certain local content requirements. These higher charges
unfairly discriminate against the use of imported parts in the
assembly process.
Background
Under China’s
regulations governing the importation of auto parts, all vehicle
manufacturers in China that use imported parts must register with
China’s Customs Administration and provide specific information
about each vehicle it assembles, including a list of the imported
and domestic parts to be used, and the value and supplier of each
part. If the number or value of imported parts in the assembled
vehicle exceed specified thresholds, the regulations assess each
of the imported parts a charge equal to the tariff on complete
automobiles (typically 25 percent) rather than the tariff
applicable to auto parts (typically 10 percent).
The regulations
encourage auto manufacturers in China to use Chinese parts in the
assembly process – at the expense of parts from the United States
and elsewhere. The regulations also provide an incentive for auto
parts producers to relocate manufacturing facilities to China.
The United States
believes that these regulations impose a charge on U.S. auto parts
beyond that allowed by WTO rules and result in discrimination
against U.S. auto parts. China appears to be acting inconsistently
with several WTO provisions including Article III of the General
Agreement on Tariffs and Trade 1994 and Article 2 of the Agreement
on Trade-Related Investment Measures, as well as specific
commitments made by China in its WTO accession agreement.
The United
States, Canada, and the EU held joint consultations with China in
Geneva on May 11-12, 2006. Australia, Japan, and Mexico, which
also export auto parts to China, participated in the consultations
as third parties.
The United States
exported $681 million in auto parts to China in 2005, an increase
of 6.5 percent over exports in 2004. Over this same period, the
market for automotive components in China increased by 16.8
percent, and the number of passenger vehicles sold in China
increased by 27 percent. U.S. exports of auto parts to China
accounted for 1.4 percent of total U.S. auto parts exports in
2005, representing approximately 10 percent of China’s auto parts
imports.
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TRADE
U.S., Canada sign lumber pact
Wed Sep 13, 2006
Excerpted from
The JOURNAL of
COMMERCE ONLINE
The United States and
Canada on Tuesday signed an agreement that puts an end to a
long-running feud over softwood lumber trade.
The pact will reimburse
Canadian exporters about $4.4 billion of the roughly $5.3 billion in
punitive duties that they have paid to the U.S. since May 2002, amid
charges by Washington that Ottawa unfairly subsidized its lumber
mills. In return, Canadian firms are required to either pay export
taxes of up to 15 percent, or agree to volume restrictions, when
lumber prices fall below a specified level.
U.S. Trade Representative
Susan Schwab was in Ottawa to sign the agreement with Canadian Trade
Minister David Emerson. Schwab said the U.S. won't terminate the
agreement before its seven-year expiry date unless ''major unforeseen
developments'' emerge, according to media reports. Emerson said the
deal will come into force Oct. 1, with the refunds flowing to Canadian
firms within four to eight weeks.
The American lumber
industry will split about $500 million, and the Washington will keep
about $450 million to spend on low-cost housing, disaster relief and
other public service initiatives.
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U.S. Senate Approves Oman Free Trade
Agreement
09/19/2006 |
WASHINGTON
- U.S. Trade Representative Susan C. Schwab welcomed the Senate’s
approval of the U.S.-Oman Free Trade Agreement today by a vote of 63 –
31.
"I am delighted the
Senate has cleared this important free trade agreement for the
President’s signature," said Ambassador Schwab. "The Oman FTA advances
the President’s vision for economic integration and development in the
Middle East and participation in the peaceful community of trading
nations. It holds important promise for the people of Oman and the
United States."
The agreement, the
first Congress has approved since Ambassador Schwab became U.S. Trade
Representative in June, is the fifth in the region. The approval of
the agreement also marks another advance towards President George W.
Bush’s objective of establishing a Middle East Free Trade Area (MEFTA)
by 2013. The Oman agreement builds on free trade agreements concluded
with Israel, Jordan, Morocco, and Bahrain. MEFTA is aimed at spurring
economic growth and reform in the Middle East – an area of almost 350
million people and with a $70 billion trading relationship with the
United States.
"We worked closely
with Members of Congress on both sides of the aisle in the House and
Senate to negotiate the passage of the agreement with Oman,"
Ambassador Schwab added. "I want to thank the Senate and House
leadership for all their hard work to bring this agreement to the
President’s desk."
Background:
On the first day this
agreement goes into effect, 100 percent of consumer and industrial
products will be duty free. This will expand opportunities for exports
of machinery, automobiles, optic and medical instruments and
electrical machinery, and agricultural products such as vegetable
oils, and sugars, sweeteners, and beverage bases.
In addition, Oman
will provide substantial market access across its entire services
regime, provide a secure, predictable legal framework for U.S.
investors operating in Oman, provide for effective enforcement of
labor and environmental laws, and protect intellectual property.
The House and Senate
approved the implementing legislation over the summer by solid
bipartisan margins – with the Senate voting first in late June,
followed by the House in July. However, the Senate was required to
vote on the identical House-passed legislation again to meet the
Constitutional requirement that revenue bills, including trade bills,
originate in the House.
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U.S. Customs and
Border Protection Emphasizes Trade Role - New Office of Trade will
Consolidate Functions
Wednesday, September 13, 2006
Washington, D.C.
– U. S. Customs and Border Protection (CBP) today announced the
formation of a new office, designed to spearhead its national trade
policy, which will consolidate its trade policy, program development,
and compliance measurement functions into a single Office of Trade.
The Office of Trade, which will embark on its mission on October 15,
2006, will provide greater consistency within CBP with respect to its
international trade programs and operations, and further CBP’s ability
to facilitate the flow of legitimate trade across U.S. borders while
securing U. S. borders and protecting the American economy from unfair
trade practices and illicit commercial enterprises. In addition, by
consolidating these important functions under one office, CBP’s close
working relationship with the trade community – already a hallmark of
CBP’s operations and programs – will be even further enhanced.
According to CBP Commissioner Ralph Basham, “ This is a significant
event in the evolution of Customs and Border Protection, which has
always had the twin goals of preventing terrorists and terrorist
weapons from entering our country, while, at the same time,
facilitating the flow of legitimate trade and travel. The newly
constituted Office of Trade will further reinforce our commitment to
the trade component of these goals.”
“The
creation of the Office of Trade underscores CBP’s strong conviction
that partnerships and outreach are necessary to facilitate legitimate
trade and to effectively enforce trade laws” said Commissioner Basham.
“By providing the trade with a focal point within CBP, we can better
align our resources with the greatest risk while ensuring the fastest
possible clearances for compliant trade,” he added.
Currently at Customs and Border Protection, the functions of trade
policy and program development are split among three offices within
CBP: the Office of Strategic Trade, the Office of Regulations and
Rulings, and the Office of Field Operations. The new Office of Trade
will consolidate the trade policy, program development, and compliance
measurement functions of CBP into one office without creating dual
reporting mechanisms or overlapping, redundant management structures
that would disrupt the closely interrelated activities of CBP officers
and operators processing arriving cargo at U.S. ports of entry.
The
Office of Trade will also develop national trade policies and programs
that will guide the work done by the CBP officers in ports of entry,
but managing and carrying out cargo processing operations on a
day-to-day basis will remain the responsibility of CBP’s Assistant
Commissioner of the Office of Field Operations, working through his
chain of command – the Directors of Field Operations, Port Directors
and front line supervisors.
The
consolidation and streamlining of CBP's trade functions and the
consequent enhancements to CBP's trade missions has been championed by
leaders of Congress, most notably Senate Finance Committee Chairman,
Charles Grassley (R-IA) who has worked closely with CBP on this
concept and, according to Commissioner Basham, “ deserves great credit
for moving this forward.”
Commissioner Basham has also announced his selection of Dan Baldwin as
the Assistant Commissioner for the new Office of Trade. Mr. Baldwin,
currently the Assistant Commissioner of CBP’s Office of Strategic
Trade, will assume leadership of the new office upon its
establishment. Mr. Baldwin brings a wealth of knowledge and experience
in trade matters.
The
new office will be responsible for:
-
Providing national
strategic direction to facilitate legitimate trade while protecting
the American economy from unfair trade practices.
-
Directing national
enforcement responses through effective targeting of goods crossing
the border as well as strict, swift punitive actions against
companies participating in predatory trade practices.
-
Coordinating with
international partners to ensure effective enforcement of textile
admissibility issues as well as the enforcement of free trade
agreement eligibility.
-
Cooperating with other
U.S. agencies and like-minded foreign governments to achieve
effective enforcement of intellectual property rights.
-
Maintaining effective
internal controls over the revenue process.
-
Coordinating with other
government agencies and international partners to identify risks to
detect and prevent contaminated agricultural or food products from
harming the American public or the nation’s economy.
-
Promoting trade
facilitation and partnership with the importing community and trade
associations by streamlining the flow of legitimate shipments and
fostering corporate self-governance as a means of achieving
compliance with trade laws and regulations.
-
Managing a risk-based
audit program to respond to allegations of commercial fraud and to
conduct corporate reviews of internal controls to ensure importers
comply with trade laws and regulations.
-
Providing legal tools to
promote facilitation and compliance with customs, trade and border
security requirements through: the issuance of all CBP regulations,
legally binding rulings and decisions, informed compliance
publications and structured programs for external CBP training and
outreach on international trade laws and CBP regulations.
The
effect of this reorganization on CBP employees is expected to be
minimal, with minor changes to existing offices, divisions and
branches. Most employees will see little or no change, other than a
realignment to the new Office. However, while the transition to the
new office may be transparent to most, the establishment of the Office
of Trade will ensure strong and consistent trade policies and programs
that will, in turn, enable CBP to successfully meet the challenges of
the future.
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|
United States and Indonesia
Sign Agreement to Prevent Illegal
Transshipments of Textiles and Apparel
09/26/2006 |
|
WASHINGTON – U.S. Trade
Representative Susan C. Schwab and Indonesia’s Trade Minister Mari
Pangestu today signed a Memorandum of Understanding (MOU) on
cooperation to prevent illegal transshipment of textiles and
apparel through Indonesia to the United States.
The ceremony
followed a meeting between Ambassador Schwab, Trade Minister
Pangestu and Indonesian Vice President Jusuf Kalla that focused on
the bilateral trade relationship and opportunities to expand
economic ties between the United States and Indonesia, the largest
nation in the Southeast Asia region.
"This MOU
establishes a formal mechanism to help safeguard legitimate
textile trade between our two countries, while stopping illegal
textile transshipments," said Ambassador Schwab. "Today’s
agreement demonstrates a commitment by the United States and
Indonesia to work together to strengthen our trading
relationship."
The MOU provides
for customs cooperation, identification of textile and apparel
manufacturers, and joint verification visits to provide each
country’s government with the information necessary to stop
textile and apparel transshipments. The conclusion of this MOU
represents an important achievement in ongoing efforts to achieve
a network of cooperative arrangements to prevent illegal
transshipment of textiles and apparel.
The MOU is also
the latest achievement in ongoing work under the bilateral
U.S.-Indonesia Trade and Investment Framework Agreement (TIFA).
The TIFA, which was established in 1996, seeks to further
strengthen the close ties between the U.S. and Indonesia and to
enhance two-way trade that currently stands at around $16.5
billion per year. The TIFA provides the two sides with a forum to
identify, raise, and resolve matters that might otherwise hinder
the development of bilateral trade and investment ties.
In their meeting,
Ambassador Schwab, Trade Minister Pangestu and Vice President
Kalla discussed issues on the U.S.–Indonesia bilateral trade
agenda, including the enforcement of intellectual property rights
(IPR), removal of barriers to exports of U.S. fruits to Indonesia,
and reviving the World Trade Organization Doha Round.
Background
The United States
is Indonesia’s largest market for exports of textile and apparel
products. In 2005, textile and apparel imports from Indonesia were
valued at $3 billion, making Indonesia the United States’ fifth
largest textile and apparel supplier in value terms. The MOU will
facilitate textiles and apparel trade by helping both governments
better distinguish between legitimate transactions and shipments
that circumvent trade rules and procedures.
The United States
has previously concluded MOUs to combat illegal textile and
apparel transshipments with the Philippines, Hong Kong and Macau,
and is in the process of negotiating an MOU with Taiwan. These
issues are also being addressed in the comprehensive bilateral
free trade agreement negotiations that are ongoing with Korea and
Malaysia.
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EXPORT
Exporters under Heightened Scrutiny for Valuation
Discrepancies
12 Sept 2006, ST&R
The U.S. government is
stepping up its enforcement activities against exporters that try to
help their foreign customers avoid customs duties in their home
countries through inaccurate valuation schemes. This effort appears to
be part of a broader crackdown on violations of U.S. customs and trade
rules, which goes beyond traditional import-focused issues such as
misclassification and transshipment and extends to areas like
counterfeiting, bribery, price fixing and money laundering that affect
both imports and exports. Considering this heightened scrutiny and the
substantial penalties that can result, exporters are advised to take
steps to ensure that they are in compliance with the relevant laws and
regulations.
Export valuation compliance is an area that is often overlooked, even
by reputable exporters. Many companies are unaware that they are
legally required to submit accurate valuation information for exports
as well as imports. In a typical scenario, the U.S. seller seeks to
accommodate its foreign buyer by authorizing the issuance of a
shipper’s export declaration that reflects values lower than the
amount actually paid to the seller, as indicated on the invoice. The
customer then enters the goods at this lower value, thus fraudulently
reducing the amount of duties, taxes and value-added taxes owed to the
foreign government. Since U.S. exporters usually declare the amounts
actually paid by their customers for accounting and tax purposes, they
may incorrectly assume that this undervaluation approach for customs
purposes is in compliance with U.S. law.
The most recent example of the increased attention being given to
export valuation was the announcement in August that authorities in
the U.S. and Brazil had dismantled a scheme that is believed to have
denied that country over $200 million in import duties over the past
five years. Those involved were charged with document fraud, public
corruption, tax evasion and other illegal activities in connection
with the undervaluation of a wide range of U.S. exports to Brazil,
including electronics equipment, computer and telecom equipment,
tires, orthopedic equipment, surgical gloves, fruits, plastic bottles,
fabric and clothes, batteries, vehicles and motorcycles, vitamins and
dietary supplements, and perfumes. The investigation included
searches, seizures and arrests in Miami as well as Brazil.
One of the interesting features of the Brazil investigation is the
prominent role played by the local Trade Transparency Unit. TTUs, a
relatively new joint initiative between the departments of State,
Treasury and Homeland Security, are designed to eliminate systemic
vulnerabilities in commercial trade and the financial and
transportation sectors to exploitation by criminal and terrorist
organizations. They are dedicated enforcement units that help detect,
investigate and prosecute financial and trade crimes such as money
laundering, the illegal movement of criminal proceeds across
international borders, alternative remittance systems and terrorist
financing. The U.S. currently has TTUs in operation in Colombia,
Brazil, Argentina and Paraguay. Countries such as Panama, India and
the Philippines have also expressed interest, and the concept has been
presented to several Eastern and Central European countries as well.
The U.S. envisions an eventual worldwide network of these units.
While the Brazil investigation was the most significant one conducted
to date, similar efforts are being undertaken in other regions as well
and numerous penalties have been assessed. In one case, a New
Jersey-based company paid a major fine after pleading guilty to
agreeing to submit inaccurate pricing information on its SEDs.
U.S. exporters are therefore advised to, as part of their compliance
standards and controls under Sarbanes-Oxley, independently verify that
the amounts indicated on their SEDs and other export documents
accurately reflect the amounts paid by their foreign customers.
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front page
PierPASS Completes Transition in
Exporter Procedures
Exporters,
Terminals and Steamship Lines Quickly Adjust to New OffPeak Program
Procedures at Ports of Los Angeles and Long Beach
LONG BEACH, Calif., August 24, 2006 – PierPASS
Inc. today announced a successful transition to the new procedures for
handling export containers under the OffPeak program at the Ports of
Los Angeles and Long Beach. Implemented beginning August 7, the
transition required operational adjustments by exporters, terminals,
shipping lines, trucking companies and PierPASS
Inc., and was completed with few problems. Under the new procedures,
exporters delivering containers during peak hours are required to
claim their booking numbers in their PierPASS
account before containers arrive at the marine terminals.
The
changes were made to improve the efficiency of the OffPeak program,
which launched in July 2005 to reduce congestion in and around the Los
Angeles and Long Beach ports. Under the OffPeak program, all
international container terminals in the two ports have established
five new nighttime and Saturday shifts per week. As an incentive to
use the new OffPeak shifts and to cover the added cost of the shifts,
a Traffic Mitigation Fee (TMF) is required for most cargo movement
during peak hours (Monday through Friday, 3:00 a.m. to 6:00 p.m.).
Since export containers are now being turned away at the marine
terminal gates if they arrive during peak hours without claimed
booking numbers, it was crucial to ensure that the industry was
prepared for the transition. PierPASS
helped ensure this by conducting aggressive outreach to exporters and
other industry participants in the weeks leading up to the transition.
PierPASS
sent tens of thousands of e-mail notices to port users, held a free
educational webinar to explain the procedures and distributed 10,000
flyers to truck drivers at the terminals.
While there were some initial difficulties the morning of August 7,
these situations were quickly managed. According to PierPASS,
between 2 percent and 5 percent of non-exempt export containers were
turned away at the gates overall on August 7, depending on the
terminal. Some terminals experienced higher rates during the first
hours of the shift. During the weeks of August 7 and August 14, a
small percentage of non-exempt export containers were turned away at
the gates.
“Exporters, terminals, steamship lines, trucking companies and others
all did a great job adjusting to the new procedures and keeping the
cargo moving,” said PierPASS
Inc. President and CEO Bruce Wargo. “The goods movement industry has
again shown that by working together, we can achieve positive change.
The increased efficiency of the OffPeak program will help ensure the
continued ability of OffPeak to reduce port congestion.”
More information about the export procedure change is available at
www.pierpass.org, including a
Q&A and a link to a free webinar on the procedure change.
Huge Counterfeit Merchandise Smuggling Scheme
Uncovered
07 Sept 2006, ST & R
Representatives from the
Departments of Justice and Homeland Security have announced the
break-up of one of the largest counterfeit merchandise smuggling
schemes uncovered in recent U.S. history. Six people, including two
U.S. citizens and four foreign nationals, were indicted in August for
conspiring to smuggle millions of dollars’ worth of counterfeit goods,
including Nike Air Jordan athletic shoes, from China into the U.S.
Authorities from U.S. Immigration and Customs Enforcement and U.S.
Customs and Border Protection have seized more than $16 million in
fakes so far.
According to an ICE press release, the six defendants charged in the
case were indicted by a Tucson federal grand jury Aug. 16. They are
accused of conspiring to traffic in counterfeit goods and services, a
charge that carries a maximum penalty of five years in prison and a
$250,000 fine. The indictment alleges that between May 12 and July 25
the defendants attempted to illegally import 15 cargo containers
containing approximately 135,000 pairs of counterfeit Air Jordan shoes
with a retail value of more than $16 million.
The indictment also alleges that certain individuals sought to bribe
an undercover agent posing as a CBP officer to falsify government
records to indicate that merchandise shipped from China to the U.S.
was re-exported to Mexico. Two individuals are also accused of
soliciting an undercover agent posing as a customs broker to
facilitate the release of six containers of merchandise being held by
CBP in Nogales. According to the indictment, several of the defendants
met at least eight times with the undercover agent, giving him $25,000
in bribes.
As part of the continuing investigation, an additional 62 containers
have been identified – 48 in Long Beach, Calif., and 14 in Laredo,
Texas.
Return to newsletter
front page
CBP Marks Banner Year for Textile
Seizures; More than $100 Million Worth of Apparel Seized for Quota
Violations Since October
Wednesday, September 13,
2006
Washington, D.C.
—
U.S. Customs and Border Protection (CBP) in the last year has seized
more than $100 million in wearing apparel and textile goods that were
misrepresented, smuggled or illegally transshipped in an effort to
circumvent textile trade laws and regulations. CBP plays a critical
role in enforcing trade laws in order to protect U.S. jobs and
companies and in ensuring that appropriate revenue is collected and
the enforcement of the China quota restraints are enforced.
Many
different schemes are used to evade duty or quotas on textiles being
brought into the country. Some importers circumvent quotas by
transshipment-changing the country of origin of their goods. Still
others use false documents or labels or provide incorrect descriptions
of the merchandise. Textile imports are especially important since
they represent 43 percent of all revenue collected.
“CBP
is committed to protecting American jobs and American companies. I am
committed to aggressive trade enforcement to stop illegal importation
of goods which violate trade quotas and hurt our American economy,”
said CBP Commissioner, W. Ralph Basham.
Import Specialists in CBP, with specialized commodity knowledge,
analyze and review textile imports for possible violations. Focusing
on this commodity has paid off with the seizure of numerous major
shipments.
One
of the enforcement tools being used is on-site verification of
manufacturers. Since last October, CBP Textile Production Verification
teams have traveled to close to 450 foreign factories in 12 countries
to review and verify that wearing apparel that is shipped to the U.S.
is produced at those facilities.
Sites
are selected after extensive trade analysis. Countries are categorized
based on risk for non-compliance with trade laws and policies. Those
countries that are identified as high-risk go to the top of the list
for verification activities, but selection of individual manufacturers
is also a result of the application of stringent targeting techniques.
CBP
import specialists at the ports of entry are receiving extensive Free
Trade Agreement (FTA) training to target possible violation of FTA
requirements in shipments entering U.S. trade. Yet another resource
used to identify misdescribed merchandise are the CBP Laboratories.
Laboratory analysis can establish the make-up of any textile product
through chemical and fiber analysis. “CBP has an arsenal of tools to
ensure compliance with laws and regulations governing imports,” said
Janet Labuda, Director, Textile Enforcement and Operations Division.
CBP will continue to use a multi-faceted, but complimentary approach
consisting of trade pattern analysis, on-site verifications, review of
production records, audits, and laboratory analysis to enforce our
trade laws and to ensure that appropriate revenue is collected.
Return to newsletter
front page
EVENTS / HOLIDAYS
World Holiday
Business Closings
China Oct
1st - 8th
Taiwan
Oct 6th- 10th
Germany
Oct 3rd
Hong Kong
1-2 Oct. National Day, 7
Oct. Mid-Autumn Festival, 30 Oct. Chung Yeung Festival
Thailand
October 23, National
Holiday
Oct 31st Webinar: Handling
International Trade Compliance Horrors
http://www.exportimportlaw.com/courses/halloween.html
International Credit Executives
November 9,
2006"The
Competitive Advantage of Export Compliance"
Click here for the announcement
http://www.icewi.org/110906ICE.pdf
Click
here to register online
http://www.wcacredit.org/iceregistration.html
MWTA October 5, 2006 -
“Tapping into the
Power of RFID”
The Wisconsin Club,
900 W. Wisconsin
Avenue Milwaukee, Wisconsin
http://www.mwta.com/Events.asp
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.
If you are interested
in finding out more information about the mission, please contact our
European Specialist,
Mr. Brad Schneider (brad.schneider@wisconsin.gov),
ph: (920) 420-1796.
Joint Wisconsin/Minnesota Delegation to
China Medical Equipment Fair
Oct 31- Nov 3,
2006 Zhengzhou International Convention & Exhibition
Additional information about the show can be found at
www.cmef.com.cn.
To register for the delegation or to obtain
further information, contact our Asia Specialist,
Beng Yeap,
(beng.yeap@wisconsin.gov)
(608) 266-1480.
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