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T R A D E

HS Code Changes

On January 1, 2007, significant changes are slated to be made to the Harmonized System (HS), the broad classification system of approximately 5,000 6-digit headings which are used for classifying goods involved in international trade.

First introduced on January 1, 1988, HS numbers have subsequently been adopted as the basis for describing and classifying goods for customs purposes by more than 200 countries and customs territories, together accounting for almost 98% of world trade. The United States uses HS numbers as the basis for the Harmonized Tariff Schedule (HTS) for imports and the Schedule B for exports. They are also used in establishing rules of origin used in NAFTA and other free trade agreements. The latest set of changes is intended to keep the harmonized system up-to-date with advances in technology and patterns of trade. Over 350 amendments are included in this third major revision of the system.

More information on HS numbers is available from the World Customs Organization. (http://www.wcoomd.org/ie/En/Topics_Issues/topics_issues.html)

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Top US trade envoy says no winners if global trade talks collapse
2006-08-30

Visiting United States Trade Representative Susan Schwab Tuesday warned that there would be no winners if the Doha Round of trade talks eventually collapsed.

Addressing a luncheon hosted by the American Chamber of Commerce in China, Schwab said there would be "litigations" between countries rather than negotiations should the talks fail.

She called on countries, rich and poor, to push for resumption of the stalled global trade talks.

The Doha Round talks under the World Trade Organization (WTO) were suspended last month following a bitter dispute between Europe and the United States over farm tariffs and subsidies.

The seven industrialized countries, or G7, failed to reach a consensus at the talks, Schwab told reporters. She urged China to play an active role in reviving the talks during her luncheon speech.

She also urged India, Brazil and other developing countries to contribute to the talks.

Chinese Commerce Minister Bo Xilai said during his Monday talks with Schwab that "China is willing to continue to participate in the talks in a constructive manner along with other nations and to actively push for the resumption of the Doha negotiation process".

Meanwhile, China has urged developed countries to pay more attention to development issues.

"The Doha Round is a development round and the emphasis in the talks should be placed on development issues in order to break the stalemate and promote a fair, stable and open multilateral trading system," Bo said

Source:Xinhuanet 

S H I P P I N G

US PORT VOLUME TO GROW 85%

A report released by Ocean Shipping Consultants says North American container port throughput has doubled in the last decade and could expand by as much as 85 percent more in the next decade. The report, "Container port markets in the Americas to 2020," says throughput throughout the hemisphere has expanded 121% from 1995 to 2005 and by 47% from 2000 to 2005, to 71.2 million TEUs.

REPORT: http://www.osclimited.com/releases/C_M_Americas_2020_rel.pdf
MORE: http://www.americanshipper.com/SNW_story.asp?news=37284

MAERSK LAUNCHES LARGEST BOX SHIP

Maersk Line, the world's largest ocean container carrier, is poised to pull even further ahead of its rivals this week with the launch of the world's largest container ship. The vessel will be able to carry up to 13,000 TEUs, more than 4,000 more than the current largest container vessels in service. The new ship is due to enter service on 14 September after completing its sea trails, with a maiden voyage from Gothenburg that will also call at Bremerhaven, Rotterdam and Algeciras, before transiting the Suez Canal en route to Singapore, Japan and its final destination, Hong Kong.

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More mega-sized vessels in the making
28 Aug 2006, CIFFA

Hanjin Shipping advised last week that it has placed an order of five 10,000-TEU containerships with Samsung Heavy Industries. The five vessels ordered are scheduled for successive deployment from February 2010 on Hanjin's transpacific trade. It said in a statement that the order of super-sized containerships is in line with Hanjin's mid-to-long-term strategy to lead the global shipping market increasingly dominated by large vessels. Also, Hanjin ordered eight 6,500-TEU vessels in 2003 through 2004 and started deploying them on the Asia/Europe trade from the second half of 2006. A series of 8,000-TEU containerships began to be deployed on the transpacific trade from the second half of 2005. The carrier operates 80 containerships on 60 lanes worldwide.

At more or less the same time last week, Yang Ming, the Taiwan based carrier, launched its first 8,200 TEU vessel from the port of Kaoshiung destined for Europe. Three more vessel are under construction in Korea and another five in China....

Interestingly enough, it appears that all these vessels are destined for the Asia - Europe trade and few, if any, for the Transpacific trade! Might it be that all West Coast based ports from Long Beach to Vancouver are not necessarily geared for efficient turn-around of such vessels and that our hinterland infrastructure is wanting? More at a later stage.

S E C U R I T Y

CARGO THIEVES MORE DARING

Dangerous Shift? Cargo thieves getting more brazen
08/21/2006

TORONTO -- Imagine driver Butch Ross’s surprise when he looked out his window on the Cross Bronx Expressway only to find two armed men jump from a pickup and onto his passenger-side running board, waving guns and demanding that he pull over.

Lucky for him, he won out that day, with the aid of a nearby exit ramp and the closest telephone pole he could find that whisked the two would-be hijackers away like a couple of flies.

"It was my second trip to New York City, and my last," says Ross.

His friend Donald Woods was not so lucky. Woods' murder in late June suggests you don't have to be hauling to a U.S. inner city to be in danger.

Woods was found shot to death in his tractor and empty trailer in a Pickering, Ont. Wal-Mart parking lot. The Athens, Ont. driver had been taking a load of meat from Brockville to Toronto, leaving a Brockville A&P on the evening of June 21. Neither he nor the load made it to the destination. He left behind a wife and 13-year-old son.

Truckjacking is still rare in Canada. But this recent case may indicate thieves might be playing a different, more dangerous, kind of game these days.

Cargo theft is a growing crime according to Linda Paccanaro, VP Claims, Kingsway General Insurance -- especially if you’re in the business of hauling metals or electronic goods.

With the cost of metals rising, thieves will go to the trouble of repackaging metal, turning ingots into wire, or vice versa. Electronics are also high-value loads, but York Region cargo squad Det. Paul LaSalle says it's harder for the crooks to move a load of high-def TVs than, say, a load of diapers.

"A trailer load of plasma TVs might be worth half- to $1 million, but to get rid of that would be a tough go -- you're not going to get full value," he says. "A trailer load of diapers might be worth $20,000, but the thief might get more full value from that because if you have connections within stores, you could sell a skidload to various stores and get rid of them quicker. Those are things that people buy all the time and it's something you can get rid of easily."

Lasalle says thefts most often happen on the weekends or at night, with thieves scouring industrial areas scoping out loaded trailers. "They typically steal a tractor first, and once they find the trailer they want, they hook it up and drive off."

These days with the backing of violent organized crime gangs, cargo thieves are getting brazen and taking more risks. Lasalle says all Canadian organized crime groups -- from the Mafia to the Triads -- are in the business of stealing cargo.

"You have to have connections to move, and if you don't have connections all the way through, you're not going to be able to move the stuff."

Source: Today's Trucking Online

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ADVANCE DATA REQUIREMENTS CHANGING? 

CBP prepares wish list of advance cargo data elements

  A top U.S. Customs and Border Protection official recently suggested that the agency is getting close to making a decision on advance ocean cargo data elements it expects to require industry to produce to help it analyze containers for potential terrorist connections

Jayson Ahern, assistant commissioner for field operations, confirmed earlier this month that CBP is considering asking importers for 10 additional data elements to help Customs officers understand who is stuffing the container at its origin, the actual country of origin, and the importer of record and receiver of goods on the U.S. side. He declined to list the 10 targeting elements under consideration. (For a near complete list, see the July issue of American Shipper, page 10).

Ahern told the Commercial Operations Advisory Committee that the agency also wants to look at the ocean carrier's container stowage plan because it can be a valuable cross-referencing tool to check for containers that aren't accounted for on the manifest. On occasion containers that aren't listed on shipping documents are mistakenly loaded on vessels.

"If the container isn't transmitted and it shows up on a discrepancy report, to me that is a critical security vulnerability that has to be run to ground immediately," Ahern said.

A couple of ocean carriers will soon begin a pilot test to share their stow plans so the agency can configure its systems to receive the information, Ahern said.

"It's time for us to make some final determinations" about who will provide the advance cargo data and how it will be transmitted to the government, Ahern said.

CBP currently receives the ocean carriers’ container inventory list 24 hours prior to loading in the foreign port, but officials acknowledge that the information has limited usefulness.

The agency still has a lot of work to do developing the business rules that will spell out how importers and carriers submit the information to CBP. One option under consideration is to collect information from more than one source so it can be cross-referenced.

Ahern said the agency is still determining whether it can issue a regulation or needs Congress to change customs and security statutes for it to move forward.

"The devil's in the details and there's a lot of devil in this," said Kevin Smith, director of customs for General Motors.

Source: American Shipper+ Shippers' NewsWire

New IMB service helps seafarers pinpoint piracy attacks

London, 30 August 2006

Sea captains and ship owners whose vessels must travel through piracy hotspots have a new tool to help them prepare their voyage. The International Chamber of Commerce’s International Maritime Bureau (IMB) has launched an online piracy map which gives users a visual on the nature and location of attacks to help them better understand and track incidents.

The map is available as either a satellite view, provided by Google, a plain view (indicating countries and borders), or a combination of both. Viewers see not only the relief of the coastline but also the bays and coves from which pirates may initiate their attack.

“It is not easy to get an immediate picture of the piracy risk of an area by reading lengthy reports full of data and numbers,” said IMB Director Pottengal Mukundan. “We hope the map, coupled with the IMB Piracy Reporting Centre (PRC) alerts, will help seafarers spot the warning signs and better prepare for possible attacks.”

While the map is primarily aimed at helping ship owners, managers and their crews, Captain Mukundan noted that law enforcement officials will find it useful in deciding where best to concentrate their searches for pirates, and researchers will benefit from actually seeing the geographical circumstances of piracy attacks to predict trends.

This user-friendly map can be accessed on the IMB website (www.icc-ccs.org). Red balloons mark actual attacks while yellow balloons show attempted attacks. Clicking on these initiates a pop-up with a summary of the attack including the date and time, the type of vessel attacked, the type of attack and the number of crew affected. As with IMB’s quarterly and annual piracy reports, the information comes directly from ship masters and ship owners. Once verified by IMB’s Piracy Reporting Centre new attacks or attempts will be added to the map within 24 hours.

Users can click on the year of their choice to bring up the corresponding map of attacks and their details for previous years, making visual comparisons of hot-spot activity much easier to understand. Feedback on the map and suggestions for future development are welcome and should be directed to the IMB directorate.

Please click here to go directly to the map.

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ACE enrollment skyrockets
August 15, 2006

ACE enrollment skyrockets; truckers urged to sign up before the rush

WASHINGTON -- The number of electronic manifests (e-Manifests) filed with U.S. Customs and Border Protection (CBP) dramatically increased in the second quarter of 2006 by nearly 600 percent.

As of April 2006, CBP was receiving approximately 1,000 e-Manifests per month. In the second week of July, the number jumped to more than double. Nearly 7,000 total e-Manifests were filed in July. 

"This significant growth shows the trade community is beginning to see the benefits of using e-Manifests, which will make the transition to the upcoming mandatory policy that much easier," said Cargo Systems Program Office (CSPO) Executive Director Louis Samenfink. "Truck carriers are encouraged to begin using e-Manifests now to avoid the rush when it becomes mandatory."

More than 17 percent of shipments at ports utilizing ACE are processed via e-Manifest, and 75 percent of truck cargo entering the U.S. now passes through an ACE land border port. The e-Manifest feature is available at all 44 ACE ports.

To date, nearly 17,000 e-Manifests have been filed, and more than 300 companies are certified to submit e-manifests via EDI.

CBP expects to have the mandatory e-Manifest policy in effect at all land border ports by the end of 2007.

Eventually, ACE will become the lead system at all ports for all modes of transportation, with ACE Sea and rail processing slated to begin in 2008.

Article by Today's Trucking

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.

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Mexican, Canadian FAST drivers qualify for hazmat shipments
Updated 10:20 a.m. ET, Mon Aug 7, 2006

By R.G. Edmonson The JOURNAL of COMMERCE ONLINE

WASHINGTON — The Transportation Security Administration has issued an interim rule that allows commercial drivers who are licensed in Mexico or Canada, and who have received a card under the Free and Secure Trade (FAST) program, are eligible to transport hazardous and toxic materials in the U.S.

The interim rule takes effect Aug. 10, additional comments on the rule must be filed by Oct. 6.

When Congress passed the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), lawmakers required that Canadian and Mexican drivers had to undergo a criminal background check like the ones U.S. drivers get for a hazardous materials endorsement. TSA determined that the FAST background check met congressional requirements.

Click for the complete rule in Monday's Federal Register
http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/06-6754.htm

A S I A

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Free trade talks could follow U.S.-Asean pact
25 Aug 2006, The Journal of Commerce.

The United States … signed a trade and investment framework agreement with Southeast Asian nations, a move that could pave the way for negotiations on a free-trade pact. The 10-member Association of Southeast Asian Nations, or Asean, signed the agreement after meeting U.S. Trade Representative Susan Schwab.

"The Asean region is a very high priority for not just U.S. commercial and economic ties but for the overall geopolitical interests and commitments of the U.S.,'' Schwab told reporters after the signing. On Thursday Schwab said Washington wanted to move the Asean-U.S. relationship to "yet another level.''

Trade between Asean and the U.S. grew 12.4 percent to$153 billion in 2005. U.S. foreign direct investment in Asean countries rose 13 percent to $80 billion in 2004.

A free trade agreement with Asean as a group ``is always a possibility'' and today's agreement would be ``a positive step in that direction,'' Schwab said Thursday. ``Presumably there will be more bilateral FTAs over time and at some point potentially a regional or a knitting together of bilaterals.''

Asian trade bloc would rival NAFTA, EU
24 Aug 2006, globeandmail.com

Backed by the economic muscle of Japan and China, a new free-trade zone representing almost half of the world's population could soon be emerging in Asia to challenge the older spheres of the Western world.

The free-trade idea, spearheaded by a Japanese promise of ¥10-billion ($95-million) for a detailed study of how to make it work, won support yesterday from the Association of Southeast Asian Nations (ASEAN) at a meeting in Malaysia.

Plans for the trade zone, originally aimed for completion in 2020, are now being accelerated. The new goal is to have the trade zone established by 2015. It would cover 16 nations -- the 10 members of ASEAN plus China, Japan, South Korea, India, Australia and New Zealand. The zone would have a combined population of 3.1 billion, almost half of the global population. Its total economic output would be almost $10-trillion (U.S.) -- about a quarter of the world's GDP

It could become a natural rival to the power of the European Union and the North American free-trade agreement. The United States and Canada would be conspicuously absent from the new Asian trade zone, despite their close links to Asian countries and their own status as Asia-Pacific economies. Japan is pushing the idea hard. It estimates that a free-trade zone would increase the total economic output of the 16 countries by $215-billion. Formal negotiations could begin by 2008

Some ASEAN countries, however, want the association to focus on its existing talks with Japan over a bilateral deal between the two sides. The association already has trade agreements with China and South Korea, and it doesn't want to lose momentum on its Japan negotiations. Another potential problem is the rivalry between Japan and China. Although both are in favour of free trade in the region, China has backed a slightly different version of the trade zone. It remains to be seen if both countrieswill fully throw their weight behind a plan that both can agree on.

The collapse of the World Trade Organization's multilateral trade talks has also bolstered the level of support for an Asian free-trade zone. But the idea has had economic momentum for much longer. Trade among the 16 nations has been growing steadily for many years. Intra-region trade now accounts for 56 per cent of all trade by the 16 countries, compared with just 33 per cent in 1984.

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E V E N T S  /  S E M I N A R S

Trade Mission to Mexico:

September 24-30 - Mexico City - Guadalajara - Monterrey

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 sisterstate 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 offi ce in Mexico City will arrange business appointments for mission participants with pre-qualifi ed 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 Susan Dragotta at (262) 691-5147 or susan.dragotta@wisconsin.gov

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 (brad.schneider@wisconsin.gov), ph: (920) 420-1796.

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Joint Wisconsin/Minnesota Delegation to China Medical Equipment Fair

Oct 31- Nov 3, 2006   Zhengzhou International Convention & Exhibition

Wisconsin and Minnesota will join forces to take a business development delegation to participate at the China Medical Equipment Fair (CMEF) in Zhengzhou, the capital of Henan Province in Central China. Business matchmaking meetings in Shanghai will also be arranged for participants. CMEF was been chosen because of its track record and growing opportunities in China. The show has been the premier medical exhibition in Asia for 26 years, attracting exhibitors from many countries as well as local Chinese firms.

China's medical device market is one of the largest and fastest growing, according to the U.S. Department of Commerce. Imports account for about 70 percent of China's $6 billion medical device market, and the US supplies approximately 35 percent of those imports. Japan ranks #2 with 25 percent. China's market for imported medical devices is growing at about 15 percent annually. In 2005, Wisconsin sold $142 million of medical equipment and precision instruments to China, a 22 percent over the previous year. China is Wisconsin's fastest-growing export market and our fourth -largest export market overall.

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.

ICE September 12, 2006
"Does Your Dog Bite? Global Update" & "Mexico & Canada Border Issues" 
Click here for the announcement.
Click here to register online.
Who is attending this meeting? Click here to find out!

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SOUTH AFRICA BUSINESS BRIEFING

Did you know that South Africa is one of Wisconsin's top 25 export destinations?  In 2005 Wisconsin firms shipped over $83 million worth of products there.  That is more than was shipped to Russia, Norway, New Zealand, or Israel.

Firms interested in initiating or expanding sales to the dynamic markets of southern Africa should attend one of two briefings to be conducted by Richard Zurba, Director of the Council of Great Lakes Governors Trade Office in South Africa. 

Thursday, September 21, 2006                                         Friday, September 22, 2006

9:00-11:00 am                                                                    9:00-11:00 am

Wisconsin Department of Commerce                                   Metropolitan Milwaukee Assn. of Commerce

1^st floor conference room                                                     Wisconsin Room

201 West Washington Avenue                                             756 North Milwaukee Street, #400

Madison, WI  53703                                                            Milwaukee, WI  53202

The countries of southern Africa and the nearby Indian Ocean islands are among the fastest growing export markets for the Great Lakes states.  The Republic of South Africa has seen remarkable political and economic transition since the move to complete democracy in 1994.  South Africa's annual economic growth has averaged 3% over the last decade and is projected to surpass 4.5% in 2006.  The country is the largest producer of diamonds, platinum, gold, and chromium.  South Africa's per capita GDP is $12,000.  It accounts for 25% of the entire continent's GDP.  Mauritius and Botswana are two other countries in the region that have been in the top ten in world economic growth over the past decades.  Mauritius has become an entry point for India, as well as other markets.  Energy rich Angola and Mozambique also offer unique export opportunities. The benefits of a relatively transparent business culture, ease of movement of people and capital, free press, political and economic freedoms, limited bureaucracy and English as a business language make southern Africa a choice market for consumer and commercial goods from around the world.  Prospects for the future are bright.

The Southern Africa Trade Office was established in 1998 and provides a wide range of export-related services to firms from New York, Ohio and Pennsylvania.  Wisconsin was a participant in the office from its opening until 2003.  The Council of Great Lakes Governors is considering sponsoring a trade mission to the region in 2007.

The briefings are free of charge, but to ensure adequate space and handouts, please register by contacting Tru Mwololo, tmwololo@commerce.state.wi.us, ph: (608) 267-0587.  Mr. Zurba will be available for a limited number of one-on-one appointments for those seeking more in-depth consultations about doing business in southern Africa.  Contact Tru Mwololo for more information about the one-on-one meetings.