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U.S. security
turning border into parking lot, envoy warns
15 November 2007, The Globe
& Mail
U.S. Customs
and Border Protection should review and reduce excessive security
measures at the Canada-U.S. line or risk turning it into a parking
lot, Ambassador Michael Wilson told the agency Wednesday.
Idling trucks
on both sides of the border aren't secure or profitable, he said,
and fees are being slapped several times on the same products as
parts travel back and forth during manufacturing.
If it's cheaper
per car to ship 4,000 from halfway around the world than to send
eight on a truck over the Ambassador Bridge linking Windsor and
Detroit, then something's wrong, said Mr. Wilson.
“The
competition from abroad is fierce,” he said. “We cannot allow a
host of seemingly unrelated regulations to collectively erode what
we have achieved with (free trade) and put at risk our mutual
economic prosperity in the years ahead.”
Canada wants
much of the border clearance process to move away from crossing
points, as well as a bilateral vision of what the border should
look like 10 to 15 years down the road.
Mr. Wilson's
call for a review of U.S. border fees and regulations comes after
a summer of trade delays of up to two or three hours despite
decreased traffic, the worst waiting times since Sept. 11.
Extra security
checks, not enough infrastructure, inadequate staffing and faulty
computer systems are to blame, say business leaders.
Even trucking
companies enrolled in special programs like FAST, which is meant
to speed crossings, are getting hit with secondary checks.
“If we do not
offer tangible, reasonable incentives to our industries, we will
lose their participation in security partnership programs,” said
Mr. Wilson. “And that, I would venture, would put all of us at
more risk. We need to do better.”
The problem is
magnified because parts for many products, such as cars and
trucks, are shipped back and forth across the border several times
during the building process.
Auto industry
analysts say the industry is used to a 20- to 30-minute window to
cross the border.
Each additional
hour of wait time costs about $432,000 for Canadian parts going to
U.S. plants, they say, and $800,000 for American parts going
north.
Canada is also
concerned about rising fees, including two bills in Congress that
would impose new user fees on food and drugs going to the United
States in light of heightened concerns about countries like China.
If the bills
are passed and apply to Canada, Canadian companies would pay 10
times more than those in China and twice as much as those in the
European Union, U.S. executives say, since Canada is the single
largest exporter of food and agricultural products to the United
States.
“Many of those
fees are intended to address costs associated with imports from
countries that do not have the same proven track record as Canada
as a safe supplier,” said Mr. Wilson.
“So let's be
sure that the cost is paid by the right people and that we are
getting value for money.”
Canada has long
advocated cutting red tape and fees while expanding bridges and
other infrastructure built two generations ago, when two-way trade
was a fraction of the $1-million a minute it is now.
There are
particular fears about longer lineups once passports are required
at land and sea crossings into the United States as early as next
summer.
Return
to front page
10+2 rule
under OMB review
30 October 2007, CSCB
US Customs and
Border Protection's long-awaited proposed Advance Trade Data
Elements, known as the 10+2 rule, is at the White House Office of
Management and Budget for review.
Approval by OMB
is the final step before Customs can publish the proposal in the
Federal Register for public comment.
The OMB’s rule
summary says that importers and carriers will submit information
that is “reasonably necessary to enable high-risk shipments to be
identified so as to prevent smuggling and ensure cargo safety and
security.”
Bush wants tougher
rules for dangerous imports
7 November 2007, CSCB
President Bush
on Tuesday recommended upgraded inspection rules in order to bar
dangerous product imports from entering the United States.
The proposals
were among 50 recommendations made by an advisory panel headed by
Health and Human Services Secretary Mike Leavitt, formed after a
series of recalls of tainted, foreign-made products.
"For many years
we have relied on a strategy based on identifying unsafe products
at the border," Bush said.
Importers may
be required to pay higher bonds to Customs and Border Protection
under the proposals.
New incentives
were recommended for importers that follow secure safety
practices. The board also called for increased training for
inspectors in foreign countries in order to intercept dangerous
imports at their borders.
Return
to front page
Secure Freight
pilot analyzes scan-all impact
U.S. Customs
and Border Protection is already gathering feedback on the
technical performance and commercial impact of its Secure Freight
Initiative in preparation for reporting results of the pilot
program to Congress in April, Richard DiNucci, the program's
director, said Friday.
Congress one
year ago mandated the Department of Homeland Security to conduct
one-year trials at three foreign ports of systems capable of
imaging the contents of containers and detecting whether they emit
radiation to prevent weapons of mass destruction from being
smuggled into the United States through commercial channels.
The
experimental effort to scan 100 percent of cargo containers is
underway at Port Qasim near Karachi, Pakistan; Puerto Cortes in
Honduras and Southampton, United Kingdom. The ports were selected
because of their limited volumes in order to make the test process
manageable. The tests were designed to study the feasibility of
scanning all containers, but Congress did not wait for the results
before ordering in July that all containers destined for the
United States undergo non-intrusive technical exams by 2012.
CBP is
evaluating the quality and timeliness of the data feeds from the
machines it receives at its National Targeting Center, the
container flows as trucks are funneled through gates with the
drive-by equipment, environmental effects on the inspection
equipment and other factors to assess the impact of 100 percent
scanning on trade and Customs operations.
As part of the
information gathering process, CBP has sent teams out to interview
terminal operators and ocean carriers and also plans to survey
shippers who move cargo through the pilot ports, DiNucci said
during a briefing for the Commercial Operations Advisory Committee
in Washington.
The DHS went
beyond the congressional mandate and will test the scan-all
approach in four high-volume ports on a limited basis. Automated
inspections will take place at single terminals at:
• The Port of
Busan, South Korea,
• Salalah,
Oman.
• Hong Kong.
• Singapore.
CBP will use
those test cases to observe how scanning works in different
operating environments with different cargo flows and different
customer service requirements, DiNucci noted.
The Port of
Singapore, for example, guarantees customers that it will move
cargo within specified periods of time.
Some of the
challenges faced by the program so far include 115° temperatures
in Pakistan that cause problems with the images and rainy
conditions in Honduras that require the equipment to dry out
before X-ray or gamma ray pictures can be taken, DiNucci said,
repeating congressional testimony by DHS last month.
CBP likely will
engage an independent advisory board of economists to make sure it
properly identifies and assesses all the performance metrics,
DiNucci said.
— Eric
Kulisch
Return
to front page |
|
 Some
unusual seizures by U.S. Customs during the month of November
More than
3,600 Pounds of Cheese Seized by Border Patrol at Texas
Checkpoint
CBP Import
Specialists Seize $870,000 Worth of Chinese-Made Wearing
Apparel
CBP in Norfolk,
Va. Intercepts Smuggled Socks Worth More than $1.5 Million
CBP at Port of
Los Angeles/Long Beach Seizes Counterfeit Footwear, Jackets
Worth More Than $2 Million
Stolen
Shopping Carts Intercepted by Miami CBP
Not So
Sweet - Almost $1/2 Million in Smuggled Currency
Discovered Amid Chocolate Bars at Nogales, Ariz. Entry
CBP
Indianapolis Intercepts Record Number of Counterfeit Checks;
Thwarts Consumer Scams
Read more on
the CBP website
http://www.cbp.gov/ |
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S
H I P P I N G / T R A N S P O R T A T I O N |
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Carriers Assessing Numerous
Fees to Recover the Cost of Fuel
Trans-Atlantic Conference
Agreement (TACA):
The latest
monitoring of fuel prices continue to show escalating
increases since TACA's previous adjustment in prices in Sept.
of this year. Accordingly, an adjustment of TACA's BAF (Bunker
Adjustment Factor) has been triggered effective from Dec.
16th, 2007 to the following levels:
|
New
rates effective DECEMBER 16, 2007 |
|
Atlantic/Gulf Coast Ports
$
757 per 20ft container
$
1504 per 40/45ft container |
Pacific
Coast Ports
$
1128 per 20ft container
$
2256 per 40/45ft container |
|
Previous rates:
Traffic to / from and via: |
|
Atlantic/Gulf Coast Ports
$
607 per 20ft container
$
1214 per 40/45ft container |
Pacific Coast Ports
$
911 per 20ft container
$ 1822
per 40/45ft container |
Many carriers moving freight to and from Far
East Origins have implemented an Emergency Fuel Surcharge
So far MSC,
APL and Evergreen have decided to follow the trade to apply
the following Emergency Fuel Surcharge (EFS) for cargo moving
from the
Far East
(China, Hong Kong, Taiwan, Japan, Korea, Thailand, Malaysia,
Indonesia, Singapore & Vietnam) to the
USA,
which is a new surcharge applicable on all rates on top
of the current BAF. Please find the quantum as below:
Emergency Fuel Surcharge (EFS)
Emergency Fuel Cost Recovery Surcharge (EFR)
From: From All Asia Origins including Japan To: All USA Destinations Effective date: Varies**
|
20'
container
40'
container
40' high
cube ctnr
45'
container |
US$ 240
US$ 300
US$ 340
US$ 380 |
Start dates vary according to carriers:
***MSC / Mediterranean Shipping: December 22, 2007
***EMC/ Evergreen Marine Corp: January 1, 2008
***APL/ American President Lines: January 1, 2008
**We anticipate that most, if not all, carriers will impose this fee in the next 30 days.
***Start dates subject to change without notice.
If M.E. Dey
is routing your cargo, we will work with you to find the best
alternatives for moving your freight while still meeting your
delivery requirements.
Return to front page |
Click here for a map
of all US ports
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Port of LA has successful implementation of direct shipshore
electric power connection
November 19, 2007
NYK Line and
the Port of Los Angeles have announced the first successful
implementation of a direct shoreside electric power connection to
a container vessel at berth.
The 6.6 KV Alternative Maritime
Powered (AMP) NYK Atlas was connected to shoreside power a
few hours after arriving at Yusen Terminals on Saturday November
10th, and remained connected until its departure three days later.
The NYK Atlas is the first
of thirty-eight NYK-flagged vessels that will be equipped to use
shoreside electric power.
Prior to the utilization of AMP
technology, vessels at berth were powered by auxiliary engines
burning diesel fuel. Over the course of the last three years, both
AMP technology and much cleaner diesel fuel have become available.
According to the Port of
Rotterdam,
moored
vessels are responsible for two thirds of the total
emissions by vessels. These emissions could be reduced by giving
moored vessels access to shoreside power.
While in port, ships use their
auxiliary engines (AE) to produce electricity for loading and
unloading activities. The use of shoreside electricity allows the
resulting emissions from ships' electricity use at berth to come
from power generators supplying the national grid, which are
likely to have lower emission factors per MWh of electricity.
More than a year ago, the European
Commission urged EU member states to encourage more ports to offer
shoreside power for ships at berth.
At the time, there were only a
limited number of ports around the world offering shoreside
electricity to moored vessels.
In 1989, the Port of Gothenburg in
Sweden converted a terminal to service ferries with shoreside
electricity. In 2003, an additional terminal was converted to use
shoreside electricity, this time servicing Ro-Ro vessels.
Three other Swedish ports (Helsingborg,
Pite and Stockholm) and the Belgian port of Zeebrugge also offered
shore-side power.
Today, the Port of Lubeck in
Germany plans to have a pilot project by the end of this year,
and, if the government's tax exemption for electricity supplied to
moored ships goes through, more ports are expected to invest in
these facilities.
The Port of Oakland recently
invested $275,000 to test liquefied natural gas (LNG) mobile
shoreside power - an innovative and environmentally friendly
method of generating electricity for ships at dock. The test has
now been successfully completed.
According to initial estimates, it
would cost the Port of Oakland more than $90 million to modify its
infrastructure for implementing the traditional grid-based "cold
ironing" portwide, since Oakland's electrical grid does not have
the capacity to handle the electricity demands necessary to
accommodate the scheme. The LNG mobile shoreside power is an
affordable and effective alternative.
In the Port of Seattle, Princess
Cruises ships now use shoreside power.
However, "cold ironing" has not
been met with unanimous global approval.
The UK government and some
shipping industry leaders have reportedly slammed EU moves to
implement shoreside power for ships at berth, saying that it is
only one of many ways to achieve emission reduction targets.
UK shipping minister, Jim
Fitzpatrick, told the UK Ports & Shipping Forum that the
government is against developments that would put UK ports and
shipping at a competitive disadvantage.
And it's all very well for the
California Air Resources Board (ARB) to call for cargo ships to
shut down their engines while docked at port and use cold ironing
facilities from 2010, but many shipping companies aren't
impressed.
Apart from the substantial
investment required to equip ships with the appropriate technology
to enable them to tap into shoreside power, it's not really a
practical option for vessels with fast port turnaround times.
According to
Maersk's director of operations, Soren Friis, shoreside power is
not a suitable solution for all ships on a global basis. Instead,
the carrier has adopted low-sulphur distillate fuels for its ships
as they enter California port waters.
Return
to front page
Norfolk
Southern raises the roof on Heartland Corridor tunnels
11/15/2007
Norfolk
Southern has begun the first phase of a three-year engineering
project to increase intermodal freight capacity by raising
vertical clearances in 28 tunnels on its rail line between the
port of Hampton Roads, Virginia and Chicago – known as the
Heartland Corridor.
When the project is completed in
early-2010, containerized freight moving in double-stack trains
will be able to shave off about 200 miles and up to a day's
transit time between the East Coast and the Midwest.
Currently, double-stack trains
must take longer routes by way of Harrisburg, Pa. or Knoxville,
Tenn. The Heartland Corridor goes across Virginia, through
southern West Virginia and north through Columbus, Ohio.
In early-2008, work will have
begun on three other tunnels in Virginia, near Eggleston and
Pembroke, and eight tunnels along eleven miles of track in
southern West Virginia between Antler and Gordon. The remaining
tunnels, all in West Virginia (except for one in Kentucky), will
be modified in two more phases, first proceeding eastward to
Coopers, W.Va, then westward. In addition, overhead clearances
will be increased on seven railroad bridges, three overhead
bridges, three railway signals and three sets of overhead wires.
Meanwhile, Norfolk Southern trains
continue to run through the corridor. Where practical, trains have
been rerouted, permitting sections of track to be closed for ten
hours at a time, five days a week, for the next three years.
Norfolk Southern has formulated
plans to minimize the impact of the construction on coal
customers.
Norfolk Southern, the states of
Virginia, Ohio and West Virginia, and the federal government
formed a public-private partnership to fund the project, which
also includes new intermodal terminals in Columbus, Ohio,
Prichard, W.Va, and the Roanoke, Va. region.
eyefortransport.com
|
Export Penalties
Increase to $250,000 or More
Besides being
something you might scream while bungee jumping from a 1,000-foot
high bridge, IEEPA is the acronym for the International Emergency
Economic Powers Act. On October 16, 2007, the IEEPA Enhancement
Act increased the penalties for export violations under IEEPA to
$250,000 or twice the value of the export transaction, whichever
is greater. I can’t think of a better time than now to ensure that
your compliance side of the house is in order and up to date with
necessary resources.
Click to read article on IBT website
Return
to front page
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HIGHLIGHTS
MISDECLARED CARGO
When the
Hyundai Fortune was almost destroyed by an explosion off the
coast of Yemen last year, a terrorist attack was immediately
suspected. But it soon became clear that cargo inside one of
the containers was probably to blame.
Although
the exact cause of the blast and subsequent fire that gutted
the Hyundai Merchant Marine vessel is not yet known, the
accident has focused far more attention on the growing problem
of wrongly declared or poorly packed cargo, and the risk this
presents for ships and their crew. Some shippers may label
freight incorrectly through ignorance, perhaps unaware of why
it is so important to ensure the manifest contains a detailed
and accurate description of goods to be transported. Others
may be trying to obtain a lower freight rate. But, whatever
the reasons, the result could be cargo stowed in the wrong
part of the ship, with catastrophic consequences.
Accurate
figures about how widespread these malpractices may be are
hard to come by, given the anonymous nature of container
shipping and the rare opportunities to look inside the box.
That is why the MSC Napoli accident has proved such a godsend
for investigators, who had what is probably a unique chance to
examine and weigh the contents of each container rescued from
the beached ship. The findings of that exercise have yet to be
published, although anecdotal evidence suggests that not many
discrepancies were found. Nevertheless, most industry experts
believe non-compliance with the International Maritime
Dangerous Goods Code is a fairly common problem. The
International Maritime Organization has suggested that as many
as 30% of all containers loaded with dangerous goods may have
misdeclared or badly packed cargo inside. Lloyd’s List,
10/18/2007. |
|
NAFTA trade sets record
23 November 2007, CSCB
Trade between the
U.S. and its NAFTA partners Canada and Mexico hit a record value of
$866 billion in 2006. Total volume was approximately 475 million tons,
according to a report released Monday from the U.S. Department of
Transportation's Bureau of Transportation Statistics.
The 9.7 percent
surge in value over the previous year was faster than the average of
7.1 percent per year since BTS started gathering statistics in 2001.
Merchandise trade with The U.S., Canada and Mexico has risen more than
$252 billion or by 41.1 percent between 2001 and 2006. The total value
of U.S. freight shipments with Mexico grew 42.7 percent or 7.4 percent
annually. Goods shipped in trade with Canada grew 40.2 percent or 7.1
percent annually.
Trucks carried 62
percent of this freight measured by value -- $534 billion in 2006.
Rail carried 15 percent, followed by maritime with 8 percent.
Return to
front page
USTR Schwab to
Attend Bali Meeting on Trade and Climate
11/30/2007
WASHINGTON, D.C. –
U. S. Trade Representative Susan C. Schwab will discuss trade-related
aspects of climate change in a meeting of trade ministers in Bali,
Indonesia, December 8-9.
The meeting of
trade ministers from over two dozen countries, hosted by Indonesian
Trade Minister Mari Pangestu, will be held in conjunction with the
Thirteenth Conference of the Parties to the United Nations Framework
Convention on Climate Change (UNFCCC) in Bali December 3-14.
“Trade can be a
significant tool in promoting economic growth and sustainable
development, including strategies to deal with climate change,” said
Ambassador Schwab. “I look forward to discussing with my colleagues
concrete ways in which trade ministers can contribute to and inform
climate strategies, particularly related to lowering barriers to trade
in environmental goods and services in the WTO Doha Round
negotiations.
The Government of
Indonesia issued invitations to the trade and climate dialogue in
September. Trade ministers and other senior trade officials are
expected to discuss potential linkages between trade and climate
change, contributions trade policies can make to mitigate climate
change and ways to ensure that trade and climate policies are mutually
supportive.
Background
Senior trade
officials from more than two dozen countries are expected to attend
the trade and climate change dialogue, including trade ministers from
Argentina, Brazil, China, India, Japan, New Zealand and the Republic
of Korea. Representatives from the UNFCCC, United Nations Conference
on Trade and Development (UNCTAD), the World Trade Organization (WTO),
environmental non-governmental organizations and academic institutions
have also been invited.
USTR Schwab to
Announce New Climate Initiatives for WTO, Including a New
Environmental Goods and Services Agreement (EGSA)
11/30/2007
Washington, DC –
U.S. Trade Representative Susan C. Schwab announced today that the
United States and EU have submitted a ground-breaking proposal as part
of the Doha Round negotiations to increase global trade in and use of
environmental goods and services. The initiative would place priority
action on technologies directly linked to addressing climate change
and energy security.
"WTO Members have
an unprecedented opportunity to address in a concrete and meaningful
way the global environmental challenge of climate change,” said
Ambassador Schwab. “By eliminating tariff and non-tariff barriers to
environmental goods and services, particularly clean energy
technologies, we can lower their costs and increase global access to
and use of these important products.”
The proposal lays
the foundation for an innovative new environmental goods and services
agreement (EGSA) in the WTO and would include a commitment by all WTO
Members to remove barriers to trade to a specific set of
climate-friendly technologies. The initiative was prompted by
President Bush’s initiative earlier this year to seek an agreement
with major economies on a new international climate agreement. The
proposal underscores the importance of liberalizing trade in
environmental goods and services in parallel by recognizing, for the
first time, how the market works in this sector – how goods are
bundled with services. For example, designing more energy efficient
buildings can require consulting, design and construction services, as
well as solar panels for heating.
The United States,
joined by the European Union, proposes to eliminate tariff and
non-tariff barriers to environmental technologies and services through
a two-tiered approach: 1) A first-ever in the WTO agreement on
worldwide elimination of tariffs on a specific list of climate
friendly technologies recently identified by the World Bank; and 2) A
higher level of commitment on the part of developed and the most
advanced developing countries to eliminate barriers to trade across a
broader range of other environmental technologies and an array of
environment-friendly services.
Background:
Global trade in the
environmental goods covered by the U.S. and EU proposal totaled
approximately $613 billion in 2006, and global exports of these goods
have grown annually by an average of 15 percent since 2000.
WTO Members
currently charge duties as high as 70 percent on certain environmental
goods, impeding access to and use of these important technologies. A
recent World Bank study on climate and clean energy technologies
suggests that by removing tariffs and non-tariff barriers to key
technologies, trade could increase by an additional 7-14 percent
annually. A corresponding increase in use of such technologies and
services could contribute importantly to global efforts to address
climate change and energy security. The World Bank report also
concludes that liberalizing trade in these technologies could
facilitate more high-end technology investment.
According to
separate data on environmental indicators available from the World
Bank and World Resources Institute, countries that trade more
environmental goods either have less pollution or consume energy more
efficiently, or both.
A summary of the
proposal is available at
www.ustr.gov.
Return to
front page
Statement by
USTR Schwab on House Passage of the U.S.-Peru Trade Promotion
Agreement
11/08/2007
"Today's vote marks
an historic achievement for the U.S. and Peruvian people. The
U.S.-Peru Trade Promotion Agreement is the foundation of an enduring
partnership with one of America’s key friends and allies in Latin
America. This free trade agreement (FTA) is the first to incorporate
the enhanced labor and environmental protections set out in the May 10
bipartisan agreement between the Administration and the House and
Senate Democratic and Republican leadership. American farmers,
ranchers, manufacturers, service providers, and their employees will
at last have preferential access to this growing market. Peru’s
people will be able to enjoy continued economic growth and greater
economic and political stability by cementing a trade relationship
with the largest market in the world,” said Ambassador Schwab.
“The conventional
wisdom last fall was that the President and Congress could not come
together to make progress on a pro-trade agenda. The Administration
reached out to build on shared principles and sort out honest
differences. At the time – almost exactly one year ago – I said that
divided government means shared responsibility, and that we should
look forward to the future as partners – because the world is
watching.
"Today, the hard
work and risk-taking of many are bearing fruit. I want to express my
appreciation to Chairman Rangel, Ranking Member McCrery, and
Representatives Levin and Herger for their true leadership in proving
the beltway conventional wisdom wrong, showing the world that the U.S.
can lead, and rebuilding bipartisan support for a forward-looking U.S.
trade agenda. I look forward to an equally strong and bipartisan vote
as soon as possible in the Senate, and additional successes on the
Colombia, Panama, and Korea FTAs in the near future.”
China To End
Subsidies Challenged by the United States in WTO Dispute
11/29/2007
WASHINGTON, D.C. –
U.S. Trade Representative Susan C. Schwab today announced that China
has agreed to terminate subsidies that the United States alleged were
illegal under World Trade Organization (WTO) rules.
"I am very pleased
that today we have been able to sign an agreement with China that
should lead to full elimination of these prohibited subsidies. This
outcome represents a victory for U.S. manufacturers and their workers.
The agreement also demonstrates that two great trading nations can
work together to settle disputes to their mutual benefit,” said
Ambassador Schwab.
“Earlier this year,
when China had not removed these market-distorting subsidies after we
repeatedly voiced our concerns about them, the United States took
action. This outcome shows that President Bush’s policy of serious
dialogue and resolute enforcement is delivering real results. While
many challenges still remain, today’s news is concrete and welcome.”
The Memorandum of
Understanding (MOU) is designed to settle a WTO case the United States
and Mexico initiated in February of this year. The United States had
alleged that China was maintaining several subsidy programs prohibited
under WTO rules and that these programs were providing significant
benefits across the spectrum of industrial sectors in China −
including steel, wood products, information technology, and many
others. Mexico also filed as a co-complainant.
Most of the
challenged subsidies were tied to exports, giving an unfair
competitive advantage to Chinese products and denying U.S.
manufacturers the chance to compete fairly with them in the United
States and in third country markets. The remaining subsidies, known as
“import substitution” subsidies, encouraged companies in China to
purchase Chinese-made goods instead of imports. These subsidies were
designed to give Chinese-made goods a significant edge in the China
market over high-quality, fairly priced goods from the United States
and other countries.
Under the MOU,
China has committed to complete a series of steps by January 1, 2008
to ensure that the WTO-prohibited subsidies cited in the U.S.
complaint have been permanently eliminated, and that they will not be
re-introduced in the future. U.S. companies and workers will benefit
from the removal of China’s trade-distorting subsidies much sooner
than would have been possible if the United States had litigated this
case to its conclusion. At the same time, if for any reason China
does not meet its MOU commitments, the United States has the right to
re-start WTO proceedings.
Background:
The United States
initiated the dispute over China's prohibited subsidies at the WTO by
requesting consultations with China on February 2, 2007. Mexico
requested consultations with China on the same measures on February
26, 2007. Following two rounds of consultations, in March and June of
this year, the United States requested in July that the WTO establish
a dispute settlement panel to hear its claims. The WTO established a
panel in late August.
Most of the
subsidies we challenged are tax breaks benefiting foreign-invested
enterprises, which are any firms with even a small amount of foreign
investment, and were made available in every manufacturing sector.
According to a
February 2006 Trade Policy Review report prepared by the WTO
Secretariat, 58 percent of exports of manufactured goods from China
came from FIEs in 2005, and that figure is growing.
Because these tax
breaks are automatically available to the eligible enterprises, it
would appear that a large amount of China’s exports have been
benefiting from these pervasive subsidies.
This is the fifth
dispute that the United States has brought against China at the WTO.
The first one, brought in 2004, challenged China’s discriminatory
tax treatment of imported semiconductors and, like the prohibited
subsidies case, was resolved through a settlement where China removed
the offending measures. The other three cases are currently pending
before the WTO.
The United States,
together with Canada and the European Union, requested a panel in
September 2006 to examine China's regulations imposing local content
requirements in the auto sector through discriminatory charges on
imported auto parts. WTO panel proceedings in that dispute are
underway.
The United States
also requested a panel in August 2007 to examine deficiencies in
China’s legal regime for protecting and enforcing copyrights and
trademarks on a wide range of products. The WTO established a panel in
September and panel proceedings are in progress.
In October 2007,
the United States requested the WTO to establish a dispute settlement
panel in a case challenging China’s restrictions on the importation
and distribution of products of copyright-intensive industries such as
theatrical films, DVDs, music, books and journals. A panel was
established for this dispute on November 27, 2007.
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Eight countries sign Silk Road
agreements
Agreements have now been signed
between eight countries for Central Asia’s $19 billion Silk Road
project. (11/27/2007)
Kazakhstan,
Kyrgyzstan and Tajikistan have signed the agreement with China,
Mongolia, Afghanistan and Azerbaijan.
The ten-year
project, which involves the construction of six road-rail corridors,
will provide a vital link between Russia and south Asia and the Middle
East.
Due to poor
transport infrastructure, the majority of Europe-Asia trade is
transported by sea, with less than 1% going via Central Asia. The Silk
Road project will not only provide a land bridge that will enable
significantly reduced transport costs, but it also calls for improved
border crossing procedures, which are currently slow and cumbersome
processes.
Construction on the
project is expected to begin in 2008, with completion set for 2018.
Quality Control for Chinese Imports
In addition to the
routine export declarations which are required for all goods from
China, some commodities also require a certificate from the Quality
Control and Quarantine Office (QCQ). Although this has been a
requirement for some time, the process is becoming more rigid by the
QCQ as a reaction to product safety concerns.
Thousands of
commodities require commodity inspection which is monitored by the
China Commodity Inspection Bureau (CCIB) in mainland China. Such
goods include lighting, toys, garments, textiles, machinery, shoes,
ceramic ware, cosmetic goods and wooden furniture. The focus of the
QCQ is to ensure product safety.
With the recent
disputes between the US and China regarding safety, the QCQ has made
changes to the process. Previously, either the factory themselves or
a broker representing the factory could apply for the inspection
certificate. For many trading companies who tend not to be registered
for export trade, they have paid a broker to apply for the inspection
certificate. This made it more difficult for the QCQ to have accurate
data on the actual shipper and factory. The QCQ will now only accept
the application from the factory. No longer can a broker in China
apply for the certificate.
In addition to the
time delay involved, there is an associated cost with the inspection
certificate. The cost of the inspection depends on the cargo value
and the volume. The minimum fee is approximately USD100.00.
If you are
importing from China, you can help minimize this cost and delay by
shipping FCL vs. LCL; buying only from a qualified factory which has
authorization to export; and discussing this in advance with your
suppliers. If you are using our services to move your goods from
China, we can assist you with this process. If we are not currently
arranging your transportation from China, contact our Logistics
Division for a quote.
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MWTA Ethnic Social January 24, 2008
Join your
fellow MWTA members for the group’s first event of 2008, a
celebration of Turkish food and culture! Tulip Restaurant, located
in the historic Third Ward neighborhood, will host the event; with
authentic hor d’voures of Chicken Shish Kebab, Grape Leaves,
Mitite Kofte, Lamb Shish Kebab and Salmon - to name a few.
Korkut
Colakoglu, the owner of Tulip, and his chef Hakkan, will speak for
a short time on the Turkish and Mediterranean influence, origins
of spice they use, and how food is integrated within the Turkish
culture.
Cost for the
event is $25.00 per person. It will be a cash bar, with plenty of
wine and other items to choose from. There is ample free parking.
RESERVATIONS DUE BY January 12, 2008
DOWNLOAD RESERVATION FORM
January 24, 2008
4:30-7:00PM
Tulip
Restaurant, 117 N. Jefferson St.,
Milwaukee, WI
Asian Holidays
DECEMBER 05, 2007 -- H.M. THE KING'S BIRTHDAY
DECEMBER 08,10, 2007 -- CONSTITUTION DAY
DECEMBER 31, 2007 -- NEW YEAR'S EVE |
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