F e b r u a r y     2 0 0 7   

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

 

Centennial Celebration

M.E. Dey & Co., Inc. presently has a staff of 43.  We have two offices offering nationwide customs clearance & international freight forwarding – even if the freight never crosses our national borders.   We have always offered brokerage services to our customers,  but it takes a large staff to offer the wide array of services that our customers want today.  

In the past, M.E.Dey & Co. consisted of  just a single employee.  This was the case three times – once in the early years, once during the depression and again during World War II.  After World War II, M.E. Dey began a steady increase in employment, accelerating in the last half dozen years. 

Our trivia question this month for our readers is:
How many total employees (including current staff) has M.E. Dey had over the last 100 years?
A $50 gift certificate awaits the winner!  Send your single entry to 100years@medey.com

Last month's question was: In 1907, what was the typical entry fee M.E. Dey & Co. charged to its customers?

The correct answer is $1.00

And the winner of a $50 Target gift card is...
Chuck LaFontaine of Construction Forms, Inc. with his guess of $0.97

Pre-qualify export customers

When selling to foreign customers, we recommend that your sales process pre-qualify customers beforehand.  This prequalification test concerns whether or not our government has prohibited doing business with the potential (or current) customer.  The Department of Commerce http://www.bis.doc.gov maintains several data bases of persons or entities that you may not export product to, or the person or entity has not been verified by our government and you need to call first prior to exporting.

Pre-qualification is not the only step in this process.  We recommend that you qualify the customer again when you secure a sale and finally again when you are shipping the goods.  M.E.Dey & Co, can assist you.  M.E.Dey & Co already verifies the non-inclusion of your customer at the time we are arranging for shipment.  We offer a service to our exporting customers for advance pre-qualification.  Make us a regular part of your sales effort!

U S   C u s t o m s

DANGER: IMPORTATION OF GOODS SUBJECT TO FDA

CBP has clarified ‘conditional Release’ for goods subject to FDA review.  Goods affected are food, drug, medical device or cosmetics.  When these goods are released by CBP, the importer has only a CONDITIONAL release.  FDA has a period of time after Customs release to compel CBP to order redelivery of the goods back into Customs custody.

In most cases, the conditional release period for determining FDA admissibility of any food, drug, device, or cosmetic, will expire upon the EARLIEST occurring of the following events:

  • The date that FDA issues a notice of refusal of admission;

  • The date that FDA issues a notice that the merchandise may proceed; or

  • Upon the end of the 30-day period following the date of release.

Extension of conditional release period for sampling, etc. The FDA must issue a written or electronic notice of sampling, detention, or other FDA action to importer of record within 30 days of the release of the merchandise in order for the extension of the conditional release period to be valid.  

If CBP issues a redelivery notice and the importer fails to redeliver all of the merchandise, will result in the assessment of liquidated damages equal to three times the value of the merchandise involved.   This clarification will go into effect on May 1, 2007


10 + 2 CBP plan to go into effect in 2007

Customs and Border Protection (CBP) plans to start implementing their “10+2” proposal in September 2007.  The 10 + 2 program is a natural growth of the “24 hour manifest rule” under which all cargo inbound to the United States must first be electronically reported to CBP.  The “24 hour manifest rule” provides CBP the ability to deny transit of the cargo to the US or order an exam prior to loading.  The “10+2” proposal is named for the number of  additional data elements that CBP will require at least 24 hours before goods are loaded on an ocean vessel bound for the U.S. (this rule will also apply to Air and Truck imports – but with shorter time requirements).  Read more...

CBP readies C-TPAT for mutual recognition, 3rd party validators
04 Jan 2007, American Shipper

The United States plans in 2007 to internationalize its supply chain security program for importers by mutually recognizing for the first time similar programs in a handful of countries, according to a top U.S. Customs and Border Protection official. Read more...


USCBP - Custom user fee increase effective April 1
January 26, 2007

This document amends the rules dealing with customs financial and accounting procedures by revising the fees charged for certain customs inspectional services under section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and incorporates two technical corrections to the existing fee chart. Read more... (pdf)


Mandatory e-Manifest Filings Set to Begin in Washington, Arizona, North Dakota
(Thursday, January 25, 2007)

Washington, D.C. — Effective today, truck carriers entering the United States through all ports of entry in the states of Washington and Arizona, as well as the North Dakota ports of Pembina, Neche, Walhalla, Maida, Hannah, Sarles and Hansboro will be required to file electronic manifests through the Automated Commercial Environment (ACE).  Read more...


Information from US Customs
22 Jan 2006, CSCB

Information from US Customs on Forthcoming Changes to HS Tariff, effective 3 February 2007.

The US Customs and Border Protection web site has numerous pages about conversion to the WCO 2007 Harmonized Tariff Schedule; these are found on the CBP web site, at:
http://www.customs.gov/xp/cgov/import/
communications_to_trade/world_customs_org/


U.S. RELEASES NEW TARIFF CODES
January 29, 2007  JOC

Customs and Border Protection has published the 2007 Harmonized Tariff Schedule of the United States (HTSUS).

The codes, incorporating the extensive World Customs Organization revisions, have been published in the Federal Register, and will become effective in 30 days.

The final "draft" of the 2007 HTSUS is now available on the Web site of the United States International Trade Commission, at http://www.usitc.gov/tata/hts/bychapter/index.htm

The new version is currently labeled "draft" because the effective date is Feb. 3.

According to Pisani & Roll, an international law firm, Customs may informally provide importers with a grace period of approximately two weeks beyond the effective date.

In the interim, importers should rely on the Preliminary 2007 HTSUS, which is based on the 2006 tariff nomenclature, and also is available on the ITC website at http://www.usitc.gov/tata/hts/bychapter/index_old-01032007.htm

S h i p p i n g


A kite to pull a cargo ship
December 4, 2006 8:23 AM PDT

It won't replace propellers, but an oversize paraglider-shaped kite could help cut fuel costs for ocean-going vessels as it also reduces their emissions. The airborne gear, from a Hamburg, Germany-based company called SkySails, has been tested on smaller ships over several years and now is being fitted for a cargo ship from Beluga Shipping, headquartered in nearby Bremen. The maiden voyage for the 130-meter MV Beluga SkySails is expected in 2007.

The kite for the cargo ship spreads out over about 160 square meters (190 square yards). Unlike the sails of sailing ships, which hang from masts and are only a short distance above the decks, the SkySail runs 100 to 300 meters up and out in front of the ship on a long tether.

"Ours will be the first commercial use in cargo shipping," Verena Frank, project manager at Beluga, told the Reuters news agency. "There will be some teething pains." If the SkySail works well enough, the shipping company plans to add the system one ship at a time to its fleet of some 40 vessels.     Credit: SkySails


Shippers eye Mexico port as West Coast gateway

Thu Jan 11, 2007   By Bill Mongelluzzo   The JOURNAL of COMMERCE ONLINE

MONTEREY PARK, Calif. -- Importers in the United States are looking for gateways to supplement traditional West and East Coast ports, and the Mexican port of Lazaro Cardenas provides a cost-effective alternative, according to an executive with Kansas City Southern Railway. Read more... 

S e c u r i t y

GE UPGRADES CONTAINER SECURITY SOLUTION
January 30, 2007

GE Security announced Tuesday the release of the latest version of its in-container security CommerceGuard System. Read more...


House passes security bill
Thu Jan 11, 2007

A long-promised bill that sharply increases security requirements for airlines and ports passed in the U.S. House of Representatives on Jan. 9.

The bill is the first passed under new Democratic majority in the House and the first of six measures promised for the first 100 hours of the 110th Congress.

By a roll-call vote of 299-128, a bipartisan majority, representatives moved toward enacting recommendations of the 9/11 commission. The bill would require screening of all U.S.-bound containers at foreign ports, as well as more stringent screening for cargo on passenger flights.

More federal funds would be distributed on the basis of need. Airport screening workers would have collective bargaining rights.

Concerns Raised Over Container Inspection Requirements

After House passage of legislation mandating 100% inspection of all cargo containers inbound to U.S. ports, a chorus of industry voices have raised concerns about the cost and practicality of implementation. Delays in cargo processing in an age of "just in time" delivery, the potential resistance of foreign and domestic ports, shippers, and governments has raised the specter of a slowdown or a reduction in the amount of cargo shipped through U.S. ports. In the view of many industry observers the more deliberative pace of the Senate offers some hope to mold the current proposal contained in H.R. 1 into a more manageable process. Also, criticism from the White House, the Office of Management and Budget and the Department of Homeland Security about costs and feasibility added to the hurdles that the House proposal must face before being enacted into law.


BROKERS HIT ALL-INSPECT BILL
January 29, 2007 

The National Customs Brokers & Forwarders Association of America on Thursday said it opposes tougher cargo security measures in legislation recently passed by the House of Representatives. Read more...

A s i a

Implementation of ISPM No.15 from April 2007

Communication from Japan

Based on the result of a pest risk analysis for wood packaging material, Japan amended its Import Plant Quarantine Regulation (MAF Notification No.206, 1950). This amendment to it was published on 6 October 2006 and will be put into force on 1 April 2007.
Read more... (pdf)


U.S. bans luxury exports to North Korea
By Carol Giacomo, Diplomatic Correspondent

WASHINGTON (Reuters) - The United States on Friday banned exports of luxury items to North Korea, including jet skis, iPods, jewelry and fancy cars, in an effort to pressure Pyongyang's communist leaders by denying their reputed high-end taste.  Read more...


Vietnam should speed transportation upgrades, says new NOL report

Thu Jan 25, 2007 By Peter T. Leach   The JOURNAL of COMMERCE ONLINE

Vietnam must accelerate the development of its transportation infrastructure and logistics systems if it is to realize its potential as one of the fastest growing economies in the world, according to a report by Neptune Orient Lines released this week.  Read more...


Vietnam joins World Trade Organization
Thu Jan 11, 2007   By Alan Field  The JOURNAL of COMMERCE ONLINE

After a twelve-year wait, Vietnam on Thursday officially joined the World Trade Organization as the trade body's 150th member.

Vietnam's membership was approved in November. Read more...

H o l i d a y   N o t i c e

FEBRUARY 17-19, 2007 - CHINESE NEW YEAR'S DAY

The PRC is closed for one entire week (18-26 Feb,2007) in celebration of the Chinese new year holiday in China.

We recommend that shipments be expedited because right now, space is extremely tight & we expect vessels to be full the week prior to Feb 18 & after Feb 26.

Keep in mind that some cargo, particular LCL, not shipped prior to the holiday, may not ship until the end of Feb as it takes factories a week to “ramp up” after a week long holiday.  This is why it is important to ship any urgent freight well in advance of Feb 18 as the alternative may be airfreight.

The odds are...

1 in 4 (25%) that a person in America gets no exercise at all.

1 in 37,888 (.002639%) that you will turn 50 years old today.

1 in 7 (14.2%) that you visited New York City last year.

1 out of 150 (.66%) that a person in America is in jail.

1 out of 238 (.42%) that a person will die in an auto accident in their lifetime.

1 out of 290 (.35%) that a person in America is an illegal alien.

8 out of 10 (80%) that you will die in a hospital.

1 out of 150 (.66%) that you use cocaine "frequently

1 out of 550 (.183%) that you will have a severe stroke this year.

1 out of 500 (.2%) that you visited Graceland last year.

1 out of 4,745 (.021%) that you will die falling out of bed.

1 out of 16 (7%) that if you live in the United States, you live in the New York City metropolitan area.

1 out of 694 (.144%) that you ran a marathon in 2005.

2 out of 3 (65%) that you cannot find Iraq on a map, if you are between age 18 to 24.

1 out of 2 (50%) that if you're a smoker who has been diagnosed with cancer, you will continue to smoke.

2 out of 5 (38%) that if you called in sick (in 2004), you weren't actually sick.

1 out of 340,734 (.000293%) that a person will die in a fireworks accident.

1 out of 2 (54%) that you've been caught picking your nose while driving, if you're a man.

1 out of 4 (25%) that if you played in the 2005 Super Bowl, you weighed 300 pounds or more. Twenty years ago, there were only a total of five NFL players who weighed 300 pounds.

1 out of 5 (20%) that if you're eating out, your restaurant meal is purchased from a car.

4 out of 9 (44%) that if you're a federal employee, you're eligible to retire within five years.

1 out of 6 (16%) that if you're an adult living in Arizona, you have been the victim of identity theft sometime in the past five years.

1 out of 5 (20%) that you will "happily" interrupt a business or social meeting to respond to a telephone call or e-mail message.

9 out of 10 (91%) that you have a living grandmother, if you're a 20 year old. A century ago, only 83% of 20-year-olds had a living mother, much less a living grandmother

1 out of 5 (20%) that you believe the best way to get rich is to win the lottery

4 out of 5 (80%) that if you're in a car accident, it involves drivers who are either drowsy or distracted by such activities as chatting on cell phones, eating, or putting on makeup.

9 out of 9 (100%) that the winning quarterback in Super Bowl 6 through Super Bowl 14 wore the jersey number 12.

1 out of 4 (25%) that if you own a PDA, you have lost it at least once

 (all facts assume the reader is an American)