We invite you to stop by and visit us at our booth at the
43rd Annual Wisconsin International Trade Conference

GROWING GLOBALLY

May 15, 2007 Italian Community Center - Milwaukee WI

Registration & Information at the MMAC website
http://www.mmac.org/display/router.asp?DocID=757

RECEPTION 4:00 - 6:00 PM  – Italian Community Center Atrium
Compliments of:  Bentley-World Packaging Ltd.
M.E. Dey & Co. Inc.   Pilot Air Freight    U.S. Bank
You may attend without being registered for the conference.

We have two iPod Shuffle winners of our April newsletter quiz question
Tami Miracle from Alliance Laundry and Janell Smith of Lesaffrey Yeast Corporation. 
The ‘minor league’ Brewers televised a game against the Toledo Mud Hens on April 28, 1947.  The Brewers had a close relationship with the Boston Braves (later to be the Milwaukee Braves!) and the Chicago Cubs.  Detroit Tigers and the Chicago White Sox where also acceptable.

U. S.  C u s t o m s

U.S. Now Requiring Truck Drivers to File Electronic Manifests at All Southern Land Border Ports
Thursday, April 19, 2007

Washington—Beginning today, all truck carriers are required to electronically submit manifests detailing cargo and carrier information to U.S. Customs and Border Protection prior to arrival at any southern U.S. land border ports of entry. By allowing the truck carrier to begin import procedures in advance, drivers may shorten administrative time at the border, potentially leading to expedited border crossings for the approximately 21,000 trucks that cross the southern U.S. border each day.

Until now truck drivers have arrived at the border and presented CBP officers with a paper manifest that details information on the cargo being transported, the truck and trailer carrying the cargo and the driver. The manifest must then be processed by CBP while the driver waits. However, when a carrier files an electronic manifest, CBP officers can begin processing the truck before it arrives at the port.

Requiring manifest information to be submitted electronically greatly reduces the potential for errors and improves efficiency, resulting in faster border crossings for legitimate carriers. With e-manifests, time-consuming paper processes are eliminated, truckers spend less time waiting at the border, and goods make their way to market faster—all of which provide positive economic benefits for both the United States and Mexico.

The e-manifest capability is available at all ports featuring the Automated Commercial Environment, the commercial trade processing system being developed by CBP. Since January 2007 e-manifest filing rates at Arizona, California, Texas and New Mexico land border ports have grown steadily, from approximately 5,500 e-manifests filed in January to more than 32,000 in March.

This significant increase in the e-manifest participation rate by carriers on the southern border illustrates that they have been planning and preparing for the mandatory use of e-manifests. Now that the policy is in effect, CBP expects e-manifests to further facilitate and expedite the crossings of legitimate southern border carriers.

For more information on ACE, e-mail CBP.CSPO@dhs.gov or visit the ACE: Modernization Information Systems section of the CBP web site. ACE: Modernization Information Systems http://www.cbp.gov/xp/cgov/toolbox/about/modernization/

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 CBP to Require Use of ACE Truck Manifest System at New Hampshire, North Dakota and Vermont Ports of Entry
Monday, April 23, 2007

Washington—Effective July 12, truck carriers entering the United States through land border ports in Vermont and New Hampshire and at the ports of St. John, Fortuna, Ambrose, Carbury, Noonan, Dunseith, Sherwood, Antler, Northgate, Westhope and Portal in the state of North Dakota will be required to transmit electronic manifests through the Automated Commercial Environment (ACE).

U.S. Customs and Border Protection has developed the ACE program to protect the United States from terrorism while expediting lawful trade.

Currently, filing of ACE e-manifests is required at land border ports on the southern border, in the state of Washington and the ports of Pembina, Neche, Walhalla, Maida, Hannah, Sarles and Hansboro in North Dakota. It will be expanded on May 24 to Michigan and New York, and further expanded on July 12 to Vermont, New Hampshire and the remaining land border ports in North Dakota. Eventually, the transmission of e-manifest through ACE will be required at all land border ports of entry.

Before e-manifest, truck drivers have arrived at the border and presented CBP officers with a paper manifest that details information on the cargo being transported, the truck and trailer carrying the cargo and the driver. The manifest must then be processed by CBP while the driver waits. With e-manifest, CBP officers are able to pre-screen trucks and shipments, and dedicate more time to inspecting suspicious cargo without delaying the border crossings of legitimate carriers.

For more information on this announcement, visit the CBP legal Web site. ( Advance Electronic Presentation of Cargo Information for Truck Carriers Required To Be Transmitted Through ACE Truck Manifest at Ports in the States of Vermont, North Dakota and New Hampshire ) For information on ACE, please e-mail CBP.CSPO@dhs.gov or visit the CBP modernization Web site. ( ACE: Modernization Information Systems )

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Changes at FDA
27 Mar 2007, JOC

At a recent trade association program, Michael Mullen, the assistant commissioner of international affairs and trade relations for Customs and Border Protection, recommended that other federal agencies undertake three specific steps to enhance trade facilitation while at the same time giving due regard to ever-shrinking budgets and staffing and equipment levels.

The steps:
1. Move to a post-entry environment;
2. Move to a paperless environment; and
3. Fully participate in ITDS.

For those not familiar with it, ITDS, the International Trade Data System, is an under-construction computer portal and part of the Automated Commercial Environment through which data would be transmitted to the U.S. government and, by its own programming, the system would automatically share that data with all the participating agencies which have jurisdiction over a particular import transaction.

The goal is to have all the federal agencies which touch on imports [and exports] participate. Some have been slower than others, although the Food & Drug Administration does have a representative on the ITDS board and has for some time.

What Mullen recommended was a really trusted trader program. Later at the same event, we learned how FDA is putting its own spin on trade facilitation. The speaker was David Horowitz, deputy associate commissioner for compliance policy.

There will be one associate commissioner for regulatory affairs and another for compliance. Regulatory Affairs will oversee operations and budget, while Compliance will oversee Policy and Risk Management and the Office of Enforcement, both civil and criminal. An Office of Imports, established under Regulatory Affairs, will oversee Import Operations and the Prior Notice Center. It will centrally manage entry review by setting policy. There is a hint of centralizing the actual review of entries, but that does not appear to be in FDA’s immediate plans.

We have to hope that by centralizing policy, clearer guidance will be given to the FDA’s staff so shipments will move faster and regulations and requirements will be better understood inside and outside the agency.

Even while the reorganization itself is months or more off, FDA’s Import strategy in the near term will be focused on foreign operations, entry admissibility/border operations, domestic operations, information technology and applied sciences and technology.

With these efforts, FDA is beginning a serious move towards risk assessment. The outcome should be to free up the agency’s assets to spend only limited time on compliant goods (generally in the post-entry audit environment), while focusing on high risk and non-compliant goods. Importers, therefore, can expect heightened expectations to provide even more reliable information. FDA has even said that it wants to release compliant goods and have more coordination and collaboration with importers, as well as other regulators (e.g., state agencies) and stakeholders.

In implementing risk management, FDA plans to focus on fraud and economic adulteration (using inferior, cheaper ingredients to cheat consumers and undercut competition), while auditing low risk areas.

Another interesting idea is virtual inspections. … In the face of ever diminishing budgets, FDA is looking at maximizing its IT capability through virtual inspections. The plan is to review documentation and information at FDA headquarters instead of dispatching staff out of the country, and if necessary, FDA will ask the host country to conduct the inspection and advise its results.

As with all such plans, the proof is in the implementation. Nonetheless, FDA is to be applauded for its efforts to modernize, but keep its professional and technical standards in tact and meeting its current high standards.

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Information regarding freight rates 

Many of you have inquired about the pending rate increases scheduled to be implemented by the freight carriers.   It is typical for all carriers to renegotiate their rates and contracts in May of each year.  At this time, all information is still preliminary.  We recognize the impact these increases have on your business.   The following is a list of the projected GRI (General Rate Increase) that is scheduled to become effective on May 15, 2007.   As always, we will act in your best interest in providing the best service options at the lowest available cost. The below costs are  highest possible increases to current rates on file: 

  GENERAL RATE INCREASE (GRI)     Effective: 15May2007 

  From: Asia Origin Ports   Notes 1, 2, 3
  To:   USA Destination Ports and Points as noted below

USD240/20'
USD300/40'
USD340/40'HC
USD380/45'

USD400/20'
USD500/40'
USD565/40'HC
USD635/45'

NOTES:

1. PC-BP means Pacific Coast Base Ports; GROUP 4 US Inland Points in 
US Western States are defined in Rule 1-B1; GRI as shown herein will apply 
on rates applicable to this port group and on rates to individual ports within this 
group, and to Group 4 Points.

2. IPI/MLB means Inland Point Intermodal and MiniLandBridge GRI as shown 
herein will apply on all rates applicable to US Inland Points served via PC-BP, 
and to all rates applicable to US Atlantic & Gulf Ports served via PC-BP.

3. ALL WATER/RIPI means All Water Service to US Atlantic & Gulf Ports 
(USAG) via Panama Canal, and RIPI means Reverse IPI Service to US Inland 
Points via USAG; GRI as shown will apply on rates to these ports and points.

 PSS

 All shipments to the below listed ports shall be subject to the following: 

PEAK SEASON SURCHARGE (PSS) FOR 2007

 From: North East Asia & South East Asia
 To: USA Ports and Points
 Effective: 15JUN2007 thru 28FEB2008

$300 per 20’ container
$400 per 40’ container
$450 per 40’ high cube container
$505 per 45’ container

---

That the Bunker Adjustment Factor (BAF) will be adjusted to below quantum for all shipments originating in Far East (China, Hong Kong, Taiwan, Japan, Korea, Thailand, Malaysia, Indonesia, Singapore & Vietnam) to all USA destinations with effective from 1st of June 2007 :-  

Quantum: - USD 475 / 590 / 665 for 20' / 40' / 40'HC       (Remarks: Currently we apply special BAF at quantum of USD235/310/350 per 20'/40'/40'HC until 15 May 2007 and subject to change afterwards)

If you have any questions regarding the above information please contact your M.E. Dey representative at 414-747-7000

S h i p p i n g

U.S. Ranks Second in World Maritime Container Traffic, According to New BTS Report
Apr 26, 2007  News Report

The United States ranks second in world maritime container traffic with one in nine maritime containers in the world either bound for or coming from the United States, according to "America's Container Ports: Delivering the Goods," a new report from the Bureau of Transportation Statistics (BTS).

BTS, a part of the U.S. Department of Transportation's Research and Innovative Technology Administration, reported that U.S.-container trade in 2005 and 2006 was more than double the trade of a decade earlier. An estimated 46.3 million 20-foot equivalent units (TEU's -- the standard measure for counting containers of various sizes) passed through U.S. ports in 2006, up from 22.6 million in 1996. Two-thirds of the containers are imported into the United States.

During that time, world container trade more than tripled, resulting in a decline in the U.S. share of world container trade from 16 per cent to 11 percent. China has exceeded the U.S. share of world container trade since 1998.

Other findings of the BTS report:

        Container traffic in the United States is becoming more concentrated as larger, faster and more specialized vessels call at the limited number of ports capable of handling them. The top 10 U.S. container ports accounted for 85 percent of U.S. containerized traffic in 2005, measured in TEUs, up from 78 percent in 1995.

        Over half, nearly 55 percent, of U.S. containerized merchandise trade in terms of TEUs passed through west coast ports in 2005, up from 42 percent in 1980.

        U.S. maritime ports are handling larger container vessels, measured by the average vessel size per call. The average size per call of container vessels calling at U.S. ports was nearly 45,000 deadweight tons (dwt) in 2005, up from 38,000 dwt in 2000.

        Overall, nearly 26 million containers of various sizes entered the United States by all modes of transportation in 2005, up 37 percent from 19 million in 2000. Of those containers, more than 15 million entered the nation by truck and rail from Canada and Mexico in 2005 while the remaining 11 million were oceanborne.

"America's Container Ports: Delivering the Goods," is BTS' first stand-alone container report. The report is available at http://www.bts.gov/publications/americas_container_ports/.

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Cargo costs set record as world runs short of ships
28-Apr-2007  Source: business.timesonline.co.u

Cargo freight rates are soaring as the world runs out of ships to satisfy the extraordinary craving for fuel, grain and metals.

The Baltic Exchange’s Dry Cargo Index reached a record high of 6,230 points yesterday as the market responded to the shortage by propelling the cost of shipping to record levels. The Dry Cargo Index’s previous peak was at 6,208 points in December 2004.

The daily rate for the largest vessels, known as capesize – capable of carrying 172,000 tonnes of cargo – reached $106,289 yesterday, while panamax rates, for vessels that can carry up to 74,000 tonnes, reached $47,100 a day.

Jeremy Penn, chief executive of the Baltic Exchange, said that the continuing strength of Chinese demand for coal and iron ore was propelling rates higher. The China factor, “coupled with delays in Australian ports and a weak dollar, have given the freight markets a boost”, Mr Penn said.

China’s increasing impact on the commodity markets was having knock-on effects on third countries. Japan and South Korea are now sourcing raw materials from countries farther away, such as Australia, Brazil and Indonesia, leading to longer sea voyages and leaving fewer ships available for charter.

Increasing volatility in the underlying physical market for vessels is having the additional effect of driving up volumes in the recently created derivatives market. The derivatives market uses Baltic Exchange indices to settle future contracts.

Until the recent surge in activity, the Dry Cargo Index had traded in a range between 500 and 2,500 points from 1985 to 2003.

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BILLS OF LADING

Bills of lading contain the name of the shipper, the importer and a notify party – usually the Customs broker.  C-TPAT security recommendation – do not put the name of the forwarder as the shipper or the importer.  The forwarder may be a second notify.  The name of the shipper should be the entity that prepared the goods for shipping on to you.  This should include the full name and address.

U.S. shipping firms may stop upgrading work in Asia
28-Apr-2007  Source: www.ndtvprofit.com

NEW YORK - Growing pressure on the U.S. government to enforce rules prohibiting overseas upgrading and rebuilding of U.S. ships may start deterring shipowners from skirting the law and having the work done in Asia, industry sources said on Friday.

The U.S. shipping fleet is protected by the Jones Act, which requires U.S. ownership, construction and crew for all coastal waterborne commerce. The Jones Act fleet is estimated to be about 150 vessels.

The Shipbuilders Council of America and Pasha Hawaii Transport Lines has sued the U.S. Coast Guard, Department of Homeland Security and National Vessel Documentation Center at the Eastern District Court of Virginia to stop a three-ship conversion plan in China by shipowner Matson.

"There will be less incentives for shipowners to send their U.S. blue water ships to Asia for dry docking or the five-year survey if they can't do any major upgrading work," said Allen Walker, president of the Shipbuilders Council of America.

"The rules and regulations are very clear: You are not allowed to install a major component in more than a certain percentage of the ship's weight," he said.

The U.S. Coast Guard said last year that it does not inspect the upgraded ships for compliance with the regulations upon the vessels' return from overseas shipyards. The Coast Guard operates under the assumption that the heavy penalty imposed when foreign rebuilding and upgrading is done should serve as a deterrent to potential offenders.

"Hopefully, the lawsuits will make people think a few times before sending their ships overseas for rebuilding and modifications," Walker said. "And hopefully, more ship rebuilding work can be done at the U.S. shipyards."

Walker estimated about 15 ships, or half of the U.S. ships that need dry docking or maintenance work every year, head to Asia because it is cheaper.

During the regular maintenance, which is carried out every five years, some shipowners order upgrading and rebuilding.

A U.S. ship owner said that he was offered by a Chinese shipyard a price of $1.50 a kilogram to replace wasted steel on his ships. The price includes the steel and labor cost. "You can't even get the steel alone for $1.50 a kilogram in the U.S.," he said.

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When classifying goods for export, two schedules may be used.

Exporters may use the Harmonized Tariff system of the United States (HS) or the Schedule B.  For nearly all exported goods, we recommend using the HS.  Since the HS is the only schedule that may be used for imports, it is sensible to use one schedule for both imports and exports.   There are however some HS numbers that may not be used in exports. Below is a table of the sub-headings that should be looked at carefully – you may look up the appropriate Schedule B number through the Department of Census (see following article).  The headings refer to the following general descriptions:  Coal, electricity, tobacco, fluorides, polymers, cotton, copper, turbines, turbojets and propellers, other work trucks, molds, articles for transmission, broadcasting, television, radio signals.  Radar and navigation equipment, parts for planes and compasses.

The Department of Census has upgraded its online Schedule B search engine.
Try it out at http://www.census.gov/foreign-trade/schedules/b/index.html#search
This page has an FAQ on the Schedule B.

S e c u r i t y

CONTAINER SECURITY
CARGO SECURITY AND C-TPAT  Be concerned, be aware.

Secure Freight Initiative Begins Testing at Two Foreign Ports
Wednesday, April 11, 2007

Washington, D.C. – The Departments of Homeland Security and Energy announced today that operational testing is underway in Honduras and Pakistan to strengthen global supply chain security by scanning shipping containers for nuclear or radiological materials before they are allowed to depart for the United States. The tests represent the initial phase of the Secure Freight Initiative announced Dec. 7, 2006, which involves the deployment of nuclear detection devices to six foreign ports.

“Terrorists and criminals use global shipping networks, and we are deploying multiple layers of advanced technology to counter their tactics,” said Homeland Security Deputy Secretary Michael Jackson. “Secure Freight creates a global nuclear detection network with shippers, carriers and foreign allies to head off the worst possible form of attack, a nuclear or dirty bomb on our soil. We are deeply grateful to the governments of Honduras and Pakistan, as well as our other Secure Freight Initiative partners, for their strong leadership on this effort.”

“As we continue our partnership with DHS and our international allies, we continue to strengthen our national security. It is through this important work at foreign ports that we improve the overall security of the global maritime shipping network and hinder terrorists from smuggling in a nuclear device or dangerous material into a U.S. port,” said Thomas D'Agostino, DOE National Nuclear Security Administration acting head. “By teaming up with DHS in this important effort, NNSA is helping to bring our extensive overseas nuclear security and detection expertise to strengthen a key layer of our national defense.”

Secure Freight Initiative testing in Puerto Cortes, Honduras, started on April 2. Tests in Port Qasim, Pakistan, the first port to participate in Secure Freight Initiative, began in March. Four other Secure Freight Initiative ports are expected to initiate tests this year. They are: Southampton in the United Kingdom; Salalah in Oman; Port of Singapore; and the Gamman Terminal at Port Busan in Korea.

Data gathered from overseas scanning of U.S.-bound containers will be transmitted in near real-time to U.S. Customs and Border Protection Officers working in overseas ports and to the National Targeting Center. The data will be combined with other risk assessment information to improve analysis, targeting and scrutiny of high-risk containers. All alarms from radiation detection equipment will be resolved locally, and protocols are being developed with host governments that may include instructing carriers not to load a container until the risk is fully resolved.

DHS and DOE, through its National Nuclear Security Administration, will contribute roughly $60 million to the Secure Freight Initiative for the installation of radiation detection devices and communications infrastructure that transmit data back to the United States. DOE will invest approximately $4 million in Puerto Cortes for detection devices and an integrated communications system that links new assets with existing equipment.

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U.S. Asks China to Help Maintain Global Maritime Security (Yahoo! News)

“The United States [on April 4] asked China to join a global effort to maintain international maritime security, as the Pentagon welcomed Beijing’s navy chief Vice Admiral Wu Shengli on a rare visit,” reports Agence France-Presse. “Admiral Michael Mullen, the US chief of naval operations, called on Wu to consider ‘China’s potential participation in global maritime partnership initiatives’ … Mullen was referring to the ‘1,000-ship Navy’ concept … aimed at building—on a voluntary basis—a transnational network of navies, the shipping industry and law enforcement agencies to respond to crises or emergencies at sea.… Wu ‘expressed interest’ in the 1,000-ship Navy plan.”

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New this week in the Journal of Homeland Security

In “Satellite Control and the Future of Container Security,” Jim Giermanski, Ed.D., professor and director of the Centre for Global Commerce at Belmont Abbey College, as well as chairman of the board of Powers International, Inc., discusses the role of satellites in container security as well as the shortcomings of radio-frequency identification as a container security measure.

Coast Guard Now Tracking All Large Commercial Vessels in U.S. Waters

The U.S. Coast Guard met the April 1 deadline mandated by the SAFE Port Act of 2006 to track all large commercial vessels within U.S. waters. “Beyond the SAFE Port Act, we need to focus our attention on closing other gaps in maritime security, including long-range tracking of vessels outside U.S. waters and coming to grips with potential threats posed by smaller vessels,” said Coast Guard Commandant Thad Allen. The International Maritime Organization’s long-range identification and tracking system will be able to track more than 40,000 ships worldwide by the end of 2008, and the United States will be able to track ships navigating within 1,000 nautical miles of the coast.

SAFE PORT ACT

This bill, signed into law by the President in December, 2006 has important security initiatives that relate directly to the Import process. These security initiatives are primarily focused on preventing the introduction of weapons of mass destruction into the United States.

The SAFE Port Act requires CBP to obtain additional information for improved high-risk targeting. That is, CBP is to seek out advanced information about cargo destined for importation into the United States before it is loaded on ships at foreign ports.  CBP intends to fulfill its responsibility through the enhancement of the 24 hour rule.  Its proposed requirements: so-called “10 + 2” call for an additional dozen data elements describing the shipment 24 hours prior to vessel loading.  10 of the elements describe the shipment, the last 2 describe the vessel stow plan and container status message.  The 10 data elements are:

1. Manufacturer name and address

2. Seller name and address

3. Container stuffing location

4. Consolidator name and address

5. Buyer name and address

6. Ship to name and address

7. Importer of record number

8. Consignee number

9. Country of origin of the goods

10. Commodity Harmonized Tariff Schedule number

The final details and look of the program have not been settled.  However, CBP is on a fast track and wishes to move quickly towards implementation.  We expect this program will be fully operational and an absolute requirement for all ocean imports in the 4^th quarter, 2008.  It is likely that the program, in its final shape, will be voluntary as early as the 2^nd quarter, 2008. 

Because of the similarity of the ten data elements of the Security Filing and entry data, importers may be interested in fulfilling both Security Filing and entry obligations at the same time by filing 24 hours before vessel loading. CBP will consider any comments in this regard within the context of existing statutory schemes and technological capacity.

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Upcoming Events

Governor's Trade Mission Going to China and Japan

Governor Jim Doyle will lead a delegation of Wisconsin business and government leaders to China and Japan from September 7 to 19, 2007. The trade mission will provide participants with opportunities to meet with distributors, potential customers, and key business and government officials. The Governor will also promote investment by Japanese and Chinese companies in Wisconsin.

The Wisconsin Department of Commerce and the Department of Agriculture, Trade and Consumer Protection are jointly coordinating the mission in partnership with the Metropolitan Milwaukee Association of Commerce. For more information on the trip, contact Commerce's Trade Show/Mission Coordinators Jennifer Winner, jennifer.winner@wisconsin.gov, ph: (608) 266-0413 or Christine Stamm, christine.stamm@wisconsin.gov, ph: (608) 264-7824.

CBP- ACE EXCHANGE Buffalo, NY
June 4-6, 2007

Hyatt Regency, Two Fountain Plaza, Buffalo, New York

The ACE Exchange is a free conference offered by Customs Border Protection (CBP) created to provide information on ACE and allow an open forum for communication between CBP and the trade community. 

http://www.cbp.gov/linkhandler/cgov/toolbox/about/modernization/
ace/reports_briefings_events/ace_ex_conf/ace_exchange_four/ace_ex_4.ctt/ace_ex_4.pdf

Registration is now open:

https://secure.thriva.com/Reg/Form.aspx?guid=ec2b8676-
754e-42d7-b44a-c41f5a086015-1507579-17110323110001

Proposed Agenda:

http://www.cbp.gov/linkhandler/cgov/toolbox/about/modernization/
ace/reports_briefings_events/ace_ex_conf/ace_exchange_four/ace_5_agenda.ctt/ace_5_agenda.pdf

We recommend carriers and  importers take advantage of this update on ACE and e-Manifest.  Keep in mind e-Manifest is mandatory in several ports and announced for mandatory deployment with an enforcement phase in the port of Buffalo, NY.

The Bureau of Industry and Security

Outreach and Educational Services Division

Cosponsored by:  South Georgia District Export Council

Presents "Complying with U.S. Export Controls"

May 9-10, 2007   Savannah, Georgia

http://www.bis.doc.gov/seminarsandtraining/SavannahGA_May_07.htm