February  2008       

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

IMPORTS OF INTEREST TO FDA

In general FDA (Food & Drug Administration) controls imports of goods that; are ingested, put on the skin, hold edible goods, concern the eyes, medicines, surgical instruments etc. and articles offering relief of a medical condition. 

All FDA-regulated products are conditionally released pending FDA's determination of admissibility.  The conditional release period is 30 days. In some instances, FDA will need additional time to determine admissibility. The FDA must issue a written or electronic notice of sampling, detention or other FDA action to the 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.

Unless extended by FDA, the conditional release period will terminate upon the occurrence of one of the following events.

1. Issuance by FDA of a notice of refusal of admission;
2. Issuance by FDA that the merchandise may proceed; or
3. Expiration of the 30-day period after release of the goods.

In plain English, FDA has the power to order the redelivery of goods subject to their review EVEN AFTER Customs release is obtained.  Goods released by Customs may be denied entry into the United States for up to 30 days after entry.  Under certain conditions this time period may even be extended. 

The practical commercial realties notwithstanding, failing to redeliver goods back to Customs as a result of an order of FDA can result in a penalty against the Importer equal to three times the value of the cargo.

M.E. Dey can help you control your FDA shipments and ensure compliance.  It is our policy to hold the goods intact before delivery, awaiting FDA “may proceed”.  At your request we will deliver the merchandise awaiting FDA approval, but remind you of the risks of doing this should FDA later issue a redelivery.  You can monitor the status of your FDA release and other entry data at any time by logging on to our Internet tracking program.  We can also send automatic email notifications to individuals at your company with FDA status updates.  If you are having challenges with FDA, or other entry processes, remember M.E. Dey can manage your import clearances in any U.S. Port of Entry. Contact our office for details. 

U.  S.   C U S T O M S

U.S. Customs and Border Protection Mandates Electronic Manifests Nationwide
Jan 7, 2008

Truck carriers will be required to electronically submit manifests detailing cargo and carrier information to U.S. Customs and Border Protection prior to arrival at Alaska land border ports beginning Feb. 11, marking nationwide implementation of mandatory e-manifest filing. CBP Modernization Web site. more...


U.S. Customs and Border Protection Announces Container Scanning Standards

The U.S. Customs and Border Protection Service (CBP) released its anticipated technical standards required of container scanning devices. The specifications constitute a roadmap for device manufacturers to achieve the goals of the container scanning mandate. CBP stated that all such devices must; detect door openings after it has been armed, utilize a non-proprietary/interoperable radio frequency wireless platform, and are able to provide reads at the point of origin, a pre-determined intermediate point and the destination point. The devices must also offer a high probability of detection and a low probability of false alarms or critical failure.

Excluded from the standards are the electronic seals of the type that attach to the locking mechanism on the outside of the container.


Top U.S. ports to get
RFID upgrades

By Alice Lipowicz

The U.S. Customs and Border Protection agency has awarded Unisys Corp. a task order worth as much as $62.2 million over five years to deploy readers and other technologies to support the use of radio frequency identification tags on new identification cards at the U.S. borders. more...

CBP Canine Alerts to Prohibited Fruits in Sealed Cans at Chicago O'Hare Airport
Wednesday, January 16, 2008

Chicago — On January 9, 2008, at Chicago O'Hare International Airport, U.S. Customs and Border Protection agriculture specialists canine handler, with the assistance of her canine partner discovered guavas, a prohibited food product, that were enclosed in sealed tin cans. more...


CBP Unveils New Message System
Tuesday, January 15, 2008

Washington — Users of all U.S. Customs and Border Protection automated trade processing systems can now obtain the latest system-related information via a new administrative message capability, the Cargo Systems Messaging Service. CSMS is the first CBP message database with an electronic mailing service. more...


CBP Issues Proposed 10 + 2 Rule Requiring Additional Cargo Information
Applies to Moves by Marine Vessel Only At This Time

January 02, 2008

U.S. Customs and Border Protection (CBP) published on January 2, 2008 a Notice of Proposed Rulemaking (NPRM) requiring importers and carriers to electronically submit additional information on cargo before it is brought into the United States by vessel. The Security Filing, also known as the "10 + 2" is another step in the Department of Homeland Security's (DHS) strategy to better assess and identify high-risk shipments to prevent terrorist weapons and materials from entering the United States. more...

S E C U R I T Y

US - New travel procedures for border crossers
DHS Press Release Date: January 18, 2008

The U.S. Department of Homeland Security (DHS) reminds travelers that beginning January 31, 2008, border crossers will be asked to present documents denoting citizenship and identity when entering the United States through land and sea ports of entry. This change primarily affects United States and Canadian citizens, who have previously been permitted entry by oral declaration alone, and marks the transition toward standard and consistent documents for all travelers entering the country. more...


Refresher on Export Regulations

Exporters need to remember that the Export Administration Regulations (EAR) are not the only set of rules that can affect their ability to sell to foreign customers. The International Traffic in Arms Regulations (ITAR) cover military products, defense services (consulting services to the military in any way), and technical data. more...

THE WHITE HOUSE Office of the Press Secretary
For Immediate Release January 22, 2008
STATEMENT BY THE PRESS SECRETARY

U.S. Export Control Reform Directives

The President signed a package of directives that will ensure the United States' export control policies and practices support the National Security Strategy of 2006, while facilitating the United States' continued international economic and technological leadership. These new directives will advance a more efficient and transparent export licensing process and enhance dispute resolution mechanisms. They will also help ensure proper levels of control for continued U.S. economic competitiveness and innovation while protecting national security. The Directives are intended to clarify and strengthen the ability of the U.S. Government to monitor and deny U.S. controlled goods, services or technologies to a potential enemy.

The United States continues to face unprecedented security challenges, including terrorist threats from the proliferation of weapons of mass destruction and advanced conventional weapons to unstable regions of the world. The United States also faces economic challenges from the increasing worldwide diffusion of high technology and global markets. As a result, the Administration will continue to ensure that our export control system is focused to meet these challenges.


Fact Sheet:  Dual-Use Export Control Initiative


131 violations of the Export Administration Regulations

WASHINGTON – The Commerce Department’s Bureau of Industry and Security (BIS) announced today that Northrop Grumman Corporation (Northrop) of Los Angeles, Calif., has agreed to pay a $400,000 civil penalty to settle allegations that it committed 131 violations of the Export Administration Regulations, both in its own capacity and as successor to Litton Industries, Inc., which Northrop acquired in April 2001.

“This settlement is a reminder that comprehensive export control compliance is vital and obligatory.  The Bureau of Industry and Security will continue to work with industry to increase awareness of the importance of comprehensive export control due diligence in corporate transactions, particularly in the post-9/11 environment,” said Mario Mancuso, Under Secretary of Commerce for Industry and Security.

The allegations primarily involved unlicensed exports of specially designed components for navigation equipment and module manufacturing data that were to destinations in the Philippines, Singapore, Malaysia, Italy, and the United Kingdom between January 1998 and September 2002.

Northrop voluntarily self-disclosed the violations and cooperated fully in the investigation.  BIS considers voluntary self-disclosures to be a significant mitigating factor when negotiating settlements of administrative cases.

Under Secretary Mancuso praised the Office of Export Enforcement's Washington Field Office for its work on this case.

BIS controls exports and re-exports of dual-use commodities, technology and software for reasons of national security, missile technology, nuclear non-proliferation, chemical and biological non-proliferation, crime control and regional stability. Criminal civil and administrative sanctions can be imposed for violations of the Export Administration Regulations. For more information, please visit www.bis.doc.gov.

S H I P P I N G /  T R A D E 

Take the Time Before You Ship to Canada

Canada is our largest trading partner and offers a market of roughly 25 million people within 100 miles of the USA/Canadian border.  Canadian culture, business practices, attitudes and conditions are similar to the USA making trading relatively simple.  Transportation costs are also considerably less due to the proximity of the market. If you are thinking of shipping to Canada be sure you address the following questions which routinely come up. more...


U.S. Losses During 2007

Catastrophes cost U.S. property/casualty insurers an estimated $6.5 billion in 2007, the Insurance Services Office Inc.'s Property Claim Services unit reported.  That was the eighth-lowest catastrophe loss total in a decade, according to PCS.  PCS reported that 23 catastrophes—which PCS defines as an event that causes $25 million or more in insured property losses and affects a significant number of policyholders and underwriters—affected 41 states last year.  California sustained the largest loss at $1.23 billion, about $1.1 billion of which stemmed from a wildfire in San Diego County.  PCS estimated that last year's catastrophes resulted in about 1.18 million claims, the bulk of which were personal lines claims. Business Insurance, 1/21/2008.


Container shipping industry launches public awareness drive
January 14, 2008

The Container Shipping Information Service was launched January 10 to help people worldwide understand how the humble container box helps them to enjoy the lives they lead in todays world. more...


Census Posts Updated List of HTS Numbers that Cannot be Used to Report Exports

The Census Bureau has posted to its Web site a list of 180 Harmonized Tariff Schedule (HTS) numbers that are invalid for use in reporting exports (either via the Automated Export System (AES) or on a paper Shipper's Export Declaration (SED)) as of January 1, 2008. Click here for list.


Energy Bill Includes Short Sea Shipping

Congress sent to President Bush for his signature the "Energy Independence and Security Act of 2007" (H.R. 6), which contains an initiative to promote short sea shipping, also known as the Marine Highway Initiative. more...

24 shipping lines open website to tell people the container story

TOP container shipping companies have come together to launch the Container Shipping Information Service (CSIS), a website designed to raise global public awareness about the "benefits and impact" the industry has on day-to-day life. more...


To Prevent Box Losses

Shipping lines are taking urgent steps to tackle the problem of containers lost overboard after being heavily criticized by maritime safety authorities over the absence of any industry guidelines. more...


U.S. - Korea Free Trade Agreement

Nearly 95 percent of U.S. exports of consumer and industrial products will enter Korea duty-free within three years of implementation of the U.S.-Korea Free Trade Agreement. All remaining tariffs will be phased out over ten years with the exception of tariffs on four fish products that will be phased out over either 12 or 15 years.


Department of Commerce Announces Signing of ‘Guidelines for U.S.-China High Technology and Strategic Trade Development’

The U.S. Department of Commerce today announced the signing of “Guidelines for U.S.-China High Technology and Strategic Trade Development” (‘Guidelines’) by the U.S. Department of Commerce and China’s Ministry of Commerce (‘MOFCOM’). The Guidelines outline the importance of working cooperatively to achieve the mutual benefits of promoting U.S. high technology exports to China. more...

A S I A  

Worst storm in 50 years hits China

Soldiers shovel snow on the Yangtze River Bridge in Nanjing, Jiangsu province January 29, 2008. Millions of Chinese shivered through power cuts and water shortages on Wednesday and millions more were stranded by snow that has blanketed parts of central and southern China. Picture taken January 29, 2008. REUTERS/China Daily (CHINA) CHINA OUT   more...


China textile export growth dependent on US
07 Jan 2008, CSCB

The value of China's textile imports grew more than 20 percent in the first 10 months of 2007, based largely on increasing volumes to the United States.

The loosening of textile quotas has helped China's exports grow 20.1 percent, even as the government tried to rein in runaway export figures through tighter export control measures.

The growth has largely come from textiles exported to the United States, China's second-biggest textile export market after the European Union. The value of exported textiles to the United States rose 23.3 percent to $21.1 billion, while the value actually went down 0.4 percent to the EU, where China sold $23.3 billion worth of textiles in the first 10 months of last year.


$200 Million Dairy Modernization Project in China

A delegation from Wisconsin's sister-state in China, Heilongjiang Province, was in Madison on Wednesday, January 9 to meet with potential suppliers for a $200 million on a dairy improvement project. Staff from the Wisconsin International Trade Team organized the meeting held at the Wisconsin Department of Commerce. more...


China Growth Record Causes Problems

CHINA, 25 January – CHINA’s 2007 GDP of Rmb25.7 trillion ($3.4 trillion) means its economy grew 11.4%, again faster than in 2006 (11.1%), according to Fairplay sources. The rapid pace of growth has left demand for goods outstripping supply, causing high inflation (almost 5%) and major headaches to the country’s power industry. Despite China’s huge reserves (and a very cold winter), more than 90 power stations had to be temporarily closed because a shortage of coal. According to commentators, the lack of transport infrastructure in China is exacerbating the inflation problem, not shipping. Railways simply cannot cope with demand for goods, despite the massive building programmes that are in place. Shipping benefited from last year's events: Cosco saw an 85% rise in profits to more than Rmb1Bn ($150M). On the ports front, Shanghai handled more than 26M teu, which was up 20% from the year before, while its total throughput of 560M tonnes gave it first place again. Most other ports showed even faster growth, surpassing 30% compared to the year before. The growth rates are slowing, however, as some commentators believe China’s growth will slow to 10.5%.  Lloyd's Register - Fairplay web links

 E V E N T S / S E M I N A R S

Hong Kong and China closures for the New Year’s Celebration & Spring Festival!!!

Most Hong Kong offices and factories are closed February 7-10

Most China offices and factories are closed February 6-12

Mark your calendars – The Chinese year 4706 begins on February 7, 2008. The traditional Chinese celebration is 15 days long. Although the recommended government holiday runs from February 6 to February 12, business is typically slow until the traditional holiday ends on February 21. In addition, many manufacturing facilities have longer holidays because of the movement of the traveling population, estimated to be about one billion people, as they return home for the holidays. Travelers to China should also be aware that just prior and just following the holidays, internal transportation ticket prices will be high and in short supply. It is easy for travelers to become stranded, especially when returning to larger cities unless they have purchased tickets in advance. It is a good idea to send New Year's greetings to Chinese customers and associates, but do not expect to conduct serious business during this time period.

This years holiday follows the worst snow storm in 50 years. Transportation has all but grinded to a halt. The delays will affect freight movement for weeks. We will do everything we can to keep freight moving. Contact out office or check our internet tracking for updates on your freight status.


China's Industrial Machinery / Equipment Demands in the Pearl River Delta Webinar February 26, 2008

Learn about industrial machinery needs in China's eastern region of the Yangtze River Delta. The webinar briefing and Q&A discussion will be led by the US Commercial Service - Shanghai office. Additional details to follow.

for more information, please contact: 1-800-USA-TRADE
Deborah Dirr,  International Trade Specialist,  U.S. Export Assistance Center,  Cincinnati, OH

Tel: 937-259-2522    Email: ddirr@mail.doc.gov

Business Plan Contest Could Finance International Efforts

Technology entrepreneurs within Wisconsin’s international business community can get support for their ideas through the Governors Business Plan Contest. Contestants will have the opportunity to win seed capital, valuable services that will help them launch their businesses, and a Grand Prize worth $50,000. The statewide contest is also a chance to get constructive feedback on a business plan and to help move it from a virtual business to a reality. more...


Exhibit Opportunity in China Open to Wisconsin’s Food and Beverage Companies

Wisconsin’s food and beverage companies interested in expanding their reach into China can benefit from exhibiting at the USA Pavilion at the SIAL China Food Show. The event is scheduled for May 14-16, 2008 in Shanghai, China. more...


Limited Space on South America Mission

There are a limited number of spaces still available on a multi-state trade mission that will travel to Argentina, Brazil, and Chile April 19-29, 2008. This opportunity to meet agents, distributors, and customers in three strong and growing markets is organized by the Council of Great Lakes Governors and the Wisconsin Department of Commerce. For more information about the trade mission or South American markets in general, contact our Latin American specialist, Ms. Susan Dragotta, susan.dragotta@wisconsin.gov, ph: (262)691-5147.

Susan Dragotta, Commerce Latin America Specialist and Outreach Consultant for Southeast Wisconsin


Global Marketplace and South African opportunities

The Business Council Inc. and the Milwaukee World Trade Association will Host:

Mr. Yusuf Omar Consul General of South Africa & Other South African Dignitaries

YOU ARE INVITED! Monday, January 14, 2008 ● 9:00 A.M.

at WE Energies M-7 Business Resource Center, 231 West Michigan

Please RSVP by Wednesday, January 9 2008:

Lou McGlothian at lmcglothian@mmac.org or call (414) 287-4119

HURRY SPACE IS LIMITED!!


Save the Date! Tuesday, May 13, 2008

WI International Trade Conference  Italian Community Center, Milwaukee

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