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.

The submission of e-manifests is already required in 15 states. After the new requirement for Alaska goes into effect, e-manifests will be required at all 99 U.S. land border ports.

During the initial enforcement phase in Alaska, CBP intends to exercise discretion by issuing "informed compliance" notices to carriers that arrive without submitting or attempting to submit an e-manifest. These notices will alert truck carriers to a violation of the Trade Act of 2002, which requires submission of advance electronic cargo information.

On April 11, CBP will begin full enforcement of the e-manifest policy. For a short period of time during this phase, CBP plans to continue exercising limited enforcement discretion for carriers that attempt to file e-manifests. Following this period of transition, but beginning no earlier than May 11, CBP will deny a permit to proceed for any truck that arrives at an Alaska land border port without first successfully transmitting an e-manifest for that trip. Monetary penalties of up to $10,000 may also be issued.

For further information on ACE, e-mail CBP.CSPO@dhs.gov or visit the CBP Modernization Web site.  ACE: Modernization Information Systems

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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.

CBP agriculture canine "Dixie" alerted on a passenger’s checked baggage that arrived from Frankfort, Germany. The passenger had not declared any agriculture items or food on their written declaration, but did admit to having the guavas during an interview with the CBP canine handler. Further inspection revealed that the passenger had concealed the eight guavas in two sealed tin cans. The fresh fruit was confiscated and destroyed.

CBP agriculture canines can detect fruits, vegetables, meats or other prohibited items that may carry animal, pests, or plant diseases entering the United States, intentionally or by accident, which can cause serious damage to America's crops, livestock, pets, environment and economy. Provided that the Chicago port of entry is located in the heart of America’s breadbasket adds extra importance to ensuring that these products do not enter the United States. U.S. Customs and Border Protection, Director of Field Operations in Chicago, David Murphy states, “This is another example of the lengths that people will go to smuggle prohibited or restricted items into the U.S. for consumption without taking into consideration the serious potential for harm to U.S. agriculture and our economy. This outstanding detection by our CBP agriculture canine detecting this prohibited item enclosed within sealed cans is evidence that our agriculture canines are doing a great job in protecting this country.”

CBP agricultural specialists have extensive training and experience in agricultural and biological inspection. Their historic mission of preventing the introduction of harmful pests into the United States provides CBP with the expertise to recognize and prevent the entry of organisms that could be used for biological warfare or terrorism.

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.

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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.

"CSMS is a valuable, new tool that will enable CBP to contact the trade community as quickly as possible," said Janet Pence, CBP director for ACE communications, training, outcomes and deployment. "It further strengthens communication through an efficient system for tracking, retaining and distributing information."

CSMS will eventually replace the current message system, which broadcasted information only to users of the Automated Broker Interface. Messages issued under the ABI administrative message system will be converted to CSMS by Feb. 11, making CSMS the only method of broadcast.

CSMS subscribers have two easy ways to view messages — the CBP Web site and e-mail. Subscribers receive updates targeted to their information needs by choosing from 11 subject areas; including Automated Commercial Environment outreach events, ACE reports and electronic truck manifest.

Members of the trade community may participate in CSMS by registering for a free subscription via the ACE Modernization Web site. For more information on ACE and how to subscribe to CSMS, please visit the CBP Modernization Web site.  ACE: Modernization Information Systems

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.

"The Security Filing will improve CBP's ability to target high-risk cargo by identifying actual cargo movements and improving the accuracy of cargo descriptions," said CBP Commissioner W. Ralph Basham. "It will also improve our ability to facilitate lawful international trade by identifying low-risk shipments much earlier in the supply chain."

This initiative strengthens cargo security by making CBP screening more efficient and effective. CBP has implemented a comprehensive, multi-layered cargo security strategy designed to enhance national security while protecting the economic vitality of the United States. These efforts include the 24-hour Manifest Rule, Container Security Initiative, Customs-Trade Partnership Against Terrorism, Non-Intrusive Inspection Techniques, Automated Targeting System, the Secure Freight Initiative, and the National Targeting Center.

The proposed regulation will require carriers to submit "10+2" additional pieces of information in order to enhance the security of the maritime environment. The additional information includes: (1) a vessel stow plan used to transmit information about the physical location of cargo loaded aboard a vessel bound for the U.S; and (2) container status messages, which report container movements and changes in status (e.g., empty or full).

In addition, the NPRM also requires importers to "submit additional information" containing the following 10 data elements:

     Manufacturer (or supplier) name and address

     Seller (or owner) name and address

     Buyer (or owner) name and address

     Ship-to name and address

     Container stuffing location

     Consolidator (stuffer) name and address

     Importer of record number/foreign trade zone applicant identification number

     Consignee number(s)

     Country of origin, and

     Commodity Harmonized Tariff Schedule number

Currently, CBP relies primarily on carrier manifest information to perform advance targeting prior to vessel loading. Internal and external reviews have concluded that more complete advance shipment data would produce more accurate and effective cargo risk assessments. This way resources can be focused on true threats and legitimate cargo can speed through the system as quickly as possible.

The proposed regulation is intended to satisfy provisions outlined in the Security and Accountability for Every Port Act of 2006, which require the submission of additional data elements for improved high-risk targeting.

The NPRM will soon be published in the Federal Register. Once published, persons wishing to comment on the proposed rule may access the Federal e-Rulemaking Portal at the Regulations website and follow the instructions for submitting comments.

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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.

Unisys of Blue Bell, Pa., will install technology upgrades to enable border patrol agents at the 39 largest land border ports of entry to read new RFID cards as well as to read license plates, the agency said in a news release. The new identification cards include the State Department’s upcoming passport card under the Western Hemisphere Travel Initiative, as well as for a hybrid driver’s license and border card to be produced by Washington State and possibly other states and Canadian provinces.

Customs awarded the task order under the Enterprise Acquisition Gateway for the Leading Edge Solutions contract program. It was competed among 16 vendors in a category covering infrastructure engineering design, development, implementation and integration services.

Unisys will support the use of so-called vicinity RFID, which is an ultra-high frequency form of radio frequency that can be read at distances of 20 feet. The RFID tags, embedded in the passport cards and enhanced driver’s license, will be scanned automatically by readers at the border. Homeland Security Department officials have said they selected the long-range RFID because it enables speedier processing of traffic at the borders.

To protect privacy, the RFID tags on the passport card and enhanced driver’s licenses will transmit a reference number that must be matched to a CBP database to obtain personal information on the holder of the card or license.

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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. It is also the start of a more robust and concerted public education campaign, intended to inform travelers of document requirements which will be implemented next year.

''For the safety of the American people, the United States cannot have an honor system at the border,'' said Homeland Security Secretary Michael Chertoff. ''Requiring secure and reliable documentation at our borders will drastically reduce security vulnerabilities posed by permitting entry based on oral declarations alone. As travelers become accustomed to carrying documents to cross the border, and as we move to more stringent documentation requirements, our border officers will be able to more quickly and confidently identify cross-border travelers.''

Beginning Jan. 31 of this year, U.S. and Canadian citizens ages 19 and older should no longer expect that an oral declaration alone will be sufficient to prove identity and citizenship for entry into the country. Instead, travelers will be asked to present documentation from a specified list of acceptable documents when entering the U.S. at land and sea ports of entry. Examples include birth certificates and driver's licenses. A complete list of acceptable documents is available to travelers at ports of entry and is also available at www.cbp.gov. Travelers who do not present one of these documents may be delayed while U.S. Customs and Border Protection (CBP) officers attempt to verify their identity and citizenship. Children ages 18 and under will only need to present a birth certificate.

In order to further secure our borders against illegal entry, the U.S. will no longer be able to admit travelers based on nothing more than a person’s oral assertion of citizenship. During October to December 2007 alone, CBP officers reported 1,517 cases of individuals falsely claiming to be U.S. citizens. Last month, CBP officials determined that an individual falsely claiming to be a U.S. citizen was wanted for homicide in California. This individual was paroled for entry into the U.S. and transported into the custody of the San Diego Sheriff’s Department. Separately, multiple Government Accountability Office and Inspector General reports have highlighted weaknesses associated with oral declarations and substandard documentation.

Standard and consistent documentation is critical for border officials to accurately determine admissibility into the United States. The Jan. 31 change is a step forward from the largely subjective standard that allowed travelers to present an almost limitless array of documents, such as baptismal certificates, to satisfy CBP officers of their citizenship. This change will allow frontline officers to standardize inspections against a narrower class of documents, and CBP has protocols in place to verify the authenticity of suspicious driver licenses and guard against the use of counterfeit or altered licenses.

DHS has maintained a consistent public awareness and information campaign to ensure that the traveling public is aware of the new travel documentation requirements under the Western Hemisphere Travel Initiative (WHTI). The transition beginning Jan. 31 will allow travelers to become accustomed to the need to present appropriate documents. Travelers who apply for a passport card, passport, Trusted Traveler Program cards, or other secure documentation denoting both citizenship and identity in response to the Jan. 31 change will not need to take additional steps to meet the final WHTI requirements upon full implementation in June 2009.

U.S. citizens may begin applying in advance for the new U.S. Passport Card on Feb. 1, 2008, in anticipation of land border travel document requirements. The U.S. Department of State expects that cards will be available and mailed to applicants in spring 2008.

Although DHS was on schedule to begin implementation of the new requirements as early as summer 2008, the fiscal year 2008 Appropriations Bill passed by Congress last month restricts the department from implementing these new requirements until June 2009.

For more information, visit www.dhs.gov or www.travel.state.gov.

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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.

Similar to the Commerce Control List within the EAR, the ITAR lists defense products and services in the U.S. Munitions List (USML). USML categories include firearms, missiles, explosives, military vehicles, aircraft, electronics, and many more, 21 in total. Components, parts, accessories, etc., if specifically designed or modified for use with USML items are also covered by the ITAR. Tooling and equipment for the production of military equipment is also included. A miscellaneous category covers "any article not specifically enumerated in the other categories of the USML which has substantial military applicability and which has been specifically designed or modified for military purposes." Some commercial items, including night vision products and satellites, are covered by the USML, even though they may be for commercial use only.

The major difference between ITAR and EAR is that any product within the ITAR jurisdiction needs an export license from the Department of State for EVERY EXPORT to ALL COUNTRIES. The list of countries for which ITAR licenses would likely be denied is different than for EAR. The list for ITAR includes Venezuela, Vietnam, and China, among many others.

An ITAR license is valid for four years. The license expires when the total value or quantity authorized has been shipped or when the date of expiration has been reached, whichever occurs first. Defense articles to be shipped thereafter require a new application and license. The new application should refer to the expired license.

A manufacturer of a military item, even if just for the U.S. military and not for export, MUST register with the Directorate of Defense Trade Controls. Registration is a prerequisite for applying for a license for export. If a company was not aware of the licensing requirement, and subsequently starts to apply for licenses, the Department of State will likely determine that all prior exports were violations of the ITAR. Therefore, it is recommended that if a company is in this situation, it should submit Voluntary Disclosures with their first license application, under the advice of a trade attorney.

For more information regarding these regulations, see www.pmddtc.state.gov or contact the M.E. Dey Export division at 414-747-7000. Our export team can move your shipments from any location in the U.S. You can learn more about export compliance in general at the upcoming Wisconsin International Trade Conference, May 13, 2008 in Milwaukee.

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

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.

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Fact Sheet:  Dual-Use Export Control Initiative

President George W. Bush announced on January 22, 2008 a series of steps the Administration will take to ensure that dual-use export control policies and practices support the National Security Strategy while facilitating U.S. economic and technological leadership. The United States faces unprecedented security challenges from threats of terrorism to proliferation of weapons of mass destruction and advanced conventional weapons to instability in a number of regions in the world. The United States also faces unprecedented economic challenges from the increasing worldwide diffusion of high technology and global markets. The United States must, therefore, ensure that the dual-use export control system is precisely focused to meet those challenges. To enhance the focus of the dual-use export control system, the President has directed steps be taken on the following:

Foreign End-Users: To adapt to the changing threat environment and the globalization of technology and markets, the dual-use export control system will increasingly focus on foreign end-users of U.S. high technology products. This focus will facilitate trade to reliable foreign customers, while denying access to sensitive technologies to proliferators, international terrorists, and other foreign parties acting contrary to U.S. national security and foreign policy interests.

The focus on foreign end-users includes the Validated End User (VEU) program for reliable foreign companies and imposing additional scrutiny of exports to foreign parties with a record of activities contrary to U.S. foreign policy and national security interests through expansion of the Department of Commerce’s Entity List.

U.S. Competitiveness: Technological and economic competitiveness are key to the U.S.’s long- term national security. As such, the United States needs to ensure that export controls are constantly reassessed to ensure that the most sensitive items are controlled to sustain U.S. economic competitiveness and innovation.

The focus on U.S. competitiveness includes developing a regular process for systematic review of the list of controlled dual-use items (the Commerce Control List), revised controls on intra-company transfers, revised controls on encryption products, and a review of reexport controls.

Transparency: U.S. exporters need sufficient information to support U.S. security and competitiveness goals.

The focus on transparency includes publication of advisory opinions on the Department of Commerce’s website, as well as lists of foreign parties warranting higher scrutiny.

These areas of focus are consistent with the recommendations made by a number of industry groups. The Administration is committed to working closely with industry to implement these reforms to ensure that dual-use exports are controlled to address emerging security threats while maintaining the economic competitiveness of the United States.

The Administration also continues to strongly support reauthorization of the Export Administration Act with updated penalties and enhanced law enforcement authority to ensure U.S. dual-use export control policies can be vigorously enforced.

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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

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 today’s world.

Unsurprisingly, the majority of people do not give the world of container shipping a second thought. Yet, without it, many aspects of modern life would not exist in the way we know it. Container shipping is responsible for making available and affordable many of the everyday products and foods that people worldwide take for granted, from computers to clothing, bananas to beer and TV’s to trainers.

The Container Shipping Information Service has been formed by 24 of the world’s leading container shipping companies to provide information to the public, businesses and the media on this hitherto relatively unknown industry. It also plans to openly address some common areas of general concern and talk about its role in addressing them in particular, the environment, globalization and security.

A first step is the creation of a public website that is also launched today. The website www.shipsandboxes.com is designed to appeal to a broad audience, featuring useful information such a “Did You Know” section and a “Jargon Buster”, as well as covering topical issues.

The Container Shipping Information Service (CSIS) is an organization, formed in 2007, comprising 24 of the largest container shipping companies across the world. CSIS was formed to give the global container shipping industry a voice with which to communicate with the world.

Normally people do not give the world of container shipping a second thought. Yet, without it, modern life would not exist in the way we know it. In this context, the aim of CSIS is to encourage an understanding and appreciation in the wider world about the container shipping industry, and to show the benefits that it brings to our everyday lives.

The CSIS website, www.shipsandboxes.com, provides a one-stop shop of information about the industry, accessible to anyone in the world, so that consumers, businesses, journalists and any other interested parties can find CSIS views, facts and figures at the touch of a button.

We look forward to adding further information to this website in response to questions and feedback that we receive from around the world.

Further information is available on http://www.shipsandboxes.com/

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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. The legislation will provide tax incentives to owners of U.S. documented vessels constructed in the United States and used to transport freight in the "short sea transportation trade", defined as the U.S. coastwise trade or trade between Canadian Great Lakes ports and U.S. ports.  Owners of eligible vessels will be able to defer taxes on income under the Capital Construction Fund (CCF) program administered by the United States Maritime Administration (MARAD).  (The CCF program currently covers only U.S. foreign, Great Lakes and non-contiguous domestic trades.)  The purpose of the short sea shipping initiative is to make the water mode more competitive with roads and rails and thus alleviate congestion and air pollution.  The legislation calls on MARAD to designate short sea shipping projects, which may include both passenger and cargo operations, and work with public and private entities to develop landside facilities and infrastructure to support them.  The broader bill requires refiners to produce 36 billion gallons of ethanol and other biofuels to be incorporated annually into gasoline by 2022.  It also requires a 40 percent increase in fuel economy standards for cars and light trucks such as sport utility vehicles by 2020.  Conservation measures in the bill, such as new efficiency standards for light bulbs, federal buildings and home appliances, reportedly will save U.S. consumers and businesses more than $400 billion and reduce U.S. energy use by at least 7 percent by 2030.  Thacher Proffitt & Wood.

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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.

An ongoing media campaign is also being conducted by the 24 sponsoring CSIS companies to spread the word about the container shipping industry's role in society, a major break from its traditional practice of remaining silent.

The 24 container shipping companies participating in the Container Shipping Information Service initiative are: Atlantic Container Line AB, China Shipping (Group) Company, CMA-CGM, Cosco, Crowley Maritime Corp, CSAV, Evergreen Marine, Hamburg Sud, Hanjin Shipping, Hapag-Lloyd, HMM Line, Maersk Line, MISC, Mediterranean Shipping Co (MSC), MOL, NOL, NYK, OOCL, PIL, United Arab Shipping (SAG), Wan Hai Lines, Yang Ming Marine and Zim.

A statement issued on behalf of CSIS participants said that the industry was prompted by research showing that the single most important step to improve the industry's public image would be to promote itself.

"The choice of goods that consumers have is largely down to the container shipping industry. However, the wider world is not, on the whole, aware of this. So it is important that as an industry that we make them aware and explain the wider role and impact that our industry has on the world," said Adolf Adrion, member of the executive board of Hapag-Lloyd.

The CSIS website can be found at www.shipsandboxes.com

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. A code of best practice, which should be ready this year for distribution to containership owners and operators, is being developed by a committee of experts.  The recommendations will also be sent to the International Maritime Organization, which is taking a close interest in this matter after a series of well-publicized incidents in recent years.  Heading the initiative are the World Shipping Council, which represents most of the global container lines, and the International Chamber of Shipping.  Over the years, container lines have each developed their own in-house procedures, but complications may arise because of the structure of the industry, and the division of responsibility between the ship’s owner and the charterer.  The joint WSC/ICS working party will be looking at industry practices and the exchange of information between all the relevant parties, but not technical issues such as equipment or ship design.  When several hundred containers were lost from a number of boxships in north European waters two winters ago, suspicion about the cause focused on twistlocks.  Several classification societies and flag states are still investigating those accidents, but Germanischer Lloyd said recently that it has been unable to replicate the sea conditions that occurred in 2006 and so has not yet reached any definite conclusions about whether equipment failure was to blame.  The number of containers that have been swept into the sea over the years is not known, with lines often keeping quiet about such mishaps unless ships are spotted by a photographer arriving in port with an obviously collapsed stack or missing containers.  Despite concern about the dangers posed by floating or semi-submerged containers, they do not appear to have been the cause of any accidents.  As containerships get larger, so does the prospect that container losses will become more frequent. 
Lloyd’s List, 1/8/2008.

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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.

A S I A  

 E V E N T S / S E M I N A R S

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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.

Eligible contestants must be individuals, teams, or companies that:

·                     are Wisconsin residents 18 years old or older and who have a business plan that employs or leverages technology. Examples of technology include an eCommerce platform, a life sciences application, or an advanced manufacturing process or system;

·                     are a Wisconsin-based firm and/or plan to locate a business in Wisconsin;

·                     have not already received private equity funding for your idea in its current form. (For the purposes of this contest, private equity funding includes ONLY angel or venture funding. It does not include SBIR/STTR, bank loans or funding from friends or family who are not angels or venture capitalists.)

Note: Previous category winners are not eligible to compete with their same plan; second and third place winners are eligible to compete again, so long as they have not received private equity funding for their plan.

A 250-word abstract must be submitted by January 31, 2008. More information on the contest is available on-line at www.govsbizplancontest.com.

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

By Jen Pino-Gallagher, Wisconsin Department of Agriculture, Trade and Consumer Protection International Marketing Consultant

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.

SIAL China is considered the event not to be missed in Asia for professionals in the food, beverage, wine, and spirits industries. In 2007, more than 22,000 visitors from 87 countries attended SIAL China from across Asia. This was an eight percent increase over 2006.

The cost for the USA Pavilion booth package is $5695.00 for 9 square meters. Funds are available to help Wisconsin companies defray the costs of exhibiting. The Branded Program of Food Export-Midwest provides up to a 50% reimbursement to eligible companies for exhibit and travel fees. Visit www.brandedprogram.org for more information or contact Ms. Lisa Stout, Wisconsin Department of Agriculture, lisa.stout@wi.gov, ph: (608) 224-5126.

In addition to exhibiting, companies can also participate in Food Show Plus! TM services offered by Food Export-Midwest. These services help companies make the most of the tradeshow experience and include: