Governor Doyle presents M.E. Dey & Co. with 2009 Export Award

M.E. Dey & Co, has proudly received the State of Wisconsin’s Governor’s Export Assistance Provider Plus Award.  The award was presented by the Governor at this year’s MWTA International Trade Conference on May 12, 2009.  M.E. Dey was recognized as a leader in export forwarding services, U.S. Customs Compliance practices and Customs Brokerage.  Our approach to partnering with our clients to offer one-on-one counseling and education to assist with corporate growth through  trade was acknowledged as a key supportive role for Wisconsin-area businesses.

This is the third occasion M.E. Dey & Co. has been recipient of the Governor’s Export Award.  Previous recognition was received in 1995 and 2000.

Click here for more photos from the 45th Annual
Wisconsin International Trade Conference

CBP/SECURITY

CBP Interception of the Month

A venomous snake preserved in a bottle of wine is seized from a traveler in Miami. CBP Intercepts Cobra in Wine Bottle Wednesday, May 06, 2009 Miami - Yesterday U.S. Customs and Border Protection officers conducting routine examinations discovered a cobra and other poisonous snakes that were inside a glass bottle containing some form of alcohol.  The shipment was undeclared and within an express mail package. It is believed to be “snake wine” an alcoholic beverage that includes a whole venomous snake in the bottle. The practice originated in Vietnam and is popular in Southeast Asia. The snakes, preferably venomous ones, are not usually preserved for their meat but to have the snake poison dissolved in the liquor. U.S. Customs and Border Protection officers and agriculture specialists are hard at work on a daily basis at several express mail service centers to ensure that incoming packages or mail does not contain anything that will threaten the health and safety of anyone in the United States. “These seizures are an excellent example of how U.S. Customs and Border Protection is actively engaged in intercepting all manner of threats to our homeland. We stand firm and vigilant at the front lines of our borders protecting us all,” said Harold Woodward, director of Field Operations in Miami. return to front page

CBP Issues Implementation Guidance for FDA’s Final Rule On Prior Notice for Food Imports, Which Took Effect May 6, 2009
May 4, 2009

US Customs and Border Protection (CBP) and the Food and Drug Administration (FDA) remind importers and brokers that the November 7, 2008 Final Rule, 73 FR 66294, regarding submission of “Prior Notice” for food imports, and its draft compliance policy guide (CPG) (See Draft CPG October 2008) are effective May 6, 2009. The FDA also states that its compliance policy guide will be issued in final form on the same date, May 6, 2009.

A CBP administrative message provides instructions on OGA-FDA Prior Notice Final Implementation for the 05/06/09 deadline and can be accessed at CSMS# 09-000213 - OGA-FDA Prior Notice Final Implementation 05/06/09

Additional information and training material on FDA’s final rule related to prior notice for food imports is located on our website under “Quick Links,” then “FDA Import Requirements,” and “Bioterrorism Act & Regulations:” with the topic heading: “Overview of Prior Notice Final Rule and Draft CPG Implementing the Bioterrorism Act.”

The FDA’s Department of Health and Human Services has also published a new guide on the Prior Notice requirements. The guide, entitled “What You Need To Know About Prior Notice of Imported Food Shipments: A Small Entity Compliance Guide”, provides an update on the prior notice interim final rule issued under ... prior notice, imports, FDA. 

The information in this article is general in nature, and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.

Copyright © 2009 by Tuttle Law Offices.

Obama seeks $55 billion for DHS in 2010
08 May 2009, CSCB

The Obama administration on Thursday said it is seeking $55 billion to fund the activities of the Department of Homeland Security during fiscal year 2010, up $2.5 billion from the amount appropriated by Congress for the current year.

U.S. Customs and Border Protection would receive $11.4 billion under the budget request, including $9.3 million more for import safety and trade enforcement personnel. Congress appropriated $11.3 billion for CBP in fiscal year 2009.

The Transportation Security Administration budget request is for $7.8 billion, up from the $6.9 billion enacted for this year.

The Coast Guard budget is $9.95 billion, up from $9.6 billion for the current fiscal year.

DHS also seeks an extra $24.7 million to $120.8 million for research into explosives detection technologies to protect civil aviation, mass transit and critical infrastructure.

An increase of $64 million would be used for modernizing background check programs for transportation workers and others. Improvements are expected to coordinate programs and reduce duplicative background checks.

DHS also requested a $10 million increase for the Intermodal Security Coordination Office to support coordinated planning with the Department of Transportation in the development of a plan for funding critical intermodal freight infrastructure needs.

The department also requested an additional $26 million to support its initiative for combating outbound smuggling of cash and firearms to Mexico, including 65 more Customs and Border Protection officers and 44 Border Patrol agents. Another $70 million in new funding is targeted at hiring 349 Immigration and Customs Enforcement agents, analysts and investigators.

The Coast Guard would get a boost of five cutters and two patrol aircraft if the budget is approved.

return to front page

Travel Documents Effective June 1, 2009
ARE YOU READY?
May 14, 2009

The Western Hemisphere Travel Initiative (WHTI) requires U.S. and Canadian travelers to present a passport or other document that denotes identity and citizenship when entering the U.S. It is a result of the Intelligence Reform and Terrorism Prevention Act of 2004 (IRTPA).

The goal of WHTI is to facilitate entry for U.S. citizens and legitimate foreign visitors, while strengthening U.S. border security. Standard documents will enable the Department of Homeland Security to quickly and reliably identify a traveler.

WHTI will go into effect June 1, 2009 for land and sea travel into the U.S.  

U.S. and Canadian Citizens – Single Document Option

• U.S. or Canadian Passport
• U.S. Passport Card (Available Spring 2008)*
• Trusted Traveler Cards (NEXUS, SENTRI, or FAST)*
• State or Provincial Issued Enhanced DriverÂ’s License (when available – this secure driverÂ’s license will denote identity and citizenship.)*
• Enhanced Tribal Cards (when available)*
• U.S. Military Identification with Military Travel Orders
• U.S. Merchant Mariner Document
• Native American Tribal Photo Identification Card
• Form I-872 American Indian Card
• Indian and Northern Affairs Canada (INAC) Card 

return to front page

IMPORT/EXPORT

What information must be included in the prior notice for food imports?

The prior notice must be submitted to the FDA electronically and contain the following information:

 Identification of the submitter, including name, telephone and fax numbers, email address, and firm name and address

 Identification of the transmitter (if different from the submitter), including name, telephone and fax numbers, email address, and firm name and address

 Entry type and CBP identifier

 The identification of the article of food, including complete FDA product code, the common or usual name or market name, the estimated quantity described from the smallest package size to the largest container, and the lot or code numbers or other identifier (if applicable)

 The identification of the manufacturer – including FDA registration #

 The identification of the grower, if known – including FDA registration #

 The FDA Country of Production

 The identification of the shipper, except for food imported by international mail

 The country from which the article of food is shipped or, if the food is imported by international mail, the anticipated date of mailing and country from which the food is mailed

 The anticipated arrival information (location, date, and time) or, if the food is imported by international mail, the U.S. recipient (name and address)

 The identification of the importer, owner, and ultimate consignee, except for food imported by international mail or transshipped through the United States

 The identification of the carrier and mode of transportation, except for food imported by international mail

 Planned shipment information, except for food imported by international mail

Here is a link where you can look at more information – please let us know if you have any questions.  http://www.cfsan.fda.gov/~pn/pnoview.html

return to front page

U.S. Makes Allocations for Dairy Export Incentive Program, Other Countries Object
Wednesday, May 27, 2009

The Department of Agriculture announced May 22 allocations under the Dairy Export Incentive Program for the July 2008 through June 30, 2009, period. According to the USDA, the DEIP helps U.S. dairy exporters meet prevailing world prices and encourages the development of international export markets in areas where U.S. dairy products are not competitive due to subsidized dairy products from other countries. Secretary of Agriculture Tom Vilsack noted that the U.S. dairy industry has seen its international market shares erode due in part to the reintroduction of direct export subsidies by the European Union earlier this year.

A USDA press release states that the DEIP allocations of 68,201 metric tons of nonfat dry milk, 21,097 metric tons of butterfat, 3,030 metric tons of various cheeses and 34 metric tons of other dairy products, as well as individual product and country allocations, will be made available through invitations for offers. Country and region quantities may be limited by the invitation.

In a May 25 statement the G-20 group of countries expressed “deepest concern” over the U.S. decision to “reintroduce dairy export subsidies.” The statement acknowledged that this measure does not directly violate World Trade Organization rules but said it is emblematic of a “murky protectionism” that could weaken the WTO during the ongoing economic crisis. Australian trade minister Simon Crean, whose country is a significant exporter of dairy products, said the DEIP is a “serious backward step” that “could lead to other countries blocking free trade.” New Zealand trade minister Tim Groser added that whether the subsidies are acceptable under WTO rules “misses the point” and that the U.S. and the EU should be setting a better example of resisting protectionist pressures.  Copyright © 2009 WorldTrade Interactive, Inc.

Lacey Act Import Declaration Now Required for Certain Wood Products
Monday, May 4, 2009

The first phase of enforcement of the new Lacey Act import declaration requirement for plants and plant products went into effect May 1. Subsequent phases are scheduled to be rolled out every six months. U.S. Customs and Border Protection recently posted to its Web site guidance on complying with this requirement.

Covered Products. As of May 1, imports of the following products must accompanied by an import declaration (form PPQ 505) containing the scientific name of the plant from which they were obtained, the value of the importation, the quantity of the plant and the name of the country from which the plant was harvested.

• fuel wood (HTSUS 4401)
• wood in the rough (HTSUS 4403)
• hoopwood; poles, piles, stakes (HTSUS 4404)
• railway or tramway sleepers (HTSUS 4406)
• wood sawn or chipped lengthwise (HTSUS 4407)
• sheets for veneering (HTSUS 4408)
• wood continuously shaped (HTSUS 4409)
• tools, tool handles, broom handles (HTSUS 4417)
• builders’ joinery and carpentry of wood (HTSUS 4418)

Expedited Release. The government began May 1 a pilot program for those entities currently participating in Automated Line Release or Border Release Advance Screening and Selectivity whose products require a Lacey Act declaration during the current phase of enforcement. Under this pilot, participants must choose whether or not to remain active in the expedited program. If a participant opts to be removed, no further action is necessary and the C4 code will be inactivated effective June 1. Those who opt to remain in the expedited release program must complete the following two-step process.

• The participant must file with the Department of Agriculture an advance estimated PPQ 505 that includes all required data elements. The genus, species, value and quantity fields should be an estimation of the participant’s planned imports during the next calendar month. The estimated PPQ 505 must be filed on or before the 15th day of the month prior to the reporting period; e.g., the first estimated PPQ 505 will cover expedited release shipments planned for June and will be due by May 15.

• The participant must file with the USDA, within 15 days after the end of the month, a reconciliation that provides information on the actual shipments made during the previous month. The deadline for the first reconciliation is July 15. The USDA will make the format of the reconciliation available at a later date.

This process must be completed monthly during the pilot. The U.S. government will rely on the collected data in its reports to Congress and in determining possible refinements and extensions to enlarge the process and make it less burdensome for all involved.

For further updates please visit http://www.cbp.gov/xp/cgov/trade/trade_programs/entry_summary/laws/food_energy/amended_lacey_act/guidance_lacey_act.xml

Copyright © 2009 WorldTrade Interactive, Inc.

return to front page

  United States Department of Agriculture     Canadian Food Inspection Agency

 Asian Gypsy Moth Alerts
February  2009

United States and Canadian authorities have intercepted live Asian gypsy moth (AGM) egg masses on an unprecedented number of commercial vessels calling on west coast ports in 2008.  This number has not been experienced since the early 1990's.  Ten of these events were severe enough to consider vessels significantly infested resulting in the vessels being ordered into international waters.   In all cases, delays in cargo loading and in routine clearance were significant.  This has resulted in the loss of revenue, as the vessels were unable to conduct cargo operations, missed cargo charters, and have experienced significant schedule delays.  These incidents can be avoided by adherence to strict sanitation standards involving the removal and destruction of all AGM egg masses prior to port arrival in the United States and Canada. 

This situation is a very serious pest concern that could result in widespread pest infestations in U.S. and Canadian forests in a relatively short time.   These recent events are leading U.S. and Canadian officials to believe that AGM populations in seaport areas in Japan and other parts of northeast Asia have risen dramatically and will continue into 2009.  It is imperative that industry representatives collaborate with the U.S and Canadian authorities on measures closely to reduce these incidents as soon as possible.

Both Canada and the US are aware that the shipping industry is interested in quarantine compliance and maintaining schedules.  Both countries are committed to working with industry to support measures that will reduce AGM risk at origin. 

Reports of swarms of moths at various ports in Japan and elsewhere where AGM exists have been received.   Moth flight occurs especially during night operations for cargo loading and unloading.  Bright lights attract the gypsy moths to the vessels.  The periods of risk for Asian gypsy moth flight and infestation range from June 1- August 15 in southern Japan to July 15- October 1 in northern Japan and Far East Russia.  China and Korea have similar flight periods of risk.  

U.S. and Canadian officials share the belief that a major AGM population spike may be occurring in Japan and China, as Russia has experienced the past two years.  We also suspect that this may be occurring in Korea and China.  Populations of gypsy moth worldwide are known to spike almost simultaneously, within 1-2 years of each other. Populations then decline for a couple of years before later collapsing.

U.S. and Canadian officials seek increased collaboration with shipping lines, agents, and associations in order to try to minimize these events with support of port monitoring and vessel pre-inspection techniques.  

It will be necessary for shipping lines to order all vessel crews to conduct intensive vessel inspection to remove (scrape off) and destroy all egg masses prior to entering U.S. and Canadian ports.  The egg masses can be found anywhere on the vessel superstructure and anywhere that doors were open while in port. Locations include barrel containers used for trash or liquid.

Egg masses may also found on the lines used to moor the vessel to the dock, extra lines laying on the deck, very high on the vessel super structure, on air intake vents, vessel smoke stack, on the tracks used for crane movement, on the outside hull, on a container stored on the deck, and inside a wheel/tool house or room on the aft deck. The egg masses will also be seen throughout the vessel meaning on the aft deck, starboard and port sides of the deck and housing, on the bow, and on the main deck and upper decks of the main super structure, cargo hold framing, and other vessel framing including safety rails. The outside of containers must also be inspected.

In significant infestations in 2008, US CBP inspectors have detained vessels with 50 to over 100 live viable egg masses located throughout the ship.  Each egg mass can contain several hundred eggs. Please note that this includes bulk cargo, grain and container vessels, as well as fishing vessels and cruise ships.  Vessels found infested by US or Canadian authorities are not authorized to load or unload cargo until the free of AGM life stages (egg masses, live larvae, and live adults).  

Due to North American coordination to prevent entry of this pest, vessels are informed that they cannot redirect to Canada or Mexico, but can choose to proceed to other foreign locations.  

USDA and CFIA officials are not recommending avoidance of any foreign port. However, due to these extreme conditions, we are recommending that vessels transiting in far east Russia and Japan during designated periods maintain compliance by obtaining certification prior to departure from these countries.  In addition, all vessels calling on China and Korea must insist on high levels of vigilance and self inspection to ensure that no egg masses remain on board the vessel when it arrives in the U.S. and Canada.  The consequences of inadequate preparation are very high.

The purpose of this message is to warn maritime shippers that we have an emerging problem. Please disseminate this information to your membership. Thank you for your help in providing information to the shipping industry.  USDA and CFIA officials will work with industry to produce information on AGM specific to vessel sanitation to support collaboration and minimize vessel clearance time at U.S. Canadian maritime ports.

Please contact the officials listed below for further information or questions.

return to front page

Wisconsin Export Highlights 2008 .pdf

USDA Proposes Rule to Implement Assessment on Dairy Imports
Tuesday, May 19, 2009

The Department of Agriculture’s Agricultural Marketing Service is seeking comments by June 18 on proposed amendments to the Dairy Promotion and Research Order that would implement an assessment on imported dairy products. The 2002 Farm Bill requires the imposition of such an assessment to fund promotion and research, while the 2008 Farm Bill specifies a mandatory import assessment rate of 7.5 cents per hundredweight of milk or equivalent thereof.

According to AMS, the assessments on imported dairy products would be collected by U.S. Customs and Border Protection from importers at the time the entry summary documents are filed. If the importer has adequate documentation concerning the milk solids content of the imported dairy product, the assessment would be based on that; otherwise, a default assessment rate for each HTSUS number would be applied. The assessments collected would be transferred to the Dairy Board to fund the national dairy promotion and research program. The Dairy Board would establish a compliance program and procedures to verify, as necessary, that correct assessments have been paid by importers.  Copyright © 2009 WorldTrade Interactive, Inc.

return to front page

USDA Bans Imports of Plants that Host Tomato Viruses
Monday, May 18, 2009

The Department of Agriculture’s Animal and Plant Health Inspection Service has issued a federal order that, effective June 1, will prohibit the importation from all countries except Canada of specific plants used for planting (not including seed) that are hosts of tomato torrado virus and tomato severe leaf curl virus. APHIS states that this action is necessary because the introduction and establishment of these viruses pose a serious plant pest threat to U.S. agriculture. The ban will remain in effect until a pest risk analysis has been completed and appropriate effective mitigation measures have been established.  Copyright © 2009 WorldTrade Interactive, Inc.

EPA Fines Company for Improper Imports of Pesticides
Monday, May 18, 2009

The Environmental Protection Agency announced May 14 that a company has agreed to pay $21,840 to settle charges that it imported pesticides without filing notices of arrival as required under the Federal Insecticide, Fungicide and Rodenticide Act.

Companies must submit detailed information on the NOA form to allow the EPA to determine if the pesticide is approved for use in the U.S. or meets one of the few allowable exemptions. Products not registered with the EPA for use in the U.S. are denied entry and destroyed by U.S. Customs and Border Protection or immediately exported back to their country of origin under CBP supervision.

The EPA will not approve pesticide imports unless the product being imported has been tested to show that it will not pose an unreasonable risk when used according to directions. The agency also makes sure that pesticide labels provide consumers with necessary information to use the products safely. Pesticides that have been registered will have an EPA registration number on the label. Copyright © 2009 WorldTrade Interactive, Inc.

return to front page

US Retail container volumes to remain weak
08 May 2009, CSCB

Import cargo volume at the US major retail container ports improved in March over February’s seven-year low, but was still at its lowest level in five years and remained below the 1 million mark, according to the monthly Port Tracker report released Thursday by the National Retail Federation and IHS Global Insight.

U.S. ports surveyed handled 984,633 TEUs in March, the most recent month for which actual numbers are available. That was up 16.8 percent from February’s 842,882 TEUs, which was the lowest level since March 2002, but still down 15 percent from March 2008.

“The monthly numbers are on their way back up but that’s really just the shipping cycle we see every year whether we’re in a recession or not,” IHS Global Insight Economist Paul Bingham said. “The real rebound is still in the future. Import container traffic is projected to continue to be weak for the next several months due to the underlying reduction in demand for goods.”

The Port Tracker report forecasts through September are as follows:

• April, 1.04 million TEUs, down 18 percent from the same 2008 period.
• May, 1.06 million TEUs, down 19 percent.
• June, 1.09 million TEUs, down 16 percent.
• July, 1.12 million TEUs, down 15 percent.
• August 1.15 million TEUs, down 15.8 percent.
• September 1.13 million TEUs, down 17 percent.

return to front page

EU set to extend anti-piracy coverage
25 May 2009

THE EU is set to extend its anti-piracy operations off Somalia to extend out into the Indian Ocean as far as the Seychelles and is also likely to keep its forces in the area into next year at least.

A meeting of EU defense ministers on Monday reached an agreement in principle on the issue and French junior Defense Minister Jean-Marie Bockel was quoted as saying extending the area of operations would ideally require the deployment of two more ships.

Differing numbers of EU warships are quoted by the news agencies as operating in the area . Reuters puts the military force at 13 vessels and three maritime patrol aircraft. The US Navy also ahs a strong presence while warships from several other states, including China and Russia, also ptrol the waters around the Fulf of Aden and the northern Indian Ocean.

Meanwhile it has been reported that the Malta-flag bulker Patriot has been released by pirates Somali pirates and that her 17-strong crew are safe.  MARITIME GLOBAL NET NEWSLETTER 

Shippers “should challenge bill of lading terms”
25 May 2009

SHIPPERS can challenge the terms of bills of lading issued by carriers, Chris Welsh, General Manager of Policy Campaigns, Freight Transport Association told delegates to the latest Shippers’ Voice seminars.

Bills of lading (BL) terms are often assumed to be non-negotiable and based on mandatory law. “In fact, they are mostly contractual stipulations that are principally of benefit to the carriers – after all, they are the carrier’s terms,” he asserted.

Mr Welsh says that shippers need to strike a reasonable balance, and take legal and insurance advice, but they should not be afraid to challenge the carrier’s (i.e. shipping lines) terms – especially now that carrying capacity exceeds demand.

Andreas Holter, a supply chain manager for a metal recycling company, says there are a few simple rules for those who buy global transport services.

“Make sure you control the tender process so that you can include all the elements that are important to you – and you can compare like with like. This is a key step in lowering your dependence on any one carrier,” he told the Shippers’ Voice delegates.

Measuring performance is another essential rule. “Obviously we have to make sure that we give the carriers all the relevant information they need to do the tender, but once they have contracted to deliver a certain level of service, then we should make sure that they do what they promise.”

Mr Holter says that by keeping records of delivery times, average length of delay etc, he can build up a picture of service that helps him arrange his shipments. He can also use the data to put pressure on the supplier to improve the service levels. MARITIME GLOBAL NET NEWSLETTER

return to front page

WORLD TRADE

U.S., Angola Sign Trade and Investment Pact
Wednesday, May 20, 2009

The U.S. and Angola signed a bilateral Trade and Investment Framework Agreement May 19 in Washington, D.C. The TIFA provides for the creation of a U.S.-Angola Council on Trade and Investment, which will address issues such as trade capacity building, intellectual property, labor and the environment, and enhancing the participation of small and medium-sized enterprises in trade and investment. The council will also establish an ongoing dialogue that will help increase commercial and investment opportunities by identifying and removing impediments to trade flows.

According to a press release from the Office of the U.S. Trade Representative, Angola is fully engaged in reconstruction efforts following 40 years of conflict, including a 27-year civil war that ended in 2002. Angola has been eligible for benefits under the African Growth and Opportunity Act since 2003. In 2008 U.S. exports to Angola totaled about $400 million while imports from Angola were valued at about $4 billion, and about 95% of two-way trade is related to the oil and gas sector. Copyright © 2009 WorldTrade Interactive, Inc.

return to front page

Legislative Update: Expanded Trade Preferences Possible, Export Controls Reform Moves Ahead
Tuesday, May 26, 2009

Congress took a number of trade-related actions last week ahead of its Memorial Day recess. A bill to extend trade preferences to additional countries was reintroduced, and a foreign relations bill that includes export reform measures and increased resources for intellectual property rights enforcement began moving through the House. Efforts to advance a miscellaneous trade bill and legislation implementing the U.S.-Panama Free Trade Agreement are continuing as well.

Trade Preferences. Sen. Dianne Feinstein, D-Calif., introduced May 21 a bill (S. 1141) that would extend U.S. trade preferences to certain least-developed countries. The Tariff Relief Assistance for Developing Economies (TRADE) Act of 2009, which was also introduced in the previous Congress, would grant preferential trade benefits equivalent to those under the African Growth and Opportunity Act to 14 LDCs – Afghanistan, Bangladesh, Bhutan, Cambodia, Kiribati, Laos, Maldives, Nepal, Samoa, Solomon Islands, East Timor, Tuvalu, Vanuatu and Yemen – not already covered by U.S. trade preference programs, plus Sri Lanka. These 15 countries are already eligible for Generalized System of Preferences benefits, but the TRADE Act would enable them to receive duty-free treatment for exports of goods excluded from GSP coverage, including textiles and apparel, watches, electronic articles, steel articles, footwear, handbags, luggage and glass products. This treatment would be effective as of Jan. 1, 2009, and would generally remain available through Dec. 31, 2019.

Congress could also act this year to extend trade preferences to Afghanistan and Pakistan and Paraguay. A CongressDaily article cited Rep. Chris Van Hollen, D-Md., as saying a bill to allow duty-free access to goods produced in Reconstruction Opportunity Zones in Afghanistan and Pakistan could be attached to the foreign relations authorization bill now moving through the House or may be incorporated into the LDC measure.

With respect to existing preference programs, the Andean Trade Preference Act is scheduled to expire Dec. 31. Trade that is currently eligible for duty-free entry into the U.S. under the ATPA risks losing those benefits if the program is not renewed. Businesses involved in trade with ATPA beneficiary countries should therefore begin efforts to ensure that these preferences are not allowed to expire.

MTB. Supporters are working to maintain momentum toward congressional passage this year of a miscellaneous trade bill that lowers or suspends tariffs on imports of key manufacturing and production inputs that are not made in the U.S. or where there is no domestic opposition. Several business groups recently urged the Senate Finance Committee to begin work on the MTB, pointing out that the House Ways and Means Committee is already drafting its version of the bill and that a markup is anticipated in the near future. Click here for more information on how your company can get involved in this process.

FTAs. The Senate Finance Committee held a hearing last week on the U.S.-Panama FTA, which the Obama administration has not yet submitted to Congress due to outstanding concerns about that country’s labor rights and bank secrecy laws. See related article this issue for more details.

Export Controls. According to a press release from the office of Rep. Don Manzullo, R-Ill., a two-year foreign relations authorization act approved May 21 by the House Foreign Affairs Committee includes the following provisions designed to “modernize the federal government’s export control policy by strengthening national security and helping American companies sell more defense-related goods overseas.”

• requires the White House to conduct a comprehensive and systematic review and assessment of the U.S. arms export control system and report to Congress within 18 months

• requires the Directorate of Defense Trade Controls to have at least one licensing officer for every 1,250 applications by fiscal year 2011 to prevent future license processing backlogs

• requires DDTC to assign no less than three individuals by FY 2010 to review applications for commodity jurisdiction determinations

• creates a performance goal of no longer than 60 days to process a defense trade license

• creates a performance goal of no longer than 30 days to process a defense trade license for close allies

• establishes a seven-day processing time for defense trade licenses for close allies in support of combat operations or peacekeeping or humanitarian operations with U.S. armed forces

• increases the transparency of commodity jurisdiction determinations by requiring them to be published on the State Department’s Web site

• creates a special licensing authorization for U.S.-manufactured spare and replacement parts or components in connection with defense items previously lawfully exported to close allies

• increases the representation and augments the input of the Defense Trade Advisory Group into the State Department’s defense trade agenda

• adds South Korea and Israel to the list of NATO+3 countries receiving expedited consideration for the export of U.S. defense items

• strengthens export promotion activities for small businesses and manufacturers by designating a small business liaison at the State Department and adding a small business Web site to the department’s homepage

IPR Enforcement. The foreign relations authorization bill would also increase resources and training for intellectual property rights enforcement, especially in countries identified by the U.S. government as lax in enforcing those rights. Specifically, the bill directs the secretary of state to appoint 10 IPR attachés and to give priority in designating the embassies or other diplomatic missions to which those attachés are assigned to countries where their efforts will have the greatest potential benefit (e.g., countries identified in the Office of the U.S. Trade Representative’s annual Special 301 IPR report).

Other. Other trade-related bills that have been introduced recently include the following. (Note that the text of these bills can be found on the Library of Congress’ Web site.

• S. 1142 – to amend the Federal Food, Drug and Cosmetic Act with respect to inclusion of effectiveness information in drug and device labeling and advertising
• H.R. 2542 – to amend the Internal Revenue Code of 1986 to repeal the shipping investment withdrawal rules in section 955 and to provide an incentive to reinvest foreign shipping earnings in the United States
• H.R. 2595 – to restrict certain exports of electronic waste
• S. 1089 – to facilitate the export of United States agricultural commodities and products to Cuba
• H.R. 2518 – to prevent undue disruption of interstate commerce by limiting civil actions brought against persons whose only role with regard to a product in the stream of commerce is as a lawful seller of the product
• S. 1076/H.R. 2480 – to improve the accuracy of fur product labeling
• S. 1043 – to require the U.S. Trade Representative to negotiate a remedy for the equitable border tax treatment on goods and services within the WTO by Jan. 1, 2010
• S. 1027/H.R. 2378 – to clarify that fundamental exchange rate misalignment by any foreign nation is actionable under U.S. countervailing and antidumping duty laws
• S. 1021 – to provide an enhanced credit for research and development by companies that manufacture products in the U.S.
• H.R. 2359 – to ensure parity between the temporary duty imposed on ethanol and tax credits provided on ethanol.  Copyright © 2009 WorldTrade Interactive, Inc. 

return to front page

USTR Wants Input on WTO Case on Mandatory Country of Origin Labeling
Friday, May 22, 2009

The Office of the U.S. Trade Representative has provided notice that Canada and Mexico are moving ahead with their World Trade Organization cases against U.S. mandatory country of origin labeling requirements for various agricultural products. USTR is inviting written comments from the public concerning the issues raised in these disputes by July 1.

Canada and Mexico allege that the COOL provisions in the 2008 Farm Bill, which were implemented by a Department of Agriculture final rule published on Jan. 15, 2009, appear to be inconsistent with the General Agreement on Tariffs and Trade 1994 as well as certain provisions of the WTO agreements on Technical Barriers to Trade, the Application of Sanitary and Phytosanitary Measures, and Rules of Origin. They are also concerned about a Feb. 20 USDA letter that reportedly encourages affected parties to take steps that go beyond the requirements of the final rule.  Copyright © 2009 WorldTrade Interactive, Inc.

Surveys Find Support for Trade on the Rise Despite Economic Downturn
Friday, May 15, 2009

Several recent surveys have found that public support for open trade has increased substantially over the past year despite the ongoing global economic downturn. The shift in opinion could aid the Obama administration’s efforts to implement pending free trade agreements with Colombia, Panama and South Korea.

A survey conducted March 31-April 21 by the Pew Research Center for the People & the Press found that 44% of respondents feel FTAs like NAFTA and the policies of the World Trade Organization are good for the U.S., up from 35% a year ago. Slightly more than a third (35%) say such agreements and policies are bad for the country, down from 48%. Interestingly, the public expressed more support for unspecified FTAs with other countries than it did for FTAs “like NAFTA and the policies of the World Trade Organization” specifically.

The survey found that the increase in support for FTAs and WTO policies has been particularly notable among Democrats, with the percentage of those in favor rising from 34% to 47% over the past year. Only 30% of Democrats view these agreements and policies negatively, down sharply from 50% last April. Opinion among Republicans has remained more stable: 41% see FTAs as a good thing, down just slightly from 42%, while 38% view them as a bad thing, a five percentage point decline.

According to a Pew Center press release, other recent national surveys have also found increases in support for foreign trade over the past year. In a survey conducted April 3-5 by CNN/Opinion Research Corp., 56% said they viewed foreign trade “more as an opportunity for economic growth through increased U.S. exports,” up from 41% in June 2008, while 40% said they viewed foreign trade as “a threat to the economy from foreign imports,” down from 51%. In an April 1-5 survey by CBS News/New York Times, 66% said “trade with other countries – both buying and selling products” is good for the U.S. economy, compared to the 58% who expressed that view in March 2008. Copyright © 2009 WorldTrade Interactive, Inc.

return to front page

ASIA 

China's Exports Sink 22.6 Percent in April
12 May 2009, CSCB

China's exports plunged 22.6 percent in April from the year before in the sixth straight monthly decline, the government said Tuesday, while a torrent in bank lending meant to ward off the economic downturn pushed up spending on factories, real estate and other fixed assets.

April's decline in exports, to $91.9 billion, was bigger than the 17 percent drop in March and suggests China's trade sector has yet to see much relief from the prolonged drought in demand brought on by the global downturn.

China's economy the world's third-largest after the U.S. and Japan relies heavily on exports for growth.

Imports fell 23 percent to $78.8 billion, the Customs Administration reported, putting China's trade surplus for April at $13.1 billion. That compared with an $18.6 billion surplus in March.

return to front page

China Signs Deals worth US$10 Billion with U.S. Companies

At yesterday’s forum hosted by the U.S. Chamber of Commerce and the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, Chinese companies signed 32 contracts with American companies worth US$10.6 billion. These companies included Ford Motor Co., International Business Machines Corp., Dell Inc., Cisco Systems Inc., Hewlett-Packard Co., Microsoft Corp., EMC Corp., Oracle Corp., Sun Microsystems Inc. and Amway Corp.

The new round of deals comes at a time when the slowing U.S. economy has led to dropping export demand in China. By the last quarter of 2008, the United State’s deficit decreased by US$132.8 billion. A senior vice president for Cisco in Beijing, John Ng, told Bloomberg said in that his company’s contracts with China Mobile, China Telecom Corp. and China Construction Bank Corp. was worth an estimated US$300 million. The contract signings also come when foreign businesses working in China have recently warned about rising protectionism in the country. The American Chamber of Commerce in China said in its 2009 White Paper, that protectionism was a top concern this year and that national policies using stimulus money is mostly limited for Chinese companies.

Beijing has always maintained restrictions on foreign investment in industries like the railway system, postal service, autos, chemicals and information technologies where it wants to nurture local or state-owned companies. Moreover, analysts told WSJ that some form of protectionism is built into China’s decentralized political structure that affects both local and foreign companies. Due to decentralization, even provinces will practice local protectionism and will ban purchases made from outside the province.

China Briefing (http://www.china-briefing.com/news/2009/04/28/china-signs-deals-worth-10-billion-with-us-companies.html)

Chinese Baby Furniture Company to Pay $40,000 for Smuggling Protected Wood
Wednesday, May 6, 2009

The Department of Justice announced May 1 that a manufacturer of wooden baby furniture located primarily in China has agreed to pay a $40,000 fine and serve three years of probation to settle charges that it smuggled into the U.S. cribs containing an internationally protected tropical hardwood known as ramin. The corporation must also pay for an advertisement in a publication in China, and a second in a publication in the U.S., advising other members of the industry of its actions and their consequences.

According to the DOJ, ramin is found in tropical forests in parts of Southeast Asia, including Indonesia and Malaysia, that serve as habitat for endangered orangutan. Indonesia has one of the highest rates of deforestation of any county, much of it due to illegal timber harvest. The country’s government has taken a number of measures in response, including listing ramin in Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora since Jan. 12, 2005. As a result, a valid export permit from the country of origin, and a valid re-export certificate from any country of re-export, must be obtained prior to importing ramin into the U.S.   Copyright © 2009 WorldTrade Interactive, Inc.

return to front page

EVENTS/SEMINARS

http://www.icewi.org/

JULY 15, 2009 - LaSure's Banquet Hall, Oshkosh: LATIN AMERICA and all it's splendor will be covered, pretty much from A-Z. We'll have fun during roundtable discussion where members can contribute their experiences in exporting there as well as other regions and topics. Yes, we'll include a round of 9 holes at the local Golf Course.

ICE is administered by Wisconsin Credit Association

Focused Trade Missions for Specialty Food are scheduled to visit
Tokyo, Japan, October19-21 and Seoul, Korea, October 21-23.
Businesses can participate in one or both Specialty Food Trade Missions to see the market firsthand.

• pre-show competitor analysis,

• targeted invitations to qualified buyers for one-on-one meetings,

• technical (food industry) interpreters,

• chef demonstration using participating companies’ products,

• in-market briefing,

• local retail tours, and

• assistance with qualifying leads from the show.

For more information, contact Ms. Lisa Stout, Agricultural Marketing Consultant at the Wisconsin Department of Agriculture, Trade and Consumer Protection, lisa.stout@wisconsin.gov, (608) 224-5126.

return to front page

Groundbreaking Mission to Libya and Algeria
November 4–8, 2009

Increasingly market-driven economies, vast capital reserves, and ambitious infrastructure projects make Libya and Algeria promising markets for U.S. exporters. The U.S. Department of Commerce's first executive trade mission to Tripoli, Libya and Algiers, Algeria will promote U.S. products and technologies in "best prospects" sectors, including, but not limited to, energy, environmental protection, information technology, infrastructure, and safety and security.  The application deadline is August 1, 2009.  For more information, contact Lisa Huot at (202) 482-2796, northafricamission@mail.doc.gov.

MWTA Wine Tasting and Social Event

Thursday, June 18 2009, 5:30pm - 9:00pm

MSOE’s Grohmann Museum   1000 N. Broadway, Milwaukee.

The Milwaukee World Trade Association is having their annual wine tasting and social. The cost of this event is  $30 after June 4, with a registration deadline of June 11. This event is one of MWTA’s most popular events and provides a great opportunity to network. You are encouraged to bring a guest. Event details and a registration information at www.mwta.com. Contact: Jeanette Mikulski 414-287-4141 jmikulski@mmac.org

 Download one-page flyer and registration form.

return to front page

MWTA GOLF OUTING

Wednesday, July 29, 2009   12:30 PM START TIME

Co-sponsored with TAMI at Ironwood Country Club near Sussex, WI
Go to www.mwta.com for registration details.