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D e c e m b e r

Summary of requirements

The United States and Peru have completed a
bilateral free-trade agreement.
Free trade pacts are in negotiation with Columbia and Ecuador.

Notice from CPShips concerning
Canadian Gateway Imports (pdf)

N o v e m b e r

BNSF Railway Service Letter

China-US trade will be worth US$200 billion by the end of this year and is expected to soar to US$300 billion by 2010.

This is a massive jump from 1978 when trade between the two countries was worth just US$2.5 billion. Last year that figure was US$159.6 billion.

This year's estimate was made by Jin Xu, a senior official with the Ministry of Commerce, at a conference on relations between the two giant countries.

The Brink's Co. confirms $1.1 billion sale of BAX Global

Richmond, Va.-based security firm The Brink's Co. has agreed to sell its freight-forwarding arm BAX Global to Deutsche Bahn AG for about $1.1 billion in cash. The announcement, made to the New York stock exchange early Wednesday morning, confirmed recent press speculation linking the Irvine, Calif.-based BAX Global with a takeover by the German state-owned rail operator. BAX Global has nearly 500 offices worldwide with approximately 12,000 employees. In 2004, BAX Global posted revenue of $2.44 billion and an operating profit of $56.2 million. Deutsche Bahn is also the parent company of international forwarding giant Schenker.

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EU Considers Requiring Packing Materials to be
Made from Bark-free Wood

The Journal of Commerce reports that the European Union (EU) is considering a plan that would go beyond the international rules for fumigation or heat treatment of solid wood packing materials by requiring wooden pallets, crates and dunnage to be made exclusively from bark-free wood. (JoC, dated 10/10/05, www.joc.com.)

Hapag-Lloyd has changed it's tariff rules concerning
undeclared hazardous cargo.
The new rule reads as follows:

SHIPPER shall further be assessed a U.S. $1000.00 penalty for failure to properly offer and/or declare Hazardous Materials / Dangerous Goods at the time of booking, if such shipments load to a vessel prior to discovery and notification to the CARRIER of the undeclared material.

Hapag-Lloyd (America) Inc., 3030 Warrenville Road, Suite 500, Lisle, IL. 60532

T: 630-753-1706 F: 630-527-4706 M: 312-543-0484

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U.S. –China Textile Agreement

The Office of U.S. Trade Representative (USTR) has made available the "Memorandum of Understanding Between the Governments of the United States of America and the People's Republic of China Concerning Trade in Textile and Apparel Products."

Chinese Origin Products Subject to the Agreement AND THUS SUBJECT TO QUOTA.

Annex I to the Agreement lists the categories subject to the 2006 – 2008 agreed levels as follows

200/301 - Sewing thread/combed cotton yarn

222 - Knit fabric

229 - Special purpose fabric

332/432/632pt (plus baby socks) - T¹

Sublimit 332/432/632pt (plus baby socks) –B^1,2

338/339pt - Cotton knit shirts

340/640 – MB woven shirts

345/645/646 – Sweaters

347/348 - Cotton trousers

349/649 – Bras

352/652 – Underwear

359S/659S – Swimwear

363 - Pile towels

666pt ³- Window blinds/window shades

443 - Wool suits, MB

447 - Wool trousers, MB

619 - Polyester filament

620 - Other syn. filaments

622 - Glass fabric

638/639pt - MMF knit shirts

647/648pt - MMF trousers

847 - Silk blend or non-cotton vegetable fiber trousers

¹BP is checking on the tariff numbers listed in the Agreement for 332/432/632pt

²Excludes 6115.20.9010 (Also, see footnote 1 above)

³ Covers window shades and window blinds in ex 6303.12.0000 and ex6303.92.2020.

Chinese Origin Products Excluded from Coverage

Annex II to the Agreement lists the products excluded from coverage, as follows:

338/339	ex 6110.20.1025	Knit to shape on flat-bed knitting machines, having a stitch count exceeding 9 stitches per 2 centimeters, but less than or equal to 18 stitches per 2 centimeters, measured on the outer surface of the fabric, in the direction in which the stitches are formed. All of the components of the garment are knit-to-shape and all are looped and linked, including the side seam and pocket (if any).
	ex 6110.20.1030
	ex 6110.20.2065
	ex 6110.20.2075
	ex 6110.90.9068
	ex 6110.90.9070
638/639	ex 6110.30.2050
	ex 6110.30.2060
	ex 6110.30.3050
	ex 6110.30.3055
	ex 6110.90.9076
	ex 6110.90.9078
647/648		6203.43.3510
		6204.63.3010
		6210.40.5031
		6210.50.5031
		6211.20.1525
		6211.20.1555

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Global Business Expansion Institute

Doing Business in the CAFTA Region

Thursday, November 10, 8:30-10:00am
WCTC (College Center, 2^nd/F Room 209)

Central American Customs, in general, can be difficult to navigate. Many problems arise from “inequitable” and arbitrary application of the Customs laws and regulations. What remedies are available to the Wisconsin exporter and/or their local distributor/importer when it seems that they are being “singled out?" What are the challenges of doing business in the CAFTA region and how can your company learn and implement "best practices" to succeed? Which markets are growing and how can you determined where to use your limited resources? When will CAFTA come into force and how will it affect your business in the region?

CAFTA: Honduras, Dominican Republic, Costa Rica, El Salvador, Guatemala, Nicaragua

Dealing with varying Customs practices

Best Practices-Documentation

Ease of doing business

Transparency in legal process

Strength of local franchise laws

Travel safety

Import duties, in-country/region logistics

Roundtable facilitators will include Matthew Luening, District Manager, Latin America, Harley-Davidson Motor Company, and Sara Midence of the Honduran Foreign Ministry, who is currently serving as a Fellow through the Partners of the Americas group at the Wisconsin Department of Commerce.

To registers, please call or fax by Wednesday, November 9th

PH: 262-691-5219 FX: 262-691-5092

Checks payable to WCTC. You may bring it with you.

$45.00 ($40.00 for MWTA and WWTC members)

Click here for registration form

Some Congestion Returns

BNSF Southern California rail operations continue to be short railcars and locomotives. BNSF is holding three outbound trains for locomotive power; two of these trains carry Grand Alliance cargo. BNSF Hobart ramp operations are struggling to discharge over 400 inbound loads; four Hobart outbound trains are being held due to shortage of locomotive power. Congestion at Chicago-area facilities continues without improvement. Locomotive power is tight. Six outbound trains are being held, waiting for locomotive power. LPC inbound cargo waiting to be unloaded from arriving railcars has been reduced to 700 units (from 1,000 units as of Monday). Three inbound trains are being held, waiting for ramp space before being unloaded. Alliance (Dallas, TX) and Houston operations have improved and are normal. Memphis has one outbound train held due to shortage of locomotive power. Seattle and Oakland import volume is high. BNSF Seattle is congested due to the high number of export loads. Oakland is normal, without delay.

Union Pacific Railroad continues to be short railcars and locomotives in Southern California. UPRR announced in-gate restrictions and will temporarily designate specific rail ramps for specific destination cargo. UPRR continues to be 48 hours late in departing outbound trains from Southern California due to congestion and equipment shortages.

CPR Vancouver railcar supply continues to meet demand. Train operating window restrictions through the Track Capacity Expansion Project between Vancouver and Calgary is causing transit delays of up to 36 hours. CPR reports Vancouver import volume has dropped unexpectedly from all customers. CNR also reports an unexpected decline in Vancouver import volume has suspended its customer capacity limits, and will accept import volume without restriction.

CSX continues suspension of New Orleans service. BNSF has resumed service to/from New Orleans. BNSF train service is one day per week from Los Angeles (Monday 1800 cut-off) and one day per week from New Orleans (Sunday 1400 cut-off). CSX is not likely to re-open until January 2006. UPRR, NSRR and CNR have re-opened their New Orleans rail ramps. For NSRR, there are no restrictions for import/export cargo from/to Norfolk, Charleston, Savannah and Miami.

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O c t o b e r

Repeal of the Byrd Amendment

WASHINGTON, Oct. 26 /PRNewswire/ -- The House Ways and Means Committee today approved repeal of the Continued Dumping and Subsidy Offset Act, commonly known as the "Byrd Amendment" as part of a budget reconciliation package adopted by the Committee. The Reconciliation bill now heads to the House Budget Committee and the House floor.

The World Trade Organization (WTO) ruled in 2002 that the Byrd Amendment violates U.S. trade obligations. Congress' failure to repeal the law has resulted in WTO-authorized retaliation against U.S. exports by Canada, the European Union, Japan and Mexico on products including baby formula, oysters, wine, dairy products, candy and chewing gum. Total retaliatory tariffs from these countries are approximately $114 million. However, approximately $3.7 billion is being held by U.S. customs in duties assessed against Canadian softwood lumber. Should these duties be distributed as Byrd payments, the level of Canada's retaliation would skyrocket. CITAC is a coalition of companies and organizations committed to promoting a trade arena where U.S. consuming industries and their workers have access to global markets for imports that enhance the international competitiveness of American firms.

Source: Consuming Industries Trade Action Coalition

PUBLIC HOLIDAY IN SINGAPORE

01 November 2005 for Deepavali Holiday
Resume work on 02 November 2005
&
03 November 2005 for Hari Raya Idulfitri Holiday
Resume work on 04 November 2005

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BNSF Southern California rail operations continue to be short railcars and locomotives. BNSF is holding four(4) outbound trains, waiting for locomotive power. BNSF Hobart ramp operations have improved, with in-gate allocations being increased over last week and Commerce ramp restrictions removed.

Congestion at Chicago-area facilities has increased, locomotive power is tight, four outbound trains are being held, waiting for locomotive power. LPC inbound cargo waiting to be unloaded from arriving railcars has again exceeded 1,000 units. Alliance (Dallas), TX , Houston are ramp congestion, with both facilities reporting nearly 200 units waiting to be unloaded from arriving trains.

Seattle and Oakland import volume is high. BNSF is holding one outbound train from Seattle, while Oakland is normal, without delay.

Union Pacific Railroad is also short railcars and locomotives in Southern California. Tomorrow, UPRR is expected to announce in-gate restrictions and temporarily designate specific rail ramps for specific destination cargo. UPRR is 48 hours late in departing outbound trains from Southern California due to congestion and equipment shortages.

CPR Vancouver railcar supply continues to meet demand. Train operating window restrictions through the Track Capacity Expansion Project between Vancouver and Calgary is causing transit delays of up to 36 hours.

CSX continues suspension of New Orleans service. BNSF has resumed service to/from New Orleans, effective today. Train service is one day per week from Los Angeles (Monday 1800 cut-off) and one day per week from New Orleans (Sunday 1400 cut-off) CSX is not likely to re-open until January 2006. UPRR, NSRR and CNR have re-opened their New Orleans rail ramps. Interchange cargo bound for southeast destinations will continue to be re-routed to CSX via St. Louis. For NSRR, there are no restrictions for import/export cargo from/to Norfolk, Charleston, Savannah and Miami.

Hurricane Wilma: CSX will re-open Tampa and Orlando rail terminals this evening, FEC will re-open Miami ramp tomorrow. Jacksonville ramp is open. Rail concern is electric power supply and clearing debris from track.

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NO TEXTILE AGREEMENT BETWEEN US AND CHINA. DOMESTIC INDUSTRY TO FILE AN ADDITIONAL PETITION FOR PROTECTION FROM CHINESE IMPORTS OF COTTON TERRY TOWELS.

Bilateral negotiations last week in Bejing concluded without an agreement on the textile trade. The talks covered a wide range of topics: product coverage, base quotas, annual quota growth rates, treatment of goods presently under embargo, and the use of the safeguard mechanism on products outside the scope of the agreement. There are no plans to re-visit the negotiations in the near term.

CITA recently agreed to consider nine petitions filed to re-apply the textile safeguard on the following products:

Combed cotton yarn (category 301);
Cotton knitted shirts and blouses (category 338/339);
Men's and boys' cotton and man-made fibre woven shirts (340/640);
Cotton trousers (347/348);
Cotton and man-made fiber brassieres (category 349/649);
Cotton and man-made fiber underwear (category 352/652);
Other synthetic filament fabric (category 620);
Man-made fiber knitted shirts and blouses (category 638/639);
Man-made fibre trousers (category 647/648).

The Committee for the Implementation of Textile Agreements (CITA) is now expected to pursue these and other outstanding safeguard petitions rather aggressively in the coming weeks. It is increasingly likely that safeguard quotas will be re-applied by 1 January 2006. CITA agreed to proceed with the petitions on:

Cheesecloth, batistes, lawns and voiles (category 226);
Men's and boys' wool suits (category 443);
Man-made fibre coats and jackets, other than men's and boys' suit-type coats (category 634/635);
Light-weight polyester filament fabric (category 619).
Interested parties may submit public comments on any of these actions by 10 November.
Cotton and man-made fibre curtains and drapes (category 369/666-pt),
Cotton, wool, and man-made fibre socks (category 332/432/632-pt);
Women's and girls' cotton and man-made fibre woven shirts (category 341/641);
Cotton and man-made fibre skirts (category 342/642);
Cotton and man-made fibre nightwear and pyjamas (category 351/651);
Cotton and man-made fibre swimwear (category 359-s/659-s).

On top of all of this, the US textile industry filed a safeguard petition on 11 October on cotton terry and other cotton pile towels (category 363). CITA must determine by 1 November whether to accept this petition for consideration.

Fuel surcharge going up to $0.76/kg for airfreight out of Taiwan effective Oct 21^st. This is an increase of $0.07/kg.

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TEXTILE DECLARATION DROPPED

Effective October 5, 2005, CBP has dropped the Textile declaration for entries of textiles from all countries, including those currently subject to Safeguards or quota/visa requirements. CBP now requires the importer of textile and apparel products to construct a valid manufacturer's identification code ("MID"), based upon the name and address of the manufacturer performing the operation that confers origin on the textile and apparel product.
This change imposes new obligations on the importer to exercise reasonable care to insure the correctness of the MID code where the textile or apparel is made in multi countries.

SPECIAL CARE: Sometimes, the goods may be produced in more than one country, and/or the importer may not be aware that the exporter is not the manufacturer. At the time of placing the order, the importer should request identification of the manufacturer, the origin of the fabrics, and the work performed by the company identified as the manufacturer, on which the MID will be based. Without documentary evidence, importers will not have a basis to establish the existence of reasonable care, and could be subject to possible reject of the entry and potential penalties for the incorrect MID provided to CBP.

Textile Articles will be denied entry where the factory, producer, manufacturer, or other company named in the entry documents for such textile or apparel products is named in a directive published in the Federal Register as a company found to be illegally transshipping, closed or unable to produce records to verify production. In these circumstances, no additional information will be accepted or considered by CBP for purposes of determining the admissibility of such textile or apparel products.

CITA Agrees to Consider 13 Petitions Requesting Safeguard Quotas / Reapplications for China Cats 226, 301, 338/339, 340/640, 347/348, 349/649, 352/652, 443, 619, 620, 634/635, 638/639 and 647/648

On October 5^th, the Commerce Department announced that the Committee for the Implementation of Textile Agreements (CITA) decided to consider petitions filed by the domestic textile industry requesting new safeguard quotas or the continuation (reapplication) of existing safeguard quotas. Details are:

Category Description (reapplication, subject to safeguards thru 12/31/05)

301 Combed cotton yarn

338/339 Cotton knit shirts

340/640 Cotton/Manmade fiber (MMF) men’s and boys’ woven shirts

347/348 Cotton trousers, breeches and shorts

349/649 Cotton/MMF Brassieres and other body supporting garments

352/652 Cotton/MMF Underwear

620 Other synthetic filament fabric

638/639 MMF knit shirts

647/648 MMF trousers, breeches and shorts

Category Description (new categories, not currently subject to safeguards)

226 Cotton/MMF cheesecloth, batistes, lawns/voiles

443 Wool men’s and boys’ suits

619 Polyester filament fabric, light-weight

634/635 MMF other men’s and boys’ coats and women’s and girls’ coats

CITA to Announce Comment Periods

CITA will now seek public comments for these requests, as to whether imports from China have disrupted or threatened market disruption. CITA will seek public comments for a 30-day period, beginning on the date Federal Register notices for these comment periods are published. The likely result of this process is the re-imposition of quotas on the specific categories.

http://www.ita.doc.gov/media/FactSheet/1005/cita_100505.html

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Mumbai Port Strike Called Off

Asian Holiday notice: Chung Yeung Festival

Many offices in Japan and Taiwan are closed Monday the 10^th.
Hong Kong is closed Tuesday the 11^th.

The U.S. International Trade Commission has issued a finding that imports of steel pipe from China are disrupting the market for domestic producers. The ITC issued the finding Monday. On Tuesday, the ITC decided to conduct full reviews of several other steel-related tariffs. The commission is still considering what remedies to recommend. The commissioners also voted to conduct full five-year reviews on duties on stainless wire rod imports from Brazil, France and India, as well as on pipe and tube imports from Argentina, Brazil, India, Korea, Mexico, Taiwan, Thailand and Turkey. The Herald-Star

A Barren Port Waits Eagerly for Its People
By SIMON ROMERO New York Times

With as much as 80 percent of its operations still shut, the Port of New Orleans has far to go before it can return to anything resembling its pre-Hurricane Katrina level. Many of the hundreds of workers needed to run the port are living in other states. Several of the rail lines into the port were torn apart by the storm; road access for tractor-trailers remains limited.

Further Data on Louisiana's Ports(Excel spreadsheet)

The US government and the Sultanate on Oman on 3 October concluded their negotiations and reached an agreement on bilateral free trade exchange.

The American trade attaché Portman stressed that the new agreement falls in the course of the objective set by President Bush to establish a free trade exchange area in all parts of the Middle East by the fall of 2013, hoping that the Congress will approve it quickly. Two-way trade in goods between the United States and Oman totaled $748m in 2004 and U.S. foreign direct investment in 2003 in Oman was $358m. Omani Minister of the Economy Bin Sultan noted that the negotiations only lasted for seven months, for the good relations between the two countries allowed quick conclusion to the talks.

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Port of Mumbai is shut down due to truckers strike

The Holy month of Ramadhan Al Mubarak (Fasting) will start from 4th of October, 2005. During this month, our working hours will be as follows.

Saturday to Thursday 0830 - 1430 hours local time. Friday - Holiday.

Sunela Fernando Asst. Manager - Sales/Marketing, Cargo Plan International LLC

TEL : 00971 4 2868186 MOB : 0071 50 8530466'

Israeli ship captain denies collision with Japanese boat

SAPPORO, Japan - The captain of an Israeli cargo ship MV Zim Asia suspected of colliding with a Japanese fishing boat, causing it to capsize and resulting in the deaths of seven fisherman, denied involvement in the accident. Japanese media reported Saturday morning that the container ship, which was in route from Seattle to Pusan, is the main suspect in a hit-and-run accident with a Japanese fishing boat in which seven fishermen were killed. The accident took place four days ago near Hokkaido, Japan's northern island.

Air freight rates are expected to increase a minimum of 20% from China
the week of 10/10/05 and also an additional increase of 10% in November.

Website of the Month

Happynews.com

Because we could all probably use it - a site devoted to happy news.

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S e p t e m b e r

CIT Rules that Children's Plastic Backpacks &
Beach Bag are Not Toys

The Court of International Trade (CIT) ruled in favor of Customs' classification of two children's plastic Barbie and Winnie the Pooh backpacks and one children's Barbie beach bag as other travel, sports, and similar bags under 4202.92.45% (20%). According to the CIT, the backpacks are rectangular, consisting of a top panel, front and back panels, and two side panels, all made of polyvinyl chloride (PVC) plastic sheeting

United States Fish and Wildlife Service announced Thursday...

that it would ban the import of caviar from beluga sturgeon in the Caspian Sea, after caviar-exporting countries in the region failed to provide details of their plans to conserve the fish. The species is internationally recognized as threatened with extinction. Beluga caviar is still available from countries in the Black Sea region, but information from three nations there is under review.

09/27/05 - The ports and airports at Houston and New Orleans are operating today. Lake Charles, La.; and Port Arthur and Beaumont, Texas - remain shuttered. The Port of Galveston, Texas also is closed today. The ports of Beaumont and Port Arthur suffered a major hit. Both cities have suffered severe wind damage, flooding and massive power outages.

THE TRANS-ATLANTIC CONFERENCE AGREEMENT (TACA) announces:

Based upon the latest bunker monitoring, which has seen the price of fuel hit a record high, an adjustment of TACA's BAF has been triggered with effect from October 16th, 2005 through, at least, November 15th, 2005 to the following levels.

Traffic to/from Europe and via:

Atlantic/Gulf Coast Ports $423 per 20ft container $846 per 40/45ft container

Pacific Coast Ports $635 per 20ft container $1270 per 40/45ft container

Wisconsin Man Found Guilty of Exporting Restricted Electronic Components

The United States Attorney’s Office for the Eastern District of Wisconsin has announced that a jury in Federal Court in Milwaukee, Wisconsin convicted Ning Wen of Manitowoc to nine counts of conspiring to export more than $500,000 in restricted electronic components to China. The charges also include money laundering and making false statements to the FBI. Sentences for two other defendants have to date ranged from 7 – 48 months in prison. Wen faces up to 25 years in prison.

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Status of Ports of Entry 9/25/05

Texas:

100% OPERATIONAL - George Bush Intercontinental Airport, Progresso, Brownsville

NON-OPERATIONAL - Port Arthur

These ports are expected to open within 24 hours

Houston Seaport, Port LaVaca/Point Comfort, Freeport, Galveston, Corpus Christi

Louisiana:

100% OPERATIONAL - Baton Rouge, Gramercy

NON-OPERATIONAL - New Orleans, Port of Lake Charles, Port of Morgan City, Port of Shreveport

Mississippi:

NON-OPERATIONAL - Gulfport PARTIALLY OPERATIONAL - Pascagoula

Alabama:

100% OPERATIONAL - Mobile, Huntsville, Birmingham

Norfolk southern has resumed rail freight service into
New Orleans and reopened interchange points with
western rail carriers.

On September 29^th 1:00 – 2:30 eastern standard time
The Journal of Commerce (JOC) is offering a live
Teleconference on the new Wood Product Packaging
rules for imports and exports.

The JOC intends on teaching how US imports should be handled to comply with the new rules, examples of wood packaging material that is covered by the rules, what US Importers should communicate to their foreign freight forwarders, consequences of failing to be in compliance with the new rules, how the new rules will affect transshipments, what US Export markets require wood packaging treatment, what service providers exist to help firms ensure compliance.

Prior to the teleconference, attendees will receive a free extensive briefing book in PDF format.

To register, go to www.joc.com/conferences or
contact Christina Smith at 760/294-5563 or email Ms Smith at csmith@joc.com

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Hurricane Rita Status

OCEAN: Ports are closed from Corpus Christi east through Houston, Galveston, Freeport, Corpus Christi, Orange, Beaumont and Port Arthur in Texas as well as the Port of Lake Charles, Louisiana.

AIR: Houston’s two major airports will close today.

RAIL: BN and UP have advised that container trains destined to and from West Coast will not be diverted but rather will be held at safe locations.

HIGHWAYS: Some major highways are now all one-way away from the Gulf.

NEW ORLEANS: Levees are leaking

CHINA NATIONAL HOLIDAY OCT 01- OCT 07, 2005

Anniversary of the Founding of the People's Republic of China, 1 October (1949)

People are amazing. They said it would take six months.
It took three weeks.

Early reports following Hurricane Katrina said the affected area… an area the size of Britain or Germany… would be nothing but ghost towns for six months or more.

The French Quarter and downtown commercial district of New Orleans are open for business… today. Almost all of New Orleans is now dry.

Almost everyone in the entire region has power and water back, though complete repairs will take more time.

The damaged Interstate-10 bridges will be open within 40 days or less… reopening the major east-west highway across the Southern US from coast to coast.

Temporary housing is being delivered to the region. People are rebuilding. Airports and ports are open for business.

You don’t rebuild 500,000 homes and businesses overnight, but the work has started.

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Bolt seals mandatory

We herewith wish to inform you that the Antwerp container terminal operators P&O Ports and PSA HNN b