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"Shap" Talk
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June 2002 - Issue #3
In This Issue:
ACH Refund Program
Increased Inspections of Export Containers
Canadian Requirement for 10-Digit Harmonized System (HS) Number
FDA Operation "Leadbelly"
U.S. Fish & Wildlife Service Announces the eDecs Pilot Program
Continuous Bonds Destroyed In New York Terrorist Attack
EU Proposes Additional Duties for U.S. Products in Response to U.S.’ Section 201 Steel Remedies
Transportation Notes
Shapiro Recordkeeping Seminar
Shapiro Customer ACH Statements Delivered Via Electronic Mail
Trade Industry News
ACH Refund Program
The U.S. Customs Service has introduced a program that will allow importers to receive electronic refunds of overpayments of duties, taxes, and fees directly into their bank accounts via the Automated Clearinghouse (ACH). The ACH Refund Program requires an importer to fill out an enrollment form, designating the bank account to which the refunds should be directed. Information on the breakdown of duties, taxes, fees, and interest for your pending refund can be accessed through the Payment Advice Internet Delivery (PAID) system, which was developed by the Treasury Department as a method for obtaining specific information through the ACH system.
If you are interested in participating in the ACH Refund Program, please contact your local Shapiro representative for specific details and a copy of the enrollment form.
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“Project Shield America” Results In Increased Inspections of Export Containers
We have received many reports of increased inspections on export containers. One report indicates that Customs examined as many as 70 containers off of one vessel! What does this mean for exporters? This means that if a container or cargo is chosen for inspection, to expect delays of approximately one week while Customs examines the entire container. In addition, the exporter will incur extra costs, averaging $600.00 to $700.00, for the movement, stripping, examination, and reloading of the container. The exporter must be aware that all charges for the examinations will be billed back to the exporter. These inspections are part of Customs’ efforts to implement a new enforcement program called “Project Shield America.”
Project Shield America is a new initiative from U.S. Customs and the Department of Commerce that seeks to prevent terrorist organizations from acquiring sensitive U.S. technology, weapons, and other equipment that could help them carry out attacks on America and its people. Customs wants to partner with U.S. industry to prevent their technological accomplishments from being exploited by terrorists. While some of these materials may seem relatively harmless and have little monetary value, they can have enormous strategic value in the hands of America’s adversaries. Many seemingly “non-technological” commodities could easily become the necessary component for major weapons development by terrorist groups or rogue nations.
For more information on “Project Shield America,” please refer to the Enforcement section on Customs’ web site at http://www.customs.ustreas.gov/enforcem/enforcem.htm.
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Canadian Requirement for 10-digit Harmonized System (HS) Number
The Canada Customs and Revenue Agency has issued a reminder to all interested parties regarding the new 10-digit HS number requirement that took effect on May 1, 2002. This requirement, detailed in Canadian Customs Notice CN-410 dated October 31, 2001, affects the majority of individuals importing commercial shipments into Canada. The notice states that beginning May 1, 2002, cargo imported into Canada must have the correct 10-digit HS number notated on the commercial invoice or risk a delay in the release of the cargo. This requirement pertains to all paper and electronic “Release on Minimum Documentation” (RMD) and “Pre-Arrival Review System” (PARS) releases valued at CAN$1,600 or more. If it is determined that the 10-digit HS number is incorrect after the goods have been released, warnings and penalty actions may be imposed.
Questions may be directed to:
Brenda Wiseman (613) 957-1229
Rick Dale, Manager (613) 954-7077
Commercial Re-Engineering Division
Major Project Design and Development Directorate
8th Floor, Vanguard Building
171 Slater Street
Ottawa, Ontario K1A 0L5 Canada
For complete details on the 10-digit HS number requirement, please refer to Canadian Customs Notice CN-410 http://www.ccra-adrc.gc.ca/E/pub/cm/cn410eq/cn410-e.html.
Source: “Canadian Customs to Require Correct 10-Digit HS Number on Invoices for Commercial Shipments Beginning May 1, 2002.” Broker Power, Inc. newsletter dated April 30, 2002.
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FDA Operation "Leadbelly"
Beginning June 3, 2002 The Food and Drug Administration will be conducting operation "Leadbelly" targeting ceramic tableware , cups and saucers, originating from certain risk countries for lead content. U.S. Customs service will assist FDA in the effort by flagging shipments that meet certain criteria for possible tailgate examinations. The operation is expected to last 9 weeks. Questions should be directed to FDA - John Moore at 718-662-5460.
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U.S. Fish & Wildlife Service Announces the eDecs Pilot Program
The U.S. Fish & Wildlife Service (FWS) is scheduled to launch a voluntary 90-day pilot program called “eDecs.” The new eDecs system will allow Customs brokers, importers and exporters to electronically transmit the Declaration for Importation or Exportation of Fish and Wildlife (Form 3-177) over the Internet for all shipments requiring FWS clearance — at no cost to the user. FWS sources note that although the Form 3-177 can be transmitted electronically, other required documentation would still need to be filed manually in paper form. eDecs is not an integrated electronic derivative of the U.S. Customs’ ABI system. It is an independent Internet-based system, allowing electronic transmission of FWS information.
Once port training for the eDecs system is completed, a 90-day pilot program is scheduled to begin in late May at the following ports:
| Atlanta |
Houston |
| Baltimore |
Los Angeles |
| Chicago |
Portland |
| Dallas |
Seattle |
Samuel Shapiro & Company, Inc. has notified the U.S. Fish & Wildlife Service to express their interest in participating in the pilot program.
After the pilot is completed and the results have been reviewed, FWS anticipates expanding its eDecs system to all FWS-staffed ports.
Sources: “FWS Expects to Soon Pilot a New Automated System for Filing FWS Declarations (Form 3-177)” from Broker Power, Inc., May 8, 2002 issue. U.S. Fish and Wildlife Services website at http://www.fws.gov.
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Continuous Bonds That Were Destroyed in New York During the 9/11/01 Terrorist Attack
As a result of the terrorist attack on September 11, 2001, Customs bonds and other documents stored at 6 World Trade Center were destroyed. An importer having an existing continuous bond that was filed at the New York Seaport (port code 1001) or the New York Regional Port (port code 7200) with an effective date of September 11, 2001, or earlier and that remains in effect as of May 13, 2002, must provide Customs in New York with a copy of that bond (including the Customs bond number) and copies of any riders to the bond. If no copy of the bond is available, the original must be terminated and a new continuous bond application must be submitted.
Inquiries about specific bonds should be addressed to the Customs Bond Unit, Elizabeth, New Jersey (201-443-0234). A party making a telephonic inquiry regarding a specific bond should be prepared to provide its importer name and identification number.
The copy of the continuous bond, along with any riders to the bond, OR the new continuous bond application (if no copy is available) must be sent to one of the following addresses:
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U.S. Customs Service |
U.S. Customs Service |
All Type 1A Drawback Bonds or Drawback Bond Applications must be sent to: |
Attn: Bond Desk
1210 Corbin Street
Elizabeth, NJ 07201
201-443-0234 |
Attn: Bond Desk, Entry Branch
JFK Airport Building 77
Jamaica, NY 11430 |
U.S. Customs Service
Drawback Branch
1210 Corbin Street
Elizabeth, NJ 07201 |
Please refer to the Federal Register Notice dated May 13, 2002 (Volume 67, Number 92) [Pages 32082-32083] or the New York Informational Pipeline No. 02-009 for further information.
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EU Proposes Additional Duties for U.S. Products in Response to U.S.’ Section 201 Steel Remedies
The European Union (EU) has notified the World Trade Organization (WTO) that, effective June 18, 2002, it intends to impose additional 100% duties on certain U.S. products (identified by the EU Combined Nomenclature (CN) code in the list below) unless the U.S. removes its safeguard measures on steel. This retaliatory effort is in response to the United States’ Section 201 Steel Remedies, which levies increased duties and tariff-rate quotas on specific steel products from the EU.
The EU also intends to impose additional duties, on a broader scale, that range from 8-30%, beginning on March 20, 2005, or if earlier, following a decision by the WTO Dispute Settlement Body that the U.S. imposed steel sanctions are incompatible with the WTO agreements. (Click on the link below to access this second list of U.S. products.)
The EU notice dated 05/13/02, which contains the two lists of U.S. products affected by the additional duties, as well detailed information about the EU’s retaliatory efforts, is posted to the European Commission maintained website at http://europa.eu.int/comm/trade/pdf/steel_wtolist.pdf
List of U.S. Products Subject to Additional 100% Duties (Effective 6/18/02)
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CN Code(s)
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Product Description
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0712.20.00*
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dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared
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0808.10.90
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apples, pears and quinces, fresh
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1006.30.98*, 1006.40.00*
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rice
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2009.11.99*, 2009.12.00*,
2009.19.98*
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fruit juices (including grape must) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter
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6109.10.00, 6109.90.10,
6109.90.30, 6109.90.90
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t-shirts, singlets, and other vests, knitted or crocheted
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6203.42.90, 6203.43.11,
6203.43.19
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men’s or boys’ suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear)
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6204.62.90
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women’s or girls’ suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear)
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6205.30.00
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men’s or boys’ shirts
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6301.30.10
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blankets and traveling rugs
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7210.12.11*
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Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated
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7220.20.31, 7220.90.11,
7220.90.39, 7220.90.90
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flat-rolled products of stainless steel, of a width of less than 600 mm
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7222.20.81, 7222.20.89
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other bars and rods of stainless steel; angles, shapes and sections of stainless steel
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7308.30.00*
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structures (excluding prefabricated buildings of CN heading 9406) and parts of structures (e.g., bridges and bridge sections) of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel
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7310.29.90*
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tanks, casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300 liters, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment
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7325.99.90*
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other cast articles of iron or steel
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7326.20.90*
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other articles of iron or steel
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8443.11.00*, 8443.19.90*
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printing machinery used for printing by means of the printing type, blocks, plates, cylinders and other printing components of CN heading 8442; ink-jet printing machines, other than those of CN heading 8471; machines for uses ancillary to printing
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9004.10.91, 9004.10.99
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spectacles, goggles and the like, corrective, protective or other
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9504.10.00
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articles for funfair, table or parlor games, including pintables, billiards, special tables for casino games and automatic bowling alley equipment
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Transportation Notes
From June 1, 2002 - September 30, 2002 ocean carriers from the Far East plan to add a Peak Season Surcharge (PSS) of $225.00 per 20' container, $300.00 per 40' container, $340.00 per 40' high cube container and $380.00 per 45' container.
On June 1, 2002 ocean carriers from Italy, Spain, Portugal and Greece plan to raise the bunker surcharge from $71.00 per TEU to $107.00 per TEU. Carriers are also proposing a rate increase of up to $200.00 per container.
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Shapiro Products & Services
Shapiro Recordkeeping Seminar
Samuel Shapiro and Company, Inc. will be hosting two half-day seminars, from 9 AM to 12 Noon, on U.S. Customs Recordkeeping Regulations. The seminars will be conducted by Howard Spencer, Field Audit Specialist for Recordkeeping, Focused Assessments, and Importer Self-Assessments, U.S. Customs Service. The cost of the seminar is $85.00 per person. For attendees from the same company, the cost is $50.00 for each additional person. Check-In and Continental Breakfast will begin at 8:30 A.M. Many people have already responded with great interest. If you have not responded, please contact consulting@shapiro.com if you are interested. Please reserve by June 5, 2002. Space is limited !
The locations and dates of the seminars are as follows:
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First Seminar
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Second Seminar
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Location:
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Atlanta, Georgia
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Location:
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Baltimore, Maryland
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Date:
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Thursday, June 20, 2002
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Date:
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Thursday, June 27, 2002
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Place:
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Holiday Inn Airport
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Place:
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The World Trade Center
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1380 Virginia Avenue
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401 East Pratt Street, 21st Floor
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Atlanta, GA 30344
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Baltimore, MD 21202
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(404) 762-8411
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(410) 539-0540x 226
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Please contact consulting@shapiro.com to register. For additional information, please contact Jenny Canter at 1-800-695-9465 x 226 or Liz Gant at 1-866-898-8093 x 225.
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Shapiro Customer ACH Statements Delivered Via Electronic Mail
Samuel Shapiro & Company, Inc. recently began delivering “Automated Clearinghouse” (ACH) duty statements to customers via email. This new format provides a more efficient and expeditious delivery service to our customers. When statements are transmitted from U.S. Customs to Shapiro at 6:00 a.m. each morning, our computer system is programmed to automatically forward a copy of the ACH statement to the client.
Please be sure to notify your local Shapiro representative if your email address changes so that we may update our records.
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