November 2003 - Issue 19
In This Issue:
FDA Bio-Terrorism Preparedness and Response Act Update
FDA to Host Public Meeting Regarding New Bio-Terrorism Regulations
FDA and Customs to Hold Joint Bio-Terrorism Regulations Training Sessions
Aviation Security Advisory Committee Issues Air Cargo Security Recommendations to TSA
President Bush Signs 2004 DHS Appropriations Bill
AES Changes Effective 10/18/2003
Customized Reports Available from Census
Transportation Update
Trade Industry News
FDA Bio-Terrorism Preparedness and Response Act Update
The Food and Drug Administration (FDA) has released the final regulations detailing the major food safety provisions of Title III of the Public Health Security Bioterrorism Preparedness and Response Act of 2002. Congress passed the Act to strengthen the U.S. security against bioterrorism. The finalized regulations are scheduled to take effect on December 12, 2003. Failure to comply with the provisions will result in denied entry of cargo.
FDA Bioterrorism Act Website: http://www.fda.gov/oc/bioterrorism/furls/
Food Facility Registration:
All foreign and domestic facilities that manufacturer, process, pack, distribute, receive or hold food for consumption by humans or animals in the United States must register with the FDA no later than December 12, 2003. FDA will accept food facilities registration through the Internet, or by surface mail (paper and CD-Rom), or by FAX beginning October 16, 2003. Internet registration will be available starting at 6PM EDT on October 16, 2003. Affected food facilities must register with FDA no later than December 12, 2003.
FDA Fact Sheet on Food Bioterrorism Regulation: Interim Final Rule - Registration of Food Facilities
http://www.cfsan.fda.gov/~dms/fsbtac12.html
Federal Register Notice regarding Registration of Food Facilities http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2003/pdf/03-25849.pdf
Facilities may register on-line via the Internet at http://www.fda.gov/furls. This site will operate 24-hours a day, seven days a week, beginning October16, 2003.
Download the Food Facility Registration form: HTTP://WWW.CFSAN.FDA.GOV/~FURLS/PAPERCD.HTML
Prior Notice of Imported Food Shipments
Beginning December 12, 2003, FDA must receive advance notice of every shipment of food intended for human or animal consumption for importation into the U.S. This must take place before the food arrives at the port of entry. In most cases, notification can be provided using the Customs automated commercial system (ACS). Records must be created that identify from where the food originated and to where it was destined. Foreign facilities must also comply with this requirement.
FDA Fact Sheet on Food Bioterrorism Regulation: Interim Final Rule - Prior Notice of Imported Food Shipments can can be viewed at:
http://www.cfsan.fda.gov/~dms/fsbtac13.html
Federal Register Notice regarding Prior Notice of Imported Food Shipments http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2003/03-25877.htm
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FDA To Host Public Meeting Regarding New Bioterrorism Regulations
The Food and Drug Administration is hosting a public meeting on October 28, 2003 at 1:00 P.M. EST in an effort to clarify the new responsibilities imposed by the Bioterrorism Preparedness and Response Act legislation; all are urged to attend and encouraged to ask questions.
The purpose of the meeting is to provide information on the final rules for Registration of Food Facilities and Prior Notice of Imported Food Products and to provide the public with an opportunity to ask questions. Representatives from the FDA and Customs and Border Protection will participate.
The public meeting will be broadcasted via interactive satellite to locations around the country as well as around the world. Seating is limited. FDA is asking that you call or email to register for the event. They also ask that attendees arrive ten to fifteen minutes prior to the scheduled start of the broadcast. Prior to the meeting you may fax your questions to 1.888.361.4044.
For more information as well as a complete listing of satellite viewing locations please see the following FDA links.
http://www.fda.gov/cdrh/ohip/dcm/html/cfsan_event_page.html and HTTP://WWW.FDA.GOV/OHRMS/DOCKETS/98FR/03-24921.HTM
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FDA and Customs to Hold Joint Bio-Terrorism Regulations Training Sessions
The Food and Drug Administration (FDA), in conjunction with the Bureau of Customs and Border Protection (CBP), will also be hosting training sessions during the month of November 2003 for the importing community in an effort to explain operational details of the implementation of the program as well as to answer questions and provide assistance relating to the imposed Bioterrorism regulations.
As of this writing the following dates and locations were available. We were advised that the importing community would be notified of additional dates and times as well as any changes.
Baltimore, Maryland November 13 & 14, 2003
Washington, DC November 17 & 18, 2003
Richmond, Virginia November 19, 2003
Norfolk, Virginia November 20 & 21
Philadelphia, Pennsylvania To Be Announced – 2nd or 3rd Week of November
FDA Designated Point of Contact – Joseph F. Brady
Phone: 215.597.4390 x 4560
Email: jbrady1@ora.fda.gov
New York, New York To Be Announced
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Aviation Security Advisory Committee Issues Air Cargo Security Recommendations to TSA
The Transportation Security Administration (TSA) has released information on security recommendations from the Aviation Security Advisory Committee (ASAC) on the development and enhancement of air cargo security. The ASAC is comprised of 27 organizations, federal and private, that have a significant interest and impact in the air cargo market. The committee counts on the participation of the Bureau of Customs and Border Protection (CBP), National Customs Brokers, Forwarders Association of America, Inc. (NCBFAA), and the Air Courier Conference of America. ASAC’s recommendations will allow the TSA to develop its strategic plan by the end of October 2003.
ASAC’s recommendations focused on the following strategies:
- Improve the Known Shipper Program: The committee noted that it is crucial for shippers to be checked against all government watch lists. ASAC recommends that implementing technology links between forwarders, air carriers, and the federal government may accomplish this. The committee also suggests the further development of databases to ensure shipper legality. ASAC recommends a re-evaluation of the Known Shipper Program in order to simplify it and, consequently, improve compliance.
- Improved Regulation of Indirect Air Carriers (IAC): ASAC suggests that the regulation of IACs be increased by ensuring that background checks are performed for all employees that have access to cargo. The committee recommends that federal standards should be set for pre-employment screening for IACs in the same way as in the passenger airport industry. In addition, ASAC notes that tools should be developed in order to guarantee IAC compliance with TSA provisions.
- Enhance security for all-cargo aircraft: ASAC suggests that perimeter and personnel security be strengthened at all-cargo facilities. The committee recommends issuing a revised “prohibited items” list for personnel and creating new measures to ensure cargo security. In addition, ASAC believes that communication can be improved between the TSA and aircraft operators; this will ensure compliance with new measures and allow for a faster response to emergency security threats.
- Leverage New Technology: ASAC suggests that a layered approach to cargo be taken that involves profiling, inspection, and detection. The committee also recommends that additional research and development is required in order to find new technologies to assist in enhancing cargo security procedures.
Source: “TSA Receives Air Cargo Security Recommendations from its Aviation Security Advisory Committee” appearing in International Trade Today dated October 8, 2003.
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President Bush Signs 2004 DHS Appropriations Bill
On October 1, 2003, President Bush signed the 2004 Appropriations Bill for the Department of Homeland Security (DHS), which provides over $31 billion to agencies such as the Bureau of Customs and Border Protection (CBP) and the Transportation Security Administration (TSA). The Appropriations Bill focuses on securing our nation by providing funds to key programs and initiatives, with the purpose of protecting the homeland from the potential threat of terrorist attacks.
The Transportation Security Administration was awarded $4.6 billion, from which $30 million will be used to improve the Known Shipper Program by hiring new staff to perform comprehensive audits and by purchasing high-tech screening systems. Another $55 million will be awarded to the Research and Development Department to identify technological strategies that would allow for more efficient inspection of international cargo.
The Appropriations Bill provides $14 million for the Customs-Trade Partnership Against Terrorism (C-TPAT). C-TPAT is a voluntary initiative designed by the Bureau of Customs and Border Protection to focus on the development of cooperative relationships between Customs and the business community. The goal of the program is to strengthen the security of our borders as well as the security of the overall supply chain. The funding will enable the CBP to drastically increase the number of DHS partnerships with importers and manufacturers and add approximately 160 experts to the C-TPAT staff, which will allow the CBP to provide more training and assistance to C-TPAT partners.
The Appropriations Bill allocates over $918 million toward science and technology funding for the development of standards, sensors, and testing tools to prevent the introduction of unlawful materials into the U.S., while funding for information analysis and infrastructure protection tops $893 million. The Container Security Initiative (CSI) will receive $62 million to prepare teams of inspectors and special agents to be sent to strategic ports in order to examine freight before it leaves the foreign country. Other funding includes $64 million to develop technology for non-intrusive inspections, $125 million to improve dockside and perimeter security at U.S. ports, and $6.8 billion for the Coast Guard to deploy new Maritime Safety and Security Teams.
With the much needed funding on the way, the Department of Homeland security is able to attend to the critical need of increased maritime security. The approval of the Appropriations Bill confirms the continued commitment of the United States government to ensuring the security of our nation.
Our Consulting Team can provide you with assistance in becoming a certified C-TPAT partner. For more information on how we can help you, please contact our Consulting Team at consulting@shapiro.com.
Source: “White House Fact Sheet Highlights the Recently-Enacted FY 2004 DHS Appropriations Bill” appearing in International Trade Today dated October 8, 2003.
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AES Changes Effective 10/18/03
Effective October 18, 2003, the U.S. Census Bureau has issued a final rule requiring exporters to amend their current procedures. In order to comply with the new regulations, exporters must now electronically file all export information through the Automated Export System (AES) for items identified on the Commerce Control List (CCL) and the United States Munitions List (USML). Manual copies of the Shippers Export Declaration (SED), absent an electronic transmission, will no longer be accepted.
The SED has been changed to include a new field for the Freight Forwarder’s Employer Identification Number. The new form can be accessed at: http://www.census.gov/foreign-trade/regulations/forms/7525v-071803.pdf. Placement of the booking number (sea shipments) in the Transportation Reference Number field is compulsory. Reporting the master air waybill number (air shipments), the bill of lading number (rail shipments), and the freight or pro bill number (truck shipments) are optional.
Option 3, Filing of AES Information, consisting of partial information prior to export and the balance of the information provided within five working days of exportation, has now been eliminated.
The United States Principal Party of Interest (USPPI) must now provide the address of the location from which the merchandise actually begins its journey to the port of export. Census is trying to record the actual point of origin in order to provide more accurate statistics from where a product is distributed or manufactured. In the instance of shipments of multiple origins reported on a single SED, the address from which the commodity of greatest value begins its export passage should be reported or, if such information is not known at the time of export, the address from which the export is sent forth should be registered. Freight forwarders must ask these questions if the information is not provided to them prior to filing of the AES information.
Listed above are the highlights from changes that are now in effect. In order to review all of the changes effective October 18, 2003, please refer to the U.S. Census Bureau (Foreign Trade Statistics) website at: http://www.census.gov/foreign-trade/www/index.html.
If you have any questions, please contact compliance@shapiro.com for further information.
Sources: Federal Register Notices Dated October 9, 2002 and July 17, 2003. These notices can be found on the Census website at http://www.census.gov/foreign-trade/regulations/fedregnotices/index.html#fedreg-0717200.
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Customized Reports Available from Census
Did you know that you could request a customized report from the U.S. Census Bureau Foreign Trade Division? The FTD has a wealth of trade data. Some is very general; some is highly specific. Unless you know what you need, however, all of it can be incredibly confusing. The Foreign Trade Division (FTD) of the U.S. Census Bureau has over 10 years of experience in processing customized trade data requests after having collected statistics on U.S. trade.
The FTD will inform you of any costs associated with a special request (as low as $10.00 to $15.00) before sending any data, confirming whether or not your information is available. If you agree to the cost, they will run the request and forward it to you as quickly as possible.
To view examples of customized requests, please refer to the FTD website at: http://www.census.gov/foreign-trade/adverts/tradedata/guide.html#examples
In order to request a customized trade report, you can call Census at (301) 763-2227 or e-mail Census at ftdreqinfo@census.gov. Please provide the following information when requesting a report:
Name of Contact
Company Name (optional)
Telephone Number
Fax Number (optional)
E-mail Address
Type of Data
- Imports
- Exports
- Imports and exports
Frequency of Data
- Annual
- Monthly
- Year-to-date
- Some combination
Time Period
- 1989 through 2002 (year-to-date)
Commodity Classification Systems
- HS (Harmonized System)
- End-Use
- SITC (United Nations Statistics Division Classification Registry)
- SIC (Standard Industrial Codes)
- NAICS (North American Industry Classification System)
Commodity Codes Requested (using the above classification system)
Additional Notes about the request
For more information, please contact compliance@shapiro.com.
Sources: The U.S. Census Bureau, Foreign Trade Division website located at http://www.census.gov/foreign-trade/adverts/tradedata/index.html
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Transportation Update
Import
Carriers from Italy backed off a planned implementation of a Currency Adjustment Factor (CAF) of 5% effective October 1, 2003 for all exports from Italy to the United States.
Volume from Asian ports remained strong during October, although there was not the anticipated space crunch. We have not seen carriers in a shut out situation. The Peak Season Surcharge will not be extended beyond October 3, 2003.
The increases from Northern Europe to the USA occur; however, the increase was uneven throughout the trade. Some markets took increases of $300.00 per 40’ container, while others had increases of $200.00 per 40’ container. The general average was $100.00 per TEU.
On October 1, 2003, LCL rates from Germany went up $5.00 per 1000kgs/cubic meter.
Export
We were able to stave off the proposed increase by carriers to Northern Europe. While our rate levels will remain the same though the end of January 2004, it is unclear if export rates will surge during the upcoming year. A lot will depend on the recovery of the U.S. economy.
Carriers are attempting to raise rates from the USA as they are at very low levels. Importers are paying more due to the softness of the export market. Higher rates may stabilize the import market, since carriers have been raising import rates frequently to help them balance the revenue on the overall trade.
Air Freight
This is the height of the peak air season to the United States; airfreight rates from Asia continue to rise. Any importer looking to have product on their shelves for Christmas is almost forced to move it by air at this time. Rates have jumped as much as 20% from certain Asian gateways (Hong Kong/Shanghai). Space is extremely tight at the moment.
Swiss Airlines did suspend cargo service to Washington Dulles Airport at the end of September. Our overseas partners have made alternative plans by using various carriers to Washington. We plan to further utilize KLM, Lufthansa and SAS.
The International Air Transportation Association (IATA) has once again postponed the implementation of the revised volumetric conversion of bulky cargo. The carriers will maintain the current 1:6 level as opposed to the suggested 1:5 level. The 16% increases that shippers would have to pay will be postponed until at least sometime in 2004.
Other International Transportation News
The proposed German Highway toll on domestic and foreign trucks over 12 tons has been postponed until January. The government has had some problems with the new computer system that will track each truck on the highway. The amount paid will be based on the distance driven. The government has placed devices on bridges throughout the country and mandated that all trucks have responding software. The German government will also apply a fourteen-cent-per- mile charge on domestic truck traffic. This will raise transportation costs for trucks operating in Germany by as much as 15%. The government is trying to force more cargo off the autobahn and on to the rail or barge.
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