|
|
“Shap” Talk
May 2004 - Issue # 25
In This Issue:
Economic Sanctions against Libya Lifted
FDA Welcomes Comments on Bioterrorism Prior Notice and Facility Registration
New Informed Compliance Publication on Entry Procedures
AGOA Expansion Bill Proposed
FDA Provides Compliance Information on Prior Notice
Possible Limitation on GSP Benefits for Bangladesh
Short-Sea Shipping: A viable alternative to trucking?
Exporters: Watch for upcoming revisions from the BIS
Online Comments for Federal Register Notices
C-TPAT Consulting Services
Did You Know....?
Trade Industry News
Economic Sanctions against Libya Lifted
U.S. economic sanctions against Libya will be lifted in an effort to acknowledge the efforts it has taken to renounce weapons of mass destruction. “The United States will resume most import and export commercial activities, financial transactions, and investments in Libya by US companies. In addition, it will initiate a dialogue on trade, investment, and economic reform with Libya as well as drop its objections to Libyan efforts of joining the WTO. The US will continue to restrict exports of dual-use items to Libya. Exports to Libya of defense articles and services on the US Munitions List (USML) will remain prohibited.
Source: “US Eases Economic Embargo against Libya” appearing in World Trade\INTERACTIVE – Publication prepared by Sandler, Travis, & Rosenberg, P.A. Volume 11, Issue 82, dated April 27, 2004.
Back to top
FDA Welcomes Comments on Bioterrorism Prior Notice and Facility Registration
The Food and Drug Administration (FDA) has published a notice in the Federal Register (April 14, 2004) opening another 30-day comment period regarding the effects of the Bioterrorism Act, which took effect on December 12, 2003. The FDA welcomes comments to particular questions -- namely regulations for submission of advance cargo manifest as well as the timely submission of Prior Notice to the FDA for food articles arriving via vessel, air, or truck. The FDA also welcomes information regarding the negative consequences of foreign facilities having to declare and work with a U.S. Agent as required for the importation of food products for human or animal consumption into the United States.
The FDA is not accepting comments on any additional aspects of the Bioterrorism Act at this time.
FDA also states that it will examine cargo and providing preference to companies participating in the C-TPAT and FAST programs. C-TPAT is a voluntary program to increase security within the supply chain. Participants must perform self-assessments by surveying members of their supply chain using security guidelines outlined by Customs. The FAST program is an expedited border clearance arrangement between the United States and Canada and the United States and Mexico. Benefits are available to C-TPAT and FAST importers, carriers and foreign manufacturers.
Please contact Shapiro’s Compliance Team at compliance@shapiro.com for the list of questions related to submission of the Prior Notice as well as details on requests for information regarding the U.S. Agent requirement on which FDA now seeks specific comment. All written comments must be received by the FDA no later than May 14, 2004.
Sources: Federal Register Notice dated April 14, 2004. http://www.gpoaccess.gov/fr/index.html,
http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/04-8516.htm, http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/04-8517.htm,
http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/04-8515.htm
Back to top
New Informed Compliance Publication on Entry Procedures
U.S. Customs and Border Protection (CBP) has issued a document entitled “What Every Member of the Trade Community Should Know About: Entry.” The document is an overview of the requirements of the entry process regarding imported merchandise.
The publication “What Every Member of the Trade Community Should Know About: Entry” contains the following information:
- General Rule for Entry Requirements, Including Exceptions
- Right to Make Entry
- Types of Entry
- The Entry Process
- Consequences of Late Filing of Entry Documents
- Time of Entry
- Bond Requirements
- Special Permit for Immediate Delivery
- Examination, Detention, and Release
- Recall of Merchandise Released from CBP Custody
- Additional Information: The Internet, Customs Regulations, Customs Bulletin, Importing into the United States, Informed Compliance Publications, Value Publications, Comments
The new “Entry” informed compliance publication is available at:
http://www.cbp.gov/ImageCache/cgov/content/laws/informed_5fcompliance_5fregs/icp073_2epdf/v2/icp073.pdf
Sources: “What Every Member of the Trade Community Should Know About: Entry” an informed compliance publication published by U.S. Customs and Border Protection dated March 2004 http://www.cbp.gov/ImageCache/cgov/content/laws/informed_5fcompliance_5fregs/icp073_2epdf/v2/icp073.pdf. and “Customs Issues New Informed Compliance Publication on Entry” appearing in Broker Power – International Trade Today, dated April 9, 2004.
Back to top
AGOA Expansion Bill Proposed
On April 1, 2004, the House Ways and Means Committee Chairman presented to the House the African Growth and Opportunity Acceleration Act (AGOA), also referred to by some as “AGOA III”. According to the Committee, the AGOA Acceleration Act would:
- Adopt a 7-year extension of the AGOA program from September 30, 2008 to September 30, 2015;
- Increase the total limit for apparel made from AGOA eligible countries or third country fabric/yarn to a maximum of 7% by September 30, 2015;
- Lengthen duty-free sub-limit on AGOA apparel assembled from third country fabric/yarn from September 30, 2004 to September 30, 2007, to include a phase-down by 50% in the third year;
- Employ a trade advisory committee and assist increased collaboration between customs services and sub-Saharan countries;
- Authorize the possible enrollment of future Free Trade Agreement partners for African imports to the U.S;
- Promote investment in infrastructure projects such as railway and port developments;
- Support agricultural technical assistance with the purpose of guiding AGOA countries on sanitary and phytosanitary improvements;
- Sponsor projects that promote trade capacity increase.
For more information, please click on the following link: http://waysandmeans.house.gov/media/pdf/trade/hr4103.pdf
Sources: “AGOA Expansion Bill Introduced in the House” appearing on International Trade Today on April 6, 2004.
Back to top
FDA Provides Compliance Information on Prior Notice
The Food and Drug Administration (FDA) is providing industry and the public with summary information about the level of compliance with the prior notice (PN) requirements, including data on the types of errors in submitted prior notices. FDA has issued a document entitled “Compliance Summary Information: Prior Notice,” which describes PN submissions received during the first two months after the interim final rule requiring prior notice of imported foods became effective December 12, 2003.
FDA indicates that it received over 140,000 prior notice submissions per week during February. About 88% were submitted through the Customs and Border Protection Automated Commercial System (ACS). Approximately 12% were submitted through FDA’s new Web-based Prior Notice System Interface. With the exception of a small decline during January, the number of submissions is increasing.
With respect to the ACS submissions, FDA states that slightly less than half of the total number of lines submitted for the weeks of December 27, 2003 through February 21, 2004 had complete PN. Slightly over half of these submissions had some, but not all, of the PN information required and only a very few lacked any of the specific PN information.
FDA states that, for PNSI submissions, the percent of complete submissions was somewhat higher and attributes this to the fact that PNSI validation will not allow submission without some required information.
The comparison of submissions from ACS and PNSI helps to define where efforts to increase compliance need to be concentrated. Some of the differences between the systems are attributable to the current differences in edit checks between PNSI and ACS. During the enforcement discretion phase, elements such as Registration Numbers were left open to allow time for submitters to change their procedure to begin capturing and entering the required data. In both cases, compliance for imports via land (largely trucks) generally lagged behind that for other modes of transportation. The FDA states that this may indicate one of many areas where compliance is particularly challenging, and which may require further outreach and cooperation between FDA and industry to obtain full compliance.
FDA’s Prior Notice Compliance Summary (dated 04/02/04) is available at
http://www.cfsan.fda.gov/~pn/pnsum.html
Sources: “FDA Issues Compliance Information on Prior Notice Submissions for Imported Foods” appearing on International Trade Today dated April 8, 2004.
Back to top
Possible Limitation on GSP Benefits for Bangladesh
The Office of the U.S. Trade Representative (USTR) is seeking public comments by May 12, 2004, on the possible limitation, suspension, or withdrawal of Generalized System of Preferences (GSP) benefits from Bangladesh. USTR would like to review the public’s opinion on which products from Bangladesh origin should lose eligibility for GSP duty-free benefits, if the GSP Subcommittee recommends that GSP benefits should be limited.
The USTR reported that if the GSP Subcommittee chooses to recommend that the President limits GSP benefits to Bangladesh, instead of its withdrawal or suspension, it will propose a list of commodities for which duty-free capacity should be removed. The USTR notice indicates that comments are requested on which commodities to include on that list.
The State Department previously stated that full or partial withdrawal of GSP benefits from Bangladesh would only impact a relatively small volume of imports from Bangladesh to the U.S. since only approximately $30 million of those imports took advantage of GSP benefits in 1999.
According to USTR, Bangladesh has not followed through on its former commitment to the United States in permitting its national labor law to be employed in its export process zones (EPZs). Bangladesh’s current policy does not allow EPZs workers the right of freedom of association or collective bargaining.
For more information on USTR’s notice, please click on the following link: http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/pdf/04-8203.pdf
Sources: “USTR Seeks Comments on Possible Withdrawal, Suspension, or Limitation of GSP Benefits for Bangladesh” appearing on International Trade Today on April 13, 2004.
Back to top
Short-Sea Shipping: A viable alternative to trucking?
We all know that the trucking industry is going through very trying times these days. The country’s interstate system is jammed and there is no relief in sight. To make matters worse, many trucking companies have gone out of business, driving the price of domestic trucking up and new federal legislation limiting driver hours means that it is going to be much more difficult to find enough drivers to get products to market in a timely manner.
What are the shippers going to do when highway conditions continue to get worse? There is a new industry focus on short-sea shipping. Right now, over-the-road capacity cannot meet the demands of the ever-growing transportation industry; so many industry experts see short-sea shipping as an alternative to over-the-road trucking. Many domestic carriers are hoping that capacity can be relieved by putting cargo on barges and roll-on roll-off vessels that would take the trucks off the highway and free up drivers to make more trips. This brings about many unanswered questions: Can costs be competitive with trucking, all factors considered? Is speed going to be a factor? Can port facilities handle the additional traffic? What labor force will be used to work these smaller vessels? What type of labor: ILA or Non-ILA? Will the federal government provide funding and port planning? Should we treat the marine transportation system more like the National Highway System? What sort of incentives will get the system going to attract business? Would the U.S. Government waive the Jones Act to allow operators to buy suitable vessels?
One sure thing is that the concept of short-sea shipping is just that: a concept. It just happens to be a concept that is on the front-burner at the Department of Transportation. The Maritime Administration forecasts a doubling of domestic trade within the next twenty years, so we should expect that short-sea shipping to be here for the long haul.
Source: “Can short-sea measure up? For shippers, it boils down to two fundamentals: time and price,” appearing in the Journal of Commerce, Volume 5, Issue 16, dated April 19-25, 2004.
Back to top
Exporters: Watch for upcoming revisions from the BIS
Responsibility of exporters may soon change with upcoming revisions from The Bureau of Industry and Security (BIS). BIS is considering a number of revisions, which are intended to be more definitive when it comes to the responsibility of persons, involved in exporting.
One of the major enhancements will be to increase the number of “red flags” that an exporter must check before shipping. The “red flags” will be increased to twenty-three. All exporters should be checking the current list of red flags for each and every export shipment. The current list of red flags can be found at: http://www.bxa.doc.gov/Enforcement/redflags.htm
BIS will expand the definition of “knowledge.” Under the Export Administration Regulations (EAR). The current definition reads as follows:
Knowledge. Knowledge of a circumstance (the term may be a variant, such as "know," "reason to know," or "reason to believe") includes not only positive knowledge that the circumstance exists or is substantially certain to occur, but also an awareness of a high probability of its existence or future occurrence. Such awareness is inferred from evidence of the conscious disregard of facts known to a person and is also inferred from a person's willful avoidance of facts.
It appears that BIS would like to communicate this more along the lines of a reasonable care provision similar to what is already used in import.
BIS also intends to propose a confirmation process for exporters to use after they have checked all of the red flags, checked all of the current lists that restrict exports to or from a certain person or company, and after they have classified their item(s). BIS has not yet provided a mechanism for this confirmation to be provided from the Bureau or a time frame in which BIS would complete this confirmation verification.
Once this information is made available to the public, Samuel Shapiro and Company, Inc. intends to disseminate a notice to all exporters.
If you need any additional information, please contact compliance@shapiro.com.
Sources: Bureau of Industry and Security Web site http://www.bxa.doc.gov/index.htm and “The Bureau of Industry and Security (BIS) is about to make it both harder and (it claims) easier on exporters to comply with the Export Administration Regulations (EAR)” appearing in International Trade Today dated March 31, 2004.
Back to top
Online Comments for Federal Register Notices
The U.S. Government has created a website that allows users to comment online on notices posted to the Federal Register.
This web site can be accessed at: http://www.regulations.gov.
Regulations.gov is the U.S. Government website that makes it easier for you to participate in Federal rulemaking - an essential part of the American democratic process.
On this site, you can find, review, and submit comments on Federal documents that are open for comment and published in the Federal Register, the Government’s legal newspaper. As a member of the public, you can submit comments about these regulations, and have the Government take your views into account.
The search links include:
- Regulations Published for Comment Today
- Regulations by Topic
- Comments Due Today.
This site also allows a search by Government Agency. There is a drop down box that lists all of the Government Agencies. Other options for searching documents are an “exact phrase” search or an “any key word” search.
Once the document is viewed, there is a hyperlink to click on if you wish to submit your comments on-line. You are allowed to attach various files such as MS Office documents or Adobe PDF documents.
Source: U.S. Government Web site http://www.regulations.gov; “Comments in Response to Federal Register Notices Can Now Be Submitted Via an Online Government Comment Form” appearing in International Trade Today dated March 31, 2004.
Back to top
Shapiro Products & Services
C-TPAT Consulting Services
Customs has intensified efforts to encourage all importers to voluntarily participate in the C-TPAT program. Samuel Shapiro & Company, Inc. offers comprehensive C-TPAT assessment and consulting services. For more information, please contact consulting@shapiro.com or 1-800-695-9465, Ext. 281.
Back to top
Did You Know....?
With the variety of complex issues affecting our industry, it can be challenging to stay well informed on all the changes.
Our Consulting Team keeps abreast of the ever-changing concerns and complexities of today’s trade environment and we are available to communicate this information to you and your staff. Shapiro can arrange to provide private seminars and presentations, at your location, focusing on any industry-related issue. Our team will provide the “expert” speaker(s) as well as provide the related materials on your particular topic of interest.
In addition to presenting private seminars, Shapiro hosts public seminars, available throughout the year, for the importing and exporting communities. It is our way of creating an engaging environment for all interested parties, allowing for an exchange of ideas and information, with the ultimate goal of strengthening business relationships.
For more information on private and public seminars, please contact our Consulting Team.
Back to top
|
|
|
|
