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“Shap” Talk
June 2004 - Issue #26
In This Issue:
U.S. Sanctions against Syria
CBP Creates the C-TPAT Status Verification Interface
U.S. and EU Sign Agreement to Improve Container Security and Expand CSI
Private Laboratory Testing for Imported Food under FDA
TSA announces Civil Enforcement Policies for Travelers on Prohibited Items
Trade Restrictions Announced by CITES
FDA Issues Additional Q&A on Prior Notice Requirement for Imported Food
Written Comments Welcome Regarding Revised Export Sanctions against Libya
C-TPAT Consulting Services
Did You Know...?
Trade Industry News
U.S. Sanctions against Syria
On May 11, 2004, after it became apparent that Syria supports terrorism, and has had a hand in sabotaging U.S. efforts in Iraq, President Bush signed an executive order imposing sanctions against the country-- banning all U.S. exports to Syria, except exports of food and medicine. Syrian – U.S. trade totals about $300 million annually.
The sanctions also include:
- A ban on flights to and from the United States;
- Treasury Department authorization to freeze assets of Syrian nationals and companies involved in terrorism, weapons of mass destruction, occupation of Lebanon or terror in Iraq;
- Restrictions on banking transactions between U.S. and Syrian National Bank.
The Syrian Accountability Law which was signed by President Bush in December 2003 allows for the sanction actions that were imposed.
Source: “US to Levy Sanctions on Syria”, by Deb Reichmann, Associated Press writer, appearing on Associated Press Website dated May 11, 2004. http://news.yahoo.com/news?tmpl=story&u=/ap/20040510/ap_on_go_pr_wh/us_syria_1
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CBP Creates the C-TPAT Status Verification Interface
In response to the operational need for certified Customs-Trade Partnership Against Terrorism (C-TPAT) partners to have the capability to verify the participation status of other certified C-TPAT partners, the Bureau of Customs and Border Protection (CBP) has created the Status Verification Interface (SVI).
C-TPAT is a voluntary initiative designed by the CBP that focuses on the development of cooperative relationships between Customs and the business community. C-TPAT members are expected to review current security procedures, discover areas in need of improvement, and develop and implement security enhancements. C-TPAT participants are believed to have many benefits, including a reduced number of inspections and potential eligibility for bi-monthly or monthly duty payments.
The SVI allows consenting certified C-TPAT partners to verify the participation status of other consenting certified C-TPAT partners. Each party must have consented to the release of their company name among the C-TPAT membership. The SVI is the point of electronic access to verify the C-TPAT status of another Status Verification Interface Participant (SVIP).
In order to become eligible to participate in SVI, C-TPAT members must (list not all inclusive):
- Have received written approval from CBP into the C-TPAT program;
- Have provided CBP with authorization by completing the “C-TPAT Consent to Use Company Name” waiver;
- Have been issued a SVIP identification number (SVIP ID) and password by CBP.
If the SVI ID were queried, the inquiring C-TPAT partner would receive the following information:
- The SVI ID of the partner queried
- The SVIP member or company name
- “Doing Business As” (DBA), if applicable
- The SVIP’s C-TPAT certification category indicating the member’s type of business
CBP notes that the SVI information will be updated every 10 to 14 business days; recently added C-TPAT members will be notified via email with their SVIP ID and temporary password. In addition, CBP states that it will not be able to distribute a list of C-TPAT partners for security and confidentiality reasons.
SVI may be accessed through CBP’s website or directly at the following link:
https://apps.cbp.gov/svi
For more information, please visit CBP’s website at the following links:
SVI Overview:
http://www.customs.gov/xp/cgov/import/commercial_enforcement/ctpat/svi/sviOverview.xml
SVI Fact Sheet:
http://www.customs.gov/ImageCache/cgov/content/import/commericial_5fenforcement/ctpat
/svi/svifactsheet_2edoc/v1/svifactsheet.doc
SVI FAQs:
http://www.customs.gov/ImageCache/cgov/content/import/commericial_
5fenforcement/ctpat/svi/svifaq_2edoc/v1/svifaq.doc
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.
Sources: “CBP Announces Creation of the C-TPAT Status Verification Interface” appearing on International Trade Today on April 29, 2004 and “C-TPAT Status Verification Interface (SVI) Overview” appearing on U.S. Customs & Border Protection’s website (http://www.cbp.gov) retrieved on May 6, 2004.
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U.S. and EU Sign Agreement to Improve Container Security and Expand CSI
On April 22, 2004, the European Union (EU) and the Department of Homeland Security (DHS) signed an agreement that focuses on the improvement of container security and prompt expansion of Customs and Border Protection's (CBP) Container Security Initiative (CSI) throughout the European Community.
The objectives of the agreement include expanding CSI, establishing minimum standards for risk-management techniques, and improving public-private partnerships to secure the logistics chain of international trade. The agreement will intensify and broaden Customs cooperation and mutual assistance in customs matters between the European Community and the United States.
According to CBP, the new agreement will provide for the mutual exchange of relevant information and best practices to include the creation of common standards of risk evaluation, inspection, and screening processes. The agreement indicates that a team will be assembled to develop the required operational elements of the expanded cooperation and will encompass container security from all U.S. and EU locations, whether the cargo is in transit, being imported, or transshipped.
For more information, please visit CBP’s website at the following link:
http://www.cbp.gov/xp/cgov/newsroom/press_releases/04222004.xml
Source: “U.S. and EU Sign Agreement to Improve Container Security and Expand CSI” appearing on International Trade Today on April 26, 2004, and “European Community and Department of Homeland Security Sign Landmark Agreement to Improve Container Security and Expand CSI” appearing on U.S. Customs & Border Protection’s website (http://www.cbp.gov) dated April 22, 2004.
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Private Laboratory Testing for Imported Food under FDA
The Food and Drug Administration (FDA) has announced that, for any situation involving automatic hold or detention for certain food products falling under the FDA’s jurisdiction, importers must have testing and sampling done by private laboratories in order to have the shipment released. FDA is now proposing new regulations for importers using sampling services of private laboratories.
Written or electronic comments must be submitted by July 28, 2004. Written or electronic comments on the information collection provisions must be submitted by June 1, 2004. Please refer to the full Federal Register Notice dated April 29, 2004, which can be accessed at: http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/04-9699.htm
Federal Register Summary: The Food and Drug Administration (FDA) is proposing new regulations for persons who use sampling services (services that collect samples for another party) and private laboratories used in connection with imported food. The proposal would require samples to be properly identified, collected, and maintained. Additionally, the proposal would require laboratories to use validated or recognized analytical methods, and to submit analytical results directly to FDA. The proposal is intended to help assure the integrity and scientific validity of data and results submitted to FDA.
Sources: “Private Testing for Imported Food” appearing in AAEI International Trade Alert, Volume 104 Number 18, dated May 3, 2004; and The Federal Register dated April 29, 2004, Volume 69, Number 83, Proposed Rules, Pages 23460-23473 from the Federal Register Online via GPO Access wais.access.gpo.gov.
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TSA announces Civil Enforcement Policies for Travelers on Prohibited Items
The Transportation Security Administration (TSA) has issued sanction guidance for imposing civil penalties. This policy directive provides sanction guidance for imposing civil penalties up to $25,000 per violation for aircraft operators and up to $10,000 per violation for all other "persons," including individuals, when a determination is made that civil penalty enforcement action should be taken. This sanction guidance is being issued to assist TSA personnel on the appropriate application of penalties under TSA's present civil penalty authority.
Please see a copy of the sanction guidance issued by TSA at:
http://www.tsa.gov/public/display?theme=5&content=0900051980091268.
The TSA has also issued guidelines for voluntary disclosure to the TSA. This policy directive relates to information and guidance that may be used by aircraft operators (except individuals), indirect air carriers, foreign air carriers, airports and flight training providers when voluntarily disclosing to the Transportation Security Administration (TSA) apparent violations of TSA regulations listed in paragraph II. The TSA Voluntary Disclosure program does not apply to violations or apparent violations committed by individuals other than individuals as agents of covered regulated entities, under paragraph XI. The Voluntary Disclosure program is implemented by the Aviation Regulatory Inspections Division (ARID), Aviation Operations, TSA.
Please see a copy of the voluntary disclosure program issued by TSA at: http://www.tsa.gov/interweb/assetlibrary/VoluntaryDisclosure.doc
TSA has also provided a list of permitted and prohibited items for consumers, along with the penalty guidance for individuals. This list can be accessed on the TSA website under the Travelers & Consumers section located at: http://www.tsa.gov/public/interapp/editorial/editorial_1012.xml.
For additional information concerning the civil penalty information provided by the Transportation Security Administration, please contact compliance@shapiro.com.
Sources: “TSA Issues Sanctions Guidance for Security Violations by Indirect Air Carriers, Etc” appearing in International Trade Today dated May 4, 2004; and the Transportation Security Administration website Law and Policy located at: http://www.tsa.gov/public/display?theme=5&content=0900051980091268.
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Trade Restrictions Announced by CITES (Convention on International Trade in Endangered Species)
The U.S. Fish and Wildlife Service announced the immediate suspension of the import, export, and re-export of all CITES species with Algeria, Central African Republic, and Guinea-Bissau. The suspension includes tourist souvenirs and personal effects. The Fish and Wildlife agency has also immediately suspended the commercial import, export, and re-export of CITES species with Djibouti, Equatorial Guinea, Guinea, Guinea-Bissau, Liberia, Mozambique, Panama, Rwanda, and Sierra Leone.
For additional information please contact 703.358.1949 (fax: 703.358.2271) for questions relating to import or export or 703.358.2104 (fax: 703.358.2298) for questions relating to CITES and trade restrictions.
Source: CITES Website: http://www.cites.org/
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FDA Issues Additional Q&A on Prior Notice Requirement for Imported Food
The Food and Drug Administration (FDA) has announced additional guidance regarding Prior Notice of imported food. The first guidelines were issued on December 16, 2003. The update responds to additional questions about the prior notice and the interim final rule.
FDA believes that it is reasonable to maintain all responses to questions concerning prior notice of imported food in a single document that is periodically updated as the agency receives and responds to additional questions. The agency will employ the following indicators to help users of the guidance identify the revisions:
- The guidance document will be identified as a revision of a previously issued document
- The revision date of the guidance will appear on its cover
- The edition number of the guidance will be included in its title
- Questions and answers that have been revised or added to the original guidance will be identified as such in the body of the guidance
The guidance responds to various questions raised about Section 307 of the Bio-terrorism Act and the FDA's interim final rule. The Interim Final Rule requires the submission to FDA of prior notice of food, including animal feed, which is imported or offered for import into the U.S.
Additional Questions and Answers Include:
A 1.4 How do I comment on the interim final rule?
A 1.5 What if I have a question about or need clarification on the interim final rule?
A 2.5 How do I arrange for a presentation by FDA on prior notice requirements to my trade group?
B 4.1 Are seeds subject to prior notice requirements?
C 7.2 If I submit prior notice before a food is admitted into a Foreign Trade Zone (FTZ), do I need to submit prior notice again before a food is withdrawn from the FTZ?
C 8.2 Does prior notice apply to food in its natural state, grown by an individual, and sent to an individual in the U.S. as a gift?
C 8.3 Is prior notice required if an individual purchases a food product, made by a third party, and sends it to an individual in the U.S. as a gift?
C 9.2 Are foods included with my household goods subject to prior notice even if the move is covered by the military?
C 12.2 Is prior notice required for meat intended for animal feed or pet food?
C 14.1 Is produce that is inspected by the Animal and Plant Health Inspection Service's (APHIS) Plant Protection and Quarantine (PPQ) or graded by USDA's Agricultural Marketing Service (AMS) subject to FDA's prior notice requirements?
C 15.2 I plan to drive back to the U.S. from Canada with my trunk full of food I purchased there to serve at a family picnic. Is prior notice required?
C 15.3 I plan to drive back to the U.S. from Mexico with my trunk full of shellfish that I plan to sell at a flea market on the U.S. side of the border. Is prior notice required?
C 15.4 I plan to drive back to the U.S. from Canada with my trunk full of samples of finished packaged foods for testing. Is prior notice required?
C 17.2 Are samples of food that are intended for analytical testing for contaminants exempt from prior notice?
D 2.2 What is the deadline if the food is transported by truck, but the truck arrives via ferry due to a water crossing?
D 2.3 What is the deadline if the food walks across the border, such as livestock that are driven across?
D 5.1 What food facility registration numbers must I provide as part of my prior notice submission?
D 6.1 If a food from a known grower is commingled with food from unknown growers, may the submitter still identify only the consolidator instead of the grower?
D 6.2 Does a grower need to be identified if an article of food can no longer be associated with a particular grower? May growing location be used instead?
D 7.1 If my shipment consists of just one type of food in the same size container but under different brand names, do I have to submit a separate prior notice for food labeled with each brand name?
D 7.2 How many prior notice submissions are required and what is the estimated quantity of food shipped if I sell fish to grocery stores in the U.S., who will order the fish in bulk, and the fish is packed and shipped to the U.S. in one of four manners (described in the guidance)?
D 10.2 My food is being shipped in several different containers. Does the Prior Notice System Interface (PNSI) accept multiple container numbers?
D 11.5 Do I need to submit samples to accompany my prior notice submission or to accompany the shipment?
E 2.3 What enforcement discretion is described in FDA's Compliance Policy Guide “Guidance for FDA and CBP Staff/Prior Notice of Imported Food Under the Public Health Security and Bio-terrorism Preparedness and Response Act of 2002"?
E 2.4 Does the enforcement discretion described in FDA's Compliance Policy Guide mean that registration of foreign food facilities is not required until August 2004?
FDA has also added a section entitled “Where to Get Additional Information.” In this section, the FDA lists contact telephone and fax numbers, as well as a contact email address, for the Prior Notice Help Desk. FDA contact – Domenic Veneziano (866) 521-2297
Sources: “FDA Q&A on Prior Notice” (Edition 2, dated May 2004) available at:
http://www.cfsan.fda.gov/~pn/pnqagui2.html; and “FDA Issues Second Edition of Q&A on Prior Notice Requirement for Imported Food,” appearing in International Trade Today dated May 4, 2004, and May 5, 2004.
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Written Comments Welcome Regarding Revised Export Sanctions against Libya
The Bureau of Industry and Security (BIS) is amending the Export Administration Regulations (EAR) to implement President Bush’s April 23, 2004 decision to revise United States sanctions against Libya. For details please see “Shap Talk” issue 25, dated May 2004. The rule also implements the transfer of the licensing jurisdiction for exports to Libya to the Department of Commerce from the Department of Treasury.
This rule is effective April 29, 2004. Comments must be received on or before June 1, 2004. Written comments should be sent to Sheila Quarterman, Regulatory Policy Division, Bureau of Industry and Security, Department of Commerce, P.O. Box 273, Washington, DC 20044, or to e-mail: squarter@bis.doc.gov.
For additional information please contact Joan Roberts, Director, Foreign Policy Controls Division, Office of Nonproliferation and Treaty Compliance, Bureau of Industry and Security, Department of Commerce, P.O. Box 273, Washington, DC 20044; Telephone: (202) 482-4252, or e-mail jroberts@bis.doc.gov.
Sources: Federal Register notice, April 29, 2004 (Volume 69, Number 83, Pages 23625 – 23639) available at: http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.
gpo.gov/2004/04-9717.htm; and American Association of Exporters and Importers International Trade Alert Volume 104, Number 18 dated May 3, 2004.
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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.
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Did You Know...?
Shapiro Will Host International Transportation & Logistics Seminar
Samuel Shapiro and Company, Inc. along with The Jones Motor Group will be hosting a half-day seminar on Thursday, August 19, 2004, from 8:30 am to 12 noon, on International Transportation and Logistics for importers and exporters. Topics will include: letters of credit, INCOTERMS, over dimensional freight, domestic transportation, guides to understanding ocean and air freight containers and more.
For more information contact PJ Bennett or Denice Ziolkowski by phone; 410-539-0540 ext. 206, by fax; 410-547-6935, by email; Denice@shapiro.com or regular mail:
Samuel Shapiro Company, Inc.
World Trade Center
401 East Pratt Street, Suite 500
Baltimore, MD 21202
Seminar Location:
The World Trade Center
401 East Pratt Street
Constellation Room (21st Floor)
Baltimore, MD 21202
Cost:
$150.00 per person and $100.00 for each additional attendee from the same company.
Check In:
Check in and continental breakfast begins at 8:30 am.
Deadline:
Registrations should be mailed or faxed prior to Friday, August 6, 2004. Late registration available until August 13th at an additional $25 charge.
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