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October 2004 - Issue #30

In This Issue:

U.S. President Issues Proclamation Granting GSP Status to Iraq; Modifies AGOA
Anti-Dumping Duty on Chinese Wooden Bedroom Furniture
January 2005 Target Date for Elimination of Textile Quota Restrictions
President Bush Issues New Orders to Reform Intelligence
WTO Members May Retaliate Against the U.S. Byrd Amendment
CBP Trade Symposium Slated for December 2004
DHS Announces $49 Million in Grants to Secure US Ports
The U.S. International Trade Commission Issues Year in Trade 2003 Report
2003 Report Shows Shifts in U.S. Merchandise Trade
Maersk-Sealand to Impose $6 Security Surcharge per Container
Shapiro Names Pappas as Director Regional Sales
Samuel Shapiro & Company, Inc. Walks to Fight Heart Disease
 

Trade Industry News
U.S. President Issues Proclamation Granting GSP Status to Iraq; Modifies AGOA

On September 7, 2004, President Bush designated Iraq a beneficiary of the Generalized System of Preferences program (GSP). GSP status will take effect for goods entered, or withdrawn from warehouse, for consumption on or after 15 days after the date of proclamation.  (Effective September 22, 2004, Iraq is designated as a beneficiary developing country for GSP purposes.)

The following includes the text of the White House statement by the Press Secretary with regard to GSP status for Iraq: http://usinfo.state.gov/mena/Archive/2004/Sep/08-706362.html

The proclamation also modifies the Harmonized Tariff Schedule of the United States to reflect the changes to the African Growth and Opportunity Act (AGOA) made by the AGOA Acceleration Act (AGOA III) with respect to articles entered, or withdrawn from warehouse for consumption, on or after July 13, 2004.  For additional information on AGOA visit: www.agoa.info

The President’s Proclamation can be viewed at the following:
http://www.whitehouse.gov/news/proclamations/
http://www.whitehouse.gov/news/releases/2004/09/print/20040907-5.html

Sources: Office of the Press Secretary, September 7, 2004, www.whitehouse.gov.

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Anti-Dumping Duty on Chinese Wooden Bedroom Furniture

The Department of Commerce has issued an amendment to its preliminary antidumping determination on wooden bedroom furniture from the People’s Republic of China which changes the cash deposit or bond rate for certain Section A respondents from 10.92% to 12.91%. Section A respondents are firms that submitted responses to the International Trade Administration’s (ITA) antidumping questionnaire and who had sales of the merchandise to the United States during the period of the investigation. The amendment was published in the Federal Register on September 9, 2004 and can be viewed at:
http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-20464.pdf

The Department of Commerce also issued a ruling that jewelry armoires and cheval mirrors are not within the scope of the antidumping duty investigation. The scope ruling was issued August 31, 2004 and can be viewed at:
http://ia.ita.doc.gov/download/prc-bedroom-furniture/A-570-890-scope-issues-and-decision-memorandum-08-31-04.pdf

Sources: Federal Register Vol. 69, No. 174 / Thursday, September 9, 2004 / Notices Department of Commerce International Trade Administration [A-570-890] and International Trade Administration Scope Issues and Decision Memorandum dated August 31, 2004.

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    January 2005 Target Date for Elimination of Textile Quota Restrictions

    The Uruguay Round Agreement on Textiles and Clothing (ATC) has slated January 2005 as the target date for full integration of textiles and textile apparel that are manufactured in countries that are members of the World Trade Organization (WTO). This is the fourth and final phase of the integration. On January 1, 2005, all textiles and textile apparel manufactured in a WTO country and exported on/after January 1, 2005 will no longer be subject to quota restrictions.

    The Committee for the Implementation of Textile Agreements (CITA), a committee represented by various federal agencies, is responsible for setting the policy concerning the final phase of the integration. Customs and Border Protection (CBP) is responsible for implementing the policy.

    For further details on the coordination of the final implementation please contact the Quota Enforcement and Administration Branch in Washington, DC at 202.344.2650.

    Frequently Asked Questions have been posted to the Customs Website: http://www.customs.ustreas.gov/linkhandler/cgov/import/textiles_and
    _quotas/wto_quota_elemination/wto_faq/wto_quotaelimination_faq.ctt/wto_quotaelimination_faq.doc

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    President Bush Issues New Orders to Reform Intelligence

    On August 2, 2004, the President directed his Administration to take swift action, consistent with existing laws, on reform initiatives that would strengthen the intelligence community and improve America's ability to find, track, and stop dangerous terrorists. These initiatives are consistent with the valuable recommendations made by the 9/11 Commission, and they build on previous actions the Administration has already taken to better protect America. As the President said on August 2, "All these reforms have a single goal: We will ensure that the people in government responsible for defending America and countering terrorism have the best possible information to make the best decisions."

    The President issued a series of new, far-reaching orders that strain the limits of his authority but are essential to America's security.

    Here are highlights of the new orders and Homeland Security Presidential Directives (HSPDs):

    1. Executive Order Directing the Strengthened Management of the Intelligence Community.  Until a National Intelligence Director (NID) is created, the Director of Central Intelligence (DCI) will:

    • Act as the principal advisor to the President for intelligence;
    • Develop objectives and guidance for the Intelligence Community to ensure timely and effective collection, processing, analysis, and dissemination of intelligence;
    • Determine intelligence collection priorities, manage collection tasking, and resolve conflicts in the tasking of national collection assets;
    • Ensure integrated intelligence collection against enduring and emerging national security threats.

    2. Executive Order Establishing the National Counterterrorism Center (NCTC). The NCTC will:

    • Serve as the U.S. Government's central knowledge bank on known and suspected terrorists and international terror groups, as well as their goals, strategies, capabilities, and networks of contacts and support;
    • Identify counterterrorism intelligence requirements or perform independent, alternative analysis for the intelligence community;
    • Assign operational responsibilities to lead agencies for counterterrorism activities.

    3. Executive Order on Strengthening the Sharing of Terrorism Information to Protect Americans. In this Order, the President:

    • Directed all Executive Branch agencies to make available and promptly share information relating to terrorism with other agencies with counterterrorism functions;
    • Established Information Systems Council that will plan for and oversee implementation of an interoperable terrorism information-sharing environment.

    4.HSPD on Terrorist-Related Screening Procedures. The Directive will:

    • Require comprehensive, coordinated government-wide, terrorist-related screening procedures to detect, identify, and interdict people and cargo that pose a threat to homeland security more effectively;
    • Further improve screening practices across the Nation with respect to border, transportation, critical infrastructure, and other screening efforts to protect our homeland;
    • Enhance terrorist-related screening in a manner that safeguards legal rights.

    5.HSPD on Policy for a Common Identification Standard for Federal Employees and Contractors. The Directive will:

    • Mandate the expedited, public and open development of a uniform standard for Federal employee and contractor identification that ensures security, reliability and interoperability;
    • Help close security gaps and improve our ability to stop terrorists and others from access to or attacks against critical Federal sites and cyber and other information systems; and
    • Improve efficiency among Federal agencies through more consistent systems and practices

    President Bush requires the Secretary of Homeland Security, in coordination with other government agencies, to submit a report setting forth plans and progress in the implementation of this directive.  In addition, the Secretary of Homeland Security, in coordination with the heads of the Federal departments and agencies, shall provide a prioritized investment and implementation plan for a systematic approach to terrorist-related screening that optimizes detection and interdiction of suspected terrorists and terrorist activities no later than 90 days after the date of this directive.

    Sources: “Homeland Security Presidential Directive/Hspd-11” appearing in The White House’s website available at http://www.whitehouse.gov/news/releases/2004/08/20040827-7.html and “Fact Sheet: President Issues New Orders to Reform Intelligence” appearing in The White House’s website available at http://www.whitehouse.gov/news/releases/2004/08/20040827-13.html.

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    WTO Members May Retaliate Against the U.S. Byrd Amendment

    On August 31, 2004, the World Trade Organization (WTO) arbitrators have given a green light for eight WTO Members to retaliate up to more than $150 million against the U.S. for failing to comply with its international trade obligations.

    In January 2003, the WTO ruled as illegal a piece of U.S. legislation commonly known as the “Byrd Amendment”, under which anti-dumping and countervailing duties are distributed to the domestic companies that had requested or supported the imposition of those duties. The WTO gave the U.S. until December 2003 to comply with the WTO ruling but the U.S. missed this deadline. The failure by the U.S. to bring its measure into conformity with WTO rules prompted eight WTO members - Brazil, Canada, Chile, the EU, India, Korea, Japan and Mexico – to request authorization from the WTO to impose additional import duties on US products or to suspend other obligations to the US.

    In addition, the co-complainants may exercise their retaliatory rights, at any time deemed appropriate, in accordance with the award and the requirements of the WTO rules on the settlement of trade disputes. The award of the Arbitrators cannot be appealed. The eight WTO Members strongly urge the US to act immediately to repeal the illegal “Byrd Amendment”.

    The WTO has taken the approach to calculate the level of the additional import duty or other countermeasures based on the amount of payments disbursed to the US industry in the latest annual distribution. Specifically, the authorized level of retaliation is based on the trade effects of the most recent payments distributed from anti-dumping or countervailing duties collected on the products originating from each Member.  Accordingly, those payments shall be multiplied by a factor of 0.72, which is based on an economic model developed by the arbitrator to determine such trade effects.

    The level of sanctions may vary every year so as to reflect the wide variations in the amount of payments made under the Byrd amendment from one year to the other.

    According to Christopher Padilla, Spokesman for the Office of the U.S. Trade Representative (USTR), “the United States is committed to trade policies that ensure a level playing field for American workers and farmers. The United States will comply with its WTO obligations, and the Administration will work closely with Congress to do so in a way that supports American jobs and American workers.”

    Sources: “US Byrd Amendment – WTO says eight WTO Members may retaliate against the US – Joint Press statement by Brazil, Canada, Chile, the EU, India, Japan, Korea, and Mexico” appearing in Europa’s website on August 31, 2004 available at http://europa.eu.int/rapid/pressReleasesAction.do?reference=IP/04/1055&format=HTML&aged=0&language=en&guiLanguage=en and “Statement of USTR Spokesman Christopher Padilla on World Trade Organization (WTO) Arbitrators' Determination on the "Byrd Amendment"” appearing in The Office of the United States Trade Representative’s website on August 31, 2004 available at http://www.ustr.gov/Document_Library/Press_Secretary_Statements/Statement_of_
    USTR_Spokesman_Christopher_Padilla_on_ World_Trade_Organization_(WTO)_Arbitrators'_Determination_on_the_Byrd_Amendme.html

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    CBP Trade Symposium Slated for December 2004

    U.S. Customs and Border Protection (CBP) will host its 5th annual trade symposium on December 9-10, 2004 at the Ronald Reagan Building and International Trade Center in Washington, DC.

    The theme will be “Security and Facilitation of Trade: The Way Forward." The event will include discussions between senior CBP managers and representatives of the international trade and transportation community. Topics will include Department of Homeland Security (DHS)/Border and Transportation Security (BTS) Executive roundtable, Trade Act of 2002 implementation, Bioterrorism Act of 2002, the Container Security Initiative (CSI), and the Automated Commercial Environment (ACE).

    Additional information on the trade symposium registration will be announced on CBP's Web site in October at www.cbp.gov.

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    DHS Announces $49 Million in Grants to Secure US Ports

    On September 13, the Department of Homeland Security (DHS) Secretary Tom Ridge announced the fourth installment of the Port Security Grant that totals more than $49 million dollars. The Port Security Grant Program provides resources for projects to improve security at the nation’s seaports.

    The Department of Homeland Security awarded $92 million in June 2002, $168 million in July 2003, and $179 million in December 2003 in three separate installments as part of the Port Security Grant Program. Seventy-five million dollars was also allotted as part of the Urban Area Security Initiative for port security in August 2003.

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    The U.S. International Trade Commission Issues Year in Trade 2003 Report

    The Year in Trade 2003 report is one of the principal means by which the U.S. International Trade Commission (USITC or the Commission) provides Congress with factual information on trade policy and its administration in calendar year 2003.The report also serves as a historical record of the major trade-related activities of the United States to be used as a general reference by government officials and others with an interest in U.S. trade relations.

    The report has many interesting facts, figures, and discussions related to trade. We think this will be of interest to our importers and exporters. The entire report can be downloaded to a PDF file or viewed on the Internet at: http://www.usitc.gov/pub3700/pub3700.htm

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    2003 Report Shows Shifts in U.S. Merchandise Trade

    The U.S. International Trade Commission has an Internet site that provides analysis, data, and information resources showing competitive aspects of U.S. merchandise trade trends on a country and sector basis.

    The site shows the Exports, Imports, and trade balance, along with key economic events for the following industries.

    • Agricultural Products
    • Minerals and Metals
    • Forest Products
    • Machinery
    • Chemical and Related Products
    • Transportation Equipment
    • Energy-Related Products
    • Electronic Products
    • Textiles, Apparel, and Footwear
    • Miscellaneous Manufactures

    For detailed information, please refer to the U.S. International Trade Commission site located at: http://www.usitc.gov/tradeshifts/default.htm

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    Maersk-Sealand to Impose $6 Security Surcharge per Container

    Maersk-Sealand has announced that it will impose a $6 per container Carrier Security Surcharge scheduled to take effect on October 2, 2004. The surcharge is in response to the costs the company has incurred as of the result of the International Ship and Port Facility (ISPS) Code. In addition to the Carrier Security Surcharge Origin and/or Destination Terminal Security Charges will also be applied as a separate measure.
     
    Source: Journal of Commerce On-line dated 09/07/04, www.joc.com.

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    Shapiro Names Pappas Director Regional Sales

    Baltimore Corporate (July 30, 2004) - Samuel Shapiro and Company, Inc. has named Nicholas J. Pappas as Director of Regional Sales effective July 27. Pappas recently served as Vice President/National Sales Manager of MOL Logistics and has held management responsibility for national transportation and distribution companies within the tri-state area, including New England, Texas, Oklahoma and Ohio.

    Shapiro CEO, Marjorie Shapiro, said, “Our customers expect shipping solutions that provide maximum results and efficiency.  The addition of Nicholas Pappas enables us to offer prospects and customers more than 20 years of his experience in planning solutions.”

    Pappas joins Samuel Shapiro & Company, Inc., which offers a full spectrum of export/import services to assure that all standards for licensing and documentation are met, transportation is timely, and receipt of payment is insured.

    “Nick comes to us with excellent experience primarily in the import consolidation market,” explained Managing Director of Sales and Marketing for Samuel Shapiro, Robert Burdette. “Two customers of ours went out of their way to recommend him, and we have very high hopes for Nick's career here.”

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    Samuel Shapiro & Company, Inc. Walks to Fight Heart Disease

    Employees of Samuel Shapiro & Company, Inc. are joining companies across the nation for the Baltimore Heart Walk on Saturday, October 30, 2004. Co-workers, friends, and neighbors will gather at Rash Field, Inner Harbor for the annual Baltimore American Heart Walk.
     
    "Samuel Shapiro & Company, Inc. will match each employee donation to the American Heart Association during this campaign;" said Janell Schenning, Heart Walk Coordinator and Team Leader for Samuel Shapiro & Company, Inc. "For many Shapiro employees, heart disease is personal."

    Coronary heart disease is America's No. 1 killer. Gail Levy, an Account Coordinator for Shapiro's Baltimore office knows first hand how a heart attack can disguise its symptoms. "My sister was at work and she had an excruciating tooth ache. She quickly went to the doctor's office where he gave her an EKG. The doctor advised her that she was having a heart attack."    

    The Baltimore Heart Walk is an opportunity for everyone to remember his or her friends and family members who have suffered from the disease.  "It's also a time to think about your own hearts and take charge of your own health," warned Levy. "Most women who have heart attacks have back pain, and tooth aches. Women do not have the same symptoms as men." 

    Gail's sister has since recovered from her heart attack; however, she has now adapted a heart healthy attitude by dieting and exercise. Log on to www.americanheart.org and find out about women and cardiovascular disease. Adopt a 12-week program that can make your heart healthy and reinforce a healthy life style by taking it one step at a time. 

    Make this fun-filled 5K walk your first step towards heart health. Go through historic Baltimore, see the sights, get your morning exercise and help the American Heart Association in its fight against heart disease and stroke. Company leader and Team Captain Janell Schenning will check in at 8:00 a.m., the program starts at 8:30 a.m., and the walk commences promptly at 9:00 a.m. See you at the WALK!!! 

    For information on the Baltimore Heart Walk, click onto https://www.kintera.org/faf/donorReg/donorPledge.asp?ievent=36057&lis=1&kntae36057=81830E26657D477B8626662588A7C0FC&supId=8764850 or contact Janell Schenning at 410-539-0540 ext. 260.

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