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Shap Talk

May 2005 - Issue #37

In This Issue:

Steel Import Monitoring Program Renewed
Tips for New Importers and Exporters
U.S. Trade Representative Notice Regarding Loss of GSP Eligibility
Guidance on FDA Administrative Detention of Food
CBP’s Marking of Country of Origin Publication
New Rules for Storage and Demurrage at the Port of Charleston
Canada Proposes Additional Duties on US Imports
The European Union Proposes Additional Duties on US Imports
Are you FAST?
New C-TPAT Security Guidelines for Importers
Transportation Update
Save the Date!

The Department of Commerce announced on March 11, 2005, that it will be continuing the steel import monitoring program through March 21, 2009. The Steel Import Monitoring and Analysis (SIMA) system is part of the President’s steel safeguard program established in March 2002. The purpose of SIMA is to collect statistics on anticipated steel imports and to provide steel producers, steel consumers, importers, and the general public with information about steel import trends. The program was formerly called the Steel Import Licensing and Surge Monitoring System. While “201 steel” duties were terminated in December 2003, the President directed the Department of Commerce to continue the monitoring system until March 21, 2005.

Along with the extension, Commerce has modified the licensing program by expanding coverage of SIMA to include all basic steel mill products, and by terminating licensing for carbon and alloy flanges and pipe fittings currently covered under the program. The expansion and termination will not take effect until June 9, 2005, to allow affected parties sufficient time to adapt to and implement the new requirements.

The Department of Commerce feels the steel licensing program has proven useful to both steel producers and consumers. SIMA’s goal is to provide timely and accurate data on steel imports with minimal burden on parties subject to licensing requirements. Licenses are required at the time of entry summary, but may be obtained up to 60 days prior to the expected date of importation. License numbers must be reported on the CF7501 Entry Summary at the time of filing. Entry summaries presented without the required license numbers are considered incomplete and are subject to liquidated damages.

Please refer to the Federal Register notice for a complete list of products that will continue to require licensing, those being added to the list, and those that will be removed from the program. The notice may be found at: http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-4971.pdf

Should you have any questions, please feel free to contact Samuel Shapiro & Company, Inc.’s compliance department at compliance@shapiro.com.

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Tips for New Importers and Exporters

Customs & Border Protection has recently posted to its website a useful page entitled “Tips for New Importers and Exporters.” Although the title states the page is for “new” importers and exporters, the information contained therein is quite useful for new and experienced importers and exporters alike. The page contains links to informative publications such as “U.S. Import Requirements,” “Importing into the United States,” and various informed compliance publications. The document also addresses Customs examinations and quota requirements.

The page offers useful advice regarding classification, in particular, “it is important you be able to exactly describe the merchandise you are planning to import. You should be able to provide a full and complete description of the article and answer specific questions like: 1) the country of origin of the merchandise; 2) the composition of the merchandise; and 3) the intended use of the item.” Customs then provides information regarding requesting a binding ruling. Samuel Shapiro & Company., Inc.’s consulting department is available to assist you at any time with your classification needs or binding ruling requests. Please contact us at consulting@shapiro.com.

On the export side, the page presents links to the Bureau of Industry and Security, and the new proposal to require mandatory filing of export information through the AES or AESDirect for all shipments where a Shipper's Export Declaration (SED) is currently required.

The page can be found at: http://www.cbp.gov/xp/cgov/import/communications_to_industry/diduknow.xml

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U.S. Trade Representative Notice Regarding Loss of GSP Eligibility

GSP, or Generalized System of Preferences, provides for duty free treatment for certain merchandise imported directly from designated beneficiary developing countries. On March 29, 2005, the Office of the U.S. Trade Representative published a notice in the Federal Register of certain country and harmonized tariff combinations that are expected to lose GSP eligibility effective July 1, 2005. The Federal Register notice also lists tariff numbers that are currently not receiving GSP benefits, but may be considered for redesignation based on 2004 trade data. The notice is available at the following link: http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-6144.pdf

Each year, the International Trade Commission reviews competitive needs limitations (CNL’s) to determine if a particular commodity from a particular country can retain its GSP status. GSP status can be lost if exports of the tariff number from the country to the U.S. during a calendar year meet either of two CNL’s:

1)The country exports in excess of $115 million (the value limit for 2004) in value of a GSP eligible article, or

2)The country accounts for over 50% of U.S. imports from all countries for the particular tariff number.

The President has the discretion to waive CNL’s or redesignate certain items as GSP eligible. For example, if an article imported from the beneficiary developing country exceeded the 50% CNL, but the value did not exceed the applicable de minimis amount ($17 million for 2004), the President may waive the 50% CNL. Interested parties can apply for waivers with the GSP Subcommittee of the Trade Policy Staff Committee.

The following is a list, by country, of tariff numbers expected to lose GSP eligibility on July 1, 2005:

Country Tariff Number Brief Description (see Harmonized Tariff Schedule for full description) Argentina 1401.90.40 Lime bark, raffia, reeds, rushes   1517.90.10 Edible artificial mixtures of products provided for in headings 1501 to 1515   1602.50.09 Prepared or preserved meat of bovine animals   1901.20.45 Mixes for bakers wares   2305.00.00 Oilcake and other solid residues/peanut oil   2306.30.00 Oilcake and other solid residues/sunflower seeds   3808.40.10 Disinfectants, aromatic   4101.90.35 Raw buffalo hides and skins   4101.90.40 Raw bovine hides and skins   4107.19.50 Whole upholstery leather of bovines and equines Bolivia 2611.00.60 Tungsten concentrates Brazil 1601.00.40 Beef sausages   1701.91.80 Cane/beet sugar and pure sucrose   1702.90.35 Invert molasses   1806.10.43 Cocoa powder   2009.39.20 Lime juice   2826.20.00 Fluorosilicates or sodium or of potassium   2903.69.08 p-Chlorobenzotrifluoride; and 3,4-Dichlorobenzotrifluoride   2934.99.18 Aromatic pesticides   4101.20.40 Whole bovine hides/skins   4101.50.50 Whole raw bovine hides/skins   4107.11.60 Full grain unsplit upper and sole leather of bovines or equine   4412.19.40 Plywood, n/o 6mm thick, outer plies coniferous   7408.19.00 Refined copper wire   8406.90.30 Parts of steam turbines, rotors   8409.99.91 Parts nesi of engines of heading 8408   8410.13.00 Hydraulic turbines and water wheels Colombia 0603.10.80 Cut flowers and flower buds   1702.90.10 Cane/beet sugars and syrups   4101.50.70 Whole raw equine hides and skins   4103.20.20 Raw hides and skins of reptiles   6406.91.00 Parts of footwear, nesoi, of wood Dominican Republic 2306.50.00 Oilcake and other solid residues/coconut Egypt 0712.90.70 Dried fennel, marjoram, savory, tarragon   1202.10.40 Peanuts, not roasted or cooked, in shell Georgia 7202.11.10 Ferromanganese, 2-4% carbon Honduras 8544.30.00 Wiring sets used in vehicles, aircraft or ships India 0710.29.15 Lentils, uncooked or cooked by steaming or boiling in water, frozen   0711.40.00 Cucumbers including gherkins, provisionally preserved   0713.90.60 Dried leguminous vegetables nesi, shelled   0713.90.80 Dried leguminous vegetables nesi, shelled   1301.90.40 Turpentine gum   4106.21.90 Hides and skins of goats or kids   4107.11.40 Full grain unsplit whole buffalo leather   4107.12.40 Grain split whole buffalo leather   4107.91.40 Full grain unsplit buffalo leather   4107.99.40 Buffalo leather other than full grains unsplit and grain splits   5007.10.30 Woven fabrics of noil silk   5208.31.20 Dyed, plain weave certified hand-loomed fabrics of cotton   5208.41.20 Plain weave certified hand-loomed fabrics of cotton   5208.42.10 Plain weave certified hand-loomed fabrics of cotton   5209.31.30 Dyed, plain weave certified hand-loomed fabrics of cotton   5209.41.30 Plain weave certified hand-loomed fabrics of cotton   6802.93.00 Granite monumental or building stone & articles thereof   7113.20.25 Base metal clad w/gold mixed link necklaces & neck chains   7307.21.10 Stainless steel flanges for tubes/pipes   8528.30.50 High definition color video projectors w/CRT, incorporating VCR Indonesia 0410.00.00 Edible products of animal origin, nesi   2909.50.40 Odiferous or flavoring compounds of ether-phenols Kazakhstan 2841.50.10 Potassium dichromoate   2841.90.20 Ammonium perrhenate   8112.12.00 Beryllium, unwrought; beryllium powders   8112.19.00 Beryllium, articles nesoi Pakistan 4106.22.00 Hides and skins of goats or kids Peru 2008.30.96 Citrus fruit nesoi, other than peel or pulp Philippines 0302.69.10 Fish, nesi, excl. fillets, livers and roes, fresh or chilled, scaled   0804.50.80 Guavas, mangoes, and mangosteens, dried   4202.92.04 Insulated beverage bags, outer surface textiles Romania 2903.51.00 1,2,3,4,5,6-Hexachlorocyclohexane Russia 0305.20.20 Sturgeon roe, dried, smoked, salted, or in brine   2804.29.00 Rare gases, other than argon   2850.00.20 Hydride, nitride, azide, silicide and boride of vanadium   2915.34.00 Isobutyl acetate   7202.49.50 Ferrochromium contg 3% or less of carbon   7408.11.60 Refined copper wire Thailand 0810.60.00 Durians, fresh   0813.40.10 Papayas, dried   0813.40.80 Tamarinds, dried   1102.30.00 Rice flour   2006.00.70 Fruit nesi, and nuts, except mixtures, preserved by sugar   2008.99.35 Lychees and longans, otherwise prepared or preserved   2008.99.50 Papayas, other than pulp, otherwise prepared or preserved   8528.12.16 Non-high def. color TV reception apparatus   9016.00.40 Non-electric jewelers balances Turkey 0802.50.20 Pistachios, fresh or dried, in shell   2515.12.20 Travertine, merely cut into blocks or slabs of rectangular (including square) shape   2840.11.00 Anhydrous disodium tetraborate(refined borax)   2840.19.00 Disodium tetraborate (refined borax) except anhydrous   6802.21.10 Travertine monumental or building stone and articles thereof, simply cut/sawn, w/flat or even surface   6802.91.20 Travertine monumental or building stone and articles thereof, dressed or polished, but not further worked, nesoi   7413.00.90 Copper stranded wire, cables, plaited bands   9614.20.60 Clay smoking pipes and bowls Uruguay 0202.30.02 High quality beef cuts, boneless, processed, frozen

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Guidance on FDA Administrative Detention of Food

A guidance booklet entitled, “What You Need to Know About Administrative Detention of Food,” provided by the Food and Drug Administration, has been issued to inform importers, exporters, food manufacturers, processors, packers, and transporters of the procedures for administrative detention of food.

Administrative detention is one of four key components under the Bioterrorism Preparedness and Response Act of 2002 primarily designed to ensure the safety and security of food. The other three provisions are a) the registration of foreign and domestic food facilities, b) the prior notice of all food imported or offered for import into the U.S., and c) the establishment and maintenance of certain records.

Food subject to the administrative detention regulations includes food and beverages for human or animal consumption.  Food regulated exclusively by the Department of Agriculture (USDA), which includes meat, poultry and egg products, is not regulated by administrative detention.

There are differences between import detention and administrative detention. Section 303(a) of the Bioterrorism Act added Section 304(h) to the Federal Food, Drug, and Cosmetic Act, giving authority to FDA to administratively hold an article of food.

Administrative detention is used when an FDA employee has sound information demonstrating that specific goods present a threat to humans or animals.

The assessment of imported foods determines whether the article of food: appears to have been safely produced, packed and held; contains no contaminants, illegal additives, or residues; and is properly labeled.

Additional information on FDA actions involving the Bioterrorism Act is available at www.fda.gov/oc/bioterrorism/bioact.html. FDA Booklet is available at http://www.cfsan.fda.gov/~acrobat/fsbtad.pdf.

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CBP’s Marking of Country of Origin Publication

The office of U.S. Customs and Border Protection (CBP) has revised its brochure entitled “Marking of Country of Origin on U.S. Imports: Acceptable Terminology and Methods for Marking.” The publication is for general information purposes only. Sole reliance on the information may not be considered reasonable care.