August, 2005 - Issue #40In This Issue:
Samuel Shapiro & Company, Inc. Launches New Domestic Transportation Product
Los Angeles / Long Beach PierPASS Program
Are You Ready for September 16th?
G8 Vows to Increase Fight against Intellectual Property Rights (IPR) Theft
CBP Targets Importers of Branded and Copyrighted Merchandise for Post-Entry Audits
Reasonable Care and Country of Origin Markings
Customs Bonds 101
GSP Amendments Expand Benefits for Asian Countries and Remove Competitive Products
U.S. - Morocco Free Trade Agreement
European Union Issues Directive to Ban Use of Phthalates in Toys
EU Import Restrictions
Customs Upgrades C-TPAT Benefits for Validated Members !
Samuel Shapiro & Company, Inc. is on the Move!
Export Essentials Seminar - It's Not Too Late to Register!
Trade Industry News
Samuel Shapiro & Company, Inc. Launches New Domestic Transportation Product
In an effort to continue to provide existing customers and the marketplace with industry leading logistics solutions, Samuel Shapiro & Company Inc. is pleased to announce the upcoming launch of two large scale domestic transportation programs. These programs bring together the experience of Samuel Shapiro & Company Inc. and the expertise of a leading 3rd Party Logistics Provider (3PL) allowing us to offer complete North American LTL (less-than-truckload) and FTL (full truckload) capabilities.
Whether you are shipping across the state, across the country, or across the continent, Samuel Shapiro & Company Inc. now has improved solutions that include cost analysis, freight auditing, carrier management and negotiations. In addition, customers that use these programs can take advantage of a full complement of value-added services, including real time web-based shipment tracking providing full visibility with any/all carriers used through one common portal! Automated post shipment costing information is also available allowing customers to analyze their cost of goods on any number of levels.
If you ship domestically - STAY TUNED FOR SPECIFIC DETAILS! You will want to know more about this product and just how it can benefit your business!
If you just can’t wait – CONTACT US! We’ll be pleased to discuss your needs, our process and the solutions available. E-mail to domestic@shapiro.com.
At Samuel Shapiro & Company Inc., providing cost effective logistics solutions isn’t one of the things we do – IT’S THE ONLY THING WE DO!
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Los Angeles / Long Beach PierPASS Program
Effective July 23rd, all international container terminals at the Los Angeles and Long Beach ports will be implementing the PierPASS program. This program is designed to reduce congestion in and around these ports and it will affect both import and export container traffic.
Under the PierPASS program, a Traffic Mitigation Fee (TMF) will be assessed for all loaded containers entering or exiting the terminals by road during "peak" hours (Monday through Friday, 3:00 am to 6:00 pm). Cargo moving in and out of the port during "off peak" hours (Monday through Thursday, 6:00 pm to 3:00 am and Saturday from 8:00 am to 6:00 pm) will not be assessed this fee. This should provide cargo owners with an incentive to move cargo at night and on weekends, and will hopefully reduce truck traffic and pollution during peak daytime traffic hours, as well as help to alleviate port congestion.
The Traffic Mitigation Fee will be assessed at the following rate: $40 per TEU (20' equivalent unit) or $80 for all containers larger than a 20' unit.
PierPASS will not assess the TMF on the following:
- Returned empty containers and chassis
- Domestic containers
- Transshipment to other ports
- Intermodal containers departing or arriving that have paid the Alameda Corridor fee
- Non-containerized cargo
If you have a PierPASS account and have not included Samuel Shapiro & Company, Inc. in your e-mail notification to receive PierPASS release/availability information, we will be billing a service fee of $10.00 per TEU to declare and monitor the container. If Samuel Shapiro & Company, Inc. is included in your PierPASS e-mail notification, no service fee will be assessed.
If you do not have a PierPASS account, Samuel Shapiro & Company, Inc. will declare all containers and pay the TMF on your behalf. A service fee of $10.00 per TEU will be charged.
Additional information regarding PierPASS can be found at their website http://www.pierpass.org or obtained by calling their customer service department Monday through Friday 8 am to 5 pm PST at (877) 863-3310.
Our goal is to prevent delays for cargo being picked up during peak and off peak hours. Importers and exporters are encouraged to contact your local Samuel Shapiro & Company, Inc. branch to discuss your specific needs as it pertains to this new program.
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Are You Ready for September 16th?
September 16, 2005 is the date the new USDA regulations take effect for wood packaging material (WPM) entering the United States. If your goods are arriving in the United States on or after September 16, 2005, any WPM must be treated and marked with the IPPC (International Plant Protection Convention) logo, the two letter ISO code for the country that treated the WPM, the unique number assigned by the national plant protection agency of that country to the producer of the wood packaging material, and an abbreviation showing the type of treatment (e.g., HT for heat treatment; MB for methyl bromide). An example of the marking can be found in the final rule published in the Federal Register on September 16, 2004: http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-20763.pdf
The United States is only one of 162 countries that will require heat treatment or methyl bromide fumigation of WPM. Pest infestation in the low grade wood typically used in WPM is a global problem; agriculture and forests have been harmed worldwide. Many exporters must already comply with other countries’ regulations. Canada and Mexico will also be implementing the ISPM 15 requirements on September 16, 2005.
You will not need a wood packaging material statement on your documents. You will not need a fumigation certificate (these requirements for WPM from China and Hong Kong will no longer be in effect on September 16, 2005). Instead, the Animal and Plant Health Inspection Service (APHIS) will be visually inspecting cargo. If the WPM is not marked with the IPPC marking, the goods must be re-exported. The WPM may not be treated or destroyed in the United States. Re-exportation is the only option and a costly one at that. You may arrange to have your merchandise separated from unmarked WPM, but only if approved by APHIS. APHIS will charge a fee for this, and you will incur other costs (the unmarked WPM still needs to be re-exported).
WPM includes, but is not limited to pallets, skids, dunnage, crating, packing blocks, drums, and cases. The new regulations do include some exemptions. Manufactured wood, such as plywood, veneer, fiberboard and particle board, is exempt from the treatment and marking requirements. Pieces of wood less than 6 millimeters (0.24 inches), in any dimension, are exempt. WPM from Canada, loose wood materials (shavings or excelsior), and whisky and wine barrels are all exempt. Note that if your goods are shipped through Canada, the WPM must still be marked. The Canadian exemption is for WPM originating in Canada.
Additional information regarding the new WPM regulations may be found in previous issues of Shap Talk – December 2004, March 2005, April 2005, and July 2005 at http://www.shapiro.com/html/_shap__talk.html.
Make sure your purchase orders, contracts, and letters of credit include a requirement that all WPM furnished by your suppliers is properly marked. Or consider using alternative packing materials such as plastic, metal, or manufactured wood. September 16, 2005 will be upon us soon!
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CBP Targets Importers of Branded and Copyrighted Merchandise for Post-Entry Audits
U.S. Customs and Border Protection (CBP) has implemented a new intellectual property rights (IPR) audit program, targeting companies thought to be at "high risk" for importing counterfeit or copyright infringing merchandise. The post-entry audits may include on-site personnel interviews, documentation reviews to track related financial transactions, and actual warehouse inspections.
CBP's interest in counterfeit goods is not limited to famous brands and high-end products. In 2004 goods seized most often for IPR violations were wearing apparel, cigarettes, handbags, wallets, backpacks, consumer electronics, media, toys, electronic games, watches & parts, batteries, footwear, and computers & hardware.
Samuel Shapiro & Company, Inc. offers expert consulting services. For more information please contact consulting@shapiro.com.
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Reasonable Care and Country of Origin Markings
One of the basic tenets of exercising reasonable care in importing into the United States is country of origin marking. Every article of foreign origin imported into the United States must be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article will permit, and in such a manner as to indicate to the ultimate purchaser in the U.S. the name of the country of origin of the article. The country of origin must also be reported on the Customs entry documentation. Customs regulations require the commercial invoice to include the country of origin of the merchandise (19 CFR 141.86(a)(10)).
It is absolutely crucial your foreign suppliers are aware of U.S. Customs marking requirements. As an importer, it is your responsibility to know where your goods are made and by whom. This is particularly important for textiles to ensure no illegal transshipments are involved.
What is an acceptable country of origin marking? The marking must be in English (goods from a NAFTA country may be marked with the name of the country of origin in English, French, or Spanish). The name of the country may not be abbreviated unless the abbreviation unmistakably indicates the country’s name. For example, “Gt. Britain” is acceptable for Great Britain. “PRC” is not acceptable for the People’s Republic of China; but “P.R. China” is acceptable. “ROC” is not acceptable for Republic of China (Taiwan). ISO country codes, such as “NL,” should not be used as they do not unmistakably indicate the country of origin to the ultimate purchaser. In this case, either “Holland” or “Netherlands” is acceptable. If the foreign spelling is close enough to the English spelling so there is no doubt of the origin, then that is acceptable. Examples are “Brasil” and “Italie.”
Often, we will see documentation that states the country of origin as “EC,” “EEC,” or “European Community.” The Customs Regulations define a “country” as “the political entity known as a nation.” The European Community is an organization of sovereign states. It is not a nation with full political union. Each country in the EC still has independent status. Please ensure your documentation states the actual country of origin, such as Spain, and not “EC,” and your goods are marked accordingly.
What are the penalties for unmarked or incorrectly marked goods? If the article is not marked at the time of importation, it must be properly marked, exported, or destroyed under Customs supervision prior to liquidation. Otherwise, the goods will be subject to 10% additional marking duties. Customs may demand redelivery for items not properly marked. If an importer does not comply with a demand for redelivery, Customs may assess liquidated damages up to three times the value of the merchandise.
If you have any questions concerning proper country of origin marking or how to obtain a binding ruling for marking, please contact consulting@shapiro.com.
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Customs Bonds 101
The purpose of a Customs bond is to guarantee that all customs duties, customs penalties, and other charges assessed by U.S Customs will be properly paid. Anyone who wishes to import goods into the United States is required to post a bond or its cash equivalent. Customs bonds are issued by surety companies authorized by the Department of Treasury to issue Federal surety bonds. If the importer is not able to perform its obligations, the surety will be liable for liquidated damages. The surety is only responsible to cover the claim up to the liability amount of the bond and is allowed to go after the importer for all the money paid on their behalf. Typically, customs bonds are purchased through a customs broker or freight forwarder.
There are two main types of bonds, single entry bond and continuous bond. A single entry bond is obtained for a single entry. The liability amount for this type of bond is not less than the total entered value plus all duties, taxes, and fees, unless the imported merchandise is subject to any other federal agency requirements such as Quota and/or Visa Requirements, FDA, EPA, BATF, FCC and a few others. In these cases, the bond amount will be not less than three (3) times the value of merchandise entered.
The second type of bond is a continuous bond. If an importer has regular shipments throughout the year, a continuous bond can save a considerable amount of money, as a continuous bond may be applied to all of the bond principal’s customs entries at all U.S. ports. Customs requires the amount of this bond to be equal to 10% of the total customs duties paid for the previous year, but not less than $50,000. If there has been no import activity during the previous year, a reasonable estimate for current year is allowed. A continuous bond renews annually until the importer or the surety terminates it.
Customs and Border Protection (CBP) will review the bond on a yearly basis and determine if the liability amount of the existing bond is adequate to ensure compliance with 19 CFR 113.13. If the bond amount is inadequate, CBP will instruct the importer to terminate their bond and replace it with a continuous bond with a higher liability amount. All continuous bond applications must be filed at the National Finance Center, 10 business days prior to the requested effective date.
If you currently import using a single entry bond and would like information regarding obtaining a continuous bond, please contact compliance@shapiro.com.
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GSP Amendments Expand Benefits for Asian Countries and Remove Competitive Products
On June 29, 2005 President Bush authorized a number of amendments to the Generalized System of Preferences (GSP) Program. The changes are the result of the 2004 GSP annual review and have two major effects: (1) expanded GSP benefits for Southeast Asian countries affected by last December’s tsunami; and (2) removal from GSP eligibility of over $1 billion in developing country imports now considered competitive in the US market. Additional changes resulting from this review are expected to be announced in the Federal Register in the near future.
The changes are effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after July 1, 2005. For additional information on GSP changes please contact compliance@shapiro.com.
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U.S. - Morocco Free Trade Agreement
The U.S. - Morocco Free Trade Agreement (FTA) is currently expected to be implemented on January 1, 2006. It had been initially set for implementation in January 2005 but was postponed until July 2005. The International Trade Commission announced a second postponement, however, and as it stands is set for the beginning of next year.
On August 17, 2004, President Bush signed into law the U.S. - Morocco FTA Implementation Act. The next step is for the Moroccan government to enact its legislation to implement the U.S.-Morocco FTA.
Once the final review takes place and notes are exchanged, President Bush can then issue a proclamation implementing the U.S.-Morocco FTA.
Ninety-five percent of the two-way trade in industrial and consumer products will be without tariffs the first day that the U.S.-Morocco FTA goes into effect. The Morocco FTA is a major step forward in implementing President Bush's plan for a Middle East Free Trade Area by 2013.
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European Union Issues Directive to Ban Use of Phthalates in Toys
On July 5, 2005, the EU issued a directive for a total permanent ban of three phthalates in all toys and childcare articles. These plastic softeners have an adverse effect on children’s health per the EU memo, and have been temporarily banned since 1999. This permanent ban will affect all imports to the EU and all products manufactured in the EU with these phthalates.
Under the directive, three phthalates, namely DEHP, DBP and BBP, which have been identified as reprotoxic, will be banned in all toys and childcare articles. DINP, DIDP and DNOP will be banned from use in toys and childcare articles if those articles can be put in the mouth by children.
The EU Council’s agreement should receive formal approval in the fall of 2005.
The full text of this announcement dated July, 5, 2205 (IP/05/838), can be found at: http://europa.eu.int/rapid/pressReleasesAction.do?reference=IP/05/838&format=HTML&aged=0&language=EN&guiLanguage=en
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EU Import Restrictions
AAEI reported in its July 18th edition of the Trade Alert that the EU will be implementing two pieces of legislation covering electrical and electronic equipment (EEE) that could affect U.S. exports of those products and related components. The “Waste Electrical and Electronic Equipment (WEEE) Directive” (20295/EC) restricts the amount of EEE waste dumped in the garbage. AAEI reports that exporters to the EU market will be required to register in the countries of destination and post a financial guarantee covering the cost of EEE recycling.
“Restriction of the Use of certain Hazardous Substances (RoHS) Directive” (2002/96/EC) limits the hazardous-substance content of EEE put on the market.
Directives 2002/95/EC on the restriction of the use of certain hazardous substances in electrical and electronic equipment and 2002/96/EC on waste electrical and electronic equipment are designed to tackle the fast increasing waste stream of electrical and electronic equipment and complements European Union measures on landfill and incineration of waste.
Directive 2003/108/EC amending directive 2002/96/EC advises that Member States shall ensure that by 13 August 2005, the financing of the costs for the collection, treatment, recovery and environmentally sound disposal of WEEE from users other than private households from products put on the market after 13 August 2005 is to be provided for by producers. This can be found at: http://europa.eu.int/eur-lex/pri/en/oj/dat/2003/l_345/l_34520031231en01060107.pdf
A list of Frequently Asked Questions for directives 20295/EC & 20296/EC can be found at: http://www.europa.eu.int/comm/environment/waste/pdf/faq_weee.pdf (These are not legally binding, but meant to be used as a guide)
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Customs Upgrades C-TPAT Benefits for Validated Members
On May 26, 2005, U.S. Customs and Border Protection (CBP) Commissioner Bonner issued written and oral testimony regarding the new tiered benefit structure for the Customs-Trade Partnership Against Terrorism (C-TPAT) program.
The C-TPAT program is a voluntary partnership between CBP and the industry to secure the international supply chain. C-TPAT importers pledge to work to secure supply chains from the foreign factory loading docks of their vendors to the port of arrival in the U.S. CBP, in return, offers C-TPAT shipments expedited processing and provides C-TPAT participants with several other benefits.
To join C-TPAT, a company must conduct a comprehensive self-assessment of its current supply chain security procedures using C-TPAT security criteria and best practices. These organizations must make a commitment to work with their business partners and customers throughout their supply chains to ensure that those businesses also increase their supply chain security. Once an importer is accepted or “certified” into the C-TPAT program, the validation process takes place where information provided by the C-TPAT member is verified by CBP.
CBP has divided C-TPAT members into three tiers and each tier will enjoy a specific set of benefits:
TIER I: Certified companies who receive the benefits of reduced Automated Targeting System (ATS) scoring, and the other benefits of a certified C-TPAT member. These are the companies that have submitted their security plans, committed to meet C-TPAT minimum security criteria, had those plans approved by CBP supply chain security specialists, and based upon vetting, have had no history of significant compliance or law enforcement problems.
TIER II:: Validated C-TPAT companies who receive a further ATS reduction in their scoring, and even fewer inspections. CBP has validated the supply chains of 12 percent of all certified partners, and another 40 percent are in the process.
TIER III: Highest level of C-TPAT which consists of members that are fully certified and validated; these importers exceed the minimum standards and have adopted C-TPAT best practices (i.e. those that use C-TPAT container security devices such as the Smart Box). Certified, validated C-TPAT importers using C-TPAT best security practices will be subject to relatively infrequent random inspections.
Among the added benefits for validated C-TPAT partners, CBP will be moving the shipments of C-TPAT members to the front of the inspection line when a shipment requires examination.
The C-TPAT office at Customs is actively engaged in discussions with FDA and USDA to afford C-TPAT certified members certain benefits from these other government agencies such as fewer cargo examinations for FDA and USDA purposes. CBP states that to truly facilitate compliant trade, the impact of OGA examination rates must be addressed and reduced.
Is C-TPAT right for your organization?
Samuel Shapiro & Company, Inc. can help you make an informed decision with a free, over-the-phone consulting session. For more information, contact us at consulting@shapiro.com or 843-971-0441.
Ready to join C-TPAT?
Samuel Shapiro & Company, Inc. can assist you throughout the entire C-TPAT application process. We are able to gather all pertinent security information from you - through focused interviews - and analyze the information received from your suppliers/product providers. Samuel Shapiro & Company, Inc. drafts and submits your entire C-TPAT application to Customs. For more information, contact us at consulting@shapiro.com or 843-971-0441.
Source: “Statement of Robert C. Bonner Commissioner U.S. Customs and Border Protection” at http://hsgac.senate.gov/_files/STMTBONNERCBP.pdf appearing at The Senate Committee on Homeland Security and Government Affairs’ website on May, 26, 2005.
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Samuel Shapiro & Company, Inc. Products & Services
Samuel Shapiro & Company, Inc. is on the Move!
After 27 years in the World Trade Center, the Baltimore office of Samuel Shapiro & Company, Inc. is moving on August 26th to:
100 North Charles Street, 12th Floor
Baltimore, MD 21201
Tel: 410-539-0540
Tel: 800-695-9465
Fax: 410-547-6935 – Import
Fax: 410-332-1274 – Export
Our phone and fax numbers will remain the same as will our extensions.
We will be closing the Baltimore office at noon on the 26th. Samuel Shapiro & Company, Inc. will be open and ready for business Monday, August 29th at our new location.
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Export Essentials Seminar - It's Not Too Late to Register!
There is still time to register for Shapiro’s Export Essentials Seminar! Don’t miss the chance to learn export opportunities and how to improve your export compliance program!
Samuel Shapiro & Company, Inc. will be hosting a half-day seminar on Thursday, August 11th, 2005, from 8:30 a.m. to 12:00 p.m., at the World Trade Center in Baltimore. Seminar topics will include exporter responsibilities, export regulations, export enforcement, and exporter advocacy services. Featured speakers will be from the Bureau of Customs & Border Protection, Bureau of Industry & Security, and U.S. Census Bureau.
Representatives of the U.S. Export Assistance Center will be present and available at the seminar to address any questions or issues of the exporting community. The U.S. Export Assistance Center is part of a vast network of domestic and international offices, staffed by the U.S. Department of Commerce. They assist firms in exporting by providing expert counseling and advice, information on markets abroad, international contacts and advocacy services. They combine these resources of the Commercial Service with the finance expertise of the Small Business Administration, and can provide information on all Federal programs designed to support international trade.
Seminar Location:
The World Trade Center
401 East Pratt Street
Maryland Room (21st Floor)
Baltimore, MD 21202
Cost:
$100 per person
$75 for each additional attendee from the same company
Register Now! Click on the link below:
http://www.shapiro.com/html/export_seminar.html
For more information contact us by phone at 800-695-9465 ext. 290 or by email at compliance@shapiro.com.
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This newsletter is for informational purposes only. Although every effort is made to ensure accuracy, Samuel Shapiro & Company, Inc. assumes no legal liability for any erroneous information. Links to other websites are provided for reference and convenience and do not constitute endorsement of the content of those sites. |
