GHY Tradelines

(World Trade Interactive)

President Obama was expected to sign as early as Jan. 4 the FDA Food Safety Modernization Act, which incorporates the most sweeping changes in U.S. food safety regulation in 70 years. This law will affect all businesses involved in the U.S. food supply chain, foreign and domestic, who will need to meet new requirements related to food safety plans, certification standards and mandatory recalls.

Sandler, Travis & Rosenberg is offering a webinar on Thursday, Jan. 13, to help companies examine the provisions of this new law and plan how to efficiently and economically meet their obligations under it. Topics to be addressed include hazard analysis, written safety plans, verification of controls, import certification, safety standards for certain food categories, more FDA inspections, suspension and revocation of FDA registration, mandatory recalls, and criminal and civil penalties. Click here to register for this webinar.

(American Shipper)

Contrary to industry expectations, U.S. importers have experienced relatively little hardship since the U.S. government began requiring importers to transmit 10 data elements in advance of vessel loading for security screening purposes.

The smooth implementation so far is a byproduct of extensive outreach by U.S. Customs and collaboration with international shippers in the years leading up to the Jan. 26, 2010 enforcement date, which was preceded by a one-year dry run to help both sides familiarize themselves with a new system.

Although the Importer Security Filing has proven less disruptive than anticipated, especially with regard to postponed shipments due to incomplete data, there are still a number of latent issues that trade specialists want to iron out. The top item on their agenda is shortening the statute of limitations for ISF penalties. Read more here.

(JOC via PR Newswire)

Strong export growth experienced across the nation in 2010 was capped by record numbers at many larger ports in November and the momentum is likely to continue in 2011, reports The Journal of Commerce.

Data from research analyst PIERS, a sister company of the JOC, supports the expectation that containerized exports – which jumped nearly 12 percent in the first half of 2010 before slowing in the third quarter – will accelerate to mid- to high single-digit growth over the next few quarters.

Fueled by a growing Asian middle class, overseas crop issues and a weak U.S. dollar, demand for U.S. goods from agriculture to manufactured products is accelerating. Congressional approval of a recently negotiated U.S.-South Korea free trade agreement stands to push those exports upward dramatically.

“I cross my fingers thinking this is too good to be true, but it looks like it’s going to be a long run,” said Howard Wallace, president of Los Angeles Grain Terminal. The grain export growth that began in 2009 could last another two years, he added.

With optimistic outlooks being reported by a range of sectors, the Administration’s goal of doubled exports by 2015 is looking more and more possible. This week’s JOC Cover Story analyzes the 2011 outlook for U.S. exports and supply chain interests, exploring the expectations for various commodities and the ever-present concerns of capacity and rates.

(CBP)

Are you interested in taking advantage of ACE functionality related to CBP forms and declarations? Did you know that once a Non-Reimbursement Blanket Statement declaration record is created in ACE it is considered to be filed at every port of entry? Did you know that declaration records created in ACE apply to both ACE and ACS filed entries? Learn the benefits that this functionality can have for your company. Join the free CBP webinar for brokers and importers titled “Working with ACE Forms and Declarations.”

Date and Time:
• Thursday, January 13, 2011
• 2:00 – 3:30 PM Eastern Time

The “Working with ACE Forms and Declarations” Webinar is designed to introduce the attendees to viewing and responding to a CBP Form 28, 29 and 4647 through the ACE Portal as well as creating, viewing and cancelling declaration records created in ACE.

Access to the forms and declarations hyperlinks must be granted by the Trade Account Owner so please ensure you can view those links on the Accounts tab before signing up for the webinar.

Attendees should come prepared to create a declaration record in ACE. The following blanket declarations are supported in ACE: Affidavit of Manufacturer, Importer Certifying Statement, Non-Reimbursement Blanket Statement (AD/CVD and North American Free Trade Agreement (NAFTA) Certificate of Origin. We will first sign on as an importer and create a Non-Reimbursement Blanket Statement (AD/CVD) declaration record. We will then change to the broker view to create the same record for a non-portal account. We will also be covering cancellation of a declaration record so you will have the option of immediately cancelling the declaration record that you create during the webinar.

Finally, attendees will be reviewing the AM 7002 Trade Declarations report and the ESM 7025 CBP Form 28, 29, 4647 Status Report.

Registration:
Participation in this webinar is limited. Please register early to ensure availability. This webinar will be posted to CBP.gov following the event.

To register, please click here to access the registration form.

Please be on the lookout for email messages from TradeEvents@dhs.gov. An email confirming your registration will be delivered upon acceptance of your registration, and an email providing the Webinar URL will be delivered prior to the Webinar.

Cancellation: Because space is limited, please take the consideration to cancel by January 11, 2011 if you are unable to participate to allow another member of the trade community to participate. If you need to cancel your registration, please click here to complete the cancellation form.

(American Shipper)

A new report details the wide range in costs of operating a distribution center in different parts of the U.S. and Canada.

The Boyd Co., a corporate relocation firm based in Princeton, N.J., said, “with fuel and shipping rates projected to spike significantly in 2011, comparative costs for factors like labor, property taxes, energy and real estate are under the site selection microscope like never before. “While shipping rates are often negotiable among competing carriers, most other operating costs facing the warehouse site planner are fixed and a less than optimum operating cost structure can lead to a compromise of competitive position that will persist for years.” Read more here.

Boyd says copies of its report can be obtained on a complimentary basis by writing contact@theboydcompany.com.

(CBSA)

1. This memorandum refers to the application of anti-dumping duty to importations of certain bicycles originating in or exported from Chinese Taipei and the People’s Republic of China.

2. The memorandum is divided into five sections.

3. A definition of the subject goods is provided.

4. The milestone dates of the investigations are provided, along with the applicable classification numbers.

5. Information regarding the normal value of the subject goods and anti-dumping duty is provided.

(CBSA)

1. The purpose of this Customs Notice is to advise that application forms to transact non-bonded highway carrier operations at point of arrival in Canada (Form BSF329-7) and non-bonded freight forwarder code [to supply electronic supplementary data for advance commercial information (ACI) only, (Form BSF329-9)] are now available in electronic, fill-able, format on the Canada Border Services Agency (CBSA) Web site here. Similar changes to the bonded highway and bonded freight forwarders carrier code applications, and remaining modes, are forthcoming.

2. Forms BSF329-7 and BSF329-9 may now be used in place of forms E369 and E369-1 respectively. It is intended that Forms E369 and E369-1 will be discontinued effective July 1, 2011. Meanwhile, if application forms E369 and E369-1 are used as part of an application package, a separate hard-copy questionnaire must accompany the application. A copy of the CBSA questionnaire can be obtained by sending an email to carrier-cargo@cbsa-asfc.gc.ca.

3. To better serve our clients, and expedite processing of carrier code applications, the above-noted electronic forms now contain data elements taken from both the current application forms, combined with data previously requested on the separate hard-copy questionnaire.

4. In addition, in preparation for the implementation of eManifest for highway carriers, please note that Field # 14 of both electronic application forms asks if a “shared secret” access code to create an account for the e-Manifest portal is required. The eManifest portal is expected to be available in 2011.

5. Please direct any questions regarding this notice to:
Registration Unit, Canada Border Services Agency
Email: carrier-cargo@cbsa-asfc.gc.ca, Telephone: 1-866-749-6623

(Industry Week – Agence France-Presse)

Also mulling separate export quotas for heavy and light rare earths

A report from Dow Jones Newswires on Dec. 30 said that China is considering new export quotas on rare earth alloys – a move that would further restrict shipments of the minerals used in a variety of high-tech industries.

The country – which has a near-monopoly in the industry – is also mulling separate export quotas for heavy and light rare earths, Dow Jones Newswires reported, citing an unnamed official with knowledge of the plans. The commerce ministry declined to comment on the report. Read more here.

(Montreal Gazette – Peter O’Neil, Postmedia News)

Canada’s talks on sealing a historic free trade agreement with the European Union by 2011 remain “ahead of schedule” despite a three-month delay in the presentation of formal offers by each side, according to Trade Minister Peter Van Loan.

While there are numerous areas of dispute, the delay was caused primarily by political concerns in debt-plagued and increasingly protectionist Europe. It was thought that the deal, by liberalizing trade in professional services, could exacerbate tensions over immigration, according to sources close to the talks.

Both sides had planned throughout 2009 to table formal offers on the most sensitive issues – including services, intellectual property, investment, culture and the opening of lucrative government procurement contracts to foreign bidders – prior to the sixth round of talks scheduled for mid-January.

The exchange-of-offers process has been moved to round seven, to take place in Ottawa in April. Read more here.

(World Trade Interactive)

Effective Jan. 26, 2011, the Consumer Product Safety Commission is lifting its stay of enforcement of the testing and certification requirements under the Consumer Product Safety Improvement Act of 2008 with respect to non-children’s products subject to CPSC regulations pertaining to vinyl plastic film, carpets and rugs, and clothing textiles. As a result, as of that date manufacturers (including private labelers) of such products that are imported for consumption or warehousing or distributed in commerce must have such products tested by a third-party conformity assessment body accredited to do so and must issue a certificate of compliance with the applicable regulations based on that testing.

(Washington Post – Joan Lowy, The Associated Press)

An Obama administration proposal aimed at preventing air shipments of lithium batteries from causing fires in flight is drawing fierce opposition from some of the United States’ top trading partners, who say it would disrupt international shipping and drive up the cost of countless products.

The European Union, China, Japan, South Korea and Israel are lobbying against requiring air shipments of lithium batteries and products containing them to meet hazardous cargo regulations, diplomatic and industry officials told The Associated Press.

At a minimum the proposal could cost hundreds of millions of dollars and disrupt the flow of products such as cellphones, laptops, medical devices, water meters and electric car batteries, among others, these governments say.

But the Transportation Department estimates its proposal would cost only $9 million a year. Pilot unions want the additional safety precautions, saying it’s only a matter of time before the batteries cause a plane crash. Read more here.

(Prince George Free Press – Arthur Williams)

Forests, Mines and Lands Minister Pat Bell is feeling optimistic about the forest sector’s future in 2011, following two record-breaking months of exports to Asia. In September B.C. forest product exports to China and Japan exceeded the value of exports to the U.S. for the first time in history. In October the trend continued with $143.7 million in exports to China and Japan, verses $124 million to the U.S., Bell said.

“If we look at 2011, I think it’s going to be a much better year than anyone contemplated five or six months ago,” Bell said. “The Chinese market is not one that anyone could have anticipated the potential of. I’m often accused of being overly optimistic, but even in my most optimistic version it was 2013 to get where we are today.” Read more here.

(Montreal Gazette – Andrew Mayeda, Postmedia News)

Buy American. Negotiations for broader agreement on horizon

Canada will enter negotiations with the United States early next year in the hopes of reaching a broader, long-term agreement based on the Buy American compromise the two sides reached earlier this year, says Trade Minister Peter Van Loan.

The worst fears of Canadian exporters – getting frozen out by their trading partner – became a reality when the U.S. government included Buy American provisions in its $787-billion U.S. economic-stimulus legislation. The bill required all iron, steel and manufactured goods used in construction projects that received stimulus funding to be produced in the United States. […]

Van Loan declined to provide a timeline for a wider deal, noting that individual states will have to be convinced. “It’s too early to predict what the timeline would be, because there’s so many variables. You’re not just dealing with a national government, you’re dealing with specific states,” he said, adding that any deal likely would be separate from the North American Free Trade Agreement. Read more here.

(The Economist Blog)

There was a time when Canadians boasted that the line separating Canada from the United States, stretching for 8,900 kilometres (5,500 miles), formed the world’s longest undefended border. Security measures taken by the American administration in the wake of the terrorist attacks of September 11th 2001 put an end to that. […]

In the last nine years, Canadian governments have tried to keep the border as open as possible for trade while at the same time allaying American security fears with a series of deals. It hasn’t worked. Exporters continue to complain about a thickening of the border, which has helped reduce goods shipments to the United States from 87% of the total in 2001 to 73% in 2009 (though the emergence of new trading partners in the developing world and a lengthy recession south of the border also played a part).

So in some ways it was not a surprise when Stephen Harper, the Canada’s conservative prime minister, confirmed in one of his year-end interviews that Canada was negotiating a new security and economic deal with the Americans. Rumours that something called a perimeter security arrangement was in the works had been circulating for weeks. One media outlet even got its hands on the communications strategy the government would use to sell the deal to Canadians sceptical of giving away sovereignty in exchange for market access. Read more here.

Photo by bbmcshane/Flickr

(Dan Ikenson — Forbes)

A Wall Street Journal editorial today shines a long overdue spotlight on an antidumping case that is emblematic of the dissonance within U.S. trade policy. I, too, wrote about this case last year as an example of how the U.S. antidumping regime undermines U.S. manufacturing, penalizes U.S. exporters, and diminishes chances for achieving the administration’s goal of doubling exports in five years.

In 2005, U.S. Magnesium Corporation, the sole producer of magnesium in the United States, succeeded in convincing the U.S. International Trade Commission and U.S. Commerce Department to impose duties on imports of magnesium from competitors in Russia and China. Before toasting this outcome with some clichéd or specious utterance about how the antidumping law ensures fair trade and a level playing field for U.S. producers, it is important to understand that downstream, consuming industries (those U.S. producers that require for their own production the raw materials and intermediate goods subject to the antidumping measures) have no legal standing in these cases. Read more here.

(Gideon Rachman — Financial Times)

During the past two years, the world has experienced its deepest economic crisis since the 1930s. But – despite the fears of many experts – there has been no major outbreak of protectionism. Globalisation, the economic and political mega-trend of the past three decades, is still firmly in place.

However, when Barack Obama visited India recently, the US president warned his hosts that the debate about globalisation has re-opened in the west. The reasons for this are obvious. The western world has come out of the Great Recession in much worse shape than emerging powers. [...] Americans and Europeans are increasingly ill at ease with the “new world order” that emerged after the end of the cold war. As a consequence, a backlash against globalisation is forming – and it is likely to grow in strength. Read more here.

(Peter Clarke — EETimes/Design & Reuse)

The United States International Trade Commission has announced that it will launch an investigation into various chips and memory controllers and products that contain them, including PC motherboards, modems, routers and computers, following a complaint filed by Rambus Inc.

Rambus was already pursuing six companies through the law courts alleging patent infringement but additional companies cited as targets of the investigation include: Asus, Cisco, Garmin, Hewlett-Packard Hitachi GST, Motorola and Seagate as part of a list of 34 companies. Read more here (subscription required) and here.

(World Trade Interactive)

The International Trade Administration has issued a proposed rule that would modify the methodologies used in certain antidumping duty proceedings to reflect World Trade Organization rulings against the practice of zeroing. Comments on this proposal are due by Jan. 27. All comments must be submitted through the Federal eRulemaking Portal referencing Docket No. ITA-2010-011.

In AD proceedings, the ITA determines margins of dumping by comparing normal value with the export price of comparable merchandise. In a review, the ITA generally will compare normal value and export price using the average-to-transaction method, which involves a comparison of the weighted average normal value to the export price of individual transactions for comparable merchandise. In doing so, the ITA aggregates the results of these comparisons and has not allowed the results of the comparisons for which export price exceeds normal value to offset the results of comparisons for which export price is less than normal value.

In addition, the ITA may determine whether subject merchandise is being sold at less than fair value in an AD duty investigation by comparing the normal values of individual transactions to the export prices of individual transactions for comparable merchandise (the transaction-to-transaction comparison method). However, ITA regulations state that this method will only be used in unusual situations, such as when there are very few sales of subject merchandise and the merchandise sold in each market is identical or very similar or is custom-made. The ITA has thus rarely applied the transaction-to-transaction comparison method, but in the most recent such instance it did not grant offsets for non-dumped comparisons. Read more here.

(Postmedia News/Montreal Gazette)

Canada Border Services Agency officials say they aren’t pulling the agency out of participation in all joint operations with other law enforcement agencies, contradicting earlier news reports.

“The CBSA is not ceasing all joint force operations,” agency vice-president Pierre Sabouriin, said in a statement released last week.

“The CBSA values its strong relationships within the law enforcement community and actively participates in 30 joint force operations partnership with Canadian and American police agencies. This will continue.” Read more here.

(Sean O’Hagan — The Guardian)

It took five sleepless days and nights inside an airport for Simon to capture these shots of seized goods, from counterfeit jewellery to deer penis. The result is a testament to the ingenuity of those attempting to bring banned goods into America – and those preventing them

Taryn Simon’s latest book, Contraband, consists of 1,075 photographs of items confiscated by US customs and the US postal service international mail facility at John F Kennedy international airport, New York, from 16 November to 20 November, 2009.

The seized items include various drugs (Xanax, anabolic steroids, Ritalin, khat, ketamine, hashish), counterfeit jewellery, bags, hats, sportswear, shirts, DVDs and watches as well as several kinds of plants, seeds, grass, nuts and foodstuffs. Among the more exotic confiscated substances are deer antlers, deer blood, deer penis and deer tongue, as well as cow-dung toothpaste and cow urine. Read more here.