Harmonized System Update 1201 – Changes to the 2012 Harmonized Tariff Schedule

(CBP)

Harmonized System Update (HSU) 1201 was created on January 23, 2012 and contains 9,350 ABI records and 2,155 harmonized tariff records.

Amendments include Modifications to the Harmonized Tariff Schedule of the United States under Section 1206 of the Omnibus Trade and Competitiveness Act of 1988. USITC Publication 4276 (Annex to Presidential Proclamation) signed December 29, 2011, can be found here (126 pages)

Adjustments required by the authentication of the 2012 Harmonized Tariff Schedule (HTS) are also included.

The modified records are currently available to all ABI participants and can be retrieved electronically via the procedures indicated in the CATAIR. For further information about this process, please contact your client representative. For all other questions regarding this message, please contact Jennifer Keeling via email at Jennifer.Keeling@dhs.gov.

Michigan to Build Ambassador Bridge Ramp Within Months

(Journal of Commerce Online – R.G.Edmonson)

Latest development in battle between MDOT, bridge owner

The Michigan Department of Transportation said it will build an off-ramp connecting the Ambassador Bridge, the busiest U.S.-Canada crossing, to two interstate highways within the next few months.

MDOT received the federal go-ahead after Detroit International Bridge Co., the owner of the bridge, deeded the property to the department. MDOT and DIBC have battled over who should have to build the bridge for two years, with the fight most recently leading to the brief jailing of bridge owner, Manuel “Matty” Moroun. Read more here.

WEF Davos: Governments And Business Must Collaborate To Reduce Supply Chain Risk

(Transport Intelligence – John Manners-Bell)

At the World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, the issue of supply chain risk took a high profile, with senior government figures and industry leaders seeking to develop ways in which economic damage caused by disrupted supply chains could be mitigated.

As part of the initiative, a new report was launched at the event. The report, New Models for Addressing Supply Chain and Transport Risks produced in collaboration with Accenture, highlighted the urgent need to review risk management practices. Read more here.

News from TAHOCO: Weekly Updates

An updated list of recently published US government memorandums, notices, regulations and decisions for the week ending January 27, 2011 is now available on our website here.

Obama Calls for ‘Smarter, More Effective Government’

(GovExec.com – Charles S. Clark)

President Obama used his Tuesday State of the Union address to call for a government and financial system for “Americans who work hard and play by the rules,” defending his administration’s use of regulations and pushing the plan he announced earlier to streamline the federal bureaucracy.

“The executive branch . . . needs to change,” he said. “Too often, it’s inefficient, outdated and remote. That’s why I’ve asked this Congress to grant me the authority to consolidate the federal bureaucracy so that our government is leaner, quicker and more responsive to the needs of the American people.”

Much of Obama’s address was crafted around a detailed defense of government’s role in regulating the financial, energy, agriculture and health care industries. “There is no question that some regulations are outdated, unnecessary, or too costly,” he said. “In fact, I’ve approved fewer regulations in the first three years of my presidency than my Republican predecessor did in his. I’ve ordered every federal agency to eliminate rules that don’t make sense.” Read more here.

Realizing Security and Efficiency – White House Supply Chain Strategy on the Right Track

(AirCargoInsights.com)

Agencies and government leaders around the world are starting to get it – security and efficiency are mutually dependent and effectively addressing risk requires a focus on both. The White House released today its  National Strategy for Global Supply Chain Security, which presents the international supply chain as critical to America’s national security. It aims at realizing a secure and efficient supply chain and also speaks to resilience and harmonization – which is in line with the current efforts of the joint CBP/TSA Air Cargo Advanced Screening (ACAS) initiative. Having one of the most powerful organizations in the world include efficiency and coordination in its national strategy speaks volumes about the direction we are heading in cargo security. Read more here.

The Brewing Battle Over the HMT

(DC Velocity – Toby Gooley)

Does the Harbor Maintenance Tax (HMT) on U.S. imports encourage the diversion of cargo through Canada and Mexico?

That question – the subject of an ongoing Federal Maritime Commission (FMC) inquiry – may sound like an obscure exercise in policy analysis. But the inquiry has evolved into a debate over much broader issues, including whether government policies are putting U.S. seaports at a competitive disadvantage and are thereby restricting the country’s economic growth.  Depending on how the government chooses to respond to the FMC’s findings, there could be several potential outcomes: Congress could change the way the HMT is assessed and its funds allocated, the United States could end up in a dispute with Canada and the World Trade Organization (WTO), and costs could rise for many importers and exporters.

Currently, U.S. importers pay a Harbor Maintenance Tax (HMT) of 0.125 percent on the declared value of imported merchandise. Established in the 1980s, the tax and its associated Harbor Maintenance Trust Fund are designed to help fund the U.S. Army Corps of Engineers’ harbor maintenance projects, including dredging. The fund has built up a multibillion-dollar surplus, which critics say is being used to help reduce the federal budget deficit instead of paying for needed waterways improvements. Read more here

Obama Ready to Sign Extension on Softwood

(The Globe and Mail – John Ibbitson)

Did the Obama administration’s decision not to approve the Keystone XL pipeline damage relations with the Harper government? The short answer is no, and proof of that comes Monday, when International Trade Minister Ed Fast will announce the extension of the softwood lumber agreement in Washington.

The agreement, which Canada and the United States signed in 2006 – after years of acrimony, countervails and court actions – expires in 2013. Rather than repeat an unhappy chapter in Canada-U.S. relations, both sides have chosen simply to extend the existing deal until 2015. Read more here.

U.S. Cargo Crime Hits New High

(International Freighting Weekly – David Badger)

More trucks are hijacked, but better security means gangs are forced to target lower-value shipments

Cargo crime in the US hit another record high in 2011, as criminal gangs escaped with hauls worth an average of almost $320,000 – but this figure is down on recent years.  In its annual U.S. Cargo Theft Report, FreightWatch International, a global logistics security services provider, said 974 cargo theft incidents were recorded last year. 

CEO Barry Conlon said: “While the rate of theft continues to rise, we are pleased to see the average value per incident begin to decline.  This shows that shippers, and the industry as a whole, are beginning to secure their high-value cargo more effectively, forcing criminals to target less-valuable loads.” Read more here.

News from TAHOCO: Weekly Updates

An updated list of recently published US government memorandums, notices, regulations and decisions for the week ending January 20, 2011 is now available on our website here.

Changing Pallet Rules to Add Costs of Shipping to Canada

(The Packer – Tom Karst)

The U.S. and Canada are expected to change the requirements for wood pallets transporting goods between the two countries.  Industry officials said the change will add costs for shippers and may stress supplies for shippers in both countries not already using heat-treated ISPM15 compliant pallets.

The proposed regulation on the requirements for wood packaging materials imported from Canada was published in December 2010, but the final rule has not yet been issued. The proposed rule eliminates an exemption allowing wood packaging material from Canada to enter the U.S. without first meeting the treatment and marking requirements required of wood packaging from all other countries. According to the proposal, removing the exemption is necessary to prevent invasive pests from entering the U.S.

“It was supposed to start last year, but the regulation did not get published and that’s why everything is on hold,” said Edgar Deomano, technical director for the National Wood Pallet and Container Association.  Deomano said Canada is ready to enforce the regulation but is waiting for an agreement with the U.S. so the two countries can begin enforcement at the same time, he said. Read more here.

Argentina Prepares List of Capital Goods Subject to Higher Import Tariffs

(MercoPress)

The Argentine government has began a round of consultations with the manufacturing sector to determine which capital goods from non Mercosur members can be listed for a higher common external tariff as was recently agreed by the trade block.

The Ministry of Industry contacted the Argentine Chamber of Industry Machinery and Equipment Manufacturers requesting they supply a list of products they consider a priority to be incorporated into the one hundred tariff positions to which Argentina will apply a higher common external tariff, in accordance with the latest Mercosur summit.

Capital goods manufacturers must also identify those products which they consider must be added to the non automatic import licence system or should be protected against dumping practices. Read more here.

OMB Tasks 11 Agencies with Documenting Duplication

(GovExec.com – Charles S. Clark)

Fresh off President Obama’s announcement of a bid to streamline the business and trade agencies, the Office of Management and Budget on Friday directed 11 agencies to participate in a pilot program to inventory trade, export and competitiveness functions with the goal of weeding out duplication.

In a Jan. 13 memorandum, Chief Performance Officer Jeffrey Zients asked the chief operating officers of 11 agencies to appoint a “senior accountable official” by Feb. 1 to coordinate efforts to centralize information on possibly duplicative functions.   

“Duplicative programs make government less effective, waste taxpayer dollars and make it harder for the American people to navigate government services,” Zients wrote. “Critical information on the government’s programs has not been centralized in one place, making it difficult to access information on programs working to achieve similar objectives.” Read more here.

CBP Provides Additional Information on New Centers of Excellence and Expertise

(World Trade Interactive)

U.S. Customs and Border Protection has posted to its Web site additional information about the centers it is establishing to speed the processing of imported goods. The first two – the Center of Excellence and Expertise – Electronics in Los Angeles and the Center of Excellence and Expertise – Pharmaceuticals in New York – were created last October, and others are anticipated in 2012. Each CEE will seek to increase the uniformity of practices across ports of entry, facilitate the timely resolution of trade compliance issues nationwide and further strengthen CBP knowledge on key industry practices. Read more here.

Quarterly IRS Interest Rates Relating to Customs Duties

(World Trade Interactive)

U.S. Customs and Border Protection has updated its quarterly Internal Revenue Service interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties. For the quarter beginning Jan. 1, 2012, the interest rates for overpayments are 2% for corporations and 3% for non-corporations, and the interest rate for underpayments is 3%. These rates are unchanged from the previous quarter.

Mega Brands to Battle Lego in U.S. Court in California Over Trademark

(Ross Marowits – The Canadian Press)

The world’s two largest construction toy companies could soon face off in a California court as Mega Brands seeks to invalidate Lego’s trademark for its plastic blocks.

The Montreal-based toy company is seeking a temporary restraining order to keep its products flowing into the United States.

Mega Brands (TSX:MB) said U.S. Customs and Border Protection plans to restrict the importation of some products sold in the world’s largest toy market for more than 20 years. Read more here.

U.S.-Canada Border Crossings Increase 5%

(Detroit Free Press)

Border crossings increased about 5% in 2011 over the previous year at 11 U.S.-Canada crossing sites, but the modest increase will do little to end debate on the need for a new bridge between Detroit and Windsor.

In all, some 37.1 million cars, trucks, buses and other vehicles crossed the border at the 11 sites among Michigan and upstate New York. Passenger car traffic rose 6.6% to 30.3 million crossings, while commercial truck traffic was flat from the year before at 6.7 million crossings.

The Ambassador Bridge remained the busiest crossing by far, accounting for 4.6 million passenger car crossings and 2.6 million truck crossings. Read more here.

Cross-border Drayage and US Security

(Jim Giermanski – HS Today)

It’s well documented that commercial truck traffic entering the United States from Mexico as is currently practiced poses a serious threat to America’s security.

There are many weaknesses in the system designed and controlled by Mexican citizens with the blessing of the US government, but the most serious flaw may be the resultant drayage, or transfer system, of crossing commercial cargo. The drayage system is just one of the many related security risks.

The risks also include drop lots, or pensiones as they are called in Mexico, that are monopolized by Mexican customs brokers on the border, and the less-than-truck load (LTL) motor carrier crossings that are reliant upon the drayage system. Read more here.