(Dallas Morning News – Todd Gillman)
Ron Kirk, the former Dallas mayor tapped as the Obama administration’s point man on trade, met with key senators Tuesday, even as a top business leader voiced doubts that the new president will put much emphasis on trade.
Kirk – a free-trade advocate whose selection caused some grumbling among union activists – met privately with Finance Committee Chairman Max Baucus, D-Mont., and later with the panel’s top Republican, Iowa Sen. Chuck Grassley.
Baucus spokeswoman Carol Guthrie said the chairman pressed the need for heightened enforcement of existing trade deals along with his desire to expand a program that helps U.S. workers displaced by imports. He also emphasized the goal of “strong engagement with Asia,” she said, and added that when it comes to the long-stalled World Trade Organization talks known as the Doha round, “no deal is better than a bad deal.” Read more here.
Wednesday, January 7, 2009
Tuesday, January 6, 2009
ITC Investigation Will Examine Use of First Sale Rule
(World Trade Interactive)
The International Trade Commission has launched an investigation on the use of the First Sale Rule with respect to the customs valuation of imported goods.
The 2008 Farm Bill requires the ITC to submit to the House Ways and Means and Senate Finance committees a report that includes the following information.
• the aggregate number of importers declaring that the transaction value of the imported merchandise is determined on the basis of the First Sale Rule, including a description of the frequency of the use of that method
• the tariff classification of such merchandise on an aggregate basis, including an analysis by sector
• the aggregate transaction value of such merchandise, including an analysis by sector
• the aggregate transaction value of all merchandise imported into the U.S. during the specified one-year period
The ITC does not plan to hold a public hearing in the course of this investigation. However, interested parties are invited to submit written comments no later than April 30. The ITC anticipates that it will transmit its final report to Congress by February 10, 2010.
To assist the ITC in preparing its report, the Farm Bill requires U.S. Customs and Border Protection to provide monthly reports for the period August 20, 2008, through August 19, 2009, that include (a) the number of importers declaring that the transaction value of the imported merchandise is determined on the basis of the first or earlier sale, (b) the tariff classification of such merchandise and (c) the transaction value of such merchandise.
The International Trade Commission has launched an investigation on the use of the First Sale Rule with respect to the customs valuation of imported goods.
The 2008 Farm Bill requires the ITC to submit to the House Ways and Means and Senate Finance committees a report that includes the following information.
• the aggregate number of importers declaring that the transaction value of the imported merchandise is determined on the basis of the First Sale Rule, including a description of the frequency of the use of that method
• the tariff classification of such merchandise on an aggregate basis, including an analysis by sector
• the aggregate transaction value of such merchandise, including an analysis by sector
• the aggregate transaction value of all merchandise imported into the U.S. during the specified one-year period
The ITC does not plan to hold a public hearing in the course of this investigation. However, interested parties are invited to submit written comments no later than April 30. The ITC anticipates that it will transmit its final report to Congress by February 10, 2010.
To assist the ITC in preparing its report, the Farm Bill requires U.S. Customs and Border Protection to provide monthly reports for the period August 20, 2008, through August 19, 2009, that include (a) the number of importers declaring that the transaction value of the imported merchandise is determined on the basis of the first or earlier sale, (b) the tariff classification of such merchandise and (c) the transaction value of such merchandise.
Monday, January 5, 2009
Canadian Report Urges Border Security Pact
(HS Today – Mickey McCarter)
Styled after NORAD, commission would examine security vs. commerce
Once President-elect Barack Obama takes office, he will receive border security recommendations from a wide range of constituencies – including some that are not Americans.
At least one significant pitch has already been made by a prominent Canadian think tank for the United States and Canada to join forces in the creation of a border commission styled on the process that established the North American Aerospace Defense Command (NORAD).
In a report titled “A New Bridge for Old Allies,” the Canadian International Council called for the formation of a Permanent Joint Border Commission (PJBC), which would examine regulations originating from both countries and their impact on border security and commerce with the intent of protecting the economic interests of each. In so doing, the border commission would act much like the Permanent Joint Board of Defense, which meets semi-annually and set the ground rules for setting up the U.S.-Canadian partnership in NORAD.
“A record of unprecedented joint cooperation in defense and security over the past seven decades should be transferable to a mutual confidence in each country’s capacity to collaborate as partners to protect their citizens from threats, be they from terrorists, illegal substances or unsafe products,” the report concluded. “Cooperatively enforced, virtual border security measures based on information technologies and intelligence sharing can be as effective as physical barriers.”
“At the same time, establishing stronger trust at our borders can inspire the confidence necessary to develop joint initiatives aimed at clearing away residual trade and regulatory barriers which greatly weaken our interdependent economic relationship,” the report added.
Two high-level Cabinet officials from each nation’s government would co-chair the board and report back to their heads of state. The commission would include officials from border and economic agencies. The report anticipates the creation of such an organization by the end of 2009.
The report, authored by Michael Kergin and Birgit Matthiesen, sees the border commission as a necessity for reversing losses caused by tightened border security measures since 9/11. Seventy percent of U.S.-Canadian trade is intra-industry while 40% is intra-corporate, the report estimated, and commerce over the border yields $1.7 billion a day.
But despite these figures, U.S. tourism to Canada has dropped 30% since 9/11, the report found. It cited a study by the American Transportation Research Institute, which found that “inefficiencies” in border security have increased trading costs by 10-15%. The Canadian economy pays $952,000 per operational hour for any border delay, totaling losses in the Canadian trucking industry at $280 million annually. The U.S. trucking industry, by contrast, loses $9 billion annually to border delays, creating an economic interest for the United States to consider establishment of the border commission.
The report, first published November 25, 2008, also recognized benefits from the inclusion of Mexico in a larger border security framework.
Styled after NORAD, commission would examine security vs. commerce
Once President-elect Barack Obama takes office, he will receive border security recommendations from a wide range of constituencies – including some that are not Americans.
At least one significant pitch has already been made by a prominent Canadian think tank for the United States and Canada to join forces in the creation of a border commission styled on the process that established the North American Aerospace Defense Command (NORAD).
In a report titled “A New Bridge for Old Allies,” the Canadian International Council called for the formation of a Permanent Joint Border Commission (PJBC), which would examine regulations originating from both countries and their impact on border security and commerce with the intent of protecting the economic interests of each. In so doing, the border commission would act much like the Permanent Joint Board of Defense, which meets semi-annually and set the ground rules for setting up the U.S.-Canadian partnership in NORAD.
“A record of unprecedented joint cooperation in defense and security over the past seven decades should be transferable to a mutual confidence in each country’s capacity to collaborate as partners to protect their citizens from threats, be they from terrorists, illegal substances or unsafe products,” the report concluded. “Cooperatively enforced, virtual border security measures based on information technologies and intelligence sharing can be as effective as physical barriers.”
“At the same time, establishing stronger trust at our borders can inspire the confidence necessary to develop joint initiatives aimed at clearing away residual trade and regulatory barriers which greatly weaken our interdependent economic relationship,” the report added.
Two high-level Cabinet officials from each nation’s government would co-chair the board and report back to their heads of state. The commission would include officials from border and economic agencies. The report anticipates the creation of such an organization by the end of 2009.
The report, authored by Michael Kergin and Birgit Matthiesen, sees the border commission as a necessity for reversing losses caused by tightened border security measures since 9/11. Seventy percent of U.S.-Canadian trade is intra-industry while 40% is intra-corporate, the report estimated, and commerce over the border yields $1.7 billion a day.
But despite these figures, U.S. tourism to Canada has dropped 30% since 9/11, the report found. It cited a study by the American Transportation Research Institute, which found that “inefficiencies” in border security have increased trading costs by 10-15%. The Canadian economy pays $952,000 per operational hour for any border delay, totaling losses in the Canadian trucking industry at $280 million annually. The U.S. trucking industry, by contrast, loses $9 billion annually to border delays, creating an economic interest for the United States to consider establishment of the border commission.
The report, first published November 25, 2008, also recognized benefits from the inclusion of Mexico in a larger border security framework.
FDA Changes Approach to Food Safety Inspections
(Federal Times – Gregg Carlstrom)
Hoping to shore up sagging public confidence, the Food and Drug Administration has abandoned the use of random inspections to ensure food safety in favor of inspections targeted at high-risk production sites.
Under the new approach outlined this month, the agency will focus its attention on farms with poor safety records, importers with lower quality standards, and other at-risk food suppliers.
FDA has struggled with its image this year because of its sluggish response to a salmonella outbreak. It took months to find the source – peppers grown in Mexico – and several more weeks to find the farm that grew the peppers.
The new approach is the first step toward modernizing the inspection process, said Dr. David Acheson, FDA’s associate commissioner for foods. “We’re trying to make better use of the data we’ve got. Do we need more data? Probably,” Acheson said in an interview this month. “But it shouldn’t be: ‘Well, we don’t have enough data, so we’ll just do random inspections.’”
But critics say the agency doesn’t have enough data to know which farmers and distributors are high risk. The problem is particularly acute for imported food, they claim, because less than 1% of imported food is tested.
“How do they determine risks when they’re doing so little testing?” asked Patty Lovera, assistant director of Food and Water Watch, a nonprofit consumer advocate. “Only a fraction of the food ever sees a lab.”
Americans eat about 40% more imported food today than in 1995; the food is produced by more than 189,000 facilities. The growing volume of imports means FDA has little choice but to conduct risk-based inspections: It costs, on average, $16,700 to inspect a foreign facility, so the cost of inspecting each facility once – $ 3.2 billion – exceeds FDA’s annual budget.
The agency is trying to cut down those costs by opening field offices overseas. The first one, in China, opened last month; FDA planned to open two offices in India this month, but Acheson said the attacks in Mumbai will delay those openings. The foreign offices will lower the cost per inspection, but they will still tax the agency’s resources, according a Government Accountability Office report released earlier this year. Read more here.
Hoping to shore up sagging public confidence, the Food and Drug Administration has abandoned the use of random inspections to ensure food safety in favor of inspections targeted at high-risk production sites.
Under the new approach outlined this month, the agency will focus its attention on farms with poor safety records, importers with lower quality standards, and other at-risk food suppliers.
FDA has struggled with its image this year because of its sluggish response to a salmonella outbreak. It took months to find the source – peppers grown in Mexico – and several more weeks to find the farm that grew the peppers.
The new approach is the first step toward modernizing the inspection process, said Dr. David Acheson, FDA’s associate commissioner for foods. “We’re trying to make better use of the data we’ve got. Do we need more data? Probably,” Acheson said in an interview this month. “But it shouldn’t be: ‘Well, we don’t have enough data, so we’ll just do random inspections.’”
But critics say the agency doesn’t have enough data to know which farmers and distributors are high risk. The problem is particularly acute for imported food, they claim, because less than 1% of imported food is tested.
“How do they determine risks when they’re doing so little testing?” asked Patty Lovera, assistant director of Food and Water Watch, a nonprofit consumer advocate. “Only a fraction of the food ever sees a lab.”
Americans eat about 40% more imported food today than in 1995; the food is produced by more than 189,000 facilities. The growing volume of imports means FDA has little choice but to conduct risk-based inspections: It costs, on average, $16,700 to inspect a foreign facility, so the cost of inspecting each facility once – $ 3.2 billion – exceeds FDA’s annual budget.
The agency is trying to cut down those costs by opening field offices overseas. The first one, in China, opened last month; FDA planned to open two offices in India this month, but Acheson said the attacks in Mumbai will delay those openings. The foreign offices will lower the cost per inspection, but they will still tax the agency’s resources, according a Government Accountability Office report released earlier this year. Read more here.
Sunday, January 4, 2009
Richardson Exits Cabinet Due to Probe
(Politico)
New Mexico Gov. Bill Richardson announced Sunday afternoon that he is withdrawing as President-elect Barack Obama’s nominee for secretary of Commerce because of unanswered questions about a federal grand jury investigation back home.
“I have concluded that the ongoing investigation also would have forced an untenable delay in the confirmation process,” Richardson said in an e-mailed statement issued by the transition.
Obama accepted the withdrawal with regret, saying in an accompanying statement that he looks forward to Richardson’s “future service to our country and in my administration.”
Richardson said he had told Obama that “eager to serve in the future in any way he deems useful.”
The grand jury has been investigating “pay-to-play” allegations concerning a New Mexico state contract awarded to a California firm that has contributed to three political committees formed by Richardson, The Associated Press reported last month. Read more here.
New Mexico Gov. Bill Richardson announced Sunday afternoon that he is withdrawing as President-elect Barack Obama’s nominee for secretary of Commerce because of unanswered questions about a federal grand jury investigation back home.
“I have concluded that the ongoing investigation also would have forced an untenable delay in the confirmation process,” Richardson said in an e-mailed statement issued by the transition.
Obama accepted the withdrawal with regret, saying in an accompanying statement that he looks forward to Richardson’s “future service to our country and in my administration.”
Richardson said he had told Obama that “eager to serve in the future in any way he deems useful.”
The grand jury has been investigating “pay-to-play” allegations concerning a New Mexico state contract awarded to a California firm that has contributed to three political committees formed by Richardson, The Associated Press reported last month. Read more here.
Time to End “Zeroing” in Trade Dumping Calculations
(Daniella Markheim — Heritage Foundation)
Brazil and Thailand are the latest to join the list of countries that have filed disputes against the U.S. within the World Trade Organization (WTO) in response to America’s practice of “zeroing” in anti-dumping investigations. Even though the WTO has ruled that zeroing — the tactic of zeroing out dumping calculations when a producer in another country charges a higher price in the U.S. market than in its home market or above its production costs — is not compliant with international trade rules, America refuses to change its dumping methodology. America’s refusal to comply with WTO rulings and eliminate this unfair trade practice erodes U.S. credibility and influence in multilateral trade negotiations and leaves America open to retaliation from affected trade partners. With the new year should come a new commitment to cleaning up U.S. dumping practices.
“Zeroing” is used by the U.S. Department of Commerce (DOC) in its calculation of dumping margins. The DOC first determines a product's “normal value,” which can be based on the product's price in the exporter's home market, the price charged by the exporter in another country, or on the exporter's production costs. The DOC then compares the normal price of the good to the price charged in the U.S. for each sale and calculates the dumping margin--the average of the differences between the two prices. When the normal value of the good is more than the price charged in the U.S., the difference contributes to the dumping margin. However, when the normal value is less than the price charged in the U.S., the DOC assigns a zero value to the transaction rather than deduct the difference from the final dumping margin. This practice of “zeroing” artificially inflates dumping margins, increasing both the likelihood that the DOC will find injury and the value of punitive duties that can be assessed on “dumped” products.
Read the complete article here.
Brazil and Thailand are the latest to join the list of countries that have filed disputes against the U.S. within the World Trade Organization (WTO) in response to America’s practice of “zeroing” in anti-dumping investigations. Even though the WTO has ruled that zeroing — the tactic of zeroing out dumping calculations when a producer in another country charges a higher price in the U.S. market than in its home market or above its production costs — is not compliant with international trade rules, America refuses to change its dumping methodology. America’s refusal to comply with WTO rulings and eliminate this unfair trade practice erodes U.S. credibility and influence in multilateral trade negotiations and leaves America open to retaliation from affected trade partners. With the new year should come a new commitment to cleaning up U.S. dumping practices.
“Zeroing” is used by the U.S. Department of Commerce (DOC) in its calculation of dumping margins. The DOC first determines a product's “normal value,” which can be based on the product's price in the exporter's home market, the price charged by the exporter in another country, or on the exporter's production costs. The DOC then compares the normal price of the good to the price charged in the U.S. for each sale and calculates the dumping margin--the average of the differences between the two prices. When the normal value of the good is more than the price charged in the U.S., the difference contributes to the dumping margin. However, when the normal value is less than the price charged in the U.S., the DOC assigns a zero value to the transaction rather than deduct the difference from the final dumping margin. This practice of “zeroing” artificially inflates dumping margins, increasing both the likelihood that the DOC will find injury and the value of punitive duties that can be assessed on “dumped” products.
Read the complete article here.
Saturday, January 3, 2009
Canadians Face More “Stringent” Border Inspections
(The Observer)
Canadians Face More “Stringent” Border Inspections
Canadian travellers headed to the U.S. can expect increased delays at the border beginning Monday.
Officers with U.S. Customs and Border Protection (CBP) will be targetting drivers who enter the U.S. at the Blue Water Bridge without passports, Chief Ron Smith said Friday.
“It’s going to be more stringent.”
The informed compliance measures are aimed at preparing travellers for the June 1 deadline, when all travellers will be required to show passports at the border.
Though Canadians aren’t required to show a passport until June 1, those without one could be pulled in for a secondary inspection starting Monday, Smith said.
Border guards have been supplying information pamphlets to visitors identifying what documents will be acceptable for entry under the Western Hemisphere Travel Initiative.
CBP has begun tracking motorists who receive the pamphlets and could pull over for inspection those returning on subsequent trips.
Once in secondary, drivers will be advised verbally of the new measures coming in June, Smith said.
“We’re still trying to make sure everyone knows what’s coming.”
Beginning June 1, the initiative requires Canadians to present passports when travelling to the United States through a land border crossing. Currently, Canadians can show birth certificates coupled with other documents, such as a driver’s licence, to gain entry.
Canadians Face More “Stringent” Border Inspections
Canadian travellers headed to the U.S. can expect increased delays at the border beginning Monday.
Officers with U.S. Customs and Border Protection (CBP) will be targetting drivers who enter the U.S. at the Blue Water Bridge without passports, Chief Ron Smith said Friday.
“It’s going to be more stringent.”
The informed compliance measures are aimed at preparing travellers for the June 1 deadline, when all travellers will be required to show passports at the border.
Though Canadians aren’t required to show a passport until June 1, those without one could be pulled in for a secondary inspection starting Monday, Smith said.
Border guards have been supplying information pamphlets to visitors identifying what documents will be acceptable for entry under the Western Hemisphere Travel Initiative.
CBP has begun tracking motorists who receive the pamphlets and could pull over for inspection those returning on subsequent trips.
Once in secondary, drivers will be advised verbally of the new measures coming in June, Smith said.
“We’re still trying to make sure everyone knows what’s coming.”
Beginning June 1, the initiative requires Canadians to present passports when travelling to the United States through a land border crossing. Currently, Canadians can show birth certificates coupled with other documents, such as a driver’s licence, to gain entry.
Enthusiasm for Obama Likely to Wane Once Policies Are Clear
(Madeline Drohan — Globe & Mail)
Canadian enthusiasm for Barack Obama is likely to wane once the warm and fuzzy idea of an Obama presidency becomes a much firmer reality. That will happen later this month when the new president takes office and begins putting flesh on the bones of skeletal policy pronouncements.
While he was embraced by much of the world, Mr. Obama was elected to be president of the United States. In putting American interests first, he will inevitably alienate some of his former international supporters.
Of chief concern to Canadians, including business, are his plans on energy, the environment, and trade. In each of these important areas, his campaign promises and cabinet selections strongly suggest trouble ahead for Canada.
Trade
Mr. Obama raised hackles in Canada when he said last year that he would renegotiate the North America Free Trade Agreement. That alone will cause upheaval in Canada, especially if the renegotiation results in more restricted access to the U.S. market which is a possibility given the protectionist bent of the incoming, Democrat-dominated Congress.
A number of influential voices in Canada have suggested this is an opportunity for Canada to pursue a bilateral course with the U.S., essentially leaving Mexico to one side. That thinking may be flawed.
Canada gets less attention in Washington than Mexico and may be overlooked completely once it is no longer seen as part of a trio. Hispanic voters, many with roots in Mexico, carry a lot of clout in the southern states. And many of the influential jobs that touch on trade have been given to politicians from the southwest. Read the complete article here.
Canadian enthusiasm for Barack Obama is likely to wane once the warm and fuzzy idea of an Obama presidency becomes a much firmer reality. That will happen later this month when the new president takes office and begins putting flesh on the bones of skeletal policy pronouncements.
While he was embraced by much of the world, Mr. Obama was elected to be president of the United States. In putting American interests first, he will inevitably alienate some of his former international supporters.
Of chief concern to Canadians, including business, are his plans on energy, the environment, and trade. In each of these important areas, his campaign promises and cabinet selections strongly suggest trouble ahead for Canada.
Trade
Mr. Obama raised hackles in Canada when he said last year that he would renegotiate the North America Free Trade Agreement. That alone will cause upheaval in Canada, especially if the renegotiation results in more restricted access to the U.S. market which is a possibility given the protectionist bent of the incoming, Democrat-dominated Congress.
A number of influential voices in Canada have suggested this is an opportunity for Canada to pursue a bilateral course with the U.S., essentially leaving Mexico to one side. That thinking may be flawed.
Canada gets less attention in Washington than Mexico and may be overlooked completely once it is no longer seen as part of a trio. Hispanic voters, many with roots in Mexico, carry a lot of clout in the southern states. And many of the influential jobs that touch on trade have been given to politicians from the southwest. Read the complete article here.
Local Manufacturing Woes Likely to Spread to Other Sectors
(Cleveland Plain Dealer)
Recessions don’t respect jobs, security or comfort. Why should they care about calendars?
Flipping the page from 2008 to 2009 probably won’t make much difference. The unwanted visitor already has hung around 13 months. It will slouch away in time, though no one knows when.
Meanwhile, the manufacturing sector is bearing more than its share of the suffering. That’s not a good thing for Greater Cleveland.
Ohio ranks seventh in the nation in non-farm jobs but third in manufacturing employment. The highest concentration is in this region, where employment has been hit especially hard.
This year, economists predict, a further decline in higher-paid manufacturing jobs will threaten other sectors, too.
“Those are jobs that support other industries, home improvements, restaurants, retail spending,” said Robert Scott of the Economic Policy Institute in Washington, a nonprofit research group. “When manufacturing suffers, it takes others with it. And these jobs may not come back quickly.” Read more here.
Recessions don’t respect jobs, security or comfort. Why should they care about calendars?
Flipping the page from 2008 to 2009 probably won’t make much difference. The unwanted visitor already has hung around 13 months. It will slouch away in time, though no one knows when.
Meanwhile, the manufacturing sector is bearing more than its share of the suffering. That’s not a good thing for Greater Cleveland.
Ohio ranks seventh in the nation in non-farm jobs but third in manufacturing employment. The highest concentration is in this region, where employment has been hit especially hard.
This year, economists predict, a further decline in higher-paid manufacturing jobs will threaten other sectors, too.
“Those are jobs that support other industries, home improvements, restaurants, retail spending,” said Robert Scott of the Economic Policy Institute in Washington, a nonprofit research group. “When manufacturing suffers, it takes others with it. And these jobs may not come back quickly.” Read more here.
U.S. Customs Publishes AES Penalty Guidelines
(American Shipper)
U.S. Customs and Border Protection on Friday posted penalty guidelines, effective Feb. 1, for enforcing recent Census Bureau rules requiring exporters and forwarders to electronically file export declarations before cargo is loaded on a transport conveyance.
The regulation requiring use of the Automated Export System, or the Web-based AESDirect, and eliminating the use of paper-based export documents went into effect on July 2. Enforcement technically began on Sept. 30, but the agency postponed the assessment of penalties until it completed its guidelines for how to implement and mitigate penalties.
The new foreign trade rules increase the maximum fine for failure to file, late or incomplete filing or submitting false information to $10,000 per violation. The rules also include provisions for ocean, air, rail and truck carriers prohibiting the transport of cargo that has not been declared through AES.
CBP said first-time violators are likely to receive a warning or informational letter reminding the company about the new rules.
The penalty scale for recorded violations is:
• First offense - $750 to $2,500
• Second offense - $1,000 to $3,500
• Third offense - $1,500 to $5,000
• Fourth offense and beyond - $2,000 to $10,000
Penalty ranges can be lower based on whether there were any mitigating factors, such as voluntary self-disclosure, or whether the company involved showed clear disregard for the law by having multiple violations in the same export transaction, engaging in intentional fraud or meeting other factors. The complete CBP legal bulletin is available here (PDF).
U.S. Customs and Border Protection on Friday posted penalty guidelines, effective Feb. 1, for enforcing recent Census Bureau rules requiring exporters and forwarders to electronically file export declarations before cargo is loaded on a transport conveyance.
The regulation requiring use of the Automated Export System, or the Web-based AESDirect, and eliminating the use of paper-based export documents went into effect on July 2. Enforcement technically began on Sept. 30, but the agency postponed the assessment of penalties until it completed its guidelines for how to implement and mitigate penalties.
The new foreign trade rules increase the maximum fine for failure to file, late or incomplete filing or submitting false information to $10,000 per violation. The rules also include provisions for ocean, air, rail and truck carriers prohibiting the transport of cargo that has not been declared through AES.
CBP said first-time violators are likely to receive a warning or informational letter reminding the company about the new rules.
The penalty scale for recorded violations is:
• First offense - $750 to $2,500
• Second offense - $1,000 to $3,500
• Third offense - $1,500 to $5,000
• Fourth offense and beyond - $2,000 to $10,000
Penalty ranges can be lower based on whether there were any mitigating factors, such as voluntary self-disclosure, or whether the company involved showed clear disregard for the law by having multiple violations in the same export transaction, engaging in intentional fraud or meeting other factors. The complete CBP legal bulletin is available here (PDF).
Friday, January 2, 2009
Cracks in U.S.-China Relations Are Widening Again in Crisis
(Bloomberg via New York Times)
The global recession is re-exposing fissures in United States-China relations that Treasury Secretary Henry M. Paulson Jr. spent more than two years smoothing over.
Mr. Paulson, 62, who visited China 70 times during his career on Wall Street, made improving ties a priority when he arrived at the Treasury in 2006. He advocated diplomacy instead of confrontation, establishing a twice-yearly “strategic economic dialogue” with officials in Beijing, aimed at cooling tensions and deterring Congress from taking up trade sanctions.
The approach produced some results, including a pledge to share data on food safety and agreement to allow foreign mutual funds to invest in China’s stock market. The value of China’s currency, the yuan, rose 21 percent versus the dollar from 2005 levels to redress what American officials saw as an unfair price advantage for Chinese products.
But now, heightened tensions between China and the United States may worsen a contraction in world trade that already threatens to deepen and prolong the economic downturn. The friction comes as President-elect Barack Obama readies a two-year stimulus package worth as much as $850 billion that will require the United States to borrow more than ever from China, the largest buyer of Treasury securities. Read more here.
The global recession is re-exposing fissures in United States-China relations that Treasury Secretary Henry M. Paulson Jr. spent more than two years smoothing over.
Mr. Paulson, 62, who visited China 70 times during his career on Wall Street, made improving ties a priority when he arrived at the Treasury in 2006. He advocated diplomacy instead of confrontation, establishing a twice-yearly “strategic economic dialogue” with officials in Beijing, aimed at cooling tensions and deterring Congress from taking up trade sanctions.
The approach produced some results, including a pledge to share data on food safety and agreement to allow foreign mutual funds to invest in China’s stock market. The value of China’s currency, the yuan, rose 21 percent versus the dollar from 2005 levels to redress what American officials saw as an unfair price advantage for Chinese products.
But now, heightened tensions between China and the United States may worsen a contraction in world trade that already threatens to deepen and prolong the economic downturn. The friction comes as President-elect Barack Obama readies a two-year stimulus package worth as much as $850 billion that will require the United States to borrow more than ever from China, the largest buyer of Treasury securities. Read more here.
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