Tuesday, April 7, 2009

New ACE Features to Facilitate Information-Sharing Nationwide

(US CBP)

Enhancing efficiency

ACE portal importer account holders will have the option to receive and respond to CBP Forms 28, 29 and 4647 electronically through the ACE Secure Data Portal. Being able to communicate CBP requests and actions via the portal will provide for quicker resolution of entry summary verifications and transactional issues compared to the current paper-based process. Electronic responses will be stored with associated entry summaries, enabling them to be shared within CBP nationwide and reducing the possibility that an importer would be asked to provide the same information at more than one port.

“With ACE, CBP import and entry teams won’t have to wait for additional entry summary information to be sent by mail. They will be able to receive information electronically – potentially much faster,” said Lou Samenfink, executive director of the CBP Cargo Systems Program Office. “This electronic process will benefit both CBP and the trade community through increased efficiency.”

Achieving national visibility and supporting consistency

Establishing a national repository of information will allow every port to trace the history of a CBP review to its conclusion. Electronic access to this information is expected to facilitate consistent decision-making by ports nationwide and supports efforts by CBP to employ a holistic, nationwide approach to managing compliance with trade laws and regulations.

$1 Billion Lawsuit Filed on Behalf of Domestic Producers Against Insurers and U.S. Government for Damages Caused by Dumped Chinese Food Products

(Business Wire)

Today, domestic producers of fresh garlic, crawfish tail meat, canned mushrooms and honey, represented by the law firm of Kelley Drye & Warren LLP, filed a class action lawsuit against major insurance companies to recover close to $1 billion in damages. The Washington, D.C. law firm of Adduci, Mastriani & Schaumberg, LLP is co-counsel with Kelly Drye for many domestic producers of crawfish tail meat.

The complaint states that the insurers’ negligent issuance of customs surety bonds, and subsequent refusal to pay under those bonds, allowed the sale of huge amounts of competing food imports from China at below-cost, or “dumped” prices. This caused severe financial damages to the domestic producers. The lawsuit, filed in the federal Court of International Trade, also claims that the U.S. Customs and Border Protection and the Commerce Department failed to enforce the four antidumping orders issued years ago to protect the domestic producers from dumped Chinese imports. Read more here.

U.S. Levies 10% Softwood Customs Duty

(Bertrand Merotte — Globe & Mail)

The United States is slapping 10 per cent customs duties on four Canadian provinces on imports of softwood lumber products, saying Canada has failed to correct a breach of the softwood trade deal between the two countries.

U.S. Trade Representative Ron Kirk said in a news release that the duties will remain in place until such time as the U.S. has collected $54.8-million (U.S.).

“We regret that Canada has chosen not to meet its commitments and has made this action necessary,” Mr. Kirk said in a statement.

An offer from Canada of $36.66-million last month was not considered to have fixed the breach identified by a trade tribunal in February, according to the U.S. trade office. Read more here.

Monday, April 6, 2009

Product Safety Law Imposes Major Burdens on Auto Suppliers

(Search Autoparts.com)

A legislative reaction to recent toy recalls has unexpectedly impacted the automotive industry – one far removed from children’s products.

Congress responded to the highly publicized lead paint toy recalls in 2007-08 by passing the Consumer Product Safety Improvement Act of 2008 (CPSIA), which requires specific safety-compliance certifications by suppliers.

But despite no connection between children’s products and general automotive maintenance and care products, one CPSIA provision and its interpretation – unless amended – threaten to sweep all such products into a broad safety certification net that will impose significant costs, among other burdens, on these product suppliers, with no demonstrated safety need or benefit to the distribution chain or the consumer. Read more here.

Friday, April 3, 2009

U.S. Manufacturing Orders Up After Six Months of Decline

(Industry Week – Agence France-Presse)

New orders for manufactured goods rose in February after six consecutive monthly declines, the Commerce Department said on April 2 in a new sign that industrial activity may have hit bottom. Orders increased $6.1 billion or 1.8% to $352.2 billion following a hefty 3.5% January decrease, the department said.

Giving a breakdown, the department said new orders for manufactured durable goods in February was up following six consecutive monthly decreases – by $5.6 billion or 3.5% to $164.7 billion. New orders for manufactured nondurable goods increased $500 million or 0.3% to $187.4 billion. Read more here.

Obama Urged to Fill Product-Safety Post as Complaints Mount

(Wall Street Journal – Melanie Trottman)

The head of the Consumer Product Safety Commission urged President Barack Obama Wednesday to appoint a new CPSC chairman to deal with mounting complaints about a consumer-product safety law that has left retailers stuck with more than $1 billion of goods they can’t sell.

The letter, sent to Mr. Obama by CPSC Acting Chairman Nancy Nord, a George W. Bush appointee, was blunt, underscoring concerns about the pace at which the Obama administration is filling key posts at federal agencies. At the CPSC, one of three commission chairs has been vacant for nearly three years. Ms. Nord, a commissioner since 2005, became acting chairman later.

A White House spokesman said: “We are moving ahead in an aggressive fashion on a whole array of issues. When it comes to staffing, we are remarkably ahead of where previous administrations were at this point.” He declined to comment on the specifics of Ms. Nord’s letter.

The most immediate challenge facing the CPSC is the daunting task of clarifying a sweeping consumer-product safety act passed in 2008. The law’s limits on lead in products aimed at children aged 12 and under have made it illegal to sell or distribute numerous items that manufacturers and retailers had in stock as of the effective date for the law’s lead limit, February 10, 2009. Read more here.

Thursday, April 2, 2009

DHS Official: Cargo Mandate Should be Reconsidered

(GovExec.com)

A senior Homeland Security Department official told lawmakers on Wednesday it is time for Congress to reconsider a legal mandate created by Democratic lawmakers that requires all cargo containers to be scanned for weapons of mass destruction at foreign ports before they are shipped to the United States.

The mandate, which Democrats put in a massive 2007 homeland security bill with much fanfare, requires the department to ensure that all U.S.-bound containers are scanned abroad by 2012. At the time, critics complained that the mandate was a “bumper-sticker” security solution that was unrealistic. Homeland Security Secretary Janet Napolitano told lawmakers in late February that meeting the deadline was not feasible, mainly because technology does not exist to do such comprehensive scanning and because obtaining political agreements with other countries is problematic.

Jayson Ahern, acting commissioner of Customs and Border Protection, told the House Homeland Security Appropriations Subcommittee on Wednesday that the mandate “needs to be thoughtfully reconsidered.” Because it is written into the law, the department still must work toward achieving it, taking time and resources away from other priorities, Ahern said. He said the risk that a weapon of mass destruction would be smuggled by a ship container is “minimal” and the department has “more significant vulnerabilities” to address. He added that there is also “a significant amount of international churn” by other countries about what U.S. policy on scanning containers will ultimately be. Read more here.

Wednesday, April 1, 2009

Toward a Better Border: The United States and Canada

(CSCB)

On March 25, 2009 the Canadian International Council (CIC) and The Brookings Institution hosted a conference in Washington entitled “Toward a Better Border: The United States and Canada” to help shed light on the evolving security and economic challenges associated with the Canada-US border and to examine recommendations for improving border policy. U.S. Homeland Security Secretary Janet Napolitano delivered the keynote address.

Video excerpts and transcripts of the conference can be obtained on the CIC website.

CBP Automated Forms Streamline Review Process

(US Customs and Border Protection Agency)

U.S. Customs and Border Protection will automate versions of CBP Forms 28, 29 and 4647, “Request for Information,” “Notice of Action” and “Demand for Redelivery,” respectively, beginning in spring 2009. The new paperless process will allow importers with an Automated Commercial Environment Secure Data Portal account to interact faster and more efficiently with an import specialist to ensure goods are properly classified on the entry summary.

Automating forms saves time

Automating CBP Forms 28, 29 and 4647, the most commonly used CBP forms, will reduce the time and effort of import specialists to provide notification to a filer or request more documentation for roughly 260,000 entry summaries each year – five percent of entry summaries filed. The new automated forms capability is part of entry summary, accounts and revenue initial entry summary types capabilities, to be deployed beginning in spring 2009. These capabilities will enable consumption and informal entry processing, entry types 01 and 11, respectively, to be processed in ACE, the agency’s new commercial trade processing system.

Streamlining procedures ensures efficiency>

… Automating CBP Forms 28, 29 and 4647 facilitates CBP’s goal of streamlining the team review process. During team review, an import specialist uses these forms to interact with filers to ensure imported goods are recorded correctly, modify incorrect classification values or determine if the import complies with U.S. trademark regulations.


Providing additional documentation is easier electronically

Currently, import specialists examine the entry summary for potential inaccuracies, and if more documentation or action is required, paper forms are delivered to importers. Importers or their brokers return the requested information through a mail carrier service, prolonging the time it takes CBP to receive this information and making it difficult for filers to confirm that the information was received by CBP.

With the new automated forms capability, import specialists will be able to send an electronic request for information to importers that have established ACE Secure Data Portal accounts. Importers will have the option of attaching an electronic file containing supplemental materials and using the ACE portal to track the status of their submissions, ensuring CBP has received the requested documentation. Read more here.

U.S. Vows Rapid Action to Address Foreign Trade Barriers

(Industry Week – P. Parameswaran, Agence France-Presse)

Will review enforcement of the labor and environment provisions of existing trade agreements

President Barack Obama’s administration vowed on March 31 to take swift action to open markets that have erected trade and investment barriers against the United States. In its first comprehensive report on trade barriers to lawmakers, the administration said it was concerned particularly by non-tariff barriers by “many nations” that could dampen U.S. recovery from prolonged recession.

The National Trade Estimate Report, required under law each year, described key barriers to U.S. trade and investment in 2008 as well as “the actions being taken” by the office of the U.S. Trade Representative (USTR), Ron Kirk. The report outlined barriers posed by trading partners, including the EU and China.

Kirk said the Obama administration was conducting a review of existing trade agreements, including the enforcement of the labor and environment provisions, and would prioritize and address “the most significant trade barriers.” Read more here.

Enhanced Recall Regulations Proposed Under The Consumer Product Safety Improvement Act Of 2008

(Mondaq – Robert L. Falk et al, Morrison & Foerster LLP)

The Consumer Product Safety Improvement Act of 2008 (the “Act”), which became law on August 14, 2008, imposes a number of new requirements on product manufacturers, distributors, and retailers. The focus of this client alert is the draft regulations proposed by the Consumer Product Safety Commission (“CPSC”) on March 20, 2009 that include guidelines and requirements for product recall notices.

The proposed regulations would apply to manufacturers (including importers), retailers, and distributors of all consumer products and not just “children’s products” otherwise regulated under the Act. They represent a substantial enhancement of past recall-related procedures and likely will impose significantly greater burdens on those who are required to carry out mandatory consumer product recalls in the future. The new requirements will also serve as guidelines the CPSC will use for negotiating the terms of future voluntary product recalls.

The CPSC will be accepting public comments on these regulations until April 20, 2009, after which they are likely to be quickly finalized, published in the Federal Register, and put into effect. Read more here.