Thursday, October 7, 2010

CBP: Multiple Consignees and/or Consolidated Entries

(Ministère des Transports, Québec)

You will find attached an information notice sent by US Customs and Border Protection at Champlain. The document provides indications for the use of the electronic manifest by truck carriers when multiple shippers or consignees are involved. It doesn’t create new requirements but bring clarifications and answers frequently asked questions about the US manifest.

Also, we remind you that the Canada Border Services Agency (CBSA) electronic manifest will progressively be implemented from October 31st. By this date, highway carriers may begin to transmit their information through the Electronic Data Interchange (EDI) system.

The complete implementation timeline as well as many other information about the manifest are available on the CBSA web site here.

U.S. Says Doha Trade Talks Could Stretch Into 2012

(Reuters – Doug Palmer)

Siddiqui cites meaningful progress in past six months

A top U.S trade official indicated on Tuesday that the long-running Doha round of world trade talks could stretch into 2012, but said some progress had been made over the past six months. “The U.S. view is that there is no shortcut to a Doha success,” U.S. chief agricultural trade negotiator Isi Siddiqui said in the prepared text of a speech given in Brussels, a copy of which was released in Washington.

“Deadlines won’t do it, mandated formal processes won’t do it, and attempts at high-level ‘Big Bang’ political events won’t do it,” Siddiqui told a European farm policy audience. Read more here.

Developing Asia-Pacific States Press for Less Red Tape in Trade

(BusinessWorld Online)

Over 200 individuals from 33 Asia-Pacific economies participating in the Asia-Pacific Trade Facilitation Forum in Kuala Lumpur, Malaysia last Oct. 5-6 urged their governments to streamline international trade procedures and ensure that regulations are simple, consistent and transparent, a statement the United Nations released yesterday read.

The hidden cost of red tape amounts to $300 billion a year in the Asia-Pacific region, the statement read, and it takes an average of 30 days to move goods from factory to ship deck in countries of the region, compared with 10 days on average for members of the Organisation for Economic Cooperation and Development (OECD).

Brought together by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), the United Nations Economic Commission for Europe (UNECE) and the Asian Development Bank (ADB), forum participants also called for greater regional cooperation to promote paperless trading systems and increase trade in agricultural products. Read more here.

Russia Resolves Key Issues with U.S. over WTO Accession

(Bridges Weekly)

Russia and the United States have reached bilateral resolutions on several trade issues, removing another set of hurdles facing the entry to the WTO of the world’s largest economy that is not already a member of the global trade body.

On October 1, Russian Finance Minister Alexei Kudrin announced in Yalta that Russia had resolved its bilateral negotiations with the US over WTO accession, and would now move to conclude its multilateral negotiations in Geneva. US Trade Representative Ron Kirk welcomed “bilateral agreement on key issues related to the accession process,” adding that Moscow would now be free to devote more attention to remaining barriers at the multilateral level.

According to a statement from Kirk’s office, Washington and Moscow have reached agreements in principle on issues such as intellectual property rights, government procurement, and transparency in the decision-making process on trade-related issues. The bilaterally-agreed solutions reflect what the US would like to see in Russia’s eventual WTO commitments; the compromises will now be considered by other countries in the WTO Working Party on Russia’s accession. Read more here.

Consumers See Government Inspection as Most Credible Signal of Food Safety: Study

(Food In Canada)

Study also finds that food recalls affect how consumers shop and what attributes they look for

Consumers value several attributes when it comes to their food, but the most important – a study has found – is safer and healthier food, inspected by a government body. The new study, called Food Safety Certification: A Study of Food Safety in the U.S. Supply Chain, was conducted by Michigan State University (MSU).

The research found that consumers are quite aware of food safety issues and change their shopping habits because of them. In fact, nearly half of the consumers surveyed had done so, says Chris Peterson, director of MSU’s Product Center for Agriculture and Natural Resources.

But what’s also interesting, the study reports, is that consumers don’t see higher prices and brand names as indicators of safer food. Read more here.

Wednesday, October 6, 2010

Trade Court Rules to Protect Brokers

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

Customs may not revoke entry filer code without due process

Customs and Border Protection may not revoke a broker’s entry filer code without providing some form of due process, the U.S. Court of International Trade ruled on Monday.

USCIT Judge Richard K. Eaton ruled Customs officials in San Diego in October 2008 improperly deactivated customs broker Guillermo Lizarraga’s filer code for alleged “misuse” without stating the reasons, and giving him no chance to respond.

Brokers need the code to electronically file entries through the Automated Broker Interface in the Automated Commercial System. Ninety-six percent of all entries are made through ABI, so loss of the filer code effectively puts a broker out of business. Read more here.

Countries Release Text of Anti-Counterfeiting Pact

(Reuters – Doug Palmer)

An international pact to fight global trade in counterfeit and pirated goods moved closer to reality on Wednesday when countries participating in the talks released the final draft of the proposed deal.

“This text reflects tremendous progress in the fight against counterfeiting and piracy – a global crime wave that robs workers in the United States and around the world of good-paying jobs and exposes consumers to dangerous products,” U.S. Trade Representative Ron Kirk said in a statement.

China, the source of much of world’s counterfeit goods production, was not a party to the talks.

Kirk called on the nearly 40 participating countries to quickly finalize the Anti-Counterfeiting Trade Agreement (ACTA) after reaching a tentative deal last week in Tokyo. “The leadership shown by our ACTA partners in reaching solutions on tough issues should send a strong message to pirates and counterfeiters that they have no place in the channels of legitimate trade,” Kirk said. Read more here.

Trade Dispute Avoided, Innovation Accelerated

(Resource Investing – Michael Montgomery)

Tensions over rare earth policy came to a head last week in the showdown over a fishing boat captain detained by Japanese authorities. The Chinese fisherman had collided with two Japanese coast guard boats in “disputed” waters between the two nations. The Japanese arrested the boat captain and he had been awaiting trial until Chinese port authorities halted shipments of rare earth elements to Japan. Chinese officials have disputed the non-official trade restriction as simply an administrative matter carried out by customs officials. Beijing had requested the release of the boat captain, and many suspect the halting of rare earth shipments is a direct response to the diplomatic situation. Japan released the boat captain without trial, and shipments of rare earths began almost immediately thereafter.

The situation illustrates the immense power that these elements have over the world economy. While the market is small in relation to other minerals, such as iron and copper, the monopolistic power of China over this market leaves little option for countries and companies alike to give in to the whims of China. Read more here.

Europe Presses China to Alter Trade Practices

(New York Times – Reuters)

The European Union pressed China on Wednesday to amend its trade practices to stop technology theft, counterfeiting and discrimination against foreign companies, after it failed to make Beijing budge on its exchange rate.

Opening a day-long meeting with Premier Wen Jiabao of China, the president of the European Commission, José Manuel Barroso, said the commercial relationship between China and the European Union, worth 327 billion euros ($453 billion) in 2009, was vital for the global economy.

Chancellor Angela Merkel of Germany, the leader of Europe’s biggest exporting country, met Mr. Wen on Tuesday evening and pledged to work for China to be granted the European Union’s coveted “market economy” trade status by 2016. That would give Beijing better protection against European antidumping penalties – a major irritant for the Chinese. Read more here.

U.S. Trade Partners Re-Double Efforts

(FruitNet.com – Gill McShane)

New analysis shows food safety regulatory progress by top five fruit and vegetable exporting nations to the US

A number of major supply countries of fresh fruit and vegetables to the US have modernised their food-safety laws and regulations over the past two decades to emphasise preventive measures, according to a new report released by the Produce Safety Project (PSP) at Georgetown University in the US.

The report, “Legal and Regulatory Frameworks Governing the Growing, Packing and Handling of Fresh Produce in Countries Exporting to the US,” presents a series of case studies examining five of the top 10 US produce trade partners – Canada, Chile, China, Mexico and Peru.

The 175-page report was written by Monachus Consulting, an international agricultural industry consulting firm based in Canada. Read more here.

Integrators Increase North America Rates

(International Freighting Weekly – Damian Brett & Katerina Kerr)

UPS and FedEx push up cost of shipments

UPS and FedEx have both announced plans to increase rates in North America over the coming months.

UPS Freight, one of the largest less-than-truckload (LTL) carriers in the US, has announced a general rate increase of an average 5.9% for non-contractual shipments in the US, Canada and Mexico. The rate adjustment will take effect on 18 October, and will apply to minimum charge, LTL rates and associated charges. Read more here.

Tuesday, October 5, 2010

Shippers Cautious Over Call for Tighter Contracts with Shipping Lines

(International Freighting Weekly – Damian Brett)

It may be difficult for shippers to provide accurate long-term predictions on when, and how many, containers are to be shipped

Contracts between shippers and carriers should be tightened up, but it will be difficult for shippers to provide accurate data on when and in what quantity containers will be shipped.

European Shippers’ Council (ESC) Secretary General Nicolette van der Jagt said she supported carrier calls for tighter contracts between shippers and carriers, after Maersk Line CEO Eivind Kolding last week said contracts contained too much leeway that left both parties unclear about what had been agreed. Kolding pointed out that a contract may commit a shipping line to carry 5,000 boxes a year from China to Europe, but often it was not clear if that meant 100 boxes a week, or 50 one week and 150 the next, or where the containers would be shipped from.

And van der Jagt said some ESC members had taken the initiative to work on standard contract clauses that were more formal than used today. Read more here.

Storm Breaks Over Plan to Raise Taxes on Diesel for US Truckers

(International Freighting Weekly – Katerina Kerrr)

Some hauliers claim fuel hike singles them out over other modes, but others claim extra revenue will ease traffic bottlenecks

Truckers in the US are facing higher diesel taxes. A Bill that would increase the tax on diesel used by hauliers by 12 cents to 36.4 cents per gallon has been criticised by the Owner Operator Independent Drivers Association (OOIDA), which claims saying it penalises truckers and fails to look at other modes such as rail.

However, the American Trucking Association (ATA) has pledged its support for the Bill, which it said would “address critical freight transportation needs, focusing resources on the nation’s most important goods movement corridors”. Read more here.

Homeland Security Begins Work on Container Security Standards

(Logistics Today)

The U.S. Customs and Border Protection (CBP) is partnering with the Department of Homeland Security’s Science and Technology Directorate (DHS S&T) to develop performance standards – requirements that must be met by products to ensure they will function as intended – for container security technologies. CBP, which is responsible for container security, is constantly on the lookout for cargo containers that are being used to transport unlawful cargo, including weapons of mass destruction, illicit arms, stowaways, and illegal narcotics into the United States.

After successful completion of testing, S&T plans to deliver performance standards to DHS’s Office of Policy Development and CBP. DHS has conducted research and development for four container security technology projects, but has not yet developed performance standards for them. Read more here.

Homeland Security Begins Work on Container Security Standards

(Logistics Today)

The U.S. Customs and Border Protection (CBP) is partnering with the Department of Homeland Security’s Science and Technology Directorate (DHS S&T) to develop performance standards – requirements that must be met by products to ensure they will function as intended – for container security technologies. CBP, which is responsible for container security, is constantly on the lookout for cargo containers that are being used to transport unlawful cargo, including weapons of mass destruction, illicit arms, stowaways, and illegal narcotics into the United States.

After successful completion of testing, S&T plans to deliver performance standards to DHS’s Office of Policy Development and CBP. DHS has conducted research and development for four container security technology projects, but has not yet developed performance standards for them. Read more here.

U.S. Trade Policy Extremely Open, World Trade Organization Finds

(America.gov)

“The U.S. trade and investment regimes are among the most open in the world,” the World Trade Organization (WTO) Secretariat reported September 29 in its 10th review of the trade policies and practices of the United States.

“Like most other WTO Members, the United States very largely resisted pressures to respond to the global economic recession by tightening restrictions on imports,” the Secretariat reported in its executive summary. “The restraint shown by the United States helped forestall a worldwide slide into protectionism.”

Because surveillance of national trade policies is fundamentally important to the work of the WTO, the organization has established a trade policy review mechanism under which all WTO members are examined periodically. The frequency of each country’s review varies according to its share of world trade. The previous review of U.S. trade policies took place in 2008. Read more here.

Monday, October 4, 2010

Tokyo Anti-Counterfeiting Talks Deliver Deal

(Business Spectator – Reuters)

Nearly 40 nations on Saturday reached basic agreement in international trade talks aimed at reducing copyright and trademark theft that causes losses of billions of dollars annually.

One of the key features of the Anti-Counterfeiting Trade Agreement (ACTA) will mandate that customs officials have “ex officio” authority to seize counterfeit goods without a request from the rights holders or a court order, according to statements from Japan’s Ministry of Economy, Trade and Industry (METI). Read more here.

US, Europe Join Trade Fight over Ontario’s Green Energy Plan

(CB Online – Maria Babbage, The Canadian Press)

Ontario’s green energy ambitions appear to be pitting the country’s biggest trading partners against Canada in a dispute over government subsidies for solar and wind power projects. Both the United States and the European Union want to join consultations over a trade complaint made by Japan to the World Trade Organization, saying they have a significant stake in the discussions.

Even though the dispute is with Ontario, the federal government is ultimately responsible to defend the province because Canada is a signatory to the WTO, said International Trade Minister Peter Van Loan. “We always want to maintain good trading relationships with our major partners, and we always want to make sure that our actions are World Trade Organization compliant,” he said Friday in an interview with The Canadian Press. “In this case, we certainly encourage the Ontario government to take advantage of the consultations phase of this process to seek a satisfactory resolution.”

Earlier this week, both the U.S. and the EU argued in separate letters to the WTO that they have a “substantial trade interest” in the talks. Read more here.

Friday, October 1, 2010

There’s Good News and Bad News for Container Shipping

(International Freighting Weekly – Damian Brett)

Overall throughput this year enough to combat effects of recession, but box shortage rebounds on Q4 prospects

The container shipping industry should brace itself for a weaker-than-expected fourth quarter, as inventory re-stocking and empty container movements slow, according to a leading analyst. In its Counting Containers report, analyst Macquarie expects fourth-quarter volumes to be weaker than in the third quarter because June, July and August figures were boosted by inventory re-stocking and the increased movement of empty containers, as the industry sought to combat the effects of a shortage.

The report explains that fourth-quarter volumes are normally around 0.7% up on the third quarter, but this year the analyst said it expected them to be up to 3% lower. Read more here.

U.S. Softwood Lumber Imports Could be Subject to New Assessments

(World Trade Interactive)

U.S. Importers and domestic manufacturers of softwood lumber would be hit with a new assessment under a Department of Agriculture proposal to boost this struggling sector. The proposed Softwood Lumber Research, Promotion, Consumer Education and Industry Information Order aims to strengthen the position of softwood lumber in the marketplace, maintain and expand markets for softwood lumber and develop new uses for softwood lumber within the U.S. These efforts would respond to what USDA calls “one of the worst markets in history” for softwood lumber. Read more here.

China Currency Bill Passes House, Senate Vote Planned for November

(World Trade Interactive)

The House of Representatives approved by a 348 to 79 vote Sept. 29 the Currency Reform for Fair Trade Act (H.R. 2378), which would allow an undervalued foreign currency to be considered a government subsidy that can be offset with countervailing duties on imports of specific goods from the offending country. A related bill in the Senate could be voted on after the congressional elections in November. The White House has not taken a position on either bill but acknowledged this week that the House action highlights the importance of this issue.

Supporters of H.R. 2378 say it will help reduce the U.S. trade deficit with China and boost domestic manufacturing employment, both issues projected to score well with voters still concerned about the struggling economy. Several key lawmakers said this week that one of the objectives of moving the bill forward is to give the Obama administration more leverage in its unilateral and multilateral efforts to convince China to let its currency appreciate. In recent weeks the president and Treasury Secretary Timothy Geithner have both pressed Chinese leaders more than ever on this issue, but Beijing has maintained its position that it will manage the yuan according to China’s interests and not outside pressure. Read more here.

“Consumer Safety” Bill Could Boomerang against U.S. Manufacturers

(National Center for Policy Analysis – Daniel Griswold and Sallie James, Cato Institute)

Barriers to trade can be straightforward and transparent, or can take the form of rules and regulations proposed in the name of protecting public health and safety but have a secondary effect of restricting trade. An example of such a nontariff barrier is legislation now before Congress called the Foreign Manufacturers Legal Accountability Act (FMLAA), say Daniel Griswold, director of the Center for Trade Policy Studies at the Cato Institute, and Sallie James, a trade policy analyst with the center.

The sponsors of the legislation claim that their principal goal is to protect American consumers from unsafe foreign products, but there are warning signs that the bill may be more about restricting trade than protecting the public.

• The FMLAA would require foreign producers selling goods in the U.S. market to designate a legal agent located in the United States who could be served papers in a product liability suit.

• By registering an agent, the foreign producer would agree to accept the jurisdiction of the state and federal courts of the state where the agent is located.

The concern raised by advocates of the legislation is that American consumers harmed by foreign products will not be able to collect damages if the foreign-based producer has no legal presence in the United States.

Americans damaged by faulty products, whether made abroad or domestically, should be able to seek compensation through the courts. But the approach advocated by supporters of the FMLAA would not solve the problem, say Griswold and James.

Read the original article here.

WTO Raps U.S. Ban on Chinese Chicken Imports

(Reuters – Jonathan Lynn)

U.S. measures that effectively banned imports of Chinese cooked chicken broke international trade rules and caused injury to China’s economy, a World Trade Organization dispute panel said on Wednesday. The U.S. measures challenged by China were unscientific and discriminatory, the panel found.

The ruling, in one of several trade disputes between China and the United States, came as the U.S. House of Representatives prepared to vote on a bill declaring China’s undervalued currency a subsidy and clearing the way for duties to be imposed on some Chinese imports as a countermeasure. Read more here.