Friday, October 7, 2011
News from TAHOCO: Weekly Updates
An updated list of recently published US government
memorandums, notices, regulations and decisions for the week ending October 7, 2011 is now available on our
website here.
Canada Defends Trade Policies Against FMC Inquiry
(Journal of Commerce
Online – R.G.Edmonson)
Study looks at whether HMT revenue is
lost due to diversion of U.S. imports to
Canadian ports
The Canadian
government said it will “vigorously defend” its trade policies and
infrastructure investments against any of the findings of a Federal Maritime
Commission study looking into the diversions of U.S. imports to Canadian ports.
Gerald Keddy,
parliamentary secretary to Minister of International Trade Ed Fast, said on Wednesday
the Canadian government has invested in its port infrastructure as part of “an
ambitious pro-trade, low-tax plan that is creating jobs and economic growth.”
The FMC earlier approved an inquiry into whether the U.S. is losing Harbor Maintenance Tax revenue from
American imports, particularly from those diverted through the Port of Prince Rupert, B.C. Read more here.
Canada-U.S. $1B Border Deal Held Up by Scheduling, Politics
(James Fitz-Morris —
CBC News)
A Canada-U.S. plan to establish a security perimeter is almost ready to go, but it's held back by one issue: finding a time to announce it.
Details from the plan are emerging from sources who say Canada may need to budget for a $1-billion price tag for new border facilities and programs to make trade and travel easier.
CBC News has learned that the most contentious issues, such as immigration, refugee standards and the harmonization of some security measures, have been stripped out of the agreement.
The goal was to unveil the Beyond the Borders plan in the summer — but with the leaves changing colour and a chill in the air, there's still no announcement. Read more here.
A Canada-U.S. plan to establish a security perimeter is almost ready to go, but it's held back by one issue: finding a time to announce it.
Details from the plan are emerging from sources who say Canada may need to budget for a $1-billion price tag for new border facilities and programs to make trade and travel easier.
CBC News has learned that the most contentious issues, such as immigration, refugee standards and the harmonization of some security measures, have been stripped out of the agreement.
The goal was to unveil the Beyond the Borders plan in the summer — but with the leaves changing colour and a chill in the air, there's still no announcement. Read more here.
Thursday, October 6, 2011
TSA Nixes Dec. 31 Deadline for 100% Screening of Inbound Air Cargo
(World Trade
Interactive)
The Transportation Security Administration announced Oct. 4 that it will not set a Dec. 31, 2011, deadline for 100% screening of cargo on international passenger aircraft bound for the U.S. TSA said it reached this decision after careful consideration of industry comments and a thorough examination of the unique challenges facing international cargo screening. TSA will continue to work toward meeting the statutory requirement for 100% screening but has not set a new anticipated deadline.
TSA officials had testified at a March 9 congressional hearing that they were working to meet the 100% screening requirement by Dec. 31, two years ahead of schedule. TSA had proposed the accelerated timetable in light of certain threats as well as the considerable progress made by air carriers in screening international inbound cargo. Specifically, carriers were found to be screening a higher percentage of air cargo (about 80% as of August 2010) than initially estimated (about 65%), and many air carriers were are already at or close to 100%. Read more here.
The Transportation Security Administration announced Oct. 4 that it will not set a Dec. 31, 2011, deadline for 100% screening of cargo on international passenger aircraft bound for the U.S. TSA said it reached this decision after careful consideration of industry comments and a thorough examination of the unique challenges facing international cargo screening. TSA will continue to work toward meeting the statutory requirement for 100% screening but has not set a new anticipated deadline.
TSA officials had testified at a March 9 congressional hearing that they were working to meet the 100% screening requirement by Dec. 31, two years ahead of schedule. TSA had proposed the accelerated timetable in light of certain threats as well as the considerable progress made by air carriers in screening international inbound cargo. Specifically, carriers were found to be screening a higher percentage of air cargo (about 80% as of August 2010) than initially estimated (about 65%), and many air carriers were are already at or close to 100%. Read more here.
EU Repeals Certificate of Origin Requirement for Textiles and Apparel
(World Trade
Interactive)
The European Union issued Oct. 4 a regulation that eliminates effective from Oct. 24 the current requirement to present a certificate of origin (or an invoice declaration of origin in certain cases) to be able to import most apparel and a range of textile products into the EU.
The regulation acknowledges that there is no reason to demand proof of origin when the products at hand can be imported into the EU without any constraints. The EU already has a comprehensive system to track the origin of imported merchandise, including a requirement to enter the country of origin in Box 34 of the single administrative document that importers have to complete for the release of goods for free circulation and an ex-post statistical surveillance system that monitors the impact of textile and apparel imports on the EU market.
However, companies doing business in the EU should keep in mind that textile and apparel products claiming preferential duty treatment still need to comply with all applicable certificate of origin and other documentary requirements to benefit from such preferential treatment.
The European Union issued Oct. 4 a regulation that eliminates effective from Oct. 24 the current requirement to present a certificate of origin (or an invoice declaration of origin in certain cases) to be able to import most apparel and a range of textile products into the EU.
The regulation acknowledges that there is no reason to demand proof of origin when the products at hand can be imported into the EU without any constraints. The EU already has a comprehensive system to track the origin of imported merchandise, including a requirement to enter the country of origin in Box 34 of the single administrative document that importers have to complete for the release of goods for free circulation and an ex-post statistical surveillance system that monitors the impact of textile and apparel imports on the EU market.
However, companies doing business in the EU should keep in mind that textile and apparel products claiming preferential duty treatment still need to comply with all applicable certificate of origin and other documentary requirements to benefit from such preferential treatment.
Wednesday, October 5, 2011
Rails Look for Obama To Intervene in Labor Talks
(Journal of Commerce
Online – John D. Boyd)
Presidential action would have to come by midnight Thursday to avert strike
The U.S. freight rail industry is looking for President Obama to step into a labor dispute affecting most major railroads and many of their unions, before a Thursday midnight deadline would allow strikes or lockouts to begin.
Train engineers, track repair crews and a host of other workers are almost at the end of a 30-day countdown to self-help action that could begin at 12:01 a.m. Oct. 7, after the National Mediation Board last month released workers from its oversight of stalled contract talks. Read more here.
Presidential action would have to come by midnight Thursday to avert strike
The U.S. freight rail industry is looking for President Obama to step into a labor dispute affecting most major railroads and many of their unions, before a Thursday midnight deadline would allow strikes or lockouts to begin.
Train engineers, track repair crews and a host of other workers are almost at the end of a 30-day countdown to self-help action that could begin at 12:01 a.m. Oct. 7, after the National Mediation Board last month released workers from its oversight of stalled contract talks. Read more here.
Congestion Costs U.S. Trucking $23 billion
(International
Freighting Weekly – Pete Goldin)
Call for more investment in freight mobility
A new study by the Texas Transportation Institute (TTI) claims that the cost of congestion to hauliers in the U.S. – measured as wasted fuel and delay – was $23 billion last year.
While trucks only account for 6% of the miles travelled in U.S. urban areas, they represent 26% of the total cost of congestion, says the Urban Mobility Report 2011.
Steve Wagner, of the National Center for Freight and Infrastructure Research and Education, which provided funding for TTI’s freight research, noted that congestion outside of “rush hour” – which now lasts six hours in the largest U.S. urban areas – accounted for about 40% of delays. “This is a particular problem for the movement of freight for businesses that rely on efficient production and deliveries,” he said. Read more here.
Call for more investment in freight mobility
A new study by the Texas Transportation Institute (TTI) claims that the cost of congestion to hauliers in the U.S. – measured as wasted fuel and delay – was $23 billion last year.
While trucks only account for 6% of the miles travelled in U.S. urban areas, they represent 26% of the total cost of congestion, says the Urban Mobility Report 2011.
Steve Wagner, of the National Center for Freight and Infrastructure Research and Education, which provided funding for TTI’s freight research, noted that congestion outside of “rush hour” – which now lasts six hours in the largest U.S. urban areas – accounted for about 40% of delays. “This is a particular problem for the movement of freight for businesses that rely on efficient production and deliveries,” he said. Read more here.
Golfers Beware: Counterfeit Clubs Sold Online
(Chris Holmstrom —
KOLD News)
Golfers beware! U.S. Customs and Border Protection says its seizing an increasing number of counterfeit golf products by consumers over the Internet.
Bobby Saavedra, PGA Apprentice and Manager of Practice Tee in Tucson, knows a lot about golfing. Besides being really good at the game, he has a sharp eye for fake equipment.
“They are making them pretty good these days, I mean I’ve seen a few of the sets to where, you know the guy paid $300, it was supposed to be a $900 club set and they are great clubs,” he said.
U.S. Customs and Border protection is putting consumers on alert. It says counterfeit golf products being sold online have increased recently and Saavedra agrees.
“We do a lot of our ordering off of EBay and we’ve noticed over the past couple years that counterfeits have definitely gone up.” Read more here.
Golfers beware! U.S. Customs and Border Protection says its seizing an increasing number of counterfeit golf products by consumers over the Internet.
Bobby Saavedra, PGA Apprentice and Manager of Practice Tee in Tucson, knows a lot about golfing. Besides being really good at the game, he has a sharp eye for fake equipment.
“They are making them pretty good these days, I mean I’ve seen a few of the sets to where, you know the guy paid $300, it was supposed to be a $900 club set and they are great clubs,” he said.
Saavedra says many
times knock-off equipment will have the name of the manufacturer misspelled or
a different logo. Everything will look
similar, but it’s a fake.
U.S. Customs and Border protection is putting consumers on alert. It says counterfeit golf products being sold online have increased recently and Saavedra agrees.
“We do a lot of our ordering off of EBay and we’ve noticed over the past couple years that counterfeits have definitely gone up.” Read more here.
Tuesday, October 4, 2011
FTA Implementing Legislation Submitted to Congress
(World Trade
Interactive)
President Obama formally submitted to Congress Oct. 3 legislation to implement pending free trade agreements with Korea, Colombia and Panama. The Colombia FTA bill includes a retroactive renewal of the Andean Trade Preferences Act through July 31, 2013.
House Speaker John Boehner said the House will consider the FTA bills “consecutively and in tandem with” a bill recently passed by the Senate that would reauthorize the Generalized System of Preferences (also retroactively through July 31, 2013) and the Trade Adjustment Assistance Act.
However, at press time there were no further details on that process. While Congress now has 90 days to hold up-or-down votes on each bill, House and Senate leaders said they expect all three to be approved by the end of October.
President Obama formally submitted to Congress Oct. 3 legislation to implement pending free trade agreements with Korea, Colombia and Panama. The Colombia FTA bill includes a retroactive renewal of the Andean Trade Preferences Act through July 31, 2013.
House Speaker John Boehner said the House will consider the FTA bills “consecutively and in tandem with” a bill recently passed by the Senate that would reauthorize the Generalized System of Preferences (also retroactively through July 31, 2013) and the Trade Adjustment Assistance Act.
However, at press time there were no further details on that process. While Congress now has 90 days to hold up-or-down votes on each bill, House and Senate leaders said they expect all three to be approved by the end of October.
CBP: ACE Customer Satisfaction Survey
(CBP)
The 2011 ACE Customer Satisfaction Survey is now available
and your VOLUNTARY feedback is requested! Trade community ACE portal users can access the survey here.
Please remember that your response is VOLUNTARY and completely anonymous. The survey should take approximately 5-10 minutes to complete – depending upon the level of detail in your comments. The survey will be available through Wednesday, October 19, 2011.
The 2011 ACE Customer Satisfaction Survey is now available
and your VOLUNTARY feedback is requested! Trade community ACE portal users can access the survey here.
Please remember that your response is VOLUNTARY and completely anonymous. The survey should take approximately 5-10 minutes to complete – depending upon the level of detail in your comments. The survey will be available through Wednesday, October 19, 2011.
China Makes Moves to Increase Imports
(China Daily)
As debt crisis hurts exports, China attempts to offset the worst effects
China is studying and launching concrete measures related to tax and procedures to increase imports. The move is part of a bid to enhance the country’s industrial competitiveness and balance of trade, said Zhong Shan, vice-minister of commerce on Thursday.
While the global debt crisis is hurting demand for Chinese goods and exports, “expanding imports will strengthen the competitiveness of the local industries, if appropriate moves are taken”, said Zhong during a keynote speech at the China Import Forum 2011 in Shanghai.
The country is stepping up efforts to research and draft six relevant measures, including “launching preferential tax and finance policies, simplifying and reducing relevant procedures, maturing domestic circulating channels and promoting (trade) fairs”, he said.
Meanwhile, the nation is also committed to optimizing the import structure, and importing more advanced technology, equipment and parts, resource-related and consumer goods in the next five years. Read more here.
As debt crisis hurts exports, China attempts to offset the worst effects
China is studying and launching concrete measures related to tax and procedures to increase imports. The move is part of a bid to enhance the country’s industrial competitiveness and balance of trade, said Zhong Shan, vice-minister of commerce on Thursday.
While the global debt crisis is hurting demand for Chinese goods and exports, “expanding imports will strengthen the competitiveness of the local industries, if appropriate moves are taken”, said Zhong during a keynote speech at the China Import Forum 2011 in Shanghai.
The country is stepping up efforts to research and draft six relevant measures, including “launching preferential tax and finance policies, simplifying and reducing relevant procedures, maturing domestic circulating channels and promoting (trade) fairs”, he said.
Meanwhile, the nation is also committed to optimizing the import structure, and importing more advanced technology, equipment and parts, resource-related and consumer goods in the next five years. Read more here.
CBP Makes Headway on Simplified Entry
(American Shipper)
U.S. Customs and industry representatives on Monday outlined how a simplified process for filing import declarations would look and said a trial program will start soon to demonstrate how fewer documentation requirements could benefit the government and importers alike.
The goal is to give trusted traders a more streamlined process to get goods released by linking security and admissibility data requirements. A simplified customs entry would resemble the Importer Security Filing (ISF) with a few extra data elements such as a 10-digit Harmonized Tariff System code, the estimated value and an entry number, reporters were told during a telephone briefing about last week’s Trade Support Network plenary session.
Importers need to be in Tier 2 or Tier 3 of the Customs-Trade Partnership Against Terrorism, a voluntary supply chain security program, to be eligible for simplified entry. The importer named on the ISF form has to be the same as the importer of record on the entry and have a continuous customs bond. Finally, the entry summary that details shipment information, and acts as a receipt for CBP, will need to be transmitted to the new Automated Commercial Environment instead of CBP’s legacy data system – without any sub-bills of lading. Read more here.
U.S. Customs and industry representatives on Monday outlined how a simplified process for filing import declarations would look and said a trial program will start soon to demonstrate how fewer documentation requirements could benefit the government and importers alike.
The goal is to give trusted traders a more streamlined process to get goods released by linking security and admissibility data requirements. A simplified customs entry would resemble the Importer Security Filing (ISF) with a few extra data elements such as a 10-digit Harmonized Tariff System code, the estimated value and an entry number, reporters were told during a telephone briefing about last week’s Trade Support Network plenary session.
Importers need to be in Tier 2 or Tier 3 of the Customs-Trade Partnership Against Terrorism, a voluntary supply chain security program, to be eligible for simplified entry. The importer named on the ISF form has to be the same as the importer of record on the entry and have a continuous customs bond. Finally, the entry summary that details shipment information, and acts as a receipt for CBP, will need to be transmitted to the new Automated Commercial Environment instead of CBP’s legacy data system – without any sub-bills of lading. Read more here.
Global Air Cargo Slowdown Accelerates
(Journal of Commerce Online – Bruce Barnard)
IATA says freight traffic shrinks 3.6% even as capacity grows
The downturn in the global air cargo market accelerated sharply in August with traffic shrinking 3.8% from a year ago, led by steep declines in North America and the Asia-Pacific region, the International Air Transport Association reported.
The contraction was more than double the pace of the 1.8% year-on-year decline in July, the airline group said, and came as carriers increased capacity 1.5%. The gap was widest on international routes, where traffic fell 3.5% against a 2.4% gain in freight capacity, a combination bringing down freight rates in international markets. Read more here.
IATA says freight traffic shrinks 3.6% even as capacity grows
The downturn in the global air cargo market accelerated sharply in August with traffic shrinking 3.8% from a year ago, led by steep declines in North America and the Asia-Pacific region, the International Air Transport Association reported.
The contraction was more than double the pace of the 1.8% year-on-year decline in July, the airline group said, and came as carriers increased capacity 1.5%. The gap was widest on international routes, where traffic fell 3.5% against a 2.4% gain in freight capacity, a combination bringing down freight rates in international markets. Read more here.
U.S. Mulls Major Levy on Cargo Coming from B.C. Ports
(The Globe and Mail – John Ibbitson)
A United States agency is considering a major new levy on cargo entering the Unites States from British Columbia ports, which could harm cross-border trade and impair Canadian efforts to capture more business from Asia.
Richard Lidinsky, the chairman of the U.S. Federal Maritime Commission, is looking at whether to “level the playing field” on the West Coast, where modern Canadian ports are taking container-cargo business away from their run-down American counterparts.
But the real intent “is not to level the playing field but to level the competition” Canadian Chamber of Commerce president Perrin Beatty warned in a letter sent Friday to International Trade Minister Ed Fast.
Word of the potential tariff is another blow to Beyond the Border, the major new border-cooperation agreement soon to be released by the American and Canadian governments, and comes on the heels of Buy American provisions contained in proposed new American stimulus legislation. Read more here.
A United States agency is considering a major new levy on cargo entering the Unites States from British Columbia ports, which could harm cross-border trade and impair Canadian efforts to capture more business from Asia.
Richard Lidinsky, the chairman of the U.S. Federal Maritime Commission, is looking at whether to “level the playing field” on the West Coast, where modern Canadian ports are taking container-cargo business away from their run-down American counterparts.
But the real intent “is not to level the playing field but to level the competition” Canadian Chamber of Commerce president Perrin Beatty warned in a letter sent Friday to International Trade Minister Ed Fast.
Word of the potential tariff is another blow to Beyond the Border, the major new border-cooperation agreement soon to be released by the American and Canadian governments, and comes on the heels of Buy American provisions contained in proposed new American stimulus legislation. Read more here.
Monday, October 3, 2011
Fee for U.S. Import Licenses Under Dairy TRQs to Increase $20 for 2012
The Department of
Agriculture’s Foreign Agricultural Service has announced that it will charge a
$170 fee (up from $150) for each license it issues to a person or firm authorizing
the importation of certain dairy articles subject to tariff-rate quotas in
2012. Such dairy articles may only be entered into the U.S. at the in-quota tariff rates by or for the
account of a person or firm to whom such a license has been issued. Licenses
are issued on a calendar year basis, and each license authorizes the holder to
import a specified quantity and type of dairy article from a specified country
of origin.
Sunday, October 2, 2011
Bonds No Longer Allowed During AD/CV Provisional Measures
(World
Trade Interactive)
The International Trade Administration has issued a final rule that aims to strengthen the administration of antidumping and countervailing duty laws by making importers directly responsible for the payment of AD and CV duties. Effective for all AD/CV investigations initiated on the basis of petitions filed on or after Nov. 2, provisional measures during an investigation will normally take the form of a cash deposit, and importers will generally no longer be permitted to post bonds during the provisional measures period. The ITA notes that the circumstances under which it may allow the posting of bonds will be “rare and unusual” and will be evaluated on a case-by-case basis.
Provisional measures are applied during the period between the publication of the ITA’s preliminary affirmative AD or CV duty determination and the earlier of (1) the expiration of the applicable time period set forth in sections 703(d) and 733(d) the Tariff Act of 1930 or (2) the publication of the International Trade Commission’s final affirmative AD or CV injury determination. During this period the ITA is instructed by the Act to order the posting of a cash deposit, bond or other security, as it deems appropriate. Read more here.
The International Trade Administration has issued a final rule that aims to strengthen the administration of antidumping and countervailing duty laws by making importers directly responsible for the payment of AD and CV duties. Effective for all AD/CV investigations initiated on the basis of petitions filed on or after Nov. 2, provisional measures during an investigation will normally take the form of a cash deposit, and importers will generally no longer be permitted to post bonds during the provisional measures period. The ITA notes that the circumstances under which it may allow the posting of bonds will be “rare and unusual” and will be evaluated on a case-by-case basis.
Provisional measures are applied during the period between the publication of the ITA’s preliminary affirmative AD or CV duty determination and the earlier of (1) the expiration of the applicable time period set forth in sections 703(d) and 733(d) the Tariff Act of 1930 or (2) the publication of the International Trade Commission’s final affirmative AD or CV injury determination. During this period the ITA is instructed by the Act to order the posting of a cash deposit, bond or other security, as it deems appropriate. Read more here.
Saturday, October 1, 2011
U.S. Denies Border-Fence Plan, Despite Report
(The Globe and Mail
– Tu Thanh Ha and John Ibbitson )
The United States government insists it has no plans to put up a fence along parts of the Canada-U.S. border, despite a report that contemplates exactly that.
The report from the U.S. Customs and Border Protection Agency put forward the possibility of fencing the border to deter illegal crossings. But a statement from the agency insisted that “a border fence along the northern border is not being considered at this time.”
The study that proposed the fence was intended to put forward options that could be considered “if additional manpower, technology, and infrastructure were employed,” the statement said.
There is no suggestion as yet that Congress or the Obama administration are planning to substantially increase border-protection funding. Read more here.
The United States government insists it has no plans to put up a fence along parts of the Canada-U.S. border, despite a report that contemplates exactly that.
The report from the U.S. Customs and Border Protection Agency put forward the possibility of fencing the border to deter illegal crossings. But a statement from the agency insisted that “a border fence along the northern border is not being considered at this time.”
The study that proposed the fence was intended to put forward options that could be considered “if additional manpower, technology, and infrastructure were employed,” the statement said.
There is no suggestion as yet that Congress or the Obama administration are planning to substantially increase border-protection funding. Read more here.
U.S. Truckload Carriers Taking Accessorial Charges to Shippers
(Journal of Commerce
Online – William B. Cassidy)
One-time fees for special services high on carriers’ negotiating list, TCP says
More than two-thirds of truckload carriers plan more use of accessorial charges, adding income from shipping fees to higher rates, Transport Capital Partners said.
The consulting firm said 68% of the carriers it surveyed in the third quarter plan to renegotiate accessorial fees across more categories with shippers. Those accessorial fees include detention charges, mentioned by 42% of carriers, and fuel surcharges, which 39% of the carriers hoped to renegotiate.
And the percentage of carriers that expect to renegotiate their contracts to change the mileage standard they use to bill shippers tripled, rising to nearly 20%.
Those carriers hope to move from shortest-route mileages favored by shippers to a practical mileage standard that more accurately reflects distances traveled. Read more here.
One-time fees for special services high on carriers’ negotiating list, TCP says
More than two-thirds of truckload carriers plan more use of accessorial charges, adding income from shipping fees to higher rates, Transport Capital Partners said.
The consulting firm said 68% of the carriers it surveyed in the third quarter plan to renegotiate accessorial fees across more categories with shippers. Those accessorial fees include detention charges, mentioned by 42% of carriers, and fuel surcharges, which 39% of the carriers hoped to renegotiate.
And the percentage of carriers that expect to renegotiate their contracts to change the mileage standard they use to bill shippers tripled, rising to nearly 20%.
Those carriers hope to move from shortest-route mileages favored by shippers to a practical mileage standard that more accurately reflects distances traveled. Read more here.
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