2005 FTZ BOARD STATISTICS

We recently reviewed and analyzed the Foreign-Trade Zones Board 2005 Annual Report in a way that has not been done previously, setting out by dollar value the largest zone projects, general-purpose zone projects, subzone projects that are not oil refining-related, and oil refining subzone projects. The information is very interesting. We plan on producing this documentation yearly. If there are questions, please contact Marshall Miller.

2008 PROJECTS TO CONSIDER

Clients are advised to consider the following items in 2008:
• Import/Export Statistics Review
• Export Compliance
• C-TPAT
• Classification/Value Training
• e-214 Submission

10 + 2 DATA

Customs has posted new and updated draft transaction sets that provide the records and other information allowing the Importer Security Filing (10+2) data elements to be transmitted.  Customs has also provided acceptable formats for carrier Stow Plans and Container Status Messages.

ACE DELAY 

The Automated Commercial Environment (ACE) Rail and Sea Manifest (M1) capabilities scheduled for deployment in fall 2008 will be delayed by a projected six to eight months due to problems discovered during testing the new software.  Another contributing factor has been the addition of new requirements to the project.  As a result of the MI schedule slip, an additional four to six month delay is projected for the early 2009 deployment of initial ACE entry summary capabilities.  CBP is in the process of determining the impact these delays will have on the entire ACE schedule.  CBP senior management has ordered an independent review of ACE to ensure that everything possible is being done to continue the successful deployment of new capabilities.  In the near future a new ACE Release schedule will be published.  This schedule will show that the Cargo Release portion of ACE has been moved to a higher priority as it is critical to many of the participating government agencies CBP is working with as part of the International Trade Data System (ITDS) process.

ACE UPDATES

• A phase 2 enhancement of ad hoc ACE Reports capabilities, scheduled to deploy on September 6, 2008, will allow the creation of new reports and account holder modification of reports. 

• The September 2008 Trade Support Network (TSN) meeting will focus on Participating Government Agency (PGA) plans for ACE integration.  Contact Linda King, our TSN participant, with questions.

• The ACE Rail and Sea Manifest release, scheduled for a Fall 2008 deployment, will be delayed a projected 6-8 months due to new requirements and software problems.  A 4-6 month delay is also projected for the early 2009 release of A2 Entry Summary Capabilities.

AIRCRAFT PARTS

The State Department has just published a Final Rule on the export license requirements for aircraft parts.  For parts not containing Significant Military Equipment (SME), a Commodity Jurisdiction (CJ) determination will not be required.  The amendments to Part 121 of the International Traffic in Arms Regulations (ITAR) are effective August 14, 2008.  73 Fed. Reg. 47523 (August 4, 2008).

BROKER EXAM

Applications for the October Customs Broker Exam are due September 5, 2008.

CLASSIFICATION HELP

The firm has developed a program to assist companies in classifying their goods. The program will allow companies to classify many different commodities by answering a series of short questions. For example, we have successfully consolidated up to 8 or 10 pages of the tariff into 7 or 8 questions. Please contact Marshall Miller for further information.

CONSUMER SAFETY ACT

The Consumer Product Safety Improvement Act of 2008 was enacted into law on August 14, 2008.  The Act overhauls U.S. product safety standards and directs the Consumer Product Safety Commission to work with Customs to stop imports of merchandise that do not meet the new product standards.  Pub. L. 110-314, 122 Stat. 3016.

CONTAINER SEALS

Customs has issued a notice requiring freight container seals to meet the ISO/PAS 17712 standard, effective October 15, 2008.  Containers not readily securable by a seal, or that cannot possibly accommodate an ISO/PAS 17712 seal, can be exempted.  73 Fed. Reg. 46029 (Aug. 7, 2008).

C-TPAT GUIDANCE

The firm has formulated a C-TPAT Action Plan and documents that make up an essential core process for implementing a C-TPAT program for any firm.

C-TPAT FOR EXPORTERS

The C-TPAT program director recently announced that Customs plans a small test of C-TPAT for exporters in late 2008. 

C-TPAT OCEAN ENTRIES

Customs has published a notice reminding ocean importers that to receive their full C-TPAT benefits of reduced cargo exams, entry must be filed at least 24 hours prior to vessel arrival.

doha collapses—again

The seven-year saga of the Doha Round of World Trade Organization (WTO) talks may have finally reached an end on July 29, when a WTO ministerial meeting collapsed.  Countries have already suggested re-starting the talks, but the U.S. has expressed reluctance to resume talks until prospects for negotiating a successful outcome have increased.

EXPORT C-TPAT 

Customs has initiated a pilot C-TPAT certified exporter program. The pilot program will develop minimum security requirements for exporters.  It is only available to C-TPAT participants, and requires the completion of an export security profile and a Customs review.  No site validations are included in the pilot.  The firm’s structured and documented C-TPAT program is also appropriate for exporters.  Contact Sean Murray or Mike Utchell with questions.

EXPORTS - RPS PROGRAMS

The Firm has just completed a very extensive review of the majority of the major Restricted Party Screening (RPS) programs. While the programs are similar, there are many technical differences that should be carefully analyzed prior to purchasing an RPS program. We urge all clients that do not have an automated RPS system to seriously consider budgeting for this required software in order to comply with US. export laws. A detailed memo and assistance in determining which RPS program is best for you can be provided for a fee. Please contact Mark Teerink for details.

exports to affiliates

The Bureau of Industry and Security (BIS) has indicated that it expects to adopt a rule by the end of 2008 that will permit U.S. companies to export certain controlled high-tech items to approved foreign affiliates without licenses, as otherwise would be required.  A draft proposal is being vetted by other agencies, and will be published for comment.

FIRST SALE REPORTING 

Clients who utilize the “first sale rule” to declare transaction value may soon have an additional entry obligation. Customs has indicted that beginning as early as August 20, 2008, importers utilizing the first sale must put an "F" in a new field to be created by Customs in the ABI.  The field will be entry-line specific.  Clients who do not declare a first sale value would leave the new field blank.  For further information, contact Tom Lobred or Sean Murray.

FTA/TPP

The Firm has prepared a comprehensive package for a $2,000 fee that provides complete resource and basic guidance documents for clients to implement a comprehensive compliance program for all existing Free Trade Agreement and Trade Preference Programs. A detailed explanatory memorandum is available on our website. Contact Scott Taylor in our office for more information.

FTAs

• With two minor technical corrections, Customs has adopted as a Final Rule its previously-issued Interim Rule on the implementation of preferential tariff treatment and other Customs-related provisions for the FTA with Bahrain.  The Final Rule is effective August 22, 2008. 73 Fed. Reg. 42679 (July 23, 2008).

• Customs has adopted a Final Rule, effective Sept. 4, 2008, that incorporates several Interim Rules and amendments to preferential tariff treatment and other Customs-related provisions under the FTA with Morocco.  73 Fed. Reg. 45351 (Aug. 5, 2008)

GSP EXTENSION

On July 29, the House of Representatives passed H.R. 6560, a bill related to trade preferences, with three primary components: (1) extending the Generalized System of Preferences (GSP) program for one year through December 2009; (2) establishing a “2 for 1” textile and apparel program for the Dominican Republic; and (3) altering the African Growth and Opportunity Act (AGOA) to help lesser developed participating countries take advantage of textile and apparel benefits.  The bill has not yet been taken up by the Senate.

HMF PROCEDURES

HTSUS AND EAR ASSISTANCE

Miller & Company has developed several types of automated check-sheets that greatly simplify the classification of goods in the Harmonized Tariff Schedule of the United States (HTSUS) and the Export Administration Regulations (EAR). The check-sheets are designed so that the user is only required to have a very basic understanding of either the HTSUS or EAR and simply answers "yes" or "no" to a series of questions. The check-sheets walk the user through the document based on the user's answers, which greatly simplifies the classification process. Additionally, once the user has answered sufficient questions to arrive at a classification decision, the classification is provided to the user and the user is directed to stop answering any further questions. The document serves as an excellent tool both to assist in classifying goods in the HTSUS or EAR and for documenting why goods are classified as they are. Please contact Marshall Miller or Michael Utchell for further information.

ILLEGAL EXPORTS

A former ground services coordinator at O’Hare International Airport has been sentenced to two years in prison for his participation in illegal smuggling out of the country of weapons scopes, military night vision goggles, and a cellular phone jammer.

IMPORT/EXPORT ANALYSIS 

If your company has not already requested 2007 import and/or export government data, now is a good time to consider undertaking a comprehensive review. Requestable data is significantly more complete than ACE reports.  The firm has developed custom programs for organizing, charting, and graphing the data into activity reports. Contact Marshall Miller or Brenda Zeller for details.

IPR STATS

Customs has released mid-year statistics for intellectual property seizures.  China accounted for 85% of the seized property, while footwear was the most commonly seized product, accounting for 36% of the total value of seizures.   

MISC. TARIFF BILL

The Senate Finance Committee minority trade counsel stated on August 1 that the Senate will not consider a Miscellaneous Tariff Bill in 2008, putting temporary duty suspension bills and other miscellaneous trade legislation on hold.  Some of the trade legislation could still be included in other bills.

NEW ORIGIN RULES?

Customs has again proposed replacing the current “substantial transformation” standard for origin marking purposes with the tariff shift-based NAFTA country-of-origin (COO) marking rules in 19 C.F.R. Part 102.  Customs is also proposing to make them applicable to COO determinations under Free Trade Agreements (FTAs) that currently use the “substantial transformation” standard (e.g., U.S.-Bahrain and U.S.-Morocco FTAs).  The Proposed Rule also includes a few product-specific changes to the Part 102 rules for greeting cards, pipe fittings, etc.  Comments are due by September 23, 2008.  Clients should review the Proposed Rule for impact and file comments if they oppose the change or believe the rules applicable to their products should be changed.  Contact Sean Murray with questions or for assistance in filing comments.  73 Fed. Reg. 43385 (July 25, 2008).

POSTERS

We encourage clients to forward to us business posters that are already framed or that we can frame for the walls in our offices. It is a very good "connection" for everyone in our offices to have client posters as our art work.

REVISED CENSUS FORM

A revised “Request for Change in Census Parameters” form is now available on the Customs website.  This form may be used to request an update or correction to the commodity parameters set by Census to stop warning messages that recur.

TRADE DEFICIT

According to U.S. Census Bureau trade data, the U.S. trade deficit narrowed again in June, surprising some analysts.  U.S. exports—spurred by a weak U.S. dollar—continued to expand faster than the increase in imports.

UNIFORM COO RULES?

UNTRUSTED TRAVELERS

• Several persons registered as “trusted travelers” with Customs have been arrested for illegally attempting to smuggle narcotics into the United States.  C-TPAT participants should take note that as a C-TPAT participant subject to a reduced number of exams, their cargo is a potential target for persons seeking to smuggle things into the U.S.

• Notwithstanding these continuing issues with expedited entry programs, Customs has announced the expansion of its pilot International Registered Traveler program (“Global Entry”) to four more airports. The program allows expedited clearance of “pre-approved, low-risk travelers” into the United States.  73 Fed. Reg. 47204 (Aug. 13, 2008).

WPM STAndards

The International Plant Protection Convention (IPPC) Secretariat has posted draft revised standards on wood packing material (WPM).  The draft revised ISPM 15 standards include the new requirement that WPM would have to be debarked and encourage the use of fumigants other than ozone-depleting methyl bromide.  Comments on the draft are due by September 30.  U.S. Customs has issued a notice reminding importers of their obligation to comply with the WPM standards.  To date, thirty-seven countries have implemented ISPM 15 or similar measures.