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Liberty International, Inc.

&

International Delivery Service

 

TRADE SECRETS

 

Holiday 2007

 

 

 

AGENT INFORMATION

 

Yang Ming Delivery:  The Ultimate

 

Yang Ming has taken delivery of “The Ultimate”, an 8200 TEU Box ship, which will work the Asia – Europe service lane. The Ultimate is the size of three and a half football fields and can be plugged into electrical power when at berth. It also boasts other emission-reduction technology and will be manned by a crew of 17. Yang Ming plans to order another three ships of the same family, which are already in use, at a final cost of $3.65 million per ship.

 

Dimerco Conference in California Covers Domestic Insurance Liability

 

Dimerco Express held its yearly USA conference in California this year with Karen Kenney attending as the representative for Liberty International, Inc.

 

One important topic reviewed domestic China truck shipments. Those who utilize domestic truck service within China should be aware that domestic cargo not covered under an airway bill or ocean bill of lading has a maximum liability of 20 RMB/kg from the China trucker.

 

 

Narita Warehouse Los Angeles Relocates

 

Please be advised that Narita Lines Distribution Center in California relocated to a larger facility in late September. The new location, closer to the harbor and airport, boasts 45,000 sq ft with a 1000 pallet capacity racking system, 8 docks and 15,000 sq ft for pick and pack. Effective September 28, 2007 the new physical location is:

Narita Line Inc

1111 Watson Center Road, Unit D,

Carson, Ca 90745

Phone: 310-241-7560

Fax: 310-241-7568

 

New Dimerco Sales Offices: Open for Business

 

Mr. Tony Lin, Managing Director of Dimerco Greater China has announced the opening of new sales offices within Dimerco.

 

Dimerco International Transportation Co., Ltd.

Jiading Sales office.

Room 1009, No.158, South Bole Road,

Shanghai, Jiading area, China 201800

TEL: 86-21-5952-6939

FAX: 86-21-5952-6939

Business Development Manager – Mr. Ricky Zhou

Email: Ricky_Zhou@dimerco.com

 

Dimerco International Transportation Co., Ltd.

Qingpu Sales office.

Room 202, No.17, Zhengfeng Yuan Lane 168, Shenbei Road, Shanghai, China 201108

TEL: 86-21-5442-9097

FAX: 86-21-5442-9097

Business Development Sales Rep. Mr. Cooper Chi

Email: Cooper_Chi@dimerco.com

 

Dimerco Zhongjing International Express Co., Ltd. Qingdao Branch,

Lian Yun Gang Sales office.

Rm302 International Exhibition Center

178 Haitang Bei Road,

Lianyungang, Jiangsu, China 222042

Tel: 86-518-2326661/2/3

Fax: 86-518-2326665

Business Development Manager – Mr. Adams Li

Email: Adams_Li@dimerco.com

 

Effective July 16, 2007:

Diversified Int’l Transportation (Shanghai) Co. Ltd

Wenzhou Sales Office.

Room B-1503 Wanshun Mansion

Chezhan Avenue

Wenzhou City, Zhejiang Province, China 325000

Tel: 86-577-88988061

Fax: 86-577-88988060

Sales Supervisor – Mr. Wayne Wang

Email: wayne_wang@dimerco.com

 

Dimerco Holds Four Day Conference and Golf Tourney

 

Dimerco Express and its related offices in the Orient held its first annual golf invitational in Shanghai. The event, hosted by their CEO Mr. Paul Chien, from Dimerco’s head office in Taiwan, was held after their four day China conference.

 

Liberty’s Nick Cioe, who has been associated with Dimerco for over 33 years, attended the conference and the golf event held at the Lake Malaren Country Club. “I was not only impressed with the professional approach to the conference and the material discussed, but was as impressed with Mr. Robert Yang’s polished approach to the organization of their first annual golf tournament in China” said Cioe.  “I am proud and pleased that I won the low gross in this event for it was so professionally arranged in every way…It was as good an event as I have ever competed in anywhere in the world.

 

Dimerco had approximately 120 players consisting of carriers, clients, employees and service companies. Two or three of these invited guests were paired with one or two representatives of Dimerco.

 

After Mr. Paul Chien hit the opening drive, the entire group was sent out to this 6900 acre lake course to compete for a prize list that would please any participant. Following the golf event, Dimerco was the host for approximately 160 invited guests for dinner and the awards ceremony.

 

International Delivery Service and Liberty International Inc. are very pleased to be awarded “Dimerco’s Best Tonnage Agent in the World”.  Our association, developmental partnership and friendship with this 350 million dollar transportation company has lasted many years, and Liberty International looks forward to many more years of cooperation.

 

 

UPDATES

 

OMB on Track for Rulemaking for 10+2

 

The Office of Management and Budget (OMB)  appears on track to submit the  proposed rulemaking for the so – called “10+2 Rule”, which complies with the SAFE Port Act requiring that CBP collect additional trade data elements on import shipments.

10+ 2 references the 10 additional data elements to be reported by the importer and two from the carrier prior to importation into the USA. Customs refers to these as “advanced trade data elements.” The “10+2” will link manufacturer to the origin and tariff number of each product for submission along with already required data 24 hours prior to vessel departure.

CBP submitted its draft of the security filing to the OMB on November 8th, 2007. Once signed, the next step is publication of a Notice of Proposed Rulemaking in the Federal Register, followed by a 60 day public comment period. Upon review of the comments, CBP then publishes a final rule in the Register.

CPB has stated that it plans to implement the security filing via a 9-12 month phased compliance period.

The Advance Trade Data Initiative is also moving forward, in which several importers have voluntarily transmitted pieces of commercial data through various pipelines to help the agency understand the best way to file and manage the requested data.  The test activity is expected to provide real world experience ahead of implementation so that CBP can share lessons learned with the trade community on the best ways to file the advance data.

 

Report Issued by Antitrust Commission

 

The U.S. Antitrust Modernization Commission (AMC), created by Congress to provide a complete and extensive report on whether antitrust laws in the U.S. need to be modernized, recently issued a report after three years of comprehensive analysis of steamship carrier’s exemptions.

 

In its report, the Commission noted that the Ocean Shipping Reform Act had reduced the ability of the liner conferences to set rates by allowing carriers to enter service contracts with shippers, and disagrees with the carriers’ argument that immunity is necessary to coordinate the use of assets such as space sharing or terminal use.

 

 

Indian Ports Increase Volume by 9.5%

 

March 31, 2007 ended fiscal year 2006 – 2007 for the ports in India, with a total increase in throughput at its major ports of 9.5 %. There are 12 major ports, 6 on each of the west and east coasts, which handled nearly 464 million tons of cargo during the last year.

 

Mumbai and Jawaharlal Nehru had the highest growth of over 18% each, while Kolkata and Chennai had the lowest growth increase of all the ports.

 

West Coast Plans for Growth

 

In California, about a dozen environmental impact reports are slated to be completed by the end of 2007, which had been on hold due to environmental challenges. Once completed, the Ports hope to be able to plan for physical expansion of infrastructure for projected needs after the year 2010. Port directors have emphasized that only when growth does not contribute to an increase in pollution will the projects be approved and even the smallest projects,  such as adding a storage track at an on – dock rail yard,  will trigger an environmental impact report (EIR).

 

In Washington State, a “Container Ports” initiative was introduced in early January of 2007 by the governor, Chris Gregoire. The aim of the initiative is to promote $81 million dollars in critical investments for infrastructure of rails and roads in order to expedite movement of goods over the next two years.

The extension of two state roads to better connect the Port to Interstate 5, a rail project sponsored jointly by the State and BNSF Railroad to elevate the ceiling of a rail tunnel, and adding ventilation, track upgrades and snow sheds are on the list of improvements

 

In the Pacific Northwest, a Clean Air Initiative was released in early May, banding together the ports of Seattle, Tacoma and Vancouver. The ports goal is to reduce emissions by 70% from ships at port and 30% from cargo handling equipment by 2010.

According to the Northwest Regional Administrator for the EPA, which is assisting the project, it is because ports and intermodal facilities are in or near major cities that protecting air quality is a top public health priority.

 

Green Manufacturing Day – September 2007

 

The International Trade Administration (ITA) organized a 'Green Manufacturing Day' for U.S. businesses on September 27, 2007. The ITA aimed to assist small-and medium-sized enterprises in identifying and implementing practical sustainable manufacturing solutions, as well as to provide information on relevant emerging technologies and educate participants on federal government efforts to promote sustainable manufacturing.

 

The meeting, labeled “Enhancing U.S. Competitiveness through Sustainable Manufacturing: A Public – Private Dialogue” included on the agenda the following topics:

 

          Profiting from Sustainable Manufacturing Practices

          Cost effective implementation of sustainable manufacturing technologies and

          U.S. Government Programs, Policies and Resources in Support of Sustainable Manufacturing

 

Sustainable manufacturing is defined by the ITA as the creation of manufactured products that use processes that are non-polluting, conserve energy and natural resources, are economically sound and safe for employees, communities and consumers.

 

If you are interested in receiving sustainable related materials and/or in attending future events, please contact Bill McElnea at (202) 482-2831 or Susmanuf@mail.doc.gov.

 

New York/New Jersey Ports Agree to “Green” Discussions

 

On 10/26/07, the Federal Maritime Commission advised that the Port of New York/New Jersey has filed an agreement that would authorize the parties to discuss issues to promote environmentally sensitive, efficient and secure maritime operations at their ports.

 

China Railroad Infrastructure Top Priority

 

It has been reported that the government of Beijing plans to invest nearly $42 billion dollars in railroad development over the next five years, which would add approximately 11,000 miles of rail track. Currently, nearly 90% of all shipments are shipped via truck.

Intermodal development is a top priority in the five year plan of the government, which also includes creation of 40 intermodal terminals, 18 logistics parks and 100 container handling terminals.

 

RFID Based Network for Shanghai/Savannah

 

The Georgia Ports Authority in conjunction with  the Shanghai International Port Group (SIPG) and Savi Networks  have announced a plan to utilize a Radio Frequency Identification-based network to track containerized cargo transported between the Port of Shanghai in China and the Port of Savannah.

This plan has been named the “Shanghai-Savannah Express Trade Lane Project” and the partners plan to utilize an electronic container seal and Global Positioning Satellite (GPS) integrated handheld hardware to track the containers.  In addition, the project is to be built on an open, international standards-based network platform, which includes compatibility with ISO standards for active RFID devices and electronic container security devices.

FTC Seeks Comments on Leather Guides

 

The Federal Trade Commission (FTC) issued a notice requesting comments from the public on its “Guides for Select Leather and Imitation Leather Products” as part of a systematic review of all current FTC regulations and guides. The FTC sought comments on the economic impact of the Guide, the continuing need for it and possible conflicts between the Guide and state, local, federal or international laws.

 

The guide itself, an interpretation of the laws administered by the FTC, covers topics such as misrepresentations regarding the composition and characteristics of specific leather and imitation leather products, in addition to information regarding the manufacture, sale, distribution, marketing, or advertising of leather or simulated leather items.

 

According to the notice, conduct inconsistent with the Guides may result in corrective action by the FTC under applicable statutory provisions. For further information, please visit:

 

FTC notice available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-9965.pdf

 

The Expansion of Port Manzanillo, Panama

 

In Mid October it was announced that Panama's Port of Manzanillo is moving forward with a $210 million expansion plan to help it accommodate the newest generation of cargo vessels.

 

According to online news sources, Panama’s Maritime Authority said it will transfer control of more than 1.2 million square meters of land to the Manzanillo International Terminal, allowing the port’s owners to develop their facilities for post-Panamax vessels. Currently Manzanillo has just two cranes which are able to deal with post-panamax vessels.

 

While construction on the Panama Canal is planned to be completed by 2014, the port of Manzanillo handled the equivalent of 1.3 million containers in 2006 making it one of the busiest ports in Latin America. 

 

USTR Requests Dispute Settlement on China Subsidies

 

In early July, the Office of the U.S. Trade Representative requested the World Trade Organization to establish a dispute settlement panel regarding China's "apparent use of trade-distorting subsidies" which was supposed to be eliminated once they ascended to the WTO. Several subsidy programs are challenged by the U.S. request, including subsidies conditioned on a firm's use of domestic over imported products and subsidies conditioned on exports.  USTR reports that Mexico plans to join the U.S. and file its own request for a WTO panel.

 

Hours of Service Rules Struck Down

 

On July 16, a federal appeals court struck down current regulations on the number of hours truckers can work over a consecutive period in any week, stating that the reasons for the hours of service rules were not properly explained. In apparent agreement with advocacy groups, the court ruling says the new rules do not adequately address truck driver fatigue.

 

The new rules increased driving time from 10 hours to 11 hours, while reducing on-duty hours in a day from 15 total hours (not counting off-duty breaks) to 14 consecutive hours (including breaks).

 

Final Rule Issued by BIS

 

The Bureau of Industry and Security has issued a final rule which amends the Export Administration Regulations (EAR) list of approved end users in China by name. These are approved to receive exports, re-exports and transfers of certain items. The amendment corrects an omission from a previous listing.

 

There are now five approved end-users in China under Authorization Validated End User (VEU). For the complete list please visit:

 http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-21465.pdf

 

Task Force Created on Economic Partnership Agreement between Japan & EU

 

A task force has been created in Japan by business groups hoping to achieve an economic agreement with the European Union. Some of the goals of the agreement would include:

 

(1) Tariffs and tariff classification improvements

(2) Business and investment environment

(3) Intellectual property rights enforcements

(4) Electronic commerce improvement

(5) Mechanism for settling disputes related to EU directives

 

The market to be created could account for approximately 40 percent of the world's gross domestic product.

 

For more information please visit:

http://www.keidanren.or.jp/english/policy/2007/050.html

 

 

House Hearing on China Trade Legislation

 

The House Ways and Means Trade Subcommittee held a hearing regarding China Trade Legislation. The topics included bills to address trade-distorting currency practices; modification to U.S. trade remedy laws; safety of food imports into the U.S.; and issues related to the application of sanitary and phytosanitary measures overseas. 

 

From a posting on www.house.gov, it was reported that during the hearing,  a letter from eighteen freshman Democrats urged Chairman Charles Rangel and Subcommittee Chairman Sander Levin to promote legislation which would ”aggressively address China’s disregard for U.S. Trade Law”. The letter did not endorse any specific bill, but several of the lawmakers are sponsors of a bill entitled H.R. 1229, which would apply countervailing duties against non – market economies, and bill H.R. 2942 which would apply countervailing duties to currency misalignment as an illegal export subsidy.  According to the posting, the letter also criticized a recent decision by the World Trade Organization (WTO) appellate body and their ruling against the practice used in anti-dumping which is called Zeroing.  This practice eliminates data that shows a negative dumping margin.  For the full article please visit:

http://www.house.gov/apps/list/press/pa04_altmire/morenews/InsideTrade.shtml

 

Other summaries of the meeting note that the Bush Administration warned Congress that any legislation aimed at pressuring China to re-value its currency could backfire. Deputy Assistant Treasury Secretary Mark Sobel addressed lawmakers at the hearing, advising that he did not believe recently approved legislation would strengthen the U.S. position in attaining the goal of promoting faster economic reform in China. The approved legislation by the Senate Banking Committee would tighten the definition of currency manipulation and make it harder for the White House to avoid labeling a country a currency manipulator.

 

APHIS Wood Packaging Interim Rule is Finalized

 

 

Effective October 30, 2007, The Animal and Plant Health Inspection Service‘s interim rule was adopted without change. The interim rule amended 7 CFR Part 353 to clarify that an International Standards for Phytosanitary Measures No. 15 (ISPM 15) quality/treatment mark is an industry-issued certificate for the export of wood packaging material (WPM), and may only be issued when the organization applying the mark has entered into an agreement with APHIS.

 

All solid wood packing material entering the USA must be marked with an approved quality/treatment mark to avoid re-export of the cargo back to origin.

 

OTEXA Update on Indonesia Textile Licensing

 

The Office of Textiles and Apparel (OTEXA) announced new import licensing procedures for textiles and apparel imported into Indonesia. Eighty (80) four-digit Harmonized Schedule line items will be affected, encompassing certain textile and apparel goods imported into Indonesia.  The new requirements include:

¨      Yearly licensing to import certain textile products. License  must be obtained prior to import

¨      Pre-submitted plans for import and obtain a surveyor’s prior verification

¨      Some items may only be done by local textile industry producers

¨      Imports can only be used as raw material or as supplemental to the production process

 

Should requirements not be met, the procedures state that the right to import will be frozen or revoked

 

OTEXA Offers Hot Topics

 

OTEXA also has made available a listing of “Hot Topics” at their website, showing recent updates in Textile Enforcement. Some of the recent changes include:

           

          Argentina’s new import Licensing  Requirements for Certain Apparel

          Brazil’s increase of duties on Apparel Imports

          Taiwan’s Labeling Regulation for Textile and Apparel Products

          Sweden’s ban on products containing decaBDE (Flame Retardant)

 

For complete information, searchable by date, country, etc., please visit OTEXA online at:

http://web.ita.doc.gov/otexa/hotiss.nsf/$$searches?openform

 

 

FTC Signs Consumer Protection MOU with China

 

The Federal Trade Commission (FTC) and China’s consumer protection agency, the State Administration for Industry & Commerce (SAIC) signed a Memorandum of Understanding (MOU) to promote consumer protection cooperation in early June.

 

According to the press release on the FTC website, the MOU will facilitate better policy-level cooperation in consumer protection matters for both nations. It is not a legally binding agreement and does not alter any current laws, but is aimed at promoting an open exchange of views on consumer protection issues of common interest, as well as providing a platform for collaborative seminars and events to promote consumer protection.

 

For more information, please visit:  

http://www.ftc.gov/opa/2007/06/chinamou.shtm

 

U.S. and China Sign Air Accord

 

A new aviation treaty will lift most of the restrictions currently imposed on air cargo services between China and the United States over the next few years. The agreement will give unlimited designations for U.S. passenger and cargo carriers after 2011 and U.S. passenger airlines will be able to operate 23 roundtrip flights by 2012.

 

Specific rights are delineated in the agreement, and China will receive “unlimited designations” immediately. Both countries hope to begin open skies negotiations by 2010.

 

Los Angeles/Long Beach Clean Truck Program Update

 

The Journal of Commerce reported in early November that the Port of Long Beach has delayed voting on the Clean Trucks Program originally slated for a vote on Monday. The goal is to seek agreement with the Port of Los Angeles on a plan which would cover both ports given that most truckers currently call on both ports.

 

Controversial points from the original plan were set aside in the most recent version, including the provision requiring trucking companies to apply for a concession from the ports in order to call there, and the requirement to hire drivers as direct employees.


A seemingly final draft of the plan was announced last week by both ports, which would plan to reduce diesel emissions from harbor trucks by 80 percent by the year 2014.  Included in the plan is a phased in retirement of approximately 16,000 trucks that now call regularly in LA-Long Beach harbor.

 

Votes from both ports were scheduled to take place this week, however, the Port of Los Angeles changed its proposed tariff to be implemented by 2012 instead of 2014 over the weekend, and due to the change, the Long Beach Harbor Commission decided to remove the item from their agenda for a vote.

 

Mandatory Use of Container Security Devices Unlikely

 

In the American Shipper dated 10/31/07, it is reported that U.S. Customs and Border Protection Deputy Commissioner Jayson Ahern, recently stated that the mandatory use of container security devices (CSD’s) on all ocean containers entering the U.S. is unlikely due to difficulty finding a reliable CSD, but that CSD’s could be useful in limited applications. For more detail please visit American Shipper, dated 10/31/07 at www.americanshipper.com.

Radiation Monitor Program is Delayed

 

The plan to deploy new radiation monitors to screen trucks, cars and cargo containers for signs of nuclear devices has been put on hold after an audit by the Government Accountability Office found that detection rates of machines tested by the Department of Homeland Security office were as low as 17 % and no higher than 50%. The hope was that these new radiation monitors would improve radiation scans at borders and ports, and reduce the number of false alarms. Appropriations from Congress were approved based on a June 2006 report that said the machines could detect highly enriched uranium about 95 percent of the time.

 

However, the GAO report states that the DHS estimates of the cost and benefits of using the radiation detectors were based on assumptions and not facts, and that the cost benefit analysis did not justify its decision to purchase and deploy the radiation detectors. This report led to the project being placed on hold.

 

$600 Million Fine against Two Air Cargo Carriers


It was announced on August 1 by the Department of Justice that British Airways and Korean Airlines both pled guilty to price fixing conspiracy charges. The charges state that the airlines engaged in a conspiracy to suppress and eliminate competition by fixing the rates charged to customers for international air shipments of cargo.

 

The two companies will pay $300 million each in criminal fines as part of a plea agreement. Antitrust officials began investigating the possibility of anticompetitive practices in the air cargo industry in 2006. First targeted were airfreight carrier agreements regarding fuel, security and war-risk insurance premiums. Offices of many airlines were raided, while others received requests for information.

 

From March 2002 to February 2006, British Airways’ fuel surcharge on air cargo shipments to and from the U.S. changed more than 20 times and increased from four cents per kilogram to as high as 72 cents per kilogram. Korean Air was charged with agreeing with its air cargo competitors on rates charged to customers for international air cargo shipments from at least January 2000 to February 2006.

 

Clark’s of England…Flip Flop for Breast Cancer!

 

Clark’s of England put their best foot forward this summer to help fight breast cancer…literally! Liberty International, Inc is proud to have assisted Clarks in distributing the giant flip flop display to their retail locations throughout the U.S.

 

The shoe company has created this giant display to help draw attention to their campaign to fight breast cancer. A portion of all proceeds from their flip flop sales will be donated to breast cancer research.

 

 

 

Customs News

CBP Office of Intelligence has New Overseer

 

Mr. Rodney Snyder assumed oversight of CBP's new Office of Intelligence and Operations Coordination (OIOC) on October 1, 2007.  This new office will lead the way in transforming CBP into a fully integrated, intelligence-driven organization. Mr. Snyder joins the CBP from the intelligence community with an extensive background in national security and counter terrorism.

 

CBP Opens New FOIA Office

 

Customs and Border Protection opened a new Freedom of Information Act (FOIA) office under the Office of International Trade on October 1, 2007.

 

This new office supports the President's Executive Order (13392) to improve agency disclosure of information. The Acting FOIA Director, Mr. Mark Hanson and his staff are processing FOIA requests and will also prepare statistical reports for CBP management, the DHS and DOJ.

 

All new FOIA requests should now be sent to:

U.S. Customs and Border Protection

1300 Pennsylvania Ave., NW,

Attn: Mint Annex Building,

FOIA Division Washington, DC 20229

Tel: (202) 572-0640.

 

Partners in Protection Update - Canada

 

Customs and Border Protection (CBP) has asked the Canadian Government to strengthen its “Partners in Protection (PIP)” program to be more in line with the U.S. C-TPAT program. More staff dedicated to verifications, on site assessments and more clearly defined security criteria are some of the practices CBP would like to see adopted. The goal is to streamline PIP so that future mutual program recognition will be possible.

 

 

Secure Freight Initiative: Phase One Begins

 

A press release was issued by the Department of Homeland Security (DHS) stating that in conjunction with the Department of Energy (DOE), operational testing of the Secure Freight Initiative (SFI) began earlier this year in Honduras and Pakistan. The goal is to strengthen global supply chain security by scanning shipping containers for nuclear or radiological materials before they are allowed to depart for the U.S.  

 

Four other SFI ports are expected to initiate tests this year, including Southampton, U.K.; Salalah, Oman; the Port of Singapore and the Gamman Terminal at Port Busan in Korea. DHS plans for data transmission to CBP officers working in overseas ports in near real-time. The data will be combined with other risk assessment information to improve analysis, targeting and scrutiny of high-risk containers.

 

Hong Kong Joins Secure Freight Initiative

 

U.S. Customs and Border Protection (CBP) announced in late July that Hong Kong has agreed to take part in operational testing under the Secure Freight Initiative. Hong Kong will initially be participating only in a limited capacity.

 

Hong Kong is a key location for testing, as it is the leader in volume of shipments and containers to the USA.

 

Securing Commercial Aviation/Surface Systems

 

The United States Government Accountability Office (GAO) has published two similar congressional testimonies on aviation and surface transportation security, with a common theme of progress being made but challenges remaining.

 

The Subtitle of the first states “DHS Has Made Progress in Securing the Commercial Aviation System, but Key Challenges Remain.” Among other things, the GAO notes that the Department of Homeland Security and the Transportation Security Administration have not yet developed and implemented technologies needed to screen air cargo.

 

For rail cargo, the report states that the TSA has only initiated efforts to develop security standards for passenger and freight rail, but has not yet addressed commercial vehicles or highway and bridge infrastructure. For the full reports dated 10/16/07, please visit http://www.gao.gov/new.items/d08139t.pdf and http://www.gao.gov/new.items/d08140t.pdf )

 

EU Approves Customs 2013 Program

 

The Customs 2013 Program has been adopted by the European Union for the years 2008 through 2013. The program will support the development of a pan-European electronic Customs environment and seek international Customs cooperation related to supply chain security. The main goals of the program are as follows:

¨      Reinforce security and safety within the EU and at the external border;

¨      Strengthen the fight against fraud and protect the financial interests of the EU Member States;

¨       Increase the competitiveness of European business by speeding up Customs procedures through the creation of a European paperless electronic Customs environment.

 

 

Seizure of Counterfeit Goods Increases

 

According to a CBP press release, the seizure of Counterfeit goods increased 83% during the 2006 fiscal year (FY), and CBP and Immigration and Customs Enforcement (ICE) made more than 14,000 seizures of counterfeit goods. Those seizures, worth more than $155 million, are a 67% increase from the previous year.  Major cases executed during the 2006 FY involved the following:

 

o       77 containers of counterfeit Nike Air Jordan athletic shoes and one container of Abercrombie & Fitch clothing.

o       Counterfeit Zig Zag cigarette papers.

o        Counterfeit National Football League jerseys, blankets, coats, and other apparel and accessories.

 

Illegally Transshipped Apparel Seized

 

Customs and Border Protection announced in mid –October that it has seized three shipments of more than 2,500 cartons of wearing apparel valued at approximately $1 million at the Port of Newark, N.J. The goods were illegally transshipped in an effort to circumvent textile trade laws and regulations.

Targeting by the Office of International Trade was credited with deploying targeting technologies used for border security that have also proved effective for trade compliance.

Foreign factory visits by Customs has doubled from fiscal year 2006 to fiscal year 2007, while audits have increased by 60%.  Penalties assessed have increased more than three-fold.

 

USTR News:  Chile, Korea, DR – CAFTA and India

 

Chile - The Office of the U.S. Trade Representative (USTR) issued a notice requesting submission of petitions to accelerate the elimination of tariffs detailed in the U.S. – Chile Free Trade Agreement (USCFTA). The USCFTA provides that the two countries can agree to accelerate this process. The closing date for entry was 7/20/07.

 

Comments were also requested in reference to liberalizing the rules of origin, particularly in light of more recent FTAs. The USCFTA allows the parties to amend the origin rules as they deem appropriate. The U.S. and Chile have not yet decided whether to accelerate tariff elimination, or make further changes to the rules of origin. If changes are made, there are also no decisions regarding how extensive such changes should be.

 

 

Mexico