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Newsletter Volume 4 Issue 8 2/22/08

Newsletter Volume 4 Issue 7 2/6/08

Newsletter Volume 3 Issue 6 1/25/08

Newsletter Volume 3 Issue 5 1/14/08

San Pedro Bay Ports Clean Air Action Plan

 

12/ 7/07

House Passes Bill Setting Jan. 15, 2009, Deadline for Child Labor-Made Goods List
Dec. 5 - By Donna Chung - Sandler, Travis & Rosenberg, P.A.

Congress signaled yesterday that it expects to move rapidly toward the development of a list of foreign-made goods believed to be produced with forced or child labor in violation of international standards. Companies concerned about achieving compliance and avoiding import delays or seizures should act now to get involved with this process as it moves forward.

The House of Representatives passed Dec. 4 by an overwhelming 405-2 vote a bill (H.R. 3887, the Trafficking Victims Protection Reauthorization Act of 2007) that establishes a Jan. 15, 2009, deadline for the Department of Labor to submit this list to Congress and make it available to the public. The list is required under the TVPRA of 2005, which requires the DOL's Bureau of International Labor Affairs (ILAB) to work with other federal agencies to ensure that such products are not imported into the U.S. The setting of a deadline for the submission of this list is a critical development, as it demonstrates the political will behind monitoring and enforcing the TVPRA of 2005.

The list's effects will likely cut across industries and regions. While U.S. law already bans the importation of goods made by convict labor, forced labor and/or indentured labor, including child labor, it grants an exception for goods that are not mined, produced or manufactured within the U.S. in quantities sufficient to meet domestic demand. The TVPRA of 2005, however, does not contain this exception, meaning that the scope of products that may be prohibited from entry could be expanded.  The law also requires the ILAB to work with industry to create a standard set of practices that will reduce the likelihood that the goods included on the list will be made using prohibited forms of labor.

Importers, customs brokers and others likely to be affected by the development of the DOL list are advised to stay abreast of related developments. ST&R's corporate social responsibility professionals are well-qualified to assist any company wanting to learn more about how this initiative may affect them and how to mitigate potential risks in their supply chain.

 

China 2008 Quotas Established, 2007 Quotas Adjusted for China
By Sandler, Travis & Rosenberg, P.A.

CITA has issued a directive to U.S. Customs and Border Protection establishing the 2008 quotas on Chinese textile and apparel products pursuant to the Nov. 8, 2005, memorandum of understanding between the U.S. and China. In that MOU, the two governments agreed to quotas for certain cotton, wool, manmade fiber, silk blend and other vegetable fiber textiles and textile products produced or manufactured in China and exported to the U.S. during the three one-year periods beginning Jan. 1, 2006, and extending through Dec. 31, 2008. The quotas set forth in this directive will be effective as of Jan. 1, 2008, and may be adjusted during the course of the year for carryforward used in 2007.

CITA notes that baby socks classified in HTSUS 6111.20.6050, 6111.30.5050 and 6111.90.5050 will be counted in dozens of pairs for quota purposes. These baby socks are subject to the quota level for category 332/432/632-T and the sublevel for category 332/432/632-B, but the correct category designation 239 will be required at the time of entry for quota purposes.border and therefore has the authority to detain, seize or forfeit violative products.   

*Customs Continuous Bond Replacements
By John Maser – C-Air Customhouse Brokers

On October 4, 2007 CBP announced that they would require over 900 Importers nationwide to replace their valid Customs Continuous Bonds.  The need for replacement arises from the fact that Customs could not migrate all Importers’ Customs Continuous Bonds from the ACS System to the ACE System.

This past week, Customs has commenced sending letters to the affected Importers.  Those affected will be required to cancel their existing Bonds and replace them with a new Bond as Instructed in the letter.

The cancellation and replacement process must be within 45 days of the date of the Notice.  This is a very serious matter for those Importers.  If you should receive a letter from Customs, then please contact our office at once.  Please direct your contact to Mr. Kevin Maher @ 516-394-0400 / kevin@c-air.com or John Maser at 516-394-0492 / johnm@c-air.com. You may call for more information.

 

Peru Free Trade Agreement Act
By Broker Power Inc.
The Senate passed the Peru Trade Promotion Agreement (PTPA1) implementing legislation (H.R. 3688) by a vote of 77 to 18 on December 4, 2007. 

President to Sign Act Into Law 
As this same measure passed the House on November 8, 2007, it will now go to the President, who has stated that he will sign it into law.  This is the first free trade agreement approved by Congress that incorporates the labor and environmental standards agreed to in May 2007. 

Both the President and U.S. Trade Representative now urge Congress to consider and approve the pending FTAs with Colombia, Panama, and South Korea. 

(The PTPA will not take effect when the President signs H.R. 3688 into law. There are steps other than the enactment of this legislation that must be taken to bring U.S. and Peruvian laws into conformity with the PTPA, including the issuance of a Presidential Proclamation that amends the Harmonized Tariff Schedule (HTS).)

Highlights of U.S.-Peru FTA  
 According to an earlier summary by the USTR, the following are highlights of the PTPA (partial list): 

80% of U.S. exports to become duty-free immediately.  80% of U.S. exports of consumer and industrial products to Peru will be duty-free immediately upon entry into force of the agreement, and an additional 7% will be duty free within five years. All remaining tariffs will be eliminated within ten years. 

2/3 of U.S. farm exports to become duty-free immediately.  More than two-thirds of current U.S. farm exports to Peru will become duty-free immediately. Tariffs on most remaining U.S. farm products will be phased out within 15 years, with all tariffs eliminated in 18 years.                                                                       

Duty-free treatment for qualifying textiles and apparel. Textiles and apparel will be duty-free and quota-free immediately if the products meet the agreement's rule of origin, promoting new opportunities for U.S. and Peruvian fiber, yarn, fabric and apparel manufacturing.                                                

Textile safeguard provision.  The PTPA also includes a special textile safeguard that will provide for temporary tariff relief, if imports under the PTPA prove to be damaging to domestic producers.

 Transparent and efficient customs procedures.  The PTPA requires transparency and efficiency in administering customs procedures, including its rules of origin. Peru commits to publish laws and regulations on the Internet, and will ensure procedural certainty and fairness.   

(See ITT’s Online Archives or 11/09/07 news, (Ref: 07110900), for BP summary of House passage of PTPA. 

See ITT’s Online Archives or 10/01/07 news, (Ref: 07100105), for BP summary regarding the President’s transmittal of the PTPA implementing legislation to Congress.

 See ITT’s Online Archives or 05/14/07 news, (Ref: 07051405), for BP summary of May 10, 2007 agreement on new U.S. trade policy that incorporates labor, environmental standards in the agreement.)

 1 The term ‘trade promotion agreement’ is essentially interchangeable with the term ‘free trade agreement.’

 U.S.–Peru TPA text and ancillary documents available at http://www.ustr.gov/Trade_Agreements/Bilateral/Peru_TPA/Section_Index.html 

President’s Bush statement on Senate passage (dated 12/04/07) available at http://www.whitehouse.gov/news/releases/2007/12/print/20071204-6.html 

Informed Compliance Publications
CBP has a number of Informed Compliance publications (ICPs) in the "What Every Member of the Trade Community Should Know About: ..." series. Which are available for reading or downloading at:

http://www.cbp.gov/xp/cgov/toolbox/legal/informed_compliance_pubs/

 

FDA Launches E-mail Alert Subscription Service through Public Web site
December 3, 2007

The U.S. Food and Drug Administration today announced a new e-mail service that alerts subscribers whenever information is updated on certain FDA Web pages.

The service is free and available for a wide variety of FDA's Web pages, including food safety protection, medical product approvals and consumer health information.

"Being able to directly communicate with consumers, health care professionals and the regulated industry about the safety of our food supply and medical products is critical to FDA's ongoing commitment to protecting the public health," said Andrew C. von Eschenbach, M.D., Commissioner of Food and Drugs. "E-mail is the leading use of the Internet, and this service strengthens FDA's ability to keep its audiences informed quickly and effectively."

To receive e-mail alerts, subscribers need only click on the red envelope icon located on participating Web pages. Each e-mail update includes a direct link to the FDA Web page that has been updated.

Powered by GovDelivery, a private sector e-mail subscription management system used by several other federal agencies, the service allows subscribers the flexibility to personalize the information most important to them.

A full list of currently available topics can be found at www.fda.gov/emaillist.html).

 

FOR YOUR INFORMATION, 

HERE IS THE LIST OF SCHEDULED FEDERAL HOLIDAYS FOR 2008.
 
               JANUARY               01            NEW YEAR'S DAY
               JANUARY               21            MARTIN LUTHER KING, JR'S BIRTHDAY (OBSERVED)
               FEBRUARY             18            PRESIDENT'S DAY
               MAY                       26            MEMORIAL DAY
               JULY                       04            INDEPENDENCE DAY
               SEPTEMBER          01            LABOR DAY
               OCTOBER               13            COLUMBUS DAY
               NOVEMBER            11            VETERANS DAY
               NOVEMBER            27            THANKSGIVING DAY
               DECEMBER            25            CHRISTMAS DAY

 

 
 

 

11/ 21/07

Textile and Apparel Detention Policy Modified for ISA Importers

By Sandler, Travis & Rosenberg, P.A.

 U.S. Customs and Border Protection issued a memorandum to its field offices Nov. 13 modifying its detention and penalty policy for certain textile and apparel shipments. This memo provides that while shipments identified based on the findings of a CBP Textile Production Verification Team (jump team) are usually not released until their country of origin has been verified through the presentation of production records, in certain cases shipments from companies approved under the Importer Self-Assessment program will not be detained. However, this detention exception does not apply to ISA participants using manufacturers the TPVT has identified that (1) have falsely declared a country of origin, (2) were closed at the time of the visit and were verified closed at the supposed time of production of the goods, or (3) never existed.

Detention Policy. If a shipment from an ISA importer is eligible for this exception, CBP will conditionally release the merchandise and immediately issue a Request for Information (CBP Form 28) to obtain production records to determine the country of origin. In addition, the import specialist will contact the national or port account manager of the ISA company, who will work with that company to ensure maximum compliance with minimum disruption to the company’s trade activities. The ISA company may decide either to hold the goods until admissibility is determined or to allow the goods to continue to move through the supply chain.

If the documents the importer presents substantiate production in the declared country, no further action is warranted by the port or importer. However, if the documents fail to prove production or the importer does not submit the requested documents, the merchandise, though conditionally released, is deemed inadmissible and a redelivery notice is to be issued to exclude the merchandise. The redelivery notice must be issued within 180 days of release of the goods.

Penalty Policy. If the ISA company has maintained custody of the goods and returned them to CBP after the issuance of a redelivery notice, CBP will initiate a 19 USC 1592 penalty, with transshipment an aggravating factor in the mitigation, and record the incident in order to establish a basis for a pattern of conduct. If the incident is a repeat offense, the procedures for a second violation of non-redelivery (see below) are to be followed, other than the assessment of liquidated damages.

If redelivery is required but the goods are not available because the ISA company did not maintain custody, CBP will take the following actions for a first violation: (1) assess liquidated damages for failure to redeliver the merchandise; (2) initiate a 19 USC 1592 penalty wherein transshipment is an aggravating factor in the mitigation; (3) the Textile Operations Branch notifies the account manager that the ISA participant has a violation pertaining to origin; and (4) the ISA company becomes subject to the standard detention policy for non-ISA participating companies.

CBP will take the following steps for a second such violation: (1) assess liquidated damages for failure to redeliver the merchandise; (2) initiate a 19 USC 1592 penalty, with minimum or no mitigation allowed; (3) the TOB notifies the account manager that the ISA participant has a violation pertaining to origin; and (4) the company is removed from the ISA program (though it may reapply later).

 

Responding to Product Safety Enforcement Actions against Imports

By Lenny Feldman Sandler, Travis & Rosenberg, P.A.

 At first glance you might not think that toothpaste, seafood, toys, chili, relish, tires and dog food have much in common. Talk to those engaged in international trade, though, and they will readily explain that each of these products has been subject to import safety concerns in recent months. Food and consumer product safety has become a front-page issue and a key topic in Congress, where over 60 related bills have been introduced this year alone. Each day seems to bring news of another recall, seizure or other enforcement action, and no company or product is immune.

In this environment, traders need to be prepared for the increasing possibility that their shipments may be seized, detained or otherwise delayed due to product safety concerns. Although there are any number of federal agencies that may have statutory and regulatory authority over your specific goods, it is typically U.S. Customs and Border Protection that enforces those laws and regulations at the border and therefore has the authority to detain, seize or forfeit violative products.

As a result, an important aspect of your preparation is to understand CBP’s enforcement process and how you can most effectively address related actions.

Many of CBP’s enforcement actions are taken under laws that also provide ways to expedite or mitigate those measures, such as the Customs Modernization Act. Under the Mod Act, CBP must decide to release or detain merchandise within five working days of its presentation for examination. If the goods are not released within that time they are deemed detained. If CBP decides to detain the goods it must provide notice to the importer within five working days of that decision. This notice must state the specific reason for the detention, the anticipated length of the detention, the nature of the tests or inquiries to be conducted, and the nature of any information that, if supplied to CBP, would accelerate the disposition of the detention. In fact, CBP is required to provide copies of any testing results and a description of the analytical methodologies utilized to any party having an interest in the merchandise.

If a detention cannot be resolved administratively, the Mod Act sets forth circumstances in which importers may pursue the matter in court. For example, if CBP fails to make an admissibility decision within 30 days after the goods have been presented for examination, that inaction is treated as a decision to exclude the goods from entry into U.S. commerce. A 2006 Court of International Trade decision stated that in such a situation “the importer may then dispose of the goods as he chooses.” As a result, if the goods have been deemed excluded, the importer may file a protest against a CBP decision to detain them. Any adverse protest decision may then be challenged at the CIT.

However, there is a critical caveat to these detention and exclusion procedures – they only apply when the admissibility determination is vested in CBP. If an agency other than CBP is responsible for the admissibility decision, the expedited administrative and judicial review procedures are inapplicable. The legislative history of the Mod Act notes that while CBP often detains merchandise on behalf of other agencies, it is generally not directly involved in the decision to admit or exclude those goods.

 Another law that governs CBP enforcement actions is the Civil Assets Forfeiture Reform Act, which aims to create a more equitable and fair procedure by streamlining seizures and forfeitures. CAFRA generally provides that CBP must issue a CAFRA notice of seizure within 60 days of the seizure to any person with an interest in the items at issue. The courts have upheld a strict interpretation of this standard, finding that a seizure occurs when CBP takes possession and control of the goods and there is some meaningful interference with a party’s possessory interest in those goods.

Once again, however, there is a caveat: CAFRA is inapplicable to forfeitures under the Tariff Act of 1930 or any other provisions of Title 19 of the U.S. Code pertaining to CBP seizures and forfeitures. Seizures arising under the Federal Food, Drug and Cosmetic Act, the Trading with the Enemy Act and the Neutrality Act regarding illegal exports are also excluded from CAFRA.

Given the limitations in the scope of the Mod Act and CAFRA provisions, there are many infractions that can fall between the cracks and get stuck in a tedious and frustrating enforcement process where no time frame for final resolution exists. Although the Administrative Procedures Act prohibits federal agencies from acting in a manner that unreasonably prevents a company from availing itself of its due process rights, it is customary for CBP seizure cases to extend for months until CBP and the appropriate agency reach a final disposition. Meanwhile, the importer is racking up exorbitant fees for storage of the seized goods at the CBP contractor’s facilities.

Importers and exporters are therefore well-advised to consider adopting the measures necessary to avoid detentions and seizures altogether. They should also explore the alternatives that federal agencies may be willing to consider to expeditiously resolve any enforcement actions that are taken. These steps may include the following.

• Confirm whether your goods are subject to any restriction or prohibition relating to health, safety or conservation. If so, work with the manufacturers, product engineers and/or third-party inspection companies to ascertain whether the goods are in compliance with the applicable laws or regulations.

• Assess prior to shipment whether the merchandise requires a license, permit or other authorization from a U.S. government agency. Ensure that the merchandise is accompanied by such license, permit or authorization at the time of import or export.

• If it is determined that a party attempted to enter or introduce merchandise contrary to law, consider the possibility of having CBP reject or deny the entry in order to have the goods exported and removed from the seizure process.

• If the merchandise is not prohibited from entry altogether, consider entry into a bonded warehouse or foreign-trade zone, providing for subsequent withdrawal once the defect or restriction is corrected.

• Consider asking CBP to issue a monetary penalty in lieu of seizure if the defect or restriction is correctable.

• Attempt to structure an early release agreement with CBP by depositing a sum that approximates the final amount for remission of the possible forfeiture, agreeing to hold the U.S. government harmless and paying storage charges and other related costs.

 

CITA Allows Certain Circular Knit Fleece Fabrics to be Sourced Outside DR-CAFTA Countries in Unrestricted Quantities

By Broker Power Inc.

 The Committee for the Implementation of Textile Agreements has issued a determination that certain three-thread circular knit fleece fabrics classifiable in HTS 6001.21.0000 cannot be supplied by the domestic industry in commercial quantities in a timely manner under the U.S.-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA).

Subject Fabric Can be Sourced Outside DR-CAFTA in Unrestricted Quantities
As the two entities who objected to the request both withdrew their objections (see below), and because no other interested entity submitted a response objecting to the request or expressing an ability to supply these knit fleece fabrics, CITA has determined to add the fabrics to the list in Annex 3.25 of the DR-CAFTA. (Texpasa, S.A. and Elasticos Centro Americanos y Textiles (Elcatex) both made offers to supply the subject fabrics; however, their offers were withdrawn after the petitioner asserted that neither offer was sufficient.) 

CITA's designation allows these fabrics to be sourced from outside the DR-CAFTA member countries (currently the U.S., Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua) without destroying eligibility for DR-CAFTA treatment. CITA states that the subject fabrics are added to the list in Annex 3.25 in unrestricted quantities.  (According to CITA, the DR-CAFTA contains a list in Annex 3.25 for fabrics, yarns, and fibers that the DR-CAFTA Parties have determined are not available in commercial quantities in a timely manner in the territory of any Party. Articles that otherwise meet the rule of origin to qualify for preferential treatment are not disqualified because they contain one of the products on the Annex 3.25 list.)CITA determination (FR Pub 11/08/07) available at       http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-21950.pdf

 

 

FOR YOUR INFORMATION, HERE IS THE LIST OF SCHEDULED FEDERAL
HOLIDAYS FOR 2008.
 
               JANUARY    01                    NEW YEAR'S DAY
               JANUARY    21                    MARTIN LUTHER KING,JR'S BIRTHDAY (OBSERVED)
               FEBRUARY   18                   PRESIDENT'S DAY
               MAY        26                         MEMORIAL DAY
               JULY       04                          INDEPENDENCE DAY
               SEPTEMBER  01                   LABOR DAY
               OCTOBER    13                    COLUMBUS DAY
               NOVEMBER   11                  VETERANS DAY

               NOVEMBER   27                  THANKSGIVING DAY
               DECEMBER   25                   CHRISTMAS DAY

 

 
 

 

February 22, 2007

CUSTOMS AMENDS REGULATIONS ON THE CONDITIONAL
RELEASE OF FDA-REGULATED PRODUCTS

By: Erik D. Smithweiss of Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

U.S. Customs & Border Protection ("Customs") has issued a Federal Register Notice amending the Customs Regulations to establish a new period for conditional release from Customs custody of any food, drug, device, and cosmetic article imported into the United States pursuant to section 801 of the Food, Drug and Cosmetic Act (21 USC 381). Please feel free to contact our office if you have any questions concerning the amended regulation.

Background

FDA-regulated imported products are conditionally released under bond from Customs custody. Once the conditional release period has expired, Customs has 30 days in which to demand redelivery to Customs custody of FDA-regulated products. Failure to comply with a properly issued demand for redelivery may result in the assessment of liquidated damages equal to three times the value of the merchandise or equal to the domestic value of the merchandise.

In 2002, Customs proposed to amend 19 C.F.R. § 141.113 to provide that the
release from customs custody of any FDA-regulated food, drug, or device would be deemed conditional during the 180-day period following the date of release of the merchandise. Thus, under the proposed regulation, Customs would have been authorized to issue the demand for redelivery up to 210 days after the date of release of the merchandise (180 days plus 30 days). Based upon opposition from
the importing public, Customs reduced the conditional release period to 30 days. However, Customs also granted FDA authority to extend the period indefinitely. The amended regulation, as set forth in the Final Rulemaking Notice, is discussed below.


Final Rule

Subsection (1) of §141.113(c) now states that, unless extended under subsection (2), the conditional release period for FDA regulated products will terminate upon the earliest occurrence of the following events:

(1) The date that the FDA issues a notice of refusal of admission;
(2) The date that FDA issues a notice that the merchandise may proceed;
(3) Upon the end of the 30-day period following the date of release.


Subsection (2) of § 141.113(c) extends the conditional release period if FDA issues a
written or electronic notice of sampling, detention, or other FDA action to the bond principal (i.e.,importer of record) within 30 days of the release of the merchandise. The regulation does not specify what event will terminate the conditional release period in such cases.

As a practical matter, the new regulation will have little impact upon current CBP and FDA procedures for release and recall of FDA regulated articles. So long as FDA issues a notice of FDA action or similar document within 30 days of the date of entry, the goods will be deemed subject to an indefinite conditional release. That extended conditional release period will presumably end once FDA issues a notice of release or refusal of admission. However, the Courts have ruled that final liquidation of the entry discharges the importer’s obligation to redeliver under the Customs bond. Thus, Customs’ notice to redeliver must still be issued before liquidation is final.

The only material change created by the new regulation is that if FDA fails to issue any notice within 30 days after entry, the conditional release period will be deemed to have expired on the 30th day. CBP’s interpretation of the regulatory scheme is that CBP will then have 30 more days to issue a valid demand for redelivery (for a total of 60 days from date of entry). An FDA Notice of Action issued more than 30 days after release will not have the effect of extending the conditional release period.

 

 

 

 

December 21, 2006

Re: CITA Releases 2007 Quota Limits for Vietnam; No Staged Entry for 2006 Overshipments

CITA has announced the 2007 quotas for textile and apparel imports from Vietnam. A Federal Register notice that will be published tomorrow, December 21st , verifying their decision concerning these quota levels upon Vietnam’s accession to the WTO scheduled for January 11th, as well as their position on overshipments of any 2006 quota levels.

It is expected that once Vietnam becomes a member of the WTQ on January 11, 2007, quotas will be eliminated for all textile and apparel imports. Also, that any over shipments of the 2006 quota levels will be charged against the 2007 quotas. This means that there will be no delayed or staged entry requirement for 2006 overshipments.

Sources from Vietnam state that officials will resume issuing export licenses for 2006 shipments effective December 20”. Further, Vietnamese officials indicate the visa issuance for all shipments will be automatic.

If you have any questions, please contact us.

C-AIR CHB

 

 

November 17, 2006

News Release
PREPARED BY:

Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

Counselors at Law

399 Park Avenue
25th Floor
New York, New York 10022-4877
(212) 557-4000
Fax: (212) 557-4415

U.S. Customs will be sending jump teams to visit Hong Kong factories for two weeks commencing December 2, 2006. In the past where Customs was not able to arrange visits, or record requests were not properly addressed by the factories, goods purchased from those factories were detained, excluded, and sometimes seized. You should alert your Hong Kong sources that Customs is coming to visit factories so that it will not be a surprise. If a factory is contacted by Customs, it will be beneficial to find out (1) who contacted the factory, (2) who from Customs was present at the visit, (3) what records they reviewed (what day they visited, what styles were involved, what records were requested, what records were produced), and if possible (4) find out whether the factory was able to provide all of the information requested. If there is a problem with a particular factory, it is better to find out before goods are detained.

Trade Circular pdf
 

 

October 2, 2006

Anti-dumping Reimbursement Certificates

Effective immediately importers are required to file reimbursement certificates on an annual basis for all imports of merchandise covered by anti-dumping duties in all ports of entry.

Failure to file these blanket statements each year will result in fines being issued for “double” the anti-dumping duties.

A copy of the customs directive and a blanket statement of non-reimbursement are included for your review. Kindly contact your C-Air entry representative regarding filing of these forms.

Guidance for Certificates of Reimbursement (PDF)
 

Volume 10, Issue 1

March 24, 2006

PierPASS Price Increase
Effective April 24, 2006

The PierPASS fee for picking up containers during peak hours at the Los
Angeles/Long Beach Harbors will increase April 24th. The increase originally
scheduled for April 3rd has been postponed three weeks as requested by the
trade community. The prices will increase to $50 for a twenty foot container and
$100 for a forty foot container. Peak hours are 8:00 AM to 5:00 PM Monday
through Friday. There will continue to be no charge for containers picked up
during off-peak hours of 6:00 PM to 3:00 AM Monday through Thursday and
8:00 AM to 4:00 PM Saturday.

The fee was instituted in July 2005 to encourage importers to have their
containers pickup up during off hours to reduce traffic and pollution in the harbor
area. The money collected is returned to the terminal operators to offset the
cost of labor manning the yard gates during the additional hours.

The program had an initial goal that 15-20% of all imported containers would be
picked up during off-peak hours. However in the first six months of the program
nearly 35% of imported containers eligible for the fee have been retrieved during
off hours. This has caused less money to be collected than originally anticipated
and led to the increase in fees.

For additional information about PierPASS or to forward questions directly to the
service, please visit info@pierpass.org.
 

 

January 17, 2006

TO: OUR VALUED CLIENTS

Maersk Sealand will be closing its New York City freight cashier office on February 3, 2006. Beginning February 6, 2006, Maersk Sealand will no longer receive bills of lading, release original bills of lading, or receive freight payment at their New York City Freight Cashier location. We now have to send all checks and bills of lading to their Charlotte, North Carolina office, via over night courier.

Maersk Inc.
Payment Services—2nd floor
6000 Carnegie Blvd
Charlotte, NC 28209-4637

For this reason we will now have to charge a courier service fee on each shipment.
 

 

January 6, 2006

TO: OUR VALUED CLIENTS

DATE: JANUARY 6, 2006

We have just received the following information from the offices of Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP regarding potential penalties for importers, as well as brokers, with respect to the new MID requirements. I strongly suggest you read through this bulletin and adhere to all the requirements which Customs is setting forth:

I. Potential Penalties for Importers and Brokers as Customs Eliminates Textile Declarations, and Adopts New MID Requirements- On October 5, 2005, Customs and Border Protection published the following interim regulations in the Federal Register:

1. Elimination of Textile Declarations

Effective October 5th, 2005, Customs has eliminated the requirement that a textile declaration be submitted for all importations of textile and apparel products from all countries (including China as well as non-WTO members such as Vietnam). This applies to textile and apparel products classifiable in HTS Chapters 50 through 63 as well as luggage, handbags, hats and certain footwear.

2. Changes to Manufacturer Identification Code (""MID"") Requirements

Also effective October 5, 2005, Customs is now requiring importers of textile and apparel goods to provide an MID code which is derived from the name and address of the entity (i.e., factory) performing the origin-conferring process. Trading companies, sellers other than manufacturers, etc. cannot be used to create MIDs.
This code must be included on Form 3461 (Entry/Immediate Delivery), Form 7501 (Entry Summary), and in all electronic data transmissions that require identification of the manufacturer. In addition, if an entry is filed containing products from more than one manufacturer, the products of each manufacturer must be identified.
Entries and entry summaries in which the first two characters of the MID do not meet the country of origin ISO code, or are created from a company that is known to be a trading house or agent and not a manufacturer, will be rejected for failure to properly construct a MID. Customs advises that repetitive errors in the construction of MIDs for entries of textile or apparel products will result in the assessment of broker and importer penalties for failure to exercise reasonable care.
Importers should re-examine letter of credit and import documentation requirements to insure that the seller is providing the ""origin conferring"" factory name and address for each imported item.

 3. Enforcement

Customs began enforcing these new rules for goods entered on or after November 19, 2005. Customs expects importers and brokers to exercise reasonable care in creating and reporting correct MID numbers on textile entries on the goods described above.
Brokers and importers must be aware of these new rules, and must document their compliance efforts to ensure that correct MID numbers are reported in the entry.
Where incorrect MID numbers are reported, it could place the importer and the broker at risk for penalties. Realistically, MID numbers are made to reflect the information contained in the sellers invoice. Brokers and importers should put their vendors/clients on notice that they should be advised when the shipping invoice does identify the origin conferring location. Importers have an affirmative obligation to contact vendors and identify the company and location where origin is conferred. If operations occur at more than one location they may have to perform a legal analysis to identify the origin conferring location.

Against this background brokers should adopt a system for reviewing commercial documents to identify the actual manufacturer in the documents, and for notifying their importers of goods which have been or currently are subject to quotas. The system should include a notice to each importer which should be retained by the broker. The notice should include the following concepts:

Notice: Reporting MID Numbers

§? Every Customs entry filed in the U.S. requires a manufacturer identification number (MID) to identify the source of the goods.
§? Where the goods are textiles, apparel, or other articles which are now or were previously subject to textile quotas, Customs requires the MID number to reflect the name and location of the manufacturer where the origin of the goods was conferred.
§? Articles subject to current or previous textile restraint are identified by a three digit number in parenthesis after the tariff provisions. These provisions include all textile and apparel provisions, and some textile luggage and footwear provisions)
§? In some cases, these goods could have been manufactured at more than one location. In these cases, the entry must reflect the location where country of origin was conferred.
§? As a general rule, when we prepare your entries, unless the manufacturer is identified in the shipping documents, the MID number will be made to reflect the name and address of the seller of the merchandise.( invoicing letterhead).
§? Where the origin of the goods was conferred from a different company or at a different location, you should make sure that this information is provided to us before entry.
§? While we regret that this places an additional burden on our clients, we cannot develop this information with out your assistance.
§? Finally Customs has announced that the filing of entries with incorrect MID numbers will be considered to be a violation of law, which is punishable by the assessment of substantial civil penalties. Penalties can be a multiple of loss of revenue on a substantial percentage of dutiable value.
§? Please contact the undersigned if you have any questions regarding this notice, and/or when you would like to identify shipments to us where the name and address on the invoice letterhead should not be used as a basis to prepare MID numbers

II. failure to provide non reimbursement certificates on entries subject to antidumping duties ""Add"" are likely to result in double add assessments

When entries are subject to ADD the importer must provide a certificate attesting to the fact that the ADD paid will not be reimbursed by the vendor. Failure to provide this certificate before entries are liquidated will result in double ADD assessments. (There are some variations in the rules based on the date of entry, but this rule applies to all entries filed on or after April 27, 1989).
In the past, Customs has issued CF 28’’s when ADD entries did not include the requisite certificate. This notice provided an opportunity to file missing ADD certificates. Customs has announced that it will discontinue issuing these CF 28’’s, and that protests contesting double ADD assessments will be denied where the add certificate was not on hand at the time of limitation.
It is recommended that brokers identify any unliquidated ADD entries and make sure that ADD certificates are on file. As usual the burden will be on the importer/broker to prove that the certificate was timely filed. If our office can be of any service in preparing your database, setting up systems, or in obtaining printouts of entries for your clients then please contact us."
 

 

November 23, 2005

To Our Valued Clients:

COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS

Release from Embargo of Certain Chinese Textiles and Apparel Goods that were Entered for Warehouse, Sent to General Order, or Admitted to a Foreign Trade Zone, Before November 8, 2005

November 22, 2005

AGENCY: Committee for the Implementation of Textiles Agreements (CITA).

ACTION: Directive to Commissioner, Bureau of Customs and Border Protection.

EFFECTIVE DATE: November 28, 2005.
 

 

November 23, 2005

To Our Valued Clients:


CITA has decided not to implement quotas in response to any pending safeguard petitions, e.g., sleepwear (cat. 351/651), women's' and girls' woven shirts and blouses (cat. 341/641), etc. Accordingly, only those categories covered by the agreement will be subject to quota until such time as new petitions are filed, accepted and result in further requests for consultations. We will continue to monitor developments and advise should any new petitions be filed next year.

FACT SHEET

COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS
ENDS FURTHER CONSIDERATION OF PENDING
REQUESTS FOR SAFEGUARD ACTION ON IMPORTS OF TEXTILES AND APPAREL FROM CHINA
 

 

November 22, 2005

COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS

Release from Embargo of Certain Chinese Textiles and Apparel Goods that were Entered for Warehouse, Sent to General Order, or Admitted to a Foreign Trade Zone, Before November 8, 2005

November 22, 2005

AGENCY: Committee for the Implementation of Textiles Agreements (CITA).

ACTION: Directive to Commissioner, Bureau of Customs and Border Protection.

EFFECTIVE DATE: November 28, 2005.

FOR FURTHER INFORMATION CONTACT: Philip J. Martello, International Trade Specialist, Office of Textiles and Apparel, U.S. Department of Commerce, (202) 482-3400.

SUPPLEMENTARY INFORMATION: Authority: Section 204 of the Agricultural Act of 1956, as amended (7 U.S.C. 1854); Executive Order 11651 of March 3, 1972, as amended. 

 
Pursuant to the Memorandum of Understanding between the Governments of the United States of America and the People's 
Republic of China Concerning Trade in Textile and Apparel Products, signed and dated November 8, 2005 ("Memorandum 
of Understanding"), CITA directs the U.S. Bureau of Customs and Border Protection to allow entry of certain goods 
in embargo. 

In the letter published below, the Chairman of CITA directs the Commissioner, U.S. Customs and Border Protection, 
to allow entry, or withdrawal from warehouse, for consumption, from November 28 through December 2, 2005, of all 
Chinese origin goods that (1) currently are in a bonded warehouse within the customs territory of the United States 
or in a foreign trade zone established under the Foreign Trade Zones Act of 1934, as amended (19 U.S.C. S 81a, 
et seq.); (2) were entered for warehouse or sent to General Order within the customs territory of the United States, 
or admitted to a foreign trade zone established under the Foreign Trade Zones Act of 1934, as amended, before 
November 8, 2005; and (3) were, at the time of export from China, subject to a quantitative restraint for one of 
the categories listed below, due to the application of Paragraph 242 of the Report of the Working Party for the 
Accession of China to the World Trade Organization. 


Category 
Restraint Period 
 

338/339 
May 23, 2005 - December 31, 2005 
 

347/348 
May 23, 2005 - December 31, 2005 
 

352/652 
May 23, 2005 - December 31, 2005 
 

638/639 
May 27, 2005 - December 31, 2005 
 

647/648 
May 27, 2005 - December 31, 2005 
 
 
This release of certain embargoed goods excludes socks in categories 332/432/632part.  See Memorandum of Understanding
footnote 3.  Shipments allowed entry pursuant to the directive below will not be subject to staged entry limits. 

Any other shipments of goods from China subject to the quantitative restraints for the categories and restraint periods
above, or to other quantitative restraints for goods exported from China prior to January 1, 2006, shall remain subject 
to the restraints previously established, and to staged entry procedures as laid out in the directives dated 
April 21, 2005, and November 4, 2005.  This includes socks and other categories not listed above, and any shipment 
exported from China on or after November 8, 2005. Shipments of any Chinese-origin textile or apparel goods exported 
before January 1, 2006 are not subject to the quantitative restraints established in Annex I of the Memorandum of 
Understanding of November 8, 2005.  CITA will publish instructions to the U.S. Customs and Border Protection concerning 
those restraints in a separate notice.  

   
   
James C. Leonard III, 
Chairman, Committee for the Implementation of Textile Agreements. 
 


Committee for the Implementation of Textile Agreements
Commissioner,
Bureau of Customs and Border Protection, Washington, DC  20229.
Dear Commissioner:  Pursuant to the Memorandum of Understanding between the Governments of the United States of America 
and the People's Republic of China, Concerning Trade in Textiles and Apparel Products, dated November 8, 2005, you are 
directed, effective on November 28, 2005, and for the period November 28, 2005 through December 2, 2005, to allow entry, 
or withdrawal from warehouse, for consumption Chinese origin goods that (1) currently are in a bonded warehouse within 
the customs territory of the United States or in a foreign trade zone established under the Foreign Trade Zones Act of 
1934, as amended (19 U.S.C. S 81a, et seq.), and (2) were entered for warehouse or sent to General Order within the 
customs territory of the United States, or admitted to a foreign trade zone established under the Foreign Trade Zones 
Act of 1934, as amended, before November 8, 2005; and (3) were, at the time of export from China, subject to a 
quantitative restraint for one of the categories listed below, due to the application of Paragraph 242 of the Report 
of the Working Party for the Accession of China to the World Trade Organization. 


Category 
Restraint Period 
 

338/339 
May 23, 2005 - December 31, 2005 
 

347/348 
May 23, 2005 - December 31, 2005 
 

352/652 
May 23, 2005 - December 31, 2005 
 

638/639 
May 27, 2005 - December 31, 2005 
 

647/648 
May 27, 2005 - December 31, 2005 
 
 
Shipments allowed entry pursuant to this directive will not be subject to staged entry limits.  Any other shipments of 
goods from China subject to the quantitative restraints for the categories and restraint periods above, or to other 
quantitative restraints for goods exported from China prior to January 1, 2006, shall remain subject to the restraints 
previously established, and to staged entry procedures as laid out in the directives dated April 21, 2005, and 
November 4, 2005. 
 
In carrying out the above direction, the Commissioner should construe the term "customs territory of the United States" 
to include only the States, the District of Columbia and Puerto Rico.  CITA has determined that this action falls 
within the foreign affairs exception of the rulemaking provisions of 5 U.S.C. 553(a)(1).

 
Sincerely, 
   
   
James C. Leonard III, 
Chairman, Committee for the Implementation of Textile Agreements.


 

 

November 17, 2005

To Our Valued Clients:

The attached notices (to be published in the Federal Register) were added to the OTEXA website this morning.

The Committee is extending through November 30, 2005, the period for making a determination on whether to request consultations with China regarding imports of cotton and man-made fiber swimwear (Category 359-S/659-S).

The Committee is extending through November 30, 2005, the period for making a determination on whether to request consultations with China regarding imports of cotton and man-made fiber nightwear (Category 351/651).

The Committee is extending through November 30, 2005, the period for making a determination on whether to request consultations with China regarding imports of women's and girls' cotton and man-made fiber shirts and blouses, not-knit (Category 341/641).

The Committee is extending through November 30, 2005, the period for making a determination on whether to request consultations with China regarding imports of cotton and man-made fiber skirts (Category 342/642).
 

 

November 15, 2005

COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS

Extension of Period of Determination on Request for Textile and Apparel Safeguard Action on Imports