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    ISSUE #127 - 8/13/10
All prior Issues of The C-Air Times can  be found at the end this current Issue in the Newsletter Section of our website:
   www.c-air.com   
 
IN THIS ISSUE  :   
  
 “Time is too slow for those who wait, too swift for those who fear, too long for those who grieve, too short for those who rejoice, but for those who love, time is eternity.” 
                             ~ Henry Van Dyke
 
 
Guidance Regarding Import Prohibitions Imposed by the Comprehensive Iran Sanctions, Accountability, and Divest-ment Act of 2010 - OFAC

On July 1, 2010, the President signed into law the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (the "Act"), which, among other things, prohibits the importation of Iranian-origin goods and services into the United States, effective 90 days after the Act’s date of enactment. No exception to this prohibition may be made for the commercial importation of Iranian-origin goods described in section 560.534(a) of the Iranian Transactions Regulations (31 C.F.R. Part 560). The Office of Foreign Assets Control cannot authorize by general or specific license the commercial importation of such Iranian-origin goods (which include certain foodstuffs and carpets) on or after September 29, 2010. Consequently, the general license in section 560.534 of the ITR will be eliminated by September 29, 2010, and any such goods for commercial importation into the United States must be entered for consumption before that date.  
 
 
 
 
 

President Obama signed into law Aug. 11 the Manufacturing Enhancement Act of 2010, otherwise known as the miscellaneous trade bill (H.R. 4380). The president touted the MTB as part of his effort to double U.S. exports within five years, an initiative that some observers said could now be further advanced by implementing pending free trade agreements with Colombia, Panama and Korea.

The MTB extends through Dec. 31, 2012, retroactive to Jan. 1, 2010, hundreds of duty suspensions and reductions on imported manufacturing inputs and other goods that expired Dec. 31, 2009. Importers of goods that lost their duty-free status when the last MTB expired now have 180 days to file for a refund of all duties paid on such imports since Jan. 1. Such refunds are available even if an entry has been liquidated for more than 180 days. 
 

The MTB also includes new duty breaks for various products that will take effect Aug. 26. In addition, congressional staff are working to have a second MTB later this year that would include even more new tariff suspensions.

In remarks prior to signing the bill the president asserted that the MTB will contribute to his goal of doubling U.S. exports in order to increase domestic employment. Specifically, he said, the MTB “will make it cheaper and easier for American manufacturers and American workers to do what they do best: build great products and sell them around the world.” He explained that the bill will reduce or eliminate tariffs on materials that manufacturers have to import from other countries, which in turn “will significantly lower costs for American companies across the manufacturing landscape – from cars to chemicals; medical devices to sporting goods.” As some observers have pointed out, this is one of the few times the president or a member of his administration has spoken about the positive role of imports in economic recovery efforts.

Some lawmakers and business groups used the signing of the MTB to call on the president to take additional actions to increase exports. The National Association of Manufacturers pointed out that the MTB “does not address the lowering of trade barriers to U.S. exports shipped to foreign markets,” where the U.S. is competing with others for 95% of the world’s consumers. NAM, along with Sen. Charles Grassley, R-Iowa, and House Minority Leader John Boehner, R-Ohio, therefore called on the administration to enact agreements that will address these barriers, including the pending FTAs with Colombia, Panama and Korea and the Trans-Pacific Partnership Agreement currently under negotiation.
 
 
    
 

The Import Security Filing Subcommittee of the Advisory Committee on Commercial Operations of U.S. Customs and Border Protection (COAC) recommended at the Aug. 4 COAC meeting in Detroit that CBP provide the following benefits to importers that are highly compliant with ISF requirements.

• For importers who are certified Customs-Trade Partnership Against Terrorism members, high compliance with ISF requirements should be deemed a best practice and considered with respect to elevating the importer’s C-TPAT status to the Tier 3 level.

• In cases where stratified compliance exams are undertaken by CBP (where multiple shipments are under one bill of lading) and the importer is a C-TPAT member, CBP should allow sealed containers not being examined to not only move to destination but to be released by CBP.

• CBP should also consider the option of releasing for distribution other bills of lading on the same entry (where the importer is a C-TPAT member). As with the above recommendation, the released containers in question would be those not designated for exam. To address potential CBP concerns, this benefit would not include containers stuffed by the same party that stuffed the container(s) designated for exam.

• For small and medium-size importers that are highly compliant, CBP should consider a streamlined process for application to C-TPAT.

• In the case of unified ISF filings, conditional release in the system at time of vessel departure should be provided.

• Consideration of mitigation for other penalties (outside those associated with ISF compliance) should be given for highly compliant importers.

• For continuous, highly compliant importers, there may be a situation where CBP identifies a problem that is very low frequency (e.g., one out of a thousand). CBP should take this into consideration with respect to penalties.

The subcommittee also included information on the collateral benefits of ISF that have been identified by highly compliant importers. One such benefit is that importers have better visibility into their global supply chains since they now have a CBP process at origin. Companies can identify non-standard shipments earlier in the process, allowing them more time to address the issue prior to arrival and potential delay. In addition, because importers provide data earlier, there are fewer delays at destination. Working through the ISF requirements has also highlighted that import compliance teams need to be folded into the procurement process earlier. Finally, importers have become more engaged with parties not typically communicated with in the past, which provides more visibility and improvement in data availability and accuracy.
 
 
 

The Treasury Department’s Office of Foreign Assets Control has published the names of 21 entities it has determined to be the “government of Iran,” as that term is defined in the Iranian Transactions Regulations.

The ITR, in implementing executive orders imposing comprehensive trade and financial sanctions on Iran, prohibit various transactions, including those with the government of Iran. As defined in the ITR, that term includes (a) the state and the government of Iran, as well as any political subdivision, agency or instrumentality thereof, (b) any entity owned or controlled directly or indirectly by the foregoing, and (c) any person to the extent that such person is or has been, or to the extent that there is reasonable cause to believe that such person is or has been, acting or purporting to act directly or indirectly on behalf of any of the foregoing. OFAC is now publishing the names of 21 additional persons it has determined to fall within this definition, and the names of these persons will be added to Appendix A to Part 560 of the ITR at a later date.

OFAC emphasizes, however, that Appendix A is not a comprehensive list of persons falling within the definition of “government of Iran.” Even if a person is not listed in Appendix A or has not otherwise been specifically determined by OFAC to be the government of Iran, if the person satisfies the definition of the term, U.S. persons and others engaging in transactions subject to the ITR are prohibited from engaging in transactions with that person, regardless of its location, to the same extent they are prohibited from engaging in transactions with other restricted persons. U.S. persons and others engaging in transactions subject to the ITR are also prohibited from engaging in most transactions with any person located in Iran, even if that person does not come within the definition of the term “government of Iran.” Finally, a person listed in Appendix A or otherwise specifically determined to be the government of Iran may also be subject to other sanctions programs administered by OFAC, in which case that person’s name would also appear in the list at Appendix A to 31 CFR chapter V or on OFAC’s Specially Designated Nationals and Blocked Persons List.
 
 
 
Maritime Cargo Security Bill - AAEI (American Association of Exporters and Importers) 

Senate Commerce, Science and Transportation Committee Chairman Jay Rockefeller (D-WV) and Ranking Member Kay Bailey Hutchison (RTX) on July 22 introduced the “Maritime Transportation Security Act” (S.3639). The legislation addresses some aspects of the Security and Accountability for Every (SAFE) Port Act (P.L.109-347).

The bill would focus maritime security sources more directly on global supply-chain security, develops protocols for transportation of especially hazardous cargo, and clarifies other maritime security concerns. Among the bill’s important provisions is a directive moving back from 2012 until 2015 the deadline for 100 percent scanning of U.S.-bound cargo containers.

Title II of the bill deals with the transportation of especially hazardous cargo. It authorizes the Secretary of Transportation “to initiate a work item within the International Maritime Organization that addresses the safe and secure transportation of especially hazardous cargoes.”

Title III authorizes certain kinds of assistance that can be extended to foreign ports to help bring them into compliance with port security protocols and outlines a security strategic plan for such ports. Title IV addresses intermodal supply chain security.

A committee summary describes the provisions in the following terms: 

Section 401. Single Electronic Window for Filing Vessel, Crew and Passenger Information Section 401 would require the Coast Guard and the U.S. Customs and Border Protection (CBP) to establish a DHS single electronic window for collecting advance information on vessels, crew and passengers, and replace outdated paper forms.

Section 402. Maritime and Cargo Security Integrated Project Teams Section 402 would direct the Secretary of DHS to establish integrated project teams within the Science and Technology Directorate to assist in product research, development, transition and acquisition activities for DHS port security initiatives.

Section 403. Risk Based Alignment of Maritime Security Scanning Requirements This section would extend the timeframe for full-scale implementation of the 100 percent scanning requirements for cargo as iterated in Chapter 982 of title 6, United States Code. 
 
The bill has been referred to the cosponsors’ committee. As of this report, no further action has been announced.
The Commercial Operations Advisory Committee (COAC) strongly supports the bill’s proposal to delay until 2015 the mandate for 100 percent scanning of maritime cargo containers bound for U.S. ports
 
 
 

Adjacent Mumbai Port considers reopening after meeting Thursday 

India's biggest container port resumed partial operations on Thursday, ending the shutdown caused by the collision of two ships in its main channel last Saturday.

The Jawaharlal Nehru Port let one ship through Thursday morning and will allow vessels with a draft of up to 30 feet to move during high tide, Chief Manager S.N. Maharana told Bloomberg News.

The adjacent Mumbai Port is also considering opening its channel after a meeting Thursday, said Rahul Asthana, chairman of the Mumbai Port Trust. Mumbai harbor has been closed for traffic after the collision of the container vessel MSC Chitra and the break-bulk vessel Khalizia-3, since the weekend.

Salvagers are continuing to remove some of the 300 containers that spilled from Mediterranean Shipping Co.'s MSC Chitra and made the sea unsafe for passage, said Asthana.

The shutdown of the two ports stranded about $4 billion worth of exports aboard some 32 ships in the two harbors. Another 80 vessels that were waiting at sea on Monday to enter the harbor have largely been diverted to other ports.

The closure of the two ports, which handle about 40 percent of India's trade, hampered deliveries of oil, grains and other commodities in a country that depends on harbors for 90 percent of overseas trade.

State-owned rail operator Container Corporation of India announced the launch of train services between the ports of Jawaharlal Nehru (Nhava Sheva), Mundra and Pipavav. Concor also said it will operate additional services to reroute Nehru-bound export containers, which have been booked from its northern inland container depots at Tughlakabad and Dadri, near Delhi, as well as at Jaipur and Ahmedabad, to Mundra and Pipavav.

"We are not equipped to deal with these kinds of situations," said A. Sakthivel, president of the Federation of Indian Exports Organizations, which gave the $4 billion estimate. "We have asked the government to get help from foreign experts."

An Indian navy vessel will escort ships as they transit the passage to Jawaharlal Nehru port. Ships will be allowed to move at a restricted speed of up to four nautical miles an hour, he said. Mumbai Port will likely be restricted to smaller ships if it opens.
 
India's government has told salvagers to accelerate their work with the aim of clearing the containers by Aug. 14.
 
The Chitra had 1,219 containers on board, of which 31 held hazardous chemicals and pesticides, according to Satish Agnihotri, India's director general for shipping.  

 
 
Schumer Introduces Legislation to Protect Fashion Design - American Apparel & Footwear Association 

Washington, DC – Following a year of detailed negotiations with fashion industry stakeholders, Senator Charles Schumer (D-NY) today introduced the Innovative Design Protection and Piracy Prevention Act (S. 3728), a realistic and practical approach that will offer intellectual property protection to unique and original fashion designs.

Supported by the American Apparel & Footwear Association (AAFA) and the Council of Fashion Designers of America (CFDA), this legislation will for the first time allow creative American designers to benefit from legal protections and at the same time continue to ensure the competitiveness of the U.S. apparel and footwear industry as it delivers fashionable and affordable clothing to consumers.

"After a year of negotiations, I am pleased we were able to find agreement on the issue of fashion design piracy," said AAFA President and CEO Kevin M. Burke. "The AAFA would like to extend gratitude to Senator Schumer for his diligent work bringing all the stakeholders to the table to reach a practical solution. As we move forward, AAFA will continue to seek the strongest trademark and copyright protections for the U.S. apparel and footwear industry competing in the global market for the benefit of their brand reputations, employees, and consumers."
 
"When the CFDA originally launched the campaign to bring intellectual property protection to fashion design, our goal was to give a new generation of American designers the recognition and support they need to grow their businesses into household names" said CFDA Executive Director Steven Kolb. "We have worked closely, under the leadership of Senator Schumer, with the AAFA and the industry to create a law that will provide long overdue protection our industry deserves. America is the world fashion leader, and yet it is basically the only industrialized country that does not provide protection for fashion design. This bill is good news in that it promotes creativity and thus strengthens the fashion industry’s significant contribution to a healthy and working economy."
 
The U.S. fashion industry’s competitiveness in the global marketplace rests on its ability to be creative and innovative while delivering quality products to market. Fashion design has remained until now an industry with limited options for intellectual property protection for even the most unique designs.
 
The new bill will provide a short, three-year term of protection to new and original fashion designs, while leaving every design ever created prior to enactment of the bill in the public domain. Only deliberate copies that are substantially identical to protected designs will be prohibited by law, and neither consumers nor retailers will be liable for inadvertently buying or selling illegal copies. There is also an exception for home sewers who will be permitted to copy a protected design for personal use or the use of a family member.
 
In addition to its clear, specific, and narrowly tailored scope of protection, the Innovative Design Protection and Piracy Prevention Act includes procedural provisions that will discourage frivolous litigation. In particular, the plaintiff will have to plead specific facts establishing that he has a case. If a dispute does arise, a defendant will be entitled to show that the design in question was created separately and independently from the protected design or that it was copied from a design already in the public domain.

Senator Schumer, the AAFA, and the CFDA are confident that this legislation will bolster the American fashion industry by encouraging creativity, protecting innovation and enhancing the status of the designer.  

Background

American Apparel & Footwear Association
 
Council of Fashion Designers of America
The Council of Fashion Designers of America, Inc, (CFDA) is a not-for-profit trade association that leads industry-wide initiatives and whose membership consists of more than 370 of America’s foremost womenswear, menswear, jewelry, and accessory designers. In addition to hosting the annual CFDA Fashion Awards, which recognize the top creative talent in the industry, the organization offers programs which support professional development and scholarships, including the CFDA/Vogue Fashion Fund, the Geoffrey Beene Design Scholar Award, the Liz Claiborne Scholarship Award, and the CFDA/Teen Vogue Scholarship. Member support is provided through the Business Services Network, a high-profile group of companies offering designers strategic opportunities. The CFDA Foundation, Inc. is a separate, not-for-profit organized to mobilize the membership to raise funds for charitable causes. Through the Foundation, the CFDA created and manages Fashion Targets Breast Cancer; raises funds for HIV/AIDS organizations with 7th on Sale; addresses the issue of model health with The CFDA Health Initiative; and is a key participant in other programs such as the annual Fashion’s Night Out. For more information, please visit www.CFDA.com.
 
 
 

SUMMARY AS OF: 7/28/2010--Passed House amended.   

Truth in Fur Labeling Act of 2010 - Amends the Fur Products Labeling Act to eliminate the exemption to fur labeling requirements for products containing relatively small amounts of fur.

Exempts from such Act a fur product: (1) the fur of which was obtained from an animal through trapping or hunting; and (2) that is sold by the hunter or trapper in a face to face transaction at a place such as a residence, craft fair, or other location used on a temporary or short term basis where the revenue from the sale is not such person's primary income source.

Directs the Federal Trade Commission (FTC) to publish in the Federal Register notice of, and an opportunity to comment on, a review of the Fur Products Name Guide.

States that budgetary effects of this Act for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010 shall be determined by reference to the latest statement titled "Budgetary Effects of PAYGO Legislation" for this Act submitted for printing in the Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior to the vote on passage.
 
 
 

Legislation would give more authority to investigators

A Senate bill filed Thursday would give the Commerce Department and Customs and Border Protection more authority to investigate importers thought to evade antidumping and countervailing duty orders.

The Enforcing Orders and Reducing Circumvention and Evasion (ENFORCE) Act, sponsored by senators Ron Wyden, D-Ore., and Olympia Snowe, R-Maine, would give Customs and Commerce the authority to investigate whether importers are evading penalties on direct imports when they transship products subject to antidumping orders from the country of origin through an intermediary country through to the United States.

The bill would also authorize greater information sharing between the two agencies.

According to attorney Fred Waite, who represents U.S. companies that file antidumping complaints, the bill would broaden Commerce’s authority to investigate in evasion or transshipment cases.

The bill also would require that Customs and Commerce determine within 60 days that there was a case to be made against an importer for antidumping violations. The importer would be required to pay penalties in cash until the investigation was completed. Waite said that antidumping investigations can take years.

 

U.S. Importer of Chinese-made Garment Hangers Arrested and Charged with Fraud, Smuggling and Money Laundering Related to Evasion of Antidumping Duties - USC / PR Newswire


Members of the Coalition for Enforcement of Antidumping and Countervailing Duty Orders, including the U.S. wire garment hangers industry,  have been working closely with U.S. Customs and Border Protection (CBP) and U.S. Immigration and Customs Enforcement (ICE) to identify instances of illegal evasion of U.S. trade laws.  Today, the Coalition is able to announce that an importer of steel wire garment hangers has been arrested and charged with fraud, smuggling, and money laundering in connection with bringing Chinese-made hangers into the United States via a third country and then falsely claiming a country of origin other than China. Conviction of these felonies carries a maximum term of imprisonment between five and 20 years per count, plus substantial monetary fines and the payment of applicable dumping duties. 

Each member of the Coalition successfully petitioned the U.S. Government for relief from unfairly traded imports and received antidumping and/or countervailing duty orders.  However, schemes to avoid the application of these orders, including instances of misclassification, mislabeling, and transshipment of the products covered by these orders, began to surface soon after the orders were put in place.  For example, the Coalition believes that a substantial portion of the hangers imported into the United States today are Chinese hangers that have been transshipped through third countries, such as Vietnam, Taiwan, and Korea, in violation of the dumping order against China. 

Other members of the Coalition have uncovered similar evidence of instances where products manufactured in a country under order have been transported to a third country where the products are repacked or relabeled and then shipped to the United States as products of the third country.  Another common evasion scheme involves subjecting the goods to minor or insignificant alterations or assembly operations in third countries.  These goods are then falsely identified as a product of the third country in blatant circumvention of the dumping order.  All of these activities violate U.S. law, and complicit importers – like the one mentioned above – can face felony charges with significant fines, duties, and prison sentences.

These evasion schemes deprive U.S. companies of the remedies proscribed by law and result in reduced sales and lost jobs for American workers.  Further, there is growing evidence that these illegal schemes are being used against other U.S. industries, further threatening jobs and the U.S. economy.  The Coalition intends to continue documenting instances of violations of the U.S. trade laws and providing this evidence to CBP and ICE for similar enforcement actions.

The following companies are members of the Coalition: M&B Metal Products (Leeds, Alabama), Vulcan Threaded Products (Pelham, Alabama), Leggett & Platt, Incorporated (Carthage, Missouri), Mid Continent Nail (Poplar Bluff, Missouri), American Spring Wire Company (Bedford Heights, Ohio) Insteel Industries (Mt. Airy, North Carolina), John Maneely Company (Beachwood, Ohio), Geo Specialty Chemicals (Lafayette, Indiana), and SSW Holding Company (Elizabethtown, Kentucky).  They are American manufacturers of steel wire garment hangers, steel threaded rod, uncovered innerspring units, nails, prestressed concrete steel wire strand, circular welded carbon quality steel line pipe, glycine, and kitchen appliance shelving and racks.  All of these products are subject to antidumping and/or countervailing duty orders.

 


  
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Newsletter Archive:



C-Air Times Newsletter #130 - 9/03/10

C-Air Times Newsletter #129 - 8/27/10

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C-Air Special Edition 10+2 Announcement 11/10/08

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