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October 24 2012 Issue

Wednesday, October 24, 2012
Sandler, Travis & Rosenberg Trade Report

Air Cargo Advance Screening Pilot Program Being Expanded

U.S. Customs and Border Protection is expanding its Air Cargo Advance Screening pilot program, a voluntary test in which participants electronically submit certain information for air cargo at the earliest point practicable prior to loading of the cargo onto the aircraft destined to or transiting through the U.S. Applications from those wishing to participate in the ACAS pilot are due no later than Nov. 23. Click here for more information.

According to CBP, the ACAS pilot was launched in December 2010 with four express consignment air courier companies. Since then, three passenger carriers, one all-cargo carrier and one freight forwarder have joined the pilot and become operational, while an additional 12 passenger carriers, two all-cargo carriers and 15 freight forwarders are in the process of testing or development or have actively expressed an interest in becoming participants. CBP is now formalizing and expanding the pilot to include other express couriers, passenger carriers, all-cargo carriers and freight forwarders.

Participants in the ACAS pilot agree to provide a subset of the data elements required under 19 CFR 122.48a, as follows: air waybill number, total quantity based on the smallest external packing unit, total weight, cargo description, shipper name and address, and consignee name and address. These six data elements were chosen because they are available to air carriers and other participants early in the lifecycle of a cargo transaction and allow the ACAS risk assessment and workflow to be completed early enough in the supply chain to enhance security while minimizing disruption to the flow of goods.

ACAS pilot participants must also (1) mitigate, according to Transportation Security Administration screening protocols, any threat identified by the National Targeting Center; (2) respond promptly with complete and accurate information when contacted by the NTC with questions regarding the data submitted; (3) follow any Do Not Load instructions; and (4) partake in regular teleconferences or meetings established by CBP, when necessary, to ensure any issues or challenges regarding the pilot are communicated and addressed. However, CBP does not intend to enforce or levy punitive measures if participants are non-compliant with these conditions.

CBP notes that the pilot program will run for another six months and could be extended again. When sufficient analysis and evaluation of the pilot has been conducted CBP intends to begin the process of developing regulations that will make the advance submission of ACAS data mandatory. The results of the ACAS pilot will help determine the relevant data elements, the timeframe within which data should be submitted to permit CBP to effectively target, identify and mitigate any risk with the least impact practicable on trade operations, and any other related procedures and policies. 

Pilot Program Testing Expedited Movement of Cargo Across U.S.-Canada Border

The Canada Border Services Agency reports that on Oct. 1 the U.S. and Canada launched a one-year pilot program aimed at expediting trade and strengthening cargo security at their shared border. Under this program, U.S. Customs and Border Protection officials will conduct risk assessments for all container cargo arriving at the Canadian port of Prince Rupert by ship from abroad and destined for the U.S. by rail. Any high-risk shipments identified by CBP will then be inspected by the CBSA. The two sides will share exam results, images and other information in real time and any security concerns will be dealt with in Canada. Once a container is cleared it will be secured with a high-security bolt seal and allowed to cross into the U.S. without additional screening.

The CBSA states that this is the first of a number of pilot programs that will be undertaken by Canada and the U.S. to shape and inform the implementation of the Integrated Cargo Security Strategy, which is part of the Beyond the Border Action Plan announced in December 2011. That plan indicated that a similar pilot program would be established for marine cargo arriving at Montreal and destined to the U.S. by truck. The U.S., in turn, pledged to conduct a pilot involving the targeting and risk assessment of cargo arriving from offshore at a major U.S. port destined for Canada as well as the testing of a new in-bond module for processing in-transit/in-bond (Canada–United States–Canada) cargo traveling by truck. 

In the News: Protectionism on the Rise, Japan to Relax Beef Import Rules

Major trade powers using stealth protectionism: study

Japan to ease age restrictions on U.S. beef imports

AD Notices: Shrimp, Ammonium Nitrate

Agency: International Trade Administration.
Commodity: Frozen warmwater shrimp.
Country: India.
Nature of Notice: Initiation and preliminary results of changed circumstances review of antidumping duty order.
Details: Apex Frozen is the successor-in-interest to Apex Exports and should receive the same AD cash deposit rate of 2.51%.

Agency: International Trade Commission.
Commodity: Ammonium nitrate.
Country: Ukraine.
Nature of Notice: Determination to conduct full sunset review of antidumping duty order.
Details: Hearing will be held March 28, 2013, pre-hearing briefs due by March 15, post-hearing briefs due by April 8, final comments due by May 6. 

IPR Enforcement Actions on Computer Chips, Lighting Control Devices

New IPR Infringement Investigation of Integrated Circuit Chips. The International Trade Commission has instituted investigation 337-TA-859 to determine whether imports of certain integrated circuit chips and products containing the same are violating Section 337 of the 1930 Tariff Act by reason of patent infringement. The products at issue are generally integrated circuit chips contained in hard disk drives, solid state drives, high-speed communications systems and interfaces, computer servers, data storage systems, controller boards and personal computers.

The complainant, Realtek Semiconductor Corporation, requests that after this investigation the ITC issue an exclusion order, which would direct U.S. Customs and Border Protection to prohibit the entry of the infringing products into the U.S., and cease and desist orders, which would require the named respondents to cease actions that violate Section 337, including selling infringing imported articles out of U.S. inventory. The respondents in this investigation are located in California.

New Import Restrictions on Lighting Control Devices. In patent infringement investigation 337-TA-776, the International Trade Commission has issued a general exclusion order prohibiting the unlicensed entry of lighting control devices, including dimmer switches, and parts thereof that infringe one or more of specified claims of a patent owned by Lutron Electronics Co. Inc. The ITC has also issued cease and desist orders prohibiting four respondents from conducting any of the following activities in the U.S.: importing, selling, marketing, advertising, distributing, offering for sale, transferring (except for exportation) and soliciting U.S. agents or distributors for lighting control devices that infringe one or more of specified claims of the patent at issue. Finally, the ITC has determined that there will be a bond in the amount of 100% of the entered value of the covered products to permit temporary importation of the subject goods during the 60-day period the president has to review this matter. 

Ocean Transportation Intermediary License Revocations, Reissuances, Applicants

OTI Licenses Revoked. The Federal Maritime Commission has given notice that the following ocean transportation intermediary licenses have been revoked. A revocation may occur after a license is surrendered voluntarily by the OTI or for failure to maintain a valid bond.

- license #3184F: Alliance International Forwarders Inc., Houston, Texas
- license #003977F: A Active Freezone Cargo Inc., Miami, Fla.
- license #4571F: Logistics Inc., Baltimore, Md.
- license #011737N: All Nat Inc., Grand Prairie, Texas
- license #12079N: LTS Shipping Corp., Houston, Texas
- license #015342F: Harold Kass-World Wide Moving Inc. d/b/a HK Worldwide Moving Inc., Chicago, Ill.
- license #016012F: Samari Global Trade Inc., Bronx, N.Y.
- license #017864F: Navivan Corp., Kenner, La.
- license #017881N: Seair International Inc., Jamaica, N.Y.
- license #018156F: Cargo Alliance Inc., Monterey Park, Calif.
- license #018841N: Canaan Int’l Freight Inc., Jamaica, N.Y.
- license #019327N: David A. Knott d/b/a Dak Logistics Services, Suisun City, Calif.
- license #020151NF: United Global Logistics LLC., Elizabeth, N.J.
- license #020872N: Smart Freight Corp., Valley Stream, N.Y.
- license #020991N: Cargo Alliance Logistics Inc. d/b/a Change Group Logistics, New York, N.Y.
- license #021098F: MG Forwarding LLC., Miami, Fla.
- license #021953F: Express Shipping Company of Illinois, Arlington Heights, Ill.
- license #022119F: Rom Enterprise, Inc. d/b/a Monark Worldwide, Canoga Park, Calif.
- license #022878F: A-1 Fargo Van and Storage Inc., Miami, Fla.
- license #023316N: Morgan USA Logistics Inc., Jamaica, N.Y.
- license #023320N: Translink International Inc., Richmond Hill, Ga.
- license #022384NF: Seacrest Logistics Inc., Houston, Texas
- license #023500F: IMAC International Corp., East Meadow, N.Y.

OTI Licenses Reissued. The Federal Maritime Commission has given notice that the following ocean transportation intermediary licenses have been reissued.

- license #003977N: A Active Freezone Cargo Inc., Miami, Fla.
- license #017864N: Navivan Corp., Kenner, La.
- license #020088N: Hal-Mari International Logistics Inc., Houston, Texas
- license #018156N: Cargo Alliance Inc., Monterey Park, Calif.
- license #019372F: Hal-Mari International Logistics Inc., Houston, Texas
- license #023500N: IMAC International Corp., East Meadow, N.Y.

OTI License Applicants. The Federal Maritime Commission has provided notice that the following applicants have filed applications for licenses as non-vessel-operating common carrier and/or ocean freight forwarder ocean transportation intermediaries. Persons knowing of any reason why any of these applicants should not receive a license are requested to contact the FMC.

- Aboard Cargo Service Inc., Doral, Fla.
- Caribbean Forwarding LLC, Doral, Fla.
- Direct Parcel Service Corp. d/b/a DPS Cargo, Doral, Fla.
- Dongbu Express U.S.A. Inc., Torrance, Calif.
- E.T.H. Cargo Services Inc., Carolina, P.R.
- Greymar International Freight LLC, Miami, Fla.
- Hospitality Logistics International LLC, Charlotte, N.C.
- KCE Logistics Inc., Miami, Fla.
- Latin Gate OTI Inc., Miami, Fla.
- Mainfreight Inc., Carson, Calif.
- ODS - Orient Shipping & Logistics LLC, Doral, Fla.
- Premier Van Lines International Inc., Mesa, Ariz.
- Ryder Global Services LLC, Miami, Fla.
- Victoria Line LLC, Miami, Fla.
- World Cargo Logistics Limited Liability Company, Belleville, N.J. 

Philadelphia Area Foreign-Trade Zone Seeks to Expand

The Foreign-Trade Zones Board is accepting comments through Dec. 24 comments on an application from the Philadelphia Regional Port Authority, grantee of FTZ 35, requesting authority to reorganize and expand this zone under the alternative site framework. The proposed service area under the ASF would be Philadelphia, Delaware, Bucks, Montgomery, Chester, Lancaster and Berks counties in Pennsylvania, within and adjacent to the Philadelphia U.S. Customs and Border Protection port of entry. If this application is approved, the grantee would be able to serve sites throughout this area based on companies’ needs for FTZ designation. 

DOT Notes Hazmat Special Permit Applications, Decisions, Delays in Processing

The Department of Transportation’s Pipeline and Hazardous Materials Safety Administration has issued the following concerning exceptions from the Hazardous Materials Regulations.

- a list of applications for special permits for exceptions from the HMR, including for motor vehicles, rail freight, cargo vessels, cargo aircraft and passenger-carrying aircraft (comments due no later than Nov. 23)

- a list of applications to modify previously issued special permits; e.g., to provide for additional hazardous materials, packaging design changes, additional mode of transportation, etc. (comments due no later than Nov. 7)

- a list of actions taken on special permit applications, including modified, new and emergency permits granted or withdrawn and permits denied

- a list of special permit applications that have been in process for 180 days or more, including the reason(s) for delay and the expected completion date 

Foreign Regulatory Changes Could Affect Exports of Foods, Electronics, Appliances, Autos

According to the National Institute of Standards and Technology, the World Trade Organization has been notified of regulatory changes that may affect exports of specific products to the following countries. For information on how these restrictions may affect your business, contact ST&R.

Chile – draft new technical standard on good manufacturing practices in pharmaceutical industry (comments due by Dec. 10)

Ecuador – draft technical regulation on milk and milk products (comments due by Jan. 2, 2013)

India – electronics and information technology goods (comments due by Dec. 19)

Indonesia – decree on converter kit components for road vehicles, air conditioners, refrigerators and washing machines (comments due by Dec. 22)

Korea – proposed amendment to standards and specifications for electrical mechanical safety of medical devices (comments due by Dec. 19)

Kuwait – draft technical regulations on breast milk substitutes and low sodium iodized food salt (comments due by Dec. 19)

Mexico – amended official standard on room heaters (effective Dec. 3)

Norway – draft of new provisions on tobacco products (comments due by Nov. 30)

Thailand – ban on imports of used car bodies and used motorcycle frames (comments due by Dec. 19) 

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