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Volume 17, Issue 40
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Thursday, February 25, 2010
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Senators Disagree on Efforts to Increase Exports
At a Feb. 23 Senate Finance Committee hearing on trade and tax issues relating to small business job creation, the committee’s senior leaders differed somewhat on how best to achieve President Obama’s goal of increasing exports in order to boost domestic employment. Committee Chairman Max Baucus highlighted the administration’s plan to facilitate exports by small and medium-sized enterprises, but Ranking Member Charles Grassley said this effort should be broader in scope.
In his opening statement, Baucus emphasized that “within the private sector, small businesses are the principle [sic] engine of job creation,” having generated two-thirds of new jobs over the past 15 years. He noted that many federal agencies already conduct programs proven to help small businesses “navigate the confusing and costly road to exporting” and that lawmakers “must ensure that these agencies have the resources that they need to boost American exports and to create American jobs.” In doing so, Baucus said, Congress must develop policies that “provide immediate relief,” are “fiscally responsible” and “create the most jobs at the least cost to the taxpayer.”
James Sanford, newly-designated assistant U.S. trade representative for small business, market access and industrial competitiveness, echoed Baucus’ remarks. “Small businesses that export tend to grow even faster, create more jobs, and pay higher wages than small businesses that do not,” Sanford said. As a result, the Obama administration’s objective is “to both increase the number of small and medium-sized businesses that export and to expand the number of markets and customers served by the SMEs that do export.” To this end, USTR:
• is working to reduce trade obstacles such as unnecessarily complex and/or costly foreign standards and regulations, a lack of transparency in some markets and burdensome customs procedures;
• will, as part of the negotiations on the Trans-Pacific Partnership agreement, have a point person for SME issues and consistently emphasize the needs of smaller businesses alongside traditional negotiation topics;
• is seeking to establish working groups to facilitate expanded SME trade opportunities with existing free trade agreement partners; and
• will look to use the fact-finding and consultation mechanisms built into bilateral and regional FTAs to help SMEs increase trade opportunities and confront trade barriers.
Sen. Grassley, however, said he was “skeptical of forced distinctions among the beneficiaries of trade.” While SMEs may have specific resource constraints to contend with in seeking export sales, he said, no U.S. business will be internationally competitive in the face of tariff and non-tariff barriers to U.S. exports. Reducing and eliminating such barriers should therefore be “our top priority,” and “the most effective and proven means” of doing this “is through the negotiation and implementation of trade liberalizing agreements among nations.”
In this context, Grassley criticized the Obama administration and Democratic congressional leaders for being “unwilling” to advance the pending FTAs with Colombia, Panama and South Korea. Sanford responded that the administration is continuing to work to address outstanding concerns regarding these FTAs, noting that they “offer valuable export promotion opportunities for SMEs” and that their approval and implementation “is an important priority in the Administration’s export promotion agenda.”
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Report Praises CBP for Management and Oversight of Container Security Initiative
The Department of Homeland Security’s Office of Inspector General has issued a report on U.S. Customs and Border Protection’s management and oversight of the Container Security Initiative. The report finds that CBP uses proactive management and oversight processes through CSI to identify and inspect high-risk cargo at foreign ports, conducts periodic evaluations of overseas CSI operations and has software tools to help managers monitor port activities. However, the report calls on CBP to improve its local port standard operating procedures and the criteria used to evaluate them, consider how CSI integrates with other international maritime cargo security programs, and amend its strategic plan to include updated CSI performance measures and a vision for the future direction of the program.
Under CSI, CBP officers and their foreign counterparts use risk-based analysis to screen maritime cargo for weapons of mass destruction before the cargo is laden on vessels destined for the U.S. In 2009, there were 53 CSI-operational seaports in the Americas, the Caribbean, Europe, Africa, the Middle East and Asia.
The report notes that in 2007 CBP established the Evaluations and Assessments Branch to conduct periodic reviews of CSI ports, determine the effectiveness of the program and ensure effective coordination with foreign host governments. Evaluation teams review CSI targeting, case development, examination and administrative activities at these ports at least every two years and submit reports with findings and recommendations.
Part of EAB’s port evaluation process confirms the existence of local SOPs but does not ensure that minimum essential information about CSI operations is included. For example, 31 of the local SOPs reviewed did not contain specific information on how to refer high-risk shipments for host country officials to review and 18 did not contain information on how to conduct further research with host country counterparts. OIG therefore recommended that CBP identify minimum essential elements for inclusion in every local port SOP and establish a process to ensure that all local port SOPs include these elements. CBP concurred, stating that it plans to outline these elements in the CSI SOP and that all CSI ports will be required to update their local SOPs with these requirements by March 1.
The report also stated that the CSI strategic plan needs to be updated to include (a) the current strategic outlook of the CSI program, (b) refined relevant goals and performance metrics to help guide and inform CSI’s future direction, and (c) the impact of other CBP programs, such as the Secure Freight Initiative, and factors that may affect CSI’s goals and objectives. CBP agreed and said it plans to incorporate these recommendations into the 2011-2016 strategic plan it is developing for its Office of Field Operations.
Source Document 1...
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House Bill Seeks to Expand Agricultural Exports to Cuba
House Agriculture Committee Chairman Collin Peterson, D-Minn., introduced Feb. 23 legislation to expand U.S. agriculture exports to Cuba. H.R. 4645, the Travel Restriction Reform and Export Enhancement Act, is also being co-sponsored by 30 other members of Congress.
According to a press release, this bill would:
• eliminate the need to go through banks in other countries to conduct agricultural sales to Cuba as well as the accompanying fees those banks charge;
• require agricultural exports to Cuba to meet the same payment requirements as exports to other countries; i.e., payment would be required when the title of the shipment changes hands, not in advance; and
• allow U.S. citizens to travel to Cuba, “reducing the bureaucratic red tape currently required for individuals to travel to Cuba to facilitate new agriculture sales.”
Last fall, the Treasury Department’s Office of Foreign Assets Control revised its Cuban sanctions regulations to add a general license allowing employees of producers or distributors of medical or agricultural products (including food) to travel to Cuba to engage in the marketing, sales negotiation, accompanied delivery or servicing in Cuba of agricultural commodities, medicine or medical devices.
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EU Proposes to Extend Trade Preferences for Western Balkans
The European Commission is proposing to extend until 2015 the duty- and quota-free treatment extended to virtually all products originating in the Western Balkan countries of Albania, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Montenegro and Serbia. These preferences were originally granted in 2000 and are currently slated to expire at the end of 2010. “These trade preferences support economic integration with the [European Union],” an EC statement said, “and hence foster political stability and economic progress in the entire region.”
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AD/CV Notices: Steel Wire Rod, Copper Pipe and Tube, Steel Grating, Hand Trucks
Following are summaries of current antidumping and countervailing actions taken by the International Trade Administration or the International Trade Commission.
Agency: ITA.
Commodity: Carbon and certain alloy steel wire rod, classifiable under HTSUS 7213 and 7227.
Country: Trinidad and Tobago.
Nature of Notice: Final results of administrative review of AD duty order, effective Feb. 25.
Agency: ITA.
Commodity: Seamless refined copper pipe and tube.
Country: China and Mexico.
Nature of Notice: Postponement of preliminary AD duty determinations, effective Feb. 25.
Agency: ITC.
Commodity: Steel grating, classifiable under HTSUS 7308.90.70.
Country: China.
Nature of Notice: Scheduling of final phase of AD and CV injury investigations, effective Jan. 6.
Agency: ITC.
Commodity: Hand trucks and certain parts thereof.
Country: China.
Nature of Notice: Scheduling of expedited sunset review of AD duty order, effective Feb. 5.
Source Document 1...
Source Document 2...
Source Document 3...
Source Document 4...
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DOC: Applications for Two New FTZ Subzones; Foreign Regulatory Changes
Applications for New Subzones in Two States. The Foreign-Trade Zones Board is seeking comments by April 26 on the following applications.
• The South Carolina State Ports Authority, grantee of FTZ 21, is requesting special-purpose subzone status for the warehousing and distribution facility of Luigi Bormioli Corporation in Barnwell, S.C. This facility is used for the storage and distribution of glass fragrance containers and glass tableware products. FTZ procedures could exempt Luigi Bormioli from customs duty payments on foreign products that are re-exported (approximately 2% of shipments). On its domestic sales, the company would be able to defer duty payments until merchandise is shipped from the plant and entered for consumption. FTZ designation would further allow Luigi Bormioli to realize logistical benefits through the use of weekly customs entry procedures.
• The Lincoln Foreign Trade Zone, Inc., grantee of FTZ 59, is requesting special-purpose subzone status for the agricultural combine and hay tools manufacturing facilities of CNH America LLC in Grand Island, Neb. FTZ procedures could exempt CNH from customs duty payments on the foreign components used in export production, and the company anticipates that some 30% of the plant’s shipments will be exported. On its domestic sales, CNH would be able to choose for foreign inputs during customs entry procedures the duty rates that apply to combines and hay tools (zero). FTZ designation would further allow CNH to realize logistical benefits through the use of certain customs entry procedures.
Source Document 1...
Source Document 2...
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Foreign Regulatory Changes That Could Affect U.S. Exports. According to the National Institute of Standards and Technology, the WTO has been notified by the following countries of proposed regulatory changes that may affect U.S. exports of the products indicated. More detailed information on the nature of the proposed changes can be accessed on the NIST Web site.
• Argentina – food products
• Colombia – tires
• Kenya – aromatic disinfectant liquid
• Korea – stainless scrubber
• Mexico – household electric washing machines
• Philippines – self-ballasted lamps, double-capped fluorescent lamps, single-capped fluorescent lamps, ballast for tubular fluorescent lamps, electronic ballast for tubular fluorescent lamps, plastic piping systems
• Trinidad and Tobago – motor-operated massage and exercise machines, personal grooming appliances, electric hobby and sports equipment, hair clipping and shaving appliances
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FMC: OTI License Revocations, Applicants; Agreements Filed
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 #441F: Thomson, Jacobs & Moran Inc., Charlotte, N.C.
• License #739F: Charles A. Redden Inc., Union, N.J.
• License #2815F: Vanderbilt International Inc., Miami, Fla.
• License #2867F: M.A.T. International Service Inc., Miami, Fla.
• License #3867NF: All State International Freight Inc. d/b/a A.I.F. Company, Compton, Calif.
• License #3992NF: D.L. Bynum & Company Inc., Houston, Texas
• License #11384N: A.H.S. International Inc., Gardena, Calif.
• License #14624N: EWP International Inc., San Pedro, Calif.
• License #16574F: International Forwarders Inc., Lake Worth, Fla.
• License #017198NF: OMJ International Freight Inc., Miami, Fla.
• License #017584N: Cargo Control Express Inc. d/b/a Lions America, Torrance, Calif.
• License #17678N: Four Link International Inc., Jamaica, N.Y.
• License #017746N: Garnetany Enterprises LLC d/b/a Intlogusa, Long Beach, Calif.
• License #017839N: Empire Container Line Inc., Jersey City, N.J.
• License #018219N: Willy Express Shipping Inc., Bronx, N.Y.
• License #018759NF: Meyers Van Lines Inc., Bronx, N.Y.
• License #019136N: Consolidated Logistics LLC, Miami, Fla.
• License #019656N: T4 Logistics LLC, Washington, D.C.
• License #020405N: S.L.C. Shipping Inc., Alhambra, Calif.
• License #020428NF: Volvo Group North America Inc., Hagerstown, Md.
• License #020658N: Goal Ocean & Air Logistics Inc., Jamaica, N.Y.
• License #020682N: Raices Express Inc., Deerfield Beach, Fla.
• License #021418N: Asbun International Freight Inc., Medley, Fla.
• License #021476N: Norma’s Cargo Solutions LLC, Miami, Fla.
• License #021729NF: Salviati & Santori Ocean Inc., Valley Stream, N.Y.
• License #021877F: Airpax Inc., Windsor Locks, Conn.
Source Document 1...
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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.
• Eastern Logistics LLC, Bayonne, N.J.
• Sabrina Shipping LLC, South Plainfield, N.J.
• HP International LLC d/b/a A&M International, Elgin, Ill.
• Flash Forward Logistics Inc., Lynbrook, N.Y.
• Norton Lilly Logistics LLC, Mobile, Ala.
• A.N. Deringer Inc., St. Albans, Vt.
• Continental Shipping Group Inc., Irvington, N.J.
• M S F W Inc., Carson, Calif.
• SecureGlobal Logistics Inc., Houston, Texas
• Contex Shipping (USA) Inc., Middleburg Heights, Ohio
• Santiago Cargo Express Corp., Long Island City, N.Y.
• American One Freight Forwarders Inc., Doral, Fla.
• John S. James Co., Garden City, Ga.
• BKA Logistics LLC, Washington, D.C.
• Latunde Ayopo Sapara d/b/a L.A.S. Shipping, Calumet City, Ill.
• ClearSky Logistics Management LLC, Atlanta, Ga.
• Itochu Logistics (USA) Corp., Torrance, Calif.
• V. Alexander & Co. Inc., Nashville, Tenn.
Source Document 1...
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Notice of Agreements Filed. The Federal Maritime Commission has issued notice that the following new or amended agreements have been filed. Interested parties may submit comments by March 8.
• Israel Trade Conference Agreement – The amendment deletes the admission fee and financial guarantee that was required.
• HLAG/UASC Slot Exchange Agreement – The amendment adds Egypt to the geographic scope of the agreement.
• MOL/Swiss Shipping Space Charter Agreement – The agreement authorizes Mitsui O.S.K. Lines Ltd. to charter space to Swiss Shipping for vehicles on ro-ro vessels in the trade from the Atlantic and Gulf coasts of the U.S. to Benin.
• Seaboard/Seafreight Space Charter Agreement – The agreement authorizes Seaboard to charter space to Seafreight in the trade between ports of Miami, Fla., and George Town, Grand Cayman.
• HLAG/HSDG Slot Charter Agreement – The agreement authorizes Hapag-Lloyd to charter slots to Hamburg Sud on its service in the trade between ports on the U.S. Atlantic and Gulf coasts and the Gulf coast of Mexico and ports in France, Italy and Spain.
Source Document 1...
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RECENTLY INTRODUCED LEGISLATION IN THE 111th CONGRESS:
Legislation Repository...
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Bill#
Sponsor
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Date Introduced
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Description
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Action
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H.R. 4645
Peterson
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02/23/10
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A bill to remove obstacles to legal sales of United States agricultural commodities to Cuba and to end travel restrictions on all Americans to Cuba
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Referred to the House committees on Foreign Affairs, Agriculture and Financial Services
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