This day-long event will focus on the challenges that Chemical companies are facing today when importing their products into the US.   Taking part in this discussion with be Leon Hayward, Assistant Director, Trade & Cargo Security, and Anthony Orosz, Chief, Partnership Branch – both from the CBP Chemical and Pharmaceutical Industry Integration Center.

The event is free and is being held to inform those who manage import processes of issues and concerns that face the Chemical industry today.  This effort is to inform CBP of those challenges members of the trade face on a daily basis.  The session will be interactive, providing an excellent opportunity to ask questions and receive answers directly from CBP representatives.

To register for the event, please confirm your attendance by sending an email to Natalie.Mortelmans@BDPInternational.com

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Q: Is it the responsibility of the importing/exporting company or of the Mexican Customs Broker to file the information?

A: It is the responsibility of the importer/exporter of record and not the broker.  In some cases, a company may outsource their responsibility to a broker. However, in a traditional environment the importer/exporter of record will need to process these transactions as is currently done with the physical paperwork today.  While the broker has information about the shipment and can access the electronic information once submitted, the COVE should be created and sent by the importer/exporter.

Q: Pertaining to the ownership of goods, if a file is uploaded under the FIEL, for the Mexican Government, whose responsibility is it going to be even before the arrival to Customs?

A: This remains the same as if a company were presenting documentation on paper today.  The only thing that changes is the presentation of that information.  Right now it is done on paper as compared to the new method which will be done electronically.  But, this should not affect the ownership or responsibility.

Q: Who should complete the shipment information through VUCEM:  the customs broker or the importer/exporter?

A: This is a decision that the importer/exporter needs to make.  There is no regulation that says who submits what information.  In some instances, a company will outsource their Customs compliance to a broker, in which case the broker will handle the data entry.  The best way to decide who is completing the information is to look at who is currently creating the import/export invoices and that would most likely be the one that needs to do the VUCEM/COVE.

Q: Generally the customs broker is the one that verifies the invoice information and pedimento.  With this new regulation, are we, the importer/exporter, responsible for the review?

A: The importer/exporter of record that creates the file can assign the broker as a party to have access to the information that was transmitted.  If a company wishes for the broker to review that shipment information, it is necessary to make sure that the broker is an authorized user in the VUCEM account.

Did you miss the webcast or would like to share it with others in your organization? You can view the on-demand webcast here.

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The CIT and CAFC debated over simultaneously imposing antidumping and countervailing duties in NME country cases because that would result in a double remedy, which is prohibited by US and World Trade Organization (WTO) laws. According to the CIT, when antidumping and countervailing duties are concurrently applied against imports from NMEs, double remedies can occur because each duty is designed to address the same underlying concern – price distortions resulting from government subsidies and influence. Though the US Department of Commerce and US manufacturers that favor the imposition of countervailing duties appealed to the CAFC, in the end, the CAFC agreed with the CIT’s ruling, on different grounds.

Due to this CAFC decision, countervailing duties may not be applied to goods imported from NME countries absent legislative change. However, the Department of Commerce hasn’t officially changed its policy to reflect this decision yet. So, until otherwise instructed by the Department of Commerce, US importers are still required to deposit countervailing duties when importing goods subject to a countervailing duty order from an NME country. Though at the same time, importers should protest entries still within the protest period to protect potential refunds resulting from this ruling.

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According a press release issued by the US Department of Homeland Security (DHS), “the National Strategy for Global Supply Chain Security outlines clear goals to promote the efficient and secure movement of goods and foster a resilient supply chain system.  It also provides guidance for the US government and crucial domestic, international, public and private stakeholders who share a common interest in the security and resiliency of the global supply chain.”

Within the National Strategy for Global Supply Chain Security, there are two main goals:

• Promote the efficient and secure movement of goods – the US Government will seek to resolve threats early, improve verification and detection capabilities, enhance security of infrastructure and conveyances, and maximize the flow of legitimate trade
• Foster a resilient supply chain – the US Government will seek to mitigate systemic vulnerability and promote trade resumption policies and practices

The Obama Administration is asking all federal agencies and departments to report back to him within one year on the progress of their efforts and plans for future initiatives. DHS and the US Department of State will be conducting a six month effort to collect feedback and specific recommendations on how to implement the Strategy in a cost effective and collaborative manner.

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• India proposes to Mexico conclude a free trade agreement. http://bit.ly/y4TtrC
• UK exports action plan ‘good for Scotland’. http://bbc.in/A5SUyO
• Argentina to go ahead with new import rules. http://bit.ly/zCO3Mj
• Iran threatens to act first on EU embargo. on.ft.com/zZcwRN
• India: Aerospace and defence exports likely to reach USD 2 billion in 2011-12: Assocham. bit.ly/zyDueq
• Taiwan set for first free trade area. bit.ly/xsBSoi
• UK’s Cameron urges quick completion of Canada-EU free trade agreement. bit.ly/ytbLBA
• FDA Proposes Rule on Drug Residue Import Tolerances for Animal-Derived Food. 1.usa.gov/zWj5LP
• Brazil: Fresh fruit exports set a new record in 2011. bit.ly/A38CAZ
• S. Korean exports to Mexico soar in 50 years: report. bit.ly/zNhLzq
• Canada made a number of changes to the Export Control List & that means more export permits requirements bit.ly/ySlrhL
• India, Thailand to sign free trade agreement by mid-2012. bit.ly/AALWMO
• Indian government offers to export petro products to Pakistan. bit.ly/zaVcKJ
• Japan-Peru Free Trade Pact Takes Effect in March. bit.ly/xJFiLR
• Australia will follow EU ban on Iranian oil imports. bit.ly/yycIyo
• Indian government to take up repair work of SEZ rules soon. bit.ly/yVpPBX
• Armenia may start free trade talks with EU. bit.ly/zrBLej
• Fair Trade USA Changes Label Policy. bit.ly/y3w48u
• EU bans Iran oil imports, targeting nuclear program. bit.ly/wC5ILf
• Mexico eliminates import tariffs for 200 products. bit.ly/AzBcy6
• Latin America, Caribbean Countries Call For Greater Trade Engagement With India. bit.ly/x3jBQQ

Enjoy!

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According to a statement released by the WCO, “connectivity connotes a vision of arrangements worldwide that support the smooth and lawful flow of goods, services, people, technologies, capital, culture, and ideas. It galvanizes the establishment of partnerships, the preparation of research, the sharing of knowledge, and the delivery of capacity building.  Connectivity thus paves the way for community protection, modernization, and economic development.”

While borders may divide us geographically, working together to strengthen communication between the private sector, Customs administrations, and other government agencies and institutions, will connect us all as we strive to facilitate the achievement of objectives such as a safe, secure supply chain, and ease of reporting to multiple parties.  It will be the sharing of knowledge that will truly fuel connectivity across all borders – and it will be the sharing of knowledge that will provide everyone, Customs and the private sector, with easier ways to conduct business around the world.

As proceed through your day today, think about how many items in your everyday life have come through an international supply chain.   Now, stop and think about if those items were held up at borders due to security risks, non-compliance with government rules, or just a simple mistake on a filing.  Could you make it a day without your cell phone, watch or computer?    While you may not be the one moving the goods through the supply chain, this focus on connectivity for the 2012 International Customs Day should be one you celebrate since it keeps your world moving on a daily basis.

Happy International Customs Day!

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Canada’s Foreign Affairs and International Trade’s Export Controls Division (ECD) recently announced a number of changes to the Export Control List (ECL), which went into effect on December 16, 2011. This means that the “Guide to Canada’s Export Controls (2007)” is no longer in force.

The amendments to the ECL include the addition of numerous goods and technology that now require an export permit for their transfer from Canada. Also, included in these amendments is the removal of various items from control as well as clarifications regarding existing controlled items.

Some of the goods and technology that are affected by these changes include items in the following categories:

• Dual use items – ECL Group 1
• Munitions list – ECL Group 2
• Miscellaneous items – ECL Group 5
• Miscellaneous technology items – ECL Group 6
• Chemical and biological weapons items – ECL Group 7

These changes will not be published in the “Canada Gazette” or on ECD’s website until early 2012. But, a copy of the new “Guide to Canada’s Export Controls (2010)” is available by emailing ECD at excol-ceed.epe@international.gc.ca.

In addition, more information on these changes can be found at ECD’s website by clicking here.

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Q: Will COVE be used for all type of shipments – air, land or sea?

A: Yes, basically any type of transaction that needs to be cleared by Mexican Customs (Aduanas) needs to be transmitted with a COVE.

Q: Will companies have to present the original document, for example EUR1, in the clearing process?

A: No, companies will not have to present the original document. Mexican Government personnel working on this implementation, indicate that these documents will no longer need to be physically presented.  However, a company must keep in mind that any supporting documentation, like the EUR1, needs to be digitized and get an eDocument reference number assigned to it so a company can reference it in an electronic shipment.

Q: How can a correction to the document be sent in the case that COVE information is incorrect?

A: Normally, that will be done through a company’s Mexican Trade software that was used to originally create the file.  If a company corrects information in the software product, it can be retransmitted.

Q: How long does it take COVE to respond?

A: All tests have thus far show the Customs’ response to be very quick; in fact, it is almost immediate.  It is a process that is intended to provide immediate response, so it should not take very long to get a reply back from the portal.

Did you miss the webcast or would like to share it with others in your organization? You can view the on-demand webcast here.

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The registration for the National Customs Brokers & Forwarders Association of America (NCBFAA) 38^th Annual Conference that is being held this April 24, 2012 in Hollywood, Florida is open until February 28^th.

With a theme of “Success Built on Knowledge,” this conference is a huge transportation event that includes many educational and informational opportunities as well as networking and social activities. There will be nationally known subject matter expert presenters and panelists form the industry, federal agencies, legal profession and service providers there to provide their insights and perspectives on the complex and challenging requirements.

Each day of the conference has a topic of focus, including forwarding, customs or US Customs and Border Protection (CBP), and National Export Initiative (NEI). Throughout these days the following topics will be covered:

• Using approved Negotiated Rate Agreements (NRA)
• Incorporating regulations to a transportation state of mind
• Enforcing rules, regulations, guidelines, and processes on a budget
• Improving protection against revenue evasion, rights infringement and smuggling activities
• Dealing with the new Automated Commercial Environment (ACE) platform
• Using system tools to verify export transportation compliance

To see more topics that will be covered at the NCBFAA’s 38^th Annual Conference click here and view the full program schedule, or if you’d like to register before the February 28^th deadline click here.

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• EU: Albania, China, Turkey take share of market in Kosovo bit.ly/yr2P8U
• FTZ Board Asked to Expand Zone Benefits in New York, Arizona bit.ly/wvahgk
• South Korea to resume Canadian beef imports bit.ly/vYVvVM
• Overhaul of Australian agricultural export certification systems bit.ly/xJEYZx
• Bangladesh exports exceed target bit.ly/yWbYpZ
• CBP Releases Data on Textile and Apparel Enforcement in 2011 bit.ly/wbklix
• India identifies four states for manufacturing zones bit.ly/zlN7LR
• FTZ Board Receives Reorganization, Temporary Authority Applications bit.ly/ABBW4J
• US BIS publishes Export & Reexport License Requirements for Certain Microwave Components 1.usa.gov/zpUh1G
• Argentina to Require Companies to Obtain Permission to Import bit.ly/Aldf2f
• Egypt open for US trade talks, says minister bit.ly/y68I9x
• Report Finds 24% Increase in Shipments Into Foreign-Trade Zones bit.ly/wAhrx6
• Irish trade surplus hits new high as exports surge bit.ly/ypvNpS
• ASEAN convenes to address free trade issues bit.ly/wvCBCQ
• U.S. exports fall 0.9% in November | AS Daily Newsletter | AS Daily | American Shipper lnkd.in/6cfcGF
• At $25 billion, India’s exports up by 6.7% in December bit.ly/yGAUni
• UK seeks deals with SE Asia bit.ly/z5xgFb
• MX Gov’t announces VUCEM (Ventanilla Unica de Comercio Exterior Mexicano) starts operations today bit.ly/wPMAyf
• India imposes 2% import tax on gold, 6% on silver bit.ly/zjwpXD
• Prime Minister says agreement on FTZ in CIS imperfect but “extremely positive” for Ukraine bit.ly/wMhrTD
• India, EU firm up agenda for summit, discuss free trade bit.ly/ymqvhN
• President Proposes to Consolidate Six Federal Trade Agencies bit.ly/zA1G2t
• Export Advisory Committees Seek New Members bit.ly/w4WGDi

Enjoy!

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