 In The Press |
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| Approved Additional Port Fee |
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| Ports of Los Angeles and Long Beach Approved Additional Port Fee On Monday, January 14, 2008, the ports of Los Angeles and Long Beach approved a new cargo fee that will generate $1.4 billion for transportation projects to improve traffic flow and air quality in the harbor area. The fee will be in addition to the one approved in December to help fund the ports' Clean Trucks Program. For more information please log on (www.polb.com,www.portoflosangeles.com ) |
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| 10+2 Requirement Published |
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| US Customs & Border Protection has released a proposal for a rule requiring importers and carriers to provide additional data that is not typically found on a ship’s manifest. The proposed rule defines the fundamentals of the 10+2 rule, and is another step in the Department of Homeland Security’s (DHS) strategy to improve CBP’s risk assessment and targeting capabilities to help prevent terrorist weapons from entering the U.S. The proposed rule specifically states that the additional information is not to be used for commercial purposes. Regardless, once implemented, this change will impact the business process for importing ocean freight. The Office of Management and Budget (OMB) has determined that the rule will cost industry from $390 million to $630 million per year. “The Security Filing will improve CBP’s ability to target high-risk cargo by identifying actual cargo movements and improving the accuracy of cargo descriptions,?said CBP Commissioner W. Ralph Basham. "It will also improve our ability to facilitate lawful international trade by identifying low-risk shipments much earlier in the supply chain." The public comment (60 day) period will last until March 3rd, 2008. The Notice of Proposed Rulemaking will soon be published in the Federal Register. Once published, persons wishing to comment on the proposed rule may access the Federal e-Rulemaking Portal at the Regulations website and follow the instructions for submitting comments. Regardless of when the regulations go into effect, CBP will adopt a phase-in enforcement process similar to the one utilized when the 24-Hour Rule and Trade Act regulations were implemented. Importers are required to submit an “Importer Security Filing" containing the following 10 data elements: The carrier is responsible for providing to CBP vessel stow plans and container status messages by the Automated Manifest System (AMS). To view the rule/commentary in its complete form, please visit the official website: http://cbp.gov/xp/cgov/newsroom/news_releases/01022008.xml The Federal Register notice of proposed rulemaking can be accessed at the following URL: http://a257.g.akamaitech.net/7/257/2422/01jan20081800/edocket.access.gpo.gov/2008/pdf/E7-25306.pdf |
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| POLB Approves $35.00/TEU Clean Truck Fee Effective 6/1/2008 nsf |
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| Commission Approves Cargo Fee to Fund Clean Trucks Container charges to generate $1.6 billion for fleet turnover, air quality improvements The Long Beach Board of Harbor Commissioners on Monday, December 17, 2007, approved a cargo fee that will generate about $1.6 billion to help fund cleaner trucks and improve air quality. The fee will help support the replacement of nearly 17,000 trucks in the short-haul (or "drayage") fleet that serves the ports. The Port will use the funds to ensure that the old, polluting trucks will be scrapped and taken out of circulation, rather than continuing to work outside the ports. The result will be an 80 percent reduction in air pollution from the drayage fleet in the next five years. "Today’s vote will help ensure that in a short time, only the cleanest trucks will operate at the ports," said Harbor Commission President Mario Cordero. "The next step will be to work with the trucking industry and other stakeholders to coordinate a smooth transition to a cleaner truck fleet." In early 2008 the Port will consider additional clean trucks measures, including a possible incentive program for companies that invest in the 2007 compliant trucks ahead of schedule. "This tariff is an important milestone for our community," said Long Beach Mayor Bob Foster. "It puts the costs for cleaner air where it belongs – on the price of goods sold. I congratulate the Port of Long Beach for taking this bold step for better air quality." The fee will place a $35 charge on every loaded twenty-foot equivalent (TEU) cargo container entering or leaving any terminal by short-haul (or "drayage") truck beginning June 1, 2008. The fee will not apply to containers entering or leaving the Port by train and will end when the fleet of drayage trucks meets Clean Air Action Plan (CAAP) requirements in about 2012. The fees will be collected by the ports’ shipping terminals, and the trucks will be monitored for compliance by radio frequency tracking devices or similar identification technologies. The Port of Los Angeles is scheduled to consider a similar fee December 20, which would apply the Clean Truck Fee to the entire San Pedro Bay. In November the Long Beach and Los Angeles Boards of Harbor Commissioners approved a ban on old, dirty trucks that call at the ports. The Port requirement will result in an 80 percent reduction in air pollution from drayage trucks by 2012. The ban will be phased in, beginning October 1, 2008 with a ban on all trucks built before 1989. By January 1, 2010, only trucks built after 1993 will be allowed, and by January 1, 2012 all trucks must meet 2007 federal EPA standards. While the ports do not own or operate the drayage trucks that serve port terminals, the Commission has decided that a progressive ban on dirty trucks, supported by the newly approved Clean Trucks Fee, will be the quickest way to cut air pollution and reduce public health risks posed by dirty diesel trucks. All funds collected by the two ports would be used for the replacement of about 16,800 trucks by 2012 with clean diesel trucks, or trucks fueled by liquefied natural gas (LNG), or other approved technologies that can achieve the 2007 standard adopted in the CAAP. The Commission acknowledged that the fee may result in minor additional costs to cargo owners and may ultimately increase the cost of goods shipped by container. However, commissioners said, the ports cannot continue to effectively move goods without reducing air pollution and public health risks. Following final approval of the fee, the Long Beach and Los Angeles Boards of Harbor Commissioners will reconvene in early 2008 to consider a series of measures to establish a more specific framework for the implementation of the Clean Trucks Program. Port staff will prepare recommendations on the following: A permit or license program; funding and financing options for truck retrofits or replacements; a plan for integration of the U.S. Transportation Worker Identification Credential (TWIC) program; an incentive program for companies that invest in 2007 compliant trucks; and a cargo fee to support port-related goods movement infrastructure. The fee would be separate from the Clean Truck Fee. Visit the following links for the clean trucks Tariff Amendment; Ordinance; Staff Report; Fact Sheet and Q&A. http://www.polb.com/news/displaynews.asp?NewsID=315&targetid=1 |
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| Trapac Terminals in Los Angeles to Expand |
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| From the Los Angeles Times: Commission OKs L.A. port expansion Backers cite 'green' elements, but homeowners and environmentalists raise various concerns. By Louis Sahagun Los Angeles Times Staff Writer December 7, 2007 The Los Angeles Harbor Commission on Thursday approved a controversial proposal to increase ship calls by 30% at one of the West Coast's largest shipping terminals and add 1,800 daily truck trips to an area already struggling to cope with some of Southern California's most polluted air. About 200 people attended the commission hearing at Banning's Landing Community Center in Wilmington. The panel voted 4 to 0 to certify the environmental impact report for the $1.5-billion upgrade at the TraPac Terminal. Public testimony on the matter stretched more than six hours. "This is the best thing that's happened here in two years," said Geraldine Knatz, executive director of the Port of Los Angeles. "We're on our way. We're going to do it. We're going to clean it up," she said with a broad grin. Andy Mardesich, president of the San Pedro and Peninsula Homeowners Coalition, was not impressed. "This EIR continues to conduct port business in the very same manner that it always has," he testified, "and that, my friends, is with a resolute dedication to conduct commerce without conscience." The commission's action elated business leaders led by Los Angeles Area Chamber of Commerce President Gary Toebben, who had strongly endorsed the project. He predicted that the expanded terminal would create as many as 6,000 new jobs, generate $200 million a year in tax revenue and provide a template for green-lighting at least 15 port expansion projects long delayed by other environmental challenges. "If it fails," Toebben said before the vote, "it will be a dramatic failure for the concept of green growth at the ports." The proposal would require various measures aimed at combating pollution in the Los Angeles and Long Beach port complex, the largest fixed source of air pollution in Southern California. For example, diesel-powered cranes would have to be replaced with less-polluting electrical cranes. Some port projects have been held up since 2001, when the Los Angeles City Council approved plans for a 174-acre terminal for China Shipping Container Lines Co., prompting lawsuits by environmental groups that wanted assurances that environmental reviews would be thorough. That suit ended in 2003 with the port and city announcing an unusual $60-million settlement with the environmental groups. Most of the money will go to a wide array of projects to reduce air pollution. In an effort to avoid confrontations over the TraPac project, port authorities spent more than four years developing its environmental impact report. In her comments before the board Thursday, Knatz said: "Last January, port management and staff agreed on five important things this organization had to achieve in 2007. No. 1 on our list was 'deliver an EIR to the board that you could feel good about certifying.' We believe we have done that." But attorneys representing the National Resources Defense Council and concerned local residents said the report tucked potentially damaging information about the project's environmental impacts into its back pages. For example, the report acknowledges in Appendix D that air pollution will increase in the short term while the project is under construction. "No one has ever agreed to an increase in emissions in the short term," said Janet Schaaf-Gunter of the homeowners coalition. "Increasing emissions is not growing green." Over time, however, the project will generate significantly less in dangerous air particulates and other emissions than there would have been without the "green" mitigation measures. But port authorities surprised environmentalists in attendance by announcing that they have no means of curbing anticipated increases of greenhouse gases from the project, including carbon dioxide. Environmentalists were also distressed that the board had approved a massive expansion before the port's Clean Air Action Plan is fully implemented. Although the adjacent ports of Los Angeles and Long Beach agreed in November to scrap old diesel rigs and replace them with newer, cleaner trucks, they have yet to develop a means of enforcing the ban, intended to help slash port-related pollution linked to 2,400 premature deaths in the region a year. "They put the cart before the horse," said Adrian Martinez, an attorney with the National Resources Defense Council, one of eight groups represented in a letter of concern delivered Wednesday to Ralph G. Appy, the Port of Los Angeles' director of environmental management. On Thursday, Los Angeles Councilwoman Janice Hahn, whose district includes the port, urged the board to advance the TraPac project but "to be bold" and amend the EIR to require extra environmental protections. She wants a more aggressive timeline to require use of low-sulfur fuel in diesel-powered vessels and on-dock electrical power to eliminate idling in port. "Certify this EIR today for the community of Wilmington," she said, "but also amend it to protect the health of the community of Wilmington and all of Los Angeles." In Knatz's argument for approval, she said the particulars could be worked out later. Schaaf-Gunter compared Knatz's promise to "the check is in the mail." However, Knatz said a lawsuit challenging TraPac's environmental impacts would only delay realization of Los Angeles Mayor Antonio Villaraigosa's call for "green growth" at the nation's busiest port. "That would be a darn shame," she said. In a related matter, Villaraigosa and state Atty. Gen. Jerry Brown Jr. were expected to announce today an agreement to ease future terminal expansions by constructing solar panels to provide a clean source of energy for the ports and thus reduce harmful emission. |
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| UNIPAC SHIPPING SELECTS KEWILL CUSTOMS |
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| Kewill Solution to Support Customer Growth and Increased Profit December 5, 2007 — Nashua, NH. — Kewill (LSE: KWL), a leading provider of global solutions for the dynamic supply network, announced today that Unipac Shipping, has selected Kewill’s U.S. Customs Brokerage solution and services. Unipac Shipping, Inc. is a full-service logistics management company providing integrated transportation, customs brokerage, warehousing, and distribution services to a worldwide shipping community that spans North America, Europe, Asia-Pacific, and China. “Unipac’s growing success compelled them to seek out a more robust and flexible solution that would provide them with the tools to offer their customers the highest levels of service and support”, said Ken Halle, COO of Kewill Trade and Logistics. “The recognition by a global company such as Unipac Shipping that our solutions can improve their operational efficiencies is a strong testimonial to the quality and value of the solutions we offer.” The Kewill solution for approximately 100 users will include comprehensive shipment tracing, exception reporting, document handling, ABI, RLF, reconciliation entry, automatic invoicing capabilities, with integrated accounting and hands-free entry processing. Additional modules will extend the system to include technologies such as event management, internet tracking, document imaging, and dashboard visibility of all shipments in process. The project will encompass software installation, integration, and training. “Having outgrown our previous system we needed to look for a more robust and flexible solution that would allow us to deliver and address the 24x7 demands of our global customers and bolster our ability to deliver additional value to our ever-expanding customer base,” said Edward Major, vice president, Customs Brokerage Division of Unipac Shipping. “We went through a rigorous selection process and Kewill demonstrated they had the strongest capabilities.” -More- About Unipac Shipping Unipac Shipping, Inc. is a full-service logistics management company providing integrated transportation, customs brokerage, and warehousing and distribution services on a global basis. They represent the logistical backbone that enables international trade across multiple industries, all over the world. Established in 1985, they have always recognized the importance of innovation and progressive thinking in meeting the challenges of a constantly evolving industry. As a privately owned group, they operate from a centralized hub. Better control, communication, and synergy within the group translate into efficiency and profitability for customers. Their expertise is backed by cutting-edge IT capabilities that optimize data sharing to accelerate business processes so business can be conducted in a seamless environment through online communication and verification. For more information, visit www.unipacshipping.com. About Kewill Kewill Systems Plc is a leading provider of global solutions for the dynamic supply network. The dynamic supply network enables enhanced responsiveness to customers through flexible connectivity between partners and systems, providing improved visibility and effective compliance, bridging the gap from a traditional rigid supply chain. With over 35 years experience in the supply chain space, Kewill is a long-time innovator of software focusing on business integration, order management, transportation management, international trade logistics, service logistics and visibility solutions for global trading communities. Kewill has implemented over 40,000 systems worldwide and our global customer base which entrusts us with the management of their supply networks includes Allianz Cornhill, A.N. Deringer, Atlantic Forwarding, Baltrans Logistics, BHS, Damco Sea and Air, DHL, DSV, FedEx, Frans Maas, General Electric, General Motors, Glasgow City Council, JD Williams, Littlewoods, Marks & Spencer, Mazda, Mitsubishi, MMA, Nintendo, Nisa Today’s Legal & General, Panalpina, Philips, Pratt & Whitney, Sainsbury’s, Texas Instruments, TNT, Towergate Insurance, UPS. |
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| Unipac Shipping Selects GT Nexus to Power Global Logistics Data Hub< |
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| GT Nexus announced that its industry trade and logistics portal will serve as the ocean shipment visibility data hub for Unipac Shipping, Inc. Ocean shipment status data will be captured from Unipac's partner carriers, standardized into a common format, and then fed directly into Unipac's internal visibility systems. For detail of the press release, please view: http://www.gtnexus.com/press_room/press_releases.php?releaseID=106 |
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| China Establishes its First Textile Index System |
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| The China Textile Network Co., Ltd. has issued a news release which reports that China's Ministry of Commerce announced on October 21, 2007 the establishment of China's first textile index system, which will be based on data collected by the China Textile City, one of the largest textile distribution centers in the world. According to the notice, the system includes the price index, the business index, the export index and the order index, which will reflect the price movement of the domestic textile market, ups and downs of the textile export market, and the change of orders accepted by textile producers and operators. (Press release, dated 10/25/07, available at http://www.ctei.gov.cn/english/e_show.asp?xx=5794.) | |
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| Commissioner Discusses Effort to Thwart Counterfeit Imports before U.S. Chamber of Commerce |
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| (10/04/2007)CBP Commissioner W. Ralph Basham spoke yesterday at the 4th annual Anti-Counterfeiting and Piracy Summit sponsored by the U.S. Chamber of Commerce in Washington, D.C. “Stopping counterfeit and pirated goods is a high priority for CBP, and we devote substantial resources—CBP officers, import specialists, attorneys and auditors—to target, intercept, seize merchandise and penalize those who violate our intellectual property rights laws,” Basham told the group. He and John Clark, deputy assistant secretary, Immigrations and Customs Enforcement, provided an update on domestic enforcement efforts. “During the last five years, seizures of counterfeit and pirated goods have skyrocketed by 153 percent,” Basham said. “Last year, CBP made more than 14,600 seizures and this year, seizures increased 83 percent and increased in value by 67 percent.” CBP’s international trade office oversees IPR issues. Basham outline four strategies CBP uses in combating counterfeit and pirated goods, a similar game plan used by CBP in its security mission: Evaluate risks to understand the potential threats and vulnerabilities. Use new techniques to help target and interdict pirated goods. Partner with the private industry and other government agencies. Identify business practices linked to IPR theft and use audits to deprive counterfeiters and pirates of their illegal profits. |
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| Importers! The best defense is a good offense |
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| Journal of Commerce Monday, October 01, 2007 By: ALAN M. FIELD You've decided to source your widgets in China, where contract manufacturers can make them at half the price and supply them at a 20 percent discount. Weeks after you take your first delivery, you discover that the latest production run is full of dangerous defects. When you contact your supplier, he tells you he isn't liable. So you decide to seize his U.S. assets, only to discover that he has no legal presence in this country. These are the kinds of issues becoming increasingly common among companies that import and distribute products made by contract manufacturers in China, said William V. Custer, partner at Powell Goldstein LLP, an international law firm. That's because contract manufacturers are often tempted to skimp on quality in a headlong rush to increase their production levels and meet rising demand. U.S. importers "are totally exposed, and there is no recourse for them if things go wrong," Custer said. The U.S. Consumer Product Safety Commission can slap importers with a fine of $8,000 for each unit of a defective product they bring on the market. The CPSC has fixed its maximum fine at $1.825 million for any related series of violations. Few importers dispute such charges. "These issues are seldom litigated, with the CPSC usually deciding the fines, which can add up quick," Custer said. A key problem for importers of goods from China is that Chinese law does not permit U.S. citizens and companies to go to China to seek recourse there for defective products, Custer said. "Importers in Europe and elsewhere will stand behind their products, but it is quite rare for Chinese companies to do that," he said. Instead, U.S. consumers are often forced to sue local U.S. retailers, importers and distributors - the only U.S. parties against which they can obtain a legal judgment. Custer said Chinese suppliers typically sell on CIF terms, with title to their products transferred to the importer at the U.S. port of entry. "Unless you go out to the high seas, you won't have any Chinese assets to seize," Custer said. For the trade community, the risks are huge. He said most consumer goods are supplied by "the truly Chinese companies," not by China-based subsidiaries of U.S. companies, which will typically accept legal responsibility for product defects, Custer said. "This is a problem not only for small companies but for the big-box retailers," he said. Nevertheless, U.S. companies can reduce their legal exposure. Custer advises manufacturers and retailers who buy from contract manufacturers to buy product liability insurance in the U.S. from a reputable provider. That way, there's a policy to collect on if the Chinese supplier refuses to take responsibility." Another option is to insist that your supplier provide you with some level of legal protection in the contract you negotiate with him. Despina Keegan, a senior trade adviser at JPMorgan, a division of JPMorganChase, advises importers to address this problem as a product safety issue, not an import safety issue. When importers and retailers build product safety into their business processes from the outset, both at home and overseas, they reduce the odds of facing lawsuits and fines. "This proactive approach means looking at how your processes are working for you," Keegan said. "With careful planning and thought and strategizing, it is achievable." Mike Leavitt, secretary of health and human services, has recommended a shift from point-of-entry intervention to a model that is based on prevention with verification model and that addresses product safety at every step of the import cycle, from producer to consumer. A new Interagency Working Group on Import Safety, made up of senior administration officers, was established on July 18 to review import safety practices and recommend improvements. Keegan likens the upcoming initiative to the Customs-Trade Partnership Against Terrorism, which emphasizes collaboration between the trade community and Customs and Border Protection. The new approach will require participation of every department in a global corporation, she said. That could include corporate departments responsible for product design, product development, manufacturing, sourcing, warehousing, legal, logistics and more. Such an effort requires commitment from senior management, she said. "C-TPAT asks importers, 'Do you know who you are dealing with?' " Keegan said. "The new initiative will ask importers, 'Do you know what they are making for you? Do you know how it is made?' " Keegan is optimistic. "Responsible companies really care about this issue," she said. "This is a wake-up call for all the companies in the global supply chain to look at their business processes." Keegan is also encouraged by recent joint U.S.-Chinese declarations that agencies from both countries will meet regularly to cooperate on product safety. "This will mushroom in the future," she predicted. Customers said taking the initiative also reduces risk by providing a stronger defense against liability lawsuits. If your case does come to a jury trial in the U.S., a company's changes improve if it can show that it has followed all the best business practices in an effort to guarantee their safety. Without a program to monitor the quality of products from overseas contract manufacturers, Custer said, "Juries won't have much sympathy for you." Alan Field can be contacted at afield@joc.com. Readers of the digital edition of the JoC who want more information can click on: www.cpsc.gov www.importsafety.gov www.jpmorgan.com/pages/jpmorgan |
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| Food and Drug Import Safety Act of 2007 |
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| Washington, DC – Rep. John D. Dingell (D-MI), Chairman of the Committee on Energy and Commerce, along with Reps. Frank Pallone (D-MI), Chairman of the Subcommittee on Health, and Bart Stupak (D-MI), Chairman of the Subcommittee on Oversight and Investigations, today introduced legislation that would dramatically improve our country’s system for ensuring the safety of imported food and drugs. “We are now importing twice as much food as we were a decade ago, yet the FDA examines less than one percent of it. Tainted imports are slipping into our country undetected and the resulting problems will continue to grow if we don’t take immediate steps to tighten safety measures,” said Dingell. “Increasing reports of contaminated imports have made it clear that the FDA does not have the resources and authority it needs to ensure the safety of our food and drug supply. This puts every American consumer at risk.” The Committee is conducting a broad investigation into the safety of the nation’s food and drug supply, particularly the declining ability of the Food and Drug Administration (FDA) to adequately conduct inspections and perform laboratory analysis. The legislation would specifically create a user fee on imported food and drug shipments. Funds generated by the fee would be used to hire additional personnel to perform inspections at both the U.S. border and abroad as well as at FDA labs to increase analysis of food and drug imports. Funds would also be used to test import samples and research new testing techniques. “Without regular inspections and analysis there is little incentive for food producers and importers to ensure that our food supply is free from harmful and sometimes fatal contaminants,” said Dingell. The legislation would also prevent the Secretary of Health and Human Services from closing or consolidating any of the current 13 FDA field laboratories and grant the agency new authorities to: · Issue mandatory recalls; · Require country of origin labeling for food, drugs and medical devices; · Limits the number of ports of entry for food items; · Halt imports of certain products until a foreign facility can demonstrate that significant steps have been taken to rectify an identified problem; and Increase civil monetary penalties for manufacturers or importers that violate the Federal Food, Drug and Cosmetic Act. A legislative hearing on this bill will be held in the Subcommittee on Health on Wednesday, September 26. For more information about the legislation visit the Committee on Energy and Commerce website at http://energycommerce.house.gov. |
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