A. N. Deringer Trade Alert 7/12/06 (00154139).DOC

This bulletin has been prepared especially for clients of A. N. Deringer, Inc. by:

SERKO SIMON GLUCK & KANE LLP – Customs & International Trade Law

July 12, 2006

CUSTOMS and BORDER PROTECTION (CBP)

Final Phase of WPM Enforcement Begins: Effective July 5, 2006, Phase III (final) enforcement of wood packing materials (WPM) rules has been implemented. Under this final phase, all violative WPM materials will be ordered exported if it is unfeasible to separate them from non-violative materials. All cases, crates, blocks, drums, pallets, skids, etc. must be either heat treated or fumigated with methyl bromide and marked with a certifying mark. Additional information on the final implementation may be found at: http://www.customs.gov/linkhandler/cgov/import/commercial_enforcement/wpm/trade_implement.ctt/trade_implement.doc.

Deadline for C-TPAT Security Link Portal Postponed: The deadline for the submission of security profiles by all C-TPAT members via the new C-TPAT Security Link Portal has been postponed from June 1, 2006 to October 1, 2006. CBP notes that no additional postponement will be granted, and failure to provide the required information by that date may result in the loss of all program benefits.

Classification Developments: Rechargeable Batteries and Battery Charger Sets – CBP is proposing to reclassify a rechargeable battery and battery charger set in subheading 8504.40.9550 (1.5% duty), HTSUS, the provision for "Electrical transformers, static converters…Other." As the purpose of buying the set is for the charger, they are not to be classified in the provision for "batteries" in heading 8507.30 (2.5% duty).

TRADE TALK

Free Trade Developments:

South Korea – The U.S. and South Korea recently started negotiations toward reaching a free trade agreement (FTA), preferably by the end of 2006, so as to allow a Congressional vote while President Bush still has "fast track" authority, currently set to expire in June of 2007. The biggest concern facing negotiators is the U.S. desire for greater access to Korea’s agricultural sector and South Korea’s insistence to include its joint industrial zone with North Korea in the pact.

Guatemala – Effective July 1, 2006, eligible imports from Guatemala will be able to claim preferential duty treatment under the Dominican Republic-Central America FTA (DR-CAFTA). Following CAFTA implementation between the U.S., El Salvador, Honduras, Nicaragua, and Guatemala, the Dominican Republic is the only country which has ratified the agreement but has not yet implemented it; Costa Rica has not yet ratified CAFTA.

Oman – The U.S. Senate passed implementing legislation for the U.S.-Oman FTA. The U.S. House of Representatives must follow suit and the President must sign the legislation prior to its coming into effect.

AD/CVD Developments: The U.S. Commerce Department recently took the following action:

Metal Calendar Slides – Made a final affirmative antidumping (AD) determination of certain metal calendar slides from Japan with an AD margin of 3.02%. Tin and Chromium Coated Steel Sheets – Determined to keep in place the AD order on tin and chromium coated steel sheets from Japan.

Stainless Steel Wire Rod – Voted to revoke the AD order on certain stainless steel wire rod from Brazil and France.

Rectangular Pipe and Tube – Voted to revoke the AD order on certain light-walled rectangular pipe and tube from Argentina.

GSP Changes: Following a review of several petitions it received, the U.S. Trade Representative (USTR) announced that it will not withdraw GSP benefits from Bangladesh, Brazil, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Kazakhstan, Oman, Pakistan, Panama, and Swaziland. The USTR is still reviewing petitions to withdraw GSP benefits from Bulgaria, Lebanon, Romania, Russia, Uganda, and Uzbekistan.

GSP benefits will be withdrawn for carrageenan and certain watches from all countries.

In addition, the following merchandise will lose their GSP eligibility from the noted countries as a result of exceeding the Competitive Needs Limitations (CNL): certain fruits (Philippines); certain plywood (Brazil); travertine (Turkey); crabmeat (Venezuela); paprika (Peru); certain fruits, pesticides, and steel flanges (India); precious metals and aluminum alloy (Russia); fungicides and parts of electric motors (Brazil); sacks, bags, and aluminum cookware (Thailand); copper wire (Turkey); certain boilers (Indonesia); and circuit breakers (the Dominican Republic). Additional information can be viewed at: http://a257.g.akamaitech.net/7/257/2422/06jul20061300/edocket.access.gpo.gov/2006/pdf/06-6034.pdf.

WORLD TRADE ORGANIZATION (WTO)

Doha Round Talks Fail: The latest negotiations of the Doha round of trade talks has ended in failure, as over 60 ministers failed to reach agreement by the end of June deadline in Geneva. Once again, agricultural issues between the EU and the U.S., and increased access to industrial markets in the G-20 developing countries, seemed to lead the unresolved issues.

Russia: With Russia being the largest economy outside the 149-member WTO club, and having negotiated bilateral agreements for WTO entry with all countries but the U.S., reports indicate that the U.S. may sign an agreement with Russia prior to the beginning of the G-8 Summit in St. Petersburg this upcoming weekend.

TRANSPORTATION TIDBITS

CSI: Egypt agreed to join the Container Security Initiative (CSI) program.

BUSINESS BRIEFS

Lead Toy Jewelry Petition: The U.S. Consumer Product Safety Commission (CPSC) recently received a petition to ban all toy jewelry containing more than 0.06% lead; comments will be accepted until August 21, 2006. In addition, an environmental advocacy group petitioned the U.S. Environmental Protection Agency (EPA) to require producers and importers of consumer products containing lead to provide the EPA with health and safety studies on their products.

EAR: The U.S. Bureau of Industry and Security (BIS) recently took the following actions for violations of the Export Administration Regulations (EAR): 1) denied certain export privileges for 20 years and imposed a $170,000 civil penalty on a company for exporting electronic components to China without the required license; 2) denied export privileges to a Dubai company for 10 years for transferring telecommunications devices to Iran without the proper license; 3) denied export privileges for 20 years and imposed a fine of $77,000 on a German company for the unauthorized export of spare parts for hydraulic shears; 4) denied export privileges for 10 years for transferring fingerprint powder to Belarus without a license.

Serko Simon Gluck & Kane LLP
1700 Broadway, 31st Floor
New York, New York 10019
Phone (212) 775-005 Fax (212) 839-9103
Outside of New York State: 1-800-46-TRADE
E-mail address: serko-simon@customs-law.com On the internet at: www.customs-law.com

Note: This information is current as of the date of this document, and is not, nor is it intended to be, legal advice, which can only be provided by Serko Simon Gluck &Kane LLP on a case-by-case basis. ©2006

This Trade Alert has been prepared by Chaim Appel, Technical Advisor.