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

 

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

 

December 18, 2006

 

CUSTOMS and BORDER PROTECTION (CBP)

 

  • HTSUS Changes Are Delayed Past January 1, 2007:  The scheduled changes to the U.S. Harmonized Tariff System (HTSUS) will be delayed at least until sometime in February 2007.  The Presidential Proclamation and Federal Register notice announcing the changes will not occur until after Congress returns from its year-end vacation in January 2007.  The changes to the HTSUS will only take effect 30 days (not the usual 15) after their publication in the Federal Register.  In addition, trade sources indicate that CBP may allow an additional 15-day grace period, realizing that 30 days may not be enough to prepare the industry for all the anticipated changes. 
  • CBP Allows Early Use of 2007 Lower Duty Rates:  Under its Immediate Delivery procedures, CBP may release most types of merchandise between December 15, 2006 and December 31, 2006 using lower 2007 duty rates.  With certain exceptions, e.g., quota merchandise, goods moved under Immediate Transport, certain TRQ merchandise, etc., goods released under Immediate Delivery may elect to use a 2007 entry summary date as the “time of entry” and take advantage of any lower 2007 duty rates and special preferential programs.
  • Congress Passes Trade Bill:  On December 8, 2006, the U.S. Congress passed an all encompassing trade bill (H.R. 6406) which among others things: 1) extends the Generalized System of Preferences (GSP) program for an additional two years (through 2008) and makes benefits more readily available to lesser developed countries; 2) provides a tax credit for investing in eligible countries under the  African Growth and Opportunity Act (AGOA); 3) provides additional preferential trade treatment to certain eligible articles from Haiti; 4) extends preferential treatment to imports from the Andean countries of Bolivia, Colombia, Ecuador, and Peru for an additional 6 months past December 31, 2006, with a possibility of an additional 6 month extension; and 5) grants Vietnam Permanent Normal Trade Relation (PNTR) status.
  • Proposal to Raise Agricultural Inspection Fees:  The U.S. Agricultural Marketing Service (AMS) is seeking comments by January 2, 2007 on its proposal to raise by 15% the inspection and certification fees required for certain fresh fruits, vegetables, and nuts; http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-20315.pdf .
  • “Natural” Claim for Meats to be Defined:  The U.S. Department of Agriculture is seeking comments by January 11, 2007 on a private petition to statutorily define the term “natural” as it is to be used with regard to meat.  Details are available at: http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/06-9546.pdf .

 

TRADE TALK

 

  • Ecuador FTA Not Likely:  Ecuador’s new President-elect recently announced that his country is not interested in signing a free trade agreement (FTA) with the U.S.  While the U.S. Congress granted a 6-month extension to ATPDEA which grants preferential treatment to goods from Ecuador, it conditioned an additional 6-month extension only to those Andean nations who are in the midst of negotiating a FTA with the U.S. 
  • Special Steel Tariffs Revoked:  The U.S. Commerce Department voted to remove most of the emergency special tariffs and duties imposed on imported steel in place since 1993.  Carbon steel plate and corrosion-resistant steel sheet will no longer be subject to special tariffs except from Germany and Korea.  This action may still be appealed by the domestic industry to the U.S. Court of International Trade (CIT).     

       

WORLD TRADE ORGANIZATION (WTO)

 

  • Vietnam:  Following its ratification of its WTO accession, Vietnam is scheduled to become the WTO’s 150th member on January 11, 2007.  Apparel and textile exports after that date will not be subject to quota and ELVIS requirements.  It is not known whether quota will be required for exports between January 1, 2007 and January 11, 2007.

 

  BUSINESS BRIEFS

 

  • APHIS to Review Use of Methyl Bromide:  The Animal and Plant Health Inspection Service (APHIS) is analyzing the way methyl bromide is used with regard to solid wood packaging materials (SWPM).  Imports of SWPM (mostly used in packaging) must be heat treated or fumigated with methyl bromide.   APHIS will review how other countries comply with the new SWPM rules and whether the fumigation method is preferred over heat treatment, thereby increasing the use of methyl bromide, or the other way around.

 

 

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