This bulletin has been prepared especially for
clients of A. N. Deringer, Inc. by:
SERKO SIMON GLUCK & KANE LLP –
Customs & International Trade Law
January 25, 2007
CUSTOMS and BORDER PROTECTION (CBP)
- Coming Tariff Changes: Importers must review their
classifications and update their internal records to comply with the
new tariff changes coming into effect on February 3, 2007. Close to 2,000 classifications were
eliminated and almost the same amount of new classifications were
instituted. While CBP will allow a
grace period, through February 20, 2007, to correct any classification
error arising from the tariff changes, use of incorrect classifications
after that date may result in a denial of entry. Any rejected entry for classification reasons
during the grace period must be corrected within 48 hours unless a written
submission by the importer explains the need for additional time. No additional time will be allowed
beyond February 20, 2007.
- Early Use of New Tariffs: By using Immediate Delivery (I.D.) entry
procedures, CBP will allow importers to take advantage of the new tariffs
ten days prior to their taking effect, i.e., from January 22, 2007.
- Vietnam Textile Monitoring: The U.S. International Trade
Administration (ITA) is seeking industry input by January 31, 2007 on its
new monitoring program for certain Vietnamese textile and apparel
categories. In order to gain
congressional approval for Vietnam’s
permanent normal trade relations status (PNTR) the U.S.
administration promised to monitor imports of Vietnamese textile and
apparel and self initiate antidumping (AD) procedures should a sharp
increase in imports justify it. The
ITA is currently monitoring imports of shirts, sweaters, swimwear,
trousers, and underwear and has established the following e-mail hotline, vietnam-texapp-monitor-hotline@mail.doc.gov,
to make it easier for interested parties to provide input, suggestions, or
post questions.
- New SNAP-R Export Filing System: The U.S. Bureau of Industry and Security
(BIS) announced that effective January 15, 2007, the new Simplified
Network Application Process-Redesign (SNAP-R) has replaced the old SNAP
electronic filing system. The new
SNAP-R is the only BIS electronic filing system available for export
license applications, exception notices, and commodity classification
requests. Paper forms are still
acceptable. A BIS user manual for
the new SNAP-R system is available at: http://www.bis.doc.gov/snapr/SNAPR_Exporter_User_Manual.pdf
(6.16MB).
TRADE TALK
·
Malaysia FTA: Officials in the Office of
the U.S. Trade Representative (USTR) indicated that it is still possible to
complete negotiations to reach a FTA with Malaysia before the end of
March. The end of March date is
important as it will still allow any agreement to be presented to the President
under his Trade Promotion Authority (Fast Track Authority), which expires on
June 30, 2007, as any agreement must be presented to Congress 90-days prior to
signing by the President.
·
Fair Trade
Developments: The U.S. Commerce Department decided
to keep in place its AD order on certain stainless steel bars from Brazil, India,
Japan, and Spain.
WORLD TRADE ORGANIZATION (WTO)
- WTO AD
Report: In its latest semi-annual report on AD
activity, the WTO found that 87 new AD investigations were filed during
the first half of 2006 versus 105 during the first half of 2005. The most new cases were filed against India (20), followed by the EU (17), Australia (9), and Argentina, Indonesia,
and Turkey
(5 each). China was the target of the most
investigations (32), followed by the U.S.
and Taiwan (6 each), Thailand (5), and the EU, Japan, Korea,
and Malaysia
(4 each). “Base metals” was the
product category subject to the most investigations (19), followed by
machinery (16), plastics (13), and chemicals (11).
- Canada Files Complaint Against U.S. Corn Subsidies: Canada recently filed a complaint at the
WTO against U.S. farm
subsidies to corn growers, particularly, the $9 billion paid out annually
in export guarantees and other subsidies, which according to Canada
unfairly depress prices and cause harm to its own producers.
BUSINESS BRIEFS
- First
Pricing Agreement with China: The U.S.
Internal Revenue Service (IRS) announced that it has reached its first
advance pricing agreement (APA) with China involving one of the world’s
largest retailers. ATA’s are used
to resolve transfer pricing issues, provides pricing certainty, and seeks
to resolve double taxation issues.
- Food
Shorts:
“Gluten-free” Label – The FDA is proposing to allow manufacturers to label their products
as “gluten-free” when a food which originally contained the gluten protein has been
processed to remove that protein; comments are due by April 23, 2007. Additional information can be accessed
at: http://www.cfsan.fda.gov/~dms/glutqa.html
Potato and Mushroom Research Charges Unchanged – The AMS announced that the Potato Research and
Promotion Program and the Mushroom Promotion, Research, and Consumer
Information Order will continue without any changes.
Mexico Caps Corn and Corn Flour Prices – With tortilla prices rising more than three times
the inflation rate last year alone, Mexico signed an accord with that country’s
corn flour and tortilla suppliers capping the price of corn flour at 5 pesos
($0.46) per kilogram and corn at 3.5 pesos ($0.32) per kilogram. Tortilla is a basic staple of the Mexican
diet and the meteoric rise in prices, blamed by a large shift to U.S. ethanol plants and gouging Mexican middlemen,
threaten the economy of millions of families, according to Mexico’s
President.
·
CPSC Developments:
Car Seat Test Results Retracted – Consumer Reports Magazine retracted its recent report
on results of car seat tests done at 35 and 38 mph. In its original report, the magazine
indicated that most of the rear-facing car seats tested “failed disastrously”
at 35 and 38 mph. However, the National
Highway Traffic Safety Administration (NHTSA) stated that the tests in which
the car seats failed were done at speeds as high as 70 mph and they performed
as expected at the lower speeds. NHTSA
and the magazine are urging all parents to continue placing their children in
car seats when traveling.
Ban on Children’s Lead Containing Metal Jewelry
Considered – The CPSC is seeking comments
by March 12, 2007 on a petition seeking to ban the sale of children’s jewelry containing
more than 0.06% lead by weight. Comments
are sought concerning the risk of injury to children, regulatory and voluntary
options, and the economic impact of a ban.
The CPSC may, among others: 1) issue a mandatory ban; 2) require
specific warning labels; or 3) accept a voluntary industry standard.
Mandatory
Labeling of Portable Generators –
Effective March 14, 2007, the CPSC will require strict safety warnings,
including pictograms, for all portable generators.
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. ©2007