WHATS NEW
-for more information on anything please feel free to contact us.
Container Seals New Requirements - Posted 08/18/08
Customs has issued their final ruling on the new seal requirements for all containers
arriving by vessel at any US port of entry - even if it is not being discharged.
The seal must meet the ISO/PAS 17712 for freight containers - Mechanical Seals.
The new seals will be stronger and more durable and will be able to detect tampering. Please be sure to notify your suppliers of the new regulations because penalties will be issued for containers arriving the US on or after October 15, 2008. If you have any questions please give us a call or click here to read the federal
register.
Textile Importer, NO DETENTION ???? - Posted 05/13/08
The US Customs and Border Protection states in a memorandum that they will be more lenient on their detention policy for textile importers that are members of the Importer Self Assessment (ISA) Program.
In a quote from the NCBFAA "The new policy exempts ISA members from detentions and provides that CBP will seek to verify origin on a post-entry basis rather than detaining the cargo until production
documents can be submitted and vetted by CBP to confirm the origin of the goods." Another benefit of the program is that ISA member will have the opportunity to discuss documentation issues with the
import specialist who requested the documents and can even involve Headquarters in the document review without having to file a formal protest.
More Agriculture Exams - Posted 05/13/08
According to CBP Agriculture Inspectors, there have been incidences of counterfeit Solid Wood Packing (SWP) stamps on wood packing therefore inspectors will be increasing the amount of AQI exams.
Please be sure to notify your suppliers since the only remedy for unfumigated and falsley stamped wood packing is export and possible fines. Even if the wood packing appears to be stamped it
may be a counterfeit stamp or an old stamp - fumigation does not last forever so make sure your suppliers are using recently stamped wood packing that has not become infested months after fumigation.
Chinese Factories Close for Olympics - Posted 04/30/08
The opening ceremonies for the 2008 Summer Olympics in Beijing China are August 8th. At the very bottom of this email is an article titled China’s Smog Shutdown concerning factory closings in Northern China in an attempt to clean up the air prior to the start of the Olympics.
In addition we have included some links, in no particular order, to other articles concerning this subject.
If your company sources product from a factory located in Northern China or adjacent ports, please be sure to communicate with them closely concerning production schedules and possible closings. As always, we are here to help, so if there is anything we can do to assist please do not hesitate to ask.
All Roads Lead to China
New York Times
BBC
NPR
CHINA ANNOUNCED THE SHUTDOWN OF ALL POLLUTING FACTORIES FOR 9 WEEKS -- JULY 17 TO SEPT. 20 -- WITHIN A 200 KILOMETER RADIUS OF BEIJING TO CLEAR THE SMOG FOR THE OLYMPICS AND PARALYMPICS.
RADIUS COULD EXPAND IF AIR QUALITY DOES NOT IMPROVE SUFFICIENTLY PRIOR TO OLYMPICS. ALSO THERE COULD BE A SHUTDOWN OF MATERIAL TRANSPORTATION, AND EVEN POWER PLANTS TO CLEAR THE AIR.
OTHER CONCERNS IS THAT THERE COULD BE BOTTLENECK TO THE TWO MAIN PORTS. [Note: This will likely occur before and after this time period where containers are either moved up early or to catch up later]
Areas Affected:
· Beijing and Tianjin. These will be FOB Tianjin (Xinggang) port shipments. In particular, check D22, D23, D32, D34, textile and apparel factories. D27 won’t be in production during this time period
· Hebei Province. This is province surrounding Beijing. FOB Tianjian (Xinggang) port. In particular, check D22, D23, D32, D34, textile and apparel factories
· Shanxi Province. This is province just west of Beijing. FOB Tianjin (Xinggang) port. In particular, check D22, D23, D34, textile and apparel factories
· Inner Mongolia. This is the autonomous region to the north and west of Beijing. Most likely textile and apparel factories, including cashmere
· Shandong Province. These will be FOB Qingdao port shipments. We have many factories in many departments located in this province
Potential Collateral Impact:
· FOB Shanghai and Ningbo. Pollution will also be very bad in this area in July and August. Factories in and transportation to / from Zhejiang and Jiangsu provinces could be affected as Shanghai is a major port of entry / exit for Olympic and Paralympics visitors. Ningbo is alternative port to Shanghai, which could become very congested with diverted containers
· FOB Yantian, Shenzhen and Hong Kong. Don’t think these will be severely impacted, although tourists will enter / exit via Hong Kong. Pollution is also quite bad in the southern part of China. Slowdown may occur to clear the air
China's Smog Shutdown
Beijing Closes Factories
In Bid to Clear the Air
For the Olympics
By MEI FONG
February 28, 2008; Page A11
BEIJING -- China's government, struggling to contain what could be an embarrassing air-pollution problem during the Beijing Olympics, is ordering the closure of certain factories across a huge swath of northern China ahead of this summer's Games.
Six provinces and municipalities -- Hebei, Inner Mongolia, Shandong, Shanxi, Tianjin and Beijing -- have already started shutting down polluting factories and curbing power-plant production in an ambitious attempt to cut down on air pollution. Collectively, these provinces represent an area larger than France, Germany and Italy combined, but pollutants from factories far from Beijing are believed to be partially responsible for the capital's often smoggy air.
Du Shaozhong, deputy head of the Beijing Environment Protection Bureau, said Beijing is cooperating closely with these provinces "to ensure good air quality for the Olympic Games," which begin Aug. 8.
He said authorities have closed an unspecified number of factories in Beijing, Tianjin and Hebei, particularly cement, coke and small-sized steel producers. "Seventy percent of these targeted enterprises in the program have been eliminated," he said at a news conference.
In Beijing, there also are plans to curb the use of autos and halt construction before the Games to clear the air. Mr. Du declined to give details of Beijing's plans to curb traffic, saying they would be announced later. City officials have been considering a plan to cut by half the number of cars on its roads during the Games. "We will do something to control heavy enterprises and take some cars off the roads," Mr. Du said.
Part of the city's massive construction works could also stop as early as May, according to people in the industry.
The steps are aimed at curbing the high levels of air pollution in Beijing, which may affect the performance of athletes during the Games. Officials are also planning other grand measures, such as diverting water from outlying provinces to Beijing to ensure water supplies, as part of their efforts to present China in the best possible light.
In August, levels of smog in Beijing were so visibly bad that International Olympic Committee President Jacques Rogge said during a live CNN interview that some events might have to be rescheduled, a source of embarrassment to Chinese officials.
The full extent of the pre-Olympic closures remains uncertain because authorities are weighing a multitude of contingency plans against Beijing's shifting pollution and smog levels. If the situation worsens, authorities may even consider a more sweeping shutdown of scores of power plants across northeast China, according to industry executives.
Beijing has long needed to crack down on badly polluting factories, which local governments have often resisted because they bring jobs and economic growth. While the Chinese government has been pushing nationwide environmental measures, the coming Olympics appear to have accelerated the closure or suspension of many plants in the less-industrialized north.
Analysts say Chinese officials are reluctant to release details about the closures for fear of damping economic investment in northern China, particularly in places such as Tianjin, a fast-rising industrial area where Airbus is building an assembly plant and some Motorola cellphones are made.
Andy Xie, an independent economist formerly with Morgan Stanley, estimates the effect of the Olympic slowdown on China's overall economy is likely to be small. Even without the Olympics, economists predict China's gross-domestic-product growth will slow this year, down from a record 11.4% growth in 2007 to perhaps 9% on the low end of predictions, thanks to slowing global demand and credit contraction.
Yet, the suspensions and closures are likely to have a much bigger impact on the region around Beijing, including major companies such as Beijing Eastern Petrochemical Co., China's largest manufacturer of polyvinyl acetate. Beijing Eastern is owned by China Petrochemical Corp., or Sinopec.
One plant affected by the Olympic cleanup is a Beijing Eastern factory in southeast Beijing, which will be closed by the end of June, according to the Xinhua news agency. Workers at the plant confirmed that the factory -- which employs about 1,000 people -- will be suspending operations in May and reopening in a new facility in southwest Beijing at year's end. Many workers don't know what they will do in the interim, or if they will continue to receive their wages. "No one knows what will happen tomorrow," one worker said.
More than 40 other pollutant-generating factories in Beijing also will close this year, according to the Beijing Municipal Bureau of Industrial Development. The move, tied to the Olympics, follows the closure last year of some 29 factories in industries ranging from cement kilns to paper. Some 18 factories that voluntarily closed in 2007 were compensated with a total of $3 million, said an official at the bureau, who said these closures were to help clear the air before the Games.
In a news conference Tuesday, Shanxi officials said they had closed 24 factories recently. Wang Jian, a director at the State Environmental Protection Agency, or SEPA, said there would be more closures to come, in a campaign lasting from January to June. During the news conference, officials outlined measures such as stopping electricity and halting bank loans in order to coerce certain companies to close. Mr. Wang told reporters the closures were Olympics related.
Tianjin authorities also said in a recent news release they would reduce sulfur-dioxide emissions -- a toxic pollutant -- at power plants by 800 tons before May 10 as part of the cleanup.
--Kersten Zhang, Gao Sen and Shai Oster contributed to this article
10 + 2 RULE - ACT NOW - Posted 01/25/08
The 10 + 2 rule has been proposed by Customs under the SAFE Port Act to gather more data prior to vessels loading in foreign ports. The intention of this rule is for Customs to be able to stop potentially dangerous cargo from ever being loaded onto a vessel intended for the United States or reaching a port in the United States. With the trade community providing more data Customs will be able to screen all cargo data earlier which will eventually lead to less examinations and quicker releases by Customs.
You might be saying "I thought that was what the 24 hour rule was for" however that was 1 step and the data provided under the 24 hour rule is basic data which does not stop the loading of the container as long as something is provided. We have seen containers stopped by Customs because under the 24 hour rule the data transmitted by overseas was too general - foodstuffs, chemicals, etc. According to Customs this description is too general and under the 24 hour rule overseas consolidators are using these descriptions because it allows them to comply with the 24 hour rule when they do not have exact manifest details of the container they are shipping. Under the 10 + 2 rule the new data elements would be transmitted at the same time the 24 hour rule data was transmitted.
The 10 new data elements provided prior to container loading would be: Manufacturer Name and Address*Seller Name and Address*Container Stuffing Location*Consolidator Name and Address*Buyer Name and Address*Ship to Name and Address*Importer of Record Number*Consignee Number*Country of Origin of the Goods*6 digit HTS Number. By providing these 10 data elements prior to the vessel loading Customs will be able to stop dangerous cargo from loading and be better prepared to inspect questionable cargo once it arrives. As for the + 2 part of the rule - that data will be transmitted by the ocean carrier - Vessel Stowage Plan and the Container Status Message. So the next question is "Do I have to do anything?"
Under the proposed rule Customs believes that the importer (or it's designated agent) will be most likely to have knowledge of this data therefore Customs is developing a way for the data to be transmitted through the ABI system. In the future they intend to integrate the data submission to be done through the ACE portal. As of now Customs has released the Federal Register on this issue and is accepting comments from the Trade Community until March 15th, 2008. If you have more questions or would like to submit comments please feel free to call or email us and we can work together to make sure they are submitted to the correct parties.