Trade Innovations Logo
In This February Issue
Upcoming Events and Save the Date
Trade News Briefs
The Penalty Box
Quick Links
Global Training Center

C-TPAT the Road to Certification

TII Principal Michael Laden will present two half-day seminars on the Customs-Trade Partnership Against Terrorism (C-TPAT) hosted by Global Training Center.  

Two events are scheduled for 2015; Wednesday, February 25th, and Thursday, May 14th.  Both sessions begin promptly at 9:00 am (central time).  
Mr. Laden will discuss the necessary steps for building an efficient and cost-effective C-TPAT program and for attaining C-TPAT Certification or Re-Validation.

This course is perfect for those considering the merits of the program, just beginning the C-TPAT journey or as a refresher before Validation or Re-Validation.  
 
Space is limited and advanced registration is required.  

For more information or to register for this event please follow this link:   Global Training Center - The Road to C-TPAT Certification

February 11
Los Angeles Customs Brokers & Freight Forwarders Association
Anti-Dumping & Countervailing Duty

February 17 - 18
AAEI Winter Seminar
Houston, TX

February 22 - 24
ICC and USCIB Trade Facilitation Symposium
Miami, FL

February 25
C-TPAT Road to Certification Webinar

March 3 - 4
CBP ACE Software Developer Session
Washington, DC

March 15 - 19
ICPA Annual Conference
 Ft. Worth, TX

April 19 - 22
NCBFAA Annual Conference
Orlando, FL

May 6 - 8
WCO IT Conference & Exhibition
Bahamas

May 14
C-TPAT Road to Certification Webinar

May 31 - June 2
AAEI Annual Conference
Arlington, VA

June 7 - 9
ICPA EU Compliance Conference
Berlin, Germany

 

June 17 - 26

WCO Knowledge Academy

Brussels, Belgium

More Info/Register 

 

October 27 - 29

WCO 5th Technology & Innovation Forum

Rotterdam, the Netherlands

More Info/Register 

 

November 2 - 3

The 28th Annual
Global Trade Controls & Compliance Conference

London, UK

More Info/Register 
Trade Update


Welcome to the February 2015 edition of the Trade Update.  The Trade Innovations team is committed to providing timely, accurate, and unique approaches to customs and supply chain security compliance. With the growing complexity of trade compliance rules and regulations in which companies engaged in global trade must be aware, we are passionate in our efforts to keep the trade community informed.  It is in that spirit that we offer this newsletter to you.  The Trade Update is published on the first Wednesday of every month.  

   

Our team stands ready to assist you and you with your customs and supply chain security programs. The Principals of Trade Innovations have a broad background in customs compliance, supply chain and global security and we are confident that our approach will fit your unique challenges and opportunities. 

 

Please share!  Feel free to circulate our newsletter to your social media network, we appreciate the exposure and it's the only way we cultivate new readers.  Share buttons may be found in the upper left-hand corner and you can Forward this e-mail by scrolling to the bottom section.    

 

Thank you for taking time from your schedule to peruse our newsletter.  We may be reached via e-mail at info@tradeinnovations.com or by telephone at 952.975.9099.    

 

Sincerely,

 

The Trade Innovations Team  

Trade News Briefs
Relevant News for Trade Professionals

Broker's Triennial Report Due
Starting from 1985 and every three years thereafter a status report and fee must be submitted to U.S. Customs and Border Protection (CBP) for every license that has not been previously revoked, suspended or canceled, whether it may be a license for a corporation, limited liability company, partnership, association, or individual.  Some brokers who have had their licenses suspended may be required to submit a status report and fee depending upon the conditions of the Suspension Agreement enacted between CBP and the individually licensed broker.  (more follows)

To read the entire article or to download a copy of the Triennial Report Form please follow this link:  

Idle Ships at Anchor off west coast ports
U.S. West Coast Lockout Looming?
If you are one of the many companies being affected by the labor negotiations along the U.S. west coast; get ready, things may get much worse early next week.  Rumors are swirling and when that happens we're usually on the verge of a settlement or a turn for the worse.  Some of it could be posturing, but if past performance is any indication, we suggest that you take it seriously.  Rumor has it that management may begin a gradual lockout as we head into this weekend and unless there's a last minute agreement a full blown lockout could occur as early as next week.  Such was the case in 2002, when the Pacific Maritime Association (PMA) declared the talks to be at an impasse and locked out International Longshore and Warehouse Union (ILWU) workers for 10 days.

Meanwhile, reports late last week and early this week indicated that significant progress was being made in the protracted talks between the PMA and the ILWU.  According to recent reports in The Maritime Executive, a tentative agreement has been reached on one of the stickier issues; chassis, although the details of the agreement have not been disclosed.    

This progress notwithstanding the Journal of Commerce reported over the weekend that 19 ships were at anchor in the LA-Long Beach ports awaiting a berth.  As the dramatic Before and After pictures depict below, congestion at west coast terminals is unprecedented.  The gridlock is the end result of three factors, tense and sometimes contentious labor negotiations, a chassis shortage and larger ships.  The ILWU has been working without a contract since July of last year and work slowdowns have contributed significantly to the bottlenecks.       
Congestion
Dramatic Before and After pictures of west coast terminals.  Credit:  Kurt Mann  Trans-Trade, Inc.

In January, at the request of both parties in the negotiations, the U.S. Federal Mediation and Conciliation Services (FCMS) entered the negotiations and collective bargaining between ILWU and PMA representatives.  As is Agency practice, the FMCS is not releasing information regarding future meeting dates and locations. In addition, the FMCS will have no further comment at this time regarding the status or substance of the negotiations. 

CBP Publishes ACE Trade User Satisfaction Survey
CBP invites you to take the Automated Commercial Environment (ACE) Trade User Satisfaction Survey for Available Capabilities through Calendar Year 2014.  

CBP wants your feedback on benefits and issues you are experiencing with ACE.  Your participation is completely voluntary and anonymous, if desired.  The survey should take approximately 10 minutes to complete.  Your feedback will provide valuable insights into the operational benefits of ACE and help CBP identify areas that need improvement.  All comments are welcome and appreciated.

The survey will close at midnight on February 13, 2015.

To take the CBP ACE User Survey please follow this link:  CBP ACE Trade User Survey

CBP Publishes Updated ABI Software Vendor List
CBP has published an updated list of ABI Software Vendors.  To download an Adobe copy of this list please follow this link: 2015 ABI Software Vendor List 

DHS Releases 2014 Trade Statistics
The U.S. Department of Homeland Security (DHS) has published trade statistics for 2014. According to the report, U.S. Customs and Border Protection (CBP) processed more than $2.4 trillion in trade, an increase of more than four percent (+4%) from 2013, while enforcing U.S. trade laws that protect the nation's economy and the health and safety of the American public. CBP also processed more than 31 million imports.

China, Canada and Mexico remain the top three U.S. import trading partners. Special programs and Free Trade Agreements represented approximately 30 percent of total U.S. imports, with the North American Free Trade Agreement (NAFTA) and the recently enacted South Korean Free Trade Agreement leading the way.

Duty collection remains a CBP priority and the agency collected more than $34 billion in duties in 2014, an increase of two percent from 2013.  (more follows)

To read the entire article or the DHS Press Release please follow this link:  DHS Releases 2014 Trade Statistics

Centers of Excellence and Expertise Implementation of Phase 1 Accelerated Roll Out
CBP has issued CSMS #15-000040 titled Centers of Excellence and Expertise Implementation of Phase 1 Accelerated Roll Out.  On January 28, 2015, the three Center Directors (Electronics, Pharmaceuticals Health & Chemicals and Petroleum, Natural Gas & Minerals) assumed trade authority for post-release trade processes of entry summaries for the respective industry tariff lines.  (more follows)

To read the entire article or see a list of the ports affected please follow this link:  Post-Release Authority Granted to CEE's 

CBP Updates Snapshot
CBP has updated Snapshot, a summary of CBP facts and figures.  If you have a presentation coming up where you might need an overview of CBP or some statistics we recommend that you save a copy of this document.  

To download an Adobe copy of the updated document please follow this link:  CBP Snapshot 2015

Department of Justice FY-2016 Budget
President Obama's FY 2016 budget proposal totals $28.7 billion for the Department of Justice to support federal law enforcement priorities and the criminal justice priorities of our state, local and tribal law enforcement partners.  The request represents a comprehensive investment in the Justice Department's mission and includes increases in funding for countering violent extremism and other national security areas, civil rights and advancing equality under the law, Smart on Crime activities, including increased funds for prisoner reentry initiatives, and other key enforcement initiatives.  The request represents a $1.3 billion increase over the comparable FY 2015 enacted level.

2015 Harmonized Tariff Available
The International Trade Commission (ITC) has published the 2015 edition of the Harmonized Tariff Schedules of the U.S. 

To download an Adobe copy of the 2015 Harmonized Tariff please follow this link:  2015 Harmonized Tariff Schedules of the U.S.

ADD/CVD Scam Alert
CBP has issued CSMS #14-000642 titled "Beware of
Scams to Avoid ADD/CVD Duties." Importers of items or goods subject to anti-dumping (ADD) or countervailing (CVD) duties should take special note of this Alert. According to the CBP Alert, some importers of goods covered by ADD/CVD duties have received e-mails offering a "solution" to avoid ADD and CVD.  CBP provided an example of such an e-mail:

Dear purchasing manager,

We have been exporting for many years from China, especially USA and Canada. If you need this product, please tell me, so I can quote you. 

Please do not worry about the dumping duties. This order will be operated through the intermediary trade. We will send the goods to a third country; the forwarder will repack our goods for export with other company title from that third country. It is a legit business.

Importers must be acutely aware of such offers and the trade compliance area should be providing specific ADD/CVD training to individuals who purchase, acquire or otherwise procure imported goods.  Such schemes and/or scams should be incorporated into this training, along with rebates, fraudulent description, and illegal transshipment.  Such e-mails if received should be forwarded to the importer's trade compliance area for referral to CBP and Immigration and Customs Enforcement (ICE). 

To read the entire CSMS or to review and download other ADD/CVD information please follow this link:   ADD/CVD Scam Alert

2015 Federal Holidays
CBP has issued CSMS #14-000632 listing Federal Holidays for 2015. They are as follows:

Thursday, January 1 - New Year's Day 
Monday, January 19 - Birthday of Martin Luther King, Jr. 
Monday, February 16 - Washington's Birthday 
Monday, May 25 - Memorial Day 
Friday, July 3  - Independence Day 
Monday, September 7 - Labor Day 
Monday, October 12 - Columbus Day 
Wednesday, November 11 - Veterans Day 
Thursday, November 26 - Thanksgiving Day 
Friday, December 25 - Christmas Day

To read the CSMS please follow this link:  2015 Federal Holidays


$3.2M for Conspiracy to Supress and Eliminate Competition 
An automotive parts manufacturer based in Gunma, Japan, has agreed to plead guilty and to pay a $3.2 million criminal fine for its role in a conspiracy to suppress and eliminate competition for the purchase of compressors used in air conditioning systems sold to Nissan North America Inc. for installation in vehicles manufactured and sold in the United States and elsewhere, the Department of Justice announced today.

According to a one-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, the company conspired to fix the prices of compressors sold to Nissan. In addition to the criminal fine, the company has agreed to cooperate in the department's ongoing investigation. The plea agreement is subject to court approval.

Including this penalty, 33 companies and 50 individuals have been charged in the department's ongoing investigation into price fixing and bid rigging in the automotive parts industry.  All of the charged companies have pleaded guilty or have agreed to plead guilty and to pay a combined total of more than $2.4 billion in fines.  (more follows)

To read the entire DOJ Press Release please follow this link:  DOJ Press Release

$13.5M for Price-Fixing on Ball Bearings
The U.S. Department of Justice (DOJ) has announced that a small sized bearings manufacturer based in Nagano, Japan, has agreed to plead guilty and to pay a $13.5 million criminal fine for its role in a conspiracy to fix prices for small sized ball bearings sold to customers in the United States and elsewhere, the Department of Justice announced today.

According to a one-count felony charge filed today in U.S. District Court for the Southern District of Ohio in Cincinnati, the company conspired to fix the prices of small sized ball bearings in the United States and elsewhere.  In addition to the criminal fine, the company has agreed to cooperate in the department's ongoing investigation.  The plea agreement is subject to court approval.  (more follows)

To read the entire article or the DOJ Press Release please follow this link:  $13.5M for Price-Fixing on Ball Bearings

Shipping Executive Gets 18 Months and Fine
An executive of Japan-based ocean carrier has pleaded guilty and was sentenced to 18 months in a U.S. prison for his involvement in a conspiracy to fix prices, allocate customers and rig bids of international ocean shipping services for roll-on, roll-off cargo, such as cars and trucks, to and from the United States and elsewhere, the Department of Justice announced on January 30.

According to the one-count felony charge filed today in U.S. District Court for the District of Maryland in Baltimore, the Executive, who was at various times an assistant manager, team leader and general manager in the carrier's car-carrier division, conspired to allocate customers and routes, rig bids and fix prices for the sale of international ocean shipments of roll-on, roll-off cargo to and from the United States and elsewhere, including the Port of Baltimore. The Executive participated in the conspiracy from at least as early as April 1998 until at least April 2012.  (more follows)

To read the entire article or the DOJ Press Release please follow this link:  Shipping Exec Gets 18 Months and Fine

$2.6M for Failure to Report a Defective Product
The U.S. Consumer Product Safety Commission (CPSC) announced in January that a Wisconsin company has agreed to pay a $2.6 million civil penalty and abide by a permanent injunction.

In a complaint filed on behalf of CPSC by the Department of Justice in U.S. District Court for the District of Oregon, the government charged that the company knowingly failed to report to CPSC immediately, as required by federal law, a defect and an unreasonable risk of serious injury involving one of its products.

To read the entire CPSC Press Release please follow this link:  $2.6M Penalty for Failure to Report Defective Product