In this issue:

• 2007 Tariff Updates – Practical Tips for Keeping Up with the Changes
• A Successful Annual Meeting
• From the President
• Welcome, New Members!
• Calendar of Events

Countries using the Harmonized System nomenclature, including the United States, are implementing significant changes to their tariff schedules that began January 1, 2007. Importers and exporters are not yet in a state of panic because there is a grace period to bring their procedures into compliance with these changes.

Here are some tips to help you get a handle on your 2007 classification data updates:

• Use the US HTS Tariff (Import Tariff) for both export and imports. AES states that you can do this provided you know the exceptions. You save half the time because there is only one database to make updates for all materials.

• Have your IT download all exported/imported items for the past two years to an Excel spreadsheet by part number, description, and current HS code to filter, sort and cleanse.

• Use the 2007 change info on the TIC website to flag those chapters that your products fall under so you can research and update. Dig in to the process!

• Be careful not to self blind. Not all exporters are classification experts. Assemble a team to get the job done. This is not a one-time shot; there will be changes again next year! Classification is an ongoing process.

• Update your company classification training. Exporters/importers should know the process. Use worksheets to show who and/or what was consulted—engineers, developers, product specs, brochures, intranet—to help classify to determine what your product is, what it is used for, and what function it has. Descriptions are often not what the product really is.

• Purchase a hard copy of the 2007 Tariff from the U.S. Government printing office.

• Take advantage of free versions of the 2007 Tariff located online, such as at www.usitc.gov/tata/hts/.

• Read classifications details—especially the chapter notes. This is important!

• Buy the explanatory notes (available from orders@mcmullinpublishers.com).

• Be proactive: initiate a process up front to classify new products instead of waiting until your products arrive on the shipping dock.

• Create a table of classifications for commonly shipped miscellaneous non-product items.

• Benchmark other binding rulings similar to your products using CROSS or tools like Customs Info to confirm that you are in the correct chapter and on the right track with your compliance.

• Make sure your documents contain the HS classification by line item so Customs does not have to guess what the items are in this heightened era of security. Again, enhance your descriptions to clarify what the item really is!

• Share updates with your broker, freight forwarder, and carriers to avoid delays.

• Use a Shipper’s Letter of Instruction Form (SLI). This is always a good communication tool to provide clear and accurate information.

• Determine which rates of duty have increased or decreased by export/import lane.

Note: Online and print HTS Chapter 99 has not been updated for WCO changes. NAFTA has not been released for 2007.

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The 2007 Annual Meeting was a success, with a crowd of 235 members on hand to enjoy an evening of networking, great food, and live entertainment. The Metropolitan location allowed for more room to mingle and reconnect with members. A bonus of the new location was the stage area that allowed for an exciting performance by the Mu Daiko drum ensemble. The ensemble played numerous pieces for 45 minutes in a dramatic fashion that focused on precision drum beats and precision choreography.

As required by charter, financial information for the 2006 year was provided to members, along with remarks from incoming President John Novak of Bremer Bank. Outgoing board members were acknowledged for their service and new board members were welcomed. A special note of thanks was made to Sandy Taylor, who coordinated the event.

The evening would not have been complete without our traditional drawing of door prizes. MGTA would like to thank all of the sponsors and door prize contributors who made the night an enjoyable and memorable event for the membership. Congratulations to Kari Basa of Phoenix International, winner of the grand prize (a pressure washer donated by Northern Tool)!

A special thanks to all our sponsors:

Wonderful door prizes were given by:

Special thanks again to Northern Tool & Equipment and Polaroid Consumer Electronics, LLC, for the pressure washer, LCD television and wine coolers, which were our grand finale prizes of the evening. Special thanks also to Manhattan Toy Company for supplying tabletop door prizes.

Next year’s Annual Meeting is being planned for the same location.

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MGTA and I welcome you to the new year! I trust that those of you who were at our annual meeting at the Metropolitan had a very enjoyable time. On behalf of the Board, I would like to thank and extend our appreciation to those who sponsored and/or donated gifts for the event.

At the annual meeting, you should have seen on your table an overview of last year, along with our goals for 2007. I am looking forward to serving out my last year on the board as MGTA’s President. MGTA has grown since its inception through the hard work of the volunteers and Board members, and I foresee the same as we move forward. The Board is continuing its commitment to our members to offer networking events, well-rounded educational seminars, and listen to members’ needs.

I wish to personally recognize and thank our outgoing president, Mike Miklas, and our outgoing board members, Bonnie Anderson and Jason Ickert, for their efforts and dedication to MGTA. Adding to our existing board, I welcome our newest members, Tom Habermann and Beth Pickering. I also welcome our returning board members, Mari McClafferty and Sandy Taylor.

The MGTA Board is looking forward to a very productive year for education and networking. April will bring to you a very timely and informative program on the Uniform Customs and Practice for Documentary Credits – UCP 600 and, in August, we will hold our annual golf outing at Rush Creek Golf Club. I will be working very closely throughout the year with Lisa Larson, our Director of Client Services at the MGTA administrative office, to ensure a smooth-flowing and well-run association. Our mission this year will remain basically as it was last year:

• Continue to excel in providing relevant education programs.
• Continue to develop networking opportunities for our membership.
• Enhance communication and services through a job board and updated newsletter.
• Empower individual committees to grow MGTA through their contributions to our mission.

On a final note, we want to continue to hear from you about what MGTA can do to provide the maximum value of your membership. We also want to remind you that this association exists based upon its volunteers. Please let the MGTA office or me know if you have any interest in volunteering a small amount of your time.

I would like to thank all of the members of the Board of Directors and committees that are busy working to make 2007 a year of continued excellence for MGTA.

Sincerely,
John Novak, President

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The following individuals have joined MGTA since January 1, 2007. Welcome!

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Learn more about these and other upcoming events at www.mgta.org.

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