In this issue:

• The Forum is back at MGTA!
• From the president
• Items of interest
• Upcoming compliance events
• Welcome, new members!
• MGTA calendar of events

Forum – A public meeting or lecture involving audience discussion.

On June 28, 2007, Attorney David P. Street (with Galland, Kharasch, Greenberg, Fellman & Swirsky, P.C., Washington DC) spoke on export and import regulatory compliance with the discussion around involvement in shipper’s associations—the idea being that companies involved in the same type of trade can benefit by consolidating shipments with companies that ship similar commodities. Exporters can use the buying power of many versus the “lone ranger” exporter when dealing with the various carriers. David discussed the U.S. Department of Justice Safe Harbor Guidelines and the importance of reviewing the service contracts and select clauses.

David gave a very layperson-type overview on export and import compliance. A list of all the agencies that are involved in international trade was insightful, along with BIS settlements with freight forwarders. It’s always refreshing to get an overview that takes complex issues and makes them easy for management to understand.

David provided U.S. Customs and Border Protection statistics for a typical day. To name a few, CPB employs 42,000 employees; manages 326 ports of entry, 85,300 customs entries, and 70,900 truck, rail and sea containers arriving in the U.S.; and made 2,984 arrests for illegal entry into the U.S. This demonstrated the importance of all compliance roles and partners at the Forum!

On the export side, the audience was asking how a company can tell if they will be on the U.S. Census Bureau audit list. I was able to help with that reply, as I had just gotten back from speaking at the 86th Annual American Association of Exporters & Importers Conference in New York on a panel with the head of the agency, Bill Bostic. Those exporters falling below 95% on their AES Report Cards will undergo more scrutiny and visits. Interaction in a Forum by attendees makes it more informative and real!

For importers, David mentioned that security is critical with the Import 10 + 2 Data Requirements, which include key information such as the names and addresses of the manufacturer, seller, consolidator, buyer, shipping recipient, importer of record, as well as the container stuffing location, consignee number, country of origin, and six-digit HS code. Freight rorwarders in the audience discussed how important companies’ involvement in programs like the SAFE Port Act, the Secure Freight Initiative, and C-TPAT (Customs Trade Partnership Against Terrorism) are in case of another event. Participation in a Forum makes it lively!

During my many years of MGTA membership, I can recall past successes with Forums. I am happy that the Forum is back. The Forum has been revived by MGTA to involve senior management at your companies on current international trade topics. The MGTA Forum Committee welcomes suggestions from you, the MGTA membership, and volunteers on future Forum topics! Contact the Forum Chairs, Chad Laden (chad.laden@mgta.org) and Brooks Pavilack (brooks.pavilack@mgta.org) to volunteer for future Forum events.

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From the president

We are well into the summer, with more than half of 2007 past us. MGTA’s education “season” has ended and the committee has begun planning for the 2007/2008 season. I do hope everyone is enjoying the year so far. The mosquitoes certainly have not been much of an issue in certain parts of Minnesota!

With this issue, I would like to recognize all the hard work our volunteers have done to make our networking, education, social, and special events such great successes. If I were to mention everyone involved, it would be a lengthy list. There are a few special volunteers that I would like to shine the spotlight on:

• Our Education Committee, headed by Bonnie Anderson for so many years, has provided our association with well-attended seminars on issues of great interest to our membership. It was sad to see Bonnie step down as chair of this committee. Thank you, Bonnie, for all that you have done.
• Sandy Taylor coordinated the Annual Meeting and is currently coordinating the upcoming 2007 Golf Tournament.
• There have been changes to our Web site, and I wish to thank Whitney Docken for her past and continued work in this area.
• Christine Gates and Amelia Goeppinger have been working on a volunteer project for the Association. Briefly, this project defines those candidates expressing an interest, defines their roles, and provides training and follow-up.
• Lisa Larson (from Nonprofit Solutions) and I created an archive record from all board meeting motions since the formation of the MGTA.
• Theresa Walker brought the Basecamp program to MGTA, which enables all volunteer committees to keep in contact through a single platform.

As you can see, we have been hard at work bringing new ideas and innovation to the organization. As MGTA continues to expand, we can look to all of our volunteers as the strength of our organization. A heartfelt “thank you” to everyone who has contributed to our success!

Sincerely,

John Novak
President, MGTA

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Items of interest

World Tariff Profiles
The World Trade Organization (WTO) has published a document entitled “World Tariff Profiles,” which details data on “bound” and applied tariffs of the 150 member nations. See www.wto.org for more information.

Preferential Trade Agreements and Trade Programs Synopsis (Non-Textile)
U.S. Customs and Border Protection has posted to its website an updated PowerPoint presentation entitled “Preferential Trade Agreements and Trade Programs Synopsis (Non-Textile),” which outlines the criteria that imported articles must meet to qualify for preferential treatment under various trade agreements and programs. Details can be found at www.cbp.gov/linkhandler/
cgov/import/international_agreements/fta_provisions.ctt/fta_provisions.ppt.

Justice Department appoints first-ever national export control coordinator
The Department of Justice announced June 20 that it has appointed Steven W. Pelak, a veteran federal prosecutor, to serve as the department’s first-ever national export control coordinator. According to a DOJ press release, his position was created to improve the investigation and prosecution of illegal exports of U.S. arms and sensitive technology. In his new role, Pelak will be responsible for enhancing the capacity and expertise of DOJ prosecutors to handle such cases.

China Policy Rule

• Creates a validated end-user (VEU) program which authorizes the export, reexport, and transfer of eligible items to specified civilian end-users in an eligible destination, initially the PRC.
• Facilitates trade by expanding the requirement to obtain an End-User Statement from the PRC’s Ministry of Commerce for all licensed exports, with specific exceptions.
• Imposes a licensing requirement on exports of a targeted list of commodities, software and technology destined for a military end-use in the PRC.

Congress may have to break stalemate on mandatory AES
Shippers’ NewsWire reports that Congress may have to referee aspects of the 18-month impasse between the Department of Homeland Security and the Census Bureau over proposed regulations for mandatory filing of export declarations (mandatory Automated Export System). Regarding confidentiality of export information, DHS Deputy Secretary Jackson implied that, if the White House sides with DHS, it could seek a legislative exception that allows for blanket sharing of export data for national security purposes. (SNW, dated 06/21/07, www.americanshipper.com)

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Upcoming compliance events

Public session of the Deemed Export Advisory Committee (DEAC)
Bureau of Industry and Security
July 30, 2007
Chicago, IL

20th Annual Update Conference on Export Controls and Policy
Bureau of Industry and Security
October 31 – November 2, 2007
Washington, DC

ACE Exchange VI Conference 2007
July 30-August 1, 2007
Brooklyn, NY
More information
This FREE event has a new format and agenda to include future ACE enhancements.

Crossing Borders 2007: America’s Customs and Compliance Conference
September 18–21, 2007
Wyndham Peachtree Conference Resort
Atlanta, Georgia
More information

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Welcome, new members!

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

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MGTA calendar of events

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

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