Apr/May 12
Volume 9 | Issue 2

World Trader

International Maritime Organization Deems Internal Combustion Engine Vehicles as Dangerous Goods

Upcoming Events

Port of Duluth Receives Power Plant Components Destined for Canada
from Duluth News Tribune

Growing Export Opportunities of Agricultural Products and Equipment to India
by Chan Wahi, Best Direct Consulting – India Focused

Kids Against Hunger Event
by Rae Hale, General Mills

Country of the Month: Vietnam
by Kevin Johnson, Best Buy

Who Said it?


International Maritime Organization Deems Internal Combustion Engine Vehicles as Dangerous Goods

On January 1, 2012 Amendment No. 35 to the IMDG Code was made mandatory by the International Maritime Organization. This rule change deems all internationally shipped "vehicles powered by internal combustion engines, fuel cells or batteries” as hazardous under certain circumstances. Shippers and their export documentation staff should be aware that from January 1, 2012, articles with an internal combustion engine will fall within scope of the IMDG Code and must be notified to carriers as dangerous goods, UN 3166, Class 9, and a dangerous goods declaration and document are required for booking with ocean carriers. UN 3166 can apply to a wide range of articles including items such as motorcycles, automobiles, forklifts, ATVs, personal watercraft, tractors, aircraft, boats, or machinery with an engine that runs on gasoline diesel or flammable gas.

The following chart demonstrates the new requirements for Hazardous and Non-Hazardous Vehicles.

Special Provision 961
(Non-Hazardous Vehicles)
Special Provision 962
(Hazardous Vehicles)

There are no signs of leakage from the battery, engine, fuel cell, compressed gas cylinder or accumulator, or fuel tank when applicable;

The fuel tank(s) of the vehicle or equipment powered by a flammable liquid fuel is empty and installed batteries are protected from short circuit;

The fuel tank(s) of the vehicle or equipment powered by a flammable gas is emptied of liquefied or compressed gas, the positive pressure in the tank does not exceed 2 bar, the fuel shut-off or isolation valve is closed and secured, and installed batteries are protected from short circuit; or

The vehicle or equipment is solely powered by a wet or dry electric storage battery or a sodium battery, and the battery is protected from short circuit.

* For Non-Hazardous shipments, shippers may be asked to give a statement in writing stating their consignment meets the requirements of SP 961.

Vehicles and equipment shall not show signs of leakage from batteries, engines, fuel cells, compressed gas cylinders or accumulators, or fuel tank(s) when applicable;

For flammable liquid-powered vehicles and equipment, the fuel tank(s) containing the flammable liquid shall not be more than one-fourth full and in any case the flammable liquid shall not exceed 250 l;

For flammable gas powered vehicles and equipment, the fuel shut-off valve of the fuel tank(s) shall be securely closed;

Installed batteries shall be protected from damage, short circuit, and accidental activation during transport. Lithium ion or lithium metal batteries shall meet the requirements of the United Nations Manual of Tests and Criteria, Part III, subsection 38.3, unless otherwise approved by the competent authority; and

Dangerous goods required for the operation of the vehicle or equipment such as fire extinguishers, compressed gas accumulators, airbag inflators, etc., shall be securely mounted in the vehicle or equipment.

The marking, labeling and placarding provisions of IMDG Code shall not apply.

This rule, originally designed to prevent marine pollution, will require additional hazardous documentary obligations for several MGTA members currently involved in the shipping of such products. Classes on proper compliance are being taught by several organizations and plentiful resources can be found online by simply searching "IMDB Amendment No. 35”.

Source: International Maritime Organization, IMGDsupport.com and Patrick Michaels, SBS, Inc.

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AgCom

Upcoming Events

Harmonized System Product Classification and HTSUS Workshop

May 23, 2012
Ewald Conference Center, 1000 Westgate Drive, Saint Paul, MN 55114

You will get a basic understanding of the classification system using the HTSUS for inbound and outbound shipments. The seminar will also cover the General Rules of Interpretation, section notes, chapter notes, subheading notes, explanatory notes, the CROSS system and the role each plays in classification.

In the afternoon you will gain practical experience, facilitated by industry experts, classifying various items using the HTSUS.

Register now


Padelford River Boat Cruise on the Mississippi

June 14, 2012
5:00 pm - 8:00 pm
Padelford Landing at Harriet Island Regional Park, St. Paul, MN

Enjoy views of the historic trade route of the Mississippi River and network with your peers in the industry. A drink ticket and appetizers are included with your registration.

Register now

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Port of Duluth Receives Power Plant Components Destined for Canada

According to the Duluth News Tribune:

Massive power plant components emerged from the hold of the new ship Clipper Gemini recently at Duluth’s Clure Public Marine Terminal.

The 393-foot Clipper Gemini, a ship making its maiden voyage, arrived in Duluth on May 5. Its cargo includes turbines for a new power plant in Calgary, Alberta, each weighing nearly 370 tons.

Cranes hoisted large components from the ship on Sunday, May 6, and lowered them to a specialized transporter that moved the items to another area of the terminal for loading onto railcars and trucks for the journey to Canada.

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Growing Export Opportunities of Agricultural Products and Equipment to India

by Chan Wahi, Best Direct Consulting – India Focused

India’s growing middle class and expanding GDP have the United States and others sharpening their pencils and scratching their heads for ideas on how to tap into this growing marketplace.

Minnesota’s strength as an exporter of agricultural commodities may, to the novice, seem like a no-brainer for export to a country needing to feed 1.2 billion people. But there is a mismatch regarding what we think Indians will buy from Minnesota and where the export opportunities really lie.

The Indian diet relies heavily on grains, but the country is self-sufficient in its production of wheat, rice, corn enough to satisfy its consumption needs – with the exception of pulses (such as kidney beans, chickpeas, and lentils). Nearly 20 percent of these needs are filled by imports – not from the U.S. but from South Asian countries – primarily Myanmar, Pakistan and Bangladesh. We just can’t compete with these Asian countries where production and transportation costs are significantly lower.

There is an ancillary need in India that is well-suited to Minnesota exports.

Nearly 30 percent of Indian agriculture production goes to waste because of a lack of food-processing equipment and facilities, cold storage facilities and transport infrastructure. India’s government, in its five-year plan, is offering special incentives in these areas to foreign companies, which include 100 percent equity participation and full repatriation of profits.

The Indian food-processing industry is expected to grow at a rate of 20 percent per year over the next five years to satisfy the growing urban young and mobile population. Minnesota businesses catering to agricultural food ingredients for taste, texture and preservation, processing and packaging equipment, cold storage and transportation equipment have a great opportunity to penetrate the Indian market.

The table below highlights the category of exports of U.S. agriculture-related products to India and also the ancillary opportunities for Minnesota companies, according to the website census.gov. This total represents 80 percent of the sum total of agricultural related exports to India.

Nationwide U.S. exports to India in dollar amount by 5-Digit End-Use Code

Code

Category

2002

2011

Yearly Gr. Rate

00220

Animal Feed

1,323,000

10,196,000

25%

00310

Fruits & Frozen Juices

9,599,000

10,467,600

10%

00330

Vegetables

2,366,000

44,776,000

38%

00340

Nuts

70,226,000

310,181,000

18%

12420

Pulpwood & Wood pulp

3,067,000

26,754,000

27%

21110

Food &Tobacco Machinery

8,482,000

82,168,000

28%

21150

Pulp & Paper Machinery

13,758,000

61,055,000

18%

21200

Agriculture Machinery

7,689,000

28,840,000

16%

Total

108,823,002

545,599,611

19%

In 2011, the total Minnesota exports to India were $204 million. To compare, our exports to China were $1.933 billion, of which $544 million worth of machinery was shipped from Minnesota. (U.S. Census.gov). The Indian market is lagging five to eight years behind compared to China; however, these numbers do provide a window of growth potential for Minnesota companies in the future, and it behooves us to pursue this market aggressively.

Fortune 500 companies have established large footprints in India to serve the mass markets. Now is the time for small- to medium-size companies to step in and exploit not only the growing needs of American companies there, but also to cater to the niche markets that appeal to serve India’s regional differences in geography and tastes.

Christina Connely at Minnesota Department of Agriculture and Tim Odegard at the Minnesota Department of Trade, along with the networks at Midwest Global Trade Association, are great resources for small- to medium-size Minnesota companies seeking to develop the Indian market for their products and services.

Your comments or questions regarding how to grow Minnesota exports by small to medium size companies are welcome. The writer can be reached by email at 2bestdirect@gmail.com.

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Kids Against Hunger Event

by Rae Hale, General Mills

Jim Moore3,672!

That’s how many meals 15 MGTA Volunteers packed in 1.5 hours on March 29, 2012 at the Kids Against Hunger Facility in New Hope, MN. This amount will feed 10 children for an entire year! Thank you to all the volunteers that were able to join us. We hope to make this an annual event and increase our impact every year.

Kids Against Hunger is a US based humanitarian organization that packages highly nutritious, life-saving meals for starving children and malnourished children and their families in developing countries and the United States. The goal of the organization is for its meals to provide a stable nutritional base from which recipient families can move their families from starvation to self-sufficiency. Kids Against Hunger accomplishes this by mobilizing the energy and caring of American children, teens, and adults on behalf of hungry children around the world. Kids Against Hunger seeks to end the literal hunger of children receiving the meals, but also satisfies a hunger among prosperous Americans - a hunger for meaning and contribution. Since its launch, Kids Against Hunger has provided over 200 million meals for children and their families in more than 60 countries through the efforts of hundreds of thousands of volunteers. (Source: www.kidsagainsthunger.org)

Kids Against Hunger's meals have been formulated by food scientists to provide a rich source of easily digestible protein, carbohydrates, and vitamins needed by a malnourished child's body and mind. The food also accommodates to the broad diversity of ethnic tastes and religious differences around the world. Kids Against Hunger's meals offer all nine of the essential amino acids required for complete nutrition - something that can't be said about other typical food relief sources such as rice or beans alone. The beauty of the food formulation is its simplicity. It is made from four readily available, dry ingredients that are easy to package, keep for long periods, and require only boiling with water to prepare. Despite the simplicity of the food's content, it is a nutritionally complex and well balanced meal. (Source: www.kidsagainsthunger.org)

If you would like to know more about Kids Against Hunger, please visit: www.kidsagainsthunger.org

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Country of the Month: Vietnam

by Kevin Johnson, Best Buy

PROFILE

Jim MooreGeography

Area: 331,114 sq. km. (127,243 sq. mi.); equivalent in size to Ohio, Kentucky, and Tennessee combined.
Cities (2009): Capital – Hanoi (pop. 6.472 million). Other cities – Ho Chi Minh City (formerly Saigon; pop. 7.163 million), Haiphong (pop. 1.841 million), Danang (pop. 890,500), Can Tho (pop. 1.189 million).
Terrain: Varies from mountainous to coastal delta.
Climate: Tropical monsoon.

People
Nationality: Noun and adjective – Vietnamese (sing. and pl.).
Population (2011): 90 million.
Annual population growth rate (2011): 1.077%.
Ethnic groups (2009): 54 groups including Vietnamese (Kinh) (73.594 million, or 85.7% of the population), Tay (1.89%), Thai (1.8%), Muong (1.47%), Khmer (1.46%), Chinese (0.95%), Nung (1.12%), Hmong (1.24%).
Religions (2008): Buddhism (approx. 50%), Catholicism (8%-10%), Cao Dai (1.5%-3%), Protestantism (0.5%-2%), Hoa Hao (1.5%-4%), Islam (0.1%), and other animist religions.
Languages: Vietnamese (official), English (increasingly favored as a second language), some French, Chinese, and other ethnic minority languages.
Education (2009): Literacy – 94%.
Health (2011): Birth rate – 17.07 births/1,000 population. Infant mortality rate – 20.9 deaths/1,000 live births. Life expectancy – 73 yrs. Death rate – 5.96/1,000 population.

Government
Type: Single-party constitutional republic (Communist Party).
Independence: September 2, 1945.
Constitution: April 15, 1992.
Branches: Executive – president (head of state and chair of National Defense and Security Council) and prime minister (heads cabinet of ministries and commissions). Legislative – National Assembly. Judicial – Supreme People's Court; Prosecutorial Supreme People's Procuracy.
Administrative subdivisions: 58 provinces, 5 municipalities (Can Tho, Haiphong, Danang, Hanoi, Ho Chi Minh City).
Political party: Communist Party of Vietnam (CPV) with over 3 million members, formerly (1951-76) Vietnam Worker's Party, itself the successor of the Indochinese Communist Party founded in 1930.
Suffrage: Universal over 18.

Economy
GDP: (2010) $102 billion; (2011, first 9 months) $81 billion.
Real GDP growth rate: (2010) 6.8%; (2011, first 9 months) 5.76%.
Per capita income (2010): U.S. $1,168.
Inflation rate: 9.2% (average monthly Consumer Price Index of 2010, year-on-year); 18.16% (average monthly Consumer Price Index of first 9 months of 2011, year-on-year).
External debt (2010): 42.2% of GDP, $32.50 billion.
Natural resources: Coal, crude oil, zinc, copper, silver, gold, manganese, iron.
Agriculture, forestry, and fisheries (20.58% of GDP, 2010): Principal products – rice, coffee, cashews, maize, pepper (spice), sweet potato, pork, peanuts, plus extensive aquaculture of both fish and shellfish species. Cultivated land – 12.2 million hectares. Land use – 21% arable; 28% forest and woodland; 51% other.
Industry and construction (41.09% of GDP, 2010): Principal types – mining and quarrying, manufacturing, electricity, gas, crude oil, water supply, cement, coal, and steel.
Services (38.33% of GDP, 2010): Principal types – tourism, wholesale and retail, repair of vehicles and personal goods, hotel and restaurant, transport storage, telecommunications.
Trade: Exports – (2010) $71.6 billion; (2011, first 9 months) $70 billion. Principal exports – crude oil, garments/textiles, footwear, fishery and seafood products, rice (world’s second-largest exporter), pepper (spice; world’s largest exporter), wood products, coffee, rubber, cashews, jewelry, and footwear. Major export partners – U.S., EU, ASEAN, Japan, China, and South Korea. Imports – (2010) $84 billion; (2011, first 9 months) $76.87 billion. Principal imports – machinery, oil and gas, iron and steel, garment materials, plastics, and electronics. Major import partners – China, ASEAN, Japan, Taiwan, South Korea, and EU. Exports to U.S. – (2010) $14.3 billion; (2011, first 9 months) $10.9 billion. Imports from U.S. – (2010) 3.7 billion; (2011, first 9 months) $2.8 billion.

Principal Government Officials
President – Truong Tan Sang
Prime Minister – Nguyen Tan Dung
National Assembly Chairman – Nguyen Sinh Hung
Minister of Foreign Affairs – Pham Binh Minh
Ambassador to the United States – Nguyen Quoc Cuong
Ambassador to the United Nations – Le Hoai Trung

Vietnam maintains an embassy in the U.S. at 1233 20th Street, NW, #400, Washington DC 20036 (tel. 202-861-0737; fax 202-861-0917); Internet home page: www.vietnamembassy-usa.org. There is a consulate general in San Francisco, located at 1700 California Street, Suite 430, San Francisco, CA 94109 (tel. 415-922-1707; fax 415-922-1848); Internet homepage: www.vietnamconsulate-sf.org. There also is a consulate general in Houston, located at 5251 Westheimer Rd, Suite 1100, Houston, TX 77056 (tel. 713-850-1233; fax 713-810-0159); Internet homepage: vietnamconsulateinhouston.org.

ECONOMY
Following economic stagnation after reunification from 1975 to 1985, the 1986 Sixth Party Congress approved broad economic reforms (known as "Doi Moi," or "renovation") that introduced market reforms, opened up the country for foreign investment, and dramatically improved Vietnam's business climate. Vietnam became one of the fastest-growing economies in the world, averaging around 8% annual gross domestic product (GDP) growth from 1990 to 1997 and 6.5% from 1998 to 2003. GDP grew more than 8% annually from 2004 to 2007, slowed to 5.3% growth in 2009, recovered to 6.8% in 2010, and reached 5.8% over the first 9 months of 2011. Viewed over time, foreign trade and foreign direct investment (FDI) have improved significantly, although new registered FDI has started to trend downward. The average annual foreign investment commitment rose sharply after foreign investment was authorized in 1988, although the global economic crisis affected FDI in 2009. In the first 9 months of 2011, disbursed FDI capital totaled $9.1 billion, up 1% compared to the same period in 2010. Registered FDI (including new and additional capital) was $8.88 billion in the first 9 months of 2011, a fall of about 30% compared to the same period of 2010. From 1990 to 2011, agricultural production nearly doubled, transforming Vietnam from a net food importer to the world's second-largest exporter of rice. In the first 9 months of 2011, Vietnam’s exports ($70 billion) were up by 23% compared to the same period in 2010. Vietnam’s imports ($76.87 billion) were up by 27% from the same period in 2010, and the country was still running a structural trade deficit, reaching $6.87 billion in the first 9 months of 2011.

The shift away from a centrally planned economy to a more market-oriented economic model has improved the quality of life for many Vietnamese. Per capita income rose from $220 in 1994 to $1,168 in 2010. Year-on-year inflation, however, increased to 18.2% in the first 9 months of 2011, up from 8.6% in the same period of 2010. The Vietnamese Government was unable to reach its 2011 Consumer Price Index (CPI) target of 7%. The Vietnamese savings rate is about 25% of GDP. Official unemployment remains low, but does not reflect employment trends in the unofficial economy, which comprises over 70% of the total workforce. Unemployment was 2.2% in the first 9 months of 2011 – a slight decline from 2.8% in 2010 – with urban unemployment being higher (3.5% in the first 9 months of 2011, 4.4% in 2010) than rural (1.2% the first 9 months of 2011, 2.3% in 2010).

The Vietnamese Government still holds a tight rein over major sectors of the economy through large state-owned economic groups and enterprises. The government has plans to reform key sectors and partially privatize state-owned enterprises, but implementation has been gradual and the state sector still accounts for approximately 40% of GDP. Greater emphasis on private sector development is critical for job creation. In 2011, the Vietnamese Government proposed a strategy for restructuring the economy by 2015. The three pillars of the proposed strategy are improving public investment; reforming state-owned enterprises; and restructuring finance markets, focusing on the banking system.

The 2001 entry-into-force of the Bilateral Trade Agreement (BTA) between the U.S. and Vietnam was a significant milestone for Vietnam's economy and for normalization of U.S.-Vietnam relations. Bilateral trade between the United States and Vietnam has expanded dramatically, rising from $2.97 billion in 2002 to $18.6 billion in 2010. The U.S. is Vietnam's second-largest trade partner overall (after China).

Implementation of the BTA, which includes provisions on trade in goods and services, enforcement of intellectual property rights, protection for investments, and transparency, fundamentally changed Vietnam's trade regime and helped it accede to the World Trade Organization (WTO) in 2007.

Vietnam was granted permanent normal trade relations (PNTR) status by the United States in December 2006. To meet the obligations of WTO membership, Vietnam revised nearly all of its trade and investment laws and guiding regulations and opened up large sectors of its economy to foreign investors and exporters.

A U.S.-Vietnam Trade and Investment Framework Agreement (TIFA), a bridge to future economic cooperation, was signed in 2007 during President Nguyen Minh Triet's visit to the United States. The first TIFA Council occurred in December 2007 in Washington, and there have been frequent TIFA meetings and dialogues since then. During Prime Minister Nguyen Tan Dung's June 2008 visit, the United States and Vietnam committed to undertake Bilateral Investment Treaty (BIT) negotiations. Three rounds of talks were completed, but BIT talks have not resumed since Vietnam and the United States began negotiations on free trade in 2010.

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Do you know an MGTA member who was recently promoted or hired to an import/export company? Know of a member who recently got married or had a new addition to the family? Share the good news with your industry colleagues by emailing JLloyd@scoular.com.

Who Said it?

"If you want something done, ask a busy person."
– Benjamin Franklin

"You can't hold a man down without staying down with him."
– Booker T. Washington

"The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man."
– Gerorge Bernard Shaw

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Thank you, Newsletter Sponsor:

Port of Seattle

2012 Annual Sponsors:

 

Bremer

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