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World Trader - Jan10
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January 2010
Volume 7 | Issue 1

World Trader

From the President

Upcoming Events

Help for Haiti: Learn What You Can Do

Incoterms Update: Next Version of Incoterms Scheduled to Take Effect January 1, 2011

Customs 2009 Year in Review

TSA Carriers Pursue Interim Revenue Recovery in Early 2010

Importer Security Filing "10+2” Program

Welcome New MGTA Members!


From the President

by Mari McClafferty, MGTA President

Mari McClaffertyA Special Message from Mari McClafferty, President, MGTA

Dear Midwest Global Trade Association:

Happy New Year!

As the incoming President of the MGTA and long time member, I am both grateful for our accomplishments in 2009 and look forward to all of the great things we have planned for 2010 and beyond. I am excited at the opportunity to serve as your President of the MGTA and will do my best to promote the MGTA as the first-class professional organization it is.

First, I want to take the opportunity to remind the MGTA membership and cooperating organizations to RSVP at www.mgta.org for our Annual Meeting this Wednesday, January 20, at the Metropolitan Ballroom in St. Louis Park. We hope to see you all there!

For those of you who cannot attend the event, the MGTA Board would like to briefly introduce our 2010 goals. In October, the MGTA Board had a brainstorming session to develop these goals and to determine how we can improve for YOU, the membership. Here are our results:

  1. To outreach to trade groups in the Midwest – North Dakota, South Dakota, Iowa and Wisconsin. Currently we have seven cooperating organizations based in the Twin Cities. This February the MGTA is collaborating with the Minnesota Trade Office (MTO) and the U.S. Commercial Services for an event, "How to Remove Trade Barriers." We also have a March 10 outreach event at Amity Technology in Fargo, North Dakota.?

  2. To improve communication with foreign trade associations – Global – using Skype and sharing best practices. Let us know your expansion plans and we will plan events geared toward those locations. ?

  3. To create educational opportunities that will WOW you for both Import and Export with top-notch speakers and a new certification program including a scholarship for the next generation of international trade students. ?

Looking back on the last decade of the Midwest Global Trade Association, we are proud of the consistency of the association and ALL of our volunteer members who have devoted their time by providing quality programs year after year. Some of these programs include educational seminars, special events like golf outings and the annual reception, as well as professional networking opportunities. In addition, many of our international companies hosted events during 2009, which has helped with the cost savings of the association. Our sponsors have also shown generous support for the MGTA – thank you all for a successful year! Lastly, a very special thank you to Sandy Taylor, our outgoing president, for all of her hard work, dedication and leadership towards the development and implementation of these initiatives. Without all of these support systems MGTA would not be where we are today.

??Our world has experienced drastic transformation following the events of the last decade, many of which have created new and unique challenges to international trade. The events of September 11th forever altered the way international companies import and/or export their goods, from documentation to logistics and regulatory concerns; the election of our new president, Barack Obama, and his comprehensive approach to securing the borders with increased technology and security without causing economic or trade disruption; and natural disasters, such as the current earthquake in Haiti that requires the help and knowledge of people like you to export goods in order to save lives – just to name a few.

Our world is fluid and the MGTA wants to continue to keep you informed and connected with tips on all aspects of trade in order to increase export/import sales and jobs! Please continue to visit our website and join us on LinkedIn, Facebook and Twitter.

In closing, let me thank you all for your continued commitment and support to the MGTA. We welcome all of you to join the MGTA events throughout the year and bring your friends and colleagues

I look forward to meeting you throughout the year!

Mari

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Upcoming Events

Annual Meeting

January 20, 2010, 5:30–9:30 pm
Metropolitan Ballroom, Minneapolis

Don’t miss this great FREE opportunity to celebrate with your peers at the MGTA Annual Meeting & Reception! Learn more

January Executive Forum: Intellectual Property Infringement and Counterfeit Trade – Your Company at Risk

January 28, 2010
Sofitel Minneapolis, Bloomington, MN

We will discuss what different organizations are doing to proactively, and reactively, combat black and grey market activities, as well as what companies are doing to protect their brands in the physical and online world. Learn more

February Seminar: Trade Barriers – Strategic Resources for US Exporters

Febraury 10, 2010
Medtronic, Mounds View, MN

Learn how working with the U.S. Department of Commerce Trade Agreements Compliance Program resources of the World Trade Organization (WTO) can be leveraged to open and maintain foreign market access for U.S. products. This presentation will focus on the WTO Agreement on Technical Barriers to Trade (TBT) and offer specific examples about how the U.S. Department of Commerce is able to use the Agreement to help industry: 1) obtain copies of foreign product standards and regulations worldwide; 2) influence the development of foreign government product specifications and testing procedures; and 3) overcome unnecessarily burdensome and restrictive obstacles to trade. Learn more

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Help for Haiti: Learn What You Can Do

Help for Haiti: Learn What You Can Do

The White House has set up a webpage for the Haiti earthquake relief effort.

The page is a great resource for information on news and updates, donations to the American Red Cross, ways you can help in the relief effort, getting information about friends or family, and the federal response. You can sign up for e-mail alerts and get the code to add a "Help for Haiti” image to embed on your blog or webpage.

If you’d like to be involved or get information on the effort, please visit: http://www.whitehouse.gov/haitiearthquake

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Incoterms Update: Next Version of Incoterms Scheduled to Take Effect January 1, 2011

From International Trade Law News, Douglas N. Jacobson, Esq., Sandler, Travis & Rosenberg, P.A.

The Incoterms Drafting Committee recently met to consider the latest draft of the revised version of Incoterms. Several more meetings will be held with a goal of issuing the final version of the revised Incoterms in the fall of 2010. At this point, the goal is to have the revised version of Incoterms go into effect internationally on January 1, 2011.

The next version of Incoterms is likely to be known as Incoterms 2010 (not Incoterms 3000 or Incoterms 2011 as initially proposed and reported). As we previously noted, a few of the current 13 Incoterms in Incoterms 2000 are likely to be eliminated and there may be at least one new Incoterm. In order to prepare for 2011 implementation of the revised Incoterms, the United States Council for International Business will provide a number of Incoterms 2011 training programs starting in the fall of 2010.

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Customs 2009 Year in Review

From Samuel Shapiro & Company

U.S. Customs & Border Protection (CBP) has released its fiscal year 2009 (ended September 30) year in review fact sheet. The global economic downturn was evident in a 15% decrease in the number of Customs entries filed from FY2008 as well as a 15% decrease in revenue collected by CBP. The value of imports declined by 25% to $1.7 trillion. Customs states that imports in FY09 stabilized to levels last seen in FY05.

Despite the decrease in entries and revenue, Customs increased its workforce by 10% while trade enforcement actions remained constant. Through the end of FY09, Customs made more than 18,000 seizures valued at more than $300 million. Intellectual property rights (IPR) seizures accounted for most of these actions. Footwear from China continues to be the number one commodity seized. Jewelry appears as a top seizure commodity for the first time, accounting for 4% of the total value of IPR seizures. Other enforcement actions include commercial fraud penalties ($98 million) and collections of revenue through focused assessment audits ($24.9 million). Textile seizures in FY09 were down due to the elimination of quotas from China on January 1, 2009. Trade compliance levels remained steady at 98.5%, down from 98.6% in FY08.

Customs inspected more than 108.5 million cars, trucks, buses, trains, vessels, and aircraft at 327 ports of entry. 86% of sea cargo entering the United States comes from a Container Security Initiative (CSI) port. Customs performed 56,000 examinations overseas as part of the CSI program. More radiation portal monitors were deployed at ports of entry, allowing Customs to scan 99% of truck cargo from Canada, 100% of truck cargo from Mexico, 100% of all mail and express consignment packages, and 98% of ocean containers for illicit radiological and nuclear materials.

The complete fact sheet may be viewed here.

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TSA Carriers Pursue Interim Revenue Recovery in Early 2010

From TSA Carriers

Transpacific shipping lines have announced an emergency revenue program for the first half of 2010, in an effort to obtain critically needed revenue prior to the usual service contracting season that begins for most carriers and their customers in May 2010. With every major transpacific carrier suffering massivelosses reaching into the hundreds of millions individually, and estimated at $20 billion collectively for 2009, lines say they cannot afford to carry current rates forward another six months until the new round of 2010-11 contracts is signed.

Member lines in the Transpacific Stabilization Agreement (TSA) have adopted a voluntary guideline: Emergency Revenue Charge (ERC) of US$320 per 20-foot container (TEU); $400 per standard 40-foot container (FEU); $450 per high-cube FEU; and $505 per 45-foot container, effective January 15, 2010. TSA emphasized that the ERC is an interim charge that is distinct from a previously announced general rate increase (GRI) of $800 per FEU for West Coast port-to-port and local cargo, and $1,000 per FEU for all other all-water and intermodal shipments. The ERC is intended to expire upon execution of new contracts in 2010.

"Taking this step now, as many shippers face the stress of an economy that is still a long way from recovery, is not what carriers would have preferred,” said TSA Chairman Ron Widdows. "But without some improvement in the economics of this trade in the very near future, they will be left with some very tough choices that involve either moving even more aggressively to individually consolidate or reduce the number of services now offered, or incur further losses that in the longer term are simply not sustainable.”

"We’re looking at the ERC as a bridge to get carriers through the first half of 2010, recognizing that the current rate levels do not adequately cover the cost of operating assets in this trade,” said Jack Yen, President of Evergreen Marine Corp. and a member of TSA’s Executive Committee. "Without this additional revenue, along with further steps to lower operating costs, carriers will continue to lose millions of dollars on a daily basis.

"While the U.S. economy is showing signs of bottoming and gradual recovery, the slight uptick in volumes makes little difference due to the excessively low rate levels that now prevail in the trade,” Mr. Yen added. "The transpacific customer base relies heavily on the container transport infrastructure to provide reliable, time-sensitive, value-added supply chain services. As an industry, we’re sending out an SOS to the shipping community with this emergency charge.”

TSA lines say they will be engaging with customers in various ways depending on how their contracts are structured, applying the ERC where contract terms allow, and seeking to negotiate reopening of contracts that do not provide for interim adjustments. The TSA guideline recommends that early bids or new contracts with early start dates prior to May 1 be quoted with the full, previously announced GRI.

TSA members also noted the 81% increase in marine fuel prices year to date in 2009 – adding more than $520,000 to the cost of a single Asia-U.S. sailing to the West Coast, and nearly $720,000 to a single East Coast all-water sailing. TSA carriers reaffirmed their commitment to assess the full, floating TSA guideline bunker charge of $348 per FEU to the West Coast and $689 per FEU to the East and Gulf Coasts, effective for the calendar quarter beginning January 1, 2010, and to similarly apply the full charge as adjusted on April 1, 2009 to subsequent contracts.

And in a related move, TSA said it will amend its agreement on file with the U.S. Federal Maritime Commission to provide members with additional authority to discuss matters relating to slow steaming or other environmental initiatives that will enable the industry to more significantly reduce emissions and other impacts, at the same time it reduces operating costs.

"Moving our industry down the path of a more proactive approach to emissions reduction will yield important benefits for shippers, carriers, ports and communities over time. That is why we are seeking the support of the shipping community and the FMC, so that TSA carriers can engage in a dialogue that approaches this critical issue in a more effective way,” Widdows said. "Clearly we can expect to see dramatic changes in the world from global regulations put in place to reduce greenhouse gases, and carbon emissions in particular. This will require carriers to consider major changes in how they design and operate ships; greater information-sharing will contribute to a smoother transition.”

TSA is a research and discussion forum of major container shipping lines serving the trade from Asia to ports and inland points in the U.S.

Members include:
APL, Ltd.
China Shipping Container Lines
CMA-CGM
COSCO Container Lines, Ltd.
Evergreen Line
Hanjin Shipping Co., Ltd.
Hapag Lloyd AG
Hyundai Merchant Marine Co., Ltd.
Kawasaki Kisen Kaisha, Ltd. (K Line)
Mediterranean Shipping Co.
Nippon Yusen Kaisha (N.Y.K. Line)
Orient Overseas Container Line, Inc.
Yangming Marine Transport Corp.
Zim Integrated Shipping Services

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Importer Security Filing "10+2” Program

by Mark Toth, Schenker, Inc., MGTA Communications Committee

The MGTA wishes to remind all importers via ocean to U.S. coastal ports of the imminent changes occurring January 26, 2010.

Importer Security Filing (or as it was known in legislation, "10+2”) was signed into law in fall 2008 as a "Final Rule” published in the Federal Register; implemented January 26, 2009 having a 12 month grace period. The grace period ends this month on January 26, 2010.

All ISF filers are different with standard operating procedures, software and interpretation of the new law.

Further questions can be directed here.

Kindly contact your local forwarder or broker for further assistance.

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Welcome New MGTA Members!

The MGTA gains its strength as the leading organization to enhance the international business opportunities as we expand the reach of our membership. Now with well over 500 members, we proudly welcome the following individuals who have become a part of the MGTA:

Steve Kane, Kurk Manufacturing
Giselle Baillos
Sally Neubauer, 3M Company
Chad Harley, Crane Worldwide Logistics
Alyona Mallayeva, Metropolitan State University
Dan Jerik, Multi-Modal Transport, Inc.
Miah Boerner, NOVUS, Inc.
Mark Toov, Caterpillar Auction Services

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Thank you Newsletter Sponsor:

Port of Seattle

2010 Annual Sponsors:

 

ZepolCH RobinsonBremerUS Bank
HMMNeville Peterson LLP

© 2010 Midwest Global Trade Association. All Rights Reserved.
World Trader is distributed bi-monthly to MGTA members.
Articles submitted by our membership do not express the views of MGTA or the Board of Directors. If you would like to submit an article for publication in the World Trader, please contact the MGTA office at office@mgta.org.

Midwest Global Trade Association
1000 Westgate Drive, Ste. 252 | St. Paul, MN 55114
p 651.290.7482 | f 651.290.2266 | office@mgta.org |
www.mgta.org



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