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World Trader - April11
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Apr/May 2011
Volume 8 | Issue 2

World Trader

Upcoming Events

MGTA Seminar Recap: How to Handle Customs Investigations and Penalty/Seizure Proceedings
by Jim Moore

MGTA Seminar Recap: Entering Foreign Markets
by Mari McClafferty

Proposed Changes to the Foreign Trade Regulations
by Omari Wooden

Information on Mexico Advanced Manifest Filing
from Expeditors Newsflash

What is Required to Ship Charity Goods to Japan?
from AES Broadcast

MGTA Member News

MGTA Volunteer: Graciela Cuadrado-Vielguth, ME Global Inc.

The Binding Tariff Information (BTI) Ruling: A Key Element of Successful Exporting to Europe
by John M. Peterson

New MTO St. Cloud Office
by Mari McClafferty

Who Said it?

Upcoming Events

Member Networking Event

June 15, 2011
11:15 am-1:00 pm
Poor Richard’s Commonhouse, Bloomington

RSVP to to register to attend for free. Please note: no food or beverage is included with registration. More MGTA Networking Events: Thursday, July 20 and Wednesday, September 21.

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MGTA Seminar Recap: How to Handle Customs Investigations and Penalty/Seizure Proceedings

by Jim Moore

Guidelines for Importers and Customs Brokers in an Era of Increased Enforcement
Mr. Joel Junker, Joel R. Junker & Associates, presented a seminar on February 16. This was a thorough review of all aspects of investigations and related proceedings when US Customs and Border Protection comes knocking on the company door.

The session started with notifications and investigations. Mr. Junker discussed approaches to cooperation, reporting, and record keeping as well as penalty proceedings and how to manage against culpability levels from No Violation to Fraud. He also talked about assessing the situation with regard to culpability leads to the correct legal representation and approach in developing a defense. Aggravating and mitigating factors were discussed as well as fines, penalties and forfeitures. The calculation of possible exposure to monetary penalties and damages was shown to help understand the financial impact of a major Customs event.

Mr. Junker called out the organizational structure of all government agencies to help understand who makes what decisions in pursuing a case. He referred to the applicable statutes and many examples in an effort to intersect the theory of the law with the reality of the business situation. This was a very effective presentation for customs brokers and import management, driving a deep understanding of what to expect and how to handle investigations and their results.

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MGTA Seminar Recap: Entering Foreign Markets

by Mari McClafferty

On April 11, 2011, ME Global Inc., Graciela Cualdro-Vielguth hosted the MGTA seminar "Entering Foreign Markets: Doing it for the Right Reasons, Learning from Others' Mistakes." MGTA had a great turnout for the event with many students for our cooperating organization – the University of Wisconsin, Eau Claire in attendance. Speaker, Duncan McCampell, McCampbell Global, LLC, helps US businesses to identify, measure and successfully pursue market-entry initiatives abroad. During his presentation Duncan discussed the four dimentions of global business: legal, political cultural and commercial and has a new book coming out that will cover these areas in more detail. The stories about using local direct sales people vs. distributors hit home as these choices can make or break an attempt at international business. Representatives from AIESEC, an international platform for young people to explore and develop their leadership potential, are looking at international companies for opportunities. See or contact Mathew Johnson 715-790-1930 for more info.

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Proposed Changes to the Foreign Trade Regulations

by Omari Wooden, Trade Ombudsman, Foreign Trade Division

On January 21, 2011, the U.S.Census Bureau issued the Notice of Proposed Rulemaking (NPR) for revisions to the Foreign Trade Regulations (FTR). Most of the clarifications and changes reflect a need to update the FTR to meet export enforcement laws. We recommend that you take a look at the entire NPR for more details. Keep in mind that these are proposed changes to the FTR until a final rule is issued. Therefore, the feedback we receive from the trade community may influence whether these changes become effective. A summary of some of the major proposed changes (not all inclusive) is listed below.

  • Postdeparture reporting:
    • Only approved commodities can be shipped postdeparture.
    • Shipments must be reported within 5 days from the date of export, instead of 10 days.
    • Each U.S.Principal Party in Interest (USPPI) considering postdeparture reporting will have to apply, including previously approved companies.
  • All household goods must be reported regardless of value and country of destination.
  • All used self-propelled vehicles must be reported in the Automated Export System 72 hours prior to export, regardless of value or country of destination.
  • Port of export for overland transportation (truck and rail) is where the goods cross the U.S.border into Canada or Mexico, including transshipments through Canada or Mexico.
  • Several new data elements have been proposed, including:
    • Address of license applicant
    • License value
    • Name and address of end-user
    • Country of origin, if commodity is listed as foreign origin

Be sure to review the entire NPR for complete details. Comments or questions on the proposed changes can be submitted to Make yourself aware of these proposed changes now because they may affect you in the future.

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Information on Mexico Advanced Manifest Filing

from Expeditors Newsflash

On May 1, 2011 Mexico Advanced Manifest System (SAM) requirements became mandatory for air cargo.

This regulation requires that an advanced electronic declaration be filed for goods being carried by air transportation to allow customs authorities to assess the security risk of cargo into and out of the customs territory of Mexico. The regulation applies to:

  • Goods to be imported into Mexico;
  • Goods to be exported out of Mexico;
  • Goods to be transshipped through a Mexico port for destination outside of Mexico;
  • Goods to be re-loaded in a Mexico port for transit to a destination outside the Mexico; and
  • Freight Remaining on Board (FROB)

The timing requirements for sending SAM data to bring the goods into Mexico are as follows:

  • Short haul flights (with a duration less than four hours) must be filed upon departure;
  • Long haul flights (with a duration more than four hours) must be filed at least four hours prior to arrival at the first airport within the Mexican customs territory.

It is the responsibility of both the airline carrier and the freight forwarder to submit the SAM within the required deadline.

Carriers will need to receive the following information in order to submit a filing:

Shipper Information
The Shipper Name and Address must identify the foreign party initiating the shipment. It must include the full company name and address and must be a foreign address. The indication of freight forwarder, carrier, or consolidator as the shipper is not acceptable.

Consignee Information
The name and address of the Consignee to whom the cargo will be delivered is required. They do not need to be located in the arrival or destination port.

Quantity Shipped
The quantity documented by the shipper must be in the smallest external packing unit. If the cargo is on pallets, the shipper must advise the respective carton count as well (i.e. 5 pallets containing 100 cartons).

Cargo Description
A precise cargo description sufficient to identify the commodity shipped must be supplied. Vague or unclear cargo descriptions will increase potential holds and exams. Permission to land at any international airport in Mexico may be denied if advance electronic information for incoming foreign cargo aboard an aircraft has not been received by Mexico customs. Expeditors will continue to provide updates and additional information as the effective dates draws closer.

Please contact your local Expeditors representative for further information.

Additional goods descriptions guidelines can be found on the Mexico Customs website:

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What is Required to Ship Charity Goods to Japan?

from AES Broadcast

On Friday, March 11, 2011, a major earthquake struck northern Japan, devastating the area and triggering tsunamis. Many U.S. residents and organizations are generously donating food, water, medicines, and other supplies to aid in the relief efforts. In order to facilitate the movements of these goods, we offer the following guidance that applies to any goods not requiring a license, such as food, clothing, and medicines.

These are four Schedule B numbers that can be used when exporting humanitarian goods. Those numbers are found in Chapter 98 of the Schedule B manual, under heading 9802.

Schedule B NumberDescriptionUnit of Measurement
9802.10.0000Food products X No Unit Required
9802.20.0000Medicinal and pharmaceutical productX No Unit Required
9802.30.0000Wearing apparel (including footwear headwear)X No Unit Required
9802.40.0000Donated articles, not elsewhere specified X No Unit Required

Any shipment valued over $2,500 per Schedule B number or that requires a license must be filed in AES. However, if the shipment is valued less than $2,500 per Schedule B Number and does not require a license, then the low value exemption (NOEEI FTR 30.37(a)) can be used. In this case, food, clothing, and medicines do not require a license.

The Export Information Code to be reported is "CH" for shipments of goods donated to relief or charity. The value to be reported is the market value. If that value is not known, estimate how much you would receive if you sold the goods. The value should be consistent with the goods being exported, to avoid confusion and possible delays with U.S. Customs & Border Protection officers at the port of export.

There are different ways to file your export information. The most common is to report through the Census Bureau's free Internet-based filing system called AESDirect, which can be accessed at

We have provided training videos to help you get started with AESDirect that can be accessed at

Another option is to file with a forwarder or agent who may be more familiar with export licensing and regulations.

With so many individuals and first time exporters shipping donated goods to Japan, the exporting process may seem overwhelming. However, we at the Census Bureau are available to help make the process as smooth as possible.

If you need more information, we are available at 800-549-0595. Select menu Option 1 for help with the AES, Option 2 for Classifications, and Option 3 Regulations. You can also send us an email at or

Please continue to support those in Japan during this time of tradegy. Your assistance is greatly appreciated.

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MGTA Member News

MGTA member Amanda Bowering is the proud new mother of Isabella Bowering pictured here. Congratulations, Amanda!

Mari McClafferty's (MGTA President 2010) son Second Lieutenant Colin K. Smith, U.S. Army, 2010 ROTC graduate of the University of Minnesota recently graduated from officer’s training school (Ordnance) at Fort Lee, VA. After additional training at Redstone Aresenal, AL, Colin will be stationed at Fort Walton, FL. Photo: Colin with his grandfather Jim Smith, WWII veteran, U.S. Army.

Happy Memorial Day and special Thanks to ALL U.S. military troups who serve!

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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 added a new addition to the family? Share the good news with your industry colleagues by emailing

MGTA Volunteer: Graciela Cuadrado-Vielguth, ME Global Inc.

Q: How long have you been involved in global trade and what brought you to this industry?
A: I've been in the international trade business for over 30 years. I came to the US from Uruguay as a teacher's aide in a high school in the late '70s. After a one-year stint, I decided that teaching was not for me in this country, and went back to school for International Trade.

Q: How long have you been a volunteer with the MGTA?
A: Since September 2010. I've been a member of the MGTA off and on for many years, but I have been volunteering for almost a year now. Recently, ME Global Inc. hosted an MGTA event at our company.

Q: What have been some of the highlights of your volunteer experience with MGTA?
I enjoy planning and organizing, so being able to plan and also host some of the seminars has been a great experience.

Q: What is one of your most interesting trade experiences?
As Export and Marketing Manager at ME Elecmetal Global Inc. I have visited some of the most incredible mines in Canada and Uruguay!

Q: How has volunteering with the MGTA helped you in your professional development?

A: My volunteering with the MGTA was a decision I made not focused on my professional development, but for the development of the younger generation that is coming on board as trade professionals, thus I decided to become a member of the Professional Development Programs Committee. I guess once a teacher, always a teacher... I thrive in showing others "how it works."

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The Binding Tariff Information (BTI) Ruling: A Key Element of Successful Exporting to Europe

by John M. Peterson, Neville Peterson LLP

American firms are well-acquainted with a value of obtaining binding classification rulings from United States Customs and Border Protection. Rulings represent the official position of the agency, and are binding on Customs officials at United States ports of entry – more than 300 of them. They provide importers with predictability in determining landed costs and prices. Perhaps most importantly, they provide importers with procedural protections, in case Customs decides to change its position to the importer’s disadvantage. Small wonder, then, that American companies obtain several thousand Customs classification and country of origin rulings each year.

But exporting to the European Union often seems mysterious to the same companies who obtain United States Customs rulings. At first blush, that’s understandable: while the EU has a common Customs Code, it also has 27 different national Customs Administrations interpreting and administering that Code. Each of these Customs authorities is differently organized, and they work in many different languages. How can a United States exporter achieve uniform treatment of its goods in such a large and diverse market?

The answer lies in the Binding Tariff Information (BTI) – the EU’s equivalent of the binding Customs ruling. Although issued by national Customs administrations, BTIs have a uniform format. Better yet, they are binding on Customs officials in all 27 EU Member States, and remain in force for six years, subject to renewal. Since the EU’s Combined Nomenclature is, like the United States tariff, based on the international Harmonized System of tariff nomenclature, many multinational companies are able to leverage their knowledge of United States tariff classification into securing favorable BTIs. Read more

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New MTO St. Cloud Office

by Mari McClafferty

MGTA cooperating organization, the Minnesota Trade Office (MTO) opened a satellite office in St. Cloud. Mark McNeil, Lindquist & Venuum PLLP & MGTA legal counsel, presented on distributor contracts, trademarks, arbitration, and other issues with regard to the topic "Finding and Motivating the Right Foreign Business Partner." MTO representatives Ed Dieter, Deputy Directory, Mary Jo Stangl, Education Advisor and MGTA Professional Development Committee member hosted the event. Jennifer Kocs will be located at the office twice a month to assist companies near St. Cloud involved in international trade. St. Cloud MTO is located at SCCU Welcome Center, 355 Fifth Ave South, St. Cloud, MN 56301, Tel. 320-308-6115 or see for upcoming events.

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Who Said it?

"Always do everything you ask of those you command."
– George S. Patton

"As we express our gratitude, we must never forget that the highest appreciation is not to utter words, but to live by them."
– John F. Kennedy

"All mankind is divided into three classes: those that are immovable, those that are movable, and those that move."
– Benjamin Franklin

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Thank you Newsletter Sponsor:

Port of Seattle

2011 Annual Sponsors:



CH RobinsonDrinkerJacobson Companies
HMMNeville Peterson LLP

© 2011 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

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

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