Most folks in the trade community have heard of the TPP aka Trans-Pacific Partnership.  Most can agree this massive piece of “pending” legislation has caused significant discussion and confusion from many sectors and political positions.  Why so much hype?  This discussion endeavors to only highlight key points about TPP as they relate to the trade community.  It is well recognized that there are clear pros and cons to most all of the components of this legislation.

The TPP involves 12 countries, including the US, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru.

Some key points:

• Approximately 18,000 tariffs may be affected by reduction or elimination of tariff rates
• US Goods and US farm products may have tariffs removed
• Textiles and clothing tariffs may be removed (in various timeframes)
• It may lead to stricter labor laws in participating countries
• It may lead to stricter environmental rules
• It may lead to more robust protections for drug companies
• It may extend statutory terms of copyright protection
• It may provide new avenues for investors to initiate litigation over laws and regulations in other participating countries

We have noted “may” in each of these key points mainly because at this point it is unclear about what is going to happen with the TPP.  With the election looming, it is certainly not likely to see any movement positive or negative on this until after the New Year.  Even then, it is still very unclear what support there is at this time in the current format.

Being informed is the first step toward action.  JAS Forwarding USA Inc. Compliance Team is committed to bring more and more relevant topics to our blogs and monthly newsletter.  Contact us today and tell us what you think about the TPP and any other key topics.  We are ready to help!

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Each year representatives from the trade community attend the NCBFAA (National Customs Brokers & Forwarders Association of America, Inc.) GAC (Government Affairs Conference) in Washington D.C.  This conference provides attendees with the chance to engage directly with influential government parties including Senators and Congressional Representatives regarding current events and industry issues.  JAS Forwarding USA Inc. Compliance team members participated and “Marched the Hill” at this year’s conference.  We are proud that our team is engaged with lawmakers and excited to be a part of the patriotic process of discussing challenging issues with our elected officials.

This year’s conference began on September 10th and finished up on September 14th.  One of this year’s topics of engagement by members of the NCBFAA was infrastructure and port dredging.  Related to this topic is the Water Resources Development Act S.2848.  This legislation addresses shortfalls in funding for various infrastructure projects to keep US Ports and Harbors competitive and in step with the continuous growth of vessel capacity.  Key projects which are significant in numerous ports is continuous harbor deepening and dredging projects.  With growth in vessel capacity comes increased draft (the amount of water required to float the vessel- the vertical distance between the waterline and the bottom of the hull- water depth must be greater than the draft) which means that harbors need more depth.  Failure to keep up with projects of this nature can have significant negative effects on the economy as the large vessels will not call where they cannot dock.

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GAC attendees “Marched the Hill” on Tuesday September 13, 2016.  On September 15, 2016, by a vote of 95 to 3, the U.S. Senate passed the S.2848, the Water Resources Development Act (WRDA) of 2016.  It is exciting to see action in a timely manner after engaging with our elected officials.  JAS Forwarding USA Inc. Compliance team looks forward to attending next year and would welcome any topics our valued clients would like to raise that may be addressed in the future.  Contact us today and let’s discuss how we can make a difference together!

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TSA (Transportation Security Administration) plays a critical role in protecting the US transportation systems with the goal of ensuring freedom of movement for people and commerce (TSA Mission Statement).  All of us as members of the trade community have a role in this effort.

JAS Forwarding USA Inc. Compliance team strives to foster exceptional cooperation and partnering with government agencies involved in our daily business activities.  TSA is one of those key agencies!

JAS Forwarding USA Inc.’s commitment is displayed by participating in specific operational training at TSA’s request.

​JAS is honored to support TSA in its newest See Something Say Something Campaign.  Homeland Security is in the process of rolling out a pilot program for K9s, and are using trade community facilities as a setting for this training.  K9s are one of the many integral layers of screening employed by TSA to ensure that our transportation networks are kept safe from threats.  Both our JAS Forwarding USA Inc. Charleston, SC and Atlanta, GA locations have been used for this endeavor.  These branch locations exemplify our policy of cooperation and informed compliance.  All of our staff in our branch locations strategically placed around the USA are well trained and corporately supported in TSA regulations.

Questions?  Contact us today and let’s see how we can manage risk together!

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CBP is updating the protest process in ACE. Beginning on August 29, 2016, all electronically filed protests must be filed via the ACE Secure Data Portal. CBP will manage protest processing in ACE. "With the ACE Portal, protest filers will be able to electronically submit protests, including attaching supporting documentation, rather than submitting paper packets. Additionally, protest filers can update their protest with additional information or documentation as requested by CBP," stated an article by U.S. Customs and Border Protection.

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An estimated $2.3 billion in antidumping and countervailing duties have gone uncollected by Customs and Border Protection.  The GAO (Government Accountability Office) recommends that Customs issue guidance should collect and analyze data on a regular basis.  They also recommended conducting regular risk assessments that consider the likelihood and risk factors related to nonpayment.

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What is the difference between Schedule B Codes (for exports) and Harmonized Tariff Schedule (for imports)?

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All of the imports and export codes used by the United States are based on the Harmonized Tariff System (HTS). The HTS assigns 6-digit codes for general categories. Countries which use the HTS are allowed to define commodities at a more detailed level than 6-digits, but all definitions must be within that 6-digit framework.  The U.S. defines products using 10-digit HTS codes. Exports codes (which the U.S. calls Schedule B) are administered by the U.S. Census Bureau. Import codes are administered by the U.S. International Trade Commission (USITC).

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2016 East Coast Trade Symposium

Date:  October 6-7, 2016

Location:  Washington, DC

U.S. Customs and Border Protection (CBP) is proud to announce that the 2016 East Coast Trade Symposium is scheduled for October 6-7, 2016 in Washington DC.

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Update 2016 Conference on Export Controls & Policy

Date:  October 31 – November 2, 2016

Location:  Washington, DC

The Bureau of Industry and Security (BIS) is preparing for the 29th annual Update Conference on Export Controls and Policy in Washington, D.C.  This major outreach activity draws business and government representatives from around the world to learn and exchange ideas about export control issues.  It is one of the Department’s most notable international trade events.  

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On August 18, staff from the U.S. Embassy in Beijing met with The General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ’s) Department of Supervision and Health Quarantine. This is an update to U.S. companies interested in China’s Zika requirements.  Please direct any questions or concerns to your local JAS office or representative.  

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Zika is at the center of concerns for China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ).  On August 18, staff from the U.S. Embassy in Beijing met with AQSIQ.  China has confirmed that U.S. companies exporting to China must meet the below Zika requirements.

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All U.S. origin conveyances air and sea that departed the United States on or after August 5, 2016 must comply with the new requirements as per below:

1. Chinese authorities require all cargo shipments originating from the United States to provide proof of disinsection upon arrival at the Chinese port, both air and sea shipments.  This applies to all vessels and aircraft that left the United States on or after August 5, 2016, with the exception of containers kept at or under a temperature of 15 degrees Celsius (59 degrees Fahrenheit).
2. Disinsection does not require fumigation, but can be carried out by physical or chemical means.  For physical, this could include trapping, air curtains, or other integrated pest management techniques.  For Chemical, this could include surface spraying, space spraying, or fumigation.  It is the shipper’s choice, but should take into account human health and safety.
3. The disinsection requirement (and therefore the proof of disinsection) applies to the container or vessel, NOT to the goods being shipped.  Therefore, if the entire vessel can provide proof, in the form of a certificate, that the vessel is free of mosquitoes, then no additional inspection needs to be carried out.
4. Local CIQ inspectors will continue their selective examination procedures and there will not be a separate Zika-related inspection process.  However, if live mosquito eggs, larva, or mosquitoes are found during inspection, disinsection will be required.              
5. There is no disinsection certificate required for shipments that are chilled below 15 degrees Celsius (59 degrees Fahrenheit).  But, if live mosquito eggs or larva are found by local CIQ inspectors at port, then disinsection will be required.
6. If there has been previous disinsection of the vessel (including fumigation) for other purposes (e.g., phytosanitary work plan), then proof of that treatment is sufficient proof for this Zika-requirement.
7. Proof of disinsection does not need to be provided by a governmental body, or a government approved body.
8. The disinsection treatment can be carried out at any point during the shipping process.  For example, if the containers are disinsected before loading and certified as mosquito free, then loaded in a mosquito free environment, then this is sufficient.

JAS Forwarding USA Inc. Compliance team suggests that clients consult with Chinese consignee(s) to determine which method you choose and at which stage it should be executed.  The fumigation process may be handled on arrival at the port in China, however that may depend on the steamship line as some lines are requiring this to be processed prior to accepting the cargo.  Keep in mind that there could be significant delays if shippers elect to fumigate in China.

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Got questions or comments?  Please let us know, we want to hear from you!

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Statistical data reports that renewals of GSP reflected refunds in the amount of $1.3 billion dollars.

GSP has also waived about $580 million in additional import taxes from August 2015 to May 2016.  "Assuming average savings in June and July, GSP renewal meant an extra $2 billion at the disposal of American companies over the past year," stated an article by Coalition for GSP, "The numbers are impressive but individual company stories show the vital importance of the GSP program to American companies and workers even better."

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