Leading Logistics Provider Automates Ocean Contract Management to Grow its International Business

Management Dynamics, a leading provider of global trade management solutions, today announced that Odyssey Logistics & Technology Corporation (OL&T), a global logistics and transportation service provider for the chemical and process industries, has expanded use of Management Dynamics’ Transportation Management solution to provide its customers with flexible and competitive routing and rate options for international shipments. This scalable web-based solution has enabled the OL&T logistics team to grow its international business and develop stronger customer relationships. Click here to read the full article.

Have a safe and happy Thanksgiving. Please be sure to enjoy your time off!

Have a safe and happy Thanksgiving. Please be sure to enjoy your time off!

The International Centre for Trade & Sustainable Development reports that 22 developing countries have tentatively agreed to reduce tariffs and other trade barriers as a means to boost trade between their countries.

Well, not Mr. Strauss himself - The chief supply officer at Levi Strauss testified in front of the House Ways & Means committee recently to encourage a stable, long-term trade preference program that encourages liberal rules of origin for raw materials and is easy for companies to utilize.

While visiting South Korea, President Obama announced his intention to pass the South Korea-US free trade agreement that is currently on hold, pending approval in Congress.

INDIA

Changes have been made to Import License requirements for selected products of rough marble blocks, furskins, and mobile handsets. The following HTS chapters are affected: 25, 43, and 85.

The American Association of Exporters & Importers is speaking out against the new structure of the Office of Regulations & Rulings (part of the Office of International Trade within Customs & Border Patrol.) In a letter on Friday to Acting Commissioner Jayson Ahern, AAEI charged that the organizational change has led to delays, because OR&R determinations are subjected to OIT management review.

The chief supply officer at Levi Strauss testified in front of the House Ways & Means committee recently to encourage a stable, long-term trade preference program that encourages liberal rules of origin for raw materials and is easy for companies to utilize.

Here is some more information I found on a topic I blogged about a couple of weeks ago: Crisis in freight markets creates risks for retailers. This article from Manufacturing & Logistics IT points out that the increased risks retailers are facing this year due to the instability of the freight industry makes it more important than ever for retailers to manage their international logistics with care to avoid service impact trading risk and costs affecting margins.

Simon Lester at International Economic Law and Policy Blog raises a question about the current US Trade Preference policy, based on recent comments by the USTR General Counsel Tim Reif regarding the eligibility criteria for US Trade Preference Programs:

The largest Colombian export mission ever to the United States is in Miami this week for two-days of match-making sessions with pre-selected importers. High on the agenda for sale: women's lingerie and other clothing, processed foods, books and other manufactured goods, Colombian officials said.

EU

Changes have been made to the European Union Tariff Rate Quota, specifically pertaining to high quality beef and sugar. The following HTS chapters are affected: 02 and 17.

COLOMBIA

HTS numbers have been added and deleted, while default duty rates have been changed in accordance with the 2009 Tariff Schedule. Various chapters across the tariff are affected, as well as the following products: polyesters, sodium, calcium, and valves.

According to a report released recently by American Shipper and the Retail Industry Leaders Association (RILA), automated transportation management systems are delivering a return on investment, as users are operating with more efficiency, increasing productivity, reducing cost and utilizing environmentally sound methods of transport, when compared to companies who handle their international transportation management manually.

The following information is courtesy of Sandler, Travis & Rosenberg, PA.

Importers Have Short Time to Comment
Before Retaliation List Finalized

The Brazilian Chamber of Foreign Trade (CAMEX) published Nov. 9 a list of 222 items (click here for full list [PDF]) of U.S.-origin products that may be subject to retaliatory duties of up to 100% beginning in January 2010. The World Trade Organization ruled in August that Brazil may impose these duties because the U.S. has failed to comply with an earlier WTO ruling against subsidies provided to U.S. cotton growers. Brazil is now claiming the right to retaliate against up to US$900 million in U.S. goods and services.

Brazilian imports of the U.S. goods on the CAMEX list are valued at US$2.7 billion, representing 10.6% of all goods imported from the U.S. in 2008. Industry and commercial associations and other entities now have until Nov. 30 to provide input on the listed products. After considering domestic industry and consumer interests, CAMEX will develop a final list of about US$450 million worth of U.S. goods and present it to the WTO for approval. These products will then be subject to import duties of up to 100%.

In an October feature story, Inbound Logistics published a list of five regions that make great sites for companies involved in logistics, distribution or transportation. The most important factors are "prime location, an abundance of industrial facilities, easy access to multiple transportation modes, the right workforce, and tax credits and incentives."

AMR Research has named Johnson & Johnson as the top health care supply chain for 2009. This top 25 list, released annually, "identifies the global companies that have best demonstrated leadership in building supply chain excellence and innovation. Specifically, these companies have focused on applying demand-driven principles to their operations to drive significant business results." According to AMR, the supply chain has not been considered a strategic function at many health care companies, and as a result supply chain innovation in health care has lagged behind other industries. (Side note: If President Obama passes his health care reform initiatives, this is something that will need to change in the health care industry. Check out my previous post on this issue: Obama's Health care Bill and the Medical Supply Chain.)

International Freighting Weekly is reporting today that deep sea carrier CMA CGM is expected to pull out of the red, and break even in December, thanks to a combination of cost-cutting measures they've implemented, and a rebound in shipping rates and volume.

At Corporate Compliance Insights, Eric McClafferty of Kelley Drye & Warren LLP has written an excellent article on the importance of export compliance to the health industry. He addresses two key questions:

Peter Quinter of law firm Becker & Poliakoff writes on his Customs & International Trade Law blog that he will be a presenter in three upcoming events: 2 seminars in Miami and one online webinar by the NCBFAA.

ARGENTINA

New import certificate requirements have been established for certain products. The following HTS chapters are affected: 28, 48, 51, 52, 54, 55, 60, 61, 62, 65, 84, and 87.

I have been following the Panjiva blog for some time now, I think what they're doing is pretty cool. Today they unveiled a new tool: Panjiva Trends.

World Trade magazine reports that India and the European Union have re-ignited discussions to create a free trade agreement between the two parties. Discussions originially began in 2007, but was slowed because of differences on intellectual property rights and fusing trading best practices with climate change.

President Obama landed in China on Sunday to discuss some much needed topics with President Hu Jintao, according to Time magazine. One topic is trade. In recent months, trade issues has been heated between the two nations as both have thrown around the idea that each nation is participating in protectionism since the recession began.

The Wizard over at Boskage Trade News recently did a great job of answering a question about trade compliance tools:

US Commerce Secretary Gary Locke outlined a new plan to increase US exports last week in a keynote speech at the National District Export Council Conference.

Germany has seen positive economic growth as exports has increased and the government's stimulus package encouraged corporate spending. Exports and investment in construction and equipment has been the main drivers of its economics growth for Q3.

SRI LANKA

There has been a change in Customs Duty for petrol and diesel. The following HTS chapter is affected: 27.

The WTO expects to close a long-running dispute over banana tariffs in the next two weeks, according to ICTSD.

U.K. Trade Minister claims trade is almost back to normal as exports are increasing, says the Wall Street Journal. The Office for National Statistics stated that the trade deficit widened to an eight-month high in September as a 3.9% rise in exports.

US and EU Issue Joint Trade and Climate Change Declaration, Annexes

The White House has posted the US-European Union Joint Declaration and Annexes from their recent summit. Both the US and the EU have agreed to promote an international climate change agreement in Copenhagen. Leading by example, they will fight protectionism by respecting the G-20 commitments to refrain from raising or imposing new barriers to trade and investments. Lastly, the US and EU will make determined efforts to seek the conclusion of a Doha Development Agenda agreement in 2010.

The US Dairy Export Council is finding it hard to "moo-ve" their product overseas.

To improve transit times, the Mediterranean Shipping Company (MSC) has announced that it will make some changes to its Golden Gate Service (GGS USAEC/Far East). The route previously included the Cape of Good Hope, but will now travel via the Suez Canal. In addition, Jeddah will be added as a port of call. There, MSC's dedicated feeder vessels will provide connections to all major ports in the Red Sea, Jebel Ali, and all other Gulf and Middle East ports.

The UK has updated its export controls, revoking OGEL Computers. The flags for OGEL LVS, OGEL Turkey, and OGEL Hong Kong have also been updated. The following categories are affected: 1, 3, 4, 5, 6, and 9.

Inbound Logistics published a feature story a couple of months ago containing supply chain advice for retailers, namely: consolidation and collaboration. The article uses Stein Mart as an example of how supply chain consolidation can improve overall efficiency. Until recently, carriers were dropping off merchandise directly from vendors to Stein Mart locations daily, and it was up to the employees at each location to remove packing slips from each carton, enter data into the system, and do a count verification - all very time consuming. Now, Stein Mart uses three (soon to be five) consolidation centers operated by third-party logistics providers. Carriers pick up merchandise from the vendors, deliver to the facilities, where they are sorted and shipped to three distribution centers. There, workers attach tickets, check for missing hangers, and ship off to Stein Mart stores around the country. Each Stein Mart now receives shipments one to two times per week.

At a conference this month, General Motors VP of Global Vehicle Engineering Mark Reuss stressed the importance of developing and maintaining good relationships with suppliers. According to an article on ReliablePlant.com,

ARGENTINA

The 2009 Tariff Schedule for Argentina has been updated. HTS numbers have been added and deleted. Existing HTS descriptions have been modified for products classified under certain chapters. The following HTS chapters are affected: 03, 15, 29, 30, 32, 38, 85, and 90.

The New York Times reports that European exporters has been confronted with more than 223 new and restrictive trade measures since the beginning of the trade crisis last year, but has avoided protectionism. A new report out last Friday introduces the new trade measures issues by EU Commission and its trading partners.

The Bureau of Immigration and Customs Enforcement (ICE) reports that border-wide seizures involving illegal drugs, weapons and illicit cash rose significantly in the latter half of fiscal year 2009. High-level representatives from three of the federal agencies responsible for combating contraband trafficking along the southern border attribute the rise to stepped-up enforcement efforts and increased cooperation.

The US is seeking talks with Mexico to determine who should field their complaint over 'dolphin-safe' tuna. In March, Mexico filed a complaint with the WTO regarding US labeling rules.

With new opportunities for foreign trade in Iraq, importers and exporters are calling for more reliable cargo transport services to neighboring countries. In response, Maersk Line has created a new dedicated feeder service between Jebel Ali and Umm Qasar (South Port terminal). The service will also include Kuwaiti-operated terminal services dedicated to Maersk Line. Operation will commence in mid-November.

Technology Services Company Reduces Corporate Risk with Comprehensive Screening of Restricted Parties

EAST RUTHERFORD, NJ, November 5, 2009 -- Management Dynamics, a leading provider of Global Trade Management (GTM) solutions, today announced that Communications Test Design, Inc (CTDI), a full service global engineering, repair and logistics company, implemented its RPS On-Demand solution, an advanced risk management solution that screens individuals and businesses to identify prohibited transactions based upon over 90 restricted party lists. Since automating restricted party screening, CTDI has significantly reduced corporate risk and improved compliance with global trade and security regulations while minimizing time and resources required for screening.

If you have not done so already, US Customs & Border Protection (CBP) is now accepting registrations for Importer Security Filing (ISF or 10+2) progress reports from ISF Filers and C-TPAT Tier2 and 3 importers to

The Export-Import Bank of the United States has established a $250 million credit facility to finance renewable energy exports, including solar, wind and geothermal energy as part of a new carbon policy the federal credit agency announced on Nov. 3.

ASIA-PACIFIC

• Japan has introduced the Japan Vietnam EPA Preferential tariff. Chapters across the tariff have been affected.
• Updates have been made to the Malaysian General Duty and Sales Tax for 2009, affecting various products and chapters across the tariff.
• Taiwan has added and deleted several HTS numbers for meat products. These updates affect HTS chapter 02.

EUROPE

• The EU Harmonized Tariff Schedule has been modified. The updates include new, changed, and deleted preferential duties affecting certain chapters.

Critics of trade agreements often claim that by greenlighting free trade, labor standards decrease. Their reasoning is that, in the rush to produce the cheapest possible product, the workers rights and safety are sacrificed.

An update has been made to the European Union export embargoes and sanctions. An arms embargo against The Republic of Guinea has been added.

Over the past few years, we have seen companies outsource more and more, and as a result supply chains have grown more complex. The goal of this outsourcing was to reduce costs - if a manufacturer can get their supplies cheaper by using an outside source, then of course they are going to go with the most economical decision. The more a company outsources, the more complicated their supply chain becomes, and according to a new study released by the Business Continuity Institute, the greater the risk for supply chain disruption. The manufacturing industry in particular has been the hardest hit from supply chain failure - manufacturers have reported a 58% increase in disruption to their supply chains over the last 12 months, compared to 35% across all industry sectors.

The holiday shopping season has officially begun (confirmed yesterday, when I saw my first Christmas-themed commercial for the year), and retailers have already started stocking up. After last year's disappointing sales and excess inventory, and sales being weaker than expected in September, retailers and manufacturers are likely to err on the side of caution when ordering their stock this year. However if business should suddenly pick up, and retailers decide to order extra inventory at the last minute, the global freight industry lacks the capacity at the moment to expand cargo volumes rapidly, and retailers and manufacturers could be out of luck. The Financial Times discusses this dilemma in Monday's article, Freight crisis raises fears of empty shelves.

APL has announced the launch of the Japan-Thailand-Vietnam (JTV) Service. Port rotation will include the following locations: Tokyo, Yokohama, Kobe, Chiwan, Hong Kong, Laem Chabang, Ho Chi Minh City, Kaohsiung. This service will enable both importers and exporters to access APL's global mainline services network via Hong Kong and Kaohsiung. Shippers can also tap into the Philippines market with faster connections with Kaohsiung.

The DC bar will be holding two seminars in November on Export Controls. They are open to members, non-members, lawyers, and non-lawyers but the sessions sound like they will be more tailored to lawyers. Cost for each is $129; but if you register for both you save $29.

According to Industry Week, China and the United States are serious about combining efforts to reduce the number of issues with the safety of Chinese-made toys, drywall and other consumer goods that have made a number of people sick or injured.