Thursday, July 29, 2010

Trade News Update


FTA Tug-of-War

Introduced in April 2009, H.R. 1875 establishes an Emergency Commission to End the Trade Deficit. Concern about the impact of the growing trade deficit, the commission will examine establishment, administration and the impact of trade policies. The commission is charged with developing a trade policy to eliminate the U.S. merchandise trade deficit by January 1, 2019 and developing a competitive trade policy for the 21st century. The Commission must submit the plan no later than 16 months after the enactment of the Act. As part of this Act, The President is prohibited from submitting any free trade agreement or legislation implementing a free trade agreement to Congress until the Commission’s report has been delivered to Congress and the President. The House passed this bill on July 28, 2010.

On July 27, 2010, H.R. 1562 was introduced and requests the immediate implementation of the U.S. Columbia Trade Promotion Agreement, U.S. Panama FTA and the U.S. Korea FTA.

So, will the pending FTAs be implemented before HR 1875 puts them on hold?


Watch CBP on COPS - July 31st

The U.S. Customs and Border Protection will be featured on the Fox network television show COPS at 8:00 p.m. ET on Saturday, July 31.

Saturday’s episode, Protecting Borders and Stopping Crime show officers from San Ysidro Customs and Border Protection in California engaging in a sting operation to catch undocumented aliens coming into the U.S. Later, the officers halt a suspicious vehicle crossing the border, which eventually leads them to a major drug bust.



TSA: Certified Cargo Screening Program

Tick Tock! On August 1, 2010, the Transportation Security Administration (TSA) Certified Cargo Screening Program (CCSP) will require that 100% of all cargo shipped on passenger aircraft to be scanned before it can fly.

In 2007, Congress passed the Implementing Recommendations of the 9/11 Commission Act more commonly known as the 9/11 Act. The new law mandated that all cargo transported on a passenger aircraft be screened for explosives by August 1, 2010.

All cargo requires screening at the piece level. Skids and pallets must also be screened. To reduce the anticipated delays and costs at airline facilities, the TSA allows for screening at approved Certified Cargo Screening Facilities (CCSFs). You might be thinking that your cargo won’t be affected because it is shipped by an express carrier such as FedEx, UPS or DHL. While the majority of the cargo these companies handle may be shipped on cargo planes, they also use passenger aircraft. You should expect delays. Think about the lines and inspection process when you go through security at the airport and then picture the screening of every individual package. Check with your broker/freight forwarder for more information about your options for screening.

Click HERE to learn more about CCSP.

Tuesday, July 27, 2010

CBE Study Tip 2: Study Aids


In our first study tip, we discussed the importance of obtaining all of the required resources that are necessary to take the exam. This study tip focuses on the various study aids and materials available to help you prepare for the exam.

The percentage of people who pass the Customs Broker Exam the first time is low, ranging from 3% to 25%. While it is possible to pass the Customs Broker Exam using only the required exam materials, most people find using a variety a supplemental materials and exam study courses significantly increases their potential of passing the exam. The use of additional study materials also improves comprehension and makes better use of limited study time.

Some people learn better by actually doing a task, while others need to read the instructions or hear the instructions. Determining your style of learning and how you learn the best is the key to studying for the exam. If you do not have time to go to lectures, you may prefer correspondence or online courses. If you comprehend better by hearing the information, you may prefer audio lectures or classroom instruction. You should seriously consider the time you have to commit to studying and your learning style when selecting study courses and training materials. We have listed just a few options for using supplemental study aids and courses here.

1. Past Exams
Taking the past exams is a good way to become familiar with the format and types of questions that appear on the test. Using past exams as a study aid also helps you learn the materials, boosts confidence, shows your progress, as well as areas that need improvement. Although not a frequent occurrence, almost all of the questions on the October 2009 came from the collection of previous exams.

2. DVD's, CD's & MP3’s
If you want the convenience of learning at your own pace, DVD's CD's and MP3’s allow you to study from the comfort of your home or office and may be reviewed as often as you like. CD's and MP3’s provide audio which is great for listening to during your daily commute or walk around the block. The DVD's usually simulate a classroom environment, but the advantage is that you can view the lectures at your convenience rather than commute to a class.

3. Online Study Courses
For students who want the convenience of studying at their own pace, online courses provide instruction, examples, quizzes and other tools that are usually available 24/7 anywhere you have an Internet connection.

Boskage Commerce Publications offers a variety of courses, study plans and other materials designed to fit different learning styles, experience levels and needs of students. Click HERE to view a variety of materials and courses. Consider your learning style as you review each of these options. We sincerely believe you will find that one or a combination of several can fit your needs perfectly; however, we may be able to customize plans to fit your needs. Be sure to check out the Customs Broker Exam Room Guide, a perfect resource for regular study and use on test day. This coil bound book contains all CATAIR sections, Directives and miscellaneous resources that will be tested on the upcoming exam. The Guide also includes quick-reference fact sheets such as Incoterms, trade program indicators, types of appraisement, acronyms, CBP fees and more.

Stay tuned to the Boskage Trade News for more helpful hints on studying for the Customs Broker Exam! The next article will provide the pros and cons of using the loose-leaf version of the CBP Regulations. We also welcome any suggestions on topics you would like to see discussed.

Thursday, July 22, 2010

CBP Posts New C-TPAT Risk Assessment Information


U.S. Customs and Border Protection (CBP) recently posted risk assessment information for C-TPAT on its web site. Along with this document, they also posted frequently asked questions (FAQ) related to the supply chain security risk assessment. The Supply Chain Security Specialists have been making comments related to specific risk assessment activities during validation and revalidation reviews.


Click HERE to view the "C-TPAT 5 Step Risk Assessment Process Guide"

Click HERE to view the FAQs.

For organizations that are members of C-TPAT, check the documents section in your secure portal for additional risk assessment documents and information from other workshops conducted earlier this year.

Tuesday, July 20, 2010

CBE Study Tip 1: Required Resources


If you plan to take the October exam, it is important develop a study plan that guarantees your chances of success. Boskage wants to help you achieve your goal of passing the exam; therefore, we are starting a series of articles to support you on your journey to success! Our first topic in this series focuses on exam resources.

The first step in your plan should be acquiring the required texts and study materials. These materials come in two categories, “required” and “study aids”. Required materials are those that students must have because questions on the exam have been selected from these sources. CBP lists the required materials in the Notice of Examination. The required materials are listed below and you should obtain them now if do not already have them. All of the required materials can be purchased from Boskage Commerce Publications.

Required Exam Resources

Harmonized Tariff Schedule of the United States (2010 version)
It is important to use this edition since questions often require the determination of the correct HTS number, duty rate and applicability of Free Trade Agreements, all of which may change slightly from year to year.

2.Title 19, Code of Federal Regulations (revised as of April 1, 2009) Parts 0 to140, 141 to 199
Last year, CBP included Parts 200 to End on the Exam; however, it appears that these will not be required for the October 2010 Exam.

Part 149 covering ISF was added to Title 19 in 2009, so the new material would be a great target for this exam.

3. Customs and Trade Automated Interface Requirements (CATAIR)

• Appendix B - Valid Codes
• Appendix D - Metric Conversion
• Appendix E - Valid Entry Numbers
• Appendix G - Common Errors
• Appendix H - Census Warning Messages
• Appendix L - Drawback Errors
• Glossary of Terms

4. Instructions for Preparation of CBP Form 7501 (8-30-2005)

5. Submission Changes for Supplemental Information Letters and Post Entry Amendments

6. Remote Location Filing Eligibility Requirements

7. Directives

• 3510-004, Monetary Guidelines for Setting Bond Amounts
• Amendment to 3510-004 for Certain Merchandise Subject to Antidumping/Countervailing Duty Cases
• 3550-055, Instructions for Deriving Manufacturer/Shipper Identification Code
• 3550-067, Entry Summary Acceptance and Rejection Policy
• 3550-079A, Ultimate Consignee at time of Entry or Release
• 3560-001A, Census Interface-Processing Procedures
• 5610-002A, Standard Guidelines for the Input of Names and Addresses Into Automated Commercial System (ACS) Files

Note: The use of any versions of the listed references other than those recommended is at the applicant's own risk.

Seeing this list of resources on paper and as a stack of documents on your desk can seem quite overwhelming. We’ll discuss organization of your materials in an upcoming article. Stay tuned to the Boskage Trade News for more helpful hints on studying for the Customs Broker Exam. The next article will cover the second category of exam resources, the “Exam Study Aids”.

Wednesday, July 14, 2010

CBP Posts Notice of Exam for October 2010

U.S. Customs and Border Protection posted a notice to its web site announcing the October 2010 Customs Broker License Exam. The exam will be held at various locations on Monday, October 4, 2010. Contact your local port office to verify testing locations. Applications (CBP 3124E) and the exam fee of $200 must be received on or before Friday, September 3, 2010. Applicants should bring the following reference materials to the exam. Please note the appropriate editions for the HTSUS and CFR.

- Harmonized Tariff Schedule of the United States (2010 version)
It is important to use this edition since questions often require the determination of the correct HTS number, duty rate and applicability of Free Trade Agreements, all of which may change slightly from year to year.

- Title 19, Code of Federal Regulations (revised as of April 1, 2009) Parts 0 to140 and 141 to 199
Last year, CBP included Parts 200 to End on the Exam; however, it appears that these will not be required for the October 2010 Exam.

Part 149 covering ISF was added to Title 19 in 2009, so it is a target for this exam.

- Customs and Trade Automated Interface Requirements (CATAIR)

  • Appendix B - Valid Codes
  • Appendix D - Metric Conversion
  • Appendix E - Valid Entry Numbers
  • Appendix G - Common Errors
  • Appendix H - Census Warning Messages
  • Appendix L - Drawback Errors
  • Glossary of Terms
- Instructions for Preparation of CBP Form 7501 (8-30-2005

-Submission Changes for Supplemental Information Letters and Post Entry Amendments

-Remote Location Filing Eligibility Requirements

- Directives
  • 3510-004, Monetary Guidelines for Setting Bond Amounts
  • Amendment to 3510-004 for Certain Merchandise Subject to Antidumping/Countervailing Duty Cases
  • 3550-055, Instructions for Deriving Manufacturer/Shipper Identification Code
  • 3550-067, Entry Summary Acceptance and Rejection Policy
  • 3550-079A, Ultimate Consignee at time of Entry or Release
  • 3560-001A, Census Interface-Processing Procedures
  • 5610-002A, Standard Guidelines for the Input of Names and Addresses Into Automated Commercial System (ACS) Files
It’s time to get ready for the next Customs Broker Exam! Click HERE for a complete list of the Boskage study plans and products designed to help you study and pass the exam! Remember, there is no substitute for actually reading and studying the required materials. Visit the Boskage Trade News Blog for additional for import/export news updates, articles about specific trade topics and helpful posts related the Customs Broker Exam!


NEW:
The online course with a dedicated instructor and online discussion forum started July 12th. It’s not too late to get started. Click HERE to check it out!

Tuesday, July 13, 2010

Welcome DAP & DAT!

After much work by the ICC appointed experts, Incoterms® 2010 is scheduled to be launched in September and go into effect on January 1, 2011. Used in international and domestic contracts for the sale of goods, Incoterms help parties avoid misunderstandings by clearly identifying the obligations of the buyer and seller.

Although the book has not been officially released, a few details have been provided for the public. The 2010 edition will include 11 terms instead of the 13 in the previous edition. We welcome two new terms to the list of 11, DAT and DAP. We say goodbye to DAF, DES, DEQ and DDU. In addition to the 11 rules, Incoterms® 2010 includes:

· Information on security-related responsibilities for shipments.
· Guidance for the use of Incoterms in domestic trade.
· Notes and graphics to assist users in selecting the correct rule for the transaction.
· Information about the use of electronic procedures.


The Incoterms are arranged in two categories as follows:

Any Mode of Transport
CIP - Carriage and Insurance Paid
CPT - Carriage Paid To
DAP - Delivered At Place
DAT - Delivered At Terminal
DDP - Delivered Duty Paid
EXW - Ex Works
FCA - Free Carrier

Sea and Inland Waterway Transport Only
CFR - Cost and Freight
CIF - Cost, Insurance and Freight
FAS - Free Alongside Ship
FOB - Free On Board


Starting in late September 2010, the U.S. Council for International Business will offer a series of one-day seminars to familiarize U.S businesses with the new rules. Classes will be taught by Incoterms expert and appointed member of the revision team, Frank Reynolds. Attendees will receive a copy of the official ICC Incoterms® 2010 book and a companion book, Incoterms® for Americans®, as well as comprehensive seminar notes. Click
HERE to view the seminar.

Tuesday, July 6, 2010

New Trade Agreements on the Horizon

We take a little break from the discussion of current trade agreements to give you a preview of the various agreements that are currently being considered.

U.S. –Korea Free Trade Agreement

The KORUS FTA was signed by the Republic of Korea and the United States in 2007, but has not been approved by Congress. This agreement would the first U.S. free trade agreement with a North Asian country and could be the catalyst for other agreements in the region. Under the FTA, nearly 95 percent of bilateral trade in consumer and industrial products would become duty free within three years of the date the FTA enters into force, and most remaining tariffs would be eliminated within 10 years.

There are still some issues to be addressed before President Obama will present it to Congress. Some of the concerns involve leveling the playing field for U.S. workers and manufacturers in the automotive and beef industries.

Click HERE to read the final text of the agreement.


U.S. – Colombia Free Trade Agreement

The U.S. –CFTA was signed in 2006 and is also awaiting approval by Congress. The Colombia FTA will immediately eliminate approximately 80% of tariffs on U.S. exports, with all remaining tariffs phased out over ten years. The Colombia FTA also includes important disciplines relating to customs administration and trade facilitation, technical barriers to trade, government procurement, investment, telecommunications, electronic commerce, intellectual property rights, and labor and environmental protection.

This agreement created more concern because of the blatant disregard for human rights and violence against workers in Colombia. The AFL-CIO opposed the agreement until the Colombian government could show sustained improvements in this area. The implementation of this act was delayed in 2008 when it was removed from the ‘Fast Track” timetable. President Obama opposed this agreement during his campaign; however, he met with Colombian President Alvaro Uribe in June 2009 and asked the USTR to work with Colombian representatives to move the agreement forward.

Click HERE to read the final text of the agreement.

Click HERE to read the U.S._CFTA: Economic and Political Implications (April 2010)


Trans-Pacific Partnership

The United States entered negotiations for a regional, Asia-Pacific trade agreement, known as the Trans-Pacific Partnership (TPP) Agreement to create a high standard, broad-based regional trade agreement and expand American exports in the Asia-Pacific region. The first round of negotiations took place from March 15-19 in Melbourne, Australia. The second round took place from June 14-19 in San Francisco, CA. During this meeting, approximately 25 U.S interested parties were represented, including AFL-CIO, FedEx, National Farmers Union and the U.S. Chamber of Commerce. There are currently eight partner countries - Australia, Brunei Darussalam, Chile, New Zealand, Peru, Singapore, the United States, and Vietnam. Negotiations are expected to extend into 2011.

Click HERE to read additional information about the TPP.