OCEANAIR: News

Last updated on 2/01/12

New Argentina Import Controls Effective February 01
In an effort to stem a falling trade surplus, Argentina will be imposing a new import policy on February 01, 2012.

A new policy has been announced by the tax agency, AFIP, which will require that importers apply for an import permit to AFIP by presenting a sworn statement to the agency to obtain permission to allow their import. Officials claim the decision to permit or deny the requests will be made within 15 working days after submission.

This measure is just the latest in a series of measures to help Argentina control their shrinking trade surplus. As this new measure is difficult to interpret and understand, we suggest you contact your trading partners in Argentina for more specific information as this process will likely cause delayed or denied imports.

If you have any questions, please contact Harvey Waite at OCEANAIR Inc at 781-286-2700.

OCEANAIR INC., A CTPAT APPROVED BROKER AND FORWARDER
Customs-Trade Partnership Against Terrorism

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OFAC Flirts With 21st Century
The Office of Foreign Assets Control ("OFAC") has just debuted a new web page which features a facility allowing users to search OFAC's Specially Designated Nationals and Blocked Persons list. Go to that new page by clicking here. Put in a name and it quickly spits out the results. You can even export those results to an Excel spreadsheet. The page worked perfectly on my Android phone in case you need to consult the SDN list while on the run.

But before you get too excited there is a major limitation. As the hilariously prolix disclaimer attached to the site notes, all searches are literal. No close matches are returned. Misspelled names won't yield any results. This is a big deal since a large number of the names on the list are roman character transliterations from the Arabic and Persian where there is no agreed convention on transliteration.

Let's just pull an example that immediately comes to mind like…say…Khadaffi. Enter that last name and you get no results, even though there are members of the Khadaffi family that are alike, kicking and still on the SDN list. In all fairness, ABC News reports that there are more spellings of the notorious family name than you can shake a stick at.

Beyond that, the lawyers have gotten to the page with an OFAC version of the "don't try this at home, kids" disclaimer:

Use of this system implies understanding that searches performed by SDN Search are conducted at the user's own risk, and that the search results provided by SDN Search do not represent an official confirmation by the Office of Foreign Assets Control or the Department of the Treasury of the existence or absence of a match between any information entered by the user and any information contained on the SDN List. The use of SDN Search does not limit or excuse any liability for any act undertaken as a result of, or in reliance on, such use.

In other words, use at or own risk and if the site misses a match, well, that's your problem and OFAC reserves the right to fine you $250,000 anyway. Even if the mistake was OFAC's fault.

This is not much different from the ridiculous disclaimer that OFAC prints each time it prints a new version of the SDN list in the Federal Register:

The list published as Appendix A is not definitive or all-inclusive, and new or updated information may be added to OFAC's Web site and published in the Federal Register at any time. U.S. persons or persons subject to U.S. jurisdiction, depending on the sanctions program, are advised to check the Federal Register and the most recent version of the SDN List posted on OFAC's Web site for updated information on designations and blocking actions before engaging in transactions.

So even with the printed SDN list, OFAC has to tell you that you can't rely on it and that you can't engage in any transaction without searching the last century of the Federal Register all the way back to the first issue in 1936 to see if a party was designated by OFAC but inadvertently left off the SDN list. Right.

(For a humorous rewrite of the search site disclaimer, go read Scott Kinney's blog post on it.)

Reprinted from Export Law Blog by permission of its author, Clif Burns, Bryan Cave LLP, clif.burns@bryancave.com

OCEANAIR Note: Click on the source link www.exportlawblog.com for an easy free subscription. An excellent source for the compliance minded.

OCEANAIR INC., A CTPAT APPROVED BROKER AND FORWARDER
Customs-Trade Partnership Against Terrorism

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Merchandise Processing Fee Increase
Recent trade legislation, H.R. 2832, was signed into law on October 21, 2011, changing the merchandise processing fee (MPF) rate for formal entries from 0.21% (.0021) to 0.3464% (.003464), effective October 1, 2011. The minimum and maximum fees, $25 and $485 respectively, did not change. CBP is currently in the process of modifying our automated systems to accept the new MPF rate of 0.3464%. We do not have an estimated completion date at this time; however, we will notify the trade as soon as possible via the Cargo Systems Messaging Service, when filers may begin transmitting entry summary information with the new MPF rate. (Cargo Systems Messaging Service)

For entries filed on or after October 1, 2011, until the CBP system changes take effect with the 0.3464% rate, CBP will bill the importer for the increase in MPF. CBP will disregard differences of less than $20.

Source: Customs & Border Protection

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Anti-Boycott Penalty
We did What? When?

Sometime in 2006, Weiss-Rohlig USA LLC, a logistics company, handled an export shipment and issued a certificate that "The carrying vessel is allowed to enter Kuwaiti ports."

On October 04, 2011, five years later, the company was fined $8000.00 for violations of the Antiboycott Regulations.

The company was subject to two violations, one for issuing the statement and one for failing to report the statement to the Office of Antiboycott Compliance.

I am sure the LAST thing in this world the company ever expected was to receive a charging letter dated September 6, 2011 for this violation. As the offending language appeared in a letter of credit, one can only assume that the bank did its due diligence back in 2006 by reporting the violation to the Boycott Office while the logistics company was apparently unaware of the regulations.

This is just one of several recent violations coming out of the Office of Antiboycott Compliance. For further information you may refer to 15CFR Parts 760-766 or contact Harvey Waite of OCEANAIR Inc at 781-286-2700.

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IMPORTANT! Recent Fines and Penalties Assessed by BIS/OFAC July & August 2011
Please note the attached list is only a partial listing of penalty actions taken by the Bureau of Industry & Security (BIS) and the Office of Foreign Assets Control (OFAC) for a relatively short period of time. If you have any questions regarding this material, please contact Paul D'Eon or Harvey Waite of OCEANAIR Inc at 781-286-2700 or pdeon@oceanair.net or hwaite@oceanair.net.

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Most Paper Courtesy Notices of Liquidation to be Eliminated
U.S. Customs and Border Protection has issued a final rule under which it will discontinue its practice of mailing paper courtesy notices of liquidation to importers of record whose entry summaries are electronically filed in the Automated Broker Interface. This change will be implemented as of the first day on or after Sept. 30 that CBP can provide importers with complete liquidation reports, including liquidation dates, electronically through the Automatic Commercial Environment portal. IORs whose entries are not filed through ABI will continue to receive paper courtesy notices of liquidation.

Courtesy notices of liquidation provide informal, advance notice of the liquidation date and are not required by statute. Currently, CBP transmits electronic courtesy notices to all ABI filers: IORs who file their own entries and customs brokers who file as the duly authorized agents of the IOR. CBP also mails paper courtesy notices, on CBP form 4333-A, to all IORs whose entry summaries are set to liquidate by each port of entry. As a result, IORs that are also ABI filers receive both an electronic and a paper courtesy notice.

To streamline the notification process and reduce printing and mailing costs, CBP is discontinuing mailing the paper courtesy notice to IORs who personally receive an electronic courtesy notice or whose broker receives an electronic notice on their behalf. CBP estimates that over 90% of paper courtesy notices will be eliminated under this rule, resulting in a $3.8 million annual savings.

In response to concerns that this change will make IORs reliant on their brokers for liquidation information, presenting significant liability issues if the broker fails to provide such information in a timely manner, CBP states that (a) liquidation information is related to "customs business" and brokers therefore cannot withhold it from their importer clients, (b) ACE is being reprogrammed to allow all IORs to monitor liquidation of entries filed under their IOR number through the ACE Portal, and (c) IORs may gain limited access to their broker's ACE Portal account to obtain reports for entries filed on their behalf.

Importers who use paper notices of liquidation to monitor their outstanding liabilities to Customs as part of their internal compliance procedures should sign up for ACE. Sandler, Travis & Rosenberg, P.A., or Sandler and Travis Trade Advisory Services Inc. can help importers who do not currently have an ACE account to apply for one. For further information, please contact Beth Ring at (212) 590-4885 or David Seeley at (248) 474-7200.

OCEANAIR Note: for additional information, consult the source document or please contact Bill Connolly or Richard Somers at OCEANAIR Inc 781-286-2700.

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Medical Device Labeling Requirements Under Review
The Food and Drug Administration is inviting public comments through Sept. 8 on information collections associated with the medical device labeling regulations. FDA regulations require manufacturers, importers and distributors of a wide range of medical devices to disclose specific information about themselves or the devices, including content quantities and adequate directions for use, on the label or labeling for the devices. FDA regulations also require the maintenance of various records, such as invoices, shipping documents and records of sale or distribution, for specific products.

Source Document 1

OCEANAIR Note: for additional information, consult the source document or please contact Bill Connolly or Richard Somers at OCEANAIR Inc 781-286-2700.

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EU Expands Ban on Hazardous Substances to Almost All Electronic Equipment
New European Union rules substantially expanding the ban on heavy metals and other dangerous chemicals in electrical and electronic equipment took effect July 21. However, EU member states have 18 months to incorporate the new rules into their national legislation, during which time the old rules will continue to apply.

An EU press release states that the new rules constitute a revision of the RoHS directive, which took effect in 2003 and bans lead, mercury, cadmium, hexavalent chromium and the flame retardants polybrominated biphenyls (PBB) and polybrominated diphenyl ethers (PBDE) in several categories of electrical and electronic equipment, including household appliances and information technology goods. The rules will now cover virtually all electronic equipment, cables and spare parts. However, exemptions can still be granted in cases where no satisfactory alternative is available. In addition, photovoltaic panels are exempted in an effort to help the EU reach its objectives for renewable energy and energy efficiency.

According to the EU, the key elements of the revised directive include: a phase-in of the new requirements with full compliance anticipated by 2019, a review of the list of banned substances by July 2014 and periodically thereafter, clearer and more transparent rules for granting exemptions from the substance ban, improved coherence with the Regulation on the Registration, Evaluation, Authorization and Restriction of Chemicals, and the reservation of the CE marking denoting compliance with European norms for electronic products that also respect RoHS requirements.

OCEANAIR Note: This is a large expansion of the scope of the present RoHS Directive originally adopted in 2003. The directive expands coverage to a much wider range of products, including medical devices, electrical appliances, electronic equipment, cables and spare parts.

For further information, please visit the RoHS site at: http://www.rohs.eu/english/index.html

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Lacey Act Import Declaration for Plant Products Could See Changes
The Department of Agriculture's Animal and Plant Health Inspection Service is inviting public comments by Aug. 29 on regulatory options that could address certain issues that have arisen with the implementation of the declaration required for imports of certain plants and plant products under the Lacey Act amendments of 2008. This declaration must contain the scientific name of the plant, the value of the importation, the quantity of the plant and the name of the country from which the plant was harvested.

Specifically, APHIS is seeking input on the following issues.

De minimis exception - Whether an exception from the declaration requirement for products containing minimal amounts of plant material could be developed that would be less burdensome while still carrying out the intent of the Lacey Act amendments, as well as the threshold (e.g., 2%, 5% or 10%) for such an exception in terms of the volume, weight and/or value of plant material in each item being imported. This exception would not apply to products containing plant material from species of conservation concern that are listed in an appendix to the Convention on International Trade in Endangered Species of Wild Fauna and Flora, as an endangered or threatened species under the Endangered Species Act of 1973 or pursuant to any state law that provides for the conservation of species that are indigenous to the state and are threatened with extinction.

Composite products - How importers may comply with the declaration requirement when importing composite plant products when the genus, species and country of harvest of some or all of the plant material may be extremely difficult or prohibitively expensive to determine. One approach APHIS is considering is to define the term "composite plant materials" and then formally recognize a de minimis exception from the declaration requirement for products containing such materials. Using this approach, "composite plant materials" might be defined as plant products and plant-based components of products where the original plant material is mechanically or chemically broken down and subsequently re-composed or used as an extract in a manufacturing process.

Comments are also sought on two possible approaches to incorporating such a definition into a de minimis exception from the declaration requirement for composite plant materials. In the first approach, importers would have to identify the genus, species and country of harvest of no less than a given percentage of the composite plant material content, measured on the basis of either weight or volume. In the second approach, the declaration would have to contain the average percent composite plant content, measured on the basis of either weight or volume, without regard for the species or country of harvest of the plant, in addition to information as to genus, species and country of harvest for any non-composite plant content.

Dated products - How to accommodate products made of re-used plant materials or plant materials harvested or manufactured prior to the Lacey Act amendments and for which identifying the country of harvest, and possibly species, would be difficult if not impossible.

Declaration revision - Whether to revise the import declaration to substitute a new term, "harvest location," for the term "country of harvest," which experience has indicated is so similar to the customs term "country of origin" as to be confusing.

Shorthand for common species - Whether groups of species commonly used in commercial production could be given a separate name that could be entered on the declaration form as a type of shorthand identification of genus and species, such as the currently recognized SPF acronym for spruce, pine and fir.

Source Document 1

If you have any comments or questions, please do not hesitate to contact OCEANAIR Inc for Bill Connolly or Richard Somers at 781-286-2700.

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Carriers Implementing Fees for No-Shows, Rolled Shipments
Jun 24, 2011 3:48PM GMT
APL, Maersk both moving towards new system of service
Peter T. Leach
http://www.joc.com

Ocean carriers are moving toward space and volume guarantees in agreements with shippers that include fees on both shippers and carriers if either side fails to meet the commitments spelled out in the agreements.

APL included such guarantees and mutual penalties in some trans-Pacific contracts with shippers this year. "There are a number of contracts this year where we wrote service guarantees into the contract, where we have a certain on-time performance guarantee and a certain space allotment by customers," said Bob Sappio, APL's vice president of Pan-American Trades.

By the Numbers: Container Rate Benchmark
"If a customer fails to meet that space allotment within a window of tolerance, it will pay a penalty, and likewise if we fail to meet the service guarantee or the space allotment, we would be required to pay the customer a penalty," he said. "The penalty is several hundred dollars per dry container."

Maersk Line is developing a similar plan that it will roll out globally by mid-summer next year that will include what it calls a "load protection fee" on shippers that fail to deliver booked containers to the port of departure and a similar fee it would pay to shippers for booked containers that are not loaded on outbound Maersk ships.

"We will roll it out on a rifle-shot basis on trades that are ready for it, and not just on a big bang rollout," said John Nielsen, Maersk Line's senior director of charge management, network and product. Under the plan, Maersk would allow a grace period for changes or cancellations by the shipper until seven days before the booked departure from the first load port, he said.

"From then on changes to a booking hurt our planning, therefore we will apply a charge on all reductions of booking or moves or cancellations or no-show," he said. The charge would be $100 per dry container and $500 per reefer container.

Similarly, Maersk will pay the same charges to a shipper for a container that it fails to load on the scheduled ship. "It's a quid pro quo," said Nielsen.

He said Maersk will make final a decision on the schedule for the rollout in the third quarter, based on pilot tests conducted this year in Sweden, Germany and some Latin American countries. It also conducted a pilot with a nominal $10 per container fee for no-show or rolled export containers in the Pacific Northwest last year.

-- Contact Peter T. Leach at pleach@joc.com. Follow him on Twitter @petertleach.

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Sales Manager Fined $500,000 by BIS for One Export
The Bureau of Industry and Security ("BIS") just released settlement documents pursuant to which a regional sales manager at PPG agreed to a $500,000 penalty arising out of one unlicensed export of EAR99 epoxy paint. The paint, valued at $25,0000, was allegedly for use by a Chinese company constructing a nuclear power facility for the Pakistan Atomic Energy Commission. This export required a license because PAEC is on the BIS Entity List. It may also have required a license under the end-use policy in section 744.2 of the Export Administration Regulations depending on the nature of the facility and whether it was subject to IAEA inspections or not. The settlement documents suspended all but $15,000 of the penalty, which are required to be paid with an initial payment of $5,000 and then four quarterly payments of $2,500.

BIS managed to parlay one export into two violations by charging the sales manager both with conspiring to violate the regulations and with aiding and abetting a violation of the regulations. The documents allege that the sales manager conspired with another sales employee, a distributor and a freight forwarder and that he aided and abetted the export by his employer. By recharacterizing one export as two violations and by imposing the maximum penalty for each, the agency was able to ring up a $500,000 penalty. I suppose that the agency figured they were giving the sales manager a break by not charging him with solicitation, acting with knowledge and misrepresentation in connection with the one export to run the tally up $1.25 million.

Do you remember when BIS said that with the new and improved $250,000 penalty authority, the days of piling on offenses to run up the penalty amount were over? Well, that didn't last long did it? I suspect we are about to here a plea from BIS for authority to impose $1,000,000 for each violation.

Of course, with the $485,000 hanging over him, woe betide the sales manager if he is a day late or a dollar short in any of his installment payments. BIS will own his house, and he and his family will be living in a refrigerator box under a freeway overpass.

Reprinted from Export Law Blog, June 22, 2011, by permission of its author Clif Burns, Bryan Cave LLP, clifburns@bryancave.com
See www.exportlawblog.com for easy free subscription details for this excellent newsletter.

If you have any questions, please contact Harvey Waite or Paul D'Eon at OCEANAIR Inc 781-286-2700.

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New License Exception STA now available in the Export Administration Regulations (EAR)
A new License Exception, STA, has been published in the Federal Register on June 16, 2011. You must read the entire text of the update before utilizing this License Exception as you need to understand any restrictions or exemptions applicable. The entire text is available at the following link: http://www.gpo.gov/fdsys/pkg/FR-2011-06-16/pdf/2011-14705.pdf

A brief introductory selection follows:

License Exception Strategic Trade Authorization (STA) authorizes, with conditions, the export, reexport and transfer (in-country) of specified items to destinations that pose relatively low risk of unauthorized uses. To safeguard against reexports to destinations that are not authorized under License Exception STA, License Exception STA imposes certain notification and consignee statement requirements. The exception does not alter any of the General Prohibitions in the EAR against exports, reexports, or transfers to proscribed end users, end uses, or destinations. Under the direction of the Office of Management and Budget, this rule was reviewed and cleared by the Departments of Defense, State, Energy, the Treasury, Homeland Security, and Justice.

For further information, please contact Paul D'Eon or Harvey Waite at OCEANAIR Inc, phone 781-286-2700.

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Significant changes to the CCL (Commerce Control List) due to Implementation of Wassenaar Arrangement 2010 Plenary Agreements
Please consult 76 Fed. Reg. 29610 for the specifics of these changes effective May 20, 2011. Listed below are the CCLs affected. Here is a link to the Federal Register:
http://www.gpo.gov/fdsys/pkg/FR-2011-05-20/html/2011-11134.htm

In July 1996, the United States and thirty-three other countries gave final approval to the establishment of a new multilateral export control arrangement called the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies (Wassenaar Arrangement or WA). The Wassenaar Arrangement contributes to regional and international security and stability by promoting transparency and greater responsibility in transfers of conventional arms and dual use goods and technologies, thus preventing destabilizing accumulations of such items. Participating states committed to exchange information on exports of dual use goods and technologies to non-participating states for the purposes of enhancing transparency and assisting in developing a common understanding of the risks associated with the transfers of these items. For more information on the Wassenaar Arrangement go to http://www.wassenaar.org/.

Revisions to the Commerce Control List
This rule revises the following 53 ECCNs on the Commerce Control List (CCL) to implement the changes to the Wassenaar List of Dual-Use Goods and Technologies agreed to at the December 2010 WA Plenary meeting: 1A002, 1A004, 1B001, 1C003, 1C006, 1C008, 1C010, 1C011, 1C111, 2A001, 2B001, 2B005, 2B006, 3A001, 3A002, 3A991, 3B001, 3C001, 3E001, 4A001, 5A001, 5D001, 5E001, 5A002, 5D002, 5E002, 6A001, 6A002, 6A003, 6A005, 6A006, 6A008, 6D001, 6D003, 6E001, 6E002, 6E003, 7A001, 7A002, 7A003, 7E004, 8A001, 8A002, 9A001, 9A003, 9A991, 9B001, 9B002, 9B008, 9D003, 9D004, 9E001 and 9E003.

For specifics, please consult the Federal Register publication link above.

If you have any questions, please consult your responsible compliance authority, compliance consultant or call Harvey Waite or Paul D'Eon of OCEANAIR at 781-2862700.

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ISF Penalties on the Horizon
January 26, 2010 seems like an ancient date in history now. It has almost been a year and a half since we all began mandatory ISF filings. It is time for an ISF update to let you know the current status of the program.

I do not want to bog you down with all of the figures, but I will give you some highlights. This is all public information, much of which was detailed in a recent webinar sponsored by the NCBFAA which included individuals from CBP and the trade community presenting.

85 – 90% of ISF filings are being done by customs brokers
3.1 million ISF filings have been done YTD in 2011
2,200 ISF Filers currently registered with CBP
142,500 Importers
92% ISF average compliance rate nationally

Full Enforcement in effect as of 1/26/11

Liquidated Damage claims have been issued by the ports and sent to HQ for review as per CBP policy.
HQ has completed the review of these. Distribution back to the ports has not occurred yet.
Local Ports will issue CBP 5955A (Notice of Penalty or Liquidated Damages Incurred or Demand for Payment). It is expected that these will be issued by the end of May 2011 an primarily to the following groups:

Non-Filers of ISF
"Egregious" Errors – open for definition discussion
Non-reporting of flexible filings – OCEANAIR does not file "flexible" filings. If you flag as a flexible filing you tell CBP that you are missing information and you must follow up with a retransmission of data. Flexible filings in this writer's view point are a problem waiting to happen.

Liquidated Damages for Late ISF Filings

CBP states the problem now is not with non filing, but with timely filing.
Liquidated damage enforcement on late ISF filings is expected to begin by summer 2011
The focus may be on filings filed more than 5 days late, but this is not a guaranteed number. A late file is a late file as CBP will tell you.

Best practices for staying compliant and penalty free

Build the ISF requirements in to all new purchase orders you place with your suppliers including a penalty clause
Insure that your ISF Filer receives the ISF filing document a minimum of 72 hours prior to vessel sailing. Any shorter time frame may not allow your filer enough of a window to file and protect you.
Assign an individual in your company as the contact for your ISF Filer in case any questions arise. You should also have a back up person.

Remember, ISF = IMPORTER Security Filing and the liability is on the IMPORTER for accuracy and timeliness.

If you have any questions pertaining to ISF matters please forward them to 10+2questions@oceanair.net and you will be contacted in a timely fashion.

Bill Connoly

William J. Connolly LCHB, CCS
Director of CHB & Customs Compliance
OCEANAIR, Inc.
186A Lee Burbank Highway
Revere, MA. 02151
Direct: 781-560-1130
Fax: 781-286-3095
Email bconnolly@oceanair.net

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Temporary Exports From, Imports Into Mexico to be Eased with Adoption of Carnet System
The International Chamber of Commerce reports that on May 16 Mexico will become the 71st country to accept ATA carnets, international customs documents that allow for the duty-free and tax-free temporary import and export of goods. The Mexico City National Chamber of Commerce will administer carnets, which cover all goods traded internationally except perishable items.

"Adding Mexico to the ATA Carnet System is a big achievement and will have a significant impact on users due to the sheer volumes of trade that go to Mexico," said Peter Bishop, who chairs the ICC World Chambers Federation World ATA Carnet Council. "Traveling with goods will now be easier for businesses wanting to go to this important hub," which an ICC press release states "has long been identified as one of the priority target countries by the network of organizations already affiliated with the ATA guarantee chain."

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Large Retailers Should Prepare Now for California Law on Supply Chain Transparency
Large retailers should act now to prepare for the January 2012 effective date of a new California law designed to enlist retailers in the effort to improve the protection of human rights in global supply chains. This law will require retailers to adopt verification, certification, compliance and/or training programs that will take time to develop and implement. Affected companies should establish a foundation for compliance that will allow them to make positive statements and protect their brands in the face of the new requirements.

The California Transparency in Supply Chains Act of 2010 will require large retailers (i.e., those having annual worldwide gross receipts exceeding $100 million) to provide the public with specific descriptions on their Web sites of the efforts they have undertaken to eradicate slavery and human trafficking from their supply chains. Among other things, retailers will need to:

verify their product supply chains to evaluate and address risks of human trafficking and slavery, and specify if this verification was NOT conducted by a third party;
audit their suppliers' compliance with company standards for trafficking and slavery in supply chains, and specify if those audits were NOT independent or unannounced;
require their direct suppliers to certify that materials incorporated into their products comply with the slavery and human trafficking laws of the country or countries in which they are doing business;
maintain internal accountability standards and procedures for employees or contractors who fail to meet company standards regarding slavery and trafficking; and
train company employees and management who have direct responsibility for supply chain management on human trafficking and slavery, particularly with respect to mitigating risks within supply chains.

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EU to Require Statement of Animal Content on Garment Labels, Report on Origin Labeling
The European Parliament announced last week that it has reached a compromise deal with the European Council on a new textile labeling regulations. This agreement will be put to a plenary vote in May.

The agreement will require that any use of animal-derived materials be stated on garment labels. The Commission will also be asked to complete a study by Sept. 30, 2013, on whether there is a causal link between allergic reactions and chemical substances (e.g., colorings, biocides or nanoparticles) used in textile products. A press release states that the European Parliament has ensured that textiles containing such products must be labeled "non-textile parts of animal origin" to enable consumers to identify such products.

The Council has also agreed to ask the Commission to complete by Sept. 30, 2013, an assessment report on a possible origin labeling scheme for textile products manufactured outside the European Union. This report may be accompanied by a legislative proposal to require "made in" labels for such goods. The report will also assess the feasibility of harmonizing care labeling requirements (currently voluntary), an EU-wide uniform size labeling system for clothes, social and ecological labeling, the indication of allergenic substances, and flammable clothing.

Finally, the Parliament stressed the need to assess how new technologies, such as microchips or radio frequency identification, could be used in the future instead of traditional labels to convey information to consumers.

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Importer Security Filing (ISF): Important Update, Time Sensitive

To our valued clients,

As you know the ISF program has been in effect since January 26, 2009 under an INTERIM Rule Period. The interim period has been allowed by CBP (Customs & Border Protection) to allow importers to organize their ISF programs and to file the information in a test period. This test period is coming to a close soon and effective January 26, 2010 the penalty phase of this program will begin. As of that date the ISF information must be electronically submitted to Customs no later than 24 hours before the cargo is to be loaded on board the vessel at origin. Failure to file timely and / or accurate information will result in Customs assessing penalties anticipated to be $ 5,000 per filing against the importer of record.

Earlier this year OCEANAIR contacted our ocean importers to obtain authorization to act as your filer of this information and to advise you of the information required. This was stage 1 of our plan. Stage 2 consisted of obtaining and filing the ISF information received for your transactions. This information was not always filed in what will be considered timely in January 2010, but has been filed to show a good faith effort by the importer. We are now entering stage 3 which will be detailed in the next paragraph.

Stage 3 began October 12 and continues. Stage 3 is the final shake down cruise so to speak. In stage 3 we are identifying the following: clients who have not provided ISF authorization; clients for whom filings are being done, but information is not being received in a timely manner. This email is being forwarded to all clients. Individual clients will also be contacted on a case by case basis.

Stage 3 — IMPORTER'S RESPONSIBILITY

Two documents are available on this web site:

The first is the authorization document — if you have not completed this document or if you are unsure and want to send again to be sure, please complete and send this form to 10+2questions@oceanair.net with the subject line — ISF authorization

The second form is the actual ISF information required form. It is strongly suggested that you review your list of known international suppliers and prepare of copy as a template for each of your suppliers who ship to you via ocean. Remember at this time this applies only to shipments arriving in the US by ocean. It is required for all ocean shipments. Your vendors should be required to complete this for every transaction. Remember that the liability and responsibility under the CBP Regulations make the importer of record liable for this transaction. It is up to the importer to be sure that the information is received by their authorized filer in time to meet the deadlines. The completed form is to be emailed to 10+2@oceanair.net This email address has been set up to receive the filings and is used to control the filings and record when received. It is very important that you instruct your suppliers to complete this and email a minimum of 3 business days prior to the vessel loading date. We have less than 100 days until full implementation and need your assistance. Various Customs attorneys have been advising importers to build this document and the instructions in to their purchase orders advising the vendor that failure to supply timely or accurate information which results in a penalty from CBP will not be tolerated and the penalty will be charged back to the vendor.

If you have any questions please direct them to our 10+2questions@oceanair.net address and your inquiries will be responded to promptly.

William J. (Bill) Connolly

Director of CHB & Customs Compliance
OCEANAIR
186A Lee Burbank Highway
Revere, MA. 02151
C-TPAT Certified
Direct Tel 781 560 1130
Fax 781 286 3095
Email bconnolly@bosoa.com
http://www.oceanair.net

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