2010年8月12日木曜日

EU Import Cargo - 24 Hour Rule Programming

Like U.S, EU will implement 24 hours rule in Dec 2010.

See reference material:

EC Customs Information Portal
http://ec.europa.eu/ecip/security_amendment/index_en.htm

JMC (in Japanese)
http://www.jmcti.org/C-TPAT/vol.1/2010/C-TPAT_CSI_1-125.htm

2010年8月9日月曜日

Japan extend countermeasure against Byrd Amendment


On August 6, 2010, Ministry of Economy, Trade and Industry ("METI") announed on its Press Release that Japan will extend countermeasure against Byrd Amendment in U.S., which impose additional customs duty to certain steel items (Ball or roller bearings) of U.S. origin.


Japan have extended this countermeasure one year each since September 2005. Current measure is valid until August 31, 2010. This will be extended again one year until August 31, 2011 with following rate which is re-calculated as recent distribution result in U.S.



  1. 8482.10 Ball bearings
    Current rate: 9.6% (until Auguslt 31, 2010)
    --> 4.1% (from September 01, 2010 until August 31, 2011)

  2. 8482.20 Tapered roller bearings
    Current rate: 9.6% (until August 31, 2010)
    --> 4.1% (from September 01, 2010 until August 31, 2011)

Background of Halt of Distribution under the Byrd Amendment (quoted from METI web site)
Japan took countermeasures against the U.S. in September 2005. The U.S. repealed the Byrd Amendment in February 2006. However, since the distribution of duties will be continued under the transitional clause, Japan urged the U.S. to halt the distribution and extended the validity of the countermeasures. As the U.S. had still not yet suspended the distribution, Japan further extended the validity of the countermeasures by one year in September 2008, following its alternation of commodity items and duty rates. Moreover, since the distribution under the transitional clause still continued in 2008, Japan further extended the validity of countermeasures by one year in September 2009, following its alternation of duty rates.

Update:
Cabinet decision was made on August 10 and it made this countermeasure official, according to MOF Press Release http://www.mof.go.jp//jouhou/kanzei/ka220810.htm )

(Source: http://www.meti.go.jp/press/20100806008/20100806008.html )


(Details of Background of Halt of Distribution under the Byrd Amendment: page 17 - 18 of http://www.meti.go.jp/english/report/downloadfiles/2010WTO/2010priority.pdf )



2010年8月5日木曜日

Japan add Iranian entities on Proliferation End-User List

On August 3rd, 2010, Ministry of Economy, Trade and Industry ("METI") announced the update of Proliferation End-User List which is concerned entities list of WMD proliferation activities.

Like recent regulation development in U.S. and EU, Japan also follow U.N. Security Council Resolution 1929 ("UNSCR 1929") which calls on states to take actions for preventing Iran's nuclear proliferation activities.
Usually, this end-user list is updated only once a year. In 2010, the new list was announced on May 26, 2010. Frequent update like this time is not so usual.
Update of Proliferation End-User List is one of Japanese government's actions to follow UNSCR 1929. The update of this time is additional of 20 Iranian entities (no other county this time!) as below. All of them are Iranian entities.

- Defense Technology and Science Research Center (DTSRC)
- Doostan International Company (DICO)
- Fater Institute(Faater)
- Gharagahe Sazandegi Ghaem
- Ghorb Karbala
- Imensazan Consultant Engineers Institute(ICEI)
- M. Babaie Industries
- Malek Ashtar University
- Makin
- Ministry of Defense Logistics Export(MODLEX)
- Modern Industries Technique Company(MITEC)
- Nuclear Research Center for Agriculture and Medicine (NFRPC)
- Omran Sahel
- Oriental Oil Kish
- Pejman Industrial Services Corporation
- Rah Sahel
- Rahab Engineering Institute
- Sahel Consultant Engineers
- Sepanir
- Sepasad Engineering Company
- Shahid Karrazi Industries

This update make the number of listed concerned entities in total 292.
When exporter ship goods or provide technology to the listed entities, the export license application is required to METI unless it is obvious that the transaction is NOT related to WMD activities. Currently, this list covers entities in Iran, North Korea, Pakistan, India, PRC China, Syria, Israel, Taiwan, and Afghanistan.

(Source: http://www.meti.go.jp/policy/anpo/hp/law_document/tutatu/t08kaisei/100803EUL/t08kaisei_kaiteikasho.pdf )

2010年8月2日月曜日

"First Sale Rule" remain in the U.S.

According to the news letter issued by international trade law firm, Danielo Desiderio on July 30, 2010, the 2008 CBP proposal to abolish the first sale rule will be formally withdrawn. This means the first sale rule will remain in place in the U.S.

This mechanism is indeed beneficial for U.S. importers allowing them to obtain substantial import duty savings, industries will welcome this decision.

Thanks, Danielo, for sharing useful information.

(Source: http://www.ddcustomslaw.com/index.php?option=com_content&view=frontpage&Itemid=1&lang=en )

2010年7月30日金曜日

Japan reduce ceiling amount of GSP preferential tariff to limit China origin items

According to The Nikkei news paper on July 26, 2010, the Ministry of Finance (“MOF”) is considering to reduce the ceiling amount of GSP preferential tariff of one country. The ceiling for each product group is open for utilization by all preference-receiving countries equally, however there is maximum ceiling percentage per one country as 20% of total ceiling amount per year in order to avoid inequality among GSP countries. MOF try to reduce this ceiling percentage per one country to 10 – 15%. In these years, Chinese origin items fulfill this ceiling percentage for most of items, therefore MOF aim to equalize the GSP preferential opportunity to many other developing countries.

In Japan, GSP preferential tariff is applicable to approx. 3,500 items which are originated in 154 developing countries or regions. Among GSP eligible items, approx. 1,180 items can be allowed until they exceed the ceilings of either limited amount or quantity.
For example, Chapter 76 (Aluminum and articles thereof) have GSP preferential tariff as 0%, while MFN tariff for Chapter 76 is from 2% - 7.6% depending on items. The annual ceiling amount of Aluminum item is JPY11.7 billions for fiscal year April 01, 2010 to March 31, 2011. As for GSP utilization of Aluminum item from China, it reached the maximum amount per country or 20% of total ceiling amount in May 2010, therefore MOF suspended the GSP preferential for Aluminum item originated in China on May 18, 2010. After this suspension date until the end of the fiscal year, Chinese origin Aluminum items are to be imposed in MFN rate. Other same examples of suspension of GSP privilege to Chinese origin items are; Fireworks (HS 36.04) on May 18, Article of leather (HS 43.02 - 43.03) on May 18, and certain carpets and other textile floor coverings (HS 57.02) on June 16, and garments and clothing accessories of cotton (HS 62.09) on May 18 etc. Most of GSP ceiling amount of textile items in apparel industry are used up by Chinese origin items in early stage of fiscal year.

The background of this amendment plan is rapid increase of the import from China. The import amount from China to Japan exceed JPY10 trillions, this makes China as top trade partner country for Japan. Chinese origin products are generally accepted as competitive in international market, questions come arise why Chinese origin products occupy the most of GSP preferential treatment which is a trade measure for contributing to developing countries.

MOF plan to implement this GSP ceiling limitation amendment starting from next fiscal year, April 2011. This will correct the disproportion among GSP eligible countries, and the developing countries other than China will be able to enjoy more GSP preferential opportunity, but the cost of import from China is expected to increase due to less GSP utilization allowance to China. Especially for small medium companies who import apparel items and daily necessities will be negatively affected because most of such items are imported from Chinese manufacturing sites and supply source is not diversified enough to other countries or regions.

Traders who import from China and utilize GSP preferential tariff are encouraged to carefully plan the sourcing strategy for next fiscal year.

2010年7月20日火曜日

Singapore Summit on Export Controls Compliance

As this blog readers are fully aware, multinational companies who have international operation cannot disregard the importance of export control in Asia region.
In October 20 & 21, 2010, American Conference Institute ("ACI") will have Singapore Summit on Export Controls Compliance in Marriott Hotel in Singapore.
This seminar is really useful for executives and managers who are in charge of trade compliance in global companies.
Details are in this URL: http://www.americanconference.com/Singapore.htm

I will be a one of the speakers on Oct 21 afternoon session, "Japan Export Controls: Preventing Product Classification Pitfalls", together with Mr. Riko in Mitsubishi Corp, General Manager - Security Trade Control Office. It would be really exciting opportunity for me.
Sub-topics of our presentation are as follows.

• How to verify whether your products are controlled under basic Japan controls.
• Discussing the uniqueness of classification numbering scheme.
• Preventing common mistakes in language translation.
• Overcoming operational challenges in “parameter sheet”for enough evidence of classification.


As a speaker, my colleagues and friends are entitled to $200 off the price. Before Aug 17 (early bird expiration date), you will have $500 off compared to the standard price.
My blog reader can be regarded as my friend and enjoy registration fee discount. If you want to have discount, please contact to Bryan Cave International Trade via Useful Link in the right corner of this blog.

2010年7月1日木曜日

Progress Made on Trans-Pacific Trade Deal

The second round of negotiations for a comprehensive Trans-Pacific Partnership Agreement between the U.S. and seven other countries concluded in California in June. Progress on the agreement is moving forward with trade officials hopeful that the text of all chapters of the agreement will be tabled in the third negotiation round set for Brunei in October.

The partnership would bring the U.S. together with four countries that already have free trade deals with the U.S. - Singapore, Chile, Australia and Peru - as well as New Zealand, Brunei, and Vietnam. Canada and Malaysia have also expressed interest in joining the pact.

The second round aimed to settle a key issue of how the proposed Trans-Pacific Partnership would overlap with existing free trade deals between its members. Trade officials reportedly stated there was also consensus on other issues, such as exploring additional measures related to job creation and the environment. Yet, sorting out details related to market opening timelines and other issues will take more time.

(Sources: Office of the U.S. Trade Representative; The Wall Street Journal )