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Friday, January 29, 2010

President Pledges to Double Exports, Strengthen Trade Relations in Asia
President Obama’s State of the Union address Jan. 27 included several items of interest to the international trade community. Some were general in nature, but others signaled specific objectives.

Exports. “We need to export more of our goods,” Obama said. “Because the more products we make and sell to other countries, the more jobs we support right here in America. So tonight, we set a new goal: We will double our exports over the next five years, an increase that will support two million jobs in America. To help meet this goal, we’re launching a National Export Initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security.”

At press time the Department of Commerce, which conceivably would have a lead role in the National Export Initiative, had not made available any information on what that effort might include.

The administration’s work on reforming export controls, however, is well underway. Press reports indicate that Defense Secretary Robert Gates, Commerce Secretary Gary Locke and other administration officials met with key lawmakers this week to discuss ways to reform the system so as to strengthen national security while also aiding U.S. companies’ efforts to sell more goods and services overseas. The administration is conducting a wide-ranging review of export control policy and observers are optimistic that legislative and/or regulatory changes could come sooner rather than later. Several industry groups have submitted recommendations for reforms, but as of yet it is unclear what direction the administration might take.

Trade Agreements. To the surprise of some, the president brought up the issue of trade agreements. Instead of portraying them as a contributor to the decline in domestic employment, however, as some lawmakers have done, he characterized them as tools to increase jobs, which he called his administration’s highest priority. “China is not waiting to revamp its economy,” the president pointed out. “Germany is not waiting. India is not waiting. These nations – they’re not standing still.” As a result, the U.S. must “seek new markets aggressively, just as our competitors are. If America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores.”

The president mentioned three trade liberalization efforts in particular: continuing to “shape a Doha trade agreement that opens global markets,” strengthening “our trade relations in Asia,” and strengthening trade ties with “key partners like South Korea and Panama and Colombia.” The reference to the long-running World Trade Organization talks is a standard item in the president’s speeches on combating the global economic downturn, but his previously stated goal of concluding the negotiations by the end of 2010 was conspicuous by its absence. The mention of improving trade relations with Asia is likely a reference to the Trans-Pacific Partnership agreement the Obama administration pledged to pursue in late 2009. The specific mention of South Korea, Panama and Colombia, all of which concluded bilateral FTAs with the U.S. under the Bush administration, is particularly intriguing. While the president did not mention the FTAs themselves or when he plans to push for congressional approval, the fact that they were brought up at all in a major speech that focused on economic recovery issues is not insignificant.
9:35 am est 

Tuesday, January 26, 2010

What is required to ship charity goods to Haiti?
Helpful info from the U.S. Census Bureau ...

On Tuesday, January 12, 2010, a major earthquake struck southern Haiti.

   Many U.S. residents and organizations are generously donating food,
   water, medicines, and other supplies to aid in the relief efforts. In
   order to facilitate the movement of these goods, we offer the following
   guidance that applies to any good not requiring a license, such as
   food,clothing, and medicines.

   There are four Schedule B numbers that can be used when exporting
   humanitarian goods.  Those numbers are found in Chapter 98 of the
   Schedule B Manual, under the subheading 9802.

   Schedule B     Description                       Unit of measurement
   
   9802.10.0000   Food Products                     X no unit required
   9802.20.0000   Medicinal and pharmaceutical      X no unit required
                  products
   9802.30.0000   Wearing apparel (including        X no unit required
                  footwear and headwear)
   9802.40.0000   Donated articles, not elsewhere   X no unit required
                  specified
   
   Any shipment valued over $2,500 per Schedule B number or that requires
   a license must be filed in the AES.  However, if the shipment is valued
   less than $2,500 per Schedule B number and does not require a license,
   then the low value exemption (NOEEI FTR 30.37 (a)) can be used.
   In this case, food, clothing and medicines do not require a license;
   however medical equipment and tools may require an export license.

   The Export Information Code to be reported is "CH" for shipments of
   good donated for relief or charity.  The value to be reported is the
   market value.  If the value is not known, estimate how much you would
   receive if you sold the goods. The value should be consistent with the
   goods being exported, to avoid confusion and possible delays with U.S.
   Customs and Border Protection officer at the port of export.

   There are different ways to file your export information.  The most
   common is to report through the Census Bureau's free Internet based
   filing system called AESDirect which can be accessed at:
   http://www.census.gov/foreign-trade/aes/exporttraining/videos

   Another option is to file with a forwarder or agent who may be more
   familiar with export licensing and regulations.

   With so many individuals and first time exporters shipping donated
   goods to Haiti, the exporting process may seem overwhelming.  However, we
   at the Census Bureau are available to help make the process as smooth
   as possible.
 
 If you need more information, we are available at 800-549-0595.
 Select Option 1 for help with the AES, Option 2 for Classifications,
 and Option 3 for Regulations.  You can also send us an e-mail at
 [email protected] or [email protected].

 Please continue to support those in Haiti during this time of tragedy.
 Your assistance is greatly appreciated.
4:45 pm est 

Importer Security Filing
CBP Launches Gradual Enforcement of Importer Security Filing Rule
Although the period of informed compliance for U.S. Customs and Border Protection’s 10+2 importer security filing rule ends Jan. 26, CBP officials have recently indicated that they will pursue a gradual approach to enforcement.
9:40 am est 


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