International Trade Law News

Published by Jacobson Burton Kelley PLLC

This week is the eighth anniversary of International Trade Law News.

I appreciate the kind words, favorable comments and tips received from clients, colleagues, government officials, law students and members of the international trade community over the last eight years.

I am also pleased that this blog has inspired several colleagues to start blogs of their own.

The number of readers of International Trade Law News has increased significantly over the past eight years and the site has thousands of readers per month and thousands of readers that subscribe to our e-mail notification service, RSS feed and Twitter (@tradelawnews) site.

The readers of this blog are truly international in scope. In 2011, International Trade Law News has had readers from 175 countries and territories (including all of the Country Group E countries, except North Korea).

--Doug Jacobson

Labels: Miscellaneous

Welcome to those attending the North Dakota Trade Office's Global Business Connections 2011 conference in Fargo, North Dakota on March 30 and 31 in Fargo, North Dakota.

Global Business Connections is a two-day event that connects North Dakota businesses with international trade professionals from around the world. The conference includes panel discussions with leading exporters and international business professionals, break-out seminars on export controls and Incoterms 2010, networking events and an industry trade show. The conference also will include the presentation of North Dakota’s most prestigious international business awards by North Dakota Governor Jack Dalrymple to the following award winners:

2010 North Dakota Exporter of the Year - Healthy Oilseeds, a leading grower, processor and exporter of flax.

2010 Service to North Dakota Exporters Award - Bremer Bank

The keynote speakers at the conference include Gregory Page, Chairman and CEO of Cargill, and Michael Hick, Director of Global Business Initiatives and author of Global Deals: Marketing and Managing Across Cultural Frontiers.

Other speakers at the program included Ed Schafer, who served as U.S. Secretary
of Agriculture and Governor of North Dakota.

North Dakota currently has the nation's lowest unemployment rate and is a leading exporting state. In addition to exporting agriculture products, North Dakota is a leading producer and exporter of machinery and has a thriving aerospace sector.

Labels: Miscellaneous

Today, United States Trade Representative Ron Kirk released the following statement on the need to renew and extend the GSP, TAA and ATPA trade programs:

“I am disappointed that Congress has not acted to extend Trade Adjustment Assistant (TAA), the Andean Trade Preference Act (ATPA), and the Generalized System of Preferences (GSP). These are important programs that support workers and help U.S. businesses compete in the global marketplace. As a result of this inaction, 155,000 Americans will go without the assistance they were promised under TAA to help retrain for a new job,” said U.S. Trade Representative Ron Kirk. “Farmers and workers in Colombia will lose access to the U.S. market just as they are recovering from severe floods. At the same time, the continuing absence of ATPA and GSP benefits raises costs for American consumers and businesses as well as farmers in some of the world’s poorer countries.”

“We encourage Congress to extend these three programs as soon as possible and to do so for substantially more than a few months. We are committed to working with Congress to secure reauthorization of these essential trade programs.”

As we reported, the U.S. Congress adjourned in December 2010 without renewing the Generalized System of Preferences (GSP) program, which expired on December 31, 2010. While Congress enacted short-term extensions of ATPA and TAA, both programs expired on February 12, 2011.

The Coalition for GSP has created the "Renew GSP Today" blog, which contains useful information and updates on the importance of GSP renewal to U.S. companies and consumers. On a lighter note, since today is Valentine's day, the blog notes that $150 million worth of candy and chocolate entered the U.S. under the GSP program in 2010, accounting for savings of more than $8.5 million in import duties.

Labels: GSP, Miscellaneous

In describing the need for a more efficient federal government in the State of the Union (SOTU) address to Congress this week, President Obama said "there are 12 different agencies that deal with exports."

How did the White House come up with this number?

Depending on how one counts, there are more than 12 agencies that "deal with exports." The total number depends on how one defines "agency" and "deal with exports."

The Washington Post's SOTU Fact Checker columnist stated that:

The government's Export.gov lists 11 federal agencies that deal with exports: the Energy Department, Export-Import Bank, International Trade Association, the Foreign Agricultural Service, the U.S. Agency for International Development, the Overseas Private Investment Corporation, the Small Business Administration, the State Department, U.S. Trade and Development Agency, the Office of Foreign Assets Control and the U.S. Trade Representative.

While the U.S. Trade Representative, a cabinet level position, handles policy-related issues associated with free trade agreements and other issues that impact exports, they do not have a day to day role in regulating export activities. Similarly, the Trade and Development Agency and U.S. Agency for International Development are involved in overseas programs that lead to U.S. companies exporting goods and services. Should the Small Business Administration qualify as dealing with exports?

In reviewing USA.Gov's list of federal agencies one can come up with more than 12 agencies that "deal with exports" on a regulatory and policy level. Here is the list that I came up with. Can you think of any others? Please leave your comments below.

U.S. Agencies Dealing With U.S. Exports

--Direct Involvement With and Regulation of U.S. Exports

1. Bureau of Industry and Security (Department of Commerce)

2. Census Bureau (Commerce) (EEI/AES filings)

3. Office of Foreign Assets Control (Treasury)

4. Directorate of Defense Trade Controls (State)

5. Defense Technology Security Administration (Defense)

6. Customs and Border Protection (DHS)

7. Immigration and Customs Enforcement (DHS)

8. Food and Drug Administration (HHS)

9. Nuclear Regulatory Commission (Independent)

10. Food Safety Inspection Service (Agriculture)

11. Animal Plant Health Inspection Service (Agriculture)

12. National Nuclear Security Administration (Energy)

13. Export-Import Bank of the U.S. (Independent)

14. Defense Security Cooperation Agency (Defense)

15. Drug Enforcement Agency (Justice)

16. Bureau of Alcohol, Tobacco, Firearms and Explosives (Justice/Treasury)

17. Fish and Wildlife Service (Interior)

18. Environmental Protection Agency (Independent)

19. U.S. Patent and Trademark Office (Commerce)

20. National Security Agency (Defense) (Encryption issues)


--Other U.S. Agencies Involved With Export-Related Matters

• U.S. Trade Representative (Executive Office of the President)

• U.S. Trade and Development Agency (Independent)

• Agriculture Marketing Service (Agriculture)

• United States Citizenship and Immigration Services (Homeland Security) (now requires export control certification on I-129 form.

Should the Federal Maritime Commission qualify? How about the National Security Council, which is currently involved with export control reform efforts? The U.S. International Trade Commission primarily deals only with imports, although they often conduct studies on export issues.

Update: Thanks to a reader for mentioning DSCA, which deals with government to government transfers of defense articles under the Foreign Military Sales program.

Update 2: Thanks to the comments and other input received, I have updated the list to reflect several additional agencies.

Labels: Exports, Miscellaneous

The Washington, DC-based National Council on International Trade Development (NCITD), a leading international trade compliance organization, is currently accepting applications for its annual scholarship program for students studying international trade-related topics.

The scholarships, which will be a minimum of $1,000, will be awarded to qualified candidates based on the following criteria:

• Proven interest or experience in international trade, e.g., education, work or volunteering;
• Current academic standing and performance, including honors and extracurricular activities;
• Strength of the narrative submission and recommendations by NCITD member, professor or work colleague.
• Preference will be given to candidates sponsored by employees of NCITD member firms.

Eligibility criteria and other scholarship information can be found here. The scholarship application form can be found here.

The NCITD's Scholarship Committee will select the winners by May 11, 2011. The scholarships will be presented at the June 8, 2011 NCITD meeting in Washington, DC.

Labels: Miscellaneous

Labels: Miscellaneous

International Trade Law News recently marked its 7th anniversary.

I am grateful for the kind words and favorable comments received from clients, colleagues, government officials, law students and members of the international trade community. I very much appreciate all of your support, as well as the tips and other valuable information and ideas received from readers.

The number of readers of International Trade Law News has increased dramatically over the past seven years and the site has a large number of readers that subscribe to our e-mail service, RSS and Twitter feeds (regular readers and followers will note that the number of posts have declined in the past year and the number of tweets have increased - so be sure to follow us on Twitter if you are not already).

The readers of this blog are truly international in scope. In 2010 to date, International Trade Law News has had readers from 176 countries and territories (including all of the Country Group E countries, except North Korea) that used 79 languages. In addition, many of the posted articles are picked up and republished by other sources, including Northrop Grumman's Ex/Im Daily Update. I am pleased to approve requests to republish content that provide the appropriate attribution.

-- Doug Jacobson

Labels: Miscellaneous

Today's import and export news and notes:

Miscellaneous

An interesting trade-related cartoon in the op-ed section of yesterday's New York Times shows importance of U.S. National Export Initiative.

Export Controls and Sanctions

House Foreign Affairs Committee to markup bill (HR 4645) on September 29th that would end Cuba travel restrictions.

Politico: Retired generals urge U.S. to lift Cuba travel ban.

Washington Times: India continues to press US to remove govt organizations from BIS Entity List (see our comment on this issue here).

Under Secretary of Treasury for Terrorism and Financial Intelligence Stuart A. Levey spoke last week at the Center for Strategic and International Studies on the effectiveness of sanction on Iran.  The transcript and video of his testimony can be found here.

New GAO Report: Defense Exports: Reporting on Exported Articles and Services Needs to Be Improved.

VOA: Targeted U.S. sanctions on Zimbabwe to stay until human rights situation improves. 

Next meeting of Defense Trade Advisory Group (DTAG) will take place in Washington, DC on October 20, 2010. 

Foreign Policy: How U.S. Sanctions Made Haystack (discussing anti-censorship software intended for Iran). 

Customs

U.S. Customs and Border Protection (CBP) publishes quarterly interest rates applied to overpayments and underpayments of customs duties. 

CBP announces that Customs-Trade Partnership Against Terrorism program (C-TPAT) reaches 10,000 members.

CBP issues 2010 C-TPAT Partner Survey (information on costs and benefits of C-TPAT program).

Upcoming Programs of Note

The North Texas District Export Council is holding a full day FCPA conference in Dallas on Oct. 13, 2010. Program will include experienced practitioners, including in-house and outside counsel. Details of the FCPA program can be found here.

NACM Oregon to present Incoterms® 2010 program in Portland on November 9, 2010 (Doug Jacobson is speaker). Program details and registration can be found here. A similar Incoterms 2010 program will be presented in Seattle (near SEATAC) on November 11, 2010.

Labels: Customs, Export Controls, Miscellaneous

Trade compliance professionals need to understand the difference between a certificate program and a certification program before paying for import and export compliance education, training and testing courses according to an article in the August 2010 edition of The Export Practitioner.

Written by trade compliance educator/consultant John Priecko and certification consultant Betty Fishman, the article discusses the recent proliferation of providers claiming to offer certifications for trade compliance professionals.

In addition to discussing the key differences between certificate and certifications, the article provides some "red flags" to look for in claimed certification programs.

The article concludes by advocating an independent standards organization to oversee trade-related education/training and states that such an organization can serve as a clearing house for trade compliance best practices benchmarking.

Access to The Export Practitioner's website requires a subscription. However, readers can obtain a one-day free pass by clicking the "One Day Pass" tab at the top left hand page of the website. You can also receive a free copy and trial subscription to the print edition at no cost or obligation by contacting the Export Practitioner at 202-463-1250, Extension 193.

Labels: Miscellaneous

The National Council on International Trade Development (NCITD) has established a scholarship for students of international trade.

Scholarships awarded (minimum $1,000) will be paid directly to the institution, in the name of the awardee(s).

Awardee(s) will also receive a one-year NCITD membership and will be welcome to attend monthly meetings

Criteria for Eligibility:

Applicants must have at least "junior" status for 2010-2011 in an accredited U.S. college or university with at least a 3.0 Grade Point Average or equivalent "B" average.

Applicants must be currently enrolled and pursuing either an undergraduate or graduate degree in International Trade studies, such as political science, international relations, economics, international business, international law, international finance, etc. (including study abroad programs affiliated with a U.S. university).

Application Process:

Applicants must complete and submit:

* The NCITD Scholarship application form;

* A copy of the most current transcript from the college or university;

* A letter of recommendation from a sponsoring NCITD member; or from a work colleague or professor;

* A brief (2500 words or less) narrative from the applicant explaining his/her interest in international trade and why the applicant should be awarded this scholarship, including merit and financial need.

Criteria for Selection, in Order of Importance:

* Proven interest or experience in international trade, e.g., education, work or volunteering;

* Current academic standing and performance, including honors and extracurricular activities;

* Strength of the narrative submission and recommendations by NCITD member, professor or work colleague;

* Preference will be given to candidates sponsored by employees of NCITD member firms.

Selection Process:

For consideration for the 2010-2011 academic terms, all applications must be submitted by April 15, 2010.

The Application, transcript, recommendation and narrative essay should be mailed in a single package OR emailed to:

ATTN: Scholarship Applications
c/o Christina Filipovic
NCITD
1707 L Street N.W.
Suite 570
Washington, DC 20036
Email: christina@ncitd.org

The NCITD Scholarship Committee will select the winner(s) and determine the award no later than April 15, 2010.

The winner(s) will be notified by e-mail and letter.

The scholarship(s) will be presented at the June 9, 2010 Compliance Meeting in Washington, DC.

The scholarship application form is available here.

For information contact Christina Filipovic at the NCITD Secretariat at 202-872-9280.

Labels: Miscellaneous

The next meeting of the National Council on International Trade Development (NCITD) will take place on Wednesday, March 10, 2010 in Washington, DC and will feature the following speakers:

• Adam Szubin, Director, Office of Foreign Assets Control, Department of the Treasury. Topic: OFAC News and Update;

• Charles Shotwell, Director, Office of Defense Trade Controls Policy, Directorate of Defense Trade Controls, US Department of State. Topic: Commodity Jurisdiction: Trends, Statistics and Automation Update;

• Jamal El-Hindi, Associate Director, Regulatory Policy and Programs Division, Financial Crimes Enforcement Network, Department of the Treasury. Topic: FinCEN Enforcement Efforts and Updates.

For information on how to join NCITD or to attend the meeting, see www.ncitd.org or contact the NCITD Secretariat at 202-872-9280.

Labels: Miscellaneous, OFAC

AP: Taiwan-based company assists Chinese firm in obtaining pressure transducers for Iran -- http://bit.ly/929Jcd

Follow-up from previous tweet: Certain pressure transducers are classified on U.S. Commerce Control List as ECCN 2B230 (NP and AT controls)

New Blog Post: Management Consultant Arrested and Charged With Violating Iran Embargo: http://bit.ly/79P0SX

It's official: DDTC Appoints Lisa Studtmann as Director of Office of Defense Trade Controls Compliance -- http://bit.ly/5Km9KX

Politico: Beth McCormick to be Deputy Ass't Secy at State Dept's Bureau of Political-Military Affairs (oversees DDTC) - http://bit.ly/7mo4lZ

RT @complianceweek: Poll says compliance budgets are faring better than you'd expect, considering economy . . . http://bit.ly/7ZVdOw

New Blog Post: Coalition for Security and Competitiveness Releases Detailed Export Control Recommendations: The Co... http://bit.ly/5q1FbK

House Foreign Affairs Committee to hold export controls hearing at Stanford University on January 15th. Details here: http://bit.ly/6ptLlb

New Blog Post: Philadelphia Area Chemical Engineer Sentenced to Four Years in Prison for Violating Iran Sanctions:... http://bit.ly/7Gnx11

Pakistan claims to be implementing "effective export controls in line with international obligations": http://bit.ly/61RuOX

The Hill's story on yesterday's CSC export control reform recommendations found here: http://is.gd/6bxHC

SEC Enforcement Division names Cheryl J. Scarboro as head of Foreign Corrupt Practices unit. Details at http://bit.ly/707aub

AP reports that North Korea will allow more American tourists -- http://bit.ly/6Y5Fk4

LA Times: 3 men charged in scheme to illegally export vacuum pumps and equipment to Iran via UAE -- http://is.gd/6fkmk

Politico: At meeting with defense company executives SecDef Gates pledges support for export control reforms - http://bit.ly/7S8u8z

DefenseNews reports on new Deputy Assistant Secretary of State who will oversee defense export control agency: http://bit.ly/6qRsfP

American Association of Exporters and Importers' export control reform recommendations to Congress can be found here: http://bit.ly/8abX2y

Op-Ed by Rep. Berman in San Jose Mercury News on today's export controls hearing being held at Stanford: http://bit.ly/8obtnz

Rep. Berman: You practically have to have a law degree or Ph.D. to keep from running afoul of increasingly complex export-controls regime.

BIS adds Chinese entity to list of parties eligible for Validated End-User (VEU) program: http://bit.ly/7Qp0v7

National Defense Magazine: Job Creation Argument May Prompt Congress to Move on Arms Export Controls Reform - http://bit.ly/8tlUlG

AP: North Korea plays sanctions card in nuclear standoff -- http://is.gd/6nvR6

Stanford president urges lawmakers to change export controls at export controls hearing (from Stanford News) http://bit.ly/4Kry4X

San Jose Mercury News' story on yesterday's export controls hearing at Stanford found here: http://bit.ly/5HIDYA

Labels: Export Controls, Miscellaneous, Sanctions; Iran, Twitter

Season's Greetings and Happy New Year to all of our loyal readers from around the world. See you in 2010.

And in the spirit of the holiday season we have reprinted below Tyler Brown's A Harmonized (Tariff) Christmas.

—Doug Jacobson

For this analysis, we assumed that the Lords, Ladies, maids, and entertainers are not performing defense services.  Articles and material would appear to all be EAR99.  Dealing only with the associated hardware, I propose the following HTS designations:

• Twelve drummers drumming: 9206.00.20 00 - Percussion musical instruments (for example, drums, xylophones, cymbals, castanets, maracas): Drums
• Eleven pipers piping: 9205.90.20.60 - Woodwind instruments:  Flutes and piccolos (except bamboo)
• Ten lords a-leaping: Since there are no hereditary Lords in the U.S., the Country of Origin of the Lords would need to be specified, and the leaping activity subjected to an analysis as to whether it constitutes a defense service.
• Nine ladies dancing: See above.
• Eight maids a-milking: Given a modern interpretation: 8434.10.00.00 - Milking machines and dairy machinery, and parts thereof: Milking machines
• Seven swans a-swimming: 0106.39.00.00 - Birds: Other 
• Six geese a-laying: (Assume the geese weigh over 185 gms.) 0105.99.00.00 - Live poultry of the following kinds: Chickens, ducks, geese, turkeys and guineas: Other, Other
  
• Five golden rings: Note: 9. For the purposes of heading 7113, the expression "articles of jewelry" means: (a) Any small objects of personal adornment (for example, rings, bracelets, necklaces, broaches, earnings, watch chains, fobs, pendants, tie pins, cuff links, dress studs, religious or other medals and insignia); 7113.19.50.00 - Of other precious metal, whether or not plated or clad with precious metal: Other, other.
  
•  Four calling birds: Today when people sing that song they usually sing about calling birds. But actually many years ago they sang the song's old English words. They sang about colly, or collie, birds. Colly or collie means black, according to the British Broadcasting Corporation. It comes from an old word for coal. Wikipedia pins down colly bird even more: to the European blackbird. Common in parks and cities in Europe, it looks like a dusky version of its cousin, the American robin. Both belong to the thrush family. Like all thrushes, they sing (or call) beautifully.  0106.39.00.00 - Birds: Other
• Three French hens: Live poultry of the following kinds: Chickens, ducks, geese, turkeys and guineas: Chickens, Weighing not more than 185 g: 0105.11.00; Breeding stock, whether or not purebred: 10 Layer-type (egg-type), 20 Broiler-type (meat-type), 40 Other; Chickens, Weighing more than 185 g: 0105.94.00.00  (We actually spent some time worrying about whether the "French Hens" might be a re-export...)
• Two turtle doves: 0106.39.00.00 - Birds: Other
• A partridge in a pear tree: 0106.39.00.00 - Birds: Other;  0602.20.00.00 - Trees, shrubs and bushes, grafted or not, of kinds which bear edible fruit or nuts.
  
  And remember, any Christmas ornamentation falls under 9505.10: Festive, carnival, or other entertainment articles, including magic tricks and practical joke articles; parts and accessories thereof: Articles for Christmas festivities and parts and accessories thereof.

Labels: Miscellaneous

@Reuters: U.S. contract worker detained in Cuba: report http://link.reuters.com/ved56g

@BreakingNews: U.S. secretly froze more than $2 billion allegedly held for Iran in Citigroup accounts in 2008 - http://bit.ly/8zCjsq

Newsweek: Obama Administration intends to target 'dozens' of IRGC front companies in effort to squeeze Iran http://bit.ly/8hJF9z

Dallas Morning News: Federal agents in Dallas ground helicopter believed to be destinedfor Iran via Italy -- http://bit.ly/5b3F2I

Reuters: Germany probes technology shipments to Iran -- http://bit.ly/53k4O2

FDA debars Virginia man convited of importing catfish from Vietnam with false labels to avoid antidumping duties: http://bit.ly/6aVyC3

State Dep't requests Senate to delay consideration of Comprehensive Iran Sanctions, Accountability and Divestment Act 2009 (S.2799)

Politico: U.S. sentences Iranian lured in sting to 5 years http://bit.ly/5yBNBW

U.S. House of Representatives just passed H.R. 4284, legislation to extend expiring GSP and ATPA programs until December 31, 2010.

RT @anticorruption: TI welcomes new EU mandate to fight corruption http://bit.ly/5KnxLO

Politico: New information in case of a USAID subcontractor who was detained in Cuba on December 5. http://bit.ly/65VnNK

Politico: Rep. Berman says Iran sanctions bill empowers Obama Iran policy and will not force its hand -- http://bit.ly/7avunX

DOJ: Virginia exec charged with conspiring to bribe former Panamanian government officials for maritime contract--http://bit.ly/6Ce7FY

@Politico- Twitter diplomacy: U.S. to relax certain software sanctions rules for Iran -- http://bit.ly/6fDwBQ

DOJ: Credit Suisse forfeits $536 million for violating IEEPA & New York law for transactions with Iran, Sudan, etc. http://bit.ly/7npTaq

RT @Ethical_Corp - Op/Ed: Facilitation Payments: A business integrity officer’s perspective... http://bit.ly/6towKk

Ways and Means Trade Subcommittee Chairman Levin (D-MI) and Ranking Member Brady (R-TX) have introduced the Miscellaneous Tariff Bill of 2009.

Politico: U.S. moves to isolate Iran from banks (more on Credit Suisse and sanctions)-- http://bit.ly/6aKzU3

NYT: Questions on Security Mar Foreign Investments (discusses CFIUS issues involving Virgin Galactic and other cases) http://bit.ly/7a6zpK

RT @complianceweek: More on OECD's complaints about facilitation payments allowed under Foreign Corrupt Practices Act. http://bit.ly/5hI6hZ

Aviation Week Editorial: Ratify Export Treaties With U.K., Australia http://bit.ly/8t2q0V

Labels: Miscellaneous

• At EU-China business summit today, China's Premier urged EU to relax export controls on high-tech products to China: http://is.gd/57LZh
• GAO issues report on DOJ's selection of corporate monitors in deferred prosecution and non-prosecution agreements: http://is.gd/57N8B
• Today marks 10th anniversary of infamous Seattle WTO Ministerial protests. Seattle Times follow-up story here: http://is.gd/56XUw
• In letter to President Obama, U.S. Chamber of Commerce (@chamberpost) advocates modernizing export controls http://is.gd/5agkX
• Presentations from the 2009 BIS Update Conference on Export Controls held earlier this year are now available at http://is.gd/5agrC
• Dallas Morning News: "A tiny Texas plane maker says exports make jobs soar" http://is.gd /5aKWc
• NYT: 6 former Siemens officials agree to pay total of 18 million euros in damages resulting from bribery scandal: http://is.gd/5bh6O
• RT @tradelawyer: Legal Alert - Key Developments in Canadian Trade Controls and Economic Sanctions During 2009 http://ow.ly/IkuG
• BBC News: North Korean designer jeans to go on sale in Sweden http://is.gd/5cmVu
• Follow-up to previous tweet: Goods of North Korean origin may not be imported directly or indirectly to US w/out approval letter from OFAC

Labels: Miscellaneous

For those exporters and others interested in letters of credit issues it is not too late to register for next week's 2009 Americas Annual Letter of Credit Survey conference that will be held March 26 and 27, 2009 in Charlotte, North Carolina.

The Annual Letter of Credit Survey is the premier letter of credit event in the U.S. The conference will be attended by bankers, exporters, lawyers, carriers, forwarders, etc. from around the U.S.

During the conference, speakers will discuss the leading U.S. and foreign reported LC court cases, regulatory issues and what is going on around the world in LCs.

The conference also provides a useful forum for the exchange of practical information and views on LCs.

The flyer for the program can be found here (pdf). Click here for more information and to register for the program.

Labels: Miscellaneous

In an interview with International Trade Law News, Frank Reynolds, the U.S. Delegate to the International Chamber of Commerce's (ICC) Incoterm's drafting committee, said that the revised version of Incoterms 2000 should be released in the fall of 2010. Once released, the new Incoterms will take effect on January 1, 2011.

The new version of the Incoterms will be known as Incoterms 3000 in order to avoid the expectation that they will be revised every ten years.

The ICC introduced the first version of Incoterms, short for "International Commercial Terms," in 1936. There are currently 13 Incoterms, including EXW (Ex works), FOB (Free on Board), CIF (Cost, Insurance and Freight), DDU (Delivered Duty Unpaid) and CPT (Carriage Paid To).

The Incoterms have been revised six times in order to reflect international trade developments.

Frank Reynolds is the author of Incoterms for Americans, a very useful publication for U.S. exporters.

Labels: Miscellaneous

For those of you following our Twitter feed, International Trade Law News is attending this week's International Trade Compliance Professionals annual conference in Anaheim, California.

In honor of all of the hard working trade compliance professionals out there I am posting the music and lyrics to "Compliance Blues", which was written a few years ago by Bruce Jackson, the "Trade Compliance Guy" and a well known export controls expert. Bruce wrote the song in 2002 and Bruce's friend Tim Birchard recently composed the music and recorded the song. The song can be heard here. (As you will see, some of the terms have changed since the song was written.)

Compliance Blues

Got a letter the other day
Came from a man at BXA
Said he’d like to come for a visit
Oh…man….this is it..

I’got those deep down compliance blues
I’got those deep down compliance blues
When you’d trade anything to be in someone else’s shoes

When I messed up that SED
They put out an A.P.B.
Yeah, the CI and AWB were out of line
But that shady forwarder said I’d be just fine

I’got those deep down compliance blues
I’got those deep down compliance blues
When you’d trade anything to be in someone else’s shoes

Senior Management was havin’ a fit
If only they could see it from where I sit
That enforcement agent with his slick RayBans
Was ready to toss me in the can

I’got those deep down compliance blues
I’got those deep down compliance blues
When you’d trade anything to be in someone else’s shoes

I can quote the regs til I turn blue
Sales and shipping just do what they wanna do
Maybe one day justice will prevail
And BXA will send our CEO to jail

I’got those deep down compliance blues
I’got those deep down compliance blues
When you’d trade anything to be in someone else’s shoes

As I soldier on through the compliance quagmire
I’ll trudge along till the last license expires
Cuz no matter what they may say
I ain’t got them blues as bad as ol’ Ken Lay

I’got those deep down compliance blues
I’got those deep down compliance blues
When you’d trade anything to be in someone else’s shoes
Yeah, I’got those deep down compliance blues

© By Bruce “BRJblues” Jackson February 2002

Labels: Miscellaneous

While a great deal has been written on the "Buy American" provision in the stimulus bill (Section 1605 of H.R. 1) that covers iron, steel, and manufactured goods, it turns out that the bill also contains another "Buy American" provision that applies to uniforms, body armor and other textile products purchased by the Department of Homeland Security.

Section 604 of Title VI of H.R. 1, which covers the Department of Homeland Security (DHS), states that DHS may not procure certain "covered items" if they are not "grown, reprocessed, reused, or produced in the United States." The definition of covered items includes those "directly related to the national security interests" of the U.S. and covers a wide variety of items including clothing, bags, protective equipment (such as body armor), parachutes, bandages and any item of equipment manufactured from or containing "fibers, yarns, fabrics, or materials." While the provision contains some exceptions, such as when the items are not available in the U.S. or if the non-compliant fibers do not exceed 10% of the total purchase price, it requires any exceptions to be posted on the FedBizOpps.gov web site.

Consistent wiht the language added to the "Buy American" provision in section 1605 of the the stimulus bill, section 604(k) states that this provision "shall be applied in a manner consistent with United States obligations under international agreements."

Interestingly, the provision requires the Secretary of Homeland Security to "ensure" that DHS employees that acquire textile products receives training in FY 2009 on this new requirement and that any new training programs includes "comprehensive information" on this new requirement.

This provision, which will require uniforms worn by employees of the Transportation Security Administration, U.S. Customs and Border Protection, the U.S. Border Patrol, the Coast Guard and other DHS units, was sponsored by recently elected Congressman Larry Kissell (D-NC).

While this "Buy American textiles" language was included in the House version of the stimulus billl, it was not included in the version of the bill passed by the Senate. The language was included in the final version of the bill that was agreed to by the Conference Committee and signed today by the President.

The text of section 604 can be found on page 126 of Section A of the PDF version of H.R. 1 that can be found here: http://thomas.loc.gov/home/h1/Recovery_Bill_Div_A.pdf (this is a large file).

Labels: Congress, Miscellaneous

The Government of Brazil has announced that it has suspended its short-lived electronic import licensing program that was implemented earlier this week by Brazil's Ministry of Development, Industry and Foreign Trade.

Under the import licensing program, importers in Brazil were required to obtain an electronic import license prior to importing products included in 24 chapters of the Harmonized Tariff Schedule. Import licenses were supposed to be issued with 10 days from the application date, but Brazil's Secretariat of Foreign Trade (SECEX) had up to 60 days to approve or disapprove the application.

The stated purpose of the program was to monitor Brazilian import statistics, but the program was widely criticized as a protectionist non-tariff trade barrier.

Labels: Miscellaneous