UGS continuously monitors federal regulations and import shipping requirements because the import regulations are constantly changing both from a security standpoint and from the recent safety issues that have arisen.

Did you know that the CPSC (U.S. Consumer Product Safety Commission) is requiring specific markings on products that are consumer products designed or intended primarily for children 12 years of age or younger? This is not just for toys, it affects any product for children 12 and under.

When does this law go into effect? August 14, 2009.

What does it mean for you? Every product that is manufactured overseas must be marked with some type of permanent marking before being imported to the United States. The markings must include the location of where it was made, the date of production or date-code, and a manufacturing code or factory identification lot number. If this marking is not present, your shipment will be rejected at port of entry and returned to the country of origin which would be very costly and time consuming.

What is the purpose of this import regulation? To provide an ability to identify the location, date of production and lot number so that CPSC can more readily isolate products that may present a safety concern at the port of entry.

What does this mean for you? If you are considering going overseas to have product manufactured, beware of the imitators, stick with the professionals at UGS and we will handle all of the import shipping requirements and we will make sure that you are protected. If you have any questions or comments regarding this subject, we are listening…

Finally, CBP has agreed to issue an interim rule for the Import Security Filing commonly referred to as 10+2, as opposed to a final implementation.  The fact this was issued as an interim rule highlights the fact CBP has taken into consideration many of the trade’s concerns.  The following are the key areas that have been amended from the initial Notice of Proposed Rule Making (NPRM).

1)  CBP will “show restraint in enforcing the the rule for a period of 12 months after the effective date.  The effective date will be 60 days from the date of publication – January 26, 2009.

2)  Two of the twelve elements will subject to flexibility as to the timing of their submission to CBP.  This includes the Container stuffing location and the Consolidator (stuffer) name and address.   The importer must submit these elements as soon as possible and no later than 24 hours prior to arrival in a US port.

3)  Four elements will be subject to flexibility with respect to interpretation.  These elements include the Manufacturer (supplier), Ship-to party, Country of Origin, and HTS number.  CBP will allow a range of acceptable responses based on facts available to the importer at the time, but the elements must still be filed 24 hours prior to loading.  The importer will then be required to update their filing of these elements as soon as accurate information is available and no later than 24 hours prior to arrival at a U.S. port.

4)  The liquidated damage amount for violations has been changed from the value of the cargo to $5,000 per violation.

5)  The requirement for break bulk cargo to be included on vessel stow plans has been eliminated.

6)  Container Status Messages (CSM) are required for empty containers.

7)  The label for the party required to submit the ISF has been changed from “importer” to “ISF importer” meaning the owner, purchaser, consignee, or agent.

8)  Provisions were made to create an Importer Security Filing Bond (19CFR 113.63).

9)  Powers of Attorney must be in English and POA’s as well as letters of revocation must be kept for five years from revocation date.

Basically, CBP has made some changes in response to comments from the trade but many requirements remain unchanged.  The phased-in approach provides importers a chance to work through the challenges without immediate penalties as well as the opportunity to provide additional feedback to CBP.  The next 14 months will be challenging as importers try to ramp up to meet the requirements of another security initiative as they also strive to cut costs and increase efficiency while remaining competitive.

Should you have any questions/concerns related to your freight movement under this new initiative, please feel free to contact us directly.  UGS is working daily with our service providers to ensure we are ready to meet the challenges presented by the implementation of 10+2.

The Consumer Product Safety Act (CPSA) final ruling eliminates the requirement for foreign manufacturers who export to certify their goods conform with applicable CPSA product safety standards.  The importer of foreign manufactured will be solely responsible to issue conformity certificates for imported goods.

The rule also clarifies that certificates can be electronic and satisfy the requirements of a) accompanying the shipment, and b) furnished to distributors/retailers.  This can be accomplished by using a unique shipment identifier that can be accessed via the Internet to eliminate concerns regarding confidentiality of imported products.

It is still critical for importers to determine the standards that apply to their products and ensure those standards are being met, a task that is complicated by the fact new rules and guidelines seem to be issued weekly.  All importers should take note after an initial adjustment period, the failure by an importer to abide by the certificate of conformity requirement will result in shipments being denied entry and/or destruction.

All importers should remember it is the Customs Inspector at the port initially making the determination whether or not to hold a shipment and as we all know this “interpretation” of new regulations varies dramatically from port to port.  I would not be surprised to see a larger than expected volume of shipments being held while CBP Headquarters sends some directives to the officers at the ports on how to handle and process shipments under these new guidelines.

The new Customs and Border Protection e-Allegations website provides a venue for the public to report any suspected violations of trade laws or regulations related to the importing of goods into the United States.  These violations include but are not limited to false country of origin markings, health and safety issues, intellectual property rights, and trademark and copyright infringement.

The system allows anonymity for concerned citizens who have knowledge of trade violations that are damaging to the U.S. economy and the general public.

UGS customers with trademarked or copyrighted items should contact us immediately if they have knowledge of an illegal import of their product.  We will guide our customers through the e-Allegations website and follow-up to ensure our customer’s products are protected against knock-offs by competitors who then attempt to import these same products in the U.S.

Safe Port Act of 2006

Customs and Border Protection acting on provisions of the Safe Port Act of 2006 will require additional data elements from importers to improve targeting of high-risk freight.  This filing will include ten (10) data elements from the shipper/importer and two (2) elements from the carrier.  The filing is to be done one time inclusive of all twelve (12) elements.

10+2 is an ocean container security filing submitted by the importer and carrier to CBP 24 hours prior to vessel loading in the foreign port.  This currently applies only to containerized cargo – exemptions include break bulk and RoRo (roll on roll off) freight.

The final ruling has not yet been published on 10+2 but is expected within the next weeks.  UGS is working with our partners and service providers to ensure compliance and seamless transition for our customers under this new security initiative.

The House Ways and Means Committee has asked the International Trade Commission to review imports of textiles and apparel from China and report the findings to Congress.  The domestic textile industries are concerned once the trade restrictions are lifted on December 31, 2008 there will be a surge in imports from China that will jeopardize U.S. jobs.

This paves the way for possible Anti-Dumping/Countervailing Duty cases and other restrictions to be imposed on these imports from China to protect the U.S. textile industry as well as that of developing countries who import U.S. manufactured textiles under preferential trade agreements.

LCL: Less than Container Load: When your shipment does not fill a 20’/40’ container it is combined with other shipments in a container then sorted at the port of destination for delivery.

TOOLING: A jig or template of your item(s) is made in order to mass produce more easily.

ETD vs. ETA: Estimated Time of Departure: When your shipment leaves the factory. Estimated Time of Arrival: When your shipment is due to be delivered to your door.

MOQ: Minimum Order Quantity: When quoting, this may exceed your originally requested amount. This is the least number of pieces the factory can make taking into consideration all costs. (material, labor, etc.)

C-TPAT: Customs – Trade Partnership Against Terrorism: A program where importers volunteer to utilize more strict security practices, while in association with Customs.

New USDA Declaration of Plant Products

Importers of wood products will no longer have a concern about meeting the December 15, 2008 statutory deadline for filing documentation related to imports of plants and plant products.  The USDA has now proposed a phased in approach where most importers would not have to comply until July 1, 2009.  There is currently a paper declaration form on the USDA website importers can use for imports after December 15, 2008.  There will be no enforcement for failure to file the form, but there will be enforcement for filing a form containing false information.

The scope of the Lacey Act is broad and covers certain live plants, plant parts, lumber, wood pulp, paper and paperboard, and products containing certain plant material to possibly include furniture, tools, umbrellas, sporting goods, printed matter, and musical instruments.

UGS will stay up to date on the latest developments concerning the Lacey Act and how it applies to your company’s products on our website.