The key gateway for trans-Pacific air cargo experienced a 2.5 percent increase in freight tonnage over September 2008, the first yearly growth for Los Angeles since November 2007.

The September tonnage also marked a 3.7 percent gain over August’s freight tonnage, the fifth straight month-to-month gain for the airport.

Air cargo carriers are seeing modest improvements in demand while some forwarders are reporting capacity shortages in Asia as carriers have idled aircraft.

According to the International Air Transport Association (IATA), all of the world's regions reported higher demand in August compared to July, with Latin America and the Middle East showing the most improvement.

Compared to the low point of December 2008, seasonally adjusted freight demand has improved by 12 percent, but remains 16 percent below April 2008 levels when the fall in demand began, says IATA.

For 2010, IATA is forecasting an average international freight growth of 5.5 percent across the industry, compared to an expected full-year decline in 2009 of 14.5 percent.

According to Customs, C-TPAT members may be suspended or removed from the program for several reasons to include, but not limited to, the following: narcotics seizures or other security related incidents such as human smuggling attempts, failed validations, non-response to required information, or an overall lack of commitment to the program.

Once an incident occurs, C-TPAT determines the appropriate next steps on a case-by-case basis.

To avoid suspension or removal from the program, C-TPAT members must ensure they are in full compliance with the minimum security criteria and be cognizant of and responsive to mandated timeframes.

For C-TPAT’s minimum security criteria, visit: http://www.cbp.gov/xp/cgov/trade/cargo_security/ctpat/ .

DUNS are available only to business entities, and EINs are available to both businesses and individuals. Upon implementation of the rule, if the USPPI or the U.S. authorized agent who resides or has an office located in the U.S. does not have an EIN, the USPPI or U.S. authorized agent must obtain an EIN through the Internal Revenue Service's ("IRS") website (http://www.irs.gov/businesses/small/article/0,,id=98350,00.html). Former SSN filers who want to use a DUNS rather than an EIN for identification purposes must first obtain an EIN from the IRS and apply to Dun & Bradstreet for a DUNS.

The purpose of the rule is to ensure the confidentiality of the USPPI's and the U.S. authorized agent's personal information and to comply with the Privacy Act of 1974 and Office of Management and Budget guidance. Census is amending relevant sections of the FTR (sections 30.1(c), 30.3(a), 30.3(e), 30.6(a) and 30.6(b)) to specify the requirements for the reporting of an EIN or DUNS in place of a SSN for identification purposes in the AES and AESDirect.

The Census Bureau is inviting the public to comment on the interim final rule. Comments are due by October 5, 2009.

According to Census, the interim final rule is effective September 4, 2009. However, Census will implement provisions of the rule on December 3, 2009.

For additional information, please refer to the Census interim final rule (published 8/5/09) available at http://edocket.access.gpo.gov/2009/pdf/E9-18728.pdf

Specifically, the WTO found that import barriers on products like DVDs and reading materials violate WTO protocols, as do restrictions that prevent foreign suppliers from distributing their own products in China. To date, China has required U.S. creative works to be distributed through state-owned companies.

U.S. Trade Representative Ron Kirk called the findings "an important step toward ensuring market access for U.S. exporters and distributors of those products."

The infrastructure fee was rolled out last year, but has been delayed twice, most recently until summer 2010, because the pace of expansion projects at the ports has slowed considerably.

The deputy executive director at the Port of Los Angeles explained that the infrastructure fee might be required eventually, although port executives believed it was counterproductive to keep setting deadlines for the fee and then canceling them.

The Customs-Trade Partnership Against Terrorism (C-TPAT) is a voluntary government-business initiative to improve global supply chain and U.S. border security.

According to CBP's decision, certain C-TPAT partners will be eligible for mitigation of up to 50 percent of the normal mitigation amount for 10+2 violations.

The $168 million Anzalduas International Bridge will be one of the newest and largest border crossings in the country.

Several global manufacturers have recently boosted their manufacturing activity in Mexico as rising transportation costs have made Asian manufacturing less attractive.

Containers consigned to a C-TPAT importer that are designated for drayage to a Centralized Examination Station (CES) for a CBP Enforcement, Trade, or Agriculture examination, will clearly be designated as "C-TPAT Priority," on the Permit to Transfer or CF3461 document faxed to the CES facility. The CES facility will in turn dray to their facility, and present for examination, the C-TPAT Priority cargo before non-C-TPAT designated containerized cargo.

In order to identify C-TPAT importers, and ensure priority treatment is afforded, it is strongly recommended that Customs brokers/filers file entries three to five days prior to vessel arrival. These procedures will facilitate the expectations of C-TPAT importers by ensuring the subject containers will be given priority consideration by CES facilities.

CBP will generate a report for each importer that is based on the Importer of Record/tax identification number used when the ISF was submitted. If an importer uses multiple tax identification numbers, CBP will generate a separate ISF Progress Report in connection with each number.

Future reports will be distributed on a monthly basis by CBP to ISF agents, such as UPS/SCS. UPS/SCS will then provide a copy of the report to customers shortly thereafter. However, in order to receive these reports, you must make a request to your UPS/SCS account representative.

Specifically, Davis cited three imperatives for laying the groundwork: rebuilding transportation infrastructure, deploying technology to speed commerce, and creating a fair, rational system of trade.

"Trade is a major force for good, for growth and for jobs," Davis said, and as many as 57 million Americans work for companies engaged in global trade.

At the same time, Davis cautioned against rising protectionism. "We must argue that protectionism is the worst response at the worst time. We can't let political expediency cloud global reality," he said.

Research firm AlixPartners found that in 2005, Chinese-made parts were 22 percent cheaper on average than American-made parts. By the end of 2008, however, the price gap had narrowed to 5.5 percent. Furthermore, while manufacturing in China was about 5 percent cheaper than in Mexico three years ago, manufacturing in China is now about 20 percent more expensive. Compared with the U.S., the savings in Mexico have widened to 25 percent, from 16 percent.

"A couple of years ago, outsourcing to China was a no-brainer," remarked the managing director for AlixPartners, but that’s no longer the case, he said

• "personal use" food brought by travelers;


• home-made food sent by the individual who made it as a personal gift;


• food that is imported then exported without leaving the port of arrival until export;


• meat, poultry or egg products under exclusive USDA jurisdiction at the time of importation; and


• food shipped as baggage or cargo constituting the diplomatic pouch.
  
  

The following section, excerpted from the CPG, provides guidance to FDA and CBP staff when they encounter the situations described below. FDA and CBP staff may take different or additional actions if they believe particular circumstances warrant them.



Regulatory action should not be considered by FDA and CBP when there is no prior notice in the following scenarios, or for certain gift packs, when the PN identifies the packer rather than the manufacturer(s):

• Non-commercial imports by non-commercial shippers, irrespective of the type of carrier, including food in household goods, including military and civilian transfers; food purchased and shipped home by U.S.-based travelers (and not by a commercial establishment); and gifts purchased at commercial establishments but shipped by the purchaser, not the establishment;


• Imports for quality assurance, research or analysis purposes only, not for human or animal consumption or resale, in quantities consistent with such ends, but not including samples for test marketing, such as tasting at trade-shows or product promotional tasting events;


• Imports for "in vivo" testing in non-food producing laboratory animals;


• Foreign-to-foreign mail when the article is not consigned for delivery to a U.S. party/address;


• Courier shipments when the carrier is an express consignment operator or carrier and the importer, owner, or recipient/consignee is not located in the United States;


• Official U.S. federal government shipments, provided that a Federal Government agency is the importer of record;


• Imported food arriving from and exiting to the same country, if certain conditions are met;


• Seed imported or offered for import for cultivation, generally when no more than a small portion of the seed is likely to be diverted from cultivation to animal feed or other food use.


• Gift packs imported by individuals for non-business purposes (not for sale or commercial use), for which a single prior notice is filed with the identity of the facility that packed the gift pack, rather than the identity of all the manufacturers of each article of food in the gift pack.
  
  

The following are acceptable reasons for not providing a manufacturers' registration number:

• facility out of business;


• private residences;


• restaurants exempted under 21 CFR 1.226(d);


• retail food establishments exempted under 21 CFR 1.226(c);


• non-processing fishing vessels exempted under 21 CFR 1.226(f);


• non-bottled drinking water establishments per 21 CFR 1.227(b)(2);


• farms exempted under 21 CFR 1.226(b);


• the submitter is unable to determine the registration number, but submits the full address.
  
  

FDA intends to reject prior notice submissions unless the prior notice includes a valid registration number or an appropriate reason selected from among those listed above. The requirement that FDA provide confirmation of receipt of Prior Notice does not apply to rejected submissions.



FDA staff should verify the validity of any circumstance where a reason is provided in lieu of a registration number.



If the reason provided is that the submitter is unable to determine the registration number of the manufacturer, FDA should nonetheless verify the identity of the manufacturing facility and its registration status. Without the registration number, it will be more difficult and/or may take more time for FDA to verify the identity of the manufacturing facility and its registration status and to determine whether the article of food is subject to being held under section 801(l) of the act. As a result, if an article of food is imported or offered for import and the registration number is not provided, and if FDA has concerns that the food may pose a serious health threat, then physical movement of the food shipment beyond the arrival port may be delayed until the verification is completed.



If the registration number of the facility that manufactured the food is not submitted as part of prior notice, FDA may also consider this in determining whether and where to examine the article of food.



FDA and CBP's enforcement strategy for violations is to take into account the severity of the violations, whether they are flagrant, and whether the person has had previous violations, particularly if they were similar types of violations.



When it is consistent with FDA's public protection responsibilities and depending on the nature of the violation, individuals and firms may be given an opportunity to take voluntary and prompt corrective action before the agency initiates enforcement actions. For instance, FDA may elect to refuse PNs, or may send Compliance letters to give warning to the responsible parties, prior to pursuing other regulatory actions.



The regulatory actions for violations include:

• Refusal for no prior notice, inaccurate prior notice, or untimely prior notice;


• Hold on importing, or offering for import, food from a foreign facility that is not registered;


• Injunction;


• Prosecution;


• Debarment;


• CBP seizure and assessment of civil monetary penalties for violations of any laws enforced by CBP, including but not limited to 19 USC 1595a. Civil monetary penalties may be assessed against any person who directs, assists, financially or otherwise, or is in any way concerned in the importation of any merchandise contrary to law.
  
  

For more information on FDA's announcement in the Federal Register regarding the revised CPG, please access the following site: http://edocket.access.gpo.gov/2009/pdf/E9-10556.pdf



The FDA Compliance Policy Guide, entitled "Sec. 110.310 Prior Notice of Imported Food Under the Public Health Security and Bioterrorism Preparedness and Response Act of 2002" (dated May 2009) is available at http://www.cfsan.fda.gov/~pn/cpgpn8.html

Cargo demand was fairly steady in March, "although at the shockingly low level of -21.4 percent," he said.
"Air cargo demand has moved sideways in the -21 percent to -24 percent range since its plunge from -7.9 percent to -23.2 percent between October last year and January 2009," according to a statement issued by IATA.

"It's not the end of the recession, but we may have found the floor," Bisignani noted.

Import Restrictions

Generally, a USDA Veterinary Services ("VS") permit is needed for materials derived from animals or exposed to animal-source material. Other animal materials that require an import permit include meat and dairy products from countries with livestock diseases exotic to the United States. Meat, meat products, and meat or animal by-products may require a certificate from the exporting country. Some products may be exempt from certification, depending on the nature of the product, the country or region of production or export, the manner of preparation, and the animal species. In some cases, importation may be prohibited. Restrictions can affect not only products that will be entered for consumption in the United States, but also products that will transit the United States for export.

Products subject to regulation include not only fresh meat, but also processed food products containing meat. Examples of animal-derived materials that may require an import certificate or permit include:

• Fresh (chilled or frozen), cured, or dried meat (poultry, ruminant, swine, equine)


• Milk and milk products


• Eggs and egg products


• Meat products (e.g., meat pies, prepared foods, hydrated and dehydrated soups, stocks, extracts, and canned meat)


• Hides, skins, capes, and hair


• Bones, gelatin, and gelatin capsules


• Casings


• Organs and glands


• Blood


• Live animals


• Animal embryos, semen, and ova

Information about certification and permit requirements for these products is available in APHIS's Animal Product Manual, at http://www.aphis.usda.gov/import_export/plants/manuals/ports/apm.shtml.

Additional information about specified diseases and regions of concern is available at http://www.aphis.usda.gov/import_export/animals/animal_disease_status.shtml . Information about applying for a VS import permit can be found at http://www.aphis.usda.gov/animal_health/permits/. Certain animal products do not require a USDA import permit. These products are:

• Human pharmaceuticals and human vaccines containing animal components


• Human and non-human primate material (excluding cell cultures)


• Feline and canine material


• Live laboratory mammals and their material (for research purposes)


• Amphibians, fish, reptiles, shellfish, and aquatic species (includes venom)


• Chemically synthesized materials


• Microbially produced materials


• Recombinant microbes and their products


• Non-pathogenic microorganisms


• Cell cultures/lines, recombinant cell cultures/lines, and their products (for in vitro use)


• Test kits


• Animal feeds, feed supplements, and pre-mixes

Nonetheless, all of these products are subject to USDA inspection at the port of arrival in the United States. Some products may still require a certification or declaration, and in some cases, USDA recommends that certain documentation, e.g., from the foreign shipper/producer, accompany the shipment to facilitate importation. More information about the products that do not require a USDA import permit is available at http://www.aphis.usda.gov/import_export/animals/animal_import/animal_imports_nopermit.shtml .

The Food Safety and Inspection Service of the USDA also regulates the importation of meat, poultry and egg products. Animal products also may be regulated by other government agencies, such as the U.S. Food and Drug Administration or the U.S. Fish and Wildlife Service, and these agencies have their own restrictions on imports and their own requirements for permits, certificates, and licenses.