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.

According to a report in The Times of London, British Chancellor of the Exchequer Alistair Darling plans to present a draft of a “scrapping scheme” modeled after Germany’s successful ‘Cash for Clunkers’ program when he presents his budget on April 22.

British officials have been impressed by the results the programs have delivered in other countries. Last month, Britain experienced a 30 percent drop in new car registrations at a time when Germany recorded 40 percent more vehicle sales than during the same period a year earlier.

In addition to Germany, a number of European countries including Austria, France, Italy, Portugal, and Spain also have stimulus programs in place for carmakers suffering from the credit crunch and global financial crisis—and the success of these stimulus efforts has been significant.

According to a U.S. Customs and Border Protection (CBP) document dated March 27, 2009: "Electronic submission of the required data elements will be accepted starting April 1, 2009. Enforcement of the data collection requirement will begin May 1, 2009. Importers are encouraged to use the 30-day period starting April 1, 2009, for live testing of the electronic system. The government will rely on the data collected in its reports to Congress and in determining if any refinements to the electronic system are needed. The 30-day delay of enforcement will allow the government time to complete its work on integrating the Lacey declaration requirement into CBP's expedited border release programs. It is not anticipated that enforcement of subsequent phases will be delayed."

To view the complete "Guidance on the Lacey Act Enforcement" document, visit www.cbp.gov and search on the document name for a link.

• Working with Congress and public stakeholders on the renewal and reform of Trade Preference Programs. Careful consideration will be given to proposals that concentrate benefits more effectively on the poorest countries and those that need the margin of preference to compete.


• Developing a plan of action to address the pending free trade agreements in consultation with Congress. The Administration is hoping for relatively quick movement on the Panama FTA and planning to establish benchmarks for progress on the Colombia and South Korea FTAs. In addition, the Administration will review the implementation of FTAs as well as bilateral investment treaties (BITs) in order to ensure the advancement of public interest.


• Collaborating with Canada and Mexico in order to improve the North American Free Trade Agreement (NAFTA) without adversely affecting trade.


• Working with U.S. trading partners in the WTO Doha Round negotiations to create a strong, market-opening agreement for both goods and services. The Administration maintains that this would be an important contribution to addressing the global economic crisis. However, the Administration notes that it will be necessary to correct the "imbalance" in the current negotiations in which the value of what the U.S. would be expected to give is well-known and easily calculable, but the broad flexibilities available to others leaves unclear the value of new opportunities for U.S. workers, farmers, ranchers, and businesses.


• Continuing efforts to address major unresolved issues that cause trade frictions. The Administration plans to: (i) negotiate for improved transparency and due process in U.S. trading partners' practices and policies, including government procurement and the crafting of market regulations; (ii) seek to open markets and secure fair treatment for U.S. services; (iii) negotiate and enforce strong and effective intellectual property protections; and (iv) pursue advances in trade facilitation and consumer product safety, through plurilateral negotiations if appropriate.
  
  

For more information, please access the President's 2009 Trade Policy Agenda at http://www.ustr.gov/assets/Document_Library/Reports_Publications/2009/2009_Trade_Policy_Agenda/asset_upload_file810_15401.pdf



For the complete text of the President's 2009 Trade Policy Agenda and 2008 Annual Report on the Trade Agreements Program, please access http://www.ustr.gov/assets/Document_Library/Reports_Publications/2009/2009_Trade_Policy_Agenda/asset_upload_file86_15410.pdf

http://ups-scs.service.com/ups-scs/customer/tradenews/messages/TN_2009031912.htm

As a whole, Europe, the Middle East, and Africa reported 3,756 incidents last year with a total loss of more than $213 million.

The association says more than 10 percent were ‘major incidents’ with 72 percent from the United Kingdom alone. Spain and Germany were the second- and third-highest countries for cargo crime.

An executive with the TAPA noted: “We know from previous recessions that crime increases. UK government statistics, for example, reported a 19 percent increase in violent crime during the recession of the early 1990s. We expect 2009 to be one of the toughest years of the last decade in terms of cargo crime statistics.”

With a 50 percent increase in reported thefts last year, TAPA says consumer electronics, food, metal, clothing, and footwear were among the most frequently stolen products.

For years, the U.S. Food and Drug Administration has made it difficult for Americans to import drugs from other countries, including Canada, citing concerns about safety. Nonetheless, Internet sales have been brisk, and cross-border business is estimated at close to $1 billion (Canadian dollars) annually.

One section in President Obama’s budget, entitled “Lowers Drug Costs and Improves Food and Medical Product Safety,” noted that the budget “supports the Food and Drug Administration’s new efforts to allow Americans to buy safe and effective drugs from other countries.”

Among the recipients are Asiana Airlines, which was named Airline of the Year for 2009 for its superb commitment to passenger safety and operational excellence as reflected in industry leading dispatch reliability and engine in-flight shutdown rates.

UPS Airlines was chosen as the Cargo Airline of the Year for 2009. It was recognized for its successful growth over the past two decades, including the rapid development of a global network. The editors were impressed with UPS Airlines’ commitment to safe operations and history of technological innovation, ranging from the way in which parcels are sorted and delivered to leading-edge Automatic Dependent Surveillance-Broadcast flight tests that could benefit the entire air transport industry.

UK-based Flybe was named Regional Airline of the Year. The carrier was recognized for its its early commitment to making consumers aware of the environmental implications of their choices in air travel by offering them an environmental report card of each flight they take.

Specifically, the automakers said the deal now being negotiated would not eliminate barriers that hold back their exports to South Korea, yet it would allow South Korean rivals to ramp up exports as they gain full access to the EU market.

EU spokesman Peter Power responded that the proposed pact would give many European sectors—including automakers—substantial access to the South Korean market.

The European car industry says it is in crisis after sales slipped nearly 8 percent in the region last year.

The sessions are intended to help importers and their filing agents comply with the new requirements.

Sessions will be held this month in the following cities: Oakland (Jan. 14), Baltimore (Jan. 22), Philadelphia (Jan. 23), Charleston, S.C. (Jan. 28), and Savannah, GA (Jan. 29).

Dates for Houston, Boston, Miami, Long Beach, Chicago, and Norfolk will be announced in the near future, the agency said.

Details are available online at www.cbp.gov.