Press Release Archives

ICC Issues Third G20 Newsletter

Published on October 11, 2011
Corporate economists from around the world meet with members of the ICC G20 Advisory Group.
Corporate economists from around the world meet with members of the ICC G20 Advisory Group.

The International Chamber of Commerce has released the third issue of the G20 Executive Brief, a newsletter aimed at keeping the organization’s international network and the business community informed of its activities ahead of this year’s G20 Summit, November 3-4 in Cannes. Since its creation in May 2011, the G20 Advisory Group has been leading ICC’s efforts to develop policy input to the G20 process in areas including: trade and investment, financial regulation, anti-corruption, the international monetary system, commodity price volatility and green growth.

USCIB Congratulates U.S. on Signature of Anti-Counterfeiting Pact

Published on October 3, 2011

New York, N.Y., October 3, 2011 – The group that represents American business on the global stage welcomed the conclusion of an ambitious international anti-counterfeiting pact between the United States and several leading nations.  The United States Council for International Business (USCIB), called the Anti-Counterfeiting Trade Agreement (ACTA) signed Saturday in Tokyo an important sign of more aggressive international cooperation to stem rampant counterfeiting and piracy.

“The business community congratulates U.S. Trade Representative Ron Kirk and his team for concluding this important agreement,” said USCIB President and CEO Peter M. Robinson.  “Strong action is needed to combat the worldwide proliferation of fake products, which threatens U.S. consumers, jobs and our competitiveness.”

According to USTR, the ACTA negotiations aim to establish a state-of-the-art international framework that provides a model for effectively combating global proliferation of commercial-scale counterfeiting and piracy in the 21st century.  The agreement also includes innovative provisions to deepen international cooperation and to promote strong enforcement practices.  Together, these provisions will help to protect American jobs in innovative and creative industries against intellectual property theft, USTR said.

In addition to the United States, parties to ACTA are Australia, the European Union, Japan, Korea, Mexico, Morocco, New Zealand, Singapore and Switzerland.

USCIB has a long record of advancing intellectual property rights around the world.  It was an early supporter of protecting IPRs in the World Trade Organization via the Uruguay Round.  As the U.S. affiliate of the International Chamber of Commerce (ICC), USCIB provides American business views to foreign governments and international organizations, including the World Intellectual Property Organization.  USCIB also helped launch ICC’s BASCAP (Business Action to Stop Counterfeiting and Piracy) initiative, which coordinates the business community’s response, across industry segments and across national boundaries, in the fight against counterfeiting and piracy.

“Business is working with our partners around the world to keep action against counterfeiting and piracy at the top of the international agenda,” said Mr. Robinson.  “We look forward to working with the U.S. and other governments to ensure effective implementation and enforcement of ACTA going forward.”

About USCIB

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.  With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.  More information is available at www.uscib.org.

More on BASCAP (ICC website)

More on USCIB’s Intellectual Property Committee

USCIB Urges Swift Passage of Free Trade Agreements With Colombia, Korea and Panama

Published on October 3, 2011

New York, N.Y., October 3, 2011 – The United States Council for International Business (USCIB), which represents America’s leading global companies, applauded President Obama‘s submission of the U.S. free trade agreements with Colombia, Panama and Korea to Congress.

“The FTAs will provide a big boost to our economy as we seek to ensure sustained growth and a jobs-based recovery,” stated USCIB President and CEO Peter M. Robinson.  “These agreements have strong bipartisan support, and American business urges Congress to pass them without delay.”

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.  With a unique global network encompassing leading international business organizations, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.  More information is available at www.uscib.org.

More on USCIB’s Trade and Investment Committee

United Arab Emirates to Expand ATA Carnet System to Abu Dhabi

Published on September 28, 2011
Abu Dhabi Corniche
Abu Dhabi Corniche

New York, N.Y., September 28, 2011 – The United States Council for International Business (USCIB) is pleased to announce that Abu Dhabi will start accepting ATA Carnets for the temporary admission of goods, beginning October 1. Last April the Dubai Chamber of Commerce became the 69th guaranteeing association in the ATA Carnet guarantee chain. Dubai was the first of the United Arab Emirates to welcome merchandise traveling under Carnets.

Abu Dhabi, the UAE’s capital city, has developed rapidly in recent years. Its population now maintains a high per-capita income, which has transformed Abu Dhabi into a large and advanced metropolis. USCIB, which issues and guarantees ATA Carnets in the United States, said the expansion, coupled with the emirate’s strong buying power, provided an excellent opportunity for American businesses to sell their products.

“UAE is a leader in international trade in the region and it continues to demonstrate this as it expands acceptance of the ATA Carnet,” said Cynthia Duncan, USCIB’s senior vice president for Carnet operations. “With strong buying power and numerous trade shows in Abu Dhabi, the UAE’s acceptance of Carnets should be a gain for U.S. companies from all industries.”  Goods travelling on ATA Carnets for display at exhibitions, fairs, meetings or similar events will be able to enter this emirate through the Abu Dhabi International Airport and the seaport of Zayed, according to USCIB.

ATA Carnets are merchandise passports that permit the duty-free, tax-free export of goods.  In 2009, the most recent year for which worldwide figures are available over 150,000 Carnets were issued, covering goods worth more than $17 billion (U.S.).  Prior to Abu Dhabi’s acceptance, Bosnia & Herzegovina and Mexico were the latest territories to join the worldwide system, which is overseen by the International Chamber of Commerce (ICC) and the World Customs Organization.

The UAE was the largest U.S. export market in the entire Middle East and North Africa region in 2009, and the 19th largest globally, according to the U.S. Department of Commerce.  Transportation equipment, machinery, computers and electronics, and chemicals are the top U.S. exports to the country.  Since UAE joined the ATA Carnet system last April we have received significant demand for ATA Carnets for travel to Dubai and multiple requests for use in Abu Dhabi.

Exporters and business travelers interested in learning more about UAE’s acceptance of Carnets can visit the UAE page on USCIB’s ATA Carnet website, www.merchandisepassport.org/.

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.  With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.  More information is available at www.uscib.org.

More on USCIB’s ATA Carnet Export Service

USCIB Welcomes Senate Passage of GSPTAA/Bill

Published on September 23, 2011

New York, N.Y., September 23, 2011– Peter M. Robinson, president and CEO of the United States Council for International Business, issued the following statement regarding the Senate’s passage of the trade bill renewing the Generalized System of Preferences and Trade Adjustment Assistance:

“USCIB applauds the Senate’s passage of the GSP/TAA bill and is encouraged by bipartisan support for the measure.  We urge the House to act quickly on this legislation and the White House to move forward with submitting the Korea, Colombia and Panama Free Trade Agreements to Congress.  It is essential to the American business community that all necessary action on these trade bills is completed as soon as possible, to ensure that our companies can continue to compete and create jobs through expanded market access.”

About USCIB

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.  With a unique global network encompassing leading international business organizations, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.  More at www.uscib.org.

SWIFT and ICC Collaborate on Enhanced Rules and Tools for Trade Finance

Published on September 21, 2011

Declaration of Cooperation paves way for market acceptance of the Bank Payment Obligation instrument

New York, N.Y., September 21, 2011 – SWIFT, the financial messaging provider for more than 9,700 financial institutions and corporations in 209 countries, and the Banking Commission of the International Chamber of Commerce (ICC) have signed a Declaration of Cooperation that will enable industry-wide adoption of the Bank Payment Obligation (BPO), according to ICC’s American national committee, the United States Council for International Business (USCIB).

The ICC Banking Commission is a global rule-making body for the banking industry and a worldwide forum of trade finance experts whose common goal is to facilitate international trade finance.

The BPO will offer an alternative means of settlement in international trade and will provide the benefits of a letter of credit in an automated environment. It enables banks to offer flexible risk mitigation and financing services across the supply chain to their corporate customers.

Both ICC and SWIFT believe that by working together and leveraging their respective positions across the trade finance community, the BPO will have an important role to play in the development of international trade by addressing cost pressures in the face of increased automation and changes in the regulatory environment.

“Trade finance is a critical banking service supporting the world economy,” said Kah Chye Tan, chair of the ICC Banking Commission and global head of trade and working capital with Barclays.  “It is vital that the industry aligns on enhanced rules and tools in support of trading counterparties whether large or small. The ICC Banking Commission views the development of the BPO rules and the related ISO 20022 messaging standards as strong foundations for banks to provide modern risk and financing services aligned with today’s technology evolution.”

Michael Quinn, chair of USCIB’s Banking Committee and managing director at JP Morgan Global Trade Services, elaborated: “The Bank Payment Obligation will facilitate significant operating process improvement for corporations involved in Trade Finance while preserving the risk mitigation attributes of the traditional letter of credit.  The ICC-SWIFT work on BPO rules and standards leverages the  expertise of the respective organizations to help broaden the availability of trade finance for bank customers, an important driver of economic growth at a time when it’s vitally needed both here in the U.S. and abroad.”

Industry forecasts indicate that merchandise exports will reach $33 trillion (U.S.) by 2020, from $6 trillion in 2000, explained Gottfried Leibbrandt, head of marketing at SWIFT.  “ICC and SWIFT are best positioned to help the banking industry facilitate further growth of trade using innovative solutions,” he said.  “SWIFT is committed to helping its member banks deliver innovation in trade finance to the corporate world.”

The declaration, signed at Sibos in Toronto, confirms the framework for collaboration between SWIFT and ICC to publish and maintain a set of contractual rules that will establish uniformity of practice in the market adoption of the Bank Payment Obligation (BPO) and the related ISO 20022 messaging standards.

 

About the ICC Banking Commission

The ICC Banking Commission is a leading global rule-making body for the banking industry, producing universally accepted rules and guidelines for international banking practice, notably letters of credit, demand guarantees and bank-to-bank reimbursement. ICC rules on documentary credits, UCP 600, are the most successful privately drafted rules for trade ever developed and are estimated to be the basis of trade transactions involving more than one trillion dollars a year. The Banking Commission is equally a worldwide forum of trade finance experts whose common aim is to facilitate international trade finance across the world. With over 500 institutional members in 85 countries, many of them emerging, the Banking Commission is one of the largest ICC Commissions.

About SWIFT

SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect more than 9,700 banking organizations, securities institutions and corporate customers in 209 countries. SWIFT enables its users to exchange automated, standardized financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest.

About USCIB

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.  With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.  More information is available at www.uscib.org.

More on USCIB’s Banking Committee

New Marketing Code Raises Consumer Protection Standards Around the World

Published on September 15, 2011

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New York, N.Y., September 15, 2011 –New protection for Internet users – along with detailed standards for marketers selling to them – are highlighted in a newly revised code of global marketing practice from the International Chamber of Commerce (ICC), according to ICC’s American national committee, the United States Council for International Business (USCIB).

The Consolidated ICC Code of Advertising and Marketing Communications, launched today and made globally available online, serves as the foundation for national self-regulatory systems that monitor marketing practices and provide consumers with easy access to make complaints and redress problems.  The Code was unveiled in Buenos Aires at an international conference on responsible advertising, hosted by CONARED, the Latin American Association of Advertising Self-Regulatory Organizations.

“Our Consolidated Code is recognized as the gold standard for self-regulation,” said John Manfredi, chair of ICC’s Commission on Marketing and Advertising and CEO of Manloy Associates.  “This new Code expands the scope and reach of global efforts with rules that cover consumer rights and business’s responsibilities online.  It increases protection for children on the Internet and sets parameters for all advertising directed to them, and it adds safeguards for consumers’ privacy and personal information.”

Mr. Manfredi added that ICC, to make the Code accessible to everyone, has launched a website, www.codescentre.com, dedicated to self-regulation at all levels – global, national and regional.  “It will serve business people, regulators, self-regulators and academics as well as consumers,” he said.  “Its purpose is to build trust for self-regulation by setting high marketing standards.”

The Code sets out the do’s and don’ts on many topical and difficult marketing issues including:

  • Setting conditions and limits for online behavioral targeting of advertising (OBA), based on interest profiles created by tracking web browsing habits of consumers;
  • Establishing restrictions on products that may be marketed to children and information gathered from them;
  • Specifying guidelines for making responsible environmental marketing claims and creating sound food and beverage ads;
  • Setting standards for ethical behavior and transparency on digital communications for the new technology players, including mobile operators, search engines, application developers, information aggregators and data gatherers;
  • Protecting consumer privacy with clear guidance on consumers’ rights, including the right to know what information is acquired by a marketer and the standards for the collection, use and safeguarding of personal data when it is collected.

“The newly revised Code demonstrates industry’s continuing commitment to ethical marketing practice,” said Brent Sanders, associate general counsel with Microsoft Corporation and chair of USCIB’s Marketing and Advertising Committee.  “Some of the most interesting revisions to the Code for U.S. marketers include those that harmonize for the first time at the international level provisions about online behavioral advertising [OBA], requiring transparency and control for consumers for their online data.  This builds on pioneering OBA self-regulatory efforts here in the United States and expands them globally.  Enhancing consumer trust in advertising is vital to a competitive and innovative marketplace.”

Mr. Sanders is scheduled to review the key provisions of the Consolidated ICC Code of Advertising and Marketing Communications on October 3 in New York at the National Adverting Division’s annual conference.

About the International Chamber of Commerce

ICC is the world business organization, representing enterprises from all sectors in every part of the world. It promotes cross-border trade and investment and the multilateral trading system, and helps business meet the challenges and opportunities of globalization. Business leaders and experts drawn from ICC’s global membership establish the business stance on broad issues of trade and investment policy as well as on vital technical subjects. ICC enjoys a close working relationship with the United Nations and other intergovernmental organizations, including the World Trade Organization and the G20. ICC was founded in 1919. Today it groups hundreds of thousands of member companies and associations from 120 countries. For more information please visit: www.iccwbo.org

About USCIB

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.  With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.  More information is available at www.uscib.org.

ICC’s codescentre.com website

More on USCIB’s Marketing and Advertising Committee

ICC Unveils New Rules of Arbitration

Published on September 14, 2011

Arbitration and ADR Rules

North American launch event next week in New York

New York, N.Y., September 14, 2011 – The International Chamber of Commerce (ICC) has launched a much-anticipated revised version of its Rules of arbitration, with the aim of better serving the existing and future needs of businesses and governments engaged in international commerce and investment, according to the United States Council for International Business (USCIB), ICC’s American national committee.

The new Rules, which will come into force on January 1, 2012, take into account current requirements and developments in arbitration practice and procedure, as well as developments in information technology, since they were last revised in 1998.  They will be the subject of a two-day conference next week in New York, organized by the ICC International Court of Arbitration and USCIB.

Additions to the Rules include provisions to address disputes involving multiple contracts and parties; updated case management procedures; the appointment of an emergency arbitrator to order urgent measures; and changes to facilitate the handling of disputes arising under investment treaties and free trade agreements.  Other amendments have also been made to ensure that the arbitral process is conducted in an expeditious and cost-effective manner.

In response to growing demand for a more holistic approach to dispute resolution techniques, the new Rules are published in a booklet that also includes the ICC ADR Rules, which provide for mediation and other forms of amicable dispute resolution.  Both sets of Rules define a structured, institutional framework intended to ensure transparency, efficiency and fairness in the dispute resolution process while allowing parties to exercise their choice over many aspects of procedure.

“It is one of the principal aims of the International Court of Arbitration to ensure that its Rules promote efficiency in the arbitral process and that they reflect current practice, consistent with the overriding objective of doing justice between the parties,” said John Beechey, chairman of the ICC International Court of Arbitration.  “To the extent that it was thought necessary to do so, new measures and procedures have been introduced, such that the 2012 Rules of Arbitration respond to today’s business needs while remaining faithful to the ethos, and retaining the essential features, of ICC Arbitration.”

A highly anticipated launch conference, to be held in New York on September 19 and 20, will provide participants with a comprehensive overview of the changes to the Rules and a valuable chance to have direct interaction with several drafting group experts.  Conference information and registration is available at www.iccnorthamerica.org.

“This conference will unveil and explain the changes made to the ICC Rules, and will be the first opportunity for practitioners to acquire a comprehensive overview of the changes made,” according to Josefa Sicard-Mirabal, director of the ICC International Court of Arbitration’s North American office in New York.  “Participants will have the rare opportunity to learn from practitioners who participated actively in the rules revision process in preparation for the entry into force of the new ICC Rules on January 1, 2012.”

An earlier sold-out launch conference took place in Paris on September 12.  Other launch events are scheduled for Hong Kong (October 10), Singapore (October 12), Dubai (October 31), and Miami (November 6).  The Miami event, which will bring arbitration experts, legal practitioners and business executives from throughout Latin America, is also being co-organized by the ICC International Court of Arbitration and USCIB.

The revision process began in 2008 and was undertaken by a small drafting committee of up to 20 members, supported by a wider task force of 202 members and a consultation process with ICC national committees around the world and the ICC Commission on Arbitration.

“A great many dispute resolution specialists and corporate users from different legal traditions, cultures and professions had an opportunity to comment on the drafts, make suggestions and record their views,” said Jason Fry, secretary general of the ICC International Court of Arbitration.  “With this revision of the rules we have tried, in particular, to listen to the users of international arbitration, whether they come from business or government.  Many of the new provisions in the rules have been shaped with their input.”

Peter Wolrich, chairman of the ICC Commission on Arbitration and managing partner with the French law firm Mallet-Prevost, Colt & Mosle, said: “The International Court of Arbitration is at the cutting edge of change, continuously working to promote greater efficiency through the innovative design of new tools and procedures. The new Rules meet the growing complexity of today’s business transactions, the needs surrounding disputes involving states, and the demand for greater speed and cost-efficiency.”

The Rules are available in several languages and are intended for use by parties in any part of the world in proceedings conducted in any language and subject to any rules of law.  To download a free copy of the ICC Rules of Arbitration, please visit www.iccwbo.org/ICCDRSRules.  To register for any of the upcoming launch conferences or training sessions, visit www.iccwbo.org/events.

ICC is not only a trusted provider of arbitration but also of other dispute resolution services. The launch of the new Rules coincides with the launch of the ICC International Center for ADR, previously informally known as the ICC “green services.”  The Center oversees ICC Amicable Dispute Resolution, Expertise, Dispute Boards and DOCDEX (Documentary Instruments Dispute Resolution Expertise), helping to secure settlements efficiently with minimal loss of time and resources.

About ICC

The International Chamber of Commerce is the largest, most representative business organization in the world. Its hundreds of thousands of member companies in over 120 countries have interests spanning every sector of private enterprise.  A world network of national committees keeps the ICC International Secretariat in Paris informed about national and regional business priorities. More than 2,000 experts drawn from ICC’s member companies feed their knowledge and experience into crafting the ICC stance on specific business issues.  The United Nations, the World Trade Organization, the G20 and many other intergovernmental bodies, both international and regional, are kept in touch with the views of international business through ICC.  For more information please visit www.iccwbo.org.

About USCIB

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.  With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.  More information is available at www.uscib.org.

ICC International Court of Arbitration website

More on USCIB’s Arbitration Committee

Donnelly Joins USCIB as Vice President of Investment and Financial Services

Published on September 7, 2011
Shaun Donnelly
Shaun Donnelly

New York, N.Y., September 7, 2011 – Shaun Donnelly, a career diplomat who has held several senior executive branch posts, has joined the United States Council for International Business (USCIB), a pro-trade group representing America’s top global companies, as vice president for investment and financial services.

“Shaun Donnelly comes to USCIB at a critical time for investment policy around the world,” said USCIB President and CEO Peter M. Robinson.  “America’s future prosperity depends on opening up new markets for investment, trade and technological know-how.  Shaun’s wealth of experience at the State Department, USTR and in the Washington business community, and his top-notch reputation in commercial diplomacy, will ensure that USCIB continues to play a leadership role in crafting sensible policies that ensure fair competition and a level playing field, both at home and around the world.”

Founded in 1945, USCIB works to advance U.S. industry positions globally through a unique network of overseas business groups and official standing in a number of intergovernmental bodies, including the OECD and the International Labor Organization.  It has been at the forefront of efforts to foster investment-friendly policies in the United States and other countries, and its policy advocacy activities touch on many aspects of multinational business practice and regulation.

Mr. Donnelly will work out of USCIB’s Washington, D.C. office, reporting to Senior Vice President Rob Mulligan.  He brings to USCIB over 30 years’ experience with the U.S. Department of State in a wide range of roles including: principal deputy assistant secretary for economic and business affairs; U.S. ambassador to Sri Lanka; deputy assistant secretary for international trade; deputy chief of mission at the U.S. embassy in Tunisia; and a detail as assistant U.S. trade representative for Europe and the Middle East.  After retiring from the State Department in 2008, Mr. Donnelly held positions with the National Association of Manufacturers and the U.S. Chamber of Commerce.  He holds a master’s degree from Northwestern University and a B.A. from Lawrence University.

Mr. Donnelly succeeds Stephen Canner, a former Treasury Department official who will remain affiliated with USCIB as a senior advisor.  “We are very grateful for Steve Canner’s energetic service with USCIB these past 16 years, and we are glad we will continue to benefit from his expertise,” said Mr. Robinson.

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.  With a unique global network encompassing the International Chamber of Commerce, the International Organization of Employers and the Business and Industry Advisory Committee to the OECD, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org

Contact:

Jonathan Huneke, USCIB

(212) 703-5043 or jhuneke@uscib.org

More on USCIB’s Trade and Investment Committee

More on USCIB’s Financial Services Committee

Industry Wants Re-evaluation of Foreign Trade Zones Changes

Published on August 11, 2011
Foreign trade zones provide special customs procedures to U.S. plants engaged in international trade-related activities.
Foreign trade zones provide special customs procedures to U.S. plants engaged in international trade-related activities.

New York, N.Y., August 31, 2011 – American exporters, importers and multinational companies are urging a U.S. government panel to reconsider proposed rules changes they say would make it harder to do business through foreign trade zones in the United States, according to the United States Council for International Business (USCIB), which represents America’s top global companies and signed the appeal along with several other groups.

The business groups have asked the Foreign Trade Zones Board (FTZB), an interagency body led by the Department of Commerce, to re-open for comment a portion of proposed rules change, put forward in December 2010, that would impose more costly and burdensome treatment of goods subject to antidumping duties or countervailing duties that move through such zones.

“This policy change runs counter to the Obama administration’s National Export Policy, which aims to double U.S. exports within five years,” said USCIB President and CEO Peter M. Robinson.  “Moreover, it would force many companies to shift production from U.S. foreign trade zones to manufacturing centers overseas in order to remain competitive, thus depriving our country of valuable export-oriented jobs.”

The existing policy allows foreign trade zone users to import goods that would normally be subject to such duties, then manufacture and re-export finished goods without paying duties, so long as the finished products are not sold in the United States.  The new proposal would make such duty-free importation significantly more difficult by requiring a de facto trade remedy proceeding to determine whether the duty-free admission of these goods is in the public interest.

Mr. Robinson said industry wants the FTZB to maintain its existing policy of allowing privileged foreign-status merchandise to be exported without the payment of taxes and duties.  “The existing policy aims to prevent foreign trade zones from being used to circumvent antidumping and countervailing duties orders,” he said.  “The proposed regulation disregards the fact that such orders only apply to goods that enter for consumption in the United States, not those to be exported.”

The other groups joining USCIB in the appeal were the American Association of Exporters and Importers, American Institute for International Steel, Consuming Industries Trade Action Coalition, Emergency Committee for American Trade and National Association of Foreign Trade Zones.

About USCIB

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.  With a unique global network encompassing leading international business organizations, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.  More information is available at www.uscib.org.

Contact: Jonathan Huneke, USCIB
(212) 703-5043, jhuneke@uscib.org

Business letter to U.S. Foreign Trade Zone Board

More on USCIB’s Customs and Trade Facilitation Committee

More on USCIB’s Trade and Investment Committee