Trade Services Archives

USCIB Members Engage With Customs Commissioner

Published on March 30, 2011
Customs and Border Protection officials meet with USCIB. From right: CBP Commissioner Alan Bersin, Assisant Commissioner for Trade Al Gina and Director of Trade Relations Maria Luisa O’Connell. (Photo: CBP)
Customs and Border Protection officials meet with USCIB. From right: CBP Commissioner Alan Bersin, Assisant Commissioner for Trade Al Gina and Director of Trade Relations Maria Luisa O’Connell. (Photo: CBP)

On March 15, USCIB members and staff met with U.S. Customs and Border Protection (CBP) Commissioner Alan Bersin and his senior staff as part of Commissioner Bersin’s Trade Day Agenda, to share USCIB’s priority recommendations for CBP.  USCIB was represented by Rob Mulligan, senior vice president for Washington, Cindy Duncan, senior vice president for Carnet operations, and Nasim Deylami, manager of customs and trade facilitation, plus member executives from Hanesbrands, Cisco, DHL Express, FedEx, Pfizer, the law firm of Sandler, Travis & Rosenberg, and the U.S. Chamber of Commerce.

The group applauded Commissioner Bersin for his outreach to the business community, and took the opportunity to highlight areas in which CBP could further strengthen its relationship with U.S. business.  Among its key priorities, USCIB encouraged CBP to strengthen its trusted trade program, the Customs-Trade Partnership Against Terrorism (C-TPAT), to focus its core benefits on the pre-trade and post-trade events of the supply chain, and to develop substantial commercial benefits for Tier 2 and Tier 3 C-TPAT participants.

USCIB provided Commissioner Bersin a provisional list of eighteen benefits envisioned for C-TPAT participants, which Commissioner Bersin welcomed, thanking USCIB for providing concrete goals for CBP to achieve. (This draft list will be finalized shortly.  USCIB members may click here to download the draft.)  During the discussion on benefits, USCIB also urged CBP to ensure that benefits of mutual recognition programs are realized by business as well as customs authorities.   Another key priority for USCIB is the implementation of a commercially acceptable air cargo security program, in which CBP and the Transportation Security Administration work together to support the creation of a security regime that simultaneously accounts for operational realities faced by importers and air carriers while protecting national security.

Commissioner Bersin pledged to study the air cargo security pilot programs currently underway to determine how they are impacting importers, and assured USCIB that CBP would work with TSA and business to implement a practical program.

The USCIB group also had the opportunity to thank CBP for positive steps the agency has taken toward increasing the current values for de minimis and informal entry shipments, and for the strong relationship CBP has maintained with ATA Carnet.  Ms. Duncan thanked CBP for its appreciation of ATA Carnet training conducted by USCIB.  She requested that CBP encourage the U.S. to accede to the WCO Istanbul Convention on Temporary Admission and take a leadership position on efforts to craft an eCarnet in the World Customs Organization or other forums.

Other issues discussed at the meeting included funding for the Automated Commercial Environment (ACE) program, interdiction of counterfeit medicines and general enforcement of intellectual property rights.

Commissioner Bersin also took the opportunity to share his goal of achieving the enrollment of 2.5 million people in the Global Entry trusted traveler program in three years.  He encouraged USCIB to share this goal with its membership and promised to expedite the enrollment process for interested members.  USCIB has already taken action by inviting CBP to make a presentation on Global Entry at the USCIB/ICC Customs Committee Meeting on April 15 in Washington.

Staff contact: Kristin Isabelli

More on USCIB’s Customs and Trade Facilitation Committee

Smashing Pumpkins: With the help of an ATA Carnet, Bob Carbo brings his passion for catapulting gourds to Belgium

Published on March 30, 2011
Bob Carbo atop the Onager, his pumpkin catapult, at the European “punkin chunkin” championships in Belgium.
Bob Carbo atop the Onager, his pumpkin catapult, at the European “punkin chunkin” championships in Belgium.

The New York Philharmonic Orchestra, Tour de France bicycle racers, NBC Sports – even the rock band Smashing Pumpkins: all have used an ATA Carnet when shipping valuable equipment overseas. And so has Bob Carbo, who, as it happens, knows a thing or two about smashing pumpkins himself.

Carbo used a Carnet, a document that speeds equipment and other goods through customs, when he shipped his pumpkin catapult to a “punkin chunkin” contest in Belgium last summer. The organizers wanted an American team, and Carbo accepted the invitation because it was his first opportunity to show off his skills outside the United States.

Punkin chunkers, as they call themselves, use catapults to shoot pumpkins high and far, much as medieval armies built them as weapons for hurling projectiles over the walls of enemy forts and castle. Carbo started competing 15 years ago after reading a newspaper announcement about a  punkin chunkin contest. He went, he saw, and he was hooked.

He built his own catapult, using wood, steel and rope, modeled after an ancient Roman type that he discovered during his research. “It was very powerful, especially for its size, and somewhat portable,” Carbo explained.

“Several references to this catapult said it was a Mangonel [a type of catapult often used in medieval sieges], but it was often referred to as an ‘Onager,’ which means wild ass, because it reminded them of these animals which were known for their fierce kick, often causing stones to be hurled.  As soon as I read this, I knew this was what I would name my catapult.  Just too cool a name to turn down.”

Carbo, who when he’s not hurling pumpkins is a psychological services coordinator with the North Carolina Department of Corrections, uses the name Onager for himself in punkin chunkin competitions. He dresses for the events in full knightly regalia, complete with helmet and chain mail suit.   The 11-foot high catapult rests on a trailer that Carbo tows with his pick-up truck.

The highlight of the year for pumpkin hurlers is the World Punkin Chunkin Championship, held in Delaware each fall. Last year it drew 110 teams. Carbo placed third, with a personal best of 2,196 feet.

Not out of his gourd: Carbo dresses in medieval regalia when competing.
Not out of his gourd: Carbo dresses in medieval regalia when competing.

But getting the 3-ton machine to Europe presented a different kind of challenge. “I had never shipped anything like this before, so it was all new,” said Carbo, whose smart business decisions show that he’s definitely not out of his gourd.  He found a freight forwarder called Ship Overseas that booked Onager on a ship sailing from Baltimore to the port of Zeebrugge in Belgium.

Jack Friedman, president of Ship Overseas, suggested that he look into getting a Carnet. “I thought this was a good idea because it might help to get through Customs. We thought they might raise some questions because the catapult’s a medieval weapon,” Carbo laughed. “The other big thing was that we didn’t have to pay any taxes or duties.”

Carnets are merchandise passports that enable users to avoid extensive customs procedures, payment of duties and value-added taxes for the temporary importation of various types of goods. They normally cover products such as commercial samples, professional equipment, and goods for trade shows and exhibitions. They are also used for special items, such as precious works of art displayed in museum exhibitions, race horses, and satellites.

By using a Carnet, Carbo was able to avoid Belgium’s 10 percent customs duty and 19 percent value-added tax.

The tournament was held Sept. 5 in a small Belgian town called Bikschote. “They call it the European Punkin Chunkin Championship, but we were the only one of the 13 teams not from Belgium,” he said.

Team Carbo, consisting of Carbo, his wife, his brother, sister-in-law, and three other members, placed second. “We threw over 2,100 feet, which was enough to beat the previous record in Belgium, but then another team threw it more than 2,300 feet,” he said.

Carbo doesn’t have any plans for competing in other events outside the U.S., but says “I’d love to do it again. Maybe some other country will invite us.” And if it does, he plans to use a Carnet to help him get there.

“An international competition for catapulting pumpkins. Who’d a thunk it?” quipped Cynthia Duncan, who heads the Carnet service at the United States Council for International Business. The Council administers the carnet program in the United States in partnership with the International Chamber of Commerce and the World Customs Organization. Learn more about Carnets at www.merchandisepassport.org.

Carbo’s web site is www.onager.net. For information about this year’s World Punkin Chunkin Championship, go to www.punkinchunkin.com. It even has a countdown clock (down to the second) to the start of competition on Nov. 4.

Staff contact: Cynthia Duncan

More on the ATA Carnet Export Service

The Latest ICC Incoterms® 2010 Guide Offers Present-Day Trade Practices

Published on March 29, 2011

Order your copy now!

The new version of Incoterms rules accurately reflect present-day trade practices.
The new version of Incoterms rules accurately reflect present-day trade practices.

The International Chamber of Commerce (ICC), USCIB’s affiliate, has published the ICC Guide to Incoterms® 2010 to serve as a practical resource for users of these rules, which are applied by companies for countless business transactions worldwide.

The latest edition of the rules, set forth in ICC’s book Incoterms® 2010, came into effect in January 2011 and takes into account developments in global trade since the rules were last revised in 2000. While contracts for the sale of goods incorporating earlier versions of the Incoterms rules are still viable, it is suggested that users refer to Incoterms® 2010 for new transactions.

The United States Council for International Business (USCIB), ICC’s American national committee, has organized a series of training seminars throughout the United States to explain the changes to the Incoterms® 2010 rules.

ICC is the largest, most representative business organization in the world.  Its thousands of member companies in over 120 countries have interests spanning every sector of private enterprise.  The United States Council for International Business (USCIB), based in New York, serves as ICC’s American national committee.

The new version has been modified to ensure that the Incoterms rules clearly and accurately reflect present-day trade practices. The number of rules has been reduced from 13 to 11 and two new rules have been created: Delivered at Terminal (DAT) and Delivered at Place (DAP).

“The Guide supports Incoterms rules, which are the standard in international business rules-setting,” said USCIB President and CEO Peter M. Robinson. “It’s an effective tool that users can use to refer to Incoterms® 2010.”

ICC first published the Incoterms rules, short for “international commercial terms”, in 1936 to help traders avoid misunderstandings by defining the costs, risks, and responsibilities of both buyers and sellers in contracts for the sale of goods. They were a significant step in bringing legal certainty to business transactions, while simplifying the drafting of international and domestic contracts.

The Incoterms® 2010 rules have been updated to expand treatment of cargo security, which has been at the forefront of the transportation agenda for many countries since the terrorist attacks of 11 September 2001, as well as the increased use of electronic communications in business transactions.

“While globalization has made it easier to do business internationally, technological and political changes have also made the rules governing transactions more complex,” said Jan Ramberg, author of the Guide and renowned trade expert. “We consulted broadly with the global business community on these issues to create an easy reference guide that allows users to apply the right rules to their contracts of sale.”

The 216-page ICC Guide to Incoterms® 2010 is an essential reference for both first-time and experienced users of the rules, with practical guidance on the exchange of information, packaging goods, transport documents, as well as the transfers of risks and costs from one party to another.

Order both the ICC Guide to Incoterms® 2010 and Incoterms® 2010 from USCIB International Bookstore.

Incoterms® is a trademark of the International Chamber of Commerce.

Macao, China (MO)

Published on February 10, 2011

DISCLAIMER: USCIB makes every effort to keep information on this page up to date. Users are advised to consult with the local customs authorities of the country or territory in question to ensure accuracy and conformity with local laws. USCIB cannot be held liable for any incorrect or out-of-date information contained on this page.

 

Macao_Flag

MACAO, CHINA (MO)

Accepts ATA Carnets for:

  • Exhibitions and Fairs
  • Commercial Samples
  • Professional Equipment

Visit MACAO Customs at: https://www.customs.gov.mo/cn/index.html

Macao Chamber of Commerce

Rua de Xangai 175, Edif. ACM, 5°
Macao
Tel: +853.2857.6833
Fax: +853.2859.4513
E-mail: ata@wtc-macau.com
WWW Site: www.acm.org.mo

Special Considerations

We are unaware of specific requirements of Carnet use in Macao.

Trade Shows

Macau Grand Prix

UAE Joins Worldwide Network for Duty-Free Imports

Published on January 13, 2011
Dubai’s modern skyline. The city plays host to some 200 trade shows each year.
Dubai’s modern skyline. The city plays host to some 200 trade shows each year.

New York, N.Y., January 13, 2011 – The United Arab Emirates (UAE) has confirmed that it expects to start accepting and issuing ATA Carnets early this year, making the federation the 69th country to join the worldwide system for duty-free, tax-free temporary imports, according to the United States Council for International Business (USCIB), which administers and guarantees Carnets in the United States.

The UAE will begin by accepting goods for trade shows and fairs, according to Cynthia Duncan, USCIB’s senior vice president for Carnet operations.  “It is an important step in linking UAE businesses to the wider global marketplace,” she said.  “With some 200 trade shows annually in Dubai, the UAE’s acceptance of Carnets should be a boon for U.S. companies from all industries.”

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 the UAE’s decision, Moldova and Macao were the latest territories to join the worldwide system, which is overseen by the International Chamber of Commerce (ICC) and the World Customs Organization.

USCIB said the announcement was made last month by the director general of the Dubai Chamber of Commerce, Hamad Buamim, and his counterpart from the UAE’s foreign trade ministry, Abdullah Al-Saleh.  The Dubai Chamber will assume responsibility for issuing and guaranteeing Carnets throughout the UAE.

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.  Ms. Duncan said she expected overall two-way trade to grow and diversify further in view of the decision to accept merchandise passports.

USCIB’s Duncan named vice chair of global Carnet administrative body

Separately, ICC announced that Ms. Duncan has been elected  deputy chair of the World ATA Carnet Council (WATAC), which oversees the worldwide operations of the ATA Carnet chain.  ICC said she would support WATAC’s chairman, Peter Bishop deputy chief executive of the London Chamber of Commerce, in coordinating the activities of the council and its administrative committee.  Mr. Bishop was re-elected WATAC’s chairman in June 2010 to complete a final three-year term.

Ms. Duncan has headed USCIB’s Carnet operations since 2000 and sits on the WATAC Executive Board.  She also serves on the steering committee of World Trade Week NYC and on the New York District Export Council.  She is a board member of the Organization of Women in International Trade/New York and previously served in a number of other capacities with USCIB, including as vice president for membership.

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.

Contact:

Cynthia Duncan, SVP Carnet Operations, USCIB
(212) 703-5079 or cduncan@uscib.org

More on USCIB’s ATA Carnet Export Service

Incoterms®2010: Avoiding the “Wet Blanket” Syndrome

Published on November 23, 2010

Users discover tricks of the trade at USCIB seminars

By Bill Armbruster

Incoterms® rules expert Frank Reynolds leads a USCIB seminar in Charleston, South Carolina. New changes to these influential trade rules will have a major impact on company operations.
Incoterms® rules expert Frank Reynolds leads a USCIB seminar in Charleston, South Carolina. New changes to these influential trade rules will have a major impact on company operations.

The rules of international trade have changed – and even some of the old rules no longer apply the way they used to.  Tom Dirmyer, export-import manager for Emerald Performance Materials, found that out when he attended a recent seminar on Incoterms® 2010, the latest update to rules first introduced by the International Chamber of Commerce (ICC) in the 1930s.

The seminar was led by Frank Reynolds, the U.S.  representative on the ICC committee that revised the rules.

“Frank threw a wet blanket over some of our practices,” Mr. Dirmyer said, by casting doubt on the use of CFR (Cost and Freight) and CIF (Cost, Insurance and Freight) for container shipments.

Mr. Reynolds explained that those terms apply only to port-to-port transport and do not cover multimodal transport, such as vessel and truck or train.  “We have to take a long hard look at that because we use those two terms frequently,” according to Mr. Dirmyer.

CFR and CIF are two Incoterms® rules held over from the previous version, Incoterms® 2000.  ICC, a USCIB affiliate, simplified the rules by dropping four arcane terms and replacing them with two new ones that are more appropriate for 21st-century commerce.  That reduced the total number of Incoterms® rules from 13 to 11.

The Incoterms® rules are critical because they clarify the responsibilities, costs, and the risks of buyers and sellers in the delivery of goods.  Under the Incoterms® rules, “delivery” is the point at which the seller hands over responsibility for the goods to the buyer.  It does not necessarily refer to the arrival of the goods at a specific physical destination.

Failure to understand the Incoterms® rules can be costly.  For example, if you are the buyer and incorrectly assume that the seller is responsible for insurance, you could be stuck with a big loss if the goods are damaged or lost at sea.  If you had settled on a more favorable term in your negotiations with your trading partner, you could have averted a major loss.  The same goes if there’s a misunderstanding about transportation costs or the payment of import duties.  You could be stuck with a big bill.

Now applicable to domestic commerce

Despite the changes, the fundamental considerations remain the same.

“Companies still have to decide what works for their business,” said Stanley Pfrang, export development manager for the Wisconsin Department of Commerce, who attended a seminar Mr. Reynolds conducted in Brookfield, Wisconsin.  “Do they need more control in the transaction? How much can they accept? Are particular terms needed to meet or beat the competition? How comfortable are they doing business with a particular customer?”

Mr. Pfrang, who works one-on-one with Wisconsin exporters, said, “We always discuss the Incoterms®rules as a way to help structure the deal and make sure that costs and risks are recognized.”

The new Incoterms® rules were announced on September 16 and take effect on January 1, 2011.  Companies may continue to use the old rules afterwards, and Mr. Reynolds suggested companies should do that until both they and their partners fully understand their responsibilities under the new rules.

For many companies, the biggest decision is which of two new terms they should adopt in place of Delivered Duty Unpaid.  DDU was very popular but could be confusing because it did not apply to goods that were resold domestically after the original buyer paid the import duties.

The new terms are DAT (Delivered at Terminal) and DAP (Delivered at Place).  Both may be used for any mode or modes of transport, with the signal difference being that DAT provides for delivery of the goods unloaded by the seller, whereas DAP provides for delivery of the goods ready for unloading by the buyer.

According to Kathy Bushart, a compliance specialist with Eastman Kodak Co., the new terms are a lot clearer.  “DAP removes ambiguity,” she said.

Kodak will most likely use DAP, she said, although some countries may require use of DAT or CPT (Carriage Paid to) for imported goods.  For inbound and domestic trade, Kodak will most likely continue to use FCA (Free Carrier) for air, ground and ocean shipments that are less than a full container, and FOB (Free on Board) for full ocean containers, so it can control the transportation chain, Ms. Bushart said.

In cases where it used DDU, Emerald will probably replace it with CIP, but with additional conditions regarding transportation to destination and which party will be responsible for charges on the receiving end, according to Mr. Dirmyer.  “Every time we use a new term or a different interpretation of an existing term it will be a learning experience for the person at the other end,” he noted.

Fewer rules for companies to learn

Beata Spuhler, a trade compliance attorney with the law firm Drinker Biddle & Reath LLP, said the Incoterms®2010 rules will make things simpler for the trade community because there are fewer rules for companies to learn and to distinguish from each other.

Ms. Spuhler suggested that this is a good time for companies to revise all of their contracts and purchase orders.  That will ensure that they use the terms that “truly reflect what the parties expect from the transaction, including when the risk of loss will pass from the seller to the buyer, who handles carriage and exactly from what point to what point,” said Ms. Spuhler, who attended a seminar Mr. Reynolds gave in Chicago.

USCIB and Mr. Reynolds spearheaded the drive for revising the Incoterms®2000 rules for several reasons.  The first was that the deletion of the old shipment and delivery terms from the Uniform Commercial Code in 2004 made the Incoterms® rules an attractive replacement.  Secondly, the old Incoterms® rules did not include a duty-neutral term for domestic sales of pre-imported goods, added Mr. Reynolds, the author of several books on trade, including Incoterms® for Americans.  A third reason for the revisions was a potentially vague area in CPT and CIP.

The new rules clarify that issue by including warnings that the parties should agree to both the delivery point and the place to which the seller pays transportation, according to Mr. Reynolds.  He said people should become familiar with all 11 Incoterms® rules, but that most companies will probably use just four or five.

The new rules are spelled out in an ICC book entitled Incoterms® 2010.   It may be ordered from ICC Books USA.   Attendees at Mr.  Reynolds’s seminars receive a copy of the book along with other materials, including Incoterms® for Americans, an updated edition of which will be available for purchase from ICC Books USA in early 2011.

The seminars will continue through mid-March.   A partial schedule is available by clicking here.   It will be updated as new seminars are added.

Bill Armbruster is a freelance journalist specializing in international trade and shipping.  He is the former editor of Shipping Digest.

Incoterms® is a registered trademark of the International Chamber of Commerce.

More on USCIB’s Incoterms® 2010 Seminars

Order Incoterms® 2010 from ICC Books USA

Macao, China to Accept Duty-Free Imports

Published on November 1, 2010

Macao Flag

New York, N.Y., November 1st, 2010 – Macao will become the 68th country to join the ATA Carnet system, which permits the temporary importation of various types of goods without duties or taxes. Known as “merchandise passports,” ATA Carnets are an increasingly important tool for businesses engaged in international commerce.

Macao is a Special Administrative Region (SAR) of the People’s Republic of China. Macao does share many of the business characteristics of Hong Kong. It is an open economy, free port, the political environment is stable and the economic outlook is positive. Commonly known for its casinos and gaming, Macao does import a fair amount of aircraft, electrical machinery, toys and sports equipment. Macao will play host to the 57th Grand Prix, November 18 to 21, for which many Carnets will be used.

“We are delighted about Macao joining our growing family. Macao makes one more destination for American businesses to expand and grow internationally” said Cynthia Duncan, USCIB’s senior vice president for Carnet operations.

ATA Carnets are internationally recognized customs documents for temporary duty-free, tax-free import of commercial samples, professional equipment and goods displayed at trade shows.  They are essential for companies seeking to reduce costs and speed global operations.  (The acronym “ATA” is a combination of the French and English abbreviations for “temporary admission.”)

Macao will waive import duties on professional equipment, goods for exhibitions and fairs, and commercial samples.

Carnets are honored in scores of customs territories and can be used for multiple trips during a one-year period.  The global ATA Carnet system is overseen by the Paris-based International Chamber of Commerce.  USCIB administers the Carnet system in the United States, working with service providers Roanoke Trade Services, Inc., and the Corporation for International Business.

In 2009, over 150,000 Carnets were issued worldwide, covering goods valued at almost 15 billion dollars.  Prior to Macao joining, Moldova was the most recent addition to the family of nations accepting ATA Carnets, having joined the system on July 1.

USCIB promotes an open system of world commerce.  As American affiliate of the leading international business and employers organizations, including ICC, it provides business views to policy makers and regulatory authorities worldwide.  USCIB facilitates international trade by issuing and guaranteeing ATA Carnets, by promoting international cooperation in such areas as customs policies and commercial dispute resolution, and through its ICC Books USA unit, which publishes a variety of publications on to international trade and investment.

Contact:
Cynthia Duncan, SVP Carnet Operations, USCIB
(212) 703-5079 or cduncan@uscib.org

More on USCIB’s ATA Carnet Export Service

Macao Chamber of Commerce website

External Resources for ATA Carnets

Published on September 9, 2010

US Commercial Service (US Dept. of Commerce)

The U.S. Commercial Service (CS), part of the U.S. Department of Commerce’s International Trade Administration, offers companies a full range of expertise in international trade. Companies can find assistance locally in more than 100 U.S. Commercial Service offices nationwide and in more than 70 international office

 

CBP Ports

Locate a Port of Entry in the U.S.

 

Bureau of Industry and Security (US Dept of Commerce), Export/Import Requirements

A document published by the Bureau of Idustry and Security. It offers guidance in Export Administration Regulations (EAR) for people who are new to exporting and export controls.

 

 

 

ATA Carnet Promotion

Published on September 9, 2010

Get Back to Global Business – United States Council for International Business (USCIB) is partnering with Chambers of Commerce in the United States to offer a special ATA Carnet rebate program to help businesses recover and get back to global business. ATA Carnet, also known as the “Merchandise Passport” or “Passport for Goods”, is a powerful tool for companies doing business internationally because it allows the temporary importation of goods for up to one year in multiple countries, without having to pay import duties or taxes.

USCIB manages the ATA Carnet system in the U.S., and the International Chamber of Commerce/World Chamber Federation (ICC/WCF) manages the Worldwide system for the eighty plus countries/territories that are part of the system.

If you are a chamber or association in the U.S., please contact us at atacarnet@uscib.org and we will provide further details regarding the program.