Import

As U.S. Imports from China Intensify so does CBP Enforcement

Co-authored by Michael De Biase. 

With the concentration of US imports from China increasing in parallel with intellectual property rights seizures, companies rely heavily on the government, specifically on US Customs and Border Protection (“CBP”) to help protect and enforce their intellectual property rights (“IPR”).

According to Global Sources, a leading business-to-business media company and a primary facilitator of trade with Greater China, “US imports from China [are] more concentrated than ever“.

Data from the U.S. Department of Commerce establishes that importation into the U.S. is a concentrated field, with the top 500 U.S. importers – 0.4 % of all importers – comprising roughly 68% of all imports by value in 2010. Imports from China, although somewhat less concentrated, are still dominated by larger enterprises, as companies with more than 500 employees – 4% of all importers from China – account for 60% of all imports from China. As concentration increases, the opportunity to trade in quantities that take advantage of China’s economies of scale decrease; thus, heightened concentration is not a good thing for Chinese manufacturers.

While the import concentration from China is growing, CBP is reporting a record number of IPR seizures. From 2010-2011 alone, IPR seizures increase by 24%, and have nearly doubled since 2009. Considering that China is the number one source company of imports, it should come as no surprise that it also accounts for the largest number of IPR seizures, with 62% of […]

Don’t Let Your Bioterrorism Act Registration Lapse

has for the first time, specifically put the onus on importers to have a program to verify that the food products they are bringing into this country are safe. The idea behind FSMA is to change FDA regulatory enforcement and focus to more of a preventative approach, instead of reactionary. These new requirements include risk-based controls, foreign supplier verification program, certification, and audits. A brief overview of the requirements may be found here.

I’ve summarized the requirements relevant to your Bioterrorism Act Registration below, so you can be sure your registration doesn’t lapse.

New Biennial Registration Requirements
FSMA amended the Food, Drug & Cosmetic Act (FD&C Act) Section 415 to provide for biennial registration updates. Facilities which are required to register will have to re-register every 2 years, during the period beginning on October 1 and ending on December 31 in even numbered years. This will first occur in October-December 2012.

Note that even facilities which are already registered with the FDA are still required to renew their registrations during the October 1 – December 2012 registration renewal period.

U.S. Agent
FDA requires that foreign facilities have a U.S. agent. The U.S. agent must:

  1. live or maintain a place of business in the U.S. and
  2. be physically present in the U.S.

The U.S. Agent is also responsible for the payment of “reinspection fees” of foreign facilities and failure to comply with recall orders.  Reinspections are follow-up inspections conducted by the FDA after a previous inspection by the FDA where the FDA identified non-compliance issues materially related to food […]

By |2022-07-06T13:47:59-04:00August 29, 2012|Food, FSMA, Import|0 Comments

China Sourcing Fair – How to Solve U.S. Customs Issues When Importing From China

 The rewards of sourcing from China are well known, but succeeding at it is far from simple. With a sluggish global economy resulting in unpredictable market changes, cost-effective sourcing is important.

To help you build or sharpen your China sourcing strategies, I am thrilled to be part of a new series of “How to Source from China” conferences at the China Sourcing Fair (July 10-12, Miami)!

The conferences are led by industry experts, and reveal real-life sourcing risks in China. We will share actionable knowledge at every step as the project moves from concept to delivery, and the conference will offer in-depth insights and practical tips on do’s and don’ts of China sourcing. Whether you’re a beginner or veteran buying professional, the FREE conference program is your chance to learn how to source efficiently and effectively from the “world’s factory”.

Register now to enhance your importing skills and knowledge today! Conference seats are limited and are on a first-come, first-served basis.

I will be speaking on “How to Solve U.S. Customs Issues When Importing From China”.

Intellectual property rights (IPRs) are a priority trade initiative for U.S. Customs. Most confiscated China imports violated US Customs’ IPR laws, which should serve as a reminder when buying from China.

In my seminar, we will look at ways of preventing and dealing with these issues. In particular, we will cover:

  • Trademark / copyright violations (What U.S. Customs looks for)
  • Top […]

Free Trade Zones Expanding in Miami-Dade County

PortMiami wants free trade zones (FTZ’s) throughout Miami-Dade county.

As we know, PortMiami is currently dredging to 50 feet in pursuit of the post Panamax ships, and wants to prepare for the massive amounts of cargo PortMiami looks forward to receiving as a result of the dredging project.  In preparation, PortMiami is looking to the South Florida business community to get engaged and prepared as well.

Under PortMiami’s plan, any business north of Southwest Eighth Street could apply for free-trade status (under FTZ 281) and be exempt from import duties (for example, for cargo heading abroad). There are many benefits to an FTZ, ultimately resulting in duty savings.

The Miami Herald reported that PortMiami’s application is expected to receive approval by the summer (UPDATE – PortMiami has officially been approved and operates FTZ 281), which will allow local businesses the opportunity to apply for foreign-trade zone status, enabling them to utilize their FTZ for duty savings, as goods shipped into a FTZ that are destined for export are exempt from paying CBP duties.  Many companies use South Florida as a transhipment hub, purchasing goods from China, using South Florida as a distribution center, and then selling those goods to customers in South America.  Using a FTZ saves the importer from having to pay customs duties on imports for exports.

The Beacon Council – Miami-Dade County’s official economic development partnership – has coined trade/logistics and aviation as two of the ‘seven pillars’ of Miami-Dade County in the One Community, One Goal […]

TSA 100% Screening – The Air Cargo Advance Screening Pilot Takes Off

On May 16, 2012, the Transportation Security Administration [TSA] announced – starting December 3, 2012, all international passenger air carriers destined for the United States will be subject to 100% cargo screening. TSA’s website advises: “[g]lobal shippers and U.S. importers should contact their logistics partners to determine if these measures may have any impact on their supply chain.” This process requires enhanced screening for shipments designated as higher risk, while lower risk shipments will undergo other physical screening protocols.

How Can Your Supply Chain Remain Streamlined?
There is an Air Cargo Advance Screening [ACAS] pilot strategic plan underway to keep global supply chains efficient. ACAS is a voluntary initiative allowing carriers, forwarders and shippers to submit electronic data about cargo before it is shipped.  TSA and CBP will have a fast and efficient new ways to screen vast amounts of cargo and zero-in more quickly on which specific items require further scrutiny, and which cargo items are cleared to get in the air faster.

Recently, at the AirCargo 2012 conference in Miami, CBP Deputy Commissioner Thomas Winkowski stated “[t]his is our new roadmap. . .this will lead everyone in this room toward a better, more secure way of moving cargo by air. . . To date, we have successfully processed 14 million transactions and proved that the system works.” Of those 14 million transactions, less than one percent required further scrutiny. Winkowski stated “ACAS is a game changer.”

For more information regarding how these changes will affect your company’s global […]

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