Past Events








     
Read below for a complete recap of last year’s Trade Briefing!
 
CONECT's 2008 Federal Policy Briefing in Washington

CONECT's 2008 Federal Policy Briefing in Washington, DC was perhaps our most successful yet.  Our team of about 20 individuals flew in from various points in New England, for two intensive days of discussions on key issues with some of the most influential insiders on international trade policy. Our CONECT members on this Briefing included importers, exporters, port authorities, customs brokers and freight forwarders, and manufacturers.
 
CONECT's Washington, DC-based representatives planned a two day event for our members that covered every current, key trade issue in a format designed to insure we received both the very latest information affecting our businesses along with an opportunity to effect change where it matters most.
 
Following extensive briefings, our CONECT delegation carried our message to Capitol Hill.
 
These private meetings with members of Congress and their staff to discuss key trade issues delivered immediate results to CONECT companies.  In each meeting, we focused on 3 or 4 key issues on which we wanted to have a significant impact:  10+2, Lacey Act, GSP renewal and full release of the HMT with specific benefit to dredging in Boston Harbor.  During these sessions with 11 members of Congress throughout Wednesday afternoon, it quickly became clear that very few members and their staff were aware of the full ramifications of the Lacey Act Amendment.  Almost all were immediately willing to intercede on our behalf.  Our timing could not have been better.  CONECT is certainly a leader on this issue and we hope our efforts to educate folks on the Hill and drive home the negative impact of the amendment on our members will deliver results in the form of a postponement or change in the final regulation.  While we met more resistance on the 10+2 issue, we did have success in asking for support for GSP renewal and release of funds for dredging of Boston Harbor. 
 
In addition to our significant impact on the Lacey Act issue, we left the New England Congressional delegation with the clear message that there are folks in our region who benefit from international trade and from open consultation with the trade community prior to the implementation of new regulations.
 
Here's a brief recap of our two days in DC:
 
 
Here what CONECT Members had to say:

"This experience went beyond my expectations.  You have awarded CONECT participants a birds eye few of how Washington works and most importantly given us an opportunity to have an impact the proceedings and future legislative actions.   The knowledge gained is extremely valuable."
Michelle Darling
BJ's Wholesale Club, Inc.
 
"You put us in front of the "right" people for every session, giving us the best possible opportunity to foster change where it matters most.  Through our various discussions I also found the perspective of fellow CONECT members to be very valuable in formulating/adjusting my own position on issues.  Looking forward to future events."
John Klinefelter, LCB, CCS
A.N. DERINGER
 
"As a person who has had the opportunity to attend several of these sessions I must admit that this was the most significant in terms of actually addressing an immediate problem that a large number of importers will be facing. The effort put forth to bring together the key individuals within CBP and congressional staff groups was critical in making all of these meetings so successful.   The fact that a piece of legislation having this enormous impact could pass with only a minimal amount of discussion is testimonial to the need for CONECT and all of us to maintain a constant vigilance for these issues as they percolate through the system."
Roland Shrull 
Middleton & Shrull
 
Day 1 - Briefing from the American Apparel & Footwear Association: 
The Association's VP spent one full hour updating CONECT's members about potential scenarios that could occur when quotas on China apparel expire at the end of this year.  We received a complete recap of the potential protectionist actions that a new Congress and Administration could take against China as well as a review of the current situation with self monitoring in Vietnam.  This was a terrific preparation for our meetings with members of Congress and for our businesses as we perform risk analysis for our businesses trading in apparel and footwear in 2009.  
 
Briefing from CONECT's Federal Government Affairs Counsel: 
Peter Friedmann and Ray Bucheger reviewed the more than 50 page briefing binder their staff had prepared for our members in advance of our meetings.  We received a short and very clear recap of each issue along with supporting background material and statistics.  The members discussed which issues most affected our businesses so that we could target issues for our meetings with members of Congress.

Briefing from CBP's Executive Director of 10+2 and CTPAT: 
Todd Owen and his lead staff for the 10+2 gave us a very detailed presentation regarding the current status of 10+2.  The general theme of this briefing revolved around CBP's attempt to balance trade facilitation with security.  Current efforts to comply with Congressional mandates for 100% cargo screening while successful in some applications are not practical for widespread use.  10+2 seems to be CBP's answer to that problem.  
 
During our briefing CBP indicated the following about 10+2:
  • The vast majority of the COAC's recommendations were adopted in full or in part in the final rule sent to OMB.
  • CBP intends to implement 10+2 with 60 days notice and 1 year of informed compliance.  In their eyes, this is, essentially, a 14 month phase in period.
  • CBP currently has no plans to expand 10+2 to other modes of transport.
  • There likely will be no major differences between the final rule and the data sets that are currently published on CBP's web site.
  • 10+2 is NOT a trade compliance program and compliance will likely be handled in a method similar to AMS/the 24 hour rule.
  • Transmission of the MBL will be optional, but the HBL that is transmitted must match to the manifest transmission.  This will be an issue in cases of multiple co-loads.
  • Postal codes must be reported for countries that use them.
  • Reporting the manufacturer or supplier is acceptable as long as the supplier is the company that supplied the finished goods.
  • Look for the definition of the importer of record in the CBP data sets.  It is still the party that caused the goods to be imported.
  • CBP is attempting to build CTPAT benefits into 10+2 and indicated that ISF would likely eliminate the need for CTPAT certified companies to transmit the entry prior to arrival at the first US port since the ISF will contain the importer's IRS number (the link for CTPAT benefits).
  • CBP has responded to the trade's request for more feedback in the 10+2 transmission and is working to generate email updates indicating whether there's a bill of lading match to manifest upon transmission, update messages regarding status of the filing, reminder notices to the filer that manifest matches still don't exist within certain time frames, etc.
  • Bonding provisions remain unclear although CBP indicated that they are amending current bond types and data sets indicate that a special ISF bond is required in the 10+2 filing if an importer does not hold a continuous bond.  A CONECT member attendee raised a concern about what happens if a bond type changes in between an ISF and the entry summary.  Importers are cautioned to monitor this carefully and to file continuous bond renewals and updates well in advance of the expiration date to insure no loss of coverage.
During our briefing CBP indicated the following about CTPAT and CSI:
  • The CSI program is operating successfully at several high risk origins, but widespread use is impractical.
  • Origin countries do, in some cases, like the CSI program as they are using imaging to confirm export cargo descriptions for export tax purposes.
  • CTPAT now has 9000 members
  • The US has mutual recognition of CTPAT-like programs with New Zealand, Jordon and Canada
  • The US can now share CTPAT data with Canada after validation.  Companies still need to apply separately for both programs, however.
  • US companies can now give CBP permission to share portions of their CTPAT security profile with Canada.  Portions only of the profile may also be shared if companies want to limit the data that is accessible to foreign governments.
  • CBP does not intend to open CTPAT to foreign manufacturers as it is a disincentive to foreign governments to develop their own security programs.  CBP prefers to operate in conjunction with other foreign governments to develop their own mutual recognition programs.
  • On January 1, 2009, CBP will open the CTPAT program to 3PL's.
Meeting with the Federal Maritime Commission:  
Professional staff of the Commissions' Bureau of Trade Analysis provided CONECT members with a terrific opportunity to discuss the service contract filing, amendment and enforcement regulations. In the current ocean shipping environment, service contract amendments, both unilateral by the carrier and negotiated by the carrier and shipper, are filed frequently. 
 
Briefing from the National Association of Manufacturers: 
This was a terrific session during which we received an insider's viewpoint on 10+2 from someone actively involved in petitioning OMB to direct CBP to implement 10+2 through a pilot program until all issues are worked through.  This Association's members feel that 10+2 is not based on solid businesses practices and no viable business would proceed with a program that asks folks to try to figure out how to implement a rule at such a high cost in both time and money.  This session was truly helpful in preparing us for our meetings with members of Congress.
 
Meeting with Counsel of the Senate Finance Committee: 
This was CONECT's first opportunity to communicate our concerns about the Lacey Act and 10+2 directly to folks in a position to help us.   We spent more than an hour advising the Senate Finance Committee about the specific flaws in both programs and made a significant impact, particularly with respect to the Lacey Act.  Concerns about lack of automation, about the cost of implementing so many new programs on the trade and the lack of balance between trade facilitation and security were well presented.
 
Dinner with the US - China Business Council: 
This is always one of the highlights of our time spent in DC.  During this gathering, the Vice President of the Council presented specific facts regarding the benefits of trade with China including significant increases this year in exports from New England to China.  We also received this insider's view on how a new administration will likely affect US/China trade policy and what the key issues are for 2009.  Again, this was terrific preparation in risk analysis for our own business and for our upcoming meetings with Members of Congress the next day.
 
Day 2 - Briefing from the Waterfront Coalition: 
This meeting could not have been more timely.  As we are in the midst of the Ports of LA and Long Beach implementing their new port user fees and concessionaire programs, we had a rare look from the inside of the issues from Robin Lanier of the Waterfront Coalition.  As efforts for an injunction have not been successful, this briefing helped frame the issues that we all must be prepared to deal with on the West Coast in the coming weeks including:
  • $70/FEU fee paid through a new version of PierPass (which is not yet ready for use).
  • All affected importers and service providers should insure they've filed a credit application through PierPass if they aren't currently registered there.
  • All cargo moving via truck for local dray or intermodal dray must now be "claimed" prior to the container leaving the terminal.
  • Expect some disruptions in service on October 1 if enough concessionaire agreements have not been approved.  Only truckers with approved agreements will be able to enter the terminal property.  
  • The LA and Long Beach programs are NOT the same.  Visit their web sites for more details and visit the Coalition for Responsible Transportation's web site to stay active on this issue.
  • The ATA has asked the courts to act quickly on their suit against the concessionaire program, but it is unlikely that anything will be resolved prior to the October 1 implementation date.
Briefing from the Chief Counsel of International Trade for the House Ways & Means Committee: 
Angela Ellard is an invaluable resource to CONECT.  She gave us a terrific update on all of the key issues currently facing our members such as GSP renewal, FTA's, new CBP regulations, etc.  This is always a key meeting prior to our afternoon on Capitol Hill.  She suggested a very simple message to the members of Congress:  "we're here because international trade creates jobs in New England.  Trade growth is important to us and we need smart regulation that balances with trade facilitation."  Angela also provided us with trade statistics for New England and information about the benefits of the Columbia Free Trade Agreement and CAFTA.
 
Briefing with the Director of Import Safety & Intra-Agency Requirements from CBP: 
This briefing made it clear to CONECT members that the Lacey Act Amendments have CBP as befuddled as the importing community.  During this meeting, CBP advised that they've received little clarification from USDA nor from Congress regarding the scope of this new requirement.  They are proposing alternatives to Congress and we should have further information regarding these meetings from CONECT's DC office in the coming days.  Here are some of the changes that CBP is proposing to Congress:
  • A phase in schedule that includes a period of outreach to the trade.  Some obvious products like wooden furniture and lumber would be immediately covered and other products would phase in under a schedule agreed upon by Congress and CBP. 
  • Using an old legacy Fish & Wildlife system so data can be electronically reported and no paper form would be necessary.  This would require reprogramming from both CBP and the trade that would take some time to finalize (CBP estimates 6-9 months on their side).
  • Currently the Act requires reporting of the genus, species, number, value and country of harvest of any wood or wood product.  CBP does not know if this is to included packaging material like retail boxes, hang tags, etc.  They estimate it would cover roughly 75% of the HTS.
  • CBP indicates that the Department of Justice will enforce this rule and not CBP so there is no document pertaining to the Lacey Act on CBP's A1A list.  CBP encourages companies, however, to maintain accurate records in the event of an audit by DOJ as they will likely ask the importer to track back component wood material to the source in a similar way to GSP claims.
CBP also briefly reviewed new Consumer Product Safety Commission regulations during this meeting.  CBP indicates that they will try to automate the new reporting requirements and will be looking at the specifics, including bonding requirements, in the coming weeks.  They also noted that they are adding CPSC to the ISA program to allow ISA importers more benefits including a national account manager from CPSC.
Briefing from the VP of International Trade at the National Retail Federation: 
This was a terrific briefing from the Senior Trade Counsel of the NRF, presenting virtually every major retailer in the US today.  Again, this was a terrific preparation for our Hill visits as he covered everything from the Lacey Act to potential protectionist measures against imported apparel in 2009 from the unique viewpoint our of members' customers.  His message was clear.  Our expectation from Congress in 2009 should be simple - "Do no harm".  The biggest challenge facing retailers from every industry segment is the same:  risk management.  Congress needs to do a better job of balancing security and trade facilitation.  Unplanned actions without consultation with the trade (like 10+2, the Lacey Act, questionable renewal of GSP and anti-dumping cases) present our industry with impossible hurdles to cross. 
 
If you have any questions on the Washington DC Briefing,
 please contact Peter Friedmann, "Our Man in DC".
 
CONECT
"Dedicated to Promoting Free and Fair Trade"  visit us on our website, www.conect.org      contact the CONECT office
 508.481.0424  508.481.0424 |11 Main Street #11 | Southborough | MA | 01772