Customs News 2005

9.7.06

The California General Assembly on August 30 passed AAFA-opposed SB 927 by a narrow vote of 41-36. The California Senate approved the measure shortly afterwards. Governor Arnold Schwarzenegger has until the end of September 2006 to sign or veto the bill.

SB 927 requires the ports of Los Angeles and Long Beach to impose a $60 container (feu) fee to fund undefined transportation, clean air and port security programs. The text of the bill specifically identifies cargo owners as the sole entity responsible for paying the fee. The fee, if enacted into law, is expected to generate about half a billion dollars a year.

AAFA and others believe the container fee structure outlined in SB 927 is unconstitutional on several grounds and, more importantly, will drive business away from California ports.

While Governor Schwarzenegger has vetoed such measures in the past, a series of powerful national and state interests have lined up to support the bill, including the American Lung Association, the Natural Resources Defense Council and the influential California Nurses Association. These groups have placed responsibility for poor air quality and road congestion in southern California on big corporations moving freight through San Pedro Bay. Several polls suggest that these arguments are playing well among likely California voters.

AAFA will continue to lobby Governor Schwarzenegger to veto SB927 and encourages AAFA members to do the same.

AAFA blasted US import restraints on apparel, footwear and travel goods in comments submitted August 11 to the US International Trade Commission (ITC). The comments, submitted for the ITC's annual report on The Economic Effects of Significant Import Restraints detailed the immense costs these restraints have on US consumers, particularly low-income families while providing little, if any, benefit to those the import restraints are supposed to protect.

8.18.05
Effective August 15, all 13 ocean carriers participating in the Transpacific Stabilization Agreement (TSA) will impose a $137 fuel surcharge on each container moving via on-dock rail and those trucked to a near dock rail facility. A $40 fuel surcharge will also be assessed on each container that is drayed locally where a store door charge is included in the contract with the carrier. According to the TSA announcement, the fuel surcharge is needed to help offset higher operating expenses borne by ocean carriers associated with high fuel prices. The surcharge will be adjusted quarterly to movements in diesel fuel prices published by the US Department of Energy.

7.18.05
The US inter-agency Committee for the Implementation of Textile Agreements (CITA) announced that, effective July 1, it has terminated all visa requirements for all incoming goods and staged entries of overshipments that are subject to 2004 quotas.

6.21.05
The AAFA-supported Waterfront Coalition, which represents US shippers and importers from a variety of industries, recently issued a white paper proposing both short and long-term solutions to the growing congestion at West Coast ports. Among the groups recommendations are encouraging the increased use of alternative West Coast, Gulf Coast and East Coast ports, staggering shipping departure times, moving to a 24/7 work environment, increasing cooperation between the ports, shippers and transportation providers and other short term measures as well as implementing a number of specific port, road and rail infrastructure projects in the long term.

5.19.05
The Port of Long Beach, CA will impose a general tariff rate increase of five percent, effective July 1. The increases to the Port’s shipping services fees will include hikes in wharfage, dockage, storage and demurrage. In authorizing the increase, the Port cited sharp increases in infrastructure, environmental and security costs to deal with soaring trade volumes and threats from terrorism.

3.30.05
Almost 1 1/2 years after the agreement's implementation, Customs issued interim regulations, effective March 7, governing US imports under the US/Chile Free Trade Agreement, including apparel and footwear. Comments on the interim regulations are due June 6.

2.1.05
The US Bureau of Customs & Border Protection (Customs) issued instructions on how to clear goods on February 1 that were embargoed due to the filling (or expected filling) of 2004 quota limits. There are a number of announcements for each country where there is a current or expected embargo, including the embargoes placed on China safeguard categories (222, 349/649, and 350/650), which were released on January 24. While Category 222 and 350/650 did not fill over the 5 percent limit, brassieres (Category 349/649) filled. As a result, all the embargoed shipments for knit fabric (Category 222) and dressing gowns (Category 350/650) are still being released while brassieres will be released on a pro rata basis.