|
| |
| Late Summer update | |
| Changes That Might Affect You!!! | September 2003 |
|
Inside this Issue Customs Opens C-TPAT to Mexican, Certain Other Foreign Manufacturers Growing Pressure Could Force China to Revalue Currency Customs Opens C-TPAT to Mexican, Certain Other Foreign Manufacturers The Bureau of Customs and Border Protection has posted information on its web site (http://www.customs.treas.gov/ ) announcing that the agency has begun accepting applications from Mexican manufacturers for participation in the (C-TPAT) Customs-Trade Partnership Against Terrorism program, and has contacted certain manufacturing firms in other countries to invite them to join the program. CBP has added the following topics to the agency's C-TPAT page: Manufacturers (Mexico only)- Mexican Manufacturers exporting to the U.S. from Mexico, who manufacture or produce, as well as pack and prepare for shipping (e.g. loading and sealing trailers/containers), any article or item destined for the U.S. All of these activities must be performed at a facility that is owned and controlled by the Mexican manufacturer. Related Parties (Mexico only)- Eligible Manufacturers in Mexico that are wholly or majority owned subsidiaries of current C-TPAT importers. Related parties must also meet the aforementioned definition of a Mexican Manufacturer. Companies must be controlled by the C-TPAT importer and must be included in the importer's C-TPAT security profile. (Note: related parties are not required to enroll in C-TPAT for Foreign Manufacturers for eligibility in the Free and Secure Trade [FAST] program.) FAST -(Mexico only), C-TPAT certified Mexican Manufacturers and Mexican related parties of C-TPAT Importers will be allowed to participate in the FAST program along the U.S./Mexico Border. Related parties will be eligible for FAST processing upon completion of a FAST application form by the certified C-TPAT importer and/or the submission of a signed C-TPAT application by the manufacture Other Foreign Manufacturers - Customs and Border Protection (CBP) has identified an initial group of foreign manufacturers outside of Mexico that will receive an invitation from CBP to join C-TPAT. These foreign manufacturers must manufacture or produce, as well as pack and prepare for shipping (e.g. loading and sealing containers), any article or item destined for the U.S. All of these activities must be performed at a facility that is owned and controlled by the eligible foreign manufacturer. If you are interested in joining C-TPAT, more details on the program, along with application information, can be found on U.S. Custom's C-TPAT web page at: http://www.customs.ustreas.gov/xp/cgov/import/commercial_enforcement/ctpat/ Growing Pressure Could Force China to Revalue Currency An unprecedented "wave of foreign criticism and political pressure" could force China to make some changes to its currency valuation policy, according to The Globe and Mail. Beijing's policy of keeping the yuan tightly pegged to the dollar has come under increasing fire from US lawmakers and business groups, who argue that this practice is aiding a surge in imports from China that has contributed to the loss of millions of domestic manufacturing jobs. Officials in Canada, Europe, and Asia say that the under valuation of the yuan, which is estimated to be between 15% and 40%, is partially to blame for their economic struggles as well. Alarmed by a trade deficit with China that shot past $100 million in 2002 and has jumped another 27% this year, members of Congress and the domestic business community are pursuing a number of efforts to persuade Beijing to revalue its currency. Last month several Senators asked the Treasury Department to investigate whether China is purposefully manipulating the value of its currency and, if so, to consider possible responses. A coalition representing hundreds of US companies is trying to raise the money needed to file a Section 301 case, Bloomberg reports, which "may prompt the [Bush] administration to file a formal case at the WTO [World Trade Organization] or impose retaliatory tariffs." In addition, two House lawmakers are working on draft legislation that would raise import duties on Chinese goods in proportion to the level of under valuation of the yuan. The August 4 Globe and Mail article stated that while China's official response has been dismissive, "Chinese leaders are searching for a better strategy to respond to the pressure" from the West, whose investment is vital for China's continued economic growth. Indications are that this strategy will primarily entail offering modest near-term concessions such as easing trade barriers, encouraging imports, and reducing rebates on export taxes. Beijing apparently hopes this will be enough to help it avoid a wholesale revaluation. "It seems to be calculating that the George W. Bush administration hasn't yet focused on the yuan as a top political priority, since the United States still needs China as an ally on key issues such as North Korea," the article said. "And Beijing knows it also enjoys support from politically influential US multinationals that have invested heavily in China." However, the article quoted one analyst as saying that "[i]f the pressure for revaluation becomes a lot stronger" as US elections approach next year, "China will have to take it more seriously." UCLA professor Tom Plate noted in the August 2 issue of Singapore's The Straits Times that China now finds itself in a position similar to that of Japan in the 1980s, a country which also kept a tight rein on the value of its currency to boost economic growth and engendered the same kind of unease in Washington. While Plate decried protectionist moves in the US as "a fool's game," he also urged China to "reduce the proportions of the economic issue before the political issue in Washington explodes in an anti-China crusade." Noting that the Department of Defense recently issued a report warning of a Chinese military build-up that could threaten Taiwan, Plate noted that "[a]n alliance between anti-China politicians and budget-building Pentagon officials will not be good for international business or world stability." Source: www.strtrade.com A World Trade Interactive, Inc. Prepared by Sandler, Travis & Rosenberg P.A. | |