Wednesday, December 9, 2009

New fish and wildlife/USDA requirements for wood imports.

  The 2008 farm bill amended the nations oldest environmental enforcement bill protecting endangered species. The new amendment now is trying to stop the trade of endangered trees. In doing so they are asking all importers of wooden items to report the genus, species and harvesting locations of every wooden thing imported into the US. They are also making it then a crime to declare falsely the species of wood being imported.
    It is unclear if the intention is to place a large burden on trade or just to add additional crimes to prosecute importers of endangered species. I believe the intention is solely the latter but that they succeed in accomplishing both. They are phasing in different wood products. April 1st 2010 will be the next phase in date that will incorporate many new products. Other products will also be incorporated. Below is the list of goods and their phase in date:

Phase II               April 1st 2009
___________________________
HTS    Commodity
4401    Fuel Wood
4403    Hoopwood, Pole, Piles and Stakes
4406    Railway or Tramway Sleepers
4407    Wood Sawn or chipped
4408    Sheets for veneer
4409    Wood continuously shaped
4417    Tools, tool handles, broom handles
4418    Builder joinery and carpentry of wood

Phase III                  October 1st 2010
___________________________
4402    Wood charcoal
4412    Plywood veneered panels (except 44129906 and 44129957)
4414    Wooden frames
4419    Tableware, Kitchenware
4420    Wood marquetry, caskets, statutes .


Phase IV    April 1st 2009
____________________________
4421    Other articles of wood
6602    Umbrellas, Walking sticks, Riding crops.
8201    Hand tools
9201    Pianos
9202    Stringed instruments
9302    Revolver handles
9305    Pistols parts
940169    Seats, Chairs.
950420    Pool cues, and Billiard accessories.
9703    Wooded art work, and  Wooden sculptures

    We are sending this out now due to the additions coming up in April. Now would be the time to find out from your suppliers the particular species of wood they use and where they get it if from. We foresee this might take some time to find out where actually the wood was harvested from. For finished goods the wood is bought from lumber suppliers, who buy from saw mills, who buy from loggers, plus any number of distributors along the way.
   
    So we advise importers to begin finding this information out now. We will all have to brush up on our taxonomy. The government requires the scientific name and not familiar name. The USDA states over and over again that they will need both the genus and the species. They are aware that many times it is impossible to know the exact species in a genus. However, they expect importers to state all possible species that the item maybe made from.
    The USDA  states in cases where it is impossible to state the exact species it is not acceptable to state all possible species of the genus. The importer must state each individual species which the wood might possible belong to, based on harvest location, and species in that location. The importer must know and state all the possible species individually. So, the importer must state the genus and if there are multiple species that the wood was derived from each individual species that the wood may belong to.
    The declaration may be made on the forms provided by the USDA. The form is call the PPQ form 505. We are attaching the form for you to look at, or it can be found at the USDA web site: http://www.aphis.usda.gov/plant_health/lacey_act/downloads/declarationform.pdf. We also can file these forms electronically with the entries. But to file them for you we will need the above information. You may send it to us separately or on the invoices suppled by your supplier.
    Any false declaration will be punishable by criminal statutes and potential fines. The importer is responsible for any information supplied to the broker. There will be more products added to the list mentioned above. The final implantation of the full list is set to take place by August 31st 2010. It is likely that there will be a new list sometime between now and February and we will be keeping an eye out for. The full list of products will likely include as follows:

HTSUS
4405     Wood wool
4410     Particle board
4411     fiberboard
4412      Plywood including 44129906 and 44129957
4413     Densified wood
4415     Packing cases boxes crates and drums
4416     Casks Barrels vats tubs
4701     Mechanical wood pulp
4702    Chemical wood pulp, dissolving
4703    Chemical wood pulp, sulfate
4704     Chemical wood pulp, sulfite
4705    Combination chemical and mechanical wood pulp.
4801    Newsprint
4802    Uncoated writing paper
4803     Toilet or facial tissues
4805    Other uncoated paper
4806    Vegetable parchment
4807    Composite paper and board   
4808    Corrugated paper and board
4809    Carbon paper
4810    Coated paper and paper board
4811    Paper coated
6601        Umbrellas
6603        Umbrella parts
9205         Wind instruments
9401        All seats
990330    Wooden office furniture
940340    Wooden kitchen furniture
940350    Wooden bedroom furniture
940360    Other wooden furniture
940381    Furniture of, cane, osier, bamboo, rattan, or similar materials
9504        Articles for arcade, table, or parlor games. (Parlor???)

    As mentioned before we will can file this electronically, but we will need the information on the invoice or provided for us separately or in the form of the deceleration.  We will monitor the new products and let you know when we find out about them. It is important for imports of the new Phase IV products to begin getting the species, genus and harvest information as soon as possible. Or require your suppliers to begin putting the information on the invoices.

Thursday, December 3, 2009

FDA new PREDICT system

FDA new PREDICT system changes the cargo screening method.

The Food and Drug Administration (FDA) is changing its computer system to utilize more technology and streamline the process of differentiating between high risk food and drugs, and low risk foods and drugs. The Predictive Risk-based Evaluation for Dynamic Import Compliance Targeting (PREDICT) system is replacing the Operational and Administrative System for Import Support (OASIS) system.

As can be told by the acronyms the new system will use computer technology to target foods that are high risk and use less "human" based assets. There will be less people deciding what might be dangerous and more computers deciding what might be dangerous. At the same time they are moving more inspectors into the field overseas. What this means for importers can be both good and bad depending on the importer. The FDA stresses it depends on the accuracy of the data provided to them which will decrease the need for detentions, reviews, exams and sampling.

The more accurate the data provided to the FDA the less likely that goods will be reviewed. For importers that have good data from the manufacturers and the information provided is “consistent, accurate and complete,” then the inspections, request for documents, and reviews will be fewer than the previous system. They emphasize the more the importer concentrates on insuring "CAC" the less exams, sampling, and detention there will be.

 Most importers are not aware of the data we provide the FDA for their imports so I will briefly explain it. There are three basic data elements that the FDA is looking for to decide the risk, the 1) Manufacture Identification, (MID), 2) the PN registration number, and 3) the product code. The FDA wants these data elements to be “consistent, accurate and complete.”

The Manufacture ID is a code used to identify the manufacturer of the food product. The FDA conducts routine inspection of overseas food facilities, therefore it is important to know that your manufacture is producing safe food. The MID is constructed by using the address of the facility. The first two letters are the country code, the next three letters are the first three letters of the manufacturer’s first name, the second three letters are the first three letters of the manufacturer’s second name, the next four digits are first four digits of the manufacturer’s street address, and the last three letters are the first three letters of the manufacturer’s city.

For example if the company was: Food Makers Inc. 123 Main Street, Big City France. The MID would be FRFOOMAK123BIG. This is simple but many times shipper give different information on the bill of lading, the commercial invoice and their web site as to their address and company name.

The FDA claims that it is typical for one manufacturer to have 6 different manufacturer’s ID codes. The problem is that overseas address systems are different than our own. Some times the letter from one language will translate to different roman characters by different people. Furthermore, many overseas producers have several names they use concurrently for their businesses. It is often hard to differentiate on the invoice between town, county or province.

For example, Aziendia Agricola, precedes many vineyard names. But many times they will use the commercial name of the vineyard on invoices. To be consistent it would be best to get a copy of the exact name and address as they filed with their Prior Notice registration. It is also important though that the information they used to filed with the FDA prior notice be accurate.

It would be good for us to go over with you and the information given by your supplier to make sure we are on the same page and that we have consistent information used to file. Even if we have been handling you products for many years it will be worth the time to spend a little time ensuring that we have and file using accurate information. Then in turn we would help to ensure that your products continue to enter the U.S. smoothly and quickly.

The third area that we should also check to help insure that your product are imported easily is ensuring we are using the proper “Product Code.” The product code is two digits three letters and two more digits. The first two digits are the general product division. The first letter and last two digits are the specific product divisions. These are pretty self explanatory as long we have a decent description of the goods then we can figure these out consistently. It is the second two letters where accuracy and consistency issues arise.

The first letter is the packaging that is used. Many invoices do not specify the packaging method. It is important that we get this information from your supplier in order to use the proper product code. The second letter that poses problem represents the sterilization method used. The possible sterilization methods and packaging codes are as follows:

Packaging:                   Sterilization Method:
A- Fabric                    Acidified
B- Ceramic Earthenware       Aseptic Packed
C- Glass                     Commercially Sterile
D- Laminated                 Cultured/ Cure
E- Metal                     Heat Treated
F- Paper                     Not Specified
G- Plastic                   Naturally Dried
H- Non Flex Plastic Package  Food Not Commercially Sterile
J- Wood                      Pasteurized
M- Multiple Containers       Raw, Frozen
V- Vacuum Packed             Raw, Fresh
W- Wax                       Raw Refrigerated
Y- Not Specified             Ultra pasteurized

Based on the specific food it is easy to foresee that it should fall in under a particular sterilization method. If sterilization method and packaging method do not match up with the food it is easy to see why the food should not be admitted into the US. The broker will need to have accurate information from the importer, from the supplier, or have detailed information on the invoices. Especially where is not obvious, however, for a bottle of beer, we would know that it is packed in glass and cultured. But other items are not so obvious.

If the broker can get this information they can help you to have fewer problems with the FDA. Most customers never have any problem and never know what information we file to clear their shipments. However, it would still be a good idea to insure we are using the accurate data to insure we have no problems in the future. On the other hand customers who have had problems should talk with us to get the right information and eliminate problems with the FDA.

The new system can really help the good importers insure that they have fewer problems with the FDA and that products are delivered faster and safer.