REGULATORY COMPLIANCE UPDATE

TSA Known Shipper Management Program on hold:
The known shipper management program set up to replace the Known shipper database that was to be effective October 31, 2007. Please continue to utilize the program currently in place until further announcements are made.

Rule Affecting Shipments Into PVG
There are two international airports serving the city of Shanghai: Pudong International Airport (PVG) and Hongqiao International Airport (SHA). United Airlines Cargo provides non-stop service to PVG from Chicago and San Francisco. China Customs has issued a directive that if a shipment is destined for and will complete Customs work at PVG, the destination entered on the MAWB must be PVG – not SHA. This rule is effective September 29, 2007. PVG should be entered as the destination on almost all MAWBs transported to Shanghai by United Cargo, since these shipments complete Customs work at PVG. We request that our customers do not enter the destination as SHA on MAWBs that will clear Customs at PVG. We appreciate your compliance with this request, and look forward to continuing to meet your need for fast and reliable shipping into PVG and our many other destinations.

The above message concerning United Airlines applies to all carriers and is in line with my message of this month titled “Data Integrity”. Please make sure you use the proper IATA airport code for the actual airport of destination.

U.S. Customs and Border Protection (Customs, CBP)
Administrative Message 07-0222 on October 4, 2007 announcing that approximately 900 continuous bond records were not successfully transferred to Customs’ Automated Commercial Environment (ACE) system from the Automated Commercial System (ACS) during an implementation of ACE’s Entry Summary, Accounts and Revenue (ESAR) functionality in early September 2007. Although these continuous bond records “remain fully operational, and may be used for all entry transactions normally covered by an Activity Code 1 continuous bond,” the Administrative Message said, a traditional Automated Broker Interface (ABI) query of these approximately 900 bonds will result in a response message indicating “NO BOND ON FILE”.

Customs indicated that the principals on the bonds will be notified by mail in the next 90 days of the issue and will be required to terminate the affected bonds and replace them. “Until these bonds are terminated and replaced, they will remain fully functional and available for use by the parties listed on the bond,” the Administrative Message said.

Customs also explained that as part of the transfer to the new system, all bond records were required to pass certain edits in order to transfer successfully. Some of these edits, which reflect current Customs regulations and policy, did not exist in ACS and records that did not pass those edits were not transferred. Over 100,000 valid continuous bond records passed the edits and were transferred, Customs said.

Proclamation 8180--To Provide for Duty Elimination for Certain Goods of Mexico Under the North American Free Trade Agreement -- In order to provide an accelerated schedule of duty elimination for specific goods of Mexico under the terms of general note 12 to the HTS, the tariff treatment set forth in the HTS is modified as provided in the Annex to this proclamation; The amendments made to the HTS by the Annex to this proclamation shall be effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after October 1, 2007; Any provisions of previous proclamations and Executive Orders that are inconsistent with the actions taken in this proclamation are superseded to the extent of such inconsistency.

Denied Persons List Update:

The following entities were added to the Denied Persons List. The full list of changes can be accessed at the OCR web site.

• 10/11/07 - Aviation Services International BV, Delta Logistics BV, Robert Kraaipoel, Niels Kraaipoel, TPC BV, Mia Van Gemert, Mojir Trading, Reza Amidi, Lavantia Ltd., and Mita Zarek have been added to the Denied Persons List. The Federal Register notice has been published (72 F.R. 57520 dated October 10, 2007).
• AYE, Maung , MYANMAR (BURMA) Privileges affected: DOB 25 Dec 1937; citizen Burma; nationality Burma; Vice Senior General; Vice-Chairman of the State Peace and Development Council; Deputy Commander-in-Chief, Myanmar Defense Services (Tatmadaw); Commander-in-Chief, Myanmar Army (individual). Effective date: 09/27/07 ,Expiration date: UNTIL RESCINDED F.R. Date: 10/03/2007 ,Citation: 72 FR 56437
• Aviation Services International B.V. , Fleming Straat 36, Heerhugowaard, 1704SL, NETHERLANDS, AKA/DBA: a.k.a. TPC, B.V.; DELTA LOGISTICS, B.V.; ROBERT KRAAIPOEL; NIELS KRAAIPOEL; MIA VAN GEMERT; MOJIR TRADING; REZA AMIDI; LAVANTIA, Ltd.; Mita Zarek Privileges affected: Temporary Denial Order effective for 180 days from the date of publication in the Federal Register. Aviation Services International B.V may not, directly or indirectly, participate in any way in any transaction involving any commodity, software or technology exported or to be exported from the United States that is subject to the Export Administration Regulations, or in any other activity subject to the EAR. Effective date: 10/01/07
• BO, Maung , MYANMAR (BURMA) Privileges affected: DOB 16 Feb 1945; citizen Burma; nationality Burma; Lieutenant-General; Chief of Bureau of Special Operation 4; Member, State Peace and Development Council (individual). Effective date: 09/27/07, Expiration date: UNTIL RESCINDED F.R. Date: 10/03/2007, Citation: 72 FR 56437

The Bureau of Industry and Security (BIS) issued a final rule that amends the Export Administration Regulations (EAR) to add India as an eligible destination for exports, reexports and transfers under Authorization Validated End-User (VEU). BIS established Authorization VEU in a final rule published in the Federal Register. This rule is effective October 2, 2007.

Hazmat Regulations Update effective October 1, 2007
HM-215E Requires that the number and type of packaging be included on shipping documents. By example: 12 drums, 4 cylinders, 1 cargo tank. Abbreviations for the package type are approved; dr, cyl,.
HM-215F Authorizes the offering, acceptance, and transport of hazardous materials based on the use of international standards such as ICAO, IMDG, Canada TDG, and IAEA Regulations for materials imported or exported from the United States, with some exceptions, namely shipments of ammonium nitrate. It is also advised that when using the Mexican regulations (NOMs) to make sure that they comply with all aspects of the HMR. The requirement to include an indication of the transport standard (acronym such as ICAO, IMDG, TDG) used is deleted. The need to include the word “Toxic” or Poison” in association with the shipping name is deleted. IMO Type 5 tanks are approved for their use only when they are an authorized packaging or when not authorized, the tank must meet the design criteria of a DOT 51 or UN portable tank. Portable tanks, cargo tanks, or rail tanks constructed in Canada which also meet the requirements set forth in the HMR are authorized for U.S. use. Not adopted in this final rule is the authorization to use Canadian cylinders constructed under Transport Canada specifications, removal of combustible liquid placard when in port areas, and the requirement to be trained under international standards as well as HMR.
HM-220D Adopted as a final rule requirements for cylinder valve protection and the inclusion of drop test performance standards.
HM-215E The use of the word “compressed" is no longer authorized for proper shipping names or package marks which had the word “compressed” removed.
HM-215D The word “inhibited” used in proper shipping names and marks is no longer authorized and must be substituted with the word “stabilized”
HM-215G Requires the use of the word “OVERPACK” on the outside of the packaging when an overpack is used and the inner packaging marks and labels are not readily visible. It is no longer necessary to mark the outer packaging with the phrase “Inner packaging comply with prescribed requirements”.
HM-224B This Final Rule amends the HMR to include the requirement that cylinders of compressed oxygen and chemical oxygen generators be transported in an outer packaging designed to meet the same flame resistance standards as cargo aircraft compartment panels and provide thermal protection for oxygen generating or oxygen cylinders. The link to each of these rules and other valuable DOT Final Rule notices is found at:
http://hazmat.dot.gov/regs/notices/rulemake.htm#final

The Nuclear Regulatory Commission (NRC) is amending its regulations to include jurisdiction over discrete sources of radium-226, accelerator-produced radioactive materials, and discrete sources of naturally occurring radioactive material, as required by the Energy Policy Act of 2005 (EPAct). This rulemaking effort has been undertaken in response to that mandate and includes significant contributions from many States that have regulated the naturally occurring and accelerator-produced radioactive material, the Organization of Agreement States, Inc., the Conference of Radiation Control Program Directors, Inc. (CRCPD), and other stakeholders. In addition, this final rule was informed and guided by the CRCPD's applicable Suggested State Regulations for the Control of Radiation. Licensees, individuals, and other entities who are engaged in activities involving the newly defined byproduct material in both Agreement States and non-Agreement States and United States Territories will be affected by this rulemaking. Effective Date: November 30, 2007.

Treaty Between The Government of The United States of America and The Government of The United Kingdom of Great Britain and Northern Ireland Concerning Defense Trade Cooperation

This Treaty provides a comprehensive framework for Exports and Transfers, without a license or other written authorization, of Defense Articles, whether classified or not, to the extent that such Exports and Transfers are in support of the activities identified in Article 3(1).

This newsletter is not intended to provide legal guidance. Adherence to this decision does not relieve the exporter of the statutory responsibilities of complying with the applicable statutes, regulations, policies and procedures of the U.S. Government.