What's New in the European Union

From the September issue of Export News - U S Export Assistance Center

New Requirements for US Exporters of Machines:

As of December 29, 2009 when the new MACHINE SAFETY DIRECTIVE (2006/42/EC) becomes mandatory, US exporters of machines will need to identify a person established in the European Union who is authorized to keep the manufactuer's technical file or have quick access to it. This person's name must appear on the declaration of conformity along with the name and address of the manufacturer. The person could be no more than a letterbox, a point of contact for the authorities in case there are questions about confomrity of the machine or about accidents. The person based in Europe could be the importer/distributor, a lawyer, an authorized representative, or any other person. The manufacturer remains responsible for compiling the technical file. This requirement is an example of the beefed up surveillance and enforcement the EU is putting into effect to back up the CE marking program.

For your copy of Export News

Nyamusi Igambi - Senior Trade Specialist Nyamusi.igambi@mail.doc.gov

Pam Plagens - Senior Trade Specialist Pam.plagens@mail.doc.gov

Understanding and Complying with the New Foreign Trade Regulation (FTR) Requirements:

Starting October 1, 2008, the Census Bureau will re­quire mandatory filing of export information through the Automated Export System (AES) or through AESDirect for all shipments where a paper Shipper’s Export Declaration is required. Penalties may be imposed for the delayed filing, failure to file, false filing of export information, and/or using the AES to further any illegal activity. Also, all AES filers will face new filing deadlines by mode of transportation for reporting export information. For more information, visit www.census.gov/foreign-trade/aes.

It is imperative you understand these new requirements to avoid possible penalties and seizure of your commodities. To this end, the U.S. Census Bureau’s Foreign Trade Division and the U.S. Commercial Service are offering a series of webinars designed to educate U.S. exporters on these new regulations. Webinar topics will be divided into five modules:

Data Elements covers the mandatory, conditional and optional fields in AES.
Filing Requirements covers who, what, when, and how to file export transactions.
Parties to an Export Transaction & Their Responsibilities covers each party’s responsibility as it relates to a standard export and routed export transactions.
AES Overview provides highlights of the AES.
Informed & Enforced Compliance covers topics such as penalties, mitigation, voluntary self-disclosure and corrections. Register at www.export.gov/logistics/aes/doc_eg_aes.asp

MANUFACTURED GOODS EXPORTS UP
September 22, 2008 Shipping Digest Online

U.S. exports of manufactured goods in July were up 22 percent over July 2007, bringing the total for the first seven months of the year to $669 billion, a 16 percent increase over the same period last year, according to Frank Vargo, vice president for international economic affairs at the National Association of Manufacturers.

Manufactured imports rose 8 percent in July and are up 7 percent for the year. The $933 billion import tab resulted in a $264 billion deficit, 15 percent lower than in the first seven months of 2007.

The surplus with U.S. partners in the North American Free Trade Agreement and other free-trade partners totaled $8.1 billion in the first seven months of the year, for an annual rate of $14 billion, Vargo said.

“Many people have been led to believe we have a terrible trade position with our FTA partners and are unaware that our manufactured goods trade with them is in surplus,” Vargo said. “And that’s a shame, because if they knew, they would join the NAM in asking Congress to pass the remaining FTAs so we could have our exports increase even more. The lesson is clear – free-trade agreements are the solution, not the problem.”

Latin America on Target to set more records

We, at Dixie Cullen, have seen a large increase in the volumne of equipment and material coming through our warehouse facility for export packing bound for Latin America.

TRADE WITH LATIN AMERICA ON TARGET TO SET MORE RECORDS September 1, 2008 LETICIA LOZANO from Shipping Digest

Rapid economic growth spurs demands for U.S. importsSoaring energy and food prices, the worst housing slump since the Great Depression, a credit crisis, job cuts: It all may be enough to tip the U.S. into recession this year, if we aren’t already there. But the “flu” in the world’s biggest economy is causing little more than the sniffles in Latin America, where growth remains strong and a weak dollar is driving trade between the U.S. and South America.

With Latin American banks having little or no exposure to the U.S. credit crunch, and with the region’s strong domestic currencies, a China-driven commodities boom, high foreign investment levels and fiscal discipline, trade is robust — despite soaring oil prices, rising freight costs and Latin America’s congested ports.

“We haven’t seen impact from the U.S. slowdown,” said Alvaro Espinosa, general manager at the Port of San Antonio, Chile, which sends 16 percent of its exports to the U.S. and where U.S. imports represent 25 percent of all imports. “In the first five months of this year, we’ve seen a 15 percent increase in container shipments, so at least at the first reading, there is no talk of a U.S. recession here.”

Such optimism may be dampened in the coming months if the relentless increases in oil prices continue and as U.S. manufacturing activity falls. Consumer spending is weakening now that the fiscal stimulus checks have mostly been spent.

Overall U.S.-South American trade is nevertheless growing at historic levels, with Chile and Peru benefiting from free-trade deals. U.S. exports to Central and South America reached a record $107.5 billion in 2007, and imports hit a record $134.8 billion, according to the U.S. Census Bureau. Those records will probably be smashed this year. U.S. exports in the first six months of the year totaled $66.8 billion, while imports totaled $80 billion.

Despite the slowing U.S. economy and world oil prices, exports to Central and South America in June were a record $12.9 billion, compared with $8.7 billion in June 2007. Imports totaled $15.7 billion, compared with $10.7 billion in June of last year.

Brazil is enjoying a boom time as its middle class swells and the country enjoys an unprecedented stretch of economic growth coupled with low inflation and a strong currency. Foreign investment doubled to $35 billion last year, the economy grew 5.4 percent, and trade with the U.S. totaled $50 billion. The economy is set to grow 4.5 percent this year.

“The stronger buying power of Latin American currencies, particularly the Brazilian real, and the abundance of petro-dollars in Venezuela have generated a significant increase in export liftings compared to a year ago,” said Frank Larkin, senior vice president at Hamburg Sud North America, the U.S. subsidiary of the German shipping line Hamburg Sud.

Soaring economic growth in Argentina, Peru and Venezuela is also spurring demand for U.S. imports in those countries.

Despite the bitter anti-U.S. rhetoric of President Hugo Chavez, Venezuela is increasingly dependent on U.S. imports and, as the government nationalizes large chunks of the economy, its exports beyond oil are few.

“The downside of that shift is the need to continually reposition empty boxes,” Larkin said. “On the export side, the Venezuelan container market, for example, is virtually all inbound, and those boxes, once emptied, must then be repositioned to match up with export opportunities in other markets.”

Changes to customs laws in Brazil and Colombia this year also have made life difficult for shippers. Both countries now require cargo heading for their ports to be documented 48 hours prior to the vessel’s first Brazilian port call. Failure to do so can mean cargo confiscation or denial of berthing.

“These new mandates are very rigid and unfortunately conflict with the realities of modern just-in-time shipping,” Larkin said. “If manifest information is submitted to (Brazil’s) Siscomex Carga and then changes or additions need to be made, fines of $3,000 per incident can be imposed and cargo delivery can be further delayed.”

Such measures have increased costs for shippers having to rehandle and work export documents, Larkin said.

Deficit Shrinks as Exports Surge

DEFICIT SHRINKS AS EXPORTS SURGE
August 25, 2008 Shippers Digest

The U.S. trade deficit dropped 4.1 percent in June despite soaring prices for imported oil. Goods exports increased 5.1 percent to $118.6 billion, compared to $114.3 billion in May and $99.1 billion in June 2007.

Exports of manufactured goods were 17 percent higher than in June 2007, according to the National Association of Manufacturers.

“Manufactured goods exports are growing more than twice as fast as imports of manufactured goods, and as a result the manufactured goods trade deficit is falling,” said Frank Vargo, NAM’s vice president for international economic affairs. “June’s manufactured goods trade deficit in fact was 9 percent lower than it was a year ago.”

Exports of automobiles, parts and engines grew by $576 million, while imports grew by $60 million. U.S. exports of food, feeds and beverages rose by $853 million, while U.S. imports of the same products fell by $144 million. Exports of capital goods excluding autos rose by $1.2 billion in June, while imports fell $1.4 billion.

Goods imports were up 2 percent because of the increase in oil prices, which averaged $117.3 billion. Non-oil imports fell.

Including services, the deficit shrank to $56.8 billion, according to the Commerce Department. However, when adjusted for inflation, including oil prices, the real trade deficit fell by 10.3 percent in June to $39.1 billion, the lowest level since December 2001.The trade deficit with OPEC countries grew to a record $18.1 billion, while the politically sensitive U.S. trade gap with China rose to $21.4 billion, up from $21 billion in May, but not up much from the $21.2 billion deficit in June 2007.

The total U.S. deficit with all countries in the first half of the year was $394 billion, up from $376.2 billion in the first six months of 2007.