Coppersmith Global Logistics Newsletter

We continue to update you on current events and recent changes to laws and regulations impacting your international trade business.

Coppersmith's courtesy liquidation monitoring service is an inexpensive way of keeping track of any entries that may have liquidated. This service provides a twice weekly liquidation report of entries liquidated with or without a change.

For more information and to sign up go to: Courtesy Liquidation Service


On August 17, 2011, U.S. Customs and Border Protection (CBP) issued a final rule in the Federal Register, stating that effective September 30, 2011, CBP will cease the issuance of courtesy notices of liquidation for those importers of record that file their customs entries using the Automated Brokerage Interface (ABI) system.

As you may have read in various trade publications, carriers have implemented a
GRI (General Rate Increase) for most inbound trade from Asia. We also note that inbound and outbound trade with Europe is also seeing GRI's.


Note that the cost of fuel is also effecting rates for carriers in all sectors, vessels, aircraft and trucks.


Coppersmith works diligently with our partners and carriers to mitigate these increases as much as possible.



In This Issue
Korea Free Trade Agreement
Food Safety Modernization
AntiDumping & Countervailing Duty
Korea Free Trade Agreement (KFTA)Headline

On Thursday, March 15, 2012, the US-Korea Free Trade Agreement was implemented in both the U.S. and Korea. While the agreement has generally gone by the acronym KORUS, documentation from Customs and Border Protection (CBP) refers to it as the UKFTA. The final text of the agreement can be found at

Implementation was triggered by Presidential Proclamation 87873 issued on March 6, 2012. Interim regulations were published in the Federal Register on March 19, 2012. See

In a March 12, 2012 memorandum, CBP's Headquarters provided the needed guidance to its staff and the trade community about claims filing under this free trade agreement at

The updated system programming is not expected to be completed until March 21, but claims can nonetheless already be filed.

As with all the other free trade agreements to which the U.S. is a party, certain rules of origin must be met and proper supporting documentation must be in hand making clear how the good qualifies for the FTA benefits being claimed. The KORUS provisions are in

A good must be shipped directly from one country to the other.


Any stops in a location other than the U.S. or Korea for anything other than unloading, reloading, or other processes needed to preserve the condition of the good will disqualify the shipment from KORUS benefits.


If you use non-U.S. or non-Korean components or raw materials in making your goods, there is a de minimis provision of ten (10%) percent of the value, and for textiles the rule is ten (10%) percent by weight.


For textiles and apparel, in general, qualifying goods must be yarn forward, meaning the yarn was made in either the U.S. or Korea.


For the yarn itself to qualify, the fiber must made in the U.S. or Korea. There are, of course, exceptions and special rules, some for commodities and others for specific circumstances. 


As with all the other FTAs to which the U.S. is a signatory, KORUS-eligible goods are exempt from the merchandise processing fee.


Each shipment must also be accompanied by a certificate of origin.

Food Safety Modernization Act

Hazard Analysis, Preventive Controls, Verification, Corrective Actions, Recordkeeping.


Full text of the law can be found at: Food Safety Modernization Act (FSMA) 


In general, the owner, operator, or agent in charge of a facility must evaluate the hazards that could affect food manufactured, processed, packed, or held by such a facility. They must also identify and implement preventive controls to significantly minimize or prevent the occurrence of such hazards by providing assurances that the food is not adulterated or misbranded. A system must be in place to further monitor the controls and maintain records of these practices. Now let's break this down a bit further:


Hazard Analysis-What known or foreseeable hazards can be identified?

(a) Biological, chemical, physical & radiological hazards, natural toxins, pesticides, drug residues, decomposition, parasites, allergens, and unapproved food and color additives.

(b) Hazards that occur naturally, or may be unintentionally introduced.

Preventive Controls-What hazards may be intentionally introduced?

(a) Identify and implement controls, especially at critical control points to ensure

-Hazards identified in the hazard analysis will be significantly minimized or prevented

-Any hazards identified in the hazard analysis regarding intentionally introduced hazards, (including acts of terrorism) will be significantly minimized or prevented.

-The food manufactured, processed, packed or held will not be adulterated or misbranded.

Monitoring Effectiveness-The facility must monitor procedures in place for hazard

identification and preventive controls to ensure that they are effective and being implemented. If found ineffective or not enforced, corrective action must be established and documented.

Verification-Are the preventive controls adequate to control the identifiable hazards? Is there proof that the facility is effectively monitoring the written plan? Is there proof that the preventive controls foster evidence for preventing the occurrence of identifiable hazards? Is there any reanalysis of the plan to ensure its relevancy?

Recordkeeping-The facility has to maintain records documenting the monitoring of

preventive controls for no less than two years.

For more details on this topic of the FSMA, be sure to check out:FSMA on our website

Food Safety Preventive Controls Alliance


The FDA is expected to issue proposed rules during early 2012, that would require facilities that make or handle food for people and animals to put measures in place to help prevent foodborne illness. The U.S. Food and Drug Administration in cooperation with the Illinois Institute of Technology's Institute for Food Safety and Health (IIT IFSH) has created the Food Safety Preventive Controls Alliance (FSPCA) to develop training courses and materials on preventing contamination for both human and animal food during production. The materials to be developed by the alliance will help industry-particulary small- and medium-size companies-- comply with the new preventive control rules.

The alliance is composed of members from the FDA, local and state food protection agencies, the food industry, and academia. It is funded by a one-year, $1 million grant to the Illinois Institute of Technology's Institute for Food Safety and Health (IIT IFSH), a nationally-recognized leader in food safety.



Food Tracking & Tracing


The U.S. Food and Drug Administration recently unveiled a new pilot program studying tracking and tracing technologies for high-risk foods. The pilot is contemplated in Sec. 204 of the Food Safety Modernization Act (FSMA), a legislative initiative aiming at reducing foodborne outbreaks and increasing the FDA's ability to quickly identify and report outbreaks to the American public. In a post on the FDA's Transparency Blog, Sherri McGarry, Senior Adviser, Coordinated Outbreak Response and Evaluation Network Office of Foods at FDA, communicated her view of the importance of this pilot; "When a foodborne outbreak occurs, it is up to us, the FDA, and others, such as our industry partners, other government regulators to make sure that contaminated food products are no longer available. By quickly tracing the food product, we can help to minimize the risk to consumers."

FDA has heard the proverbial call of tracking and tracing high-risk foods for years.  But while FDA talked, many segments of the food supply chain advanced light years ahead of FDA from an IT/technology standpoint. FDA admits that, "It is clear that we cannot meet all of the deadlines in the statute. We are focusing first on those with the greatest public health benefit, such as preventive controls, inspection and compliance, and the import provisions."



Miscellaneous Trade Bills Must be Introduced by April 30

Companies interested in extending or establishing duty breaks on their imports have less than a month to make sure their goods are included in this year's miscellaneous trade bill process. The MTB can save importers up to $1.5 million in duties over three years but all current MTB provisions are scheduled to expire Dec. 31, 2012. Congress has announced that all legislation seeking to continue or create duty suspensions must be introduced by April 30 .

The MTB process is open to companies importing goods that have no equivalent U.S. domestic production and for which duties paid are less than $500,000 per year. Past MTBs have included products such as chemicals, yarns, electronic components and numerous other manufacturing inputs as well as food and finished consumer products such as food preparations, footwear and sporting goods. The window of opportunity for such duty savings is available only once every couple of years.

Please contact us if you would like a referal to a firm that can assist with this process.

"This newsletteris for clients of Coppersmith Global Logistics and is for informational purposes only.Topics contained herein are taken from numerous sources and are edited to provide an overview of the subject and should not be solely relied upon for implementation or compliance purposes.Where possible we provide sources for more detailed information.










The 2011 C-TPAT Cost Savings Survey (CCS) 

is a drill-down view of the detailed costs and

savings experiences of a small sample of C-TPAT

members. The CSS was developed and executed

separately from the larger membership survey that

was done in 2010. This approach was intended to

enhance the response rate of the 2010 membership

survey by simplifying it, and it was successful -

the response rate to the 2010 membership survey

was substantially higher than in the 2006 survey.



Delayed Implementation of New Mechanical Seal Standard for Cargo Containers


U.S. Customs and Border Protection informed members of the Customs-Trade Partnership Against Terrorism Feb. 15 that implementation of the updated International Organization for Standardization (ISO) mechanical seal standard will not be viable by March 1 as previously announced. CBP has learned that the tamper evidence element (clause 6) of the new standard (ISO 17712:2010) cannot be met and that to date no accredited independent laboratories have been willing to test and certify seals as complying with this requirement. While the ISO is working to resolve this issue, implementation of the new standard will be delayed until CBP receives definitive information that this has been accomplished. CBP notes that since the ISO 17712: 2010 (18 mm) certification for high-security seals is attainable without the clause 6 testing portion of the standard, C-TPAT partners are encouraged to buy seals that meet this part of the standard. If they do so, however, they should request documentation to confirm that the purchased seals comply with the current testing requirements for ISO 17712: 2010 (18 mm) certification.





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