CHINA
SOLID WOOD PACKING MATERIALS FORM REVISED
10/00
U.S. Dept. of Agriculture has revised the form used to report solid
wood packing material for goods from China as being properly heat
treated. Check the USDA web site for more details, www.aphis.usda.gov/library/forms.
FINLAND ADDED TO LIST OF COUNTRIES RE SWPM
05/00
Finland has notified APHIS that it will also require certificates for
all U.S. origin conifer solid wood packing material as a means to
prevent introduction of the pinewood nematode. For more information
check http://www.aphis.usda/gov/ppq/swp.
HOUSE APPROVES CHINA PNTR
05/00
In late May, the U.S. House of Representatives approved the granting
of permanent normal trade relations to China by a surprisingly wide
margin. The U.S. Senate is expected to vote on this bill sometime in
June. PNTR would take effect for China only upon its accession to the
WTO.
WOOD TREATMENT RULES EXTEND TO BRAZIL
3/00
Joining several other countries, Brazil
is seeking to keep out wood-eating insects by imposing new rules on wood
packing materials. Brazil is concerned about shipments from China, Hong
Kong, Japan, South Korea, North Korea and the United States. Other
countries imposing limits on wood packing materials are the U.S.,
Canada, China, the European Union, Australia, New Zealand and Japan.
One problem with the Brazilian rules is
they require fumigation by a private company endorsed by the government
of the exporting country. Since APHIS does not endorse private
laboratories, American shipments cannot be treated until arrival. For
more details, check the APHIS web site.
CHINA TO CHANGE RULES REGARDING WOOD PALLETS
11/99
Effective for exports on and after
January 1, 2000, China is expected to require different treatment for
goods accompanied by solid wood packing materials in the form of heat
treatment for U.S. made conifers. Additional certification requirements
will also take effect. Japanese conifers are expected to be similarly
restricted. For more information, contact the U.S. Dept. of Agriculture
or see its web site at www.usda.gov.
CHINA IMPOSES LIMITS ON
US WOOD PACKING MATERIALS
7/99
The Chinese government has informed USDA it found
Bursaphelenchus Xylophilus in shipments from the U.S. containing wood
packing materials. The pest is quarantined under Chinese law so USDA has
advised U.S. exporters to eliminate the possibility of the pine wood
nematode being transmitted in wood packing materials.
USDA & WOOD
PACKAGING
12/98
The USDA requirements for the fumigation of all wood
packaging out of China took effect on December 17th (the trigger is the date of
export). In the last minute a few changes were made to those rules by USDA
in partial response to industry comments. There is a statement signed by the
exporter which is now required and must be accompanied by a fumigation
certificate if wood packaging is present. The fumigation certification must be
issued by a government authority in China or Hong Kong, depending on origin. The
importer then issues his own statement attesting to having the fumigation
certificate in his files. If wood packaging is not included with the shipment, a
statement to that effect by the exporter is required. In either case,
Customs has created a special ABI indicator to flag these transactions. However,
if the entry is not filed electronically, the fumigation certification must
accompany the entry. Either way, the exporter?s statement must also accompany
the entry.
This change in rules now makes clear the regime applies to
goods which originate in either China or Hong Kong or are entered into either
country for further processing or packaging. If, however, goods are simply
transhipped through China or Hong Kong without adding either merchandise or wood
packaging, they are excluded from these requirements.
The beetle was
discovered in about 30 warehouses in the U.S. as well. It was also discovered
chewing holes in trees in New York (Brooklyn) and Chicago. As a result, the
Department of Agriculture has set up a quarantine zone around Chicago to stop
the infestation discovered there. Local shippers are being required to allow
packing crates to simply pile up until federal investigators can incinerate
them. Officials are concerned the beetle problem will spread if any wood
(e.g. stumps, branches and roots from infested trees or the pallets themselves,
along with many other types and forms of wood) is moved. The quarantine covers
Ravenswood, Summit and Addison. The list of affected wood is lengthy.
To
further deal with the problem, USDA has posted a plant-quarantine specialist in
China to provide answers to shippers about U.S. regulations for a period of
about four (4) months. In response, Chinese officials now agree that
wooden packaging material used for export to the U.S. will be fumigated.
Untreated packing material will not pass Chinese export inspections after
December 17th. Despite its cooperation, Chinese officials continue to claim
China is being singled out as the beetle genus is also native to Korea and
Japan. U.S. officials respond saying those countries do not generally use wood
packaging.
USDA WOOD PACKING RULE MAY BE
DELAYED
10/98
The USDA rule for certification of wood packing is currently
scheduled to take effect on December 17th. However, at recent public hearings,
USDA APHIS officials conceded a later implementation date may be necessary to
give importers sufficient lead time to comply.
CHINESE BUG INVADES WOOD PACKING MATERIAL
9/98
The U.S. Dept. of Agriculture has enacted an interim rule to
halt what is described as the infestation of the Asian longhorned beetle. The
rule prohibits untreated solid wood packing materials from China entering the
U.S. If the Chinese exporter heat treats, fumigates or treats the wood material
with preservatives, the packing material may be imported into the U.S. If the
packing material is treated, a certification from the Chinese government must
accompany the shipment and attest to the treatment. Goods without wood packing
material must have an exporter’s statement certifying the shipment contains no
solid wood packing material.
Wood packing material includes pallets,
crating and dunnage. The new rule becomes effective December 17, 1998.
U.S. Threatens
Retaliation Against China ...
Following two years of monitoring the efforts of China at enforcing its
intellectual properly rights, the U.S. has found those efforts to be wanting.
Scrap resulted during the manufacturing process, its value was not part of the
dutiable value for Customs purposes. Effective February 20, 1996, waste and
scrap which result during manufacturing become part of the value of the assist
as they are consumed in production. In its ruling, Customs made clear that if a
defect is identified prior to commencement of production, its value is not
dutiable. If the waste or scrap is sold and the importer receives some of the
sale proceeds, the value of the assist is reduced accordingly. If the resulting
scrap is used to produce another article, the value of the assist is apportioned
appropriately. But if a defect is discovered which leads to the scrap or waste
during production, its value is dutiable.
An assist arises where the importer provides something to his supplier free
of charge or at a reduced price which is used in production. Its value includes
the freight to transport it to the manufacturing site and the attendant
international insurance premium.
For most companies the result of this change in position by Customs will mean
doing a better job of documenting when and how defects are discovered.
... And China Responds.
Not more than an hour after the U.S. list was published, China announced its
own list of U.S. products against which it threatens retaliation. The Chinese
list includes planes, drugs and telecommunications equipment . Of most concern
is the Chinese threat to stop processing permits for U.S. companies which want
to operate in China. For copies of the U.S. and China lists. please feel free to
contact us.
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