January/February 2008 AFI Newsletter
NAOOA Unveils Certification Program; Hotel Discount Available; Update on Food Safety Legislation; FDA's New York Region Offers E-mail "Hotline"; FDA Issues Draft Guidance on L. Monocytogenes; FDA Seeks Overseas Satellite Offices; CBP Review C-TPAT Achievements; New Regulations Hope to Improve China Imports/Exports; Full Congressional Trade Agenda in 2008; AFI Convention Quickly Approaching; AFI to Host Reception at SIAL Montreal; and more.
NAOOA UNVEILS
CERTIFICATION PROGRAM
The North American Olive Oil Association, a section of AFI, launched a quality control program that will allow NAOOA members to put the organization’s seal on their product labels, websites and business communications.
In order to use the seal, a company must be a member in good standing of the NAOOA and the type of oil bearing the seal must be tested and must meet the International Olive Council standard for olive oil. The IOC, a quasi-United Nations organization, is recognized worldwide as the quality-standard-setting body for the olive oil industry.
Companies wishing to use the NAOOA seal are required to pay an annual fee and sign an annual licensing agreement that dictates how the seal may be used.
Details on the NAOOA Seal Program are available at www.naooa.org. HOTEL DISCOUNT AVAILABLE
AFI has a credit at the Westin Hotel in Hilton Head Island, S.C., site of the 2006 AFI Convention. If you, your company or someone you know might be able to make use of the hotel for a sales meeting or similar occasion, please contact the AFI office for details. The credit would go toward the meeting functions of your event – not the sleeping rooms. The credit is good for meetings held through March 2009. Give us the information we need to help you! That’s the request of the AFI Board of Directors and staff to members. We need as much information on our members as possible so we can be proactive rather than reactive. If we hear of something that might affect a particular product or country, it’s much more efficient to be able to check our database and see what members are impacted than going out to members each time something comes up and asking for information. That’s why it’s critical all members complete the surveys that were sent a few weeks ago to all domestic members. Foreign members will receive surveys shortly. Food Safety Legislation
Work continues on the food safety legislation front. February’s beef recall has helped put this topic on the front-burner again, though it still appears no legislation will be passed in the near future. Nonetheless, AFI needs to stay involved. The work being done now is critical, as AFI and others try to offer alternative suggestions to other, less-feasible proposals.
AFI, the Cheese Importers Association and the American Council of Independent Laboratories have developed a series of legislative concepts based on improved computer capabilities for FDA, increased funding for FDA, certification of accredited third-party labs and adoption of the Food Protection Plan FDA proposed late last year.
The legislative concepts document can be seen in the members-only area of the AFI website at http://afi.mytradeassociation.org/3/legislativeconcepts.shtml. NEW YORK REGION
OFFERS E-MAIL ‘HOTLINE’ FDA’s New York Region instituted an “e-mail hotline” to help resolve issues with problem entries. When experiencing difficulty in communicating with compliance officers, it’s suggested an e-mail be sent to newyorkdetentionresponse@fda.hhs.gov. The FDA staffers who told AFI about the hotline said two people handle inquiries to this e-mail address and they route the messages to the compliance officer. All e-mails to this address are logged in and saved. They added that filers should be as careful as possible when making entries to cut down on the need to correct mistakes through use of the hotline or other means. FDA ISSUES DRAFT GUIDANCE
ON LISTERIA MONOCYTOGENES FDA announced the availability of a draft guidance, “Guidance for Industry: Control of Listeria monocytogenes in Refrigerated or Frozen Ready-To-Eat Foods.” The draft guidance, when finalized, will complement FDA’s current good manufacturing practices (CGMP). FDA also issued a draft Compliance Policy Guide (CPG) on listeria monocytogenes which provides guidance for FDA staff on the agency’s enforcement policy. Comments on both guides should be submitted by April 7 to http://www.regulations.gov. FDA SEEKS OVERSEAS
SATELLITE OFFICES
FDA is considering opening satellite offices in U.S. embassies overseas as part of its effort to improve the safety of food, medicine and other products coming into the U.S. FDA’s commissioner, Dr. Andrew von Eschenbach, said private companies have increased their presence overseas to ensure their suppliers meet standards for quality and safety so it’s time for the federal government to take a similar approach. Although specific resources dedicated to an overseas effort were not outlined, the commissioner said he could envision five regions where FDA inspectors and technical advisers could be staffed: China, India, Europe, Central and South America, and the Middle East.
CBP REVIEWS C-TPAT
ACHIEVEMENTS
Customs and Border Protection outlined 2007 achievements of the Customs-Trade Partnership Against Terrorism (C-TPAT). Among those included were: -
Supply chain security specialists visited manufacturing and logistics facilities in 79 countries, representing some of the most terrorist prone and high-risk areas of the world.
-
CBP validated 3,011 supply chains.
-
Of the 3,011 validations, 601 were revalidations.
-
2,601 new C-TPAT were certified with SAFE Port Act requirements.
-
C-TPAT Tier III status was granted to 17 companies.
-
CBP suspended or removed 112 companies for security breaches or failure to meet minimum security criteria.
-
Of the 112, 47 were either conditionally or fully reinstated after demonstrating immediate corrective action had been taken.
NEW REGULATIONS HOPE TO
IMPROVE CHINA IMPORTS/EXPORTS
On April 1 China’s General Administration of Customs will implement new regulations that are expected to reduce the costs and burdens associated with importing into and exporting from China for importers of record (IORs) with good trade compliance programs. The new regulations are intended to encourage informed trade compliance, improve the customs-trade partnership, continue China Customs’ modernization efforts and bring its policies and practices concerning trade compliance and facilitation and supply chain security more into line with those embodied by the World Customs Organization.
The major feature of the new regulations is the provision of specific trade facilitation benefits for importers/exporters that meet certain criteria. Based on their compliance records, internal controls, business performance and other information, IORs will be classified by China Customs into one of the following categories: AA, A, B, C and D. IORs in class B will continue to experience routine inspections and audits and slow customs release of their goods, while those in classes C and D will be subject to increased inspections and audits. IORs classified in classes A or AA, however, will receive the following benefits:
Class A. Class A IORs will be eligible for (a) inter-district remote filing and goods release at the port of entry; (b) Customs inspection at the IOR facility if necessary; (c) privileged rapid inspection and release; (d) advance customs entry and release before the goods arrive at the port of entry; (e) 24/7 urgent customs clearance; and (f) waiver of customs bond or cash deposit requirement for processing trade operations. Eligibility requirements include an annual import and export volume greater than $500,000, a customs entry error rate lower than 3 percent, operating as a Class B IOR for at least a year, and a clean record over the past 12 months concerning customs, trade and other relevant laws and regulations.
Class AA. Class AA IORs will receive all of the Class A benefits plus (a) rapid customs release for trusted clients; (b) a Customs account manager to answer customs and trade questions; (c) direct customs release after the entry passes electronic review; and (d) no cargo inspections under normal circumstances. Qualifications for Class AA include an annual import and export volume greater than $30 million, passing a customs audit and verification, meeting internal control, trade compliance and trade security requirements, submitting biannual import/export business reports and operating as a Class A IOR for at least a year.
Customs brokers will also be classified according to the new system. Importers are advised to be very careful in selecting a broker and to avoid hiring one classified under category C or D.
Multinational companies doing business in China are advised to act as IORs and to centralize their trade activities in that country if possible in order to more effectively deal with China Customs and other trade-related Chinese government agencies. FULL CONGRESSIONAL TRADE
AGENDA IN 2008
Senior trade staff from the House Ways and Means and Senate Finance Committees say the congressional trade agenda in 2008 will be a full one. The agenda includes: -
Trade adjustment assistance – A top trade policy priority includes renewal and expansion of the Trade Adjustment Assistance program. Because public support of globalization and trade liberalization is declining due to fear, people need to see that government is working to not only create a more open global economy but also to prepare its citizens to participate in that economy.
-
China – Legislation addressing a wide range of trade irritants with China, including intellectual property rights, currency valuation, import safety, and antidumping and countervailing duty rules, is likely to see action in both the House and Senate this year.
-
FTAa – While Bush administration officials continue to press Congress to approve legislation to implement the pending FTAs with Columbia, Panama and South Korea, the outlook is unclear.
-
Preference Programs – The Andean Trade Preference Act, the U.S.-Caribbean Basin Trade Partnership Act and the Generalized System of Preferences are all slated to expire in 2008.
-
Customs – Both the Ways and Means and Finance committees will consider customs reauthorization legislation this year. These bills are expected to address issues such as drawback reform, supply chain security, import safety, staffing and revenue protection.
AFI CONVENTION
APPROACHING QUICKLY
There’s still time to register for the upcoming AFI Convention, being held March 27-30 at the Hilton Clearwater Beach Resort in Clearwater Beach, Florida. This year’s convention program is one you won’t want to miss. Our keynote speaker, Pegotty Cooper, will demonstrate how the more you know about yourself, the easier it is to have what you want! “Breakthroughs in Personal Effectiveness” will leave attendees empowered with the tools to develop masterful practices and improve personal efficiency.
AFI’s convention theme, “Focus on Food Safety” promises to deliver practical solutions to the many challenges in food safety. Bill Pursley, vice president of food safety education at AIB, will detail how to establish proper verification procedures and select international suppliers which comply with food safety standards. John Bode, partner, Olsson Frank Weeda Terman Bode Matz, will outline the latest threats the food import industry is facing and highlight the steps AFI has taken and can take to address them. Peter Furth of FFF Associates will address product safety steps, quality control programs and product testing.
Members will also hear the latest information on global economic issues from Yoav Peled of IDB Bank and John Grieco of Bank Leumi. Dan Reilly of Tri-City Brokerage will be on hand to cover issues related to product recall insurance. Complete details are available on www.afius.org. With three networking receptions, two breakfasts, planned recreational activities and a Saturday evening dinner, the AFI convention is the perfect mix of educational sessions and networking events. We hope to see everyone there. If you have any questions on the AFI convention, please contact the AFI office. AFI TO HOST RECEPTION
AT SIAL MONTREAL
Attending SIAL Montreal? Make plans to attend AFI’s reception from 5:30 – 7:30 p.m., Thursday, April 24. AFI is partnering with the SIAL organizers to invite many suppliers to the reception to give both importers and suppliers an informal way to introduce themselves.
There is no cost to attend the reception, though pre-registration is requested. For complete details visit www.afius.org or call 732-922-3008. Mitsui Foods International announced the acquisition of San-Rallo Pasta Company. San Rallo’s product line includes a full range of authentic Italian ravioli, lasagna, manicotti, eggplant entrees and other Italian specialties. Effective immediately, San Rallo becomes a wholly owned, independently operated division of Mitsui Foods International.
New Member Update
In our last newsletter we welcomed Gold Harbor Ingredients of Seattle, Washington as a new member. The correct company name is Gold Harbor Commodities, Inc. The following companies were approved for membership in AFI by the Board of Directors at its February 13 meeting. Conservas y Congelados de Puerto Montt S.A., Puerto Montt, Chile – supplier of canned and frozen fish and shellfish
Moli d’Oli Gasull S.L., Reus, Spain – producer of extra virgin olive oil
SITA, S.A., Abidjan, Ivory Coast – processor of cashew nuts
Sociedad Agricola San Jorge, Curacavi, Chile – supplier of extra virgin olive oil
Talat Elmas Tarim San. Tic. Ltd. Sti., Izmir, Turkey – processor, packer and exporter of dried fruits
The following companies were approved for membership in the National Honey Packers & Dealers Association at its annual meeting on January 9, 2008.
Smitty Bee Honey, Defiance, IA – packer of honey
Suzanne’s Specialties, New Brunswick, NJ – packer, importer and distributor of wildflower, clover and organic honey
The following company was approved for membership in the North American Olive Oil Association at its Mid-Year Meeting on January 11, 2008.
Mani Imports, West Sacramento, CA – distributor and wholesaler of olives and olive oil The 2008 AFI Convention will take place March 27-30 at the Hilton Clearwater Beach Resort in Clearwater Beach, Fla.
AFI will host a reception at SIAL Montreal on Thursday, April 24.
The North American Olive Oil Association Annual Meeting will take place June 27 in New York
AFI will host a reception at SIAL in Paris, October 19-23.
|
