PRESIDENT’S REPORT
As this newsletter goes to press, we’re waiting and thinking we’ll continue to have to wait until January to know whether GSP will be extended and whether AFI’s duty eliminations and reductions will be extended. GSP is likely the easier to predict. In general, there’s great support within Congress for GSP. While some members of Congress would like to see changes made, it’s unlikely others in Congress will allow the program to lapse to address the requested changes. If GSP lapses, most expect it will be retroactively renewed sometime in January.
The duty reductions, thousands of which are combined into what’s called a Miscellaneous Tariff Bill, is another story. This, too, is typically an uneventful process; it’s designed to be just that. Only items that are non-controversial are included on the MTB, making it easier to pass. AFI was successful in getting eliminations/reductions in the past on processed artichokes, capers, pepperoncini, oysters and giardiniera. Although the MTB, like the GSP bill, is still in limbo, all the Is were dotted and the Ts were crossed as we pushed to get the eliminations/reductions extended, something which typically is something of a formality. All seemed to be going well when we got word that the Administration opposed extending the reduction on artichokes preserved in vinegar because it “diminishes leverage in negotiating reduced tariffs for U.S. agricultural exports.” The same explanation was given for the two pepperoncini provisions. The opposition for artichokes preserved other than in vinegar is said to be because such a reduction “could undermine U.S.-Chile FTA provisions. This is quite shocking because the artichoke duty reductions were in place before the U.S.-Chile FTA was finalized. We’re still trying to get our items back on the final MTB and will keep members apprised of any developments.
Food safety was named the biggest food story of the year in an annual year-end survey commissioned by Hunter Public Relations. I wouldn’t be surprised to see it as the top item in 2010 as well. The expected passage of food safety legislation will help keep the issue in the news.
I experienced a bit of nostalgia the other day when I read that the EU dispute with Latin American banana-producing nations was resolved. It was one of the very first issues I dealt with when I started working at AFI in 1996. The dispute involved the EU’s preferential treatment for banana producers from African and Caribbean countries, mainly former British and French colonies. The U.S. got involved because Chiquita sources most if its bananas from Central America. The U.S. and Ecuador won the right to impose trade sanctions on European goods after the World Trade Organization found the EU’s rules to be illegal. AFI members were impacted when some products they handled were included in the list of products subject to sanctions.
We thank members for their support throughout 2009 – whether it was in the form of writing legislators on key issues, placing an ad in the AFI Annual, serving on a committee or a corporate sponsorship.
2010 promises to be another year filled with many challenges and opportunities. The AFI staff stands ready to serve and encourages all members to fully participate and get the maximum benefit from their AFI membership.
Best wishes for a happy, healthy and prosperous 2010!
SENATE TO REINTRODUCE
TRADE REFORM BILL
Senators Byron Dorgan (D-ND) and Sherrod Brown (D-OH) announced they plan to reintroduce the Trade Reform, Accountability, Development and Employment (TRADE) Act. The Senate version of the bill is similar to a bill introduced in the House earlier this year.
According to the press release, the TRADE Act requires the Government Accountability Office to conduct a comprehensive review of existing trade agreements with an emphasis on economic results, enforcement and compliance along with an analysis of non-tariff provisions in trade agreements. It also establishes standards for labor and environmental protections as well as food and product safety. The TRADE Act also requires the president to create a plan to renegotiate current trade pacts prior to negotiating new agreements or congressional consideration of pending agreements and restores congressional oversight of trade agreements.
OIG STUDIES FDA’S
REGISTRATION REQUIREMENT
The Department of Health and Human Services’ (HHS) Office of Inspector General (OIG) published a report concerning industry compliance with the Food and Drug Administration’s (FDA) food facility registration requirement. The report is available at: http://www.oig.hhs.gov/oei/reports/oei-02-08-00060.pdf.
The OIG study was undertaken as part of its ongoing food safety work to determine the extent to which selected domestic food facilities (1) register with FDA and (2) provide complete and accurate information in their food facility registrations. The scope of the OIG study was limited to selected domestic facilities and its findings are not projectable to all food facilities subject to FDA’s registration requirement. The OIG studies 83 of the 118 facilities it reviewed previously in a study entitled, “Traceability in the Food Supply Chain,” as well as 58 additional facilities that were identified recipients of food from the 83 selected facilities.
OIF’s study found:
- Seven percent of the selected facilities either failed to register or failed to cancel their registration with FDA, as required;
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Almost half of the selected facilities failed to provide accurate information in their registrations;
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FDA regulations do not ensure FDA’s food facility registration database contains certain information that may be needed to locate a facility in an emergency; and
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Over half of the managers at the selected facilities were unaware of FDA’s food facility registration requirement.
Based on the findings, OIG recommends FDA:
1. Improve the accuracy of the information in the database by:
a. Seeking statutory authority to require facilities to re-register on a routine basis;
b. Consider seeking statutory authority to impose a registration fee;
c. Revising the registration process to allow for more checks as data are entered.
2. Consider seeking statutory authority to impose civil penalties through administrative proceedings against facilities that do not comply with the registration requirement.
3. Consider making some of the optional fields on the registration form mandatory (e.g., name of emergency contact person)
4. Work with the food industry to increase facilities’ awareness of the registration requirement
In comments responding to the OIG report, FDA stated it generally agrees with the OIG’s recommendations and noted provisions in pending food safety legislation would address many of the problems identified by the OIG.
FDA ISSUES DRAFT GUIDE
ON PATHOGENS IN DAIRY ITEMS
FDA announced the availability of a draft compliance guide on Dairy Products – Microbial Contaminants and Alkaline Phosphatase Activity. The CPG, when finalized, will provide guidance for FDA staff on its enforcement policies for pathogens and other indicators of inadequate pasteurization or post-pasteurization contamination of dairy products. While you can comment on CPGs at any time, to ensure the agency considers your comments on the draft CPG before it begins work on the final version, submit written or electronic comments by February 1 to http://www.regulations.gov.
FDA EXTENDS COMMENT TIME
ON ACRYLAMIDE ISSUE
FDA is extending to January 25, 2010 the comment period for the notice entitled “Acrylamide in Food; Request for Comments and for Scientific Data and Information,” that appeared in the August 26, 2009 Federal Register. Electronic comments and scientific data may be submitted to http://www.regulations.gov.
DHS OPENS
IMPORT SAFETY CENTER
The Department of Homeland Security announced the creation of the Import Safety Commercial Targeting and Analysis Center (CTAC) – a new facility developed to streamline and enhance federal efforts to address import safety issues. Located in Washington, D.C., CTAC is one of CBP’s six commercial targeting centers in the U.S. It specifically will target shipments of imported cargo, including food, for possible safety violations. CTAC will combine resources and manpower of CBP and other government agencies to protect the public from unsafe imported products by improving communication and information sharing and reducing redundant inspection activities.
-- COMMERCE DEPT. NEWS --
ITA PUBLISHES UPDATE
ON CHEESE DATA
The International Trade Administration issued quarterly updates to the list of foreign government subsidies on articles of cheese subject to an in-quota rate of duty for the period July 1 through September 30, 2009. The list is available at http://edocket.access.gpo.gov/2009/E9-29729.htm and includes subsidy programs implemented by the governments of Canada, Norway, Switzerland and the 27 member countries of the European Union.
COMMERCE UPDATES
TRADE AGENDA
The International Trade Administration set a June 2010 deadline for final action in a rulemaking proceeding on the conduct of sunset reviews of antidumping and countervailing duty proceedings. The ITA plans to add two definitions to provide shorthand expressions for 120-day and 240-day sunset reviews, provide deadlines for certain submissions, clarify the information to be provided by parties participating in a sunset review, clarify when the ITA will conduct a 120-day or a 240-day sunset review and provide time limits for actions to be taken by the ITA.
The ITA also plans to issue by November 2010 a final rule amending the regulations governing the certification of factual information submitted to the ITA by a person or their representative during AD and CV duty proceedings. The amendments are intended to strengthen the current certification requirements so it is clear what has been certified, by whom and when so parties and their counsel are aware of potential consequences of false certifications.
The National Oceanic and Atmospheric Administration could issue as early as this month an advanced notice of proposed rulemaking to implement provisions of the Marine Mammal Protection Act which require the Treasury Department to ban imports of fish and fish products from fisheries with bycatch of marine mammals in excess of U.S. standards and require Commerce to insist on reasonable proof from exporting nations of the effects on marine mammals of bycatch incidental to fisheries that harvest the fish and fish products to be imported.
NOAA also plans to issue a proposed rule that would ban the importation of commercial fish or products from fish that have been caught with commercial fishing technology that results in incidental mortality or serious injury of marine mammals in excess of U.S. standards.
An NOAA proposed rule revising procedures to monitor international trade in certain fishery products to meet requirements of the SAFE Ports Act, the Magnuson-Stevens Act, other applicable statutes and obligations that arise from U.S. participation in regional fishery management organizations is expected shortly.
NOAA could publish soon a final rule to set forth identification and certification procedures for nations whose vessels engage in illegal, unregulated and unreported fishing activities or bycatch of protected living marine resources pursuant to the High Seas Fishing Moratorium Protection Act. Based on the outcome of the certification procedures, nations could be subject to import prohibitions on certain fisheries products and other measures if they are not positively certified.
IT’S TIME TO PLAN FOR
2010 AFI CONVENTION
It’s time to begin making travel arrangements for the upcoming AFI Convention. The convention will take place April 29-May 1 at the Delray Beach Marriott in Delray Beach, Fla.
Hotel: The Delray Beach Marriott is a luxurious Mediterranean-style resort located on Florida’s Gold Coast. The discounted room rate is $169. Reservations can be made by calling the hotel directly at 561-274-3200 or by registering online at Delray Beach Marriott. Members traveling with their families are encouraged to make reservations as soon as possible.
Airfare: A travel discount has been negotiated with Continental Airlines. Continental offers discounts off published fares of 2 percent to 10 percent or zone fares. Call your travel professional or Continental Meeting Works at 800-468-7022 for reservations. When booking your reservation, please refer to Z-Code ZG6N and Agreement Code BC7M3S. Or save an additional 3 percent by booking your own reservation at:
http://www.continental.com/specials/group/meetingworks/reservations.asp by entering both the Z-code and Agreement Code without a space (ZG6NBC7M3S) in the Offer Code Box. Booking online avoids the $2 0 service fee collected per ticket through MeetingWorks reservations or any Continental Airlines ticketing facility.
Car Rental: A discount has been arranged with Dollar. Call 1-800-800-4000 or visit www.dollar.com and refer to Corporate Discount # CC1040.
Program: The convention will kick off Thursday evening with a welcoming reception. Presentations and meetings will take place Friday and Saturday mornings, with sporting activities and evening receptions on Friday and Saturday and a dinner Saturday evening. Watch your mail for complete program details.
Bonus Program on Olives: The 2010 AFI Convention will include a half-day program on issues impacting the olive industry. The olive program is tentatively scheduled to begin at 9 a.m. Thursday, April 29. Complete details will be sent shortly.
Sponsorships: Sponsorships are going fast. Contact AFI for complete details on sponsorship opportunities.
Early-Bird Registration: Within days you’ll receive information on early-bird registration. Register early and save!
AFI MEMBERSHIP CAN
SAVE YOU MONEY ON SHIPPING!
AFI and FedEx work together to bring you special FedEx discounts. Save up to 26 percent on select FedEx Express® shipping services, up to 20 percent on FedEx Express®Freight international services and up to 12 percent on select FedEx Ground® services. Also take advantage of discounts on FedEx Freight® and FedEx National LTL. There are no cost and no minimum shipping requirements to take advantage of this great member benefit. To enroll, visit: https://advantagemember.visionary.com/4719/ (use passcode KZ896808) or call 1-800-MEMBERS (1-800-636-2377).
LAST CHANCE TO ADVERTISE
IN THE AFI ANNUAL
The deadline is approaching to reserve your ad in the AFI Annual. Each year, thousands of copies of the AFI Annual are distributed to supermarket buyers, foodservice buyers, overseas suppliers, brokers and trade offices. It’s a year-round resource used by companies here and abroad that want to do business with the marketers, importers and import agents in AFI and its sections. By advertising, you identify yourself in a high-profile way with your association. You assure your company of the recognition it deserves in the industry, here and abroad.
Please reserve space by Jan. 15 to assure you are included in the 2010 edition. If you have any questions, please call the AFI office.
MEMBER NEWS
Olsson Frank Weeda Terman Bode Matz, PC announced that David A. Bieging, specializing in Public Policy, Agriculture, Food and Drug Law and Government Ethics, and Kathryn E. Balmford, specializing in Food, Drug, Medical Device and Advertising Law and Constitutional and Administrative Litigation, will become principals on January 1. AFI extends its congratulations to both David and Kathryn and wishes them continued success.
MEMBERSHIP NEWS
AFI welcomes new members.
The following companies were approved for membership in AFI by the Board of Directors at its November 13 meeting.
Overseas
Andre Laurent SAS, Blignicourt, France – producer of choucroute (sauerkraut)
San Jose Farms S.A., Gorbea, Chile – producer of fresh & dried berries
UPCOMING MEETINGS
National Honey Packers and Dealers Association Meeting: January 13, Wyndham Orlando Resort, Orlando, Fla.
North American Olive Oil Association Mid-Year Meeting: January 15, Grand Hyatt, San Francisco
2010 AFI Convention: April 29-May 1, Delray Beach Marriott, Delray Beach, Fla.
