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June 20, 2011

Softwood Lumber Program and Tax Announced

On June 16, 2011 the Agricultural Marketing Service (AMS) announced that domestic manufacturers and importers of softwood lumber had voted to approve the formation of a softwood lumber research and promotion program, meaning new assessments on softwood lumber will be required to support it.

A Federal Register notice published in April announced a referendum for the creation of a Softwood Lumber Research Promotion, Consumer Education and Industry Information Order. With the passage of the referendum, an assessment of $0.35 per thousand board feet, to be collected by Customs, will be required on imported softwood lumber classified in chapter 44 of the Harmonized Tariff Schedule of the U.S. (HTSUS).

The fee will apply to both imported and domestic softwood lumber shipments, with some exceptions:
- Assessments are not owed on the first 15 million board feet per fiscal year. Importers will receive a refund from the Board for any such assessments collected by Customs;
- Manufacturers/suppliers who domestically ship or import less than 15 million board feet per fiscal year can request a certificate of exemption from the Board, valid for one year;
- Exported softwood lumber is exempt from all assessments;
- 100 percent organic softwood lumber under an approved National Organic Program is also exempt.

The AMS newsroom, with a link to the news release, can be accessed online at:
http://www.ams.usda.gov/AMSv1.0/news

The Federal Register notice is available at:
http://www.gpo.gov/fdsys/pkg/FR-2011-04-22/pdf/2011-9397.pdf

 

Volcanoes Cause Renewed Flight Disruptions

The volcanic ash cloud produced by the Puyehue-Cordon-Caulle volcano in Chile has been further distributed by strong winds in the southern hemisphere. After experiencing some time with only limited flight disruptions, renewed flight diversions and cancellations are being seen by major airlines in South America as well as new expanded disruptions in the South Pacific region, affecting Australia and New Zealand.

To date the effect on flights has been varied as the airlines respond differently to the restrictions placed on flying in the impacted airspace. As a result, there have been and continue to be delays to air cargo shipments to and from these regions. Further, some airlines have stopped accepting cargo to and from the affected areas until such time where they can fly air cargo consistently and reliably.

Additionally, it was reported that the Nabro volcano in the east African country of Eritrea erupted this past Sunday releasing an ash cloud which has now spread out over Sudan and toward Saudi Arabia. This has resulted in the cancellation of many regional flights as well as some long-haul flights to and from the middle east/gulf states region. News reports indicate currently that the volcanic activity from the Nabro eruption may be subsiding.

The situation remains fluid and Tons continues to monitor the developments surrounding these airspace disruptions and their potential effect on customers' supply chains. For more information regarding any potential impact to your shipments, please contact your Expeditors representative.

 

CBP Seeks Comments on Petition for Penalty and Forfeiture Mitigation


On June 13, 2011 U.S. Customs and Border Protection (CBP) published a Federal Register notice requesting comments on the Petition for Remission or Mitigation of Forfeitures and Penalties Incurred, CBP form 4609.

As the notice explains, form 4609 "is completed and filed with the CBP Port Director by individuals who have been found to be in violation of one or more provisions of the Tariff Act of 1930, or other laws administered by the CBP. Persons who violate the Tariff Act are entitled to file a petition seeking mitigation of any statutory penalty imposed or remission of a statutory forfeiture incurred."

Comments should address:
- Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility
- The accuracy of the agency’s estimates of the burden of the collection of information
- Ways to enhance the quality, utility, and clarity of the information to be collected
- Ways to minimize the burden including the use of automated collection techniques or the use of other forms of information technology
- The annual costs burden to respondents or record keepers from the collection of information (a total capital/startup costs and operations and maintenance costs).

Comments will be accepted until October 12, 2011.

The full text of the Federal Register notice can be accessed online at:
http://www.gpo.gov/fdsys/pkg/FR-2011-06-13/pdf/2011-14503.pdf

 


Tons News, for current and past issues of Tons News by E-mail request from tonsnews@tonslogistics.com  or call (310) 338-0337.

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Tons News is compiled from a number of public sources that, to the best of Tons knowledge, are true and correct. It is our intent to present only accurate information. However, in the event any information contained herein is erroneous, Tons accepts no liability or responsibility.