13 May 2013

Did You Know? Issue 157

Date: 13th May 2013
1. Next Director General of WTO announced:  2. IPR/CW and Airworthiness changes3. USA BIS ITAR Amendments to EAR: 4. EU Report on dutiability of royalty payments & licence fees: 5. S&H Clients are Winners – Queen’s Award for International Trade 2013: 6. China Compulsory Certificate (CCC) website checker7. Thai Customs accepts 4th party invoices under ATIGA: 8. USA Report on Foreign Trade Barriers: 9. WTO Launches Trade Monitoring Database: 10. S&H Clients are Professionals – Exam success in International Trade 2012:
1. Next Director General of WTO announced:  Nine candidates were originally nominated by their respective governments for the post of WTO Director-General to succeed the current Director-General, Pascal Lamy, whose term of office expires on 31 August 2013. Though there is still a formal election expected in mid-May 2013 Pascal Lamy's successor will be the 1st Latin American leader in the WTO's history - Congratulations to Brazil’s Ambassador Roberto Carvalho de Azevedo. At an informal meeting of the Heads of Delegation on 8 May 2013, the three facilitators in the process of selecting the next WTO Director-General recommended Ambassador Roberto Carvalho de Azevêdo (Brazil) as the candidate who can gain consensus approval of WTO members. The facilitators suggested that members approve Amb. Azevêdo as Director-General at the General Council meeting on 14 May 2013.
Read news article  Read WTO statement
2. IPR/CW and Airworthiness changes: HMRC have issued a number of Customs Information Papers (CIPs) relating to recent adjustments to the administration of Inward Processing Relief (IP).  There is now also a new interactive Bill of Discharge – C99 – for anyone reporting the discharge of imported goods under the IP Simplified Scheme applied for at the time of arrival CLICK HEREhttp://www.hmrc.gov.uk/forms/c99.pdf
  1. Customs Information Paper (13) 28: Introduction of two new Customs Procedure Codes to allow goods to permit the Airworthiness Certificate Scheme (free circulation) to be claimed upon release from Customs Warehousing.
  2. Customs Information Paper (13) 27: IP Issues including: retrospective IP Authorisations, restriction of coverage of IP with a Simplified Authorisation, IP Authorisation holders’ and agents’ responsibilities.
  3. Customs Information Paper (13) 26: Notification of two European Court of Justice cases and their impact on businesses that operate/use a Customs Warehouse and/or operate Inward Processing.
  4. Customs Information Paper (13) 25: Updated guidance on IP requirements: Throughput period, Bills of Discharge and Compensatory Interest. 
3. USA BIS ITAR Amendments to EAR: The USA has been undergoing an Export Control Reform (ECR) removing some military items from the controls of the International Traffic in Arms Regulations (ITAR) to the simpler Export Administration Regulations (EAR).  The amendments have been published, though more are expected, and the changes will come into force later this year.  They include the introduction of a USA EAR 600 series code to indicate products military items not controlled under ITAR.  For those that have not started reviewing the update you have to October 15, 2013.   A couple of other things are that License Exceptions (LE) are to be applicable to in-country transfers, as long as you meet the criteria for re-exports in the LE and the validity of licenses will be extended from 2 yrs to 4 yrs. LINK TO FR Note that Federal Register publication right after the EAR one is the modification to ITAR at this time only 3 USML categories have been included. In addition both of the updated regulations now contain definitions of specially designed. USA BIS will soon have tools on the BIS website (www.bis.doc.gov) to help companies go through the new "order of review" to classify your product. There will also be a tool for "specially designed."  Strong & Herd LLP are holding a one-day Executive Overview of the changes in London 14th June 2013.  For further information contact sandraw@strongandherd.co.uk – it will be on our website later this week.
4. EU Report on dutiability of royalty payments & licence fees: The report was published last year but looks at how the GATT valuation rules work within the new WTO Valuation Agreement in particular to do with royalty fees but it also gives an overview of valuation rules in the EU.  CLICK HERE for full document
5. S&H Clients are Winners – Queen’s Award for International Trade 2013: We are pleased to announce that, yet again, a number of our clients were granted the Queen’s Award for International Trade.  Congratulations to all the 152 companies who won the Queen's Award this year but an extra special congratulations to the 14 Strong & Herd LLP clients who won this award.
  • BMT Defence Services Ltd
  • De La Rue International Limited
  • Elekta Ltd
  • ETL Systems Ltd
  • Fort Vale Engineering Limited
  • Isoprime Ltd
  • Limbs & Things Limited
  • London & Scandinavian Metallurgical Co Limited
  • Niftylift Ltd (International Trade)
  • Pentland Group plc
  • Regatta Ltd
  • TENMAT Ltd
  • Tyrrells Potato Crisps Ltd
  • Weir Minerals Europe Limited
Click here for full list.  The Queen's Awards are made annually by HM The Queen, and are only given for the highest levels of excellence demonstrated in each category. There is also an individual award, Enterprise Promotion, which is granted to people who play a significant role in promoting enterprise skills and encourage entrepreneurial attitudes in others in the UK. Entry to the Queen's Awards can be made between 21 April and the last working day of September every year, and it is free to enter. However there may be some cost incurred in accumulating the appropriate supporting paperwork.  Each Queen's Awards category has different entry criteria that you must meet before you enter. Will your company be a winner next year?  Have a go!  To find out whether you qualify to enter please see the guide on The Queen's Awards for Enterprise.
6. China Compulsory Certificate (CCC) website checker: CCC covers a lot of products and policies governing CCC keep changing, causing the reference lists to be very dynamic.  The China Compulsory Certification (CCC) is, in essence, a safety licensing requirement put in place by the government of China it is administered by the government agency Certification and Accreditation Administration (CNCA).   It requires manufacturers to obtain the CCC before exporting to China and/ or selling certain products in China – the products captured under CCC are specified in the CCC catalogue and it is linked to commodity code numbers. Products arriving in China not meeting CCC China Compulsory Certification requirements or without the evidence that they are compliant may be held at the border by Chinese Customs Authorities and will be subject to other penalties.The easiest thing to do to keep updated is focus on a few product lines.  Here are some useful website links: 
New product categories have been added to the CCC China Compulsory Certification catalogue (http://china-ccc-certification.com/ccc-catalogue.asp ).

The application process for the CCC China Compulsory Certification can take about ninety man-days or longer and it requires the submission of numerous technical documents, a product sample and testing at accredited laboratories in China.  General if goods require CCC self-certification or third-party testing results are not permitted.  In additions factory inspections by Chinese officials could be required (http://china-ccc-certification.com/642.html ) which can take 12 to 18 months at the applicant's expense, which could be several thousand dollars( http://china-ccc-certification.com/ccc-cost.asp ).
7. Thai Customs accepts 4th party invoices under ATIGA:In March 2013 Thai Customs announced that they would accept the principle that more than three countries should be allowed when using the ASEAN Trade In Goods Agreement (ATIGA) duty privileges.  For example a sales invoice may be issued by the 3rd country/ company in the chain and their name and country appear on the Form D.
8. USA Report on Foreign Trade Barriers: The Office of the U.S. Trade Representative (USTR) has posted their 2013 reports on foreign trade barriers.  The 2013 National Trade Estimate Report on Foreign Trade Barriers (NTE) is the 28th in an annual series that surveys significant foreign barriers to U.S. exports – though we believe it is useful to other countries too. This document is a companion piece to the President’s Trade Policy Agenda published in March 2013.  Click here for further information
9. WTO Launches Trade Monitoring Database: The WTO currently produces two series of "trade monitoring reports":
  • WTO-wide reports on trade-related developments covering the whole WTO membership and observers
  • joint reports with the Organization for Economic Co-operation and Development (OECD) and the UN Conference on Trade and Development (UNCTAD) on trade and investment measures taken by G-20 economies.
Historically they have been released on their website or in RSS feeds. Now they have launched a searchable Database of Trade Measures. The Trade Monitoring Database provides detailed information on trade measures implemented by WTO members and observers since October 2008. The database can be accessed at http://tmdb.wto.org/.
10. S&H Clients are Professionals – Exam success in International Trade 2012: Wednesday 1st May 2013 the Institute of Export & International Trade (IoE) held their annual graduation event at the Mansion House London (sponsored by Amber Road) for individuals who have passed their examinations in 2012 and Strong & Herd LLP are pleased to note a number of our clients in the winners listed.  The diplomas were presented by the Alderman and Sheriff of the City of London Jeffrey Evans in the splendour of the Lord Mayor of London’s residence the Mansion House in London.  Strong & Herd LLP would like to congratulate everyone who has passed an IoE examination but especially our clients and friends:
  • AGC = Spencer Waller (ACIT)
  • Alfa Laval = Bill Message (ACIT)
  • Baker Hughes = Mark Hill (CIT)
  • Business Support Solutions = Kathryn Hoggitt (ACIT)
  • Guler & Dinamik Customs Consultancy = Kenan Guler (CITA)
  • Guler & Dinamik Customs Consultancy = Cuneyt Yetgin (CITA)
  • Mothercare = Lyndsey Townsend (CIT and winner of the Prize for the Highest Marks in Introduction to International Trade Management)
  • Perry Slingsby Systems = Rachel Metcalfe (ACIT)
  • Spirent = Steve Shaw (ACIT)
  •  Sports Direct = Rachel Stockton (Diploma in International Trade and winner of the Prize for Highest Mark in Practical Global Trading)
  • Tyrrells Crisps = Sally Bridges (CIT)
  • Wesco Aircraft = Deborah Rushforth (ACIT)
  • Wesco Aircraft = Adrian Williamson (ACIT)
We look forward to seeing more of you here next year.
ACIT = Advanced Certificate in International Trade
CITA = Certified International Trade Advisor
CIT = Certificate in International Trade
Contact Strong & Herd
to discuss your requirements
0161 499 7000
0161 499 7100
Strong & Herd LLP, Manchester International Office Centre
Styal Road, Manchester, M22 5WB