FDA Revises Regulations on Prior Notice for Food Imports

(World Trade Interactive)

The Food and Drug Administration has issued a final rule that makes a number of changes to its regulations on the submission of prior notice for food that is imported or offered for import into the U.S. Prior notice has been required under the Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (the Bioterrorism Act) since Dec. 12, 2003. This final rule will be effective approximately May 7, 2009 (180 days after Nov. 7, the date on which the rule will be published in the Federal Register). FDA Prior Notice (259 pages PDF)

According to the FDA, the final rule requires prior notice to be submitted electronically via either the Automated Broker Interface or the FDA’s Prior Notice System Interface. As is already the case, the information must be electronically submitted and confirmed as facially complete by the FDA for review no less than 8 hours (for food arriving by vessel), 4 hours (for food arriving by air or rail) or 2 hours (for food arriving by truck) before the food arrives at the port of arrival. Food that is imported or offered for import without adequate prior notice is subject to refusal and, if refused, must be held.

New Blueprints on Farm and Non-Farm Trade Issued for ‘Crucial’ Talks

(WTO)

The latest revisions of two papers including what could become the formulas for cutting tariffs and trade-distorting agricultural subsidies in a final deal were issued on 10 July 2008. They are the outcome of the latest discussions in negotiation groups and will be a focus of crucial talks combining these and some other subjects when a representative group of ministers meet in Geneva from 21 July.

The two documents are revisions of drafts previously circulated in July 2007, May and February 2008. They are the result of WTO member governments’ latest positions in the discussions since September 2007, one of the most intensive periods of negotiations since the Doha Round talks began in 2001.

They are agriculture negotiations chairperson Ambassador Crawford Falconer’s and non-agricultural market access (NAMA) chairperson Don Stephenson’s latest draft “modalities”.

Links: Agriculture text & NAMA text.

U.S. Farm Bill Addresses Transaction Value Interpretation

(Expeditors Newsflash)

On May 15, 2008, House Bill H.R. 2419, commonly known as the Food, Conservation, and Energy Act of 2008 or “Farm Bill”, passed the House and Senate and is now cleared for submission to the President. Language in the bill addresses U.S. Customs and Border Protection’s (CBP, Customs) January 24, 2008 proposal regarding transaction value of imported merchandise.

According to the bill, Customs will require importers to report, at the time of entry, “whether the transaction value of the imported merchandise is determined on the basis of the price paid by the buyer in the first or earlier sale occurring prior to introduction of the merchandise into the United States.”

This requirement would be effective for one year beginning 90 days after the date of the enactment of the Food, Conservation, and Energy Act. On a monthly basis during the one-year period, Customs would report the information provided by importers to the International Trade Commission (ITC). The report would include:

• the number of importers that declare the transaction value of the imported merchandise is determined on the basis of the price paid by the buyer in the first or earlier sale
• the tariff classification of imported merchandise
• the transaction value of the imported merchandise.

After the one-year reporting period, the ITC would report to Congress the following:

• the aggregate number of importers that declare the transaction value of the imported merchandise is determined on the basis of the price paid by the buyer in the first or earlier sale
• a description of the frequency of the use of the “first or earlier sale” determination method
• the tariff classification of imported merchandise, and an analysis on a sectoral basis
• the aggregate transaction value imported merchandise, and an analysis on a sectoral basis.

In a section of the bill titled “Sense of Congress Regarding Prohibition on Proposed Interpretation of the Term ‘Sold For Exportation to the United States’”, Congress noted that the Customs Commissioner should not implement a change to Customs’ interpretation of the term “sold for exportation to the United States,” as it relates to determining transaction value, before January 1, 2011, unless the Commissioner consults with, and provides notice to Congressional committees, the Commercial Operations Advisory Committee (COAC) and receives approval of the Secretary of the Treasury.

The full text of H.R. 2419, the Food, Conservation, and Energy Act of 2008 or “Farm Bill”, can be accessed online here (PDF format).