Untitled Document

NEWSLETTER ARCHIVES


	12/ 17/07
Customs to Impose Penalties in Exchange for New “No Detention” Policy *Published by Sandler, Travis & Rosenberg, P.A. (December 10, 2007)* Apparel importers who have signed on to the Importer Self-Assessment program could be at higher risk for penalties as a result of a new U.S. Customs and Border Protection policy. The ISA program benefits importers that implement documented, CBP-approved internal controls for customs compliance by removing them from the pool of companies that may be subject to a Focused Assessment audit. But a new detention policy for ISA participants, which was developed on the theory that they should be even more compliant than non-participants, creates a big disincentive for apparel importers to join this program. The new policy provides that while shipments from factories considered high-risk for transshipment as a result of a visit by a Textile Production Verification Team (jump team) will not be detained pending the submission of production records, CBP will impose an automatic penalty in the event those records are deemed inadequate. Normally when a shipment identified as high-risk for transshipment arrives, it is detained pending submission of production records to substantiate origin. If CBP finds the documents inadequate, the shipment is refused admission. Rarely is the importer assessed a penalty in such cases. Under CBP's new detention policy for ISA participants, issued in TBT-07-021 (Nov. 13, 2007), such shipments will be conditionally released pending submission of production records. If such records are deemed inadequate, a redelivery notice will be issued and liquidated damages will be claimed if the goods cannot be redelivered. (This applies in any case where a shipment that was conditionally released is later determined to be inadmissible because CBP believes the production records do not substantiate origin and the goods were otherwise subject to quota). However, for ISA participants, in addition to liquidated damages, a penalty case under 19 USC 1592 will be initiated. Even if the importer has maintained custody of the goods and is able to redeliver them, a penalty will be initiated. In addition, the importer can be removed from the ISA program in the event of a second violation. It should be noted that this new policy will not apply to shipments from factories identified by a CBP jump team as having (1) falsely declared a country of origin, (2) been closed at the time of the visit and verified closed at the supposed time of production of the goods, or (3) never existed. In those cases, the goods will not be released, but instead subject to detention and possibly seizure in accordance with CBP's standard practice. For more information on CBP's new policy and how it may affect you, please contact: Beth C. Ring Matthew Nakachi New York, New York San Francisco, California Tel: (212) 883-1300 Tel: (415) 986-1088 Fax: (212) 883-0068 Fax: (415) 986-2271 bring@strtrade.com mnakachi@strtrade.com Senators Introduce Food-Safety Bill - Press Release of Senator Casey http://casey.senate.gov/record.cfm?id=288336 EAT SAFE Act of 2007 will help increase the safety of food and agriculture products WASHINGTON, DC- U.S. Senators Bob Casey (D-PA) and Chuck Grassley (R-IA) today introduced the first major bipartisan food safety bill. The Ending Agricultural Threats: Safeguarding America’s Food for Everyone otherwise known as the EAT SAFE Act of 2007 will address the problems of smuggled food and agriculture products which currently pose serious risks to our plants, animals and food and pose a threat to our nation’s health, economy and security. “In the wake of massive recalls of contaminated pet food and consumer warnings about the safety of various imported food products, ensuring the safety of food products and food ingredients has taken on a greater urgency,” said Casey. “The EAT SAFE Act addresses these serious risks by applying common-sense measures to protect our food and agricultural supply. I’m pleased to work with Senator Grassley on this important legislation.” "Americans have enjoyed the safest and most abundant food supply in the world, yet we're seeing consumer confidence continue to wane as food recalls are becoming all too common," Grassley said. "The EAT SAFE Act would help give assurance to consumers that the imported product they picked up at the grocery store is safe. I appreciate Senator Casey's work on this issue and am pleased to work with him." A September 2007 report issued by the President’s Interagency Working Group on Import Safety acknowledges that, “aspects of our present import system must be strengthened to promote security, safety, and trade for the benefit of American consumers.” Just one of the aspects that need to be strengthened is the detection of the mounting numbers of shipments of smuggled or otherwise illegally imported food and agricultural products coming into this country. The EAT SAFE Act as introduced would: Personnel and Training Authorize $25 million for FDA and USDA to hire additional personnel to detect and track smuggled food and agricultural products and provide food defense monitoring Authorize $1.7 million for food safety cross training for DHS Agricultural Specialists Authorize $4.8 million for agriculture cross training for DHS Border Patrol Agents Establish civil penalties for importers who circumvent the USDA import reinspection system Import Inspection and Testing Require private laboratories conducting tests on FDA-regulated products on behalf of importers to apply for and be certified by FDA Authorize FDA to develop a determination, certification, and audit process for these private laboratories, and authorizes FDA to collect user fees to cover certification costs Impose civil penalties for laboratories and/or importers who knowingly or conspire to falsify laboratory sampling results Establish civil penalties for importers who circumvent the USDA import reinspection system Public Notification Require USDA and FDA to provide public notice of identified smuggled products in commerce Require USDA and FDA to provide government-issued public notice on recalled food products, including comprehensive listings of all recalled items, and to develop consumer-friendly, searchable recalled product listings on their websites Data Sharing Direct USDA and HHS to develop intra-agency and inter-agency Memorandums of Understanding to ensure the sharing of all collected data related to foodborne pathogens, contaminants, and illnesses Food Safety Education Grants Authorize $3.5 million to establish a competitive grant program to provide funding for entities to engage in educational outreach partnerships and programs to provide health providers and their patients with information on foodborne pathogens and illness U.S. Department of Transportation *- NEWS RELEASE* http://www.fmcsa.dot.gov/about/news/news-releases/2007/121107.htm Truck drivers will continue to be limited to driving only 11 hours within a 14-hour duty period, after which they must go off duty for at least 10 hours under an Interim Final Rule (IFR) made public today by the Federal Motor Carrier Safety Administration (FMCSA). The IFR was developed after new data showed that safety levels have been maintained since the 11-hour driving limit was first implemented in 2003. "This proposal keeps in place hours-of-service limits that improve highway safety by ensuring that drivers are rested and ready to work," FMCSA Administrator John H. Hill said. "The data makes clear that these rules continue to protect drivers, make our roads safer and keep our economy moving." Hill noted that the agency also is working to finalize a proposed rule that would require drivers and trucking companies with serious or repeat hours-of-service violations to track their hours of service using electronic on-board recorders. The agency issued the new hours of service rule in response to the recent decision by the D.C. Circuit Court of Appeals vacating key provisions of the existing hours of service rules effective on December 27. In order to ensure no gap in coverage of these important safety rules, today's rule temporarily reinstates those two provisions while the agency gathers public comment on its actions and the underlying safety analysis before issuing a final rule. The IFR is available at: http://www.fmcsa.dot.gov/about/news/news-releases/2007/hos.pdf Port Board to Vote on Clean Trucks Fee Container charges would fund fleet turnover, air quality improvements Having approved a clean truck requirement last month that will ban old, dirty diesel trucks from the Port of Long Beach, the Long Beach Board of Harbor Commissioners on Monday, December 17, 2007, will consider a Clean Trucks Fee to help put a new generation of cleaner trucks into service. "Dirty diesel trucks are a major source of port-related air pollution and present an unacceptable health risk to the public," said Port Executive Director Richard D. Steinke. "The Clean Trucks Fee, if approved by the Board, would generate $1.6 billion to help fund cleaner trucks and reduce air pollution." The proposed fee would place a $35 charge on every loaded cargo container unit (twenty-foot equivalent unit, TEU) entering or leaving the Ports by short-haul (or "drayage") truck beginning June 1, 2008. The fee would not apply to containers entering or leaving the Ports by train and would end when the fleet of drayage trucks meets Clean Air Action Plan (CAAP) requirements in about 2012. In November the Long Beach and Los Angeles Boards of Harbor Commissioners approved a ban on old, dirty trucks that call at the ports. The regulation will result in an 80 percent reduction in emissions from drayage trucks by 2012. The ban will be phased in, beginning October 1, 2008 with a ban on all trucks built before 1989. By January 1, 2010, only trucks built after 1993 will be allowed, and by January 1 2012 all trucks must meet 2007 federal Environmental Protection Agency standards. "The ports do not own or operate the drayage trucks that serve port terminals," Steinke explained. "However, to achieve the aggressive clean-air goals outlined in the Clean Air Action Plan, we believe that a progressive ban on dirty trucks, followed by the proposed Clean Trucks Fee, would be the most direct way to cut air pollution and reduce public health risks." Importantly, Steinke said, the Port will use the funds to ensure that the old, polluting trucks will be scrapped and taken out of circulation, rather than continuing to work outside the ports. The Port of Los Angeles is considering a similar fee, so the Clean Trucks Fee would apply to the entire San Pedro Bay. The fees would be collected by the ports’ shipping terminals, and the trucks would be monitored for compliance by radio frequency tracking devices or similar identification technologies. All funds collected by the two ports would be used for the replacement of about 16,800 trucks by 2012 with clean diesel trucks, trucks fueled by liquefied natural gas (LNG), or other approved technologies that can achieve the 2007 standard adopted in the CAAP. "We acknowledge that this fee will result in additional costs to cargo owners and may ultimately increase slightly the cost of goods," Steinke said. "However, the ports cannot continue to effectively move goods without reducing air pollution and public health risks." The Board of Harbor Commissioners will meet Monday, December 17, at 1 p.m. to consider adopting the truck fee. The meeting will be at the Port Administration Building, 925 Harbor Plaza in Long Beach, and broadcast live on the web at www.polb.com. Bigger Ocean Containers Promise Big Savings Logistics Today The new 53-foot containers designed for containership transport are beginning to move from Asia to the US. Fresh from the assembly line, the first containers were loaded by APL at Chiwan, China and moved to the carrier’s Global Gateway South marine terminal in the Port of Los Angeles. APL has named the larger containers Ocean53. They are longer and wider than containers currently being used in ocean trade. Because of handing and the rugged experience of ocean travel, these containers are built to be tougher than those used in domestic US truck, rail and barge transportation. Among the other positives touted by APL are that the need for fewer containers will reduce their overall expense; reduce the need for handling meaning less port, rail and highway congestion; and improved transit times as shippers eliminate the need to transfer cargo from smaller ocean containers into 53-foot boxes at US distribution centers. The carrier claims that major retailers are already making use of the containers. They are able to load more freight onto containerships in Asia with few containers, notes Ron Widdows, APL CEO. “Our objective is to move big-box economics farther back in the supply chain to the point where products are manufactured in Asia,” he says. “We’re taking a step we believe will ultimately improve cargo handling efficiency, reduce congestion on land and save money for our customers. That’s big-box economics.” C-TPAT REMINDERS By Terre Meth, President - International Logistics Consulting From time-to-time the C-TPAT program takes the opportunity to remind its members of certain mandatory criteria in an effort to ensure the integrity of the global supply chain and improve overall security awareness. This message is being sent for that purpose. C-TPAT calls to the attention of all partners, and sea carriers in particular, the criteria regarding empty containers bound for the United States. Specifically, the criteria states: "Sea carriers must visually inspect all U.S.-bound empty containers, to include the interior of the container, at the foreign port of lading" Please ensure that your company is in full compliance with this and all other C-TPAT minimum criteria for sea carriers. To view the full sea carrier criteria, please visit the link below. http://www.cbp.gov/xp/cgov/import/commercial_enforcement/ctpat/security_criteria/sea_carrier_criteria/ Reminder for C-TPAT Importers: Filing Ocean Shipment Entries At Least 24 Hours Prior to Arrival C-TPAT importers who are currently NOT filing entry prior to the arrival of their cargo in the port of arrival are not receiving their full C-TPAT benefits, especially reduced examinations. To fully realize the reduced cargo examinations afforded to certified and validated C-TPAT importers, entry must be made to CBP as early in the importation process as possible, and at a minimum, of 24 hours prior to the cargo arriving to the first port of entry within the United States. The reason this is necessary is that C-TPAT benefits are aligned with a C-TPAT members’ importer of record number. The importer of record number only becomes known when entry is filed; importer of record numbers are not identified on manifest information. To receive full benefits, the entry should be filed prior to arrival of the cargo. This applies only to cargo imported via ocean transport (sea containers), and not to cargo arriving via other modes of transport. Please direct any questions regarding this notice to your assigned Supply Chain Security Specialist or send and e-mail to industry.partnerships@dhs.gov. http://www.cbp.gov/xp/cgov/import/commercial_enforcement/ctpat/c_tapt_importers.xml

From All Your Friends At

December 14, 2006

TO OUR VALUED CLIENTS:

I would like to update you on the status of the following trade bills currently in Congress:

VIETNAM: I have been informed by the Commerce Department that the official date that Vietnam will be inducted into the WTO is January 11, 2007. Any shipments exported on or after that date will NOT require any Visa/Quota. No decision has yet been reached on Visa/Quota requirements for shipments exported from January 1, 2007 to January 10, 2007. We will keep you apprized. Any shipments exported in 2006 still require Visa/Quota.

ANDEAN TRADE PREFERENCE ACT (ATPA): The ATPA for Colombia, Peru, Ecuador and Bolivia will remain in effect for 6 months from January 1, 2007. There will be an additional 6 month extension if both the USA and one of the 4 beneficiary countries complete the legislative process to approve a free trade act.

AFRICAN GROWTH AND OPPORTUNITY ACT (AGOA): The AGOA, which was scheduled to expire in 2007, will now be continued through 2012.

GENERAL SYSTEM OF PREFERENCE (GSP): The GSP has been extended through the end of 2008.

Should you require any additional information, please feel free to contact this office.

To all our clients, we extend our very best wishes for a Happy Holiday and a Happy, Healthy & Prosperous 2007!!

Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

October 12, 2006

TO OUR VALUED CLIENTS:

The Fish & Wildlife Bureau has informed us that, effective October 23, 2006, their fees will be applicable to EACH vendor in a shipment. (Example: 3 vendors to 1 consignee - fee x 3). This new policy applies to both imports and exports.

Should you have any questions, please feel free to contact this office.

Very truly yours,

Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

January 06, 2006

TO OUR VALUED CLIENTS:

We have just received the following information from the offices of Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP regarding potential penalties for importers, as well as brokers, with respect to the new MID requirements. I strongly sugest you read through this bulletin and adhere to all the requirements which Customs is setting forth:

I. Potential Penalties for Importers and Brokers as Customs Eliminates Textile Declarations, and Adopts New MID Requirements- On October 5, 2005, Customs and Border Protection published the following interim regulations in the Federal Register:

1. Elimination of Textile Declarations

Effective October 5th, 2005, Customs has eliminated the requirement that a textile declaration be submitted for all importations of textile and apparel products from all countries (including China as well as non-WTO members such as Vietnam). This applies to textile and apparel products classifiable in HTS Chapters 50 through 63 as well as luggage, handbags, hats and certain footwear.

2. Changes to Manufacturer Identification Code (""MID"") Requirements

Also effective October 5, 2005, Customs is now requiring importers of textile and apparel goods to provide an MID code which is derived from the name and address of the entity (i.e., factory) performing the origin-conferring process. Trading companies, sellers other than manufacturers, etc. cannot be used to create MIDs.

This code must be included on Form 3461 (Entry/Immediate Delivery), Form 7501 (Entry Summary), and in all electronic data transmissions that require identification of the manufacturer. In addition, if an entry is filed containing products from more than one manufacturer, the products of each manufacturer must be identified.

Entries and entry summaries in which the first two characters of the MID do not meet the country of origin ISO code, or are created from a company that is known to be a trading house or agent and not a manufacturer, will be rejected for failure to properly construct a MID. Customs advises that repetitive errors in the construction of MIDs for entries of textile or apparel products will result in the assessment of broker and importer penalties for failure to exercise reasonable care.

Importers should re-examine letter of credit and import documentation requirements to insure that the seller is providing the ""origin conferring"" factory name and address for each imported item.

3. Enforcement

Customs began enforcing these new rules for goods entered on or after November 19, 2005. Customs expects importers and brokers to exercise reasonable care in creating and reporting correct MID numbers on textile entries on the goods described above.

Brokers and importers must be aware of these new rules, and must document their compliance efforts to ensure that correct MID numbers are reported in the entry.

Where incorrect MID numbers are reported, it could place the importer and the broker at risk for penalties. Realistically, MID numbers are made to reflect the information contained in the sellers invoice. Brokers and importers should put their vendors/clients on notice that they should be advised when the shipping invoice does identify the origin conferring location. Importers have an affirmative obligation to contact vendors and identify the company and location where origin is conferred. If operations occur at more than one location they may have to perform a legal analysis to identify the origin conferring location.

Against this background brokers should adopt a system for reviewing commercial documents to identify the actual manufacturer in the documents, and for notifying their importers of goods which have been or currently are subject to quotas. The system should include a notice to each importer which should be retained by the broker. The notice should include the following concepts:

Notice: Reporting MID Numbers

Every Customs entry filed in the U.S. requires a manufacturer identification number (MID) to identify the source of the goods.
Where the goods are textiles, apparel, or other articles which are now or were previously subject to textile quotas, Customs requires the MID number to reflect the name and location of the manufacturer where the origin of the goods was conferred.
Articles subject to current or previous textile restraint are identified by a three digit number in parenthesis after the tariff provisions. These provisions include all textile and apparel provisions, and some textile luggage and footwear provisions)
In some cases, these goods could have been manufactured at more than one location. In these cases, the entry must reflect the location where country of origin was conferred.
As a general rule, when we prepare your entries, unless the manufacturer is identified in the shipping documents, the MID number will be made to reflect the name and address of the seller of the merchandise.( invoicing letterhead).
Where the origin of the goods was conferred from a different company or at a different location, you should make sure that this information is provided to us before entry.
While we regret that this places an additional burden on our clients, we cannot develop this information with out your assistance.
Finally Customs has announced that the filing of entries with incorrect MID numbers will be considered to be a violation of law, which is punishable by the assessment of substantial civil penalties. Penalties can be a multiple of loss of revenue on a substantial percentage of dutiable value.
Please contact the undersigned if you have any questions regarding this notice, and/or when you would like to identify shipments to us where the name and address on the invoice letterhead should not be used as a basis to prepare MID numbers

II. failure to provide non reimbursement certificates on entries subject to antidumping duties ""Add"" are likely to result in double add assessments

When entries are subject to ADD the importer must provide a certificate attesting to the fact that the ADD paid will not be reimbursed by the vendor. Failure to provide this certificate before entries are liquidated will result in double ADD assessments. (There are some variations in the rules based on the date of entry, but this rule applies to all entries filed on or after April 27, 1989).

In the past, Customs has issued CF 28’’s when ADD entries did not include the requisite certificate. This notice provided an opportunity to file missing ADD certificates. Customs has announced that it will discontinue issuing these CF 28’’s, and that protests contesting double ADD assessments will be denied where the add certificate was not on hand at the time of limitation.

It is recommended that brokers identify any unliquidated ADD entries and make sure that ADD certificates are on file. As usual the burden will be on the importer/broker to prove that the certificate was timely filed. If our office can be of any service in preparing your database, setting up systems, or in obtaining printouts of entries for your clients then please contact us."

Should you require any additional information, please feel free to contact this office.

Very truly yours,

Bill Ortiz

Executive Vice President

Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

November 29, 2005

TO OUR VALUED CLIENTS:

We have received numerous inquiries regarding the buying of quota in China in the coming year, 2006. Please see following bulletin received from the Textile Quota Bidding Committee in Shanghai, China:

Subject: First Bidding for China's 2006 Textile Quotas for Export to the US

Hong Kong Trade Development Council and the Shanghai Daily

28.11.2005

First Bidding for 2006 Textile Quotas for Export to the US

The Textile Quota Bidding Committee of the Ministry of Commerce (MOFCOM) issued a Notice on the First Bidding for 2006 Textile Quotas for Export to the US on 25 November 2005. The total amount available for bidding in 2006 will be 30% of the agreed export volume. The first bidding will cover 60% of this total.

The first bidding will take place between 08:00 on 6 December and 24:00 on 8 December 2005. Closing time for submitting bids is 24:00 on 8 December and the time for opening the bids is 10:00 on 9 December.

The bidding will be conducted electronically at http://www.stileintl.com/www.ec.com.cn and no written applications are accepted. Please refer to MOFCOM's notice for arrangements regarding online bidding.

Any enterprise meeting the qualifications for conducting export under the Implementing Rules for the Bidding of Textile Export Quotas, registered with the industrial and commercial administration departments, and with global export performance in relevant categories between January and September 2005, is eligible for submitting bids.

For details of the bidding process and the list of enterprises passing the preliminary examination, please visit MOFCOM's website in Chinese at:
http://wms.mofcom.gov.cn/aarticle/ztxx/ac/al/200511/20051100879885.html

For details of the Implementing Rules for the Bidding of Textile Export Quotas, please visit MOFCOM's website in Chinese at:
http://wms.mofcom.gov.cn/aarticle/ztxx/ac/al/200509/20050900413739.html

Shanghai Daily.Com

11-29-08

US textile quota bids to come in December

Chen Liying

2005-11-29 Beijing Time

CHINA will allow its textile exporters to begin bidding on next year's US quotas early next month, a move that follows a deal signed earlier this month to reimpose quotas on 21 categories of Chinese textile shipments to the United States.

The online auction, constituting 60 percent of all quotas set for public bidding for next year, will run from 8am on December 6 through midnight December 8, China's Ministry of Commerce said on its Website.

All companies that have exported the covered products from January to September this year can participate in the auction.

Quotas in each product category will be awarded to the high bidders, the ministry said. Results will be released on December 9.

China set aside 30 percent of next year's quotas for public bidding. The rest will be allocated to exporters based on their performance in the past year.

To secure a market-oriented result, the ministry said it will not consider bids that offer exceptionally high prices.

The minimum bid levels range from 0.10 yuan (12 US cents) to 1 yuan per 1,000 kilograms and from 0.2 yuan per dozen to 12 yuan per dozen, depending on the product, the ministry said.

China and the United States agreed on November 8 to restrict exports of 21 categories of Chinese textiles for three years starting next year, including cotton pants, knitwear, socks and bras.

The accord caps the annual growth of Chinese textile exports to the US at 10 percent to 17 percent for the coming three years. The annual growth limit for 2006 is between 10 percent and 15 percent.

The deal was widely hailed by domestic clothing exporters because it settled a nearly half-year trade dispute that caused a halt in shipments of some textiles, and it offered a predictable trade environment for their future business.

Lu Longsheng, general manager of Shanghai Flying Horse Import and Export Trade Co, said competition for US quotas will be more contested than for EU quotas because there are more participants.

"Over 28,000 companies are qualified for the bidding, which is 7,000 more than for the EU bidding," he said.

China's textile exports jumped 22 percent to US$55 billion in the first nine months of this year, according to Chinese Customs figures. The country posted a record US$162 billion trade surplus with the United States last year.

Should you have any questions, please feel free to contact this office.

Very truly yours,

Bill Ortiz

Executive Vice President

Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

November 23, 2005

TO OUR VALUED CLIENTS:

Please see following update received from the law offices of Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt: (Attached please see link to CITA Notice)

"CITA has decided not to implement quotas in response to any pending safeguard petitions, e.g., sleepwear (cat. 351/651), women's' and girls' woven shirts and blouses (cat. 341/641), etc. Accordingly, only those categories covered by the agreement will be subject to quota until such time as new petitions are filed, accepted and result in further requests for consultations. We will continue to monitor developments and advise should any new petitions be filed next year."

Should you require any additional information, please feel free to contact this office.

Very truly yours,

Bill Ortiz

Executive Vice President

Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

November 23, 2005

TO OUR VALUED CLIENTS:

Please see attached informational bulletin received from CITA which details the release of merchandise that has been embargoed and placed in either a bonded warhouse, a foreign trade zone or a General Order warehouse (GO).

The following categories are affected by this bulletin:

Category 338/339
Category 347/348
Category 352/652
Category 638/639
Category 647/648

Should you require any additional information, please feel free to contact this office.
Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

November 10, 2005

TO OUR VALUED CLIENTS:

In supplement to our previous newsletter regarding the new quota regulations for 2006, please see attached harmonized tariff description page for the categories which are EXEMPT from quota.

Should you have any questions, please feel free to contact this office.
Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

November 10, 2005

TO OUR VALUED CLIENTS:

Please read the attached signed agreement between the USA and China regarding the quotas on textiles and apparel. This signed copy outlines the documentation, electronic visas and quota limits covered by this agreement which is effective through 2008.

Should you have any questions, please feel free to contact this office.
Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

November 09, 2005

TO OUR VALUED CLIENTS:

Please see the attached correspondence received from the law offices of Sidley, Austin, Brown & Wood LLP regarding the negotiations which are going on with respect to China Safeguard/Quota. As you read this, please keep in mind that these are preliminary negotiations only. We will continue to keep you apprized on any and all new developments.

Should you have any questions, please feel free to contact this office.
Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

November 09, 2005

TO OUR VALUED CLIENTS:

Please see following update from the offices of Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt regarding China Safeguard on various categories as specified:

"A comprehensive three year agreement, effective Jan. 1, 2006 agreement has been signed, but few details have been released. However, it is being widely reported that the apparel and accessories categories covered by the agreement include, socks (including baby socks), cotton and man-made fiber knit shirts, woven shirts (in category 340/640), cotton, wool, man-made fiber and other vegetable fiber pants, brassieres, underwear, swimwear, wool suits. A number of textile categories, including but not limited to 200 and 222 are also being said to be covered. Some sources are stating that a provision would allow for early release of some or all embargoed goods, but again no details can yet be confirmed. Similarly, the agreement is said to include an electronic visa requirement and an exemption for certain fine gauge knit tops otherwise subject to quota in 338/ and 638/9. Unconfirmed reports also suggest that the U.S. agreed to show restraint before bring future safeguard actions against categories outside of the agreement, but is not barred from doing so under the agreement. While no numbers have been released, it is also being suggested that in certain core categories, such as 347/8, China has agreed to a smaller quota limit for 2006 than would otherwise have been available under safeguards, perhaps in return for release of some embargoed goods. We will confirm details, including those mentioned above, as soon as the agreement is released."

Should you have any questions, please feel free to contact this office.
Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd

-----------------------------------------------------------------------------------------------------------------------

November 07, 2005

TO OUR VALUED CLIENTS:

Please see attached article which ran in the Sunday, November 6, 2005 issue of the South China Morning Post. According to this article, a deal covering 2006-2008 is virtually finalized. We have also confirmed this with other sources in the industry. We will keep you advised when final details become available.

Should you have any questions, please feel free to contact this office.
Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

November 03, 2005

TO OUR VALUED CLIENTS:

Please see following update from the offices of Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt regarding China Safeguard on various categories as specified:

"In a sign that an overall agreement may be at hand (or that the U.S. is losing patience with China), the U.S. has announced that it has decided to extend until November 8, 2005, the period for making determinations on whether to request consultations with China regarding imports of women's and girls' cotton and man-made fiber shirts and blouses, not-knit (category 341/641); cotton and man-made fiber skirts (category 342/642); cotton and man-made fiber nightwear and pajamas (category 351/651); and cotton and man-made fiber swimwear (category 359-S/659-S). Separately, the U.S. has announced that it has accepted for consideration a petition submitted on behalf of a coalition of textile industry associations and a union representing textile and apparel workers for safeguard action limiting imports of cotton terry and other pile towels (category 363)."

Should you have any questions, please feel free to contact this office.

Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

October 14, 2005

TO OUR VALUED CLIENTS:

Attached please find chart detailing updated information regarding China Safeguard Quotas. Should you have any questions, please feel free to contact this office.

Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

October 14, 2005

TO OUR VALUED CLIENTS:

U.S. and Chinese government negotiators failed to reach an agreement during the fourth round of bilateral talks that just concluded in Beijing. No date has yet been set for follow-up talks. Accordingly, CITA will continue to process pending safeguard petitions. To read a statement released by the Office of the United States Trade Representative, you may go to the following website: http://www.ustr.gov/Document_Library/Spokesperson_Statements/Statement%20of_David_Spooner_USTR_Sp

Should you have any questions, please feel free to contact this office.

Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd

-----------------------------------------------------------------------------------------------------------------------

October 07, 2005

TO OUR VALUED CLIENTS:

In our ongoing effort to keep you updated regarding the China quota situation, please see the following information which was received from CITA. The below listed categories, which we mentioned in our previous newsletters, have been considered to be "threat based"; therefore, CITA will probably make a decision by the end of this year to enact quotas for these categories. The quotas would likely be effective in early 2006:

combed cotton yarn (category 301)
cotton knit shirts (category 338/339)
men's and boys' woven shirts (category 340/640)
cotton trousers (category 347/348)
brassieres and other body supporting garments (category 349/649)
underwear (category 352/652)
other synthetic filament fabric (category 620)
man-made fiber knit shirts (category 638/639)
man-made fiber trousers (category 647/648)

In addition, CITA has taken the following categories into consideration as being "threat based" and they may also have quotas in place by early 2006, if not sooner:

cheesecloth, batistes, lawns/voiles (category 226)
men's and boys' wool suits (category 443)
polyester filament fabric, light-weight (category 619)
men's and boys' man-made fiber coats and women's and girls' man-made fiber coats (category 634/635)

Should you require any additional information, please feel free to contact this office.

Very truly yours,

Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

October 06, 2005

TO OUR VALUED CLIENTS:

Effective October 5, 2005, the U.S. Customs Service has eliminated the requirement for the country of origin declaration that accompanies wearing apparel shipments. This document will no longer by rquired as one of the documents needed for Customs clearances.

The importer is responsible for identifying the actual entity who performs the "country of origin identifying procedure(s)" on the wearing apparel/textiles being imported. This identification can be either stated either on the commercial invoice or on a separate statement which must accompany the shipment. Please refer to the attached Federal Register.

Should you have any questions, please feel free to contact this office.

Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

October 03, 2005

TO OUR VALUED CLIENTS:

Please see attached announcement from the Commerce News regarding the categories listed below:

Category 345/645/646: Cotton and man-made fiber sweaters
Category 350/650: Cotton and man-made fiber dressing gowns and robes
Category 447: Men's and boy's wool trousers
Category 222: Knit fabric

Should you have any questions, please feel free to contact this office.

Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

September 29, 2005

TO OUR VALUED CLIENTS:

As per our last correspondence (dated September 23, 2005), the USA and China have completed their discussions regarding quotas. According to various sources, no agreement has been reached but another round of discussions will be scheduled in the near future. We will keep you apprized.

Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

September 16, 2005

To Our Valued Clients:

Attached please see chart detailing the projected embargo dates for the specified categories which will be effective if and when the proposed safeguards are put into effect.

Should you have any questions, please feel free to contact this office.

Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

September 14, 2005

To Our Valued Clients:

Please see the following notice which was received from the law offices of Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt regarding the renewal of safeguard petitions on categories which have closed in the year 2005.

"It is being widely reported that the following categories have been the subject of renewal safeguard petitions filed with CITA yesterday. The filings are intended to avoid any lengthy gap in quota coverage for early 2006, in the absence of a comprehensive multi year bilateral agreement.

338/339 – cotton knit shirts
340/640 – woven shirts
347/348 – cotton trousers
349/649 – brassieres
352/652 – underwear
638/639 – man made fiber(mmf) knit shirts
647/648 – mmf trousers
301 – combed cotton yarn
620 – synthetic filament fabric

CITA has 15 working days (October 5) to decide whether or not to accept these petitions. If accepted, a 30 day public comment period would follow."

Should you have any questions, please feel free to contact this office.

Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

September 14, 2005

To Our Valued Clients:

Attached is the final version of the operating procedures regarding implementation of the wood packaging materials (WPM) regulations.

I strongly suggest you read through it and advise your overseas shippers/suppliers of the new regulations which will be going into effect.

Should you have any questions, please feel free to contact this office.

Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

September 01, 2005

TO OUR VALUED CLIENTS:

The Committee for the Implementation of Textile Agreements (CITA) announced that they have made a decision regarding 2 textile categories. CITA determined that category 620 (synthetic filament fabric) and category 349/649 (manmade fiber/cotton brassieres and other body-supprting garments) will become quota categories. However, implementation date(s) hade not yet been published. We will keep you apprized as to when this occurs.

CITA also announced that they are extending, until October 1, 2005, the following categories with regard to the implementation of quota:

1) Category 345/645/646: cotton and manmade fiber sweaters
2) Category350/650: cotton and manmade fiber dressing gowns and robes
3) Category 447: mens' and boys' wool trousers
4) Category 222: knit fabric

We will, of course, continue to monitor these situations and keep you apprized of any updates as they become available. Should you have any questions, please feel free to contact this office.

Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

August 04, 2005

TO OUR VALUED CLIENTS:

As per my telephone conversation with Customs Headquarters in Washington, D.C., they have established a preliminary date of closing for category 647/648 (Manmade fiber trousers). The preliminary date for closing is August 2, 2005 at 4:00 PM. The actual closing date/time will be advised but this is a very close approximation.

Should you have any questions, please feel free to contact this office.

Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

August 04, 2005

TO OUR VALUED CLIENTS:

Attached is a press release received from Customs regarding new regulations for solid wood packaging material which will be strictly enforced as of September 16, 2005.

Please advise all your overseas suppliers as to the new regulations regarding the treatment of any wood products; i.e. pallets, crates, boxes, etc.

Should you have any questions, please feel free to contact this office.

Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

August 01, 2005

To Our Valued Clients:

Please click the following link, CITA has today announced that it is extending, until August 31, 2005, the time period for consideration of whether to request quota consultations with China vis-à-vis the following categories:

Other synthetic filament fabric; Category 619/620
Men’s and boys' wool trousers; Category 447
Cotton and man-made fiber dressing gowns and robes; Category 350/650
Cotton and man-made fiber brassieres; Category 349/649
Knit fabric; Category 222
Cotton and man-made fiber sweaters. Category 345/645

In a separate development, CITA also announced that it has agreed to accept for consideration requests for safeguard quota action on the following product categories:

Cotton, wool and man-made fiber socks; Category 332/432/632
Women’s and girls' cotton and man-made fiber woven shirts; Category 341/641
Cotton and man-made fiber skirts; Category 342/642
Cotton and man-made fiber nightwear; Category 351/651
Cotton and man-made fiber swimwear. Category 359/659

Please do not hesitate to contact us with any questions or to discuss the impact these developments may have upon your company.

Regards,
William Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

July 21, 2005

To Our Valued Clients:

Please click the link to see our latest update relative to the PierPASS program.

Very truly yours,
Milton Heid
President
Stile Associates Ltd

-----------------------------------------------------------------------------------------------------------------------

July 15, 2005

TO OUR VALUED CLIENTS:

We have been notified, unofficially, that category 638/639 will have a fill date of July 12, 2005. The time had not been determined yet and, again, this is UNOFFICIAL.

Should you have any questions, please feel free to contact this office.

Very truly yours,
Bill Ortiz
Executive Vice President

-----------------------------------------------------------------------------------------------------------------------

July 13, 2005

TO OUR VALUED CLIENTS:

We have just learned that Customs is due to announce today that category 347/348 officially closed on July 8, 2005 at 8:30 AM. Any entry submitted after that time on that date will be refused admission.

With respect to category 638/639, it officially went on hold as of yesterday, July 12, 2005 and Customs is still calculating the dozens.

We will keep you apprized of this situation. Should you have any questions, please feel free to contact this office.

Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

July 12, 2005

TO OUR VALUED CLIENTS:

Following please find updated status on categories 347/348 and 638/639:

As of today, July 12, 2005, category 638/639 is at 95% filled.

Category 347/348 is still on Customs hold: a date still has not been determined as to when the category filled.

Should you have any questions, please feel free to contact this office.

Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

July 8, 2005

TO OUR VALUED CLIENTS:

We have received the following updated information from U.S. Customs Headquarters in Washington, D.C.:

1) With respect to categories 338/339 and 352/652, the actual fill date was July 5, 2005 at 8:30 AM. Any entry presented after that date and time will be refused clearance.

2) With respect to category 347/348, Customs Headquarters has not officially given a date and time as to when this category will close because the figures are still being calculated.

Should you have any questions, please feel free to contact this office.

Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

June 24, 2005

TO OUR VALUED CLIENTS:

Please click the underlined to see the updated chart on China Safeguards. As you will note, based upon increased shipping, the embargoes for all categories are expected to occur at least one week earlier than the last projected dates.

Should you require any additional information, please feel free to contact this office.

Bill Ortiz
Executive Vice President

-----------------------------------------------------------------------------------------------------------------------

June 16, 2005

TO OUR VALUED CLIENTS:

In supplement to our previous e-mail of June 7, 2005, please click below in red to a see revised chart of projected embargo dates relative to China Safeguards. Should you have any questions, please feel free to contact this office.

Bill Ortiz
Executive Vice President

-----------------------------------------------------------------------------------------------------------------------

June 07, 2005

TO OUR VALUED CLIENTS:

Please see estimated quota fill rate for the China safeguard categories, along with new China safeguard petitions for the categories shown on the attached chart. Please note, the projected embargo dates are only estimates and are subject to change.

We have attached the detailed chart in both Adobe and Excel formats. Please open whichever one is most easily accessible to you.

Should you have any questions, please feel free to contact this office.

William Ortiz
Executive Vice President

-----------------------------------------------------------------------------------------------------------------------

June 02, 2005

TO OUR VALUED CLIENTS:

Now may be a good time to re-visit the important issue of transshipments. As many of you know, CITA has imposed safeguard quotas on Chinese textiles and apparel goods.

These safeguard quotas may provide incentives for dishonest suppliers to transship goods through other countries (including countries in which we have negotiated free trade agreements) in order to ensure that their sales to the U.S. will remain unaffected. Certain overseas entities had become adept at transshipment techniques during the last 2-3 years of the quota regime, as you no doubt know.

Transshipment occurs when, for example, goods that are made in China are shipped through other countries prior to shipment to the U.S., and are falsely labeled/documented so that they appear to have originated from those other countries. Importers should carefully investigate any hints of changes in production location outside of China because U.S. Customs and Border Protection will be on the lookout for possible transshipment, particularly from Asia (Hong Kong, Macau, Nepal, Mongolia, Uzbekistan, Kazakhstan and countries in S.E. Asia), Mexico and Central American and Caribbean countries (including FTA-eligible countries where duty avoidance would result as well), and other points such as, but not limited to, Lesotho, Swaziland, UAE, Qatar, etc. Customs will expect importers to have compliance procedures in place to ensure that transshipment does not occur. *(Please see below for an excerpt from the the Customs Informed Compliance Manual, "Reasonable Care, A Checklist for Compliance")

There is a likelihood that merchandise subject to the new quotas will be transshipped in an effort to avoid the restriction. It is clear that U.S.

Customs, in expectance of transshipping, will increase scrutiny of shipments of quota merchandise and examine a higher percentage of those shipments. It is very important that importers do not knowingly engage in or sanction transshipment so that, if Customs determines that the goods were actually transshipped, the importer only loses the goods (due to seizure) and is not exposed to penalties and other Customs enforcement action. However, as you know, lengthy detentions alone pose an enormous risk to your flow of goods, and in order to minimize the damage and exposure once goods are detained, it is important to respond proactively and quickly: for example, through on-site inspections and document verification.

Importers should exercise caution if a supplier:

1. changes the country of production without the prior approval of the importer, or requests approval for such a change;

2. claims to produce merchandise in a country which has no history of production of such merchandise;

3. is reluctant to provide specific details concerning the manufacturing site (its' capacity, location etc.);

4. does not permit the importer to inspect/review its goods during their production; or

5. refuses to identify any subcontractor.

It is important for importers to take whatever measures are necessary to inspect the goods during production to ensure that the goods were made in the country claimed by the supplier to be the country of origin. In other words, importers should confirm that no portion of the goods were made in China.

Transshipment can occur through any country. Countries that have historically been used as transshipment points for Chinese textile goods are:

a. Uzbekistan, Kazakhstan, Mongolia, Nepal;

b. Panama and other Central American and Caribbean countries;

c. Lesotho, Swaziland and other sub-Saharan African countries;

d. United Arab Emirates, Qatar and other Middle Eastern countries.

Perhaps, most importantly, a prudent importer has to be particularly wary if they are purchasing on a landed duty-paid basis, or under other circumstances where the importer does not control the entry documentation and, in many cases, does not see the entry documents. Along the same lines, it is tempting for U.S. buyers to think that if they are not the importer of record, they are not liable for transshipment. However, Customs will impose liability if they determine that the U.S. buyer had any knowledge or control over the transaction, regardless of the fact that the buyer was not the importer of record. Moreover, the costs of defending a transshipment allegation, not to mention the loss of time caused by the detention itself, should be sufficient incentive for importers to carefully monitor these ways of doing business.

The only way to prevent transshipment, regardless of whether you are the actual importer, is for you or your agent to inspect the goods during the production process so that you can be sure that the goods were made in the claimed country of origin. Simply put, there is nothing wrong with importing from Uzbekistan, etc., if you know that each lot of your merchandise was actually produced there.

In the unfortunate event that your goods are detained by U.S. Customs on suspicion of transshipment, it is important to act IMMEDIATELY to defend the action and protect your interests. Customs requires an enormous amount of paperwork to establish the actual country of origin of suspect shipments. Quick action by the importer is not only the most effective but also the least expensive remedy.

* Customs states that in meeting the reasonable care standard when importing textile or apparel products an importer should, among other things, consider the following questions in attempting to ensure that the documentation, packaging and labeling is accurate as to the country of origin.

1. Has the importer had a prior relationship with the named party?

2. Has the importer had any detentions and/or seizures of textiles or apparel that were directly or indirectly produced, supplied or transported by the named party?

3. Has the importer visited the company's premises and determined the company has the capacity to produce the merchandise?

4. When a claim of an origin conferring process has been made, has the importer determined the named party ACTUALLY PERFORMED the required process?

5. Is the named party operating from the same country as represented on the documentation, packaging or labeling?

6. What is the status of any quotas on the merchandise? Are they at or near closing?

7. What is the history of the country regarding this merchandise?

8. Have you questioned your supplier with regard to the origin?

9. Have you scrutinized the documentation that would call its authenticity into question?

Please make certain that everyone in your organization who is involved in importing, ordering, and/ or buying from your overseas suppliers is made aware of this situation and understands the importance of avoiding any possibility of transshipments. Should you have any questions, please feel free to contact this office.

Bill Ortiz

Executive Vice President

Stile Associates Ltd.

-----------------------------------------------------------------------------------------------------------------------

May 27, 2005

To Our Valued Clients:

Please be advised that the United States has requested quota consultations with China for the following categories: 301, 340/640, 638/639 and 647/648. As a result any shipment exported on or after May 27, 2005 will be subject to quota. The quota period will run from May 27, 2005 through December 31, 2005. As in the past no visa or export license or electronic transmission (elvis) will be required.

Please see listed below the quota categories along with their fill rates.

Category	Quantity
301	1,450,777 kilograms
340/640	2,213,126 dozens
638/639	2,844,383 dozens
647/648	2,660,678 dozens

Should you have any questions regarding the aforementioned, please do not hesitate to contact this office and as usual we will keep you up to date with any new developments that may arise.

-----------------------------------------------------------------------------------------------------------------------

May 25, 2005

To Our Valued Clients:

Customs has issued a web link to monitor the above mentioned safeguard categories. This link will allow you to monitor the quota fill rates on a daily basis, which will help in determining if and when you should ship out merchandise that is covered under the safeguard quotas.

Please follow the link or simply click to visit Customs site: www.customs.gov/quotas/files/cntxtrpt.htm

We will keep you updated as information becomes available.

-----------------------------------------------------------------------------------------------------------------------

Volume 9, Issue 2 May 24, 2005

PierPASS program begins accepting applications for West Coast Ports

The PierPASS program affecting imported containers on the West Coast began accepting registrations today. The program has been established to entice importers to have their containers picked up from the steamship company’s yard during off-peak hours, and covers all ports on the West Coast.

All importers of full container loads that want to have their containers picked up during peak hours will have to register for the new program. Importers can obtain information about the program at pierpass.org and can register directly at pierpass-tmf.org.

Importers will have to pay a fee to PierPASS of $20 per 20’ container and $40 per 40’ container. This rate will stay in effect for several weeks during the initial period and then the rates will double. When importers register for PierPASS, they will have to give credit card information. At the time a container arrives in port the importer would go to the PierPASS website to authorize the payment by container number.

If the shipment is picked up during off-peak hours, the PierPASS fee will either be refunded to the importer’s account or held on account to be used for future shipments. Off-peak hours will be 6PM-3AM Monday through Friday and morning hours on Saturday. Truckers will not be allowed within the steamship company’s yard to pick up a container during peak hours if the fee has not already been paid. Payment will not be allowed at the dock, it must be paid prior to pick up through the registered account. The fee will not be required if the importer knows the container will be picked up during off-peak hours.

The fee collected per container will go directly to the steamship companies to offset the additional costs of maintaining the gates during off-peak hours. The program will be tested in mid-June and will become effective at the end of July, the actual start date to be determined at a later time.

PierPASS has an initial goal of 10-15% of containers being picked up during off-peak hours during the first year. It will be difficult for many importers to have their containers picked up during off-peak hours because they are not in a position to receive their freight except during business hours. Also, in a telephone survey of some trucking companies not all would be staffed to send drivers to the yards during the off-peak hours. In these situations importers will have to budget this additional fee as a cost of doing business until arrangements can be made to have containers picked up during the off-peak hours.

Importers should register for PierPASS as soon as possible so that they can test in June. Importers that have their containers picked up during regular business hours after the middle of July must have already established an account with PierPASS.

Memorial Day
Please remember that Monday, May 30th is a federal holiday and all customs offices will be closed. Stile Associates wishes all their clients an enjoyable holiday weekend.

-----------------------------------------------------------------------------------------------------------------------

May 23, 2005

To Our Valued Clients:

There has been some confusion regarding the reinstatement of the actual quota date for categories 338/339, 347/348 & 352/652. These categories will be subject to the new quota restraints based upon date of export. Any shipment exported on or after May 23, 2005 will be subject to the new quota restraints. Therefore the official count will start with any shipment exported on or after May 23, 2005.

We will keep you updated with any new information as it becomes available.

-----------------------------------------------------------------------------------------------------------------------

May 23, 2005

TO OUR VALUED CLIENTS:

Pursuant to our previous Valued Client letter with respect to the Chinese Safeguards. The following are the quota limits that Customs has posted as to the fill rate:

347/348 - 4,340,638 dozens
338/339 - 4,704,115 dozens
352/652 - 5,062,892 dozens

Presumably, Customs will soon post fill rates on its website on a daily basis as it has done in the past.

-----------------------------------------------------------------------------------------------------------------------

May 23, 2005

TO OUR VALUED CLIENTS:

The Administration reportedly formally delivered the consultation requests for 338/339, 347/348, and 352/652 today so the effective quota will be from May 23 to December 31, 2005. The U.S. Customs Service will start recording all dozens that are submitted on the brokers entries as of 5/23/05. BASED UPON THE IMPOSITION OF THESE SAFEGUARDS EARLIER THAN EXPECTED AND FILL RATES HIGHER THAN USED FOR PROJECTIONS, YOU SHOULD EXPECT EMBARGOES BY THE WEEK OF JULY 4TH 2005. PLEASE NOTE THAT THESE ARE JUST ESTIMATES BASED UPON THE GOVERNMENTS PROJECTIONS.

We will keep you updated as soon as new information becomes available.

If you have any questions feel free to contact us.

--------------------------------------------------------------------------------------------------

May 19, 2005

To: Our Valued Clients

In our continuing effort to keep you up to date on developments concerning the China Quota situation, please be advised that the Committee for the Implementation of Textile Agreement (CITA) announced today that 4 categories have been considered a threat to disrupt U.S. markets and have asked the government of China for immediate consultations with regards to the re-instatement of quota. The 4 categories are:

340/640 Cotton/manmade fiber shirts
647/648 Manmade fiber trousers
638/639 Knit manmade fiber blouses
301 Cotton yarn

Once again, we have no anticipated date as to when, and if, the quota will go into effect but we will continue to monitor the situation and keep you apprized.

Very truly yours,
Bill Ortiz
Stile Associates Ltd.

--------------------------------------------------------------------------------------------------

May 16, 2005

TO OUR VALUED CLIENTS:

In an on going effort to keep you apprised of the quota situation in China, on Friday evening a press release was issued announcing that the U.S. will request consultations with China in the next two weeks or so. These consultations will result in the U.S. government asking the Chinese to reinstate quota on the three categories which are considered a possible threat. The three categories are 347/348, 338/339 and 352/652. We will keep you informed as to the actual date the new quota will go into effect.

The possible restraint limits which have been talked about will be as follows: category 347/348 will be between 4.1 to 4.2 million dozens and 338/339 4.5 to 4.6 million and 352/652 4.8 to 4.9 million dozens. Again, this is not an official number but the number that we have been told can possibly be the quota limit.

As further information becomes available we will keep you updated.

If you have any questions, please feel free to contact us.

--------------------------------------------------------------------------------------------------

Volume 9, Issue 1 May 9, 2005

New program planned to ease congestion at West Coast Ports

The West Coast ports, Los Angeles/Long Beach in particular, have seen a steady increase in containers arriving over the past several years. The increase of approximately 15% of imported containers yearly has caused freeway congestion in and around the ports, long waits for truckers to pick up containers, and poor air quality.

Now the terminal operators are facing possible government mandated changes to reduce port congestion. A California Assembly bill was proposed to force the terminals to keep their gates open longer and have containers picked up after peak hours.

The West Coast terminal operators are now addressing the problem internally and are testing a new program. PierPASS is in the testing phase now to ease truck congestion in the port area during peak hours of 8 AM/5 PM, Monday through Friday. At the present time PierPASS is scheduled to be operational on July 1st but that date will most likely be pushed back. Affiliated Computer Services is the technology company hired by the terminal operators to develop software for PierPASS. They are still not set up for importers to register for the program.

Once the program becomes operational a fee of $40 per forty foot container will be charged to the cargo owner before pick up is allowed. If the container is picked up during off peak hours the owner will receive either a refund of the fee or a credit to be used on future shipments. After a one month roll out period the fee will most likely increase to $80 per forty-foot container.

Importers must open an account with Affiliated Computer Services to pay the fee either through the internet, credit card or an approved billable account. The money collected from the program will then be forwarded directly to the terminal operators to offset the labor costs and equipment requirements to remain open during off peak hours.

At the present time applications are not being accepted. Please check the website pierpass.org for additional information and to register your name to receive updates directly. Importers are also urged to register as soon as the website allows to avoid any delay in picking up cargo once the program becomes operational.

The goal of PierPASS is to have 15-20% of all containers picked up in off peak hours the first year, increasing to 40% by the third year.

--------------------------------------------------------------------------------------------------
May 5, 2005

TO OUR VALUED CLIENTS:

We have been informed that Customs will be conducting a Compliance Exam Blitz on ceramic tile from Italy. This was previously done in Miami and will now be conducted in New York. Please be advised that you may experience delays in this area as freight may be set up for more intensive exam than what you are accustomed to.

Should you have any questions, please feel free to contact this office.

Very truly yours,
William Ortiz
Executive Vice President
Stile Associates Ltd.

--------------------------------------------------------------------------------------------------

April 28, 2005

To Our Valued Clients:

Following is latest news received from Alan G. Lebowitz, Esq. from the law firm of Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt, LLP:

Earlier today, the Federal Circuit Court of Appeals stayed the preliminary injunction issued by the Court of International Trade last December against so-called threat based petitions. Thus, CITA is free to again consider the 12 threat-based petitions filed during the last quarter of 2004 - unless this same court eventually issues a final decision endorsing the issuance of preliminary injunctions. In this regard, oral argument on the Government’s appeal of the preliminary injunction is scheduled for next week.

If the preliminary petition is dissolved, today's development could have several potential consequences. First, new quotas could be in place sooner, i.e., within a few weeks rather than a month or two. In most cases, an earlier effective date translates into a smaller quota base limit. Second, if threat based petitions again become "legitimate", it is less likely that there will be a lengthy quota free period at the beginning of the next quota year. That is, threat based petitions could be filed during the 4th quarter of 2005 resulting in 2006 quotas becoming effective in Jan. or Feb. of 2006. In contrast, if domestic industry had to wait three months to capture actual 2006 import data before filing petitions, 2006 quotas would not likely be effective before May or June of 2006, at the earliest

William Ortiz
Executive Vice President
Stile Associates Ltd.

--------------------------------------------------------------------------------------------------

April 26, 2005

To Our Valued Clients:
Following is the latest update regarding China Safeguard:

In anticipation of possible quota safeguard/embargoes, CITA has warned the importing community that, if quotas are re-established and are filled anytime during the calendar year 2005, affected categories will be subject to staged entry upon re-opening in 2006. Example: category 339/338 fills on October 10, 2005. Normally, category would re-open on January 1, 2006, but it will not re-open until February 1, 2006 and, depending on the volume of merchandise being stored in U.S. warehouses, CITA will allow only 5% per month of the applicable safeguard limit that was established in 2005.

As soon as any additional information is received regarding the actual implementation of safeguard quotas, we will advise you.

Very truly yours,
Bill Ortiz
Executive Vice President
Stile Associates Ltd.

--------------------------------------------------------------------------------------------------

ASIAN BUSINESS NEWS

China May Sharply Raise Tariffs
To Rein In Its Textile Exports

By MEI FONG
Staff Reporter of THE WALL STREET JOURNAL

April 20, 2005; Page A2

HONG KONG - China is set to impose sharply higher tariffs on textile exports to try to head off a protectionist backlash in overseas markets as its garment sales soar, manufacturers and retailers say.

Janet Fox, international merchandising director for J.C. Penney Corp., one of the biggest importers of textiles and apparel in the U.S., said she expected Beijing would raise duties to as much as 50 U.S. cents per item from between two and three cents, and the tariffs could kick in as early as May 1. "Manufacturers will be hard hit," she said.

Other people familiar with the matter said they had heard reports of similar tariff figures, which probably would hit categories where exports have jumped the most, such as shirts and cotton trousers. Officials from the China Chamber of Commerce for the Import and Export of Textiles yesterday declined to confirm or deny the reports.

If implemented, such a move probably would rein in exports sharply by biting into garment makers' slim margins, and could even put some low-cost producers out of business, industry analysts said.

The impact will be "huge," said Harry Lee, managing director of Hong Kong-based shirt maker TAL Apparel Ltd., which has manufacturing facilities in southern China. He said the expected move could raise TAL's export tariffs tenfold to about US$3.5 million each year.

Chinese textile exports surged 29% in the first three months of the year compared with a year earlier, according to China's official Xinhua news agency, which didn't give a value. Sales took off, particularly to the U.S. and Europe, after a decades-old global quota system was scrapped last year.

Global pressure for Beijing to rein in garment exports has intensified in recent weeks. But economists caution that export growth, while eye-catching, comes off a low base as China had relatively little U.S. or European market share in some garment categories before global quotas were lifted.

In addition, although U.S. apparel and textile imports from China have risen sharply this year, total U.S. textile imports haven't. Analysts said this suggests that U.S. buyers are merely diverting purchases from other parts of the world to China, which might offer better logistical support or cheaper products. Curbing imports from China would do little to help the ailing U.S. textile and clothing industry, the analysts said.

The overall U.S. trade deficit pushed to a monthly record in February of $61.04 billion, providing fuel to critics in Congress urging the U.S. administration to more aggressively combat unfair trading practices.

Initially, Beijing brushed off foreign criticism and stridently asserted its rights to enjoy free trade in textiles. But it has softened its rhetoric in recent weeks following indications that the country could soon face fresh quotas and antidumping lawsuits.

Jacqueline Peltier, president of the Foreign Trade Association, which represents the interests of the European industry, warned China-based manufacturers at a seminar in Hong Kong yesterday that the European Union could impose safeguard quotas soon. The European Commission said last week that it would decide by April 25 whether it would launch a process that could lead to curbs on Chinese imports, similar to a probe launched by the U.S. Commerce Department early this month.

Industry analysts say Beijing also is considering a minimum pricing scheme and a self-restraint system among makers in which each company would agree to export set amounts based on an overall arrangement jointly agreed upon by Chinese authorities and companies. But unlike tariffs, such plans would be difficult to implement quickly. Existing tariffs, which Beijing pre-emptorily announced in December, have been criticized as inadequate.

Raising export duties is "the best and quickest way for China to show it is proactive," says Willy Lin, vice chairman of the Hong Kong Textile Council.

"Our target will be focused on export quantities, for which both administrative measures by government and self-restriction measures by corporations will be considered and carried out," said Cao Xinyu, vice chairman of the China Chamber of Commerce for the Import and Export of Textiles.

Analysts say if export duties are raised a lot, manufacturers will likely divert some production to Hong Kong and Macau, where garment exports have plunged in recent months. Paul McKenzie, an analyst with CLSA Asia-Pacific Markets, said higher tariffs could encourage illegal trans-shipments and arrangements in which partially assembled pieces of clothing from China are shipped to other countries just to be tagged and finished. It was thought that the end of the quota system would reduce these kinds of inefficient and exp

12/ 17/07

Customs to Impose Penalties in Exchange for New “No Detention” Policy Published by Sandler, Travis & Rosenberg, P.A. (December 10, 2007)

Customs to Impose Penalties in Exchange for New “No Detention” Policy
Published by Sandler, Travis & Rosenberg, P.A. (December 10, 2007)