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Global Partner for Personalized Logistics Services

Global Trade Updates

Over the course of its 107-year history, W.J. Byrnes has been continuing to raise the bar when it comes to logistics. It has transformed logistics from simply the transport of goods across the globe to a business strategy that gives customers a competitive edge in their businesses. More than just logistics services, W.J. Byrnes lends its industry expertise to enable customers to make intelligent choices.

"We advise our customers about our many services - we do not make decisions for them. We provide them with knowledge to help them decide which services give the best advantage," says John Leitner, president and CEO.

From freight forwarding, supply chain management and container services, to commodities expertise, customs clearance and international trade consulting, W.J. Byrnes provides integrated logistics services.

W.J. Byrnes has built an impressive portfolio of services made possible by extensive global connections. These connections enable W.J. Byrnes to obtain the most competitive rates. As a result, customers get cost-saving benefits from partnerships that the company has fostered for many years.

Moving away from a "one-size-fits-all" approach, W.J. Byrnes offers personalised services. The staff is well-trained to handle logistics concerns from customers across industries such as agriculture, alcoholic beverages, textiles, and biology and medical devices, to name a few.

One important location for W.J. Byrnes in terms of imports is China. With the growing disposable income of the Chinese middle class, W.J. Byrnes also considers the mainland a strong export market.

"The Chinese are developing a global perspective, and they have a global taste for products," Leitner says. "We aim to cater to this demand."

W.J. Byrnes is well-positioned to ferry increasing trade volumes between the United States and China and the rest of Asia with the help of its long-time partner, Swiss logistics firm M+R Spedag.

Aside from import and export activities, W.J. Byrnes also sees opportunities in providing its services to Chinese firms looking to establish their businesses in the US.

6% VAT on ALL Transportation Services in China Effective 01 August 2013
M+R China – 25 July 2013
In accordance with the new circular 37 of Cai Shui [2013] on “Tax Policy of VAT Pilot Program on Transportation & Modern Services Sector”, jointly issued by the Ministry of Finance (MOF) and the State Administration of Taxation (SAT) of the PRC on 24 May 2013, the related VAT tax policy will be expanded nationwide with effect from 1 August 2013. At the same time, the regulations of circular 37 will replace any earlier regulations governing the VAT pilot reform which commenced in selected cities in China from 1 January 2012.

A great deal of uncertainty remains however, to what extend circular 37 impacts pricing in the shipping sector. You might have heard that several carriers such as Maersk, OOCL and CMA have entered into bilateral discussions with the Chinese tax authorities, disputing whether the VAT has to be levied on international ocean freight, import and export.

Our partner in Asia, M+R, will follow these discussions closely and keep us informed, but unless there are further details from the government M+R and Byrnes will have to adhere to the regulations as stipulated in circular 37. According to these regulations the Modern Services Sector (Logistics and Ancillary Services) to which M+R China belongs is categorized as a general taxpayer. We will continue to post here any and all updates and clarifications we receive from our China partner, M+R China.

In compliance with the above-mentioned policy and the consensus of the industry and its main players, 6% Value-Added Tax (VAT) will be levied on top of every local charge in China. In addition, 6% VAT will also be levied on top of any China outbound shipment under prepaid terms (House or master BL/AWB level), as well as any China inbound shipment under collect terms (House or master BL/AWB level).This regulation applies for all modes of transports. Based on this update we are advising all clients to re-evaluate the INCOTERM used with China, as it could save paying the 6& VAT, provided the change in payment terms is acceptable to both parties.

The regulation will be implemented 1 August 2013 based on the issuance Date of the VAT Invoice, applicable to all shipments relating to Mainland China.

If there is any further change of the tax regulation, we will notify you via a post here and adjust our charges accordingly. We suggest you check here daily during this implementation period for any updates providing clarification or changes made.

Proposed Rule on FSVP

The proposed rule on FSVP requires that US-based importers or the US agents of foreign importers:

• Investigate the compliance status of their suppliers, including determining whether the suppliers have received FDA warning letters and import alerts or are the subject of certification requirements under the Food, Drug and Cosmetic Act;

• Analyze the hazards associated with each food they import and evaluate the likely scope of illness or injury should a hazard occur;

• Engage in verification activities such as on-site auditing of foreign suppliers, lot sampling and testing of food, and supplier food safety records reviews;

• Maintain a list of foreign suppliers and create and follow written procedures for verification activities;

• Have a mechanism for reviewing and investigating complaints and take appropriate corrective actions;

• Review and revise their FSVP every three years or more often if problems arise;

• Obtain a DUNS number to be provided with entry filings; and

• Maintain records substantiating compliance with all FSVP required activities.

The proposed rules on the FSVP also set forth a risk-based approach to foreign supplier verification, based on who is to control hazards that are reasonably likely to occur.

Relieved from certain FSVP requirements are importers of dietary supplements, very small imports, and importations from food suppliers in good compliance standing that the FDA has officially recognized as comparable to counterparts in the United States.

The proposed rule would exempt from FSVP requirements certain juice and seafood from facilities in compliance with federal safety regulations, food imported for research, food imported for personal consumption, alcoholic beverages, and food that is imported for further processing or transshipped.

Proposed Rule on Accreditation of Third-Party Auditors

FDA anticipates using certifications issued by accredited third-party auditors to facilitate VQIP in order to provide for expedited review and entry of food into the U.S. To participate in VQIP, importers must import food from certified facilities. In addition, under FSMA, FDA has authority to require certification under the Food, Drug and Cosmetic Act as a condition of entry for certain foods that FDA has determined pose a food safety risk. Such certifications may be provided by an accredited third-party auditor.

The proposed rule on the Accreditation of Third-Party Auditors contains:

• Procedures for recognition and accreditation;

• Requirements relating to monitoring and oversight of participating accreditation bodies and auditors; and

• Requirements relating to auditing and certification of foreign food facilities and food under the program and for notifying the FDA of conditions in an audited facility that could cause or contribute to a serious risk to the public health.

Apart from the proposed rule, FDA will also issue draft model accreditation standards to specify what qualifications a certification body must have to receive accreditation.

The FDA will look to the standards in place when FSMA was enacted for guidance, and will issue the Model Accreditation Standards in draft and open a docket to accept comments. Following review and consideration of comments received, FDA will finalize the standards.

ACE Single Window Document Image System

Attached is the presentation on EU - US Customs Mutual Recognition delivered at WESSCON 2012 Dr. Rohloff PPT

U.S. Customs and Border Protection have released expanded protocols to enforce Intellectual Property Rights at the Border. See the release below.
CBP IPR

Over the course of its 107-year history, W.J. Byrnes has been continuing to raise the bar when it comes to logistics. It has transformed logistics from simply the transport of goods across the globe to a business strategy that gives customers a competitive edge in their businesses. More than just logistics services, W.J. Byrnes lends its industry expertise to enable customers to make intelligent choices.

"We advise our customers about our many services - we do not make decisions for them. We provide them with knowledge to help them decide which services give the best advantage," says John Leitner, president and CEO.

From freight forwarding, supply chain management and container services, to commodities expertise, customs clearance and international trade consulting, W.J. Byrnes provides integrated logistics services.

W.J. Byrnes has built an impressive portfolio of services made possible by extensive global connections. These connections enable W.J. Byrnes to obtain the most competitive rates. As a result, customers get cost-saving benefits from partnerships that the company has fostered for many years.

Moving away from a "one-size-fits-all" approach, W.J. Byrnes offers personalised services. The staff is well-trained to handle logistics concerns from customers across industries such as agriculture, alcoholic beverages, textiles, and biology and medical devices, to name a few.

One important location for W.J. Byrnes in terms of imports is China. With the growing disposable income of the Chinese middle class, W.J. Byrnes also considers the mainland a strong export market.

"The Chinese are developing a global perspective, and they have a global taste for products," Leitner says. "We aim to cater to this demand."

W.J. Byrnes is well-positioned to ferry increasing trade volumes between the United States and China and the rest of Asia with the help of its long-time partner, Swiss logistics firm M+R Spedag.

Aside from import and export activities, W.J. Byrnes also sees opportunities in providing its services to Chinese firms looking to establish their businesses in the US.

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