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The Lacey Act!Wood, wood andmore wood...The Animal and Plant Health Inspection Servicehas issued a notice to inform the public of the newLacey Act provisions enacted by the 2008 FarmBill. This includes the declaration required to be

submitted at time of importation for certain plantsand plant products that takes effect on December15, 2008, and APHISʼ plan for phasing-in and en-forcing this requirement.

The new Lacey Act provisions expand the defini-tion of “plant” to mean any wild member of theplant kingdom, including roots, seeds, parts orproduct thereof, and including trees from either

NNOOVVEEMMBBEERR 22000088

Coppersmith is your full service global logistics provider.We are Committed! Connected! Complete! Call Now!

(Continued on page 2)

INSIDE THISISSUE

The Lacey Act! Wood, 1Wood and More Wood...

USDA APHIS Enforcement 3 of Permit Required...

New FDA Proposal to 3 Require Labeling of All...

Los Angeles/Long Beach 4 Port’s Clean Truck Program

Container Seals on 4 Maritime Cargo

The Consumer Product 5 Safety Improvement Act...

First Sale Declaration 6 Requirement

Congress Approves 6 Revised Bill to Extend GSP

Import Security Filing 7 10 + 2 Preparation

Mandatory Automated 8 Export System (AES) Filing

This newsletter is forCustomers of CoppersmithInc., and is for informationalpurposes only. Topicsincluded herein are takenfrom numerous sourcesand edited to provide anoverview of the subject andshould not be relied uponsolely for implementation orcompliance purposes. Wherepossible we have providedsources for more detailedinformation.

CoppersmithGlobalLogisticsServing theInternationalTradeCommunitySince 1948!

As we celebrate our 60th year in business, ourexpansion plans continue to flourish. The focalpoint of our plan is to meet the needs of our cus-tomers with exceptional products and services.We have been working diligently to enhance cur-rent vendor relationships and bridge new networksadding to our variety of resources.

� Full service logistics operations in all of ouroffices providing you personalized consistentsupport.

� Customer support tools including our state ofthe art web based tracking system. Our cus-tomers are now online tracking their shipmentsfrom PO at origin to delivery at destination.

� Internal data banks and processes to assistour staff members in responding to customer

requests quickly and effectively.

� Ongoing training programs to keep us on thecutting edge of our industry as well as our skillsfluent.

� Coppersmith is devoted to local, regional andnational association participation. This hasafforded us a wealth of knowledgeable wellconnected individuals with direct benefit to ourcustomers. This is where we stand apart from ourcompetition.

Coppersmith truly understands the need tocontinually strengthen the core principals of ourcompany as a means to offer complete customersatisfaction. This will be our dedicated focus formany years to come.

For continued receipt of our newsletterplease go to our website: coppersmith.com

and sign up for our e-mail newsletter

The Lacey Act! (Continued from page 1)

natural or planted forest stands. All such “plants” will requirean import declaration, except for those that are categoricallyexempt, or used exclusively as packaging material to support,protect, or carry another item, unless the packaging material it-self is the item being imported.

The declaration includes among other things the scientificname, value & quantity and the name of the country where theplant was taken.

Paper Declaration May Be VoluntarilySubmitted Effective December 15, 2008The Lacey Act, as amended, makes it unlawful, beginning De-cember 15, 2008, to import certain plants and plant productswithout an import declaration. However, APHIS will not enforcethe declaration as of that date. Its submission in paper formwill be voluntary. APHIS adds that no agencies with Lacey Actenforcement authority will bring prosecutions or forfeiture ac-tions for failing to complete the paper declaration form beforethe electronic system for data collection is available; however,any person who submits a paper form containing false infor-mation may be prosecuted.

Enforcement to be Phased-In OnceElectronic Declaration AvailableAPHIS intends to begin phasing in the enforcement of the dec-laration requirements upon activation of an electronic system.APHIS will publish a notice in the Federal Register announc-ing the specific dates on which enforcement of the declarationrequirements will begin, once the electronic system is nearcompletion. Once completed, all agencies with Lacey Act en-forcement authority will employ a phase-in approach to en-forcement of the Lacey Act declaration requirements.

The proposed phase-in enforcement schedule for theimport declaration for plants and plant products,

through September 30, 2009, can be viewed on ourwebsite at COPPERSMITH.COM.

NOTE: The USDAʼs Animal and Plant Health InspectionService held a public meeting on October 14, 2008 to dis-cuss the Lacey Act Amendment.

Textile and Apparel Goods:The definition of common cultivars (a categorical exemption) isexpected to include cotton, which would exempt cotton and itsproducts from the declaration requirements. In addition, otherplant-based textiles and their products are expected to be ex-empt from the declaration requirements.

Manuals, Hangtags, and LabelsAccompanying Products:Manuals and instructions, labels, and hangtags, which ac-company products, are not expected to require a declaration.

Plant-Based Plastics, Etc.:Plant-based plastics, polyethylene, adhesives, and cellulosicproducts are still under discussion, but are unlikely to requirea declaration.

Personal Use Shipments:Officials are leaning toward exempting personal use shipmentsfrom the declaration requirements.

Re-Imported Products:Officials have not yet discussed the issue of whether re-im-ported products would be subject to the declaration require-ment.

FTZ Shipments:The declaration would be required upon entry into the foreigntrade zone.

T&E, FROB, IE Shipments:Transportation and Exportation (T&E) shipments, ForeignCargo Remaining On Board (FROB), and Immediate Exporta-tion (IE) shipments would not be subject to the declaration re-quirement as they are not “imported”.

Carnets:Carnets have not been discussed yet, but officials are leaningtoward not requiring a declaration for carnets.

Importers Should Wait for ElectronicOption to File Declarations:Importers should not file any declarations until theelectronic option is available. Once the electronicsystem is up and running, importers need to be ready tosubmit the declaration according to the product phase-inschedule.

Comments May be Submitted:APHIS has previously stated that it will consider all commentsreceived by December 8, 2008.(See "http://edocket.access.gpo.gov/2008/pdf/E8-23984.pdf"for information on submitting comments.)

PAGE TWO NOVEMBER 2008

Coppersmith Inc. Global Logistics • www.coppersmith.com

NOVEMBER 2008 PAGE THREE

USDA APHIS Enforcement of Permit Required forProducts Containing Egg or Milk Ingredients

Please note that USDA APHIS has placed a HIGH EN-FORCEMENT priority on the importation of any products con-taining EGG or MILK ingredients. USDA regulations currentlyrequire a Veterinary Service Permit for products containing eggand milk ingredients from ANY REGION that is recognized asbeing a source of animal disease particularly Avian Influenzaand Foot & Mouth Disease.

Failure to obtain the permit has significant consequences, in-cluding detention, refusal and exportation or destruction. Ifthe products/country combination and processing is found torequire the permit and the permit was not obtained prior to im-portation there are NO EXCEPTIONS to the refusal of admis-sion and the products MUST be exported or destroyed asinstructed by USDA.

NOTE: This can include products such as seafood with a bat-ter or breaded covering, many baked goods, products madewith egg shells, drink mixes, ready to eat food products, etc.

IMPORTERS MUST CHECK WITH USDA TO DETERMINEIF THE COUNTRY AND PRODUCT THEY WANT TO IM-PORT REQUIRE THE VS PERMIT.

This is a very complicated and Coppersmith WILL NOT be ad-vising on this. Please contact our offices if you would like a re-ferral to an industry expert.

For more information on the APHIS Animal and Animal ProductImport program may be found at:

http://www.aphis.usda.gov/import_export/animals/animal_imports.shtml

APHIS, VSNational Center for Import and Export

4700 River Road, Unit 40Riverdale, MD 20737Tel. (301) 734-3277

New FDA Proposalto Require Labeling ofAll Denied Imported FoodThe FDA is proposing to require all owners or consignees ofimported food (including food for animals) to permanently affixto the shipping containers of food refused admission into theU.S., as well as any documents accompanying such food (in-cluding electronic documents), labels stating “UNITEDSTATES: REFUSED ENTRY.” The required phrase would haveto be in capital letters, in black ink on a white background, andin either Arial or Universe font style. The letters would have tobe at least 72 points in size for labels affixed to shipping con-tainers and at least 36 points in size for labels affixed to docu-ments.

The required label would have to be affixed to the shipping con-tainer of refused food. “Shipping Container” means an individ-ual container designed for shipping one or more immediatecontainers of the refused food, and an immediate container isany container that holds an imported food for retail sale. Thisdefinition of shipping container would include items such asboxes, bags, bottles, jars, tanks, drums, barrels and totes.

The label would also be required on all documents accompa-nying the refused food, such as bills of lading, bills of sale, air-way bills, packing lists and invoices, even when the shippingcontainer is labeled. This requirement would ensure that therejected status of the food is conveyed to the FDA, U.S. Cus-toms and Border Protection and others if, for example, the im-ported food has no shipping container or the actual shipmentis not examined.

All expenses in connection with affixing the required labelwould be paid by the owner or consignee of the food involvedand, in default of such payment, would constitute a lien againstfuture importations made by such owner or consignee. TheFDA would be able to seek reimbursement for its expenseswhen it imposes the label on shipping containers or supervisesan importerʼs affixing of labels on shipping containers and doc-uments.

If the food has been conditionally released under a customsbond, the failure to comply with any requirement of this pro-posed rule may be a violation of that bond and the FDA couldask CBP to pursue liquidated damages from the importer ofrecord.

Comments on this proposal are due by Dec. 2, 2008.


Los Angeles/Long Beach Port’s CleanTruck Program to Begin October 1, 2008

PAGE FOUR NOVEMBER 2008

(1) Clean Truck Program started on October 1, 2008. Oldtrucks, 1989 model trucks (and earlier models), will bebanned from the terminals.

(2) Fee collection will start as soon as the electronic systemis implemented.

Dirty truck ban, concessions and security requirements to start.The program progressively bans all trucks that don't meet 2007emission standards by 2012. To finance the $2 billion truckreplacement program, the ports will levy on loaded containers($35 per loaded twenty-foot equivalent unit). (BeginningJanuary 2009, the ports will also collect a separate, $15 per

TEU cargo fee to finance $1.4 billion in roadway, rail and bridgeprojects.)

Meanwhile, the Port is developing a computerized PortChecksystem – similar to the existing PierPass system -- that willenable the collection of Clean Trucks Fees from cargo owners.The fees will help finance leases and loans to assist truckersin obtaining clean trucks. The Port will begin collecting the feeas soon as the computer system is operational, which isexpected to be a few weeks after October 1, 2008.

(Cargo owners are encouraged to register with PortCheck orPierPass immediately in order to claim their cargo when thePort begins assessing the fee.)

Container Seals on Maritime CargoAGENCY: U.S. Customs and Border Protection,

Homeland Security.ACTION: General notice.SUMMARY: This document brings attention to the existing

statutory requirement by which all maritimecontainers in transit to the United States arerequired to be sealed with a seal meeting theISO/ PAS 17712 standard and specifies thedate on which the requirement shall takeeffect.

EFFECTIVE DATE: October 15, 2008.

The ISO/PAS 17712 StandardGenerally, ISO/PAS 17712 requires that container freight sealsmeet or exceed certain standards for strength and durability soas to prevent accidental breakage, early deterioration (due toweather conditions, chemical action, etc.) or undetectable tam-pering under normal usage. ISO/PAS 17712 also requires thateach seal be clearly and legibly marked with a unique identifi-cation number.

Copies of ISO/PAS 17712 may be purchased from the Inter-national Organization for Standardization, 1, rue de Varembé´,CH-1211 Geneva 20, Switzerland or the American NationalStandards Institute, 25 West 43rd Street, New York, NY 10036.

Containers Subject to the 6 U.S.C. 944Sealing RequirementAll loaded containers, including foreign cargo remaining onboard (FROB), arriving by vessel at a port of entry in the UnitedStates on or after October 15, 2008, are required to be sealedwith a seal meeting the ISO/PAS 17712 standard. U.S. Cus-toms and Border Protection (CBP) recognizes that there aretypes of containers that cannot be readily secured by use of acontainer freight seal meeting the ISO/PAS 17712 standard.These include tanks, non-standard containers (such as opentop containers), or containers that simply cannot accommodatea seal meeting the ISO/PAS 17712 standard (such as custombuilt containers). These types of containers are not subject tothe statutory requirement.

Enforcement of the 6 U.S.C. 944Sealing RequirementCBP will consider 6 U.S.C. 944 to be violated if a loaded con-tainer that is subject to the sealing requirements arrives by ves-sel at a port of entry in the United States on or after October 15,2008, either (i) with no seal or (ii) with a seal that does not meetthe ISO/PAS 17712 standard. These violations derive from afailure to properly seal the container.

(Continued on page 5)


NOVEMBER 2008 PAGE FIVE

The Consumer Product Safety Improvement Act of 2008NEW MANDATORY CPSC IMPORT DOCUMENTATION REQUIREMENTS EFFECTIVE NOVEMBER 12, 2008New import requirements for consumer goods will take effectNov. 12, 2008 as a result of the Consumer Product Safety Im-provement Act of 2008, which became law Aug. 14, 2008. Be-ginning on that date manufacturers and importers must certifyin writing that products being imported for warehousing and/orconsumption conform to the rules, bans, regulations or stan-dards administered by the Consumer Product Safety Commis-sion. This requirement applies to nearly all categories ofconsumer goods, including fabrics, wearing apparel, toys, jew-elry, sporting goods, refrigerators, furniture, hazardous materi-als, all-terrain vehicles - even pharmaceuticals subject tochild-resistant cap standards.

The new certificates of conformity:

� Must be based on a "reasonable" testing program;� Must be issued jointly or separately by two and sometimes

three participants in the supply chain (i.e., manufacturer,importer and any private labeler, as appropriate);

� Must accompany the product or the shipment of the prod-uct; and thereafter must be furnished to each distributor orretailer of the product.

A separate certificate (or certificates) is required for each prod-uct in a container. If no certificate is issued, or if a false cer-tificate is found to be on hand, the shipment may berefused admission and destroyed.

Certificates of conformity must include the full contact infor-mation of the manufacturer and importer, as well as the per-son maintaining records of the test results upon which thecertification is based; must reference the specific standard towhich the product is subject; and must indicate the place anddate of manufacture.

Effective Date of Certificate RequirementCPSC officials have indicated that the certificate of conformityrequirement applies to imported goods manufactured or pro-duced on or after Nov. 12, 2008. However, no advice has yetbeen provided as to how the CPSC or U.S. Customs and Bor-der Protection will determine the manufacture or productiondates of importations arriving after Nov. 12, 2008.

CPSC Website Can Help Determine WhatProducts Need Conformity CertificatesThe CPSC Web site lists “regulated products” which are thoseproducts for which CPSC has issued mandatory safety stan-dards as well as “unregulated products” which are those prod-ucts within CPSCʼs jurisdiction but for which CPSC has notissued mandatory standards. These lists are available athttp://www.cpsc.gov/businfo/regsbyproduct.html and mayhelp determine the products for which general conformity test-ing/certification are required.

In addition, the CPSC lists the products over which it doesnot have jurisdiction, including aircraft, tires, food, etc. athttp://www.cpsc.gov/businfo/notcpsc.html. CPSC recog-nizes that it might be difficult for manufacturers (and importers)to know all of the standards, bans, rules, etc., for which a productneeds to be tested and certified and has posted such informa-tion by product at http://www.cpsc.gov/businfo/businfo.html.

Certificates Must “Accompany” ShipmentBut Are Not “Filed” With CBP, Etc.CPSC stated that there is currently no requirement to “file”these certificates with CBP or any government agency as partof the entry process, though CPSC may, by rule, provide forthe electronic filing of certificates in the future.

For now, these certificates must “accompany” a shipment, butthe release of a shipment does not necessarily depend on “pre-sentation of” a certificate. However, a copy of the certificate(s)must be made available to U.S. Customs and Border Protec-tion (CBP) or CPSC upon request.

CPSC stated that the certificates should be present whenCPSC or CBP opens a container to examine a shipment, testsamples, etc.

Container Seals (Continued from page 4)

CBP may assess a civil penalty against the party responsiblefor the violation of 6 U.S.C. 944 under 19 U.S.C. 1595a(b) forthe attempted introduction of merchandise into the UnitedStates contrary to law. CBP will phase in penalty assessmentsfor violation of the container sealing requirements.

Trade Act RequirementsCBP also takes this opportunity to remind vessel carriers thatpursuant to 19 CFR 4.7(b)(2) and 4.7a(c)(4)(xiv)), they musttransmit all seal numbers to CBP 24 hours before cargo isladen aboard a vessel at a foreign port via the Vessel Auto-mated Manifest System (AMS).


PAGE SIX NOVEMBER 2008

First Sale DeclarationRequirementCustoms & Border Protection proposed to eliminate the use ofthe First Sale rule in determining the imported value of certaintypes of import transactions in the Federal Register dated Jan-uary 24, 2008. Congress stopped CBP from making anychanges to what is considered “when sold for exportation tothe U.S.” before 2011. This was written into the Farm Bill underthe Food, Conservation, and Energy Act of 2008. Further,Section 15422 of the law requires that each importerprovide to U.S.Customs, at the time of entry, a declarationas to whether the transaction value of the importedmerchandise is determined on the basis of the price paidby the buyer in the first or earlier sale occurring prior tointroduction of the merchandise in the United States.

Usually the purchaser/importer of goods is in the U.S. and theseller/exporter is located in the foreign country. If the partiesare unrelated and no other circumstances affect the sellingprice, under these circumstances the Customs value of thegoods will be the price paid by the purchaser to the foreignseller. However, when the foreign seller purchases the goodsfrom another party and then resells the goods to the U.S. im-porter, this is regarded as a multi-tiered transaction with the re-seller acting as a middleman between the actual manufacturerand the U.S. importer.

Court decisions and other rulings have declared that the salebetween the foreign manufacturer and the middleman thatcaused the imported goods to be exported to the U.S., wouldthen be “first sale” and can be used as the reported value forcustoms purposes rather than the sale between the middle-man and the U.S. importer. This means the importer can use alower value on which to pay duties and fees.

If you are purchasing through a multi-tiered transactionand using the “first sale” price for Customs declared valueon entry, we must know this so that we can flag the entryas required under this new reporting requirement.

Congress Approves RevisedBill To Extend GSP, ATPDEAThe House and Senate both approved an amended version oflegislation (H.R. 7222) that includes a number of provisionsconcerning unilateral trade preference programs.

• One-year extension, without change, of the GeneralizedSystem of Preferences

• One-year extension, without change, of the Andean TradePromotion and Drug Eradication Act with respect to Colombiaand Peru

• Six-month extension of ATPDEA benefits for Ecuador, with anadditional six-month extension unless the president deter-mines that Ecuador is not complying with the eligibility criteria

• Six-month extension of ATPDEA benefits for Bolivia; an addi-tional six-month extension is possible but only if the presidentcertifies Boliviaʼs compliance with the eligibility criteria

• Duty-free entry for certain pants and other bottoms importedfrom the Dominican Republic

• Repeal of the “abundant supply” provision in the AfricanGrowth and Opportunity Act

• Mauritius may use third-country fabric in the production ofapparel that receives AGOA duty-free treatment whenimported into the U.S.

• Amendments to the Haiti Hemispheric Opportunity throughPartnership Encouragement Act

CBP Provides Best Practices AndInternal Controls For IPRIn December 2007, U.S. Customs and Border Protectionposted a document to its website with information on intellec-tual property rights (IPR) The IPR document provides anoverview of the intellectual property issues enforced by CBPand contains examples of company best practices and internalcontrols related to IPR.The IPR issues enforced by CBP include trademarks, tradenames, copyrights, and patents. CBP has legal authority to de-termine infringement of trademarks, trade names, and copy-rights, but its authority to enforce patent rights is limited toproviding protection pursuant to exclusion orders issued by theInternational Trade Commission.CBPʼs policy is to focus IPR enforcement efforts on recordedtrademarks, trade names and copyrights, with recorded rightsreceiving a higher level of protection than unrecorded rights. • Import departments should have certain IPR document

readily available.• Regular verification of trade names, etc. in supplier agree-

ments, etc. • Internal controls before issuing a purchase order.• Proper accounting for royalty payments, etc. • Overseas supplier/manufacturer reviews. CBPʼs FAP document, “Intellectual Property Rights TechnicalInformation for Pre-Assessment Survey(TIPS)”(datedDecem-ber2007) http://www.cbp.gov/linkhandler/cgov/import/reg_audit/focused_assessment/fap_documents/exh5u.ctt/exh5u.pdf.


NOVEMBER 2008 PAGE SEVEN

Import Security Filing10 + 2 PreparationAs previously discussed in our letter to our customers Sept 15,2008, Congress enacted a law requiring U.S. Customs andBorder Protection (CBP) to collect additional data elements 24hours prior to loading on a vessel destined to the U.S. in addi-tion to the current manifest filing data. The additional elements,which are to be used for security screening, were later definedas 10 importer level elements and 2 carrier level elements. ThisImport Security Filing program has come to be known as the“10+2”.Coppersmith Global Logistics is in a uniquely qualified po-sition to perform the “10” portion of the security filing onyour behalf. Coppersmith Global Logistics has knowledgeof your importation, your products, and your transporta-tion supply chain. We hold a power of attorney to transactCustoms business on your behalf, and we have a regula-tory requirement to maintain confidentiality of your datain each transaction.

The largest challenge to completing the 10+2 security filing will be: � The actual collection of data itself� Ensuring confidentiality of commercial data that is required

in the filing� Meeting the 24 hour prior to lading time

Secure and timely communication between the importer andsecurity filer is critical. This may require re-thinking currentbusiness processes. Planning may include identifying wheredata comes from;

• How it will be collected and received• How to consolidate the data• Ensuring timeliness of receipt • Understanding the preparation time required before

transmission • Understanding that 24hrs really means 3-4 days prior to

loading • How changes to be communicated

Webinar on November 6, 2008. Space is limited.Reserve your Webinar seat now at: https://www1.gotomeeting.com/register/716314611

Global Data Miningʼs R&D team has developed a powerful web-based system (SaaS) to give you the oversight and control nec-essary to ensure global trade data is complete, accurate, timely, and available in required formats. This data management so-lution brings together all the trade data residing at various sources around the enterprise and provides a unified view of all datafor veracity, maintenance, Customs compliance, and use with any applications.


DATA ELEMENT SOURCE RESPONSIBLE PARTYManufacturer Name & AddressSeller Name & AddressBuyer Name & AddressShip to Name & AddressContainer Stuffing LocationConsolidator (stuffer) Name & AddressImporter of Record NumberConsignee Number or NumbersCountry of OriginCommodity HTSUS to 6th Digit

President Signs Intellectual Property Rights (IPR) Enforcement Bill Into LawOn October 13, 2008, President Bush signed into law S. 3325,the "Prioritizing Resources and Organization for IntellectualProperty Act of 2008" (P.L. 110-403).According to a summary by Senate Judiciary Committee Chair-man Leahy, S. 3325: • Applies copyright laws to exported items • Prohibits exporting or transshipping of counterfeit goods• Requires GAO study on impact of imported counterfeit

goods, etc.

• Increases maximum statutory penalties • Enhances civil penalties • Improves, harmonizes forfeiture laws • Creates Intellectual Property Enforcement Coordinator • Additional funding to hire • Increases enforcement resources

For detailed summary follow the link below.http://leahy.senate.gov/press/200809/092608b.html

� Los AngelesCorporate Headquarters

525 South Douglas StreetEl Segundo, CA 90245Tel: 310-607-8000Fax: [email protected]

� San Francisco434 Rozzi PlaceSouth San Francisco, CA 94080Tel: 650-872-1225Fax: [email protected]

� Portland6135 N E 80th Avenue, Suite 4APortland, OR 97218Tel: 503-249-1400Fax: [email protected]

� Seattle2580 South 156th StreetBuilding A, Suite 201Seattle, WA 98158Tel: 206-242-6181Fax: [email protected]

� Chicago760 Bonnie LaneElk Grove Village, IL 60007Tel: 847-437-1500Fax: [email protected]

� Houston15904 International Plaza DriveHouston, TX 77032Tel: 281-442-4800Fax: [email protected]

� Dallas3025 Roy Orr BoulevardGrand Prairie, TX 75050Tel: (972) 262-0539Fax: (972) [email protected]

� Atlanta114 Southfield ParkwaySuite 130Forest Park, GA 30297Tel: (404) 366-1650Fax: (404) 366-1649Email: [email protected]

� New York145 Hookcreek BoulevardBuilding A3WValley Stream, NY 11581 Tel: 516-887-0900Fax: [email protected]

PAGE EIGHT NOVEMBER 2008


Mandatory Automated Export System (AES) FilingAs previously advised in a letter to our customers beginningon 9-30-08, Customs is empowered to enforce the Censusregulations requiring mandatory automated export filing.Customs can impose a $1000 fine for a shipper who know-ingly fails to file or files false and/or misleading information foreach day that information is not filed after vessel sailing. Inaddition to the monetary civil penalty, violations may carry apossible criminal penalty of jail-time up to five years per vio-lation.

The employees and management of Coppersmith Inc. doeverything in our power to keep our customers compliant withUS Export control laws but we need your full participation.

1. Effective 9-22-08 Coppersmith requires full manifest in-formation in writing to file with AES 24 hours prior to vesselcutoff. This is one week prior to the regulation enforcementperiod. This will give you a week to develop a system to dealwith the new rules. That means we need your bill of lading in-structions with full consignee, value, proposed piece count,weight and value 24 hours prior to vessel cutoff without ex-ception.

2. Effective immediately we will not accept verbal confirma-tions of shipment. All information needs to be in writing ei-ther by fax or email.

3. We need you, the shipper, to realize that the civil and crim-inal penalties outlined above apply to you and everyone in-volved in the export transaction. That means that the shipper,forwarder and steamship line are all liable for compliance with

these rules and are subject to the penalties imposed by them.You, the shipper, are responsible for doing your part by giv-ing us bill of lading instructions 24 hours prior to vessel cut-off.

Customs and Census understands the challenges of shippingagricultural commodities. They understand that we may nothave the actual piece count or agreed upon price 100% accu-rate 24 hours prior to vessel cutoff. They will allow us, withdocumentation, to amend piece count, weight, value even con-signee after the ship sails but they need a proposed manifest24 hours prior to vessel cutoff. For us to present this prelim-inary information to Census, we will need this informationfrom each shipper in writing.

Though Customs and Census will afford us some flexibility infiling information, the Steamship lines will not. Since they arebeholden to the same filing requirements as we are, manyhave implemented new fee structures and "no doc, no load"policies in reaction to the new rules.

This is not to be taken lightly. Come September 30th, 2008it will be mandatory for every shipment to be documented,in writing, by the shipper, 24 hours prior to vessel cutoff.Any fines imposed by the steamship line for late documentsubmission will be for the account of the shipper.

Census is holding many town hall meetings and seminarsthroughout the country. Go to:

http://www.census.gov/foreign-trade/aes/meetingsandpresentations/index.html

525 South Douglas StreetEl Segundo, CA 90245-4826

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