CANADIAN AMBASSADOR TO SPEAK ON APRIL 23

On Wednesday, April 23 the World Trade Center, World Affairs Council, City of New Orleans, and other organizations will host a breakfast program in the Plimsoll Club of the WTC featuring H.E. Michael Kergin, Canadian Ambassador to the United States. The title of his talk is "Canada and the United States—A Model Partnership for the 21st Century."

Michael Kergin has been serving as Ambassador to the U.S. since 1999. He joined the Department of External Affairs (now the Department of Foreign Affairs and International Trade) in 1967 as a Foreign Service Officer. His postings abroad have included New York (the Canadian Mission to the United Nations), Cameroon, and Chile. He served as Ambassador to Cuba from 1986 to 1989. Mr. Kergin has also held various positions at the Foreign Affairs Department in Ottawa.

In 1994, Mr. Kergin became Assistant Deputy Minister responsible for Political and International Security Affairs. After two years, he became the Assistant Deputy Minister with responsibility for the Americas and Security/Intelligence Affairs. He held that position until 1998, when the Prime Minister asked him to serve as his Foreign Policy Advisor as well as Assistant Secretary to the Cabinet for Foreign and Defence Policy (the Canadian equivalent of the National Security Adviser in the U.S. government). To register for the April 23 breakfast, call the WTC at (504) 529-1601, ext. 222 or click here.

ASSISTANT SECRETARY OF STATE TO SPEAK ON AFRICA

On Friday, April 25 the World Trade Center, World Affairs Council, City of New Orleans, Louisiana Economic Development, and other organizations will sponsor a luncheon program in the WTC’s Plimsoll Club in New Orleans on "Outlook on Africa: What It Means for U.S. Businesses" featuring Walter H. Kansteiner, III, Assistant Secretary of State for African Affairs.

Mr. Kansteiner has been serving as Assistant Secretary of State since June 2001. A founding principal of the Scowcroft Group, Mr. Kansteiner has more than 20 years experience with African and emerging market business issues. He has advised corporations on a wide range of mergers, acquisitions, and privatizations throughout Africa. Mr. Kansteiner advised the buy side on the $1.3 billion privatization of Telkom South Africa, the largest privatization in Africa to date. Before joining the Scowcroft Group, Mr. Kansteiner was executive vice president of a commodity trading and processing company that specialized in tropical commodities (coffee, cocoa, and sugar).

In addition to his business experience in emerging markets, Mr. Kansteiner served in the U.S. Government as Director of African Affairs on the National Security Council staff. He also served as the Africa specialist on the Secretary’s Policy Planning staff and with the Department of Defense as a member of the strategic minerals task force. Mr. Kansteiner is the author of the book "South Africa: Revolution or Reconciliation."

To register for the April 25 luncheon, call the WTC at (504) 529-1601, ext. 222  or click here.

DEPARTMENT OF COMMERCE OFFICE RELOCATES TO WTC

On April 1, the New Orleans U.S. Export Assistance Center/U.S. Department of Commerce office, moved back to the World Trade Center of New Orleans, after being located elsewhere in the area for more than ten years. A "Welcome Back Open House" will be scheduled soon.

The new address at the World Trade Center is:

New Orleans U.S. Export Assistance Center

2 Canal Street, Suite 2710

New Orleans, Louisiana 70130

All telephone and fax numbers remain the same:

• Main phone number: (504) 589-6546
• Clif Gaston: (504) 589-6548
• Jean Collins: (504) 589-6549
• Don van de Werken (504) 589-6530
• Tom Williams (504) 589-6702
• Jo Daugherty (504) 589-6703
• Belinda McCorkle (504) 589-6730
• Fax number: (504) 589-2337

LOUISIANA FIRMS RECEIVE U.S. COMMERCE AWARD

On March 14, five Louisiana companies received U.S. Department of Commerce Export Achievement Awards. Recipients were: Datrex, Inc. of Kinder; Dredging Supply Company of Reserve; Griffo, Inc. of New Orleans; ReliaGene Technologies of Harahan; and Stuller, Inc. of Lafayette. The award ceremony took place at the Port of Greater Baton Rouge during a meeting of the Louisiana District Export Council. The Export Achievement Award is presented to U.S. firms that made a new export sale or increased export sales due to assistance from the Commerce Department’s U.S. and Foreign Commercial Service.

EXPORT FORUM FOR MINORITY AND WOMEN-OWNED FIRMS

The New Orleans U.S. Export Assistance Center (USEAC) will host its Global Diversity Initiative Workshop at the World Trade Center on Thursday, April 24, from 8:15 a.m. to 1:30 p.m. The Global Diversity Initiative (GDI) is designed to help increase the number of qualified minority and women-owned enterprises that export. For purposes of the GDI program, minority group members are U.S. citizens who are Asian, African-American, Hispanic, and Native American.

The objective of the workshop is to educate GDI companies on the basic principles of exporting. The program will cover vital exporting topics such as international finance, Incoterms, transportation, and legal aspects. Top executives of local companies will share export successes to give participants personal insight into exporting processes.

Key presenters for the GDI Workshop include the directors of the U.S. Department of Commerce and World Trade Center, representatives from Baker, Lyman & Company, Irwin Brown Company, Export-Import Bank, Hibernia Bank, Medical Export Services of Louisiana, Royce Technologies, United Parcel Service, and Xenetech.

To register or access more information on the workshop, contact Moya McCaskill at (504) 589-6546 or e-mail moya.mccaskill@mail.doc.gov.

CHINA CONFERENCE IN POINT CLEAR MAY 5-6

On May 5-6 the Mobile Area Chamber of Commerce and other organizations are sponsoring a World Trade Conference on "China: A Market Waiting in the Wings" at the Grand Hotel Marriott Resort in Point Clear, Alabama. The conference will feature presentations by representatives from the U.S. Embassy in the People’s Republic of China, the U.S. China Development Group, the U.S. Chamber of Commerce, and other organizations. Donald Evans, U.S. Secretary of Commerce, will deliver the conference’s keynote address. To register for the conference, contact the Mobile Area Chamber at (251) 431-8608 or register on-line at www.mobilechamber.com/wtc03.html. To make reservations at the Grand Hotel Marriott call 1-800-544-9933.

AGRIBUSINESS MISSION TO RUSSIA IN JUNE

The U.S. Department of Agriculture (USDA) is planning a June 2003 investment mission to three of the most productive agricultural regions in Russia: Moscow, Oryol, and Krasnodar. All U.S. agribusiness interests are welcome to apply, with special encouragement to small-and-medium-size firms. Concentration will be on the following sectors: agricultural commodities (particularly poultry, swine, dairy, aquaculture, fruits and vegetables, grains, and soybeans); farm equipment manufacturers; animal and fish feed technologies; veterinary diagnostics; plant and animal genetics; food processing equipment; and cold storage operators. Contact Steven Beasley at steven.beasley@usda.gov or visit www.fas.usda.gov/icd/food-industries/tip/trade-invest.html for more information.

CLAIMING REFUNDS OF U.K. VALUE -ADDED TAXES

A value-added sales tax is imposed on every domestic transaction in the United Kingdom. The full burden of value added tax (VAT) falls on the final buyer or user of the goods or services provided. The governmental department in the U.K. responsible for the collection and refund of VAT is Her Majesty’s Customs and Excise (HMCE).

For U.S. visitors to the U.K., the ability to reclaim VAT paid on most business expenses is important, since most commodities and services are more expensive in the U.K. than comparable ones in the United States. In simple terms, about $15 of every $100 spent is VAT which can ultimately be reclaimed. Ignorance of the procedures costs some U.S. companies many thousands of dollars, and, since VAT is a revenue generator, it is not entirely surprising that HMCE does not widely publicize the right to reclaims. At major international trade events in the U.K., some U.S. firms have spent in excess of $500,000 in promotion costs, without knowing that they could legitimately claim back as much as $75,000 from HMCE.

Examples of eligible business expenses include travel, lodging, meals, laundry and dry cleaning, telephone and fax call charges, equipment rental, conference and trade event participation fees including space rental and all associated costs, professional fees paid for accountancy, legal, public relations and advertising services, and temporary office space and secretarial services. VAT refunds must be lodged by a U.K. entity. For more additional information on this topic, including a list of VAT Reclaim Specialists in the U.K., call the U.S. Export Assistance Center in New Orleans at (504) 589-6546 or in Shreveport at (318) 676-3064.

LUNCHEON BRIEFING ON U.S.-CENTRAL AMERICAN PACT

As part of the many events to be held in May to celebrate World Trade Month in Louisiana, Ms. Margaret Hanson-Muse, the Commercial AttachŽ at the U.S. Embassy in San Jose, Costa Rica, will conduct a luncheon briefing in the Plimsoll Club on Monday, May 19 on the proposed U.S.-Central American Free Trade Agreement which is currently being negotiated, and the opportunities for U.S. businesses that are expected to arise out of the agreement. Complete details on this and the other events to be held in May around the state will be announced soon by the U.S. Export Assistance Center/U.S. Department of Commerce.

U.S. COMMERCE TRADE EVENTS

Call the U.S. Export Assistance Center in New Orleans at (504) 589-6546 or Shreveport at (318) 676-3064 for information on these May and June trade events:

Trade Missions:

• Asian Infrastructure (multi-sectors) -- Istanbul, Turkey [cancelled]
• Virtual Health Care/Telecommunication - London, England
• Security Products and Services - Rio De Janeiro, Brazil
• Business Development (multi-sectors) - Cairo, Egypt
• Manufacturing (multi-sector) - Mexico City

Trade Fairs:

• USA Pavilion (mining and geology) - Montreal, Canada
• Sviaz Expo (telecommunications/infrastructure technologies) - Moscow, Russia
• Expo Construccion (construction) - Mexico City
• Metal Work and Manufacturing Technology - Singapore, Japan
• Agro Foodtech - Beijing, China
• Aquatech Brazil (drinking water) - Sao Paulo, Brazil
• International Environmental Protection - Beijing, China
• CommunicAsia (information technology) - Singapore
• Natural Products Asia (food processing/processing) - Hong Kong
• Interior Lifestyle (home fashion goods) - Tokyo, Japan
• Seguritec (safety products) - Lima, Peru
• Surf and Beach Show (apparel/textiles) - Sao Paulo, Brazil
• International Film and TV Market - Hong Kong
• RepCan Toronto (multi-sector matchmaking and trade show) - Toronto, Canada

A PRIMER ON FOREIGN TRADE ZONE OPERATIONS

Foreign Trade Zones (FTZs) are designated sites where special customs procedures apply. They are restricted-access areas authorized by the Foreign-Trade Zones Board, which consists of the U.S. Treasury and U.S. Department of Commerce Secretaries. U.S. communities often have to compete globally for investment in local manufacturing and commerce, and locations overseas sometimes offer more favorable customs environments for businesses. U.S. foreign trade zones help level the playing field in terms of the business costs associated with importation and customs clearance. FTZs also assist state and local officials to develop their economies by attracting foreign commerce. And by helping U.S. firms improve their international competitiveness, FTZs can help retain local business and encourage the development of additional jobs.

Other Foreign Trade Zone advantages include:

• Customs duty and federal excise tax, if applicable, are paid only when merchandise is transferred from an FTZ to the customs territory of the United States, or transferred to Canada or Mexico.

• Goods may be imported into, and then exported from, a zone without the payment of duties and excise taxes, except to certain countries subject to trade agreements, such as Canada and Mexico (in which case, any applicable duties and excise taxes are levied). Goods may also be imported into, and destroyed in, a zone without the payment of duty and excise taxes.

• Inverted tariff relief eligibility, which occurs when imported parts are dutiable at higher rates than the finished product into which they are incorporated. For example, the duty rate on imported glass for autos is 5.5 percent if imported directly into the United States. However, if that auto glass is brought into a FTZ and incorporated into an assembled automobile, the duty on the finished automobile, including the glass, is 2.5 percent.

• Merchandise imported into the U.S. and held in a zone for the purpose of storage, sale, exhibition, repackaging, assembly, distribution, sorting, grading, cleaning, mixing, display, manufacturing, or processing, as well as merchandise produced in the U.S. and held in a zone for exportation, either in its original form or altered by any of the above methods, is exempt from state and local ad valorem taxes.

• A product may remain in a zone indefinitely, whether or not it is subject to duty. Other customs procedures, such as bonded warehouses and temporary import bonds, are subject to time limits.

• Customs security requirements and federal criminal sanctions deter theft. Deterrence may result in lower insurance costs and fewer incidents of loss for cargo imported into a Foreign Trade Zone.

In order to admit merchandise into a zone, the zone operator must submit a request with appropriate documentation to the Customs Service port director. Merchandise does not achieve zone status until a port director issues a permit for its admission (except in the case of domestic status merchandise for which no permit is required) and the Foreign Trade Zone operator signs for receipt of the merchandise into the zone.

The above material is a condensed description of Foreign Trade Zones in the United States. For detailed information, call the Foreign Trade Zones Board at the U.S. Department of Commerce at (202) 482-2862, or go online at: http://ia.ita.doc.gov/ftzpage.

HARMONIZED SYSTEM FOR EXPORTS AND IMPORTS

A crucial aspect of exporting is the proper identification and documentation of exports and imports. For every imported and exported item, there is a customs classification number that ensures that customs authorities recognize the product and that appropriate customs fees are assessed.

The World Customs Organization developed the Harmonized Commodity Description and Coding System, called the Harmonized System (HS). The HS codes represent categories of goods; the numbers are used on U.S. import documents and to obtain U.S. tariff rates. For information on HS numbers, log on to the U.S. International Trade Commission website at www.usitc.gov.

In the United States, numbers used to classify products exported from the U.S. are called "Schedule B" numbers, a coding system administered by the U.S. Census Bureau. U.S. exporters can find the correct Schedule B number for their products on the Census Bureau’s website at: www.census.gov/foreign-trade/schedules/b. Schedule B numbers may also be obtained by calling the Census Foreign Trade Division. To classify durable goods (metals, machinery, computer, electronic, and other miscellaneous goods) call (301) 763-3259. For non-durable goods classification (food, animal, wood, paper, mineral, chemical, and textile goods), call (301) 763-3484. For help determining if an item is durable or non-durable, call (301) 763-3047.

ARGENTINA INCREASES VALUE - ADDED TAX

In January 2003, the Argentine government implemented a trial reduction of value-added tax (VAT) on goods imported in Argentina, from 21 percent to 19 percent. Due to the significant loss of tax revenue, the tax is back to 21 percent. During the trial period, the Government of Argentina lost over $300 million pesos (around US$88 million). The trial reduction failed to boost consumption enough to offset lost revenue and only a few sectors such as supermarkets and major gas stations passed the VAT savings on to consumers.

CHINA COMPULSORY CERTIFICATION MARK

The Chinese government has a safety license system that takes effect on May 1, requiring manufacturers in 132 product categories to obtain the China Compulsory Certification (CCC) mark before exporting to or selling in the China market. Products not meeting CCC requirements may be held at the border by Chinese Customs and will be subject to penalties. For a copy of a four-page report on this important information, call the U.S. Export Assistance Center in New Orleans at (504) 589-6546 or Shreveport at (318) 676-3064.