######## ![](media/image1.png){width="0.7201388888888889in" height="0.7645833333333333in"}INTERNATIONAL BUSINESS NEWS --DECEMBER 2007

**U.S. Department of Commerce**

**International Trade Administration - U.S. Export Assistance Center**

**425 West Capitol Avenue, Suite 425, Little Rock AR. 72201**

![](media/image2.png){width="1.15in"
height="0.8722222222222222in"}**Phone: 501-324-5794 Fax: 501-324-7380**

**little.rock.office.box@mail.doc.gov <http://www.buyusa.gov/arkansas>**

**Ray Riggs, International Trade Specialist**

### Mary Hayward, Export Assistance Specialist 

**TRADE MISSION TO SUB-SAHARAN AFRICA**

**MARCH 3-11, 2008**

**Accra, Ghana; Lagos,**

**Nigeria; and Johannesburg, South Africa**

**March 3-11, 2008.**

**[Participation Closes December 10, 2007]{.underline}**

![](media/image3.jpeg){width="0.8333333333333334in"
height="0.7291666666666666in"}

The U.S. Department of Commerce is proud to announce a timely
opportunity to meet business prospects in Ghana, Nigeria and South
Africa. The Assistant Secretary for Trade Promotion and Director General
of the U.S. and Foreign Commercial Service will lead an official U.S.
delegation to Sub-Saharan Africa this March.

**Best prospects include, but are not limited to:**

-   Energy

-   Health Care

-   Information Technology

-   Safety and Security

-   Telecommunications.

-   Transportation

-   Infrastructure and civil construction

-   Automobiles and parts

-   Computers

-   Mining

Ghana, Nigeria, and South Africa offer strategic platforms for
leveraging business in the burgeoning Sub-Saharan regional market, which
encompasses a consumer base of 650 million people. Our total trade with
Sub-Saharan Africa increased 10 percent in the first half of 2007 from
the same period in 2006, with U.S. exports increasing by 30 percent to
\$6.7 billion.

[Click here](http://www.export.gov/static/Africa Trade Mission-5.pdf) to
view the promotional brochure.

To apply for the trade mission, [click
here](http://www.export.gov/africamission/tmform.asp)

For more information, contact one of our

Africa Mission Project Officers:

[Jessica Arnold](mailto:jessica.arnold@mail.doc.gov) 202-482-2026

[Lisa Huot](mailto:lisa.huot@mail.doc.gov) 202-482-2796

[Mara Yachnin](mailto:mara.yachnin@mail.doc.gov) 202-482-6238

**TRAVELERS REMINDED OF NEW DOCUMENT REQUIREMENTS BEGINNING JANUARY 31,
2008**

**Documents Proving Citizenship and Identity**

**Will be Required when Entering the United States**

**Through Land and Sea Ports of Entry**

The U.S. Department of Homeland Security (DHS) and the U.S. Department
of State (DOS) remind the traveling public that as of Jan. 31, 2008, all
adult travelers will be required to present proof of citizenship, such
as a birth certificate, and proof of identity, such as a driver's
license, when entering the United States through land and sea ports of
entry. For details, [click
here](http://www.cbp.gov/xp/cgov/newsroom/news_releases/12032007_4.xml).

**U.S. CANADA TRUSTED TRAVELERS PROGRAMS**

There are several options available to U.S. companies and individuals to
expedite the movement of goods and people over the Canada-United States
border. The trusted traveler programs were designed to improve
security-screening processes at all land air and sea points of entry.
For a detailed report on these programs, [click
here](http://www.buyusa.gov/arkansas/uscantrustdec07.pdf).

**WHEN IS PRE-SHIPMENT INSPECTION REQUIRED?**

**From Pre Shipment Inspections**

**by Alan Richel, Senior International Trade Specialist**

**U.S. Dept. of Commerce**

**U.S. Export Assistance Center, Houston, Texas**

Pre-shipment inspections (PSI) are required when mandated by the
government of the importing country. Governments assert that
pre-shipment inspections ensure that the price charged by the exporter
reflects the true value of the goods, prevent substandard goods from
entering their country, and mitigate attempts to avoid the payment of
customs duties. Most countries on the list above request inspections for
shipments above a certain value. However, in some instances inspections
are necessary for all imported products, regardless of value. To read
Alan Richel's article, [click
here](http://www.buyusa.gov/arkansas/preshipdec07.doc)

**IPR TOOLKIT FOR ITALY**

Italy's protection of intellectual property lags behind that of many
other Western European countries and, despite Italian government strides
to improve protection, this remains an area of concern for U.S.
companies doing business in Italy. In an effort to improve its track
record, Italy has passed strong legislation aimed at curbing
intellectual property rights (IPR) infringement. For a guide to how U.S.
companies can protect their intellectual property rights when doing
business in Italy, read [Intellectual Property Right Tool Kit for
Italy](http://www.buyusa.gov/arkansas/ipritalydec07.pdf)

**MARINE CARGO INSURANCE ABCS:**

**MAKE SURE YOUR GLOBAL SHIPMENTS**

**ARE FULLY COVERED^©^**

**By Frank Reynolds**

**Reprinted with Permission from Dec. 2007 issue of**

**"Managing Imports and Exports"**

**Frank Reynolds is president, International Projects Inc.**

**an export trading company.**

**He is a licensed U.S. Customs broker and has been appointed to 15
terms on the Commerce Department's**

**District Export Council**

Welcome to the "Alice-in-Wonderland" world of marine cargo insurance.
Things are strange here for the uninitiated. "All risk" coverage doesn't
cover all risk.

Insurance policies sometimes refer to voyages as "adventures." Contrary
to what one would normally suppose, "warranteed-free-of" means whatever
follows is not covered. "Fortuitous" doesn't mean lucky but accidental,
used in connection with a loss and therefore unlucky. "Average" has
nothing to do with arithmetic but means a loss, so fortuitous average
equals accidental loss.

There are two kinds of fortuitous average, particular and general.
Particular means something bad happened to an insured's shipment, while
general means that something bad happened to the carrier. We'll cover
general average below, but first we need to get some basic terms out of
the way. Casualty insurance covers goods. There are two types with
deceptively similar names but different uses.

Inland marine insurance is the term used for insurance that covers
domestic shipments. Premiums are typically paid periodically (quarterly,
annually), and all domestic shipments made within the covered time frame
are normally covered. The only reporting is in the form of eligible
claims.

**Marine Cargo Insurance**

Marine cargo insurance, the type we are covering in this column, is the
term used for insurance that covers international shipments (or those to
offshore destinations). Generally, premiums are paid according to usage
rather than a predetermined onetime basis, so usage is usually reported
on a shipment-by-shipment basis. Premiums and the level of coverage may
vary by destination or type of cargo covered. There are various levels
of coverage ranging anywhere between the following two extremes:

Minimum cover is what we in the United States call "free of particular
average" and most other people call "London Underwriter Institute
Clauses C." (See how the U.S. name plays to the difference between
particular and general average?) This coverage is normally inadequate
for shipments of any real value.

Maximum cover is what we call "all risk" and others call "London
Underwriter Institute Clauses A." Coverage levels differ from policy to
policy and insurer to insurer, but typically "all risk" covers every
cause that is not specifically excluded (or "warranteed free of"). As
mentioned above, "all risk" doesn't typically cover all risks and should
be enhanced by coverage for war as well as strike, riot, and civil
commotion (SRC), usually at modest additional premiums.

Companies frequently purchase single policies, covering both inland
marine and marine cargo or separate policies structured to dovetail the
risks. Obviously, companies that purchase marine cargo coverage against
policies owned by others (such as from freight forwarders) look to it in
addition to whatever inland marine coverage they may have for their
domestic business. A t this point, I apologize for my many
generalizations. Insurance coverage is often customized with special
conditions, inclusions, exclusions, deductibles, and franchises
(disappearing deductibles).

**What Is 'General Average'?**

Let's get back to general average. I'll quote from a book appropriately
titled Managing Exports:

General average is "a legal requirement that all parties in a voyage
contribute proportionately to cover expenses incurred as a result of
damage to a ship and/or its cargo, as well as those expenses incurred in
taking direct action to prevent damage or additional damage to a ship
and/or its cargo. All conventional marine cargo insurance coverage
levels cover this peril, but it has major consequences for uninsured
shippers.

Lacking coverage, they will likely be forced to place a cash deposit or
surety bond to release their cargo. These are often tied up for years as
general average proceedings are both lengthy and involved. Many general
average situations are covered by the York-Antwerp Rules (YAR).
(Managing Exports, Frank Reynolds and the Institute of Management and
Administration, John Wiley & Sons, Inc., 2003)

So if a ship is damaged, all parties must participate in the loss
regardless of whether their cargoes had anything to do with the problem.
This sounds goofy but is grounded in custom. Ship lines as we know them
are a fairly recent phenomenon in the long history of trade. Formerly, a
ship owner would form a sort of partnership with merchants having cargo
for trade in distant places. Off went the ship to the "New World" or
some other remote location. If it arrived and returned safely, there
were likely huge profits. If it sunk, everyone lost. The idea of cargo
owners and ship owners being in it together continues as general
average. Maybe that's how voyages came to be called "adventures."

In case you're wondering, we described the two types of casualty
insurance because some companies believe that their international
shipments are automatically covered by their inland marine policy. This
makes them vulnerable for not only the value of the goods but the
general average peril as well.

**Marine Cargo Insurance Providers**

[Allianz](http://www.allianz.ie/Business-Insurance/Specialised-Niche/Marine/Cargo-Insurance/index.html)

[American International Group](http://www.aigmarine.com/)

[Chubb Group Marine
Cargo](http://www.chubb.com/businesses/cci/chubb2612.html)

[CM&F Group, Inc.](http://www.cmfgroup.com/com/marine_cargo.html)

[CNA](http://www.ommni.com/index.asp)

[Eastern Marine
Underwriters](http://www.sireh.com/can/e/10/eastern_marine_underwriters)

[Export Insurance Services](http://www.exportinsurance.com/)

[Great American Insurance
Group](http://www.greatamericaninsurance.com/oceanMarine.html)

[INAMAR](http://www.inamarmarine.com/ocean_cargo.htm)

[Lloyds](http://www.lloyds.com/)

[Oceanwide, Inc.](http://www.oceanwide.com/Goverview.html)

[Roanoke Trade](http://www.roanoketrade.com/productservices/cargo.htm)

[Rogers & Brown](http://www.rogers-brown.com/services/insurance.html)

[Worldwide Ocean Cargo Insurance
Services](http://www.tsbic.com/cargo/index.html)

[Zurich North American Marine
Cargo](http://www.zurichna.com/marine_insurance.htm)

**ECUADORIAN CUSTOMS REFORM**

**ELIMINATION OF PRE-SHIPMENT INSPECTIONS (PSI)**

**Andres Gonzalez - November 07**

Summary

U.S. exporters to Ecuador should be aware of recent changes in customs
procedures that will be effective in coming weeks. The Government of
Ecuador (GOE) recently passed a new Customs law eliminating pre-shipment
inspection (PSI) regime. Under PSI, all goods exported to Ecuador from
the U.S. (or any other country) had to be physically inspected by a
verifier in the port of origin prior to being shipped to Ecuador.

The PSI requirement on shipments over \$4,000 will soon be expunged
altogether, along with verifiers, and replaced by a risk analysis system
run by the Ecuadorian Customs Agency (CAE). Under this system, all
importers will fall into pre-defined risk profiles. Importers with good
track records will be identified as low-risk; their cargoes will rarely
be inspected and will be released with minimum delays upon arrival in
Ecuador. For low-risk companies, the new system will ease and expedite
the process. On the other hand, physical inspection will be required for
all goods coming from what the Customs Agency considers to be high-risk
importers. This inspection will be conducted by customs officials at the
port of entry in Ecuador. High-risk importers will be classified as
such, based on past compliance and import history.

On the positive side, the good news for U.S. exporters and Ecuadorian
importers purchasing goods from the U.S. is that the reform includes
ostensibly streamlined customs processes in an effort to reduce the time
required by importers to take goods out of customs. Currently, once the
goods arrive at the U.S. port of debarkation, the process of getting the
verifier to check the shipment, prepare and send the documents to
Ecuador, then having Ecuadorian Customs confirm that the inspection has
taken place, etc., and send the documents back to the U.S. port, takes
several days. Then, when the goods eventually arrive in Ecuadorian
Customs, the procedure (inspection, tax payment, clearance) takes
between ten to twelve days, as opposed to five days in other countries.

Additionally, the GOE states that PSI elimination will reduce import
costs, as the inspection has had to be paid entirely by the importer. As
a result, importers would potentially be able to pass these savings on
to the end-user, a welcome benefit in a very price-sensitive market such
as Ecuador. On the other hand, supporters of PSI are concerned about how
corruption might affect the new risk analysis system.

The Government of Ecuador and CAE will be working in coming weeks on the
details and regulations for this

reform to be implemented.

**Resources & Contacts**

Ecuadorian Customs Agency / Corporación Aduanera Ecuadoriana (CAE)
[http://www.aduana.gov.ec](http://www.aduana.gov.ec/)

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**COMMERCIAL NEWS USA**

Commercial News USA is published six times a year. In addition to
special focus sections, each issue of the magazine includes sections for
advertisers from all industry sectors. Special distribution is planned
for key industry trade shows in both the U.S. and around the world.
Deadlines are included below.

March-April 2008

Franchising

Safety & Security

Wireless Communication

Deadlines:

Space January 11, 2008

Materials January 18, 2008

We hope you\'ve enjoyed this edition

of our newsletter.

Any mention of non-government sources

does not constitute endorsement.

Contact us at:

<little.rock.office.box@mail.doc.gov>

<http://www.buyusa.gov/arkansas>

Phone: 501-324-5794, Fax 7380

For a list of our upcoming Webinars

and other programs, [click
here.](http://www.buyusa.gov/arkansas/events.html)