Subscribe to our free, weekly email newsletter!


Global logistics: NCBFAA objects to pending new legislation on trade

By Patrick Burnson, Executive Editor
July 13, 2010

In a letter to House Ways and Means Committee Chairman Sander Levin and Ranking Member Dave Camp, National Customs Brokers and Forwarders Association of America, Inc. (NCBFAA) President Jeffrey Coppersmith urged them to exercise their Committee’s jurisdiction over the Foreign Manufacturer Legal Accountability Act and conduct a review to evaluate its impact on trade.

This proposal, H.R. 4678, requires foreign manufacturers whose products are sold in the U.S. to designate a registered agent for service of process in U.S. courts. Without a registered agent, the foreign manufacturer’s products would be prohibited entry into the U.S.

“When our foreign trading partners reciprocate with their own ‘registered agent’ provision, as they are likely to do, it will be very difficult and expensive for small and medium-sized companies to maintain registered agents in all the foreign markets to which they export,” said Coppersmith. “An even greater disincentive will be the exposure to litigation in these countries whose legal systems may not have safeguards and transparency as do our own.”?

In the NCBFAA’s view, it is unlikely that a foreign court would even enforce a U.S. court judgment against the foreign manufacturer making it impossible for H.R. 4678 to even realize its stated goal of holding foreign manufacturers accountable. Instead, President Coppersmith recommends relying on mechanisms already in place to address this concern.

“The legislation overlooks the fact that Customs and Border Protection (CBP), the Consumer Product Safety Commission (CPSC), the Food and Drug Administration (FDA), among other agencies, already have broad powers to seize, detain or refuse entry to defective or tainted products,” he noted. “U.S. importers are responsible to these and other agencies for the products they bring into the U.S. and are subject to potentially severe penalties for failure to comply with U.S.”

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Even though China’s costs have risen and the U.S. has now surpassed Mexico as the preferred locale for relocating offshored manufacturing, advantages can be fleeting and the challenges great

Memphis-based FedEx reported solid fiscal second quarter earnings results today. Quarterly net income of $616 million was up 23 percent annually, and revenue, at $11.9 billion, was up 5 percent. Operating income at $1.01 billion was up 22 percent.

UPS said this week that it has added significant space to some of its North America-based distribution facilities, which the company increases the total size of its supply chain solutions network size by roughly 1.2 million square-feet. The company’s total global supply chain solutions network is comprised of 596 facilities and about 32.8 million square-feet. UPS offers various services at these facilities, including: warehousing and fulfillment inventory, transportation and returns management; custom kitting and packaging; and store-ready displays.

A week ago, the average price per gallon of diesel gasoline saw its steepest decline in more than two years, when it fell 7 cents to $3.535. This week took that decline a step further, with the Department of Energy’s Energy Information Administration (EIA) reporting that the average price this week fell 11.6 cents to $3.419 per gallon.

With an eye on further expansion of its e-commerce business and related reverse logistics processes, transportation and logistics bellwether FedEx last night announced it has inked an agreement to acquire Pittsburgh-based GENCO, a third-party logistics (3PL) services provider specializing in product lifecycle and reverse logistics.

Article Topics

News · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA