July 2008

• AeA Chair and CEO Lead Member Company Delegation for Meetings with Senior Officials in Brussels and Paris
• AeA International Committee Exchanges Views with Trade Advisor to Obama Campaign, Dan Tarullo
• Grant Aldonas, Trade Advisor to McCain Campaign, Meets with AeA International Committee to Discuss Candidates Trade Views
• Senior China and U.S. Government Officials Highlight 4th Annual Trade Compliance Seminar in Shanghai Hosted by AeA
• AeA International Environment Compliance Programs in Chicago, Boston and Silicon Valley Provide In-depth Review of Global Regulations
• US Census Bureau Updates Export Controls Committee on Details of New Foreign Trade Regulation: Bureau of Industry and Security Provides Status of Regulatory Changes
• Customs Committee Hears from USTR on Recently Filed Dispute Consultation at WTO: Customs and Border Protection Outlines Priority Trade Initiatives
• AeA International Environment Committee Reviews Global Regulatory Developments and Agrees on New “Myth-Busters” Initiative
• AeA China RoHS Steering Committee to Meet with MIIT and CNCA in July
• AeA Works with Congressman Manzullo on H.R. 5828 “Securing Exports Through Coordination and Technology Act”
• AeA Supports USTR in Dispute Consultation Request with EU on Information Technology Agreement
• AeA Continues to Engage Congress on Global Online Freedom Act
• AeA Co-chairs US-India ICT Dialogue IT Subgroup Meeting on July 1, 2008 in Washington, DC
• AeA Responds to EU Consultation on Levies for Private Copying
• AeA Research Team Releases Reports on Colombia and Korea Free Trade Agreements, US-China Economic Relationship
• Upcoming Events
• Photo Gallery from AeA International Events Around the U.S.

AeA Chair and CEO Lead Member Company Delegation for Meetings with Senior Officials in Brussels and Paris

Deirdre Hanford, Senior Vice President, Technical Services, Synopsys, and Chairwoman of the AeA Board of Directors, led an executive delegation along with Chris Hansen, AeA President and CEO, on April 15 -17, for a series of meetings in Brussels and Paris with European Union and French government officials. The delegation included AeA Board Members from Freescale Semiconductor, Pipeline Software, and Xerox; as well as European representatives from Agilent Technologies, GE, HP, Microsoft, Symantec, and United Technologies.

Executive Delegation in Europe, led by Dierdre Hanford, Chairwoman of the AeA Board of Directors
and Chris Hansen, AeA President and CEO

In Brussels the delegation had the chance to talk with the Commissioner for Environment, Stavros Dimas, as well as the Commissioner for Information Society and Media, Viviane Reding. Other Commission meetings included Andris Kesteris, Chief of Staff for the Energy Commissioner, and David O’Sullivan, Director General for Trade. They also had dinner in the European Parliament with seven members of the Parliament organized by Jonathan Evans, Chairman of the Delegation for Relations with the U.S.

Since the French Government took over the EU Presidency on July 1, the AeA delegation also sought to persuade them to address our concerns as part of their Presidency agenda. In preparation for the French meetings, the group met for breakfast with Craig Roberts Stapleton, the U.S. Ambassador to France, and C. Boyden Gray, Special Envoy to the EU, at the Ambassador's residence in Paris. From there the delegation moved to successive meetings with senior staff at the Ministry of Commerce, the Ministry of Foreign and European Affairs, and the Ministry for Ecology and Sustainable Planning and Development.

The meetings focused on getting policy makers to recognize high-tech as part of the solution to energy efficiency and climate change challenges rather than the problem. Using the energy efficiency report released by AeA Europe last September, they raised awareness among the EU Commissioners and French officials of the many ways technology improves energy efficiency across industries. The Chairwoman’s report providing more detailed information on the meetings and the other policy issues discussed is available to members on the AeA website.

For more information contact Rob Mulligan, Senior Vice President International at 202.682.4452.

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AeA International Committee Exchanges Views with Trade Advisor to Obama Campaign, Dan Tarullo

Dan Tarullo, Advisor to the Obama Campaign on International Trade and Economics, spoke to the AeA International Committee about Sen. Obama’s views on trade and international policy. First, he believes that trade and globalization can work for all Americans and he wants to make it work. Second, current policies are not working and we need to change trade policies.
He felt that the Colombia FTA situation illustrates the dysfunction of the current system. There was a lack of consultation between the White House and Congress, it did not adequately address environment and labor concerns, and the country has not taken steps to help American workers with health care, TAA, education or making a better life. Sen. Obama wants to re-align trade and other policies to promote job creation in the U.S. The trade approach must integrate the impact of all policies on all Americans. Minutes with more detailed information on the comments by Tarullo and responses to member company questions are available to members on the AeA website.

Dan Tarullo, Advisor to the Obama Campaign on International
Trade and Economics, addresses the AeA International Committee

For more information contact Rob Mulligan, Senior Vice President International, at 202.682.4452

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Grant Aldonas, Trade Advisor to McCain Campaign, Meets with AeA International Committee to Discuss Candidates Trade Views

Grant Aldonas, Trade Advisor to the McCain Campaign, began his discussion on trade by asserting that Washington’s vision of international economics is out of date and challenged the assumption that globalization is the cause of downward pressure on wages of U.S. workers. He believes that American workers need to be able to adapt to global changes and become more competitive. The U.S. could lose its competitive edge if its markets do not remain open. Senator McCain has a strong free trade stance and supports the use of the multilateral and bilateral processes. McCain also recognizes the importance of Asia and plans to devote time and resources to securing American economic interests in the region. McCain supports an international economic policy that would anchor the U.S. with China. However, Aldonas suggested that the U.S. will have to delicately balance between enforcing China’s economic responsibilities and remaining sufficiently economically engaged with the nation. Minutes with more detailed information on the comments by Aldonas and responses to member company questions are available to members on the AeA website.

Grant Aldonas, Trade Advisor to the McCain Campaign pictured here
with Rob Mulligan, Senior Vice President International, AeA

For more information contact Rob Mulligan, Senior Vice President International, at 202.682.4452

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Senior China and U.S. Government Officials Highlight 4th Annual Trade Compliance Seminar in Shanghai Hosted by AeA

On Thursday, March 20, AeA and SEMI hosted the 4th Annual China Customs and Export Controls Seminar in Shanghai. The event was sponsored by AeA member companies Cymer, QUALCOMM, Texas Instruments, Matheson Tri-Gas, and PricewaterhouseCoopers. The event was sold out for the second year in a row and was attended by 175 customs and export compliance professionals from Chinese companies, U.S. subsidiaries, customers, and supply chain partners.

Government speakers included:

• Madame Zhou Ruojing, Deputy Director-General, Department of Electronic, Mechanic and High Tech Industries, MOFCOM, Beijing;

• Bernie Kritzer, Director, Office of National Security and Technology Transfer Controls, Bureau of Industry and Security, U.S. Department of Commerce, Washington, DC;

• Jeannette Chu, Export Control Attache, USFCS, U.S. Embassy, Beijing;

• Wu Hua Ding, Director, Shanghai Customs Legal Division;

• Zhou Hui, Director of Division; and

• Wang Xiao, Deputy Director, Shanghai Entry-Exit Inspection and Quarantine Bureau of the People’s Republic of China.

The program included four panels: China policy and regulatory environment, United States policy and regulatory environment, risk management and internal controls for trade compliance and Chinese customs compliance and border issues. Industry speakers and moderators represented Applied Materials, Cymer, Tektronix, Larkin Trade International, SMIC, Ernst & Young, and PricewaterhouseCoopers.

A detailed program agenda with all topics and speakers and the event flyer can be accessed on the AeA webpage.

Ken Schramko, Manager, Public Policy, SEMI and Ken Montgomery, Director, International Trade Regulation, AeA; pictured at SEMICON China 2008.

The sold out event was attended by 175 customs and export compliance professionals from Chinese companies, U.S. subsidiaries, customers and supply chain partners.

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AeA International Environment Compliance Programs in Chicago, Boston and Silicon Valley Provide In-depth Review of Global Regulations

On May 8, 9 and 13, 2008 AeA held it’s annual “International Environment Compliance Program: High Tech and Global Environmental Regulations 2008 Update” in Chicago, Boston and Silicon Valley respectively. The main speakers, Steve Andrews from UK Department for Business, Enterprise and Regulatory Reform (BERR) and Chris Smith from UK RoHS Enforcement Authority (NWML) provided a thorough policy and enforcement update. They covered the following directives: European Restriction of Hazardous Substances (RoHS), Waste of Electrical and Electronic Equipment (WEEE) and Energy Using Products (EuP). With growing concerns over Registration, Evaluation, and Authorization of Chemicals (REACH), Ken Rivlin and Felise Cooper from Allen & Overy, LLP provided a comprehensive overview of the directive and related requirements for importers, producers and downstream users.

Building on AeA’s leadership on “China RoHS,” Michaela Muranova, AeA, explained ongoing enforcement activities of China RoHS Labeling and Information disclosure requirements, as well as an outline of our expectations in the area of catalogue development, certification process and related expected time frames. With material restrictions regulations expanding to other countries, Michaela also talked about various regulations currently in effect such as Korea RoHS/WEEE and emerging ones in countries such as Australia and Thailand. Additionally, Holly Evans, AeA’s environment consultant spoke to the attendees about energy efficiency and green procurement initiatives in the United States and abroad. Holly Evans and our local AeA staff and lobbyists also covered domestic state e-waste and chemicals policy legislation, which continues to expand rapidly throughout the States. Presentations from the program are available to members on the AeA website.

For more information contact Rob Mulligan, Senior Vice President International, at 202.682.4452.

Attendees at the Silicon Valley event at Sun Microsystems

Speakers from the Chicago event at Motorola

Chris Smith, UK RoHS Enforcement Authority, speaks at the Massachusetts event at Philips

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US Census Bureau Updates Export Controls Committee on Details of New Foreign Trade Regulation: Bureau of Industry and Security Provides Status of Regulatory Changes

Microsoft Corporation hosted the second quarter meetings of the AeA Customs and Export Controls Committees at the corporate headquarters in Redmond, WA. On Thursday, June 12, 2008, Rita Spencer-Rout, Director, Global Trade Solutions, Cymer, and West Coast Chair of the AeA Export Controls Committee facilitated the quarterly meeting attended by over fifty trade compliance professionals. Attendees received an update on the recently published mandatory Automated Export System (AES) regulation from William G. Bostic Jr., Division Chief, and Dale Dickerson Kelly, Chief, Regulations, Outreach and Education Branch, Bureau of Census, Foreign Trade Division.  All companies must be compliant with the provisions of this rule by September 30, 2008.

Matthew S. Borman, Acting Assistant Secretary for Export Administration, Bureau of Industry and Security, U.S. Department of Commerce provided a regulatory update including status of the intra-company transfer license exception, expanded entity list, encryption regulation and Commerce Control List (CCL) review. Speaker presentations and meeting minutes are available to members on the AeA webpage.

For more information contact Ken Montgomery, Director, International Trade Regulation, at 202.682.4433

Participants in the AeA Customs and Export Controls Committee Meetings held at
Microsoft Corporation in Redmond, WA

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Customs Committee Hears from USTR on Recently Filed Dispute Consultation at WTO: Customs and Border Protection Outlines Priority Trade Initiatives

On Friday, June 13, 2008, the AeA Customs Committee, Chaired by Anne Marie Griffin, Deputy Director Global Trade Policy, Microsoft Corporation heard from Jason Bernstein, Director for Market Access, Office of Industry, Market Access, and Telecommunications at the Office of the United States Trade Representative. Mr. Bernstein informed committee members of the process and next steps for the recently filed dispute consultation in the World Trade Organization with the European Union. Several AeA members have contributed to the efforts leading up to this action.

Brenda Brockman Smith, Executive Director, Trade Policy and Programs, Office of International Trade, and Kimberly Marsho, Director, Trade Relations, Office of International Affairs and Trade Relations, U.S. Customs and Border Protection (CBP) informed attendees of the seven priority trade issues, status of mutual recognition of security programs and current trade facilitation initiatives. Detailed meeting minutes are available to members on the AeA webpage.

For more information contact Ken Montgomery, Director, International Trade Regulation, at 202.682.4433

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AeA International Environment Committee Reviews Global Regulatory Developments and Agrees on New “Myth-Busters” Initiative

On Tuesday, April 8, 2008, over 25 member company representatives participated in an all day, AeA International Environment Committee meeting in Santa Clara, CA. Participating members heard from several speakers who provided updates on a broad range of issues including: European regulations such as EuP, REACH, RoHS and WEEE, as well as Korea RoHS, China RoHS, Global Energy Efficiency initiatives and an overview of the environmental activities led by the US Department of Commerce. Speakers included: DaeYoung PARK, Secretary General at the Korean Environment Council in Europe; Jon Boyens, US Department of Commerce; Jennifer Stradtman, US Department of Commerce; Tad Ferris, Partner at Holland & Knight ; AeA Consultant, Holly Evans; and AeA staff. The committee discussed and agreed to launch a new initiative, which would create a series of one page “Myth-Busters”. These documents will focus on some of the issues raised by NGOs or governments that do not reflect technical and scientific realities of our industry. (e.g., Energy efficiency, Halogen-Free Proposals, New Substance Restrictions Battery Restriction/Ban Proposals). Minutes from the meeting are available to members on the AeA website.

For more information contact Rob Mulligan, Senior Vice President International, at 202.682.4452

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AeA China RoHS Steering Committee to Meet with MIIT and CNCA in July

In preparation for the second phase of the China RoHS regulation, the restriction of hazardous substances and certification process, the AeA China RoHS Steering Committee has developed position papers and presentations for meetings with the new MIIT (Ministry of Industry and Information Technology) and Chinese Certification and Accreditation Administration (CNCA) on July 14 and 15. Building on our strong relationship with MII, AeA member companies will have an information sharing meeting with Director Huang and his team to go over certification issues. Since CNCA will be the leading agency in the certification process, AeA has scheduled a more formal meeting with appropriate officers, to explain our understanding of current Chinese Voluntary RoHS certification process for exports to the EU and any issues we see with a possibility of applying this process for China RoHS. The meetings are seeking to influence the regulators before they are far along in drafting certification requirements.

For more information contact Rob Mulligan, Senior Vice President International, at 202.682.4452

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AeA Works with Congressman Manzullo on H.R. 5828 “Securing Exports Through Coordination and Technology Act”

Members of the AeA Export Conrtrols Committee have met with Lauren Airey, Legislative Assistant for Representative Don Manzullo (R-IL) on three occasions, most recently June 30, 2008. The objectives of H.R. 5828 are to make improvements in the electronic filing of export data, strengthen enforcement authorities under the Export Administration Act of 1979, and for other security and control purposes. AeA members provided Ms. Airey with detailed background information and the process steps companies currently perform to ensure compliance and file export data in the Automated Export System (AES). Issues addressed included system false positives, additional due diligence and research efforts, and potential government approvals and shipment delays. AeA has also provided input for the language in sections 302 and 305 of the bill. AeA will continue to work with Congressman Manzullo’s staff as the bill language is revised to be implementable for industry.

For more information contact Ken Montgomery, Director, International Trade Regulation, at 202.682.4433

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AeA Supports USTR in Dispute Consultation Request with EU on Information Technology Agreement

On May 28, 2008 Susan Schwab, US Trade Representative, initiated a request for dispute consultation in the World Trade Organization with the European Union over duties being imposed on certain products covered by the Information Technology Agreement (ITA). Under the ITA, which the US and EU signed in 1996, participants agreed to eliminate tariffs on a range of information technology products, but the EU has in recent years imposed duties on products such as multifunction printers, set-top boxes and LCD monitors which it has unilaterally decided are no longer covered due to improvements to the products. Several AeA members have been impacted by the duties applied. The Customs Committee has provided detailed product specifications and tariff treatment information to USTR during the past 18 months. AeA issued a press release in support of the USTR action and has released a report on the ITA that provides background on the agreement and our concerns with the EU approach. The report is available on the AeA website.

For more information contact Rob Mulligan, Senior Vice President International, or Ken Montgomery, Director, International Trade Regulation, at 202.682.4433

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AeA Continues to Engage Congress on Global Online Freedom Act

AeA has continued to monitor any likely Congressional action on HR 275, the Global Online Freedom Act of 2007, which would impose various requirements and constraints on US companies operating in internet restricting countries, such as China. To address AeA members’ concerns over this legislation, which could negatively affect US business operating in China, AeA has held numerous meetings with the House and Senate staff members including Senators Whitehouse and Durbin, Senate Foreign Relations Committee staff and Rep. Ros-Lehtinen, ranking member of the House Foreign Affairs Committee. AeA also met with officials from the US State Department, US Department of Commerce, and the office of the US Trade Representative. AeA will continue to lead industry efforts to oppose this bill in its current form and we will keep our members informed of the latest developments.

For more information contact Rob Mulligan, Senior Vice President International, at 202.682.4452

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AeA Co-chairs US-India ICT Dialogue IT Subgroup Meeting on July 1, 2008 in Washington, DC

On July 1, 2008, AeA co-chaired the IT subgroup discussions of the semi-annual meetings of the US-India ICT Dialogue. The ICT Dialogue is an initiative organized under the umbrella of the US Department of State. To build on success of last December’s meetings held in New Delhi, India, AeA and ITAA came together to address a wide range of tax issues in regard to packaged software and technology parks as well as a hardware taxation issue. Our group also expressed serious concerns over government mandated technical, security and encryption requirements. On the Indian side, the delegation was seeking access to the U.S. Homeland Security market, and requested increased collaboration in the areas of data privacy, security and research collaboration. The US issues paper for the meeting and several other related documents are available to members on the AeA website.

For more information contact Rob Mulligan, Senior Vice President International, at 202.682.4452

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AeA Responds to EU Consultation on Levies for Private Copying

On April 18, 2008, AeA submitted comments to the European Commission in response to a request for consultation on “Fair Compensation for Acts of Private Copying” issued by the Commissioner for Internal Markets, Charles McCreevy. Several countries in Europe impose levies on certain products that could be used for private copying as a means to compensate right holders for the use of their work. However, the levies differ significantly by country as to the amount and type of products covered. In addition, there is much legal uncertainty regarding the liabilities of many companies, including several AeA members, that could be extensive depending on how the laws are interpreted and applied. AeA developed its submission outlining concerns with the current system and recommending changes. AeA is working with other associations in Europe to support plans by the Commission to establish a working group to study the key issues raised by the industry and determine the appropriate measures for improving the levies system.

For more information contact Rob Mulligan, Senior Vice President International, at 202.682.4452

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AeA Research Team Releases Reports on Colombia and Korea Free Trade Agreements, US-China Economic Relationship

• The U.S.-Colombia Free Trade Agreement
  Building Blocks for Trade and Open Markets in South America
  March 2008
  
  Colombia is one of the United States’ fastest growing markets for high-tech goods. This report argues for passing the U.S.-Colombia Free Trade Agreement, which will improve market access, increase intellectual property protection for American high-tech products and services, and promote stability in a region vital to the United States.
   

• The U.S.-South Korea Free Trade Agreement
  Improving Access and IP Protection for American High-Tech Products and Services
  May 2008
  
  South Korea is the seventh largest market for U.S. high-tech goods ($8.9 billion in high-tech exports in 2007). This report argues for passing the U.S.-South Korea Free Trade Agreement, which will improve market access and increase intellectual property protection for American high-tech products and services.
   

• The U.S.-China Economic Relationship
  Both Countries Benefit from Mutual Trade and Investment
  May 2008
  
  China is the third largest market for U.S. high-tech goods ($14.5 billion in high-tech exports in 2007). This report argues that public policy in both the United States and China must recognize the interdependent nature of our economies and avoid protectionism and distorting trade practices. Such policies restrain trade, damage economies, and raise prices for consumers.

Electronic versions of all editions of the Competitiveness Series are available at: www.aeanet.org/cs.

For more information contact Rob Mulligan, Senior Vice President International, at 202.682.4452

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Upcoming Events:

• July 17, 2008, Santa Clara, CA: Bureau of Industry and Security official will provide update on regulatory initiatives as well as a policy discussion on the CCL review. Hosts: AeA, SEMI and SIA. Location: AeA, 5201 Great America Parkway, Suite 400, Santa Clara, CA

  • AeA Interest:  Opportunity for AeA Export Controls Committee members to hear from BIS and provide recommendations on the CCL revision.
     

• September 16, 2008, Brussels, Belgium: AeA All-Member Plenary Meeting – Host: AeA Europe

  • AeA Interest:  Annual meeting of all AeA Europe member companies to discuss and confirm issue priorities for the year and hear from leading EU officials on key member issues.
     

• September 18, 2008, Sunnyvale, CA: 2nd Annual AeA Bay Area Global Trade Compliance Best Practices Conference - Hosts: AeA and NetApp.

  • AeA Interest:  All day global trade compliance best practices seminar with panels focusing on customs compliance, export compliance and India trade compliance. Excellent education and training opportunity for AeA member company compliance personnel.
     

• September 19, 2008, Santa Clara, CA: Q3 2008 AeA Export Controls Committee Meeting – Host: Agilent Technologies

  • AeA Interest:  Regular quarterly gathering of Committee members to develop AeA positions on export control issues, meet and hear from key government officials, and exchange views on industry concerns.
     

• September 19, 2008, Santa Clara, CA: Q3 2008 AeA Customs Committee Meeting – Host: Agilent Technologies

  • AeA Interest:  Regular quarterly gathering of Committee members to develop AeA positions on customs issues, meet and hear from key government officials, and discuss best practices in trade compliance.

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Photo Gallery from AeA International Events Around the U.S.

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This page was last updated on 07/10/08.  
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