Ottawa and Washington have confirmed that the SLA requires that export permits be filed for all shipments "Released" into the U.S. prior to mid-night March 31^st. This means that exporters thinking to take advantage of not participating in a designated change in "Immediate Delivery Release" to "Entry" at the time a shipment crosses the border, must realize that if they do, their shipments could not only be impacted by "Critical Circumstance" liability, but will be impacted by permit fee base costs. We will physically change the "I.D. Release" on Automated Broker Interface hard-copy releases to "Entry", and submit a letter listing all Line Release C-4 Bar Code releases be accepted as "Entry", as well. This means that the date the shipment crosses the border will also be the entry date, instead of the date the final "Entry Summary" paperwork (as late as ten working days later) is submitted. Example: A shipment crosses the border on March 23^rd. If we did not change the "I.D. Release" to reflect "Entry", and the "Entry Summary" was not finalized until after April 2^nd, that March 23^rd shipment could be impacted by whatever liability is finally determined by the CVD/ADD, to include "Critical Circumstance" actions.

The normal process in invoking "Critical Circumstances" involves a review of a specific timeframe, say three months (a quarter), to determine if there has been a "surging" or "flooding" of the U.S. market by the exporting country’s industry. The reason some feel there could be a couple of weeks or more "window of opportunity" or actual free trade, is that the data for that three-month period (April, May and June) must be reviewed, a positive determination made, and be published. It’s estimated that the review and publication timeframe could be anywhere from a couple weeks to a month or more. "Critical Circumstance" actions are restricted to a ninety-day retroactive backdating. So, if a positive determination were published sometime in July or later, the corresponding weeks after March 31^st would not be impacted. The later the publication, the more days after March 31^st (not captured by the CVD/ADD or "Critical Circumstances" liability), could be considered a "window of opportunity". However, if only a two-month time frame is used to review "Critical Circumstances" and the positive determination is made in June – the ninety-day retroactive action would encompass April 1, forward. We also understand that U.S. parties will petition to re-define "Critical Circumstances", determining that non re-negotiation of the SLA is reason enough - with an immediate publication of a positive determination. - and you come to the realization that any attempt to take advantage of this espoused window of opportunity is a real gamble.

We are not inferring that an exporter should not ship during the first few weeks of April, we are just doing are best to make all aware of your liabilities so that you can negotiate the circumstances of these shipments with your U.S. Customers.

Until a positive determination of "Critical Circumstances" or the CVD/ADD investigation is published, it would appear that the Importer of Record’s regular 301 Bond will remain effective.

Michael D. Jones, President