No. 23
Friday February 3, 2006
Page A-4
ISSN 1523-567X
Regulation & Law
International Trade
Huge U.S. Beef Shipment to Japan Blocked In Port; Importers Ask U.S. to Pay Damages
TOKYO--Shipments of more than 2,000 tons of U.S. beef to Japan are being blocked from distribution by Japanese customs officers and are in danger of becoming "homeless" while an industry group prepares to ask Washington to pay for damages, an industry official told BNA Feb. 2.
As of Jan. 31, more than 1,400 tons of U.S. beef--most of it in chilled form and thus needing to be consumed promptly--ordered by member firms of the Japan Meat Trade Association were held up in bonded warehouses and refrigerated containers, said Tatsuo Iyama, JMTA executive managing director.
Including on-board shipments that have yet to be unloaded at Japanese ports, the total tonnage would exceed 2,000 tons, he said. The aggregate import cost would be 2.3 billion yen or more than $19.8 million, Iyama estimated.
In December 2003, when Japan imposed the first import ban on U.S. beef, as much as 13,000 tons of U.S. beef were incinerated in Japan, the cost paid for by insurance. This time, however, Iyama said "insurance companies refused to cover the risk, and we would be forced to foot the bill unless the U.S. government and/or the Japanese government pay for it."
JMTA is asking the U.S. Embassy in Tokyo to accept the ship-back of the blocked meat at U.S. expense, but it has not heard back from the embassy, Iyama said. He also said that if that option is not possible, importers would agree to have the meat frozen and store it until Japan reopens imports--provided the United States paid for storage and other costs.
"Our view ... is that the United States should take full responsibility and pay for the entire cost since the problem was caused by a U.S. company," he said. "My concern is that if the United States can get away with not taking responsibility, then our members will think that it is too dangerous to import U.S. beef since nobody could be sure if similar problems would not happen."
Asked about the possibility of re-exporting the meat to third countries, such as Taiwan and Korea, Iyama said this option would be impractical since other countries would spend weeks before making decisions. As a result, he said, the U.S. beef could become "homeless."
Japan resumed imports of U.S. beef in mid-December but after finding packages that contained spinal bones in January, it again halted imports in mid-January. Spinal bones are defined as risky parts that could cause bovine spongiform encephalopathy (BSE), or mad cow disease.
By Toshio Aritake
Friday February 3, 2006
Page A-4
ISSN 1523-567X
Regulation & Law
International Trade
Huge U.S. Beef Shipment to Japan Blocked In Port; Importers Ask U.S. to Pay Damages
TOKYO--Shipments of more than 2,000 tons of U.S. beef to Japan are being blocked from distribution by Japanese customs officers and are in danger of becoming "homeless" while an industry group prepares to ask Washington to pay for damages, an industry official told BNA Feb. 2.
As of Jan. 31, more than 1,400 tons of U.S. beef--most of it in chilled form and thus needing to be consumed promptly--ordered by member firms of the Japan Meat Trade Association were held up in bonded warehouses and refrigerated containers, said Tatsuo Iyama, JMTA executive managing director.
Including on-board shipments that have yet to be unloaded at Japanese ports, the total tonnage would exceed 2,000 tons, he said. The aggregate import cost would be 2.3 billion yen or more than $19.8 million, Iyama estimated.
In December 2003, when Japan imposed the first import ban on U.S. beef, as much as 13,000 tons of U.S. beef were incinerated in Japan, the cost paid for by insurance. This time, however, Iyama said "insurance companies refused to cover the risk, and we would be forced to foot the bill unless the U.S. government and/or the Japanese government pay for it."
JMTA is asking the U.S. Embassy in Tokyo to accept the ship-back of the blocked meat at U.S. expense, but it has not heard back from the embassy, Iyama said. He also said that if that option is not possible, importers would agree to have the meat frozen and store it until Japan reopens imports--provided the United States paid for storage and other costs.
"Our view ... is that the United States should take full responsibility and pay for the entire cost since the problem was caused by a U.S. company," he said. "My concern is that if the United States can get away with not taking responsibility, then our members will think that it is too dangerous to import U.S. beef since nobody could be sure if similar problems would not happen."
Asked about the possibility of re-exporting the meat to third countries, such as Taiwan and Korea, Iyama said this option would be impractical since other countries would spend weeks before making decisions. As a result, he said, the U.S. beef could become "homeless."
Japan resumed imports of U.S. beef in mid-December but after finding packages that contained spinal bones in January, it again halted imports in mid-January. Spinal bones are defined as risky parts that could cause bovine spongiform encephalopathy (BSE), or mad cow disease.
By Toshio Aritake