BULLETIN FROM CPNA INTERNATIONAL

Our international trade lawyer in Washington, D.C. informed us that on
April 2nd the major exporter of Chinese honey will have a duty increase
from 22% to 212%, which must be paid in cash. For your reference, this
decision was expedited from the due date at the end of April, after a
formal complaint was launched to the D.O.C. that there was what is
legally called "changed circumstances". The D.O.C. determined that there
was an "extraordinary surge of honey exports" from China to the U.S. 

As a consequence, the D.O.C. expedited the imposition of the 212% cash
duty rate effective April 2nd. As a result, at least 2 million pounds of
honey, that was about to be shipped to the U.S. from Chinese ports, was
withdrawn and the shipments cancelled under these force majeur
conditions. The impact on the honey market is obvious. Not only is the
supply of white honey tightening and prices rising, but maintaining
quality parameters will face new challenges. 

The decision was formally published in the Federal Register on April
2nd, 2007. This situation regarding Chinese honey exports has been
clarified and the ambiguity has been eliminated. 

From Ron Phipps, President CPNA International

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