|
Canadians Support Canada-EU Trade Talks
|
 |
Prime Minister Stephen Harper had the backing of a majority of Canadians as he launched the next phase of trade talks with the European Union earlier this month, a recent poll suggests.
The talks with nations involved in the EU are the latest in a string of negotiations aimed at making it easier for goods and people to flow across borders, on the premise that markets that are more open generate more trade and more jobs.
The Canadian Press Harris-Decima poll, conducted among 1,000 Canadians showed strong support for trade talks with the European Union specifically, with 75 per cent saying they thought it was a good idea.
|
Form E29B, Temporary Admission Permit: Form Requirements
|
 |
Beginning
January 1, 2010, the Canada Border Services Agency (CBSA) will no
longer accept the Temporary Admission Permit, Form E29B when printed on
forms which consist of coloured sheets separated by carbon paper.
The Form E29B
must still be submitted to the CBSA in hard copy. If the form is
completed by hand, it must be submitted on legal size paper. If the
form is completed electronically, it may be submitted on letter sized
paper.
Additional information on how to complete this form is available in Memorandum D8-1-4.
|
| Pay Invoices Online
|
|
 |
WTO Secretariat Reports Increase in New Anti-
Dumping Investigations
|
 |
The
WTO Secretariat reported that during the period 1 July - 31 December
2008, the number of initiations of new anti-dumping investigations
showed a 17 per cent increase compared with the corresponding period of
2007. On a yearly basis, there were 208 initiations of new anti-dumping
investigations in 2008, as compared to 163 in 2007 and 202 in 2006.
The
countries reporting the highest number of new initiations during
July-December 2008 were India, reporting 42, followed by Brazil,
reporting 16, China (11), and Turkey (10). Products exported from China
were the most frequent subject of new measures during the same period.
|
Export Control List Amended
|
 |
On
April 30, 2009, the Government of Canada finalized the regulatory
process to amend the Export Control List. This amendment serves to
provide greater clarity and to ensure currency of Canada's export
controls of strategic items pursuant to its multilateral obligations.
A brief overview of the key changes to the items affected by this amendment and an electronic version of A Guide to Canada's Export Controls - 2007 (142 pages PDF 1.2 MB) are provided on the Export Controls Division website.
|
CBP Makes "Significant Change" in Textile Entry Requirements
|
 |
U.S. Customs and Border Protection (CBP) recently issued a memorandum to its field offices outlining "a significant change in textile entry requirements" in light of the elimination of quotas on merchandise from China entered after Dec. 31, 2008.
Formal Entry
On May 24, 1989, CBP provided a list of HTSUS numbers that required formal entry regardless of value because of quota/visa concerns as well as a separate list of HTSUS numbers for which formal entry was required because of regulatory require-ments. With the
elimination of the China quotas, however, there is no longer a require- ment to file a formal entry as established by TBT-01-036, except (pursuant to 19 CFR 143.21(a)) with respect to shipments of articles valued in excess of $250 that are classified in HTSUS
Sections VII, VIII, XI and XII; Chapter 94; and Chapter 99, subchapters III and IV. The following HTSUS numbers currently fall within these sections:
· 3901.10.1000 - 4304.00.0000
· 5001.00.0000 - 6704.90.0000
· 9401.10.4000 - 9406.00.8090
· 9903.02.21 - 9904.52.50
CBP states that it is in the process of reviewing the above regulations to raise the $250 limit but that before a change can be implemented it must be proposed through the formal regulatory process.
Commercial Samples
With the elimination of the visa arrangements, CBP states, no provisions remain that allow for properly marked commercial sample shipments. As a result, samples entering the U.S. must now meet the conditions in HTSUS chapter 98, under subheading 9811.00.60, providing for mutilated samples, or another chapter 98 provision, as appropriate.
|
Proposed "Trade Act" Could Lead to Re-opening of NAFTA
|
 |
A comprehensive new trade reform bill introduced this week would put the brakes on pending trade agreements and could result in re-opening existing pacts such as the North American Free Trade Agreement.
The proposed legislation would require that pending agreements with Panama, Colombia and South Korea be renegotiated to meet the TRADE Act's requirements.
"This is the opportunity to build a new model for trade," said Michaud, noting that a companion bill in the Senate is also in the works.
Business groups and industry lobbyists, however, say the measure would stifle trade and seriously harm the U.S. economy. Read more here.
|
|
|
|
GHY E-Newsletter Issue #1 June · 2009
|
|
NAFTA - Free Trade Benefits, with Strings Attached
Reynold Martens, Executive Vice President, GHY International
The North America Free Trade Agreement, or NAFTA, has been in place since 1989, and offers importers and exporters in Canada, the United States, and Mexico, the benefits of duty free access within all three markets under certain conditions.
The Importer of Record must be in possession of a Certificate of Origin completed by the supplier or producer that identifies the goods in question complete with the tariff classification for each to 6 digits, certifies that they meet the eligibility criterion applicable, and is signed by a qualified officer of the producing entity.
On the surface, those conditions appear straightforward, but like most regulations, there is complexity that Canadian importers and exporters must be aware of, and compliant with, in order to avoid the consequences of stiff penalties and fines that can be applied for invalid certificates. In addition, retroactive payment can be demanded of the Importer of Record for any duties that are owed if certificates are found to be invalid by CBSA or US CBP in a desk audit or comprehensive review of your activity.
The eligibility criteria for NAFTA benefits vary with the product involved. There are 99 chapters containing about 10000 unique tariff classifications in the HS, each with a corresponding NAFTA criterion that must be met in order to qualify for duty-free entrance status.
In short, to be eligible for NAFTA benefits the goods must be wholly produced in one of the three signatory countries, or be substantially transformed in the manufacturing process, or meet regional value content percentage thresholds.
So, what do you need to do as an Canadian importer of record, or as the US importer of record, to be compliant with NAFTA's conditions?
Firstly, make sure you have NAFTA certificates of origin on hand at the time your goods are imported or exported, that they are fully completed, signed by an appropriate officer, and reflective of the products you purchase or ship. If there are discrepancies, missing fields, or the signature is not from a qualifying officer, pursue a correct and valid certificate immediately, and advise us as your broker.
Certificates can produced on a "one time" basis for a specific shipment, or as "blankets", that can cover multiple shipments for a period of up to a year.
Secondly, be on the look out for new products you import from your US or Mexican suppliers, or new products you ship to the US or Mexico, obtain updated certificates from your supplier, or update your master certificate accordingly, and advise GHY Canada or GHY USA of the changes.
Lastly, blanket certificates need to be renewed annually, so begin pursuing certificates for the upcoming calendar year in November or December, so there is plenty of time to receive them from your US or Mexican vendors, or for you to create a new master certificate as the US importer of record, so your NAFTA benefits are not interrupted.
You may want to consider utilizing GHY's NAFTA renewal management services, which can reduce the amount of work involved in creating or pursuing certificates.
Contact Alan Dewar, Vice President Canadian Operations (dewar@ghy.com), Vicki DeLuca,Vice President, GHY USA Operations (vicki@ghy.com), or your Account Manager for more information or assistance with your NAFTA program.
|
Canada Being "Vigorous" on Free Trade Front as U.S. Slumps
Amid falling demand for exports from the U.S., Canada's chief trading partner, the Harper government is actively seeking new free trade agreements with the European Union and other nations.
"As we see our neighbour losing some of its ability to purchase, that makes the case even more obvious,"Trade Minister Stockwell Day said in an interview in Riga, Latvia last month, where the two countries signed an investment protection agreement. "That's why we are being very vigorous on the free trade front." Day said.
Gross domestic product in the U.S. dropped at a 6.1% annual pace in the first quarter, confirming the worst recession in at least half a century. Canada recently signed a trade agreement with the European Free Trade Area, comprising Iceland, Norway, Switzerland and Lichtenstein that will become effective at the beginning of July, and is in the process of negotiating a free trade deal with the European Union.
 "We hope that will serve as a catalyst for the discussions here in Europe," Day said of the EFTA agreement, since those four countries will see tariffs significantly reduced or eliminated.
A previously released Canada-EU joint economic study estimated that an economic agreement with the EU could boost bilateral trade by more than 20%. The Minister's office said Canadian merchandise exports to the EU rose by 3.5% in 2008 to $36.1-billion, while two-way merchandise trade jumped 7% from the previous year to $90.1-billion.
Canada's top exports to the EU include precious metals and stones, machinery and mineral fuels and oils, while the EU is one of Canada's most important sources of new technologies.
The two parties have previously outlined 14 areas to be placed on the negotiating table, some of which include trade in goods and services, investment, trade facilitation, customs regulation, technical barriers to trade, competition policy, and sustainable development.
|
Lacey Act Import Declaration Now Required for Certain Wood Products
The first phase of enforcement of the new Lacey Act import declaration
requirement for plants and plant products went into effect May 1. Subsequent
phases are scheduled to be rolled out every six months. U.S. Customs and Border
Protection recently posted to its Web site guidance on complying with this
requirement.
 Covered Products
As of May 1, imports of the
following products must accompanied by an import declaration (form PPQ 505)
containing the scientific name of the plant from which they were obtained, the
value of the importation, the quantity of the plant and the name of the country
from which the plant was harvested.
· fuel wood (HTSUS 4401)
· wood in
the rough (HTSUS 4403)
· hoopwood; poles, piles, stakes (HTSUS 4404)
·
railway or tramway sleepers (HTSUS 4406)
· wood sawn or chipped lengthwise
(HTSUS 4407)
· sheets for veneering (HTSUS 4408)
· wood continuously
shaped (HTSUS 4409)
· tools, tool handles, broom handles (HTSUS 4417)
·
builders' joinery and carpentry of wood (HTSUS 4418)
Expedited
Release
The government began May 1 a pilot program for those entities
currently participating in Automated Line Release or Border Release Advance
Screening and Selectivity whose products require a Lacey Act declaration during
the current phase of enforcement. Under this pilot, participants must choose
whether or not to remain active in the expedited program. If a participant opts
to be removed, no further action is necessary and the C4 code will be
inactivated effective June 1. Those who opt to remain in the expedited release
program must complete the following two-step process.
· The participant
must file with the Department of Agriculture an advance estimated PPQ 505 that
includes all required data elements. The genus, species, value and quantity
fields should be an estimation of the participant's planned imports during the
next calendar month. The estimated PPQ 505 must be filed on or before the 15th
day of the month prior to the reporting period; e.g., the first estimated PPQ
505 will cover expedited release shipments planned for June and will be due by
May 15.
· The participant must file with the USDA, within 15 days after
the end of the month, a reconciliation that provides information on the actual
shipments made during the previous month. The deadline for the first
reconciliation is July 15. The USDA will make the format of the reconciliation
available at a later date.
This process must be completed monthly during
the pilot. The U.S. government will rely on the collected data in its reports to
Congress and in determining possible refinements and extensions to enlarge the
process and make it less burdensome for all involved.
Note: CBP
has posted Guidance on the Lacey Act Declaration on its website here. Additional information about the Lacey Act can be found on our website here.
|
"Buy American" Starting to Cut Into Business for Canadian
Manufacturers & Exporters
Growing Protectionism in U.S. Spells Disaster, Manufacturers Fear
According
to some Canadian companies, it seems that the dire predictions about
the "Buy American" provisions of the American Recovery and Reinvestment
Act (i.e., the stimulus package authorizing the spending of U.S. $90
billion on roads, bridges and other infrastructure) are coming true.
From pipes and water pumps to steel beams and office furniture, a wide
range of Canadian manufacturers are suddenly finding themselves shut
out of traditional markets south of the border, according to industry
and government officials.
 The measure in question targets spending in the bill for infrastructure projects. It reads:
"None
of the funds appropriated or otherwise made available by this Act may
be used for a project for the construction, alteration, maintenance, or
repair of a public building or public work unless all of the iron,
steel, and manufactured goods used in the project are produced in the
United States."
Although the stimulus package has exemptions
that allow the government to buy foreign products if the items can't be
found in the USA or if the rules are inconsistent with "the public
interest," contractors and project managers are increasingly giving the
nod to domestic goods and services. To make matters worse, the language
and intent of the stimulus bill is now also finding its way into other
U.S. spending bills, potentially putting tens of billions of dollars
worth of business out of reach.
Canadian Manufacturers and
Exporters (CME) has compiled a list of seven pieces of legislation now
before Congress that contain overtly protectionist language. They
include bills to fund local sewer and water projects, expand broadband
access, build smart electrical grids, replace Air Force One, purchase
100,000 hybrid vehicles, and build and renovate government buildings. A
bill currently before the U.S. Senate would provide $13.4 billion in
spending over the next five years for clean water projects. A clause in
the bill repeats the "Buy America" provisions of the Recovery Act.
Even
where there are no restrictions on foreign content, many contractors
and suppliers are choosing to play it safe by buying domestically.
"We're already seeing a chilling effect through the supply chain," CME
president Jayson Myers said.
Canadian steel makers and
fabricators are feeling the impact of "Buy American" restrictions,
which were inserted into the stimulus bill to appease U.S. steel makers
and workers. Companies are losing orders, threatening $1-billion-a-year
worth of exports, according to Ed Whalen, president of the Canadian
Institute of Steel Construction. "Much of that will dry up," Mr. Whalen
conceded.
U.S. wholesale steel vendors, who typically carry both
foreign and domestic product, are choosing not to carry Canadian- made
steel for fear it won't qualify for the orgy of infra-structure
projects now getting started, he explained. "They're saying they don't
want the hassle," according to Whalen.
"Buy American" is
interfering with what is a highly integrated North American steel
market. Canadian fabricated steel products, such as beams for buildings
or bridges, are typically made with raw steel imported from the United
States, but once further manufactured, those products are deemed
Canadian.
Canadian manufacturers complain that some long-time
customers are demanding written certification that products are made in
the U.S. before placing new orders - a pledge most can't make. So
they're walking away from business they've had for decades.
The
ultimate solution for many companies may be to shift at least part of
their production to the U.S., rather than supplying the market from
Canadian plants. Aside from the detrimental ripple effect on Canadian
suppliers, the drawback is that it adds significantly to the cost of
doing business in North America.
If you feel that your company
has been adversely affected as a consequence of the "Buy American"
trade restrictions, the CME has a list of actions you can take. CME has also prepared a detailed briefing paper on this issue. To keep up to date with the "Buy American" issue be sure to bookmark this link for the latest developments.
|
Manufacturers Say "10+2" Effectively Doubles the Cost of Import Tariffs
New ISF operational costs and delays estimated to be $20 billion
A new report by the Customs and Border Coalition, a group launched by the National Association of Manufacturers (NAM), U.S. Customs and Border Protection's Importer Security Filing rule ("10+2") will impose an annual cost of more than $20 billion on the U.S. economy.
ISF requires cargo information to be transmitted to CBP agents at least 24 hours before goods are shipped to the United States.
 Based on a survey of companies accounting for nearly 60 percent of seaborne manufactured imports, the report concludes that companies of every size will feel a significant cost impact from implementing 10+2. "The potential impact of this rule is huge," said NAM President John Engler.
Key findings were that compliance will be difficult and disruptive to respondents' supply chains and that the new rule imposes permanent operational costs of $3.5 billion every year. The new rule was also found to add three days of delays, on average, to the global supply chain, at an additional cost of $17 billion annually.
"To put the cost in perspective, it is virtually the equivalent of doubling the import tariffs that manufacturers now pay to bring products and components into the United States," Engler said.
Engler added that NAM has provided the government with what he described as "practical and actionable recommendations for modifications that will reduce the cost of the new customs rule without diminishing national security one bit. Department of Homeland Security Secretary Napolitano has already shown she is sensitive to the need for U.S. economic security as well as national security, and we believe our recommendations will get careful consideration."
Corroborating the NAM report, in comments filed earlier this month, the American Association of Exporters and Importers (AAEI) urged caution over the costs of U.S. Customs' Importer Security Filing interim final rule.
"AAEI expressed concern to U.S. Customs and Border Protection that the costs of '10+2' compliance are still unknown," the association said. "In the first months of implementation, the only cost CBP is capturing is the transaction fee for filing. However, AAEI notes that the true costs are much higher, especially for small and medium-sized enterprises. Plus, hidden costs of '10+2' compliance will add up quickly due to delays and slowdowns in the supply chain.
|
|
 Finding time to follow the latest international trade developments and programs of Customs agencies on both sides of the border relevant to your business can be challenging, so we hope you find the June issue of our Tradelines e-newsletter to be a helpful resource in this respect. If you haven't already, we invite you to check out our Tradelines E-News weblog where you can find current stories updated daily about business events and developments that are important to Canadian importers and exporters. Given the e-mail format of the newsletter is still a bit new to us, we'd greatly appreciate any feedback you have about it, so please don't hesitate to let us know what you think. We're strong believers in constructive criticism here at GHY. As Mark Twain once said, "continuous improvement is better than delayed perfection." We look forward to receiving your opinions, comments and suggestions. |
|
|
