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GHY Customer Care Survey - 2010
|  | Thank you! to everyone who generously participated in our latest Customer Care survey -- a process that's part of our ongoing commitment to the principle of continuous quality improvement.
Your feedback is invaluable to us; not only in helping us to honestly assess our current performance in terms of the perceived quality of our customer service delivery, but also to provide us with significant insights that will enable us to make improvements to better serve your needs in the future.
As a small token of appreciation for your valuable time -- and to make this a truly winX3 endeavour -- we're also pleased to advise that more than $500 was contributed by GHY on behalf of survey participants for the Lighthouse Mission, a non-profit organization in downtown Winnipeg that offers essentials to those less fortunate.
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Government of Canada Seeking Public Input on NAFTA Co-operation
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The Government of Canada is seeking the views of Canadians to identify areas where increased cooperation between Canada, the United States and Mexico could reduce significant regulatory-based differences that pose actual or potential barriers to Canadian competitiveness.
This request for information is part of the Canadian government's domestic consultation process with business and other groups to obtain advice and views on priorities, objectives and concerns to help outline the parameters of this initiative.
Interested parties have until May 26th to submit their input. More information on the scope of the initiative can be downloaded from our website here.
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Updated ACE Reports Training Now Available
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An updated version of "ACE Reports for the Trade Community" Web-based Training is now available. U.S. Customs and Border Protection recommends that all new users and those who would like refresher training running standard and customized reports take the updated online training course.
Listed below are the topics included in the updated "ACE Reports for the Trade Community" WBT:
* Module 1: Course Navigation: Learn how to navigate through this Web-based training course.
* Module 2: ACE Reports: Learn how to run a standard report as well as how to manipulate, schedule and print or export the report. Users will also learn how to schedule an authorized data extract.
* Module 3: Ad hoc Functionality: Learn how to run and save a modified report.
To take the WBT, visit the "Training and Reference Guides" section on the CBP modernization website here.
Related: CBP has posted a comprehensive electronic presentation describing what currently is available in the ACE system and enhanced functions that will be available later this year.
ACE presently is for highway trade. However, CBP will be expanding the program to ocean and rail manifests for Cargo, Control and Release (CCR) functions at some point in the future.
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Ambassador Bridge Dispute Goes to Court
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Ambassador Bridge owner Matty Moroun feels both the U.S. and Canadian federal governments have violated his rights, and hopes the courts agree.
A suit filed in U.S. District Court by the Detroit International Bridge Co. (DIBC) claims U.S. and Canadian officials have violated a law that includes the right to build a new span. A copy of the complaint can be downloaded from our website here.
His lawsuit accuses the Canadian government of seeking to gain control of his bridge and its lucrative toll revenues -- estimated at US$60 million per year -- even though his ownership protected by historical contracts that include the Boundary Waters Treaty signed by both nations in 1909.
Maroun alleges the Canadian government and U.S. highway officials have worked to undermine the value of his bridge, push him to transfer his ownership rights or force him out of business so the two governments can operate their own Windsor-Detroit toll bridge without competition.
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Bersin Takes CBP Post Without Confirmation
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Fed up with waiting, President Barack Obama announced at the end of March that he would bypass a vacationing Senate and name 15 people to key administration jobs - including Alan Bersin as head of U.S. Customs and Border Protection.
Bersin, formerly the Southwest "border czar" at the Homeland Security Department, has held several high-profile positions in San Diego over the years. He was nominated for the customs post in September, but his confirmation languished in the Senate.
In wielding for the first time the blunt political tool known as recess appointments, Obama accused Republicans of holding up nominees for months solely to try to score a political advantage on him.
"I simply cannot allow partisan politics to stand in the way of the basic functioning of government," Obama said in a statement.
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Budget 2010 Eliminated Duties on More than 1,500 Tariff Items
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Budget 2009 eliminated tariffs on imports of machinery and equipment in order to help Canadian manufacturers maintain and enhance their competitiveness during the economic downturn. This measure saved companies $88 million annually and was widely supported by manufacturers and economic experts. Stakeholders expressed an interest in further tariff relief, including the concept of establishing tariff-free zones.
After extensive public consultations with Canadian industry, Budget 2010 responded by making all of Canada a "tariff-free zone" for industrial manufacturers by eliminating remaining tariffs on machinery and equipment, as well as goods imported for further manufacturing in Canada.
Once fully implemented, this measure will save Canadian manufacturers $300 million in annual duties and eliminate the need for burdensome customs paperwork. A complete list of goods covered and the applicable phase-in dates is available on our website here .
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Partners in Protection Gaining Traction
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According to data released by the CBSA about their Partners in Protection (PIP) supply-chain security program in Canada (an analogue of the C-TPAT program in the USA), there are 2,194 legacy members, making it the second largest such initiative worldwide.
GHY is certified as a secure supply chain partner under both the Partners in Protection program in Canada and C-TPAT in the USA.
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GHY E-Newsletter Issue #7 April · 2010
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AMPS: Phase I Changes
Implementation plan started in April calls for new penalty amounts and enforcement guidelines
Although precise dates have not been set, the CBSA has indicated that the following reforms to the Administrative Monetary Penalty System (AMPS) will be introduced in April 2010:
* Changes to penalty amounts and structures: includes removal of most penalties that were assessed as a percentage of the value for duty and replaced with a graduated or flat penalty amount.
* 30 day escalation of penalty amounts: for low and medium risk contraventions, the penalty will not be escalated from level 1 to level 2 unless 30 days have expired from the issuance of the first penalty (Initially applied to contraventions, C004, C005, C010, C011, C044, C058, C071, C084-C151, C192, C207, C208, and C342).
* Contraventions to be deleted: C022, C236, C239, C245, C285, C289, C293, C344, C347, C361, C362, C367, and creation of new contraventions C371 and C372.
* Master Penalty Document to be updated to reflect legislative references and new penalty amounts. Refer to the most current version of the AMPS MPDon our website to review these changes as they relate to the contraventions noted previously.
* Guidelines to be maintained solely on CBSA web site facilitating updates.
* Accessibility to Corrections Process to be improved.
* Regional Review Committees (RRC) to be reinstated to review all penalties before issuance.
Future Directions:
These changes are the first phase of an implementation plan the CBSA has been working on resulting from a comprehensive review process conducted over the past 2½ years that are designed to streamline and improve administration of the penalty regime. Broadly speaking, the following objectives are planned for the future:
* 246 current Contraventions will eventually be collapsed to 79, with a new penalty structure that will apply to existing Contraventions as of April 1, 2010. The 246 Contraventions will be retained for now however with introduction of the 79 new Contraventions anticipated in FY 2011-2012.
* New Guidelines have replaced the existing Backgrounders as of April 1, 2010. The revisions to the AMPS Guidelines will reflect the new penalty structure and are also designed to improve clarity, with definitions and examples demonstrating basis for contravention and penalty application written in plain language for non-experts.
* Introduction of the 79 new Contraventions along with the 79 collapsed Guidelines, (replacing the transitional April 1, 2010 Guidelines) are expected to be rolled out in FY 2011-2012.
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Climate-Friendly Trade
Global opportunities still waiting for Canadian companies to clean up...
The global market for technologies and services that reduce greenhouse gas emissions is exploding, with some estimating it will be the third largest global sector by 2020. But Canadian businesses have failed to seize new-or even maintain existing-opportunities to sell such technologies globally, according to a recent analysis of Canada's trade in climate-friendly technologies prepared by the Conference Board of Canada.
 While Canadians are slowly increasing their adoption of other countries' climate-friendly technologies, they are doing so at a much slower rate than the world average. Despite this poor overall performance, the Conference Board's report finds that Canadian businesses "over-trade"- or have global strengths relative to other countries-in several specific climate-friendly technologies. With clear policy signals and more globally oriented business strategies, it is not too late for Canada to become a world leader in some climate-friendly technologies or related services.
Canada, with its small domestic market, will need to take advantage of opportunities to sell Canadian goods and services to much larger and rapidly growing global markets. Global markets also provide opportunities for Canada to adopt and develop climate-friendly technologies that reduce our emissions, and to take advantage of global emissions trading programs. Some global markets may also offer clearer and more sustained climate-friendly policies and incentives.
Businesses that sell climate-friendly technologies globally can build on existing relationships and also establish long-term relationships in rapidly growing, developing economies. Selling Canadian products to developing markets can also help poorer countries adopt cleaner technologies. This helps advance both global and Canadian environmental and economic aims, as well as international development goals. Sales of such technologies can also contribute to high value-added activities in Canada.
Canadian businesses that import climate-friendly technologies or parts of technologies increase their competitiveness and energy efficiency, learn from others, and are able to better focus on their areas of relative strength. Finally, public policies that encourage climate-friendly technology development could be positive elements in Canada's climate change strategy.
To read more about the relative strengths of Canadian businesses in the global markets for climate-friendly technologies, download the entire Conference Board report free of charge from our website here. |
Lacey Act Phase IV Now in Force
Compliance with headings listed in phase IV of the implementation schedule effective April 1, 2010
The U.S. Department of Agriculture's Animal and Plant Health Inspection Service (APHIS) began a phased-in enforcement of this requirement in April 2009 and is currently requiring import declarations for goods of Harmonized System headings 4401 (fuel wood); 4402 (wood charcoal); 4403 (wood in the rough); 4404 (hoopwood; poles, piles, stakes); 4406 (railway or tramway sleepers); 4407 (wood sawn or chipped lengthwise); 4408 (sheets for veneering); 4409 (wood continuously shaped); 4412 (plywood, veneered panels), except 4412.99.06 and 4412.99.57; 4414 (wooden frames); 4417 (tools, tool handles, broom handles); 4418 (builders' joinery and carpentry of wood); 4419 (tableware and kitchenware); and 4420 (wood marquetry, caskets, statuettes).
The fourth phase of enforcement of the import declaration requirement became effective on April 1, 2010 and covers the following HTSUS headings (in addition to those included in previous phases): 4421 (other articles of wood); 6602 (walking sticks, whips, crops); 8201 (hand tools); 9201 (pianos); 9202 (other stringed instruments); 9302 (revolvers and pistols); 9305.10.20 (parts and accessories for revolvers and pistols); 9401.69 (seats with wood frames); 9504.20 (articles and accessories for billiards); and 9703 (sculptures).
The USDA has clarified that while many of the headings listed in phase IV contain goods that are not composed of wood or other plant material, an import declaration is not required for products that have no wood or other plant content. For example, both metal hammers and hammers with wooden handles are included in Chapter 82, but only hammers with wooden handles will require a declaration as of 1 April.
The USDA is expected to broaden the list of products subject to the import declaration requirement in the future but will provide at least six months' notice of any future changes.
In addition, the USDA is considering extending the import declaration requirement to other products not included in the current phase-in schedule or listed above, including goods classified under the following HTSUS chapters: 48 (paper and paper articles); 82 (tools, implements); 89 (ships, boats and floating structures); 93 (arms and ammunition); 94 (furniture, etc.); 95 (toys, games and sporting equipment); and 96 (brooms, pencils, buttons).
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Despite Protests, Controversial U.S. Border Fees Confirmed by APHIS
USDA sending "the wrong signal at the wrong time" according to Canadian industry groups
Canada's cross-border shippers and carriers received confirmation in March that nearly $100 million in annual user fees will continue to be charged them for United States inspection of fruits and vegetables (that, in fact, few of them actually carry).
 A final rule by APHIS (Animal and Plant Health Inspection Service -- a branch of the U.S. Department of Agriculture) rejected adamant protests from the trade community as well as alternative proposals made by the Canadian government, and instead confirmed that it would continue the regime of inspections and user fees it launched in 2007. Although APHIS has provided no exact figure for current collections they have been estimated at almost $90 million in 2008.
"Introducing APHIS fees in the first place on all trucks entering the United States whether they are carrying agricultural products or not was nothing but a cash grab,"according to David Bradley, head of the Canadian Trucking Alliance (CTA), representing most of the companies that carry by far the largest amount of the trade between the two countries.
In its final rule, APHIS rejected the argument that carriers and shippers belonging to C-TPAT, the U.S. program that demands from its trusted partners rigorous supply-chain care in protecting freight, should be exempted. The Canadian counterpart to C-TPAT is PIP (Partners In Protection), and the binational Canada-U.S. program is FAST (Free and Secure Trade, requiring membership in C-TPAT or PIP), and members of either are in the same boat insofar as APHIS is concerned.
APHIS did make three slight changes to the interim rule, exempting railcars that transit through the U.S. but don't stop, vessels that travel to Canada only to fuel up before returning, and some barges on the Great Lakes and in Puget Sound on the West Coast.
Canadian Manufacturers and Exporters (CME), representing 10,000-plus companies in Canada, said USDA is "sending the wrong signal at the wrong time" by raising costs of trade when the two countries should work together to reduce any health risks. CME President Jayson Myers also criticized the failure to exempt companies certified under trusted shipper or carrier programs.
"It's set in stone now," said Ron Lennox, vice-president of the CTA. "It brings back a lot of bad memories of the discussions that took place with APHIS and the USDA, by the trade community on both sides of the border," said Lennox. "The carriers have had to swallow the costs, and the costs are being sent down the supply chain.
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New CBSA Organizational Structure & Strategy Announced
Service model based on "best practices" of other Customs administrations to be developed
Earlier this year, CBSA undertook a major restructuring, streamlining functions, updating programs and establishing new service standards. In mid-March, CBSA President Stephen Rigby and CBSA Vice-President Cathy Munroe announced to the Border Commercial Consultative Committee details of the new management model and organizational structure that went into effect on April 1, 2010.
 While Stephen Rigby and Luc Portelance remain as the President and Executive Vice President, respectively, there is a significant change at the next level in the organizational structure.
It has been CBSA President Stephen Rigby's plan to better align the Agency with its objectives and to establish clear lines of authority and a structure that would support a new service strategy with measurable performance standards.
As part of its restructuring, CBSA has been taking steps to reduce the administrative burden its policies and programs impose on Canadian business and to institutionalize a culture of business simplification within the Agency.
After conducting extensive research and investigating customs administrations in other countries, such as Australia and the United States, CBSA has realized that there are areas for improvement in the delivery of its programs. These countries have established solid, service oriented models, something CBSA plans to develop.
Rigby has identified the creation of a service strategy as a priority for CBSA with the aims being to strengthen the CBSA's culture of service; reduce paperwork; simplify how business and travelers interact with the Agency; reduce the cost of compliance; and, increase accountability through the measurement of service standards.
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Consideration of Bill to Suspend Duties on Numerous Products Could Be Delayed by Debate over Earmarks
Congress typically considers every two years legislation to provide duty-free or reduced duty treatment to a range of products that are not produced in the United States. Traditionally, provisions included in these miscellaneous trade bills must be non-controversial, must not apply to goods that compete with domestic products and must not result in a significant loss of revenue to the U.S. Treasury. To ensure that such eligibility criteria are met, each provision is introduced as a stand-alone bill and put through an extensive vetting process, including a public notice and comment period and cost analysis, before being compiled into a single package.
Congress was supposed to approve an MTB in 2009 but this goal was not achieved, partly as a result of an unusually crowded legislative year that included a historic economic stimulus package, climate change legislation and comprehensive health care reform. Lawmakers hoped to finalize and approve an MTB relatively early in the new legislative year, possibly before July, but a debate over "earmarks" is threatening to derail this process.
Earmarks are legislative provisions that provide, allocate or authorize funds or provide tax exemptions for specific projects or purposes other than through a statutory or administrative mechanism or competitive award process. Legislators typically add these provisions to appropriations bills in order to fund projects in their districts or states. This practice has generated significant controversy over the years and even featured fairly prominently in the 2008 presidential election, but it is still widely used by both Democrats and Republicans. However, in an unprecedented move, House Republicans decided on 11 March to adopt a uni-lateral moratorium on all earmarks, including tax and tariff-related earmarks, in an effort to reign in government spending.
According to a guidance document issued by the House Republican leadership, the earmark ban specifically includes provisions modifying the Harmonized Tariff Schedule of the United States in a manner that benefits 10 or fewer entities. Many, if not most, individual MTBs are deemed to benefit 10 or fewer entities, so they would appear to fall within the scope of the ban. While House members are not permitted to withdraw an introduced bill, the guidance document directs Republicans to object to the consideration of those bills, including any MTBs they have introduced. House Republicans have also been directed to refrain from (1) introducing or sponsoring any bills that contain earmarks in the future and (2) requesting that any earmark be included in any bill being considered by the Senate or in any conference report.
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White House Provides Additional Details on New U.S. Export Strategy
Executive order formally establishes National Export Initiative
As previously reported, President Obama made a commitment during his 2010 State of the Union address to launch a new National Export Initiative designed to double U.S. exports over the next five years as part of a comprehensive effort to provide employment to an additional two million U.S. workers. The initiative essentially seeks to improve conditions that directly affect the U.S. private sector's ability to export, including by removing foreign trade barriers to U.S. exports and helping U.S. companies -- especially small businesses -- overcome entry barriers to foreign export markets by facilitating export financing and pursuing a concerted government-wide advocacy campaign.
 The NEI was formally established by means of an executive order issued by the president on 11 March. The EO creates a new Export Promotion Cabinet made up of senior administration officials who have been tasked with developing and co-ordinating the implementation of the NEI and must ensure that export promotion activities are given top-level priority and incorporated in a broad array of government programmes. These officials include the U.S. trade representative, the director of the Office of Management and Budget, the national security advisor, the assistant to the president for economic policy, the chair of the Council of Economic Advisers, and the heads of the Small Business Administration, the Export-Import Bank of the United States, the Overseas Private Investment Corporation, the U.S. Trade and Development Agency, and the departments of State, Treasury, Agriculture, Commerce and Labor. The cabinet will hold its first meeting in April and will meet regularly thereafter.
The Export Promotion Cabinet must provide a comprehensive plan to the president by 7 September detailing how it intends to carry out its core priorities such as the federal trade promotion of exports. This initiative will include, among other things, (i) guidance from the Department of Commerce to all senior government officials who have foreign counterparts on how they can best promote U.S. exports, (ii) a commercial diplomacy strategy from the State Department under which every U.S. embassy will create a senior visitors business liaison to manage U.S. export advocacy efforts locally and U.S. ambassadors returning to the U.S. will travel the country to discuss export opportunities in their countries of assignment, and (iii) more than 40 trade and reverse trade missions in 2010.
For their part, the Ex-Im Bank, the SBA, the USTDA and the departments of Commerce and Agriculture will partner to provide potential exporters a comprehensive tool kit of services ranging from financing options to export counselling to market access intelligence through 109 Commerce Export Assistance Centers, 900 SBA Small Business Development Centers, eight Ex-Im regional offices, 2,000 USDA Farm Service county offices, and more than 250 U.S. embassies and consulates abroad.
The president has also re-launched the President's Export Council, the principal national advisory committee on international trade, and named Boeing President Jim McNerney as chair and Xerox CEO Ursula Burns as vice chair. The goal of this body will be to advise the president on government policies and programmes that affect U.S. trade performance, promote export expansion, and provide a forum for discussing and resolving trade-related challenges among businesses and the industrial, agricultural, labour and government sectors.
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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 this
issue of our Tradelines e-newsletter to be a helpful resource in this respect. As
always, we'd greatly appreciate any opinions, comments and suggestions you may
have to help us improve this information resource, so please don't hesitate to
let us know what you think.
If you haven't already, we'd like to take this opportunity to 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. Sign up for our RSS feed and
get automatic updates to your favourite reader as soon as they're posted. As well, you can now follow GHY on Twitter for the latest information, updates and links to articles of interest.
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