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| Truck Traffic up Nearly 18% at Ontario Border Crossings |  | |
Half-a-million more commercial trucks crossed between Ontario and the U.S. in the first six months of 2010 compared to last year.
According to the Public Border Operators Association, 3.4 million trucks crossed the Ontario-U.S. border in the first half of 2010 compared to 2.9 million in 2009 (+ 17.5%).
At the Ambassador Bridge commercial traffic was up 26.3 percent from January to June, with 1,348,179 truck crossings. June was an especially good month for the private bridge. Truck traffic was up 40 percent over the same month in 2009 as crossings averaged over 8,000 a day compared to 5,800 last year.
Niagara-Buffalo area border points increased more modestly with a rise in truck traffic of 12 percent for the half-year at the Peace Bridge and just 4 percent at Lewiston-Queenston.
The Blue Water Bridge saw a 19 percent increase in the first half of 2010 and the International Bridge in the twin Sault St. Marie cities saw truck traffic increase by 12 percent.
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CBSA Increasing Awareness of eManifest With Highway Carriers
|  | With the first key date of the final stage of the eManifest program rapidly approaching, the Stakeholder Engagement Team of the CBSA's eManifest and Major Projects Directorate Programs Branch has developed a poster aimed at highway carriers for distribution to the trade community and at border crossings to increase awareness of eManifest. The content of the poster can be viewed here (Word document format).
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Ambassador Bridge Moves Forward in Twinning Approval Process
|  | Manuel ("Matty") Moroun, billionaire owner of the Ambassador Bridge, is one step closer to building a second span of the international crossing between Detroit and Windsor. At the end of July, the Canada Border Services Agency approved plans for a new customs plaza in Windsor that would move CBSA secondary truck inspection back to the foot of the bridge.
The next step to twinning the private bridge is to submit an environmental impact statement to Transport Canada for review. While the statement was prepared in December 2007, the Canadian government wanted approval from the CBSA before reviewing the report.
The Canadian government still favors the DRIC project, a spokesman for federal Transport Minister John Baird recently told the Wall Street Journal.
"We believe it is in the public interest to construct a new Detroit River crossing that is subject to appropriate public oversight," said James Kusie.
However, the DRIC project is locked up in political wrangling amid intense lobbying by Moroun. Supporters of the DRIC project are pinning their hopes on state legislation, HB4961, which has passed the Democratic-controlled Michigan House but has stalled in the Republican-controlled state Senate.
HB4961 would clear the way for the DRIC project to be built as a public-private partnership involving tolls, but would do so by opening the door for widespread use of PPPs and tolling throughout the state. Some lawmakers and groups are opposing the bill for that reason.
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| U.S. Insurance Rules Ease For Canadian Truckers |  | Insurance rules in the United States for Canadian cross-border truckers have been made easier as of August 2, 2010. A final rule by the Federal Motor Carrier Safety Administration (FMCSA) says Canadian carriers operating in the U.S. will no longer have to be insured by a U.S. company or, as in most cases, have their Canadian insurance policy reinsured by an American firm.
There is no change in what the FMCSA requires as
minimum insurance levels for Canadian carriers hauling in the U.S. but until now Canadian trucking companies have had to either take out a second, U.S., policy, or have its Canadian insurer link with an American insurer in
what is called a "fronting agreement" - the U.S. firm "reinsures" the risk back to the Canadian firm. Most of the 9,000-odd Canadian carriers hauling in the U.S. have taken on the extra expenses and administration costs of this second method, and will now be free of them.
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Canada, U.S. Agree to Strengthen Economic Co-operation, Trade
|  | Canadian Minister of International Trade Peter Van Loan met recently with Ron Kirk, U.S. Trade Representative, in Ottawa to discuss greater economic cooperation between Canada and the United States.
The two trade officials discussed a wide range of issues, including the Canada-United States Agreement on Government Procurement, which resolved the Buy American issue earlier this year.
Building on the commit- ments made at the G-20 Summit, they also discussed the need to avoid protectionism and increase the 1.6 billion Canadian dollars in trade that crosses the border every day.
Following their meeting, Van Loan and Kirk told a press conference that the United States had agreed to transfer to Canada the collection of a 10 percent customs duty currently imposed on softwood lumber products imported into the United States from Ontario, Quebec, Manitoba and Saskatchewan.
As of Sept. 1, 2010, Canada will begin collecting this duty from the four provinces, and the revenue collected from this tax will stay in Canada and be distributed back to the four provinces.
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NAFTA Trade Posts Record Gain from Previous Year
|  | Trade using surface transportation between the United States and its North American Free Trade Agreement partners Canada and Mexico was 39.5% higher in May 2010 than in May 2009, reaching $66.8 billion, according to the U.S. Department of Transportation.
The 39.5% increase was the largest percentage year-over-year increase in total U.S.-NAFTA surface trade on record, going back to April 1994. May was the third month in the last four with a record percentage year-over-year increase.
Notwithstanding these seemingly robust figures, it should be noted that the value of U.S. surface transportation trade with Canada and Mexico in May 2010 remained 9.9% below the May 2008 level despite the 2009-2010 increase.
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| FUN TRADE FACTS
|  | | As of 1st July 2009, the global fleet (not including passenger ships) was made up of 46,166 vessels comprised of general cargo ships (17,104), tankers (14,095), bulk carriers (7,787), container ships (4,678), and other ships (2,502). The worldwide population of seafarers serving on internationally trading merchant ships is estimated to be in the order of 1.2 million, made up of 466,000 officers and 721,000 sailors.
Source: The Round Table of International Shipping Associations |
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| GHY E-Newsletter Issue #10 July-Aug · 2010 |
Proposed Bill Would Require Foreign Manufacturers of Consumer Goods to Register U.S. Agents or Face Import Ban
Legislation "would harm the U.S. economy and impose unprecedented and burdensome requirements on legitimate companies based in the United States and abroad", industry groups say.
The House Energy and Commerce Committee's Subcommittee on Commerce, Trade and Consumer Protection recently marked up a bill that, if enacted, would have a significant impact on Canadian exporters and U.S. importers.
 The Foreign Manufacturers Legal Accountability Act of 2010 (H.R. 4678) would require foreign manufacturers of certain products that are imported into the United States (or component parts used in the U.S. to manufacture such products) to establish registered U.S. agents who are authorized to accept service of process on behalf of the manufacturer in all civil and regulatory actions in state and federal courts.
The products covered by this legislation are (1) drugs, medical devices and cosmetics; (2) biological products; (3) consumer products; (4) chemical substances; (5) pesticides; and (6) motor vehicles or motor vehicle equipment. The registered agent would have to be an individual or domestic firm or corporation that is a permanent U.S. resident and is located in a U.S. state that has a substantial connection to the importation, distribution or sale of the covered product(s).
The agent registration requirement would apply only to companies that manufacture or produce covered products in excess of a minimum value or quantity established by the Consumer Product Safety Commission, the Food and Drug Administration, the Environmental Protection Agency or the National Highway Traffic Safety Administration, as appropriate. In determining the minimum requirements, the applicable agency would be required to consider the value and quantity of all covered products imported from the manufacturer or producer in a calendar year and the frequency of importation.
The registration requirement would enter into force a year after the date of enactment of the legislation. Products from non-compliant manufacturers would be barred from entry into the U.S. effective 180 days from the date of issuance of the applicable regulations to implement the registration requirement.
An amendment to H.R. 4678 is also being considered by lawmakers that would require importers to submit a declaration attesting to their belief that the foreign manufacturer has complied with the registered agent requirement.
H.R. 4678 has 63 co-sponsors and its Senate companion (S. 1606) has bi-partisan support and 15 co-sponsors. Efforts are already being made to attach S. 1606 to another piece of legislation likely to be approved by the full Senate.
Click here to find out more about the origins of this legislation, links to both the House and Senate bills and a description of the specific objections to the initiative that have been raised by various business organizations in the trade community. |
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Global Container Shortage Results in Huge Price Hikes for Canadian Importers
"Container prices are going up, up, up" says director of the Canadian International Freight Forwarders Association.
The cost of shipping consumer goods from Asia to Canada is surging, with another price increase now taking effect as freight forwarders face a continued shortage of containers this summer and fall.
Forwarders will now have to pay an extra US $900 for each larger-sized container -- an increase that comes on top of $1,500 in new charges since February, raising the total cost of importing each container to more than $6,000 -- nearly triple the rates from early 2009.
The present shortage is largely an after-effect of the recent global recession when shipping companies experienced a spectacular collapse and the world container fleet shrank by almost 4% (versus a normal net growth of almost 8% in the previous eight years). Chinese manufacturers that almost completely halted production of containers during the recession are only now starting to resume manufacturing to help gradually replenish their stocks.
Another factor adding to the capacity shortage is the practice of "slow steaming" a temporary measure that many carrier lines embraced to conserve fuel during the economic downturn, but one that some experts believe is likely here to stay. Not only does this result in shipments taking 15 days to reach Canada instead of the usual 10 days, it effectively ties up 5-7% more containers for the same cargo volume.
Evergreen Shipping Agency (America) Corp, agents for Evergreen Line, has served notice that cargo shipments will be subject to a "peak season surcharge" as of this week. Goods going from Asia to Canada, for instance, will cost an extra $640 to $1,013 to ship, depending on the size of each container. Rates to ship from other parts of the world are also soaring.
Maersk Line is another major shipping firm that has instituted peak season surcharges, saying it estimates that "there will be significantly higher demand for liner transport, coupled with a shortage" of containers across the industry. "We expect the shortage to last through the third quarter of this year," Maersk said.
Others slapping on surcharges include Zim Integrated Shipping Services, Hyundai Merchant Marine, CMA CGM and "K" Line.
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New Market Exporter Initiative Launched by U.S. Department of Commerce and U.S. Postal Service
Business Plan Establishes Simplified Gateway to Global Trade for U.S. Companies
Earlier this month, the U.S. Department of Commerce and the U.S. Postal Service (USPS) announced the launch of the New Market Exporter Initiative (NMEI), an initiative intended to help boost U.S. exports. The NMEI is intended to identify current USPS customers who are exporting their goods in an effort to help them expand their reach to additional international markets.
 Under the partnership agreement, the two organizations will work to provide foreign market expertise to small and medium-sized enterprises interested in expanding into new markets, providing simplified access to the free resources and tools available through the U.S. Commercial Service.
According to a joint press release, in the first phase of the partnership efforts will focus on those businesses currently shipping to one foreign market through the USPS. In subsequent phases, they efforts will focus on small and medium-sized enterprises to identify key markets, build market entry strategies and provide the guidance needed to take products and services from the U.S. to additional markets.
Companies interested in learning more about the new CBP-USPS partnership and the NEI in general can visit export.gov for additional information specific to their needs. |
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CBP Issues Report on Import Activity During First Half of Fiscal Year 2010
Highlights of the "Import Trade Trends" report include:
* After a decline in imports in 2009, imports are now at levels last seen in fiscal year 2006.
* Total value of imports processed by U.S. Customs and Border Protection was slightly more than $1.7 trillion in fiscal year 2009, a 25 percent decrease from the previous year.
* By year end 2010, it is projected that the value of imports will increase 6 percent, totaling $1.8 trillion.
* Consistent with recent years, only 29 percent of imported goods were dutiable. The remaining goods were duty free or free under various tariff preference programs.
* During the first six months of fiscal year 2010, CBP collected $15 billion in revenue for the U.S. government. It is projected that $31 billion will be collected by year end, an increase from FY 2009.
* A total of $130 million in anti-dumping/countervailing duties were collected during the first half of fiscal year 2010, down slightly from the same period last year.
* Based on a random sampling, 98.6 percent of the fiscal year 2010 imports were materially compliant with all U.S. trade laws and regulations. This compliance rate is slightly higher than recent years.
* During the first six months of fiscal year 2010, approximately $30 million in penalties have been assessed against non-compliant importers (CBP assessed more than $120 million in penalties to
non-compliant importers in FY 2009).
* Entry volume at the mid-point of fiscal year 2010 is 13 million. By year end, 27 million entries are expected, an increase of 5 percent from fiscal year 2009.
* China surpassed Canada as the United States' top source of imports in fiscal year 2009, and is projected to maintain its lead through fiscal year 2011.
* Participants in CBP's trade and security partnership programs (C-TPAT and ISA) account for more than 50 percent of the value of all imports that are shipped to the U.S. Sixty-five percent of the importers who ship goods to the U.S. do not participate in C-TPAT or ISA.
* The top 100 importers account for 30 percent of the overall dollar value of both imports and duties and top 1,000 importers account for 60 percent of overall dollar value of imports and duties.
A copy of the complete "Import Trade Trends" report can be downloaded from our website here.
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USDA Opens Door for Exemptions from Import Declaration and Other Lacey Act Requirements
Proposed rule defining "common cultivar" and "common food crop" would benefit all U.S. importers according to OMB
The Department of Agriculture published last week a much-anticipated proposed rule that would define two categories of plants and plant products that will be exempt from the Lacey Act, including the import declaration and all other requirements related to the prohibition on the illegal taking of plants under the Act. USDA is also providing for a process whereby exemptions for specific plants and plant products may be requested.
USDA's proposal would define "common cultivar" and "common food crop," two essential terms in the Lacey Act amendments of 2008.
"Common cultivar" would be defined as a plant that is developed through selective breeding or other similar means and cultivated on a commercial scale. "Common food crops" would be those that are cultivated on a commercial scale for human or animal consumption. Plants that meet one of these definitions but are included on any national or international list as a protected species would not be exempted.
Plants included within the definition of either of these terms will be excluded from the entire scope of the Lacey Act, including the 2008 amendments that imposed an import declaration and various other requirements. This exemption will apply to the roots, seeds and parts of such plants as well as any products made from them.
Importers, retailers and others with an interest in plants and plant products will be able to seek an exemption for specific goods. USDA plans to publish on its Web site a list of examples of plants and plant products that are exempt from the Lacey Act as common cultivars and common food crops, and members of the public will be able to request that specific plants and plant products be added to this list.
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Transportation Management: Lessons From a Difficult Two Years
New Report Describes Current Supply Chain Challenges in Several Key Industry Sectors
The main challenges facing supply chains involve managing external factors, such as the recent global economic crisis, and addressing green issues, says a new report, 'Transportation Management: Lessons from a Difficult Two Years' (available for download from our website).
The report, prepared by AMR Research in collaboration with RedPrairie Corporation, indicates there are three key external events that have affected transportation in the consumer products, food and beverage, and chemical manufacturing industries. These include oil price volatility, the recession and major natural catastrophes.
The increased complexity of supply chains, where companies have to manage and integrate imports and exports from around the world, operate national and local deliveries, and multichannel fulfillment, highlights the need for a robust transport management system.
Additionally, there is growing pressure to adopt more sustainable and environmentally friendly transport solutions and processes; a development than can be challenging in a highly competitive economic environment, but also one that can bring benefits -- for example, route and load optimization can help conserve fuel and drive down costs, while also reducing a product's carbon footprint.
The report reveals that 86% of companies had made some sort of plan to tackle sustainability and that the top three actions taken to improve transport strategy were consolidating orders for full truck loads, collaborative planning with vendors for inbound freight and centralizing to a load control centre.
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CBP Commissioner Addresses Trade Community Concerns
In an undated letter recently distributed to various trade groups, U.S. Customs and Border Protection Commissioner Alan Bersin responded to a number of issues raised by the trade community at roundtable meeting held back in the spring, as follows:
* CBP expects to soon publish in the Federal Register a notice formally withdrawing its 2008 proposal to revoke the First Sale Rule.
* CBP also expects to soon publish in the Federal Register a notice addressing its July 2008 proposal to establish uniform rules governing determinations of the country of origin of imported merchandise.
* CBP is working to determine whether it could disclose, prior to seizure, information that could be used to identify intellectual property infringement and whether any legislative or regulatory changes would be needed to accomplish this task.
* CBP has drafted a proposed rule that would increase the values for de minimis and informal entry shipments and expects to conclude within the next two months an economic analysis of this proposal. Following that, the rule will have to be reviewed by the Treasury Department.
* CBP hopes to publish by the end of 2010 a proposed rule that will make "substantial" regulatory changes in order to revise and modernize the in-bond process. These changes are expected to include a transition from a paper-dependent entry process to an automated/paperless process as well as tools for CBP to better track in-bond merchandise.
* The assistant commissioner, Office of International Trade, does not review every ruling CBP issues but, in response to complaints from the trade community and Congress about policy changes being made without proper consultation, does review those rulings that result in a change of position. CBP is also developing an internal process to highlight to management any substantive regulatory initiatives, major proposed rulings and modifications of existing rulings prior to their publication.
* CBP is developing a plan to add data elements required by government agencies participating in the International Trade Data System to the data currently received in the Automated Commercial System using the ABI message layout. This data will be transferred to the Automated Commercial Environment and stored and made available to those agencies via the ACE Portal.
* CBP does have a backlog of protests and internal advice requests at headquarters, intends to add additional personnel to the branches responsible for these cases and is piloting a project to make increased use of the National Commodity Specialist Division in the analysis of these cases.
* In response to a request for Free And Secure Trade lanes to begin further back on roads leading to border crossings, Bersin indicated that CBP itself cannot make this change but "would be favorably disposed to approaching the relevant authorities with the trade community to seek solutions in specific locations."
* On June 9 CBP's Office of Field Operations reissued internal policy guidance directing that non-security and trade compliance inspections be conducted at ports of entry or unlading instead of ports of arrival.
* CBP will begin to offer two annual C-TPAT conferences a year, one on the West Coast and one on the East Coast or in the Midwest. Each seminar will accommodate approximately 1,200 attendees. CBP is exploring the possibility of webcasting these events.
* A task force created to develop initiatives to allow CBP to manage by account is reviewing the role of account managers, CBP's account-based risk management efforts, simplified entry and financial processing, and ACE's role in managing by account.
* The Office of Trade has piloted a two-week advance training session on free trade agreements, other preference programs and textiles that will be rolled out this summer for import specialists and others charged with enforcing such provisions.
* Bersin declined to allow foreign drivers to reposition in the U.S. foreign-based trailers that did not enter and/or will not leave with the same driver. The trade community argued that this flexibility would improve driver and equipment efficiency and reduce truck emissions.
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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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