(Toronto Star)
U.S. firms do thriving business in Canada as Obama policy shuts us out, owners say
As the poster boy for Buy American, steel industry executive Dan DiMicco is a leader in the campaign that is keeping Canadian companies from bidding on highly valuable urban renewal projects south of the border. But his North Carolina-based corporate giant continues to sell millions of dollars of structural steel in Canada every year with no problem.
The advantage enjoyed by Nucor Corp. and other huge U.S. companies has Canadian manufacturers up in arms, saying they are being barred from bidding on contracts in the U.S. even as American companies with free access to the Canadian market are beating them out for business here at home.
Their complaints have grown all the more urgent as efforts by Prime Minister Stephen Harper’s government to win an exemption for Canadian firms from Buy American in the U.S. have bogged down at the negotiating table.
John Hayward, who runs an industrial equipment plant in Halton Hills, said U.S. President Barack Obama talks about the importance of free trade “but the actions just aren’t matching up with the words. Read more here.
Saturday, November 14, 2009
Friday, November 13, 2009
UPS vs. FEDEX: Ultimate Whiteboard Remix
(Reason TV)
You may have heard the UPS is in quite the political fight with FEDEX. Though both are package-delivery companies, they’re governed by totally different federal labor rules. As a result, UPS’s workforce is much more heavily unionized than FEDEX’s—and more than twice as expensive.
So now UPS is trying to get FEDEX reclassified under federal law as a way of screwing a competitor. That’s horrendous, but it also makes a sick kind of business sense. And it also reveals the real villain: A government that is big enough to absolutely, positively guarantee it can screw any business. Overnight.
“UPS Vs. FEDEX” was produced by Meredith Bragg and Nick Gillespie (who also hosts).
You may have heard the UPS is in quite the political fight with FEDEX. Though both are package-delivery companies, they’re governed by totally different federal labor rules. As a result, UPS’s workforce is much more heavily unionized than FEDEX’s—and more than twice as expensive.
So now UPS is trying to get FEDEX reclassified under federal law as a way of screwing a competitor. That’s horrendous, but it also makes a sick kind of business sense. And it also reveals the real villain: A government that is big enough to absolutely, positively guarantee it can screw any business. Overnight.
“UPS Vs. FEDEX” was produced by Meredith Bragg and Nick Gillespie (who also hosts).
Canada U.S Trade Deficits: Contrasting Stories
International Trade Deficit Narrows to $927M in September
(Ottawa Business Journal)
Canada's international trade deficit narrowed to $927 million in September from $1.99 billion, amid stronger export numbers and a slight decline in imports, although the positive news was tempered by the fact that the country's trade surplus with the United States also shrank.
The Statistics Canada report showed exports grew 3.5 per cent to $30.26 billion, while imports edged down 0.1 per cent to $31.18 billion.
Export volumes increased 4.5 per cent, as Canada's outward-bound trade continued rebounding after reaching a low point in May 2009. Exports have increased in three of the past four months, the report added, following a downward trend that began in July 2008.
U.S. Trade Gap Widens as Imports Outpace Exports
(Wall Street Journal)
The U.S. trade deficit widened more than expected in September while import prices rose less than forecast, in line with the Federal Reserve's view that the economy is recovering slowly with inflation staying low.
The trade deficit rose 18.2% to $36.5 billion in September as rising imports, especially for oil, continued to offset export gains. The trade gap with China reached its highest level in nearly a year. Economists surveyed by Dow Jones Newswires had expected the September deficit would widen to just $32 billion.
U.S. exports in September rose 2.9% to $132.0 billion from $128.30 billion the previous month, the Commerce Department reported Friday. Imports rose twice as much, growing 5.8% to $168.4 billion from $159.1 billion. Read more here.
(Ottawa Business Journal)
Canada's international trade deficit narrowed to $927 million in September from $1.99 billion, amid stronger export numbers and a slight decline in imports, although the positive news was tempered by the fact that the country's trade surplus with the United States also shrank.
The Statistics Canada report showed exports grew 3.5 per cent to $30.26 billion, while imports edged down 0.1 per cent to $31.18 billion.
Export volumes increased 4.5 per cent, as Canada's outward-bound trade continued rebounding after reaching a low point in May 2009. Exports have increased in three of the past four months, the report added, following a downward trend that began in July 2008.
U.S. Trade Gap Widens as Imports Outpace Exports
(Wall Street Journal)
The U.S. trade deficit widened more than expected in September while import prices rose less than forecast, in line with the Federal Reserve's view that the economy is recovering slowly with inflation staying low.
The trade deficit rose 18.2% to $36.5 billion in September as rising imports, especially for oil, continued to offset export gains. The trade gap with China reached its highest level in nearly a year. Economists surveyed by Dow Jones Newswires had expected the September deficit would widen to just $32 billion.
U.S. exports in September rose 2.9% to $132.0 billion from $128.30 billion the previous month, the Commerce Department reported Friday. Imports rose twice as much, growing 5.8% to $168.4 billion from $159.1 billion. Read more here.
Opinion: America Leaves Itself Behind
(Wall Street Journal)
A world of trade deals without the U.S.
President Obama heads for Asia this week to talk about U.S. economic recovery and reform, and one theme that we expect he'll hear from Asian leaders is this: America is leaving itself behind as the rest of the world tries to liberalize trade.
The numbers tell the story. At least 266 bilateral or regional trade deals are in force, according to the World Trade Organization, and there are roughly 100 more of which the WTO has not yet been formally informed. The U.S. is a party to only five of the 64 trade pacts that have taken effect since 2005 – with Australia, Morocco, Bahrain, Oman and Peru.
In contrast, eight of those 64 deals involve the European Union (plus a round of EU expansion) and Japan has signed nine. Overall the U.S. has trade deals with only 17 countries including Canada and Mexico under Nafta. The EU has struck 29 deals on trade ranging from customs unions to larger free-trade agreements with 40 economies.
Of the deals the WTO knows about, an average of seven took effect each year in the five years after the WTO's founding in 1995. For 2004-2008, the annual average rose to 15. Another 12 have kicked in this year. New Zealand and Malaysia signed a pact last week, for instance, and China and India are in talks. Oh, and there's also the newly signed EU-Korea trade deal, and the one signed last year between Canada and Colombia.
These deals are proliferating for many reasons. Some countries are losing patience with the Doha round of global trade talks that has dragged on for eight years. Others view bilateral deals as a way of liberalizing beyond what Doha would accomplish – including areas like intellectual-property protection. These deals can also firm up alliances or build political influence, which is one reason China is aggressively pursuing trade deals with its neighbors. Read more here.
A world of trade deals without the U.S.
President Obama heads for Asia this week to talk about U.S. economic recovery and reform, and one theme that we expect he'll hear from Asian leaders is this: America is leaving itself behind as the rest of the world tries to liberalize trade.
The numbers tell the story. At least 266 bilateral or regional trade deals are in force, according to the World Trade Organization, and there are roughly 100 more of which the WTO has not yet been formally informed. The U.S. is a party to only five of the 64 trade pacts that have taken effect since 2005 – with Australia, Morocco, Bahrain, Oman and Peru.
In contrast, eight of those 64 deals involve the European Union (plus a round of EU expansion) and Japan has signed nine. Overall the U.S. has trade deals with only 17 countries including Canada and Mexico under Nafta. The EU has struck 29 deals on trade ranging from customs unions to larger free-trade agreements with 40 economies.
Of the deals the WTO knows about, an average of seven took effect each year in the five years after the WTO's founding in 1995. For 2004-2008, the annual average rose to 15. Another 12 have kicked in this year. New Zealand and Malaysia signed a pact last week, for instance, and China and India are in talks. Oh, and there's also the newly signed EU-Korea trade deal, and the one signed last year between Canada and Colombia.
These deals are proliferating for many reasons. Some countries are losing patience with the Doha round of global trade talks that has dragged on for eight years. Others view bilateral deals as a way of liberalizing beyond what Doha would accomplish – including areas like intellectual-property protection. These deals can also firm up alliances or build political influence, which is one reason China is aggressively pursuing trade deals with its neighbors. Read more here.
Chinese Canola Decision Still Presents Problems
(PortageOnline.com)
The Canola Council of Canada is disappointed with China's decision to restrict Canadian canola seed sales.
Several weeks ago, the Chinese announced they would not accept Canadian canola unless it is certified as free of the blackleg fungus. Then on Tuesday, the Chinese made some concessions, saying they would still accept Canadian canola, but not at ports in 19 provinces where canola is grown.
The Canola Council estimates this will limit canola export sales to roughly 30% of what they have been in the past.
China was Canada's top canola seed market last year, importing 2.87 million tonnes.
Prime Minister Harper is headed to China in December, and Agriculture Minister Gerry Ritz has says this dispute will be one of Harper's priorities.
The Canola Council of Canada is disappointed with China's decision to restrict Canadian canola seed sales.
Several weeks ago, the Chinese announced they would not accept Canadian canola unless it is certified as free of the blackleg fungus. Then on Tuesday, the Chinese made some concessions, saying they would still accept Canadian canola, but not at ports in 19 provinces where canola is grown.
The Canola Council estimates this will limit canola export sales to roughly 30% of what they have been in the past.
China was Canada's top canola seed market last year, importing 2.87 million tonnes.
Prime Minister Harper is headed to China in December, and Agriculture Minister Gerry Ritz has says this dispute will be one of Harper's priorities.
Industry Minister Clement to Explore Improved Trade Relations During Visit to Israel
(Industry Canada)
The Honourable Tony Clement, Minister of Industry, will arrive in Tel Aviv tomorrow [Saturday] to begin five days of meetings that will focus on Canada–Israel trade relations and developments in the field of water technologies.
“This year marks the 60th anniversary of relations between our two countries and the 12th anniversary of the Canada–Israel Free Trade Agreement,” said Minister Clement. “I am hoping that our visit may lead to even closer cooperation and serve to demonstrate to companies here that Canada is a good place to do business.”
One of the highlights of the trip will be the Minister’s attendance at the International Water Technologies, Renewable Energy and Environmental Control Exhibition (WATEC). The Minister is scheduled to address WATEC on the significant initiatives Canada has undertaken, both domestically and internationally, in the field of water technologies. Read more here.
The Honourable Tony Clement, Minister of Industry, will arrive in Tel Aviv tomorrow [Saturday] to begin five days of meetings that will focus on Canada–Israel trade relations and developments in the field of water technologies.
“This year marks the 60th anniversary of relations between our two countries and the 12th anniversary of the Canada–Israel Free Trade Agreement,” said Minister Clement. “I am hoping that our visit may lead to even closer cooperation and serve to demonstrate to companies here that Canada is a good place to do business.”
One of the highlights of the trip will be the Minister’s attendance at the International Water Technologies, Renewable Energy and Environmental Control Exhibition (WATEC). The Minister is scheduled to address WATEC on the significant initiatives Canada has undertaken, both domestically and internationally, in the field of water technologies. Read more here.
Calais Border Crossing Opens Monday
(Sharon Kiley Mack — Bangor Daily News)
U.S. Customs and Border Protection will be opening the new Calais-St. Stephen border crossing for international traffic at 9 a.m. Monday, Nov. 16, according to spokesman Ted Woo.
The 50-acre, $120 million project took just more than a year and a half to complete.
In New Brunswick, the roadway improvements by New Brunswick Department of Transportation are estimated at $53 million, while the new customs facility on the Canadian side of the border cost another $13 million. The cost of the new $10 million bridge across the St. Croix River is being shared equally by New Brunswick and Maine.
The new U.S. border facility cost $40 million and road improvements in the nearby Calais Industrial Park and along Route 1 in Calais totaled another $11 million. Read more here.
U.S. Customs and Border Protection will be opening the new Calais-St. Stephen border crossing for international traffic at 9 a.m. Monday, Nov. 16, according to spokesman Ted Woo.
The 50-acre, $120 million project took just more than a year and a half to complete.
In New Brunswick, the roadway improvements by New Brunswick Department of Transportation are estimated at $53 million, while the new customs facility on the Canadian side of the border cost another $13 million. The cost of the new $10 million bridge across the St. Croix River is being shared equally by New Brunswick and Maine.
The new U.S. border facility cost $40 million and road improvements in the nearby Calais Industrial Park and along Route 1 in Calais totaled another $11 million. Read more here.
Thursday, November 12, 2009
Path to Recovery Challenging for Canada’s Regions
(Export Development Canada – Peter G. Hall)
This year has already made history. As far back as the records go, Canadian exporters have not seen a worse year than 2009 – by a factor of five, no less. Canada’s recession was indeed an imported one, and the decline in activity is so dramatic that no single province but the smallest has escaped its effects. Even so, there are differences in each province’s experience, and in the outlook for 2010.
Pan across estimated performance for 2009, and export losses in certain provinces seem impossibly severe. Declines of 29% in New Brunswick, Saskatchewan and British Columbia, topped by a 36% plunge in Alberta, and an unthinkable 44% drubbing in Newfoundland. The magnitude almost seems impossible, until put in proper context. By and large, this year’s big losers saw banner performances in 2008 – for Newfoundland, a 27% increase, a stunning 34% gain in Alberta. But nothing matched the drama of Saskatchewan’s explosive 55% surge. These gyrations reflected movements in the prices of key commodity exports, which settled down again this year after their late-boom spike.
Unfortunately, not all provinces had such well-padded declines. Prior to this year’s plunge, British Columbia saw just 5% growth in 2008, as overall performance was weighed down by the front-running plight of the lumber industry. Nova Scotia’s 24% drop this year was preceded by a relatively slim 7.6% gain in 2008, which itself reflected early weakness in the lumber and fishing industries. Quebec’s growth was stunted in 2008 by a sharp drop in aluminum exports. However, Ontario entered the downturn in the weakest position. The early woes of the auto sector led to a 7.7% drop in exports last year, the weakest performance among the provinces, and the only region to post a decline.
Read the article or watch the video here.
This year has already made history. As far back as the records go, Canadian exporters have not seen a worse year than 2009 – by a factor of five, no less. Canada’s recession was indeed an imported one, and the decline in activity is so dramatic that no single province but the smallest has escaped its effects. Even so, there are differences in each province’s experience, and in the outlook for 2010.
Pan across estimated performance for 2009, and export losses in certain provinces seem impossibly severe. Declines of 29% in New Brunswick, Saskatchewan and British Columbia, topped by a 36% plunge in Alberta, and an unthinkable 44% drubbing in Newfoundland. The magnitude almost seems impossible, until put in proper context. By and large, this year’s big losers saw banner performances in 2008 – for Newfoundland, a 27% increase, a stunning 34% gain in Alberta. But nothing matched the drama of Saskatchewan’s explosive 55% surge. These gyrations reflected movements in the prices of key commodity exports, which settled down again this year after their late-boom spike.
Unfortunately, not all provinces had such well-padded declines. Prior to this year’s plunge, British Columbia saw just 5% growth in 2008, as overall performance was weighed down by the front-running plight of the lumber industry. Nova Scotia’s 24% drop this year was preceded by a relatively slim 7.6% gain in 2008, which itself reflected early weakness in the lumber and fishing industries. Quebec’s growth was stunted in 2008 by a sharp drop in aluminum exports. However, Ontario entered the downturn in the weakest position. The early woes of the auto sector led to a 7.7% drop in exports last year, the weakest performance among the provinces, and the only region to post a decline.
Read the article or watch the video here.
Manufacturing in Ontario Works: Pupatello
(Canadian Manufacturing – Mike Ouellette)
Two concrete messages came from the Revitalizing Canadian Manufacturing conference held yesterday at the Ted Rogers School of Management.
The first is that Canada desperately requires a national manufacturing policy similar to the policies enacted by all of the countries we compete against. This policy should contain sector-specific planning and be devised to encourage investment in emerging markets, not the overly-commoditized, ailing markets of years past – those have already been lost.
“You can’t create wealth in an economy by spinning people’s debt. You eventually have to make something people want to buy,” said Jayson Myers, president and chief economist for the Canadian Manufactures and Exporters.
Jim Stanford, an economist for the Canadian Autoworkers Union, says such a policy must include something for all sectors of manufacturing, citing the federal focus on the oil sands as an impediment to progress. “Digging stuff out of the ground and selling it to someone else to process makes you a ‘swack’ of money up front but doesn’t further the knowledge base, which is inherently more useful,” Stanford said. Read more here.
Two concrete messages came from the Revitalizing Canadian Manufacturing conference held yesterday at the Ted Rogers School of Management.
The first is that Canada desperately requires a national manufacturing policy similar to the policies enacted by all of the countries we compete against. This policy should contain sector-specific planning and be devised to encourage investment in emerging markets, not the overly-commoditized, ailing markets of years past – those have already been lost.
“You can’t create wealth in an economy by spinning people’s debt. You eventually have to make something people want to buy,” said Jayson Myers, president and chief economist for the Canadian Manufactures and Exporters.
Jim Stanford, an economist for the Canadian Autoworkers Union, says such a policy must include something for all sectors of manufacturing, citing the federal focus on the oil sands as an impediment to progress. “Digging stuff out of the ground and selling it to someone else to process makes you a ‘swack’ of money up front but doesn’t further the knowledge base, which is inherently more useful,” Stanford said. Read more here.
Canada Increases Its Southeast Asia Presence
(Minister of Foreign Affairs)
The Honourable Lawrence Cannon, Minister of Foreign Affairs, and the Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today [Thursday] announced that Canada is taking steps to increase its commercial and political presence in Southeast Asia by creating Canada’s Association of Southeast Asian Nations (ASEAN) Network. The Ministers made the announcement while attending the Asia-Pacific Economic Cooperation (APEC) Ministerial Meeting in Singapore.
“We are strengthening our presence in Southeast Asia with the right people, and doing the right things to get tangible results for Canadians,” said Minister Cannon. “The ASEAN Network reinforces Canada’s strong commitment to the promotion and protection of Canadian values of freedom, democracy, human rights and the rule of law. With respect to Burma, Canada is strengthening its advocacy on human rights; we look forward to closer cooperation in the region.”
Canada’s ASEAN Network will involve experts working on trade and investment, human rights, security, health, natural disasters and other bilateral and multilateral issues in the region.
“The ASEAN Network will further Canadian interests in the region and help identify new business opportunities for Canadian companies,” said Minister Day. “Additional experts in Canada’s missions in Southeast Asia will promote Canada as an investment destination of choice. Canada has a lot to offer, including a sound banking system, a stable business environment, the lowest corporate taxes in the G7 by 2012, and a dynamic, talented, highly qualified workforce.” […]
For more information about the Ministers’ participation at the APEC meeting, please visit APEC 2009 here.
The Honourable Lawrence Cannon, Minister of Foreign Affairs, and the Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today [Thursday] announced that Canada is taking steps to increase its commercial and political presence in Southeast Asia by creating Canada’s Association of Southeast Asian Nations (ASEAN) Network. The Ministers made the announcement while attending the Asia-Pacific Economic Cooperation (APEC) Ministerial Meeting in Singapore.
“We are strengthening our presence in Southeast Asia with the right people, and doing the right things to get tangible results for Canadians,” said Minister Cannon. “The ASEAN Network reinforces Canada’s strong commitment to the promotion and protection of Canadian values of freedom, democracy, human rights and the rule of law. With respect to Burma, Canada is strengthening its advocacy on human rights; we look forward to closer cooperation in the region.”
Canada’s ASEAN Network will involve experts working on trade and investment, human rights, security, health, natural disasters and other bilateral and multilateral issues in the region.
“The ASEAN Network will further Canadian interests in the region and help identify new business opportunities for Canadian companies,” said Minister Day. “Additional experts in Canada’s missions in Southeast Asia will promote Canada as an investment destination of choice. Canada has a lot to offer, including a sound banking system, a stable business environment, the lowest corporate taxes in the G7 by 2012, and a dynamic, talented, highly qualified workforce.” […]
For more information about the Ministers’ participation at the APEC meeting, please visit APEC 2009 here.
FAST, Importer Application Process for Importing into Canada
(CSCB)
The CBSA has published a guide on FAST, Importer Application Process for Importing into Canada. It is available on the CBSA website.
The CBSA has published a guide on FAST, Importer Application Process for Importing into Canada. It is available on the CBSA website.
Audit of the MOU Between the CBSA and the CFIA
(CBSA)
The portion of the CFIA responsibility for traveller and initial inspection services at all Canadian ports of entry for food, plants and animals (FPAs) and related products was transferred to the CBSA by Order-in-Council in 2003. The CBSA is responsible for the initial import inspection services set out in Section 11 of the Canadian Food Inspection Agency Act to the extent that they are applicable at airports and Canadian border points. […]
The audit found that the CBSA was partially meeting its obligations under the MOU as the control framework to support FPA-related border activities was not complete. While the FPA-related procedures in effect were adequate for wood packaging given the risk exposure, the procedures in effect for international waste and soil, performance monitoring and reporting, and risk management needed to be improved. Read the complete statement here.
The portion of the CFIA responsibility for traveller and initial inspection services at all Canadian ports of entry for food, plants and animals (FPAs) and related products was transferred to the CBSA by Order-in-Council in 2003. The CBSA is responsible for the initial import inspection services set out in Section 11 of the Canadian Food Inspection Agency Act to the extent that they are applicable at airports and Canadian border points. […]
The audit found that the CBSA was partially meeting its obligations under the MOU as the control framework to support FPA-related border activities was not complete. While the FPA-related procedures in effect were adequate for wood packaging given the risk exposure, the procedures in effect for international waste and soil, performance monitoring and reporting, and risk management needed to be improved. Read the complete statement here.
PM Departs for Asia with Ambitious Agenda
(David Akin — Canwest News Service)
Prime Minister Stephen Harper travels Thursday to Asia for a weekend summit in Singapore of Pacific Rim nations, followed by three days next week in India, a trip that Canadian officials hope leads to “a brand new era of partnership” with the world’s largest democracy.
It will be Harper’s first trip to India and his office has a jam-packed dawn-to-dusk itinerary that includes political, commercial, cultural and spiritual events. […]
“This is a very ambitious agenda for India,” said Dimitri Soudas, Harper’s chief spokesman. “There is a tremendous amount of untapped potential to the Canada-India relationship.”
A key focus for the trip will be improved trade relations with India, a country of 1.2 billion people whose economy is rapidly expanding despite the recession. Two-way trade between the two countries is tiny, at just $2 billion a year, but officials in both countries believe the time is right to increase that amount. Read more here.
Prime Minister Stephen Harper travels Thursday to Asia for a weekend summit in Singapore of Pacific Rim nations, followed by three days next week in India, a trip that Canadian officials hope leads to “a brand new era of partnership” with the world’s largest democracy.
It will be Harper’s first trip to India and his office has a jam-packed dawn-to-dusk itinerary that includes political, commercial, cultural and spiritual events. […]
“This is a very ambitious agenda for India,” said Dimitri Soudas, Harper’s chief spokesman. “There is a tremendous amount of untapped potential to the Canada-India relationship.”
A key focus for the trip will be improved trade relations with India, a country of 1.2 billion people whose economy is rapidly expanding despite the recession. Two-way trade between the two countries is tiny, at just $2 billion a year, but officials in both countries believe the time is right to increase that amount. Read more here.
Wednesday, November 11, 2009
Taiwan, China to Begin Trade Pact Talks in December
(Bloomberg – Janet Ong)
Taiwan and China will begin talks on a trade agreement in December as the island seeks to revive its economy and the government in Beijing aims for extra leverage over its counterpart in Taipei. The accord will be discussed at cross-strait negotiations on cooperation in the fishing industry, certification of agricultural and industrial goods and double taxation, said Ma Shao-chang, deputy secretary-general of Taiwan’s Straits Exchange Foundation.
“We will be signing agreements on the four items and will exchange views on the trade agreement at the talks in Taichung, central Taiwan,” Ma said by telephone today. “But there won’t be any signing of a trade accord at this stage.”
Cross-strait dialogue resumed last year, following a nine-year hiatus, after President Ma Ying-jeou abandoned his predecessor’s pro-independence stance. The island is seeking closer ties with the mainland to support an economy that may contract at a record pace this year on declining exports and investment.
Zheng Lizhong, deputy head of the Beijing-based Association for Relations Across the Taiwan Strait, unexpectedly flew into Taipei today for talks with his Taiwanese counterpart Kao Koong- lian to complete details of the meeting, due to be held in the second-half of December, Ma said. Officials met in Hangzhou in eastern China last month to arrange the talks. Read more here.
Taiwan and China will begin talks on a trade agreement in December as the island seeks to revive its economy and the government in Beijing aims for extra leverage over its counterpart in Taipei. The accord will be discussed at cross-strait negotiations on cooperation in the fishing industry, certification of agricultural and industrial goods and double taxation, said Ma Shao-chang, deputy secretary-general of Taiwan’s Straits Exchange Foundation.
“We will be signing agreements on the four items and will exchange views on the trade agreement at the talks in Taichung, central Taiwan,” Ma said by telephone today. “But there won’t be any signing of a trade accord at this stage.”
Cross-strait dialogue resumed last year, following a nine-year hiatus, after President Ma Ying-jeou abandoned his predecessor’s pro-independence stance. The island is seeking closer ties with the mainland to support an economy that may contract at a record pace this year on declining exports and investment.
Zheng Lizhong, deputy head of the Beijing-based Association for Relations Across the Taiwan Strait, unexpectedly flew into Taipei today for talks with his Taiwanese counterpart Kao Koong- lian to complete details of the meeting, due to be held in the second-half of December, Ma said. Officials met in Hangzhou in eastern China last month to arrange the talks. Read more here.
Tuesday, November 10, 2009
Transportation, Warehousing Industry to Take Nearly 30% Hit in ‘09
(Canadian Transportation & Logistics via Truck News)
Profits are expected to be down more than 20% this year across six Canadian industries covered by the Conference Board of Canada’s Canadian Industrial Profile-Autumn 2009, including transportation and warehousing.
The study found that profit levels for Canada’s transportation and warehousing industry have fallen 29% from $7.3 billion in 2008 to $5.2 billion in 2009. Officials said that the industry has been hit by diminishing global trade and manufacturing production, but is expected to experience a “robust” recovery post-recession.
The profiles, produced in collaboration with the Business Development Bank of Canada (BDC), provide a five-year outlook for the following industries: accommodation; food and beverage manufacturing; food services; retail trade; transportation and warehousing; and wholesale trade. Read more here.
Profits are expected to be down more than 20% this year across six Canadian industries covered by the Conference Board of Canada’s Canadian Industrial Profile-Autumn 2009, including transportation and warehousing.
The study found that profit levels for Canada’s transportation and warehousing industry have fallen 29% from $7.3 billion in 2008 to $5.2 billion in 2009. Officials said that the industry has been hit by diminishing global trade and manufacturing production, but is expected to experience a “robust” recovery post-recession.
The profiles, produced in collaboration with the Business Development Bank of Canada (BDC), provide a five-year outlook for the following industries: accommodation; food and beverage manufacturing; food services; retail trade; transportation and warehousing; and wholesale trade. Read more here.
NAFTA Partners Break Seven-Month Surface Trade Decline
(Canadian Transportation & Logistics via Truck News)
Trade using surface transportation between Canada, the U.S. and Mexico was 24.9% lower in August 2009 than in August 2008, coming in at $54.3 billion, according to the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation. But that figure was still good enough to break a seven-month skid in surface trade numbers.
BTS, a part of the Research and Innovative Technology Administration, reported that the value of US surface transportation trade with Canada and Mexico rose 5.3% in August 2009 from July 2009.
The value of U.S. surface transportation trade with Canada and Mexico in August was up 1.3% compared to August 2004, and up 26.0% compared to August 1999. Imports in August were up 18.8% compared to August 1999, while exports were up 35.5%. Read more here.
Trade using surface transportation between Canada, the U.S. and Mexico was 24.9% lower in August 2009 than in August 2008, coming in at $54.3 billion, according to the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation. But that figure was still good enough to break a seven-month skid in surface trade numbers.
BTS, a part of the Research and Innovative Technology Administration, reported that the value of US surface transportation trade with Canada and Mexico rose 5.3% in August 2009 from July 2009.
The value of U.S. surface transportation trade with Canada and Mexico in August was up 1.3% compared to August 2004, and up 26.0% compared to August 1999. Imports in August were up 18.8% compared to August 1999, while exports were up 35.5%. Read more here.
Can Have Both Border Trade, Security: Jacobson
(Embassy – Angelo Persichilli)
The new American ambassador to Ottawa, David Jacobson, is touring Canada because he wants “to learn as much as I can” about the country. A few days ago he was in Niagara Falls, visiting the customs facilities on both sides of the border. He was jovial, spontaneous and very open to talk about the relationship between Canada and the United States. He believes in the ability and the will of both governments to combine the need for business and the duty to provide security, and he is not concerned about the “irritants” between the two countries.
Embassy interviewed Mr. Jacobson while he was crossing the border after the visit on the U.S. side and coming over to Canada. An edited transcript of that interview can be read Read more here.
The new American ambassador to Ottawa, David Jacobson, is touring Canada because he wants “to learn as much as I can” about the country. A few days ago he was in Niagara Falls, visiting the customs facilities on both sides of the border. He was jovial, spontaneous and very open to talk about the relationship between Canada and the United States. He believes in the ability and the will of both governments to combine the need for business and the duty to provide security, and he is not concerned about the “irritants” between the two countries.
Embassy interviewed Mr. Jacobson while he was crossing the border after the visit on the U.S. side and coming over to Canada. An edited transcript of that interview can be read Read more here.
Geithner: Strong Dollar ‘Very Important’ for U.S.
(Agence France-Presse)
The dollar has plunged about 15% against a basket of six other major currencies from a peak earlier this year
U.S. Treasury Secretary Timothy Geithner said Wednesday a strong dollar was “very important” to the United States, seeking to reassure Asian nations concerned about the greenback’s recent slump. “I believe deeply that it’s very important for the U.S. and the economic health of the U.S. that we maintain a strong dollar,” Geithner told reporters in Tokyo.
Given the dollar’s key role in the world financial system, “we bear special responsibility for trying to make sure that we are implementing policy in the U.S. that will sustain confidence” among global investors, he said.
The dollar has plunged about 15% against a basket of six other major currencies from a peak earlier this year, sparking concern among Asian countries that have big holdings of dollars in their foreign exchange reserves. The dollar’s weakness is also bad news for many Asian exporters, which are struggling to maintain their competitiveness, particularly against Chinese rivals benefiting from the relative stability of the yuan. Read more here.
The dollar has plunged about 15% against a basket of six other major currencies from a peak earlier this year
U.S. Treasury Secretary Timothy Geithner said Wednesday a strong dollar was “very important” to the United States, seeking to reassure Asian nations concerned about the greenback’s recent slump. “I believe deeply that it’s very important for the U.S. and the economic health of the U.S. that we maintain a strong dollar,” Geithner told reporters in Tokyo.
Given the dollar’s key role in the world financial system, “we bear special responsibility for trying to make sure that we are implementing policy in the U.S. that will sustain confidence” among global investors, he said.
The dollar has plunged about 15% against a basket of six other major currencies from a peak earlier this year, sparking concern among Asian countries that have big holdings of dollars in their foreign exchange reserves. The dollar’s weakness is also bad news for many Asian exporters, which are struggling to maintain their competitiveness, particularly against Chinese rivals benefiting from the relative stability of the yuan. Read more here.
Immigration, Border Rules Hurting Our Community, State [Washington]
(Bellingham Herald – Edward Alden and Margaret D. Stock)
A show of hands please. How many of you once drove the hour north to Vancouver on a whim every so often, but have given up doing so because of the hassles you’re almost certain to face in coming back home?
If so, you’re in good company. Border and immigration rules are supposed to keep out those not permitted into the country while welcoming the rest with a minimum of delay. Instead, U.S. policy has become fixated only on keeping the wrong people out, at a time when the rest of the world is also thinking about how to let the right people in. Washington state is among many places paying too high a price for that imbalance.
Start with Microsoft, which must attract the most talented information technology engineers in the world to stay on the cutting edge of innovation. Most Microsoft employees are Americans, but some are Chinese or Indians or Russians eager to work in the United States. Yet quota restrictions keep many of those out; others who are permitted to work here must often wait a decade or more before they can get green cards. In the interim, they live a second-class existence in which their spouses are not permitted to work, travel across borders is difficult, and switching jobs is usually impossible.
Those with choices, not surprisingly, are opting for other countries. Microsoft recently decided to open its new research facility in Vancouver rather than in Redmond because U.S. immigration rules had become too great a barrier. “The Canadian government is more welcoming of getting the best and the brightest from around the world than the U.S. government,” chief executive Steve Ballmer put it bluntly last month. Read more here.
A show of hands please. How many of you once drove the hour north to Vancouver on a whim every so often, but have given up doing so because of the hassles you’re almost certain to face in coming back home?
If so, you’re in good company. Border and immigration rules are supposed to keep out those not permitted into the country while welcoming the rest with a minimum of delay. Instead, U.S. policy has become fixated only on keeping the wrong people out, at a time when the rest of the world is also thinking about how to let the right people in. Washington state is among many places paying too high a price for that imbalance.
Start with Microsoft, which must attract the most talented information technology engineers in the world to stay on the cutting edge of innovation. Most Microsoft employees are Americans, but some are Chinese or Indians or Russians eager to work in the United States. Yet quota restrictions keep many of those out; others who are permitted to work here must often wait a decade or more before they can get green cards. In the interim, they live a second-class existence in which their spouses are not permitted to work, travel across borders is difficult, and switching jobs is usually impossible.
Those with choices, not surprisingly, are opting for other countries. Microsoft recently decided to open its new research facility in Vancouver rather than in Redmond because U.S. immigration rules had become too great a barrier. “The Canadian government is more welcoming of getting the best and the brightest from around the world than the U.S. government,” chief executive Steve Ballmer put it bluntly last month. Read more here.
Steps Toward a More Integrated Supply Chain
(ThomasNet – David R. Butcher)
In many respects, the practice of supply chain management has made great progress in recent years. However, few companies have yet reached high levels of integration between planning and execution, a recent report says.
By 2015, supply chain planning and execution will blur, according to a recent presentation in which Supply Chain Digest’s editor-in-chief, Dan Gilmore, discussed specific key issues that he believes receive negligible attention.
“For many years, analysts and others have offered separate models of ‘supply chain planning’ and ‘supply chain execution’ processes, and the technology vendors were generally organized in that sense as well,” Supply Chain Digest said earlier this year.
Yet, according to Gilmore, “The need for response based on market demand and other factors is outstripping current planning cycles.
“Tactical and even some operational planning become completely intertwined with execution, causing changes in organizational structures, processes and technology,” he continued. Read more here.
In many respects, the practice of supply chain management has made great progress in recent years. However, few companies have yet reached high levels of integration between planning and execution, a recent report says.
By 2015, supply chain planning and execution will blur, according to a recent presentation in which Supply Chain Digest’s editor-in-chief, Dan Gilmore, discussed specific key issues that he believes receive negligible attention.
“For many years, analysts and others have offered separate models of ‘supply chain planning’ and ‘supply chain execution’ processes, and the technology vendors were generally organized in that sense as well,” Supply Chain Digest said earlier this year.
Yet, according to Gilmore, “The need for response based on market demand and other factors is outstripping current planning cycles.
“Tactical and even some operational planning become completely intertwined with execution, causing changes in organizational structures, processes and technology,” he continued. Read more here.
Regional eManifest Coordinators
(CBSA)
At the Border Commercial Consultative Committee (BCCC) meeting, held on September 29 and 30 in Ottawa, it was suggested that the contact information of the regional eManifest coordinators be provided to trade members. We encourage you to contact the regional coordinators listed below as they are available to provide you with information, as well as more formal presentations, related to the eManifest initiative.
If you have any questions regarding this information, please contact Kathleen Pomrenke by email kathleen.pomrenke@cbsa-asfc.gc.ca or by phone at 613-941-5587.
Atlantic
Colette Pelletier-Langevin: C.Pelletier-Langevin@cbsa-asfc.gc.ca Tel: 506-739-1839
Quebec
Loana Villa: Loana.Villa@cbsa-asfc.gc.ca Tel: 514-283-8700 (ext./poste 8351)
Northern Ontario
Rosa Febbraro: Rosa.Febbraro@cbsa-asfc.gc.ca Tel: 705-941-3051
Greater Toronto Area
Michelle McCrum: Michelle.McCrum@cbsa-asfc.gc.ca Tel: 905-803-7205
Windsor/St.Clair
Sherry McCauley: Sherry.McCauley@cbsa-asfc.gc.ca Tel: 519-967-4208
Niagara/Fort Erie
Debbie Smyth: Debbie.Smyth@cbsa-asfc.gc.ca Tel: 905-994-6004
Prairie
Liz Pasieczka: Liz.Pasieczka@cbsa-asfc.gc.ca Tel: 204-983-6923
Pacific
Lorraine Kopetzki: Lorraine.Kopetzki@cbsa-asfc.gc.ca Tel: 250-363-3414
At the Border Commercial Consultative Committee (BCCC) meeting, held on September 29 and 30 in Ottawa, it was suggested that the contact information of the regional eManifest coordinators be provided to trade members. We encourage you to contact the regional coordinators listed below as they are available to provide you with information, as well as more formal presentations, related to the eManifest initiative.
If you have any questions regarding this information, please contact Kathleen Pomrenke by email kathleen.pomrenke@cbsa-asfc.gc.ca or by phone at 613-941-5587.
Atlantic
Colette Pelletier-Langevin: C.Pelletier-Langevin@cbsa-asfc.gc.ca Tel: 506-739-1839
Quebec
Loana Villa: Loana.Villa@cbsa-asfc.gc.ca Tel: 514-283-8700 (ext./poste 8351)
Northern Ontario
Rosa Febbraro: Rosa.Febbraro@cbsa-asfc.gc.ca Tel: 705-941-3051
Greater Toronto Area
Michelle McCrum: Michelle.McCrum@cbsa-asfc.gc.ca Tel: 905-803-7205
Windsor/St.Clair
Sherry McCauley: Sherry.McCauley@cbsa-asfc.gc.ca Tel: 519-967-4208
Niagara/Fort Erie
Debbie Smyth: Debbie.Smyth@cbsa-asfc.gc.ca Tel: 905-994-6004
Prairie
Liz Pasieczka: Liz.Pasieczka@cbsa-asfc.gc.ca Tel: 204-983-6923
Pacific
Lorraine Kopetzki: Lorraine.Kopetzki@cbsa-asfc.gc.ca Tel: 250-363-3414
Minister Day Leads Trade Mission to Thailand
(Minister of International Trade)
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, arrived in Thailand yesterday [Sunday] at the head of a trade mission made up of 10 Canadian energy companies.
Minister Day launched the trade mission before an audience of senior Canadian and Thai officials and business representatives in Bangkok. The Minister emphasized that this mission is the first Canadian ministerial visit in six years, and it will promote Canada as a supplier of high-quality goods and services to Thailand and throughout Southeast Asia.
“We must take advantage of the Government of Thailand’s new energy strategy by showcasing Canadian expertise,” said Minister Day. “This trade mission will help open doors for Canadian businesses that have an expertise in areas such as oil and gas exploration and production, natural gas vehicles, biomass energy, and wind, solar and nuclear energy.”
The Thai government’s new energy strategy, approved in January 2009, focuses on achieving greater energy independence and security through both conventional resources and alternative and renewable resources, such as compressed natural gas, bio-fuels and nuclear power.
In addition to having a growing number of Canadian businesses seeking a share of the energy market there, Thailand represents an important investment destination for Canadian companies. Canadian direct investment into Thailand has been increasing over recent years, reaching $1.3 billion at the end of 2008. As well, Canadian exports to Thailand also grew by 20 percent last year, particularly in the areas of machinery, wood pulp, cereals and vehicle parts.
“I am pleased with the solid and expanding nature of our relationship with Thailand, a valued partner in Asia,” said Minister Day. “My visit here not only shows Canada’s commitment to increasing trade and investment with this market, but it also highlights our countries’ interest in working together to create new opportunities in the years to come.”
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, arrived in Thailand yesterday [Sunday] at the head of a trade mission made up of 10 Canadian energy companies.
Minister Day launched the trade mission before an audience of senior Canadian and Thai officials and business representatives in Bangkok. The Minister emphasized that this mission is the first Canadian ministerial visit in six years, and it will promote Canada as a supplier of high-quality goods and services to Thailand and throughout Southeast Asia.
“We must take advantage of the Government of Thailand’s new energy strategy by showcasing Canadian expertise,” said Minister Day. “This trade mission will help open doors for Canadian businesses that have an expertise in areas such as oil and gas exploration and production, natural gas vehicles, biomass energy, and wind, solar and nuclear energy.”
The Thai government’s new energy strategy, approved in January 2009, focuses on achieving greater energy independence and security through both conventional resources and alternative and renewable resources, such as compressed natural gas, bio-fuels and nuclear power.
In addition to having a growing number of Canadian businesses seeking a share of the energy market there, Thailand represents an important investment destination for Canadian companies. Canadian direct investment into Thailand has been increasing over recent years, reaching $1.3 billion at the end of 2008. As well, Canadian exports to Thailand also grew by 20 percent last year, particularly in the areas of machinery, wood pulp, cereals and vehicle parts.
“I am pleased with the solid and expanding nature of our relationship with Thailand, a valued partner in Asia,” said Minister Day. “My visit here not only shows Canada’s commitment to increasing trade and investment with this market, but it also highlights our countries’ interest in working together to create new opportunities in the years to come.”
Tackling ‘Buy American’ Doer’s Toughest Task
(CBC News – The Canadian Press)
Former premier Gary Doer has returned to Manitoba to give his first speech in his home province as Canada’s new ambassador to the U.S. Doer told an audience of 750 at a chamber of commerce event in Winnipeg on Monday that his greatest challenge in Washington is the “Buy American” protectionist policy.
He said the policy might be politically popular, but trade barriers between Canada and the U.S. will do more harm than good. Doer said it’s important that Buy American ideals don’t lead to the U.S. becoming “Closed America” when it comes to trade.
“My view is it’s a lot of work. It’s very important to tie it back to where congressional people ... come from and what jobs in their district are tied to Canada, and that’s the only way to make the case,” Doer said. “If we close our trade relationship even a little bit, it will hurt both of us.”
Doer said he plans to travel to communities across the U.S. to talk about how protectionism will cost jobs. He’s also counting on a grassroots effort to maintain the open trade relationship Canada has with the United States. He said Americans might have other issues on their minds right now, but the economy is still tops for legislators.
Former premier Gary Doer has returned to Manitoba to give his first speech in his home province as Canada’s new ambassador to the U.S. Doer told an audience of 750 at a chamber of commerce event in Winnipeg on Monday that his greatest challenge in Washington is the “Buy American” protectionist policy.
He said the policy might be politically popular, but trade barriers between Canada and the U.S. will do more harm than good. Doer said it’s important that Buy American ideals don’t lead to the U.S. becoming “Closed America” when it comes to trade.
“My view is it’s a lot of work. It’s very important to tie it back to where congressional people ... come from and what jobs in their district are tied to Canada, and that’s the only way to make the case,” Doer said. “If we close our trade relationship even a little bit, it will hurt both of us.”
Doer said he plans to travel to communities across the U.S. to talk about how protectionism will cost jobs. He’s also counting on a grassroots effort to maintain the open trade relationship Canada has with the United States. He said Americans might have other issues on their minds right now, but the economy is still tops for legislators.
Client Document for Advance Commercial Information (ACI) / eManifest Highway Mode
(CBSA)
The Canada Border Services Agency (CBSA) has finalized the initial version of the Electronic Commerce Client Requirements Document (ECCRD) for EDI Highway Cargo and Conveyance.
The ECCRD can be found here, and appendices here and here.
Please note that CBSA has indicated that the ECCRD will be updated as additional functionality is added. For example, the current version does not address “flying” trucks; secondary (freight forwarder) data; full match notification; and broker/freight forwarder download.
The Canada Border Services Agency (CBSA) has finalized the initial version of the Electronic Commerce Client Requirements Document (ECCRD) for EDI Highway Cargo and Conveyance.
The ECCRD can be found here, and appendices here and here.
Please note that CBSA has indicated that the ECCRD will be updated as additional functionality is added. For example, the current version does not address “flying” trucks; secondary (freight forwarder) data; full match notification; and broker/freight forwarder download.
CITT: Oil Country Tubular Goods, Preliminary Injury Inquiries
(CSCB)
The Canadian International Trade Tribunal, under the provisions of subsection 34(2) of the Special Import Measures Act, has conducted a preliminary injury inquiry into whether the evidence discloses a reasonable indication that the dumping and subsidizing of oil country tubular goods originating in or exported from the People’s Republic of China, made of carbon or alloy steel, welded or seamless, heat-treated or not heat-treated, regardless of end finish, having an outside diameter from 2 3/8 inches to 13 3/8 inches (60.3 mm to 339.7 mm), meeting or supplied to meet American Petroleum Institute specification 5CT or equivalent standard, in all grades, excluding drill pipe and excluding seamless casing up to 11 3/4 inches (298.5 mm) in outside diameter, have caused injury or retardation or are threatening to cause injury.
This preliminary injury inquiry is pursuant to the notification, on August 24, 2009, that the President of the Canada Border Services Agency had initiated an investigation into the alleged injurious dumping and subsidizing of the above-mentioned goods.
Pursuant to subsection 37.1(1) of the Special Import Measures Act, the Canadian International Trade Tribunal hereby determines that there is evidence that discloses a reasonable indication that the dumping and subsidizing of the above-mentioned goods have caused injury.
This notice is available on the CBSA website.
The Canadian International Trade Tribunal, under the provisions of subsection 34(2) of the Special Import Measures Act, has conducted a preliminary injury inquiry into whether the evidence discloses a reasonable indication that the dumping and subsidizing of oil country tubular goods originating in or exported from the People’s Republic of China, made of carbon or alloy steel, welded or seamless, heat-treated or not heat-treated, regardless of end finish, having an outside diameter from 2 3/8 inches to 13 3/8 inches (60.3 mm to 339.7 mm), meeting or supplied to meet American Petroleum Institute specification 5CT or equivalent standard, in all grades, excluding drill pipe and excluding seamless casing up to 11 3/4 inches (298.5 mm) in outside diameter, have caused injury or retardation or are threatening to cause injury.
This preliminary injury inquiry is pursuant to the notification, on August 24, 2009, that the President of the Canada Border Services Agency had initiated an investigation into the alleged injurious dumping and subsidizing of the above-mentioned goods.
Pursuant to subsection 37.1(1) of the Special Import Measures Act, the Canadian International Trade Tribunal hereby determines that there is evidence that discloses a reasonable indication that the dumping and subsidizing of the above-mentioned goods have caused injury.
This notice is available on the CBSA website.
CBP Official Outlines Policy on Enforcement of Importer Security Filing Rule
(The Perishable Specialist)
According to press reports, Assistant Commissioner Thomas Winkowski told a November 4 meeting of the Commercial Operations Advisory Committee that U.S. Customs and Border Protection will “take a common sense approach” to imposing penalties for violating the 10+2 importer security filing rule once the current period of informed compliance ends January 26, 2010. Winkowski assured the trade community that CBP’s focus will be more on aiding compliance with the rule than penalizing minor violations and stated that as a result all ISF penalties will first be reviewed at CBP headquarters.
Under the ISF rule, importers and maritime cargo carriers must submit additional cargo data to CBP before vessels are permitted entry into the country. Importers have to report 10 data elements on each ISF, including information that identifies the manufacturer, supplier, seller, buyer and consignee; the country of origin and tariff classification number; where and by whom the goods were stuffed into the container; and the party responsible for compliance with applicable import requirements. Five data elements are required for shipments consisting entirely of freight remaining on board cargo or goods intended to be transported in-bond as an immediate entry or transportation and exportation entry, including who is paying for the transportation of the goods and where the goods are headed. CBP’s goal is to have all data elements filed 24 hours prior to lading, but it has allowed for some flexibility either in timing or interpretation for six of the data elements.
The ISF rule took effect January 26, 2009, but full enforcement will not take effect until January 26, 2010, following a year of education, outreach and informed compliance efforts. As of that date, importers will be subject to fines of $5,000 each time an ISF filing is late or inaccurate. At the recent COAC meeting, however, Winkowski said “it’s not about penalties” or “nitpicking” for CBP, which will seek to avoid levying penalties for minor ISF filing mistakes and instead continue efforts to inform filers of the rule’s requirements. Those efforts have thus far included the issuance of ISF penalty mitigation guidelines and the posting of a list of answers to frequently asked questions on the CBP Web site, and Winkowski said enforcement guidelines are also being developed.
According to press reports, Assistant Commissioner Thomas Winkowski told a November 4 meeting of the Commercial Operations Advisory Committee that U.S. Customs and Border Protection will “take a common sense approach” to imposing penalties for violating the 10+2 importer security filing rule once the current period of informed compliance ends January 26, 2010. Winkowski assured the trade community that CBP’s focus will be more on aiding compliance with the rule than penalizing minor violations and stated that as a result all ISF penalties will first be reviewed at CBP headquarters.
Under the ISF rule, importers and maritime cargo carriers must submit additional cargo data to CBP before vessels are permitted entry into the country. Importers have to report 10 data elements on each ISF, including information that identifies the manufacturer, supplier, seller, buyer and consignee; the country of origin and tariff classification number; where and by whom the goods were stuffed into the container; and the party responsible for compliance with applicable import requirements. Five data elements are required for shipments consisting entirely of freight remaining on board cargo or goods intended to be transported in-bond as an immediate entry or transportation and exportation entry, including who is paying for the transportation of the goods and where the goods are headed. CBP’s goal is to have all data elements filed 24 hours prior to lading, but it has allowed for some flexibility either in timing or interpretation for six of the data elements.
The ISF rule took effect January 26, 2009, but full enforcement will not take effect until January 26, 2010, following a year of education, outreach and informed compliance efforts. As of that date, importers will be subject to fines of $5,000 each time an ISF filing is late or inaccurate. At the recent COAC meeting, however, Winkowski said “it’s not about penalties” or “nitpicking” for CBP, which will seek to avoid levying penalties for minor ISF filing mistakes and instead continue efforts to inform filers of the rule’s requirements. Those efforts have thus far included the issuance of ISF penalty mitigation guidelines and the posting of a list of answers to frequently asked questions on the CBP Web site, and Winkowski said enforcement guidelines are also being developed.
Monday, November 9, 2009
Canadians Could Face Eye Scans at Border
(National Post – Ian Macleod, Canwest News Service)
Homeland Security considers biometrics plan
Washington is turning to the next item on its security agenda: eye scans.
With the last of about 600 northern border radiation detectors having been installed at Trout River, N.Y., on the Quebec border, completing a continent-wide shield aimed at repelling the smuggling of nuclear bombs, dirty bombs and other malicious nuclear materials from Canada, every car, truck and passenger entering the United States by land from Canada is searched for nuclear weapons.
Now, the U.S. Department of Homeland Security proposes to spend billions of dollars collecting fingerprints and eye scans from all foreign travellers at U.S. airports as they leave the country.
Already, the United States demands biometric data, typically fingerprints and digital photos, from arriving air and sea travellers with visas. The chief aim is to try to ensure the person matches the individual who was given the visa overseas. Canadians and Mexicans are currently exempt.
Supporters of the proposed biometric exit check argue it will, among other things, enable officials to check a person’s biometrics against a watch list of known and suspected terrorists, criminals and immigration violators. Read more here.
Homeland Security considers biometrics plan
Washington is turning to the next item on its security agenda: eye scans.
With the last of about 600 northern border radiation detectors having been installed at Trout River, N.Y., on the Quebec border, completing a continent-wide shield aimed at repelling the smuggling of nuclear bombs, dirty bombs and other malicious nuclear materials from Canada, every car, truck and passenger entering the United States by land from Canada is searched for nuclear weapons.
Now, the U.S. Department of Homeland Security proposes to spend billions of dollars collecting fingerprints and eye scans from all foreign travellers at U.S. airports as they leave the country.
Already, the United States demands biometric data, typically fingerprints and digital photos, from arriving air and sea travellers with visas. The chief aim is to try to ensure the person matches the individual who was given the visa overseas. Canadians and Mexicans are currently exempt.
Supporters of the proposed biometric exit check argue it will, among other things, enable officials to check a person’s biometrics against a watch list of known and suspected terrorists, criminals and immigration violators. Read more here.
Sudden Surge in Asia Freight
(Cargonews Asia – Ian Putzger)
Forwarders scramble for space as rates go up
Airlines’ endeavours to push their yields upwards have received a shot in the arm from a surge in demand for lift out of Asia that has forwarders scrambling for capacity.
In recent years, the peak season surge out of Asia to North America and Europe was a non-event, leaving carriers frustrated over the absence of the year’s most lucrative period when bottlenecks traditionally push up pricing. The slump that hit the industry in the fourth quarter of 2008 rendered many charter arrangements that forwarders had put into place in anticipation of tight demand futile, so this year most refrained from lining up charter freighter capacity.
As a result, the rise in volume, that commenced on some sectors as early as August, has hit forwarders unprepared.
Airlines and forwarders reported strengthening of traffic in much of the region – from Japan to Korea, China and Taiwan, but the strongest spike appears to have occurred out of China. Read more here.
Forwarders scramble for space as rates go up
Airlines’ endeavours to push their yields upwards have received a shot in the arm from a surge in demand for lift out of Asia that has forwarders scrambling for capacity.
In recent years, the peak season surge out of Asia to North America and Europe was a non-event, leaving carriers frustrated over the absence of the year’s most lucrative period when bottlenecks traditionally push up pricing. The slump that hit the industry in the fourth quarter of 2008 rendered many charter arrangements that forwarders had put into place in anticipation of tight demand futile, so this year most refrained from lining up charter freighter capacity.
As a result, the rise in volume, that commenced on some sectors as early as August, has hit forwarders unprepared.
Airlines and forwarders reported strengthening of traffic in much of the region – from Japan to Korea, China and Taiwan, but the strongest spike appears to have occurred out of China. Read more here.
U.S. OKs Two More Import Probes Against China
(FlexNews – Reuters)
The United States pushed ahead on Friday with two new investigations into charges of unfair trade practices by China, but rejected a third case one week ahead of President Barack Obama’s trip to Asia.
U.S. lawmakers also asked Obama to renew his support for legislation targeting China’s exchange rate practices.
The U.S. International Trade Commission approved probes into imports of glossy magazine-quality paper from both China and Indonesia totaling hundreds of millions of dollars, as well as certain salts from China that are used in cleaning products, food additives and fertilizer.
The votes came one day after the U.S. Commerce Department slapped preliminary anti-dumping duties on some $2.6 billion worth of steel pipe from China used in the oil and gas sector. Those were in addition to preliminary countervailing duties set on the pipe in September to offset Chinese subsidies.
The steel pipe case is biggest U.S. trade action against China to date and Beijing quickly denounced the new duties. Read more here.
The United States pushed ahead on Friday with two new investigations into charges of unfair trade practices by China, but rejected a third case one week ahead of President Barack Obama’s trip to Asia.
U.S. lawmakers also asked Obama to renew his support for legislation targeting China’s exchange rate practices.
The U.S. International Trade Commission approved probes into imports of glossy magazine-quality paper from both China and Indonesia totaling hundreds of millions of dollars, as well as certain salts from China that are used in cleaning products, food additives and fertilizer.
The votes came one day after the U.S. Commerce Department slapped preliminary anti-dumping duties on some $2.6 billion worth of steel pipe from China used in the oil and gas sector. Those were in addition to preliminary countervailing duties set on the pipe in September to offset Chinese subsidies.
The steel pipe case is biggest U.S. trade action against China to date and Beijing quickly denounced the new duties. Read more here.
Special Briefing: Cuts in Shipping Capacity ‘Risk Empty Shelves’
(Video: BBC • Text: Transport Intelligence – John Manners-Bell)
Last week, a major research project examining the impact of the container shipping industry on the global economy came to a conclusion. The project, called ‘The Box’, was a year-long project for UK broadcaster the BBC to tell the story of international trade and globalisation by tracking a standard shipping container around the world.
The container, provided by NYK and working on a commercial basis, could be tracked via the BBC’s website as it moved across the world via a selection of modes.
To celebrate its return to London, a day of media coverage was organised, examining not only the project but the state of the shipping industry as a whole. Ti’s Chief Executive, John Manners-Bell, was interviewed on radio and TV commenting on trends and developments in the sector over the past year, and its prospects for the immediate future. […]
For more information on the BBC’s project, ‘The Box’, follow this link.
Last week, a major research project examining the impact of the container shipping industry on the global economy came to a conclusion. The project, called ‘The Box’, was a year-long project for UK broadcaster the BBC to tell the story of international trade and globalisation by tracking a standard shipping container around the world.
The container, provided by NYK and working on a commercial basis, could be tracked via the BBC’s website as it moved across the world via a selection of modes.
To celebrate its return to London, a day of media coverage was organised, examining not only the project but the state of the shipping industry as a whole. Ti’s Chief Executive, John Manners-Bell, was interviewed on radio and TV commenting on trends and developments in the sector over the past year, and its prospects for the immediate future. […]
For more information on the BBC’s project, ‘The Box’, follow this link.
Friday, November 6, 2009
Minister Cannon Announces New Canadian Mission in Qatar
(Minister of Foreign Affairs)
The Honourable Lawrence Cannon, Minister of Foreign Affairs, today announced Canada’s intention to open a new embassy in Doha, Qatar, to further expand Canada-Qatar political and trade relations and to advance a common agenda in the broader Middle East and North Africa (BMENA) region.
“Qatar is a fast-growing economy with a stable fiscal framework,” said Minister Cannon. “Canada and Qatar share a commitment to development, human rights, democracy and security.”
As a member of the six-country Gulf Cooperation Council (GCC), Qatar is a priority market under the Government of Canada’s Global Commerce Strategy. In 2008, Canada’s merchandise exports to the GCC region topped $2.9 billion. In 2009, through to August, Canada’s merchandise exports exceeded $2.1 billion, 13.4% ahead of last year’s record pace. Read more here.
The Honourable Lawrence Cannon, Minister of Foreign Affairs, today announced Canada’s intention to open a new embassy in Doha, Qatar, to further expand Canada-Qatar political and trade relations and to advance a common agenda in the broader Middle East and North Africa (BMENA) region.
“Qatar is a fast-growing economy with a stable fiscal framework,” said Minister Cannon. “Canada and Qatar share a commitment to development, human rights, democracy and security.”
As a member of the six-country Gulf Cooperation Council (GCC), Qatar is a priority market under the Government of Canada’s Global Commerce Strategy. In 2008, Canada’s merchandise exports to the GCC region topped $2.9 billion. In 2009, through to August, Canada’s merchandise exports exceeded $2.1 billion, 13.4% ahead of last year’s record pace. Read more here.
New Study to Provide Roadmap for Sustainable Freight Transportation
(CEC via Environmental Expert)
The Secretariat of the Commission for Environmental Cooperation (CEC) has embarked on a new study to evaluate opportunities for making freight transportation more sustainable in North America.
The transportation sector contributes about 26% of total greenhouse gas emissions in North America. At least a quarter of that share is related to transporting freight. Billions of tons of goods are moved every year in complex industrial and commercial supply chains that span the continent. Two-thirds of these goods are moved by truck and most of the rest by rail, giving the freight sector a significant environmental footprint.
“Although freight transportation doesn’t receive as much attention as cars and public transportation, it represents, along with building-related energy improvements, one of North America’s biggest opportunities for environmental progress,” according to Evan Lloyd, CEC’s Acting Executive Director. “While people often associate NAFTA freight with border issues, this study will take a more systemic perspective, identifying broader regional action to support sustainable freight transportation throughout the region.”
To assist the Secretariat in producing the Sustainable Freight Transportation in North America report, an advisory group of representatives from transportation industries, nongovernmental organizations, and government agencies will evaluate scenarios for improving the environmental performance of freight transportation by 2030 and recommend policy pathways to achieve those goals. Lloyd Axworthy, President and Vice Chancellor at the University of Winnipeg and a former Canadian Minister of Transportation will chair the advisory group. Read more here.
The Secretariat of the Commission for Environmental Cooperation (CEC) has embarked on a new study to evaluate opportunities for making freight transportation more sustainable in North America.
The transportation sector contributes about 26% of total greenhouse gas emissions in North America. At least a quarter of that share is related to transporting freight. Billions of tons of goods are moved every year in complex industrial and commercial supply chains that span the continent. Two-thirds of these goods are moved by truck and most of the rest by rail, giving the freight sector a significant environmental footprint.
“Although freight transportation doesn’t receive as much attention as cars and public transportation, it represents, along with building-related energy improvements, one of North America’s biggest opportunities for environmental progress,” according to Evan Lloyd, CEC’s Acting Executive Director. “While people often associate NAFTA freight with border issues, this study will take a more systemic perspective, identifying broader regional action to support sustainable freight transportation throughout the region.”
To assist the Secretariat in producing the Sustainable Freight Transportation in North America report, an advisory group of representatives from transportation industries, nongovernmental organizations, and government agencies will evaluate scenarios for improving the environmental performance of freight transportation by 2030 and recommend policy pathways to achieve those goals. Lloyd Axworthy, President and Vice Chancellor at the University of Winnipeg and a former Canadian Minister of Transportation will chair the advisory group. Read more here.
Radiation Detectors Fully Deployed
(Journal of Commerce Online – Thomas L. Gallagher)
DHS provides 100% scanning capability ahead of schedule
The Department of Homeland Security completed deployment of non-intrusive scanning equipment to detect radiation emanating from materials used in nuclear devices at all Northern border land ports of entry, DHS Secretary Janet Napolitano announced Thursday.
With the final installation October 29 at the Trout River, N.Y., port of entry, DHS passed a major security milestone two months ahead of schedule Secretary Napolitano said.
“Securing our Northern border while facilitating legitimate travel and trade requires a strategic combination of technology, personnel and infrastructure,” said Secretary Napolitano. “This technology enhances our capability to guard against terrorism and criminal threats while expediting border crossings for lawful trade and travel.” Read more here.
DHS provides 100% scanning capability ahead of schedule
The Department of Homeland Security completed deployment of non-intrusive scanning equipment to detect radiation emanating from materials used in nuclear devices at all Northern border land ports of entry, DHS Secretary Janet Napolitano announced Thursday.
With the final installation October 29 at the Trout River, N.Y., port of entry, DHS passed a major security milestone two months ahead of schedule Secretary Napolitano said.
“Securing our Northern border while facilitating legitimate travel and trade requires a strategic combination of technology, personnel and infrastructure,” said Secretary Napolitano. “This technology enhances our capability to guard against terrorism and criminal threats while expediting border crossings for lawful trade and travel.” Read more here.
Commerce Secretary Outlines Strategies for Increasing Exports
(World Trade Interactive)
In a November 4 speech to the National District Export Council Conference, Commerce Secretary Gary Locke outlined the following five strategies for increasing U.S. exports.
Boosting Trade Promotion Activities
“ Less than one percent of America’s 30 million companies export – a percentage that is significantly lower than all other developed countries,” Locke said. “And of U.S. companies that do export, 58% export to only one country.” The DOC will therefore work to get more companies engaged with its commercial service corps, which includes a trade promotion office staffed with some 1,500 people in 77 countries.
Business Visa Reform
“ The United States often makes it too difficult for foreign company executives to enter here to do business – a shortcoming that has had a tangible cost for American businesses by shutting out some of their best customers,” Locke asserted. While there has been “tentative progress” on improving this situation, Locke said he has created a “departmental task force that will keep national security paramount while working to further improve the business visa process.”
Export Controls
“ Our current export control system was designed in the 1950s,” Locke said, but today “our global economy is far larger and more integrated, and nations’ economic and security interests are more nuanced.” As a result, U.S. companies are being “shut out of promising markets and promising partnerships with foreign companies” because “the undeniable appeal of U.S. technology is often outweighed by the time and effort foreign companies must endure to obtain it.”
Read the complete article here.
In a November 4 speech to the National District Export Council Conference, Commerce Secretary Gary Locke outlined the following five strategies for increasing U.S. exports.
Boosting Trade Promotion Activities
“ Less than one percent of America’s 30 million companies export – a percentage that is significantly lower than all other developed countries,” Locke said. “And of U.S. companies that do export, 58% export to only one country.” The DOC will therefore work to get more companies engaged with its commercial service corps, which includes a trade promotion office staffed with some 1,500 people in 77 countries.
Business Visa Reform
“ The United States often makes it too difficult for foreign company executives to enter here to do business – a shortcoming that has had a tangible cost for American businesses by shutting out some of their best customers,” Locke asserted. While there has been “tentative progress” on improving this situation, Locke said he has created a “departmental task force that will keep national security paramount while working to further improve the business visa process.”
Export Controls
“ Our current export control system was designed in the 1950s,” Locke said, but today “our global economy is far larger and more integrated, and nations’ economic and security interests are more nuanced.” As a result, U.S. companies are being “shut out of promising markets and promising partnerships with foreign companies” because “the undeniable appeal of U.S. technology is often outweighed by the time and effort foreign companies must endure to obtain it.”
Read the complete article here.
China Launches Anti-Dumping, Anti-Subsidy Probe into U.S. Autos
(China Daily – Xinhua)
China’s Ministry of Commerce (MOC) said Friday it had launched anti-dumping, anti-subsidy investigations into U.S.-made off-road vehicles and sedans with engine displacements of 2.0 liters and above. The decision was made after the China Association of Automobile Manufacturers (CAAM) filed an application for the investigations, the MOC said in a statement posted on its website. CAAM, representing Chinese car-makers, said U.S. car makers had unfairly benefited from 31 government subsidy programs. The MOC decided to investigate into 24 of them.
The ministry said it held consultation with its U.S. counterpart on Tuesday and made the decision in accordance with China’s anti-dumping and anti-subsidy laws. The investigations would commonly be ended before November 6, 2010, but might be extended by another year if necessary, the MOC said. Read more here.
China’s Ministry of Commerce (MOC) said Friday it had launched anti-dumping, anti-subsidy investigations into U.S.-made off-road vehicles and sedans with engine displacements of 2.0 liters and above. The decision was made after the China Association of Automobile Manufacturers (CAAM) filed an application for the investigations, the MOC said in a statement posted on its website. CAAM, representing Chinese car-makers, said U.S. car makers had unfairly benefited from 31 government subsidy programs. The MOC decided to investigate into 24 of them.
The ministry said it held consultation with its U.S. counterpart on Tuesday and made the decision in accordance with China’s anti-dumping and anti-subsidy laws. The investigations would commonly be ended before November 6, 2010, but might be extended by another year if necessary, the MOC said. Read more here.
EU Finds Trade Barriers Rising Since Global Crisis
(New York Times – Stephen Castle)
European exporters have faced more than 220 new and restrictive trade measures since the start of the global economic crisis, but a “protectionist worst-case scenario has been avoided,” according to a report due to be published Friday.
The document from the European Union’s trade commissioner, Catherine Ashton, says that in the 12 months since October 2008, “roughly 223” measures had been introduced by the EU’s trading partners or were under consideration, with Russia and Argentina responsible for the most.
However, the report says there is no sign of the spiral of protectionism that some had feared when the worldwide downturn took hold last year. “Although, new trade-restrictive and distortive policy initiatives have been implemented since the start of the crisis,” the document says, “a widespread and systemic escalation of protectionism has been prevented.” Read more here.
European exporters have faced more than 220 new and restrictive trade measures since the start of the global economic crisis, but a “protectionist worst-case scenario has been avoided,” according to a report due to be published Friday.
The document from the European Union’s trade commissioner, Catherine Ashton, says that in the 12 months since October 2008, “roughly 223” measures had been introduced by the EU’s trading partners or were under consideration, with Russia and Argentina responsible for the most.
However, the report says there is no sign of the spiral of protectionism that some had feared when the worldwide downturn took hold last year. “Although, new trade-restrictive and distortive policy initiatives have been implemented since the start of the crisis,” the document says, “a widespread and systemic escalation of protectionism has been prevented.” Read more here.
Thursday, November 5, 2009
Canadian Exporters See Hope but Slow Recovery
(Reuters – Louise Egan)
Canadian manufacturers and exporters believe the worst of the recession is over but see a strong currency and financing difficulties hampering a full-fledged recovery, a survey showed on Thursday. Businesses reported a sharp improvement in the value of orders, compared with three months earlier, according to the Canadian Manufacturers and Exporters’ (CME) survey of 727 companies from October 13-27.
Only 38% said current orders have fallen in value, down from 50% in September. Thirty-five said orders are the same and 27% said they have increased – both slight improvements over the previous month. Read more here.
Canadian manufacturers and exporters believe the worst of the recession is over but see a strong currency and financing difficulties hampering a full-fledged recovery, a survey showed on Thursday. Businesses reported a sharp improvement in the value of orders, compared with three months earlier, according to the Canadian Manufacturers and Exporters’ (CME) survey of 727 companies from October 13-27.
Only 38% said current orders have fallen in value, down from 50% in September. Thirty-five said orders are the same and 27% said they have increased – both slight improvements over the previous month. Read more here.
Not Very Special
(Washington Times – James Morrison)
One of Canada’s best-known ambassadors in Washington offered a little unsolicited advice Wednesday to the new envoy from America’s northern neighbor, urging him to grab the spotlight, network like a lobbyist and learn all about the curious customs inside the Beltway.
Allan Gotlieb, ambassador to the United States from 1981 to 1989, told the new ambassador, Gary Doer, that nothing beats a good Rolodex, nobody pays attention to a shy diplomat and the 535 members of Congress are like 535 foreign ministers, each with a personal agenda and Canada low among their priorities.
“The threats are countless, the victories rare and the terrain treacherous for a foreign diplomat,” Mr. Gotlieb wrote in Canada’s Globe and Mail newspaper. “In Congress, ... Canada is just another special interest and not a very special one at that.”
Canada might be America’s largest supplier of foreign oil and its biggest trading partner, but Canada has no permanent friends or enemies in the House and Senate, he said. “Our allies on some issues are opponents on others,” Mr. Gotlieb wrote. “U.S. legislators are enfranchised by executive-like powers. Although Canada will usually remain far down on the list of their priorities, they are the leading source of most of our conflicts.” Read more here.
One of Canada’s best-known ambassadors in Washington offered a little unsolicited advice Wednesday to the new envoy from America’s northern neighbor, urging him to grab the spotlight, network like a lobbyist and learn all about the curious customs inside the Beltway.
Allan Gotlieb, ambassador to the United States from 1981 to 1989, told the new ambassador, Gary Doer, that nothing beats a good Rolodex, nobody pays attention to a shy diplomat and the 535 members of Congress are like 535 foreign ministers, each with a personal agenda and Canada low among their priorities.
“The threats are countless, the victories rare and the terrain treacherous for a foreign diplomat,” Mr. Gotlieb wrote in Canada’s Globe and Mail newspaper. “In Congress, ... Canada is just another special interest and not a very special one at that.”
Canada might be America’s largest supplier of foreign oil and its biggest trading partner, but Canada has no permanent friends or enemies in the House and Senate, he said. “Our allies on some issues are opponents on others,” Mr. Gotlieb wrote. “U.S. legislators are enfranchised by executive-like powers. Although Canada will usually remain far down on the list of their priorities, they are the leading source of most of our conflicts.” Read more here.
Economy Sputtering Forward Bodes Well for Freight
(FleetOwner)
Increased manufacturing activity and more “re-balancing” of inventories are two of the latest signs that the U.S. economy is improving and that freight volumes should rise. Yet experts caution that trucking is not out of the woods yet.
“The manufacturing sector grew for the third consecutive month in October, and the rate of growth is the highest since April 2006,” said Norbert Ore, chairman of the Institute for Supply Management’s (ISM) manufacturing business survey committee. He added that ISM’s monthly purchasing managers’ index (PMI) rose to 55.7 in October, an increase of 3.1 percentage points from September, and that any value over 50 indicates growth.
“The jump in the index was driven by production and employment, with both registering significant gain,” Ore said. “Production appears to be benefiting from the continuing strength in new orders, while the improvement in employment is due to some callbacks and opportunities for temporary workers. Overall, it appears that inventories are balanced and that manufacturing is in a sustainable recovery mode.”
Yet he cautioned that those numbers may be a bit too high, and will likely drop a few points next month in what he called “a leveling off” on the economy’s course toward recovery. “This is not a robust economy,” Ore stressed. Read more here.
Increased manufacturing activity and more “re-balancing” of inventories are two of the latest signs that the U.S. economy is improving and that freight volumes should rise. Yet experts caution that trucking is not out of the woods yet.
“The manufacturing sector grew for the third consecutive month in October, and the rate of growth is the highest since April 2006,” said Norbert Ore, chairman of the Institute for Supply Management’s (ISM) manufacturing business survey committee. He added that ISM’s monthly purchasing managers’ index (PMI) rose to 55.7 in October, an increase of 3.1 percentage points from September, and that any value over 50 indicates growth.
“The jump in the index was driven by production and employment, with both registering significant gain,” Ore said. “Production appears to be benefiting from the continuing strength in new orders, while the improvement in employment is due to some callbacks and opportunities for temporary workers. Overall, it appears that inventories are balanced and that manufacturing is in a sustainable recovery mode.”
Yet he cautioned that those numbers may be a bit too high, and will likely drop a few points next month in what he called “a leveling off” on the economy’s course toward recovery. “This is not a robust economy,” Ore stressed. Read more here.
Sourcing in Mexico
(Purchasing B2B News – Lisa Wichman)
Toshiba of Canada pegs the pros and cons
Does it make sense to source in Mexico? It depends on the product, and the shipper’s willingness to accept start-up challenges and logistics hurdles, according to a panel at the I.E.Canada conference in Toronto recently.
One of the speakers was John O’Reilly, director of customs and traffic with Toshiba of Canada Ltd. Three years ago the company shifted some production of electronic products from China to Mexico, and is pleased with the results. But the benefits didn’t come easily. “It wasn’t without growing pains to set up,” O’Reilly said. “We went in early summer, 2006 and it I think overall it probably took about six to eight months.”
Toshiba chose Mexico for a number of reasons. The shorter lead times are helping the company meet its carbon emission reduction targets, and they’re also benefiting customer service. “From placement of the [purchase order] to production to delivery to the customer, it’s less than two weeks,” he said. “We’ve found the quality of the product that’s being manufactured there is very high.”
There’s also the advantage of price protection. With shorter lead times, goods from Mexico aren’t as affected by volatile market prices; unlike shipments from Asia, which take weeks to arrive, he added. Read more here.
Toshiba of Canada pegs the pros and cons
Does it make sense to source in Mexico? It depends on the product, and the shipper’s willingness to accept start-up challenges and logistics hurdles, according to a panel at the I.E.Canada conference in Toronto recently.
One of the speakers was John O’Reilly, director of customs and traffic with Toshiba of Canada Ltd. Three years ago the company shifted some production of electronic products from China to Mexico, and is pleased with the results. But the benefits didn’t come easily. “It wasn’t without growing pains to set up,” O’Reilly said. “We went in early summer, 2006 and it I think overall it probably took about six to eight months.”
Toshiba chose Mexico for a number of reasons. The shorter lead times are helping the company meet its carbon emission reduction targets, and they’re also benefiting customer service. “From placement of the [purchase order] to production to delivery to the customer, it’s less than two weeks,” he said. “We’ve found the quality of the product that’s being manufactured there is very high.”
There’s also the advantage of price protection. With shorter lead times, goods from Mexico aren’t as affected by volatile market prices; unlike shipments from Asia, which take weeks to arrive, he added. Read more here.
Report Urges CBP Improvements in Detecting Biological, Chemical Threats in Cargo Containers
(World Trade Interactive)
A recent report from the Department of Homeland Security’s Office of Inspector General makes several recommendations on how U.S. Customs and Border Protection can improve its ability to detect biological and chemical threats in maritime cargo containers. Biological threats, such as weaponized anthrax, smallpox and foot-and-mouth disease, are disease-causing viruses or bacteria that can kill or cause harm to individuals or agricultural resources. Chemical threats, such as sarin and mustard gas, harm individuals or groups of people through exposure to toxic chemical substances.
The report states that CBP has taken steps to mitigate the threat of nuclear and radiological weapons in maritime cargo containers but could do more to mitigate the threats posed by biological and chemical weapons. CBP officials told OIG that new devices are currently being developed and tested that could help officers rapidly detect and identify biological and chemical threats during cargo inspections, but the report points out that the agency has not yet conducted a formal risk assessment to determine which pathways pose the highest risk of biological and chemical weapons entering the U.S. and whether deploying new resources in the maritime cargo environment will therefore provide the most benefit. OIG recommended that CBP conduct or commission such an assessment, but CBP expressed a belief that it will be well-positioned to identify the highest risk pathways as a result of its participation in two DHS initiatives that are expected to be completed by August 31, 2010. Read more here.
A recent report from the Department of Homeland Security’s Office of Inspector General makes several recommendations on how U.S. Customs and Border Protection can improve its ability to detect biological and chemical threats in maritime cargo containers. Biological threats, such as weaponized anthrax, smallpox and foot-and-mouth disease, are disease-causing viruses or bacteria that can kill or cause harm to individuals or agricultural resources. Chemical threats, such as sarin and mustard gas, harm individuals or groups of people through exposure to toxic chemical substances.
The report states that CBP has taken steps to mitigate the threat of nuclear and radiological weapons in maritime cargo containers but could do more to mitigate the threats posed by biological and chemical weapons. CBP officials told OIG that new devices are currently being developed and tested that could help officers rapidly detect and identify biological and chemical threats during cargo inspections, but the report points out that the agency has not yet conducted a formal risk assessment to determine which pathways pose the highest risk of biological and chemical weapons entering the U.S. and whether deploying new resources in the maritime cargo environment will therefore provide the most benefit. OIG recommended that CBP conduct or commission such an assessment, but CBP expressed a belief that it will be well-positioned to identify the highest risk pathways as a result of its participation in two DHS initiatives that are expected to be completed by August 31, 2010. Read more here.
Wednesday, November 4, 2009
How to Get Buy-In for Trade Compliance
(Materials Management & Distribution News – Deborah Aarts)
Get the right people on board and funding will be yours, experts say
Trade compliance errors cause significant headaches among international shippers, and they are almost completely preventable.
With the right training programs, staff can be taught to avoid the problems that interfere with successful international shipments. The trick, according to a panel at I.E.Canada’s recent annual conference, is convincing the C-suite to invest in that training.
It’s a tough job, but it’s not impossible, according to Farley Genge, Americas regional Customs leader for General Electric Canada Inc. He helped develop a comprehensive trade compliance instruction program that has dramatically reduced the company’s mistakes. The program – which includes an array of new standard operating procedures, risk assessment procedures, audits and metrics – has saved the company more than $10 million.
Before those savings were achieved, however, Genge had to convince his superiors to invest. To do that, he created a sales pitch.
He promised his bosses that the new program would reduce brokerage rates and increase the company’s price competitiveness. It would help the company proactively mitigate penalties and therefore thwart unwanted fines and protect its brand image. And, of course, it would improve cash flow – the costs of training would be more than offset by the savings generated by a compliant workforce. Read more here.
Get the right people on board and funding will be yours, experts say
Trade compliance errors cause significant headaches among international shippers, and they are almost completely preventable.
With the right training programs, staff can be taught to avoid the problems that interfere with successful international shipments. The trick, according to a panel at I.E.Canada’s recent annual conference, is convincing the C-suite to invest in that training.
It’s a tough job, but it’s not impossible, according to Farley Genge, Americas regional Customs leader for General Electric Canada Inc. He helped develop a comprehensive trade compliance instruction program that has dramatically reduced the company’s mistakes. The program – which includes an array of new standard operating procedures, risk assessment procedures, audits and metrics – has saved the company more than $10 million.
Before those savings were achieved, however, Genge had to convince his superiors to invest. To do that, he created a sales pitch.
He promised his bosses that the new program would reduce brokerage rates and increase the company’s price competitiveness. It would help the company proactively mitigate penalties and therefore thwart unwanted fines and protect its brand image. And, of course, it would improve cash flow – the costs of training would be more than offset by the savings generated by a compliant workforce. Read more here.
Coalition of Industry Groups Launches Web-Based National Product Recall Program
(The Canadian Press)
A coalition of Canadian industry associations has come together to launch a single standardized program for product recalls. The new recall program will make use of web-based technology created by GS1 Canada, the non-profit organization known for creating and managing bar codes used by businesses.
The new program will not replace or change the existing recall system driven by the Canadian Food Inspection Agency. But the group representing manufacturers, retailers and distributors says it will standardize the communication of recall information between Canadian businesses.
Currently, product recalls are the responsibility of the company involved, and the company works with the Canadian Food Inspection Agency and retailers to execute them. The coalition says this results in significant variation in processes and communication across industry.
The group says the new program will enhance consumer safety and lessen the administrative burden for businesses. Read more here.
A coalition of Canadian industry associations has come together to launch a single standardized program for product recalls. The new recall program will make use of web-based technology created by GS1 Canada, the non-profit organization known for creating and managing bar codes used by businesses.
The new program will not replace or change the existing recall system driven by the Canadian Food Inspection Agency. But the group representing manufacturers, retailers and distributors says it will standardize the communication of recall information between Canadian businesses.
Currently, product recalls are the responsibility of the company involved, and the company works with the Canadian Food Inspection Agency and retailers to execute them. The coalition says this results in significant variation in processes and communication across industry.
The group says the new program will enhance consumer safety and lessen the administrative burden for businesses. Read more here.
Minister Day Signs Agreement to Promote Trade Opportunities with Kuwait
(Minister of International Trade)
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today signed an agreement on economic cooperation with Ahmad Rashed Al Haroun, the Minister of Commerce and Industry for Kuwait, in Ottawa.
“Kuwait offers many opportunities for Canadian companies in the oil and gas sector, engineering and architectural services, agri-food and education,” said Minister Day. “In signing this new agreement with Kuwait, the Government of Canada is opening doors for Canadian business by establishing a framework by which both sides can work to increase trade and investment.”
The agreement’s objectives are:
• To enhance economic relations in the fields of trade and investment;
• To strengthen cooperation with a view to liberalizing trade and investment in accordance with national laws and international obligations;
• To facilitate the increased involvement of the private sector in trade and investment cooperation; and
• To promote a favourable environment and complementary activities to encourage private-sector investment.
Minister Al-Haroun is leading a trade mission to Canada. Among the business delegation are members of the Kuwait Chamber of Commerce and Industry, the Kuwait Banking Association and the Investment Companies Association.
Kuwait has one of the world’s largest sovereign wealth funds, with assets estimated at $200 billion. Canada’s two-way merchandise trade with Kuwait in 2008 was valued at $195 million, almost a 70% increase over the previous year.
Kuwait is a member of the Gulf Cooperation Council (GCC), a group of six nations that is a priority market for Canada. The GCC comprises the most prosperous countries in the Middle East, and it has a rapidly growing economy worth $1.1 trillion. Building on their immense success in the oil industry, the GCC countries are diversifying their economies and transforming the region into a world hub for business, finance and tourism.
Two-way merchandise trade between Canada and GCC nations reached $5.6 billion in 2008, a 37% increase from 2007.
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today signed an agreement on economic cooperation with Ahmad Rashed Al Haroun, the Minister of Commerce and Industry for Kuwait, in Ottawa.
“Kuwait offers many opportunities for Canadian companies in the oil and gas sector, engineering and architectural services, agri-food and education,” said Minister Day. “In signing this new agreement with Kuwait, the Government of Canada is opening doors for Canadian business by establishing a framework by which both sides can work to increase trade and investment.”
The agreement’s objectives are:
• To enhance economic relations in the fields of trade and investment;
• To strengthen cooperation with a view to liberalizing trade and investment in accordance with national laws and international obligations;
• To facilitate the increased involvement of the private sector in trade and investment cooperation; and
• To promote a favourable environment and complementary activities to encourage private-sector investment.
Minister Al-Haroun is leading a trade mission to Canada. Among the business delegation are members of the Kuwait Chamber of Commerce and Industry, the Kuwait Banking Association and the Investment Companies Association.
Kuwait has one of the world’s largest sovereign wealth funds, with assets estimated at $200 billion. Canada’s two-way merchandise trade with Kuwait in 2008 was valued at $195 million, almost a 70% increase over the previous year.
Kuwait is a member of the Gulf Cooperation Council (GCC), a group of six nations that is a priority market for Canada. The GCC comprises the most prosperous countries in the Middle East, and it has a rapidly growing economy worth $1.1 trillion. Building on their immense success in the oil industry, the GCC countries are diversifying their economies and transforming the region into a world hub for business, finance and tourism.
Two-way merchandise trade between Canada and GCC nations reached $5.6 billion in 2008, a 37% increase from 2007.
China Rejects Canadian Request on Canola Import Rule
(Bloomberg – Feiwen Rong)
China has rejected a Canadian request for a six-month delay in implementing a new rule requiring canola imports be certified free from blackleg disease, the China National Grain & Oils Information Center said.
The new rule is slated to become effective November 15, it said in an e-mailed statement, citing the Canola Council of Canada. Discussions between the two sides are continuing this week, it said. Canada is the world’s largest canola exporter.
The Canadian Food Inspection Agency has said it will not be able to issue a certificate certifying shipments are free of blackleg, as it is a common plant disease of canola in Canada, the council said in a statement dated November 2. Read more here.
China has rejected a Canadian request for a six-month delay in implementing a new rule requiring canola imports be certified free from blackleg disease, the China National Grain & Oils Information Center said.
The new rule is slated to become effective November 15, it said in an e-mailed statement, citing the Canola Council of Canada. Discussions between the two sides are continuing this week, it said. Canada is the world’s largest canola exporter.
The Canadian Food Inspection Agency has said it will not be able to issue a certificate certifying shipments are free of blackleg, as it is a common plant disease of canola in Canada, the council said in a statement dated November 2. Read more here.
Nations Call for China Trade Probe
(UK Press Association)
The U.S., the European Union and Mexico have called on the World Trade Organisation to probe Chinese curbs on raw material exports that they say break global trade rules.
In separate statements, U.S. and EU trade representatives said Chinese quotas on exports of key minerals such as bauxite, coke, magnesium, manganese, silicon metal and zinc and export charges on several raw materials distort competition and increase global prices.EU Trade Commissioner Catherine Ashton said these were “making conditions for our companies even more difficult in this economic climate.” Read more here.
The U.S., the European Union and Mexico have called on the World Trade Organisation to probe Chinese curbs on raw material exports that they say break global trade rules.
In separate statements, U.S. and EU trade representatives said Chinese quotas on exports of key minerals such as bauxite, coke, magnesium, manganese, silicon metal and zinc and export charges on several raw materials distort competition and increase global prices.EU Trade Commissioner Catherine Ashton said these were “making conditions for our companies even more difficult in this economic climate.” Read more here.
Tuesday, November 3, 2009
USDA Withdraws Increase in Fees for Quarantine and Inspection Services
(USDA APHIS)
The Department of Agriculture’s Animal and Plant Health Inspection Service has withdrawn an interim rule that would have imposed an approximately 10% increase in the fees charged for certain agricultural quarantine and inspection services provided in connection with certain commercial vessels, trucks, railroad cars and aircraft arriving at ports in the U.S. customs territory. These fees had been slated to take effect November 1, but APHIS has decided to withdraw them in order to explore other regulatory alternatives. As a result, the subject user fees will remain as follows.
• commercial vessels - $494
• commercial trucks - $5.25 for a single border crossing and $105 for a transponder
• commercial railroad cars - $7.75 per car
• commercial aircraft - $70.50 per aircraft
Read the complete release here.
The Department of Agriculture’s Animal and Plant Health Inspection Service has withdrawn an interim rule that would have imposed an approximately 10% increase in the fees charged for certain agricultural quarantine and inspection services provided in connection with certain commercial vessels, trucks, railroad cars and aircraft arriving at ports in the U.S. customs territory. These fees had been slated to take effect November 1, but APHIS has decided to withdraw them in order to explore other regulatory alternatives. As a result, the subject user fees will remain as follows.
• commercial vessels - $494
• commercial trucks - $5.25 for a single border crossing and $105 for a transponder
• commercial railroad cars - $7.75 per car
• commercial aircraft - $70.50 per aircraft
Read the complete release here.
Canadian Rail Chief Sees Freight Recovery; ‘Confidence Issue’
(NASDAQ – Ann Keeton, Dow Jones Newswires)
Canadian National Railway Co. (CNI) is seeing steady monthly increases in business of 3% to 4%, causing Chief Executive Hunter Harrison to turn bullish for a gradual recovery for rail freight hauling. Still, he said, “I think it’s a confidence issue,” he told Dow Jones Newswires in an interview, adding that fear of spending and investing could derail a recovery.
The head of the Montreal-based railroad company spoke Monday at a transportation symposium at Northwestern University. As railroads recover from a 20% downturn, they need to plan in the long term for adding capacity, he said.
Expansion from adding track likely won’t happen, because that’s too costly, he said. But railroads could become more efficient through mergers, Harrison said. As well, railroads should consider “open access” for some markets, where customers could decide with which freight hauler they want to work. That railroad would pay fees for access to a competitor’s track. Read more here.
Canadian National Railway Co. (CNI) is seeing steady monthly increases in business of 3% to 4%, causing Chief Executive Hunter Harrison to turn bullish for a gradual recovery for rail freight hauling. Still, he said, “I think it’s a confidence issue,” he told Dow Jones Newswires in an interview, adding that fear of spending and investing could derail a recovery.
The head of the Montreal-based railroad company spoke Monday at a transportation symposium at Northwestern University. As railroads recover from a 20% downturn, they need to plan in the long term for adding capacity, he said.
Expansion from adding track likely won’t happen, because that’s too costly, he said. But railroads could become more efficient through mergers, Harrison said. As well, railroads should consider “open access” for some markets, where customers could decide with which freight hauler they want to work. That railroad would pay fees for access to a competitor’s track. Read more here.
Canada’s Quiet Economic Strength
(Newsweek Blog – Daniel Gross)
In the past year, distance from the U.S. has proved a great insulator from economic pain. China and Australia, literally on the other side of the globe, are humming along, while Mexico is suffering from a decline in U.S. imports. But our NAFTA neighbor to the north, Canada, has emerged from the morass in better shape than any developed economy. Since its brief recession ended this summer, Canada has been creating jobs (31,000 in September). The Canadian dollar – the loonie – is soaring against our dollar. “There is a buzz in Canada right now, which is as far apart as you could ever be from what’s happening south of the border,” said David Rosenberg, chief economist of Toronto-based asset manager Gluskin Sheff.
While housing prices in Canada grew exuberant, lending standards never did. Canadian home buyers had to make down payments, funky interest-only loans were nowhere to be seen, and banks kept their leverage ratios in check. The result: mortgage default rates have been low, and no large Canadian bank has failed. The World Economic Forum ranks Canada’s as the world’s most sound banking system. And while exports of manufactured goods to the U.S. have been hit, Canada’s huge resource industries – oil, natural gas, agriculture, metals – have benefited from China’s continued growth. The exposure of Canada’s economy to the commodity sector is three times more intense than America’s. Add in robust capital inflows and a recovering housing market, and, strange as it seems to say, Canada is hot.
In the past year, distance from the U.S. has proved a great insulator from economic pain. China and Australia, literally on the other side of the globe, are humming along, while Mexico is suffering from a decline in U.S. imports. But our NAFTA neighbor to the north, Canada, has emerged from the morass in better shape than any developed economy. Since its brief recession ended this summer, Canada has been creating jobs (31,000 in September). The Canadian dollar – the loonie – is soaring against our dollar. “There is a buzz in Canada right now, which is as far apart as you could ever be from what’s happening south of the border,” said David Rosenberg, chief economist of Toronto-based asset manager Gluskin Sheff.
While housing prices in Canada grew exuberant, lending standards never did. Canadian home buyers had to make down payments, funky interest-only loans were nowhere to be seen, and banks kept their leverage ratios in check. The result: mortgage default rates have been low, and no large Canadian bank has failed. The World Economic Forum ranks Canada’s as the world’s most sound banking system. And while exports of manufactured goods to the U.S. have been hit, Canada’s huge resource industries – oil, natural gas, agriculture, metals – have benefited from China’s continued growth. The exposure of Canada’s economy to the commodity sector is three times more intense than America’s. Add in robust capital inflows and a recovering housing market, and, strange as it seems to say, Canada is hot.
Mushroom Importer Gets Prison for Evading Customs
(Fresh Plaza)
The president of a San Marcos mushroom-importing company has been sentenced to 13 months in prison after pleading guilty to evading customs duties on the mushrooms his firm imported from Japan.
Craig Robert Anderson, president of Golden Gourmet Mushrooms Inc., was also ordered Friday to pay a $6,000 fine and serve a year of home detention after his time in custody. The company was also found guilty and fined $460,000, and must pay restitution of $546,757 to U.S. Customs.
Anderson, 57, a Rancho Santa Fe resident, pleaded guilty in June to using dual invoices to avoid customs duty when his company imported fresh mushrooms from Japan.
Between May 2005 and August 2007, the company submitted invoices for lower prices to customs agents while using a higher price for business transactions, prosecutors said. The company also falsely labeled imported mushrooms as products of the United States, authorities said. Read more here.
The president of a San Marcos mushroom-importing company has been sentenced to 13 months in prison after pleading guilty to evading customs duties on the mushrooms his firm imported from Japan.
Craig Robert Anderson, president of Golden Gourmet Mushrooms Inc., was also ordered Friday to pay a $6,000 fine and serve a year of home detention after his time in custody. The company was also found guilty and fined $460,000, and must pay restitution of $546,757 to U.S. Customs.
Anderson, 57, a Rancho Santa Fe resident, pleaded guilty in June to using dual invoices to avoid customs duty when his company imported fresh mushrooms from Japan.
Between May 2005 and August 2007, the company submitted invoices for lower prices to customs agents while using a higher price for business transactions, prosecutors said. The company also falsely labeled imported mushrooms as products of the United States, authorities said. Read more here.
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