Sunday, October 31, 2010

GHY Tradelines Has Moved!



This is a quick reminder to update your bookmarks as we will no longer be publishing updates to GHY Tradelines on the Blogger platform effective October 31, 2010.

Click on the above graphic to jump to our new location.


Note: The old site will remain in existence for archive purposes, but will no longer be supported otherwise.

The Weekly Scope: Technical Bulletins from GHY at a Glance

An updated list of recently published government memorandums, notices, regulations and decisions for the week ending October 29, 2010 is now available on our website here.

Warning on EU-Canada Trade Deal Misguided: Van Loan

(The Globe and Mail – Barrie McKenna)

A new study warning that free trade with Europe could cost Canada 28,000 jobs is a misguided ideological attack on open markets, Canadian Trade Minister Peter Van Mr. Van Loan Loan says.

The study by Canadian Auto Workers economist Jim Stanford for the Canadian Centre for Policy Alternatives concluded that a proposed Canada-Europe free trade deal would wipe out thousand of jobs in industries such as food processing, apparel making and the auto industry, while widening an already yawning trade deficit.

Mr. Van Loan said the CAW and CCPA are ideologically opposed to free trade, even though previous agreements clearly benefitted the Canadian auto industry and Canadian workers.

“The fact is they are ideologically opposed to an agreement that hasn’t even been completed yet,” Mr. Van Loan told reporters in Ottawa. “I have no difficulty dismissing that and focusing on the fact that this is a free trade deal that offers enormous upside potential for Canadian jobs.” Read more here.

Friday, October 29, 2010

CBSA: Letters to the Editor [Auditor General’s Report]

(CBSA)
Letter to the Editor: Ottawa Citizen; Vancouver Sun; National Post; The Province; Windsor Star concerning the Auditor General Annual Report, Chapter 8: Facilitating the Flow of Imported Commercial Goods

Please allow me to provide some additional context to the points raised in your article regarding the Auditor General’s findings on “Facilitating the Flow of Imported Commercial Goods.”

As the Auditor General stated, Canada imported over $440 billion in commercial goods in 2008. However, the $2 billion reported in your article is not substantiated in the Office of the Auditor General report and is a simplistic extrapolation from the data.

The Canada Border Services Agency (CBSA) does recognize that its current system is inadequate.

We are implementing a compliance strategy to increase assurances that duty and tax information provided by importers is accurate and complete. This will allow the Agency to identify specific causes of non-compliance so that effective corrective measures can be put in place.

Much like Canada’s income tax system, whereby Canadians file income tax information that is later assessed by the government, the CBSA has a vigorous program to review and verify duty and tax information that is declared by importers. We have also designed a detailed program to help improve how we monitor non-compliant importer activities.

The CBSA continues to strengthen and refine its processes in order to optimize conditions at the border while ensuring its operations support a strong Canadian economy.

Cathy Munroe
Vice-President, Programs Branch
Canada Border Services Agency

[The original article from the Vancouver Sun is here.]

CBP Commissioner Envisions Redefined Relationship with Trade Community

(World Trade Interactive/STR)

At the annual WESCCON conference in San Diego Oct. 23, U.S. Customs and Border Protection Commissioner Alan Bersin gave a major policy speech outlining his vision for the future of CBP and its relationship with the trade community.

Reassessing Trade Processes

Bersin said CBP is in the early phases of developing several concepts that would improve trade processing.

• risk-based account management, which would seek to raise compliance by focusing on areas of risk rather than volume and by expediting trade with trusted partners through improved targeting and risk segmentation

• simplified entry and financial processes that would expedite legitimate trade, provide for earlier release decisions and streamline the submission of information and payments

• establishing centers of expertise and excellence, a virtual concentration of CBP personnel who would leverage expertise and provide uniform guidance

• finding ways to leverage the investment made in the Automated Commercial Environment to ensure that it fully supports account management efforts

“Whatever form these initiatives ultimately take,” Bersin stated, “they signal a fundamental transformation of our relationship with the private sector” into one that “significantly enhances supply chain security, improves enforcement of trade laws, and expedites legitimate commerce.”

Customs Brokers


Bersin reassured customs brokers that “the changes CBP is proposing will certainly not be the demise” of their industry. Instead, these changes will help brokers help their clients do business more efficiently. For example, brokers will be “critical” to making account management work, especially for small and medium-sized businesses. “With management by account, instead of managing shipment by shipment, we will be managing the larger final transaction,” Bersin said. “Customs will still have to determine the admissibility of shipments, but the overall process will be simpler and more efficient.” CBP also hopes that brokers will serve as the agency’s “boots on the ground” in efforts to intercept counterfeit goods and ensure import safety. “We can’t do our job without you,” Bersin said, “and I am committed to rebuilding our bonds of trust with you.”

Read the complete article here.

Thursday, October 28, 2010

Customs Brokers Would Get More Flexibility to Share Client Info under CBP Proposal

(World Trade Interactive)

Customs brokers would have more flexibility to share client information with other entities under a new proposal from U.S. Customs and Border Protection.

This proposed rule would allow brokers, with written consent from the client, to share client information with affiliated entities related to the broker so that they may offer non-customs business services to the broker’s clients. Brokers would also be allowed to use a third-party service provider to perform photocopying and scanning of client records, provided that the service provider enters into a non-disclosure agreement requiring it to keep confidential the contents and information contained in any records pertaining to the broker’s client.

Finally, brokers would be able to use a third-party messenger service for transporting and/or delivering client documents on the broker’s behalf if those documents are sealed so that the messenger cannot view, alter or amend them.

CBP states that these proposed changes are intended to codify its previously published rulings and to update its regulations to reflect modern business practices while protecting the confidentiality of client (importer) information. Comments on this proposal are due no later than Dec. 27.

The Moment of Truth

(EDC – Peter G. Hall)
Chaotic movements in world economic output gave way to a new phase at mid-year. Suddenly, it seemed that everything got quiet. Far from an antidote to chaos, this is a disquieting quiet, a mid-rebound slowdown that doesn't normally occur. It’s a shock, and many wonder why it has happened.

But shocks have almost become the norm in recent times. Think of the growth cycle that ended in 2008 – it lasted about 16 years, roughly twice the length of a normal growth cycle. Then the economy took its biggest tumble in 60 years. That was followed by an aggressive, six-month rebound that began in the fall of 2009. Agreed, the magnitudes are shocking, but the movements aren't. For the most part, these are normal phases of the business cycle – this one was just super-sized. Read more or watch the video here.

Railway Carloadings Increase in August

(Statistics Canada)

The Canadian railway industry saw an increase in cargo loadings in August, as traffic originating on domestic railways as well as traffic received from American railways rose. Total rail freight traffic increased to 25.1 million metric tonnes in August, up 19.6% from the same month last year.

Freight loadings originating in Canada rose 18.1% from August 2009 to 22.6 million metric tonnes. The industry's core transportation systems, non-intermodal and intermodal, both contributed to rise.

Non-intermodal freight loadings, which are typically carried in bulk or loaded in box cars, rose 18.0% from August 2009 to 20.1 million metric tonnes. The commodity groups that saw the largest increases in tonnage were iron ores and concentrates, potash and iron and steel (primary or semi-finished). While the loadings of a majority of commodity groups rose in August, a number of groups registered declines. Those with the largest decreases were lumber, other cereal grains and wood pulp.

Intermodal freight loadings, which involves transporting freight through containers and trailers loaded onto flat cars, increased 18.6% from August 2009 to 2.4 million metric tonnes.

Rail freight traffic received from the United States rose to 2.5 million metric tonnes in August, up 34.7% from August 2009. The increase stemmed largely from non-intermodal freight loadings, which rose 37.3%.

From a geographic perspective, 53.6% of the freight traffic originating in Canada was loaded in the Western Division of Canada, with the remainder loaded in the Eastern Division. The Eastern and Western Divisions, for statistical purposes, are separated by an imaginary line running from Thunder Bay to Armstrong, Ontario. Freight loaded at Thunder Bay is included in the Western Division while loadings at Armstrong are reported in the Eastern Division.

Free-Trade Deal with EU Could Cost Thousands of Canadian Factory Jobs: CAW

(The Globe and Mail – Greg Keenan)

A free-trade agreement between Canada and the European Union would deal another blow to Canada’s already battered manufacturing sector, wiping out thousands of jobs in food processing, apparel making and the auto industry, according to an analysis of a potential agreement that will be released Wednesday.

Canada, which has run an annual trade deficit of $19-billion with the EU, on average, for the past 10 years, would lose 28,000 jobs – most of them in manufacturing – if tariffs were eliminated, says a study done by Canadian Auto Workers economist Jim Stanford for the Canadian Centre for Policy Alternatives (CCPA).

Instead of increasing imports of European goods and services, Canada should look to that continent to provide examples of “what is really required to build successful, innovative export industries, instead of continuing to naively hope that more free-trade agreements will solve all that ails our trade performance,” Mr. Stanford said. Read more here.

Wednesday, October 27, 2010

CBP Initiates the Center of Excellence and Expertise and Account Executive Pilots

(CBP)
US Customs and Border Protection will launch two pilots on November 1, 2010 to further strengthen the agency’s relationships with its trade and business partners.

The Center of Excellence and Expertise (CEE) pilot will develop comprehensive strategies to facilitate trade and manage risk within the pharmaceutical industry. Anne Maricich, the Assistant Port Director for Trade at the Los Angeles International Airport, will direct the pilot center.

The CEE will drive uniform implementation of policies, procedures, and technical guidance within the pharmaceutical sector. CEE’s core staff will manage risk throughout the pharmaceutical sector, by leveraging a matrix organization involving CBP personnel with pharmaceutical expertise. This initiative will also evaluate opportunities to collaborate with other government agencies on touch points involving pharmaceutical imports.

It is intended that the pharmaceutical industry and importers of pharmaceutical products will use the CEE to address systemic issues and will serve as a source of information to increase expertise throughout the agency.

The Account Executive (AE) pilot will test CBP’s ability to engage trusted partners in the electronics industry to facilitate trade while ensuring continued compliance with all import requirements. Successful engagement will enhance our ability to formalize an account-based approach to dealing with trusted (low-risk) trade partners, remove transactional hurdles and other barriers for trusted partners and enable CBP to focus its resources on higher-risk companies and shipments.

Leon Hayward, Assistant Director, Field Operations, for Trade and Cargo Security in New York City, will serve as the pilot Account Executive. The AE pilot will draw upon existing positions and areas of expertise resident in CBP today, and supplement that expertise with training related to general and industry-specific business practices, processes, and standards. The AE will build on CBP’s successful targeting skills and develop industry knowledge to allow strategic-level targeting and maintenance of high-compliance rates.

Tuesday, October 26, 2010

Customs Notice 10-018: Update Regarding the Strengthening of the Canada Border Services Agency's Procedure Respecting the Importation of Goods Contaminated With Soil

(CBSA)
1. This notice serves as a reminder that the Canada Border Services Agency (CBSA) will be strengthening its commercial importation process respecting goods contaminated with soil. As previously announced, February 1, 2010 marked the launch of a twelve-month transition period culminating in the full implementation and enforcement of the strengthened process in 2011. This period allows industry an opportunity to adjust their operations and ensure that goods arriving in Canada are clean and free of soil.

2. Goods contaminated with soil are not admissible into Canada. The Canadian Food Inspection Agency (CFIA) is responsible for establishing the policy regarding the importation of goods contaminated with soil. The CBSA is responsible for administering and enforcing that policy to the extent it applies at the border.

3. Beginning February 1, 2011, non-compliant goods, i.e. goods contaminated with soil, arriving at the Canadian border will be restricted to a CBSA-controlled area and may be cleaned on-site by a mobile wash facility approved by the CFIA, provided certain conditions can be met, e.g. there is no risk of soil dislodgement during transport, operational capacity exists, availability of a CFIA-approved mobile wash facility. If a CFIA-approved mobile wash facility is not available, or if other conditions listed above are not met, the contaminated goods will be refused entry into Canada under the authority of the Plant Protection Act and the Health of Animals Act. Note: Plants and/or plant products are not eligible for remedial action.

4. The costs associated with cleaning or removal from Canada will be paid for by the importer.

5. This strengthened approach is in line with the CBSA's existing commercial processes and procedures, as well as the CFIA's policy regarding the importation of foreign soil. It will further ensure that the CBSA maintains appropriate control over the contaminated goods, thereby preserving the safety and security of Canada and Canadians.

6. Under the current process, the CBSA may allow contaminated goods to be transported to either a stationary or mobile CFIA-approved treatment facility. However, treatment may only occur if certain conditions can be met, e.g. there is no risk of soil dislodgement during transport, operational capacity exists, availability of a CFIA-approved stationary or mobile wash facility. If the conditions listed above cannot be met, the shipment is refused entry into Canada and ordered removed at the importer's expense.

7. Inquiries and comments about this notice should be directed to:

Food, Plant and Animal Program, Programs Branch
Canada Border Services Agency
Telephone: 613-957-6868, Fax: 613-946-1520 E-mail: fpa-ava@cbsa-asfc.gc.ca

Canada Will Be `Relentless' in Pressuring China on Yuan After G-20 Meeting

(Bloomberg – Paul Badertscher)
Canadian policy makers said they will be “relentless” in keeping pressure on China and other economies with fixed exchange rates to allow their currencies to appreciate, following meetings with colleagues from the Group of 20 nations last weekend.

Finance Minister Jim Flaherty and central bank Governor Mark Carney said that while the G-20 made progress on promoting flexible currencies and other issues, they remain a long way from the ultimate goal. “We’re not satisfied with the degree of exchange rate flexibility, the moves on exchange rate flexibility, in key emerging markets,” Carney said in an interview following the meeting in Gyeongju, South Korea. Read more here.

Russia Most Corrupt Among Global Powers, Study Says; U.S. Ranking Also Worsens

(Washington Post – Will Englund)
Corruption in Russia has grown even more blatant over the past year, according to  a report issued Tuesday by Transparency International, and the country has fallen from 146th place to 154th on the organization's Corruption Perceptions Index. Russia tied with Tajikistan, Papua New Guinea and several African countries, and was ranked most corrupt among the G-20 nations.

For the first time since Transparency International began issuing its annual list 15 years ago, the United States dropped out of the top 20 least-corrupt nations, because of financial scandals it has endured. The United States fell from 19th place to 22nd, behind Chile. [Canada is 6th from top]

Denmark, New Zealand and Singapore topped the list as least corrupt, and Somalia was at the bottom, just below Afghanistan and Burma. Read more here.

EU Criticises Protectionism among Trading Partners

(Europolitics – Chiade O’Shea)

The European Union has expressed concerns that its trading partners are using too many restrictive commercial measures, posing a threat to a speedy recovery from the financial and economic crisis. Trade Commissioner Karel De Gucht on 25 October called for an end to the practice.

“With the economic recovery still fragile, the world’s major economies must remove the trade restrictive measures that put a break on growth,” De Gucht said as he published a new report detailing the extent of these tariff and non-tariff barriers. The report, which De Gucht says is an important tool to monitor rises in protectionism, lays out over 300 restrictive trade measures taken by the European Union’s 30 top trade partners in the two years since the crisis began in 2008. They included so-called ‘classical trade barriers’ like import bans and tariff increases, but also the now infamous ‘non-tariff barriers’ such internal incentives to “buy national”. Read the complete report here.

Faked in China: Inside the Pirates’ Web

(Reuters/News Center)
Anybody could tell right away that the Louis Vuitton shoulder bag was fake because it was delivered in a recycled box that once shipped batteries.
Warnings printed on the inside of the box read: “Danger Contains Sulfuric Acid” and “Poison - Causes Severe Burns” — not the sort of messages that would normally accompany a product from one of the world's most iconic luxury brands.
But it sure looked real. It was dark brown, sported a braided strap with brass fittings and the Louis Vuitton monogramme stamped all across the bag.
I had ordered the bag from a website called www.ericwhy.com for this special report, which explores the growing problem of counterfeit merchandise sold over the Internet.
Reuters wanted to trace the problem from a consumer in Washington D.C. to the shadowy producers based in Guangzhou China, where my colleague Melanie Lee found the illicit workshops and markets. Read more here.

Technology Outdates Trade Rules

(Andrew Mayeda — Postmedia News/Regina Leader-Post)
Old measures fail to keep pace with knowledge-based economy

Open the back of a BlackBerry sold in Canada, and chances are you’ll find three words that speak volumes about Canada’s most celebrated modern-day invention: “Made in Mexico.”

The print may be small, but the implications are significant for Canada’s trade balance. When a BlackBerry assembled in Mexico crosses the border into Canada, the transaction is booked as an export from Mexico to Canada, despite the fact the device was designed and developed by some of Canada’s finest brain power at Research In Motion’s headquarters in Waterloo, Ont.

It’s an example of the occasionally absurd outcomes produced by the traditional approach to trade — a system of measuring global commerce that is becoming more old-fashioned with each text-message that pulses through the world’s wireless networks. Read more here.

Customs Chief Wants Better Broker Relations

(CSCB – Journal of Commerce)

CBP Commissioner Alan Bersin concedes working partnership ‘polarized’ over demands

U.S. Customs and brokers traditionally worked together in what Bersin called village atmosphere to facilitate trade and to ensure import duties were paid and contraband did not enter the country. However, the September 11 terror attacks changed that as the agency took the lead in fighting the potential for terrorist exploitation of the supply chain, straining relations with trade facilitators as requirements and restrictions mounted.

“The village has been polarized,” Bersin told the annual Western Cargo Conference of the Pacific Coast Council of forwarders and brokers in San Diego. Read more here.



 

New Pest Rules for Containers on Horizon, Cash-Strapped Agency Tells WTO

(WTO)

Work is underway on standards for “minimizing pest movement by sea containers and conveyances in international trade”, and is at an earlier stage on similar standards for air containers and aircraft, the IPPC told the WTO’s Sanitary and Phytosanitary (SPS) Measures Committee.

Australia, the EU and US supported the IPPC’s call for extra funding as it faces a projected budget deficit of $1.2m in 2011 and urged delegations to raise the issue with relevant agencies in their countries.

Delegations are now close to agreeing on some actions on standards set by the private sector – mainly on defining private standards and sharing information – but continue to differ on actions beyond that. They also continue to differ on proposals on how to set up a system that would encourage members to make more use of mediation by the chairperson to resolve some of their differences.

And four new specific trade concerns, among the fewest in recent meetings, were raised as part of the committee’s main task of overseeing the SPS Agreement’s implementation, with the EU presenting a list of 14 concerns it considers to have been resolved. Read more details here.

Tough S. Korean Controls on Importing Canadian Beef

(RTT News)

South Korea's Agriculture Minister Yoo Jeong-bok said Sunday his country would impose stringent controls over beef imports from Canada even if it lifted ban on importing the item from that North American country. He told the Joong Ang daily that Seoul could not ignore the fact that Bovine Spongiform Encephalopathy (BSE), or mad-cow disease, broke out in that country (Canada) first, and his ministry was considering imposing tougher rules on importing Canadian beef than American beef.

He said discussions were on to formulate actions in case BSE broke out again, adding that his Ministry was reviewing several options, including expanding the scope of banned beef parts.
Read more here.

The Rare Earth Battle

(Joseph J. Dehner, Frost Brown Todd LLC)
An immediate response of China to the US announcement that it would launch a 301 inquiry aimed at the Chinese “green” technology sector is a rare earth counter-attack. In this reported highly protectionist move, China has temporarily halted exports to the US of rare earth materials. Used in making advanced technology products, rare earth materials are a variety of scarce minerals. China currently produces 95% of the world's trade in these important items, according to a New York Times article of October 19, 2010 - K Bradsher, “China is said to halt exports to US of some key minerals.” The report indicates that this is being done without any official announcement of such an embargo aimed at any particular country. Read more here.

New Agreements Between Canada and Switzerland

(Prime Minister’s Office)
One of Canada’s top-20 international air travel markets, Switzerland is an important aviation partner for Canada. In this context, Canada and Switzerland have successfully concluded negotiations toward an Open Skies-type air transportation agreement, which modernizes the 1975 agreement (last amended in 2002) to better reflect today’s market realities.

The agreement now contains expanded operating rights for airlines from Canada and Switzerland to operate air transportation between each other’s territory and third countries, in conjunction with scheduled passenger and/or all-cargo air services between the two countries. It also enables airlines to adjust their prices with greater flexibility to meet current market conditions.


Overall, the agreement provides more flexibility for airlines and airports to consider commercial opportunities, facilitates greater economic activity, strengthens ties with Switzerland and ultimately benefits passengers and shippers by allowing more flight options and routings. Read more here.

Calming Troubled Diplomatic Waters

(Halifax Chronicle-Herald – Lee-Anne Goodman, The Canadian Press)
Gary Doer has met hundreds of politicians in the U.S. capital in his first year as Canadian ambassador, educating the most powerful people in the most powerful nation on Earth about the importance of the Canada-U.S relationship. [...]

“When people say: ’You’ve left politics,’ after stepping down as premier, I say: ’Are you kidding me?’ There’s 435 of them down the street, and 30,000 lobbyists in this town,” he says with a rueful laugh. “The over-used term is it’s been the best of times and the worst of times ... it was a good year, public to public, Canadians and Americans are friends and neighbours, but there were obviously a lot of issues that I had to deal with. But I knew that coming in.” Read more here.

Understanding Incoterms® 2010 & NAFTA Audit Workshops – Western Canada, November

• November 15, 2010 - Winnipeg - Delta Winnipeg Hotel
• November 16, 2010 - Calgary - Delta Calgary South Hotel
• November 17, 2010 - Vancouver - Blake, Cassels and Graydon LLP, 595 Burrand Street

AM Session - Incoterms® 2010: Both the New Changes and the Existing Terms

Effective January 1, 2011, Incoterms® 2000 will be replaced by Incoterms® 2010.


Incoterms® are extensively used in international sales contracts as they are widely recognized and understood commercially. They determine critical issues such as who will pay for the carriage of the goods, who will be responsible for customs clearance, and the point at which risk passes between the parties.


This hands-on workshop will cover topics such as: overview of the Incoterms rules, including the new changes; term-by-term analysis; useful definitions; and role in sales/purchasing contracts.

If you are sometimes presented with contracts that contain Incoterms® and you do not understand the full meaning of them, this is your chance to get up to speed on this important trade topic so you can minimize your company’s risks and obligations.

PM Session - NAFTA Audit


Most importers and exporters are eager to take advantage of the duty relief granted under the North American Free Trade Agreement (NAFTA), but remain unaware of the risks and liabilities associated with claiming the NAFTA tariff treatment. Many still do not know that more than 50% of NAFTA Certificates of Origin either contain errors which render them invalid or are not supported with the necessary documentary evidence. With NAFTA origin audit activity on the rise, more importers are being shocked by assessments of financial penalties and/or retroactive duty and GST, while some Canadian manufacturers and exporters are losing their competitive advantage in the North American market.


In this down to earth, easy to understand session, we’ll cover the following:

• What importers and exporters should expect during a NAFTA audit conducted by either the Canada or U.S. Customs Agencies.
• Learn from the mistakes of others – Common errors made on Certificates / Statements of Origin, and during NAFTA audits.
• Sharing NAFTA strategies used by manufacturers, exporters and importers.
• Do you really know how your Customs Broker is handling this issue? Are you at greater risk than you thought?


For agenda and registration please click here.

Sunday, October 24, 2010

The Weekly Scope: Technical Bulletins from GHY at a Glance

An updated list of recently published government memorandums, notices, regulations and decisions for the week ending October 22, 2010 is now available on our website here.

Government to Propose Truck Fuel Efficiency Rules

(Ken Thomas — Associated Press via MSNBC)

Plan is expected to seek about a 20 percent reduction in greenhouse gas emissions and fuel consumption
Future tractor-trailers, school buses, delivery vans, garbage trucks and heavy-duty pickup trucks must do better at the pump under first-ever fuel efficiency rules coming from the Obama administration.

The Environmental Protection Agency and the Transportation Department are moving ahead with a proposal for medium- and heavy-duty trucks, beginning with those sold in the 2014 model year and into the 2018 model year. Read more here.

9th Carrefour Europe 2010 – Montreal, October 26

The largest gathering of the European Canadian business community in Montreal!

October 26, 2010; 2:00 Р7:30 p.m., Palais des congr̬s de Montr̩al

Eight European Chambers of Commerce, Consulates and Trade Commissions in Montreal are organizing the 9th Carrefour Europe 2010. You will have the opportunity to meet members and contacts of the Montreal European Chambers of Commerce and Trade Commissions in Montreal from Belgium, France, Germany, Hungary, Ireland, Italy, Poland, and Switzerland.

2 workshops will provide you with hands-on information on doing business with Europe:• Workshop I: Doing Business in Europe - How to Export and Invest in Europe.
• Workshop II: How to Prepare and Finance Your Exports to Europe?


For complete details consult: http://www.carrefour-europe.org or contact Ms. Anna-Lena Gruenagel at (514) 844-3051 or consulting.montreal@germanchamber.ca

Saturday, October 23, 2010

EDC: Virtual Export Solutions Summit – November 2, 2010

(Export Development Canada)

Why does the global economic environment seem so uncertain? Do you understand the risks and barriers to trade and how they can be managed? Do you know your intellectual property rights?

Learn the answers on November 2, 2010. Export Development Canada (EDC) will present Export Solutions Summit, a free virtual conference and exhibition intended to provide Canadian exporters with information, tips and resources that will help them succeed in offshore markets.

Tuesday, November 2, 2010 – 12:00 p.m. to 4:30 p.m. (EST)

Topics will include:

• Global Export Forecast (Fall)
• Seeing the Forest for the Trees – Case Study
• Intellectual Property When Entering New Markets

Register here
fore this FREE virtual event.

Friday, October 22, 2010

CFIA: New Requirements for Importing Fresh Fruit and Vegetables HS Codes Starting with 07 and 08

(CSCB – CFIA)1. Attestation of Canadian Food Inspection Agency (CFIA) federal produce licence number or Dispute Resolution Corporation (DRC) membership number

Under the Licensing and Arbitration Regulations, Canadian purchasers of fresh fruit and vegetables are required to be licensed with the CFIA and/or be a member of the DRC, if they are not exempt from the Regulations.

Importers submitting information for paper release will be required to enter the above information on the Confirmation of Sale (COS) form in box 22.

Importers transmitting information through Electronic Data Interchange (EDI) will be required to enter their federal produce licence number, their DRC membership number or indicate that they are exempt from the requirements of the Licensing and Arbitration Regulations in the “Registration Requirements” field. In those cases where the importer is a non-resident importer, the Canadian consignee’s federal produce licence or DRC membership number must be entered.

2. Mexican Cantaloupes

Currently, cantaloupes from Mexico may only be imported if the grower/packer has been certified by the Mexican government under the Mexican Cantaloupe Certification Program. Importers are required to enter the name of the certified grower/packer company as listed by SENASICA on the COS form in box 22.

Importers of cantaloupes from Mexico, transmitting information through EDI will be required to enter the name of the grower/packer company in the “Registration Requirements” field. If cantaloupes are imported from multiple certified grower/packers, all grower/packers must be identified in the “Registration Requirements” field.

A list of certified grower/packers can be obtained from SENASICA on the SENASICA website at http://www.senasica.gob.mx/?id=712, which is also accessible through the CFIA website http://www.inspection.gc.ca by following these links: “Food”, “Fresh fruits and Vegetables”, “Imports and Interprovincial Trade”, “Country Specific Requirements”, “Mexico - Cantaloupes”.

3. California Leafy Greens

Leafy greens from California may only be imported if the product has been handled by a signatory handler (certified member) of the California Leafy Green Products Handler Marketing Agreement.
Importers of leafy greens from California submitting information for paper release are required to enter the name of the signatory handler in box 22 of the COS.

Importers of Californian leafy greens transmitting information through EDI will be required to enter the name of the signatory handler (certified member) in the “Registration Requirements” field. If leafy greens are imported from multiple handlers, all handlers must be identified in the “Registration Requirements” field.

A list of signatory handlers (certified members) can be obtained from the California Leafy Green Marketing Agreement (LGMA) website, a link also provided through the CFIA website.
As a result of the these changes importers transmitting through EDI will no longer be required to present a hard copy of the COS form at time of entry to CBSA. A hard copy of the COS form will continue to be a requirement for transactions not transmitted through EDI.

The Automated Import Reference System (AIRS) will be updated to reflect these changes in import procedures.

Importers should be aware that, although a hard copy of the COS form will no longer be required at time of entry for EDI transmissions, licensees and DRC members are required to maintain documentation that sets out the terms and condi tions of their purchases. This information is a vital requirement for resolution of any disputes.

Implementation of the above changes will come into effect on December 1, 2010. Should you have any questions on the above requirements, please contact John Wood, A/Chief, Imports, Agrifood Division at john.wood@inspection.gc.ca or (204) 984-6186.

If you wish to confirm your CFIA federal produce licence number, please refer to the CFIA website http://www.inspection.gc.ca following the “Food” and “Fresh Fruit and Vegetable” links, or contact Manon Dicaire at manon.dicaire@inspection.gc.ca. Information in regard to a DRC membership number can be obtained from Dawn Hughes at dhughes@fvdrc.com or by consulting http://www.fvdrc.com.
On December 1, 2010, the CFIA federal produce licence number, or alternatively the Canadian DRC membership number, or a declaration of exemption will be required to be part of the submission of import documentation for shipments of fresh fruits and vegetables coming to Canada. This will improve the information available regarding the identity of the importers and traceability of product.

Canada Issues New Guidance on Encryption Controls

(e-Alert РJohn Boscariol, McCarthy T̩trault)

On October 19, 2010, the Export Controls Division of Foreign Affairs and International Trade Canada (ECD) released new information on its policies regarding the application for and granting of permits for the export or transfer of information security goods, software and technology. Canada imposes controls on transfers of these items to all countries other than the United States.

In response to significant concerns expressed in the Canadian business community regarding the impact of these controls on their competitive position in the international marketplace, ECD has been considering means of facilitating the permit process while still complying with Canada's international commitments in this area. These consultations are further described in our earlier legal alerts: Canadian Government Launches Consultations on Encryption Controls and Canadian Government Undertaking Industry Consultations on Cryptography Export Permit Process.

This week, ECD clarified and announced changes to its policy regarding the issuance of permits for cryptographic goods, software and technology. These new guidelines can be found at Export Permits for Cryptographic Items. Among other things, they specify that exporters must now have a comprehensive compliance plan in place regarding the export and transfer of controlled goods and technology.
Read the summary and link to earlier legal alerts here.

US Customs Tests Digital Imaging for International Trade

(Journal of Commerce Online – R.G.Edmonson)
Technology to reduce paper documents, streamline monitoring

Customs and Border Protection this week began testing digital imaging software in the International Trade Data System to deliver documents to agencies that participate in the ITDS program.

It is the first of a list of top-priority deliverables that agencies like the Food and Drug Administration and Consumer Product Safety Commission said they wanted incorporated into the ITDS system, which is under development as part of the Automated Commercial Environment. Although the agency made no formal announcement, Customs officials said it was a “big step forward” for ACE. Read more here.

Agencies Work Together to Protect the Public from Unsafe Imports

(CBP)

Participants included executives from the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Animal and Plant Health Inspection Service; the U.S. Consumer Product Safety Commission; the Environmental Protection Agency; the Food and Drug Administration; the Food Safety and Inspection Service; the National Highway Traffic Safety Administration; the National Marine Fisheries Service and Department of Homeland Security agencies U.S. Customs and Border Protection and Immigration and Customs Enforcement.

The agency leaders affirmed their commitment to import safety by agreeing to six key principles of import safety, providing a foundation for further collaboration and cooperation among the agencies charged with protecting American consumers from unsafe imports. The principles call for:

1. The creation of an interagency forum of senior representatives dedicated to import safety cooperation;
2. Continued commitment to information sharing across federal agencies involved in import safety concerns;
3. Enhanced efforts to help the private sector comply with import safety requirements;
4. Development of common systems to exchange information;
5. Strong, consistent enforcement measures to deter imports of unsafe products; and
6. The use of risk-management strategies to streamline lawful trade.

In addition to discussing the principles, participating agencies agreed to an interagency memorandum of understanding which will improve targeting and enforcement efforts at the Commercial Targeting and Analysis Center, a fusion center for agencies to share targeting resources, analysis and expertise to achieve the common mission of protecting American consumers from unsafe imports.
Agency heads and other senior leaders from 10 federal agencies met today [October 21] at the Interagency Import Safety Conference to focus on efforts to protect the health and safety of the American consumer and the environment from unsafe imports.

CFIA: Change of Inspection Facility for Imported Meat and Meat Products

(CFIA)

The Canadian Food Inspection Agency (CFIA) has a new contact to request a change to the import inspection facility for meat and meat products.

Prior to a meat or meat products shipment obtaining the CFIA release recommendation from the Import Service Centre (ISC), the broker/importer is able to select a different inspection facility.

The change will be made by the ISC upon receipt of the Request for Documentation Review form.
However, once a meat or meat product shipment from the USA receives the CFIA release recommendation, changes to the inspection facility may be allowed under exceptional circumstances only.

To request a change to the inspection facility, you will have to contact Kim Rodrigue of the Import Control Division in Ottawa at 613-773-773-5334, during normal business hours and with all relevant information. Your request will be evaluated and a response sent back.

Heating Boilers Made in Canada, CBP Rules

(World Trade Interactive)

U.S. Customs and Border Protection has issued a final determination concerning the country of origin of certain heating boilers that may be offered to the U.S. government under an undesignated government procurement contract. CBP issues country of origin advisory rulings and final determinations as to whether an article is or would be a product of a designated country or instrumentality for the purposes of granting waivers of certain “Buy American” restrictions in U.S. law or practice for products offered for sale to the U.S. government. Read more here.

The Perplexing Path of Prices

(Export Development Canada – Peter G. Hall)

It’s easy to get dizzy tracing the recent path of prices. General price movements have oscillated from inflation to disinflation and back again over the past two years. Earlier this year, strong growth rekindled inflation worries in many economies, prompting much discussion about the unwinding of loose monetary conditions, and resulting in tightening actions by various monetary authorities.

Well, it’s time to buckle up again. Price growth is tumbling in the world’s big industrial markets, and the language in key speeches has shifted from inflation back to disinflation – with occasional reference to the dreaded ‘D’ word. Is price softening here to stay, or is this just a short episode?

One or two months of weakness wouldn’t warrant all the worry. But the fact is, meagre monthly price increases have already persisted longer than common definitions of ‘short’. The U.S. consumer price index (CPI) has averaged 1% annualized growth for the past 10 months, while at the same time core inflation has averaged just 0.7%.

Meanwhile, Germany is averaging 1.1% CPI growth, but core prices have been dead flat. France has been extremely weak for six months, and Japan has seen outright declines in CPI in five of the past eight months. Canada is no exception, as both headline and core CPI have been very weak for six months. Among large nations, UK prices are the sole anomaly.

Read more or watch the video here.

‘Blood Minerals’ in the Supply Chain

(Supply Demand Chain Executive – Andrew K. Reese)

Compliance to the new financial reform bill will pose unique challenges

The 848-page financial reform bill signed into law in the U.S. on July 21 (the “Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010”) contains a six-page section, starting on page 838, that addresses the issue of “Conflict Minerals” coming into the supply chain from the Democratic Republic of the Congo (DRC). The goal of Section 1502 is to ensure that certain minerals coming from the DRC are “conflict-free” – that is, not fueling the ongoing violence that has left more than 5 million people dead, and not funding the armed parties that have employed forced labor, child slavery and sexual terror as standard practice to control the minerals trade.

The minerals covered in the law – coltan (columbite-tantalite, a source of tantalum), cassiterite (tin), wolframite (tungsten) and gold – are used extensively in a variety of industrial, consumer and electronics products. Tin is used as a solder on circuit boards. Tantalum capacitors are used widely in the technology supply chain. Tungsten is used as tungsten carbide in applications like turning tools and milling, but it’s also used in cell phones to make them vibrate. Gold is used in jewelry, of course, but also used for the gold plating, printed circuit boards, connectors, switches and other electronic components. Collectively the minerals are referred to as the “3Ts, plus gold.” Read more here.

‘Sensitive’ Round of Canada-EU Trade Talks Kick Off

(Toronto Sun – Stefania Moretti, QMI Agency)

Canada and European Union trade officials met in Ottawa Monday to kick off the fifth and perhaps toughest round of negotiations to date on a free trade accord that could give a $12 billion annual boost to the economy.

Since the Comprehensive Economic and Trade Agreement (CETA) was first outlined in May 2009, progress has been relatively easy and has included some of the more obvious concessions such as reduced duties between Canada and the EU.

“As this round begins, we’re coming face to face with some of the tougher questions,” International Trade Minister Peter Van Loan said. “I thought that as we entered this crucial phase, it was important to be here personally, to underscore Canada’s commitment to these negotiations.” Read more here.

China Said to Widen Its Embargo of Minerals

(New York Times – Keith Bradsher)

China, which has been blocking shipments of crucial minerals to Japan for the last month, has now quietly halted some shipments of those materials to the United States and Europe, three industry officials said this week.

The Chinese action, involving rare earth minerals that are crucial to manufacturing many advanced products, seems certain to further intensify already rising trade and currency tensions with the West. Until recently, China typically sought quick and quiet accommodations on trade issues. But the interruption in rare earth supplies is the latest sign from Beijing that Chinese leaders are willing to use their growing economic muscle.

“The embargo is expanding” beyond Japan, said one of the three rare earth industry officials, all of whom insisted on anonymity for fear of business retaliation by Chinese authorities. They said Chinese customs officials imposed the broader restrictions on Monday morning, hours after a top Chinese official summoned international news media Sunday night to denounce United States trade actions. Read more here.

Thursday, October 21, 2010

Why Currencies Aren’t the Issue

(CBC News)

As G20 finance ministers prepare for meetings in Seoul starting Friday, economists have been assessing the odds of a global currency war.

In a commentary Tuesday, European banking giant BNP Paribas took the threat seriously enough to try to reassure markets that countries would unite to avoid currency jockeying. “The chance of an agreement has increased as the International Monetary Fund uses its influence to convince G20 participants that an agreement is a must,” it said.

But Perry Sadorsky, associate economics professor at York University’s business school in Toronto, said the rhetoric about currency wars is a distraction from the real threat. “Competitive devaluations of national currencies are a reaction to a more pressing problem,” Sadorsky told CBC News.

And that is how to get the global trade in goods, services, savings and investment back in balance. Read more here.

CFIA: Changes to Import Notification Requirements – Phase 3

(CFIA)

This is a reminder to importers and brokers that phase 3 implementation of the changes to import notification requirements for commodities in the non-federally registered food sector will come into effect on November 08, 2010.

Annex 1 of the Notice to Importers and Brokers – Phase 3 on the CFIA website has been updated to include the OGD extension codes for the commodities relevant to this phase.

Import of Restricted Feeder Cattle from the U.S.

(CFIA)
Please be advised that the new policy Import of Restricted Feeder Cattle from the United States to a Terminal Feedlot, has been finalized and is now available as an option for importers. Details of the policy can be found here.

Also note that the existing feeder cattle policy Import of Restricted Feeder Cattle from the United States, remains in effect and also remains as an option for importers. Details of the policy can be found  here.

If there are any questions, please contact Dr. Amy Snow, Amy.Snow@inspection.gc.ca.

DFAIT – Order Amending the Automatic Firearms Country Control List

(CIFFA eBulletin)

This amendment seeks to expand the Automatic Firearms Country Control List (AFCCL) to include Albania and Croatia, the only North Atlantic Treaty Organization (NATO) member countries not currently listed. Currently there are 31 countries listed on the AFCCL. Full details published in the Canada Gazette are available here.  

Wednesday, October 20, 2010

UNCTADstat Online Database Unveiled on World Statistics Day, October 20

(UNCTAD)

UNCTADstat, a new free online database offering a single entry point to UNCTAD’s vast repository of statistics, is being launched today, World Statistics Day.

By harmonizing and incorporating all UNCTAD’s online statistical databases, UNCTADstat will serve as an integrated platform for extracting and analyzing data on development, trade, investment, and related issues.


The site will be continuously updated and enriched so that it offers not only long historical time series but also the most recent data. UNCTADstat will cover individual countries, regions, economic and trade groupings, and the world at large.

Among the topics covered are:

• International merchandise trade, including data breakdowns of exports and imports by partners and products;
• International trade in services;
• Economic trends;
• Foreign direct investment (FDI);
• External financial resources, including migrants’ remittances, development assistance, external debt, and international reserves;
• Commodity prices, updated monthly;
• Population and labour force; and
• Maritime transport.


Other topics, new tables, and indicators will be added over time.


UNCTADstat is intended to provide a statistical background against which users may address issues related to trade, investment, development, and economic growth. Among the topics of current concern for which it offers useful information are speculation in commodities markets; the global financial crisis with the severe decline of international trade that started to recover from the second quarter of 2009 to the second half of 2010; and the recent shifting in the balance of developing countries’ inward financial flows from Official Development Assistance (ODA) towards more foreign direct investment and workers’ remittances.


UNCTADstat is accessible here. Any questions can be addressed to statistics@unctad.org.