Canada Strengthens Its Cargo Security with Japan, Singapore and South Korea

(CBSA)

The Canada Border Services Agency (CBSA) announced today that it has signed three Mutual Recognition Arrangements (MRAs) with customs organizations in Japan, Singapore and South Korea. The new arrangements will promote a smarter, more secure and efficient border.

The signing took place at the World Customs Organization in Brussels, Belgium. The MRAs confirm that Japan, Singapore and South Korea are using criteria similar to those used by Canada’s Partners in Protection (PIP) program when granting companies membership to their respective cross-border programs: Japan’s Authorized Economic Operator (AEO) program, Singapore’s Secure Trade Partnership program and South Korea’s AEO program.

“The signing of these three arrangements is an excellent opportunity for Canada to further develop its trade relationships with Japan, Singapore and South Korea,” said Stephen Rigby, President of the CBSA. “This will provide Canadian companies greater facilitation in these key foreign markets, while further ensuring the security of the supply chain.”

This international cooperation will allow customs agents to focus their efforts on unknown or high-risk areas – a demonstration of how Canada is moving forward to increase cargo security on an international scale while continuing to support economic prosperity.

Members of the CBSA’s Partners in Protection program benefit from having an enhanced reputation as low-risk companies and attract business partners looking for companies with high security standards. In addition, participation in PIP is a prerequisite for expedited cross-border clearance through their participation in Canada’s Free and Secure Trade program.

WCO Sees SAFE Cargo Standards Progress

(IFCBA)

Countries are making steady progress towards implementing the World Customs Organization’s international guidelines for supply chain security, said Gareth Lewis, a technical officer at the Brussels-based body, at a customs forum in Seattle early last month.

A survey commissioned by the WCO and conducted by U.K.-based Crown Agents found that 45 percent of 29 sample nations reviewed had nearly completed steps to implement the SAFE Framework’s information technology component for security and trade facilitation standards. Among the 29 countries are the top 10 exporters to the United States, which has led the charge since 9/11 to push security processes overseas prior to cargo departure rather than at time of import.

SAFE, which went into effect in 2005, is an effort by customs administrations to harmonize the collection and use of advance, electronic cargo information, implement consistent risk management techniques for identifying ocean containers with suspect histories, and use high-tech equipment to inspect high-risk boxes prior to export. Read more here.

WCO Recommended Tariff Schedule Changes Slated to Take Effect January 1, 2012

(World Trade Interactive)

The World Customs Organization has posted to its Web site a list of recommended amendments to the Harmonized System nomenclature that are scheduled to enter into force January 1, 2012. Affected goods include certain animals and animal products, foods and agricultural products (fruits, vegetables, grains, nuts, spices, etc.), chemical substances, wood products, textile products, machinery, furniture and video game consoles (see attached for the full list). These recommendations were adopted by the WCO Council in June and member countries now have six months to register any objections.

Read more here. Source document available here (PDF).

Express Carriers Want Freedom to File Import Declarations Worldwide

(American Shipper – Chris Gillis)

Express carriers voiced concern this week that the World Trade Organization and World Customs Organization appear to be “retreating” on a previous commitment to eliminate national mandates for companies to file import declarations to customs administration via customs brokers. The Brussels-based Global Express Association told the heads of the WTO and WCO in a December 2 letter that the use of customs brokers should not be a requirement for companies to interact with national customs administrations.

“Mandated use of the services of a favored professional group is a symptom of and contributor to political corruption,” warned John P. Simpson, director general of the association, which represents UPS, FedEx, DHL and TNT.

Express carriers, with their capacity as both transporter and importer, believe they are technologically and regulatory sophisticated enough to interact with customs administrations directly. “Customs brokers can provide highly valuable services and many importers choose to use the services of customs brokers even when they are free to submit their own declarations,” he added. “But customs brokers like all other professionals should rely on the market for their business, not government coercion. Governments should not be in the business of mandating use of private commercial services.” Read more here.

WCO – Percentage of National Revenue Represented by Customs Duties

(CIFFA eBulletin)

This WCO publication provides information about the share of national revenues represented by Customs duties. The survey is based on information obtained mainly from publications issued by other international organizations such as the IMF (International Monetary Fund) and the European Union, and the governments of some countries. The survey covers 142 countries, territories and economic unions using the Harmonized System for whom published data were available from the above referenced sources. The document can be viewed here (6 pages PDF).