Monday, May 10, 2010

CN 10-009 – Elimination of Itinerant Carrier Codes

(CBSA)

The purpose of this customs notice is to advise that effective April 1, 2011, the Canada Border Services Agency (CBSA) will no longer accept generic itinerant carrier codes for any mode of transportation. With the implementation of eManifest (advance commercial information) in the highway mode in September 2010, the CBSA will begin phasing in new policies and procedures. Carrier codes will become a regulatory requirement for all carriers, thereby harmonizing carrier identification with the eManifest initiative.

The generic itinerant highway carrier code “77YY” will no longer be accepted for commercial cross-border activity. A unique carrier code, assigned by the CBSA, will become a part of the setup process for eManifest. To allow carriers and drivers currently using code “77YY” to obtain a carrier code, a transition period will begin on May 1, 2010, until the final elimination of code “77YY” on March 31, 2011. For further information on applying for a carrier code please access this link.

Please direct any questions regarding this notice to: Manager, Registration Unit, CBSA, Email: carrier-cargo@cbsa-asfc.gc.ca or Telephone: 1(866) 749-6623

CN 10-010 – Elimination of the Maximum Rates of Customs Duty on Certain Woollen Fabrics

(CBSA)

1. This notice announces the elimination of the maximum rates of customs duty on certain woollen fabrics in the Customs Tariff as of March 5, 2010.

2. Article 769 of Bill C-9, amends the Customs Tariff and states:Section XI in the List of Tariff Provisions set out in the schedule to the Act is amended by deleting Supplementary Note 1 and renumbering Supplementary Note 2 as Supplementary Note 1.

3. Supplementary Note 1 dealt with the maximum rate of customs duty under the Most-Favoured Nation Tariff and eligible Commonwealth countries on woollen fabrics of tariff item Nos. 5111.11.90, 5111.20.91, 5111.30.18, 5111.30.91, 5111.90.91, 5112.11.90, 5112.19.94, 5112.20.91. 5112.30.91, 5112.90.91 and 5803.00.29.

4. Bill C-9 is an Act to implement certain provisions of the budget tabled in Parliament on March 4, 2010 and other measures.

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

Primary Products Industries Sector Unit, Tariff Division
Post-Border Programs Directorate, Programs Branch
Canada Border Services Agency

Telephone: 613-948-1282 Fax: 613-952-3971

New FDA Product Codes in Industry 98 – Tobacco Products

(CBP)

FDA has added 9 new product codes at the request of their Center for Tobacco Products (CTP). If you are transmitting entry information for the product(s) described below, please begin using these new codes immediately.

Class B – Cigarettes
98B- -06 Cigarettes, Light, Mild, or Low, Unflavored
98B- -07 Cigarettes, Light, Mild, or Low, Flavored (Menthol)
98B- -08 Cigarettes, Light, Mild, or Low

Class C - Smokeless Tobacco
98C- -08 Chewing Tobacco, Light, Mild, or Low, Loose Leaf
98C- -09 Chewing Tobacco, Light, Mild, or Low, Plug
98C- -10 Chewing Tobacco, Light, Mild, or Low, Twist
98C- -11 Snuff, Light, Mild, or Low, Dry
98C- -12 Snuff, Light, Mild, or Low, Moist
98C- -13 Snus, Light, Mild, or Low

Please begin using these new codes immediately where appropriate to identify the product being submitted for entry, using currently existing conventions for building a product code for CTP regulated products.

Initiative Nets $143 Million in Cisco Goods

(DHS-ICE)

Operation Network Raider, a domestic and international enforcement initiative targeting the illegal distribution of counterfeit network hardware manufactured in China, has resulted in 30 felony convictions and more than 700 seizures of counterfeit Cisco network hardware and labels with an estimated retail value of more than $143 million.

The results of the operation were announced by U.S. Immigration and Customs Enforcement (ICE) Assistant Secretary John Morton, U.S. Customs and Border Protection (CBP) Commissioner Alan Bersin, Assistant Attorney General for the Criminal Division Lanny A. Breuer and Assistant FBI Cyber Division Director Gordon Snow.

In addition to the convictions and seizures, CBP reports a 75 percent decrease in seizures of counterfeit network hardware at U.S. borders from 2008 to 2009. Nine individuals are currently facing trial and another eight defendants are awaiting sentencing. Read more here.

Saturday, May 8, 2010

Canada’s eManifest is Coming! Will You Be Ready? – New Dates & Locations

(I.E.Canada & the Canadian Trucking Alliance)

Ottawa – May 25
London – May 27
Saskatoon – June 14
Calgary – June 15


In June 2010, the Canada Border Services Agency (CBSA) will begin testing with highway carriers in preparation for accepting electronic manifests containing cargo and conveyance data in September 2010 (pursuant to revised schedule announced by CBSA on March 11, 2010). Unprecedented cooperation amongst all parties in the supply chain will be critical to ensuring that the right information gets to the right place at the right time to avoid delays crossing the border.

I.E.Canada, the Canadian Trucking Alliance and provincial trucking associations are partnering in this series of hands on workshops. Led by Oryst Dydynsky of The Descartes Systems Group Inc., an industry leader and Co-Chair of I.E.Canada’s Customs and Legislation Committee, and Jason Proceviat of CBSA, each workshop will include an overview of the eManifest highway initiative and the new requirements, as well as an interactive walk-through exercise to highlight the process changes that will be required of carriers, freight forwarders, importers and their brokers.

Attendees will learn:

• step by step how the new process will work;
• changes carriers, freight forwarders, importers and brokers will need to make in order to prepare;
• CBSA’s expectations of each trade partner and how to ensure you will be ready to comply;
• available options for submitting information to CBSA; and
• CBSA’s client service strategy and plans for EDI transmission and Web Portal.

More information, and registration form can be found here.

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 May 7, 2010 is now available on our website here

Friday, May 7, 2010

Canada Minister Confident Of EU Trade Pact Before End 2011

(The Wall Street Journal)

Canada is optimistic that it can sign a free trade agreement with the European Union before the end-2011 target, International Trade Minister Peter Van Loan said Thursday.

The two sides have concluded three rounds of negotiations, with a fourth planned for July and a fifth in October. This will be followed by a “stock-taking exercise,” and then a political and drafting phase that had been expected to take a year, Van Loan said.

“That has been moving ahead of schedule,” he told reporters on a conference call from Spain at the conclusion of a five-day trip to Europe. “So, we’re optimistic we will be able to complete it before the end of 2011,” he said.

Van Loan said both sides “appear to have a very strong commitment, very strong interest in an agreement, and one that aims high.” He said he doesn’t foresee negotiations extending beyond the fifth round. He said the two sides have set aside “sticky” matters for discussion later, and the fourth and fifth rounds of negotiations will wrestle with the “really difficult issues.” Read more here.

Canadian Dollar Rallies After Record Jobs Data

(Reuters)

Canada’s dollar shot up one U.S. cent on Friday after a stronger-than-expected jobs report showed a record number of Canadians returned to work in April, adding pressure on the Bank of Canada to raise rates soon.

The currency firmed to a session high of C$1.0338 to the U.S. dollar, or 96.73 U.S. cents, from about C$1.0448, or 95.71 U.S. cents just before the data’s release.

Statistics Canada on Friday said the economy added 108,700 jobs in the month, the highest since Statscan began tracking the data in 1976 and exceeding even the most upbeat estimate in a Reuters poll which yielded a median forecast of 25,000 new jobs. Read more here.

No Silver Linings As Eruption Fall-Out Continues

(Procurement Leaders)

In procurement it’s always best to expect the unexpected but, even after the cataclysmic economic conditions experienced over the past two years, only the most ardent pessimist could have predicted a volcano in Iceland bringing the world to its knees.

The wholesale closure of European air space did more than disrupt an already ailing airline industry, it disrupted supply chains to an almost unprecedented extent.

Potentially disastrous it might have been, but what the latest crisis did was to offer procurement operations the opportunity to show that the painful lessons handed out on a regular basis throughout the credit crunch have been learnt and, more crucially, acted upon.

So, as Eyjafjallajokull continues to spew out ash and the dust steadfastly refuses to settle, do the supply chain risk pledges made by some of the biggest names in the corporate world amount to anything more than hot air?

“A couple of things have happened (as a result of the eruption),” Gary Lynch, global leader of Marsh’s global supply chain risk management practice, tells Procurement Leaders. “One of the major challenges that businesses face is to define their business continuity strategies and resilience in the supply chain — and a great many are beginning to realise that the way they approach the problem isn’t good enough.” Read more here.

Oil Slick Could Create Major Headache for Gulf Shipping

(The New York Times)

Managers of some of the nation’s busiest ports are studying the massive oil slick blanketing a large swath of the Gulf of Mexico that could cut off shipments of grain, coal, poultry, coffee, forest products and chemicals.

At the 4,000-acre port complex in Mobile -- the nation’s ninth-busiest port -- it was business as usual yesterday with ships coming and going and cranes moving cargo, but officials behind the scenes were nervously watching weather forecasts and making contingency plans if the slick moves closer.

“I’m scared to death of the long-term implications,” said Jimmy Lyons, executive director and CEO of the Alabama State Port Authority. “Nobody knows what this thing is going to do.” […]

“The worst-case scenario for the ports is whether the ships stop calling in the ports of New Orleans, Mobile, Gulfport,” said Capt. Michael Lorino, a pilot who guides ships through the Mississippi River’s Southwest Pass in Louisiana and president of the Associated Branch Pilots Association. “If the risk is coming through [the oil slick] and getting contaminated, it may change the minds of the vessels calling in the port area.” Read more here.

Looming August Deadline For Air Cargo Screening

(Lexology)

US law requires that, beginning this August, 100% of cargo loaded onto passenger planes must be screened. This screening requirement applies to foreign originating flights to the United States, as well as domestic flights within the United States. For domestic departure flights, starting in August, aircraft operators will not be permitted to load cargo that has not been screened. Many have worried that this requirement will result in screening bottlenecks at airports and delayed cargo.

In response to these concerns, the Transportation Security Administration created the Certified Cargo Screening Program (CCSP), which allows US businesses to become certified to screen cargo before it arrives at an airport.

TSA and its umbrella organization, the Department of Homeland Security, are encouraging more businesses to become certified screeners. For example, DHS will ‘fast-track’ certified screening facilities for Safety Act designation, which is a form of insurance against terrorism. TSA also has indicated a willingness to consider industry-wide security standards as the bases upon which businesses may become certified to screen cargo under the CCSP. Recognition of such industry standards can reduce the burdens for businesses seeking certification. Read more here.

EU Official Prods China to Act More Global

(Bloomberg/Business Week)

EU trade commissioner Karel De Gucht has called on China to respect its global responsibilities, saying “splendid isolation is no longer an option.”

Speaking at a conference in the European Economic and Social Committee in Brussels on Thursday (6 May), Mr De Gucht said China must match its newfound economic weight with greater participation in international governance forums such as the World Trade Organisation.

“With size comes responsibility,” said the Belgian politician who has recently returned from a visit to China where he met the country’s commerce minister, Chen Deming.

European businesses have increasingly expressed their frustration at a perceived slowdown in market-opening reforms in the Asian powerhouse economy, saying Beijing is succumbing to the protectionist calls of domestic producers. Read more here.

Related: European Union Launches First-Ever Anti-Subsidy Action Against China (International Law Office — Subscription required)

Thursday, May 6, 2010

Sufferance and Customs Bonded Warehouse Programs Evaluation Study

(CBSA)

The Canada Border Services Agency (CBSA) recently conducted an evaluation study of both the Sufferance and Customs Bonded Warehouse programs.

The purpose of this message is to inform you of the release of the CBSA-Licensed Warehouse Programs: Sufferance and Customs Bonded Warehouses Evaluation Study and to provide you with the electronic link to the report on the CBSA website here.

Any questions or concerns related to the Canada Border Services Agency (CBSA) Sufferance Warehouse Program should be directed to Dan.Vrecic@cbsa-asfc.gc.ca. Inquiries related to the CBSA Bonded Warehouse Program should be directed to Vincent.LoMonaco@cbsa-asfc.gc.ca.

Tories to Loosen Food-Labelling Rules

(Canwest News Service)

The Conservative government is set to water down its “Product of Canada” food-labelling rule after tightening it up just a year ago.

The standard, which came into effect in 2009, requires 98 per cent of ingredients in “Product of Canada” items to be Canadian. But not long after Prime Minister Stephen Harper declared that the move was vital to “better reflect the true origin of products,” the government is laying the groundwork for loosening the threshold.

Following complaints from many food processors and local farmers, the Canadian Food Inspection Agency is holding consultations that likely will result in exemptions to allow products made with some imported ingredients or produce to be marketed as a “Product of Canada” or labelled “Made in Canada.”

The exemptions, touted recently by Minister of State for Agriculture Jean-Pierre Blackburn, will focus on ingredients that are not readily available from Canadian sources, such as sugar and vinegar.

This means products such as a box of cookies made from imported sugar and Canadian flour, milk, eggs and butter could still be marketed as a product of Canada. Read more here.

Top Exporter Worry? Dollar Swings

(Globe and Mail)

Forget rising interest rates. Exchange-rate fluctuations are the top concern among Canadian exporters for the coming months, a survey showed Wednesday.

In the next half year, 58 per cent of exporters say volatile currency movements are the top barrier to growth, a HSBC global survey on trade confidence showed. It’s the first time the survey included responses from Canada.

The Canadian dollar has climbed 14 per cent in the past year, and hit parity last month. Concerns about European sovereign debt, however, have weighed on the loonie lately, which is now trading at a two-month low of 96.98 cents (U.S.).

“Fluctuations in exchange rates represent the biggest barrier to trade,” the report said. Canadian businesses are “cautiously optimistic” about trade growth and the global economy, while emerging markets such as Brazil and Indonesia tend to be the most confident. Read more here.

Related: Canadian Dollar Sinks Further On Euro Zone Crisis Fears (Reuters)

Wednesday, May 5, 2010

Ottawa Will Defend Dairy, Poultry in EU talks: Blackburn

(CTV.ca – The Canadian Press)

Canada’s minister of state for agriculture says Ottawa will defend the supply management system of dairy and poultry products in any free trade talks with the European Union.

Jean-Pierre Blackburn won’t be taking part in the next round of talks between Canada and its second largest trading partner – he’ll be in the Netherlands commemorating Canada’s contribution to that country’s liberation in the Second World War. Prime Minister Stephen Harper and Minister of International Trade Peter Van Loan will be among the federal politicians in Brussels for the Canada-EU summit on May 5. But Blackburn weighed-in on the talks and said the federal government remains committed to backing its dairy and poultry industries.

“There is a need for new markets for the food sector like any other sector,” he told The Canadian Press. “But at the same time we know some specific aspects have to be protected.” He said supply management allowed dairy and poultry industries to remain among the most profitable and stable in Canada. Read more here.

Port Calls for Commercial Approach in National Rail Freight Service Recommendations

(CanadaNewsWire)

In an effort to highlight the critical importance of rail service to the success of Canada’s Asia Pacific Gateway, Port Metro Vancouver is calling on Ottawa to implement a commercial approach to defining, measuring, monitoring and ensuring a high level of rail service. The Port proposed its recommendations on Friday in a detailed submission to the Transport Canada Rail Freight Service Review Panel.

“Optimal rail performance is a critical factor in achieving the Port’s goal to develop the most reliable and consistent supply chain in North America,” said Robin Silvester, President and CEO, Port Metro Vancouver. “We are confident that the Rail Freight Service Review will lead to meaningful and actionable recommendations for government’s consideration in its effort to maximize Canadian trade.”

Access the complete report here.

Decreasing Supply Aids U.S. Transport Recovery

(Transport Intelligence – Thomas Cullen)

The American transport economy is creeping back towards growth. The American Trucking Association (ATA) ‘For-Hire Truck Tonnage Index’ climbed 0.4% in March after falling slightly in February and the highest level since November 2008. The seasonally unadjusted figures were 19.1% higher than in February. The ATA’s Chief economist Mr Bob Costello suggested that “both the demand and supply situations are steadily improving” driven in great part by re-stocking. He added that “For most fleets, freight volumes feel better than reported tonnage because the supply situation, particularly in the truckload sector, is turning quickly.”

This theory received a degree of support from Werner Enterprises, whose first quarter figures reported revenues up 8%, to $425.1m, although the trucking element of this actually declined by 1%. Operating income margin also increased on a year-on-year basis from 3.6% to 5%. Werner’s management commented that, “(the) recent improvement in the freight market can be attributed to decreasing supply than rising demand. We have observed an increase in the size and quantity of carrier failures in recent months. Gradually improving demand is also helping, and we anticipate that steady improvement will continue as we progress throughout 2010”. Read more here.

Trans-Pacific Spot Rate Jumps Over $2,000

(Journal of Commerce Online – Peter T. Leach)

Push on May 1 may drive higher rates in contract market segment

The spot rate for shipping a 40-foot container from Hong Kong to Los Angeles jumped to $2,189 per FEU in the week ended May 3, according to data collected by Drewry Shipping Consultants.

The Drewry container rate benchmark for the trans-Pacific route was 10.8%, or $213 per FEU, higher than the average rate of $1,976 per FEU recorded in the week ended April 26 and over $2,000 per FEU for the first time since February, as tracked in the Journal of Commerce container rate benchmark over the past year. Read more here.

New Customs Controlled Area Regulations

(CBSA)

At the recent Border Commercial Consultative Committee (BCCC) meeting the Canada Border Services Agency committed to provide you with the attached documents.

As you may recall, the Agency is developing regulations for Customs Controlled Area (CCAs) with program implementation at Canada’s three largest airports in Vancouver, Toronto and Montreal and eventually in other modes.

At present, the regulatory development is near finalisation. Once the CCA Regulations are pre-published in the Canada Gazette Part I, BCCC members will be notified that they may provide written comments during the 30-day public comment period.

Please find attached the flowing two documents for your information:

(1) Policy Discussion Paper on the proposed CCA Regulations (in English and French); and

(2) fact sheet in “Questions and Answers” format (in English and French).

At this time, I would like to thank you on behalf of the Agency for your continued interest and support for this initiative. Should you have any questions or comments concerning the CCA regulatory proposal, please do not hesitate to contact me.

George Bowles
Director, Legislation and Programs Integration
Planning and Performance Management Directorate, Programs Branch
Canada Border Services Agency
191 Laurier Ave West • Ottawa, Ontario K1A 0L8
Email: hpp-sp.php-ps@cbsa-asfc.gc.ca

Tuesday, May 4, 2010

DHS Lists Upcoming Regulatory Actions Affecting Importers, Brokers, Carriers

(World Trade Interactive)

The Department of Homeland Security recently issued its semiannual regulatory agenda, which includes the following actions affecting international trade.

• U.S. Customs and Border Protection has pushed back to July a proposed rule that would amend its regulations concerning cargo information (manifest) discrepancy reporting requirements for all modes of commercial transportation (air, sea, rail and truck).

This rule would:

(a) set forth corresponding guidelines for the assessment of penalties or claims for liquidated damages for manifesting violations;

(b) require that any discrepancy from previously filed cargo information be reported to CBP by the responsible party immediately upon discovery and that such reports, with limited exceptions, be submitted in an electronic format;

(c) eliminate Customs Form 5931 and require that cargo declaration information be kept for a period of five years after conveyance arrival; and

(d) provide guidelines for the assessment of penalties for failing to reporting discrepancies.

• In June CBP plans to issue a proposed rule amending its regulations pertaining to the obligations of customs brokers to keep clients’ information confidential.

• A CBP final rule removing the regulatory provisions pertaining to the Land Border Carrier Initiative Program is slated for June.

• By November CBP intends to finalize interim regulations issued in 2008 concerning the importer security filing, or 10+2, rule.

• CBP anticipates publishing by August a final rule establishing another international registered traveler program called Global Entry, which would provide an expedited inspection process for pre-approved, pre-screened travelers. A pilot of Global Entry has been operating since June 6, 2008.

• A CBP final rule amending the requirements an individual must satisfy to take the written examination for an individual customs broker’s license has been delayed until June.

• The Transportation Security Administration is still planning to issue by October a supplemental proposed rule concerning its security programs for large aircraft, other aircraft operators and airport operators. TSA is considering alternatives to provisions in its 2008 proposed rule concerning (a) the weight threshold for aircraft subject to TSA regulation, (b) compliance oversight, (c) watch list matching of passengers, (d) prohibited items, (e) scope of the background check requirements and the procedures used to implement the requirement, and (f) other issues.

• TSA expects to finalize by November interim final regulations issued in September 2009 concerning the Certified Cargo Screening Program. The CCSP will certify shippers, manufacturers and other entities to screen air cargo intended for transport on a passenger aircraft and will be the primary means through which TSA will meet the statutory requirement that 100% of air cargo transported on passenger aircraft, operated by an air carrier or foreign air carrier in air transportation or intrastate air transportation, must be screened by August 2010.

Containers – “Should Terminals Weigh or Not Weigh”

(Mondaq – Linda Jacques, Lester Aldriddge LLP)

Container collapses can occur at sea as a result of a number of factors such as inadequate, deficient or improper securing, improper stowage configuration, excessive stability, the failure of the vessel to assess storm movement or to take action in deteriorating weather. This list is not comprehensive.

A secondary factor which is sometimes added to the melting pot as an issue is the declared weights of the containers by shippers which are loaded on board. […]

The debate over the obligations of carriers and terminal operators to weigh containers before loading and therefore to check the weights declared by shippers is to come under the spotlight in future at a conference taking place in London. Under the Rotterdam Rules it is intended that there be a strict and unlimited liability imposed on a shipper for any inaccurate information given, which results in the issuance of transport documents including information on the weight of goods, which are later found to be incorrect. This has no doubt encouraged a re-visit to some of the issues surrounding the weights declared by shippers. Read more here.

Department of Commerce Imposes AD/CV Duty Orders on Plastic Grocery and Shopping Bags from Indonesia, Taiwan, and Vietnam

(Business Wire)

The U.S. Department of Commerce today published antidumping duty orders on imports of plastic grocery and shopping bags (referred to as polyethylene retail carrier bags) from Indonesia, Taiwan, and Vietnam and a countervailing duty (anti-subsidy) order on plastic bags from Vietnam. Today’s actions follow last month’s affirmative determination by the U.S. International Trade Commission (“ITC”) that the U.S. industry is threatened with material injury by reason of the dumped and subsidized imports. The orders reflect the high levels of dumping and subsidization found by the Department in March.

The antidumping orders direct U.S. Customs to collect antidumping duty cash deposits from U.S. importers on all covered plastic bags from Indonesia, Taiwan, and Vietnam. The duty rates are 69.64 to 85.17 percent for imports from Indonesia, 36.54 to 95.81 percent for imports from Taiwan, and 52.30 to 76.11 percent for imports from Vietnam. Certain Vietnamese imports also will be subject to countervailing duty cash deposits of up to 52.56 percent. Thus, for example, if an importer enters subject bags from Vietnam, the importer could be required to pay combined antidumping and countervailing duty cash deposits of up to 128.67 percent of the customs value at the time of entry. Read more here.

Monday, May 3, 2010

Western Provinces Sign Economic Deal

(CBC News)

The premiers of B.C., Alberta and Saskatchewan have signed a deal designed to help the three provinces remove barriers to economic development and function more as a single economic zone. Under the New West Partnership agreement, which was signed Friday in Regina by B.C.’s Gordon Campbell, Alberta’s Ed Stelmach and Saskatchewan’s Brad Wall, professional qualifications and business licences obtained in one province will be recognized by each of the partners.

“We signed an agreement today that creates an amazing economic force: the New West, an economic region of 9 million people strong and $555 billion in GDP,” Wall said. “It is an economic region that is home to a number of industries the world is very interested in right now.”

The deal means, for example, a teacher who’s certified in Saskatchewan will also gain certification in the other two provinces.

The provinces also agree to promote the region together. The three premiers will start doing that next month when they travel together on a trade mission to Japan and China.

They also say they’ll try to use the provinces’ joint purchasing power to get better deals from suppliers for things like prescription drugs. That should save all of them money, Campbell said. “If we jointly procure equipment for our schools or we jointly procure textbooks or pharmaceuticals, there are substantial savings for British Columbians, Albertans and people from Saskatchewan,” Campbell said. Read more here.

Canadian Truck Rates, Surcharges Rising

(Journal of Commerce Online – William B. Cassidy)

Freight index shows Canadian shippers paying more to move freight

Truck rates paid by Canadian shippers increased in February, rising from a 1.6% drop in January, according to the Canadian General Freight Index. The increase in the index supports claims that transportation costs in North America are starting to rise as economic recovery gains traction both in Canada and the United States.

Overall, the cost of ground transportation rose about 1.6%, the CGFI said. Base truck rates in Canada rose 2.1% in February, excluding surcharges, the pricing index found, while fuel surcharges rose 1.6% from January. That put rates at essentially the same level as the last quarter of 2009, according to the index. Read more here.

FDA Seeks Industry Comments on Food Safety During Transport

(FoodNavigator-USA.com – Caroline Scott-Thomas)

The Food and Drug Administration (FDA) has released an advance notice of proposed rulemaking (ANPRM) on establishing guidance intended to reduce the risk of food contamination during transportation. The agency has asked the food industry to comment on rule proposals to govern the transportation of foods in the United States, as well as calling for comments from the transportation sector and consumer interest organizations. […]

FDA’s associate commissioner for food protection, Jeff Farrar said: “Our aim is to look at every component of the system to assess hazards, and to take science-based action where appropriate to maximize the safety of our food from farms all the way to consumers’ tables. Although contamination of food product during commercial transport is relatively infrequent, the potential harm can be widespread and serious.”

Read more here. The advance notice of proposed rulemaking – and instructions on how to comment – is available online here. The comment period is due to close on August 30, 2010.

Carbon Tariffs on Imports Risk Trade War: EU Study

(MoneyControl.com)

The European Union (EU) is considering border tariffs on imports from more polluting countries, but an initial assessment shows such levies could spark trade wars, draft reports show. Two European Commission reports do not explicitly reject a push for border tariffs by France and Italy, but say they would be fiendishly complex to calculate, create a huge administrative burden and risk trade conflict.

“Border measures risk clashing with the obligations under the World Trade Organisation (WTO),” said one study looking at the cost of increasing EU curbs on climate-warming emissions.

France and Italy are worried that their industries, which pay for EU permits to emit carbon dioxide, will lose out to cheaper imports from countries that impose no such charges. Read more here.

Saturday, May 1, 2010

News from GHY International

An updated list of recently published government memorandums, notices, regulations and decisions for the week ending April 30, 2010 is now available on our website here.

Canada Offers $550 Million Toward New Bridge

(Journal of Commerce Online – Courtney Tower)

Additional funding for Detroit River International Crossing

Canada offered the state of Michigan up to $550 million as a sweetener to get the legislature to give final approval to the building of a controversial new bridge between Detroit and Windsor, Ontario. The Canadian government is willing to increase its share of the cost of the proposed Detroit River International Crossing by that amount, Federal Transport Minister John Baird said Thursday.

The total cost of the project is expected to be $5.3 billion, by far the largest part on the Canadian side because it will cost more than $1 billion to build an extensive new approach road through Windsor. The approach would be partly underground to buffer noise for residents and would replace the present route, which follows city streets past 16 stoplights.

Michigan Governor Granholm went before the state House of Representatives Transportation Committee to read into the record a letter from Baird offering the additional $550 million to bankroll Michigan’s costs of the project.

Baird in Ottawa said Canada “is committed to build a new bridge crossing at the Windsor-Detroit border, and this funding commitment is another step we are taking to accelerate the start of its construction.” The “increased financial participation would be for project components in Michigan, and will be repaid to Canada over time,” the Canadian government said. Baird told reporters the repaying over time would be through tolls collected.

Read more here and here.

Dairy Industry Lobbies to Cut Milk from Soy Milk

(FoodNavigator-USA.com – Guy Montague-Jones)

A dairy industry group is lobbying the Food and Drug Administration (FDA) to banish the term ‘soy milk’ and stamp out any other use of dairy-specific terms to describe non-dairy products. The National Milk Producers Federation (NMPF) has sent a petition to the FDA urging the regulator to crack down on what it calls “the misappropriation of dairy terminology on imitation milk products.”

Since the NMPF first complained to the FDA about the practice a decade ago, the trade body argues that it is now more common than ever. In addition to the proliferation of terms like ‘soy milk’ and ‘soymilk’, the petition to the FDA contends that other dairy product names like cheese, yogurt and ice cream are being used by makers of non-dairy products.

The NMPF describes this as “false and misleading” labeling. Jerry Kozak, NMPF president and CEO, accuses the FDA of letting the issue slide so that the meaning of ‘milk’ has now been “watered down to the point where many products that use the term have never seen the inside of a barn.” Read more here.

FDA Urges Medical Industry to Prevent Cargo Thefts

(UPI)

The U.S. Food and Drug Administration sent a letter to medical firms Wednesday, expressing concern about cargo and warehouse thefts of FDA-regulated products. FDA Acting Assistant Commissioner for Regulatory Affairs Michael Chappell said the stolen products have included prescription and over-the counter medicines, medical devices, vaccines and infant formula.

In the letter Chappell asked the industry to review and strengthen security practices. “There have been several cases where patients experienced adverse reactions from stolen drugs, reactions that were most likely due to improper storage and handling,” Chappell wrote. “We do not want to see this increase in thefts continue.” Read more here.

China Vows Fairness for Foreign Companies

(Industry Week – The Associated Press)

China’s premier promised foreign companies equal treatment with Chinese rivals, in Beijing’s most high-profile effort yet to quell complaints it is trying to squeeze foreign competitors out of its markets.

“We will endeavor to create a level playing field for all market players, foreign and Chinese enterprises alike,” Premier Wen Jiabao said at a news conference with European Union President Jose Manuel Barroso.

China has faced repeated complaints in recent months that technology and other policy are being used to promote its companies at the expense of foreign rivals in violation of the spirit of its free-trading commitments.

It is unusual for such a senior Chinese leader to respond to complaints by foreign companies, and Wen’s remarks indicated the importance Beijing attaches to placating investors that are supplying technology and skills to develop its economy. Read more here.

Thursday, April 29, 2010

Report: Economy Won’t Return to Full Capacity Until 2014

(CTV.ca – The Canadian Press)

Canada’s recession was short – and in some regions brutish – but the aftermath will be almost as challenging, three new separate reports on the economy suggest. The reports from the country’s budget watchdog, Statistics Canada and one of the leading economic think tanks, the Conference Board, are remarkably similar in detailing what Canada lost during the recession and the problems it faces in recovery.

Putting it in economic terms, Statistics Canada concludes the country’s gross domestic product shrank 2.9% last year, slightly more than its original estimate. But not all regions experienced the recession in the same way. Newfoundland’s economy fell back a massive 10.2%, while two tiny economies, Prince Edward Island and the Yukon, did not contract at all. Among the bigger provinces, Ontario’s economy shrank 3.1% and Quebec’s by a relatively modest one per cent. […]

By 2014, a different set of challenges will be facing Canadians and their governments, says the Conference Board’s Pedro Antunes. In a far-reaching outlook, Antunes says 2014 is when the real impact of the retiring baby boom generation will start being felt in Canada’s labour market, economy and government budgets. Read more here.

Canada and Russia Seek to Strengthen Trade Ties

(Minister of International Trade)

The Honourable Peter Van Loan, Minister of International Trade, and the Honourable Gerry Ritz, Minister of Agriculture, met with Viktor Alekseyevich Zubkov, First Deputy Prime Minister of Russia, today [Wednesday] in Ottawa to discuss deepening the commercial relationship between Canada and Russia.

“Our countries have seen increasing trade, investment and cooperation in science and technology and in agriculture,” said Minister Van Loan. “As a leading economy, Canada offers first-rate business conditions: the lowest taxes on new business investment in the G7, the fastest economic growth in the G7 for 2010, 2011 and 2012, the world’s soundest banking system and a high quality of life.”

“Russia’s growth in agricultural trade is creating tremendous opportunities for our farmers,” said Minister Ritz. “Just as my last mission to Moscow in October led to a number of important wins both for Canadian producers and their Russian partners, meetings like today’s continue to help us strengthen our cooperation.”

Russia is an emerging market and remains a destination for Canadian companies specializing in technology, agriculture and infrastructure. The value of the stock of Canadian foreign direct investment in Russia was approximately $725 million at the end of 2009.

In 1993, Canada and Russia created the Canada-Russia Intergovernmental Economic Commission (IEC) to promote economic relations between the two countries. The commission holds regular meetings to address issues affecting bilateral trade, highlight success stories and encourage business development. Minister Van Loan and First Deputy Prime Minister Zubkov co-chair the commission.

The last full session of the Canada-Russia IEC took place in Moscow in June 2009. The next session is scheduled to take place in Canada in 2011.

USDA Releases Major Report on Agricultural Transportation

(CIFFA eBulletin)

The U.S. Department of Agriculture on Tuesday released to Congress a comprehensive report on agricultural transportation in the United States, the first ever of this magnitude.

The report, Study of Rural Transportation Issues, was mandated by the 2008 Farm Bill and covers the four major modes of transportation commonly used by agriculture in the United States-truck, rail, barge, and ocean vessel.

The report examines some of the major issues facing agricultural transportation, including: the dramatic effect of deregulation on the rail industry, a growing gap for funding the inland waterways and highway systems, availability of containers and ocean vessel capacity, and the infrastructure that may be needed to support a projected increase in bio-fuel transportation.

The report also discusses the current approach to transportation policy in the United States, in which each mode of transportation is often considered separately without an overarching view of the flow of freight through all the modes. Study of Rural Transportation Issues may be found on the Agricultural Marketing Service website here.

Wednesday, April 28, 2010

Canada Pledges Investment in Food Safety

(Food Safety News – Alexa Nemeth)

The Canadian Food Inspection Agency’s (CFIA’s) Food Safety Enhancement Program government/industry steering committee met last week to discuss the progress of various CFIA food safety initiatives.

In response to a 2008 Listeria outbreak among Maple Leaf Foods customers, the Canadian Government has committed nearly $500 million to improving the delivery of food safety programs by federal departments. The Weatherill Report, an independent investigation into the outbreak released in July 2009, provided the Canadian government with 57 recommendations to further enhance food safety oversight in Canada.

In September 2009, the Government committed to act on all 57 recommendations of the Weatherill Report, and at last week’s meeting pledged to spend approximately $223.4 million in three key areas: reducing food safety risks through prevention, enhancing surveillance and oversight, and improving emergency response. Read more here.

Big Stakes in Canada-Europe Trade Talks, but Little Attention

(The Canadian Press – Julian Beltrame)

It may well be the biggest and most important trade negotiation that most Canadians have never heard of.

While most of the news out of Europe of late has had to do with the Greek debt crisis and an ash-spewing volcano in Iceland, about 60 Canadian officials have been huddled in contentious trade talks with their European counterparts – at least video images of their counterparts – in what used to be Ottawa’s city hall by the Rideau.

There have been no demonstrators in front of the building denouncing a sell-off of Canadian sovereignty, and hardly a mention in the media or the House of Commons. But if you listen to the critics, what is at stake is in some ways more troubling than the Canada-U.S. free trade talks of the late 1980s – over which an election was fought – or the NAFTA deal that followed.

“What we want is the most ambitious trade agreement we’ve ever had,” federal Trade Minister Peter van Loan said in an interview with The Canadian Press. “We’re looking for something that is deeper and broader than even NAFTA, and this is with the world’s largest economy.”

The two sides are now in the third round of talks, with two more planned. If all goes well, Van Loan hopes to see ink on the Comprehensive Economic and Trade Agreement or CETA by late next year. Read more here.

Today’s Growth Is the Real Thing

(International Freighting Weekly – Damian Brett)

Statistics were misunderstood and volume increases not down to restocking

Current growth in cargo volumes is sustainable, and is down to a genuine increase in real growth and not inventory re-stocking, according to speakers at the Shippers’ Voice seminars at this week’s Multimodal exhibition.

President and CEO of Cargolux Ulrich Ogiermann and analysts Mike Garratt, director of MDS Transmodal, and Ben Hackett, director of Hackett Associates, all agreed that consumer demand had fuelled growth in trade and cargo volumes over the first four months of the year.

“Restocking has already taken place,” said Ogiermann. “From our point of view, it took place last year and drove up demand at the end of 2009, and maybe also in the first month of 2010. Now we are seeing a genuine increase of air cargo demand, because consumers are requesting high-value goods, such as mobile phones, ipads and so on. There is genuine demand coming back.” Read more here.

Revised: D22-1-1 Administrative Monetary Penalty System

(CBSA)

1. This memorandum supersedes Memorandum D22-1-1, Administrative Monetary Penalty System, dated June 16, 2003.

2. Paragraph 5 reflects the key changes as a result of the review of the AMPS Program that take effect April 14, 2010.

3. Other key changes in this memorandum are: a. updates to the references and links to Justice Canada’s Web site; b)updates to the links to the Master Penalty Document (MPD), the Short Version and Index; c) incorporating the definitions into the memorandum; d) update the sample Form E650, Notice of Penalty Assessment in Appendix A; and e) updates to contact information and terminology throughout to reflect changes in the CBSA’s organizational structure, including Appendix B.

Revised: D11-11-3 Advance Rulings for Tariff Classification

(CBSA)

This memorandum supersedes Memorandum D11-11-3, Advance Rulings for Tariff Classification, dated November 26, 2009. This memorandum has been revised to update contact information and to reflect the new organizational structure of the Canada Border Services Agency.

Tuesday, April 27, 2010

Canada Ups 2010 Growth View, Says Budget on Track

(Reuters – Jeffrey Hodgson)

The Canadian government raised its 2010 economic growth outlook on Monday, based on forecasts from private sector economists, bringing its view closer in line to that of the Bank of Canada. The average of 15 forecasts is for real growth in gross domestic product of 3.1 percent in 2010, up from 2.6 percent in the survey taken in December and used as the basis of the federal budget released in March. Growth for 2011 is seen at 3.1 percent, down from 3.2 percent in the December survey.

“Overall, the March survey results suggest that the near-term outlook has improved since the December survey was conducted,” the Department of Finance said. The government has used the average of private sector forecasts as the base for its fiscal planning since 1994, a method that aims to ensure independence in its estimates. Read more here.

Related: Exports Seen Growing 11 Percent in 2010 (Reuters)

U.S. Says Protecting IP Rights a Top Trade Priority

(Reuters – Doug Palmer)

“Let’s be clear: IP (intellectual property) theft in overseas markets is a job killer, and it’s an export killer,” U.S. Trade Representative Ron Kirk said in a speech to mark World Intellectual Property Day. As the United States encourages companies to pour more money into the development of environmentally friendly green technologies, “we must remain vigilant that the investments that American inventors make are not undermined by lax enforcement of intellectual property rights,” Kirk said. Trade in counterfeit goods costs tens of billions of dollars to the United States alone.

A study done for the U.S. Chamber of Commerce estimated that industries including chemicals, petroleum, computer equipment, communications, semiconductors, autos, medical equipment and aerospace technologies which rely heavily on patents and other forms of intellectual property pay their workers about 60 percent more than non-IP-based industries. IP industries also account for about 60 percent of total U.S. exports, rising to $910 billion in 2007 from $665 billion in 2000, and about 65 percent of U.S. employment in sectors involved in trade, the NDP Consulting study found. Read more here.

Brazil will Impose Import Levies to Face “Cheap” US Dollar, Unless Accord is Reached

(MercoPress)

Brazil’s government may take additional steps to limit gains in the local currency (Real) should advanced economies favor policies that keep their currencies weak, Finance Minister Guido Mantega said. “We will take further measures if we don’t reach an agreement” Guido Mantega said in New York. Last year, Brazil implemented a tax on foreign purchases of stock and fixed-income investment in a bid to stem the currency’s advance.

Mantega said he was “worried” after last weekend’s International Monetary Fund (IMF) meetings in Washington, where officials from the US and other developed nations said they intend to keep their benchmark interest rates low. Reduced lending rates can weaken currencies by prompting investors to shift their money to countries where rates are higher.

“I told my colleagues we won’t just watch the deterioration of our situation,” Guido Mantega said. A stronger Real would put Brazilian exporters at a disadvantage by making their goods more expensive in dollar terms. After gaining over 30% last year, the best performance against the US dollar among the 16 most traded currencies tracked by Bloomberg, the Real has lost 0.1 percent in 2010. Read more here.

U.S. Seeks to Push Ahead With Trade Deal on Green Technologies

(Bloomberg BusinessWeek – Mark Drajem)

The U.S. is talking with Canada, the European Union and Australia about eliminating tariffs on solar, wind and related energy technologies to spur their use, U.S. Trade Representative Ron Kirk said today. Kirk said the U.S. is seeking an “early harvest” for an agreement on so-called green technologies, which means an environmental deal wouldn’t have to wait for completion of the Doha Round of World Trade Organization talks. Negotiations on environmental goods have taken place since 2008.

“We think it only makes sense to make the trade of those goods more open,” Kirk said at a Washington event on patent protections. “We think it is important enough” that it could move ahead on its own, he said. Read more here.

Debt Crisis Spreads Through Europe

(The Globe and Mail – Eric Reguly)

Investors are treating Portugal as the next Greece as the sovereign debt crisis spreads through the Mediterranean. Portuguese bonds slumped again Tuesday as bond holders took the view that the country’s credit quality is deteriorating, even though its deficit and debt ratios are not as dire as Greece’s. “Investors are looking for the next weak link in the euro zone,” Simon Ballard, credit analyst in London with RBC Dominion Securities, said in a phone interview. “That may be Portugal, though it’s a bad day for everyone in Club Med.”

Credit default swaps on Portuguese debt soared to as high as 380 basis points, up about 40 points from Monday, in early afternoon trading in Europe. That means it costs $380,000 (U.S.) to insure every $10-million of Portugal’s debt against default. Credit default swaps in other Mediterranean countries also rose. Italy, which has one of the world’s highest debt-to-GDP ratios, saw its credit default swaps widen by about 10 basis points, to 160 points.

“The contagion is definitely spreading and spreading quite rapidly to Portugal, Spain, Ireland and Italy,” Mehernosh Engineer, a credit strategist at BNP Paribas, said in a report published Tuesday. “The market has been in a show-me-the-money mode for well over three months and the lack of guidance is slowly and steadily sowing the seeds of a double-dip.” Most European stock indexes were down by 1 per cent or more on fears the debt crisis is spreading. The euro lost 0.68 per cent against the U.S. dollar. Read more here.

EU Expects Yuan to Gradually Appreciate

(Wall Street Journal – Andrew Batson)

European Union Trade Commissioner Karel De Gucht said he expects China to make gradual adjustments to its exchange rate over time, but doesn’t think that trade actions or other outside pressure will speed up the process. Mr. De Gucht met with Chinese Commerce Minister Chen Deming in Beijing Tuesday, and said he had argued that a change in China’s currency regime would be beneficial to both Europe and China. But Mr. De Gucht, who was meeting his Chinese counterpart for the first time since being named Europe’s trade envoy in February, didn’t hold out hopes for a quick resolution of an increasingly sensitive issue.

“I think we will have to wait some time. What I would expect is that you would see a gradual adjustment of the yuan,” he said. “I really think they are only going to do it provided it is beneficial to their own economy. I think they will have to come to the conclusion that it is – if not, all the problems we witnessed before the crisis will come back.”Read more here.

Monday, April 26, 2010

PMAC Accreditation Program Receives International Recognition

(Canadian Transportation & Logistics)

The Purchasing Management Association of Canada’s (PMAC) professional accreditation program has received recognition from the international purchasing body as meeting the highest global standard in supply chain education.

The International Federation of Purchasing and Supply Management (IFPSM), a union of 43 national supply chain associations, has awarded PMAC’s Strategic Supply Chain Management Leadership Program (SSCMLP) its Certificate of Competence. This affirms that the PMAC program, which leads to accreditation as a Certified Professional Purchaser (C.P.P.), reflects current practices, learning methodologies and assessments. Officials say it is the only program in Canada to achieve this distinction.

Read the complete PMAC press release here.

Legislative Update: Product Safety Amendments Considered, New Chemicals Bill Introduced

(World Trade Interactive)

While congressional action continues to be scarce on higher-profile trade issues such as China’s currency, free trade agreements and trade preferences, lawmakers are moving forward in other areas like food and product safety that could have important effects on the trade community. Read more here.

Trade Can’t Be Fair for Everybody

(Wall Street Journal Blog – John W. Miller)

Trade deals involve giving up one interest for another more valuable.

Since 2007, the European Union and India have been working on an agreement that would cut most import tariffs. EU trade commissioner Karel De Gucht says it should be completed by the end of the year.

One of the EU’s biggest interests in all trade talks is pharmaceuticals. EU exports to non-European countries rose to $110.8 billion in 2009, making it the EU’s fourth-best export, after nuclear parts and machinery, electrical equipment and electronics, and vehicles. However, exports of EU pharmaceuticals to India, the world’s second-most populous country, were worth only $481.3 million last year. That’s partly because India is home to a multibillion-dollar pharmaceutical industry of its own, and because it’s much harder to renew drug patents in India. Read more here.

CBP, CPSC Sign Agreement to Promote Consumer Safety

(CBP)

U.S. Customs and Border Protection Commissioner Alan Bersin and U.S. Consumer Product Safety Commission Chairman Inez Tenenbaum today [April 26] signed a memorandum of understanding for CBP’s Import Safety Commercial Targeting and Analysis Center. The MOU will allow CPSC personnel to access CBP commercial automated systems for import safety risk assessments.

“This is an important first step in strengthening our ability to promote consumer well-being and safety,” said Commissioner Bersin. “With this memorandum of understanding, CBP and the Consumer Products Safety Commission will be able to further protect consumers against the importation of dangerous goods into the U.S.”

The MOU gives CPSC the capability to conduct import safety risk assessments and perform targeting work using CBP’s Automated Commercial System.

“This cooperation between federal partners is making U.S. consumers more safe. By identifying and checking consumer products at our ports, we can reduce the flow of dangerous products into our homes,” said CPSC Chairman Inez Tenenbaum.

The Import Safety CTAC reflects the three core principles announced by President Obama’s Food Safety Working Group in July 2009: prevention, surveillance and response. Created in March 2009, the Working Group was tasked with advising President Obama on how to upgrade the U.S. food safety system for the 21st Century.

CBP established the CTAC Oct. 1, 2009, as a fusion center for agencies to share targeting resources, analysis, and expertise to achieve the common mission of protecting U.S. citizens from unsafe imports. In addition to CBP, the government agencies represented at CTAC include the Consumer Product Safety Commission, the Food and Drug Administration, and the U.S. Department of Agriculture’s Food Safety Inspection Service.

Related: Lawmakers Consider Bill to Address Problems with Product Safety Law (World Trade Interactive)

Import, Export Consignments Remain Stuck at Ports [Pakistan]

(The News.com)

The government’s decision to observe two-day weekly holidays created confusion on Saturday as customs officials responsible for clearing import and export consignments at the Karachi Port remained absent from their duties.

Loading and unloading of goods from the vessels continued as usual, but freight forwarders could not take imported cargo out of the port, due to absence of customs officials.

“Like airports, the seaports operate round-the-week," a Karachi Port Trust (KPT) official said. “But the customs officials seem to have taken the announcement too seriously. They think it is a complete holiday.” Read more here.

Saturday, April 24, 2010

News from GHY International

An updated list of recently published government memorandums, notices, regulations and decisions for the week ending April 23, 2010 is now available on our website here.

Small Businesses Are Big International Traders

(Northern Ontario Business)

A new report by the Canadian Federation of Independent Business states small business owners make up a significant chunk of Canada’s exports. The report entitled: Trade Without Borders: A small business report card on the Canada/US border, involved a membership survey that produced 6,000 answers.

Corinne Pohlmann, CFIB’s vice-president of national affairs, said companies with less than 50 employees represent 73% of all businesses that export and account for nearly one third of the total value of Canadian exports.

Pohlmann added “despite the large contribution of small exporters, the SME sector is usually an afterthought when discussing trade and border issues. Given the important role that SMEs play in the economy, lawmakers on both sides of the border should take careful note of these findings.”

CFIB presented their findings at the Canadian Association of Importers and Exporters in Toronto, April 20. Canada Border Services Agency was also to present on Business Simplification and Service Improvements at the Canadian border.

The complete report is on the CFIB website here.

Canada Releases Draft Text of Anti-Counterfeiting Trade Agreement

(Minister of International Trade)

The Honourable Peter Van Loan, Minister of International Trade, today [April 22] announced that Canada has joined 36 other negotiating countries in releasing the draft consolidated text of the Anti-Counterfeiting Trade Agreement, following the eighth round of negotiations that took place from April 12 to 16, 2010, in Wellington, New Zealand.

“Canada has been a leader in calling for greater transparency throughout this process. I am pleased to see that our partners have agreed to release the draft text,” said Minister Van Loan. “We will continue to consult with a broad range of stakeholders to ensure this agreement reflects the best interests of Canadians.”

The Anti-Counterfeiting Trade Agreement aims to combat the criminal trade in counterfeit and pirated goods. The countries negotiating the agreement are Australia, the European Union and its member countries, Japan, Mexico, Morocco, New Zealand, the Republic of Korea, Singapore, Switzerland and the United States. The next round of negotiations will take place in Switzerland in June 2010.

A draft copy of the text can be found online here.

Minister Van Loan Promotes Deeper Canada-U.S. Ties

(Minister of International Trade)

The Honourable Peter Van Loan, Minister of International Trade, today wrapped up his first official visit to Washington, D.C., where he and U.S. Trade Representative Ron Kirk agreed to hold regular meetings to keep the Canada-U.S. trade relationship strong.

“The United States is Canada’s most valuable trading partner and it is important that we have meetings twice a year to seize the opportunities and address the challenges that lie ahead of us,” said Minister Van Loan. “Building on our already strong economic partnership with the United States helps create jobs, stimulates our economies and ensures our long-term competitiveness. I look forward to welcoming Ambassador Kirk to Canada this summer.”

In 2009, Canada-U.S. bilateral trade in goods and services was over $592.7 billion, with $1.6-billion worth of goods and services crossing the Canada-U.S. border every single day.

In addition, Minister Van Loan and Ambassador Kirk discussed a wide range of issues of mutual interest, including the importance of resisting protectionist tendencies and continuing to promote free and open trade, additional access to procurement markets on a permanent basis, the softwood lumber agreement and future multilateral trade agreement opportunities. The Minister emphasized that a lasting economic recovery should be the top priority for our partners worldwide. Read more here.

Obama Administration Details Proposed Export Control Reforms

(International Trade Law News)

Defense Secretary Robert Gates outlined yesterday the Obama administration’s long-awaited proposal to reform the U.S. export control system. While there have been many export control reform efforts in recent years, this one is very different because it is being driven by senior government officials as part of a broader effort to increase U.S. exports and related employment, one of the White House’s top priorities. The new proposal also responds to longstanding arguments that reform is needed to both more effectively limit the transfer of goods and technology to bad actors abroad as well as improve the global competitiveness of U.S. companies.

The revised export control system outlined by Secretary Gates will be based on four key principles. Read more here.

China Slows Down the Global Supply Chain

(Industry Week – David Blanchard)

China’s new import regulations could have an adverse effect on U.S. manufacturers

There’s a school of thought in some manufacturing circles that suggests that the loss of millions of manufacturing jobs over the past decade can be blamed largely, if not entirely, on China’s emergence as the world’s low-cost producer while flouting the global trade rules that other countries follow. China, for instance, “has consistently manipulated its currency to steal productive capacity from the United States,” observes Kevin Kearns, president of the U.S. Business and Industry Council. This currency manipulation has allowed China to “devastate America’s invaluable productive industries, addict the country to debt-fueled, bubble-created ‘growth’ and destabilize the global economy.” […]

In 2009, the Chinese government launched a series of anti-dumping investigations against the United States involving products such as automobiles, Adipic acid and chicken products, Slipek notes. “During the anti-dumping investigation process, a firm will face challenges importing into China, potentially resulting in detained shipments or demands for more information, thereby adding time and cost to supply chain cycles.” Read more here.

Thursday, April 22, 2010

Manufacturing Recovery Continues in Canada

(CBC News)

Canada’s goods makers helped push the economy forward in March, according to new figures released by Statistics Canada Thursday. The indicator index rose one% in March compared to February, mainly because of a rise of 3.2% in new orders for manufactured goods, said Statistics Canada.

“The composite leading index [matched] its average monthly increase since July 2009. However, the sources of growth continued to shift away from housing to other sectors of consumer demand and manufacturing,” the statistical agency said in a news release.

Monthly new orders for Canadian goods have risen by 25% since October 2009. Furniture and appliance sales, up 1.3%, also helped drive the index higher in the third month of 2010, a showing that represented the largest gain since June 2006, the agency said.

By contrast, Canada’s housing sector has begun to cool somewhat. Statistics Canada’s monthly measure for the industry inched higher by 0.2%. That showing was the smallest improvement since the economic recovery began in the spring of 2009. At its peak, Statistics Canada said, housing sector conditions improved by five per cent per month.

Summary statistics and a link to the data file are on the Statistics Canada website here.

China Starts Dumping Probes Into U.S. Optical Fiber, Chemical

(Bloomberg/Business Week)

China, the world’s biggest exporter, started two anti-dumping investigations today and levied tariffs on some nylon products, as it escalated trade spats with the U.S. and the European Union.

Probes were started on a type of optical fiber and caprolactam, a chemical compound, produced in the European Union and the U.S., the Ministry of Commerce said in two statements today. Dumping is the practice of selling goods at below costs.

China is swapping complaints with its two largest trading partners for goods ranging from footwear to tires to poultry, with the U.S. Commerce Ministry yesterday starting a probe into Chinese aluminum products. U.S. and European manufacturers have said the nation is undervaluing its currency, a policy that acts as a subsidy for its producers. Read more here.

Related: U.S. Sets Preliminary Penalties on Chinese Seamless Pipe (Xinhua)

U.S. Groups Slam Anti-Piracy Accord’s Draft Text

(Reuters/Washington Post)

U.S. digital rights advocates and a computer industry trade group on Wednesday criticized the newly released draft text of an international agreement to toughen penalties for copyright theft.

“Substantively, we remain concerned that this proposal lacks the balance that we find in U.S. copyright law, while attempting to export a regulatory regime that favors big media companies at the expense of consumers and innovators,” Gigi Sohn, president of Public Knowledge, a digital rights group, said in a statement.

The European Union’s executive branch and the U.S. Trade Representative’s office on Wednesday both posted texts of the proposed Anti-Counterfeiting Trade Agreement (ACTA) on their websites, years after groups first requested to view the language under negotiation. Read more here.

Wednesday, April 21, 2010

CBP Announces NEXUS Enrollment Center in Fort Frances, Ontario

(CBP)

U.S. Customs and Border Protection today announced that the NEXUS enrollment center in Fort Frances, Ontario Canada will be able to enroll Free and Secure Trade (FAST) applicants effective Monday, May 3.

The NEXUS enrollment center at 301 Scott Street in Fort Frances, Ontario Canada will be open to FAST applicants from Monday through Thursday 8:30 a.m. (CST) to 6:30 p.m. (CST).

The FAST program allows pre-screened, low-risk travelers to be processed with less delay by United States and Canadian officials at designated commercial highway lanes at high-volume border crossing locations. Approved applicants are issued a FAST card which they present to the CBP officer when they arrive at the port of entry and proceed to make their declaration.

The FAST cards have enhanced security features that allow U.S. and Canadian citizen cardholders to comply with the documentary requirements under the Western Hemisphere Travel Initiative (WHTI). To participate, both the United States and Canada must approve an individual’s application. Denial of an application by either country will keep an individual from participating in the FAST program.

The FAST program is a binational program and applicants need to complete an-online application form. Qualified applicants are required to visit a FAST enrollment center for an interview. Interviews can be scheduled on-line using the Global On-line enrollment system located on the FAST Web site here. Applicants can contact the International Falls port of entry at (218) 283-2541 if they have any question on the FAST or NEXUS programs.

The FAST program is available to commercial drivers crossing both the northern and southern borders. Currently, the program has more than 86,000 members.

Border to Run Smoother, Predicts Customs Czar’s Right Hand

(Today’s Trucking)

Within the next 15 years, many of your trucks should be able to zip through Canada-U.S. border crossings without stopping. That’s the prediction of one of America’s most influential customs officials, Thomas Winkowski, who bears the weighty title “Assistant Commissioner, Office of Field Operations, U.S. Customs and Border Protection (CBP).

Essentially, he’s second in command when it comes to customs and he was addressing a Customs-and-Trade-Compliance conference in Toronto when he made the prediction, in response to a question from the floor.

“In the next 10 to 15 years, the border’s going to be completely different,” he said. “It isn’t going to be a border where everything has to stop. It’s all going to be electronic.”

Winkowski said that new customs-clearance protocols, when they’re completely in place, will mean that any carrier crossing the border will have to be “a trusted partner” of CBP, as will the shippers and manufacturers and drivers. All data about all parties will be available online, so there will be no need for drivers to stop and identify themselves or explain their loads.

Of course in order to reach that goal, he said, the program must have buy-in from all the government agencies involved in all three countries, U.S., Canada, and Mexico. Read more here.

SIMA: Thermal Insulation Board…

(CBSA)

On April 6, 2010, pursuant to paragraph 41(1)(a) of the Special Import Measures Act, the President of the Canada Border Services Agency made a final determination of dumping respecting faced rigid cellular polyurethane-modified polyisocyanurate thermal insulation board originating in or exported from the United States of America.

For a PDF version of the Statement of Reasons, please click here.

CFIA: Second Phase of Changes to Import Notification Requirements

(CFIA)

A regarding the second phase of new import notification requirements, sent by the Imported and Manufactured Foods Division of the Canadian Food Inspection Agency is available here.

IMF Upwardly Revises Outlook for Global Economic Growth in 2010

(RTT News)

The global economy is expected to grow more than initially estimated in 2010, led by growth in emerging and developing economies, the International Monetary Fund said Wednesday, upwardly revising its outlook.

The global lender now sees world economic growth of 4.2% this year, better than the 3.9% expansion predicted in January. Growth is expected to nudge up to 4.3% next year. The global economy contracted by 0.6% in 2009, as world trade slumped and credit froze up.

“We find ourselves at an important new stage of the crisis,” said IMF Research Department Director Olivier Blanchard. “A global depression has been averted. The world economy is recovering, and recovering better than we had previously thought likely.” However, Blanchard added that achieving strong, sustained, and balanced growth would require more work, namely fiscal consolidation in advanced countries, exchange rate adjustments, and a rebalancing of demand across the world. Read more here.

Forwarders Report Cargo Backlogs Already Reducing

(International Freighting Weekly – Damian Brett & Will Waters)

Airlines moving shipments faster than expected

Airlines are clearing cargo backlogs in Europe more quickly than expected, although the logjam in Asia continues to mount, according to forwarders.

Ceva Logistics said it had obtained information from carriers that indicated it would take three to five days to clear export backlogs from Amsterdam, Frankfurt, Charles de Gaulle and London Heathrow, subject to destination and carrier.

Following the opening of some of the major European cargo airports yesterday, Rhenus Logistics expected it to take around five days to clear cargo backlogs at Amsterdam, but has since said it could be done by the weekend. “The backlog of freight is going faster than expected,” the company said. “This means a number of airlines are already accepting new bookings.” Read more here.

New European Portal: Customs Security Procedures

(CIFFA eBulletin)

The European Commission has launched the first phase of a new web portal to help businesses to understand and follow the customs procedures for importing goods into and exporting goods from the EU. Designed as a single point of access to relevant and practical information, the portal includes animated scenarios to explain each step of the import, export and transit procedures.

For further information visit the European Customs Information Portal.

Want a Smooth Transition? Plan Your Acquisition Carefully [U.S. Export Controls]

(Lexology – John R. Liebman et al, McKenna Long & Aldridge LLP)

The Directorate of Defense Trade Controls (“DDTC”) and the Bureau of Industry and Security (“BIS”) have no qualms about imposing successor liability and penalizing companies for past export violations committed prior to a merger or acquisition. BIS established this in the famous Sigma Aldrich case, while DDTC did the same in the 2003 Boeing/Hughes settlement – each of which resulted in millions of dollars in fines against successor entities. As a result, export compliance due diligence is not only mandatory, but it must be conducted well in advance of the purchase or sale decision (let alone the closing date of any deal). Acting early is essential because it may take many weeks – or even months – to fully understand the complexity and severity of any export control issues. Following this review, it may take another several months to firm up any loose ends with either DDTC or BIS (if necessary). This extended timeline to close export control issues often results in “unknowns” as of the closing date.

It is essential to note here that successor liability attaches to any acquisition, whether as a stock purchase, or the purchase of all or a substantial part of assets on a going-concern basis. Successor liability may also attach where assets are purchased at a bankruptcy trustee’s or receiver’s sale. Read more here.

Canada Begins Third Round of Economic and Trade Negotiations with European Union

(Foreign Affairs & International Trade Canada)

The Honourable Peter Van Loan, Minister of International Trade, today met with officials from Canada and the European Union in Ottawa, where a third round of negotiations toward a comprehensive economic and trade agreement are being held.

“An agreement of this magnitude with the European Union represents a huge opportunity for Canadians,” said Minister Van Loan. “A future agreement would give Canada preferential access to the wealthiest single market in the world.”

The Canada-European Union joint economic study, released in October 2008, shows that a stronger economic partnership could boost Canadian gross domestic product by $12 billion annually, and two-way trade with Europe could increase by $38 billion.

“At a time when Canadian business needs it most, our government is ensuring that Canadians can compete and succeed in a global marketplace,” said Minister Van Loan. “Our commitment to free trade is clear and this agreement will benefit many sectors of the Canadian economy, ensuring a lasting recovery and long-term economic growth.”

Video teleconferencing services will be used to assist in this week’s negotiations, as a volcanic ash cloud has caused air travel disruptions across Europe. The talks may be extended into the weekend.

Canada and the European Union have had successful rounds of negotiations in October 2009 and January 2010. Significant progress has been achieved in such areas as goods and services, government procurement, regulatory cooperation and dispute settlement. The fourth round of negotiations is scheduled to take place in Brussels during the second week of July 2010. Read more here.

Minister Addresses Canadian Association of Importers and Exporters’ 19th Annual Conference and Trade Show

(Minister of International Trade)

…We believe that when businesses succeed, Canadians succeed. Because when businesses succeed, they create jobs, they generate prosperity, and they help support the quality of life people rely on and enjoy here in Canada.

These uncertain global economic times have added some urgency to our government’s efforts to strengthen Canada’s economy. We are putting a strong focus on our Economic Action Plan – to protect incomes, create jobs, ease credit markets and help workers and communities get back on their feet.

Budget 2010 outlines our plan for returning to budgetary balance over the medium term, and well before any other G7 country. We’re helping our manufacturing sector by making Canada the first country in the G20 to become a tariff-free zone for machinery and equipment imports. We’re creating and protecting jobs, and investing in the skills and education of Canadians to build the jobs and industries of the future. And our Economic Action Plan is working to help ensure that, from coast to coast to coast, we are emerging from this economic downturn better than nearly every other industrialized country. But while we may be turning the corner, we are far from fully recovered.

And I’m sure you’d agree that you can’t really talk about a lasting recovery without talking about an aggressive and ambitious trade agenda. Canada is, after all, a trading nation. Trade is equivalent to about 60% of our gross domestic product. And nowhere has our commitment to free and open trade been more successful – or more instructive – than right here in North America. Read the complete address here.

Tuesday, April 20, 2010

U.S. Ambassador to Canada Speaking at GSCM Conference, June 15-17 Plattsburgh, NY

(State University of New York College at Plattsburgh)

David Jacobson, the U.S. Ambassador to Canada, will be speaking at the 2010 Global Supply Chain Management Conference, being held from June 15-17, 2010 on the Campus of SUNY Plattsburgh. This is an exciting addition to the list of presenters/speakers.

The conference website is here.

Customs Establishes ACE Business Office

(Journal of Commerce Online – R.G.Edmonson)

Agency, trade to develop structure for Automated Commercial Environment

Customs and Border Protection is setting up the ACE Business Office to work out the needs of the Automated Commercial Environment. Dan Baldwin, assistant commissioner for international trade, said the business office will work with the trade community to clearly define what they want ACE to do before turning the project over to the Customs information technology office to develop the actual software.

“We decided to create an office to give ACE more structure,” Baldwin said. “Then we can tell the IT people ‘This is what you need to build,’ so we can tell Congress ‘this is what we intend to do and how much money we’ll need to do it.’”

The effort stems from problems Customs has had in getting the $3 billion ACE fully operational. In 2001, Congress put ACE on a 10-year development cycle that runs out in fiscal 2011. Now Customs will have to return to Congress to receive further funding. Customs plans to fund ACE piece-by-piece. The new strategy is to ask Congress for enough money to complete specific projects. Making the business case is what the ACE Business Office will do, Baldwin said. Read more here.

Natural Resource Subsidies [eg Softwood Lumber]

(WTO – Matthew S. Yeo, Steptoe & Johnson LLP)

One important point of intersection between natural resources and the multilateral trading system concerns the treatment of natural resource subsidies under the WTO Agreement on Subsidies and Countervailing Measures. Many countries retain sovereign ownership of natural resources and allow commercial enterprises to exploit these resources under different types of compensation arrangements. The commodities that are thereby produced, or downstream products that are manufactured from those commodities, may become the target of anti-subsidy disciplines (such as countervailing duties) if there is an allegation that the government provided the natural resources on subsidized terms. What, then, does it mean for a government to provide a natural resource subsidy?

The resolution of this question has important implications for international trade in natural resources and products that are produced with natural resource inputs. Countries that pursue economic development and diversification through the exploitation of sovereign natural resources may find that their exports become subject to countervailing duties in other countries or to an action under Part III of the SCM Agreement. One of the longest-running trade disputes in history, the softwood lumber dispute between the United States and Canada, is fundamentally a dispute about natural resource pricing. In addition, the question of how countries should price natural resources to avoid anti-subsidy disciplines is closely related to how a country should price natural resources to promote conservation and sustainable yields. Read more here.

China Sets Foreign Trade Goal Over Next Decade

(Xinhua)

A research report of China’s foreign trade sector Sunday predicted the world’s largest exporter would more than double its foreign trade volume by 2020. It also called on China to improve the quality of foreign trade sector and to lower import tariffs to promote the nation’s trade balance.

The report, launched by the Ministry of Commerce (MOC) Sunday at the ongoing 107th China Import and Export Fair, the country’s largest trade fair held in the southern city of Guangzhou, predicted the China’s foreign trade volume would hit 5.3 trillion U.S. dollars by 2020.

Merchandise exports will top other countries and be 2.4 trillion U.S. dollars in 2020, 10.1% of the world total, while imports will reach 1.9 trillion U.S. dollars and rank second largest, accounting for 8.2% of the world total, according to the report, jointly compiled by researchers with think-tanks under the MOC, the Ministry of Finance, and the Chinese Academy of Social Sciences. The report was seen by analysts and officials as a “road map” which lays out a theoretical basis for the reforms in China’s trade policies and mechanisms over the next decade. Read more here.

Canada: Consultation on Cryptography Exemption to Licensing of Exports of Information Security Technology

(Mondaq – Blake, Cassels & Graydon LLP)

The Department of Foreign Affairs and International Trade is currently engaged in consultations relating to export controls of goods or technology employing cryptography. The government is seeking information on the way in which different countries are interpreting the scope of an export licence exemption for products sold at the retail level to the general public. The consultation is in regards to those that have obtained a ruling or have received other supplementary information from the U.S., European or other Wassenaar Arrangement participating states on the operation of the exemption in that foreign country. These consultations are ongoing, with submissions by interested parties due by April 30, 2010.

Canada restricts the export of certain goods and technology. Many such restrictions are found in Canada’s Export Control List. When a good or technology is captured by the Export Control List, the exporter must first obtain an export permit before shipping the good or technology abroad, although many restrictions do not apply to exports to the U.S. provided the goods or technology are used in the U.S. and not merely transferred to a third country through the U.S. Among other things, the government uses the Export Control List to bring into force commitments made by Canada as a party to various international agreements regulating the export of goods and technology. Read more here.

Related: Manufacturers Issue Recommendations for Long-Term Export Control Reforms (World Trade Interactive)

Canadian Government May Loosen ‘Product of Canada’ Rules

(FoodNavigator-USA.com – Caroline Scott-Thomas)

The Canadian government may loosen the labeling rules for food products to qualify as ‘Products of Canada’, to allow for ingredients that are difficult to source in Canada. Minister of State for Agriculture Jean-Pierre Blackburn said on Monday that the government was committed to concluding consultations with industry and consumers about the labeling of Canadian processed foods.

The present rule, put in place by Prime Minister Stephen Harper in 2008, only allows foods that contain at least 98% Canadian-produced ingredients to be labeled ‘Product of Canada’. The law was meant to close a loophole that allowed any product to be labeled ‘Product of Canada’ as long as at least 51% of the production cost was met in Canada. This meant that some, or indeed all, of the ingredients could be produced elsewhere.

But many food manufacturers have argued that the new rule unfairly limits the number of products that can claim to be Canadian. Read more here.

Monday, April 19, 2010

Ash Cloud Halts Northern European Air Cargo – No End in Sight

(Video: RT News • Story: Transport Intelligence)



The eruption of the Eyjafjallajökull volcano in Iceland has had an extraordinary effect on the air transport system of northern Europe. Since Thursday the air space of first Britain, Norway, the Netherlands and now Germany, Austria, Belgium, Denmark, Finland, France, Germany, Latvia, Luxembourg, Poland, Slovakia, the Czech Republic, Bulgaria, Sweden and Switzerland have been shut to all commercial traffic. The suspension of activity is set to continue into at least the beginning of the week. Further disruption seems likely as the volcano will certainly continue to erupt. […]

The obvious reaction by logistics planners will be to use other modes of transport. This is not as difficult as it might first appear. Air freight for traffic within Europe is of secondary importance.

Although the location of a number of very large airports, it is often just as quick to move goods within Europe by road. A good example of this is traffic between Britain and France. This route has access to good ferry services and roads. These can easily be stretched to more distant locations such as Spain or Germany. Read more here.

Related:

Shippers Face Steep Air Cargo Rate Hikes (JOC)
Air Freight Backlogs Build Across Asia (International Freighting Weekly)

CFIA : Changes to the Import Permit Application Process

(CFIA)

The new application form was designed to facilitate the application process for industry, allowing them to have multiple options when filling it out, and providing clear and concise instructions on how to submit a complete form to avoid delays.

While measures like these are taken to provide optimal customer service to our importers/clients, please keep in mind that our mandate is first and foremost safeguarding Canada’s plant resource base. The Canadian Food Inspection Agency (CFIA) delivers programs to ensure the protection of plant health, and it is our role to preserve the integrity of these programs.

In order to continue to operate within our current legislative framework (Plant Protection Act and Plant Protection Regulations), we ask that all applications be:

• signed by the applicant prior to submission. All incomplete applications will be returned to the applicant for revision.

• followed by an original hard copy via mail/courier within a reasonable time if initially submitted by fax or email.

This is in line with Subsection 10(2) of the Plant Protection Regulations: “Where a document referred to in subsection (1) is furnished in electronic form, an original hard copy of the document shall be furnished to the Minister or an inspector within a reasonable period after the document is furnished in electronic form.”

Please click here for a revised version of the application form.

The CFIA is working on having a full online application system using a secure method of receiving and sending confidential information (i.e., confidential business information, credit card numbers, etc). Until this system is fully developed, we must take all necessary measures to preserve the integrity of the permitting process.

If you have any questions or concerns, please contact:

Melissa Rodrigue
Import Permit Office • Phone: 613-221-4312

U.S. Rep Rejects Call to Exclude Dairy from Trade Deal

(Radio New Zealand)

U.S. Trade Representative Ron Kirk has rejected calls by American lawmakers for dairy to be excluded from a free trade deal that includes New Zealand. The legislators want Mr Kirk to exclude dairy from the eight-country Trans Pacific Partnership.

The call from the Congressional dairy farmers caucus followed a letter from 30 senators in March opposing dairy’s inclusion. It claims increased imports of New Zealand dairy products will depress already-low prices and devastate the U.S. industry.

But Mr Kirk says it is too early to exclude sectors from a possible deal and improving access to overseas markets as a result of the deal could be a boost for American farmers.

Meanwhile, New Zealand Prime Minister John Key has expressed unease at the inclusion of Canada in the Trans Pacific Partnership. Canada, which has a strong local dairy lobby, is not currently part of the talks but is believed to be pressing to join. Read more here.