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

• November 15, 2010 - Winnipeg - Delta Winnipeg Hotel
• November 16, 2010 - Calgary - Delta Calgary South Hotel
• November 17, 2010 - Vancouver - Blake, Cassels and Graydon LLP, 595 Burrand Street
AM Session - Incoterms® 2010: Both the New Changes and the Existing Terms

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

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

This hands-on workshop will cover topics such as: overview of the Incoterms rules, including the new changes; term-by-term analysis; useful definitions; and role in sales/purchasing contracts.
If you are sometimes presented with contracts that contain Incoterms® and you do not understand the full meaning of them, this is your chance to get up to speed on this important trade topic so you can minimize your company’s risks and obligations.

PM Session - NAFTA Audit

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

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

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

For agenda and registration please click here.

The Weekly Scope: Technical Bulletins from GHY at a Glance

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

Government to Propose Truck Fuel Efficiency Rules

(Ken Thomas — Associated Press via MSNBC)

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

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

9th Carrefour Europe 2010 – Montreal, October 26

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

October 26, 2010; 2:00 – 7:30 p.m., Palais des congrès de Montréal

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

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

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

EDC: Virtual Export Solutions Summit – November 2, 2010

(Export Development Canada)

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

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

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

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

Register here fore this FREE virtual event.

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

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

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

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

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

2. Mexican Cantaloupes

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

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

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

3. California Leafy Greens

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

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

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

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

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

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

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

Canada Issues New Guidance on Encryption Controls

(e-Alert – John Boscariol, McCarthy Tétrault)

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

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

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

Read the summary and link to earlier legal alerts here.

US Customs Tests Digital Imaging for International Trade

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

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

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

Agencies Work Together to Protect the Public from Unsafe Imports

(CBP)

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

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

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

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

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

(CFIA)

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

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

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

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

Heating Boilers Made in Canada, CBP Rules

(World Trade Interactive)

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

The Perplexing Path of Prices

(Export Development Canada – Peter G. Hall)

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

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

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

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

Read more or watch the video here.

‘Blood Minerals’ in the Supply Chain

(Supply Demand Chain Executive – Andrew K. Reese)

Compliance to the new financial reform bill will pose unique challenges

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

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

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

(Toronto Sun – Stefania Moretti, QMI Agency)

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

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

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

China Said to Widen Its Embargo of Minerals

(New York Times – Keith Bradsher)

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

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

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

Why Currencies Aren’t the Issue

(CBC News)

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

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

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

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

CFIA: Changes to Import Notification Requirements – Phase 3

(CFIA)

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

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

Import of Restricted Feeder Cattle from the U.S.

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

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

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

DFAIT – Order Amending the Automatic Firearms Country Control List

(CIFFA eBulletin)

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

UNCTADstat Online Database Unveiled on World Statistics Day, October 20

(UNCTAD)

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

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

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

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

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

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

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