GHY Tradelines

An updated list of recently published government memorandums, notices, regulations and decisions for the week ending December 17, 2010 is now available on our website here.



(WXIA-TV / Associated Press)

A U.S. Customs agent working at Atlanta’s Hartsfield Jackson Airport is accused of using his badge to smuggle guns and drug money past airport security. [...]

Agents and prosecutors said Thursday that a tip last year led them to investigate the Customs agent, Devon Samuels of Stockbridge, GA, and that that investigation exposed a drug ring, resulting in the seizure of 700,000 ecstasy tablets, worth $2.8 Million, from a house in Chamblee, GA — the 9th largest ecstasy seizure in U.S. history, and the largest in 2010.

Read more here.

(Detroit Free Press)

A snowstorm that shut down a key Canadian highway and stopped truck traffic from entering Ontario from Port Huron underscored a concern that the state had strongly warned about: What happens if a key trade route between Michigan and Ontario is interrupted?

That happened Tuesday when authorities closed the Blue Water Bridge when Ontario roads, including the key Highway 402, were buried under drifts as high as 5 feet, stranding hundreds of truck drivers and other motorists in their vehicles. Traffic was rerouted to the Ambassador Bridge in Detroit, causing miles-long lines of trucks on I-75, I-96 and I-94. Read more here.

(Lexology – Peter A. Neumann et al, Greenberg Traurig LLP)

The Regulations of the People’s Republic of China on Guarantee Relating to Customs Affairs (the “Regulations”) are aimed at standardizing guarantees relating to customs affairs, enhancing the efficiency of customs clearance and safeguarding the supervision and administration operations of the Customs. The Regulations were adopted at the 124th executive meeting of the State Council on September 1, 2010, promulgated on September 14, 2010, and shall come into effect on January 1, 2011. Read more here.

(FoodNavigator.com – Caroline Scott-Thomas)

The U.S. Environmental Protection Agency (EPA) has removed saccharin and its salts from its list of hazardous substances, saying that the sweetener is no longer considered to be harmful to human health. The agency announced its intention to remove the sweetener from its hazardous substances list in April, and received no comments opposing the proposal.

Saccharin was first identified as a potential human carcinogen by the EPA’s Carcinogen Assessment Group in 1980, but it now says there is not sufficient evidence to suggest that the sweetener is linked to cancer in humans. Saccharin is a non-nutritive sweetener about 300 times sweeter than sugar, primarily used in the food industry to sweeten diet soft drinks, cakes, biscuits, confectionery, dressings, sauces, processed fruit and sweet spreads.

The EPA proposed removing saccharin from hazardous substances lists after receiving a petition from the Calorie Control Council (CCC), a trade association that represents the low-calorie and reduced-fat food and beverage industry. The CCC pointed out that the National Toxicology Program and the International Agency for Research on Cancer have both already reviewed the scientific data and removed saccharin from their lists of toxic substances as a result. Read more here and here.

(Hugues Honore — Agence France-Presse)

The United States and China agreed on Dec. 16 to pursue free trade in areas from technology to agriculture, but Beijing insisted that Washington needed to loosen its own export controls.

Top officials from the world’s two largest economies met for two days in Washington to try to iron out persistent tensions – including over the value of China’s currency, which the United States says is artificially low.

The United States said China also pledged to remain “neutral” on the technological standards for third-generation telephones along with smart grids, so as to permit market access for American companies.

“We were able to make progress on significant issues in a number of areas, and on other issues we have established channels that will allow us to continue our robust engagement and pursue timely solutions,” Commerce Secretary Gary Locke said. Read more here.

(CTV.ca – Sean Fine)

In the age-old debate between assimilating or maintaining Old World ties, Canada’s International Trade Minister Peter Van Loan offers a novel view: Keep the connections, he says. It’s a good way to succeed in global business, and therefore a route to being a good Canadian.

“There’s a kind of paradox among some [newcomers and their descendants] that success becomes defined as proving that you’ve made it on this side of the world, and not wanting to feel bound to the other side,” he says. “I think those who will be most successful in business will be those who realize that simple assimilation in Canada isn’t the best path. Being a good Canadian who realizes you have some competitive assets in doing business elsewhere will make you more successful.”

As Canadian business faces the challenge of competing in fast-growing markets far beyond the United States, a challenge made more difficult, says Mr. Van Loan, because most of our businesses are small, we have a competitive advantage in our multicultural, multilingual population. But how to leverage that advantage? Read more here.

(David Erickson and Mark Anstoetter, Shook Hardy & Bacon LLP)

Health Canada issued a final rule November 10, 2010, that lowers the total lead allowed in all surface coating materials to 90 milligrams (mg) per kilogram (kg), from the current 600 mg/kg limit. An accompanying order applies the same limit to surface coatings on other articles, including toys, equipment, pencils, and artists’ brushes. According to the agency, the rule is intended to protect the health and safety of Canadian children while aligning Canada with the United States with respect to total lead levels in surface coating materials and certain products that contain surface coating materials. The new rules take effect immediately.

(CBSA)

A few questions have arisen concerning the terminology the CBSA uses for the three types of workstations in highway border operations. Descriptions of the terms used follow:

• Primary Inspection Line (PIL) – describes a workstation where a driver and the CBSA Border Services Officer (BSO) first interact.

• Primary Processing – describes a workstation where the PIL BSO may direct a driver if additional commercial processing is required. This is sometimes referred to as the “front counter” or “commercial counter”.

• Secondary Processing – describes a workstation where the BSO may direct a driver after the PIL or Primary Processing and where examinations are conducted.

(Export Development Canada – Peter G. Hall)

Negative numbers in any country’s national accounts are generally bad news. They mostly show up as periodic declines in activity, and we have seen a lot of that lately. Imports always show up as a negative number, by definition, and consequently are often looked at as ‘bad’. But at the world level, one’s imports are another’s exports, and as such point to sources of demand and opportunity.

This is particularly true of the past 25 years. World GDP growth has been impressive, averaging 3.6% after adjusting for price movements. On the same basis, international trade has clocked in at 6.5% annually. Technology and increased openness have facilitated expansion of trade in ways that not long ago were unimaginable, and lifted the share of world trade from under 40% to over 60% of GDP.

The recent recession pummelled trade. Global flows dropped by 20% as plunging demand and the sudden collapse of the financial system arrested international commerce. The about-face threw trading nations into immediate disarray, and had analysts wondering about the future of globalisation. Read more or watch the video here.

(Reuters – Zheng Xiaolu and Tom Miles)

China banned poultry and poultry product imports from a province in Canada after an outbreak of bird flu there, the General Administration of Quality Supervision, Inspection and Quarantine said in a statement published on Thursday.

A low-pathogenic H5N2 bird flu outbreak was identified on a turkey farm in the Province of Manitoba, the statement said, citing the World Organization for Animal Health (OIE). The statement was jointly issued with the Ministry of Agriculture and was published on the administration’s web site. Read more here.

As of January 1, 2011, all 27 EU member states will require a 24-hour advance manifest submission, similar to the 24-Hour rule adopted by the U.S. and Canada under the Cargo Security Initiative.

The main piece of submission will be the ENS or Entry Summary Declaration that ocean carriers are required to submit 24 hours before cargo is loaded on the EU-bound vessel at the port of departure. Shippers are required to submit complete and accurate shipping instructions (SI) to the carrier at least 48 hours prior CY cut-off at the export load port. Shipping instructions must include all data elements required for ENS submission. Carriers are then responsible for the timely electronic submission of the ENS with EU Customs.

In case of non-compliance, the most serious consequence would be halting of cargo loading or unloading and the consequent disruption of cargo flows and supply chains. Furthermore, Customs authorities will impose fines or other penalties on carriers and other parties responsible for the submission of cargo declarations.

For more information about this new requirement, refer to the FAQ on the EU’s Entry Summary Declaration (ENS) here.

(World Trade Interactive)

The Department of Labor has published a list of 128 products from 70 countries that are believed to be produced by child or forced labor in violation of international standards. This updated list reflects the addition of the following goods since the initial list was published in September 2009.

• diamonds from Angola, the Central African Republic, Guinea and Zimbabwe
• poultry from Bangladesh
• zinc from Bolivia
• cattle from Chad, Lesotho, Namibia and Zambia
• cassiterite and wolframite from the Democratic Republic of Congo
• coffee, fireworks, shellfish and sugarcane from El Salvador
• cattle and hand-woven textiles from Ethiopia
• palm oil and rubber from Indonesia
• sapphires from Madagascar
• tobacco from Mozambique and Zambia
• charcoal from Namibia
• pornography and limestone from Paraguay
• tea from Rwanda
• cotton, gems and stones from Zambia

Products already on the list include textiles and toys from China, sugarcane from the Dominican Republic, cotton from Uzbekistan, diamonds and gold from the Democratic Republic of Congo and garments from India and Jordan.

This list should concern global vendors and suppliers because it is likely to affect U.S. importers’ assessment of risks associated with sourcing from particular countries and could increase consumer pressure for increased transparency and traceability of the listed products.

Under the Trafficking Victims Protection Reauthorization Act of 2005, the DOL is required to take steps to ensure that the listed goods are not imported into the U.S. if they are made with forced or child labor, including working with producers to help set standards to eliminate the use of such labor. Importers and exporters of the listed goods should therefore take steps to ensure that their operations will pass muster, including through measures such as assessing and understanding risk levels, strengthening compliance programs, ensuring due diligence on monitoring enforcement, developing and documenting best practices, and effectively communicating efforts to appropriate audiences.

(Jill B. Deal , Venable LLP)

Many manufacturers and private label distributors who do not regularly monitor developments at the Consumer Product Safety Commission (“CPSC”) may find themselves doing an abrupt about-face on March 11, 2011, when SaferProducts.gov, a publicly available, searchable database created by new regulations promulgated by the CPSC, begins operations.

The database will contain safety information about all products under CPSC’s jurisdiction, including many products that companies may not be aware fall under CPSC’s jurisdiction. For example, CPSC has jurisdiction to impose poison prevention packaging on foods (including dietary supplements), drugs and cosmetics under the Poison Prevention Packaging Act (and already does so for certain of these products). Likewise, the CPSC has jurisdiction over consumer products and children’s products under the Consumer Product Safety Act and all kinds of fabrics and fabric products pursuant to the Flammable Fabrics Act. Hazardous substances, defined as any substances or mixtures that are toxic, corrosive, irritants, strong sensitizers, flammable or combustible, or that generate pressure through decomposition, heat or other means, and that may cause substantial personal injury or illness, are regulated by CPSC under the Hazardous Substances Act.

Read the complete article here.

(Department of Finance)

The Honourable Jim Flaherty, Minister of Finance, today announced that Bill S-3, the legislation to implement tax treaties signed with Colombia, Greece and Turkey, has received Royal Assent. As such, Canada is now in a position to notify each of those countries of the completion of the procedures required to bring the relevant tax treaty into force in Canada.

The tax treaties with Colombia, Greece and Turkey will each enter into force after Canada and the other country notify each other of the completion of procedures for entry into force of the treaty. […]

“These treaties will help create certainty and stability for investors and traders, and will enhance Canada’s economic relationship with these countries,” said Minister Flaherty.

More information, including the full text of the treaties, is available here.

(Bloomberg – Greg Quinn)

Eugene Moser is paying some of his truckers to drive empty half the time. Canadian companies have been asking Cambridge, Ontario-based Challenger Motor Freight Inc. to send empty trucks to the U.S., so they can return full of everything from automotive parts to consumer goods, said Moser, the company’s president.

Moser and many economists say a strong currency and weak U.S. demand are to blame for declines in exports and factory sales, which remain 14% below the peak they reached in July, 2008. The U.S. is buying the smallest share of Canada’s shipments abroad since November 1982, Statistics Canada says.

“There are customers that are calling us and asking us to run empty into the border states,” such as Michigan and beyond into Ohio, Pennsylvania and Wisconsin, Moser said by telephone from Cambridge, 100 kilometers (60 miles) southwest of Toronto. “When you get a truck down there and you want to come back to Canada, you can almost name your price.” Read more here.