GHY Tradelines

(CFIA)

This notice is to remind importers and brokers that phase 4 implementation of the changes to import notification requirements for products in the non-federally registered food sector will come into effect on February 07, 2011.

Annex 1 of the Notice to Importers and Brokers – Phase 4 on the CFIA website has been updated to include the OGD extension codes for the commodities.

(Industry Week)

PwC survey shows modest hiring plans

Overall, optimism about the U.S. and world economies’ prospects over the next 12 months is on a major upswing, according to the PwC U.S. Manufacturing Barometer released on Jan. 27. Trends giving rise to this optimism include stronger revenue forecasts for the respondents’ own companies and improved international revenue contributions, as indicated in the findings of the Q4 2010 report.

Looking at the next 12 months, 63% of industrial products manufacturers expressed optimism about the U.S. economy’s prospects, a sharp rise of 28 points from the prior quarter’s 35%. This current level of optimism is 16 points higher than a year ago (47%), and has not been this high since Q2 2007 (62%).

Read the complete article here and view the full report here.

(The Toronto Sun – Stefania Moretti, QMI Agency)

Canadians should be pleased to hear that the U.S. economy is finally picking up steam but risks remain, the Conference Board of Canada said Wednesday. The think-tank’s latest U.S. outlook projects “solid” real gross domestic product growth of 3.2% in 2011, with exports and business investment leading the way.

A rebound in corporate profits and better-than-expected consumer spending are also helping to lift economy. “But the risks to the American rebound beyond 2011 are unusually high, and growth in the succeeding years could be jeopardized by massive fiscal deficits,” the Conference Board said. Read more here.

(Truck News)

TransCore’s Canadian Freight Index ended 2010 with a bang, posting the highest ever load volumes for the month of December. December 2010 load volumes were 5% higher than the previous high for the month, which was in December 2007, TransCore announced. December’s load volumes were also up 4% from November and 34% higher than December 2009.

For the full year, TransCore’s Canadian Freight Index was stronger than in any of the previous five years. Load volumes for 2010 showed monthly year-over-year increases and were 50% higher for seven consecutive months when compared to 2009.

Equipment postings, which have historically decreased for the month of December, did so again in December 2010, reaching their lowest levels of the year. In fact, December 2010 equipment postings were the lowest for the month since 2007, TransCore announced.

An updated list of recently published government memorandums, notices, regulations and decisions for the week ending January 28, 2011 is now available on our website here.

(American Shipper)

The Federal Maritime Commission voted Wednesday to issue a notice of inquiry (NOI) on “slow steaming,” the increasingly popular practice of operating containerships at reduced speeds.

During a meeting, commissioners suggested some modifications to the NOI, so it will likely be Friday when it is finalized and posted on the agency’s Web site. […]

Commissioner Rebecca Dye said, “I encourage staff to closely monitor the capacity situation in the transpacific trade to ensure that any coordinated slow steaming program discussed under this amendment does not function as a capacity management plan or adversely affect the international competitiveness of U.S. exporters.” Read more here.

(Transport Canada)

The Honourable Rob Nicholson, Member of Parliament for Niagara Falls, Minister of Justice and Attorney General of Canada, and Dr. Kenneth E. Loucks, chair of the Niagara Falls Bridge Commission, today celebrated the completion of the central plaza building at the Queenston-Lewiston International Bridge.

“The Government of Canada is proud to have invested in the Queenston-Lewiston Bridge, one of the busiest Canada-U.S. border crossings,” said Minister Nicholson. “Investments in the Queenston Plaza will help to reduce traffic congestion, facilitate local border crossings and improve this important trade link in the Niagara region.”

“Completion of the Queenston central plaza building on the northernmost of our three bridges will provide even more rapid border crossings for our cars, trucks and buses moving into Canada,” said Dr. Loucks. “As a binational commission, we work extremely hard to provide the highest-quality services to aid and guide the motorists who use our bridges. This building is another example of the success of that effort.” […]

The Queenston-Lewiston Bridge is the fourth-busiest Canada-U.S. commercial land border crossing and a key component of the Ontario-Quebec Continental Gateway and Trade Corridor. In 2009, bridge traffic included approximately 675,000 commercial trucks and over 2.6 million cars. Read more here,

(Prime Minister’s Office)

Prime Minister Stephen Harper and the Prime Minister of Morocco, Abbas El Fassi, today announced the two countries will begin negotiations towards a free trade agreement. The announcement was made during a working visit to Morocco by Prime Minister Harper. The Prime Minister was joined by Peter Van Loan, Minister of International Trade, and Gerry Ritz, Minister of Agriculture.

“The economy remains our Government’s number one priority,” said Prime Minister Harper. “A free trade agreement with Morocco would be Canada’s first with a country on the African continent, and is another example of how our Government is pushing to create jobs and economic growth through trade liberalization.”

Canada and Morocco already enjoy a dynamic relationship with close cultural and linguistic ties. A Canada-Morocco free trade agreement would not only enhance the existing relationship, but would open new markets, encourage economic growth and create jobs while helping our farmers and businesses compete globally.

Canadian businesses have identified Morocco as a priority market for a free trade agreement. The Harper Government will continue to engage all stakeholders to ensure that their interests and concerns are taken into account during the negotiations.

(CTV Montreal – The Canadian Press)

Jean Charest fended off accusations of being a fairweather free-trader in talks with the European Union – particularly when it comes to lucrative Hydro-Quebec contracts.

Quebec and Ontario have been rebuked in recent months by International Trade Minister Peter Van Loan and other business leaders over their demands for the future Canada-EU trade accord. They charge the provinces are asking that too many exceptions and exclusions be part of an eventual agreement. Read more here.

(Mary Gazze — The Canadian Press)

A new breed of prospectors is gearing up for a modern Canadian gold rush – far from the pickaxe-toting old-timers of the Klondike, these are a savvy, business-suited bunch looking to cash in on rich veins of Prada purses and cheap blue jeans. They are major U.S. retailers, department stores and mall moguls, and their cross-border foray anticipates that consumers here will open their wallets wider by 2012, creating huge demand for new shops and outlets.

“If you look at 2008 and 2009 they were very difficult years for retailers. 2010 I would say was a recovery year for retailers. So in 2011 and 2012, we expect the market to grow but it will be more competitive because there are more players entering the market,” says Daniel Baer, a retail industry consultant with Ernst & Young. “It takes time to build stores and to plan and to get your real estate and the like. They are planning ahead for better times.” […]

Many recent signs have indicated Canadians are feeling better about the economy. The Conference Board of Canada said Tuesday that consumer confidence rose 7.1% this month to 88.1 points, the highest it has hit since the initial optimism coming out of the recession in the latter half of 2009 and early 2010. Read more here.

(Export Development Canada – Peter G. Hall)

Need a refresher on the world economy’s recent travels? Canadian exports tell the story: ravaged by the global recession, rescued by a rapid rebound, and now repressed by a relapse that has fogged up the view of the future. In contrast, Canada’s domestic economy has been unusually resilient, rescuing us from the regular roughing-up global recessions usually bring. But momentum on the home front is fading. Are exports ready to pick up the slack and keep the near-term outlook afloat?

The answer depends on the world outlook. Evidence suggests that the current growth relapse could persist for awhile. Consumers in the developed world, a huge chunk of global demand, hardly seem ready to come out in full force: unemployment and indebtedness are still high, and confidence is low. On the business side, vast amounts of idled capacity suggest no immediate urgency to invest. These players await a return to balance that is in process, but still about a year away.

Read more and/or watch the video here.

(CBSA)

As you are aware, on October 31, 2010, the Canada Border Services Agency (CBSA) made eManifest electronic data interchange (EDI) systems available to highway carriers, or their service providers, for the transmission of cargo and conveyance data before arriving at the border.

I am pleased to inform you that, as of January 20, 2011, the CBSA has received 239 eManifest conveyance and 3403 related cargo transmissions from a variety of carriers and service providers for shipments entering Canada at ports of entry in all regions nationally. Although the numbers are relatively low at this time, they are increasing daily as clients complete systems’ testing and carriers implement electronic processes throughout their fleets on a national basis.

Since implementation, all eManifest conveyance submissions monitored have been processed successfully and approximately 41% of monitored cargo submissions required more technical support to process successfully. The CBSA has risk assessed the advance data, the carriers have arrived at the border, presented their bar-coded document to link to the transmitted data and the shipments were released. These transactions have been successfully completed with final accounting having closed the loop in the CBSA’s commercial process. Client support teams are in place and answering clients’ technical, general or policy questions.

As with any new process, the CBSA has encountered a few minor problems with some transactions that we are working to resolve. But on the whole, this first stage of eManifest implementation has been successful.

Similarly, we recognize that you, our trade partners, may also be experiencing a few difficulties adapting to the new cross-border process. Until this process becomes ‘routine’ and drawing on the issues presented to date, it would be helpful if you inform your carrier members that, at this time, the 3-digit Service Option (SO) is not required on the document or lead sheet drivers present at the Primary Inspection Line (PIL) for eManifest shipments. In addition, please remind carrier members that on arrival at PIL, drivers should:

• inform the Border Services Officer that they are carrying an eManifest shipment.
• be aware that eManifest is not a “pilot project” or “testing” phase of the Advance Commercial Information (ACI) initiative.
• present a document or lead sheet containing one bar code – either a bar-coded Conveyance Reference Number (CRN), or a bar-coded Cargo Control Number (CCN) with the CRN hand-written on the document – that will link to the transmitted data. Both of these numbers must begin with the transporting carrier’s 4 character CBSA-assigned carrier code.
• be advised that although the preferred eManifest identifier is a CRN, a PARS bar code with a hand-written CRN can be presented as an alternative key to the CRN but that this may cause delays in processing at the border.

I thank you for your continued support and patience as we progress with the implementation of this important initiative to enhance the safety and security of Canadians and international trade.

Bruna Rados
Director General
eManifest and Major Projects Directorate
Programs Branch, Canada Border Services Agency

(CFIA)

The Canadian Food Inspection Agency (CFIA) has conducted several verifications of imported logs from the United States and identified some irregularities on customs declaration forms. The use of “Mixed hardwood logs” or not declaring all wooden species on customs declaration forms contravene regulatory requirements of the CFIA and the Canada Border Services Agency (CBSA). To this effect, all species of imported logs must be correctly declared, as some species have particular import requirements for allowance into Canada. The tariff item code 4403.99.00.99 (for Logs – other) must be used only when an imported species is not listed in chapter 44 of the custom tariff.

You have until February 1st, 2011, to comply with this clarification of the policy and correctly declare all log species present in each shipment to ensure entry into Canada, and avoid delays or refusals.

Please request your customers (importers/exporters) to correctly identify all species present in each shipment you are importing, and to appropriately fill out import documents and customs declaration forms that will be presented at the Canadian border.

For specific import requirements, refer to the automated import reference system. For more information, contact one of our regional offices. For the complete list of the tariff item codes, refer to the CBSA website here.

(International Business Times)

China asked importers of caprolactam from the U.S. and the European Union (EU) to pay a security deposit, the Ministry of Commerce (MOC) said Monday.

A statement from the ministry said that caprolactam, a widely used synthetic polymer, imported from the U.S. and the EU, had been dumped in the country. The dumping caused substantial damage to China’s domestic industry, the statement said. The ministry is expected to announce final ruling later, after conducting further investigations into the matter. Read more here.

(The Globe and Mail – Steven Chase)

An Ontario cabinet minister is accusing Stephen Harper’s Conservatives of hypocrisy in the United Arab Emirates dispute, saying the Tories are being protectionist by refusing UAE carriers more flights into Pearson airport even as they trumpet the benefits of open markets for other sectors such as telecom.

Sandra Pupatello, Ontario’s Minister of Economic Development and Trade, made the comments as she embarked on a trade trip in the Gulf region that starts with four days in the UAE – once a staunch ally of Canada’s. She said she’s hoping the deepening dispute between the federal government and the United Arab Emirates will not hurt Ontario companies’ chances of signing deals or attracting investors.

“I can tell I was horrified as I watched the events as they unfolded because you just hope you didn’t invest all this time and energy in building relationship just to have to it dashed,” Ms. Pupatello said. Read more here.

(Peter O’Neil — Postmedia News)

The Canada-European Union free trade talks have hit another snag due to the continued reluctance of some EU member states to negotiate a wide-ranging agreement to liberalize trade in services.

The delay is raising questions about whether the tabling of formal offers, which was supposed to take place last week in Brussels but was then rescheduled for the next round of negotiations in Ottawa in April, could be hit with further complications. […]

Canada is pushing for a “negative” list, which means that all services will be liberalized except those specifically identified. Canada has historically included water services, public education, and health and social services as exempt sectors in past trade agreements.

Europe has always used a “positive” list in which all sectors and sub-sectors being liberalized are spelled out in the agreement. Read more here.

(World Trade Interactive)

The Bureau of Industry and Security has issued a final rule that, effective Jan. 25, revises the export and re-export controls on shipments to India. These changes include removing India’s defense and space-related entities from the Entity List and realigning U.S. export licensing policy toward India by removing it from country groups D:2, D:3 and D:4 in the Export Administration Regulations and adding it to country group A:2.

According to BIS, this is the first in a series of rules implementing a November 2010 commitment between the U.S. and India to work together to strengthen the global nonproliferation and export control framework and further transform bilateral export control cooperation. BIS states that these reforms reflect India’s nonproliferation record and commitment to abide by multilateral export control standards. Read more here.

(Pascal Lamy — Financial Times)

As recently as 30 years ago, products were assembled in one country, using inputs from that same country. Measuring trade was thus easy. 2011 is very different. Manufacturing is driven by global supply chains, while most imports should be stamped “made globally”, not “made in China”, or similar. This is not an academic distinction. With trade imbalance causing friction between leading economies, the measures we use can gravely exacerbate geopolitical tensions at a time when co-operation is more vital than ever.

International trade is currently measured in what is known as gross value. The total commercial value of an import is assigned to a single country of origin, as the good reaches customs. This worked fine when economist David Ricardo was alive: 200 years ago Portugal was trading wine “made in Portugal” for English textile “made in England”. But today the concept of country of origin is obsolete. What we call “made in China” is indeed assembled in China, but its commercial value comes from those numerous countries that precede its assembly. It no longer makes sense to think of trade in terms of “them” and “us.” Read more here.

(Global Security Newswire – Sara Sorcher, National Journal)

Other countries need to share their screening methods with the United States if the Transportation Security Administration’s goal of screening all international cargo on passenger planes is to be met by the end of the year, said an air cargo industry executive involved in the effort.

“The TSA has told us in the past that they were not able to gain the required visibility of other countries’ programs to see if they were commensurate with the U.S. screening procedures. This is the biggest challenge,” said Brandon Fried, executive director of the Airforwarders Association, which represents the $17 billion air cargo industry.

Fried, who meets regularly with the TSA, spoke to National Journal last week before he addressed a meeting of industry officials on the issue Sunday. Airforwarders, like other cargo industry groups, is being asked by the TSA for its opinions of a new stepped-up effort to screen all inbound international packages on passenger planes by the end of the year. Read more here.

(Pulp & Paper Canada)

A fine of $60 million has been levied against the lumber industry in Eastern Canada by the international arbitrator of the Canada/U.S. Softwood Lumber Agreement. In this latest decision, the tribunal agreed with the U.S. claimant that a number of provincial assistance program circumvented the 2006 agreement.

Canada’s Minister of International Trade, Peter Van Loan, said the federal government is reviewing the decision. Canada has 30 days to either cure the breach of the agreement, or impose additional charges on exports of softwood lumber to the U.S. from Ontario and Quebec.

Van Loan commented that while the tribunal did rule in favor of the U.S., it did not fully support the Americans’ claim. “I note that the tribunal rejected 97% of the United States’ $1.86 billion claim as having no basis.” Read more here.