GHY Tradelines

(World Trade Interactive)

The Department of Agriculture’s Animal and Plant Health Inspection Service is conducting a required review of the implementation of the import declaration requirement for certain plants and plant products contained in the Lacey Act amendments made by the 2008 Farm Bill. Public comments on this issue are due no later than April 14.

Under the Lacey Act amendments, imports of certain plants and plant products must be accompanied by an import declaration that contains, among other things, the scientific name of the plant, the value of the importation, the quantity of the plant and the name of the country from which the plant was harvested. APHIS started phasing in this requirement as of Dec. 15, 2008, and it currently applies to items classified under HTSUS headings 4402 (wood charcoal); 4412 (plywood, veneered panels), except 4412.99.06 and 4412.99.57; 4414 (wooden frames); 4419 (tableware and kitchenware); 4420 (wood marquetry, caskets, statuettes); 4421 (other articles of wood); 6602 (walking sticks, whips, crops); 8201 (hand tools); 9201 (pianos); 9202 (other stringed instruments); 9302 (revolvers and pistols); 9305.10.20 (parts and accessories for revolvers and pistols); 9401.69 (seats with wood frames); 9504.20 (articles and accessories for billiards); and 9703 (sculptures). Additional products could be added in the future, but APHIS has said it plans to provide at least six months’ notice before any such action is taken.

The amendments also require APHIS to review the implementation of the declaration requirements, including the effect of certain exclusions, and to submit to Congress a report detailing the results of that review. This report must include an evaluation of the effectiveness of each type of required information in assisting enforcement, the potential for harmonization with other applicable import regulations and an analysis of the new law’s effects on the cost of legal plant imports and the extent and methodology of illegal logging practices and trafficking. APHIS must also provide recommendations for appropriate legislation to assist in the identification of violative plant imports. APHIS is therefore soliciting from the public information on these topics as well as other issues pertinent to the implementation and enforcement of the 2008 Lacey Act amendments.

(The Globe and Mail – Roy MacLaren and Jason Langrish)

Roy MacLaren, a former minister of international trade, is chair of the Canada Europe Roundtable for Business; Jason Langrish is executive director.

Earlier this month, a coalition of auto executives called for a halt to free-trade negotiations with South Korea and the European Union. The members of the Canadian Automotive Partnership Council worry about new automotive investments that are flooding into low-cost Mexico, a free-trade partner of Canada under NAFTA, and undermining their ability to compete.

Last month, The Globe and Mail reported that auto-parts maker Magna International is adding to its presence in Mexico by spending $100-million (U.S.) to build a new plant to produce stamped and welded assemblies for several auto makers. The article says Magna is receiving support from the Mexican government, and already has 29 manufacturing plants and 15,900 employees in Mexico. It adds that Mexico is close to the U.S. auto market, making for efficient shipments by rail, while production costs, including labour, are lower than in Canada or the United States.

Yet, Magna was among those at the Feb. 18 meeting with Industry Minister Tony Clement supporting a report that highlights the threat from a “flood of investments into low-cost Mexico.”

When the auto executives are complaining that proposed free-trade agreements with South Korea and the EU will make them uncompetitive, they’re trying to suck and blow at the same time. Read more here.

(CIFFA eBulletin)

U.S Customs and Border Protection has published and posted a Frequently Asked Questions (FAQ) document on Instruments of International Traffic Imported with Residue. The FAQ provides what the definition is of an Instrument of International Traffic. How is an IIT, arriving from foreign with residue, manifested and entered into the U.S., who will make entry (exporter, carrier) and much more detailed information.

Download the complete document here.

(Canadian Transportation & Logistics – Lou Smyrlis)

Shippers expect modest growth in shipments by most modes in 2011. They also expect to be faced with small increases in rates and fuel surcharges. These are some of the findings of the sixth annual benchmarking survey undertaken by Dr. Alan Saipe of Supply Chain Surveys Inc. for CITA, with the sponsorship of RBC Capital Markets and the support of Transport Canada and Nulogx Inc.

The annual survey is designed to give the CITA membership benchmarks with which to assist in evaluating their transportation and logistics activities.

A few of the highlights are:

• Shippers were more focused on cost reduction and profit growth this year than in recent years
• Shippers found that Service quality in most modes improved in both 2009 and again in 2010. A factor in quality gains will be volume reductions compared to 2008.

Read more here.

(Statistics Canada)

The Canadian railway industry carried 23.2 million tonnes of freight in December, a 7.5% gain from December 2009.

The gain was the result of increased loadings by the industry’s core transportation systems, non-intermodal and intermodal, and international freight loadings from the United States.

Compared with December 2009, non-intermodal loadings rose 6.1% to 18.6 million tonnes in December. The commodity groups with the largest gains in tonnage were potash, coal and colza seeds (canola). Overall, 36 of the 63 commodity groups registered an increase in freight loadings for the month.

Intermodal freight loadings, comprised of containers and trailers on flat cars, rose 8.9% from December 2009 to 2.1 million tonnes in December. The increase was solely the result of a rise in containerized cargo shipments.

On an international scale, traffic received from the United States destined for or passing through Canada rose 18.8% from December 2009 to 2.4 million tonnes in December.

An updated list of recently published government memorandums, notices, regulations and decisions for the week ending February 25, 2011 is now available on our website here.

(Kyle Gootkin — Western Front)

Western’s Border Policy Research Institute has begun research that could improve commercial traffic congestion at the United States-Canadian border.

The institute began field research on the current lane configuration Feb. 22 and will continue collecting data until April 14, according to a university press release.

The institute received a $49,000 grant from the Washington Department of Transportation to study the efficiency of the Free and Secure Trade truck lane at the Pacific Highway crossing and alternative uses, said Director of the institute Donald Alper.

The institute will collaborate with U.S. Customs and Border Protection, Canada Border Services Agency, the British Columbia Ministry of Transportation, Washington State Department of Transportation and Whatcom Council of Governments for the project, according to the press release. Read more here.

(CRI)

China is to cut import taxes on some products, including formula milk and cosmetics. The move aims to balance international trade.

In January, the Ministry of Finance said tax revenues jumped 23% year-on-year to more than 7 trillion yuan or about $1 trillion US dollars in 2010, partly boosted by import taxes.

Economist Luo Dingyu said the tax reductions are partly a response to the global financial situation. He said “the cuts are in line with the expectations of the world’s major economies. A number of countries have been hoping that an increase in exports to China will help to fuel their struggling economics.”

The move comes after just days after the G20 meeting in Paris, at which China came under pressure to increase imports and lower its trade surplus as a means of reducing global trade imbalances.

Data from the General Administration of Customs show that China’s trade surplus decreased by about 6% year-on-year in 2010.

(Vancouver Sun – Brian Morton)

China may well replace the U.S. within two years as B.C.’s largest market for softwood lumber exports, Forests Minister Pat Bell said in Vancouver Tuesday.

“In December, we sold over 420 million board feet into China and that’s over five billion annualized,” Bell said in an interview after participating in a forum on investment opportunities in China. “In the U.S., it was [just under] seven billion board feet last year. So, I think 2012, 2013 is a realistic objective to see China displace the U.S. as the largest importer of our softwood lumber.”

Bell, one of several panel members at Doing Business in China, a forum organized by HSBC Bank Canada, told the assembled business leaders that the scale of housing construction in China is enormous and represents a “huge opportunity” for B.C.’s forest sector. […]

He noted that in 2005, 70% of B.C. wood went to the U.S. and just 17% to China and Japan. But in December 2010, 47% went to Japan and China and just 36% to the U.S. Read more here.

(Embassy – Anca Gurzu)

Giving in to European Union demands to tighten the country’s intellectual property regime could benefit Canada’s pharmaceutical and publishing industries, but will “have significant adverse impacts” on some consumers, according to the new European Commission report.

Meanwhile, whatever innovation is gained through strengthening Canada’s IP rules could be lost if the country agrees to open its sub-federal procurement market to European companies, the report says, though the reverse isn’t true. Rather, Canadian firms would be best-served if negotiators can liberalize services.

The report, concluded in December 2010, is the second of a three-part study of how the proposed Comprehensive Economic Trade Agreement will impact each side’s economy, but also social, environmental and development dimensions. It also examines those issues in relevant third countries. Read more here.

(Reuters – Pete Harrison and Juliane von Reppert-Bismarck)

Europe’s trade and climate chiefs are preparing to take a stand against imports of oil from Canada’s polluting tar sands, despite fears the move might wreck a multi-billion dollar trade deal, according to EU sources and documents.

European Union sources said this week that Canada had threatened to pull out of trade talks because of the clash, but Ottawa has denied that. Canada says draft EU standards to promote greener fuels will harm a possible future market for its oil sands – tar-like oil that is trapped in sediment and forms the world’s second-largest proven oil reserves after Saudi Arabia’s.

Last year the European Union appeared to back down on the issue, putting commerce ahead of a strategy to curb greenhouse gases from transport fuels by 6% this decade. Read more here.

Related: Canada Says EU Oil Spat Not Linked to Trade Talks (Reuters)

(Truck News)

The latest Canadian General Freight Index (CGFI) shows a continued softening in ground transportation rates.

The index indicated the cost of ground transportation for Canadian shippers dropped for the third consecutive month in December, in contrast to fuel surcharges, which continue to rise.

The CGFI Total Freight Cost Index dropped 1.6% in December compared to November while the Base Rate Index, which excludes fuel surcharges, declined 2.5%. The index remains 2.9% above its April low point and 1.5% higher than last year’s results for the same period. Read more here.

(CBSA)

1. The purpose of this customs notice is to inform industry that Canada Border Services Agency (CBSA) has experienced a delay in the issuance of annual renewals of authorizations required pursuant to the following Remission Orders, subsequently amended most recently by P.C. 2008-1599, Order Amending Certain Textile and Apparel Remission Orders, 2008:

1. Tailored Collar Shirts Remission Order, 1997 P.C. 1997-830
2. Outerwear Greige Fabrics Remission Order, 1998 P.C. 1997-2054
3. Shirting Fabrics Remission Order, 1998 P.C. 1997-2055
4. Outerwear Apparel Remission Order, 1998 P.C. 1997-2056
5. Blouses, Shirts and Co-Ordinates Remission Order, 1998 P.C. 1997-2057
6. Outerwear Fabrics Remission Order, 1998 P.C. 1997-2058

2. This delay arose during the course of a quality assurance review being conducted by the CBSA. The CBSA is initiating immediate action to resume the review and approval of annual authorizations.

3. It is important to note that these six Orders remain in effect and are still scheduled to expire on December 31, 2012.

4. Eligible apparel manufacturers or fabric producers (as named in the Schedules to the Orders) that wish to avail themselves of an Order may do so by obtaining an annual authorization to import under that Order or by filing a drawback claim to recover duties paid on qualifying goods.

5. If a manufacturer or producer intends to have duties remitted at the time of importation, that manufacturer or producer must submit, at the beginning of each calendar year, to the regional CBSA office nearest where the company’s operations are located, an application by letter of intent, confirming that the company:
a. is a manufacturer or producer of (insert description of qualifying goods) in Canada;
b. is listed in the Schedule to the Order and has a 1995 duty entitlement of (insert 1995 allocation);
c. will not exceed the amount of duties that may be claimed for remission on imported goods;
d. will, if applicable, include the names and addresses of any other persons or companies that might be performing cutting or sewing operations in Canada on its behalf; or
e. will, if applicable, include the names and addresses of any distributors who have purchased finished outerwear fabric or outerwear greige fabric to be sold to outerwear apparel manufacturers;
f. will maintain records that are satisfactory to CBSA;
g. will meet all the conditions of the Order; and
h. will provide CBSA with any other information which may be requested to substantiate its claim for remission.

6. Authorized manufacturers and producers will continue to have the ability to recover any duties that have been paid on qualifying goods, by filing a drawback claim at the regional CBSA office nearest where the company’s operations are located.

7. A manufacturer or producer claiming remission by way of drawback must meet the same requirements as a manufacturer or producer claiming remission at the time of importation although a letter of intent to obtain an authorization number is not required.

8. Mailing addresses for the submission of Letters of Intent and/or Claims for Drawback pursuant to these Orders follow:

Quebec Region:
Ms. Annie Beauséjour
Director, Trade Services Division
Canada Border Services Agency
400 Place d’Youville, 5th Floor Montréal, Quebec
H2Y 2C2

Greater Toronto Area (GTA) Region:
Ms. Christine Durocher
Director, Single Program
Canada Border Services Agency
1 Front Street West, 3rd Floor
Toronto, Ontario
M5J 2X6

Prairie Region:
Mr. Jim Clark
Director, Trade Compliance Division
Canada Border Services Agency
2588 – 27th Street North East Calgary, Alberta
T1Y 7G1

Pacific Region:
Ms. Catherine Black
a/Director, Trade Compliance Division
Canada Border Services Agency
503 – 333 Dunsmuir Street Vancouver, British Columbia
V6B 5R4

9. For questions concerning this notice or for information relating to license renewals in 2011, please contact:

Mr. Peter Rickard
Manager, Quality Assurance – Trade Incentives
Canada Border Services Agency
Telephone: 613-954-6993
Email: Peter.Rickard@cbsa-asfc.gc.ca

(Materials Handling & Logistics – Lalo Solorzano and Tamara Dwyer)

Companies within the United States have long looked to Mexico to expand manufacturing operations, whether by directly owning and controlling operations in Mexico, or working with outsourced and contract manufacturers. Mexico’s proximity to the U.S. and its long track record of providing high-quality inexpensive labor and resources make it an attractive location.

Mexican manufacturing is an integral part of the value chain for many commodities from agriculture to high-tech. The end-to-end assembly is sometimes completed within Mexico, but more commonly the process spans multiple countries. Raw materials, components and sub-assemblies are sourced from Mexico for final assembly in the U.S., or parts are sent to Mexico for final assembly and completion. Repair and rework activities are another element of cross-border trade. A growing trend in value chain collaboration is merge-in-transit. One facility receives parts and sub-assemblies from multiple locations, then packages and routes shipments to a distribution center or directly to the end-customer. All these scenarios require tracking shipments across the U.S.-Mexico border.

Balanced with the many benefits of cross-border trade with Mexico are concerns with regulatory compliance and security. Within this article, we’ll look at the top five challenges… Read more here.

(Montreal Gazette – Megan Fitzpatrick, Postmedia News)

Deal should focus on trade issues; ‘We don’t want Canada’s border being managed by U.S. Homeland Security’

Talk about a new border accord with the United States is focused too much on security and not enough on trade, the Opposition Liberals said yesterday, accusing the Conservative government of ignoring Canadian interests and conducting negotiations in secret.

Liberal trade critic Martha Hall Findlay held a news conference to blast Prime Minister Stephen Harper over the “declaration” he announced earlier this month with U.S. President Barack Obama, an effort the leaders said will enhance border security and reduce regulatory barriers to trade and travel.

Findlay said from the few details that have been released about the accord, which is under negotiation, none is related to ongoing trade irritants between Canada and the U.S. She cited the Buy American policy and country-of-origin labelling rules as examples of trade problems she said the Harper government is doing little to solve. Read more here.

(CFIA)

This is to inform you that the Canadian Food Inspection Agency (CFIA) has updated its Compliance and Enforcement Operational Policy (CEOP). The revised version places greater emphasis on transparency as well as recourse mechanisms available to industry.

The updated policy, which will be available on CFIA’s website by February 25, 2011, confirms the CFIA’s overall approach to assessing compliance and applying enforcement action when warranted. We will continue to work closely with industry members on compliance issues while practicing fairness, impartiality and consistency. Similarly, existing principles, legislation, and roles and functions of industry and the CFIA remain in place.

In keeping with our commitment to transparency, the CFIA will also begin posting on its website quarterly information on enforcement activities. The first data to go on our website in the coming weeks will include:

• Links to existing prosecution bulletins
• Food imports refused entry into Canada

As this initiative expands, more enforcement-related information will be posted, including:

• confiscation of food products that could not be brought into compliance;
• Administrative Monetary Penalties (AMPs);
• federally registered food establishments whose licenses have been suspended, cancelled or reinstated; and
• names of companies that have received Notices of Violations with Penalty in the course of carrying out their business.

Posting this information is consistent with the practice of several other federal regulators who currently provide information on their compliance and enforcement activities (e.g. CRTC; Transportation Safety Board of Canada; Health Canada). It is also consistent with information publicly shared by the U.S. Food and Drug Administration and the U.S. Food Safety and Inspection Service, and internationally. There is also a demonstrated public need for this type of disclosure, reinforced by the recommendations in the Report of the Independent Investigator into the 2008 Listeria Outbreak.

We feel that our decision to add this new section to our website is a fair and measured approach to protecting the safety of Canada’s food supply and, ultimately, the good reputation of your industry.

We recognize and are sensitive to issues of privacy and commercial confidence and intend to provide appropriate context for information that will be made public.

The CFIA and our inspectors remain committed to working closely with you to resolve any issues that might affect our food supply, your industry and individual businesses. In doing so, we hope that, together, this will protect the quality of food Canadians consume while minimizing enforcement activities.

The CFIA anticipates that you may have questions or need clarification regarding the new CEOP and the posting of enforcement information. We are therefore providing you a dedicated email address where you can send your questions. Please direct your questions to: cfiamaster@inspection.gc.ca

We encourage you to distribute this information through your own channels. Thank you for your cooperation and participation.

Cameron Prince
Vice President, Operations
Canadian Food Inspection Agency

(The Vancouver Sun – Reuters)

Canada has threatened to scrap a trade deal with the European Union if the EU persists with plans that would block imports of Canada’s highly polluting tar sands, according to EU documents and sources.

The European Union has told its fuel suppliers to reduce the carbon footprint of fuels by 6% over the next decade, and is now fine-tuning “default values” to help suppliers identify the most carbon-intensive imports.

Canada says the standards would instantly constrict a possible future market for its oil sands – tar-like oil that is trapped in sediment and forms the world’s second-largest proven crude reserves after those of Saudi Arabia. Read more here.

(Cargonews Asia)

International trade is surging again at the major local ports, suggesting that economic strength is building despite stubbornly high unemployment, reported The Los Angeles Times.

In January, the neighbouring ports of Los Angeles and Long Beach, which together make up the country’s largest freight complex, handled 13% more cargo containers than a year earlier. Other signs of recovery: Longshoremen are getting more dock work, some Southern California warehouses are hiring again, and trucking and railroad freight movement has increased. […]

“Strong growth in 2010 has retailers cautiously optimistic that the economic recovery is finally taking hold,” said Jonathan Gold, vice president for supply chain and customs policy for the National Retail Federation. “While high unemployment and rising commodity prices are cause for concern, retailers are encouraged by six consecutive months of retail sales gains and improved consumer confidence.” Read more here.

(CTV News)

Washington’s top diplomat in Ottawa attempted to tamp down concerns Friday over a U.S. proposal that could result in an additional tax on Canadian freight heading south of the border. Reports of the freight tax proposal, which was recently tabled in Congress, come as the U.S. also mulls a visitor inspection fee on Canadian travellers going to the U.S.

But U.S. Ambassador David Jacobson said that Canadian businesses should not be worried about the proposal, which likely won’t make it far in the legislation process in Washington. Read more here.

(Emil Protalinski — TechSpot.com)

The US Government once again seized several domain names this week, but this time it made a mistake. The Department of Justice (DOJ) and Homeland Security’s Immigration and Customs Enforcement branch (ICE) took down websites related to counterfeit goods and child pornography. As with previous seizures, ICE convinced a District Court judge to sign a seizure warrant, and then had the domain registries in question point to a server that hosts a warning message.

Unfortunately, one of the targeted domains, mooo.com, belonged to the DNS provider FreeDNS, and as result, 84,000 websites were mistakenly taken down. Read more here.