GHY Tradelines

(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.