Date: December 22, 2011
News & Information about Transborder and International Trade from GHY International
(Journal of Commerce Online – R.G.Edmonson)
Agency also may allow trucking companies operating in Canada, Mexico to join
Customs and Border Protection may allow exporters to join a voluntary supply chain security program, and Japan, Colombia and Costa Rica are onboard for a test run of the program. Trucking companies operating in Mexico and Canada may also be able share in tiered benefits through the Customs-Trade Partnership Against Terrorism. Participants in the program, established in 2002, usually receive fewer cargo inspections, which lowers import costs. Read more here.
Harmonized System Update (HSU) 1108 was created on December 20, 2011 and contains 577 ABI records and 118 harmonized tariff records.
Changes were made as a result of the 484 (F) Committee. The Committee for the Statistical Annotation of the Tariff Schedules mandated modifications effective January 1, 2012.
As always, these changes will be included in the 2012 USHTS. However, at this time, please contact your client representative for questions regarding specific records.
Adjustments required by the verification of the 2011 Harmonized Tariff Schedule (HTS) were made as well.
The modified records are currently available to all ABI participants and can be retrieved electronically via the procedures indicated in the CATAIR. For further information about this process, please contact your client representative. For all other questions regarding this message, please contact Jennifer Keeling via email at Jennifer.Keeling@dhs.gov.
1. The recently published 2012 version of the Departmental Consolidation of the Customs Tariff (Tariff) contains amendments to the international Harmonized Commodity Description and Coding System, which forms the basis of the Canadian Customs Tariff, as well as the changes resulting from the Tariff reduction reviews undertaken by both Finance Canada and Statistics Canada.
2. As a result, the classification numbers shown on current Advance Rulings for Tariff Classification and National Customs Rulings (NCRs) may no longer be valid as of January 1, 2012.
3. As noted in paragraph 10(a) of the Tariff Classification Advance Rulings Regulations, an advance ruling is not binding if there has been a “… change in … the laws of Canada”. These tariff changes are the result of amendments to the Customs Tariff Act. Thus, a ruling with a classification number that is impacted by these changes will expire as of January 1, 2012.
4. To obtain a replacement ruling that will be effective on and after January 1, 2012, please contact the CBSA office that issued the current ruling.
5. The Customs Tariff can be found on the CBSA’s website. Concordance Tables to assist in the conversion from 2011 to 2012 are also available on that same page.
6. For more information, from within Canada, call the Border Information Service at 1-800-461-9999. For more information, from outside of Canada, call 204-983-3500 or 506-636-5064 (long distance charges will apply). Agents are available Monday to Friday (08:00 – 16:00 local time/except holidays). TTY is also available within Canada at 1-866-335-3237.
(Canadian Transportation & Logistics)
TransCore’s Canadian Freight Index remained steady in November with no change from October levels, the company announced. However, year-over-year load volumes increased a “healthy” 17%, according to TransCore officials.
Historically, November experiences a decrease in spot freight, but November 2011 was the second-best November on record, with levels just behind those reached in November 2005. TransCore began recording data in 2001 when TransCore acquired Link Logistics.
Equipment postings in November were up 5% from October, however, the lowest levels for any November since 2005. Capacity was 8% below recorded levels for November 2010.
There was no change in the equipment-to-loads from volumes reached in October.
(Story: JOC Online • Video: EuroNews)
International airlines traveling to and from EU must pay for emissions, court rules
Europe’s highest court on Wednesday upheld the European Union’s right to make international airlines pay for carbon emissions on flights to and from European airports, risking a trade war between the EU and the U.S., China and India.
The European Court of Justice rejected arguments by U.S. airlines that the EU’s emissions trading scheme infringes the sovereignty of other nations and flouts international aviation pacts. “The directive including aviation activities in the EU’s emissions trading scheme is valid,” the Luxembourg-based court said. “Application of the emissions trading scheme to aviation infringes neither the principle of customary international law at issue nor the open-skies agreement” covering trans-Atlantic flights. Read more here.
C360 – Person (Importer) failed to account for all imported goods at time of the release request.
The purpose of this bulletin is to inform internal (CBSA employees) and external clients (importers, brokers and service providers) of the revisions made to Contravention C360 guidelines.
The CBSA added information to explain the importance of accounting for goods thus ensuring the health and safety of Canadians. When an importer fails to account for goods, the CBSA is unable to risk assess the goods. An unknown commodity is a high risk commodity and C360 is the applicable penalty to be applied to importers who do not account for goods on interim or final accounting at time of the release request.
Information was added to explain why carriers cannot account for goods on behalf of an importer in accordance with the Broker Licensing Regulations, and Memorandum D1-6-1, Authority to Act as Agent.
Two scenarios were added to provide examples of properly administering C360 vs. C005. C360 is administered for failing to account for goods, while a C005 penalty may be applicable for discrepancies related to the accounted goods, for example a discrepancy regarding the quantity.
The Agency added information regarding the Y50, Reject Document Control process, as a necessary step in order to reach a final release decision regardless of the application of an AMPS penalty.
Information was added regarding goods requiring a permit, licence or other documents or information normally attracting a C071 penalty.
The Agency added references to direct officers to the other following contraventions:
• For missing permits, licences or certificates required by Other Government Departments, see C071.
• For contraventions relating to undervaluation through false written receipts or documents, see C348.
• For failure by a carrier to report goods under section 12 (1), see C021.
• For failure by a person who does not use the services of a carrier to report goods under section 12 (1) and (3), see C366.
• For failure to account for imported goods found during a trade compliance verification or audit, see C070.
• For administrative type errors, see C005.
For the full guidelines review, please refer to the Master Penalty Document.
Enquiries and comments about this bulletin should be directed to:
Horizontal Border Programs Unit
Canada Border Services Agency
Ottawa, ON K1A 0L8
(Winnipeg Free Press – Stephen Blank)
Stephen Blank is a senior fellow, Macdonald-Laurier Institute and Center for North American Studies, American University Roosevelt Island, New York City
Ten months after announcing a new commitment to enhance security while thinning the border and expediting trade and travel, U.S. President Obama and Canadian Prime Minister Harper released the Beyond the Border Action Plan early in December.
The key areas of co-operation laid out in the plan would create new integrated programs to enhance security (by addressing threats early, improving cross-border law enforcement and developing new infrastructure and cyber-security capacities) and to facilitate trade, economic growth and job creation (by improving border management).
At the same time, the two leaders directed the creation of a United States-Canada Regulatory Co-operation Council (RCC) to increase regulatory transparency and co-ordination between the two countries.
The measures announced in the action plan are totally appropriate and unexceptional. They have been on the table for years and could (and should) have been put in place long ago. Read more here.
The Export Controls Division of Foreign Affairs and International Trade Canada has updated the Export Control List (ECL) and accompanying “A Guide to Canada’s Export Controls”. These changes came into effect on December 16th, 2011. The amendments serve to control, clarify controls over or to remove from control specific items and to ensure currency of Canada’s export controls of strategic items pursuant to multilateral obligations.
Click here for a list of changes and corrections to the list. The updated Export Control List Regulation will be printed in the Canada Gazette Part II later this month. “A Guide to Canada’s Export Controls – June 2010” is now available from the Export Controls Division by emailing TIE.email@example.com.