A new European Parliament resolution has taken aim at Canada’s decision to re-impose visa requirements on the Czech Republic two years ago…
(Embassy – Anca Gurzu)
European Parliament resolution applies fresh pressure
A new European Parliament resolution has taken aim at Canada’s decision to re-impose visa requirements on the Czech Republic two years ago, directly linking the issue with the ongoing Canada-EU trade talks.
While experts say that threat only amounts to political pressure at this point, even top officials acknowledge the visa issue remains a potential stumbling block and should not be dismissed.
In a March 8 declaration, members of the European Parliament expressed “solidarity with the unequal status of Czech citizens” and called on the European Commission and the European Council “to increase political pressure on Canada in order to set the earliest possible date for abolishing the visa regime for Czech citizens.” The Parliament’s document notes that any further “delay in the termination of the unequal status of Czech citizens could threaten the future ratification of the Comprehensive Economic and Trade Agreement between the EU and Canada.” Read more here.
A new bilateral Industrial Security Arrangement with Spain opens new trade opportunities for Canadian industry to do business in Spain.
(PWGSC)
The Honourable Rona Ambrose, Minister of Public Works and Government Services and Minister for Status of Women, [Friday] announced the signing of a bilateral Industrial Security Arrangement with Spain, which opens new trade opportunities for Canadian industry to do business in Spain.
“It is a priority of the Government of Canada to provide small businesses with the tools and advantages they need to succeed in today’s international market,” said Minister Ambrose. “This arrangement aims to create new opportunities for Canadian businesses, especially those small- and medium-sized enterprises that are the backbone of our economy.”
(Sheldon Alberts — Montreal Gazette/Postmedia News)
Prime Minister Stephen Harper and U.S. President Barack Obama are seeking a sweeping deal to establish a North American security and trade perimeter, opening talks Friday that could lead to jointly operated Canada-U.S. border facilities, an integrated entry-exit system to track travellers and the deployment of “cross-designated” law enforcement officers to intercept terrorists and criminals.
Harper touted the plan as vital to both the safety and prosperity of Canadians, even as critics expressed concerns a future agreement with the U.S. could compromise the nation’s sovereignty.
“This declaration is not about sovereignty. We are sovereign countries who have the capacity to act as we choose to act,” Harper told reporters following an hour-long White House meeting with Obama.
“It is in Canada’s interests to work with our partners in the United States to ensure that our borders are secure and ensure that we can trade and travel across them as safely and as openly as possible, within the context of our different laws. And that is what we’re trying to achieve…” Read more here.
Cyndee presents the A-Z list of topics related to trade agreements in light of the Canada – EU trade negotiations that are underway.
This blog posting on the ABCs of the Canada-European Comprehensive Economic and Trade Agreement (CETA) can be adapted for most free trade agreement negotiations. As the 6th Round Canada-EU CETA negotiations is starting on January 17, 2011 in Brussels, I have realized that many do not understand the basics of free trade agreements — I hope this blog post helps.
A communication with a long time friend and experienced and certified trade professional lead to an awareness that a major manufacture did not know what assists were! They were looking for help to correct the situation.
This article came about because in the course of communicating with a long time friend and experienced and certified trade professional we found a major trailer manufacturer who didn’t know what assists are!
We continue to reference ‘assists’ on every importer meeting as most people don’t appreciate/comprehend the implication. Let’s face it ‘in Canada we all think of assists as something related to reward for the person passing the puck to the goal scorer’ 
Seriously though any input to the manufacturing process that an importer provides is to be included in the value of the goods. Most common references relate to tools, die’s, etc. that are provided to a manufacture in order to make a part for an importer. That could even be as simple as a ‘sticker’ applied to a product, where the sticker was supplied by the importer.
CBSA – Non-Bonded Carrier Code Application Process
It will be anticipated that importers and low value carriers (who don’t have carrier codes) will be inquiring about how to obtain one as CBSA is set to expire the 77YY generic code at the end of March. Below outlines the process and required documents
The Canada Border Services Agency (CBSA) requires these documents in order to process a non-bonded carrier code application:
* Application form (bsf329-7) – Form Link bsf329-7 – Highway
* Proof of ownership documents
o Documents may include articles of incorporation, business registration documents, or any documents notarized by the company’s respective province or state.
o Sole proprietorships must submit a photocopy of government issued photo ID with company name indicated on the copy if different from proprietor’s name.
Updates on AMPS penalties proposed changes
The Canada Border Services Agency (CBSA) has issued a notice to the Border Commercial Consultative Committee (BCCC)’s AMPS subcommittee regarding an update on the proposed changes to the failure to correct accounting trade penalties (C080, C081, C082, C083, C350, C351, C352 and C353) that were discussed at the last AMPS subcommittee meeting on September 27th, 2010.
The following update has been provided:
CBP Periodic Payment – An Opportunity to Manage Cash Flow
Opportunity Defined
During a recent meeting I became aware that there was another strategy we could share related to ones International Trade Strategy, it comes courtesy of our USA division GHY USA, Inc. and Vicki Deluca, Vice President, Operations.
The opportunity has to do with Cash Flow, so if falls under the F for Financial in the FACTS based approach I have introduced before when analyzing your trade compliance program and performing a GAP analysis. The entire process GHY International use is documented here.
Customs Notice 10-024: Release of Canadian Automated Export Declaration 2011
Customs Notice 10-024: Release of Canadian Automated Export Declaration 2011
(CBSA)
1. The purpose of this notice is to notify exporters that the 2011 version of the Canadian Automated Export Declaration (CAED) software has been released on December 6, 2010.
2. The 2010 version of CAED will expire on January 30, 2011 at which point, only the 2011 version will be valid. CAED participants should upgrade to CAED 2011 by downloading the software from the CAED website.
3. The 2011 version of the CAED software has been completely redesigned using the Microsoft.NET application framework. System requirements now include the Microsoft.NET framework 3.5 and the Microsoft Office Access 2007 Data Connectivity Components. When these 2 components are installed, the installation of the downloaded CAED software can proceed. Refer to the CAED website and the installation guide for more details on CAED system requirements.
if you need to file B13A documents to Canada Border Services Agency (CBSA) prior to export, free Canadian Automated Export Declaration software.
I recently came across a situation that I thought it was useful to share with all as a reminder that if you need to file B13A documents to Canada Border Services Agency (CBSA) prior to export, that Statistics Canada and CBSA did create a Canadian Automated Export Declaration software that is free to download and use.
The software features include:
- user-friendly
- free of charge
- automates the preparation
- Harmonized system commodity classification search
- built-in encryption
- memorizable screens
- extensive on-line help
- Internet transmission capabilities
The user has a choice to use CAED as a stand-alone application or in a multi-user environment (LAN).
For more information or to download the CAED application: Canadian Automated Export Declaration (CAED) – Overview.
Canada’s initiatives to foster greater cooperation between research universities and the business community, as well as a pending comprehensive trade agreement with the European Union, could open doors for Atlanta companies.
Canada’s initiatives to foster greater cooperation between research universities and the business community, as well as a pending comprehensive trade agreement with the European Union, could open doors for Atlanta companies, Canadian Minister of Industry Tony Clement told GlobalAtlanta.
The Canadian government is investing heavily in research and development laboratories in an effort to attract talent to Canadian universities. It wants to see more collaboration between the academic community and business, especially in the areas of energy and environmental research.
Georgia universities and companies are invited to participate, Mr. Clement said during an interview at the Americas Competitiveness Forum in Atlanta, Nov. 15.
But the “big elephant in the room” is the Canada-European Union Comprehensive Economic and Trade Agreement that is expected to be ratified by the end of 2011, Mr. Clement added. Georgia companies will be able to use this “massive trade deal” as a “gateway to the EU and vice versa,” he said, noting that companies that operate in Canada will have opportunities for free trade with more than 500 million European consumers.
“This trade deal is not at the top of mind with many media, nor is it part of our political discourse yet, but it’s going to be huge,” he said.
For the complete article: click here
Our advice to importers and carriers is to be proactive in understanding how eManifest impacts their supply chains, and to work at fully implementing the program well before the mandatory period begins, when penalties will be applicable, and unnecessary stresses imposed, that will ultimately have negative commercial consequences.
Our friends at Thompson Dorfman Sweatman LLP, or TDS law have spent some time looking into the new regulations in Canada surrounding the implementation of e-manifest. During the research of this piece Reynold Martens, Executive VP of GHY International and author of the white paper titled “A Case for An Integrated Trade Compliance Strategy”, was consulted for his insight on this matter.
This and other hot topics are presented in their most recent newsletter. You can read their newsletter here.
About Thompson Dorfman Sweatman LLPThompson Dorfman Sweatman LLP (TDS) is one of the leading full-service business law firms in Manitoba, with over 120 years of history providing legal services to its clients locally, nationally and internationally. From our offices in Winnipeg, Manitoba, TDS has the expertise necessary to help clients take advantage of every opportunity and to develop creative solutions to legal challenges experienced in their business in a timely and cost-effective way. The full-service firm’s seventy-eight lawyer team covers over 20 areas of practice and offers services in seven languages including English, French and Spanish. TDS has long been recognized as a centre of excellence in the areas of business law, labour relations law, employment law, civil litigationand dispute resolution. LEXPERT® The Business Magazine for Lawyers recognized TDS as the leading corporate law firm in Manitoba, being the only Manitoba corporate law firm at the centre of its “Bulls-Eye” ranking of Manitoba corporate law firms. A number of our lawyers have been recognized by LEXPERT® and THE BEST LAWYERS IN CANADA® and other legal publications as being among the leading Canadian lawyers in their areas of practice.
Multiple service providers complicate the channels of communication when an importer has reason to believe from CBSA.
The Case Defined:
A large Canadian electronics speciality firm geographically divided its imports across multiple professional service providers. When Canada Border Services Agency (CBSA) did an audit they found an issue and communicated that to the importer. Upon receipt of that information, from a CBSA perspective, the importer had ‘reason to believe’ that the information they had reported was in error, and therefore a compliance issue. The importer did notify the one professional services provider to address the issue that CBSA had found on a transaction that provider had processed for them, no other communication to other parties was done, thereby leaving a compliance hole open for the importer.
Communication is Key:
The key issue is lack of communication with the 4 providers in their trade program, the communication channels of an integrated trade compliance strategy would have helped them be transparent to all providers. It also raises the issue of why they diversified so much and created a more complex trade program then necessary?
Responsibility Matrix Key Tool for Accountability
A secondary issue is that of process. How did each provider arrive at the determination of tariff? The answer again goes back to the up front strategy. We would recommend a responsibility matrix or standard operating procedures is necessary to define up front how the relationship will work and who is responsible for what, clarity of risk.
Both of these issues are addressed in an Integrated Trade Compliance Strategy. Do you need one?
It is clear that strategies of all kind appear to be critical for 2011 as the need for Integrated Trade Communities and expanding trade geographies increase, while in parallel the Agencies responsible to handle the administration of International Trade on behalf of our governments are using increased trade compliance to ensure the health, safety, and security of their citizens.
The Canadian Chamber of Commerce recently released a new white paper, Strengthening Our Ties: Four Steps Toward a More Successful Canada-U.S. Partnership.
The premise for this piece is summarized in this excerpt:
Canada and the U.S. have a long, vibrant history of cooperation and success, but it is clear that bilateral relations have drifted. At a time when the global economy is undergoing significant shifts, it is imperative that both countries recognize the advantages of the integrated North American market. Canada needs to develop a dedicated strategy for engagement in the U.S. that focuses on highlighting the gains from the bilateral arrangement and promoting free trade.
It is clear that strategies of all kind appear to be critical for 2011 as the need for Integrated Trade Communities and expanding trade geographies increase, while in parallel the Agencies responsible to handle the administration of International Trade on behalf of our governments are using increased trade compliance to ensure the health, safety, and security of their citizens.
What do you think? Are these issues real for you and your organization?
Designer Remission Order Extended
The Department of Finance has announced that on the recommendation of the Honourable James M. Flaherty, Minister of Finance, the Governor in Council approved Order in Council P.C. 2010-1414, which extends the Designer Remission Order, 2001 until December 31, 2014. The Order will be published in Part II of the Canada Gazette on December 8, 2010.
If you have any questions or comments, please feel free to contact us.
Amesika Baëta
Committee Director
I.E.Canada, Canadian Association of Importers and Exporters Inc.
160 Eglinton Avenue East, Suite 300
Toronto, Ontario M4P 3B5 416-595-5333 ext. 41
1-866-616-2243
Fax: 416-595-8226
abaeta@iecanada.com
http://www.iecanada.com
United States Customs and Border Protection estimates that 3 billion dollars per year of US import duties are eligible for drawback, of which 80% are not recovered.
Do you use imported merchandise to produce or manufacture products for export ?
Are you paying import duties on finished goods which are eventually exported ?
If the answer is “yes”, Duty Drawback is an opportunity to increase profitability and reduce costs. You may be entitled to duty recoveries and not even know it !
United States Customs and Border Protection estimates that 3 billion dollars per year of US import duties are eligible for drawback, of which 80% are not recovered.
Although there are no published statistics available from Canada Border Services Agency, it is our belief that the unrecovered amounts are also significant.
Up to 99% of all US Customs duties can be refunded on imported merchandise subsequently exported, or in some cases used to manufacture a new article for export. Duties paid up to 6 years ago may be refunded against exports over the past 3 years.
Up to 100% of all Canadian Customs duties can be refunded on imported merchandise subsequently exported, or in some cases used to manufacture a new article for export. A claim for drawback must be filed within 4 years of the date the goods were released from Customs.
The growth of off-shore and near-shore sourcing has made it increasingly important for Canadian and United States firms to adopt strategies that factor into account opportunities to reduce or eliminate cost inputs through programs like Duty Drawback.
You should talk to your professional trade services provider about filing for retroactive duty drawback claims in both Canada and USA, or to establish a new drawback program, so you can take advantage of costs savings on a regular basis.
ACI e-manifest while a tactical program by Canada’s CBSA, there are positive compliance implications for Canadian importers
The Canadian government following on the heels of the US government is finally implementing the much talked about ACI e-manifest program. While it is a tactical program which I tend to stay away from on this blog, there is a positive compliance angle that I did want to highlight. But first a short back grounder on ACI e-manifest.
October 31st was the roll out of the ACI Highway (eManifest) mandate by the Canada Border Service Agency (CBSA). ACI (Advanced Commercial Information) is Canada’s regulation requiring cross-border shippers and carriers to file electronic manifests for Canada-bound shipments one hour prior to their arrival at the Canadian border. This milestone begins the twelve month optional reporting period combined with six months of Informed Compliance. Once the optional reporting period is closed, the CBSA has indicated it will begin to impose Administrative Monetary Penalty System (AMPS) fines to those shipments that arrive at the border without a prior approved ACI filing. This week, Canadian Transportation and Logistics published an article interviewing Con-way Freight to find out what their experience has been as they were part of the CBSA’s pilot project. To read that interview click here
Alan Dewar, VP Canadian Operations, GHY International share this regarding the implementation of e-manifest in Canada:
eManifest ‘closes the loop’ of supply chain cooperation between CBSA and ‘importers/carriers/custom broker service providers’. Currently the business systems used by importers, carriers and customs brokers to communicate with CBSA rely heavily individual ‘checks and balances’. If any single party doesn’t open and close a file from pre-Arrival awareness to final accounting it is possible for trade reporting to slip through the cracks. Anything slipping through the cracks can attract Administrative Monetary Penalties at a later date when CBSA perform audit samplings.
As Mr. Dewar mentioned the compliance issue today is the AMPS penalty related to lack of verification (post audit) if a driver at the border has presented paperwork on your behalf but failed to get confirmation from CBSA. Especially an issue when you use LTL (less than truckload) freight where there are multiple shipments to a truck. According to Mr Dewar:
LTL (less than truckload) carriers particularly are embracing the benefits of eMfst. Previously document files would need to be scanned and logged individually by CBSA at time of border crossing. We’ve seen situations where a truck driver would fully present to CBSA but ‘documents would be stuck together or a scan would fail’. Administrative Penalties if undetected include a first infraction of $2,000, second infraction $4,000 and escalating from there. Imagine fully declaring to Customs at border crossing with 10 shipments where ’2 documents stuck together or failed at scan’ and incurring a fine of $6,000 ($2,000 + $4,000)? With eMfst any single shipment will automatically present the entire load to Customs for import release processing decisions. All supply chain partners are excited about the accountability and risk management benefits of eMfst.
In an ACI e-manifest world with the right provider you can have a definitive audit trail with each e-manifest that is filed. No replying on stamping and no concerns for files getting stuck together. There are some assumptions here such as the carrier must participate in the RNS (Release Notification System) to have visibility if the broker partner has filed the entry on behalf of the importer, while the carrier doesn’t have to wait for that filing in today’s world there is still ongoing discussion if the importer would be subject to a penalty on their shipment if both sides of the equation haven’t been filed in advance in order to allow CBSA proper review and targeting. We are keeping an eye on this issue and it’s compliance obligations to importers and exporters.
This again reinforces another reason why the Integrated Trade Compliance Strategy makes sense as the lines of communication and visibility as defined by the strategy would ensure that partners know who owns what and stay in communication and sync with regards to tactical issues like customs clearance and now ACI e-manifest.
In October 2010, the Centrallia event came to Winnipeg, Manitoba with over 600 registered attendees from multiple countries the event was a success. At the opening of the event, there was a general session for all attendees and Richard (Rick) Riess, President of GHY International presented on the panel along with key sponsors and hosts, the law firm TDS. The session was focused on doing business in Canada.
Rick Riess Shares Insights at Centrallia 2010
In October 2010, the Centrallia event came to Winnipeg, Manitoba with over 600 registered attendees from multiple countries the event was a success. At the opening of the event, there was a general session for all attendees and Richard (Rick) Riess, President of GHY International presented on the panel along with key sponsors and hosts, the law firm TDS. The session was focused on doing business in Canada.
Opportunities to use supply chain management to bolster overall company efficiencies are being missed in Canada because the discipline remains silo based and tactical as opposed to company wide and strategic
Since I am constantly looking for articles that talk about International Trade Compliance Strategies, I was pleased when I opened the October 2010 issue of Canadian Transportation and Logistics magazine. I read with delight the story by Lou Smyrlis in which he reports on events from the 24th Annual Transportation Innovation and Cost Savings Conference. Of interest to me was his opening report of a session lead by Mike Croza, managing partner, Supply Chain Alliance Partners, who said:
Opportunities to use supply chain management to bolster overall company efficiencies are being missed in Canada because the discipline remains silo based and tactical as opposed to company wide and strategic
How true that is, when compliance intersections are encountered because of actions that occurred between sourcing to selling, it is critical to consider an integrated trade compliance strategy in order to minimize risk and increase visibility to all stakeholders in an organization.
Lou Smyrlis goes on to share some thoughts of why this may be according to Mike Croza;
“In 2010 we still have a long way to go for supply chain management in Canada. I’m not sure why it hasn’t stuck,” Croza told
the well-attended annual gathering, held at the CNE grounds in September.Croza believes the continuing lack of focus on improved supply chain practices is symptomatic of a corporate culture that has “rested on the laurels of having a low dollar for too long” and not yet made the adjustments necessary to be competitive in the new reality of a Canadian dollar that is at par with the US greenback. Croza criticized corporate Canada for not making the necessary investments in capital equipment, information technology and management practices to remain competitive.
we cant create a dialogue if we don’t know each other, in this post we introduce the key players behind tradecompliance.ghy.com
We can’t establish a relationship if we don’t know each other:
I am Nigel Fortlage, Vice President Information Technology at GHY International. I have been in this industry since 1988 and before that I worked for an importer/distributor/Manufacture as their in-house customs specialist. For the last 16 months I have had a second hat I have been wearing in partnership with our Executive VP, Reynold Martens working on understanding the social media space and how we can connect with you in a two-way conversation. We will be specifically sharing details around the concept we have been introducing you to, an Integrated Trade Compliance Strategy. We believe by providing you good information, education and awareness that we hope to engage in a conversation that results in helping you solve problems, creating that Ah Ha moment for you, or addressing moments of truth in your international trade operations that adds value
Martin Rayner is an independent consultant with more than 27 years of diverse experience working in various operational facets of the customs brokerage and international trade logistics field. Martin has also held executive-level positions in the industry with a number of the leading trade service providers across Canada and during his career has acted in both professional advisory and advocacy capacities for companies seeking to leverage opportunities in the regulatory environment to their benefit.
Reynold Martens is Executive Vice President and Corporate Secretary of GHY International, and he is the President and co-founder of the firm’s subsidiary, GHY USA, Inc. He is the Author of the white paper titled, a Case for an Integrated Trade Compliance Strategy. Reynold is also actively involved outside of GHY, he is active in various industry and community leadership roles, including directorships with the Canadian Manufactures and Exporters Association, current chair for IE Canada Manitoba Chapter and member of the National Board
Rick Riess, President & CEO, GHY International. We can not talk about our current president and 4th Generation owner of the firm without, acknowledging the background from which he comes,
GHY–over a century old and still “Young.”
Yes it’s true. Geo. H. Young & Co. Ltd. turns 110 in 2011, making the company one of the oldest and most established privately held enterprises in Canada that continues to grow and evolve as both a pioneer and innovator in the Customs brokerage industry.
In the late 1800’s, Canada was a work in progress, with only seven provinces (Alberta and Saskatchewan joined in 1905). The young nation was struggling to protect its development by means of high tariffs on goods that were manufactured—or could be—in Canada. Duty rates of 20 – 40 percent accounted for most of the government’s revenue of about $50 million, as income taxes weren’t initiated until 1917.
At the time, George Henry Young was the Chief Inspector of Customs Ports stationed in Winnipeg. In 1901, recognizing the opportunity when he saw it, he opened one of the first brokerage houses in Western Canada. This pre-dated the automobile era, and the majority of goods moved by rail. However, the winds of change were blowing, and in 1903, Wilbur and Orville Wright took their first flight, and by 1929 the first international commercial flight into Winnipeg arrived from Minneapolis. That was likely Northwest Airlines, one of the company’s longest standing international relationships. George led the company for its first 43 years until 1944, when the reins were turned over to his son George Donald Young, known as Don.
In 1950, under Don Young’s leadership, Geo. H. Young & Co. Ltd. formally incorporated, and so began an exciting era of growth in revenue and clients. News of those years is well documented in the formal corporate minute books, which include colourful details about the business of the day, the people and events, as well as the challenges and opportunities. There is reference to some of our long-term clients who have become pillars of the Manitoba business community, and indeed some of these relationships span more than eight decades and have contributed significantly to our success.
In 1968, GHY’s leadership transitioned to Charles Riess, son-in-law to Don Young. As the Prairie economy continued to expand and with it cross-border trade, so did the company, which opened an office at Emerson, Manitoba to accommodate the growing volume of truck traffic originating in the US bound for the Prairies. Charles’ son, Richard Riess, became President in 1992, and so began an unprecedented period of growth and expansion in products, services, locations, and strategic partnerships.
Today, GHY International as it is known, is recognized as a leader in the industry for its strategic focus on trade facilitation and regulatory risk management, use of innovative technologies, solid core values, and principled approach to working with clients, associates, Customs regimes of Canada and the US, supply chain partners in all modes of transportation, and yes, even competitors.
The scope of the enterprise has expanded to include locations in British Columbia (1994), Ontario (2005), a strategic partnership in Alberta (2005), a nationally licensed US subsidiary based in North Dakota (1995), and numerous strategic partnerships. It has grown to include over 100 employees serving a client base from a broad cross-section of industries, including many top 500 companies in Canada and the US.
Canada Border Services Agency (CBSA) ranks GHY Canada 13th out of 504 reporting entities; United States Customs Border Patrol (CBP) ranks GHY USA 39th out of 2523 reporting entities; GHY Canada is the largest prairie-based member of the Canadian Society of Customs Brokers (CSCB), which includes the vast majority of Brokers in Canada.
GHY has survived the calamities of two world wars, the Great Depression, dozens of economic cycles, fast-paced growth in trade and the regulatory environment, and a technology revolution, and through all those waves of change, has been an innovator, while staying true to its core values, and maintaining a relentless pursuit of creating value for our clients.
