Thompson Ahern E-News

U.S. Governors to Host Canada's Premiers at Influential Event

2009-12-21T09:09:00.000-08:00

(The Canadian Press - Lee-Anne Goodman)

Amid increasing U.S. trade protectionism, Canada's premiers will get a moment in the spotlight at the influential National Governors' Association winter meeting, a gathering that often serves as a guiding policy light for both Congress and the White House.

Saskatchewan Premier Brad Wall is co-hosting an event during the meeting entitled Common Border, Common Ground, focusing on touchy Canada-U.S. issues that include trade, border security and energy. It's the first-ever meeting between the association and its Canadian counterpart, the Council of the Federation.

“This historic meeting between NGA and COF is an opportunity to build lasting relationships,” reads the invitation from Wall and Jim Douglas, governor of Vermont and chairman of the association. It goes on to “strongly encourage” all governors to attend the February 20 event. Read more here.

Tips on Crossing the U.S. Border Over the Holidays

2009-12-18T11:05:00.000-08:00

(Thompson Ahern)

Plenty of Canadians will be crossing the land border into the U.S. this holiday season which prompted U.S. Customs and Border Protection to issue a press release offering some helpful pointers to make it a smoother process.

Here are their tips as listed in the CBP press release:

1) Travelers should familiarize themselves with the “Know Before You Go” section of the CBP website to avoid fines and penalties associated with the importation of prohibited items.

2) Travelers should prepare for the inspection process before arriving at the inspection booth. Individuals should have their approved travel documents available for the inspection and they should be prepared to declare all items acquired abroad.

3) Members of the traveling public should consult the CBP website site to monitor border wait times for various ports of entry. Information is updated hourly and is useful in planning trips and identifying periods of light use/short waits. During periods of heavy travel, border crossers may wish to consider alternative, less heavily traveled entry routes.

4) Travelers should plan to build extra time into their trips in the event they cross during periods of exceptionally heavy traffic.

5) Know the difference between goods for personal use vs. commercial use. For more details, visit www.cbp.gov/travel.

6) Do not attempt to bring fruits, meats, dairy/poultry products and firewood into the United States from Canada without first checking whether they are permitted.

7) Understand that CBP officers have the authority to conduct enforcement examinations without a warrant, ranging from a single luggage examination up to and possibly including a personal search. Even during the holiday travel season, international border crossers should continue to expect a thorough inspection process when they enter the U.S. from Canada.

For more information, please visit www.GetYouHome.gov or www.cbp.gov.

Canada Will Sign Its Most Comprehensive Air Agreement Ever

2009-12-18T11:04:00.000-08:00

(EarthTimes)

Canada’s Transport Minister, John Baird, today [Thursday] announced that Canada’s air transport agreement with all 27 European Union (EU) Member States will be signed and finalized tomorrow in Canada. This agreement is the largest and most comprehensive that Canada has ever negotiated, and concludes the process first launched by Prime Minister Stephen Harper.

“Our government has moved at an unprecedented pace since 2006 to negotiate or expand air travel agreements with other countries, and we are proud to now be signing our largest ever with the European Union,” said Baird. “For the first time, Canadian air carriers will be able to access and expand into all EU member states, and EU carriers will be able to expand into Canada. The result will be better air travel choices for Canadians and new opportunities for Canadian businesses by 2010.”

“The EU is Canada’s second largest bilateral aviation, trade and investment market. In 2008, Canadian exports to the EU totalled $52.2 billion, an increase of 3.9% from 2007. This comprehensive air transport agreement will help boost Canada’s economy by creating new jobs, expanding our commercial links and building connections for our citizens,” said Stockwell Day, Minister of Trade. Read more here.

Business Groups Oppose “Buy American” in Jobs Bill

2009-12-17T14:50:00.000-08:00

(Forbes – Doug Palmer, Reuters)

U.S. business groups urged congressional leaders Wednesday to avoid a “Buy American” mandate in legislation aimed at creating jobs and helping the economy’s recovery from the worst recession since the 1930s. In a replay of a fight earlier this year over the $787 billion American Recovery and Reinvestment Act, a coalition of nearly 30 business groups warned that requiring projects funded by the jobs bill to use only American-made goods would undermine, rather than foster, U.S. job growth.

“We are very disappointed to see Congress ginning up more ‘Buy American’ rules in this jobs bill,” Bruce Josten, executive vice president of government affairs for the U.S. Chamber of Commerce, said in a statement. “They will be as counterproductive as those in the recovery act.”

The House is expected to vote soon on a jobs bill that includes $48 billion for ready-to-go construction projects… Read more here.

New Exporters to Border States (NEBS) Mission to Buffalo, February 17-18, 2010

2009-12-17T09:54:00.000-08:00

(Ontario Ministry of Economic Development & Trade)

You are cordially invited to participate in the next NEBS Mission to Buffalo on Wednesday, February 17 and Thursday, February 18, 2010.

NEBS is a cost-effective program ideally suited for anyone involved in export development to the U.S., whether working in a management, inside or outside sales, marketing or business development position. It offers practical, hands-on information on the fundamentals of exporting to the United States by combining expert briefings on such topics as U.S. banking, legal and tax considerations, immigration issues, U.S. customs clearance procedures, logistics and regulatory requirements. The mission also includes site visits to a U.S. customs border entry point and warehousing facility.

If your company has been in business for at least one year and has a manufacturing or service base in Ontario, and you are interested in obtaining additional information on this program, please complete the attached form and fax it to the fax number provided.

Preparing for the HST – January 26, Toronto

2009-12-16T22:01:00.000-08:00

(IE Canada)

Effective July 2010, companies that do business in Ontario and British Columbia will be faced with the harmonized sales tax (HST), a single tax combination of the PST and GST. The HST has the potential to affect cash flow, software and systems requirements, and human resource planning.

Yet, out of almost 500 executives surveyed recently by KPMG, only 17% felt they were well prepared for the new Ontario HST.

Put yourself in the lead by preparing now.

Join I.E.Canada on January 26 at a breakfast seminar hosted by KPMG. Tax expert John Bain will provide an up to date briefing on the HST focusing on key issues for importers and exporters. The presentation will consider the HST transitional rules, cash-flow implications and other compliance issues.

Register today. Facing these challenges and getting an early start on the transition could put you ahead of the competition. To register, please click here: here and for further details, please click here.

2010 Customs Tariff Now Available Online

2009-12-16T20:24:00.000-08:00

(CSCB)

The 2010 Customs Tariff is now available in PDF format, chapter by chapter; as a single PDF; and in MS Access format here.

2010 CBSA Compliance Verification Priorities

2009-12-15T22:05:00.000-08:00

(Thompson Ahern)

The Canada Border Services Agency, Compliance Management Division has released its list of national priorities for verification in the coming year.

The selection of post-release verification priorities for trade programs is intended to support the CBSA’s risk-based approach that allows the Agency to ensure compliance with trade legislation and regulations while helping to provide a level playing field for Canadian businesses by ensuring the accuracy of trade data and the proper assessment, collection, relief and deferral of duties and taxes.

The CBSA has identified 14 national verification priorities so far for 2010 are as follows:

Valuation verification

• Plastic household goods

Tariff Classification verification

• Magnesium sulphates
• Cotton yarn
• Copper and articles thereof
• Stone vs. articles of stone
• Reclaimed rubber
• Furniture parts
• Gloves
• Soap

Origin verification

• Vegetable fats and oils
• Articles of bedding and similar furnishings
• Perfume and toilet water industry
• Mattress upholstery
• Electric generators

Importers of the foregoing commodities that are being targeted by the CBSA in 2010 would be well-advised to immediately begin reviewing all aspects of their compliance procedures, especially as they relate to the applicable areas of concern (i.e., valuation, tariff classification, and origin determination) in order to minimize potential risk exposure.

CN Rail, Union Seek Arbitration After Talks Fail

2009-12-14T22:09:00.000-08:00

(Cargonews Asia)

Canadian National Railway and the union representing 1,700 locomotive engineers will submit unresolved wage and benefits issues to binding arbitration after talks failed to yield a deal, Reuters reported.

Canada’s largest railway resumed labour talks with the Teamsters union on December 3 after a brief strike. The company and union had agreed to put outstanding issues to binding arbitration if no agreement was reached.

CN said talks ended on Saturday without a settlement. “The federal minister of labour will now appoint an arbitrator, who will have 90 days following his or her appointment to report to the minister with a final decision on a new collective agreement,” the company said in a statement. “Nothing precludes CN or the (union) from agreeing to further negotiations once the arbitration process starts.”

The railway said no further strike action is permitted under the dispute resolution mechanism, nor can CN lock out the union.

Lawmakers Urge Buy American Mandate in Jobs Bill

2009-12-10T08:47:00.000-08:00

(Reuters – Doug Palmer)

A proposed bill to help create new U.S. jobs should include strong “Buy American” provisions, even though that may be viewed as a protectionist move, two lawmakers said on Tuesday.

“If we are going to pass a strong job creation bill then it only makes sense to include strong Buy American provisions to further ensure that the jobs ... are created within the United States,” lawmakers Bruce Braley and Mike Michaud said in a letter to House of Representatives leaders. The lawmakers are the heads of two separates caucuses in the House aimed at keeping jobs in the United States.

Congress is mulling spending from $75 billion to $200 billion on projects to help put workers back on the job and bring the U.S. unemployment rate down from 10%. Read more here.

Ahern Promises Phased ‘10+2’ Enforcement

2009-12-10T08:40:00.001-08:00

(CSCB – American Shipper)

The following is excerpted from the 9 December 2009 edition of “American Shipper”

U.S. Customs and Border Protection will not use a heavy hand to enforce the Importer Security Filing when the agency lifts its moratorium on issuing penalties for the advance commercial data requirements early next year, Acting Commissioner Jayson Ahern assured more than 800 import-export professionals on Tuesday.

The rule went into effect on January 26 and CBP gave importers and their logistics service providers a year to adapt their systems and processes before beginning enforcement measures.

Under ISF, importers must electronically submit 10 types of information identifying partners and locations responsible for moving a shipment via an ocean container from an overseas manufacturing site to a U.S. receiver – and do so 24 hours prior to vessel loading. Ocean carriers are to provide two sets of data related to their handling of the container.

The import community has faced enormous challenges preparing for the “10+2” rule, most notably tracing back the information to various suppliers, investing in systems to collect the data earlier than ever before and transmitting it to CBP through an approved information pipeline. Read more here.

Controversial HST Bill Passed in Ontario

2009-12-09T08:52:00.000-08:00

(CBC News)

Legislation to create a single 13% sales tax in Ontario passed third and final reading Wednesday despite strong objections and delaying tactics by the Opposition. Finance Minister Dwight Duncan told the legislature that blending the five per cent goods and services tax with the provincial tax will lower costs for businesses, allowing them to cut prices for consumers and hire more staff.

“Doing nothing is not an option [and] the status quo is just absolutely the wrong thing,” Duncan said in third-reading debate. “This package will create jobs.” The government estimates the harmonized sales tax (HST) will help create almost 600,000 jobs in Ontario over the next decade.

In an interview from Mumbai, India, Premier Dalton McGuinty said he is convinced the HST is critical to help reposition Ontario as it comes out of a recession in which the province lost hundreds of thousands of jobs.

“I think people understand in their heart of hearts that our world has changed and the old world is not coming back,” said McGuinty. “There are a number of things that we need to do to adjust to the new reality and secure a better future for our families, and one of those is to put in place a modern, competitive tax system.”

The opposition parties failed to convince the government to hold public hearings on the HST bill across the province, and accused the Liberals of being afraid to face a voter backlash against the new tax. The Liberals used their majority “to ram through the HST bill as quickly as possible and with little debate as possible,” said NDP Leader Andrea Horwath.

The Progressive Conservatives reluctantly admitted defeat after weeks of trying to block the HST, including a 44-hour occupation of the legislature by two Tories, asking for frequent votes to delay proceedings, and repeatedly calling McGuinty a liar. Read more here.

Replacement of CBSA Facilities at the Sault Ste. Marie International Bridge

2009-12-07T09:41:00.000-08:00

(Canada NewsWire)

The Federal Bridge Corporation Limited (FBCL), a Crown corporation, and the St. Mary's River Bridge Company (SMRBC), the Canadian owner of the Sault Ste. Marie International Bridge and a wholly-owned subsidiary of FBCL, wish to inform the public that the detailed design for the replacement of Canada Border Services Agency (CBSA) facilities at the Sault Ste. Marie International Bridge will begin in December 2009.

The existing CBSA facilities at the Sault Ste. Marie International Bridge need to be replaced as the buildings are overcrowded, functionally obsolete and operationally deficient.

An environmental assessment was initiated by FBCL in July 2007 and signed off in June 2009.
Funding of approximately $44.1M has been allocated by the federal government in early fall through the Gateways and Border Crossings Fund. The project's design and construction activities will be spread over approximately five years.

For Mr. James McIntyre, Chairman of SMRBC, “The replacement of the CBSA facilities is made possible through a $44M contribution agreement between SMRBC and the Government of Canada to cover the costs. While some purchases of lands have been completed, the remaining land acquisitions necessary are underway and are expected to continue in 2010-2011”.

Four-Year Delay Seen for New Detroit Bridge

2009-12-07T09:05:00.000-08:00

(Journal of Commerce – Courtney Tower)

Canada approves environmental study but lawsuits delay cross-border span

Canada last week achieved a critical milestone toward building the $3 billion Detroit River International Crossing. But the final opening still faces at least four years of delay by the most hopeful calculation from 2013 to 2017.

Canadian authorities gave their final approval in an exhaustive environmental process which has lasted several years since federal and local governments decided to build a new bridge two miles upriver from the 80-year-old Ambassador Bridge. The same U.S. process ended in approval early this year. The two environmental approvals would normally allow the project to go ahead.

Even four extra years can become more if there are further delays from a huge tangle of lawsuits in U.S. courts or from renewed opposition in the Michigan legislature, where the private owner of the venerable Ambassador Bridge, Manual Moroun, has several supporters. Moroun wants to build his own new span and stop the public DRIC. Read more here.

Four-Year Delay Seen for New Detroit Bridge

2009-12-07T09:01:00.000-08:00

U.S. Customs Extends Drawback Comment Period

2009-12-04T09:56:00.000-08:00

(Journal of Commerce Online – R.G.Edmonson)

Proposed change would eliminate drawback on goods subject to excise taxes

Exporters and other interested parties have an additional month to tell Customs and Border Protection what they think about a controversial change in drawback regulations. The agency on Wednesday extended the comment period past the original deadline of December 14 to January 12, 2010, on a proposed rule change that would keep importers from claiming drawback on goods subject to U.S. excise taxes.

Companies have been able to recover 99% of the excise taxes they pay on imported goods if they export “commercially interchangeable” products. It’s widely used in the alcohol, tobacco and petroleum industries. Read more here.

Revised: Memorandum D11-11-3 Advance Rulings for Tariff Classification

2009-12-04T09:49:00.000-08:00

(CBSA)

This memorandum supersedes Memorandum D11-11-3, Advance Rulings for Tariff Classification, dated April 1, 2003. This memorandum has been revised in accordance with the Government of Canada’s Paper Burden Reduction Initiative. The revisions are aimed at eliminating obsolete and duplicated requirements and modifying complex policies.

Deal Close on ‘Buy USA — With Strings

2009-12-04T09:46:00.000-08:00

(Toronto Star)

There has been a breakthrough in talks between Ottawa and Washington aimed at resolving a dispute over a protectionist U.S. policy known as Buy America, according to a source close to the negotiations.

A tentative deal is ready to go to the desks of Prime Minister Stephen Harper and President Barack Obama, the source said, but both could still face significant political obstacles in winning support for the deal. […]

The compromise would for the first time guarantee that U.S. manufacturers could bid on supply contracts being awarded by provincial and municipal governments in Canada, the source said. Read more here.

Carbon Border Measures Seen Breaking WTO Trade Rules

2009-12-04T09:45:00.000-08:00

(Reuters – Jonathan Lynn)

Border measures to protect domestic manufacturers from unfair foreign competition as part of climate change legislation could run foul of global trade rules, a Brussels think tank said on Thursday. Such border measures could also be economically unworkable, said Fredrik Erixon, director of the ECIPE research institute.

"Many countries are going to think twice because they know they are going to unleash quite hard responses, very likely retaliation, from other countries," Erixon told a conference call about a study on trade and climate. "It is difficult to see how they are going to be squared with basic rules," he said. Read more here.

The full ECIPE paper can be accessed here. (PDF — 31 pages)

Customs Notice CN-09-023: Release of Canadian Automated Export Declaration 2010

2009-12-04T09:43:00.000-08:00

(CBSA)

1. The purpose of this notice is to inform exporters that the 2010 version of the Canadian Automated Export Declaration (CAED) software will be released on December 17, 2009.

2. The 2009 version of CAED will expire on January 31, 2010. CAED participants should upgrade to CAED 2010 by downloading the software from the CAED Web site here.

3. Please note that the "Currency of Declared Value" field in CAED 2010 has been modified. It will now be possible to use the Canadian dollar ($CAN) or the United States Dollar ($USD) in the "Currency of Declared Value" field. To convert other currencies to the Canadian dollar ($CAN), exporters may use the exchange rate tool on the Bank of Canada website.

4. Operating systems that will be supported by CAED 10 include Win2000, Windows XP and Windows Vista.

5. Please note that the CAED software will be fully compatible with Windows 7 with the release of version 10.5 which is slated to be released in late summer 2010. For further information regarding the compatibility of the CAED with Windows 7, please contact the CAED Helpdesk at Statistics Canada at the number listed bellow.

6. The release notes for CAED 2010 will be available on the Statistics Canada CAED Web site here.

7. For more information about CAED, contact the CAED Helpdesk at Statistics Canada by telephone at 1-800-257-2434 or 613-951-6291 for calls outside North America, by email at export@statcan.gc.ca or visit the CAED website.

8. For more information about export reporting, contact the Border Information Service (BIS) throughout Canada at 1-800-461-9999 (English) and 1-800-959-2036 (French). If you are calling from outside Canada, you can access BIS by calling 204-983-3500 or 506-636-5064. Long distance charges will apply.

Please direct any questions regarding this notice to:
Export Process Licensing,
Export and Accounting Policy Division, Admissibility BranchCanada Border Services AgencyTelephone: 613-954-7160 • Facsimile: 613-946-0241
Email: export@cbsa-asfc.gc.ca

DRIC Bridge Hurdle Cleared

2009-12-03T09:58:00.000-08:00

(Video: Michigan DOT • Story: Chris Vander Doelen — Windsor Star)

The last major legal hurdle in the way of a new $5 billion publicly owned bridge over the Detroit River has been cleared, removing one of the last barriers to the start of one of the largest construction projects in Canadian history.

Transport Canada will announce today that it has won full approval for the wide-ranging Environmental Assessment it has prepared for the Detroit River International Bridge project.

Years in the making, the approval is to be announced this morning, a reliable federal source confirmed to me Wednesday afternoon. Read more here.

U.S., Canada Boost Security Ties

2009-11-25T10:00:00.000-08:00

(AFP)

U.S. and Canadian safety chiefs vowed Tuesday to jointly combat organized crime and violent extremism in a bid to boost legal travel and trade across their shared border.

“Close cooperation and coordination between the United States and Canada is critical to the national and economic security of both nations,” US Homeland Security Secretary Janet Napolitano said in a statement. Napolitano said she and her Canadian counterpart, Public Safety Minister Peter Van Loan, were “committed to working together to combat transnational threats and facilitate lawful travel and trade on both sides of the border.”

The pair met in Washington for the second of their formal biannual meetings, on the heels of three other rounds of talks this year. In an effort to bolster trade and security, they agreed to streamline and harmonize border shipping, create new guidelines for maritime emergency cooperation, enhance efforts against human trafficking and increase cooperation to protect infrastructure and counter violent extremists. Read more here.

Changes in Processing U.S. Meat Shipments at the Border

2009-11-16T10:14:00.000-08:00

(CBSA)

Memorandum to Importers/Brokers/Carriers/Inspection Facility Operators/Associations

Subject: Discontinuation of the practice of advance notification of inspection of U.S. meat imports.

The following is to inform you that as of January 4, 2010, the Canadian Food Inspection Agency (CFIA) will discontinue the practice of providing advance notification of inspection of US meat imports. This change in procedure is in line with the Government of Canada Food Safety Action Plan. Canada has full confidence in the safety of food imported from the USA. This change will make Canada’s food safety system stronger and will move Canada a step closer to full harmonization with US meat import controls

All meat shipments from the USA are inspected and certified by U.S. Department of Agriculture (USDA) authorities prior to exportation to Canada. Importers/Brokers can submit their import requests to the CFIA Import Service Centres (ISC) for documentation review up to 72 hours in advance of the actual shipment arrival. This procedure will continue to apply.

Starting January 4, 2010, when a meat shipment is presented for electronic release, the CFIA Import Service Centre (ISC) will transmit a message to the Canada Border Services Agency (CBSA) indicating if the shipment has been selected for an inland CFIA inspection. If the shipment is identified as a “skip lot” it will be allowed to proceed to its manifested destination.

It should be noted that ALL meat shipments that are presented on a paper release will be directed to report to a CFIA approved facility inland for inspection.

If an inland CFIA inspection is required, the CBSA Border Services Officer (BSO) at the Primary Inspection Line (PIL) will affix a special CFIA stamp (similar to the attached specimen) on the import documentation which will serve as notice to the Carrier to report inland for CFIA inspection.

As all US meat shipments must be released by the CBSA at the border, the BSO will continue to stamp the import documents with a customs release stamp.

The onus will be on Importers/Brokers to ensure that their Carriers are aware of this new procedure and that they know where to report in the event that their shipment has been selected for CFIA inspection. The Importers/Brokers are to provide the Carriers with the location and directions to the meat inspection facility that has been pre-selected by the importer prior to crossing the border.

Should you have questions regarding these new procedures, contact a CFIA Import Service Centre

Canadians Cry Foul as Buy American Policy Hits Home

2009-11-14T10:12:00.000-08:00

(Toronto Star)

U.S. firms do thriving business in Canada as Obama policy shuts us out, owners say

As the poster boy for Buy American, steel industry executive Dan DiMicco is a leader in the campaign that is keeping Canadian companies from bidding on highly valuable urban renewal projects south of the border. But his North Carolina-based corporate giant continues to sell millions of dollars of structural steel in Canada every year with no problem.

The advantage enjoyed by Nucor Corp. and other huge U.S. companies has Canadian manufacturers up in arms, saying they are being barred from bidding on contracts in the U.S. even as American companies with free access to the Canadian market are beating them out for business here at home.

Their complaints have grown all the more urgent as efforts by Prime Minister Stephen Harper’s government to win an exemption for Canadian firms from Buy American in the U.S. have bogged down at the negotiating table.

John Hayward, who runs an industrial equipment plant in Halton Hills, said U.S. President Barack Obama talks about the importance of free trade “but the actions just aren’t matching up with the words. Read more here.

Industry Minister Clement to Explore Improved Trade Relations During Visit to Israel

2009-11-13T10:11:00.000-08:00

(Industry Canada)

The Honourable Tony Clement, Minister of Industry, will arrive in Tel Aviv tomorrow [Saturday] to begin five days of meetings that will focus on Canada–Israel trade relations and developments in the field of water technologies.

“This year marks the 60th anniversary of relations between our two countries and the 12th anniversary of the Canada–Israel Free Trade Agreement,” said Minister Clement. “I am hoping that our visit may lead to even closer cooperation and serve to demonstrate to companies here that Canada is a good place to do business.”

One of the highlights of the trip will be the Minister’s attendance at the International Water Technologies, Renewable Energy and Environmental Control Exhibition (WATEC). The Minister is scheduled to address WATEC on the significant initiatives Canada has undertaken, both domestically and internationally, in the field of water technologies. Read more here.