GHY Tradelines

2010 Customs Tariff Now Available Online

2009-12-16T13:29:00.000-08:00

(CSCB)

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

British Forwarders Slam 100% Scanning

2009-12-16T13:28:00.000-08:00

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

Group calls for risk assessed, practical, feasible approach

An official of the British International Freight Association says the United States should scrap its 100% scanning program and adopt a “risk assessed, commercially practical and technologically feasible” approach to container security.

BIFA Director John O’Connell said the Department of Homeland Security had underestimated the enormity of scanning all containers, not to mention the costs to governments and the limitations of the available technology. Read more here.

Preparing for the HST – January 26, Toronto

2009-12-16T11:41:00.000-08:00

(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.

CBP: New Ruling Excludes Certain Commission Payments from Dutiable Value

2009-12-16T08:05:00.000-08:00

(World Trade Interactive)

U.S. Customs and Border Protection has announced that as of Feb. 8, 2010, it is revoking ruling HQ H006588 on whether certain commission payments are included in the appraised value of imported merchandise under 19 USC 1401a. CBP states that since its decision to revoke is based on the specific facts of the particular matter at hand, it is not revoking or modifying any other rulings or any treatment.

In ruling HQ H006588, CBP determined that the importer did not meet its burden of establishing that payments made to a purported buying agent abroad constituted bona fide buying commissions because there was insufficient documentary evidence to establish the existence of a bona fide buying agency relationship. Consequently, the payments made to the alleged buying agent were included in transaction value as an addition to the price actually paid or payable.

CBP has since reconsidered its position in light of additional information that was made available regarding the control exercised by the importer/principal over the purported agent. The importer has also revised the buying agency agreement and a joint venture agreement relative to this matter. In light of this additional information, CBP considers that the particular payments at issue constitute bona fide buying commissions. As such, they are not included in transaction value as part of the price actually paid or payable or as an addition thereto and are not dutiable. CBP is therefore issuing ruling HQ H022168 to revoke HQ H006588.

CBP Agriculture Specialists Enforce Christmas Tree Importation Rules

2009-12-16T06:28:00.000-08:00

(CBP)

With the Christmas holiday fast approaching, U.S. Customs and Border Protection agriculture specialists working at U.S. ports of entry are busy making sure that imported Christmas trees are free from insects and pests that could harm trees in America’s national forests and neighborhood backyards.

Importing a Christmas tree from British Columbia into Washington State now requires certification from the grower that their holiday tree was grown in an area of Canada where gypsy moth and pine shoot beetle are not known to occur. Without such certification the holiday tree may be prohibited and the travelers must return their tree back to Canada. A holiday tree of any type that is found to be harboring harmful insects must also be returned to Canada.

“Although your Christmas trees may appear to be harmless, there could be hidden threats that could seriously harm our natural resources and economy,” said Chief Charles Cunningham, Customs and Border Protection agriculture specialist in Blaine, Wash.

“Our best advice to anyone wondering if they may import their Christmas tree is to please speak with a CBP agriculture specialist at (360) 332-1640 (Blaine, Wash.) or (360) 988-2971 (Sumas, Wash.) for details.” Importations of Christmas trees grown outside of British Columbia or destined to other areas of the U.S. are subject to additional regulations.

Pact Ends Decades-Old Trade Fight Over Bananas

2009-12-16T06:26:00.000-08:00

(New York Times – Reuters)

The European Union, the United States, and Latin American, African and Caribbean nations are expected to initial a deal on Tuesday ending a decades-old trade dispute over bananas, European officials said. The pact will end the longest-running trade dispute and remove a potential obstacle to a new deal to open global commerce in the World Trade Organization’s eight-year-old Doha round. Final signature is expected to take place next year. Read more here.

2010 CBSA Compliance Verification Priorities

2009-12-15T09:36:00.001-08:00

(GHY International)

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.

As outlined in this Powerpoint presentation, the CBSA has identified 14 national verification priorities so far for 2010:

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.

If assistance is needed in this regard, GHY has extensive experience in conducting pre-audit verifications and compliance risk assessments. To find out more about how we can help, contact can be Alan Dewar toll-free (1-800-667-0771) or by email.

Note: Although we are proactively contacting as many clients as possible that we reasonably believe may potentially be impacted by the CBSA’s 2011 verification agenda, this effort may be somewhat impaired due to the fact that a list of specific HS tariff items being targeted by the Agency has not yet been released. Therefore, if we haven’t managed to reach out to you as yet in this regard, please consider the commodities under review with respect to your imports and let us know if you feel there may be potential exposure to risk that may need to be addressed.

CN Rail, Union Seek Arbitration After Talks Fail

2009-12-14T09:09:00.000-08:00

(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.

Republicans Press Obama on Stalled Trade Deals

2009-12-14T09:04:00.000-08:00

(Industry Week – Agence France-Presse)

The accords could generate jobs, say supporters of free-trade deals with Colombia, Panama and South Korea

A group of U.S. President Barack Obama’s sharpest congressional critics urged him in a letter released Friday to revive stalled free trade pacts with Colombia, Panama, and South Korea in early 2010.

The accords, which have languished amid stiff opposition from Democrats and their labor-union allies, could generate jobs at a time when the U.S. unemployment rate is at a quarter-century high, the Republican lawmakers wrote.

“In the interest of supporting American job creation, we ask that you jump-start the implementation process through your leadership,” said the group, led by Republican House Minority Leader John Boehner.

The lawmakers called on Obama to promote the accords in his annual State of the Union speech – typically in late January – and pledged “to work steadfastly with you to implement each of these agreements as close to the start of next year as possible.” Read more here.

Counterfeit Goods Seizures Total Nearly 15,000 in 2009

2009-12-11T09:15:00.000-08:00

(Industry Week – Jill Jusko)

China remains the top country of origin for counterfeit and pirated goods, according to U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement

Fiscal 2009 was a busy one for the U.S. government agencies charged with keeping counterfeit goods outside the country’s borders. U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement made 14,841 seizures of counterfeit and pirated goods for the fiscal year, according to the agencies’ annual report. The domestic value of the goods was $260.7 million. (Domestic value is the cost of making the illegal goods in a foreign country, plus the shipping and other costs required to bring the merchandise in to the U.S.)

Read more here. To view the full annual report, go to Fiscal 2008 Seizure Statistics.

U.S. Protests China’s Innovation Rule, Steel Duties

2009-12-11T09:13:00.000-08:00

(Reuters – Doug Palmer)

The U.S. government joined 33 business groups on Thursday in protesting a new Chinese regulation they said promotes development of Chinese products by keeping foreign competitors out of the market.

“This is a serious concern. It is in the interests of both the U.S. and Chinese governments to promote innovation, but innovation is no excuse for discrimination,” said Carol Guthrie, a spokeswoman for U.S. Trade Representative Ron Kirk. “We are expressing our serious concerns with all appropriate counterparts in the Chinese government.”

U.S. trade officials also criticized China’s decision on Thursday to slap preliminary duties on imports of a U.S. specialty steel product. The move was seen by analysts as a response to U.S. duties on Chinese-made steel goods. Read more here.

OECD October Leading Indicator Suggests Recovery

2009-12-11T09:12:00.000-08:00

(RTT News)

Friday, the Organisation for Economic Co-operation and Development said its composite leading indicator for its member countries rose to 101.4 in October from 100.4 recorded in September, suggesting recovery.

Press release, and information by country, available on the OECD website at the OECD website.

Updated Informed Compliance Publication on IPR Enforcement

2009-12-11T09:10:00.000-08:00

(World Trade Interactive)

U.S. Customs and Border Protection has made available on its website an updated informed compliance publication on CBP’s enforcement of intellectual property rights. This publication includes sections on the counterfeit and “confusingly similar” use of trademarks, parallel imports, Lever rule protection, copyright infringement, exclusion orders, criminal enforcement, IPR recordation, disclosure of information, penalties, and importer remedies following seizure.

Ahern Promises Phased ‘10+2’ Enforcement

2009-12-10T09:25:00.000-08:00

(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.

Gloom in Global Shipping

2009-12-10T09:23:00.000-08:00

(Export Development Canada – Peter G. Hall)

As the sun begins to set on 2009, international traders are likely breathing a collective sigh of relief. Accustomed to hefty annual increases, traders are weathering a 17% drop in global volumes thus far in the year, and there are few signs of rebound. Will traders’ fortunes revive in the coming year? […]

This mindset left the world largely unprepared for a correction. But the rising importance of trade tied its fortunes more closely to global trends – in essence, the consumption excesses of the West were exported everywhere, and in many locales, these became production and trade-related-infrastructure excesses. As such, at current activity levels there is sizeable surplus productive capacity worldwide.

Shippers agree heartily. The container business – red-hot in the bubble years – is estimated to have tumbled by over 10% in 2009, the worst year by a large margin in the industry’s half-century history. Certain key ports are registering volume declines of up to 30% in the first half of this year. Ports that handle origin-destination shipping are faring better than the large trans-shipment facilities. Singapore falls into the latter category, and year-to-date traffic is well below the average, down by over 16%. Read more and/or watch the video here.

Pricing Turmoil Clouds Outlook for LTL Market

2009-12-10T09:21:00.000-08:00

(DC Velocity – Mark B. Solomon)

Are rate wars putting truckers on a path to self-destruction?

When does rate-cutting morph into throat-cutting? That may be a reasonable question for trucking executives to ponder as they start 2010. That is, if they aren’t too busy beating each other up over pricing to think through the consequences of their actions. […]

Industry veterans have rarely seen anything like it. Michael Regan, CEO of TranzAct Technologies Inc., an Elmhurst, Ill.-based consultancy that over the years has negotiated and purchased billions of dollars of LTL capacity for shipper clients, says he’s seen discounts of as much as 90% below retail, or tariff, rates. Read more here.

Lawmakers Urge Buy American Mandate in Jobs Bill

2009-12-10T09:19:00.000-08:00

(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.

DOT Freight Transport Index Drops 10.5% in October

2009-12-10T09:18:00.000-08:00

(Transport Topics Online)

The Department of Transportation’s freight transportation services index fell 10.5% in October from a year earlier, the largest such decline in the 20 years in which it has been calculated. The index fell 1.2% from September, reaching a 94.5 reading, DOT’s Bureau of Transportation Statistics said in its monthly report Wednesday. The figure is a 1% increase from the recent low of 93.5 reached in May, the lowest level since June 1997.Read more here.

Canada Returns to Trade Surplus in October

2009-12-10T09:17:00.000-08:00

(Reuters/Statistics Canada)

Canada unexpectedly returned to a trade surplus in October after three months of deficits as exports to the United States picked up steam and gold and energy prices rose. Statistics Canada said on Thursday the trade surplus in October totaled C$428 million ($408 million). Analysts polled by Reuters poll had forecast a C$700 million deficit, while trade deficit in September was C$850 million. […]

The economy just managed to wriggle out of recession in the third quarter with annualized growth disappointing markets at just 0.4%.Summary statistics and a link to the data files are on the Statistics Canada website. Export and import price indexes are available here.

New DHS Center to Ensure Safety of Imported Goods

2009-12-09T09:34:00.000-08:00

(World Trade Interactive)

The Department of Homeland Security announced December 8 the creation of the Import Safety Commercial Targeting and Analysis Center, a new U.S. Customs and Border Protection facility designed to streamline and enhance federal efforts to address import safety issues.

The CTAC will combine the resources and manpower of CBP and other government agencies – including U.S. Immigration and Customs Enforcement, the Consumer Product Safety Commission, the Food and Drug Administration and the Food Safety Inspection Service – to protect the U.S. public from unsafe imported products by improving communication and information-sharing and reducing redundant inspection activities.

The new facility will be headed by and located adjacent to CBP’s Office of International Trade in Washington, D.C. Approximately 30 personnel representing all of the participating agencies will work at the CTAC. Find out more about the CTAC here.

Study: Global Companies Need, But Don’t Have, Supplier Collaboration

2009-12-09T09:32:00.000-08:00

(Supply Chain Management Review – Sean Murphy)

Corporations that have recently expanded or hope to expand into the increasingly global marketplace should make global partner integration a top priority for remaining competitive. But a new report shows that very few companies actually do that.

The report, “Greater Innovation Through Closer Collaboration,” summarizes a study of approximately 400 corporate executives, many representing companies worth more than $1 billion, conducted by the Business Performance Management (BPM) Forum and the Chief Marketing Officer (CMO) Council.

Joel Reed, senior vice president for product management and marketing at Sterling Commerce, a sponsor of the report, told SCMR he was seeing, in working with clients, an anecdotal need for boosting collaboration in the global supply chain. The survey’s purpose, in part, was to see how widespread the problem is.

Read more here or view the report in question by clicking here.

China Exports to U.S. May Be Cut by Climate Plan, Report Finds

2009-12-09T09:31:00.000-08:00

(Bloomberg – Mark Drajem)

Legislation pending in the U.S. Congress to cut greenhouse-gas emissions may reduce imports of Chinese goods by 20%, a World Bank study said. The provision, included in the measure passed by the U.S. House in June, would tax imports from countries that don’t enact curbs on carbon-dioxide emissions. Senator Sherrod Brown of Ohio and Representative Sander Levin of Michigan, both Democrats, say any legislation in the U.S. to limit pollutants must include the so-called border measures to tax imports. The Senate hasn’t yet acted on the greenhouse-gas measure.

“People haven’t thought through the full implications of those measures,” Aaditya Mattoo, a World Bank economist and one of the paper’s authors, said in an interview. Read more here.

Climate Conference Targets Will Lead to New Era of Transport Demand Management

2009-12-09T09:29:00.000-08:00

(Transport Intelligence – John Manners-Bell)

What is being billed as the largest and most important UN climate change conference in history has opened in Copenhagen, with diplomats from 192 nations warning that this could be the last chance for a deal to protect the world from global warming.

The transport industry, as a major contributor of greenhouse gases, will be under considerable pressure to reduce its emissions. Although much has been done, progress has been considered too slow if the EU is to meet existing overall greenhouse gas emission reduction targets by 2020. If the EU commits to further reductions at Copenhagen, governments will have to find new ways in which to constrain transport demand. […]

The EC has already stated that emissions from the transport sector will be subject to binding targets at Member State level including the use of biofuels. However it has concluded that existing targets can only be met by a reduction of total transport demand (passenger and freight). This could be through pricing measures or other types of ‘demand management tools’. Read more here.

Korea, Canada Pledge to Work for Progress on FTA

2009-12-09T09:28:00.000-08:00

(Chosun Ilbo)

President Lee Myung-bak and Canadian Prime Minister Stephen Harper on Monday agreed to work for progress in bilateral free trade negotiations. The two met at Cheong Wa Dae.

Korea and Canada launched free trade talks in 2005, but 13 rounds of negotiations have failed to produce an accord due to differences on issues like the resumption of beef imports from Canada. Following the summit, Harper told a press conference that the World Trade Organization is reviewing Canada’s complaint about Korea’s refusal to resume beef imports, but he and Lee discussed ways to remove roadblocks.

Lee said, “The Korean government has the principle that it will resume the imports of Canadian beef someday. There are some problems unresolved. But I think the two countries will be able to reach agreement.”

Korea halted Canadian beef imports when mad cow disease broke out in Canada in May 2003. Canada has demanded that Korea resume them, noting the world organization for animal health (OIE) ruled in May 2007 that Canada had the disease under control. It filed a suit against Korea with the WTO in April this year calling for a resumption of imports, and procedures are under way.

Controversial HST Bill Passed in Ontario

2009-12-09T09:26:00.000-08:00

(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.