Friday, December 30, 2011

Technical documents


Government memorandums, notices and decisions.

This page lists newly published government memorandums, notices, regulations and decisions. Clicking on a title will open the document (in a new window) as published by the relevant department or agency on its own Web site.

Canada Border Services Agency
Canada Revenue Agency
Department of Finance
Department of Foreign Affairs and International Trade
Canadian Food Inspection Agency
Canadian International Trade Tribunal
  • Preliminary Injury Inquiry No. PI-2011-002 Stainless steel sinks from China. Tribunal determines that there is evidence that discloses a reasonable indication that the dumping and subsidizing of the goods have caused injury or are threatening to cause injury.
  • Interim Review No. RD-2011-004 Mattress innerspring units from China. The purpose of this interim review is to determine if the finding should be rescinded on the basis that there is no longer any domestic production of mattress innerspring units sold in the Canadian merchant market.
  • Appeal No. AP-2010-066 CE Franklin Ltd. Classification of polished stainless steel bars or rods.
United States

Several Customs rulings to become invalid because of 2012 Tariff changes


The Canada Border Services Agency (CBSA) issued a Customs Notice to warn importers about rulings that may become invalid as a result of the considerable changes to the 2012 version of the Customs Tariff.

imageThe recently published 2012 version of the Departmental Consolidation of the Customs Tariff contains amendments to the international Harmonized 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.

Because of all those changes 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.

CBSA notes that under the Tariff Classification Advance Rulings Regulations, an advance ruling is not binding if there has been a "... change in ... the laws of Canada". The 2012 tariff changes are the result of amendments to the Customs Tariff Act.

Do not hesitate to contact our offices for additional information.
Link: Customs Notice CN11-026 Advance Rulings for Tariff Classification and National Customs Rulings Affected by Amendments to the 2012 Customs Tariff

Thursday, December 29, 2011

Tribunal says dumping of Chinese steel sinks likely to harm Canadian industry


The Canadian International Trade Tribunal has announced the result of its preliminary injury inquiry into whether the evidence discloses a reasonable indication that the dumping and subsidizing of certain stainless steel sinks originating in or exported from China, have caused injury or retardation or are threatening to cause injury to Canadian industry.

imageThis inquiry follows the notification, on October 27, 2011, that the President of the Canada Border Services Agency (CBSA) had initiated investigations into the alleged injurious dumping and subsidizing of the above-mentioned goods.

The goods are further described as certain stainless steel sinks with a single drawn bowl having a volume between 1,600 and 5,000 cubic inches (26,219.30 and 81,935.32 cubic centimetres) or with multiple drawn bowls having a combined volume between 2,200 and 6,800 cubic inches (36,051.54 and 111,432.04 cubic centimetres), excluding sinks fabricated by hand.

The Tribunal determined that there is evidence that discloses a reasonable indication that the dumping and subsidizing of the above-mentioned goods have caused injury or are threatening to cause injury.

The CBSA is continuing its investigation to determine if the imports are actually being dumped and/or subsidized, and will make a decision by January 25, 2012.

Anti-dumping duty on mattress innerspring units could be cancelled


The Canadian International Trade Tribunal initiated an interim review of its November 2009 finding concerning the dumping of mattress innerspring units originating in or exported from China.

The purpose of the review is to determine if the finding should be rescinded on the basis that there is no longer any domestic production of mattress innerspring units sold in the Canadian merchant market, as claimed by a Canadian corporation.

Submissions already filed by interested parties have been placed on the record of the interim review. Any further submissions by interested parties respecting the request for the rescission of the finding should be filed no later than January 18, 2012.

In their submissions, parties should address the issue of whether there is still any production of mattress innerspring units in Canada and, in particular, whether there is still domestic production sold in the merchant market.

Link: CITT Interim Review No. RD-2011-004 Mattress innerspring units from China.

Wednesday, December 28, 2011

Ottawa consults on duty and tax deferral programs


The Government of Canada launched consultations to examine Canada's foreign trade zone (FTZ)-like policies and programs.

"We need to ensure that these policies and programs are internationally competitive, effectively marketed and administratively efficient," said Minister of Finance Jim Flaherty. "We look forward to receiving input from stakeholders. Our goal is to have policies and programs that continue to attract investment and provide the greatest economic benefit for Canadians."
imageCanada's tax and tariff policies and national FTZ-like programs provide benefits comparable to those offered by site-specific FTZs in other countries.

The Duty Deferral Program (DDP), which is administered by the Canada Border Services Agency, relieves customs duties on imported goods. This is Canada's main FTZ-like program, which has three components: upfront duty relief; drawback or repayment by government of import duties (when the imported goods are re-exported or used in the manufacture of exported goods); and the deferral of duties for up to four years through the Customs Bonded Warehouse Program.

The Export Distribution Centre Program (EDCP), administered by the Canada Revenue Agency (CRA), aims to benefit businesses that import goods and/or acquire goods in Canada, process them to add limited value and then export them. Under the program, businesses do not pay GST/HST on imported goods, or on domestic purchases of goods worth $1,000 or more.

The Exporters of Processing Services (EOPS) Program, also administered by the CRA, removes from participants the obligation to pay GST/HST on imports of goods belonging to non-residents, provided that these goods are subsequently exported.

Stakeholders wishing to provide input are invited to submit their comments by February 17, 2012.

Tuesday, December 27, 2011

Canada expands sanctions against Syria


The Government of Canada announced new sanctions on Syria's Assad regime in response to its ongoing and escalating repression of Syrians.

imageThe measures prohibit all imports, with the exception of food, from Syria; all new investment in Syria; and the export to Syria of equipment, including software, for the monitoring of telephone and Internet communications. Canada is also imposing an assets freeze and prohibiting economic dealings with additional individuals and entities associated with the Assad regime.

"Canada stands with the Syrian people in their efforts to secure for themselves a brighter future. We look forward to a new Syria that respects the rights of its people and lives in peace with its neighbours" said Foreign Affairs Minister John Baird. "Sanctions imposed by like-minded partners, including the United States and the European Union, and recently by the Arab League are having an impact in isolating the regime."

Thursday, December 22, 2011

Technical documents


Government memorandums, notices and decisions.

This page lists newly published government memorandums, notices, regulations and decisions. Clicking on a title will open the document (in a new window) as published by the relevant department or agency on its own Web site.

Canada Border Services Agency
Canada Revenue Agency
Department of Foreign Affairs and International Trade
Canadian Food Inspection Agency
Statistics Canada
World Customs Organization
European Union
United States

Prince Rupert and Montreal to be sites for new border pilot projects


In the course of the "Beyond the Border" initiative announced by Prime Minister Harper and President Obama, Canada and the United States will develop a joint strategy to address risks associated with shipments arriving from offshore, based on informed risk management.

imageThis strategy is aimed at identifying and resolving security and contraband concerns as early as possible in the supply chain or at the perimeter, with the expectation that this will allow for a reductions of inspection activities at the Canada-U.S. border.

It is expected that a harmonized approach to screening inbound cargo arriving from offshore will result in increased security and the expedited movement of secure cargo across the Canada-United States border, under the principle of "cleared once, accepted twice."

In a first phase the two countries will address security risks associated with inbound shipments from offshore, with the intention to expedite crossings at the land border.

The second phase will begin with the launch of pilots in September 2012 which are intended to validate and shape the implementation of the strategy. The implementation of the strategy is expected to begin in 2014. Pilots will include targeted risk-assessment for security and contraband.

Canada's pilots will be the Canada Border Services Agency-Transport Canada Cargo Targeting Initiative involving pre-load information and targeting in the air mode, and perimeter vetting and examination of inbound marine cargo at Prince Rupert destined for Chicago by rail and of marine cargo arriving at Montreal destined for the United States by truck.

The U.S. pilots will involve the harmonization of targeting and risk-assessment methodologies and the targeting and risk assessment of cargo arriving from offshore at a major U.S. port destined for Canada; and the testing of a new in-bond module for processing in-transit/in-bond (Canada-United States-Canada) cargo travelling by truck.

Wednesday, December 21, 2011

St. Lawrence Seaway freezes tolls for 2012


The St. Lawrence Seaway Management Corporation (SLSMC) announced that there will be no toll increase in 2012. The decision to extend the toll freeze was made in an effort to maintain the momentum underlying the Seaway's market development initiatives.

imageEven though the Seaways enjoyed a 1% tonnage increase in 2011, the SLSMC recognizes that the North American and world economies remain fragile.

"Given the economic situation, an extra year with no toll increase will assist our stakeholders in their efforts to develop new business and will serve to reinforce the Great Lakes / St. Lawrence Seaway system's position as the gateway to North America's heartland" said Bruce Hodgson, Director of Market Development for the SLSMC.

SLSMC President and CEO Terence Bowles voiced his support for the toll freeze. "We are striving to reduce system costs and bring more cargo into the system. The extension of the toll freeze and of the various incentive programs represents tangible steps toward meeting these objectives".

Since its inception in 1959, more than 2.5 billion tonnes of cargo valued at over $375 billion have moved via the Seaway.

Tuesday, December 20, 2011

United Arab Emirates to allow imports of Canadian live cattle


The Government of Canada announced that it has reached a new agreement on an live cattle export certificate with the United Arab Emirates (UAE).

imageThe UAE had been shutting out Canadian cattle since 2003, when cases of bovine spongiform encephalopathy (BSE) where discovered in Canada.

Canadian exporters of live cattle will now have access to the UAE market. Industry estimates that the market could provide up to $40 million in sales.

"This announcement instantly provides new export opportunities for Canadian producers, and is a significant step toward regaining access to other key markets in the region," said Agriculture Minister Gerry Ritz.

The UAE is part of a regional trading block called the Gulf Cooperation Council (GCC), which includes Bahrain, Kuwait, Oman, Qatar and Saudi Arabia.

Canadian agri-food exports to the GCC surpassed $835 million in 2010.

Monday, December 19, 2011

will expand access to government procurement


Parties to the World Trade Organization's (WTO) Government Procurement Agreement (GPA) reached a historic deal last week to improve the agreement and potentially expand international access to a market valued at between 80 to 100 billion dollars a year.

imageThe Agreement establishes specific obligations relating to non-discrimination, competition and transparency in government purchasing of goods and services. It applies only to those WTO members that have agreed to be bound by its terms.
After over a decade of effort, the negotiations to modernize and expand the Agreement reached a successful conclusion on December 15, 2011. The results include significant improvements in the text of the Agreement that will enhance transparency and reflect contemporary procurement practices such as electronic notifications. The revised Agreement will also significantly expand access to procurement opportunities in the procurement markets of GPA Parties.

Currently, there are 15 parties to the GPA-one of those parties, the European Commission, represents its 27 member states-and 22 observers. The 15 parties to the GPA are Armenia; Canada; the European Union; Hong Kong, China; Iceland; Israel; Japan; the Republic of Korea; Liechtenstein; Aruba (the Netherlands); Norway; Singapore; Switzerland; Chinese Taipei; and the United States. All in all, they cover 42 WTO members.

Following the Canada-United States government procurement agreement of February 2010, Canada offered the same provincial and territorial commitments in that treaty to other GPA parties. The Agreement does not cover Canadian municipalities, school boards, academic institutions and hospitals.

Friday, December 16, 2011

Canada-India free trade negotiations now in third round of talks


The Federal Government announced that the third round of Canada-India free trade negotiations was taking place in Delhi from December 13 to 16, 2011.

imageIn a statement from Geneva, where he is attending a World Trade Organization Conference, Minister of International Trade Ed Fast said that "as agreed with my counterpart, India's Minister of Commerce and Industry, Anand Sharma, during my trade mission to India, our two countries are committed to an ambitious schedule for negotiations. Discussions are advancing and Canada is aiming to conclude negotiations in 2013."

The second round of negotiations was held in July 2011, where progress was made in the areas of goods, services, origin procedures, temporary entry for business persons, technical barriers to trade, sanitary and phytosanitary measures, and institutional provisions.

Now one of the fastest-growing economies on the planet, India is projected to be the world's third largest economy by 2050. India's growing population, rising per capita income levels, rapidly expanding manufacturing, high-technology and services sectors, and the associated infrastructure and natural resources requirements make it a tremendous market of opportunity for Canadian companies.

Technical documents


Government memorandums, notices and decisions.

This page lists newly published government memorandums, notices, regulations and decisions. Clicking on a title will open the document (in a new window) as published by the relevant department or agency on its own Web site.

Canada Border Services Agency
Canada Revenue Agency
Department of Foreign Affairs and International Trade
Canadian Food Inspection Agency
Canadian International Trade Tribunal
  • Inquiry No. NQ-2011-001 Pup joints from China. Notice of commencement.
  • Appeal No. AP-2010-070 Cambridge Brass Inc. Classification of Smith-Blair 525 Series compression coupling designed to join plain-end small-diameter pipe (i.e. 1/2 in. to 2 in. nominal pipe sizes) for installation in most water, wastewater and industrial applications.
World Trade Organization
  • Historic deal reached on government procurement. Parties to the Plurilateral Government Procurement Agreement (GPA) reached a historic deal to improve the disciplines for this key sector of the economy and expand the market access coverage valued at between 80 to 100 billion dollars a year.
United States

Thursday, December 15, 2011

Provisional duties now payable on pup joints from China


The Canada Border Services Agency (CBSA) made preliminary determinations of dumping and subsidizing in respect of oil country tubular goods pup joints from China.

imageThe goods in question are made of carbon or alloy steel, welded or seamless, heat-treated or not heat-treated, regardless of end finish, having an outside diameter from 2 3/8 inches to 4 1/2 inches (60.3 mm to 114.3 mm), in all grades, in lengths from 2 feet to 12 feet (61 cm to 366 cm) and originate in, or are exported from China.

Provisional duties of 41.2% to 219.8% are now payable on the subject goods that are released from CBSA on or after December 12, 2011.

Following the CBSA determination the Canadian International Trade Tribunal initiated an inquiry to determine if the dumping and/or subsidizing is causing injury to Canadian industry. Each person or government wishing to participate in the inquiry and at the hearing as a party must file a notice of participation with the Tribunal on or before January 3, 2012. The Tribunal will render its decision on April 10, 2012

Additional information is available on the websites of the CBSA and of the Tribunal.

Wednesday, December 14, 2011

Japan moves toward easing restrictions on beef imports


imageJapan announced that it will review its domestic and import regulations for beef, which may lead to expanded access for Canadian beef. the Japanese Government will hold public hearings and a risk assessment, to be conducted by Japan's Food Safety Commission.

"We welcome this development and look forward to Japan making an informed decision, based on scientific evidence," said International Trade Minister Ed Fast. "We are committed to deepening our economic ties with Japan by ensuring that trade flows freely between our countries."

"We will continue to collaborate with Japanese officials so that this review proceeds as quickly as possible" said Agriculture Minister Gerry Ritz.

In 2010, Canada's exports of beef under 21 months of age to Japan totalled $81.4 million. A significant increase in exports is expected with expanded access.

Tuesday, December 13, 2011

Canada slips back into trade deficit


Statistics Canada announced that the country's merchandise exports declined 3.0% and imports rose 1.9% in October. As a consequence, Canada's trade balance went from a surplus of $1.0 billion in September to a deficit of $885 million in October.

imageAfter three consecutive monthly increases, exports decreased to $38.4 billion in October, with industrial goods and materials, and energy products sectors leading the decline. Automotive products was the only sector to record a gain during the month.

Import volumes increased 1.3%, reaching a record high of $39.3 billion,. Imports of machinery and equipment led the overall increase, followed by energy products and automotive products.

Imports from the United States rose 3.0% to $24.5 billion, the highest value since October 2008, while exports fell 0.9% to $27.6 billion. As a result, Canada's trade surplus with the United States narrowed from $4.1 billion in September to $3.1 billion in October.

Exports to countries other than the United States fell 7.9% to $10.8 billion, after peaking in September 2011. Imports from countries other than the United States edged up 0.1% to $14.7 billion. Canada's trade deficit with countries other than the United States increased from $3.0 billion to $4.0 billion in October.

Monday, December 12, 2011

Canadian rail freight up 12.9% in September


Following increases in both domestic and international cargo loadings, Canadian railways carried 27.4 million tonnes of freight in September, up 12.9% from September 2010.

imageNon-intermodal rail freight rose 12.1% from September 2010 levels to 21.8 million tonnes. The gain was spurred by increased traffic in more than half of the commodity classifications carried by the railways, with the largest increases in tonnage from potash, lumber and canola.

Intermodal freight loadings of containers and trailers on flat cars rose 3.7% from the same month a year earlier to 2.4 million tonnes in September. The increase occurred solely on the strength of containerized cargo shipments.

Internationally, traffic received from the United States destined for or passing through Canada rose to 3.2 million tonnes in September, an increase of 27.4% compared with September 2010. The gain was driven primarily by increased loadings of non-intermodal freight.

(Source: Statistics Canada)

Friday, December 9, 2011

Canada-U.S. border flows should improve under perimeter security plan


President Obama and Prime Minister Harper released the details of their Action Plan for Perimeter Security and Economic Competitiveness.

The Action Plan is a practical road map, not a formal agreement. The two leaders hope that, once implemented, it will promote greater security and prosperity in North America.
imageThe Action Plan focuses on four key areas:
  • Addressing threats at the earliest possible opportunity;
  • Facilitating trade, economic growth and jobs;
  • Building on successful cross-border law enforcement programs; and
  • Enhancing cross-border critical and cyber infrastructure.
  • Some of the measures aimed at facilitating crossborder trade include:
  • Developing an overall approach for future preclearance initiatives, including implementing a number of new pre-inspection and preclearance initiatives in rail, marine and highway modes of transportation to relieve pressures at border crossings;
  • Establishing wait-time service levels and posting wait times on the Internet so that truckers and others can better plan their border crossings;
  • Setting up a single window for companies to submit electronically all the data required by government departments in one place;
  • Increasing and harmonizing the value thresholds for expedited customs clearance and streamlining current import processes for low-value shipments to minimize the burden at the border for these kinds of shipments;
  • Launching a joint independent assessment of fees charged at the border in order to have a better picture of border costs to businesses;
  • Upgrading infrastructure at key crossings to relieve congestion, speeding the movement of traffic across the border, and doing so in a more coordinated way on both sides of the border;
  • Installing radio frequency identification technology at key border crossings so that documents can be read as vehicles approach the border, thus saving time and helping to relieve congestion at the border itself;
  • Ensuring that enhanced and expanded trusted trader and traveller programs have the infrastructure required to fully realize their intended benefits to members;
  • Organizing regular meetings of binational port operations committees, so that both countries can react more rapidly to local concerns and needs.

A detailed summary of the Action Plan is available at: www.borderactionplan-plandactionfrontalier.gc.ca

Technical documents


Government memorandums, notices and decisions.

This page lists newly published government memorandums, notices, regulations and decisions. Clicking on a title will open the document (in a new window) as published by the relevant department or agency on its own Web site.

Canada Border Services Agency
Department of Finance
Department of Foreign Affairs and International Trade
Canadian Food Inspection Agency
Canadian International Trade Tribunal
  • Appeal No. AP-2010-037 Great West Van Conversions Inc. Classification of certain vans and other miscellaneous goods.
United States

Thursday, December 8, 2011

U.S. and European Union to recognize each other's trade partnership programs


imageU.S. Customs and Border Protection (CBP) and the European Union Taxation and Customs Union Directorate (TAXUD) agreed this week to the terms of the "U.S.-EU Mutual Recognition Decision," which will recognize the respective trade partnership programs of the U.S. and the EU: CBP's Customs-Trade Partnership Against Terrorism (C-TPAT) and the EU's Authorized Economic Operator (AEO). The recognition is expected to be signed in the Spring of 2012 and will grant reciprocal privileges to approved trade partners.

"The U.S. and the European Union are one step closer to a mutual recognition decision that will facilitate trade while increasing security of the global supply chain," said CBP Assistant Commissioner Thomas Winkowski.

CBP and TAXUD began talks in 2007 to implement Mutual Recognition between C-TPAT and AEO. Mutual Recognition is an industry partnership program that creates a unified and sustainable security posture that can assist in securing and facilitating global cargo trade. 

Upon achieving mutual recognition with a foreign partner, one program may recognize the validation findings of the other program.

CBP currently has mutual recognition with Canada, Japan, Jordan, Korea and New Zealand.

Wednesday, December 7, 2011

CBSA to update values and export prices of mattress innerspring units from China


The Canada Border Services Agency (CBSA) initiated a re-investigation of the normal values and export prices of certain mattress innerspring units originating in or exported from China.

imageThe subject goods are described as certain mattress innerspring units, with or without edgeguards, used in the manufacture of innerspring mattresses and are generally classified under the following 10-digit Harmonized System classification numbers: 9404.10.00.00,  9404.29.00.00,  7320.20.90.10.

The re-investigation is part of the CBSA's ongoing enforcement of the Canadian International Trade Tribunal's finding of material injury issued on November 24, 2009. It is anticipated that this re-investigation will be concluded by June 7, 2012.

Normal values established during this re-investigation will be effective for the subject goods released from the CBSA on or after the date of the conclusion of the re-investigation. Normal values currently in place will expire on that date.

CBSA cautions importers that new normal values, when issued, may be higher than those currently in effect and that this could result in additional assessments of anti-dumping duty.

Additional details can be found on CBSA's website.

Tuesday, December 6, 2011

Blanket certificates of origin need to be renewed for 2012


Blanket certificates of origin, whether for NAFTA or for other free trade agreements, are usually filled-out to begin on January 1 and to expire, 12 months later, on December 31.

As happens every year, the majority of blanket certificates in our databases are set to expire December 31.

If you have not already done so, please make sure that you obtain the required renewed certificates for 2012.

Shipments cannot be cleared under the preferential tariff treatment of a free trade agreement unless a current and valid certificate is on hand.

Monday, December 5, 2011

International air freight continues to decline


Worldwide cargo demand for October was 4.7% below the same month in 2010 while passenger traffic showed a 3.6% rise over previous year levels, according to the International Air Transport Association (IATA)

image"Cargo is the story of the month. Since mid-year the market has shrunk by almost 5% and this is far greater than the 1% fall in world trade. Air freight is among the first sectors to suffer when businesses confidence declines," said Tony Tyler, IATA's Director General and CEO.

According to IATA the confidence of purchasing managers in the manufacturing sector has fallen to its lowest level since 2009. This loss of confidence appears to have caused shippers to switch some transport needs to slower and cheaper sea options to the detriment of air freight which showed a 4.7% decline in October compared to the previous year.

Airlines have responded to weaker demand by cutting their freighter fleet. But this has not stopped a steady and substantial five percentage point fall in freight load factors compared to their early 2010 peak owing to capacity entering the market via wide-bodied passenger aircraft