International air freight volumes were down 8% in January

The International Air Transport Association (IATA) announced global traffic results for January showing a 8.0% decline in air freight compared to the same month in 2011, and a 5.7% rise in passenger demand.

The occurrence of Chinese New Year in January (rather than in February as in 2011) exaggerated the increase in passenger demand and the fall in air freight. Stripping this out, the underlying trend was for stronger passenger growth, while stabilized weakness in cargo markets continues.

The decline in air freight stabilized in the fourth quarter of 2011, at levels 4% below the 2008 pre-crisis peak. There was a 2.5% fall in global freight markets from December to January, but this is almost totally attributable to the impact of factory closures due to the Chinese New Year. Freight capacity contracted by 0.6% year over year, and freight load factor fell to 41% (from 44.3% in January 2011) as deliveries of new widebody passenger aircraft offset measures to reduce freight capacity.

Asia-Pacific and European airlines bore the brunt of the international decline, down 14% and 9.6% respectively compared to January 2011. In addition to the impact of the holiday, the peripheral economies in Europe have been in recession and attracting little inbound freight. Until recently this had been offset by strong outbound traffic flows from Northern European economies.

Middle Eastern carriers enjoyed a 9.4% rise in demand, the healthiest performance among the regions. North American airlines' demand dropped 4.0%. Latin American carriers' traffic climbed 2.2% while African carriers saw a 3.7% decline compared to the year-ago period.

Exports to emerging markets now account for 30% of trade that EDC facilitates

Emerging markets now account for a record 30 per cent of trade that EDC facilitated for Canadian companies and their foreign buyers. In 2011 EDC customers undertook $8.5 billion in business in China, $2.8 billion in Brazil, $2.5 billion in Mexico, $2.4 billion in India and $1.9 billion in Turkey.

The biggest emerging market growth came from trade with the greater Asian markets. Exports and investments by Canadian companies to these markets that were facilitated by EDC grew by nearly 60 per cent in 2011, accounting for 24 per cent of the total trade facilitated by EDC.

The impressive numbers were published this week by Export Development Canada (EDC) which stated that the international business facilitated by EDC rose by 22 percent last year, as 7787 Canadian companies tapped its programs.

"Last year, EDC helped Canadian companies make more investments abroad than ever before, 40 per cent more transactions over last year alone," said Stephen Poloz, President and CEO of EDC. "EDC customers used a combination of direct loans and insurance coverage to help them make these investments, which help them lower their costs, access large international supply chains and remain globally competitive."

eManifest webinar presentations continuing through March and April

To help stakeholders prepare for the mandatory eManifest requirements, the Canada Border Services Agency (CBSA) keeps adding dates for its live eManifest highway carrier presentations. Each presentation is hosted by a CBSA representative and followed by a question and answer period.

The following presentations will be held several times, throughout March and April:

• Attention Highway Carriers: eManifest may apply to you
• eManifest Portal Demonstration

CBSA will also provide, on request, copies of its presentations.

To find out more and to register follow this link to the CBSA website.

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

• Message from CBSA re: CFIA HS Codes.
• Message from CBSA re: Transport Canada HS Codes.
• New Seal Standards - March 1, 2012.
• SIMA - Certain aluminum extrusions from China. Notice of Conclusion of Reinvestigation to update the normal values and export prices, and amounts of subsidy.
• Goods subject to anti-dumping or countervailing duties. Measures in Force. Last reviewed February 20, 2012.
• Memorandum D13-1-2 Direct Shipment of Goods. Multiple revisions, see memorandum.

Canada Revenue Agency

• Leaflet RC4100 Harmonized Sales Tax and the Provincial Motor Vehicle Tax

Department of Finance

• Department Announces Transitional Rules for the Elimination of the Harmonized Sales Tax in British Columbia.

Department of Foreign Affairs and International Trade

• EICB Imports: Textiles and clothing - NAFTA Tariff Preference Level Utilization. Updated February 22.
• Handbook of Export and Import Commodity Codes - 2012: B4 - Chicken ICL 96 - 104 (15 February 2012)

Canadian Food Inspection Agency

• Industry Notice to Importers. Process of transmitting import documentation.
• Notice to Importers. CFIA is asking that all import related documents are faxed once to the National Import Service Centre (NISC) along with the transmission of your EDI submission.
• Export Information By Jurisdiction - Indonesia - Certification Requirements
• RMD-11-05: Pest Risk Management Decision Document for Taraxacum kok-saghyz (Russian dandelion) in Canada.

Canadian International Trade Tribunal

• Appeal Nos. AP-2011-010 and AP-2011-019 Commonwealth Wholesale Corp. Classification of razor blade cartridges.
• Application No. EP-2011-001 Mr. J. R. McNenly.  Procedures. Whether value of trade-in can be deducted from value for duty of inported automobile.
• Expiry Review No. RR-2011-001 Copper pipe fittings from the United States, Korea and China. Tribunal continues its finding, restricted to the products enumerated in an appendix.

European Union

• European Commission proposes a recast of the Modernised Customs Code to establish a Union Customs Code.
• EU Customs: Extension of the Convention on a common transit procedure and the Convention on the simplification of formalities in trade of goods.

United States

• U.S. CBP - Instruments of International Traffic Imported with Residue FAQ (doc) - 02/03/2012
• U.S. CBP - Changes to the In-Bond Process. Notice of proposed rulemaking. Among other things, the proposed changes would: eliminate the paper in-bond application (CBP Form 7512) and require carriers or their agents to electronically file the in-bond application. [PDF]
• U.S. CBP CSMS# 12-000051 - Mandatory ABI Changes for ACE Ocean/Rail Manifest
• U.S. CBP CSMS# 12-000050 - ACE e-Manifest: Rail and Sea - Time to Prepare
• U.S. FDA FAQ Regarding establishment and maintenance of records by persons who manufacture, process, pack, transport, distribute, receive, hold, or import food.
• U.S. APHIS announces improvements to its phytosanitary certificate and issuance tracking system. USDA strengthens service for America's agricultural exporters.
• USITC Foreign Trade Zone Regulation revision promotes flexibility and transparency [ Fact Sheet ]

Ottawa is consulting Canadians on options to enhance trade with Mercosur

Canada's Minister of International Trade, Ed Fast, announced last June that Canada and the members of Mercosur - Argentina, Brazil, Paraguay and Uruguay - were moving forward with exploratory discussions to enhance their trade relationship.

The Federal Government is now launching a public consultation process to allow all interested stakeholders an opportunity to provide comments and advice regarding how trade with Mercosur could be improved.

Created in 1991, Mercosur represents a market of nearly 250 million consumers and accounts for almost three quarters of all economic activity in South America.

Mercosur offers a number of trade opportunities, particularly in the areas of aerospace, life sciences, infrastructure, information and communications technology, clean technology, mining, and oil and gas.

In 2010, bilateral merchandise trade between Canada and the Mercosur countries reached $7.9 billion, which represents an increase of about 150 percent from 10 years earlier.

For information on the consultation please see the Canada Gazette Notice.

Aluminum extrusions from China assigned new values, export prices, amounts of subsidy

The Canada Border Services Agency (CBSA) concluded, on February 20, 2012, its re-investigation of the normal values, export prices and amounts of subsidy of certain aluminum extrusions originating in or exported from China, pursuant to the Special Import Measures Act.

The re-investigation was initiated on September 19, 2011 as part of the CBSA's enforcement of the Canadian International Trade Tribunal's (Tribunal) finding of material injury issued on March 17, 2009.

The new normal values and amounts of subsidy established will be effective for subject goods released from the CBSA on or after February 20, 2012.

In its announcement the CBSA reminded importers that it is their responsibility to calculate and declare their anti-dumping duty liability. When importers are using the services of a customs broker to clear importations, the brokerage firm should be advised that the goods are subject to anti-dumping measures and be provided with sufficient information necessary to clear the shipments.

For additional information please see the CBSA' Notice of Conclusion of Reinvestigation.

Tribunal continues finding on copper pipe fittings from the U.S., Korea and China

The Canadian International Trade Tribunal announced that it continued its findings in respect of certain copper pipe fittings from Korea and China as well as its finding in respect of certain copper pipe fittings from the United States.

The announcement follows the Tribunal's expiry review of its findings of injury to Canadian industry, made on February 19, 2007.

The findings concern the dumping of solder joint pressure pipe fittings and solder joint drainage, waste and vent pipe fittings, made of cast copper alloy, wrought copper alloy or wrought copper, for use in heating, plumbing, air conditioning and refrigeration applications, originating in or exported from the United States, Korea and China, and the subsidizing of such goods originating in or exported from China.

The findings are restricted to the products enumerated in an appendix to these orders, available in the following document: Expiry Review No. RR-2011-001 Copper pipe fittings from the United States, Korea and China.

Peru follows Colombia and reopens market access to Canadian cattle industry

Following the successful conclusion of negotiations on a health certificate for the export of Canadian live cattle to Peru, the Andean nation re-opened its doors to Canadian cattle imports this week.

The announcement follows in the tracks of another Canadian trade partner in the region, Colombia, which reopened its market to allow the importation of Canadian cattle in April 2010. Colombia was the first country in South America to reopen its market to Canadian cattle since 2003, when cases of bovine spongiform encephalopathy where discovered in Canada.

Peru and Colombia each have ongoing free trade agreements with Canada which likely influenced their favourable decision in resuming beef trade.

Peru becomes the seventh market in Latin America and the Caribbean to re-open to Canadian cattle, following Colombia, Mexico, Panama, Barbados, Bermuda, and Trinidad and Tobago.

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

• Message from CBSA re: Provincial Holiday for some Provinces.
• Message from CBSA re: Interest Rate
• SIMA - Certain stainless steel sinks from China. Preliminary Determinations. Statement of reasons.
• Memorandum D15-2-44 Certain Carbon Steel Pipe Fittings. Revised to reflect the January 1, 2012 changes to the HS classification numbers.
• Memorandum D15-2-54 Certain Aluminum Extrusions Originating In or Exported From the People's Republic of China. Revised to reflect the January 1, 2012 changes to the HS classification numbers.
• Memorandum D15-2-49 Certain Carbon Steel Fasteners Originating In or Exported From the People's Republic of China and Chinese Taipei. Revised to reflect the January 1, 2012 changes to the HS classification numbers.
• Memorandum D15-2-52 Certain Carbon Steel Welded Pipe Originating In or Exported From the People's Republic of China. Revised to reflect the January 1, 2012 changes to the HS classification numbers.
• Memorandum D15-2-60 Certain Metal Grating Originating In or Exported From the People's Republic of China. Revised to reflect the January 1, 2012 changes to the HS classification numbers.

Department of Finance

• Request for the removal of duties on palm oil flakes for use in the manufacture of food products.

Department of Foreign Affairs and International Trade

• Softwood Lumber Exports to the United States: List of Allocation Holders for 2012.
• Quota Holders List - 2012 Eggs for Breaking Purposes.
• U.S. streamlines E visa procedures for Canadians. In response to concerns from Canadian business leaders, the U.S. government has recently streamlined procedures to facilitate the E visa application process — making cross-border travel easier and faster for executives, supervisors and skilled employees travelling to the U.S. (CanadExport)

Canadian Food Inspection Agency

• New import requirements for non-propagative potatoes from the United States.
• Changes to import notification requirements for products in the non-federally registered food sector – Eighth phase: Amendments to Annex 1
• Information Bulletin - Schmallenberg Virus in Europe

Transport Canada

• NEXUS cards to be accepted in designated security lines for pre-board screening of U.S. bound flights at airports for faster service.

Canadian International Trade Tribunal

• Application No. EP-2011-002 Volpak Inc. Application for an order extending the time to file a request for a further re-determination under section 60.
• Appeal No. AP-2010-046 VGI Village Green Imports. Classification of oven mitts.

World Customs Organization

• HS Corrigendum No. 5 - February 2012 (pdf) corrections to the tables correlating the 2002 and 2007 editions of the Harmonized System (HS).

European Union

• European Union and United States agree to Historic New Partnership on Organic Trade. Beginning June 1, 2012, organic products certified in Europe or in the United States may be sold as organic in either region.

United States

• U.S. CBP CSMS# 12-000046 - Harmonized System Update 1202 - Changes to the 2012 Harmonized Tariff Schedule of the United States
• U.S. DOC Antidumping Proceedings: Calculation of the Weighted-Average Dumping Margin and Assessment Rate in Certain Antidumping Duty Proceedings; Final Modification. (The end of "Zeroing") Import Administration, International Trade Administration, Department of Commerce. [PDF]

Canada and the U.S. hold consultations on the Trans-Pacific Partnership

The Office of the Unites States Trade Representative announced that the U.S. and Canada held a senior-level bilateral consultation on Monday, on Canada's interest in the Trans-Pacific Partnership (TPP) negotiations.

The meeting was co-chaired by John Melle, Assistant U.S. Trade Representative for the Western Hemisphere, and by Kirsten Hillman, Director General for Trade Negotiations at Foreign Affairs and International Trade Canada. The meeting was the latest in a series of official bilateral consultations following the November 2011 announcement by Prime Minister Harper expressing Canada's interest in joining the TPP negotiations.

In the meeting, Canadian and U.S. officials reported on the domestic consultations each was undertaking regarding Canada's interest in joining the TPP, as well as an update on Canada's consultations with other TPP member countries.

U.S. officials provided an update on the status of the TPP negotiations. They also summarized issues raised by American stakeholders about Canada's expression of interest in the TPP.

These stakeholders' comments included a range of sector-specific issues including comprehensive market access for goods, investment, intellectual property rights, insurance, and telecommunications, among others, in addition to cross-sectorial issues such as regulatory cooperation. Canadian officials underscored the Canadian Government's readiness to engage with the United States on a range of issues going forward.

Both Governments agreed to hold detailed meetings at the working level during the week of March 19 in Washington, as the consultative process continues.

The United States is engaging in similar TPP consultative processes with Mexico and Japan.

The second round of talks to expand Canada - Costa Rica FTA were held last week

Minister of International Trade Ed Fast announced the successful conclusion of a second round of negotiations to modernize the Canada-Costa Rica Free Trade Agreement.

"Expanding our free trade agreement with Costa Rica will enhance access for businesses in many sectors," said Minister Fast.

The original agreement entered into force in 2002 but did not include provisions in areas such as cross-border trade in services, financial services, investment and government procurement.

An expanded agreement would create greater opportunities for Canadian businesses in many sectors, including construction, manufacturing, financial services and telecommunications.

The talks took place February 6 to 10 in San José, Costa Rica. A third round is scheduled for April 2012.

Costa Rica has been Canada's largest trading partner in Central America since 2002, accounting for 31 percent of Canada's two-way merchandise trade with the region in 2010. The main categories of Canadian exports to Costa Rica in 2010 were paper and paperboard, cereals and machinery.

Food additives will require EDI import notification to CFIA starting February 27

The Canadian Food Inspection Agency (CFIA) is continuing to implement changes to import notification requirements for commodities that fall under its jurisdiction.

The changes are implemented in about 10 phases over two years and affect approximately 1500 commodities.

As we reported on in early December, Phase 8 will come into effect on February 27, 2012 and will require notification of importation by Electronic Data Interchange (EDI) for certain commodities under HS Chapter 25, 27 and 28. The goods are described in Annex 1 of the CFIA Notice announcing the changes.

EDI reporting at the time of importation is the only additional requirements for these commodities. The purpose of the initiative is mostly to improve the availability of information the CFIA can use to identify and track food products when food safety issues occur.

We normally perform this type of reporting at time of importation for our clients. Do not hesitate to contact us, should you require additional information.

Progress in harmonization of PIP and C-TPAT programs for highway carriers

The Winter edition of the Canada Border Services Agency's (CBSA) Partners in Protection (PIP) program newsletter contained some interesting information on the ongoing harmonization of PIP and the U.S. C-TPAT programs for highway carriers.

The newsletter reports that PIP & C-TPAT successfully completed Phase 1 of harmonization in April 2011. Two U.S. and two Canadian highway carrier companies agreed to take part in the Phase 1 pilot project. All four companies were risked / vetted, validated and have been accepted as the first harmonized members.

The following facts illustrate the importance of the two program to North American trade:

• As of January 1st, 2012, there were 1,449 PIP members;
• Highway carriers represent approximately 62% of all PIP members;
• Approximately 78% of PIP members are also members of C-TPAT.

With harmonization, PIP members who are not already members of C-TPAT are able to apply - if eligible - by providing only supplementary information.

In the near future, new applicants who wish to apply to both programs will only have to do so once using a common application form. Only one site validation will be required for both programs, although each country retains the right to render its own decision.

Canada's trade surplus more than doubled in December

Statistics Canada announced that the country's exports rose 4.5% in December, while imports edged up 0.8%. As a result, Canada's trade surplus rose from $1.2 billion in November to $2.7 billion in December.

Exports grew to $42.0 billion in December, with increases in all sectors, led by machinery and equipment. Exports have been trending upwards since July 2011.

Imports increased to $39.3 billion, as a result of increases in imports of industrial goods and materials, as well as automotive products.

Exports to the United States rose 5.3% to $30.2 billion on higher exports of crude petroleum, aircraft and precious metals. Imports increased 2.8% to $24.7 billion. Both exports and imports posted their highest levels since October 2008.

Canada's trade surplus with the United States grew from $4.7 billion in November to $5.5 billion in December.

Exports to countries other than the United States increased 2.5% to a record high of $11.8 billion. Imports from countries other than the United States declined 2.6% to $14.7 billion, a result of lower imports from the European Union.

Consequently, the trade deficit with countries other than the United States narrowed from $3.5 billion in November to $2.9 billion in December, the smallest deficit since December 2010.

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

• Memorandum D11-5-9 Canada-Colombia Free Trade Agreement (CCOFTA) Rules of Origin.
• Memorandum D2-6-7 Goods, Currency and Monetary Instruments Detained by the CBSA or Abandoned to the Crown – Use of Form BSF241, Non-Monetary General Receipt. Updated as the result of a technical review.
• Customs Notice CN12-004 Closing of the Pacific Regional Recourse Office.
• Form E646 Customs Self Assessment - Importer Application - Part 1. Updated 2012-02-02

Department of Foreign Affairs and International Trade

• 2012 Domestic and Export Controls Seminars. The Export Controls Division of Foreign Affairs and International Trade Canada is organizing an Export Controls Seminar in Montréal March 6, 2012.
• 2012 Broiler Hatching Eggs and Chicks Quota Holders List.
• EICB Imports: Textiles and clothing - NAFTA Tariff Preference Level Utilization. Updated January 6.

Canadian Food Inspection Agency

• Industry Notice to Importers. Current numbers used to transmit faxes to the NISC and NSO.
• Industry Notice to Importers. Effective February 15, 2012, all importers are to electronically complete the 'Request for Documentation Review' form (CFIA/ACIA 5272).
• Memorandum 2012-02: Phased Implementation of a Revised Bilingual Labelling Policy for Veterinary Biologics Intended for Distribution and Use in Canada
• Memorandum 2012-01: Renewal of Veterinary Biologics Establishment Licences, Product Licences, and Import Permits
• Directive D- 96-05 November 23, 2011 (10th Revision) Phytosanitary requirements for the importation and domestic movement of non-propagative potatoes (Solanum tuberosum) and related potato articles, including associated soil. See directive for list of revisions.
• Strengthening measures to protect Canada from the Asian long-horned beetle. Under the new rules, logs and dried branches of host trees, and firewood of all species, cannot be imported from areas of the United States where this beetle is present.

Canadian International Trade Tribunal

• Expiry No. LE-2011-002 Bicycles from Taiwan and China. Notice of expiry
• Preliminary Injury Inquiry No. PI-2011-003 Potassium silicate solids from Pakistan. Revised.

European Union

• VAT rates applicable in the EU Member States as at 1 January 2012 (pdf)

United States

• U.S. CBP Proposes Internet Publication of Administrative Seizure and Forfeiture Notices. Internet publication would reach a broader range of the public and provide access to more parties who may have an interest in the seized property. [PDF]
• USTR Ron Kirk announces solution to years-old zeroing disputes. United States Trade Representative Ron Kirk announced that today in Geneva the United States signed agreements with the European Union (EU) and Japan that will bring to an end longstanding disputes with these important trade partners over "zeroing."
• USDA-APHIS 2012 Agriculture Stakeholder Conference: Pests, pathways, and partnerships - May 1-2, 2012, Riverdale, MD

Anti-dumping duties on bicycles from Taiwan and China could expire

One of Canada's oldest ongoing anti-dumping measure, concerning bicycles from Taiwan and China, is set to expire in December of this year.

The original decision by the Canadian International Trade Tribunal goes back to 1992 and has been amended and prolonged several times, the last time on December 10, 2007. Under the law a decision will expire after five years, unless an expiry review has been initiated before that date.

It has now been five years since the last continuation and the Tribunal is seeking the opinions of parties requesting or opposing the initiation of an expiry review.

Submissions containing relevant information, opinions and arguments must be filed with the Secretary of the Tribunal no later than February 27, 2012.

An expiry review will not be initiated unless the Tribunal decides that there is sufficient information to indicate that it is warranted.

Link: CITT Expiry No. LE-2011-002 Bicycles from Taiwan and China. Notice of expiry

Material or technical help given to a supplier must be added to the value for duty

In most instances the value of material and even technical help provided to a foreign supplier must be added to the value for duty of the supplier's goods when they are imported into Canada. This type of help is called an "assist" in customs valuation terms.

In its Memorandum on the subject the Canada Border Services Agency defines "Assists" as a term used to describe any goods or services provided free or at a reduced charge by the purchaser for use in the production of imported goods. Typical assists will consist of the some of the following:

• materials, components, parts, and other goods incorporated in imported goods;
• tools, dies, moulds, and other goods utilized in the production of imported goods;
• any materials consumed in the production of imported goods; and
• engineering, development work, art work, design work, plans and sketches undertaken elsewhere than in Canada and necessary for the production of imported goods.

It is important to note that engineering, development work, art work, design work, plans and sketches which are undertaken in Canada are not regarded as assists.

Link: Memorandum D13-3-12 Assists (Customs Act, Sections 48 to 53).

Do not hesitate to contact our offices for additional information.

U.S. officially drops zeroing in dumping calculations, abiding with WTO decisions

The United States announced this week that it was amending the way its anti-dumping calculation method to comply with rulings by the World Trade Organization (WTO) going back to 2006 and 2007.

The Organization had ruled against the United States in disputes with the European Union (EU) and Japan, concluding that the U.S. acted inconsistently with its obligations" in its use of the 'zeroing method' when calculating anti-dumping margins in some instances.

Used to calculate the level of dumping, the U.S. zeroing does not take into account instances when exported goods are sold at a higher price than the home market -- what is known as negative dumping. The EU argued that by applying this zeroing method, the degree of dumping goods was increased artificially.

After the WTO found that the United States had not brought its anti-dumping methodologies into compliance, the EU and Japan requested authorization to impose hundreds of millions of dollars of trade retaliation. The parties later agreed to talks, to find a negotiated solution.

The U.S. has now committed itself to apply a new methodology to calculate anti-dumping duty rates in all new investigations as well as for reviews of existing anti-dumping measures.

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

• Customs Notice CN12-003 Importing New Canadian Specification Vehicles Into Canada.
• Customs Notice CN12-002 Amendment 11 to the Energy Efficiency Regulations
• Memorandum D19-12-2 Importation of Tires. Revised to clarify and update Transport Canada's tire import requirements, the requirements of the Canadian Food Inspection Agency, and includes instructions on how to import tires using ACROSS.

Department of Foreign Affairs and International Trade

• Notice to Importers Serial No. 812  January 26, 2012 Item 125.2 - Milk Protein Substances with a Milk Protein Content Of 85% or More By Weight, Calculated on the Dry Matter, that do not Originate in a NAFTA Country, Chile, Costa Rica, or Israel
• EICB Imports: Textiles and clothing - NAFTA Tariff Preference Level Utilization. Updated 30 January.
• Canada Imposes Tougher Sanctions on Iran.

Canadian Food Inspection Agency

• Meat Hygiene Directives: MHD 2012-04 Chapter 11 - Section 11.7.3 - Mexico

Canadian International Trade Tribunal

• Appeal No. AP-2010-065 Beckman Coulter Canada Inc. Review of an advance ruling on tariff classification of Polyflex® V-belts.
• Appeal No. AP-2011-009 Costco Wholesale Canada Ltd.  Classification of a portable battery booster system.
• Appeal No. AP-2010-036 Accessoires SportRacks Inc. de Thule Canada Inc. Classification of  SportRack Elite 882 upright bike racks.
• Inquiry No. NQ-2011-002 Stainless steel sinks from China. Notice of commencement.
• Inquiry No. NQ-2011-001 Pup joints from China. Revised Notice of commencement.

United States

• U.S. CBP Textile and Quota Newsletter - January 2012 (pdf) First Issue Textile/Quota Newsletter to CBP and the Trade
• U.S. CBP 2012 Sugar Harmonized Tariff Schedule Changes.
• U.S.CBP CSMS# 12-000025 - 2012 Harmonized Tariff Schedule of the United States (HTSUS) Implementation.
• USITC launches investigation into the extent of U.S. exports of used electronics products.
• Organic trade: U.S. and Canada take step toward full equivalency. (organic dairy, beef, sheep, goat, and bison producers)
• USDA Recently Revised Export Requirements & Plant Lists. Export Requirements for Canada. (January 27, 2012)

European Parliament in final steps of legislation to end hormone beef trade dispute

The European Parliament's International Trade Committee unanimously endorsed last week a proposed European Union (EU) concession to put an end to the 20-year hormone beef trade war with Canada and the United States. The proposal, which would raise the EU import quota for beef from animals not treated with hormones, will be put to a vote by Parliament as a whole on March 13.

If approved by the full Parliament, the regulation will allow third countries to sell the EU 48,200 tonnes of duty-free high-quality beef from animals not treated with growth-promoting hormones. The EU import quota increase was agreed in bilateral conciliation talks and memoranda of understanding already concluded with the U.S. and Canada.

In exchange, Canada and the U.S. have already suspended import duties, amounting to almost $130 million, imposed on "blacklisted" EU farm produce.

The "beef hormone dispute" has affected transatlantic trade since 1988, when the EU banned imports of beef from animals treated with growth-promoting hormones. In 1996, the U.S. and Canada, which were worst affected by the ban, challenged it before a World Trade Organization dispute settlement panel and were subsequently authorized to impose trade sanctions on EU farm produce exports.

Since 1999, Canada and the U.S. have imposed retaliatory tariffs on a wide range of EU exports, worth C$11.3 million and US$ 116.8 million respectively, which severely reduced the EU's share of their markets.

The new import tariff quota would take effect as of August 2012 if it is approved by the European Parliament on March 13.

New Energy Efficiency Regulations to affect imports of five new products

An amendment to the Energy Efficiency Regulations which will come into force on April 12, 2012 will introduce new minimum energy performance standards, and the associated reporting and compliance requirements, for five new products:

• Standby for electronic products such as compact audio products, television and TV combination units and video products;
• External power supplies; 
• Digital TV adaptors; 
• Electric boilers; 
• Single package vertical air-conditioners and heat pumps.

The amendment will also expand the scope of some products such as electric motors, dry-type transformers and large air conditioners.

The Energy Efficiency Regulations apply to dealers who import regulated energy-using products into Canada for sale or lease.

An energy efficiency report must be submitted by the dealer to Natural Resources Canada (NRCan) before the product is imported into Canada or shipped inter-provincially.

Link: Customs Notice CN12-002 Amendment 11 to the Energy Efficiency Regulations.

World air freight volumes contracted 0.7% in 2011 but are beginning to rise again

According to the International Air Transport Association (IATA) air cargo markets contracted by 0.7% for the full year 2011, but recorded a positive demand growth of 0.2% in December. The freight load factor for the year was just 45.9%, down from 48.1% in 2010.

After shrinking through much of the summer and autumn air freight markets inched up at the end of the year. IATA says that surveys are now showing that business confidence, a leading indicator for changes in cargo markets, turned up in December, suggesting that industrial production and international trade may be stabilizing.

Although international freight markets contracted 0.6% for the full year and 0.8% in December, as compared to a year ago, December international demand was 1.5% ahead of the level in November, while domestic demand was up 3.2% compared to November and 5.5% compared to December 2010.

Freight markets have now shown sequential month-over-month growth in November and December, adding evidence to the view that international trade may be stabilizing. However, the situation for airlines in these markets has deteriorated significantly.

Freight load factors declined considerably to 45.9% in 2011, as measures to match capacity with demand by reducing the freighter fleet have been offset by introduction of new twin aisle passenger aircraft.