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March 4, 2010

2010 Federal Budget

The 2010 federal budget has been tabled at 4pm EST today. The document is available at: http://cscb.ca/listinfo/2010FederalBudget.pdf (~2.5 MB).

The following are highlights that may be of interest to members.

Customs Tariff Measures

Tariff Reductions on Manufacturing Inputs and Machinery and Equipment

Budget 2010 proposes to eliminate the remaining tariffs on manufacturing inputs and machinery and equipment. …

This measure will assist Canadian industry by lowering the costs of manufacturing inputs and machinery and equipment that are imported from outside North America. Tariffs on the affected goods vary from 2 per cent to 15.5 per cent and represent a non-recoverable tax on production inputs and on new investments that companies make in order to enhance their competitiveness and productivity.

The reductions apply to 1,541 tariff items as currently listed in the Schedule to the Customs Tariff. For these items, the Most-Favoured-Nation (MFN) rates of duty will be reduced to “Free” as outlined in the Notice of Ways and Means Motion to Amend the Customs Tariff. Of these:

- 1,160 tariff items will have the MFN rates of duty reduced to “Free” as of March 5, 2010; and
- 381 tariff items will have the MFN rates of duty gradually reduced, beginning as of March 5, 2010 and going to “Free” by no later than January 1, 2015.

In certain instances, these MFN reductions will lead to consequential reductions to the rates of duty under other tariff treatments, namely the General Preferential Tariff, the Costa Rica Tariff, the Peru Tariff, the Australia Tariff and the New Zealand Tariff. In a few instances, additional tariff items will be created to take into consideration comments received from stakeholders.

The tariff reductions will be given effect by amendments to the Customs Tariff and will be effective in respect of goods imported into Canada on or after March 5, 2010.

Although the budget document lists the changes to the tariff on pages 431-447, these changes are also found in Tariff Notice TN-49 at http://cscb.ca/listinfo/TariffNoticeTN49.pdf (in English) and http://cscb.ca/listinfo/TariffNoticeTN49_fr.pdf (in French).

These changes are expected to be available for use in the Customs Commercial System (CCS) by March 10, 2010 and will be available for use by Electronic Commerce clients one day after the Customs Commercial System is updated.

February 1, 2010

1 February 2010

Strengthened Processes for Goods Contaminated With Soil

The following fact sheet was published by CBSA.

The Canada Border Services Agency (CBSA) is strengthening its commercial importation process regarding goods contaminated with soil. Goods contaminated with soil are not admissible into Canada and this has not changed. However, beginning on February 1, 2011, goods arriving at the Canadian border contaminated with soil will be restricted to a CBSA-controlled environment and may be cleaned by a mobile wash facility approved by the Canadian Food Inspection Agency (CFIA), provided certain conditions are met, e.g. there is no risk of soil dislodging during transport. If a CFIA-approved mobile wash facility is not available, or if other conditions are not met, the goods will be refused entry into Canada. The importer will pay for the cost of this cleaning or removal.

Under the current process, the CBSA may allow the contaminated goods to be transported to a stationary, CFIA-approved treatment facility. However, if certain conditions are not met, the shipment is refused entry into Canada.

This strengthened approach is in line with the CBSA's existing commercial processes and procedures, as well as the CFIA's policy regarding soil. It will help the CBSA maintain appropriate control over contaminated goods, thereby further ensuring the safety and security of Canada and Canadians.

A Customs Notice will be issued in January 2010 advising stakeholders of the updated process. This will include a twelve-month transitional period to allow industry an opportunity to adjust their operations starting on February 1, 2010.

The CFIA is responsible for establishing the policy regarding the importation of goods contaminated with soil. The CBSA is responsible for administering and enforcing that policy to the extent that it applies at the border.

January 21, 2010

http://www.cbsa-asfc.gc.ca/publications/pub/bsf5108-eng.html

What is trade compliance?

Trade compliance refers to importers and exporters meeting all of the requirements governing the movement of commercial goods into and from Canada.

To be trade compliant is to ensure that the tariff classification, origin and valuation of goods are all accurately declared in accordance with legislative requirements and that the appropriate duties and taxes are paid. But this is only part of the picture. There is a clear obligation under the Customs Act to provide true, accurate and complete trade information, including a proper description of the goods, and to correct wrong information regardless of dutiable status. Furthermore, an essential part of trade compliance is to ensure that all import requirements are met, such as having the appropriate import permit. If not all import requirements are met, this violates the control measures that are in place to protect the economy, the environment and the health of Canadians.

What is trade data?

International trade data is derived from the information provided by the import and export community. This data is compiled by Statistics Canada from the import and export records of the Canada Border Services Agency (CBSA). Trade data also includes Canada's export data. The quality of trade data is, therefore, directly linked to the reliability of the information provided by importers and exporters.

Trade data compiled by Statistics Canada is among the few current economic statistics that are derived directly from all import and export transactions. For this reason, analyzing trade data provides very detailed economic breakdowns that have immediate relevance for both the private and public sectors. For example, if business or government requires information about the total number and total value for duty of bicycles imported from China, this information can be extracted from databases using the tariff classification numbers associated with bicycles.

Finally, it is from the collection and analysis of trade data that important risk assessments are made that help protect the economy and the health and safety of Canadian society.

Why is trade data important?

Trade data is important because it touches Canada's public and private sectors and spans several critical functions across the Government of Canada (GC) and the trade community. Trade data is an essential planning tool for both public and private organizations, domestically and internationally.

The GC's ability to monitor the health of the Canadian economy and to establish appropriate economic policies depends on the availability of quality trade data. Given that international trade represents a large percentage of Canada's gross domestic product (30 percent in 2008), it follows that the development of fiscal and monetary policy depends in part on detailed, accurate and timely trade data. The balance of trade influences Canada's interest rates as well as the value of the dollar. Trade data is also used by the GC to manage taxation and foreign exchange policies; to support tariff negotiations and reciprocal trade arrangements; to negotiate bilateral and multilateral trade agreements; and to encourage foreign investments. Finally, trade data is used by the GC to support the implementation of trade measures in respect of imports that are potentially injurious to the economic health of a particular domestic industry.

Canadian businesses — large and small enterprises alike — use trade data to measure market shares, monitor price trends and identify importing and exporting market trends along with potential market opportunities. Businesses rely on trade data to assess the effects of imports on the Canadian market, which includes identifying and addressing unfair trade practices. Trade data is also used by Canadian businesses to support and present their position on various government policies and initiatives, such as international trade arrangements, or to support a request for an investigation into trade practices that may be harmful to a particular domestic industry.

What are the benefits of trade compliance for Canadian business?

Trade compliance is important for businesses because, like government, they require accurate information to develop sound business plans and to support key business decisions. Therefore, Canadian businesses have a vested interest in ensuring the quality of information that they are obligated to provide regarding the movement of commercial goods across the border.

Moreover, businesses that invest resources to support trade compliance will likely submit fewer corrections to their original accounting documents, which in turn equates to lower overhead costs. Businesses that establish good compliance records with the CBSA are less likely to have their shipments examined at the border or selected for post-release verification, or to receive administrative monetary penalties under the Administrative Monetary Penalty System (AMPS). Simply put, a good trade compliance record is related to risk — the lower the risk, the less need for intervention by the CBSA. Fewer interventions by the CBSA equates to lower business costs and to the faster movement of goods.

In addition, businesses that have a proven record of compliance and have invested in their systems, processes and employee training may be eligible to participate in the CBSA's preapproval programs such as Customs Self Assessment (CSA) and Free and Secure Trade (FAST). Those who qualify will benefit from streamlined clearance, accounting and payment processes.

How does the CBSA promote trade compliance?

Trade facilitation is a key element of the CBSA's role in supporting Canada's economy. As such, the CBSA invests in programs that permit expedited processing of shipments for those that comply with all of the requirements governing the movement of commercial goods into and from Canada. This investment allows the CBSA to focus on those areas or businesses where compliance issues need to be addressed.

The CBSA recognizes that providing information and services is the key to supporting compliance within the business community. Therefore, the CBSA provides access to resources such as the following:

• publications (e.g. d-memorandums, customs notices);
• outreach activities such as seminars for new importers and exporters;
• advance rulings;
• the Small and Medium-Sized Enterprise Centre on the CBSA's Web site (a source of importing products and tools, such as checklists, step-by-step guides and seminar registrations); and
• the Border Information Service (BIS) — a toll-free border information line.

The CBSA further ensures trade compliance by undertaking the following:

• examining goods and shipments at the border;
• conducting post-release verifications to confirm trade compliance and to correct errors (this includes issuing reassessments to collect additional duties); and
• issuing AMPS penalties when errors are found.

Final thought

Businesses have a vested interest in getting trade compliance right because being compliant affects more than their bottom line. Trade compliance is a key element in maintaining a competitive Canadian business community and in supporting the health and safety of Canadian society. While the CBSA is charged with ensuring that businesses comply with trade requirements, compliance can only be achieved if there is a shared commitment between the CBSA and the business community. Everyone has an important role to play.

For more information, visit the Contact Us page on the CBSA's Web site or within Canada call the Border Information Service at 1-800-461-9999. From outside Canada call 204-983-3500 or 506-636-5064. Long distance charges will apply. Agents are available Monday to Friday (08:00 - 16:00 local time / except holidays). TTY is also available within Canada: 1-866-335-3237.

January 12, 2010

Marine Container Examination Program

Why is my container being examined?

Due to the large available volume within marine containers, they have been found to be a preferred method of transport for illicit goods. Smugglers use elaborate schemes and sophisticated techniques to conceal their illicit goods within marine containers. Even the most reputable importer is at risk to the techniques employed by smugglers. It is for this reason that an examination should not be considered as a cast of suspicion on a particular importer.

Representatives of shipping lines provide the Canada Border Services Agency (CBSA) with cargo information before containers arrive. Border Services Officers review this information using a number of computerized information systems. They then apply their experience in targeting and analysis to determine whether a container should be examined for contraband.

Why am I charged an additional fee for the CBSA to do its job?

The CBSA pays for the cost of inspection personnel, equipment and tools. The fees for presenting the goods for examination are generated by the facility operator to cover the cost of transportation to and from the examination facility and for unloading and reloading the container. These costs are billed to the shipping lines by the facility operator, who in turn passes the cost to the importer.

Why can’t my container be examined at my own facility or a facility of my choice?

Security of the goods and safety of the examination team and their equipment requires that examinations be conducted at a central location. Examination teams can operate more efficiently by using high-tech equipment to conduct thorough and timely examinations. It is not feasible or practical to transport this equipment to various locations to conduct examinations. Use of an examination facility ensures this equipment will be on hand and functional at all times.

How are examination facility operators selected?

The CBSA and the transportation industry have agreed that the best option for examining cargo containers for contraband is to use a specialized central examination facility. In 1989, we outlined the requirements for proper presentation of goods for examination to the shipping industry. It was then the responsibility of the shipping industry to select warehouse operators for the transportation, unloading, and reloading of containers at centralized examination facilities.

Who is responsible for damage to a container or its contents?

Any damage to a container or its contents is unfortunate. The party responsible at each stage of the shipping and examination process is responsible for damages caused while under their control. Border Services Officers conducting an examination of containers do so with the utmost care, carefully noting the condition of the goods, any visible damage, and the depth and intensity of the examination. Border Services Officers use X-ray machines and high-tech equipment such as the Ionscan to make the examinations less intrusive, more streamlined, and to reduce the risk of damage.

What legal authority does the CBSA have to examine my goods?

The examination process is authorized by the Customs Act. The Act makes the person reporting the goods responsible for presenting them to a Border Services Officer for examination. This includes the responsibility for all costs associated with transporting the goods to an appropriate and secure examination area, as well as the unloading and reloading of containers.

Why does the CBSA test my container for chemicals?

The CBSA has been taking action to protect its employees from the threat of fumigants for years. We enhanced our fumigant detection procedures in 2006, after an incident of exposure to an employee during a routine examination. As a result, the CBSA has implemented testing procedures for known fumigants and solvents. The CBSA now requires employees to test all marine containers prior to examination. To mitigate the risk of exposure, employees are instructed to follow procedures, which include mandatory testing for known common toxic industrial chemicals and setting ventilation timeframes followed by re-testing until safe levels are reached.

The CBSA remains committed to eliminating, by reducing to safe levels, any exposure of chemicals to its employees. The CBSA also recognizes that the chemical testing process can sometimes cause delay for importers, and has invested in new testing and ventilation equipment to help expedite this process.

If you have more questions about this program, contact your CBSA office. You can find the listing of CBSA offices and additional information about marine container examination at www.cbsa-asfc.gc.ca.

December 3, 2009

CN Notice: Teamsters strike over

Categories:
RAIL NOTICES

Article:
3 December 2009

CN Notice: Teamsters strike over

The following notice is from CN.

We are pleased to advise you that [yesterday] CN announced that the strike by locomotive engineers will end immediately as a result of an agreement to resolve the parties’ contractual disagreements through further negotiations, and, if necessary, binding arbitration.

TCRC locomotive engineers will be returning to work immediately.

On behalf of the CN team we want to thank all of our customers and industry associations for your cooperation and support during the labour disruption. We value your business and regret any inconvenience this labour disruption has caused you and your company.

September 22, 2009

The Duty Deferral Program - Access the World

Categories:
CANADA BORDER SERVICES AGENCY - FORMS AND PUBLICATIONS

Article

22 September 2009

The Duty Deferral Program - Access the World

Duty deferral information for entrepreneurs importing into Canada has been published on the CBSA website at: http://www.cbsa-asfc.gc.ca/publications/pub/bsf5042-eng.html.

October 2009

Changes to CPR Circular 7800, International Rules and Regulations

Please be advised that the following changes will be implemented in the reissue of  International Rules & Regulations Circular 7800, effective October 1, 2009.

Item 110: Manual Billing

• ·Change in fee from $20.00 to $55.00 per occurrence.

Item 112, 205, 290, 455, 790, 800: reference to Mis-Declared weight or contents

• ·Increase in mis-declared weight penalty from $2500 per container to $3,000 per container.

Item 165:  Hazardous Placarding

• ·Updated wording to align with standards published by The Association of American Railroad Bureau of Explosives.

Item 220:   Credit Terms 

• ·Change in policy wording re compliance with credit terms and possible actions triggered by non-compliance.

Item 260:   Terminal Service Charge

• ·Increase charges per the following table

Unit	Application	Charge Today	Charge effective  Oct 1, 2009
20 ft	Canada-Canada	$ 110.00	$ 125.00
20 ft	Cross-border	$ 105.00	$ 125.00
40/45 ft	Canada-Canada	$ 135.00	$ 150.00
40/45 ft	Cross-border	$ 125.00	$ 150.00

•  
• ·Moved the application of an additional terminal service charge to item 347

 Item 345:  Gate Charge, empty containers

• ·Wording change for clarification of the timing of the charge and to add that Regina and Saskatoon Terminals are exempt.

Item 347:  Gate Charge, Loaded containers

• ·Clarified the application  for an additional gate charge (formerly published in item 260 as a TSC).

Item 300 & 630:  Claims Filing/ Liability

• · Change in wording to clarify the terms and conditions,  including time limitation to file a claim.

Item 370:  Perishable Freight, special arrangements

• ·Combined charges to streamline invoicing. The current application is $10 per twice daily inspection and an additional $20 for ground power.   New application will be $40 combined for ground power and inspection services.

Item 455, 790:  Overweight Restrictions and Fees

• ·Items have been combined into one and changed to simplify and standardize our requirements.  Weight limits on 20 foot containers have been changed from maximum gross weight to net weight as outlined below:  Fees for overweight have also been adjusted / clarified.
•  

Changes to Overweight Restrictions and Fees

	Intra Canada &  between USNE & Canada	Between Canada and US Midwest	Intra U.S.
20ft Container · Line Haul rates apply if the weight of the container does not exceed: ·Maximum weight accepted:	Net weight: 47,500 lbs    47, 500 lbs	Net weight: 46,000 lbs    47,500 lbs	Net weight: 46,000 lbs   47,500  lbs
· Overweight Fee, per container	n/a	$ 300.00 (USF)	$300.00 (USF)
·Overweight Penalty, for exceeding the maximum acceptable weight.  Applies if discovered before loaded to railcar	Gate fee per item 347	Gate fee per item 703	Gate fee per item 703
·Overweight Penalty, per container.     Applies if the overweight is discovered after loading to railcar	$ 3,000  in currency of the freight	$ 3,000 (USF)	$ 3,000 (USF)
40/45ft Container ·Line Haul rates apply if the weight of the container does not exceed:   ·Maximum weight accepted:	Net weight: 60,000      Marked Capacity	Net weight: 48,000 lbs      Marked Capacity	Net weight: 48,000       Marked Capacity
·Overweight Fee, per container	$ 300.00	$ 300.00	$300.00
·Overweight Penalty, for exceeding the maximum acceptable weight.  Applies if discovered before loaded to railcar	Gate fee per item 347	Gate fee per item 703	Gate fee per item 703
·Overweight Penalty, per container.     Applies if the overweight is discovered after loading to railcar	$ 3,000  in currency of freight	$ 3,000 (USF)	$ 3,000 (USF)

If you require further information, or have any questions related to these changes, please do not hesitate to contact your Account Manager.

Claudio Minello
General Manager – International
Canadian Pacific

September 2009

U.S Corrects NAFTA Tariff Rules

Categories:
US CUSTOMS ARTICLES

Article

4 September 2009

U.S. corrects NAFTA tariff rules

The following was reported on in today's edition of "American Shipper".

President Barack Obama signed a proclamation Wednesday modifying rules of origin under the North American Free Trade Agreement to conform to the International Convention on Harmonized Commodity Description and Coding System.

The United States adjusted its Harmonized Tariff Schedule in 2006 to meet the international requirements, but certain modifications were inadvertently omitted from the presidential order at the time. The new proclamation instructs the U.S. International Trade Commission to make the necessary changes to the NAFTA rules.

The U.S. Harmonized Tariff Schedule modifications are available on the USITC website at: http://www.usitc.gov/publications/tariff_affairs/pub4095.pdf.

May 2009

ISPM 15 Solid Wood Packaging Update

PWS is an ISPM-15 certified facility. ISPM-15 is the international standard for heat treated and fumigated wood products. All products manufactured at PWS are certified for export worldwide. For reference the ISPM-15 standard and country regulations follow. Contact a PWS' representative today for further information or for your next crate/pallet.

The ISPM-15 standard allows for two treatment options of wood products:

1. Heat Treatment (HT): Wood packaging material should be heated in a schedule that achieves a minimum core temperature of 56oC for a minimum of 30 minutes. The American Lumber Standards Committee (ALSC) administers the US certification program for heat treatment.
2. Methyl Bromide (MB) Fumigation: The wood packaging material should be fumigated with methyl bromide. The National Wooden Pallet and Container Association (NWPCA) has been tasked by the US Animal and Plant Health Inspection Service to administer the fumigation program.

Dunnage must also be ISPM-15 compliant. The ISPM-15 standard has a specific mark for dunnage. If lumber is cut up for use as dunnage, that lumber should be marked every two feet so at least one such mark will be on all dunnage components.

ISPM 15 requirements apply to all species of coniferous (softwood) and non-coniferous (hardwood) packaging materials.

COUNTRY SUMMARY

*European Union

The European Union began enforcement of ISPM-15 01 March 2005. The EU deferred for a year their debarking and bark-free specifications (see dunnage exception below), but claim they will present technical justification for the additional requirements and begin enforcement March 2006. The EU has some variations that need to be clarified.

Marking

Until 31 December 2007 the EU will accept all previously recognized marks for heat treatment (HT, "no bug" logo, and ISPM-15 mark). For fumigation; however, they will only accept the ISPM-15 mark. If you have packaging with the previous fumigation mark you must re-treat and re-mark.

Dunnage

If dunnage is treated and marked it need not be bark free. If dunnage is not marked it must be bark free and devoid of pests and signs of live pests.

If the EU implements debark and bark free requirements in March 2006, as they plan, dunnage must comply with the same treatment, marking, and debarking as all other wood packaging.

Notice to Department of Defense (DOD) Venders

The Department of Defense has announced that its shipments both "inside and outside of the United States must meet ISPM 15." This requirement will be reflected in Defense Logistic Agency solicitations issued as of August 1, 2006. DOD wood packaging materials must be heat treated, (DOD does not accept fumigation as a treatment method.

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May 27, 2009

CP Notice: Lacey Act Blanket Declaration Pilot.

Categories:

RAIL NOTICES

Article

27 May 2009

CP Notice: U.S. Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) Lacey Act Blanket Declaration Pilot Program

This is further to our Customer Bulletin of March 24, 2009, concerning USDA APHIS implementation of the Revised Lacey Act Provisions.

This update will be of particular interest to Shippers and U.S. Importers who:

a) Ship / Import goods to the U.S. subject to Lacey Act provisions
b) Participate in U.S. Customs and Border Protection's (USCBP)

Automated Line Release (ALR) program The USDA is introducing a blanket Declaration Pilot Program for shippers using the USCBP ALR program.

The Pilot Program allows importers and shippers currently using ALR codes to continue doing so provided they participate in the Pilot. Those who do not participate in the program will have their ALR C4 code inactivated effective June 1, 2009.

The Lacey Act Blanket Declaration Pilot Program is open only to those entities currently participating in one of Customs and Border Protection's expedited border release programs, Automated Line Release (ALR) or Border Release Advance Screening and Selectivity (BRASS). This pilot program will test the feasibility of collecting the information required through the use of a periodic "blanket" declaration, with subsequent reconciliation reports.

Eligible importers who wish to participate in the pilot must send a letter to APHIS (to the address provided below) specifically requesting participation in the program. The letter must contain the importer's C4 code and the name and telephone number of an individual who will serve as a point of contact should APHIS require additional information.

The blanket declaration must be submitted in paper form and mailed to:

Lacey Act
c/o U.S. Department of Agriculture
Box 10
4700 River Road
Riverdale, MD 20737

Canadian Pacific strongly encourages shippers and U.S. importers to review the details of this program. Participation will protect your Automated Line Release reporting privileges and help facilitate the cross border fluidity of your Lacey Act eligible goods.

Details on the USDA APHIS Program are available at: http://www.aphis.usda.gov/plant_health/lacey_act/

Specific questions should be directed to your customs broker or the USDA APHIS.

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May 1, 2009

Guidance on the Lacey Act Declaration

(04/30/2009) Introduction
The Lacey Act (16 U.S.C. 3371 et seq., the Act) as amended makes it unlawful to import, export, transport, sell, receive, acquire, or purchase in interstate or foreign commerce any plant, with some limited exceptions, taken or traded in violation of the laws of the United States, a U.S. State or a foreign country. On February 3, 2009, the U.S. Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) published a notice in the Federal Register announcing a revised enforcement phase in plan for the Act’s requirement for a plant product import declaration (see 74 Fed. Reg. 5911 for details). The revised plan identifies a list of products and the associated Harmonized Tariff Schedule (HTS) Chapter or Heading as to which the requirement for a Plant Product Declaration Form (PPQ 505) is anticipated to be enforced over the next eighteen months.

PPQ 505: Plant Product Declaration
A declaration is required to obtain release of a covered product. Customs and Border Protection (CBP) has automated the process for collecting the PPQ 505 data elements. Data will be transmitted to CBP’s Automated Commercial System (ACS) through the Automated Broker Interface (ABI) in the cargo release module. Electronic filing of the PPQ 505 declaration will not preclude remote location filing. Additional information on how to electronically file the PPQ 505 data can be found in the Participating Government Agencies chapter in the Customs and Trade Automated Interface Requirements (CATAIR) on CBP.gov. An importer has the option to complete and present a paper PPQ 505 for each line. If a paper form of the PPQ 505 is used, the importer must mail the form to USDA at the address on the form.

As a reminder, providing false or misleading information to the U.S. government can result in civil or criminal actions against any involved party and may result in the seizure and forfeiture of the merchandise.

Covered Goods for Enforcement of the Declaration
As described in the February 3, 2009 notice, enforcement of the declaration requirement will begin with the tariff schedule headings shown in the following table. Additional chapters are scheduled for enforcement starting October 1, 2009 and April 1, 2010 (see 74 Fed. Reg. 5911 for details).

HTS Chapters Scheduled for the First Phase of Enforcement of the Plant Import Declaration

HTS Code	Brief Description
4401	Fuel wood
4403	Wood in the rough
4404	Hoopwood, poles, posts, stakes
4406	Railway and tramway sleepers
4407	Wood sawn or chipped lengthwise
4408	Sheets for veneering
4409	Wood continuously shaped
4417	Tools, tool handles, broom handles
4418	Builders’ joinery

Implementation of Enforcement
Acceptance of electronic submission of the required data elements began April 1, 2009. As previously published, enforcement of the data collection requirement will begin on May 1, 2009. The 30-day delay of enforcement has allowed the government time to formulate a plan for integrating the Lacey declaration requirement into CBP’s expedited border release programs, Automated Line Release (ALR) or Border Release Advance Screening and Selectivity (BRASS). This plan is presented below.

Pilot Program
The government will begin a pilot program on May 1, 2009, for those entities currently participating ALR or BRASS whose products require a Lacey Act declaration during the current phase of enforcement. Under this pilot, the participant must make a choice as to whether to remain active in the expedited program or to be removed from the expedited program.

If a participant opts to be removed from the expedited program, no further action is necessary. Effective June 1, 2009, that participant’s C4 code will be inactivated. If a participant opts to remain in the expedited release program, a two step process must be completed.

Step 1
The participant must file with APHIS an advance estimated PPQ 505. Initially, and for purposes of this pilot, the estimated PPQ 505 must be filed on a monthly basis. It must include all data elements required on the PPQ 505. Genus, species, value, and quantity fields should be an estimation of the participant’s planned imports during the next calendar month. The estimated PPQ 505 must be filed on or before the 15th day of the month prior to the reporting period. The deadline for the first estimated PPQ 505 is May 15, 2009, covering expedited release shipments planned for the month of June 2009.

Step 2
The participant must file with APHIS reconciliation within 15 days after the end of the month. This reconciliation will be submitted in a format to be established and made available on the APHIS website. The reconciliation will provide information on the actual shipments made during the previous month. The deadline for the first reconciliation is July 15, 2009.

As an example, if a participant in ALR or BRASS that is required to make a Lacey Act declaration wishes to remain in an expedited program for the month of June 2009, the participant must file an estimated PPQ 505 with APHIS no later than May 15, 2009, for the covered products that the participant expects to import during the month of June. The participant must then also file a reconciled PPQ 505 with APHIS no later than July 15, 2009.

This process must be completed monthly during the pilot. The U.S. government will rely on the collected data in its reports to Congress and in determining possible refinements and extensions to enlarge the process and make it less burdensome for all involved.

For All Importers
CBP expects and urges most importers to use the electronic system to file the declaration. If an entry package is presented to CBP to obtain release, the CBP 3461 form will be annotated in Box 29 to indicate “PPQ 505-Paper” if the declaration is presented in paper or “PPQ 505-ABI” if the declaration information was submitted electronically. If a paper form is submitted to CBP as part of the entry package, the paper form will be returned to the importer (or importer’s representative) for mailing to USDA. CBP will not mail forms to USDA.

As a reminder, providing false or misleading information to the U.S. government can result in civil or criminal actions against any involved party and may result in the seizure and forfeiture of the merchandise.

APHIS has been designated the lead regulatory agency for these new requirements and CBP is assisting APHIS with the electronic collection of data to fulfill the import declaration requirement. CBP will continue to work as part of the interagency working group, consulting with trading partners, importers, exporters, and other interested groups as the provisions of the Act are fully implemented. The most current information on implementation of the amended Lacey Act can be found on the USDA website.

If you have any CBP related questions, please contact Ms. Anne Rothrock, Office of International Trade, at (202) 863-6573.

Click here to view article CBP.gov

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November 2008

NAFTANow.org Foreign affairs and Internation Trade Canada

12 November 2008

In cooperation with the U.S. and Mexican governments, the Ministry of International Trade has released a website dedicated to NAFTA, to provide Canadians, Americans, and Mexicans with information about how the agreement works and the many ways in which it has improved the lives of North Americans.

The website contains facts, myths, success stories and results of NAFTA, and much more. To review, please visit: NAFTANow.org.

October 2008

ROE Logistics wins Silver Award in the Mississauga Business Times' 2008 Top Performer Awards.

View the article

Fall 2008

In Fall of 2008, Paul Bellack formally opened operations in Northern New Jersey to expand our range of services into the ports of Newark, Elizabeth, and New York.

The office is strategically located within the facility of our warehousing partner, Federation Logistics LLC, offering over 250,000 square feet of fully-racked storage space and U.S. Customs bonded cargo facilities. If you have any questions regarding operations in New Jersey, or you think we may be of some additional assistance to you, please do not hesitate to contact us at the following address:

Paul Bellack Inc.
149 Black Horse Lane
North Brunswick, NJ 08902
(732) 422-1784

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July 25, 2008

Wood Packaging Material Moving Between Canada and the United States - Proposed Removal of the Exemption of ISPM No. 15

The Government of Canada is working hard to limit the spread of invasive species and protect Canada’s valuable forests. The Canadian Food Inspection Agency (CFIA) and the United States Department of Agriculture’s Animal & Plant Health Inspection Service (APHIS) are considering enforcing a standard for wood packaging to prevent the introduction and spread of invasive species between the two countries.

Canada and the U.S. are moving forward with consultations on the proposed removal of the exemption of the International Standard for Phytosanitary Measures (ISPM) No. 15 on wood packaging material moving between Canada and the U.S.

Wood packaging imported to Canada is regulated under an international standard, ISPM No. 15, to prevent invasive species from being introduced into our country. This standard requires wood packaging to be heat-treated or fumigated and then marked to indicate that it has been treated. Wood packaging may also be accompanied by a phytosanitary certificate that specifies the treatment used. Up until now, moving wood packaging between Canada and the continental United States has been exempted from this international standard.

With a growing number of invasive species being introduced into the two countries, CFIA and APHIS have jointly agreed to terminate the exemption and begin enforcing ISPM No. 15 for wood packaging material between the U.S. and Canada. This move will help to protect forests against invasive species and means Canadian wood packaging will have a place in the international marketplace where the standard is already enforced.

To allow sufficient time to adjust, the CFIA and APHIS are developing a strategy that involves a gradual multi-year phase-in period. Complete implementation of the ISPM No. 15 is expected by 2011.

Before the import requirement is enforced, the CFIA will address concerns raised during consultations with affected stakeholders. Industry, exporters, importers, brokers, wood packaging manufacturers and interest groups are encouraged to provide comments on the proposed phase-in approach to CFIA within the next 90 days at the following address:
http://www.inspection.gc.ca/english/plaveg/for/cwpc/consulte.shtml.

This notice is available on the CFIA website at: http://www.inspection.gc.ca/english/corpaffr/newcom/2008/20080724e.shtml.

March 3rd, 2008

What is changing and why

Why is PIP changing?

The PIP program is being modernized as part of Canada’s commitment under the Security and Prosperity Partnership of North America to enhance border security, combat organized crime and terrorism, and achieve mutual recognition and compatibility between Canada’s PIP program and the United States’ Customs-Trade Partnership Against Terrorism (C-TPAT) program.

On December 20, 2007, CBSA and U.S. Customs and Border Protection (CBP) representatives met to move forward on achieving mutual recognition between the PIP and C-TPAT programs. The CBSA continues to work closely with U.S. CBP to ensure the alignment of both programs and to negotiate mutual recognition.

Steps are also being taken to ensure that the PIP program’s new requirements are better aligned with international standards such as the Framework of Standards to Secure and Facilitate Global Trade (SAFE) and the Authorized Economic Operator concept of the World Customs Organization.

What is changing?

Program changes include the implementation of minimum-security criteria for each sector (air, highway, rail and marine carriers, importers/exporters, warehouse operators, couriers and customs brokers) outlined in a new security profile, site visits prior to approval and a revised partnership agreement (memorandum of understanding or MOU).

New program policies will outline the circumstances under which applications will be denied, the conditions under which membership will be suspended, reinstated or cancelled and the appeal process for CBSA decisions on membership matters.

MOU

The present General MOU and Carrier MOU are being combined into one document. The changes are minor and mostly consist of revised wording to ensure that the CBSA and companies are more aware of their roles and responsibilities as partners, and of the fact that they can be removed or suspended from the PIP program.

Security Profile

The current Security Questionnaire is being replaced by a security profile that is divided into generic sections (which apply to all applicants) and sections specifically developed for each of the business sectors: highway, rail, marine and air carriers, customs brokers, warehouse operators, importers/exporters and couriers. The profile will identify minimum-security criteria in the areas of physical security, procedural security, conveyance security, data and documentation protection, personnel security and supply chain security for each sector. The security profile is a work in progress and a result of the input received on the draft security profiles between October and December 2007.

When will the new security profile and MOU be made public?

The final security profile and MOU will be available by March 31, 2008 so that your company can get a head start in meeting the new security requirements. However, it must be noted that applications under the modernized PIP program will be accepted on or after June 30, 2008.

Benefits of changes

The modernized PIP program will align the PIP program security requirements with those of the U.S. equivalent Customs-Trade Partnership Against Terrorism (C-TPAT) program. In addition, it will move PIP requirements a step closer to those of the World Customs Organization’s Framework of Standards to Secure and Facilitate Global Trade (SAFE).

This will make the Canadian and U.S. trade chain security requirements more compatible, making it simpler to be eligible for both programs. In addition, companies will benefit from an enhanced reputation by demonstrating their adherence to high security standards. Companies will also be better positioned to achieve international recognition.

How the modernized PIP program will work

• Application process
• Monitoring compliance
• Penalties

Application process

The applicant will be required to complete a security profile. A CBSA officer will then review the profile to ensure that all sections have been completed, identify areas of concern, determine if the company is likely to meet the minimum-security requirements and perform a risk assessment of the company. Once the profile has been assessed, a regional CBSA intelligence officer will follow up with the company by scheduling a site review to confirm the information provided in the profile and prepare an assessment report. If the report concludes that the applicant meets or exceeds the requirements, the MOU will be sent for signature, thereby granting the company’s membership in the program.

Monitoring compliance

The security review performed by the CBSA intelligence officer confirms that the applicant’s security measures are compliant with the PIP program’s requirements. In addition, the CBSA intelligence officer will periodically meet with company representatives to exchange information and provide awareness sessions. Subsequently, every three years, a re-assessment will be conducted to reflect any substantive company changes, including changes to the security profile. The CBSA may at any time conduct a periodic security assessment.

Penalties

There are no monetary penalties associated with the PIP program. However, companies found to have contravened the Customs Act or any other Act of Parliament, or that are no longer compliant with PIP program requirements or their roles or responsibilities as PIP members may have their membership suspended or cancelled. A process will be put in place to appeal CBSA decisions on membership matters. The CBSA will seek your input on the draft policies relating to the denial, suspension, reinstatement and cancellation of membership, as well as the appeal process as these draft policies become available.

Reference: http://www.cbsa-asfc.gc.ca/security-securite/pip-pep/mod-eng.html

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February 28, 2008

Quebec Spring Thaw Restrictions

Categories: RAIL NOTICES


Intermodal & International Customs Bulletin: Quebec Spring Thaw Restrictions

The Quebec Ministry of Transport will implement the annual spring thaw weight restrictions in March 2008.

Effective March 1, 2008 Canadian Pacific will not accept/ingate any overweight containers. Shipment weights must be reduced and evenly distributed in the unit in order to avoid possible charges and fines associated with overweight loads. Canadian Pacific will not accept responsibility for any such charges. Overweight loads will be returned to the Shipper at their own expense.


ZONE 1    Montreal--Montmagny--Sherbrooke--St-Jerome
 
ZONE 2    Val D'Or--Chicoutimi--Sept-Iles--Riviere du Loup

ZONE 3    Remaining portion of QUEBEC


Once Quebec Spring Thaw restrictions have been published by the Quebec Ministry of Transport, Canadian Pacific will advise via broadcast when the restrictions will begin and end. In order to prepare for the timely delivery of goods, Canadian Pacific will not accept/ingate containers overweight effective March 1, 2008.

Traffic for the Ottawa Valley region including, but not limited to, the following Ontario destinations are ramped over Lachine and not Vaughan:

Summerstown, Cornwall, Cardinal, Prescott, Brockville, Kingston, Iroquois,Greely, Ottawa, Orleans, Gloucester, Nepean, Carp, Carleton, Place, Frankville, L'Orignal, Hull, Hammond, Navan.

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March 5, 2007

Daylight Saving Time (DST) New Rules for 2007

We have received a number of inquiries about the new Daylight Saving Time (DST) rules for 2007, and their potential impact on NIST Time Services. While the rules for DST have changed in 2007, all NIST time services will continue to operate properly under the new rules. Let's take a brief look at what DST is, what the new DST rules are, and how the NIST time services will handle the new rule changes.

What is Daylight Saving Time?

Daylight Saving Time, or DST, is the period of the year when clocks are moved one hour ahead. In the United States, this has the effect of creating more sunlit hours in the evening during months when the weather is the warmest. We advance our clocks ahead one hour at the beginning of DST, and move them back one hour ("Spring forward, fall back") when we return to Standard Time (ST). This has the effect of moving one hour of daylight from the morning to the evening.

DST was formally introduced in the United States in 1918. Today, most of the country and its territories observe DST. However, DST is not observed in Hawaii, American Samoa, Guam, Puerto Rico, the Virgin Islands and the state of Arizona (with the exception of the Navajo Indian Reservation, which does observe DST).

Daylight Saving Time and time zones are regulated by the U. S. Department of Transportation, and not by NIST. However, as an official timekeeper for the United States, NIST observes all rules regarding DST when it distributes time-of-day information to the public.

What are the new rules for Daylight Saving Time?
The rules for DST have changed in 2007 for the first time in more than 20 years. The new changes were enacted by the Energy Policy Act of 2005, which extended the length of DST in the interest of reducing energy consumption. The new rules increase the length of DST by about one month. DST will now be in effect for 238 days, or about 65% of the year, although Congress retained the right to revert to the prior law should the change prove unpopular or if energy savings are not significant. Beginning in 2007, Daylight Saving Time in the United States

• begins at 2:00 a.m. on the second Sunday of March and
• ends at 2:00 a.m. on the first Sunday of November

In 2007 DST will begin on March 11th. Set your clocks ahead one hour on Sunday, March 11, 2007.
In 2007 DST will end on November 4th. Set your clocks back one hour on Sunday, November 4, 2007.

I set my computer clock to NIST time. Will the new rules affect me?

There shouldn't be any problems if your operating system has the latest updates. All NIST time services broadcast Coordinated Universal Time (UTC). Corrections for your local time zone and for Daylight Saving Time are provided by your computer's operating system. Therefore, it is important that you have the latest software updates for your operating system. For example, if you use Microsoft products, information about DST updates can be found here:

• http://www.microsoft.com/windows/timezone/dst2007.mspx

Other operating systems should also have DST updates or patches available. Please check with the provider of your operating system for the latest information. Visit this site for more information and links pertaining to a number of different systems:

• http://www.calconnect.org/dstlinks.html

The great majority of computer time codes sent by the NIST Internet Time Service (ITS) use the Network Time Protocol (NTP), which contains no information about DST, and relies on your computer's operating system to determine whether DST or ST is in effect. Therefore, if you use NTP, it is especially important to use an operating system that has been patched to conform to the new DST rules. The NIST time codes sent using the Daytime Protocol of the ITS or sent by telephone using the Automated Computer Time Service (ACTS), do contain DST information and have been modified to conform to the new DST rules. However, the advance notification flags provided by ACTS and by the ITS in daytime format are advisory, and will not override the configuration of your operating system, so it is still important to have the latest operating system updates.

I have a radio controlled clock that receives NIST time. Will the new rules affect me?

Your radio controlled clock should automatically implement the new DST rules. The WWVB broadcast contains information that tells your clock whether DST or ST is currently in effect. NIST always sends this information to agree with the current DST rules, so your clock should change automatically on the day of the change, just as it has in previous years. If the time is wrong after the DST change, make sure that your clock has recently received the time signal. Many radio controlled clocks have a synchronization indicator that will tell you if your clock has recently synchronized. If the clock isn't receiving the signal, click here for some tips on improving reception. If it has received the signal recently, check to make sure that the clock's time zone setting is set properly. Also, if you live in an area where DST is not observed (Arizona, for example), you need to disable the automatic DST function on your clock.

I have a non-radio controlled clock that used to automatically correct itself for DST. Will it still work?

The only way to find out is to wait and see, or to contact the manufacturer of the clock. There are a large number of non-radio controlled clocks, marketed under names like "AUTOSET" or "SMARTSET" that have internal firmware that automatically changes the time by one hour on the transition days to and from DST. These clocks do not connect to a NIST time service, and some of them will no longer work properly due to the DST rule change. For example, clocks manufactured prior to the rule change will probably not switch to DST in March, but will wait until April in accordance with the old rule. If you have a clock like this that fails due to the new rules, your only recourse is to adjust the clock manually, or to contact the manufacturer and ask for an upgrade or a replacement.  

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