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 Today's Headlines | Wednesday, August 13, 2008


Please click on each headline for today's top stories!

I.E.Canada News
1) On-Line Registration Now Open for I.E.Canada's 77th Annual Conference & Trade Show
2) Vancouver Chapter Breakfast Seminar, September 30
3) I.E.Canada Customs Course in Calgary – Hotel Discount Ends August 21

News of the Day
4) Stalled Free Trade Talks Hoping for Some Help

5) Canada Says Rail Service Review May Take 18 Months
6) IANA Reports Mixed Q2 Picture for U.S. Intermodal Traffic
7) U.S. Trade Deficit Narrows in June
8) Freight Index Rose 0.1% in June from May
9) U.S. Set to Lose Place as World’s Largest Manufacturer
10) Russian Federation: Fish and Seafood Market Update
11) Energy Prices, Slowdown Push Japan's Economy into the Tank
12) Chinese Apparel Export Growth Rate on the Decline
13) CFIA-AIRS Updates August 13, 2008
14) [Indian] Tea Exports Look Up in First Half

Customs
15) Revised D-Memoranda

16) Cancelled Customs Notices and D-Memoranda
17) Expansion Eyed for SFI Scan Trial

Industry Events
18) CIFFA Module I & II Education Programs Registration Deadline August 15
19) Global Economic Forecast by PIERS(R) Chief Economist – Free, Live Audio Webcast on August 14




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I.E.Canada News

On-Line Registration Now Open for I.E.Canada's 77th Annual Conference & Trade Show

I.E.Canada's 77th Annual Conference and Trade Show, scheduled for October 27-29, 2008 at the Delta Meadowvale Resort and Conference Centre by the Toronto airport, is gearing up to be the best ever. With the high level of speakers on the program and an array of topical and timely subjects related to trade, customs and logistics on the agenda, we are looking forward once again to a very successful conference.

Current information on I.E.Canada annual conference – including agenda, on-line registration, sponsorship opportunities, and trade show registration – are now available on I.E.Canada website at http://www.iecanada.com/2008-77th-Annual-Conference.html (updated weekly).

Become a Delegate / On-line Registration:
Network among your industry peers. On-line registration is now open at
http://www.iecanadaregistration.com/Transaction/Conference.aspx?Conf_Id=97

Become an Exhibitor:
This year there is a limited amount of trade show booths available. To ensure your company is guaranteed a spot, please contact Jesse Arsenault: 416-595-5333 ext. 37 or conference@iecanada.com.

Become a Sponsor:
Sponsors will receive recognition through pre-show, at-the-show, and post-show benefits. To customize a sponsorship package or for any questions related to sponsorship, please contact Fée Kiessling: 416-223-7072 or fkiessling@iecanada.com. We have also posted conference statistics, including participant profiles, from two of I.E.Canada’s latest conferences. Please visit http://www.iecanada.com/events/2008/conference/Wrap-Up-Annual-75th.pdf

We look forward to seeing you on October 27, 2008 in Toronto!

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Vancouver Chapter Breakfast Seminar, September 30

How Will New Product Safety Legislation Impact Your Import Operations?

Vancouver Chapter Breakfast Seminar
September 30, 7:30-9:30 a.m.
Richmond Inn, 7551 Westminster Hwy, Richmond

More information at http://www.iecanada.com/events.html
Register online at http://www.iecanadaregistration.com

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I.E.Canada Customs Course in Calgary – Hotel Discount Ends August 21

September 22-24, 2008, Delta Calgary South, 135 Southland Drive SE

Back by popular demand, the Customs Duty and International Trade Course is being offered this fall in Calgary.

This course is a one-stop shop for your international trade and customs needs. As rigorous new Canadian and U.S. government procedures for importers, exporters, carriers, customs brokers and freight forwarders are being implemented, complying with all the requirements will be critical to ensure the speedy arrival of your goods.

Security and compliance are top priorities for trade and customs professionals. Supply chain security and accountability spells new responsibilities for importers and exporters. How are you and your colleagues managing these new responsibilities?

This three-day intensive course is designed to provide a basic understanding of the rules that govern the international trade of goods and services. By taking the course you will be in a better position to assess the risks and exploit the opportunities in international trade (including NAFTA, WTO and FTAA). You will also recognize how these agreements should feed into your organization’s or your client’s strategic decision-making process.

I.E.Canada is delighted to once again welcome top experts to teach this hands-on international trade course. This event gives trade professionals a unique opportunity to hear and question top trade and customs experts on the latest programs while they network with industry peers.

Register today to guarantee your place at this course. Nowhere else can you get this timely and comprehensive update in only three days!

Organizational Benefits Include:

The Customs Duty and International Trade Course offers many benefits to your organization including:

• The ideal training environment for the advancement and development of your customs and trade specialists
• A great opportunity to extend your own in-house or in-firm training initiatives
• A comprehensive program that combines examination, analysis and interpretation of legislation and compliance rules
• Practical applications - illustrated and tested processes to effectively deal with everyday trade logistics issues

For a full course brochure, please click here, or call Jesse Arsenault at 416-595-5333 ext. 37.

To book your hotel accommodations in Calgary, call the Reservations Department at 403-225-5800 or toll-free at 1-877-278-5050 and ask for the in-house Reservation Department. You must identify yourself as being with I.E.Canada, Canadian Association of Importers and Exporters and call prior to August 21, 2008 in order to qualify for the group rate. Alternately, the fax number is 403-225-5813 and the email address is reservations@deltacalgarysouth.com.

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News of the Day

Stalled Free Trade Talks Hoping for Some Help
(Embassy – Lee Berthiaume)

Trade Minister Michael Fortier's assertion that Canada is going bilateral has the world wondering what will really change

Diplomats from countries with which Canada has been engaged in long free trade negotiations are encouraged by Trade Minister Michael Fortier's assertion that the collapse of the Doha round of World Trade Organization talks will see Canada become more active on bilaterals. However, while hoping the push will include greater flexibility, including a move away from demanding the same treatment as the United States, there appear to be few signs as yet that any substantial change has taken place.

Two weeks ago, Mr. Fortier was in Geneva when the Doha talks were declared dead. In a conference call with reporters, the minister declared that while multilateral trade liberalization had taken a blow, Canada would become more aggressive in pursuing bilateral deals. "In terms of opening trade corridors for our exports, we want to continue down the path of bilaterals," he said, adding the government will be "knocking on doors around the world to create new opportunities for our farmers and exporters."

The Conservative government had already been much more active on free trade agreements and other bilateral deals than previous governments, launching talks with Peru, Colombia, Jordan, the Dominican Republic, Panama and the Caribbean Community (CARICOM). It had even concluded negotiations with a four-member bloc of European countries, Peru and Colombia.

However, free trade talks with Singapore, South Korea and a bloc of four Central American countries – all launched by the Liberals earlier this decade – have barely moved even with the Conservatives at the helm.

While the Department of International Trade said yesterday it stands ready to conclude a "balanced agreement" with the four Central American countries, questions sent to it last week as to how the government will move ahead following the collapse of Doha and whether it will change its trade deal negotiating tactics were not answered by press time.

Canada Wants U.S.-Style Deals

Canada launched negotiations with South Korea in July 2005, and have so far seen 13 rounds come and go. The discussions have become extremely sensitive given implications for the Canadian automobile and shipbuilding industries. However, the South Koreans have also taken issue with Canada's insistence that it get as good a deal as the Americans did last year.

Youn-Jung Kim, second secretary at the South Korean Embassy, said last week that she was encouraged by Mr. Fortier's statements following the collapse of the Doha round, and that both countries "are very much interested in concluding a FTA." She said another round has been planned – the last one was in March – but she was unaware of any dates. At the same time, "the official statements said that Canada will be more active with the bilateral negotiations, but I have not seen detailed orders or actions."

Ms. Kim said the Canada-South Korea talks have reached a point where political will is essential for reaching a successful conclusion, which could be a factor with Doha gone. However, "I think it's somewhat early to say that Canada will be more positive or too active, that they'll make concessions."

Canada launched free trade talks with four Central American countries – El Salvador, Guatemala, Honduras and Nicaragua – in November 2001 and 10 rounds were held until talks officially stalled in February 2004. Since then, there have been unofficial visits and meetings, but, as yet, dates for an 11th round of so-called Canada-CA4 talks have yet to be set.

Carolina Calderon, minister counsellor at the Embassy of El Salvador, said there have been tentative plans to get negotiators back together for September, and she expressed hope that Mr. Fortier's support for completing bilateral deals will include the CA4.

Ms. Calderon said when the negotiations were launched, Canada made strong demands and was unwilling to really bend on key issues of importance to the Central American countries, like refined sugar and textiles. Part of the reason was Canada was worried any concessions made to the CA4 would also have to be given to other countries in the hemisphere through the Free Trade Area of the Americas.

By the time talks stopped, Ms. Calderon said, "we were very keen to negotiate and Canada seemed to be hesitant."

The Central American countries turned to the United States and completed a deal in 2005 before meeting with Canadian officials to discuss relaunching talks.

"Canada comes to us and says 'We want more or less the same treatment as you've given the United States' and we said no," Ms. Calderon said. "That's not possible because, first of all, the United States is the main partner of Central America, main trading partner, and the relationship with the United States, I'm not saying it's better, but we have more trade with the United States than we have with Canada."

Bad Perception Abroad

It doesn't help, Ms. Calderon added, that there is a perception around the world that Canada isn't a country that finishes the deals it starts. "So what you have to also think about is the perception of Canada having negotiations that haven't been finished," she said, "and Canada is a country that never seems to finish the negotiations."

However, Ms. Calderon said that since coming to power, the Conservative government has been much more active in trying to conclude trade deals than the Liberals before them. Yet while she felt Mr. Fortier's comments were positive, how those comments will translate into action will be telling. "Now that they've said they're going to concentrate more on bilateral agreements, whether Canada is going to decide to be slightly more flexible with the Central Americas than they have been before, I don't know that," she said. "Whether Canada is going to be very much more flexible, I would like to know."

Meanwhile, there are no signs that Canada and Singapore are getting any closer to hammering out an agreement. Negotiations started in October 2001 and have seen eight rounds come and go, the last being in August 2007.

A spokesperson at Singapore's Ministry of Trade and Industry said in an email that "Canada is an important trading partner and on the Canada-Singapore FTA, good progress has been made after eight rounds of negotiations" and that the Asian nation is "looking forward to working with Canada to finalize" the deal.

However, an official at the Singaporean Embassy in Washington said he was unaware of any movement to restart talks. "I have not heard of any recent development on the Singapore-Canada FTA front," the official said. "All FTAs are important...but both countries must want to complete it. It's not just a case of one country wanting and the other not wanting. Both must want to see the FTA completed and you have to see what is the package on the table. …It's a question of demands, requests and demands and the concessions that are being set on the table."

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Canada Says Rail Service Review May Take 18 Months
(Reuters – Lynne Olver)

A review that will examine freight services provided by Canadian National Railway Co and Canadian Pacific Railway Ltd could take up to 18 months to complete, the Canadian government said on Tuesday.

The review, which was announced last year and began in April, covers Canada's rail-based logistics chain including shippers, terminal operators, ports and vessels.

It will be a two-phased process, Ottawa said in an update. The first phase will investigate problems and analyze data, and the second phase will see a three-person panel consult participants and make recommendations.

"The fact that we are moving forward with this review is good news for shippers of a broad range of commodity groups and will benefit grain farmers as well," Canadian Transport Minister Lawrence Cannon said in a statement.

"I am particularly interested in the development of indicators that would help monitor system performance and expedite improvements when problems arise."

Canada's two railways, CN and CP, have enjoyed a booming business in recent years, but some customer groups, particularly grain shippers, say service levels have deteriorated while rates have climbed.

Canadian grain shippers rely on the railways to ship their products from the Prairies, one of the world's largest exporting regions, to ports more than 1,000 km (600 miles) away.

The terms of reference for the review are at http://www.tc.gc.ca/pol/en/acg/acgb/freight/terms-final.htm. Transport Canada invites interested parties to submit written comments at RFSR-ESMF@tc.gc.ca.

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IANA Reports Mixed Q2 Picture for U.S. Intermodal Traffic
(Transport Intelligence)

A new report published by the Intermodal Association of North America (IANA) highlights contrasting fortunes for the U.S. domestic and international intermodal freight transport sectors during the second quarter of this year.

The IANA reported that "despite a lagging economy and a sustained contraction in import volumes, domestic intermodal volume produced admirably" during that period, achieving its highest growth rate since Q2 2004. The trade association said that during the latest 2008 quarter, total domestic intermodal volume rose "a respectable" 5.4% over 2007 figures, according to Intermodal Market Trends & Statistics, a comprehensive intermodal volume data report published by IANA. "It was the 11th straight quarter that domestic container volume has posted year-over-year gains," stated the association.

"Reversing recent trends, the quarter's results showed not only domestic containers, but trailer activity also posting increases in volume growth," it continued. "Trailer volume increased 1% during the quarter – a first in over three years – while domestic containers posted an impressive 8.1% gain."

However, continued the IANA, the domestic intermodal sector's "impressive" performance during the quarter was still not able to counter a continued decline in international volume. Sluggish consumer spending and its affect on ISO container traffic had pulled down international container volume 5.9% over the same period in 2007, reported the association. "The optimistic news is that total intermodal volume is only down a recoverable 1.9% from last year and has half a year to retreat from negative territory as current economic woes hopefully dissipate," it added.

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U.S. Trade Deficit Narrows in June
(CNN Money)

The U.S. trade deficit contracted in June, according to a government report released Tuesday, surprising economists who expected an increase. The Commerce Department reported that imports exceeded exports by $56.8 billion, down from a revised $59.2 billion in May.

Economists had expected the gap to widen to $61.9 billion, according to a consensus estimate compiled by Briefing.com.

Exports in June were $164.4 billion, up $6.4 billion or 4.1% from $158 billion in May.

Fay Johnson, a statistician with the U.S. Census Bureau, said this month's exports are the highest in the nation's history, topping the last record set in May. The weaker dollar helped drive exports of industrial supplies and materials, capital goods and American foods, beverages, consumer goods and autos.

The growth in exports has helped the U.S. economy by boosting gross domestic product, but has a price, according to Bernard Baumohl, chairman of the Economic Outlook Group. "This is good for GDP, but it makes our economy more reliant than ever on growth of sales overseas. Had it not been for exports, our economy would have been negative," Baumohl said.

The value of imports, driven by high fuel prices, also rose to $221.2 billion – $3.9 billion or 1.8% more than May imports of $217.2 billion.

A big drop was felt in imports for consumer goods, a sign of the weakening U.S. economy. Imports sank in consumer goods, feeds and beverages, and capital goods from May. There were increases in imports in industrial supplies and materials, and automotive vehicles.

Fuel prices drive imports

Petroleum accounted for 20.1% of June's imports, according to Johnson, the Census statistician. For the month prior, petroleum accounted for 17.9% of imports. That's up from June 2007, when petroleum accounted for 13.6% of goods and services, Johnson said. Americans also imported more oil than in May, up 1.36%.

A big drop was felt in imports for consumer goods including food and beverages, a sign of the weakening U.S. economy. Imports in industrial supplies and materials and automotive vehicles increased.

The largest trade gap exists between the U.S. and China. From May to June, that gulf widened by $400 million to $21.4 billion, according to the Census Bureau.

This month's trade deficit is the most narrow since March's $56.5 billion gap.

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Freight Index Rose 0.1% in June from May
(U.S. Dept of Transportation)

The Freight Transportation Services Index (TSI) rose 0.1 percent in June from its May level, rising for the second consecutive month, the Bureau of Transportation Statistics (BTS), a part of the U.S. Department of Transportation’s Research and Innovative Technology Administration (RITA), today reported.

A news release summarizing the data may be obtained at http://www.dot.gov/affairs/briefing.htm. Additional data on the freight, passenger and combined TSI can be found on the BTS website at http://www.bts.gov/xml/tsi/src/index.xml.

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U.S. Set to Lose Place as World’s Largest Manufacturer
(Supply Chain Digest)

Most knowledgeable observers knew the day was coming soon, but now the researchers at Global Insight say that the U.S. will lose its position as the world’s largest manufacturer to China in 2009 – some four years earlier than the firm had predicted previously.

In research done for the Financial Times, Global Insight now says that the U.S. will retain the position it has held for more than 100 years in 2008, but that the combination of China’s continued growth and the slowing U.S. economy will create a shift in rankings the following year.

For 2008, Global Insight says the U.S. will produce 16.9% of global value-added factory output, with China at 15%. In 2009, however, China’s global share should rise to 17%, with the U.S. having a 16% share.

The numbers do not reflect absolute levels of manufacturing output, but rather relative ones. So, the U.S. has been losing global manufacturing market share even as its own factory volumes rise, but not nearly as quickly as China’s growth.

To show how fast the situation is changing, in 2007 the U.S. had a 20% share of global manufacturing to just 13.2% for China. China will have closed that 7% gap in just two years.

Just last year, Global Insight economists had predicted that the U.S. would retain the top position until 2013, but a large downward revision in likely output this year and next is expected to cause the U.S. to slip more quickly than had been expected. A faster than expected economic recovery – or a slow down in the Chinese economy – could enable the U.S. to keep the crown for another year or two.

But fundamentals, including population size differences, the continuing shift of the U.S. to a more services-based economy, and continued migration generally of manufacturing to lower cost countries, means the change was inevitable at some point. Manufacturing represented 37.1% of Chinese Gross Domestic Product in 2007, for example, versus just 13.4% for the U.S.

In 1990, less than 20 years ago, China’s share of global manufacturing was just 3%. After a series of reforms and a general opening of the economy, the Chinese economy took off. Interestingly, by some accounts China was the world’s largest manufacturer for centuries before 1840, when it was overtaken by Great Britain, with the U.S. taking the top spot later in the 19th century. The Global Insight numbers include the China-based operations of U.S. or other countries in the China output figures, as it does for the foreign operations operating in the U.S.

The Financial Times quotes Jim Womack, chairman of the Lean Enterprise Institute, as commentating that: “Americans have watched for more than a generation as the U.S. fraction of total world manufacturing has fallen. And it’s easy to confuse the country’s absolute level of domestic output, which has in most cases gone up, with the U.S.’s share of the whole world pie, which was bound to go down no matter how good American-based plants were.”

However, even though the vast majority of what is consumed in total in the U.S. is made here, the news is likely to fuel still more concerns about offshoring, trade policy and U.S. competitiveness.

That’s especially true when looking further out in the Global Insight numbers…by 2025, the Chinese share of global manufacturing will have risen to about 35% – while the U.S. share will fall to just over 10%.

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Russian Federation: Fish and Seafood Market Update
(U.S. Foreign Agricultural Service)

Russia imported 13.8% more fish and seafood in the first quarter of 2008 than in the same period of 2007, totaling $452.9 million. The U.S. supplied 4% of total imports. Fish consumption continues to expand in Russia, creating new opportunities for U.S. exporters. Overall, fish and seafood prices grew 3% from January to May 2008. These prices are 10-30% higher in supermarkets than in open markets.

Report at http://www.fas.usda.gov/gainfiles/200808/146295389.pdf (3 pages)

Related: Requirements to Provide the Russian Federation with Information on Certified Exports of Fish Products from Canada

Please be advised that the Russian Federation has informed the Canadian Food Inspection Agency of requirements to have information on exported certified shipments of fish products, destined to the Russian Federation, provided to them on a set schedule. The implementation date of these new requirements is set for September 15, 2008. As of this date, all exporters of fish products should notify the CFIA each time a shipment of certified fish has left Canada for the Russian Federation. ...

See http://www.inspection.gc.ca/english/anima/fispoi/commun/20080812e.shtml

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Energy Prices, Slowdown Push Japan's Economy into the Tank
(USA Today – Paul Wiseman)

Japan's economy sank in the second quarter, dragged down by weakening exports and glum consumers.

The Japanese government said gross domestic product fell at an annual rate of 2.4% in the April-June quarter, raising fears that the world's second-biggest economy is dipping into recession. The bad news sent stocks into a tailspin: The Nikkei 225 index fell more than 2%.

"The recession has just begun," says economist Takehiro Sato of Morgan Stanley Research Japan. He figures Japan's economy peaked late in 2007 or early this year and may have started a protracted slide. "There's a long way to go," Sato said, noting that the average Japanese recession lasts 16 months.

After stalling for more than a decade, the Japanese economy had enjoyed a six-year recovery. But it has been hit hard recently by rising energy prices and a worldwide economic slowdown.

During the second quarter, Japan's exports fell at an 8.9% annual rate, and household consumption fell at a 2.1% annual pace. Business investment in plants and equipments, which had helped drive Japan's economic recovery, dropped at a 0.9% annual rate in the second quarter.

The economic report came a day after the government reported that wholesale prices rose at the fastest pace in 27 years last month and that consumer confidence slid for the fourth straight month in July, hitting a record low. Japanese wages haven't kept up with soaring prices, dampening consumers' confidence and willingness to spend.

The gloomy numbers create a quandary for the Bank of Japan: whether to raise interest rates to fight inflation or cut them to revive the economy. Sato reckons the Bank of Japan is more concerned about jump-starting economic growth than taming higher prices, but he says the central bank doesn't have much room to maneuver because Japanese interest rates are already so low.

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Chinese Apparel Export Growth Rate on the Decline
(American Shipper)

The growth rate of Chinese textile and garment exports has been declining throughout the year as production costs rise and global demand drops, according to a report Wednesday in the China Daily.

"Between January and July, China exported $100.4 billion worth of textiles and garments, up 7.7%, but well down from the 24.4% growth rate for the same period last year," the report said.

China recently increased the export rebate level for several categories of textiles and garments from 11% to 13% in a bid to aid beleaguered exporters. Also sure to help is the strengthening dollar, which has risen in value against the Chinese yuan for 11 straight days as of Tuesday. That's the longest consecutive stretch of appreciation for the dollar since the Chinese currency was officially unpegged from the dollar in July 2005.

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CFIA-AIRS Updates August 13, 2008
(Canadian Food Inspection Agency)

Chapters 07, 10 and 12 were published to change the registration type from #58 "Seed Importation Declaration" to #9 "Import Declaration", for the following HS codes with the end use of "Propagation (growing or sowing)". NO VERSION CHANGE

07.12.90.0002 - Sweet corn seed
07.13.10 - Peas (Pisum sativum)

10.01.10.0081 - Cereal - Durum wheat - seed
10.02.00.0095 - Cereal - Rye - seed
10.03.00.0099 - Cereal - Barley - seed
10.04.00.0097 - Cereal - Oat - seed
10.05.10 - Seed
10.06.10.0101 - Cereal - Rice - seed
10.08.10.0103 - Cereal - Buckwheat - seed
10.08.20.0105 - Cereal - Millet - seed
10.08.90.0087 - Cereal - Job's tears - seed
10.08.90.0089 - Cereal - Quinoa - Seed
10.08.90.0109 - Other cereal - seed

12.01.00.0010 - Soybean (seed)
12.02.10.4081.05 - Edible nuts - peanuts (raw)
12.02.20.4081.05 - Edible nuts - peanuts (raw)
12.05.00 - Rape (canola) or colza seeds, whether or not broken
12.05.10 - Low erucic acid rape or colza seeds
12.05.90 - Other
12.06.00 - Sunflower seeds, whether or not broken
12.07.40 - Sesamum seeds
12.07.50 - Mustard seeds
12.09.10 - Sugar beet seed
12.09.21 - Seeds of forage plants: Lucerne (alfalfa) seed
12.09.22 - Seeds of forage plants: Clover (Trifolium spp.) seed
12.09.23 - Seeds of forage plants: Fescue seed
12.09.24 - Seeds of forage plants: Kentucky blue grass (Poa pratensis L.) seed
12.09.25 - Seeds of forage plants: Rye grass (Lolium multiflorum Lam., Lolium perenne L.) seed
12.09.29.0073 - Seed (forage)
12.09.30.0069 - Seed - flower
12.09.91.0070 - Seed - vegetable
12.09.99.0071.21 - Strawberry (seed)
12.09.99.0071.22 - Watermelon and other cucurbitacea fruit seeds
12.09.99.0076.01 - Hemp (viable seed)
12.09.99.0076.05 - Tobacco (seed)
12.09.99.0076.06 - Niger/Nyjer (seed)
12.09.99.0076.11 - Echium spp. other than E. plantagineum (seed)
12.09.99.0076.99 - Seed other (miscellaneous)

Please check your version numbers before submitting through EDI.
If you have any questions, please contact your Import Service Center.

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[Indian] Tea Exports Look Up in First Half
(The Hindu)

Signalling a reversal in the declining trend witnessed last year, Indian tea exports have registered an increase both by value as well as volumes during the first half of 2008, according to official statistics available.

South India which exports nearly its entire output, accounts for 40% of the 10.7 million kg increase registered between January and June, with North India contributing the balance. India earned Rs. 883.32 crore exporting 87.4 million kg of tea during this period against an earning of Rs. 766.75 crore exporting 77 million kg. Per unit earnings stood at Rs. 101 a kg against Rs. 99.60 a kg in the same period last year. [An Indian crore is equal to 10 million.]

Union Minister of State for Commerce Jairam Ramesh told The Hindu that he was optimistic about this trend being sustained through the year. “The marketing efforts are now beginning to pay off and we are hopeful about a revival of the Iraq market along with a strengthening of the markets in Egypt and Iran. The strategy of increasing production and exports of orthodox teas is also contributing to the upward trend,” he said.

Industry sources told The Hindu, that the reported 20.7% drop in output from Kenya, one of India’s main rivals in the international tea arena, might have played a pivotal role in increasing exports.

Details of export destinations available till March show a pick up in traditional market like Russia (where India had suffered major setbacks in recent years) along with Egypt, which is now a thrust market. Gains have also been made in high-value markets such as Iran and Australia.

The Indian tea industry is now on a rising curve after years of recession. Prices have increased at all the tea auction centres and are higher by Rs. 8 a kg averaging at Rs. 82.73 a kg.

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Customs

Revised D-Memoranda
(CBSA)

D3-5-2
Revised: Marine Cargo – Import Movements

• This memorandum has been revised to reflect current carrier and cargo policies and reporting procedures, including Advance Commercial Information (ACI) program requirements. It has been revised to update the contact information at the Canada Border Services Agency (CBSA).
• Information related to the ACI program has been incorporated into this memorandum as well as in D3-1-1, Policy Respecting the Importation and Transportation of Goods; D3-2-1, International Air Traffic; D3-2-2, Air Cargo – Import Movements and D3-5-1, Vessels in International Service.
• Procedures and guidelines regarding loading or discharge of cargo at non-CBSA port have been moved from D3-5-2 to D3-5-1.
• ACI data elements have been added to Appendix B of this memorandum.

http://www.cbsa.gc.ca/publications/dm-md/d3/d3-5-2-eng.pdf

D3-5-1
Revised: Commercial Vessels in International Service

• This memorandum has been revised to reflect current carrier and cargo policies and reporting procedures, including Advance Commercial Information (ACI) program requirements. It has been revised to update the contact information at the Canada Border Services Agency (CBSA).
• Information related to the ACI program has been incorporated into this memorandum as well as in D3-1-1, Policy Respecting the Importation and Transportation of Goods; D3-2-1, International Air Traffic; D3-2-2, Air Cargo – Import Movements and D3-5-2, Marine Operations – Canada Border Services Agency – Marine Cargo – Import Movements).
• Procedures and guidelines regarding outward reporting of marine conveyances has been removed from this memorandum and can be found in D3-1-8, Cargo Reporting – Export movements.
• Procedures and guidelines regarding loading or discharge of cargo at non-CBSA port have been added to this memorandum.
• Procedures and guidelines regarding coasting licences have been removed from this memorandum and can be found in D3-5-7, Temporary Importation of Vessels.
• Procedures and guidelines regarding international waste have been added in this memorandum.
• Procedures and guidelines regarding wood packaging material have been added to this memorandum.

http://www.cbsa.gc.ca/publications/dm-md/d3/d3-5-1-eng.pdf

D3-2-2
Revised: Air Cargo – Import and In-Transit Movements

• This memorandum has been revised to update terminology and contact information at the Canada Border Services Agency.
• This memorandum has been updated to include the specific reporting guidelines and procedures related to Advance Commercial Information (ACI) Air cargo advance notification process.
• This memorandum has also been updated to incorporate reporting guidelines and procedures for In-transit or Freight Remaining on Board (FROB) cargo, replacing Memorandum D3-2-3, Air Cargo – In-transit Movements.
• Information related to the ACI program has been incorporated in to this memorandum and/or Memorandum D3-1-1, Policy Respecting the Importation and Transportation of Goods, D3-2-1, International Commercial Air Traffic and Air Conveyance Reporting, Memorandum D3-5-1, Commercial Vessels in International Service, and Memorandum D3-5-2, Marine Cargo – Import Movements.
• The changes to the post audit privileges provided to air carriers have been incorporated into this memorandum and D3-1-6, Customs Post Audit System.
• The changes to the reuse timeframes for air cargo and conveyance reference numbers have been incorporated into this memorandum.

http://www.cbsa.gc.ca/publications/dm-md/d3/d3-2-2-eng.pdf

D3-2-1
Revised: International Commercial Air Traffic and Conveyance Reporting

• This memorandum has been revised to update terminology and contact information at the Canada Border Services Agency.
• This memorandum has been updated to include the specific reporting guidelines and procedures related to Advance Commercial Information (ACI) air conveyance notification.
• Information related to the ACI program has been incorporated in to this memorandum and/or Memorandum D3-2-2, Air Cargo – Import and In-transit Movements, Memorandum D3-5-1, Commercial Vessels in International Service, and Memorandum D3-5-2, Marine Cargo – Import Movements.

http://www.cbsa.gc.ca/publications/dm-md/d3/d3-2-1-eng.pdf

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Cancelled Customs Notices and D-Memoranda
(CBSA)

CBSA website notes the cancellation of the following Customs Notices and D-Memoranda (see http://www.cbsa.gc.ca/new-neuf/menu-eng.html):

CN486
Proposed Regulatory Changes in Support of the Free And Secure Trade (FAST) Commercial Driver Program and the Alternative Presentation of Persons Under the Customs Act

CN542
Advance Commercial Information - Electronic Data Interchange (EDI) Cargo and Conveyance Reporting

CN604
Cancellation of Memorandum D19-9-6, Regulations Respecting the Importation of Human Pathogens

CN605
Advance Commercial Information - Updates on Cargo and Conveyance Electronic Reporting for Air Mode and for Marine Shipments Loaded in the United States

CN630
Advance Commercial Information – Updates on the Implementation of Cargo and Conveyance Reporting for Air Mode and Marine Shipments Loaded in the United States

CN652
Advance Commercial Information (ACI) - Updates on the Implementation of ACI Phase II Air and Marine

CN518
Temporary Importation of Vehicles and Equipment by Non-Resident Tour Operators

Cancelled: D4-3-1 Duty Free Shop - Regulations

Cancelled: D17-1-0 Accounting for Imported Goods and Payment of Duties Regulations

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Expansion Eyed for SFI Scan Trial
(American Shipper – Eric Kulisch)

The United States has begun talks with the Pakistani government about expanding a demonstration program for 100% scanning of containers to the Port of Karachi, a Customs and Border Protection official said last week.

Rich DiNucci, director of the Secure Freight Initiative, said Pakistani officials are pleased with the pilot program at nearby Port Qasim and want to begin operations at a second port.

Qasim is one of seven ports selected by CBP at the behest of Congress to study on a limited scale the feasibility of conducting imaging and radiation detection on all containers. The agency has already submitted two reports to lawmakers about the findings of the automated inspection program at three ports with low export volumes to the United States – Qasim, Southampton, United Kingdom; and Puerto Cortes, Honduras.

It concluded that taking X-ray type images and radiation reads of every container can be done, but is not practical across the board because of the enormous expense and logistical challenges of setting up inspection zones in ports without disrupting normal commercial cargo flows. Chief among the challenges is how to capture data on cargo that is transshipped from feeder ports to hub ports by vessel.

Without waiting for the results, Congress passed legislation last year ordering automated inspections for all containers by 2012 as Democrats criticized the Bush administration for not doing enough to plug a gapping hole in homeland security. The Department of Homeland Security is using a risk-management approach that relies on computerized analysis of international shipping data and intelligence to target containers for inspection, including at 58 foreign ports where local customs authorities have agreed to conduct selective scans at the request of on-site CBP officers.

DHS has informed Congress that based on the study it intends to conduct 100% scanning operations only on specific high-risk trade lanes. Pakistan and Port Karachi would fit that mold.

While many other countries view 100% scanning as a big impediment to trade, Pakistan embraced the Secure Freight Initiative as a way to certify exports to the United States as safe and attract buyers who would otherwise be reluctant to do business in a country known as a hotbed of terrorist activity and a haven for al Qaeda.

A second round of Secure Freight Initiative testing is about to begin at two other ports that handle larger volumes and extensive transshipment cargo. SFI is almost ready to become operational at the Port of Busan, South Korea, and Salaleh, Oman, DiNucci said during a Thursday briefing to the Commercial Operations Advisory Committee meeting in Seattle.

CBP has set up truck lanes with drive-through detection equipment and is working out some technical issues at Busan. It is preparing to use mobile equipment and wireless technology to transmit the readouts to minimize the impact of inspections on terminal operations in Salaleh, a large transshipment port, DiNucci said. Technicians are ironing out difficulties with getting the large data files transmitted back to the local command center, where radiation alarms are received and resolved.

DiNucci said technology providers are working to improve the anomaly detection and automated alarm capabilities of the non-intrusive inspection machines. Existing limitations require specialists to manually view each container image for possible contraband or hidden weapons of mass destruction.

DHS, which objected to 100% scanning mandates from the start, made clear in the SFI report and testimony that it intended to take advantage of out clauses in the legislation to extend the 2012 deadline, at least until better technology can be developed.

CBP officials reiterated at the COAC meeting that the SFI pilot demonstrated 100% scanning is possible under the right circumstances, adding that the system has not faced the challenge yet of trying to inspect containers at ports with high throughputs. Employing the tandem X-ray and radiation detection system on high-risk trade corridors is a logical way to proceed during a time of limited resources and the need to shore up vulnerabilities to other non-maritime threats, they said.

"There is tremendous benefit from the pilot, which shows that we can on a limited basis do this. If we apply this to high-risk corridors, I think this will be a tremendous tool for DHS and CBP," Commissioner Ralph Basham said.

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Industry Events

CIFFA Module I & II Education Programs Registration Deadline August 15

CIFFA is pleased to offer two education programs for staff of international freight forwarders who wish to acquire the knowledge and skills required to succeed in the business of moving freight on an international level. Our Professional Education Programs are recognized and approved by FIATA (Federation of International Freight Forwarding Associations), based in Zurich, Switzerland.

New for 2008-2009 ... your choice of classroom or e-Learning!

As in previous years, our Module I classroom lectures are available in Vancouver, Calgary, Toronto, Montreal; our Module II classroom lectures are available in Vancouver, Toronto, Montreal. e-Learning is available for everyone who cannot or does not want to attend classroom lectures! A pilot program will be run in Calgary. Students will have access to on-line modules and instead of regular lectures, students will have workbook based, interactive case-studies/sessions.

For students attending other classrooms (Vancouver, Toronto, Montreal), there will be no changes from previous years.

For more information: http://www.ciffa.com/education_courses.asp
Register: https://www.ciffa.com/https/registeronline_step1.asp (Registration closes August 15)
For group registration, contact Anna Loginova at anna@ciffa.com or 416-234-5100 Ext. 225

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Global Economic Forecast by PIERS(R) Chief Economist – Free, Live Audio Webcast on August 14

A free, 40-minute audio webcast, presenting a two-year forecast and analysis of U.S. containerized trade by Chief Economist Dr. Michael Andrews of PIERS(R) Global Intelligence Solutions, will be broadcast live online at http://www.joc.com/tradehorizons on Thursday, August 14, at 11 a.m. EDT.

This event features highlights from the just-released summer edition of PIERS Trade Horizons quarterly report on U.S. waterborne import-export trade authored by Dr. Andrews.

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Disclaimer - I.E.Today is designed to provide members with the most up-to-date trade information from a variety of sources. The information we feature does not necessarily reflect the association's opinion on a given international trade issue. While every effort has been made to ensure the accuracy of the information noted in the daily e-mail, government policies are constantly evolving. The Canadian Association of Importers and Exporters Inc. cannot assume any responsibility for actions taken solely or principally on the basis of the information provided.