I.E.Canada Canadian Association of Importers & Exporters Tradeweek

Last Updated: 04-Feb-2010

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02/24/10 Partners in Protection (PIP) Program 2010 Survey

The Partners in Protection (PIP) program was identified as the “Top Advocacy Issue” for members in I.E.Canada’s 2009-2010 Member Survey for the second consecutive year. In order to understand the challenges and benefits members are encountering with regards to the PIP program, I.E.Canada’s Trade Security Committee (TSC) is inviting members to complete the following survey which is available on SurveyMonkey at https://www.surveymonkey.com/s/QXLJWZS.

It will only take a few minutes of your time to complete. Your responses to the survey will be kept confidential; only aggregated results will be shared at the next TSC meeting.

Please complete the survey by Wednesday, February 24, 2010.

If you have any questions or have any technical difficulties with the survey, please contact Amesika Baeta, Committee Director at abaeta@iecanada.com

09/03/09 Update re. U.S. CBP Ruling on Chemical Residues

On August 26, 2009, a coalition of U.S. trade associations met with U.S. Customs and Border Protection (CBP) officials to discuss the chemical residues in empty containers issue. CBP now recognizes that there are many unanswered questions surrounding its decision and that many of these questions must be resolved in order to ensure that importers and carriers are able to operate in compliance with the customs regulations. While CBP is not prepared to withdraw the ruling, CBP officials indicated that they will not be enforcing the requirement for manifest and entry for all cargo residues on September 16, 2009. CBP has committed to a minimum of a 60-day delay to enforcement (mid-November) to provide an opportunity for CBP and industry to assess the impact to trade and address the many questions that remain.

In the meantime, CPB officials have asked that affected industries submit their issues, concerns and questions by Tuesday, September 8, 2009.

I.E.Canada is working in concert with U.S. and other Canadian trade associations to ensure that the issues and concerns of the trade community on both sides of the border are presented to CBP and are addressed. A working group of I.E.Canada members, led by Greg Gerritsen of Plains Midstream, an I.E.Canada board member, has been formed to prepare a submission to CBP.

Please communicate any questions, issues or concerns that you have with respect to this new U.S. requirement to Amesika Baeta, Committee Director, at abaeta@iecanada.com by end of the day Thursday, September 3, 2009 so that we may include them in our submission.

Background

As we have advised in previous notices, CBP recently overturned a ruling that had allowed a container containing chemical residues to enter the United States as an empty Instrument of International Traffic (ITT), which meant that the chemical residues were exempted from manifest and entry requirements.

Because this ruling has been overturned, all residue from cargo will now be required to have a manifest and entry on file prior to entering the U.S. This ruling is effective September 16, 2009. Affected equipment includes, but is not limited to, tankers, ISO 20 foot tanks, rail tanks and bulk carriers.

The requirement for manifest and entry is for all cargo residues. If the cargo is wood chips, and residue remains, then a manifest and an entry will have to be on file. The same applies to liquid residue, chemical residue and all other cargo residues. The alternative to submitting an e-manifest and having the broker prepare an entry, is to wash the container before it enters the U.S. CBP’s basis for overturning the ruling is the safety of customs officers during container inspection.

Some of the concerns and issues that have been raised include:
• the impracticality and significant cost of implementation to shippers by rail, truck and other modes, as well as challenges associated with compliance management;
• the lack of a de minimis rule;
• the short timeframe for implementation: September 16th;
• the near impossibility of providing certain information such as the quantity and customs value;
• uncertainty in determining who will be the importer of record; and
• the potential for delays at the border if entries are not filed on a timely basis and the impact on FAST lane privileges.

For additional information, please contact Carol Osmond, Vice President, Policy at cosmond@iecanada.com.

08/31/09 Consumer Product Safety – Proposed Regulations Regarding Products Containing Lead and Phthalates

On June 20, 2009 proposed regulations under the Hazardous Products Act were published in the Canada Gazette Part I regarding consumer products containing lead and phthalates:

• Consumer Products Containing Lead (Contact with Mouth) Regulations: The purpose of the proposed regulations is to protect children against potential exposure to lead by setting a total lead limit of 90 milligrams of lead per kilogram of product (90 mg/kg) on the following categories of consumer products:

(1) products, other than kitchen utensils, whose normal pattern of use requires that they be brought to the user’s mouth; and

(2) products in respect of which it is reasonably foreseeable based on their nature, that they would be used by children under three years of age in learning or play.

• Phthalates Regulations: Phthalates are a class of chemicals commonly used as plasticizers (softening agents) in the manufacture of soft vinyl (also known as polyvinyl chloride [PVC]), which in turn is used in the manufacture of many consumer products, including soft vinyl children’s toys and child care articles. The United States and European Union have identified the following six phthalates as a potential concern for human health:

Di(2-ethylhexyl) Phthalate (DEHP) — CAS Number 117-81-7

Dibutyl Phthalate (DBP) — CAS Number 84-74-2

Benzyl Butyl Phthalate (BBP) — CAS Number 85-68-7

Diisononyl Phthalate (DINP) — CAS Numbers 28553-12-0 and 68515-48-0

Diisodecyl Phthalate (DIDP) — CAS Numbers 26761-40-0 and 68515-49-1

Di-n-octyl Phthalate (DNOP) — CAS Number 117-84-0

A restriction under Part II of Schedule I to the Hazardous Products Act is considered by Health Canada to be the most effective measure for ensuring that soft vinyl children’s toys and child care articles imported, sold or advertised in Canada do not contain phthalates that are restricted in the United States and European Union. To this end, it is proposed that the concentration of each of DEHP, DBP and BBP be restricted to no more than 1 000 mg/kg in soft vinyl of all children’s toys and child care articles, and the concentration of each of DINP, DIDP and DNOP be restricted to no more than 1 000 mg/kg in soft vinyl of children’s toys and child care articles where the soft vinyl can, in a reasonably foreseeable manner, be placed in the mouth of a child under four years of age.

The proposed Regulations are available at http://www.gazette.gc.ca/rp-pr/p1/2009/2009-06-20/pdf/g1-14325.pdf , starting at page 1838. Comments must be submitted to Health Canada by September 3, 2009.

We would also like to hear from you if your company has concerns about the proposed regulations. Please email your comments to Amesika Baeta at abaeta@iecanada.com by Friday, August 21, 2009.


08/15/09 Extended Producer Responsibility (EPR)

The association wishes to identify members interested in the issue of Extended Producer Responsibility (EPR). EPR has been described as follows:

“ Extended producer responsibility holds that producers (most often defined as a manufacturer, brand owner or first importer of a product) are responsible for the costs associated with the environmental impact of their products. This responsibility extends throughout a product's lifecycle, including its design, manufacturing, packaging, transportation, product use, and diversion or disposal. When producers are responsible for managing the end of life of their products and packaging, they have incentives to ensure their production practices are efficient and avoid producing waste. This responsibility encourages producers to identify production processes that use fewer inputs that would normally result in waste, incorporate greater reuse of materials in their processes and products, and design products and packaging that are more easily recycled.” Ministry of the Environment, Review of Ontario's Waste Diversion Act, 2002, Discussion Paper for Public Consultation, October 2008, page 6.

One of the issues associated with EPR is the sharing of financial responsibility for the collection, transportation, diversion and disposal of environmental wastes. Ontario's Blue Box program is an example of shared responsibility between municipalities and producers, whereas the more recent Waste Electrical and Electronic Equipment Program is an example of a "full" responsibility system, with the producer being obligated to pay all of these costs.

In Canada, each province operates a separate waste diversion framework with stewardship fees varying from one province to another. The trend is for more and more products to be designated under EPR programs and for a higher proportion of the costs to be transferred to producers.

For further information, please see the attached briefing note (http://www.iecanada.com/ietoday/july_09/EPR.pdf) prepared by Warrington Ellacott of Whirlpool Canada, one of the association's members.

If you have concerns about how EPR programs impact your company in Ontario or other provinces, we would like to hear from you. Please contact Amesika Baeta, Committee Director at abaeta@iecanada.com by August 14, 2009.

 

08/14/09 Broker Licensing Questionnaire

Some of our members who have passed the Canada Border Services Agency (CBSA) Customs Broker Professional Exam have raised the concern that after leaving the employ of a customs brokerage firm to work in customs within an importing company, they lose their eligibility to become a licensed customs broker or to serve as a “qualified officer” of a customs brokerage firm after twelve (12) months.

They would like to see the Customs Brokers Licensing Regulations updated so that individuals may maintain their qualified or professional status without necessarily having to work for a customs brokerage firm.

In the meantime, the Canadian Society of Customs Brokers (CSCB) has made a proposal that would allow individuals to maintain their eligibility to obtain a customs brokerage licence or to serve as a qualified officer without having to work for a customs brokerage firm. The CSCB is proposing to replace the current knowledge requirement of passing the Customs Broker Professional Examination with passing the examination for the Certified Customs Specialist (CCS) designation. CSCB is also proposing that by renewing their CCS designation annually, individuals could maintain their eligibility to obtain a customs brokerage licence or to serve as a qualified officer.

I.E.Canada been asked by the Licensing Advisory Committee (LAC), which is made up of representatives of the customs brokerage industry, importers and the CBSA to canvas our members to determine whether there is support in principle for this proposal. While I.E.Canada has raised this issue at the LAC and in other fora, the association has not been involved in the development of this proposal and will not take a position until we hear back from our members.

We are interested in identifying members with an interest in these issues and obtaining your initial views on the CSCB proposal. Note that the CSCB proposal is a proposal in principle and the details will have to be discussed at much greater length.

We are requesting our members who have an interest in this issue to complete a survey on Survey Monkey at https://www.surveymonkey.com/s.aspx?sm=foCQ_2beI69dEcB1makLZ2qQ_3d_3d

Deadline: Friday, August 14, 2009

If you have any questions or comments, please feel free to contact Amesika Baeta, Committee Director at abaeta@iecanada.com.


08/07/09

CBSA Proposed Policy Changes Regarding Proper Use of RMD Correctors

The Canada Border Services Agency (CBSA) is seeking input on the attached proposed policy regarding the acceptable use and processing of Form A48, RMD Corrector (English and French).

This document re-iterates current policy and announces a proposed new policy regarding Form A48. This action is being taken in response to the concerns raised by Broker Associations regarding the inconsistent procedures applied by customs offices in the processing of Form A48, and to also address concerns the CBSA has regarding the improper use of Form A48. It’s CBSA's goal that with these proposed guidelines, the agency will be consistent in how these requests are being handled at the ports while ensuring that only those clients, who are using the RMD Corrector process as a means of facilitating the release of their goods, will be subject to more stringent verification.

Please send your comments to Amesika Baeta at abaeta@iecanada.com by Friday, August 7 , 2009.

 

03/26/09 Border Thickening Survey

I.E.Canada has been collaborating with Trade Facilitation Services, a consulting firm based in Ottawa, and its partners, TICON and the PrinceLawGroup, on a border "thickening" study sponsored by the Canadian Embassy in Washington D.C. The study focuses on the increasing costs of complying with U.S. and Canadian border and trade related regulations. One of the issues of concern that we have raised, for example, is CBSA's recent proposal to introduce an Importer Admissibility Data (IAD) Set, similar to the 10+2 Importer Security Filing in the United States, in all modes of transportation. (Currently the 10+2 Importer Security Filing only applies in the marine mode.)....


02/24/09 Proposed Elimination of Tariff on Certain Polyester Fleece Fabric…

The Department of Finance is seeking our views on a request that the Department has received to eliminate the tariff on certain polyester fleece fabric for use in the manufacture of yarn. We are proposing to add a duty-free tariff line to subheading No. 6001.22.00. ....


02/13/09 Update Regarding Implementation of the Lacey Act Amendments

A notice was published in the Federal Register today [February 3] with the revised implementation plan for the Lacey Act amendments. A copy of the notice is available at http://www.access.gpo.gov/su_docs/aces/fr-cont.html.....


01/28/09 Draft eManifest Highway Client Document

The Canada Border Services Agency (CBSA) has issued a draft eManifest Highway Client Document for comment. This document [attached] is designed to provide clients with technical user information on how to electronically submit, amend and delete Highway Cargo and Conveyance Information under Phase 3 of Advance Commercial Information (ACI), also known as eManifest. ....


01/23/09 North American Heartland Port of Choice Study

We need your participation in a web-based questionnaire to help Transport Canada better understand the decision making process in determining ports of call. Your participation as a shipper/receiver will provide us with insights on the critical drivers of your choice. This study will also help inform Transport Canada on what type of future Canadian investments are needed, as ports in Canada, U.S. and Mexico increasingly compete for supplying transportation services to the North American Heartland. ....

 

01/23/09 China's Accession to the WTO Agreement on Government Procurement

As a member of the Market Access Advisory Group (MAAG) to the Department of Foreign Affairs and International Trade, I.E.Canada has been asked to provide input with respect to China’s accession to the World Trade Organization Agreement on Government Procurement (AGP). The AGP guarantees suppliers from parties to the agreement and their goods and services access to government procurement contracts tendered by other parties.....

 

01/16/09 EU Agreement

At the Canada-EU Summit in Berlin in June 2007, Canada and the EU agreed, inter alia, to study the costs and benefits of a closer economic partnership by examining existing barriers, especially non-tariff, to the flow of goods, services and capital, and by estimating the potential benefits of removing such barriers.....


01/13/09 CBSA Business Simplification Initiative

The CBSA Business Simplification Initiative Working Group, co-chaired by the Canadian Federation of Independent Business and the Director of CBSA’s Business Simplification Initiative team, was mandated to make recommendations to the CBSA on measures that would result in a significant improvement in how business interacts with the CBSA. The Working Group comprises representatives from the Canadian Federation of Independent Business (co-chair); the Association of International Border Agencies; the Canadian Society of Customs Brokers; the Canadian Association of Importers and Exporters; the Canadian Chamber of Commerce; and the Canadian Manufacturers and Exporters.....

 

12/12/08 Other Government Department (OGD) Survey

We survey our members from time to time to better understand and address the issues that concern them. This questionnaire covers Other Government Department (OGD) requirements and the Canadian Food Inspection Agency’s Automated Import Reference System (AIRS).....


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