Tuesday, September 29, 2009

Statement from Minister Day on Softwood Lumber Tribunal Ruling

(Minister of International Trade)

The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today [Monday] issued the following statement on the decision of the London Court of International Arbitration Tribunal that Canada did not cure its breach of the Softwood Lumber Agreement:

“We are disappointed that the Tribunal did not accept Canada’s proposed solution to cure the breach. We continue to believe that our offer to pay $46.7 million was fair. However, there is no further route for appeal.

“The Government will comply with the Tribunal’s decision, as we remain committed to the success of the Softwood Lumber Agreement. This agreement has brought stability and has returned nearly $5 billion to the industry. This is a complex matter. We are reviewing the decision and consulting with the provinces to determine how best to move forward.”


The Tribunal’s decision states that the compensatory adjustments to Canada’s export charges must be imposed until the amount of $68.26 million identified by the Tribunal in its ruling on February 26, 2009, has been collected.

The breach is related to the use of the adjustment factor in the calculation of the volume of exports to the United States. Canada applied the adjustment factor to some provinces beginning July 2007, but the Tribunal said that we should have applied it beginning January 2007.

The 2006 Softwood Lumber Agreement ended a long-standing dispute that had resulted in years of punishing duties against Canadian exports. Through the Agreement, $4.5 billion US in duties collected by the U.S. was returned to Canadian companies, bringing a significant infusion of capital into the industry and benefiting workers and communities across Canada.

Monday, September 28, 2009

Buy American Waiver Granted for “De Minimis” Parts in Rural Water Projects

(WaterWorld)

The Rural Utilities Service (RUS) of the U.S. Department of Agriculture has issued a nationwide waiver under the stimulus program’s “Buy American” clause for incidental components of eligible water infrastructure projects. This action permits the use of nondomestic iron, steel and manufactured goods when they occur in de minimis incidental components that may otherwise be prohibited under Buy American clause of the American Recovery and Reinvestment Act of 2009.

RUS defined “de minimis incidental components” to mean those components that cumulatively comprise no more than a total of 5% of the total cost of the materials used in a project funded in whole or in part with ARRA assistance.

This action is similar to a waiver previously granted by the U.S. EPA for water infrastructure projects across the country.

RUS received $1.38 billion in ARRA funds for use in providing loans and grants to rural communities to meet their water and wastewater infrastructure needs. While the money has been obligated to specific projects in compliance with the Fiscal Year 2009 deadline of September 30, it could be years before these projects actually are designed and go to construction.

(Ed. WaterWorld ... Who knew?)

Saturday, September 26, 2009

Memorandum D15-2-54: Certain Aluminum Extrusions Originating in or Exported from the People’s Republic of China

(CBSA)

This memorandum refers to the application of anti-dumping and countervailing duties to importations of certain aluminum extrusions originating in or exported from the People’s Republic of China.

Friday, September 25, 2009

Interim Memorandum D10-14-19: Administrative Procedures for the Importation of Non-Beverage Ethyl Alcohol

(CBSA)

This interim memorandum contains updated information which replaces paragraphs 3, 4, 7, 8, 9 and 10 of Memorandum D10-14-19, Administrative Procedures for the Importation of Non-Beverage Ethyl Alcohol, dated April 19, 2002.

The information contained in this interim memorandum will be incorporated into the next version of the D10-14-19, Administrative Procedures for the Importation of Non-Beverage Ethyl Alcohol.

Wednesday, September 23, 2009

Minister Day Announces Free Trade Talks with Ukraine

(Minister of International Trade)

The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today announced the launch of talks between Canada and Ukraine on a free trade agreement (FTA).

“Our government is once again taking action to open doors for Canadian business in new markets,” said Minister Day. “Canadian companies are steadily building a deep business presence here in areas like aerospace, communications technologies and in agriculture. Free trade negotiations could help to extend our deepening partnership. We know the support is there – on both sides.”

Minister Day made the announcement with Ukraine’s Minister of Economics, Bohdan Danylyshyn, right after the negotiations with the Ministry of Economics. Both Canada and Ukraine have agreed to meet in the coming months to discuss a range of trade and investment issues to facilitate economic relations and fight protectionism.

An FTA with Ukraine could further open markets for Canadian exports ranging from agricultural and seafood products to machinery and pharmaceuticals. It could also help to address non-tariff barriers.

Free trade agreements also help to strengthen the Canadian economy, to create new jobs and to lower prices for Canadian consumers.

Ukraine is the largest country in Europe, and is home to a highly educated population of 46 million, a diversified industrial base and substantial natural resources. Canadian merchandise exports to Ukraine in 2008 totalled $229.7 million, an 80% increase from the year before and a 400% jump from 2004. In 2008, agricultural and aerospace machinery topped the list of Canadian exports.

Monday, September 21, 2009

Government of Canada Investing in Canada Brand Marketing Initiative

(Agriculture & Agri-Food Canada)

The Government of Canada is investing $32 million in the Canada Brand initiative to put the maple leaf brand on the top quality products Canadian farmers grow and increase sales around the world.

“Canadian farmers want to make their living in the marketplace and buyers around the world are looking for the premium products the maple leaf has come to symbolize,” said Agriculture Minister Gerry Ritz. “This investment is going to help Canadian farmers drive market research and promotional campaigns to maximize opportunities around the world.”

The Canada Brand initiative will fund market analysis, advertising campaigns and public opinion research that will promote Canada’s safe, top quality agriculture. The Canada Brand initiative will work in lockstep with industry as a springboard to complement the successes already achieved in key markets.

“By more actively promoting the strengths and benefits of the Canada Brand, the Government will be complementing the individual marketing efforts of specific agriculture and food sectors in order to open more doors and increase sales,” said Minister of National Revenue and Minister of State (Agriculture), Jean-Pierre Blackburn.

Canada Brand is the third program delivered from the $500 million AgriFlexibility fund that was part of Canada’s Economic Action Plan. The AgriFlexibility fund was created to help reduce costs of production and improve environmental sustainability for the sector; promote value-chain innovation and sectoral adaptation; and respond to emerging opportunities and market challenges for the sector. The AgriFlexibility fund is now accepting new project proposals from provincial governments and the agricultural industry.

To find out more information about Canada Brand, please email brandcanada@agr.gc.ca

For further details on AgriFlexibility, visit http://www.agr.gc.ca/agriflexibility.

For more information on Canada’s Economic Action Plan, visit http://www.actionplan.gc.ca/.

C-TPAT Information Update: Enforcement and Appeal Process

(CBP)

The C-TPAT program is one layer in U.S. Customs and Border Protection’s (CBP) multi-layered cargo enforcement strategy. Through this program, CBP works with the trade community in adopting tighter security measures throughout their international supply chains. In exchange for adopting these stronger security practices and after verification by CBP that the measures are in place, CBP generally affords C-TPAT members reduced inspections. C-TPAT is a voluntary program with a “trust but verify” focus and, as such, the program must take immediate action to suspend or remove members that are not in compliance with the program’s minimum security criteria. This informational notice outlines the program’s enforcement and appeal process.

C-TPAT members may be suspended or removed from the program for several reasons including, but not limited to, the following: narcotics seizures or other security related incidents such as human smuggling; failed validations or lack of compliance with C-TPAT requirements regarding supply chain or other security measures; failure to provide required information or filing false or misleading information; or actions or inaction that shows a lack of commitment to the program.

The C-TPAT Headquarters (HQ) Program Director makes the final decision to suspend or remove a member based on all available information, including reports and recommendations made by C-TPAT Field Managers. In certain aggravated circumstances companies may be immediately removed from the program, for example, when they are found to have provided false information, have demonstrated inadequate security, or have demonstrated a flagrant disregard for the program’s requirements. In other instances, which may not be as egregious, but are nonetheless significant, a company may be suspended from C-TPAT with an opportunity to resume membership once it comes into compliance with program requirements.

Once a security related incident or other program violation occurs, C-TPAT officials determine the appropriate next steps on a case-by-case basis. These steps normally include suspending benefits such as FAST lane access and allowances in the risk assessment process, as well as conducting a post incident analysis to determine the circumstances that led to the violation.

To be reinstated into the program after an incident or violation, the company must agree to a corrective action plan which identifies specific objectives and time frames within which those objectives should be reached. In addition, the company must consent to un-announced visits by C-TPAT staff to monitor progress. In the case of a failed validation, the company must demonstrate that it has successfully addressed all vulnerabilities and complied with all other requirements before being fully reinstated.

Companies that are suspended or removed may appeal this decision to CBP HQ. Appeals should include all relevant information which demonstrates how the company has addressed the issues which resulted in the suspension or removal, or provide corrected factual information in the case where a company claims that a mistake of fact or other misunderstanding has resulted in the suspension or removal. CBP will decide the appeal in a timely fashion.

To avoid suspension or removal, C-TPAT members must ensure they are in full compliance with the minimum security criteria and be cognizant of, and responsive to, mandated timeframes established by CBP. To view the C-TPAT minimum security criteria, please visit: http://www.cbp.gov/xp/cgov/trade/cargo_security/ctpat/.

NOTE: as specifically provided for in the SAFE Port Act, nothing in these procedures limit the ability of the Commissioner to take actions to protect the national security of the United States.

C-TPAT members may address specific questions to their assigned SCSS and non-members may contact the C-TPAT HQ at industry.partnership@dhs.gov.

Friday, September 18, 2009

CFIA: Changes to Import Notification Requirements

(CFIA)

As part of the Government of Canada’s ongoing commitment to food safety, the Canadian Food Inspection Agency (CFIA) is initiating new import notification requirements for selected commodities regulated under the Food and Drugs Act and Regulations.

The intent of this initiative is to improve the availability of information to assist in the identification and tracking of food products in the event of a food safety issue and is not designed nor intended to impede the trade of safe food products.

In order to facilitate this initiative, the new import notification requirements will be implemented in a phased-in approach starting with 14 priority commodities. These commodities will be coded using the International Harmonized System code (HS code) and CFIA’s Automated Imported Reference System (AIRS) Codes.

The commodities identified in Table 2 and their corresponding HS codes will be added to the CFIA’s HS Code Filter List. This will require importers to identify these products by using the HS Code and CFIA AIRS extension as outlined in Table 2. Additional commodities will be added in future in priority sequence. The latest CFIA HS Code filter list is available here.

Effective March 15, 2010, Importers/Brokers will be expected to notify the CFIA of the commodities listed in Table 2 via the Electronic Data Interchange (EDI) using the updated HS codes and CFIA AIRS extension. Failure to do so may result in CBSA rejecting the release request.

The extended implementation time is designed to allow those importers/brokers who currently do not have an EDI profile to apply for one, and to develop and test the compatibility of their data systems with the CFIA. To obtain an EDI profile, importers/brokers are required to complete the application and testing processes with both CBSA ACROSS Phase III and then with the CFIA. The CFIA Automated Import System (AIS) Participant’s Information Document provides more information on EDI and becoming a CFIA EDI client.

To obtain a copy of this document:
CFIA EDI Coordinator: EDICoordination@inspection.gc.ca
Phone: 613-773-5322

Any questions regarding this notice should be directed to the Area Import Coordinator in your region. Their contact information is in Table 1.

Government Plans Further Tariff Relief to Benefit Canadian Businesses

(Department of Finance)

The Honourable Jim Flaherty, Minister of Finance, today announced public consultations on the Government's intention to eliminate all remaining tariffs on imported machinery and equipment and manufacturing inputs used by Canadian industry. The consultations will run until November 6.

“In Budget 2009, our Government unilaterally eliminated tariffs on a wide range of machinery and equipment, lowering business costs by an estimated $440 million over five years,” said Minister Flaherty. “The tariff relief initiative now being considered follows from our Economic Action Plan in January and would reduce production costs even further, providing both a short-term boost and a long-term competitive edge for Canadian industry.”

“It also demonstrates, once again, Canada's solid commitment to open global markets. Should the proposed cuts be implemented, Canada would boast a tariff-free environment for imported inputs and machinery used by Canadian enterprises. Along with a world-leading financial system and the lowest overall tax rate on new business investment in the G7 in 2010, it adds up to a compelling Canadian advantage.”

The consultations are a follow-up to commitments made in Budget 2009 to identify additional areas where tariff relief could be provided. The tariff relief under consideration would benefit a broad range of manufacturing industries.

Full details on the public consultations can be found in the September 19, 2009 edition of the Canada Gazette, Part I.

Monday, September 14, 2009

Extension of the B2 Pilot Project

(CSCB)

CBSA has advised that the B2 pilot project has been extended until 31 December, 2009. CSCB are in the process of finalizing an assessment of the pilot and a decision is expected shortly.

GTA will continue to process all B2 requests from the Prairie region, with the following exceptions:

1. B2 requests that are pertinent to a Compliance Verification Services verification (multi-program or single program) initiated in the Prairie Region. These claims should be directed to the Senior Officer Trade Compliance (SOTC) or responsible office in the Prairie region;

2. Blanket B2 claims where the books and records of the importer are situated in the the Prairie region;

3. Blanket B2 claims that have been authorized by the Prairie Region; and

4. Section 60 B2 claims for Recourse.

All other B2s can be sent to:

Canada Border Services Agency
CV & S Services
Attention: B2 Processing
55 Town Centre Court, Suite 718
Scarborough, ON M1P 4X4

Please note that CBSA in the Prairie region will continue to forward B2s that are submitted in that region.

Regional contacts for this pilot are:

Doreen Maybee
Director, Client Services, GTA Region
416-973-8153 Doreen.Maybee@cbsa-asfc.gc.ca

Jim ClarkDirector,
Trade Compliance, Prairie Region
403-292-4007 Jim.Clark@cbsa-asfc.gc.ca

Additional questions, or requests for clarification, can be directed to Carol Ann Driscoll, Manager, Commercial Compliance at 613-954-6373 or Carol-Ann.Driscoll@cbsa-asfc.gc.ca

Thursday, September 3, 2009

CFIB August 2009 SME Business Outlook Survey

(CSCB)

Small business confidence has taken a clear upward turn in August, according to the latest CFIB survey findings. After mediocre results in June and July, the Business Barometer® index climbed to 65.4, its highest level in two years. The improvement is broad based across industries and regions, suggesting that the economy is finally making its first tentative steps toward recovery.

Measured on a scale between 0 and 100, an index level above 50 means owners expecting their business’ performance to be stronger in the next year outnumber those expecting weaker performance. According to past results, index levels normally range between 65 and 75 when the economy is growing.

The full report is available on the CFIB website here (PDF).

Tuesday, September 1, 2009

Revised: Customs Self-Assessment Program Importer Part II Application

(CBSA)

Revised application form is on the CBSA website here (PDF).