How to Get Buy-In for Trade Compliance

(Materials Management & Distribution News – Deborah Aarts)

Get the right people on board and funding will be yours, experts say

Trade compliance errors cause significant headaches among international shippers, and they are almost completely preventable.

With the right training programs, staff can be taught to avoid the problems that interfere with successful international shipments. The trick, according to a panel at I.E.Canada’s recent annual conference, is convincing the C-suite to invest in that training.

It’s a tough job, but it’s not impossible, according to Farley Genge, Americas regional Customs leader for General Electric Canada Inc. He helped develop a comprehensive trade compliance instruction program that has dramatically reduced the company’s mistakes. The program – which includes an array of new standard operating procedures, risk assessment procedures, audits and metrics – has saved the company more than $10 million.

Before those savings were achieved, however, Genge had to convince his superiors to invest. To do that, he created a sales pitch.

He promised his bosses that the new program would reduce brokerage rates and increase the company’s price competitiveness. It would help the company proactively mitigate penalties and therefore thwart unwanted fines and protect its brand image. And, of course, it would improve cash flow – the costs of training would be more than offset by the savings generated by a compliant workforce. Read more here.

Minister Day Signs Agreement to Promote Trade Opportunities with Kuwait

(Minister of International Trade)

The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today signed an agreement on economic cooperation with Ahmad Rashed Al Haroun, the Minister of Commerce and Industry for Kuwait, in Ottawa.

“Kuwait offers many opportunities for Canadian companies in the oil and gas sector, engineering and architectural services, agri-food and education,” said Minister Day. “In signing this new agreement with Kuwait, the Government of Canada is opening doors for Canadian business by establishing a framework by which both sides can work to increase trade and investment.”

The agreement’s objectives are:

• To enhance economic relations in the fields of trade and investment;

• To strengthen cooperation with a view to liberalizing trade and investment in accordance with national laws and international obligations;

• To facilitate the increased involvement of the private sector in trade and investment cooperation; and

• To promote a favourable environment and complementary activities to encourage private-sector investment.

Minister Al-Haroun is leading a trade mission to Canada. Among the business delegation are members of the Kuwait Chamber of Commerce and Industry, the Kuwait Banking Association and the Investment Companies Association.

Kuwait has one of the world’s largest sovereign wealth funds, with assets estimated at $200 billion. Canada’s two-way merchandise trade with Kuwait in 2008 was valued at $195 million, almost a 70% increase over the previous year.

Kuwait is a member of the Gulf Cooperation Council (GCC), a group of six nations that is a priority market for Canada. The GCC comprises the most prosperous countries in the Middle East, and it has a rapidly growing economy worth $1.1 trillion. Building on their immense success in the oil industry, the GCC countries are diversifying their economies and transforming the region into a world hub for business, finance and tourism.

Two-way merchandise trade between Canada and GCC nations reached $5.6 billion in 2008, a 37% increase from 2007.

Nations Call for China Trade Probe

(UK Press Association)

The U.S., the European Union and Mexico have called on the World Trade Organisation to probe Chinese curbs on raw material exports that they say break global trade rules.

In separate statements, U.S. and EU trade representatives said Chinese quotas on exports of key minerals such as bauxite, coke, magnesium, manganese, silicon metal and zinc and export charges on several raw materials distort competition and increase global prices.EU Trade Commissioner Catherine Ashton said these were “making conditions for our companies even more difficult in this economic climate.” Read more here.

Drivers Should Have Next-Gen FAST Cards In-Hand

(Today’s Trucking)

Older, first generation FAST cards will no longer be accepted by Canada Border Services Agency or US Customs and Border Protection as of Dec. 1, 2009.

The Ontario Trucking Association reports that all commercial drivers should have received their Generation 2 FAST cards. Drivers who have not, should contact the FAST enrollment centre where they originally applied or click here.

The Generation 2 card is equipped with radio frequency identification (RFID) technology, which enables the transmission of identification data from a distance.

The two border agencies have reportedly not yet decided how to handle old FAST cards — whether drivers can throw them out or hand them in — so drivers are advise to hold on to them just in case.

2009/2010 Domestic and Export Controls Seminars

(CSCB)

The Export Controls Division of Foreign Affairs and International Trade Canada, in cooperation with the Controlled Goods Directorate of Public Works and Governments Services Canada, is organizing a series of Domestic and Export Controls Seminars in the following cities:

Ottawa - November 24, 2009
Montreal- Dec (TBD) 2009
Halifax - January 27, 2010
Calgary - February 23, 2010
Vancouver - March 24, 2010

These seminars will review the responsibilities of Canadian industry in safeguarding military, strategic, and sensitive commercial goods and technology. Our presentation will cover the following issues:

- International security and trade
- Understanding the Export Control List
- Applying for an export permit using Export Controls Online (EXCOL)
- Understanding the application review process
- Common errors made by exporters

If your company is active in any of the following sectors, you should consider participation: defence, security, nuclear, aerospace and space, information and communication technology, and chemical or biological technology. The seminars will be aimed at individuals in the following roles:
- Customs or export process specialists
- International marketing managers
- Compliance officers
- Legal officers
- Designated Officers

Registration details are available on the EICS website here.

C-TPAT Re-Validation Preparation – November 17

(NCBFAA)

US Customs and Border Protection are obligated to re-validate C-TPAT members at least once every three years. Many companies give a huge sigh of relief after their initial validation, and then seem to put the C-TPAT program on the “back burner”. Before you know it, it is time for re-validation. CBP calls to advise that they will be conducting a re-validation. Your boss, of course, comes to you to begin the miracle process of being prepared for the re-validation. You have no idea where to start. That may even be why you decided to attend this webinar.

After this presentation you will be armed with the necessary information to prepare for this visit, as well as being prepared to discuss the process with senior management. So, hold on tight as we take a journey through the process and preparation of re-validating your C-TPAT security profile. Here’s to border security…and away we go!

Please join us for:

C-TPAT Re-Validation Preparation
Offered by: NCBFAA Educational Institute
Tuesday, November 17, 2009 Noon - 1:30 p.m. ET
Cost: $50.00 per member participant$75.00 per non-member participant1.5
CCS points for attendance
Presenter: Randi Keenan, Senior Consultant, ARI

To participate, simply go to http://www.ncbfaa.org and select “C-TPAT Re-Validation Preparation” under “Upcoming Events.” Members: be sure to log in first to take advantage of the lower member rate.

Thank you, and we look forward to your participation!

Cynthia D. (Jerome) Allen, LCB, CCS
NCBFAA Educational Institute Director
1200 18th Street, NW, #901 Washington, DC 20036
Office Phone: (202) 466-0222 • Cell Phone: (313) 330-8630

New U.S. Ambassador Says Solutions Can Be Found to Border and Trade Issues

(The Canadian Press)

The new U.S. ambassador to Canada says he’s confident the two countries can find a way to protect their borders without hampering free trade. David Jacobson says protecting the United States and Canada from terrorist threats is a key priority. Jacobson, who is on a tour of Canada after becoming ambassador earlier this month, plans to visit several U.S.-Canada border crossings […]

But he says border security and efficiency isn’t a zero-sum game, and while he understands Canada’s concerns over Washington’s Buy American policies, he is confident both sides can come to a solution. High-level discussions are ongoing and Jacobson says that while no deal has yet been reached, the talks have been constructive. Read more here.

WTO Publishes Latest Annual Compilation of International Trade Statistics

(WTO)

The 2009 edition of the WTO’s International Trade Statistics, a comprehensive overview of world trade up to 2008, was published in electronic format on 28 October 2009 and will be available in print in November.

International Trade Statistics 2009 includes the details of merchandise trade by product and trade in commercial services by category. Each chapter is introduced by a highlights section that identifies the most salient trends in the data, including the first quarter of 2009, and illustrates them with numerous charts and maps. There is also a methodological chapter (Chapter IV Metadata) that explains essential concepts and definitions used in compiling the statistics, and an appendix with detailed data on trade by region up to 2008.

All data used in the publication, as well as additional charts not included in the book, can be downloaded from the WTO web site at http://stat.wto.org. With these additions, International Trade Statistics 2009 serves as an invaluable reference for researchers, policy makers and anyone interested in international trade.

This publication and its data is available free on the WTO web site in the following forms:

• charts and tables in Excel format
• chapter highlights in pdf format
• statistics in a searchable database

Printed versions of this publication will be available in English, French and Spanish and can be ordered from the online bookshop. PDF versions of the entire report will also be posted on the WTO web site.

Proposed Remission of Customs Duties on Future Importations of Certain Types of Vessels…

(Department of Finance)

The Government published a notice in the October 24, 2009 edition of Canada Gazette Part I regarding the proposed remission of customs duties on future importations of certain types of vessels of a length of 129 metres or more. The Canada Gazette notice is available at the hyperlink below.

Comments should be submitted by December 11, 2009, in the format described in the following notice.

Webinar: Practical Tax Advice for Canadian Companies Expanding into the United States – November 6

(International Trade Canada)

Is your business looking to expand into the U.S.? Then, get the edge on the U.S. tax man!

Today, international commerce is a key driver to the business growth of many companies. For many Canadian companies, the first step towards an increased international presence is to expand operations into the U.S. However, the wrong U.S. tax structure can put your company at a real disadvantage.

This webinar will show Canadian companies how to implement a successful global tax strategy while also keeping the Internal Revenue Service happy!

Why should you participate? You will:

• Learn more about the Federal and State corporate tax systems for Canadian corporations and discover how to maximize your profits in the U.S.;

• Find out more about transfer pricing, public law 86-272, etc.;

• Get the information you need about U.S. Government incentives and how to build a successful tax strategy for your company.

Date: Friday, November 6, 2009
Time: 1:00 to 2:00 p.m. EDT
Cost: Free
Please register by November 4, 2009, here.

Envoy Sees Open Yet Safe Border

(Romina Maurino — The Canadian Press)

U.S. ambassador on Canadian tour

The new U.S. ambassador to Canada says he is confident the two countries can find a way to protect their borders without hampering free trade.

Ambassador David Jacobson took his message to a business audience in Toronto on Thursday, telling them that while addressing terror threats is a key priority, trade is just as important for the economies of both countries.

“The security of both the United States and Canadian people, and efficiency at the border, is not a zero-sum game,” said Jacobson.

“We do not have to choose either security or trade — if we approach both of them intelligently, we can have both of them.”

Jacobson, who is on a tour of Canada after becoming ambassador earlier this month, plans to visit several U.S.-Canada border crossings in the Niagara area today.

He said part of the problem with the border is that much of the infrastructure is outdated — some of it even predates the Second World War. Read more here.

The Race to Recovery

(Export Development Canada – Peter G. Hall)

Once again, the ‘R’ word is everywhere – although this time, it’s not recession, but recovery. Positive signals in the economy are mounting, setting off lots of ‘recovery buzz’. Trouble is, the growth that we are seeing still leaves us well below pre-recession activity levels. Clearly there is a big difference between the return of growth and the onset of true recovery. The race to recovery is on, but we still have big hurdles to clear before we’ll have a solid fix on the finish line.

This race has now been underway for awhile, and key hurdles have already been cleared. Financial markets staved off crisis last fall, as massive and rapid injections of liquidity kept funds flowing in the wake of the toxic asset problem. Large financial institutions have returned to profitability, and credit spreads have stabilized at much more normal levels. The world economy has also survived a drop in total production and trade far larger than any in recent memory. And the current optimism about the near-term future is occurring as unemployment rates around the world continue to march upward. Read more or watch the video here