February 26, 2011

Shippers See Modest Growth Continuing in 2011

(Canadian Transportation & Logistics – Lou Smyrlis)

Shippers expect modest growth in shipments by most modes in 2011. They also expect to be faced with small increases in rates and fuel surcharges. These are some of the findings of the sixth annual benchmarking survey undertaken by Dr. Alan Saipe of Supply Chain Surveys Inc. for CITA, with the sponsorship of RBC Capital Markets and the support of Transport Canada and Nulogx Inc.

The annual survey is designed to give the CITA membership benchmarks with which to assist in evaluating their transportation and logistics activities.

A few of the highlights are:

• Shippers were more focused on cost reduction and profit growth this year than in recent years
• Shippers found that Service quality in most modes improved in both 2009 and again in 2010. A factor in quality gains will be volume reductions compared to 2008.

Read more here.

Railway Carloadings Up in December

(Statistics Canada)

The Canadian railway industry carried 23.2 million tonnes of freight in December, a 7.5% gain from December 2009.

The gain was the result of increased loadings by the industry’s core transportation systems, non-intermodal and intermodal, and international freight loadings from the
United States.

Compared with December 2009, non-intermodal loadings rose 6.1% to 18.6 million tonnes in December. The commodity groups with the largest gains in tonnage were potash, coal and colza seeds (canola). Overall, 36 of the 63 commodity groups registered an increase in freight loadings for the month.

Intermodal freight loadings, comprised of containers and trailers on flat cars, rose 8.9% from December 2009 to 2.1 million tonnes in December. The increase was solely the result of a rise in containerized cargo shipments.

On an international scale, traffic received from the
United States destined for or passing through Canada rose 18.8% from December 2009 to 2.4 million tonnes in December.

February 25, 2011

News from Thompson Ahern: Weekly Updates

An updated list of recently published government memorandums, notices, regulations and decisions for the week ending February 25, 2011 is now available on our website here.

Western Begins Research on Commercial Border Traffic

(Kyle Gootkin — Western Front)   

Western’s Border Policy Research Institute has begun research that could improve commercial traffic congestion at the United States-Canadian border.

The institute began field research on the current lane configuration Feb. 22 and will continue collecting data until April 14, according to a university press release.

The institute received a $49,000 grant from the Washington Department of Transportation to study the efficiency of the Free and Secure Trade truck lane at the Pacific Highway crossing and alternative uses, said Director of the institute Donald Alper.

The institute will collaborate with U.S. Customs and Border Protection, Canada Border Services Agency, the British Columbia Ministry of Transportation, Washington State Department of Transportation and Whatcom Council of Governments for the project, according to the press release. Read more here.

Chinese Import Taxes to be Lowered

(CRI)

China is to cut import taxes on some products, including formula milk and cosmetics. The move aims to balance international trade.

In January, the Ministry of Finance said tax revenues jumped 23% year-on-year to more than 7 trillion yuan or about $1 trillion US dollars in 2010, partly boosted by import taxes.

Economist Luo Dingyu said the tax reductions are partly a response to the global financial situation. He said "the cuts are in line with the expectations of the world’s major economies. A number of countries have been hoping that an increase in exports to
China will help to fuel their struggling economics."

The move comes after just days after the G20 meeting in
Paris, at which China came under pressure to increase imports and lower its trade surplus as a means of reducing global trade imbalances.

Data from the General Administration of Customs show that
China’s trade surplus decreased by about 6% year-on-year in 2010.

Chinese Appetite for B.C. Lumber Could Soon Pass U.S., Minister Says

(Vancouver Sun – Brian Morton)

China may well replace the U.S. within two years as B.C.’s largest market for softwood lumber exports, Forests Minister Pat Bell said in Vancouver Tuesday.

“In December, we sold over 420 million board feet into
China and that’s over five billion annualized,” Bell said in an interview after participating in a forum on investment opportunities in China. “In the U.S., it was [just under] seven billion board feet last year. So, I think 2012, 2013 is a realistic objective to see China displace the U.S. as the largest importer of our softwood lumber.”

Bell, one of several panel members at Doing Business in China, a forum organized by HSBC Bank Canada, told the assembled business leaders that the scale of housing construction in China is enormous and represents a “huge opportunity” for B.C.’s forest sector. […]

He noted that in 2005, 70% of B.C. wood went to the
U.S. and just 17% to China and Japan. But in December 2010, 47% went to Japan and China and just 36% to the U.S. Read more here.

European Report Warns Canada Against Looser IP Rules in Trade Deal

(Embassy – Anca Gurzu)

Giving in to European Union demands to tighten the country’s intellectual property regime could benefit Canada’s pharmaceutical and publishing industries, but will "have significant adverse impacts" on some consumers, according to the new European Commission report.

Meanwhile, whatever innovation is gained through strengthening
Canada’s IP rules could be lost if the country agrees to open its sub-federal procurement market to European companies, the report says, though the reverse isn’t true. Rather, Canadian firms would be best-served if negotiators can liberalize services.

The report, concluded in December 2010, is the second of a three-part study of how the proposed Comprehensive Economic Trade Agreement will impact each side’s economy, but also social, environmental and development dimensions. It also examines those issues in relevant third countries. Read more here.

EU to Tackle Canadian Tar Sands in New Law – Sources

(Reuters – Pete Harrison and Juliane von Reppert-Bismarck) 

Europe’s trade and climate chiefs are preparing to take a stand against imports of oil from Canada’s polluting tar sands, despite fears the move might wreck a multi-billion dollar trade deal, according to EU sources and documents.

European Union sources said this week that
Canada had threatened to pull out of trade talks because of the clash, but Ottawa has denied that. Canada says draft EU standards to promote greener fuels will harm a possible future market for its oil sands – tar-like oil that is trapped in sediment and forms the world’s second-largest proven oil reserves after Saudi Arabia’s.

Last year the European Union appeared to back down on the issue, putting commerce ahead of a strategy to curb greenhouse gases from transport fuels by 6% this decade. Read more here.


Related: Canada Says EU Oil Spat Not Linked to Trade Talks (Reuters)

CCPSA: Canada’s New Product Safety Law

Webinar: March 8, 2010

Health Canada’s new powers under the Canada Consumer Product Safety Act (CCPSA) will affect how companies approach recalls, product testing, record-keeping, labeling, advertising, confidential information … and more.

To help ensure businesses are on top of this legislation, Product Safety Letter will host a webinar March 8: CCPSA:
Canada’s New Product Safety Law.

Three consumer product safety and regulatory experts will give the insights and advice companies need to be prepared to do business in Canada as that country moves forward with its new rules over the coming months.

For speakers and registration go here.

Canadian Ground Transportation Rates Continue to Soften: CGFI

(Truck News)

The latest Canadian General Freight Index (CGFI) shows a continued softening in ground transportation rates.

The index indicated the cost of ground transportation for Canadian shippers dropped for the third consecutive month in December, in contrast to fuel surcharges, which continue to rise.

The CGFI Total Freight Cost Index dropped 1.6% in December compared to November while the Base Rate Index, which excludes fuel surcharges, declined 2.5%. The index remains 2.9% above its April low point and 1.5% higher than last year’s results for the same period. Read more here.

February 23, 2011

WCO IT Conference & Exhibition

A three day high-level international event with over 30 leading experts offering insight and opinion on critical issues and focusing on the vital role of information technology can play in linking all parties operating at the border in the most effective manner.

Registration and information here.

EU Customs Law & Practice

Special Master Class for North American Customs & Trade Professionals

This two-day advanced-level course represents a unique opportunity for North American-based trade experts and corporate compliance managers to gain a thorough grounding in the legal fundamentals underlying the EU import and export process, to understand the complicated division of legal and operational responsibilities between the EU and member states, and to obtain an in-depth and comprehensive primer on the rights and obligations of companies engaged in trade with the EU. Led by Michael Lux, one of the prime movers behind the EU’s customs legislation and regulation for the last decade, this event represents a unique opportunity for North American-based trade experts and corporate compliance managers to gain insight into what is often viewed as a complex and confusing body of regulation directly affecting the bottom lines of many multinationals with operations in the European Union. 


Date: March 8 & 9, 2010
Location:
Hilton BWI Airport, Linthicum Hgts, MD

Go here for registration and contact information.  

Transportation Summit 2011: Best Practices Shaping Global Logistics

March 2 & 3, 2011
 

Renaissance Harbourside Hotel Vancouver

Connect, Collaborate, Orchestrate 

 
Share and learn from the best to improve your business, competitiveness and network

Organized in conjunction with the Global Institute of Logistics (GIL), this conference capitalizes on four years of recently completed travel and research by GIL to identify global best-in-class logistics, port and marine terminal operations. The conference will review the development of “Best Practice” in Canada’s transport logistics supply chain and benchmark its performance with established global best practices, in the company of local and global thought leaders.

The 2-day
Summit will explore best practices in cargo supply chains around the world, from North America and Europe to Asia and Australia. These practices range from bulk materials handling and maritime container logistics to infrastructure planning, port governance and stakeholder collaboration, workforce training and technology integration, and key performance indicators.

Go here to register or obtain information.
WESTAC – Email: conferences@westac.com Phone 604-687-8691

Free Webinar: Exploit New and Emerging Markets

Exploit new or emerging markets – while protecting your brand. Learn how you can improve the link between global manufacturing operations and the supply chain.

This free IndustryWeek webinar on March 3 will discuss how your company can be customer-centric, agile, and highly efficient in managing its increasing complexity.

Eevent details: “Three Steps to Reduce the Complexity of Global Manufacturing”

DATE: Thursday, March 3, 2011
TIME:
2:00 p.m. EST (GMT -5, New York)
DURATION: One hour
COST: None
Sponsored by Apriso

Being a successful global manufacturer is not an easy task today. Manufacturers must be ready to make rapid corrections to their tactics to address fast changing demand, shorter product lifecycles, and opportunities to reach new or emerging markets.

Attend this webinar to learn how to:

• Improve the link between global manufacturing operations and the supply chain
• Accelerate new product introduction, while protecting brand integrity
• Turn your global manufacturing strategy into action

Click here to register for this free webinar.

Customs Notice 11-002: Textile and Apparel Remission Orders

(CBSA)

1. The purpose of this customs notice is to inform industry that Canada Border Services Agency (
CBSA) has experienced a delay in the issuance of annual renewals of authorizations required pursuant to the following Remission Orders, subsequently amended most recently by P.C. 2008-1599, Order Amending Certain Textile and Apparel Remission Orders, 2008:
 

1. Tailored Collar Shirts Remission Order, 1997 P.C. 1997-830
2. Outerwear Greige Fabrics Remission Order, 1998 P.C. 1997-2054
3. Shirting Fabrics Remission Order, 1998 P.C. 1997-2055
4. Outerwear Apparel Remission Order, 1998 P.C. 1997-2056
5. Blouses, Shirts and Co-Ordinates Remission Order, 1998 P.C. 1997-2057
6. Outerwear Fabrics Remission Order, 1998 P.C. 1997-2058

2. This delay arose during the course of a quality assurance review being conducted by the
CBSA. The CBSA is initiating immediate action to resume the review and approval of annual authorizations.

3. It is important to note that these six Orders remain in effect and are still scheduled to expire on
December 31, 2012.

4. Eligible apparel manufacturers or fabric producers (as named in the Schedules to the Orders) that wish to avail themselves of an Order may do so by obtaining an annual authorization to import under that Order or by filing a drawback claim to recover duties paid on qualifying goods.

5. If a manufacturer or producer intends to have duties remitted at the time of importation, that manufacturer or producer must submit, at the beginning of each calendar year, to the regional
CBSA office nearest where the company’s operations are located, an application by letter of intent, confirming that the company:
 

a. is a manufacturer or producer of (insert description of qualifying goods) in Canada;
b. is listed in the Schedule to the Order and has a 1995 duty entitlement of (insert 1995 allocation);
c. will not exceed the amount of duties that may be claimed for remission on imported goods;
d. will, if applicable, include the names and addresses of any other persons or companies that might be performing cutting or sewing operations in Canada on its behalf; or
e. will, if applicable, include the names and addresses of any distributors who have purchased finished outerwear fabric or outerwear greige fabric to be sold to outerwear apparel manufacturers;
f. will maintain records that are satisfactory to
CBSA;
g. will meet all the conditions of the Order; and
h. will provide
CBSA with any other information which may be requested to substantiate its claim for remission.

6. Authorized manufacturers and producers will continue to have the ability to recover any duties that have been paid on qualifying goods, by filing a drawback claim at the regional
CBSA office nearest where the company’s operations are located.

7. A manufacturer or producer claiming remission by way of drawback must meet the same requirements as a manufacturer or producer claiming remission at the time of importation although a letter of intent to obtain an authorization number is not required.

8. Mailing addresses for the submission of Letters of Intent and/or Claims for Drawback pursuant to these Orders follow:

Quebec Region:
Ms. Annie Beauséjour
Director, Trade Services Division

Harper Bowing to U.S. in Border Talks, Liberals Say

(Montreal Gazette – Megan Fitzpatrick, Postmedia News)

Deal should focus on trade issues; ‘We don’t want Canada’s border being managed by U.S. Homeland Security’

Talk about a new border accord with the United States is focused too much on security and not enough on trade, the Opposition Liberals said yesterday, accusing the Conservative government of ignoring Canadian interests and conducting negotiations in secret.

Liberal trade critic Martha Hall Findlay held a news conference to blast Prime Minister Stephen Harper over the “declaration” he announced earlier this month with U.S. President Barack Obama, an effort the leaders said will enhance border security and reduce regulatory barriers to trade and travel.

Findlay said from the few details that have been released about the accord, which is under negotiation, none is related to ongoing trade irritants between Canada and the U.S. She cited the Buy American policy and country-of-origin labelling rules as examples of trade problems she said the Harper government is doing little to solve. Read more here.

Compliance and Enforcement Operational Policy

(CFIA)

This is to inform you that the Canadian Food Inspection Agency (CFIA) has updated its Compliance and Enforcement Operational Policy (CEOP). The revised version places greater emphasis on transparency as well as recourse mechanisms available to industry.

The updated policy, which will be available on CFIA’s website by February 25, 2011, confirms the CFIA’s overall approach to assessing compliance and applying enforcement action when warranted. We will continue to work closely with industry members on compliance issues while practicing fairness, impartiality and consistency. Similarly, existing principles, legislation, and roles and functions of industry and the CFIA remain in place.

In keeping with our commitment to transparency, the CFIA will also begin posting on its website quarterly information on enforcement activities. The first data to go on our website in the coming weeks will include:
 

• Links to existing prosecution bulletins
• Food imports refused entry into
Canada
As this initiative expands, more enforcement-related information will be posted, including:
• confiscation of food products that could not be brought into compliance;
• Administrative Monetary Penalties (AMPs);
• federally registered food establishments whose licenses have been suspended, cancelled or reinstated; and
• names of companies that have received Notices of Violations with Penalty in the course of carrying out their business.


Posting this information is consistent with the practice of several other federal regulators who currently provide information on their compliance and enforcement activities (e.g. CRTC; Transportation Safety Board of Canada; Health Canada). It is also consistent with information publicly shared by the U.S. Food and Drug Administration and the U.S. Food Safety and Inspection Service, and internationally. There is also a demonstrated public need for this type of disclosure, reinforced by the recommendations in the Report of the Independent Investigator into the 2008 Listeria Outbreak.

We feel that our decision to add this new section to our website is a fair and measured approach to protecting the safety of Canada’s food supply and, ultimately, the good reputation of your industry.

We recognize and are sensitive to issues of privacy and commercial confidence and intend to provide appropriate context for information that will be made public.

The CFIA and our inspectors remain committed to working closely with you to resolve any issues that might affect our food supply, your industry and individual businesses. In doing so, we hope that, together, this will protect the quality of food Canadians consume while minimizing enforcement activities.

The CFIA anticipates that you may have questions or need clarification regarding the new CEOP and the posting of enforcement information. We are therefore providing you a dedicated email address where you can send your questions. Please direct your questions to: cfiamaster@inspection.gc.ca

We encourage you to distribute this information through your own channels. Thank you for your cooperation and participation.

Sincerely,
Cameron Prince
Vice President, Operations,
Canadian Food Inspection Agency
Ottawa

Canada-EU Trade Deal Threatened by Oilsands Dispute

(The Vancouver Sun – Reuters)

Canada has threatened to scrap a trade deal with the European Union if the EU persists with plans that would block imports of Canada’s highly polluting tar sands, according to EU documents and sources.

The European Union has told its fuel suppliers to reduce the carbon footprint of fuels by 6% over the next decade, and is now fine-tuning “default values” to help suppliers identify the most carbon-intensive imports.

Canada says the standards would instantly constrict a possible future market for its oil sands – tar-like oil that is trapped in sediment and forms the world’s second-largest proven crude reserves after those of Saudi Arabia. Read more here.

U.S. Downplays Concern Over Cross-Border Fees

(CTV News)

Washington’s top diplomat in Ottawa attempted to tamp down concerns Friday over a U.S. proposal that could result in an additional tax on Canadian freight heading south of the border. Reports of the freight tax proposal, which was recently tabled in Congress, come as the U.S. also mulls a visitor inspection fee on Canadian travellers going to the U.S.

But U.S. Ambassador David Jacobson said that Canadian businesses should not be worried about the proposal, which likely won’t make it far in the legislation process in
Washington. Read more here.