News from Thompson Ahern: Weekly Updates

An updated list of recently published government memorandums, notices, regulations and decisions for the week ending May 11, 2011 is now available on our website here.

IES Hits the Road Running with Canadian Highway ACI Certification

(CNW)

Transportation software provider, IES, Ltd., urges the logistics industry to take action before the November 1st deadline when non-compliant truck carriers will be denied entry into Canada.
IES has been certified by the CBSA (Canada Border Services Agency) as an authorized Canadian ACI highway software provider. IES will now provide one cloud-based gateway for truck shipments traveling from the US into Canada and from Canada into the United States.

Kevin Gavin, Senior VP of Supply Chain Compliance at IES explains the urgency of the looming regulation, “CBSA has clearly stated that non-compliant highway carriers will be denied entry to Canada. With ACI on the horizon, we would strongly urge carriers and service providers to begin planning their strategies now to bypass the pitfalls associated with a last-minute rush toward compliance.”

“We are proud to announce that IES has been certified by CBSA as an authorized ACI service bureau. We have added Canadian Highway ACI to our existing cloud-based US Truck ACE technology. The combined Truck eManifest product provides one portal for shipments both to and from Canada. Highway carriers and brokers can complete and submit electronic manifests online to both CBP and CBSA to comply with the Automated Commercial Environment (ACE) and Advance Commercial Information (ACI) programs respectively. Since both tools are bundled together in one interface, users can avoid the discontinuity that arises when jumping to and from multiple systems.” Read more here.

TSA to Begin 100% Global Cargo Screening in December

(Journal of Commerce – Mark Szakonyi)

Agency will begin screening all cargo from international passenger flights Dec. 3

The Transportation Security Administration will begin screening all cargo arriving from international passenger flights in early December, a year after the agency was tasked to expand its screening reach from the domestic to global scale.

“Harmonizing security efforts with our international and industry partners is a vital step in securing the global supply chain,” said TSA Administrator John Pistole. “By making greater use of intelligence, TSA can strengthen screening processes and ensure the screening of all cargo shipments without impeding the flow of commerce.” Read more here.

Canada Dollar Hits 4-month Low in “New Chapter” of Europe Crisis

(Reuters – Claire Sibonney)

Canada’s dollar hit a four-month low against the U.S. dollar on Thursday as investors were gripped by worries about European banks and the prospect of Greece leaving the euro zone. Uninspiring U.S. and Canadian economic data added to the gloom.

Fears about Spain’s banks resurfaced after a newspaper report that customers at Bankia, the partly nationalized lender, had withdrawn more than 1 billion euros from their accounts in the past week. The Spanish government said there had been no exit of deposits. The report followed suggestions that customers of Greek banks were moving funds in expectation of the country’s exit from the euro, adding to broader anxiety about the region’s debt crisis. Read more here.

Tories Suspend International Business Program after Audit Reveals ‘Irregularities’

(The Globe and Mail – Steven Chase)

The Harper government is suspending a $20-million program that promotes Canadian business investment in developing countries after auditors uncovered what Ottawa is calling financial “irregularities” in some projects. It’s bad timing for the Trudeau-era Investment Cooperation Program, the utility of which the Conservatives were already scrutinizing during an era of belt-tightening in Ottawa.

International Trade Minister Ed Fast said he first learned of trouble at INC in early March following preliminary audits of a sampling of projects in the 2008 to 2011 period. “Departmental officials have been authorized to seek recovery of taxpayer dollars wherever warranted, and if appropriate, to refer matters to law enforcement for possible further investigation,” Mr. Fast said. Read more here.

Message from CFIA - Victoria Day Holiday

The Import Control Division will be closed for the Victoria day holiday from Friday May 18, 2012 at 4:00 pm (ET) until Tuesday May 22, 2012 at 8:00 am.  

If you require assistance please contact the National Import Service Centre:
National ISC :   800-835-4486, 877-493-0468

Please note:  Ottawa Meat Import Control Centre (1-877-682-5191) will be opened Monday, May 21, 2012 from the hours of 8 AM to 6 PM (ET).

China Grants More Quotas for Rare-Earth Exports

(Industry Week/AFP)

Ministry of Commerce said additional quotas were given to 12 companies that recently passed environmental checks

China, which is locked in a dispute with major trading partners over its control of rare earth-minerals, on Thursday announced additional export quotas for this year. The Ministry of Commerce said it would allow companies to potentially export an additional 10,680 tonnes of rare earths, bringing the total for this year to 21,226 tonnes.

The United States, European Union and Japan lodged a complaint with the World Trade Organization in March, saying China was choking off exports of rare earths to unfairly benefit domestic industries. Read more here.

Argentina En Route to Become the “Greece of Latin America” Claim Chilean Exporters

(MercoPress)

Argentina could rapidly become the “Greece of Latin America” given the trade restrictions it has imposed born out of the lack of sufficient hard currency to face its international commitments, according to Chile’s Manufacturing and Services Exporters Association, Roberto Fantuzzi.

“So far this year (Chilean) manufactured exports to Argentina keep falling, which anticipates a further drop in April. We must begin to acknowledge that Argentina could become the Greece of Latin America since its crisis of lack of hard currency is affecting all of its neighbours, manufacturing exports to Argentina are in a free fall”, said Fantuzzi.

Since last February first, all Argentine importers must present anticipated sworn statements before any operation which is neither a guarantee of approval on time or in volume by the bureaucratic system mounted to decide on each request. This has caused a serious fall in export volume to Argentina for Chilean companies and items, points out Fantuzzi. Read more here.

Saint Lawrence Seaway Begins Season with Volume Gain

(Journal of Commerce – Mark Szakonyi)

Traffic rose 2.2% year-over-year between March 22 and April 30

A jump in coal shipments helped boost cargo volume on the Saint Lawrence Seaway up 2.2% in the first five weeks of the waterway season in 2012.

Coal shipments, the second-largest shipped commodity on the international seaway, rose 40% year-over-year between March 22 and April 30. An 8% increase in iron ore volume helped offset a 9% drop in grain volume in the same period.

Much of the gains in traffic are caused by the strengthening of the North American steel industry, according to the St. Lawrence Seaway Development Corp. Shipments of bulk materials, including stone and cement, rose 15% so far this season from the same period a year ago. Read more here.

Alberta’s international exports are forecast to grow by 7% this year and 6% in 2013, surpassing CAD 100 billion next year

(Canada Newswire)

Alberta’s international exports are forecast to grow by 7% this year and 6% in 2013, surpassing CAD 100 billion next year, according to the Global Export Forecast released today by Export Development Canada (EDC).

“Peak prices for oil and key commodities have been boosting the value of Alberta’s exports for a number of years, but additional gains will be somewhat constrained by softening prices. Increased volumes, however, will keep the province on the growth track,” said Peter Hall, Chief Economist of EDC.

Alberta exports are dominated by the energy sector, which accounts for three quarters of total annual sales. Energy exports are forecast to rise 8% in 2012 and 5% in 2013, despite a weaker price environment. Read more here.

Retailers Brace for More Cross-border Shopping Pain

(Globe & Mail)

Canadians are spending far more on goods in the U.S. than federal data suggest, raising the stakes for domestic retailers trying to find ways to draw customers back into their stores.

As much as 8 to 10 per cent of consumer spending on a raft of products is flowing to retailers outside the border, according to estimates in a report being released today by BMO Nesbitt Burns. That compares to Statistics Canada data that say 4 per cent of retail spending is shifting outside the country. Read more here.

Software Piracy Costs Record $63.4 Billion in 2011

(Agence France-Presse)

China, emerging economies push pirated software use to an all-time high.

Software piracy cost the industry a record $63.4 billion globally in 2011 with emerging economies listed as the main culprits, an annual study said Tuesday. This was up nearly 8% from the previous record of $58.8 billion in 2010, the Business Software Alliance (BSA) said in the study.

In the Asia Pacific, which comprises several emerging economies including China, bootleg software usage also cost the industry an all-time high of $21 billion last year, up 12% from 2010, BSA said. Read more here.

Michigan Opens New Truck Road Near Ambassador Bridge in Detroit

(Associated Press)

Michigan is celebrating the opening of a new road designed to get thousands of trucks off secondary streets near the Ambassador Bridge in Detroit.

Lt.-Gov. Brian Calley marked the opening of the road with an event Tuesday near the bridge that connects with Windsor, Ont., over the Detroit River. [...]

It allows U.S.-bound trucks coming off the Ambassador Bridge to connect directly with nearby interstates without driving along Detroit surface streets. Read more here.

Related: DRIC Meeting Angers Ambassador Bridge Brass (Windsor Star)

Administrative Monetary Penalties (Consumer Products) Regulations Under the Canada Consumer Product Safety Act

(Health Canada)

Health Canada is currently conducting a consultation on the creation of the proposed Administrative Monetary Penalties (Consumer Products) Regulations under the Canada Consumer Product Safety Act. (CCPSA).  These proposed Regulations are meant to further clarify the CCPSA provisions of the administrative monetary penalties process on matters such as classifying violations, fixing penalties, and the circumstances under which penalties may be increased or reduced.  For more information on this proposal, please visit the Canada Gazette.

The proposed regulations are currently undergoing a 75-day comment period, which ends on June 7, 2012.  Comments received before this date will be formally reviewed and considered by Health Canada.  After this time, Health Canada will take the necessary steps to finalize the proposed regulations for publication in Canada Gazette, Part II, where they will become law.

Please address comments to:
James Hardy,
Project Officer,
Risk Management Strategies Division,
Risk Management Bureau,
Consumer Product Safety Directorate,
Healthy Environments and Consumer Safety Branch,
Department of Health,
123 Slater Street, 4th floor, Address Locator 3504D,
Ottawa, Ontario K1A 0K9
fax: 613-952-9138
email: cps.spc@hc-sc.gc.ca

Canadian International Trade Tribunal Initiates an Inquiry

(CITT-Marketwire)

Carbon Steel Welded Pipe From Chinese Taipei, India, Oman, Korea, Thailand, Turkey and the United Arab Emirates

The Canadian International Trade Tribunal today initiated a preliminary injury inquiry into a complaint by Novamerican Steel Inc., of Montreal, Quebec, and Bolton Steel Tube Co. Ltd., of Bolton, Ontario, that they have suffered injury as a result of the dumping of certain carbon steel welded pipe from Chinese Taipei, the Republic of India, the Sultanate of Oman, the Republic of Korea, Thailand, the Republic of Turkey and the United Arab Emirates and the subsidizing of the above-mentioned goods from the Republic of India, the Sultanate of Oman and the United Arab Emirates. The Tribunal’s inquiry is conducted pursuant to the Special Import Measures Act as a result of the initiation of dumping and subsidizing investigations by the Canada Border Services Agency (CBSA).

On July 13, 2012, the Tribunal will determine whether there is a reasonable indication that the alleged dumping and subsidizing have injured the domestic industry. If so, the CBSA will continue its investigations and, by August 13, 2012, will issue preliminary determinations. If these preliminary determinations indicate that there has been dumping or subsidizing, the CBSA will then continue its investigations and, concurrently, the Tribunal will initiate a final injury inquiry. Anti-dumping and/or countervailing duties will be imposed only if the Tribunal finds that dumped or subsidized products are injuring or threatening to injure the Canadian producers.

Canada Missing the Boat on Trade with the BRICs

(The Globe and Mail – Kevin Carmichael)

When it comes to the BRICs, Canada kind of missed the boat.

According to calculations by Peter Hall, the chief economist at Export Development Canada, Canada’s share of Brazilian imports was 2.1% in 1990, 1.9% in 2000 and 1.5% in 2010.

That pattern is the same in the other big emerging markets.

Russia: 3.1% of imports in 1992; 0.6% in 2000; and 0.6% in 2010.

India: 1.3% in 1990; 0.8% in 2000; 0.6% in 2010.

China: 2.8% in 1990; 1.7% in 2000; 1.1% in 2010.

This isn’t an entirely negative story. In absolute terms, Canada’s exports to those countries rose over the past couple of decades. That brought more money back home.  There also was more competition in global markets as those countries and others muscled in for a bigger share of international trade. Read more here.

Ottawa Struggles to Establish ‘Product of Canada’ Guidelines

(Sarah Schmidt – Postmedia News)

When can a chick or a pig claim Canadian residency?

It’s a tricky question that’s confounding the federal government, as it struggles to sort out what meat products can claim to be a “Product of Canada” on food packaging.

The conundrum dates back to 2008, when the government didn’t factor in how imported live animals fit in to strict new Product-of-Canada-labelling guidelines unveiled by Agriculture Minister Gerry Ritz. The new policy, in effect since the beginning of 2009, requires any food to contain 98 per cent of Canadian ingredients to be considered a Product of Canada.

The Canadian Food Inspection Agency now has interim guidelines for imported cows, permitting cattle to be considered Canadian for labelling purposes if they live in Canada for 60 days before being slaughtered and processed in Canada. But CFIA says it has yet to establish residency rules for other animals, such as imported chicks and swine so, for now, the 60-day residency period only qualifies to cattle. Read more here.

Canada and United States Release Joint Plan for Emergency Border Traffic Management

(Public Safety Canada)

Today, the Honourable Vic Toews, Canada’s Minister of Public Safety, announced the release of the Considerations for United States – Canada Border Traffic Disruption Management guide. The guide, which was developed jointly by Public Safety Canada and the U.S. Department of Homeland Security, fulfils one of the first commitments under the Canada-U.S. Action Plan on Perimeter Security and Economic Competiveness.

“The Action Plan on Perimeter Security and Economic Competitiveness sets ambitious, achievable goals that will advance economic opportunity and lead to a more efficient border. Implementation of this guide will help maintain economic stability and ensure that priority traffic moves freely towards and away from the secure Canada – US border during times of crisis,” said Minister Toews. “This plan is the result of close collaboration with a wide range of stakeholders, including government officials from the local, state, and provincial/territorial level, to manage the flow of traffic near the border during a disruption.”

The guide outlines best practices and identifies critical issues to consider when developing or updating traffic management plans to ensure they are tailored to address regional requirements and individual border crossings. The guide provides specific actions and questions for stakeholders in the areas of:

- preparedness;
- communications and information management;
- resource management;
- command and management; and
- on-going management and maintenance.

As a next step, Public Safety Canada (PS) and U.S. Department of Homeland Security (DHS) officials will engage with regional authorities to adapt the guide to specific points of entry and conduct cross-border regional exercises. PS and DHS will report annually on the percentage of priority border crossings that are covered by a regional plan and validated through an exercise.

For more information on the Considerations for United States – Canada Border Traffic Disruption Management guide, please visit the website www.publicsafety.gc.ca.  For more information on the Action Plan on Perimeter Security and Economic Competitiveness, please visit the website www.borderactionplan.gc.ca.