Wheeled or Trailer Mounted Machinery

“Tow Behind” (Wheeled) Machinery & Trailer Mounted Machinery….are you declaring it properly to your broker?

 

The Issue: 

Cole has noticed an increase in the number of penalties being issued by the Canada Border Services Agency (CBSA) for not providing a properly completed “Form 13-0132, Vehicle Import Form – Form 1″ (Form 1) where required.

In most cases, the goods have been a piece of equipment that was either wheeled (tow behind type) or trailer mounted.  Because of this increased focus by CBSA, we would like to clarify the documentation requirements on such “vehicles” for you.

 

Background:

The RIV is the Registrar of Imported Vehicles.  It is Canada’s national program of vehicle registration, inspection and certification.  The purpose of the program is to ensure vehicles being imported (that were originally manufactured for the U.S. market) meet the Canadian standards.

“Vehicle” Definition: Any vehicle that is capable of being driven or drawn on roads by any means other than muscular power exclusively, but does not include vehicles designed to run on rails.

Trailer mounted and wheeled equipment that will be towed behind vehicles on the road, do meet this definition and therefore must enter the RIV program and require the RIV Form 1 upon importation.

Note: This RIV requirement applies to vehicles that are less than 15 years old.

 

Examples of Tow Behind / Wheeled / Trailer Mounted Machinery:

CLICK HERE: Tow Behind & Trailer Mounted Machinery For RIV

 

Effects of Noncompliance: 

Cole has found that CBSA does not give much leeway when a Form 1 is not provided as required.  Simply put, if it’s missing – regardless of the reason and whether or not it was an unintentional oversight – a penalty will generally be issued.  The infraction and penalty details are:

NPA# Contravention Penalty
C071 Person failed to provide required certificate, licence, permit or information before the goods are released  1st $500.00            2nd $750.00        3rd $1500.00

What do you need to do?

Familiarize yourself with the types of equipment that your company deals with that commonly come wheeled, tow behind or trailer mounted.

If you encounter one of these items in the course of your duties in an import or export transaction, please ensure that you include it on the documentation you complete for that transaction and make it known to Cole.

With this information, we will be able to correctly classify your goods and submit any necessary RIV forms, thereby avoiding penalties by CBSA.

 

More information and links:


http://www.cbsa-asfc.gc.ca/publications/dm-md/d19/d19-12-1-eng.html

http://www.cole.ca/importing-vehicles.php

https://www.riv.ca/

https://www.riv.ca/CBSAEntryRequirements.aspx

 

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Strategy Needed for Port Congestion in 2015

Port congestion on the west coast of North America proved to be a major concern in 2014 and by all accounts will continue to be with us as we move forward in 2015. Initial reports of slowdowns at Los Angeles and Long Beach, CA were the tip of the iceberg as the effects of delayed shipments, and increased costs, were felt by importers, and their customers, throughout the supply chain. And Canada was no exception as the Port of Vancouver struggled with its own issues last year.

There’s enough room for blame all around however, and there was certainly no shortage of finger pointing as customers blamed carriers for delays, ship-owners blamed Ports for lack of infrastructure improvements, carriers blamed Ports and ship-owners for lack of chassis, unions blamed Ports for container-processing delays, and Ports were afraid to blame anyone for giving them so much business. Regardless, it’s not as though the industry shouldn’t have seen this coming. There’s no shortage of engaged stakeholders, but there is undoubtedly a shortage of coordination in terms of industry sectors working together to accurately forecast demand, enabling all parties to effectively assess capacity requirements. The fact that everyone acted so surprised when it happened was about as logical as everyone driving towards a cliff, then wondering why they fell off.

Can these problems be fixed this year? The short answer is probably not. Why? The answer is in the statistics. Port of Los Angeles total TEU movements (loaded and empty) for November 2014 YTD over the same period for 2013 increased 6.5%. Total TEU movements at the Port of Long Beach increased 1.6% for November 2014 YTD over 2013, and 2.8% at Port Metro Vancouver for the same period. This trend towards increased container handling requirements is a predictable result of globalization, at least as long as lower retail prices remain a determining factor for so many organizations in striving for competitive market advantage. Coupled with increased free trade agreements initiated by the U.S. and Canada, larger ocean vessels and lower fuel costs, these developments will do nothing to alleviate port congestion in the short term. Failure to recognize these limitations this year, without at least looking for alternatives, means we’re still driving towards a (congestion) cliff, we’ll just be doing it in larger vehicles.

As the saying goes, “Increased business is good for business”. But at some point, businesses have to acknowledge the relationship between forecasting, capacity planning and customer service. In other words, sometimes a more effective solution can be found by avoiding the problem, rather than by trying to fix it. For example, the Panama Canal expansion project, now 83% complete and slated for completion in 2016, will offer improved access to southern U.S. ports from Houston to Miami, relieving the delays so often experienced at many U.S. west coast ports. In Canada, Prince Rupert B.C. is a viable alternative to the congestion at Port Metro Vancouver, offering the shortest trade route to Asia and express rail service to the U.S. mid-west.

In fairness, congestion is not a condition unique to marine ports. Airfreight shippers in southern Ontario for example will soon benefit from the addition of a new cargo facility nearing completion at the John C. Munro International Airport in Hamilton. The new 70,000 sq. ft. facility will provide improved market access to SW Ontario for international cargo shippers, as well as an effective alternative to Toronto’s busy Pearson International Airport. The Hamilton facility will provide a full range of logistics offerings including cross-dock services for cargo and courier shipments, Customs formalities and capabilities for temperature-controlled products.

Most importantly, the challenges of 2014 should serve to remind us that supply chain planning warrants consideration when it comes to business strategy. Working proactively with your freight forwarder to identify strategies that avoid supply chain bottlenecks in the long term will prove a more effective solution for many importers and exporters in the years ahead.

Posted by: Laurie Turnbull, CITT, P.MM – Supply Chain Consultant, Cole International

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Update for Food Importers, Exporters & Producers

Update on New Requirements of the Safe Foods For Canadians Act

The Issue:

New information and timelines that all food importers, exporters and domestic producers should know regarding the Safe Foods For Canadians Act have been released.  Some of the changes are scheduled as early as June of 2015.

Background:

In March of 2014, Cole advised our clients that unprecedented changes for food importers, exporters and producers were on the horizon in 2015.  This was as a result of the passage of the Safe Foods For Canadians Act. See full story at: http://www.cole.ca/news/changes-for-canadian-food-importers-exporters-and-makers/

Among the many new requirements, all food importers, exporters and domestic producers will be required to hold a federal license.  In order to obtain a license, companies will be required to have a documented Preventative Control Plan (PCP) and a documented Traceability & Recall Plan.

Definitions:

Preventative Control Plan -  a written document that sets out how food safety and other regulatory requirements (e.g., labelling, product composition, etc.) will be achieved. PCPs are recognized internationally as the best way to demonstrate that food safety risks and hazards are controlled or eliminated because they focus on prevention and systems-based examination of operations by regulated parties.

Traceability & Recall Plan - Rapid identification of the origin and movement of a food commodity is essential for protecting consumers during a food safety incident. This process requires that accurate information about the food commodity be available to regulated parties and the CFIA in a timely and accessible manner. The plan will enable the tracking and traceability of food commodities forward to the immediate customer and backwards to the immediate supplier.  This would apply at every stage of the food supply chain.

 

Proposed Timelines for New Requirements:

Meat, Seafood, Dairy & Cheese (including meat importers) Fresh Fruit & Vegetables; Fresh Herbs & Spices Processed Foods & Commodities
License: 2015 (June) 2015 (June) 2016 (June)
PCP: 2015 (June) 2016 (June) 2017 (June)
Notes: Minimal change for industry as they are already federally controlled commodities   Most change for industry

Other Significant Changes:

Additional data elements to what you are accustomed to supply, will be required prior to import or export, such as:

  • Name & address of person who manufactured or processed the food
  • A more detailed description of the food & packaging - including common name, brand name and lot number

Exemptions from Licensing:

  • Beverages containing greater than 0.5% alcohol
  • Food additives
  • Green coffee beans
  • Green cocoa beans
  • Scientific analysis, evaluation
  • Trade shows
  • Market analysis
  • Not intended for human consumption (i.e. pet food).  Use must be indicated on label (not for human consumption)
  • Food transhipments in bond
  • Personal use food items
  • Intended for passenger or crew’s use on conveyance

More information and links:

English: http://www.inspection.gc.ca/about-the-cfia/accountability/consultations/federal-food-inspection/overview-of-proposed-regulations/eng/1400451508255/1400451811916

French: http://www.inspection.gc.ca/au-sujet-de-l-acia/responsabilisation/consultations/inspection-federale-des-aliments/apercu-du-projet-de-reglement/fra/1400451508255/1400451811916#a2

Cole will continue to monitor the subject for additional information and will post updates as soon as they are available.

 

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What will Customs Audit in 2015?

The Canada Border Services Agency (CBSA) has published a list of commodities and programs on which they will focus their 2015 audits (compliance verifications).

There are 5 new items on the January 2015 list as follows:

  • Parts for Power Trains
  • Generating Sets
  • Geophysical & Oceanographic Instruments
  • Cereals
  • Articles of Apparel and Clothing Accessories

CBSA’s verification priorities are carried over from previous years, so the full list actually contains 35 commodities covering the following 3 program areas:

  • Tariff Classification (28/35 items on list)
  • Valuation (4/35)
  • Origin (3/35)

For a complete list of CBSA’s verification (audit) priorities, see the following links:

English: http://www.cbsa-asfc.gc.ca/import/verification/menu-eng.html
French: http://www.cbsa-asfc.gc.ca/import/verification/menu-fra.html

Cole International works diligently every day to ensure that your company is Customs compliant, but CBSA may still chose to audit your company.  Be assured that Cole’s Audit Response Unit is ready and able to assist you through a CBSA audit in the event that it happens.

If you import any of the 35 commodities on CBSA’s list, and you want to discuss the matter further, please contact your Cole Technical Services Representative (TSR) at the number you have on file.

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USA Prohibits Transactions & Persons Re: Crimea Region of Ukraine….

Effective December 19, 2014, pursuant to the Executive Order: Blocking Property of Certain Persons and Prohibiting Certain Transactions with Respect to the Crimea Region of Ukraine, the following are prohibited:

• The importation into the United States, directly or indirectly, of any goods, services, or technology from the Crimea region of Ukraine;

• The exportation, re-exportation, sale, or supply, directly or indirectly, from the United States, or by a United States person, wherever located, of any goods, services, or technology to the Crimea region of Ukraine; and

• Any approval, financing, facilitation, or guarantee by a United States person, wherever located, of a transaction by a foreign person where the transaction by that foreign person would be prohibited by this section if performed by a United States person or within the United States.

All property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person (including any foreign branch) of certain persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in.

For a current list of specially designated nationals (SDNs), blocked persons, and blocked entities, please see the OFAC website at the link below. Please continue to check this website for updates to this list. Please call OFAC Compliance at 202-622-2490 with any questions not answered on the website.

http://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20141219.aspx

Click the link below to read the Executive Order in its entirety:

http://www.treasury.gov/resource-center/sanctions/Programs/Pages/ukraine.aspx