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U.S. CBP Center of Excellence and Expertise

The Issue

The United States Customs and Border Protection (CBP) recently announced the institution of “Centers of Excellence and Expertise” (CEE). The CEE concept is aimed at:

  • Increasing industry-based knowledge within CBP
  • Facilitating legitimate trade through effective risk management
  • Enhancing enforcement and address industry risk

What is a CEE?

In layman’s terms, they are centralized CBP offices that will deal with all post-release issues on a specific commodity or industry. For example:

  1. Electronics
  2. Petroleum, Natural Gas & Minerals
  3. Pharmaceuticals, Health & Chemicals
  4. Agricultural & Prepared Products
  5. Automotive & Aerospace
  6. Base Metals
  7. Consumer Products and Mass Merchandising
  8. Industrial & Manufacturing Materials
  9. Machinery


The Electronics CEE has been operational for approximately 4 months now, and the Petroleum, Natural Gas & Chemicals CEE will be operational as of June 29/15. The balance of the CEE’s listed above will be implemented over time and are currently in the volunteer testing phase.

What does this mean to Cole the broker and you the client?

With respect to the importation and release of goods, nothing will change for Cole or our clients. The border locations will continue to make all release and examination decisions.

The post-release functions of CBP will not change, but the location at which they are done will. All requests for information will now come from a CEE holding responsibility for the commodity at hand.

This new structure is meant to streamline legitimate trade, so it will be a beneficial tool when fully implemented and functional. In the beginning stages of implementation, as CBP navigates the new roles and responsibilities of their CEE’s, there is the potential to see ‘a few’ more requests for information than what we typically see now. This should diminish over time as the CEE’s become familiar with the commodities, clients and industry issues in their area of responsibilities.

We will continue to keep you updated on the issue and as more CEE’s become operational.

Additional Information & Links:

http://www.cbp.gov/trade/centers-excellence-and-expertise-information

Cole International USA Inc. Contact: 360-332-1124

100% Surtax on Certain USA Goods – Update

Earlier this month, Cole International reported that Canada was set to impose a 100% surtax on a wide list of goods imported from the USA.  This situation began due to the USA’s revised country-of-origin labelling (COOL) rules for importations of meat from Canada and Mexico. To see the full story and a list of goods to which the surtax would apply, click here: http://www.coleintl.com/news/227-canada-set-to-impose-100-surtax-on-a-wide-list-of-goods-imported-from-usa.php

New Development:

While the implementation of the surtax is still a possibility in the coming months, the USA is currently taking steps to prevent it from becoming a reality.  USA Lawmakers voted to repeal the disputed meat-labelling law that has prompted threats of the 100% Surtax from Canada on a wide range of U.S. products.  Please see the following story in the Coast Reporter for more details: http://www.coastreporter.net/facing-tariff-threat-from-canada-u-s-takes-step-toward-repeal-of-disputed-law-1.1964877

Cole will continue to monitor the situation and will keep you updated as new information is released on this issue.

Provide consent today to receive more updates like this from our Cole Technical Advisor. http://marketing.cole.ca/Electronic_Communications_Consent

Canada Set to Impose 100% Surtax on Goods Imported From USA

The Issue:

On May 18, 2015, the World Trade Organization's Appellate Body upheld the findings of an October 14/14 compliance panel ruling that the U.S. revised country-of-origin labeling (COOL) rules for importations of meat from Canada and Mexico was inconsistent with Article 2.1 of the Agreement on Technical Barriers to Trade (TBT), which requires WTO members' regulations to treat imports in a manner that is "no less favorable than that accorded to like products of national origin and to like products originating in any other country." 

This decision cannot be further appealed and must now be adopted by the WTO Dispute Settlement Body (“DSB”) which will likely occur at the end of June, 2015. After this date, Canada can request authorization from a WTO arbitrator to determine the level of damage caused by the COOL rules regarding Canadian exports of meat. After the arbitrator issues his decision, Canada will be free to request formal authorization from the DSB to retaliate. If authorization is granted, Canada has indicated that it will impose a 100% surtax on certain U.S. imports to Canada.

(partial excerpt from 19 May 2015 article by Brenda Swick, Partner, McCarthy Tétrault.)

List of goods on which the 100% Surtax will be imposed:

  • Live bovine animals 
  • Live swine 
  • Meat of bovine animals, fresh or chilled 
  • Meat of bovine animals, frozen 
  • Meat of swine, fresh, chilled, or frozen 
  • Cuts of offal, fresh or chilled of spent fowl 
  • Cheese, not including the following: fresh (unripened or uncured) cheese, whey cheese or curd; grated or powdered; processed cheese; blue-veined cheese or cheese containing veins produced by Penicillium roqueforti 
  • Apples, fresh 
  • Cherries, other than sour cherries (Prunus cerasus) 
  • Cherries, provisionally preserved (unsuitable in that state for immediate consumption) 
  • Semi-milled or wholly milled rice, whether or not polished or glazed 
  • Prepared or preserved — prepared meals of spent fowl; prepared meals of specially defined mixtures 
  • Prepared or preserved — specially defined mixtures, other than in cans or glass jars; spent fowl other than in cans or glass jars 
  • Prepared or preserved swine cuts, other than ham and cuts thereof, other than shoulder and cuts thereof 
  • Glucose and glucose syrup, containing in the dry state at least 20% but less than 50% by weight of fructose, excluding invert sugar 
  • Other fructose and fructose syrup, containing in the dry state more than 50% by weight of fructose, excluding invert sugar 
  • Chocolate and other food preparations containing cocoa — preparations in blocks, slabs or bars weighing more than 2 kg or in liquid, paste, powder, granular or other bulk form in containers or immediate packings, of a content exceeding 2 kg 
  • Chocolate and other food preparations containing cocoa — chocolate ice cream mix or ice milk mix; chocolates; chocolate coated nuts and other confectionery 
  • Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared, such as spaghetti, macaroni, noodles, lasagna, gnocchi, ravioli, cannelloni; couscous, whether or not prepared 
  • Prepared foods obtained by the swelling or roasting of cereals or cereal products (for example, corn flakes); cereals (other than maize [corn]) in grain form or in the form of flakes or other worked grains (except flour, groats and meal), pre-cooked or otherwise prepared, not elsewhere specified or included 
  • Bread, pastry, cakes, biscuits and other bakers’ wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products 
  • Potatoes, prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading 20.06 
  • Orange juice, frozen 
  • Tomato ketchup and other tomato sauces 
  • Wine of fresh grapes, including fortified wines; grape must other than that of heading 20.09 
  • Ethyl alcohol and other spirits, denatured, of any strength 
  • Sugars, chemically pure, other than sucrose, lactose, maltose, glucose and fructose; sugar ethers, sugar acetals and sugar esters, and their salts, other than products of heading 29.37, 29.38 or 29.39 
  • Peptones and their derivatives; other protein substances and their derivatives, not elsewhere specified or included; hide powder, whether or not chromed 
  • Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal 
  • Other tubes, pipes and hollow profiles, welded, of circular cross-section, of stainless steel 
  • Parts of stoves, ranges, grates, cookers barbecues, braziers, gas-rings, plate warmers and similar non-electric domestic appliances, and parts thereof, of iron or steel 
  • Grinding balls 
  • Swivel seats 
  • Wooden office furniture 
  • Mattresses


What if an agreement is reached?

There is still a chance that the Surtax can be avoided, or may not be long lasting.  Canada has indicated that it will repeal the surtaxes in the event of a negotiated settlement if the U.S. brings its COOL measures into compliance with its WTO obligations. 

What do you need to do?

If you import one of the above commodities, please be prepared for the potential implementation of the Surtax. 

How can Cole help?

Cole will continue to monitor the situation, and will keep you updated as new information becomes available. If you have questions, please contact your Cole Customer Services Representative or Technical Services Representative at the number you have on file. 

 

Provide consent today to receive more updates like this from our Cole Technical Advisor. http://marketing.cole.ca/Electronic_Communications_Consent 

 

eManifest Mandatory May 6, 2015

eManifest is Mandatory as of May 6, 2015

The final step in the Government of Canada’s regulatory process making eManifest mandatory for highway carriers, rail carriers and freight forwarders legally binding is now complete.  On May 6, 2015, the necessary regulatory amendments were published in the Canada Gazette, Part II.

  • Background: eManifest is part of the Canada Border Services Agency’s Advance Commercial Information Program (ACI).  ACI is a multi-phase program that, when fully implemented will require carriers, freight forwarders and importers in all modes of transport to electronically transmit both cargo and conveyance information to CBSA within specified timeframes.  It will enable CBSA to more effectively analyze risk and identify threats prior to the arrival of cargo and conveyances in Canada.  Low risk, legitimate trade will therefore become more efficient.

As eManifest is a significant change for businesses, the CBSA is providing a period of transition to assist carriers in becoming fully compliant.  Timelines for the same can be found in the following links:

Highway Carriers:  http://www.cbsa-asfc.gc.ca/prog/manif/reqhc-extr-eng.html

Rail Carriers: http://www.cbsa-asfc.gc.ca/prog/manif/reqrailc-extfer-eng.html

Freight Forwarders: http://www.cbsa-asfc.gc.ca/prog/manif/reqfrfwdrs-extransitaires-eng.html

Importers: It is not yet mandatory for importers to transmit advance trade data electronically as CBSA does not have the electronic systems in place.  They are expected to be available in the fall of 2016.  More detailed information about registration, testing and timelines will be communicated in a timely manner prior to becoming mandatory.   Cole will keep you informed as information becomes available.

More Information:

http://www.cbsa-asfc.gc.ca/prog/manif/faq-eng.html

http://www.cbsa-asfc.gc.ca/prog/manif/contact-eng.html#tabs1_5

Provide consent today to receive more updates like this from our Cole Technical Advisor. http://marketing.cole.ca/Electronic_Communications_Consent

Update for Food Importers, Exporters & Producers

The Canadian Food Inspection Agency (CFIA) has advised that their anticipated implementation date (June 2015) for changes resulting from passage of the Safe Foods For Canadians Act has been delayed.  More time is needed to review the regulations with respect to businesses that are affected by the changes. Revised, proposed regulations are expected in the Canada Gazette in 2016 (exact dates are unknown).

Please see Cole’s original post on the subject here:

http://www.coleintl.com/news/update-for-food-importers-exporters-producers/

To learn more or provide feedback to the CFIA on this issue, please visit:

http://www.inspection.gc.ca/about-the-cfia/acts-and-regulations/regulatory-initiatives/sfca/food-safety-systems/eng/1426531180176/1426531265317

Cole continues to monitor the situation for the latest information and will update you as it becomes available.

Provide consent today to receive more updates like this from our Cole Technical Advisor. http://marketing.cole.ca/Electronic_Communications_Consent

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