Still have questions about ACI eManifest into Canada? Leave them in our comments section below or contact our Border Pro eManifest Team at 855.542.6644  or via email at emanifest@borderpro.ca.

In this video you will learn:

• What documents are required to ship to Canada
• Information required on a Canada Customs Invoice
• How to clear Customs in Canada
• How to avoid delays at Canada Customs
• Consequences of noncompliance with Canada Customs’ regulations

Do you have tips or questions on shipping to Canada? Drop us a comment or question below or email  Ask Your Broker.

TSU13-014 – Upcoming eManifest System Changes

On June 9, 2013, the Canada Border Services Agency (CBSA) will deploy electronic systems functionality that will enable freight forwarders to transmit advance house bill data on commercial goods destined for Canada.

Also included in this deployment package, the CBSA is introducing:

• new notices that will help to better inform clients of the level of completeness of their transmitted data. The new “Matched” and “Not Matched” notices will apply to house bill, close message, release, and highway and rail cargo data. Additional completeness notices will be introduced in future systems deployments.
• a Manifest Forward feature for house bill data. Through this functionality, clients will be able to share house bill data with their trade chain partners who are also registered with the CBSA to receive electronic notices. Future CBSA electronic systems will expand the Manifest Forward feature to other data and other trade chain partners.

Clients must register and test with the CBSA’s Technical Support Unit (TSU) to receive these notices.

Please find below the template for an e-mail that CBSA requires from the carrier to add new eManifest notices to the carrier’s EDI profile. The e-mail template must be sent by the carrier as the CBSA requires direct authorization from the carrier to process the request.

Note:

Carriers who engage a service provider using a generic profile will need to contact their service provider to ensure their request to receive the notices can be processed by the service provider. Once the CBSA adds the notices to the generic profile, all the clients using that generic profile will be able to request receipt of notices through their service provider. If clients would like to test the message, please contact the TSU.

Please also refer to Bulletin TSU13-003 regarding the changes to the ANSI 824 outbound messages that will also come into effect with the June 9, 2013, systems deployment.

Please contact the TSU at TSU.UST@cbsa-asfc.gc.ca  should you have any questions.

For more information on eManifest, please visit: http://www.cbsa-asfc.gc.ca/prog/manif/menu-eng.html.

If you have any questions about ACI eManifest, please contact our Border Pro eManifest Team at 855.542.6644  or via email at emanifest@borderpro.ca. We also welcome your questions in our comments section below.

Resources:

• Email Template to Add New eManifest Notices to Carrier Profile

With the shifting tides of how information is consumed these days, preferences are moving over from text and audio to video. More people are using video to find information and educate themselves on products and services in the marketplace. This has not only created a hearty appetite for video content but also made video the perfect medium for us to communicate with our audience.

With this in mind, our team at Pacific Customs Brokers has been hard at work creating videos on a variety of topics for a range of audiences. We are excited to announce the launch of our very own YouTube channel – Your Broker Knows…, which is now online and ready to view here:

Visit the YouTube Channel: Your Broker Knows …

What sort of videos should you expect on our channel?

This channel is intended to be a resource for the import and export trade community. Featuring advice from leading industry experts, we aim to guide you through the fast-paced world of international trade and bring you insight into key issues affecting Customs regulations, cross-border trade, shipping and logistics.

Our videos will include:

• Interviews with industry experts
• ‘How-to’ tutorials
• Tips on international import and export
• Answers to our audience’s most common trade questions
• Archives and/or previews of the webinars and seminars we host
• Recordings of our celebratory client events
• Introduction to new services

Reasons to subscribe:

We will be uploading videos regularly so be sure to subscribe to our YouTube channel to receive alerts and notifications of future video uploads, as well as:

1. Stay in the know about international trade news and global free trade agreements.
2. Learn something - This channel will be a great resource on Customs compliance, shipping, importing and exporting into Canada and the U.S., NAFTA and much more.
3. Get updates on the latest Customs regulations and cross-border issues.
4. Interact, share ideas, provide feedback and make connections. This will also help us gather feedback and stay on the right track.
5. Share what you learn – It is important for us all to exchange and share what we learn.
6. Learn more about our services – Receive updates on our service offerings.
7. Just because you like us – Show your support for our company.

As we continue to expand our video playlist, please do not hesitate to let us know of ways we can improve the channel and our video content. We value your feedback, so please comment on the YouTube channel and share the videos with business partners and friends. Do check back often, as we should have some exciting new videos planned for the rest of the year.

If a picture is worth a thousand words, then video must be worth a million. Happy viewing!

Have you visited our YouTube channel - Your Broker Knows… yet? What do you think of our new channel? Share your comments with us below or email  Ask Your Broker.

Presenting on behalf of CBP were:

• Ken Williams – Assistant Area Port Director, Trade
• Ron McMillan – Cargo / Trade Chief
• Charlie Cunningham – Agriculture Branch Chief

While the main topic of discussion was the Cargo Pre-Inspection Pilot Program that is tentatively scheduled to commence in early June, 2013, many other items were also touched upon.

Brief highlights of these topics are listed below:

1. Cargo Pre-Inspection Pilot

The Cargo Pre-Inspection Pilot is one of the initiatives undertaken as part of the Beyond the Border Action Plan. CBP will be working in conjunction with the Canada Border Services Agency (CBSA), the Royal Canadian Mounted Police (RCMP), Public Safety Canada and Transport Canada to conduct primary truck processing on the Canadian side of the border. Only Free And Secure Trade (FAST) certified carriers are eligible to participate in this program and while it is not mandatory, CBP is encouraging all FAST carriers to participate and also to begin filing ACE electronic manifests on empty trucks.

Phase I of this pilot is scheduled to begin at Pacific Highway in early June and will run for up to six months. Subsequent to that, Phase II will go into effect at the Peace Bridge crossing between Buffalo, NY and Fort Erie, ON.

Further details of the program are outlined on this Cargo Pre-Inspection Pilot Factsheet.

2. Traffic Flow and Booth Alignment

Chief McMillan gave details of the revised traffic flow and asked that we help to distribute the following explanation and diagram. Southbound Improvements at the Pacific Border Crossing for U.S bound commercial and FAST trucks.

3. Changes to Carrier Bond Application Process

Assistant Director Williams indicated that there have been some changes to the application process to obtain carrier bonds. Carriers looking to become bonded can contact the port for details.

4. Wood Packaging Materials

Agriculture Chief Cunningham spoke about a significant increase (225%) in instances of pests and / or noxious weeds found in wood packaging materials. The result of this will be increased vigilance and more inspections. Chief Cunningham encouraged carriers to inform shippers, warehouse people and drivers to be on the lookout for non-compliant or obviously infested wood packaging materials to help avoid delays at the port of entry. Canadian shippers were informed that the use of  kiln dried wood  for packaging is recommended.  Also, loading to allow easy access for CBP to perform wood inspection, can help reduce the need for off loading.

5. Driver Lunches

Chief Cunningham spoke about the instances of non-compliant food products found in drivers lunches. Drivers are reminded there is a $300 fine for not declaring personal food items. The percentage of non-compliance in passenger vehicles is approximately 7%, while in commercial vehicles it is approximately 20%. Chief Cunningham urged carriers to remind their drivers of the rules regarding the importation of foodstuffs, primarily fruits and vegetables, and also mentioned that they would endeavor to produce a list of non-compliant items that carriers could refer to.

6. Residual Materials

Assistant Director Williams spoke about the coming implementation of the requirement for manifesting and entry of residual material in instruments of international trade. To learn more read our recent blog on Manifesting and Entry of Residue Found in Instruments of International Traffic into the USA which also highlights a recent webinar held by CBP on this topic.

7. Sequestration

Assistant Director Williams stated that, while there was no official word on sequestration, there was some indication that its effect on CBP, and its staffing levels, may not be as dramatic as initially anticipated.

Pacific Customs Brokers would like to thank U.S. Customs and Border Protection for holding this meeting and taking the time to keep both carriers and customs brokers informed on pertinent issues. As more information becomes available, we’ll be sure to keep you informed.

Did you attend the Annual Carriers Meeting held by CBP on May 8, 2013? Share your thoughts in our comments section below.

This led to a great many questions and concerns from industry, and Customs and the trade community have worked hard over the past few years to come to an equitable and workable solution to the problems.

CBP is now set to implement an operational test of this rule, and a new version of the FAQ’s will be published by U.S. Customs as they prepare to launch the pilot.

U.S. Customs has provided a link to the webinar that was conducted for the trade community on April 16, 2013.  A link to that webinar can be found here:

Webinar: Manifesting and Entry of Residue Found in Instruments of International Traffic

At the time of the ruling, CBP determined that the trade community needed additional time to fully understand and comply with the ruling’s requirements, and thus the ruling has been in an “informed compliance” stage for the past 24 months. While there have been a few “false starts” in this mandate, and CBP still has not scheduled a set date for the pilot, CBP now states that full enforcement of this ruling is expected to begin during this fiscal year.

The first step in this process will be publication of a Federal Register notice, at which point the test will proceed in 30 days, with an informed compliance period of 60 days, and enforced compliance after that time.  U.S. Customs notes that once that test begins, all companies will be mandated to comply with the new requirements.  The following is a brief highlight of the requirements:

• All Instruments of International Traffic containing residual chemicals, cargo, goods, etc. that are destined to the United States must be manifested and entered in compliance with U. S. Customs laws;
• If qualified, shipments containing residual goods can be entered as American Goods Returned (AGR);
• No additional bonding will be required.  Most shipments will be released under Section 321, providing that the value of the residue is less than or equal to $200 in order to qualify;
• The manifest record is required to be retained by the carrier for a period of five years;
• Percentages vary depending on the mode of transportation – rail = 7% or less, truck & ocean = 3% or less, and air = 5% or less;
• The weight of residue will be required for all modes of transportation

We note that the webinar, linked above, is an excellent and the most current source of information regarding this issue.

We encourage you to use the short remaining time before enforcement to understand how these regulations will affect your firm, and to make the necessary adjustments within your organization to assure compliance before the enforcement date.

As always, Pacific Customs Brokers stands ready to assist you in this matter. If you have any questions about manifesting and entry of residue found in instruments of international traffic into the USA, please contact our Border Pro eManifest Team at 855.542.6644  or via email at emanifest@borderpro.ca. We also welcome your questions in our comments section below.

The World Customs Organization (WCO) has stated that the “global trading system is vulnerable to terrorist exploitation that would severely damage the entire global economy. As government organizations that control and administer the international movement of goods, Customs administrations are in a unique position to provide increased security to the global supply.” The recent attempt by terrorists to send explosives via commercial shipment from Yemen to the United States illustrates that terrorists will attempt to exploit the trade chain.

Both the Canada Border Services Agency (CBSA) and the United States Customs and Border Protection (CBP) play very active roles in the efforts to combat terrorism.  CBSA’s Partners in Protection (PIP), and CBP’s Customs – Trade Partnership Against Terrorism programs are voluntary government – business supply chain security programs that ask businesses to ensure the integrity of their security practices and communicate and verify the security practices of their business partners.

If you are interested in learning what this initiative is all about, but have been hearing how difficult it is to obtain certification, we invite you to attend our C-TPAT and PIP Seminar on Thursday, May 16, 9am to 2pm. This session will help clarify the expectations of each program. We will focus on familiarizing you with the processes necessary for your company to be an active member of these initiatives.

Both the C-TPAT and PIP programs are still  fairly young programs and continue to evolve.  The Customs agencies continue to work on developing  a number of current and future benefits for companies who are participants.  That being said, the challenges that come along with developing your procedures and policies will be quite unique to your company, as will the actual benefits of participation.

Some of the current tangible benefits that are realized by C-TPAT and/or PIP members include:

• Reduced number of cargo inspections
• Emphasis on self-policing as opposed to Customs verification
• Eligibility to apply to the FAST program

These benefits translate into some valuable practical considerations, including:

• Cost savings – a full Customs exam can cost upward of $500 – $1000 per container
• The more parties involved in a transaction who are C-TPAT partners, the lower the likelihood of cargo inspections.
• C-TPAT membership is considered a mitigating factor in the case of potential penalty matters
• Ongoing familiarity with the program decreases the necessary time spent and resources involved in assuring compliance.

As the program evolves, it is expected that the benefits will continue to outweigh the costs or perceived disadvantages to becoming a participant in the program.  While there are no commitments from Customs, the trade has requested that Customs consider a number of added benefits for the “next generation” of C-TPAT.

Some of the next generation benefits of C-TPAT could include:

• Basing cargo release on 10+2 data and permitting monthly entry of cargo aligned with the periodic monthly statement (in the case of U.S. imports)
• Expedited responses to ruling requests
• Enhanced penalty mitigation
• Prior disclosure benefits
• Further lowering of the number of inspections
• Tax incentives for supply chain security and safety enhancements
• Mutual recognition with other countries” approved security programs

If becoming a partner and trusted trader with CBSA and CBP interests you, we encourage you to consider attending the C-TPAT and PIP Seminar on Thursday, May 16, 9am to 2pm. Attendance at this seminar includes a 30 minute scheduled consultation with one of our speakers to discuss the possible benefits and drawbacks to your firm becoming a member. Register today!

Still have questions about the C-TPAT and PIP programs? Share them in our comments section or email us at Ask Your Broker.

]]> http://blog.pcb.ca/2013/05/would-it-interest-you-to-partner-with-customs/4557/feed 0 http://blog.pcb.ca/2013/05/thank-you-for-attending-the-carrier-appreciation/4538 http://blog.pcb.ca/2013/05/thank-you-for-attending-the-carrier-appreciation/4538#comments Wed, 01 May 2013 22:27:30 +0000 Yvette Fox http://blog.pcb.ca/?p=4538 Pacific Customs Brokers would like to extend our gratitude to all those who attended our 2nd Annual Carrier Appreciation & Cross Border Reception on April 24th at Eaglequest Coyote Creek Golf Course, Surrey, B.C.

View the Carrier Appreciation Reception photo gallery here>>

The event attracted well over 100 carriers, stakeholders and various industry partners from around British Columbia and Washington. It was an evening of networking, live music, great food, a grand prize draw and a presentation on the latest technology Pacific Customs Brokers has to offer cross border carriers.

We would also like to express our sincere appreciation to Canada Border Services Agency, U.S. Customs and Border Protection, Commercial Vehicle and Safety Enforcement, and Surrey Board Of Trade who were all on hand to field questions from attendees.

This year’s lucky winner of the iPhone 5 is Shirley Jones of Pacific Coast Express!

Thank you again for everyone’s participation and another fabulous event. We will see all of you next year for the 3rd Annual Carrier Appreciation & Cross Border Reception.

View the Carrier Appreciation Reception photo gallery here>>

Now that we are well into the informed compliance period, many carriers have been receiving “report cards” from CBSA. This compliance monitoring is designed to advise carriers if they are filing accurately and in a timely manner. It also provides carriers with steps that they can take to deal with non-compliance.

ACI eManifest compliance report card data:

The report card will detail the time frame for which the monitoring took place, the number of conveyance and cargo reports reviewed, as well as the number of data elements that were looked at. It will then go on to advise how many errors were found and state the overall percentage rate of errors. Lastly, it will address the punctuality of filing and assess an overall error rate for timeliness. All of this data will be contained in a “Summary of Findings”.

How the program works:

CBSA is contacting random carriers via email in order to provide them with a password that will allow them to view the encrypted report cards. If the carrier does not respond to the initial email within five days, CBSA may follow up with a phone call or fax. If the carrier still fails to respond, CBSA will send a No-Password Letter with the Report Card. If CBSA does not receive a password from the carrier, report cards cannot be viewed.

Benefits to highway carriers:

The feedback provided in these report cards can give carriers valuable information with respect to their ACI eManifest filing practices and, if used as intended, can assist carriers in becoming fully compliant prior to the deadline for mandatory participation when it is expected that AMPS penalties will be assessed for ACI emanifest related infractions.

Carriers that have still not registered for the ACI eManifest program are being strongly encouraged to get this process started ASAP as the fall, 2013 deadline is fast approaching.

If you have any questions about ACI eManifest, how to register or  how it will affect your business, please contact our Border Pro eManifest Team at 855.542.6644  or via email at emanifest@borderpro.ca. We also welcome your questions regarding ACI eManifest and its implementation in our comments section below.

Additional Reading:

• Use the ACI eManifest Implementation Delay to Your Advantage
• How Carriers Can Meet ACI eManifest Document Demands
• How ACI eManifest Affects Importers and Carriers

What is a Temporary Importation Under Bond (TIB)?

A Temporary Import Bond (TIB) is a special entry type that is used when products are imported  into the United States without the payment of duty or Merchandise Processing Fee (MPF), by posting a bond to ensure that the goods will be exported within a specified time. The TIB bond amount is usually twice the estimated duty, taxes, etc.

Types of shipments imported temporarily:

• Trade shows
• Conventions
• Training
• Assembly
• Processing
• Re-export after resale
• Repair or replacement of damaged goods

Temporary Bond Exportation Requirements:

Products imported under a TIB can remain in the United States without the payment of duty for up to a year. These goods must be properly exported out of the country prior to the expiration date of the bond to avoid a penalty. The one year period for export can be extended upon approval from U.S.  Customs. Some TIB provisions allow for the bond period to be extended for three years with the exception of the following TIB provisions:

1. Shipments covered under 9813.00.75 (autos and parts for show purposes), may not exceed six months and an extension will not be granted.
2. Shipments covered under 9813.00.50 (tools of trade), if seized by Customs for reasons other than by suit of private persons, have the requirement of exportation suspended during the period of seizure.

In order to avoid liquidated damages, the importer of record must present proof of export to U.S. Customs.  U.S. Customs accepts the following as proof of export.

1. Customs Form 3495 Application for Exportation of Articles Under Special Bond
2. Certified copy of the entry that the goods are being imported to (Canadian B3)
3. Certified copy of the bill of lading

Relief from liability may also be obtained when goods imported under a TIB are destroyed under Customs supervision.  The article must have no commercial value whatsoever if it is to be considered destroyed.

Goods Eligible for TIB Entry:

The only goods that qualify for TIB entry are those listed in subheadings 9813.00.05 through 9813.00.75 of the Harmonized Tariff Schedule (HTS) and can be found here.

Common Mistakes Entering TIB:

The most common mistakes made when entering goods under a Temporary Import Bond include:

• Failing to indicate on the shipping documentation or notifying your customs broker that the shipment you are sending is a temporary import.
• Failing to properly document and re-export or destroy the articles. When this happens, the bond or security deposit is forfeited and the importer bears the duty and tax expense.

Pacific Customs Brokers can file a TIB and obtain a bond on your behalf. We can also assist in the export and closure of your TIB with U.S. Customs. Contact us for more information or to get set up.

What has your experience been with temporary imports? Do you have questions about Temporary Import Bonds? Share them in our comments section or email us at Ask Your Broker.

Additional Reading:

•  Merchandise Processing Fee (MPF) Explained

The first step is to understand some of the reasons as to why your shipment has not been set up. It is possible that:

• The customs broker never received the paperwork – Did you confirm with the customs broker that they received your fax or email?

• The customs broker was not given ample processing time – Did you send your paperwork at the time you picked up the freight? Doing this gives the customs broker the maximum time to process the entry. The type of commodity imported and size of the entry also determines how much time is required to process it.

• There is pertinent release information missing – No invoice has been provided, country of manufacture is missing for all or some of the items, complete description of goods is not clear, licenses, permits or certificates are required and missing etc.

• The goods being imported can not be set up under the Pre-arrival Review System (PARS) — Some examples: Prime and ETA entries, goods requiring inspection, used self propelled vehicles.

In any of these cases the driver will be directed by the customs officer to see the customs broker for further assistance.

On arriving at the customs broker’s office you will need to present them with the following documents:

•  The referral slip (yellow) from CBSA — Form E67(08)
• Canada Customs Invoice or Commercial Invoices
• Bills of lading
• Any licenses, permits or certificates

The customs broker will need to resolve the issue and resubmit the entry to the CBSA for their release decision. These entries can be resolved either by electronic transmission or in the form of a paper package. “Failed PARS” shipments are either released at the border or forwarded in bond for release at a later date.

Good to Know:

To avoid a possible duplicate release of these shipments, the Cargo Control Number (CCN) submitted with the PARS request must be re-used on the cargo control document Form A8A(B), if the shipment is moving forward in bond. The CCN must be handwritten or typed on a blank cargo control document. This form is free and can be obtained from CBSA, your dispatch or the customs broker handling the clearance.

Carriers using their own pre-printed cargo control documents should cross out the existing bar-coded number and type or neatly hand write the original failed PARS number in the “Previous cargo control No.” field. In either instance, the notation “Failed PARS” must be marked in the description field of the cargo control document.

Note:

Handwritten/typed CCNs on A8A(B) forms will only be accepted when a PARS procedure fails. Carriers will be subject to a penalty under the Administrative Monetary Penalty System if they fail to comply with the bar-code requirements for all other reporting and release processes.

Failed PARS shipments should not happen regularly. If you find yourself in this situation, we recommend you consult your customs broker to identify and resolve the problem.

Pacific Customs Brokers’  Carrier Help Desk can also help advise you on this matter and can be reached at  855.542.6644 or carrierhelpdesk@pcb.ca.

Have questions about the Pre-arrival Review System (PARS)? Share them in our comments section below.

Additional Reading:

• Understanding the Pre-arrival Review System

A common misconception held by new businesses or ones that are bootstrapped for cash is that only big or established businesses doing a $5M+ in revenue could benefit from the cost savings that a customs broker can help coordinate. And that small businesses may not need to work with a customs broker. 

In our 50+ years of industry experience, we have seen lots of businesses start out small, develop contracts, self-apply tariff classification or determine what they see as a “value for Customs” and sales take off. What happens next is what started out as a small error made at the beginning with such things as tariff classification, can become a very large problem once the volume takes over and you are transacting larger volumes across the border with the same information used the “first time”.

If your business is just starting up, caution is advised when choosing not to use the services of a customs broker. Although you may choose to travel to the facility or port of arrival to prepare a formal declaration for Canada Customs yourself, it is highly recommended that you seek guidance and advice from a customs broker in the planning stages to help mitigate risks related to your cross-border business.

How a custom broker can help transact business on your behalf:

• Streamline the process of clearing customs
• Ensure your Customs documentation is prepared properly
• Determine tariff classification
• Determine the admissibility of your commodity into Canada
• Ensure correct duties and taxes are applied to the shipment when appropriate
• Determine if your commodity is regulated by any other government departments
• Determine whether your commodity is entitled to any exemptions
• Help execute vendor contracts

Other Benefits to Importers:

Even if you do not plan to use a customs broker to transact business on your behalf when goods ship, by getting involved in the planning stages, a customs broker may be able to:

• Provide advantageous advice on terms,
• Make recommendations on countries of origin to source from,
• Provide advice on tariff classification and entry types,
• Assist in the decision making and compliance process,
• Deliver the best solutions for your business,
• Make you more competitive in the marketplace and
• Help you gain a more positive relationship with both Canada Border Services Agency and U.S. Customs and Border Protection.

It is well worth the investment up front, to at least consult with a customs broker in the planning stages, so that you can have a clear understanding of your risks, proper tariff classifications and do not let a small issue in the beginning, turn into a large.

Pacific Customs Brokers works with all types of importers from a broad range of industries. Amongst our various services for importers we offer Canadian and U.S. trade compliance consulting and Customs audit consulting. At our core, we are problem solvers and work with a large percentage of small to medium sized companies. To learn more about how we can help you managing the risks of importing and improve efficiencies in your processes, speak with one of our trade compliance specialists today.

Additional Reading:

• 6 Factors to Consider When Choosing a Customs Broker
• Why Should You Work With a Customs Broker?
• 4 Reasons for Determining the Correct Harmonized Tariff Classification

The Office of the United States Trade Representative states that “the GSP program supports U.S. jobs. U.S. business imported $19.9 billion worth of products under the GSP program in 2012, including many inputs used in US manufacturing.”

GSP was part of the Trade Act of 1974 which sought to help industries in the United States become more competitive  and took effect on January 1, 1976. Since then over one hundred countries have been designated as beneficiaries and billions of dollars saved on import duties.

Benefits of GSP to Importers:

• GSP can significantly reduce your landed costs by eliminating duties and taxes.

For example, if you source an eligible product from a designated beneficiary and pay no duties or taxes, you now own an advantage over your competition that sources from say, China.

• You also benefit by having more than one market to choose from which gives you more flexibility when sourcing products.

Types of designations under GSP:

There are two types of designations under GSP containing 127 designated beneficiaries.

1. GSP Beneficiary Developing Countries (BDCs):

BDCs receive preferential duty treatment on 3511 tariff numbers.

2. Least Developed Beneficiary Developing Countries (LDBDCs):

Within that first level of designated beneficiaries are a group of 44 countries that have been designated as Least Developed Beneficiary Developing Countries (LDBDCs) which receive preferential duty treatment on an additional 1,464 tariff numbers.

In total GSP allows for duty free preferential treatment on 4,975 tariff numbers.

GSP by the Numbers:

• Year GSP first instituted: 1976
• Total U.S. imports under GSP (2012): $19.9 billion
• Import duties saved on GSP products (2011): $700 million
• Number of GSP beneficiary countries and territories: 127
• Number of GSP beneficiaries that are least developed countries (LDCs): 44
• Total number of 8?digit U.S. tariff lines eligible for duty-free entry under GSP: 4,975
  • of these, number eligible for all GSP beneficiaries: 3,511
  • number eligible for LDC beneficiaries only: 1,464

  GSP by the Numbers (a fact sheet on the program)

2012 Top GSP Beneficiary Developing Countries:

1. India ($4.5 billion)
2. Thailand ($3.7 billion)
3. Brazil ($2.3 billion)
4. Indonesia ($2.2 billion)
5. South Africa ($1.3 billion)
6. Philippines ($1.2 billion)
7. Turkey ($1.1 billion)
8. Angola ($632 million)
9. Russia ($544 million)
10. Argentina ($233 million) (suspended in March 2012)
11. Pakistan ($195million)
12. Sri Lanka ($158 million)
13. Tunisia ($149 million)
14. Bolivia ($128 million)
15. Georgia ($124 million)
16. Kazakhstan ($111 million)
17. Ecuador ($107 million)
18. Venezuela ($99 million)
19. Cote d`Ivoire ($96 million)
20. Congo (DROC) ($94 million)

Resources:

CBP offers a guide to GSP providing an overview of the program and how it works.

The guide offers a look into:

• GSP eligible products
• GSP eligible countries
• Which import scenarios qualify

The Simple Facts – GSP Guidebook

While navigating the waters of GSP can be tricky, with the right customs broker it can be smooth sailing and a worthy endeavor. In the same fashion as Free Trade Agreements, GSP opens up further markets to global commerce and increases the potential sources of products.

Should you need more information or have questions about the U.S. Generalized System of Preferences, please contact us. You may also leave us your thoughts or questions in our comments section below or email Ask Your Broker.

Related Blog Articles:

• Drop Shipping, Part 1- Maximize The Benefits of Global Trade
• Drop Shipping, Part 2 – Using Incoterms® to Your Benefit
• Drop Shipping, Part 3 – Leveraging Free Trade Agreements and Non-Resident Importing
• 4 Ways to Benefit from Free Trade Agreements

In these cases, the entire quantity of goods will be accounted for when the first shipment arrives, and the remainder will be processed as a paper release package for each load to follow. This means drivers carrying any parts or components for goods previously accounted for on one invoice will need to clear Customs against the original declaration previously provided to CBSA at the same port of entry as approved.

Step 1: Prepare the required carrier documentation.

Each driver should have:

1. a bill of lading and
2. a packing list indicating all goods on board

These documents should be noted with a specific reference number being used to identify the original entry. Common examples would be the serial number, unit number, VIN number, PO number, Shippers number or any other number that is unique to the complete commodity.

In addition, the driver should note which load number they are of the total number of trucks needed to complete the delivery. For example: load 3 of 12.

Step 2: Inform your customs broker.

Next step is to notify your customs broker of your intent to cross the border. Indicate the

• Port (this can only be a CBSA listed port on the CBSA approval form)
• Estimated time of arrival (ETA) and
• Phone number for the driver in the event the driver needs to be reached

If a cargo control number (CCN) has not been provided, please ensure that the driver is aware of the carriers’ “carrier code”, as a manifest will be required upon arrival. Charges to generate a cargo control number/barcode for the driver may apply if not previously provided.

Have components on board for more than one prime entry or have extra parts that are not for a prime entry?

In this case, the driver will need to generate for each list of items that will be specific to each prime entry:

• separate bill of lading (BOL),
• separate packing list and
• separate CCN

for each list of items that will be specific to each prime entry.

Extra parts shipped with an Entered to Arrive (ETA) load that are not a part of an original transaction will also require a separate BOL, packing list, Canada Customs or commercial invoice indicating all information required for Customs and a separate CCN.

Note:

Drivers generally will not be provided any “invoices” for their load because the master invoice for the complete transaction would have already been declared to CBSA. More than likely, the driver will have a packing list, BOL, indication of what unit they have parts for, load number and CCN number. If the drivers have parts for more than one unit, they need to provide a separate list.

Have questions about crossing the border with your multi-load shipment? What has your experience been? Share them in our comments section below.

Advantages of becoming a drop shipper:

Let’s now take a moment and discuss two compelling advantages in becoming a drop shipper.

1. Free Trade Agreements
2. Non-Resident Importer

1. Free Trade Agreements (FTA)

Free Trade Agreements or FTAs have proven to be one of the best ways to open the world market and increase trade. FTAs allow for preferential duty treatment to items that qualify from certain countries. The North American Free Trade Agreement (NAFTA) for example, consists of the United States, Canada and Mexico and makes up one of the largest trading blocs in the world.

The United States and Canada currently have over 20 Free Trade Agreements in place with various trading partners.

How can you benefit from Free Trade Agreements?

FTAs can significantly reduce your landed costs by eliminating duties and taxes. So, for example, if you source a product from a country with an FTA and pay no duties or taxes, you now own an advantage over your competition that sources from say, China. You also benefit by having more than one market to choose from which gives you more flexibility when sourcing products. In addition to the current FTAs in place, the United States and Canada also offer preferential duty treatment to lesser developed economies under the Generalized System of Preferences (U.S.) and the General Preferential Tariff Regime (Canada), adding hundreds of more sources for international trade. As previously stated, you are not limited to the company down the street.

2. Non-Resident Importer (NRI)

So now that you have sourced products and found clients to sell the goods to, how will you deal with Customs? The last thing you want is to lose a sale because your client has to deal with customs. The most effective method is to remove Customs from the equation, well at least in the eyes of your client.

How can you benefit from being a Non-Resident Importer?

By acting as the Importer of Record, you can meet all the Customs obligations and have the goods delivered to your client as if they came from right down the street. One of the benefits of NAFTA is that you can act as the importer even if you are not physically in the country you are importing to. Customs recognizes this as a Non-Resident Importer, or the NRI.

Let’s say that you reside in Canada and have sourced product from Singapore to be delivered to a client in the United States and you have purchased the goods under CIF (Cost, Insurance and Freight) Incoterms®. Since the seller is obligated to deliver the goods to the port of destination of your choice, you would simply coordinate with your customs broker to clear the goods on your behalf and since the U.S. has a free trade agreement with Singapore you also benefit from duty free treatment on the items.

Becoming a Non-Resident Importer and benefiting from free trade agreements is an efficient way to join the global marketplace and benefit from global commerce.

The Final Analysis on Drop Shipping

Remember, the world is your oyster. You just need to make sure you have the right customs broker in place.

Has your business benefited from Free Trade Agreements? Do you have questions about being a Non Resident Importer? We welcome your comments below.

Related Blog Articles:

• Drop Shipping, Part 1- Maximize The Benefits of Global Trade
• Drop Shipping, Part 2 – Using Incoterms® to Your Benefit
• 4 Ways to Benefit from Free Trade Agreements
• What Is A Non-Resident Importer (NRI)?
• NRI Program – Shipping to Canada Directly

If you spend enough time in the transportation business, you will see just about everything — including packaging that would not adequately protect cargo for a trip around the block, never mind a trip around the world.

The lack of value that some companies place on packaging, is actually quite astonishing. It is not uncommon to see equipment that is worth tens of thousands of dollars being shipped using twenty dollars worth of packaging materials. These shippers are really taking a chance. The first criteria that a carrier will consider when investigating the validity of a freight claim, is to whether the cargo was properly packaged. Insufficient packaging equals no freight claim!

The leading reason for the declination of a freight claim is poor packaging. Even if your claim is paid, do you really want to go through the hassle? Your client has to wait to get their product, you have to re-fill and re-ship the order – essentially, you are doing twice the work for one sale. This is never a good thing, but in today’s economic climate, it is definitely an unattractive prospect. It is much easier to take a little extra time and money when packaging your product, than to go through the pain of filing that claim.

What constitutes proper packaging?

This depends on what you are shipping. If you are sending a box of screws across town, you can probably throw them in a cardboard box, slap some tape on it, maybe some plastic or metal banding to help hold it together (if the weight is excessive) and you are good to go. If you are shipping an expensive piece of medical research equipment half way around the world and you want it to arrive intact, don’t cheap out on the packaging.

Packaging Recommendations:

While it is difficult to address how to package all types of products in one blog post, we strongly recommend:

1. Use ISPM 15 compliant pallets and lumber, and secure your cargo to the pallets using bolts, screws or strapping.
2. Shrink-wrap cartons on pallets tightly to avoid shifting in transit.
3. Stack pallets high enough to maximize shipping capacity but not so high that the cartons on the bottom will be compromised.
4. Use additional padding, vapour barrier, shock sensors or “tip and tell” indicators, depending upon the value and sensitivity of your product.

You know your product better than anyone and know what it can and cannot withstand. When it comes to packaging, it is far better to overdo it than to skimp.

One of the main things to remember is that your cargo is probably going to move around a lot more than you expect. Think about how much your sunglasses slide around on the dashboard of your car. Now think about your expensive product hurtling along a curvy and potholed highway, or being tossed around during gale force winds in the middle of the ocean, or just being handled repeatedly as it makes its way from your dock to your client. All of this takes a toll on the packaging and that packaging has to be solid enough to do its job — or you could find yourself out of one.

Have questions about packaging your shipment? What has your experience with packaging been? Share them in our comments section below.

The NAAHP has been developed to help prevent the introduction of aquatic diseases in the targeted species and prevent the spread of any such diseases. It was also developed to help with the requirement for Health Certification for exports from Canada. The program is administered by the Canadian Food Inspection Agency (CFIA).

Impact on Seafood Importers:

If you are an importer of seafood products to Canada, it is important that you read the regulations and understand the necessity of import permits and when they are required.

Required Information on Documentation:

As a result of these changes, it is absolutely imperative that the following information be provided on documentation for shipments destined for Canada.

• the taxonomic (scientific) name or the taxonomic serial number (TSN)

• the exact description of the product being imported including eviscerated or other for finfish, fresh, chilled or frozen excluding fillets

• the full name of the Exporter and Importer

• quantity including number of containers and weight

• country of origin

Examples of Proper Commodity Description:

The following are two examples of a proper commodity description for imports:

• Pacific Sockeye Salmon (oncorhynchus nerka) or (TSN 161979), fresh, eviscerated

• American Lobster (homarus americanus) or (TSN 97314), ready to eat, frozen

Note:

Failure to provide proper information on shipments destined for Canada, may result in your shipment being held up at the border pending receipt of required information.

At Pacific Customs Brokers, we understand the urgent nature of perishable products and pride ourselves on our reputation for servicing the seafood industry. We are Always Open 24/7 and look forward to hearing from you with any questions on this matter.

Additional Reading:

Aquatic Animal Imports – Are Your Permits in Place?

Have questions or comments about Aquatic Animal Imports to Canada? Leave them in our comments sections below or email Ask Your Broker.

Incoterms® – International Commercial Terms

International commerce is governed by a set of terms known as International Commerce Terms, or Incoterms®.

Established by the International Chamber of Commerce, the Incoterms® assign responsibilities to both the buyer and the seller throughout the international transaction thereby eliminating uncertainties and avoiding costly misunderstandings by clarifying the tasks, costs and risks involved in delivery of the goods from sellers to buyers.

Originally published in 1936, the latest set came out in September of 2010 and took effect on January 1, 2011.

Benefits of Incoterms®:

• Incoterms® help determine how prices and risks are designated between the importing buyer and the exporting seller with respect to shipping of products.
• It lets shippers take shipment transport cost and risk responsibility in hand when it benefits them most.
• They help improve supply chain performance by avoiding the confusion created by varied interpretations of the rules in different countries.
• The understanding and the proper use of applicable Terms of Sale may make the difference between future success and failure.
• Understanding Incoterms® and their implications to your business transactions is crucial, especially with regard to import or exports of goods.
• You determine your financial and commercial fate when you manage your Terms of Sale.

Responsibilities and Obligations of a Buyer:

To begin with, you will need to determine how involved you want to be in the process of getting the goods from source to destination and how much information you want the seller to see.

Below is a list of terms that provide the least obligation to terms that provide maximum obligation:

1. Delivered Duty Paid (DDP)

Delivered Duty Paid places the entire obligation on the seller to deliver the goods to the final destination. This can be useful if you want to avoid all obligation and are delivering goods to a third party warehouse from where you will fulfill your sales. This term implies that you have no logistics team in place and is not a good model if you intend on having the goods shipped directly to your client as you are essentially handing your supplier a sales lead on a golden platter.

2. Cost, Insurance and Freight (CIF)

This is one of the most commonly used terms. Basically, the seller is responsible to deliver the goods to a named destination port where you will then clear customs and arrange for delivery to your client. Under this term you will need to have a good logistics network in place consisting of a Customs Broker to clear the goods and a local freight forwarder to deliver the goods once they arrive. Since you arrange the details once the goods arrive, you keep the seller at an arm’s length from your client.

3. Free on Board (FOB)

Assuming more control and obligation, Free on Board or FOB is a classic maritime trade term where the seller is obligated to deliver the goods cleared for export to the named conveyance of your choosing. In this model you assume the obligation of arranging transport from the foreign port of lading all the way through to the final destination. Under this term you will need a logistics network consisting of an international freight forwarder to arrange the transport and a customs broker to clear the goods once they arrive.

4. Ex Works (EXW)

Maximum obligation comes with the terms of Ex Works, which places full responsibility on the buyer to arrange transport from the seller’s premises, clear the goods for export and then clear customs and deliver the goods to the final destination. This is usually used by multi-national companies with many locations and a sophisticated logistics network and not a very good choice for drop shipping.

As you can see there are many choices to consider when negotiating the terms of sale. More obligations also mean more control, so you need to decide how much effort you are willing to spend before you buy. The last equation to figure out is duties, taxes and clearing customs.

In our next blog post we will take a look at Leveraging Free Trade Agreements and Non-Resident Importing in Drop Shipping.

Have questions on Incoterms®? Leave us your comments or questions below or email Ask Your Broker.

Related Blog Articles:

• Drop Shipping, Part 1- Maximize The Benefits of Global Trade
• Drop Shipping, Part 3 – Leveraging Free Trade Agreements and Non-Resident Importing

CALLING ALL CROSS BORDER CARRIERS!

We Invite You To Our….

2nd Annual Carrier Appreciation & Cross Border Reception

On Wednesday, April 24, 2013, come and join us for a reception with complimentary food and beverages at the Eaglequest Coyote Creek Golf Course, in Surrey, British Columbia.

In an effort to thank cross border carriers for their continued support in the movement of goods internationally, Pacific Customs Brokers is pleased to host this event. Along with cross border carriers, we have invited representatives from Canada Border Services Agency and U.S. Customs and Border Protection to be on hand to field questions on the following topics:

• Sequestration & how it affects carriers
• How the ‘new’ U.S. food safety regulations will impact Canadian food haulers
• ACI eManifest & the 2013 fall implementation

REGISTER NOW

At this event, Pacific Customs Brokers will introduce and provide a preview of a carrier dashboard that will assist carriers with their PARS (shipments to Canada) and SCN (shipments to the USA) status.

Date, Time & Location:

Wednesday, April 24, 2013

6:00 p.m. to 8:00 p.m. (registration begins at 5:30 p.m.)

Eaglequest Coyote Creek Golf Course – Grandview Room

7778 152nd Street, Surrey, British Columbia

To Register:

Complete registration form (page 2) & return

**Only confirmed registrants may attend**

Registration Return Options:

Email: trucking@pcb.ca

Fax: 604.531.3120

Registration Deadline: 

Friday, April 19, 2013

Registrations Inquiries:

Phone 604.538.1566

Toll Free 888.538.1566

Email: trucking@pcb.ca

Contact: Yvette Fox

REGISTER NOW

By attending the event, you will have a chance to win an iPhone 5 and download our BorderPro App. Pacific Customs Brokers hopes to have another a great turnout. See you all there!

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