Archive for the ‘Exporting’ Category


 

USMCA Effective Date | Is The Deal Done?

USMCA Effective Date

In the USMCA Details blog you learned what is new in the revised North American Free Trade Agreement (NAFTA). This includes the changes to the auto industry, dairy, Chapter 19, intellectual properties and de minimis threshold. The next question on your mind is when will the United States Mexico Canada Agreement (USMCA) become live, in other words,  when is the USMCA effective date?

When Is The USMCA Effective Date?

The USMCA is not in law yet, and will not likely be until 2020. As of late October, 2018, NAFTA is still live. A few bureaucratic knots are still tied, and this blog will cover what needs to happen in each respective country until the USMCA is effective.

What Steps Do The Countries Have To Take Before USMCA Is Effective?

All three countries still have a number of steps to take before the USMCA comes into force.

  1. All three governments will take a look at the agreement and gather a better understanding of the NAFTA revisions.
  2. Each country will sign the USMCA agreement. The signing is projected to take place at the end of November. Conveniently prior to Mexico’s next President entering into office December 1st, 2018.
  3. Finally, each country must take their specific necessary steps to ratify and implement the USMCA.

How Will the U.S. Ratify And Implement USMCA?

In the U.S., the President notified Congress of the intent to sign a trade agreement with Mexico and potentially Canada, on August 31st. The notification set off the Trade Promotion Authority (TPA). The 90-day consultation period finishes at end of November where the USMCA could, in principle, be signed.

All three leaders could sign the agreement at the G20 Leaders Summit in Buenos Aires, which is scheduled for the end of November. The U.S. Midterm elections take place November 6th, 2018 and the new incoming Congress takes effect January 3rd, 2019. The U.S. Administration has 60 days from signing the agreement to submit a list of changes. The Final Agreement text is submitted to Congress at least 30 days prior to implementing it as Legislation.

Sometime in April, an Implementation Bill will be introduced in the House and the Senate where it is debated and considered before a final vote. Around the middle of July 2019, the Senate will vote on the USMCA Implementation Bill and then shortly after the President will sign the agreement into law.

How Will Canada Ratify And Implement USMCA?

For Canada, once the agreement is signed it will be tabled in the House of Commons for discussion. There is a full discussion but no vote to change the text of the agreement. The House of Commons has 21 days to consider the agreement before the Executive takes the necessary steps to ratify it. The Cabinet controls the ratification. The Governor – in Council (Cabinet) prepares an Order-in-Council authorizing the Minister of Foreign Affairs to sign an Instrument of Ratification or Accession.

After, an Implementing Bill is tabled in the House of Commons where the treaty is implemented into Canadian Law. Once the Bill is passed in the House of Commons it is sent to the Canadian Senate where it is debated. It is possible that the Senate may quash the Bill. If passed, the Bill is then provided to the Provinces and Territories, which may pass provincial legislation regarding the Bill. Regulations are then written to implement the Bill.

The date the agreement comes into force is part of the agreement itself, January 2020. The pressing timeline for Canada is to have all of the above completed before October 2019 when Canada has its next Federal Election.

How Will Mexico Ratify And Implement USMCA?

Mexico has a similar process to Canada. Most of the process is already complete and Mexico intends to ratify the agreement in December 2018 when the New President takes office.

Will The USMCA Come Into Effect?

The USMCA is far from being a reality and anything can happen in the U.S., Mexico and Canada to throw this agreement off the tracks. You will know if the USMCA is a reality by July 2019.

If the agreement fails, the original NAFTA would remain in effect until the time NAFTA 3.0 is renegotiated.

If you have questions about NAFTA or USMCA feel free to contact our Trade Advisory Specialists for NAFTA or USMCA details, and how they will affect you.

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Single Window Initiative Requires Additional Data For Your IID

Single Window Initiative

{Updated 11/27/2018}

You have read What Is The Single Window Initiative (SWI) and learned how additional data will be required on Integrated Import Declarations (IID) for Customs release on all commodities regulated by Participating Government Agencies.

You will now need to include information on your customs documents to complete the IID, that may have been previously reported
after importation, or in paper format. We recommend you begin to include this information now, as SWI IID is available for use. This will become mandatory for certain PGA’s, by April 2019.

This means you will need to provide more information to your Customs Brokers than you have in the past for all commodities regulated by Participating Government Agencies (PGA) such as Health Canada, and Environment and Climate Change Canada.

Is your commodity subject to Participating Government Agencies?

You can find out from our helpful What Does My Commodity Need? infographic.

What Regulated Commodities Will Be Affected By Single Window Initiative?

If your commodity is regulated by a Participating Government Agency you will be impacted by a Integrated Import Declarations. However, for some commodities the details have already been required for many years.

For example, the Canadian Food Inspection Agency (CFIA) requires all importers with commodities regulated by the CFIA to provide shipment details prior to entry releases. As a result, for goods regulated by the CFIA, you may not have to provide any additional data to your Customs Broker in order to clear these entries.

Cases where they would need information that they did not before IID’s include consignee contact information as well as requiring copies of documents such as import declarations. In cases where the consignee is different than the importers or manufacturers, you will need to include the consignee contact information in box 12 of your CCI.

All Participating Government Agencies, including the Canadian Food Inspection Agency, will prompt your Customs Broker to ensure the documentation you provide includes all of the data required for the IID.

The Canada Border Services Agency (CBSA) has provided a guideline indicating what data is required for each Participating Government Agency which you can check out in the links below. Please note that the information in these links is subject to change and is correct at the time of publishing.

Where Do I Report The Additional Data Elements On My Canada Customs Invoice?

If the products you import into Canada are regulated by any of these Participating Government Agencies, you will be required to add all of the data elements listed in the links above to your commercial or Canada Customs Invoice. Below are a few examples you can follow along to see how you can report the additional data elements.

Example 1: Consumer Product Safety, Regulated by Health Canada

Below is a summary of the additional data elements required for consumer Products regulated by Health Canada. Please note that although many of these elements are noted as optional, and only two as mandatory, you are recommended to include all elements in preparation of when/if the optional elements become mandatory, as well as to help Health Canada make a release decision.

  • Importer’s Contact Information: This includes a contact name at the Importer of Record company, telephone number and email address. In most cases, your Customs Broker will have this information as it will be their contact for your company on file. Therefore the information will be included on the IID and there would be no need for you to provide this on the CCI.
  • Manufacturer Contact Information: The manufacturer’s name, address, contact name, email and telephone will be required in box 12 of the CCI. If this is the same as the vendor, you can add it to box 1 as shown in the example.
  • License, Permit, Certificate or Other (LPCO) Information: If your consumer goods require a license, permit, certificate or other type of document such as a safety standard certification or product label, in order to enter the country, you need to make this available to your Customs Broker. Your Customs Broker will attach the LPCO as an image file in the IID. If it is not a document, but rather a number, please place it in box 12 on the CCI along with an indication of what number it is.
  • Item Specific Information: This information provides the individual details of the imported items which are to be included in box 12 of the CCI which includes:
    • Global Trade Identification Number (GTIN): This 14 digit number is used to identify products and services through a barcode. This is usually the UPC number.
    • Brand Name
    • Product Name
    • Manufacture Date
    • Batch/Lot Number
    • Unit Size and Unit of Measure
    • Intended End Use: Identify how the items will be used from one of the following options: Sale or distribution, education, resale, charitable, repair, immediate re-exportation.
    • Commodity Type: A Product Category must be listed. The category listed is dependant on the intended end use. Use the table below to identify the wording that should be listed in box 12.

Intended use

Product Category

For Sale of Distribution

Consumer product for infants (0-18 months)

Consumer product for infants (19 – 36 months)

Consumer product for infants (3-6 years)

Consumer product for infants (6-8 years)

Consumer product for infants (8-12 years)

Consumer product for infants (13+ years)

Consumer product for infants (all ages)

Consumer chemical

Cosmetic

Educational, resale, charitable, repair or immediate re-exportation

Consumer product (for all ages)


Using the information provided above for consumer products, and applying the example of stuffed toy animals, the Customs Invoice will require the additional data highlighted in the sample below.

Single Window Initiative - Consumer Goods

 

Example 2: Natural Health Products, Regulated by Health Canada

Below is a summary of the additional data elements required for natural health products regulated by Health Canada.

  • Importer’s Contact Information: This includes a contact name from the Importer of Record company, telephone number and email address. In most cases, your Customs Broker will have this information as it will be their contact for your company on file. Therefore your broker will include your information on the IID and there would be no need for you to provide this on the CCI.
  • Informational Contact: This is someone who has knowledge of the items being imported in the case that Health Canada would like further information about the product. Name, telephone number and emails address is required. If this is the same as the vendor or consignee, then you can place this information in those boxes. However, if it is different, place this information in Box 12.
  • License, Permit, Certificate or Other (LPCO) Information: If your consumer goods require a license, permit, certificate or other type of document in order to enter the country, you need to make this available to your Customs Broker. They will attach it as a image file in the IID. If it is not a document, but rather a number, please place it in box 12 on the CCI along with an indication of what number it is. See the table below for more information.
  • Item Specific Information: This provides details of the imported items included in Box 12 of the CCI;
    • Global Trade Identification Number (GTIN): A 14 digit number used to identify products and services through a barcode. This is usually the UPC number.
    • Brand Name: If there is no brand name available, a product name, active ingredient or chemical name of the commodity must be provided by the manufacturer.
    • Product Name
    • Manufacture Date
    • Batch/Lot Number
    • Intended End Use: Identify how the items will be used from one of the following options: Human therapeutic use, human clinical trial, special access, research and development, other.
    • Commodity Type: A Product Category must be listed. The category listed is dependant on the intended end use. Use the table below to identify the wording that should be listed.

Intended End Use

Documents Required (LPCO)

Human Therapeutic Use

  1. Site License – 5022
  2. Natural Product Authorization 023 or Homeopathic Medicine Drug Identification 5024

Human Clinical Trial

NHP Notice of Authorization (NOA) 5023

Special Access

Letter of Authorization (LOA) 5045

Research and Development

No Documents Required

Other

No Documents Required


Using the information provided above for Natural Health Products, and applying the example of green tea extract, the Customs Invoice will require the additional data highlighted in the sample below.

Single Window Initiative - Natural Health Products

Example 3: Vehicles and Engines, Regulated by Environment and Climate Change Canada and Transport Canada

Below is a summary of the additional data elements required for on-road vehicles, engines and equipment regulated by Environment and Climate Change Canada (ECCC) and Transport Canada (TC). Please note there are two Participating Agencies involved in the importation of vehicles and engines.

**To understanding the info required by each PGA the data elements required from ECCC are in blue and Transport Canada are in red. All text appearing in black indicates that both of these agencies require this information.**

  • Importer’s Contact Information: This includes a contact name at Importer of Record company, telephone number and email address. In most cases, your Customs Broker will have this information as it will be their contact for your company on file. Therefore they will include that information on the IID and there would be no need for you to provide this on the CCI.
  • Informational Contact: This is someone who has knowledge of the items being imported in the case that ECCC would like further information about the vehicle or engine. Name, telephone number and emails address is required. If this is the same as the vendor or consignee, then you can place this information in those boxes. However if it is different, place this information in Box 12.

Exceptional Processing: The Transport Canada status of the of the vehicle/importer will establish all of the additional data elements required and must be provided or identified on the invoice using one of the following options:

  • Appendix F Pre-Cleared Importer (indicated on the invoice)
  • Appendix G Pre-Cleared Importer (indicated on the invoice)
  • Transport Canada Approved case-by-case approval for New, Canadian-specification vehicle purchased from foreign manufacturer with CMVSS approval letter
  • Transport Canada Approved case-by-case approval letter to accompany the documents for
    • New – Canadian-specification vehicles purchased from foreign manufacturer
    • New – Vehicles manufactured to the Federal Motor Vehicle Standards and purchased from foreign manufacturer
  •  Federal Motor Vehicle Safety Standards manufactured vehicle requiring inspection by the Registrar of Imported Vehicles (Indicated on the invoice)
  • Vehicles greater than 15 years old, except buses
  • Canadian-specification vehicles returning to the original owner
  • Vehicles Imported for parts
  • Non Regulated Vehicles: please visit Transport Canada’s site on no-regulated vehicles for more information

 

  • Make of Vehicle
  • Make of Engine
  • Model of Vehicle
  • Model of Engine
  • Model Year of Vehicle
  • Model Year of Engine
  • Engine Manufacturer Name
  • Vehicle Identification Number (VIN): 17 digit number
  • Engine Identification Number
  • Name of Engine Family
  • Chassis Info: If the chassis is manufactured by someone other than the final stage assembler, the following details are required:
    • Manufacturer name and address
    • Make
    • Model
    • Year
  • Vehicle Production: Date, Month & Year
  • ECCC Vehicle Class:  The type of vehicle class must be identified using the options listed in the table below.
  • TC Vehicle Class: The type of vehicle class must be identified using the naming convention listed in the table below.

ECCC Vehicle Class

TC Vehicle Class

Light-Duty Vehicles

Light-Duty Vehicles

Light-Duty Trucks

Light-Duty Trucks

Medium-Duty Passenger Vehicles

Medium-Duty Passenger Vehicles

On-Road Motorcycles

On-Road Motorcycles

Heavy-Duty Class 2B Vehicles with Installed Engine

Heavy-Duty Class 2B Vehicles w/inst

Heavy-Duty Class 3B Vehicles with Installed Engine

Heavy-Duty Class 3B Vehicles w/ins

Heavy-Duty Vocational Vehicles with Installed Engine

Heavy-Duty Vocational Vehicles w/in

Heavy-Duty Tractors with Installed Engine

Heavy-Duty Tractors w/installed eng

Incomplete Vehicles

Incomplete Vehicles

 

Vessels with installed marine engine

 

Vessels without marine engines

 

Snowmobiles

 

All-terrain vehicles

 

Utility vehicles

 

Off-road motorcycles

 

Incomplete Vehicles


  • Engine Class: The type of engine class must be identified as either On Road Heavy-Duty Engine – Incomplete or On Road Heavy-Duty Engine – Loose
  • Vehicle Manufacturer: Name and address
  • Criteria Conformance: Advise that the compliance label is attached or provide a letter from the manufacturer that it is in compliance.
  • Final Stage Assembler: If different than chassis manufacturer or vehicle manufacturer: Name and address
  • TC Affirmation Statement of Compliance: This statement is made by the importer and confirms that the vehicle meets all import requirements of Transport Canada.

Please contact your Customs Broker for the specific information that needs to be listed in this statement.

  • ECCC Affirmation of Statement Compliance: This statement is made by the importer and confirms that the vehicle meets all import requirements of Environment and Climate Change Canada (additional date and form will be required by Transport Canada).

Please contact your Customs Broker for the specific information that needs to be listed in this statement.

  • Country of registration (If previously registered)
  • Mileage/Odometer Reading (if used)
  • Title Status (if used)
  • Vehicle Status (if for parts)
  • Vehicle Condition: Normal Damage or Severe Damage (Not Roadworthy)

Using the information provided above for Natural Health Products, and applying the example of a Ford F150 Truck, the Customs Invoice will require the the additional data highlighted in this example.

Single Window Initiative - Vehicles

These examples highlight some of the data elements that were not necessarily included on your invoice prior to the Single Window Initiative, but will be mandatory starting April 2019.

You will need to provide all of the required data elements for your Customs Broker to be able to process your shipment release request. Additional charges may be applied to your Customs brokerage services if this information is not provided on the documentation.

When Should I Start Including The Required Data On My IID?

You should begin incorporating this information into your invoices now, then your shipments are not delayed at the border once IIDs become mandatory.

Need help understanding what Participating Government Agency regulates your commodity? You can contact us and speak with an expert Trade Advisor today.

How will you be affected by the Single Window Initiative? Tell us in the comments below.

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U.S. Customs To Pilot Test Blockchain Viability

blockchain

In September 2018, U.S. Customs and Border Protection (CBP) will start pilot testing the viability of blockchain technology in international trade. One of the first tests will be to see if they can successfully receive Certifications of Origin to identify if a product can qualify for preferential treatment under the North American Free Trade Agreement (NAFTA).

What is Blockchain?

Blockchain allows for digital information to be shared but not copied. It was originally created for financial transactions however, tech communities are starting to get more creative on what it can be used for. This includes smart contracts, transparent voting for elections, file storage, and in the world of trade, supply chain auditing.

Blockchain acts as a large database spread over a network of many, many computers. By not storing the data in any one location decentralizes the data. By decentralizing the data, it makes it difficult for a “hacker” to corrupt, thus making it a safe way for many people to access the data simultaneously.

Another interesting fact about blockchain is it can be setup to share with the entire public, or only shared with a few selected individuals. This allows for it to be used on massive scales, such as an election, or small scales, such as a one-on-one contract between you and a supplier.

History is another important factor. Blockchain has the ability to collect and maintain all transactions and previous data. In the trade industry this could be vital since records are required to be kept by Customs for multiple years in case of an audit. With a clear history that is accessible at any time, it can make it easier on Customs and the individual or business being audited.

What is Your Commodities Origin?

The goal is to certify the backstories of commodities are genuine. Is your sweater really made in Canada? Is every part from your laptop obtained or produced entirely in Canada, the U.S. or Mexico? Probably not, however with the assistance of blockchain technology and supply chain auditing, the answer could be quick and easy for CBP to discover.

Why This Potentially Helps U.S. Customs?

The reason CBP is excited for the viability of blockchain technology is because it can permanently verify transaction records in a fast and secure way. Being able to work fast and safe is any businesses dream, and CBP wants to start testing the technology in the early stages to make sure they are ready to handle the demand for blockchain technology once more companies adopt the relatively new idea.

How Supply Chain Auditing Can Help You?

It is easy to drown in the science behind blockchain technology, but what matters most to you is blockchain can allow you to do business easier and safer than before. The introduction of Electronic Data Interchange (EDI) has eliminated the need for faxing, mailing or hand delivering paper documents. By having a safe way to transport the same “paper documents” digitally in only a way where you, the sender, and CBP, the receiver, can access it, than business will become better for you.

If You Need An Expert

With pilot testing to begin in September it will be interesting to see what the findings are from CBP. This might be the first step U.S. Customs takes to adopting blockchain technology and electronic supply chain auditing. For the latest in trade news and expert advice feel free to contact an experienced trade advisor to help you navigate the world of trade.

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How The Proposed Tariffs Affect You In The U.S.-China Trade War

China U.S. Trade War Proposed Tariffs

For the second time in July the U.S. government has placed additional tariffs on products exported from China and imported into the U.S.  If the proposed tariffs were actioned, there would be changes for both American and Canadian importers. How will the additional tariffs on Chinese manufactured goods affect trade between the United States and Canada?

The Proposed Tariffs Effect On Canadians

Canada is already in the midst of a trade war with the U.S.  Now Canada is unwittingly affected by the trade war between the U.S. and China because many items proposed for additional tariffs are manufactured in China, exported to Canada and then finally exported into the U.S.  The additional tariffs levied against Chinese goods are applicable to goods manufactured in China without regard to the previous country of export.

Canada has enjoyed a long standing trade partnership with the U.S.  Canadian companies often act as Non-Resident Importers; handling all of the import requirements including payment of duties and taxes. This has allowed Canadians to sell their goods to companies in the U.S. as seamlessly as a U.S. company. This allows Canadian exporters to expand their market beyond the Canadian border.

The third list of tariffs released on July 11th cover consumer goods such as furniture, seafood, automobile parts, televisions and video equipment, which we see our clients from Canada ship on a daily basis.

Even though the trade war is between the U.S. and China, other countries are affected because they, like the U.S., have their goods manufactured in China.

Many of the items on the proposed list such as furniture and seafood, which are normally duty free, will be dutiable at 10% if the proposed tariffs are actioned.

If you are a Canadian company who exports Chinese manufactured products into the U.S. you will need to consider how you will address the increase in cost of exporting to Americans.

The Proposed Tariffs Effect On Americans

Over 75% of the new tariffs target machinery for manufacturing goods, electrical equipment, televisions, recorders, bicycles, bicycle parts, and automobile parts: all merchandise which is in high demand with american consumers. With the U.S. being a consumer based economy, where the consumer is interested in paying the lowest price possible, this new legislation would have an adverse effect on the U.S. economy.

In short order, the increase in costs to bring goods into the U.S. will increase costs for producers, importers and ultimately the consumer. This is never a popular solution, however the U.S. has tried to entice China to come to the table to discuss revising their unfair trade practices.  

The additional tariffs were initiated to combat Chinese regulations that require companies wishing to do business in China partner with a chinese company and share the technology associated with their products leading to violations of both intellectual property rights and World Trade Organization (WTO) rules.

Some economists say that a more appropriate way to combat these unfair trade practices would be to band together with other countries and take their concerns to the WTO to initiate a lawsuit against China.

In the long run, if the two countries can come to a satisfactory solution to the root of the issue the U.S. will benefit greatly and the trade deficit will balance out.

The Proposed Tariffs Affect On U.S. Import Bonds

How will the increased duties affect your import bond? Bond limits are set based on duties, taxes and fees paid in a 12 month period. With the increased duties, higher bond limits may be required. In addition to the higher bond limits, the surety company may request financial documents and collateral to secure the bond.

Your Guide To The Proposed Tariffs

This is a retaliatory move by the U.S. to address concerns of intellectual property rights.

The United States Trade Representative (USTR) will be holding a hearing August 20th-23rd on the impact the proposed tariffs will have if imposed. In order to appear at the hearing, submission must be made before July 27th, which must include a summary of the expected testimony. Written comments can be submitted to the USTR from now until August 17th, 2018.

A decision on if the additional 10% tariff will be imposed or not is expected to be announced at the end of August, after the hearings.

This 10% will be in addition to the already imposed 25% tariff on $34 billion worth of goods from China that came into effect on July 6th, 2018. China retaliates with a reciprocal tariff increase on U.S. commodities imported into China.

How You Can Prepare For The Proposed Tariffs

As a business it is best for you to be proactive in your approach to the impending changes. Contacting a trade professionals for advice on how the proposed legislation could affect your company will provide you with the knowledge to make quick decisions when change inevitably comes.

This includes understanding;

  • What country has the most cost effective solution to source your materials from,
  • Determining your rate of duty if there were changes to the proposed tariffs or NAFTA,
  • Education to make yourself prepared for current practices and future changes, as well as,
  • Freight costs to get your products from your source to you.

All of these services are provided to you by our Trade Advisory experts in Canada and the U.S. Contact us to start a conversation with a Trade Advisor today.

 

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Possible Trade War: U.S. and Canada

 

Canada, the U.S. and Mexico Flags NAFTA

On June 1, 2018, the U.S. committed to a 25% tariff on imports of steel and 10% tariff on aluminum, on the European Union, Canada and Mexico. The tariffs have triggered retaliatory tariffs on U.S. goods and heightened the chance of a trade war.

The U.S. steel industry will initially benefit from the tariff increase through decreased international competition, driving up the price of U.S. steel and therefore the profits. These profits can be reinvested into the steel industry by improving their technologies and potentially providing more job opportunities.

A potential downfall to the tariff increase is retaliatory measures from U.S. trade partners, as is the case with Canada. Canada has announced $16.6 billion in retaliatory tariffs. The Canadian tariffs will go into effect July 1, 2018, and cover a broad range of commodities. Some, mainly unfinished iron and steel products will be hit with a 25% tariff, while others including many consumer products will be hit with a 10% duty.

 

If history repeats itself, trade policy experts warn tariff increases could cause future harm. An example of this was in 2002, when the U.S. enacted a tariff of 8% to 30% on international steel. The increased tariffs set off a chain reaction with the European Union responding with tariffs of its own and a number of countries disputed the tariffs at the World Trade Organization. The WTO ruled the U.S. violated the international trade agreements, and opened the door for sanctions and retaliation. Retaliation by the EU cost many Americans their jobs, and in late 2003 the U.S. Government reversed the sanctions.

Canada’s Stance

The tariffs could cost the Canadian economy over $3 billion a year.  According to the Canadian Steel Producers Association, Canada is the largest supplier of steel and aluminum to the U.S.  Approximately 90% of Canada’s steel is exported to the U.S. The price of steel and aluminum is going to go up as a result of these tariffs and jobs will be lost in Canada. Steel production employs around 22,000 people in Canada concentrated mainly in Ontario. Canada exports around 84% of its aluminum to the U.S., which represents around 8,300 jobs in the aluminum sector with the majority being in Quebec.

Canadian consumers can expect to pay more for products imported from the U.S. that are largely made of steel and aluminum which could apply to anything from cars, refrigerators, canned sodas and beer.

International Stance

China, and the European Union have also responded negatively to the U.S. tariff increases. Brazil contributes 13%, followed by South Korea at 10%, and Mexico at 9%. The original target China only imports 2% of the U.S. steel imports.

Along with fighting the tariffs at the World Trade Organization, European officials have been preparing levies on an estimated $3 billion worth of imported American products in late June. In a joint statement, ministers from France and Germany said the countries would coordinate their response.

Steel and Aluminum Statistics

Below you can see a few interesting statistics on Canada-U.S. cross-border steel and aluminum trade.

  • In 2017, Canada exported nearly $17 billion of steel and aluminum products into the U.S. (Statistics Canada)
  • More than $14 billion of steel crossed the Canada-U.S. border in 2017 (Canadian Steel Producers Association)
  • Canada exported $11.1 billion of aluminum and aluminum articles to the U.S. in 2017 compared to $3.6 billion of imports from the U.S. (Statistics Canada)
  • Close to 45% of Canada’s steel production is exported to the U.S.  Predominantly to Michigan, Ohio, Illinois, and New York.
  • Over 50% of American steel exports go to Canada.
  • Canada sent more than $5.6 billion of primary aluminum exports to the U. S. in 2016. New York, Kentucky, Michigan and Pennsylvania are the top destinations.
  • Between 2000 and 2015, Canada’s share of world aluminum production fell from 10% to 5%. For the U.S. from 15% to 2.7%. While China’s increased from 11% to 55%.
  • U.S. aluminum production fell following the 2008 financial crisis and recession. It was up 6.9% in 2018 from 2017.
  • Canadian aluminum production is down 7.6% for the first two months of 2018 compared to the same time in 2017.

The Beginning of the End for NAFTA?

With the likelyhood of eliminating multilateral trade agreements in favor of bilateral trade agreements. In order to have control over your trade in these uncertain times, you must arm yourself with the knowledge of what your duty rates will be without NAFTA, alternative countries of origin for your imported goods and freight quotations on getting your goods from your new origin to the final destination.

You can talk with our trusted trade advisors to determine your rate of duty without NAFTA. Click here to get in contact with a trade advisory expert today.

Jan Brock | Author

 

 

 

 

 

 

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