Posts Tagged ‘Canada’


 

What Does CPTPP Stand For? | CPTPP FAQ

CPTPP

What Does CPTPP Stand For?

The CPTPP stands for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. As of February 2018, CPTPP is a new free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Who Has Ratified CPTPP?

The countries that have ratified the CPTPP includes:

  • Mexico | June 28, 2018
  • Japan | July 6, 2018
  • Singapore | July 19, 2018
  • New Zealand | Oct 25, 2018
  • Canada | Oct 29, 2018
  • Australia | Oct 31, 2018
  • Vietnam | November

Who Has Not Ratified?

  • Peru | Expected before 2019
  • Brunei
  • Chile
  • Malaysia

When Does It Start?

Since 6 of the countries have ratified, CPTPP will start on Dec 30th, 2018. For all of the countries that have ratified, they will be able to start using the agreement on Dec 30th. For the rest of the countries who have yet to ratify, the agreement will come into force for them 60 days after that country ratifies and deposits as well.

When Was It Signed?

The CPTPP was signed on March 8th, 2018, in Santiago, Chile.

When Will CPTPP Come Into Force?

The CPTPP will come into force on Dec 30th, 2018, which would mean 2018 is year 1 and 2019 is year 2. Which means faster duty reductions. The “years” for the agreement run from Jan 1 – Dec 31.

Who Can Use The CPTPP Agreement?

The agreement can only be used by the countries that have ratified the agreement.

For example, since Canada is ratified but Malaysia is not, Canada and Malaysia are not able to use the agreement with each other until Malaysia ratifies and the 60 days has passed.

What Are The Benefits?

Approximately 98% of the customs duties will be removed at the time of final implementation. Once CPTPP comes into force, many commodities will be duty free upon entry. The elimination of tariffs will depend on the staging category. Some items will have the duty reduced faster than others. A few commodities will not be reduced at all.

Are You Prepared For The Agreement?

The CPTPP agreement will affect the world of trade. Are you prepared for the new CPTPP agreement? You can learn about the rules of origin, regional value content, de minimis, and more from an expert trade advisor from Pacific Customs Brokers. Contact one of our experienced trade advisors today for your trade edge.

 

 

 

 

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Canada Imposes Provisional Safeguard Surtax On Seven Steel Products

Steel Surtax

On October 25, 2018, the Government of Canada imposed a provisional safeguard surtax of 25% on imports of certain steel products.

What Steel Products Are Affected By The Surtax?

  1. Heavy plate
  2. Concrete reinforcing bar (rebar)
  3. Energy tubular products
  4. Hot-rolled sheet
  5. Pre-painted steel
  6. Stainless steel wire
  7. Wire rod

A complete description of the products that are subject and their tariff classifications is found on the Department of Finances website.

What Countries Are Exempt From The Surtax?

  • United States
  • Chile
  • Israel or other beneficiary of the Canada-Israel Free Trade Agreement
  • Mexico
    • However, energy tubular products and wire rod imported from Mexico are subject to the provisional safeguard.
  • Developing countries
    • With the exception of imports of rebar from Vietnam, which are subject to the provisional safeguards.

What Are The Exceptions To The Surtax?

There is a specified quantity of these products that can be imported from each country, free from the safeguard surtax, under Tariff Rate Quotas administered by Global Affairs Canada (GAC). A shipment specific import permit must be obtained from GAC prior to final accounting of the Customs entry (within 5 days of customs release). Global Affairs has a Notice to Importers which includes detailed information about tariff rate quota and permits.

Quota will be issued to importers on a first come, first served, shipment-specific basis. Once the quota runs out, permit applications will be rejected and surtax will be applicable to imports of these products.

What Steps Should An Importer Take?

Review Your Steel Products

Review the steel products you import and compare them to the list on the Department of Finance website. Based on tariff, description and origin, are your steel products subject to the provisional safeguards?

If the products you import are subject to the provisional safeguards, you must advise your customs broker which products fall within the scope, in order to potentially reduce surtaxes by way of Tariff Rate Quotas.

For imports of any subject goods, we recommend copies of your Customs documents are provided a minimum of 48 hours in advance but no more than 5 days in advance of Customs clearance with a request for an import permit. Your Customs documents should include the statement “Goods Subject to Provisional Safeguards” and an indication of which items are subject.

Obtain Your Export and Imports Permits Act File Number

Ensure your companies Export and Import Permits Act File Number with GAC is open and active, then you are able to apply for a Tariff Rate Quota permits. You can check directly with GAC to determine the status of your file number. Once you have confirmation your file number is active, you can send your customs broker the number to add to your account information.

If the products you import are classified under the tariffs listed and originate in a subject Country but are NOT of the specifications listed, ensure your Customs documents include a detailed description and the statement “Goods Not Subject to Provisional Safeguards.”

If your Customs documents do not contain enough information to confirm if the products are subject or exempt, contact your customs broker to verify this information prior to final accounting.

Also, if surtaxes are not paid on subject goods at the time of import, CBSA can issue Detailed Adjustment Statements for the additional amounts and interest, as well as fines for non-payment.

Trade Advice You Can Trust

If you would like assistance verifying if your products fall within the scope of this order, Pacific  Customs Brokers expert Trade Advisors would be happy to assist you. Connect with an experienced Trade Advisor today to get your edge in the world of trade.

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Safe Food For Canadians Regulations To Require License For Businesses

 

Safe Food for Canadians Regulations


Safe Food For Canadians Regulations (SFCR)

If you have a business providing food to Canadians, you will most likely be affected by the new SFCR being implemented January 15, 2019. The SFCR focus is to prevent unsafe foods from entering into Canadian marketplaces, as well as, providing faster means to eliminate unsafe foods when they manage to penetrate the marketplace.

How Will SFCR Affect Food Businesses?

Starting January 15, 2019, if you provide food to Canadians, and the food crosses provincial or territorial borders, you will be required to have a license under the SFCR.

The SFCR will also require you to have preventative controls, traceable goods, packaging requirements, and labeling standards to make sure your food is safe for Canadians.

As a food business, the Canadian Food Inspection Agency (CFIA) has a helpful tool to inform you;

  1. If you need a license,
  2. When you will need the license by, and
  3. How to apply for the license.

What Food Business Activities Will Require A SFCR License?

For more information on if you need a license, the CFIA has also produced a well structured guide “Food business activities that require a license under the Safe Food for Canadians Regulations”. This guide is helpful for the DIY (Do It Yourself) approach. It covers who will need a license and who will not. For instance, if you are going on a road trip across Canada and you have a few snacks, you will not need a license. However, if you are importing food into Canada, you will need a license if you are importing food additives, alcoholic beverages, and for all unprocessed foods listed in Schedule 1 of the SFCR.

An Expert Trade Advisor You Can Rely On

For those who do not want to study the requirements top to bottom, a customs broker or trade advisor will be able to help you navigate the new regulations of the SFCR beginning early 2019. You can contact one of our expert trade advisors today to help you simplify the complicated world of trade.

 

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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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Are You Eligible To Request Remission Of Canada’s New U.S. Surtaxes?

Surtax | Canadian Cash

Surtax Got Your Profits Down? You May Be Eligible For A Surtax Remission.

Many Canadian Importers of Record have experienced an increase in importation costs on items originating from the U.S. that appear on the surtax list. The surtax of 10% to 25% on a wide range of items, including steel and aluminum, was imposed on July 1st, 2018, in retaliation to the U.S. decision to increase tariffs on Canadian steel and aluminum imports into their country. There is a possibility that you could be relieved or refunded of the surtaxes you are currently paying.

Under What Circumstances Will You Be Relieved Or Refunded Your Surtax Paid?

The Federal Interdepartmental Committee may recommend to the Minister of Finance to grant relief under “exceptional and compelling circumstances that outweigh the primary rationale behind the application of duties and, in the current case, surtax.”

They continue with a list of three situations where a refund or relief may be applied:

  1. To address situations of short supply in the domestic market, either on a national or regional basis.
  2. Where there are contractual requirements existing prior to May 31, 2018, for Canadian businesses to use U.S. steel or aluminum in their products or projects.
  3. To address, on a case-by-case basis, other exceptional circumstances that could have severe adverse effects on the Canadian economy.


If you need assistance applying for a refund or possible relief of the surtaxes please
contact one of our expert Trade Advisors. With all of the pertinent import history details, they can help you write and apply for remission of surtax on your behalf.

To date, no timeline has been provided to let us know how long this review process will take. However, we will continue to provide you with details on the possibility of refund or relief as they develop. To ensure you do not miss any updates please subscribe to our mailing list.

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