Posts Tagged ‘import’


 

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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Foreign Supplier Verification Program Frequently Asked Questions

FSVP Produce


What is the Foreign Supplier Verification Program (FSVP)?

FSVP is a program set in place by the Food and Drug Administration (FDA). This requires U.S. buyers to make sure they are importing from foreign producers that are manufacturing under the same standards as domestically made foods. It consists of various information retained by the U.S. importer such as hazard analysis of the producers, controls, monitors programs, and specific record keeping requirements.

What is the FSVP compliance date for importers subject to the Produce Rule?

All Importers whose large foreign suppliers are required to be compliant with the Produce Rule will also be required to be compliant with FSVP on July 26th, 2018.

Who is subject to the Produce Rule?

Growers and Manufacturers of vegetables and fruits that are normally consumed raw and that are fresh or minimally processes, such as cut and washed, are subject to the produce rule, such as tomatoes, cucumbers, and blueberries. This does not include frozen fruit or vegetables or items that need to undergo further processing (such as a process to minimize contamination or cooking). This would include squash, coffee beans, and navy beans.

What new information must I include on my invoices?

For your Customs Broker to clear your entry with the FDA, they will now need to know who the FSVP Importer is, the FSVP importer’s DUNS number, and the FSVP importers IRS number. Without this information, the entry will be held.

Who is the FSVP Importer?

The FSVP Importer must be a U.S. Company. When items have been sold this is usually the U.S. buyer of the goods. If there is not buyer, then it is the receiver of the goods in the U.S. If there is no final receiver, such as items going to a fulfillment facility, you can have a U.S. FSVP Agent indicated on the documents, who agrees to take on the responsibilities of the FSVP Importer.

How does this affect Foreign suppliers?

Although the FSVP Importer is technically the U.S. company, there is a large amount of information that the FSVP Importer is required to have on file and verified regarding your manufacturing facility. These can range from lab results, your food safety plans, and other information. If you do not have these available, but they are a requirement for the U.S. company to buy your goods and bring them into the state, they may move on to purchasing from someone who has provided them the required information.

Also, as the foreign supplier, if you are the Importer of Record as well, you will need to make sure you speak with your buyers to confirm with them that they are aware of the FSVP rule, are working to be in accordance with it before July 26th, and that they have provided you their DUNS number and email address.

What does the FDA consider a Large Foreign Supplier?

FDA considered a large facility a facility that is neither a small or very small supplier. This would be a business (including any subsidiaries and affiliates) employing 500 full-time equivalent employees or more.

FDA also lists the definition of full-time equivalent as: “a term used to represent the number of employees of a business entity for the purpose of determining whether the business qualifies for the small business exemption. The number of full-time equivalent employees is determined by dividing the total number of hours of salary or wages paid directly to employees of the business entity and of all of its affiliates and subsidiaries by the number of hours of work in 1 year, 2,080 hours (i.e., 40 hours × 52 weeks). If the result is not a whole number, round down to the next lowest whole number.”

Where can I ask more questions regarding the Foreign Supplier Verification Program?

You can call us anytime to find out more information on importing produce into the U.S. and all the subsequent regulations and governing authorities such as the FDA.

You can stay informed by signing up to our email newsletter. These emails consist of general trade information, regulatory updates and event notifications. Click the button below to stay informed on the latest trade information, regulatory updates and Pacific Customs Brokers events.

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Before You Import a Live Horse: A Document Checklist

Over the years, the importation of live horses has become highly regulated. Canada and the U.S. have regulations governing the movement of horses across their shared border. This has led to importers being required to prepare well in advance of their trip.

Basic requirements for importing a live horse into Canada:

As an importer you are legally responsible for the accuracy of information provided to CBSA, even if you use a customs broker, freight forwarder or service provider to prepare your documents. The importer must also ensure that the carrier has the proper health documents when transporting your horse across the border.

  • Canada Customs Invoice – When filling out the Canada Customs Invoice be careful with the ‘country of origin’. Often mistaken, this refers to the country in which the horse was born.  The horse’s name must be shown on all invoices and must match the health documents and include the name and address for the destination in Canada.
  • Bill of Sale – Horse’s name must be shown on all invoices and must match the health documents. CBSA is targeting valuation of horses and they have requested many times that customs brokers provide the bill of sale. Therefore, we make it part of our required documents to avoid delays at the border.
  • Health Documents – You must have a current Equine Infectious Anemia (EIA) also known as the Coggins and International Health Certificate which may be one or two pages but must show that the horse(s) have not been in the state of Texas or New Mexico within the past 21 days.
  • Entry Type – Your customs broker will want to know whether the horse is a temporary or a permanent entry.
    • If permanent, they will need to know its end use (race, show, breeding, other)
    • If temporary, they will need to know the reason and length of stay to determine if it can clear under a temporary import authorization D8-1-1 or if you will have to pay full taxes. Horses that are leased do not qualify for temporary import and must be fully GST/PST/HST paid depending on whether it is a personal or commercial importation. Horses imported temporarily for pasturage, competition, training or breeding qualify for temporary entry. The maximum length of stay is 12 months. Your horse must be exported prior to that time unless an extension is applied for and granted, or else it will be entered for consumption.

Canadian Horses Being Returned to Canada

Canadian horses returning to Canada can only be re-entered under 9813 or 9814 if:

  • Returning to the original owner and
  • Accompanied with proof of export (POE)

The usual POE for horses is the stamped copies of the health documents used to export the horses into the USA. However, a U.S. Customs entry and invoice or the transaction number covering the original entry into Canada will also be sufficient. Even in this instance, your customs broker will need to know “reason” for export to the USA.

Be careful for any dutiable costs while in the USA. For example, if the horse is now pregnant, you may need to determine a value for the foal.  If the information is already on the invoice, it will be included it in the value of the horse. If not, the information is only required if Canada Border Services Agency requests it at the time of release at the discretion of the Border Service Officer.

Horses Shipped from Texas or New Mexico

Texas and New Mexico currently have restrictions on horses importing to Canada. Horses shipped from Texas or New Mexico need a CFIA import permit which the importer must apply for in advance. Also, the carrier will need to make a vet appointment at the border.

 

Following the above general guidelines for importing a horse into Canada will streamline the crossing of borders to the satisfaction of all concerned, making your next trip with your horse a smooth ride.

Pacific Customs Brokers has years of experience handling the clearances of live animals such as horses. Should you require assistance in importing a live horse, our import specialists can simplify the process for you.

 

Additional Reading:

Pacific Customs Brokers Launches ‘Your Broker Knows’ YouTube Channel

Your Broker Knows - YouTube Channel

 

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.