Join the Canadian Apparel Federation and Borden Ladner Gervais LLP for a presentation on forced labour and modern slavery in global supply chains – with a focus on proposed Modern Slavery legislation in Canada. Given recent customs enforcement in the US and growing concerns expressed by the Canadian government there will be increasing calls for apparel firms to address this issue in their supply chains.
The agenda will include:
What is forced labour?
New CUSMA/USMCA and Customs Tariff provisions (what are they; risks and consequences of import control; getting stopped at the border; follow on complaints; risks re the US)
Enforcements trends of similar measures in the US
Avoiding customs entanglements: doing human rights due diligence
Related Canadian and global legislation (Modern Slavery Acts)
Delays, congestion and container availability problems are increasing at ports and terminals in southern China, including Yantian, Shekou and Nansha, as operations have slowed in an effort to contain outbreaks of COVID-19.
Container dwell times at Yantian rose to eight days the week of May 30, with median dwell times of 18 to 21 days by June 7. Container availability dropped at the three ports, skipping the ports of call, and resulting in empty boxes not being dropped off at ports.
Below are some key updates relating to ports in southern China —
Port Updates
Port of Yantian: Only accepting ETA 3 days with advanced appointment, not accepting any truck operators who have been to Nansha/Guangzhou area. Mandatory 14 day quarantine required.
Port of Shekou: Only accepting ETA 3 days with advanced appointment. Truck operators require negative COVID-19 test.
Da Chan Bay: Only accepting ETA 7 days with license plate from Shenzen area. Trucker operators require negative COVID-19 test.
Port of Nansha: Only accepting ETA 7 days, with certain areas still closed. Those from high risk areas (such as Guangzhou or Shenzhen) require a mandatory 14-day quarantine and negative COVID-19 test.
Bounded warehouse: Truck operators require negative COVID-19 test and not have visited any high risk areas.
In this scenario, shippers can expect goods to be delayed to well into the end of June, if not July.
Strain on Global Supply Chains
These challenges in southern China are the latest in a saga of global container shipping issues that have plagued shippers, forwarders and carriers for more than a year — from port congestion, to equipment shortages, to blank sailing, to skyrocketing freight rates.
Many importers have pivoted to airfreight given ongoing capacity and timeliness issues in ocean freight, although air cargo space is also limited.
We’re Here To Help
Keeping in close contact with Carson regarding booking management is essential to mitigating risks. Please reach out to us directly so we can assess your needs and make considerations in the best interest of your business.
Carson International is pleased to partner with Miller Thomson LLP for another instalment in our webinar series addressing Canada/U.S. cross-border trade developments and updates.
The Canada Border Services Agency (CBSA) will conduct verifications on a periodic basis. This webinar will discuss relevant risk elements and the methodology used by customs authorities to undertake a customs verification. CBSA customs verifications are designed to measure compliance rates and revenue loss. The three most common types of verifications are:
Valuation verifications
Tariff classification verifications
Origin verifications
Join the conversation regarding CBSA’s verification methodologies and the steps that should be taken by importers to mitigate the impact of the CBSA’s verification.
Panelists:
Dave Pentland, Carson International Dan Kiselbach, Miller Thomson LLP
CARM is a Canada Border Services Agency multi-year project to simplify and modernize their accounting and data management systems to provide the commercial trade community with a streamlined method of interaction with the CBSA. This new CBSA initiative will affect all importers.
Join us on May 13 for our CARM info session where we will ensure you have everything you need to know as we move through the implementation process together:
Key dates
How to prepare for Release 1 on May 25, 2021
Changes to import bonds
Panelists:
Dave Pentland, Carson International Lisa Hennessy, Vice President, Avalon Risk Management
Webinar Details:
Getting Ready for CARM Thursday, May 13, 2021 Time: 11:00 a.m. – 12:00 p.m. PST
The Canadian government has released its first federal budget in more than two years, as it aims to pull Canada through the COVID-19 pandemic and repair economic ruptures.
The budget focuses on three core areas:
Ongoing Pandemic Support
Job Growth and Business Recovery
Green Transition, Green Jobs, Social Infrastructure
Here are a few key areas that are of notable interest to the trade industry.
Improving Duty and Tax Collection on Imported Goods
Budget 2021 proposes changes to the Customs Act to improve duty and tax collection. These changes would ensure that goods are valued in a fair and consistent manner by all importers. This would level the playing field between domestic and foreign businesses and generate an estimated $150 million in additional annual duty revenues. The changes would also modernize and digitize the duty and tax payment process for commercial importers, so as to minimize administrative burden.
Strengthening Canada’s Trade Remedy System
Budget 2021 announces the government’s intention to launch public consultations on measures to strengthen Canada’s trade remedy system and to improve access for workers and small and medium-sized enterprises. This may result in proposed amendments to the Special Import Measures Act and the Canadian International Trade Tribunal Act.
Administration of Trade Controls
Budget 2021 proposes to provide $38.2 million over five years, starting in 2021–22, and $7.9 million per year ongoing, to Global Affairs Canada, as additional resourcing to support Canada’s trade controls regime.
Better Supports for Exporters
Budget 2021 announces the government’s intention to work with Export Development Canada to enhance supports to small and medium-sized exporters and to strengthen human rights considerations in export supports. The government may propose amendments to the Export Development Act.
Border Carbon Adjustments
The government intends to launch a consultation process on border carbon adjustments in the coming weeks. This consultation process will begin in the summer with targeted discussions, including with provinces and territories, importers, and exporters—especially those who deal in emissions-intensive goods. The broader public will be engaged this fall. Throughout this process, the government intends to continue its international engagement with like-minded partners.
Application of GST/HST to Ecommerce (non resident importers, fulfillment centres)
The government proposed that distribution platform operators be required to register under the normal GST/HST rules and to collect and remit GST/HST in respect of sales of goods shipped from a fulfillment warehouse or another place in Canada, when those sales are made by non-registered vendors through distribution platforms. Non-resident vendors that make sales on their own (i.e., not made through a distribution platform) would also be required to register under the normal GST/HST rules and to collect and remit GST/HST in respect of sales of goods shipped from a fulfillment warehouse or another place in Canada.
Excise Tax Collection on Tobacco and Vaping Products
Budget 2021 announces the federal government’s intention to introduce a “new taxation framework” to impose excise duties on vaping products that would start in 2022 if the budget is passed.
Industry Reactions
Several Canadian industries have shared their reaction to Budget 2021.
Wine Growers of BC have called the budget a “monumental investment”, since the federal government has proposed to spend $101 million over two years, starting in 2022, to help wineries adapt to ongoing and emerging challenges. Specifically, Wine Growers British Columbia supports the request from Wine Growers Canada that the government implement the Wine Grower Quality Enhancement Program.
The Dairy Processors Association of Canada welcomes measures announced in the 2021 Federal Budget to support dairy processors impacted by recent trade agreements as a step in the right direction. Compensation measures totalling $292 million for two agreements, CETA and CPTPP, will support processors under supply management as the industries transition to the new market realities created by the agreements.
The Canadian Steel Producers Association is thankful to the government for its efforts in the fight against COVID-19, while also acknowledging that “CSPA members are ready to work on the priorities outlined in today’s budget to strengthen Canada’s resiliency and to build a greener and more innovative economy. While we produce some of the greenest steel in the world, we need partnerships and financial support to achieve our goal of net zero emissions by 2050. Today’s announcement of additional funding to the Net Zero Accelerator, together with new tax measures to support the adoption of innovative technologies such as carbon capture utilization/storage and hydrogen, will provide a strong foundation for this transformational agenda.”
Defence contractors are wary of the government’s resurrection of the so-called “economic harm” warning, which threatens to penalize companies that try to do economic harm to Canada.
Three years ago, the government laid down a marker that became known informally in procurement circles as the “Boeing clause.” Under the sub-headline of “Ensuring Procurement Partners Respect Canada’s Economic Interests,” the policy was reanimated and restated in Monday’s fiscal plan, much to observers’ surprise.
“In December 2017, the government announced that the evaluation of bids for the competition to replace Canada’s fighter aircraft would include an assessment of bidders’ impact on Canada’s economic interests, and that any bidder that had harmed Canada’s economic interests would be disadvantaged,” said the budget. Budget 2021 confirms the government will apply this policy to major military and Coast Guard procurements going forward.”
We will continue to provide updates as to how the 2021 Federal budget will impact trade and our valued clients and partners.
We were pleased to partner with BC Apparel and Gear to discuss how to increase your ecommerce sales into the United States from Canada.
Are you an SME looking to increase your ecommerce sales into the United States from Canada?
On April 8, we discussed Section 321 of the U.S. Customs Act that allows exporters to ship on a daily basis individual orders duty, tax and processing-free to U.S. Customers.
Importers are locking in container shipping rates that are as much as 50% higher than a year ago to avoid the volatile and even steeper prices in the spot market, tightening the squeeze on margins and heightening concerns about inflation across the world economy.
Contract rates for Asia to North American routes in recent weeks are coming in around $2,500 to $3,000 for a 40-foot container — 25% to 50% higher than a year ago, according to George Griffiths, an editor on the global container freight-pricing team at S&P Global Platts.
Container rates may stay elevated through the second quarter and maybe into the third, Hapag-Lloyd CEO Rolf Habben Jansen said last week. Capacity is still stretched and “I don’t see any signs around the corner than demand is falling off a cliff,” he said.
Carson International is pleased to partner with Miller Thomson LLP for another instalment in our webinar series addressing Canada/U.S. cross-border trade developments and updates.
Join us in conversation regarding customs valuation methods in order to optimize duty and tax minimization strategies, and reduce customs valuation regulatory risk.
Topics:
Canada and the U.S. are member countries of the WTO’s Customs Valuation Agreement (CVA). What are the similarities and differences with respect to applying provisions?
Customs valuation is a verification priority for customs authorities worldwide. What are the issues and concerns that are of interest?
How can you employ duty minimization strategies through the use of different customs valuation methodologies?
Panelists:
Dave Pentland, Carson International Dan Kiselbach, Miller Thomson LLP
Webinar Details:
Customs Valuation: What Could Go Wrong? Thursday, April 22, 2021 Time: 11:00 a.m. – 12:00 p.m. PST
Webinar connection details will be provided by Miller Thomson before the webinar.
Carson International is pleased to partner with BC Apparel and Gear to discuss how to increase your ecommerce sales into the United States from Canada.
Are you an SME looking to increase your ecommerce sales into the United States from Canada?
Join us on April 8 as we discuss Section 321 of the U.S. Customs Act that allows exporters to ship on a daily basis individual orders duty, tax and processing-free to U.S. Customers.
Presenter
Dave Pentland, Carson International
Webinar Details
E-Commerce from Canada to USA Made Easy and Border-Free Thursday, April 8, 2021 Time: 12:00 noon PST
We have received notice from the Canadian International Freight Forwarders Association (CIFFA), that a potential labour disruption may occur at the Port of Montreal.
This comes following news of the March 15 hearing that took place before the Canada Industrial Relations Board on the issue of the union being said to be negotiating in bad faith. A ruling from the CIRB is expected soon. On March 12, the employer, the Maritime Employers Association, put forth a final offer to the union. This is not an agreement in principle. The union will send out the final offer to members on March 18 by email and, for those who do not have email, copies of the offer will be available at the Maison des Débardeurs office. The Port of Montreal will be closed on March 21 from 7:00 am to 3:00 pm for a special meeting of members, during which time the contents of the final offer will be discussed. The union will follow up with information on timing and format of the meeting in order to facilitate maximum attendance for voting on the final offer.
As the offer is not an agreement in principle, there is a risk that the agreement could be rejected. Should the union reject the MEA offer on Sunday, they will be in a position to provide 72 hour strike notice. Port operations would not likely be impacted before March 24, 2021.
Carson is remaining informed of the potential strike action, and will share updates with clients as they come in.
