Will your business be ready for January 2013? That is when Canada and the US will begin full enforcement of the International Standards for Phytosanitary Measures No. 15 (ISPM 15) for non-manufactured wood packaging material (WPM) moving between Canada and the US. Until now, non-manufactured WPM originating from Canada or the US and used exclusively in trade between the two countries has been exempt from the ISPM 15 requirements. However, a growing number of harmful pests have become a concern for the environment in both countries, spurring the removal of this exemption.

 In the coming months, the Canada Border Services Agency and the Canadian Food Inspection Agency will be providing more information on the new ISPM 15 requirements. They encourage you to start sourcing supplies of ISPM 15-compliant WPM to ensure shipments are compliant once full implementation and enforcement activities commence. For more information, please visit the CBSA Web site at: http://cbsa-asfc.gc.ca/security-securite/wp-meb-eng.html

The Program, one of many security initiatives introduced by Transport Canada, reduces the risks to the safety and security of the travelling public and keeps goods moving efficiently in and out of Canada. Recent data show that freight forwarders are key business partners in air cargo supply chains – arranging flights for more than 94% of global air cargo. Canada’s freight forwarding organizations are committed to a multi-levelled approach to air cargo security and to driving security throughout the supply chain.

 The purposes of Transport Canada’s ACS Program are to develop an ACS Program that meets the highest standards, reduces risks to safety and security of the travelling public and ensures the efficient movement of goods.

The Government of Canada is committed to enhancing our economic ties with China. To highlight the success of our trade relationship, Prime Minister Stephen Harper visited the Cuntan Port in Chongqing, China, on February 11, 2012, where he witnessed the arrival of the first container shipment of pork from Canada to this region. It is expected that this first container shipment will open the door to even greater growth of Canada’s exports to this burgeoning market. Canada’s Asia-Pacific Gateway and Corridor offers access to world-class logistics and distribution facilities, secure, efficient and reliable routes for import and export of goods.

The Canada Border Services Agency (CBSA) has announced the new Mandatory Electronic Export Reporting Policy for exporters. Effective April 1, 2012, the CBSA will take steps to eliminate the manual reporting process form (B13A) for exporters and implement mandatory electronic reporting. The CBSA is now updating the applicable regulatory requirements to mandate electronic export reporting.

 To assist freight forwarders and their customers training through online webinars and workshops is offered by industry associations.

The World Customs Organization (WCO) announces the entry into force on 1 January 2012 of the new version of the Harmonized System Nomenclature, the world’s global standard for classifying over 98% of goods in international trade. Used by over 200 countries and economic or Customs unions as well as by international organizations such as the United Nations Statistical Division (UNSD) and the World Trade Organization (WTO), the Harmonized System (HS) Convention currently has 141 Contracting Parties, making it the WCO’s most successful instrument to date.

 “This is the fifth amendment to the HS Nomenclature since the WCO Council approved its adoption in 1983,” said the WCO. The 2012 version includes 220 sets of amendments: 98 relating to the agricultural sector; 27 to the chemical sector; 9 to the paper sector; 14 to the textile sector; 5 to the base metal sector; 30 to the machinery sector; and an additional 37 that apply to a variety of other sectors. Environmental and social issues are the major feature of these amendments, particularly the use of the HS as the standard for classifying and coding goods of specific importance to food security and the early warning data system of the Food and Agriculture Organization of the United Nations (FAO). HS 2012 also features new classification provisions for specific chemicals controlled under the Rotterdam Convention and ozone-depleting substances controlled under the Montreal Protocol to further respond to global environment protection efforts. Changing trade patterns too played a role in the new version as did efforts to simplify the HS, recognized universally as a multi-purpose tool and used extensively as a basis for Customs tariffs and for the collection of national and international trade statistics.

The Canada Border Services Agency (CBSA) has strengthened its commercial importation process respecting goods contaminated with soil. Such goods are not admissible into Canada. The Canadian Food Inspection Agency (CFIA) is responsible for establishing the policy regarding the importation of goods contaminated with soil while the CBSA is responsible for administering and enforcing that policy at the border.

 As of February 1, 2011, non-compliant goods,that is, goods contaminated with soil, arriving at the Canadian border will be restricted to a CBSA-controlled area and may, at the importers expense, be cleaned on-site by a mobile wash facility approved by the CFIA provided certain conditions can be met. If a wash facility is not available or conditions are not met, the goods will be refused entry into Canada and ordered removed.

Canada and over 160 countries are contracting parties to the International Convention on the Harmonized Commodity Description and Coding System, which governs the Harmonized Commodity Description and Coding System (generally referred to as “Harmonized System” or simply “HS”).  The HS is an international product nomenclature developed by the World Customs Organization (WCO) that contributes to the harmonization of customs and trade procedures.  It is used extensively by governments, international organizations, and the private sector for a range of purposes, including: internal taxes, trade policies, monitoring of controlled products, rules of origin, freight tariffs, transport statistics, price monitoring, quota controls, compilation of national accounts, and economic analysis.  The HS guides the numbering and description of approximately 8,500 tariff items in Canada’s Customs Tariff Schedule.

 The Canada Border Services Agency (CBSA) wishes to advise that the “PDF format; By Chapter – T2012”, “PDF format; Complete Tariff T2012”, and the “Microsoft Access® format” for the January 1, 2012 Department Consolidation of the Customs Tariff (Tariff) are now available on the Customs Tariff page of the CBSA website.

The Honourable Jim Flaherty, Minister of Finance, recently announced further tariff relief for Canada’s manufacturers, which will eliminate 70 tariff items and is expected to save Canadian businesses about $32 million annually. This initiative eliminates customs duties on certain imported products used by Canadian businesses operating in a variety of manufacturing sectors including food processing, furniture and transportation equipment.

 In Canada’s Economic Action Plan, the Government eliminated all tariffs on imported machinery and equipment and manufacturing inputs to make Canada a tariff-free zone for industrial manufacturers by 2015. In Budget 2010, the Government committed to consulting with Canadians to identify areas where further trade liberalization could take place. The tariff relief announced recently is a result of those consultations.

 Since 2009, the Government has eliminated more than 1,800 tariff items and provided more than $435 million in annual tariff relief to Canadian businesses.

Agriculture Minister Gerry Ritz welcomed news last week that Japan is taking steps that could lead to improved access for beef imports from several countries, including Canada. Japan will review its domestic and import regulations for beef which may lead to expanded access for Canadian beef. In 2010, Canada’s exports of beef to Japan totalled $81.4 million.

 A significant increase in exports is expected with expanded access.

The Supreme Court of Canada has upheld the federal compositional standards for cheese after they were challenged by two cheese manufacturers earlier this year. Compositional standards for food products, such as cheese, describe basic requirements so that these food products have a uniform composition and meet consumers’ expectations.. They also maintain a licensing system for cheese importers.

 The ruling also underscores the Government of Canada’s continued support for the supply management system. The revised compositional standards for cheese apply to cheese marketed in import, export or interprovincial trade.