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A Look Back To Trade Regulations In 2013

This week we look back on what has been an active year in international trade and customs regulations. We have pulled together some of the significant regulatory developments that shaped the year. In order to keep this post to a readable length, we’ve kept the details to a minimum and have linked to articles for those who wish to explore these issues further.

January:

CBSA Releases Targeted Priorities

Canada Border Services Agency (CBSA) released their semi-annual list of all of active compliance verification priorities, in the interest of transparency and the promotion of self-compliance.

Canada Increases And Harmonizes Low-Value Shipment Threshold With The United States

Canada and the United States increased and harmonized the value thresholds for expedited customs clearance to CDN$2,500 and USD$2,500 respectively.

CFIA Announces Centres Of Expertise

The Canadian Food Inspection Agency announced that it will be creating sixteen targeted Centres of Expertise across Canada to provide industry and CFIA inspectors with better, more consistent access to information and advice over the next few years.

Update: Anti-Dumping And Countervailing Measures In Force

Updates were made to CBSA’s Anti-dumping website, outlining current anti-dumping measures that are in force against goods being imported into Canada.

New Requirements Imposed As FDA Proposes Two New Rules

On January 4th, 2013, the U.S. Food and Drug Administration (FDA) proposed two new regulations – Preventive Controls for Human Food  and Standards for Produce Safety aimed at preventing food contamination.

Read more: New Requirements Imposed As FDA Proposes Two New Rules

U.S. And Mexico Sign Joint Work Plan For Mutual Recognition Of Trusted Trader Programs

U.S. Customs and Border Protection (CBP) and Mexico’s Tax Administration Service (SAT) signed a Joint Work Plan that laid out the path to mutual recognition of the two countries’ Authorized Economic Operator programs: CBP’s Customs-Trade Partnership Against Terrorism (C-TPAT) and SAT’s New Certified Companies Scheme (NEEC). 

February:

Proposed Changes To Canada’s General Preferential Tariff

The Department of Finance produced a list of countries that they intend to remove from the list of countries currently entitled to this preferential tariff.

Enforcement Of Importer Security Filing Final Rule

The final rule on the Importer Security Filing (ISF) come into effect February, 2013.

Read more: Enforcement Of Importer Security Filing Final Rule

Order Amending The Export Control List

Canada finalized the regulatory process to amend the Export Control List which came into effect on March 15, 2013. 

March:

ACI eManifest Informed Compliance Period Extended

On March 6, 2013, CBSA announced that the informed compliance period, which was initially supposed to end on November 1, 2012 would now be extended into the fall of 2013.

Read more: ACI eManifest Informed Compliance Period Extended , Use The ACI eManifest Implementation Delay To Your Advantage

U.S. Customs And Border Protection Cargo Priorities Under Sequestration

In preparation for operating under sequestration, CBP redirected resources toward only the most critical, core functions within (OFO) and discontinued or postponed certain important but less critical activities in an effort to reduce budget expenditures.

Tariffs Raised On Imports From 70 Countries – But Dropped For Sports Equipment And Baby Clothes

The Canadian government announced a hike in duties on imported goods from more than 70 countries including China to help retire the deficit faster.

April:

Changes To The Canadian Import Requirements For Aquatic Animal Imports

Sweeping changes were made to the Canadian Import Requirements for Aquatic Animal Imports under the National Aquatic Animal Health Program (NAAHP). As of April 8, 2013, import permits are required for certain targeted species whether they are live, dead, smoked, etc.

Read more: New Aquatic Animal Import Regulation Enforcement Begins April 8

Obama Picks Goldman Sachs Exec For Ambassador To Canada

U.S. President Barack Obama selected Bruce Heyman, a partner at the investment firm of Goldman Sachs in Chicago to be the new U.S. ambassador to Canada.

CBP Eases Process For Claiming Drawback On Unused Merchandise

U.S. Customs and Border Protection announced a change that should make it a little easier to claim unused merchandise drawback.

Exceptions To CFIA Directive On Entry Requirements For Wood Packaging Material Into Canada

Wood packaging materials (WPM) crossing between the Canadian and US border are still exempt from ISPM 15 requirements. However there are specific movement restrictions, both in Canada and the United States, for ash lumber that is used in the manufacture of pallets and other wood packaging materials.

May:

Manifesting And Entry Of Residue Found In Instruments Of International Traffic Into The USA

In July 2009, U. S. Customs and Border Protection issued a ruling requiring all containers (all modes of transportation) to begin filing entry for any residue remaining at the time of entry into the United States.

Read more: Manifesting And Entry Of Residue Found In Instruments Of International Traffic Into The USA

United States And Burma Sign Trade And Investment Framework Agreement

United States and Burma signed a Trade and Investment Framework Agreement (TIFA), creating a platform for ongoing dialogue and cooperation on trade and investment issues between the two governments.

Read more: United States and Burma Sign Trade and Investment Framework Agreement

CBSA AMPS Master Penalty Document Revised

The CBSA revised the guidelines for AMPS C080-C083 and C350-C353.

June:

First-Ever Binational Border Infrastructure Investment Plan Announced

Canada and the United States announced the first-ever joint Canada-United States Border Infrastructure Investment Plan (BIIP).

Pacific Alliance Agrees To Eliminate Tariffs For 90 Percent Of Goods Beginning July

The Alliance of the Pacific bloc that includes Colombia, Mexico, Peru and Chile on Thursday agreed to eliminate tariffs on most goods to promote free trade between the countries and increase exports to Asia.

FDA Issues Final Rule: Information Required In Prior Notice Of Imported Food

The U.S. Food and Drug Administration issued a final rule that adopts, without change, the interim final rule, Information Required in Prior Notice of Imported Food (issued May 5, 2011).

Canada, Chile Forge New Deal On Beef Exports, Immigration

Canadian beef exporters will have full access to the market in Chile as part of a new partnership between the two countries.

Canada And Mexico Accept Invitations For The Trans-Pacific Partnership

On June 19, 2012 at the G20 summit meeting in Mexico, Canada announced that they would be joining the ongoing Trans-Pacific Partnership (TPP) trade negotiations.

Read more: Canada And Mexico Accept Invitations For The Trans-Pacific Partnership

Canada Bans All Imports, Exports With Latest Iran Sanctions

Canada announced new sanctions against Iran, including a total ban on imports and exports.

CBP Enters Next Phase Of Importer Security Filing

Preparation for Liquidated Damages Phase Begins

Trade Deal Struck To Sell B.C. Cherries To China

An agreement signed between the governments of Canada and China in Beijing commits the two countries to work on access for a number of specific Canadian foods, including cherries. British Columbia produced 94 per cent of Canada’s sweet cherries in 2010, with top export markets including Taiwan and Hong Kong.

Importing Live And Raw Molluscan Shellfish

South Korean shellfish shippers from the Interstate Certified Shellfish Shippers List (ICSSL) are allowed to start exporting to Canada frozen shucked oysters that were harvested on or after June 19, 2013.

FDA Proposes To Finalize Food Safety Rules Within Two Years

The Food and Drug Administration and the Center for Food Safety were unable to meet a June 10 deadline for agreeing on a timeframe for promulgating a number of regulatory changes required by the Food Safety Modernization Act. Instead the two sides offered up differing visions for when the rules would be completed, leaving it up to a federal judge to render a final decision.

CBSA Releases Targeted Priorities

Canada Border Services Agency (CBSA) released their semi-annual list of all of active compliance verification priorities, in the interest of transparency and the promotion of self-compliance.

July:

Canada Strengthens Partnership With ASEAN

Canada announced details of additional funding commitments for ASEAN-Canada cooperative initiatives, including three development initiatives.

New Canadian Legislation In Place To Strengthen Rail Freight Service

The new Fair Rail Freight Service Act became law.

Canada Expands Customs Self-Assessment Program To U.S. Importers

The Canada Border Services Agency amended its regulations to allow U.S. resident importers to participate in Canada’s Customs Self-Assessment program.

CBP To Refuse Entry To Consumer Products And Industrial Equipment On Energy Issues

U.S. Customs and Border Protection issued a final rule providing that, effective Aug. 5, admission into the U.S. customs territory will be refused to imports of consumer products and industrial equipment found to be noncompliant with energy conservation and labeling standards pursuant to the Energy Policy and Conservation Act of 1975 and its implementing regulations.

Customs And Border Protection, Federal Maritime Commission Sign Agreement To Share ACE Data

CBP announced the signing of an Automated Commercial Environment-International Trade Data System (ACE-ITDS) memorandum of understanding with the Federal Maritime Commission (FMC) to share ACE data in order to strengthen the balance of facilitation and enforcement regarding the regulation of ocean carriers and other entities involved in ocean trade.

FDA Releases Two Major Rules To Boost Oversight Of Imported Foods

The U.S. Food and Drug Administration released two long-awaited rules Foreign Supplier Verification Programs and the Accreditation of Third-Party Auditors aimed at improving the safety of imported foods, which now make up about 15 percent of the U.S. food supply.

Importer Security Filing (ISF) “10+2” Begins July 9, 2013

U. S. Customs and Border Protection began the liquidated damages phase of the Importer Security Filing (ISF) enforcement process on Jul 9, 2013.

Read more: Importer Security Filing (ISF) “10+2” Begins July 9, 2013

Generalized System Of Preferences Expired July 31, 2013

The GSP is a program that must be re-designated on a regular basis by the U.S. Congress. On occasion, Congress neglects to extend the program, and it may be allowed to lapse again this year.

Read more: Generalized System of Preferences Expired July 31, 2013

August:

Farm Products Council Of Canada Announces Beef Import Levy

An amendment to the Beef Cattle Research, Market Development and Promotion Levies Order will see the current levy of $1 per head of cattle for beef marketed in Canada applied to importers.

Food Facility And Importer Reinspection Fees Set For 2014 But May Not be Assessed

The Food and Drug Administration announced its fiscal year 2014 fee rates for certain domestic and foreign food facility reinspections, failures to comply with a recall order, and importer reinspections.

Update To Memorandum D11-4-9, Goods Originating In Mexico, Deemed To Be Directly Shipped To Canada For The Purposes Of The General Preferential Tariff (GPT)

Memorandum D11-4-9, Goods Originating in Mexico, Deemed to be Directly Shipped to Canada for the Purposes of the General Preferential Tariff (GPT) has been updated and is available on the CBSA web site.

Easy Steps For AES Participation

The Automated Export System (AES) is the paperless way to file the Electronic Export Information (EEI) and the ocean manifest information directly to CBP.

New Regulations In China Increase Cost Of Prepaid Freight

The Chinese government introduced a new VAT tax for all logistic activities inside China as of August 1, 2013.

Canada Deepens Commercial Ties With Kuwait

Minister of International Trade, during a visit to Kuwait to deepen Canada’s trade and investment ties with that country, announced that the first meeting of the Canada-Kuwait Joint Committee on Trade and Investment Co-operation to be held in the fall.

Canada And Turkey Commit To Working Toward Increased Trade And Investment

Canadian and Turkish Ministers announced the intention to create a joint economic and trade committee involving Canada and Turkey.

September:

Canada Expands And Modernizes Free Trade Agreement With Chile

Canada’s expanded free trade agreement with Chile comes into force.

CBSA Announces The Implementation Of Customs Controlled Areas

The Canada Border Services Agency announces the implementation of  Customs Controlled Areas (CCA) within some of its designated ports of entry.

Additional Eligibility Requirements For The Courier Low Value Shipment (LVS) Program

Canada Border Services Agency implemented additional eligibility requirements for participation in the Courier Low Value Shipment (LVS) Program.

U.S. Slaps High Anti-Dumping Tariffs On Chinese Wood Products

The United States slapped high anti-dumping tariffs on Chinese hardwood and decorative plywood products, hitting nearly $750 million worth of imports from China.

Read more: U.S. Slaps High Anti-dumping Tariffs on Chinese Wood Products

CBP To Pilot Expanded Trusted Trader Program, Pursuing MRAs With Mexico And China

U.S. Customs and Border Protection is hoping to begin this fall the first phase of a Trusted Trader program under which it will eventually manage both supply chain security and trade compliance.

Government Of Canada And Port Metro Vancouver Announce Funding For New Marine Container Examination Facilities

Ministers announce infrastructure investments that will strengthen the border, improve marine container inspection capacity, and improve efficiency at Port Metro Vancouver (PMV)

Canada Welcomes The Establishment Of A WTO Compliance Panel On U.S. Country Of Origin Labelling Dispute

Canadian Ministers pleased with the establishment of a World Trade Organization (WTO) compliance panel on U.S. Country of Origin Labelling (COOL) on September 25, in Geneva.

Certain Meat Products – CFIA Letters Of Exemption

As of September 30, 2013, CFIA no longer allowed any new exemptions that permit the importation of foods that contains more than 2% meat products.

October:

Sequestration: U.S. Federal Government Shutdown

Annual funding for the U.S. federal government expired on September 30 causing the government to  shutdown.

Read more: How The Federal Government Shutdown Will Affect Imports Into the United States

Information Update: US Export Control Reform

This exercise represents one of the most significant reforms to the US export control regime in the past 40 years.

Canada Reaches Historic Trade Agreement With The European Union

Canada and the European Union (EU) reached an agreement in principle on a comprehensive trade agreement that will significantly boost trade and investment ties between the two partners, and create jobs and opportunities for Canadians.

Read more: Breaking Down Barriers With The Canada | EU Trade Agreement

Manifesting And Entry Of Residue Found In Instruments Of International Traffic Into The USA

U. S. Customs and Border Protection will begin enforcement of the requirement to manifest and enter residual cargo beginning November 25, 2013.

Read more: Manifesting And Entry Of Residue Found In Instruments Of International Traffic Into The USA

Mexico Considering Major Tax Reform, Could Impact Trade Flows

The Mexican President submitted for legislative approval of a series of initiatives that would constitute a major overhaul of the Mexican tax system.

ACI eManifest Informed Compliance Period Extended

CBSA announced that eManifest requirements for highway and rail carriers will not be mandatory in fall 2013, due to timelines associated with regulatory processes.

Read more: ACI eManifest Informed Compliance Period Extended

FDA Proposes Regulations To Ensure Safety Of Animal Food

The Food and Drug Administration proposed new regulations designed to improve the safety of animal food. Comments on this proposed rule are due no later than 120 days after Oct. 28 (i.e., approximately Feb. 26, 2014).

November:

Canadian Government Launches New International Trade Plan

Canada released a new trade plan that reflects the changing global landscape, focuses on core Canadian strengths, aligns Canada’s trade, development and foreign policy tools to advance commercial interests around the world, and sets concrete targets to grow the presence of Canada’s small and medium-sized enterprises (SMEs) in emerging markets.

Canada’s General Preferential Tariff Withdrawal Order (2013 GPT Review)

Canada’s Governor General in Council issued the annexed General Preferential Tariff Withdrawal Order (2013 GPT Review), which withdraws entitlement to GPT benefits, effective January 1, 2015, from 72 higher-income and trade competitive countries (out of current 175 beneficiaries).

Update To List Of Pests Regulated By Canada

The List of Pests Regulated by Canada was updated to include 15 invasive plant species considered to be regulated pests in Canada.

Test To Ease Entry Of Containers With Cargo Residue Postponed Indefinitely

Slated to have begun on Nov. 25, U.S. Customs and Border Protection delayed indefinitely the launch of a test concerning the manifesting and entry of residue found in instruments of international traffic.

China Imposes Dumping Penalties On Pulp Imports From US, Canada, Brazil

China to impose punitive measures on certain pulp products from the United States, Canada and Brazil for alleged dumping in the latest trade dispute with foreign partners.

December:

Canada Launches Investment Negotiations With Macedonia

Canada and Macedonia have agreed to begin negotiations toward a foreign investment promotion and protection agreement (FIPA).

Softwood Lumber Exports To US: 2014 Export Allocation Methodologies

The Export and Import Control System released a notice to exporters of softwood lumber to the United States.

We hope these highlights give you a chance to look back over the year. Thank you to all of you who visited the Trade News section of our website and for reading and supporting the Your Broker Knows blog through the year. We hope you will continue to read 2014’s posts.

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About Author
Adriana Petty

Her career in the international trade industry began almost 8 years ago while she simultaneously worked her way to earning a Marketing Management Certificate from Kwantlen Polytechnic University's (KPU) School of Business and most recently an Associate Certificate in Graphic Design With Distinction from British Columbia Institute of Technology (BCIT). Having reached her goal of amalgamating her fields of study to become a Marketing & Graphic Design powerhouse, Adriana spearheads the organization’s education program, external speaking engagements and internal staff events while providing support to the Graphic Design team. The education program and industry events at which we speak focus on teaching importers, exporters, carriers, and the like, the importance of customs compliance while moving commercial goods across international borders. Our messaging boasts efficiency, accuracy and compliance above all else with the least amount of exposure to delays. In 2015, she joined the Marketing and Events Committee for The American Chamber of Commerce – Pacific Chapter where she volunteers her time at events from inception to take-down. A creative at heart, she loves challenging herself, and thus is consistently known for growing her multi-disciplined training, responsibilities, and expanding her knowledge.

While we strive for accuracy in all our communications, as the Importer of Record it is incumbent upon your company to ensure that you are aware of the requirements under the new regulations so that you maintain compliance as always.