Trade Update: What’s Expected In 2022?
With 2021 coming to a close and the New Year fast approaching, we wanted to look forward to what we can expect for 2022 with regards to importing into Canada and shipping goods internationally.
Changes Expected in 2022 for Canadian Imports
Handling Of E-commerce Shipments Into Canada
With COVID-19 restricting movement world wide, e-commerce has boomed exponentially. Prior to COVID, governments worldwide had already realized the need to evolve trading tools to address the challenges specific to e-commerce models/platforms. Expect to hear more in 2022 about how your government is going to handle these shipments.
CARM Release 2 Expected
Canada Border Services Agency (CBSA) Customs Assessment and Revenue Management (CARM) program is set to take full effect. This program requires all commercial importers to be registered with a CARM Client Portal (CCP), have their own financial security vs the customs broker’s, and make their own payments directly to CBSA. Exporters will also be required to register in the CCP for their financial interactions with CBSA.
Organic Food Imports Into Canada Must Be Accompanied By Supporting Documentation
The Canadian Food Inspection Agency (CFIA) intends to update the border clearance documentation requirements for organic products. Currently, importers must attest that they have the organic certification on-hand and can produce it upon request. Beginning in 2022 (date TBA), the organic certification document will be required to be included with the customs clearance submission.
The Import of Trailers Into Canada May Require More Documentation
The Interim Order Modifying the Operation of the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations (Trailer Standards) is set to expire on May 3, 2022. If another interim order is not presented by the Minister, then box vans and non-box trailers will be subject to additional manufacturing and import standards as enforced by Environment and Climate Change Canada (ECCC). However the in-force date of this part of the regulation is also tied in to the US implementation of these standards.
Lamps Containing Mercury Will Have Stricter Import Guidelines To Follow
Environment and Climate Change Canada (ECCC) intends to introduce amendments to the Products Containing Mercury Regulations in Canada Gazette Part I in winter/spring 2022. These regulations prohibit and limit the amount of mercury in manufactured and imported products. These amendments are intended to reduce the amount of mercury content allowed in certain lamps, clarify labelling requirements and update reporting requirements.
Canada’s New Free Trade Agreement With Indonesia
Global Affairs Canada (GAC) has announced they are beginning Free Trade Agreement negotiations with Indonesia and the Association of Southeast Asian Nations (ASEAN). Expect to hear more about how these talks develop. Both of these agreements will create new market opportunities for Canadians.
Mandatory COVID 19 Vaccinations For Carriers
The Government of Canada has mandated that as of January 22, 2022, truck drivers will only be allowed to enter the country if they are fully vaccinated with one of the vaccines approved for entry into Canada. The US Government has issued rules requiring truck drivers at companies with 100 or more employees to be vaccinated or submit to weekly testing.
The trucking lobbies in Canada and the US are not happy and are warning that these new rules will only further hamper the already disrupted supply chain. It has been reported that there is a shortage of truck drivers on both sides of the border. The trucking lobbies argue that these mandates will only exacerbate this industry even more.
The American Trucking Association is seeking to block the US vaccine mandate. A US appeal court has issued a temporary stay of the mandate which the US Justice Department has appealed and a decision is expected any day.
It is reported that more than two thirds of goods traded between Canada and the US travel by commercial trucks. During most of the pandemic, truck drivers were considered essential service workers and were permitted to travel regularly across the border without proof of vaccination to keep the supply chains moving.
It’s still a “wait and see” regarding the US mandate but it appears that Canada is not budging.
Global Supply Chain Crisis
It is estimated that we will continue to see the fallout from COVID-19 in our supply chains for many months to come. Disruptions, elevated shipping costs, and significant transportation delays will extend well past the first quarter of the year by all accounts. It will take quite some time before we start to see the global supply chain stabilize, with significant improvement predicted towards the end of 2022.