Regulatory and Compliance News

On January 1st, 2022, amendments to the Harmonized System (HS) nomenclature by the World Customs Organization (WCO) will enter into force.

The updated version of the 2022 Customs Tariff (T2022-1) contains 351 sets of amendments covering a wide range of goods throughout multiple chapters. These are triggered by various factors to account for environmental concerns, technological advancements and innovation, health and safety considerations, food and agriculture and changes in global trade.

The Canada Border Services Agency (CBSA) has provided a Statistical concordance table at the 10-digit level in Microsoft Excel format, listing out all of the affected HS classification codes changes from 2021 to 2022 Customs Tariffs.

2022 Customs Tariff Key Changes

Advance and National Customs Rulings

Any importers who may currently hold an advance ruling or national customs ruling for tariff classification or origin,
should be advised that it may not be valid as of January 1st, 2022 when the 2022 Customs Tariff comes into effect.

“Where the tariff classification and/or the origin (when applicable) of the goods subject to a ruling may be impacted, the
CBSA strongly recommends that ruling recipients submit a request for validation of a ruling to the CBSA.” (CBSA CN 21-20)

What Should Importers Do?

• Review the 2022 Customs Tariff changes and identify if any of your goods are impacted (see Concordance table)
•  Contact Schenker and communicate which commodities and HS code changes are affecting your imports, so we can update our commodity database for future shipments in 2022.
• Determine if you have any CBSA HS rulings, which could be affected by the HS changes and contact Schenker’s Consulting team to help you obtain a revised ruling.

How can Schenker help?

• Analyze your imports to see if the goods you have imported are affected by the HS changes and update our records accordingly.
• Help you classify your products with correct HS classification in compliance with CBSA
• Assist you to update your existing Advance/National Customs Rulings with CBSA or obtain new ones.
• Assess your goods and HS classification changes against any Free Trade Agreements (FTA) and certificates requiring updates.
• Submit any FTA duty refund opportunities to CBSA

CONTACT SCHENKER FOR ASSISTANCE:

Email your Key Account Manager (KAM) or Schenker’s Client Services team at schenkercustoms.cs@dbschenker.com

Contact our Consulting team at consulting.canada@dbschenker.com

Download: 2022 CBSA CUSTOMS TARIFF CHANGES_Effective Jan 1 2022

On August 3rd, 2021, the Canada Border Services Agency (CBSA) made its final determination of dumping and subsidizing under the Special Import Measures Act (SIMA) of certain upholstered domestic seating originating in or exported from China and Vietnam.

Due to insignificant amounts of subsidy or no subsidy, the CBSA decided to terminate the subsidy investigation for certain exporters based on the below listing:

From China by the following exporters:

• Anji Hengrui Furniture Co., Ltd., Anji Hengyi Furniture Co., Ltd., Dongguan Tianhang Furniture Co., Ltd., Foshan
  DOB Furniture Co., Ltd., Foshan Xingpeichong Huitong Furniture Co., Ltd., Gu Jia Intelligent Household Jiaxing Co.,
  Ltd., Haining Fanmei Furniture Co., Ltd., (Hangzhou) Huatong Industries Inc., HTL Furniture (China) Co., Ltd., HTL
  Furniture (Huai An) Co., Ltd., Jiaxing Motion Furniture Co., Ltd., Man Wah Furniture Manufacturing (Huizhou) Co.,
  Ltd., Natuzzi (China) Ltd., Ruihao Furniture MFG Co., Ltd, Shanghai Trayton Furniture Co., Ltd., Violino Furniture
  (Shenzhen) Ltd.

From Vietnam, by the following exporters:

• Delancey Street Furniture Vietnam Co., Ltd., Koda Saigon Co. Ltd., Timberland Co., Ltd., UE Vietnam Co., Ltd.,
  Vietnam Hang Phong Furniture Company Limited, Wanek Furniture Co., Ltd., and Wendelbo SEA JSC.

The same day, the CBSA has also made final determinations of dumping and subsidizing of certain upholstered
domestic seating from China and Vietnam, with respect to exporters for which the investigations have NOT been
terminated.

The subject goods are typically classified under the following HS tariff classification numbers:

Please note that the SIMA provisional duties are in addition to any standard MFN duties payable based on the HS Code.

ACTIONS and LIABILITIES

Provisional duties will continue to be imposed on the imports of subject goods that were Customs released after May 5,
2021, per the margins as determined at the time of the preliminary determinations, to the date of the Canadian
International Trade Tribunal (CITT)`s decision, which will be issued by September 2, 2021. The CITT will be continuing its
inquiry on the question of injury to the domestic market.

Provisional countervailing duties will no longer be collected on imports of goods from exporters for whom the subsidy
investigation was terminated, and any provisional countervailing duty paid, or security posted by these importers for
those goods during the provisional period will be refunded by CBSA.

CITT FINDING IMPACTS

If the CITT finding determines that the dumped and subsidized goods have caused injury, CBSA will finalize the amounts of
anti-dumping and countervailing duties payable during the provisional period, any provisional duties paid in excess of the
margin of dumping and amount of subsidy, per the final determinations, will be refunded by the CBSA.

If the CITT finds that the subject goods have not caused or are not threatening to cause injury, all of the proceedings
related to the dumped and subsidized goods will be terminated and subsequent imports will not be subject to antidumping
and countervailing duties. All provisional duties paid, or security posted by importers will be refunded by CBSA.

FURTHER DETAILS AND INFORMATION

• The full CBSA Notice of final determinations showing the margins of dumping, amounts of subsidy and amount
  of subsidy per piece, broken down by exporter can be found in the following Appendix.
• The complete product definition of the subject goods can be found in Appendix 1 of the original CBSA notice
  link.
• The Statement of Reasons will also be available for additional information about the investigations within 15 days
  from August 3rd.

Sources and French Version:

CBSA Notice of Final Determination
CSCB Notice

For any additional information regarding the application of provisional duties on subject goods imported into Canada,
please refer to the CBSA officers contact information:

Kevin Lambertsen: 613‑954‑7341
Jeffrey Laplante: 613‑954‑7236
Email: simaregistry-depotlmsi@cbsa-asfc.gc.ca

Schenker is here to assist you with any questions you may have and provide support with this process. We can analyze
your imports to see if the goods you have imported may be part of the subject list.

Please contact our Consulting team consulting.canada@dbschenker.com

Download
CBSA Notice of Final Determinations: Certain Upholstered Domestic Seating from China and Vietnam

On July 27, 2021 Canada Border Services Agency announced that border officers voted in favour of a strike. Strike actions can or may cause delays in border clearances which will have a cascading impact on the entire industry.

Our processes have not changed, and we are committed to service delivery excellence. Schenker of Canada Limited will process your shipments timely and efficiently. Due to border service disruptions, we strongly recommend providing as much advance notice
as possible to the arrival of your goods.

To Check Your Shipments Release Status , Click on Tracking https://www.dbschenker.com/ca . If you re quire further assistance , please
contact us toll -free 1-800-711-3979

We thank you for your patience as we navigate this situation with CBSA and will continue to keep you advised as new information becomes available.

Official CBSA announcement and additional information can be found below.

Schenker of Canada Limited
____________________________________________________

LEGAL STRIKE POSITION – CBSA CONTINUED OPERATIONS

“Following the announcement made today, July 27, 2021, by the Public Service Alliance of Canada (PSAC), on behalf of the Customs and Immigration Union (CIU), the Border Services Officers (FB) bargaining unit has voted in favour of a strike.

As early as the first week of August, CBSA Border Services Officers, represented by PSAC, will be in a legal strike position as a result of an impasse in negotiations between their union and the Government of Canada.

Ninety percent (90%) of Border Services Officers have been identified as essential, meaning that they will continue to offer essential services if there is a strike. We expect that our officers will fulfill their duties with the highest level of integrity and professionalism.

CBSA operations will carry on as planned as the Agency continues to ensure the safety and security of Canadians while maintaining the flow of goods and services across the border. However, travellers and businesses could experience an increase in border wait times, picketing outside CBSA premises, and wearing of union-related accessories. The CBSA has been actively working to plan for these situations and has developed mitigation strategies to ensure operations will continue.

The CBSA will respond quickly to any job action or work disruption in order to maintain the safety and security of our border, ensure compliance with our laws, and keep the border open to facilitate the flow of legitimate goods and travel.”

Canada Border Services Agency / Government of Canada

Download: CBSA Legal Strike Position

On May 5, 2021, the Canada Border Services Agency (CBSA) made preliminary determinations of dumping and subsidizing under the Special Import Measures Act (SIMA) of certain upholstered domestic seating originating in or exported from China and Vietnam.

The subject goods are typically classified under the following HS tariff classification numbers:

Please note that the SIMA provisional duties are in addition to any standard MFN duties payable based on the HS Code.

Provisional duties will be payable on the subject goods that are Customs released on or after May 5, 2021 (includes goods which were in-transit to Canada prior to this date). Where amounts of dumping and/or subsidy are considered insignificant, the investigations will continue but provisional duties will not be payable.

The full CBSA Notice of preliminary determinations showing the estimated margins of dumping, estimated amounts of subsidy and total provisional duties owing by exporter can be found in the following Appendix.

The complete product definition of the subject goods can be found in Appendix 1 of the original CBSA notice link.

The Statement of Reasons is also available for additional information about the investigations.

The investigations are continuing and the CBSA must make final determinations or terminate the investigations by August 3, 2021.

Email for subjectivity opinions and duty assessment questions can be sent to:
Trade_Programs-Programmes_commerciaux@cbsa-asfc.gc.ca.

Prior to submitting a subjectivity opinion request, please review the ‘detailed product information’. Each request must be supported with essential information including, but not limited to, pictures, mill certificates, measurements, origin of the goods, etc. in relation to the specific product in question.

Failure to provide sufficient information will result in a rejection of the request by the CBSA.

Schenker is here to assist you with any questions you may have and provide support with this process. We can analyze your imports to see if the goods you have imported may be part of the subject list.

Please contact our Consulting team consulting.canada@dbschenker.com

Download: CBSA__Certain Upholstered Domestic Seating_Notice of Preliminary Determinations_May 5, 2021

As of March 15, 2021, food importers of meat, fish, dairy, eggs, processed eggs, processed fruits or vegetables, honey, maple and fresh fruits or vegetables are required to correctly declare their valid Safe Food for Canadians (SFC) licence to CFIA to import food into Canada.

The Canadian Food Inspection Agency (CFIA) has advised that import transactions will be rejected automatically unless a valid Safe Food for Canadians (SFC) licence is entered in the Single Window Integrated Import Declaration (IID). The SFC licence holder may experience delays and have their related food shipment(s) held at the border until the error is addressed and the import transaction is resubmitted.

The following criteria must be met or food import transactions will be rejected:

1. the importer’s Safe Food for Canadians (SFC) licence number must be correctly declared, without mistakes or typos
2. the importer’s SFC licence must cover the activity of “Importing Food”
3. the importer’s SFC licence must cover the food commodity or commodities you intend to import

Imports of food categorized as manufactured foods such as confectionary, snack foods, beverages, coffee and tea, oils, dried herbs and spices, nuts and seeds, processed grain-based foods such as baked goods, cereals and pasta will NOT be affected.

You must obtain your SFC licence to import before presenting your shipment at the border, as you will not be able to obtain one at the border. If you currently hold a licence, review your licence profile in My CFIA portal to ensure that your licence has been issued for the activity of "Importing" and for the food commodity or commodities you intend to import.

License Validation Message

• English
• French

Useful references for food importers:

Importing food into Canada with a Safe Food for Canadians license

What to consider before applying for a Safe Food for Canadians license.

Refer to Annex A for more information on food commodities, including examples of the types of food included in each sub-commodity.

Information for Non-resident Importers

Download

SFCR License Requirements_March 15, 2021

On December 22, 2020, the Canada Border Services Agency published the United Kingdom Trade Continuity Remission Order (the Order).

The Order states that effective January 1, 2021, the United Kingdom (UK) and particular associated territories will no longer be covered by the Canada-EU Comprehensive Economic and Trade Agreement (CETA) by way of Brexit, but can still preserve the CETA duty rates for qualifying imports from the UK. These goods would now have to be accounted under the Most-Favoured-Nation (MFN) tariff treatment.

To continue to benefit from the remission of duties, importers must instead cite the Remission Order #20-1135 on their B3, Canada Customs Coding Form. The remission applies to qualifying goods until the day on which the new Canada-United Kingdom Trade Continuity Agreement (CUKTCA) enters into force.

To qualify for the remission, importers must ensure that the products still meet the rules of origin under the CETA agreement and are responsible to obtain documentation in support of the claim for remission under the Order.

Any importers who have goods originating from the UK, which were in transit to Canada prior to January 1, 2021, may still claim the CEUT preferential tariff treatment.

For additional information, please access the full CBSA Customs Notice 20-39.

Schenker is here to assist you with any questions or concerns you may have and provide support.

Please contact our client services team schenkercustoms.cs@dbschenker.com

Download
Customs Notice 20-39: United Kingdom Trade Continuity Remission Order

On December 21, 2020, the Canada Border Services Agency (CBSA) initiated investigations under the Special Import Measures Act (SIMA) regarding the dumping and subsidizing of certain upholstered domestic seating originating in or exported from China and Vietnam.

The investigation is a result of a complaint filed by Palliser Furniture Ltd. (Winnipeg, MB), and supported by several other companies.

The subject goods are typically classified under the following HS tariff classification numbers:

9401.40.00.00
9401.61.10.10
9401.61.10.90
9401.71.10.10
9401.71.10.90

The complete product definition of the subject goods can be found in Appendix 1 of this CBSA notice link.

The Canadian International Trade Tribunal (CITT) has begun preliminary injury inquiry to determine whether such imports are causing harm to Canadian producers. A decision will be issued by February 19, 2021. The CBSA is also simultaneously investigating whether the imports are currently being sold in Canada at unfair and/or subsidized prices. Their preliminary decision will be made by March 22, 2021.

If the CITT determines that the goods are causing injury, and CBSA determines that the goods are dumped and/or subsidized, there may be provisional duty applied to future shipments. If no injury, dumping or subsidizing is determined, the investigations will be terminated.

Some importers may have already received a letter from CBSA, identifying them as a potential importer of the subject goods. The request would include submission of an Importer Request for Information (RFI) with necessary product information by a defined timeline in order to establish the normal value and export price of the subject goods.

Submissions by any parties who are opposed to the complaint must be filed by no later than noon (EST), on January 18, 2021. The complainant and supporting parties may make submissions in response to the submissions of parties opposed to the complaint not later than noon (EST), on January 25, 2021.

Detailed information can be found in the CITT Notice Of Preliminary Injury Inquiry.

The Statement of Reasons is also available for additional information about the investigations.

Schenker is here to assist you with any questions you may have and provide support with this process. We can analyze your imports to see if the goods you have imported may be part of the subject list.

Please contact our client services team schenkercustoms.cs@dbschenker.com

Download
CBSA_Initiation of Investigations_Certain Upholstered Domestic Seating

The United States has made a unilateral decision to drop the 10% tariffs on Canadian non-alloyed unwrought aluminum exports to the U.S., retroactive to September 1, 2020. The US expects that trade of these goods will normalize in the last four months of 2020. The US set monthly targets for acceptable volumes of aluminum imports from Canada without tariffs and may re-impose the tariffs if shipment volumes exceed 105% of the monthly shipment volumes.

Canada was prepared to impose 10% Surtax countermeasures on various US aluminum import products, effective September 16, 2020, but has since withdrawn this planned retaliation. The Canadian Government has declared to the USTR (United States Trade Representative), that if they were to impose tariffs in the future, Canada will retaliate with dollar-for-dollar reciprocal countermeasures.

For further details, reference the below source links:

USTR Statement on Canadian Aluminum

CBC News: U.S. calls off tariffs on Canadian aluminum —for now

Download

Aluminum Tariffs Dropped_Sept 15, 2020

President Donald Trump has announced that he will restore a 10% tariff on certain Canadian aluminum imports into the U.S. effective August 16, 2020. These surtaxes are similar to the tariffs that were imposed in July 2018 and later eliminated in May 2019.

In response, Canada will impose dollar-for-dollar surtax countermeasures against imports of aluminum and aluminum-containing products originating from the U.S.

Certain Canadian importers and exporters will be affected by these regulatory measures, as a 10% surtax will be applicable on subject goods, effective September 16, 2020. The surtaxes will not be applicable to U.S. goods which are in transit to Canada on the day when they come into force.
 

A potential list of aluminum products has been proposed by Global Affairs Canada and Finance Canada, from which the goods subject to surtax will be drawn from.

Some of these goods include the following:

• Aluminum ore, wire and plates
• Aluminum structures and parts
• Aluminum beverage cans
• Household appliances like refrigerators and washing machines
• Household items like tinfoil, pots and scouring pads
• Sports equipment like bicycles and golf clubs
• Construction material like nails, staples and screws
• Metal furniture

Canadian businesses will have until September 6, 2020 to submit written comments, inquiries and concerns to fin.tariff-tarif.fin@canada.ca to support with their feedback to the Government of Canada, or request for any exclusions of the goods on the potential tariff list.

For further details, reference the source link: Government of Canada

What actions should affected companies take?

• Assess the impact of the new surtaxes on your imports and exports
• Evaluate any affected goods against new potential sourcing strategies to avoid the additional surtaxes
• Examine any trade related risks associated with existing contracts with your suppliers and customers

How can Schenker help?

• Conduct an impact analysis against your import commodities to assess whether your goods are affected
• Review your HS codes to identify any potential tariff misclassifications resulting in lower duties
• If you meet the requirements of the Duties Relief or Duty Drawback programs, you may be eligible for refunds, including surtaxes, which we can assist you with recovering.

Contact our Client Services or Consulting teams for assistance

• Client Services (KAMs): schenkercustoms.cs@dbschenker.com
• Customs Trade Consulting: consulting.canada@dbschenker.com

Download

Canada's Countermeasures on US Aluminum Tariffs

CUSMA will enter into force on July 1, 2020, replacing the North American Free Trade Agreement (NAFTA). There will be no transition period. Currently used NAFTA Certificates of Origin will no longer be valid for imports after June 30, 2020.