Customs Brokerage News

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impose 10% Surtax countermeasures on various US aluminum import products, effective September 16, 2020, but has since withdrawn this planned retaliation.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

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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

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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.

CBSA has made some recent changes to Single Window, which affect all brokers and importers transmitting entries via the Integrated Import Declaration (IID).

The SWI IID Regulated Commodities Data Element Matching Criteria Tables (follow link) can be utilized by Trade Chain Partners to identify any commodities, which are regulated or co-regulated by one or multiple Participating Government Departments or Agencies (PGAs) programs. The referenced tables should be used in combination with Chapter 23 of the SWI IID Electronic Commerce Client Requirements Document (ECCRD) to ensure that all mandatory importation data and LPCO (License, Permit, Certificate and Other) images are presented.

Please consider that the HS classification codes are not the only determining factor in whether a commodity is regulated by a PGA program(s). Additional commodity codes such as Intended Use Codes (IUC), Canadian Product Category Codes (CPC), and LPCOs may also be required.

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Changes to ECCRD-Data Element Matching Tables download

CBSA has announced a phased decommissioning approach to the CBSA Accelerated Commercial Release Operations Support System (ACROSS). The decommissioning plan has been updated to reflect the initial go live date of April 1st to the new date of October 2019.

CBSA’s expectations have not changed and they are encouraging the Trade Chain Partners to continue submitting via SWI IID in order to increase transactional volumes and to avoid any potential delays at the border.

Schenker of Canada Limited will be moving forward with the implementation of SWI as of April 1st and will continue to move forward to CBSA’s requirement to transmit SWI data via the IID release process.

If you have any questions or concerns please contact us at Schenker.cs@dbschenker.com

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SWI decommissioning plan of the CBSA

Please be advised effective January 15, 2019 there will be changes to the Safe Food for Canadians Regulations (SFCR)

They have implementation a new licensing requirements which may impact your food imports into Canada.

The SFCR has implemented this new regulation to ensure food safety by consolidating 14 sets of regulations into 1.

This will allow them to focus on risk management and prevention of unsafe food in the market place.

The regulations will require licensing as well as well preventive controls.  CFIA has announced a phased in approach for additional requirements over a 12 – 30 month time period depending on the type of food, type of activity and size of your business.

We encourage you to visit & review the listed links and their associated websites, which contain additional information on this important initiative. 

CFIA - Safe Food for Canadians Regulations

http://inspection.gc.ca/food/sfcr/eng/1512149177555/1512149203296

Getting started: Toolkit for businesses

http://www.inspection.gc.ca/food/sfcr/toolkit-for-businesses/eng/1427299500843/1427299800380

CFIA Timelines & Interactive Tools

http://www.inspection.gc.ca/food/sfcr/timelines/eng/1528199762125/1528199763186

Customs Notice 19-01: Canadian Food Inspection Agency (CFIA)'s Safe Food for Canadians Regulations (SFCR) coming into force on January 15, 2019

https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn19-01-eng.html

Please be advised that the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement between Canada and the following 10 countries: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

The comprehensive tariff elimination will be implemented in a phased-in approach, as these countries ratify their agreements.

A new preferential tariff treatment (Code 33), called the ‘Comprehensive and Progressive Trans-Pacific Partnership Tariff (CPTPT)’ will be applied to originating imports, provided that the required proof of origin (certification of origin) with required data elements is placed on any import documents.  This information may be completed by the importer, exporter or producer of eligible goods and the certification of origin must be in the importer’s possession in order to claim CPTPT benefits.

On December 30, 2018, the CPTPP entered into force for the first six countries, which have ratified the agreement (Australia, Canada, Japan, Mexico, New Zealand and Singapore).

The CPTPP will come into force for Vietnam on January 14, 2019.

The tariff elimination for the subsequent CPTPP countries will be communicated once those countries ratify the Agreement.

We encourage you to review the links below and their associated websites, which contain additional information on this important agreement.  

Global Affairs - Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/cptpp-ptpgp/index.aspx?lang=eng

CBSA Customs Notice 18-22 - Implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn18-22-eng.html

Surtax Imposition on Certain Products Originating in the United States- Customs Notice CN18-08 Effective July 1st, 2018

Effective Friday, March 23, 2018, US Customs & Border Protection (CBP) implemented the additional duties required by the Presidential Proclamations issued for articles of steel and aluminum.

U.S. Customs & Border Protection Increases MPF and Other User Fees and Extends PSC Filing Period.

Please note the following regulatory changes recently announced by U.S. Customs and Border Protection.

CBP Increases MPF and Other User Fees

 U.S. Customs & Border Protection announced an increase of the merchandise processing fee (MPF) and other user fees effective January 1, 2018. While the assessed rate of .3464 percent of the entered value of merchandise does not change, the minimum and maximum limitations for the MPF are adjusted. The minimum increases from $25 to $25.67 and the maximum increases from $485 to $497.99. The MPF for electronically transmitted informal entries increases from $2 to $2.05. Authorized by the Fixing America’s Surface Transportation Act (FAST Act) signed in December 2015, fees will be reviewed annually and may be adjusted to account for inflation.

CBP Extends PSC Filing Period

U.S. Customs & Border Protection announced it will provide additional time for importers to file post-summary corrections (PSCs). Effective November 1, 2017 a PSC may be submitted within 300 days of the date of entry or 15 days prior to the scheduled liquidation date, whichever is earlier. Previously, the PSC filing deadline was within 270 days of the entry date but not within 20 days of the scheduled liquidation date. PSCs are amendments to entry summary data for entries that have been fully paid, and are transmitted electronically via the Automated Broker Interface (ABI).

Please contact your local Schenker brokerage office if you have questions regarding these changes.

CBP regulatory changes (document)

Last modified: 11.12.2017