US Customs – Section 301 China origin goods

On August 18, 2017, the Office of the United States Trade Representative (USTR) initiated an investigation under Section 301 of the Trade Act of 1974 into the government of China’s acts, policies and practices related to technology transfer, IT and innovation.
On June 20, 2018 the USTR published a Notice Of Action, imposing a 25 % ad valorem rate of duty shown on LIST 1 of 818 HTSUS numbers.
On August 16, 2018 the USTR published a Notice of Action for the imposition of 25 % additional import duties on LIST 2, affecting an additional 279 HTSUS numbers.
On September 21, 2018 the USTR published a Notice Of Action for the imposition of a 10% additional import duty on LIST 3, affecting an additional 5745 HTSUS numbers. These lists only affect goods manufactured in China and are currently in effect.  Please see the link below for the complete list of HTSUS numbers affected by Chinese origin goods imported into the USA.
https://www.cbp.gov/document/guidance/section-301-htsus-reference-guide

SFCR Import License for Food – Coming into force January 15, 2019

Importers will require a licence from the Canadian Food Inspection Agency (CFIA) to import food into Canada.  Depending on the food commodity you are importing, the import licence requirements will apply as of January 15, 2019.  To find out if you require a licence refer to the Licensing Interactive Tool link  https://na1se.voxco.com/SE/93/SFCR_licence/?&lang=en and the Timelines resources link http://inspection.gc.ca/food/sfcr/timelines/eng/1528199762125/1528199763186 on the CFIA website.  You may consider starting the process now by creating an account on My CFIA, http://inspection.gc.ca/about-the-cfia/my-cfia/eng/1482204298243/1482204318353

Additional information on the SFCR for importers is available on the CFIA website http://inspection.gc.ca/food/sfcr/imports/eng/1526656151226/1526656151476 or you may call 1-800-442-2342.

US HS codes affected by US Presidential proclamation

The following HS codes are affected by the new US Presidential Proclamation for steel and aluminum products exported to the USA:

Steel Articles 25% Duty 
• 7206.10 through 7216.50 – Iron and non-alloy steel ingots, flat-rolled iron/steel, bars & rods, angles & shapes of iron/steel
• 7216.99 through 7301.10 – wire
• 7302.10 – Railway rails
• 7302.40 through 7302.90 – Railway fish plates, sole plates, cross ties or iron / steel.
• 7304.10 through 7306.90  – Tubes & pipes of iron/steel

Aluminum Articles 10% Duty
• 7601 – unwrought aluminum
• 7604 – aluminum bars, rods, and profiles
• 7605 – aluminum wire
• 7606 and 7607 – aluminum plate, sheet, strip, and foil (flat rolled products)
• 7608 and 7609 – aluminum tubes and pipes and tube and pipe fitting
• 7616.99.51.60 and 7616.99.51.70 – aluminum castings and forgings

Canadian surtax imposed as of July 1, 2018

The list of items below will no longer be applicable for NAFTA as of July 1st, 2018 in response to the US Presidential Proclamation of June 1st, 2018 for steel and aluminum products.  Table 1 will have an applicable surtax of 25% and Table 2 will have an applicable surtax of 10%.

https://www.fin.gc.ca/activty/consult/cacsap-cmpcaa-eng.asp

Implementation of the Canada-Ukraine Free Trade Agreement

With the exception of a few agricultural goods, the CUFTA will essentially eliminate the customs duties on all imports from the Ukraine, either immediately upon implementation of the agreement, or through a tariff phase-out for passenger automobiles.
Information regarding the CUFTA can be found at https://international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ukraine/index.aspx?lang=eng

The required proof of origin is a statement and is referred to in the CUFTA as the Origin Declaration.  The Origin Declaration and the various languages in which it may be completed are contained in Annex 3-B of Chapter 3 of the CUFTA.  This statement may be provided on an invoice or any other commercial document that describes the originating product in sufficient detail to enable it identification.

In order to claim Ukraine Tariff, importers must have in their possession the statement completed by the exporter in Ukraine.

New seizure policy for significant undervaluation of commercial goods

CBSA has a new seizure policy in regards to the significant undervaluation of commercial LVS goods (less than $2500 CAD) arriving with UPS, FedEx and DHL.  Many of you may have experienced vendors using an amount of $1 or less for samples or returned goods.  We usually have to contact you to request the true value of the goods.  CBSA will now be implementing a seizure policy for goods that have a significant undervaluation on the commercial invoice.  The actual value of the goods must be shown on the commercial invoice, even if they are samples or returns.  We suggest you make your vendors aware of the new policy.  Please see link below for further details.

 

Customs Notice 15-002

Rv55-5-2015-002-eng.pdf (PDF, 36 KB)

Implementation of the Canada-Korea Free Trade Agreement (CKFTA)

The Canada–Korea Free Trade Agreement (CKFTA) will be implemented on January 1, 2015. With the exception of a few agricultural goods, the CKFTA will essentially eliminate the customs duties on all imports from Korea, either immediately upon implementation of the agreement, or through a tariff phase-out.

1. Information regarding the CKFTA and the text of the agreement can be found on the Foreign Affairs, Trade and Development Canada Web site. https://international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/korea-coree/index.aspx?lang=eng

2. The CKFTA comes into force on January 1, 2015.

Tariff Provisions
3. Pursuant to the CKFTA, a new preferential tariff treatment is being introduced, namely the Korea Tariff. The newly assigned tariff treatment code is: Korea Tariff (KRT) – Code 30.

Proof of Origin
4. The required proof of origin is the Canada–Korea Certificate of Origin, available in English, French and Korean. In order to claim the preferential tariff treatment accorded under the CKFTA, importers must have in their possession the Canada–Korea Certificate of Origin completed by the exporter in Korea.
5. The Canada–Korea Certificate of Origin and the instructions for completing it will be made available prior to January 1, 2015, in English, French and Korean.

Shipping Requirements
6. Goods may be shipped from Korea, with or without transshipment, to Canada.

7. The transshipment conditions are contained in Article 3.16 of Chapter Three of the CKFTA.

Refunds
8. An application for a refund under paragraph 74(1)(c.11) of the Customs Act may be made within four years from the date the goods were accounted for under subsections 32(1), (3), or (5), in respect of goods that were imported on or after January 1, 2015.

General Preferential Tariff withdrawal order (2013 GPT review)

The General Preferential Tariff Withdrawal Order (2013 GPT Review) withdraws entitlement to GPT benefits, effective January 1, 2015, from the following 72 higher-income and trade competitive countries (out of current 175 beneficiaries), as identified in the December 22, 2012, Canada Gazette, Part I, notice:

  • Algeria 
  • American Samoa 
  • Antigua and Barbuda
  • Antilles, Netherlands 
  • Argentina
  • Azerbaijan
  • Bahamas
  • Bahrain
  • Barbados 
  • Bermuda
  • Bosnia and Herzegovina
  • Botswana
  • Brazil 
  • Brunei
  • Cayman Islands
  • Chile
  • China
  • Colombia
  • Costa Rica 
  • Croatia
  • Cuba
  • Dominica
  • Dominican Republic
  • Ecuador
  • Equatorial
  • Guinea
  • French Polynesia
  • Gabon
  • Gibraltar
  • Grenada
  • Guam
  • HongKong
  • India
  • Indonesia
  • Iran
  • Israel
  • Jamaica
  • Jordan
  • Kazakhstan
  • Kuwait
  • Lebanon
  • Macao
  • Macedonia
  • Malaysia
  • Maldives
  • Mariana Islands
  • Mauritius
  • Mexico
  • Namibia
  • New Caledonia and Dependencies
  • Oman
  • Palau
  • Panama
  • Peru
  • Qatar
  • Russia
  • Saint Kitts and Nevis
  • Saint Lucia
  • Saint Vincent and the Grenadines
  • Seychelles
  • Singapore
  • South Africa
  • South Korea
  • Suriname
  • Thailand
  • Trinidad and Tobago
  • Tunisia
  • Turkey
  • Turks and Caicos Islands
  • United Arab Emirates
  • Uruguay
  • Venezuela
  • Virgin Islands, U.S.A.

Proposed amendments to Canada’s general preferential tariff

The Government of Canada is intending to withdraw GPT eligibility from 72…

The Government of Canada is intending to withdraw GPT eligibility from 72 countries, effective July 1, 2014.
Some of the more significant GPT countries of interest include; China, Hong Kong, India and South Korea.

What is the General Preferential Tariff?

In the early 1970s, the United Nations Conference on Trade and Development recommended that developed economies grant autonomous and non-reciprocal tariff preferences to imports from developing countries under a Generalized System of Preferences (GSP) in an effort to promote the industrialization of developing countries.

Canada’s program, the General Preferential Tariff (GPT), was implemented in 1974 and is legislated in the Customs Tariff on a 10-year cycle. Most developed economies, including the United States, the European Union and Japan, also have GSP schemes for developing countries.

Why do we provide unilateral tariff preferences to developing countries?

The GPT was put in place with the policy intent of encouraging imports from developing countries to increase their export earnings and promote their economic growth.

Canada also provides duty-free access to imports from 49 least developed countries under the Least Developed Country Tariff (LDCT). This review does not contemplate changes to the LDCT.

http://www.canadagazette.gc.ca/rp-pr/p1/2012/2012-12-22/html/notice-avis-eng.html#d109