I N D U S T R Y   R O U N D U P

 C O M P A N Y   C O R N E R

Driver shortages. Waiting time. Fuel surcharges…
Relax. There is a solution for truck freight headaches

The trucking industry is going through multiple speed bumps and the vibrations are being felt by anyone who uses truck freight.

Almost every week there is a new problem. It could be news that there is a shortage of drivers and trucks. Or there could be another horror story about unexpected – and sometimes suspect – charges for waiting time at the border. Costs for insurance and security related issues seem to just go up, up, up. And how many weeks go by without news about fuel surcharges?

If that is not enough, there will be another complication in 2006, when Advance Commercial Information (ACI) for trucking is scheduled for introduction. At that time, shipment data will need to be transmitted electronically to the Canada Border Services Agency (CBSA) one hour prior to arrival at the border. Failure to provide the necessary data within the stipulated time frame will result in delays and added costs.

So what’s the solution? Reduce the risks – and gain more control – by having us handle not only the customs clearance, but also the truck freight. When we handle both, you have the peace of mind that comes with knowing:

• we use reputable drivers and if there is ever any doubt about a waiting time charge, we have the information and expertise to check the legitimacy of the charge
• we can shop the truck freight market for reliable suppliers who offer a competitive price and reliable delivery
• we will be ready for ACI and ensure the same is true for the drivers we contract. In addition, if there ever is a problem, there will be no finger pointing between the driver and the customs broker. The buck stops with us.

For more information, contact Mark Glionna, Vice President – Client Relations.

Why it pays to send U.S. bound freight through Canada

In today’s complicated world, the fastest and most economical shipping is not always the shortest distance between two points. This is especially true if you have freight from Asia, Europe or the UK bound for the U.S.

The most direct route would be to go through a U.S. port. However, when you factor in the delays that inevitably result in the congested U.S. ports, plus the brokerage costs, it is often better to ship through Canada. The transit time will almost always be better, plus you will pay less for U.S. brokerage on border clearances.

Take the right route. Import your U.S. bound freight through Canada.

To request a quotation, contact Debbie McGuire, Client Relations.

Halifax vs. Montreal?
Which port is best for UK import freight

Want to know why we ship our UK import freight through Halifax, not Montreal? Because at the height of winter, the Port of Montreal is frozen while Halifax is open for business. What about the rest of the year? Halifax is still the best choice because there is frequent congestion at Montreal terminals. We use Halifax for our dual service from Manchester/London, a weekly LCL service with guaranteed space.

Taking the mystery out of logistics terms and terminology

You just got a ZAPP. Is this a good thing or a bad thing? If MLB does not stand for Major League Baseball, just what does it stand for? And is a Blanket Adjustment a special Canada Customs duty on imported fabrics used to make blankets in Canada? Get the answers by reading this review of some of the most common – and important – technical terms.

ACI (Advance Commercial Information) – An effective risk management tool being implemented to identify threats to our health, safety, and security prior to the arrival of cargo and conveyances in Canada.

AMS (Automated Manifest System) – An application that expedites the clearance of cargo when imported to the U.S. through electronic submission of cargo manifests in lieu of bulk paper manifests.

Blanket Adjustment – A single voluntary adjustment request to Canada Customs covering a number of entries based on the same specific conditions.

Country of Origin – The country in which the goods are grown, produced, or manufactured.

ISPS – International Ship and Port Facility Security surcharge being imposed by the ports.

Mini Landbridge (MLB) – An intermodal system for transporting containers from/to a foreign country by water to/from a U.S. ocean port other than the arrival port by rail at through rates and documents

OGD (Other Government Department) – Term used to refer to government departments other than Canada Border Services Agency (CBSA) that impose import restrictions or documentation requirements that are administered by the CBSA at the time of importation.

Pallet – A device on the deck of which a quantity of goods can be assembled to form a unit load for the purpose of transporting it, or handling or stacking it with the assistance of mechanical appliances.

VFD (Value for Duty) – The value of an import shipment when converted into Canadian funds at the currency exchange rate based on the date of direct shipment to Canada.

ZAPP – German fee charged by the agents applicable to the electronic transmission of the exporter's export declaration to customs.

One last thing: if we ever use a term you are unfamiliar with, please don’t be embarrassed to ask for an explanation. We’re here to help.

Deadline nearing for submission of
valid NAFTA certificates

Now is the time to pursue your U.S. vendors for valid 2006 NAFTA Certificates of Origin – or free yourself of this responsibility by allowing Universal Logistics to look after this requirement on your behalf. Under Service Option 2 of our NAFTA Management Service, we will contact each of your U.S./Mexico vendors (where applicable) directly to obtain the necessary blanket Certificates for 2006.

If a shipment arrives in Canada without a valid Certificate, we must pay duty at time of import. For example, if you have a shipment of wooden furniture with a value of $15,000 Cdn. and have not submitted to our office a valid NAFTA Certificate, we must apply 9.5% duty, or $1,425. Otherwise, you will be subject to an AMPS (Administrative Monetary Penalty System) fine for claiming preferential treatment without a valid NAFTA Certificate. The penalty is $1,000 for the first infraction and the penalties go even higher for repeat infractions.

Most 2005 blanket NAFTA Certificates are scheduled to expire on December 31, 2005 and must be renewed prior to expiry in order to ensure there is no interruption to duty-free status.

All shipments entering the USA from Canada containing unmarked wood packaging materials must now contain a declaration on customs documentation or importer's letterhead stating that "Wood packaging in this shipment is derived from trees harvested in the U.S. or Canada". There are no requirements for treatments, marking or declaration for shipments imported into Canada from the USA.

The current policy that the wood packaging must be free of living pests/diseases or signs thereof is still in effect for both countries. Canadian origin wood packaging is also exempt from treatment and marking requirements when moving to non-continental territories of the U.S., but the same declaration requirement applies.

If shipments from Canada do not contain the appropriate wood packaging declaration, U.S. Customs will assume that the packaging is of the same origin as the goods contained thereon and may refuse entry. The new regulations, implemented September 16, 2005, will be phased-in until February 1, 2006, when the requirement will become mandatory.

Advance Commercial Information (ACI), which requires the electronic transmission of cargo and conveyance data within designated advance timeframes, was due to be implemented in the air mode of transport on December 5, 2005. However, it now appears that implementation will be delayed – again.

Formal notification from CBSA will be issued within the next few weeks. We’ll provide an update as soon as specific details are available. ACI has been in effect for ocean mode since April 2004.

Adding a gift into a cross border shipment headed into the U.S. might seem like a harmless step. But if the gift is not declared and it is found by Customs inspectors, you will be fined and your entire shipment may be seized – a big price to pay for a little mistake.

Be sure to declare all gifts, regardless of value, on export documentation. However, gifts containing food products should be avoided as even the smallest bag of candy will render your shipment subject to the advance notice requirements under the U.S. Bioterrorism Act and all rules/restrictions of the U.S. Food and Drug Administration (FDA).

EDucation Seminar – Voluntary Compliance Made Easy

Have you heard about our EDucation Seminar, entitled Voluntary Compliance Made Easy?

The 90-minute seminar, available this Fall, addresses the key compliance issues most company’s face – errors in tariff classification, valuation and origin – and how to solve the problem areas by identifying and reporting the errors, a necessary step to close the gap between what is reported to Canada Customs and what is the “commercial reality”.

The group rate is $199 (add $50/person for groups of more than three) for seminars at client locations; $99 for seminars given at the offices of Universal Logistics. Contact Kitt Jacques, Manager – Administration, to order your seminar.

Here is the feedback for a seminar we recently delivered:
"Clearly and professionally presented. I'm fairly new to the
whole Customs game and I could easily follow the
presentation." – Amanda Ugarkovic, Brascorp

Need a quote on ocean or truck freight? Contact Debbie McGuire, the newest member of our Client Relations team.

With 10 years experience in Universal's transportation operations, Debbie is well prepared to meet your needs.