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

Why export truck freight and U.S. customs
brokerage is a winning combination

Looking for a better way to handle your truck freight exports to the United States? It’s easier than you think. A simple, but effective, solution is to take control of your truck freight by having us handle your trucking requirements and U.S. customs brokerage.

You could end up with lower freight costs and faster transit times because you will have better control over how your freight is moved and you will no longer be exposed to hidden mark ups by your vendor or the carrier.

We are well prepared to meet your needs because we have a presence at the four major border crossings – Niagara Falls, Canada and U.S.; Fort Erie/Buffalo; Windsor/Detroit; Sarnia/Port Huron.

For more information, contact Debbie McGuire, Client Relations.

Ja! We now offer faster transit times from Germany

Universal Logistics has been named a Master Loader for LCL ocean freight coming to Toronto from Germany, an important achievement because it will give us more control over how freight is forwarded and warehoused. Most important, transit times, a top priority for many of our clients, will improve.

Don’t forget that we also offer FCL and airfreight to and from Germany, services we have offered with our partner, NAVIS, for 30 years.

NAVIS, a leading forwarder in Germany, is celebrating its 50th anniversary in 2006.

For more information, read our JA! Germany sales sheet.

Class A service for Asia Imports

Companies importing from China can expect enhanced service and pricing now that Universal Logistics has signed a partnership with a “Class A" forwarder. Only Class A freight forwarders are allowed to deal directly with steamship lines and forwarders, a competitive advantage because it is not necessary to deal with a third party.

“This is just the latest step in an ongoing effort to offer our clients a top China service,” notes Paul Glionna, Vice-President – Operations. “Companies that are already using our services elsewhere in the world, now have a great reason to choose us for China freight as well.”

$25 million in penalties to import/export community for failure to follow customs regulations

An astounding $25 million in just over three years – that’s what the Canada Border Services Agency (CBSA) has issued in penalties to the import/export community since the Administrative Monetary Penalty System (AMPS) was introduced in October 2002.

More penalties are a certainty because the CBSA intends to audit every company. You should also know AMPS comes with a “Reason to Believe” clause pertaining to discrepancies in tariff, value and origin. This means if you have reason to believe an error has occurred, you must submit a voluntary adjustment (not subject to penalty) within 90 days.

AMPS monetary penalties will be issued against errors, including simple errors with no intent to defraud. This means that even the smallest of clerical errors may be subject to a penalty assessed on either a scale rate or a percentage of the shipment value, depending on the infraction involved.

The penalty list contains approximately 240 items. Most are on a graduated scale, meaning they will escalate if the number of infractions increases. Infractions will remain on your customs profile for up to three years.

If you decide to wait until Customs say they’re going to perform a “verification review” (their lingo for audit) it’s too late to correct past errors and you could be in a penalty position.

What can you do to reduce your risk of penalty? Step one is to review your internal customs systems and implement a voluntary compliance plan before the CBSA comes knocking at your door. Here’s how to tell whether you need a compliance plan:

• Can you prove that each import shipment entering your facility has been released by Customs?
• Do you review your customs declarations to make sure they match what you actually received and paid your vendor for?
• Do you report all discrepancies in the customs process to Customs?

If you can’t answer yes to each of these questions, get started on your compliance plan by appointing a Compliance Coordinator with the following responsibilities:

• Review your customs-related systems, procedures and mechanisms
• Assess your level of compliance
• Implement links between your purchasing, receiving and payables processes
• Develop, document and implement a Compliance Plan
• Report all discrepancies to your broker to avoid penalty

Universal Logistics can provide all the support you need – from a full-blown compliance review of your systems and processes, to the submission of voluntary adjustments on your behalf to the CBSA. Part of this support includes monthly customs declaration reports that make it simple and easy to identify and report errors. We do all the rest, including preparing and submitting the necessary voluntary adjustment to Customs.

Remember, investing in compliance is always better than paying for non-compliance.
For more information, contact Brian Rowe, General Manager – Customs Consulting Services, by email or telephone 905-882-4880. Another option is to register for our exclusive Voluntary Compliance Made Easy Seminar.

“A vast degree of knowledge, expertise”

	Mark Glionna, Vice President – Client Relations, is one of five senior executives for Universal Logistics who have been accredited as a Professional Freight Forwarder.

Here’s proof that our employees are true professionals. Five of our senior executives and managers have been accredited as a Professional Freight Forwarder (PFF), a designation that indicates the individual has “a vast degree of knowledge, expertise, experience, and continuing education and professional development in the International Freight Forwarding field.”

Our five PFFs include Michael Glionna, President; Mark Glionna, Vice President – Client Relations; Paul Glionna, Vice President – Operations; Carlos Torres, General Manager – Business Development, and David Lychek, Manager – Ocean Services.

The PFF designation was created by the Canadian International Freight Forwarders Association (CIFFA) to recognize, support and enhance the professionalism of individuals involved in the International Freight Forwarding community in Canada. According to CIFFA, an individual with a PFF has “the competence, experience, education, knowledge, ability to keep current with industry practices, and are trustworthy and ethical."

Advance notice of air imports required June 26, 2006

Effective June 26, 2006, carriers and freight forwarders are required to report air cargo and manifest data electronically to the Canada Border Services Agency (CBSA) four hours prior to arrival in Canada or "wheels up" for flights of shorter duration.

This step, called the Advance Commercial Information (ACI) initiative, is being implemented to allow a security assessment of goods transiting Canadian airports and all freight remaining on board the aircraft, excluding freight loaded in USA. ACI was implemented for the marine mode in April 2004.

Failure to report detailed commodity information will result in loading delays and increases the possibility of examination.

Although ACI requires reporting to Canada Customs, it is a security measure processed by your carrier and/or freight forwarder, not your customs broker. The cost of meeting this new administrative requirement, and the related charges imposed by the airlines, will be covered with a fee of $35 CAD per Airway Bill or House Bill. The fee will apply when Universal Logistics is acting as your air freight forwarder and will take effect with the June 26 launch date.

More information is available from CBSA, or contact Tony Darmanin, Manager - Airfreight Services.

Did you know that the North American Free Trade Agreement (NAFTA) isn’t the only program that offers duty-free benefits? You can also obtain free/reduced rates of duty through trade agreements Canada has with Israel, Chile and Costa Rica.

Canada is negotiating or exploring Trade Agreements with:

• The Americas (FTAA) - South and Central America and the Caribbean
• Central America Four (CA4) - El Salvador, Guatemala, Honduras and Nicaragua
• Republic of Korea
• Singapore
• Andean Community Countries - Bolivia, Colombia, Ecuador, Peru and Venezuela
• CARICOM - Antigua & Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts & Nevis, Saint Lucia, St. Vincent & The Grenadines, Suriname, Trinidad & Tobago
• Dominican Republic

Canada also has trade agreements with various countries that provide free/reduced rates of duty for goods that are manufactured in the beneficiary country and shipped direct to Canada, on a Through Bill of Lading. Some of the countries covered by these agreements include:

• General Preferential Tariff (GPT) - e.g. China, Korea, India
• Least Developed Developing Country (LDDC) - e.g. Bangladesh, Madagascar, Uganda
• Caribbean Commonwealth Country Tariff Treatment (CARIBCAN) - e.g. Guyana, Jamaica, British Virgin Islands

Complete listing of countries that have a trade agreement with Canada:
www.cbsa-asfc.gc.ca/general/publications/tariff2006/01-99/2006LOC-e.pdf

Sourcing goods and materials in one or more of the above countries could give you the competitive advantage you were looking for. To learn more, contact Brian Rowe, General Manager - Customs Consulting Services.

Are your imported goods properly classified? Does that relationship with your vendor affect the declared Value for Duty? Are your goods really "Made in the USA”?

It’s best to get the answers before you go through the Customs audit that all companies will face sooner or later.

In an audit situation, you will be required to go back and self-correct (translation: it’s mandatory) up to four-years of import transaction data, whether or not there was a financial (duty and/or GST) impact. Add duty to the equation and you could be facing a big bill that has a major impact to your bottom line.

How can you avoid the risk? Engage us to obtain on your behalf binding written rulings from the Canada Border Services Agency (CBSA) on key issues such as Tariff Classification, Origin and Valuation. For more information, contact Brian Rowe, General Manager - Customs Consulting Services.

Don't forget the Goods and Services Tax (GST) will be reduced by 1 percentage point to 6%, effective July 1, 2006.

The reduced GST rate will apply to the importation of all taxable goods released from Customs on or after July 1, 2006.  Shipments released by Customs prior to July 1, 2006 will be assessed GST at the current rate of 7%.

Additional information is available from the Canada Revenue Agency website:
www.cra-arc.gc.ca/agency/budget/2006/gstrateqa-e.html

For more information, please call (905) 882-4880, Brian Rowe, General Manager – Customs Consulting Services.

New Home Page

Have you seen our new home page? It’s been completely redesigned to present, at a glance, our newest and most popular products and services. Give it a click soon!
 

At your service –Deborah D’Ornellas, Supervisor – Truck Services

Need help with a truck shipment? Contact Deborah D’Ornellas, Supervisor – Truck Services.

With 23 years experience in the truck services industry, Deborah is well prepared to meet your needs.