List of active alerts in the home page scroller.
N = News Alert.
C = COVID-19 Alert.
T = Trade War Alert.
R = Route.
Toronto, June 21, 2022
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, June 21, 2022:
"CN announced yesterday that normal rail operations continue safely as it has implemented its operational contingency plan. The plan allows the company to maintain a normal level of safe rail operations across Canada and serve its customers for as long as required."
Following the International Brotherhood of Electrical Workers' (IBEW) rejection of CN's latest offer, CN Executive VP and COO Rob Reilly sent a letter to all employees represented by the union to inform them of CN's latest offer. The letter is available here.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, June 16, 2022
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, June 16, 2022:
Some 750 Canadian National Railway employees are threatening to walk off the job beginning on Saturday, June 18, 2022. The company announced Wednesday evening that it received a 72-hour strike notice from the International Brotherhood of Electrical Workers (IBEW), which represents about 750 employees in Canada.
CN says these employees intend to strike on June 18 at 11 am, despite its insistence that it has negotiated in good faith with the union.
The company says it has offered to resolve numerous issues, such as wages and benefits, through binding arbitration.
"CN remains optimistic that an agreement can be reached without a strike," the statement adds.
If an agreement is not reached by Saturday, Canadian National notes it believes it will be able to "safely continue normal operations for as long as necessary."
The above information is from CTV News.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, June 13, 2022
Congestion at ports and inland terminals across Canada remains an ongoing hurdle for importers anxious to receive their shipments. The Ports of Vancouver, Halifax and Montreal are all dealing with excessive volumes, resulting in the delay of cargo moving to inland terminals. Once cargo does arrive at destination terminals, cartage companies are also having difficulty efficiently handling the volume, resulting in a severely compromised logistic chain. Many trucking companies are overbooked and are only able to schedule deliveries 1-2 weeks from arrival date, and because of the long waiting time at terminals, carriers are increasing their hourly fees for waiting time. As a result, shippers' costs are increasing as their shipments are subject to waiting time, rail storage, yard storage and chassis detention fees due to the congestion issues now present across Canada.
There does not seem to be any relief in sight, as cargo volumes are expected to increase with the reopening of China after Covid-19 lockdowns, and the subsequent arrival of pent-up orders. Coupled with this is the typical summer/fall peak season, which occurs on an annual basis, as shippers stock up with inventory in advance of the busy fall/winter retail seasons. This sudden uptick in demand for freight services is expected to cause renewed pressure across the entire supply chain and exacerbate the congestion problems now being experienced.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, May 30, 2022
Upon implementation of Release 2 of the Canada Border Services Agency’s (CBSA) Assessment and Revenue Management (CARM) program, all importers must post security, for duty and GST, in order to obtain release of goods into Canada.
As per Ted Gallivan, Executive Vice President of the CBSA, May 25, 2022, “The CBSA plans to present a revised project plan to the Treasury Board that shows the Go-live date (for CARM R2) as being 1 of 2 dates in 2023, either May 2023 or October 2023, in order to lock down the related regulations, rules of engagement, and to be sure that onboarding is complete.”
CARM Release 2 – Scheduled for May or October 2023
Key Functionality for External Clients:
IMPORTANT:
All importers to Canada (whether resident or non-resident) must take certain steps – if not, they simply won't be able to import into Canada once CARM Release 2 comes into effect (May or October 2023).
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, May 24, 2022
With the surge in container volume for both inbound and outbound, CN and CP are facing severe congestion issues across Canada, with an upward wait time of between 2-8 hours on average to pick up loaded containers or drop empties depending on the arrival terminal. Although they are normally capable of handling this volume, the situation is being exacerbated by a shortage of dray carriers, which are not able to evacuate containers out of the terminals in an efficient manner. In view of this, many trucking companies are implementing additional charges to compensate for the waiting time at the rail. The surge in volume also affects the truckers' ability to pre-pull containers, which can result in detention and demurrage charges being incurred if the trucker is unable to perform pre-pull.
For more information, please call Debbie McGuire, Director – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, April 20, 2022
The Canada Border Services Agency (CBSA) issued the Certain Goods Remission Order (COVID-19): SOR/2020-101 with effect May 5, 2020, to remove import duty on a variety of HS tariff classifications during the COVID-19 pandemic. The Certain Goods Remission Order has now been repealed and will no longer be in effect after May 7, 2022.
Remission of duty was temporarily granted for classifications listed in the Certain Goods Remission Order (COVID-19) SOR-2020-101, under the following conditions:
| a) | the good was imported into Canada on or after May 5, 2020, and subject to customs duties; |
| b) | no other claim for relief of the customs duties has been granted under the Customs Tariff in respect of the good; |
| c) | the importer agrees that it is subject, at any time, including after remission relief is provided, to review by the Canada Border Services Agency for the purpose of determining whether the information supplied by the importer under paragraph (c) is accurate and complete and whether the facts on which the Canada Border Services Agency relied or intends to rely to determine the eligibility for remission remain unchanged in all material respects; and |
| d) | at the time when the Canada Border Services Agency conducts the review referred to in paragraph (d), the Canada Border Services Agency must be able to conclude that the information supplied remains accurate and complete and that the facts remain unchanged in all material respects. |
The relief of customs duties applies to eligible goods, as per the conditions found in SOR-2020-101, imported from May 5, 2020, to May 7, 2022, inclusively. This relief could be claimed at the time of importation or within two years of the date of importation. For clients of Universal Logistics, this relief was automatically applied at the time of import, based upon valid HS tariff classification.
If you have any questions, or feel your goods should have been imported under the provisions of the Certain Goods Remission Order, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, April 5, 2022
Unfortunately, due to the increased spread of the coronavirus in Shanghai, authorities at China's commercial hub have decided to extend the current lockdown. Shanghai now accounts for three out of every four local asymptomatic cases across the country. Currently, there is no confirmation as to how long the measures will stay in place. Factories are closed as is all public transport. The ports of Waigaoqiao and Yangshan are congested due to the reduction of longshoremen at the port, which impacts the efficiency of loading and offloading vessels. Some steamship lines have announced vessel delays or are omitting Shanghai port on some voyages. Shippers are sending cargo via Ningbo port as an alternative, which will ultimately cause congestion and lack of space in Ningbo, the longer the lockdown continues in Shanghai.
We will continue to monitor the situation and advise further.
For more information, please call Debbie McGuire, Director – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, March 28, 2022
The resurgence of COVID-19 in China has now affected Shanghai. The city of 26 million will be locked down in two phases for mass testing – the Pudong financial district and areas east of the Huangpu river from Monday, March 28 to Friday, April 1 in Phase 1, and west of the Huangpu River for five days from Friday, April 1 to Tuesday, April 5 in Phase 2. Residents will be barred from leaving their homes, and public transport is suspended, with private cars only allowed to make necessary journeys. All firms and factories are to suspend production, with people to work from home apart from those involved in essential services and food supply. Bloomberg reported that Tesla would be stopping operations at its plant. Shanghai International Port Group (SIPG) said that during the lockdown period, the port would ensure normal operations and provide 24 hours services at all its port production units. However, landside infrastructure and transport links to and from the port will be disrupted.
Container truck drivers must provide a negative COVID test result taken in the last 48 hours. Many expressway entries have also been locked down, and truck drivers have limited access to the city. During the recent lockdown in Shenzhen, South China ports remained operating relatively normally, however, experienced yard congestion and queues of ships built up due to landside transport and infrastructure restrictions similar to those now in place in Shanghai. While some FCL dray carriers are still operating within Shanghai, LTL trucks are not allowed to enter Pudong. As a result, we feel that there will likely be a significant impact on LCL cargo.
For more information, please call Debbie McGuire, Director – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, March 24, 2022
The U.S. Trade Representative's (USTR) office has announced it will be reinstating China Tariff Exclusions on 352 items which expired December 31, 2020. These Exclusions cover a wide variety of goods, from crab meat to garden furniture.
The reinstated product exclusions will be retroactive to October 12, 2021 and extend through December 31, 2022. The USTR may consider further extensions beyond December 31, 2022, as they deem appropriate. Once the Tariff Exclusions are implemented, refund claims may be submitted on qualifying imports to recover the applicable China Tariff paid.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, March 21, 2022
The Teamsters Canada Rail Conference (TCRC) – Train and Engine Negotiating Committee has agreed to enter into binding arbitration with Canadian Pacific (CP), ending the work stoppage that began over the weekend.
CP will immediately begin to execute a safe and structured start-up of its train operations in Canada. Effective immediately, CP has cancelled embargoes currently in place. This agreement will allow for CP's 3,000 locomotive engineers, conductors, train and yard workers in Canada to return to work at noon local time on March 22, 2022.
In a statement issued early Tuesday morning, Teamsters Canada Rail Conference spokesperson Dave Fulton said while arbitration was not the preferred method, TCRC was able to negotiate terms and conditions that were in the best interest of its members, with wages and pensions still stumbling blocks. He noted the decision to agree to final and binding arbitration was not taken lightly.
CP President and CEO Keith Creel said in a statement the railway company is pleased to have reached the agreement to enter into binding arbitration, enabling it "to resume our essential services for our customers and the North American supply chain."
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, March 21, 2022
Canadian Pacific Railway (CP) halted operations over a labour dispute early on Sunday, March 20, with CP and the Teamsters Canada Rail Conference (TCRC) each blaming the other for the stoppage that will likely disrupt shipments of key commodities at a time of soaring prices.
"We are very disappointed with this turn of events," said TCRC spokesperson Dave Fulton. The union said in a statement that it had begun to strike across the country in the dispute that it says affects 3,000 engineers, conductors and yard workers.
Canada's second-biggest railroad operator accused the union of misrepresenting the company's position, saying in a statement that the Teamsters were "well aware of the damage this reckless action will cause to the Canadian supply chain." Minister of Labour Seamus O'Regan Jr. said CP and Teamsters were still at the table with federal mediators. "We are monitoring the situation closely and expect the parties to keep working until they reach an agreement," he said in a tweet just after midnight.
Canada, the largest country by area after Russia, depends heavily on rail to move commodities and manufactured goods to port. CP's network runs across much of southern Canada and extends as far south as Kansas City in the United States.
The shutdown is the latest blow to Canada's battered supply chain, which last year weathered floods in British Columbia that washed out track and suspended access to Canada's biggest port. Such a stoppage would disrupt the movement of grain, potash, coal as well as intermodal containers. CP had notified the union on Wednesday that it would lock out employees on Sunday, barring a breakthrough in talks on a deal covering pensions, pay and benefits. It said the key bargaining issue is the union's request for higher pension caps.
The country's last major railway labour disruption was an eight-day Canadian National Railway Co (CNR) strike in 2019. However, in the past 12 years, there have been 12 stoppages due to poor weather, blockades or labour issues, according to the Western Canadian Wheat Growers Association.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, March 17, 2022
The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, March 17, 2022:
CP Issues 72-Hour Notice to Lock Out TCRC-Train & Engine Employees
Canadian Pacific Railway has issued a 72-hour notice to the Teamsters Canada Rail Conference (TCRC)-Train & Engine of its plan to lock out employees at 00:01 ET on March 20, if the union leadership and the company are unable to come to a negotiated settlement or agree to binding arbitration.
"For the sake of our employees, our customers, the supply chain we serve and the Canadian economy that is trying to recover from multiple disruptions, we simply cannot prolong for weeks or months the uncertainty associated with a potential labour disruption," said Keith Creel, CP President and CEO. "The world has never needed Canada's resources and an efficient transportation system to deliver them more than it does today. Delaying resolution would only make things worse. We take this action with a view to bringing this uncertainty to an end."
Over the past week, CP and the TCRC leadership have been meeting daily with federal mediators to reach a new negotiated collective agreement in hopes of avoiding a labour disruption. Despite those talks, the two sides' positions remain far apart.
Read more in a press release from CP.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, March 15, 2022
The City of Shenzhen, China, is beginning a week-long lockdown due to high cases of the Omicron variant. The lockdown prevents residents from leaving their homes until Sunday, March 20th – with the only exception being to undergo three rounds of COVID testing. This will affect the world's third-largest port of Yantian and many of the tech companies who operate from Shenzhen such as Huawei and iPhone manufacturer Foxconn.
Carriers are still trying to navigate how they will deal with this, however, calls at the port will likely be discontinued this week and possibly next, as due to the lockdown, there will be no workforce to move freight, drive trucks and load containers. Analysts say that when Yantian port was shut down due to COVID last year, the disruptive impact on cargo flows was roughly twice the size of the blockage of the Suez Canal.
We will continue to monitor and update you on this situation.
For more information, please call Debbie McGuire, Director – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, March 8, 2022
The Teamsters Canada Rail Conference (TCRC), who represents approximately 3,000 Canadian Pacific's (CP) locomotive engineers and conductors, has voted to authorize strike action. A strike may occur as early as March 16, 2022. At this point CP and the TCRC are working to avoid any disruptions, with scheduled talks between both parties and federal mediators to be held between March 11 and March 16.
The key issue at the bargaining table is the TCRC leadership's demand to increase pension caps that were implemented in 2012 to put CP's Defined Benefit Pension Plan on a secure, sustainable footing. A work stoppage of any duration at CP will impact virtually all commodities within the Canadian supply chain, thereby crippling the performance of Canada's trade-dependent economy. The consequences of a work stoppage will be felt long after workers return to work and service resumes.
We will continue to monitor this situation and advise accordingly.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, March 3, 2022
In addition to other financial sanctions, Canada has revoked "Most-Favoured Nation status" for Russia and Belarus as trading partners, meaning imports into Canada will be subject to a 35 percent tariff, and making Canada the first country to do so since war broke out in Ukraine last week.
This Order results in the application of the General Tariff for goods imported into Canada that originate from Russia or Belarus. Under the General Tariff, a tariff rate of 35 percent will now be applicable on virtually all of these imports. Russia and Belarus will join North Korea as the only countries whose imports are subject to the General Tariff.
Quick facts
Canada is the first country to take this step, Deputy Prime Minister and Finance Minister Chrystia Freeland said Thursday, adding that the only other nation that Canada subjects to this high tariff and deprives of other associated benefits is North Korea.
"We are using tools which no one would even have imagined deploying just a week ago, and there's more to come," Freeland said.
The Minister of Transport, the Honourable Omar Alghabra, the Minister of Foreign Affairs, the Honourable Mélanie Joly, and the Minister of Fisheries, Oceans, and the Canadian Coast Guard, the Honourable Joyce Murray, announced that the Government of Canada intends to ban Russian-owned or registered ships and fishing vessels in Canadian ports and internal waters. The ban is expected to be in effect later this week through orders made pursuant to the Special Economic Measures Act.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, February 15, 2022
Yesterday, Prime Minister Justin Trudeau invoked Canada's Emergencies Act as an attempt to manage the border crisis.
Although a weeklong blockade of the vital Ambassador Bridge between Ontario and Michigan has been cleared, protesters are still obstructing crossings at Emerson, Manitoba (Pembina, North Dakota) and Coutts, Alberta (Sweet Grass, Montana). The most powerful tools presented yesterday were in the financial areas to follow and halt the flow of money from corporations and individuals funding the protests. The measure must be approved by the House and Senate within 7 days. The government likely has enough support for the Act to be implemented.
Financial institutions will now have the power to freeze personal or corporate accounts they believe are being used to fund the illegal protests. "This is about following the money. This is about stopping the financing of these illegal blockades. We are today serving notice: if your truck is being used in these protests, your corporate accounts will be frozen." Chrystia Freeland, Minister of Finance, said.
The public order emergency grants Government the authority to apply the following temporary measures:
For additional details, please click the following links:
Emergencies Act link here.
Press Release link here.
Canadian Chamber Statement link here.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, February 14, 2022
The Ambassador Bridge, one of the busiest international land border crossings in Canada linking Windsor, Ontario and Detroit, Michigan, has reopened after being closed for nearly a week due to protests against pandemic restrictions and mandates.
"The Ambassador Bridge is now fully open allowing the free flow of commerce between the Canada and U.S. economies once again," the Detroit International Bridge Company, which is responsible for maintaining the bridge, announced in a statement late Sunday.
Traffic was flowing normally across the bridge, as confirmed by the Canada Border Services Agency just before midnight on Sunday, February 13th.
"The Canada Border Services Agency (CBSA) can confirm that travellers and commercial carriers are now being processed entering Canada at the Ambassador Bridge port of entry," said Judith Gadbois-St-Cyr, a spokeswoman for the agency.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, February 9, 2022
Ambassador Bridge, one of the busiest international land border crossings in Canada linking Windsor, Ontario and Detroit, Michigan, and a major route for transport trucks, remains temporarily closed. The closure is due to continued protests against pandemic restrictions and mandates.
Please use the following links to check current border wait times:
Most traffic is currently being re-routed via the Blue Water Bridge (Port Huron, Michigan / Sarnia, Ontario), but that border crossing, which currently remains open, is becoming more congested with the additional truck volumes.
We will continue to monitor this situation and advise accordingly.
For more information, please call Chris Cartan, Director – Operations at (905) 882-4880, ext. 1237 or William Sanchez, Manager – Truck Services at (905) 882-4880, ext. 1224.
Toronto, February 8, 2022
2022 has not started off well, as shippers continue to face bottlenecks and service disruption related to global port congestion. The situation is particularly challenging at key hub ports and gateway terminals, as cargo volumes remain extremely high, affecting the fluid movement of cargo on land as well as disrupting vessel schedules worldwide.
North American ports continue to struggle with these issues, as rail movements inland are delayed, and the number of vessels waiting to berth at these destination ports remains high. We are also experiencing long delays in transit times, as vessels laden with containers destined to North America sit idle offshore or slow down the sea transit, awaiting a berthing window at the final port of arrival.
The situation in Vancouver, Montreal and Halifax remains precarious, as we are seeing significant delays in cargo moving inland from these key points of arrival in Canada. In terms of the U.S., the problems experienced in 2021, namely vessel bunching and extended dwell time at terminals remain. While the U.S. West Coast ports are dealing with the most serious issues, as the vast majority of inbound cargo from Asia arrives via this gateway, East Coast ports are also dealing with high volumes of cargo and the fallout from this.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, January 14, 2022
There has been some misinformation reported regarding the requirements for truckers entering Canada as of January 15, 2022. These requirements have been reconfirmed in a statement issued by the Public Health Agency of Canada on January 13th, as per the following link:
The key points of clarification are as follows:
A Canadian truck driver who is not fully vaccinated cannot be denied entry into Canada – Canadian citizens, persons registered under the Indian Act and permanent residents may enter Canada by right. As was announced in November, starting January 15th, unvaccinated Canadian truck drivers entering Canada will need to meet requirements for pre-entry, arrival and Day 8 testing, as well as quarantine requirements.
Also, as of January 15, 2022, unvaccinated or partially vaccinated foreign national truck drivers, coming to Canada from the U.S. by land, will be directed back to the United States.
To qualify as a fully vaccinated traveller and to enter Canada, foreign national truck drivers must:
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, January 13, 2022
With just days to go before a federal vaccine mandate for truck drivers is set to come into effect, the federal government says Canadian truckers will be exempt from Canada's new rules but are still expected to face restrictions once the reciprocal American policy comes into effect. In a statement, the Canada Border Services Agency (CBSA) advised unvaccinated or partially vaccinated Canadian truck drivers arriving at the border will remain exempt from pre-arrival, on arrival and post-arrival testing and quarantine requirement. Previously it was understood that Canada's vaccine mandate would require all truckers entering Canada to be fully vaccinated against COVID-19 and that foreign nationals would be turned away, while unvaccinated Canadian truckers would have to quarantine upon arrival.
The CBSA has confirmed that the January 15 mandate will still come into effect for non-Canadian truckers coming into this country at the U.S. border. Unvaccinated or partially vaccinated foreign nationals, including American truck drivers, will be prohibited entry into Canada as of this date, however, if drivers are able to provide evidence confirming a contraindication to the COVID-19 vaccines, they may be granted an exemption.
On January 22nd, the U.S. will apply the same requirement on foreign nationals to Canadian truckers. All inbound non-U.S. persons crossing at U.S. land point of entries or ferry terminals – whether for essential or non-essential reasons – must be fully vaccinated for COVID-19 and provide related proof of vaccination.
We will continue to monitor this situation and advise accordingly.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.
Toronto, November 5, 2021
On October 22, 2021, the Zim Kingston vessel was engulfed in flames off the coast of Vancouver. Severe weather caused a collapse of containers, sweeping more than 100 containers overboard. Ensuing damage ignited a fire in other containers with hazardous materials that quickly spread throughout the vessel. The salvaging of lost containers and the assessment of damages has now begun.
Subsequent to this, on November 1st, the owners of the MV Zim Kingston, have declared "General Average". This is a principle of maritime law whereby all stakeholders in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency.
Examples of General Average include:
Losses covered by a General Average declaration are shared by every shipper that has freight on the on the vessel. The cost per uninsured shipper can be catastrophic. Moreover, uninsured shippers are unable to receive any surviving cargo until they have posted an Average Bond. In contrast, shippers with proper cargo insurance suffer little or no loss.
If you have questions about cargo insurance or if you want Universal Logistics to place cargo insurance on your behalf, please call Debbie McGuire, Director – Freight Solutions at (905) 882-4880, ext. 1308.
Toronto, October 14, 2021
GTA dnata, which provides ramp, passenger and cargo warehousing services to airlines at Toronto Pearson International Airport (YYZ), has announced an update to their warehouse storage policies as outlined below.
"Effective 15th October 2021, there will be no extension of free storage over the first Weekend and Public holidays.
All general cargo will continue to have 48 hours free storage from the date of arrival without any further extension.
All special cargo will continue to have 24 hours free storage from the date of arrival without any further extension.The Change in policy will apply as below
For General Cargo:– Shipment arriving on Friday will need to be picked up by Sunday at the latest to avoid any storage charges.
For Special Cargo:– Shipment arriving on Friday will need to be picked up by Saturday at the latest to avoid any storage charges.This change in policy has been initiated after due consideration of upcoming increases in cargo volumes, 24 x 7 CBSA working hours and the e-Manifest initiative.
All customers will be able to process their shipments without any restrictions irrespective of Weekends or Public holidays.GTA dnata request all forwarders and import customers to make necessary arrangements to avoid any storage charges.
GTA dnata have also geared up operations to ensure quick delivery schedules are maintained throughout the weekends and public holidays."
Toronto, August 3, 2021
Effective October 1, 2021, there will be new minimums and maximums for U.S. Customs' Merchandise Processing Fee (MPF). The minimum will be $27.75 per transaction (previously $26.79) and the maximum will be $538.40 (previously $519.76). The Informal MPF (applies to shipments valued under $2,500 USD) will change from a flat rate of $2.14 to $2.22. The MPF rate of 0.3464% will not change. Goods of USMCA/CUSMA Preferential Origin are exempt from MPF. In addition to the MPF, various other U.S. Customs User Fees are also increasing – please see full list here.
The Merchandise Processing Fee is a fee imposed by U.S. Customs and Border Protection (CBP) to offset the cost of salaries and other expenses incurred in the processing of imports and release of merchandise into the United States.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
