October

Toronto, October 4, 2019

The Office of the U.S. Trade Representative (USTR) has issued their final list of European Union (EU) origin goods to be subject to additional tariffs effective October 18, 2019.

The tariffs are in response to a 15-year battle over aviation subsidies in a World Trade Organization (WTO) dispute against the EU which was awarded to the U.S. this week.  The EU is not allowed to retaliate against WTO-authorized countermeasures, however, a similar case filed by the EU against the U.S. is expected to receive a decision in the coming months.

The tariffs being imposed will be 10% on large civil aircraft and 25% on agricultural and other products.  The bulk of the tariffs are being applied to goods of France, Germany, Spain and the United Kingdom.  The U.S. has the authority to increase the tariffs or products affected at any time.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

U.S. temporarily lifts tariffs on over 400 Chinese goods

Toronto, September 26, 2019

The United States Trade Representative (USTR) has announced that temporary exclusions to the China Tariffs have been granted to 437 products from China.  The goods range from printed circuit boards and dog leashes to winches and Christmas tree lights.  These goods have been subject to the additional tariffs since 2018, and the temporary exclusions come as a result of over 1,000 requests made by U.S. companies.

The exclusions are retroactive to the dates of initial tariff implementation per the following lists:

• July 6, 2018: implementation of tariffs on $34 billion worth of goods.  This exemption will expire September 20, 2020.
• August 23, 2018: implementation of tariffs on $16 billion worth of goods.  This exemption will expire September 20, 2020.
• September 24, 2018: implementation of tariffs on $200 billion worth of goods.  This exemption will expire on August 7, 2020.

Goods identified under list four, implementation of tariffs on $300 billion worth of goods, have not yet been issued an exclusion process by the USTR in order to request exemption.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Higher U.S. Customs User Fees effective October 1, 2019

Toronto, September 23, 2019

Effective October 1, 2019, there will be new minimums and maximums for U.S. Customs' Merchandise Processing Fee (MPF).  The minimum will be $26.79 per transaction (previously $26.22) and the maximum will be $519.76 (previously $508.70).  The Informal MPF (applies to shipments valued under $2,500 USD) will change from $2.05 to $2.14.  The MPF rate of 0.3464% will not change.  Goods of NAFTA Preferential Origin are exempt MPF.  In addition to the MPF, various other U.S. Customs User Fees are also increasing – 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. 213.

U.S. delays China tariff increase

Toronto, September 12, 2019

In a tweet yesterday, U.S. President Donald Trump said the pending China tariff increase from 25% to 30% on roughly $250 billion of China products set to go into effect October 1st, has been postponed until October 15th.

The affected goods may be found on Lists 1, 2 and 3 from the United States Trade Representative (USTR).

The USTR have not yet issued a formal notice of the revised implementation date.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

Canadian Aluminum and Steel Import Monitoring

Toronto, August 29, 2019

Global Affairs Canada have issued notices to importers of a new Aluminum Import Monitoring and a revision to the Steel Import Monitoring which are effective September 1, 2019.  The purpose of these programs is to enable Global Affairs Canada to monitor imports of certain aluminum and steel products and facilitate the collection of import data.  In addition, importers may be required, upon request, to provide to Global Affairs Canada documents and records for the purpose of identifying any errors in import data and determining the source of any inconsistencies in a targeted manner.

Notices to Importers

New - General Import Permit No. 83 – Aluminum Products
The import documentation for each shipment of aluminum products must state that it is being imported under the authority of General Import Permit (GIP) No. 83.  This requirement applies to all aluminum products in item 83 of the Import Control List:  Alloyed and not alloyed unwrought aluminum products, and wrought aluminum products limited to bars, rods, profiles, wires, plates, sheets, strips, foils, tubes and pipes, tube and pipe fittings and other articles of castings and forgings. The specific Harmonized System codes of the goods covered by this GIP are set out in the Commodity Codes Handbook.

Importers are required to ensure that quantity (in kilograms), value (in Canadian dollars and excluding freight costs), product classification, country of origin, U.S. state of export (if applicable), supplier name and address and importer name are given correctly, if necessary by amending the import documentation.

Revised - Steel General Import Permits No. 80 and 81 – Carbon and Specialty Steel Products
The import documentation for each shipment of carbon and specialty steel products must state that it is being imported under the authority of GIP No. 80 or 81.  This requirement applies to all steel products with Harmonized System headings 7206-7302, 7304-7306, 7308, 7312-13 and 7317.

Importers are required to ensure that quantity (in kilograms), value (in Canadian dollars and excluding freight costs), product classification, country of origin, U.S. state of export (if applicable), supplier name and address and importer name are given correctly, if necessary by amending the import documentation.

Potential Penalties under AMPS

Failure to cite the required GIP or not complying with the terms and conditions of the Permit may lead to the levying of penalties by the Canada Border Services Agency (CBSA) under the Administrative Monetary Penalty System (AMPS), which authorizes the CBSA to assess monetary penalties for non-compliance with customs legislative, regulatory and program requirements.  Importers may also face prosecution under the Export and Import Permits Act for contravening a provision of the Act or its regulations (section 19).  Compliance is monitored by the CBSA and Global Affairs Canada.

Terms and Conditions
A resident of Canada who imports goods under these Permits must retain, for a period of six years after the year in which the import is made, documents and records containing the following information:

• the name and the address of the importer or consignee;
• proof of Canadian residency;
• the date of entry of the goods into Canada;
• the quantity, expressed in kilograms, of the goods;
• the country from which the goods are imported;
• the country of origin of the goods;
• the shipping document with freight and other transportation costs indicated separately;
• the tariff classification of the goods indicated in the List of Tariff Provisions set out in the schedule to the Customs Tariff;
• the import value in Canadian dollars; and
• a detailed description of the goods.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

U.S. increases China tariffs

Toronto, August 26, 2019

The United States Trade Representative (USTR) has announced all existing and pending China tariffs are being increased in retaliation of China's response to the next round of tariffs being implemented on $300 billion worth of products imported to the U.S..

Current additional tariffs of 25% on roughly $550 billion of China products will increase to 30%, effective October 1, 2019.  The scheduled tariffs of 10% on $300 billion will be assessed at 15%, effective on the already scheduled dates (September 1st and December 15th) for tariff increases on these imports.

The USTR's notice in the link above is reproduced below:

The United States Trade Representative (USTR) has not yet issued a Federal Register Notice.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

U.S. delays some China tariffs until December

Toronto, August 14, 2019

The U.S. has announced some of the new 10% tariffs on $300 billion of Chinese imports, scheduled to become effective September 1, 2019, will be delayed until December 15, 2019.

Products being postponed until December include cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing.

The list of tariffs on the $300 billion has now been split into the following:
List 4A (Effective September 1, 2019)
List 4B (Effective December 15, 2019)

Meanwhile, certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face the additional tariffs of 10% – the list is pending issuance by the USTR.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.