U.S. to drop Canadian aluminum tariffs before Canada retaliates

Toronto, September 16, 2020

The U.S. Trade Representative's office announced September 15, 2020 it will not proceed with the 10% tariff on Canadian origin aluminum, for which Canada was ready to implement retaliatory countermeasure tariffs effective September 16, 2020.

A statement from the USTR said after "consultations with the Canadian government, the United States has determined that trade in non-alloyed, unwrought aluminum is likely to normalize in the last four months of 2020, with imports declining sharply from the surges experienced earlier in the year."  The announcement also stated, "Six weeks after the end of any month during this period, the United States will determine whether actual shipments met expectations.  If actual shipments exceeded 105 percent of the expected volume for any month during the four-month period, then the United States will impose the 10 percent tariff retroactively on all shipments made in that month."  Expected monthly volumes are laid out in the statement.

Based on this announcement, the corresponding Canadian retaliatory countermeasure tariffs will not be imposed at this time.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Canadian Port Congestion

Toronto, August 26, 2020

Canadian ports on the East and West Coast of Canada are dealing with cargo backlogs, which are delaying the movement of shipments inland.  The recent strike at the Port of Montreal has created a severe backlog of containers at both Halifax and Montreal, the two main ports of arrival in Eastern Canada.  At the same time, ports on the West Coast of Canada are dealing with high levels of import volume, resulting in cargo movement delays.

It is expected it will take some time to clear the volume at these ports.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Montreal Longshoremen and MEA Reach Agreement to End Port Strike

Toronto, August 21, 2020

The striking longshoremen at the Port of Montreal have reached an agreement Friday with the MEA to end an 11-day-old strike and to resume work at the port.  Exact details on when the work will restart is yet to be confirmed.

Carriers are currently reviewing current vessel operations and making the necessary adjustments in light of this news, and we will communicate the details as soon as they are available.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Quebec and Ontario Governments Send Letter to Ottawa over Port of Montreal Strike

Toronto, August 18, 2020

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Tuesday, August 18, 2020:

Read more in an article from CTV News.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Canada-U.S. border closure extended to September 21, 2020

Toronto, August 17, 2020

Public Safety Minister Bill Blair tweeted Friday, August 14, 2020, “We are extending the reciprocal restrictions at the Canada-US border for another 30 days, till Sept. 21, 2020.  We will continue to do what’s necessary to keep our communities safe”.  The mutual agreement, which was introduced in March to help stop the spread of COVID-19, was set to expire on August 21, 2020.

Supply chains, including trucking, are not impacted by this measure and the movement of commercial goods across the border is unaffected.  “Non-essential” travel pertains to travel that is considered tourism or recreational in nature.

On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms.  This 14-day self-isolation does not pertain to trans-border truck drivers, and the full exceptions are:

Exceptions
Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people.  For example, this exemption would apply to:

• healthy workers in the trade and transportation sector who are important for the movement of goods and people across the border, such as truck drivers and crew on any plane, train or marine vessel crossing the border; or
• healthy people who have to cross the border to go to work, including health care providers and critical infrastructure workers.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Demand and Rates Spike on Trans-Pacific Trade Lane

Toronto, August 14, 2020

Since July, rates on the Trans-Pacific trade lane from Asia to North America have increased substantially due to strong consumer demand.  We have seen volumes rise steadily, even with the reinstatement of void sailings which had enabled the lines to keep rates stable while demand was low during the early months of Coronavirus (COVID-19).

The steamship lines have announced GRIs (General Rate Increases) for August 15, September 1 and September 15.  Many analysts contribute this high demand to shippers who are moving as much cargo as possible ahead of the holiday season, in anticipation that COVID outbreaks may prompt more lockdowns later this quarter.

For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880, ext. 1308.

Ottawa Won't Intervene to End Strike at Port of Montreal

Toronto, August 13, 2020

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, August 13, 2020:

Read more in an article from Global News.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

U.S. CBP requires goods produced in Hong Kong marked as origin China

Toronto, August 12, 2020

Effective September 25, 2020, goods produced in Hong Kong may no longer be marked to indicate their origin as Hong Kong, but must be marked to indicate China.  This change from U.S. Customs and Border Patrol (CBP), published in the Federal Register August 11, 2020, is due to a determination by the U.S. that Hong Kong is no longer sufficiently autonomous and will, therefore, be subject to the same requirements as China.

These goods will also be subject to the additional China Tariff (where applicable), based on the origin change requirement upon entry to the U.S..

At this time it is not known whether Canada will assume the same position with respect to Hong Kong.  Where goods are produced in Hong Kong for multiple markets, the origin marking must adhere to regulations of the country of import.

We will provide details as they are available.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Strike at the Port of Montreal – Vessel Diversion

Toronto, August 10, 2020

As a result of the ongoing strike at the Port of Montreal, several carriers have diverted vessels to other ports of arrival such as Halifax, New York City and Saint John, N.B..  In doing so, these carriers are applying additional costs to offset the difference in landed fees between Montreal and the revised port of arrival.

The situation is very fluid.  In some cases vessels have been diverted on route, resulting in these additional costs being applied with little warning.

Aside from this, some carriers are offering an option to route containers via other ports prior to shipping.  In these cases the costs will be confirmed prior to departure.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Canada retaliates against U.S. with $3.6B in tariffs

Toronto, August 7, 2020

In response to yesterday’s measures by the U.S. to impose a 10% tariff on Canadian aluminum, the Government of Canada is seeking comments on a proposed list of 10% countermeasure tariffs to take effect by September 16, 2020.

The countermeasures will apply only to goods originating from the U.S., which shall be considered as those goods eligible to be marked as a good of the U.S. in accordance with the Determination of Country of Origin for the Purposes of Marking Goods (CUSMA Countries) Regulations.  Once implemented, the countermeasures will remain in place until the U.S. eliminates its tariffs against Canada.  The countermeasures will not apply to U.S. goods that are in transit to Canada on the day on which they come into force.

Written comments should be provided no later than September 6, 2020.  Submissions, at a minimum, should include the following information:

1. Canadian company/industry association name and contact person.
2. Relevant eight-digit tariff item(s) and description of the goods of particular interest.
3. Reasons for the expressed support for, or concern with, the proposed countermeasures, including detailed information substantiating any expected beneficial or adverse impact.
4. Please identify if information provided in the submissions is commercially sensitive.

All comments and general inquiries should be sent to the following email address: fin.tariff-tarif.fin@canada.ca.  Only submissions by email will be accepted.  Please include the term “Aluminum countermeasures” in the subject line of your submission.

We will provide updates as details are available.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Strike at the Port of Montreal expected to continue

Toronto, August 7, 2020

The Canadian Union of Public Employees (CUPE), representing dock workers at the Port of Montreal, says it will launch an indefinite strike without an end date starting Monday, August 10th.

The move expands the pair of four-day strikes by CUPE that have diverted several ships to ports in Halifax, New York City and Saint John, N.B..  The announcement by CUPE follows escalating tensions between the union and the Maritime Employers Association amid a labour action revolving around wages and scheduling.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

U.S. imposes 10% aluminum tariff – Canada to retaliate

Toronto, August 7, 2020

The United States once again imposed a tariff on Canadian aluminum to take effect August 16, 2020.  The 10% tariff will apply to non-alloyed unwrought aluminum of HS tariff classification 7601.10.

Following is an excerpt from the Presidential Proclamation on Adjusting Imports of Aluminum into the United States:

(5)  Any imports of non-alloyed unwrought aluminum articles from Canada provided for in subheading 7601.10 that were admitted into a United States foreign trade zone under “privileged foreign status” as defined in 19 CFR 146.41 prior to 12:01 a.m. eastern daylight time on August 16, 2020, shall be subject upon entry for consumption on or after such time and date to the 10 percent ad valorem rate of duty imposed by Proclamation 9704, as amended.

The Proclamation also confirms no drawback will be available for these goods upon export from the United States:

(7)  No drawback shall be available with respect to the duties imposed pursuant to this proclamation.

In a statement issued by Deputy Prime Minister of Canada, Chrystia Freeland, she said, “In response to the American tariffs, Canada intends to swiftly impose dollar-for-dollar countermeasures.”

We will provide updates as details are available.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Four Day Strike to Begin Monday at Termont (Montreal)

Toronto, July 31, 2020

This morning, the Maritime Employers Association (MEA) received a 72-hour strike notice from the Canadian Union of Public Employees (CUPE) Local 375 informing them of a strike at Termont (Montreal) beginning Monday August 3, at 7:00 am until Friday August 7, at 06:59 am, a period of four days.

The strike will target operations at Termont's two terminals, Viau and Maisonneuve.

This action follows previous work stoppages this week at the Port of Montreal, initiated by CUPE Local 375 as well as the International Longshoremen's Association (ILA) Local 1657.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Single Window Initiative (SWI) becomes mandatory August 17, 2020

Toronto, July 28, 2020

The Canada Border Services Agency (CBSA) has announced that the Single Window Initiative (SWI), scheduled to become mandatory as of April 1, 2020 but delayed due to the COVID-19 pandemic, will become effective August 17, 2020.

As of this date, the existing OGD PARS and RMD service options will be decommissioned and any import declarations submitted via OGD PARS and RMD will be rejected.

CBSA created the SWI in order to electronically communicate with Participating Government Agencies (PGAs) to better identify goods with import requirements, and exchange that information with the PGA at time of release.

Universal Logistics has continued to use SWI for all PGA release requests since October 2018, however, because the program was not mandatory during that period CBSA did not require complete information for all areas.  Effective August 17, 2020 importers will be required to provide all required information at time of import.

As noted in our February 2020 issue of Route, additional fees will be implemented once SWI becomes mandatory.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

72-Hour Strike to Begin July 27 at Port of Montreal

Toronto, July 24, 2020

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Friday, July 24, 2020:

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Do you have your SFCR License yet?

Toronto, July 16, 2020

If you are a food business, a Safe Food for Canadians Regulations (SFCR) Licence may now be required (with certain exceptions) to import food into Canada.

The SFCR came into force January 15, 2019, with a phased in approach based upon food commodity, type of activity and business size.  After the initial January 2019 implementation, the next phases are July 15, 2020 (most importers) and July 16, 2021 (for companies with annual food sales of $100,000 or less or that have 4 or less employees).

Most businesses will require a licence effective July 15, 2020.  In order to apply for a SFCR licence, businesses will need to attest that they have preventive controls in place.

The timelines for complying with licensing, preventive controls, preventive control plan and traceability requirements vary by food, activity and size of the food business.  For information relevant to your food business, select the SFCR timelines that apply to you from the list below:

• Timetable: Dairy products, eggs, processed egg products, processed fruit or vegetable products
• Timetable: Fish
• Timetable: Meat products and food animals
• Timetable: Fresh fruit or vegetables
• Timetable: Honey and maple products
• Timetable: Unprocessed food used as grain, oil, pulse, sugar or beverages
• Timetable: Food additives and alcoholic beverages
• Timetable: All other foods (manufactured foods)

Food businesses must enrol at My CFIA to apply for a licence.  The Canadian Food Inspection Agency (CFIA) will not accept SFCR licence applications sent by email or fax.  Once your application is submitted, CFIA will generally issue a licence in approximately 15 days.

The CFIA has also created an advanced search tool called the Guidance Finder, which lets users find information about SFCR requirements by specifying activity type, food commodity, method of production and document type, along with interactive tools and timelines.

Although the CFIA announced on April 7, 2020 that due to COVID-19 they would not be prioritizing compliance activities for SFCR, they have not yet determined a firm date by which imported shipments will be rejected without a valid SFCR Licence.  CFIA are recommending all importers (where required) obtain their SFCR Licence in order to avoid delays once the regulations are enforced.

For more information about the Safe Food for Canadians Regulations, visit inspection.gc.ca/safefood or call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Port of Montreal Labour Negotiations Update

Toronto, July 9, 2020

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, July 9, 2020:

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Longshoremen at Port of Montreal to go on 40-hour strike this week

Toronto, June 30, 2020

The union representing longshoremen at the Port of Montreal confirmed Tuesday that some of its members will strike later this week.  The strike is being carried out as part of the negotiations for the renewal of the longshoremen's collective agreement with the Port, which expired December 31, 2018.

The 1,125 longshoremen, members of the Canadian Union of Public Employees, have been engaged in ongoing labour negotiations with the Maritime Employers Association (MEA).  These negotiations resumed recently after a ruling by the Canada Industrial Relations Board to deny the MEA request to designate port services as essential services.

The strike is expected to last from Thursday, July 2 at 3:00 p.m. until Saturday, July 4 at 6:59 a.m..  It will mainly affect union members who work at the two Montreal Gateway Terminals (MGT) at the Port of Montreal.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

Are you ready for CUSMA/USMCA on July 1, 2020?

Toronto, June 5, 2020

On July 1, 2020, the new CUSMA/USMCA/T-MEC agreement will replace the existing NAFTA free trade agreement for imports into Canada, USA and Mexico.

In order to continue to benefit from duty free entry, of qualifying goods, existing Blanket NAFTA Certificates of Origin must be replaced with valid Blanket Certifications for the period of July 1, 2020 – December 31, 2020.

It’s important to remember the new agreement isn’t just a name change, the Rules of Origin have changed for many commodities.

Not sure where to start?  We can review your existing NAFTA Certificates with the new Rules of Origin to determine if your products still qualify.  Furthermore, we can also assist with preparation of the new Blanket Certification, and contact your vendors directly, so you’re ready for July 1, 2020.  Contact Universal Logistics for a quote.

Proof of Origin Requirements
Importers should obtain valid Blanket Certifications of Origin under the new regulations, or ensure exporters are prepared to include the applicable 9 data elements on shipping documents as outlined in the Origin Procedures Annex 5-A:

1. Indicate whether an Importer, Exporter or Producer Certification of Origin
2. Name, Address and Contact Information of the Certifier
3. Name, Address and Contact Information of the Exporter (if different from the certifier)
4. Name, Address and Contact Information of the Producer (if different from the certifier)
5. Name, Address and Contact Information of the Importer (if known)
6. Description and HS Tariff Classification of the Good(s)
7. Origin Criteria as set out in Article 4.2: Originating Goods (refer to page 4-4)
8. Blanket Period (up to 1 calendar year)
9. Authorized Signature and Date

The Certification must be signed and dated by the Certifier and accompanied by the following statement:

“I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate.  I assume responsibility for proving such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification.”

Although the new agreement does not have a formal Blanket Certification form, Universal Logistics has prepared a template for your use:

• CUSMA Certification of Origin
• USMCA Certification of Origin

For detailed information on the new agreement:

• Canada – CUSMA
• USA – USMCA
• Mexico – T-MEC

For more information or to engage Universal’s full CUSMA/USMCA/T-MEC Management Service, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

COVID-19 Remission Order not just for PPE

Toronto, May 28, 2020

On May 7, 2020 we advised that the Government of Canada waived tariffs on a vast array of Personal Protective Equipment (PPE) and medical goods to provide relief during the COVID-19 crisis.  Both the Canada Border Services Agency (CBSA) and the Department of Finance have now confirmed this relief goes well beyond the intended PPE and, in fact, includes all imported goods falling within the stated HS tariff classifications.

Remission of duty is 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 files, on request, the evidence or information that the Canada Border Services Agency requires to determine eligibility for remission;
	d)	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
	e)	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.

As the validity of the remission relies on the importer to prove the declared classification is correct upon request by CBSA, we would recommend obtaining Binding Rulings, where applicable, in order to avoid potential re-assessment of duty and associated penalties.

Contact us if you would like to ensure the benefits of this duty-free Remission Order are applied to your qualifying imports, and Universal Logistics will request Binding Rulings from the CBSA on your behalf (Consulting fees will apply).

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Canada-U.S. border closure extended to June 21, 2020

Toronto, May 19, 2020

Prime Minister Justin Trudeau stated today during his daily COVID-19 update that Canada and the U.S. had come to an agreement to further extend the border closure to non-essential travel by another 30 days.  The mutual agreement, initially put in place in March and extended in April, was set to expire May 21, 2020, but has now been extended until June 21, 2020.

Supply chains, including trucking, are not impacted by this measure and the movement of commercial goods across the border is unaffected.  “Non-essential” travel pertains to travel that is considered tourism or recreational in nature.

On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms.  This 14-day self-isolation does not pertain to trans-border truck drivers, the full exceptions are:

Exceptions

Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people.  For example, this exemption would apply to:

• healthy workers in the trade and transportation sector who are important for the movement of goods and people across the border, such as truck drivers and crew on any plane, train or marine vessel crossing the border; or
• healthy people who have to cross the border to go to work, including health care providers and critical infrastructure workers.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Canadian tariff relief for COVID-19 PPE and certain medical goods

Toronto, May 7, 2020

To provide further relief during the COVID-19 crisis, the Government of Canada is waiving tariffs on certain medical goods and Personal Protective Equipment (PPE), imported on or after May 5, 2020.  Following are the product categories eligible for relief:

• Face and eye protection
• Gloves
• Protective Garments and the Like
• Disinfectants/Sterilization products
• Wipes
• Medical Consumables and Other Products

In the News release, Finance Minister Bill Morneau announced the action is to keep Canadians safe by further ensuring access to Personal Protective Equipment and other necessary medical equipment.  This tariff relief will reduce the cost of necessary supplies for Canadian businesses, which face tariffs of up to 18 per cent in some instances, help protect workers and ensure our supply chains can keep functioning well.  Mr. Morneau stated, “Our first priority is the health and safety of Canadian Businesses.  By removing financial barriers, we’re making sure Canadians and Canadian businesses can access the critical medical goods they need during the COVID-19 crisis.  Our government remains focused on making sure workers have the protective equipment they need, that our supply chains continue to work well, and that Canadians remain safe and healthy.”

Tariff relief for these goods will remain in place for as long as necessary to deal with the COVID-19 crisis.

The Canada Border Services Agency (CBSA) issued Customs Notice 20-19 “Certain Goods Remission Order (COVID-19)”, to outline the additional tariff relief to importers of eligible goods (list reproduced below) on or after May 5, 2020.  This remission of duty does not apply to goods imported prior to May 5, 2020.

All imports utilizing this remission order for relief of customs duties must also include all relevant documents (e.g. copy of original Form B3-3, bill of lading, sales invoice, waybill, sales contract, etc.) that demonstrate that the imported good matches the list of goods in Appendix A, was imported into Canada on or after May 5, 2020, and is subject to customs duties.

Remission is granted under the following conditions:

Examinations and Verifications
Importations may be subject to examination at the time of importation and to post-release verification for compliance with the Tariff Classification, Valuation, Origin and Marking programs, and any other applicable programs or provisions administered by the CBSA.  If non-compliance is encountered by the CBSA, in addition to assessments of any applicable customs duties and taxes, penalties may be imposed and interest will be assessed, where applicable.

Following is the list with description of goods, based on tariff classification, which are eligible for relief under this Order.

Goods eligible for relief under the Certain Goods Remission Order (COVID-19)
*The descriptions below are for illustrative purposes only. Customs duty relief is applicable to all goods under these tariff items.

Tariff Item	Description*
Face and eye protection
3926.90.99	Plastic face-masks, without mechanical parts, with or without a replaceable non-woven filter
6307.90.99	Face-masks of other textile materials
Gloves
3926.20.91	Other disposable plastic gloves
3926.20.92	Non-disposable plastic gloves
4015.11.00	Surgical rubber gloves
4015.19.90	Other rubber gloves
6116.10.00	Knitted or crocheted gloves which have been impregnated, coated or covered with plastics or rubber
6216.00.00	Textile work gloves that are not knitted or crocheted
Protective Garments and the Like
3926.20.93	Other articles of apparel and clothing accessories, of plastics, containing not more than 25% by weight of woven fabrics of man-made fibres, coated on both sides with polymers of vinyl chloride
3926.20.94	Other articles of apparel and clothing accessories, of plastics, combined with knitted or woven fabrics, bolducs, nonwovens or felt, containing woven fabrics of more than 50% by weight of silk
3926.20.95	Other articles of apparel and clothing accessories, of plastics, combined with knitted or woven fabrics, bolducs, nonwovens or felt
3926.20.99	Other articles of apparel and clothing accessories, of plastics
4015.90.90	Other garments made of rubber sheeting
6113.00.90	Other garments, made up of knitted or crocheted fabrics of heading 59.03, 59.06 or 59.07
6114.20.00	Other garments, knitted or crocheted, of cotton
6114.30.00	Other garments, knitted or crocheted, of man-made fibres
6114.90.00	Other garments, knitted or crocheted, of other textile materials
6210.10.90	Other garments made up of felt or nonwovens whether or not impregnated, coated, covered or laminated (fabrics of heading 56.02 or 56.03)
6210.40.90	Other men’s or boys’ garments of woven fabrics that are impregnated, coated, covered or laminated (fabrics of headings 59.03, 59.06 or 59.07)
6210.50.90	Other women’s or girls’ garments of woven fabrics that are impregnated, coated, covered or laminated (fabrics of headings 59.03, 59.06 or 59.07). This includes unisex garments.
6211.32.00	Coveralls (men's or boys' - of cotton)
6211.33.00	Coveralls (men's or boys' - of man-made fibres)
6211.39.90	Other garments (men's or boys' - of other textile materials)
6211.42.00	Other garments of cotton (women's or girls')
6211.43.90	Other garments of man-made fibres (women's or girls')
6211.49.99	Other garments of other textile materials (women's or girls’)
6217.10.00	Other made up clothing accessories
6505.00.10	Hair-nets
Disinfectants / Sterilization products
2208.90.29	Alcohol solution - undenatured, 75% ethyl alcohol
3808.94.10	Hand sanitizer, in liquid or gel form, or rubs and wipes impregnated with alcohol or other disinfectants, if in packages <1.36 kg each; Other disinfectant preparations put up in forms or packings for retail sale in packages <1.36 kg each, containing alcohol, benzalkonium chloride solution or peroxyacids, or other disinfectants such as hydrogen peroxide. This includes sodium dichloroisocyanurate (NaDCC) and calcium hypochlorite (65-70% active chlorine).
Wipes
6307.10.10	Industrial shop towels, hemmed, of a width of 43 cm or more but not exceeding 56 cm and a length of 43 cm or more but not exceeding 61 cm, of unbleached woven fabrics solely of cotton or of cotton and man-made fibres, measuring per single yarn 420 decitex to 1,000 decitex and having not less than 78 yarns but not more than 133 yarns per 10 cm in the warp and not less than 78 yarns but not more than 137 yarns per 10 cm in the weft, of a weight of 135 g/m2 or more but not exceeding 203 g/m2
6307.10.90	Other floor-cloths, dish-cloths, dusters and similar cleaning cloths
Medical Consumables
3926.90.99	Plastic urine bags, with outlet tap and non-return valve
6307.90.93	Other made up articles of textile (swabs), of cotton or other vegetable textile fibres, except solely of jute
6307.90.99	Other made up articles of textile (swabs), of other textile materials
Other Products
3401.11.90	Soap (in bar form)
3401.20.90	Soap (in liquid, powder or other forms)
3401.30.00	Organic surface-active products and preparations for washing the skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap
3923.21.90	Sacks and bags (including cones), of polymers of ethylene
7324.90.00	Sanitary ware, Kidney basins (stainless steel)

For more information please visit our web site for Coronavirus (COVID-19) Alerts along with COVID-19 trade related FAQs.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Proposed U.S. aluminum import monitoring system

Toronto, May 1, 2020

The U.S. Department of Commerce is requesting public comments on the establishment of an Aluminum Import Monitoring and Analysis (AIM) system.

A Proposed Rule was published in the U.S. Federal Register on Wednesday, April 29 seeking comments by May 29.  The new system would replicate the current Steel Monitoring system which requires an import license to be obtained and the license number stated on the import CF7501 customs entry.

This rule, if implemented, would require importers, or their customs broker, to obtain the required license prior to import (up to 60 days in advance of shipment) for aluminum falling under one of the following HTS codes: 7601, 7604, 7605, 7606, 7607, 7608, 7609, 7616.99.51.60, and 7616.99.51.70.  These are the same HS classifications which are subject to the additional 10% Aluminum Tariff (Section 232) upon import to the U.S..

An import license will not be required on informal entries of aluminum products, such as merchandise valued at less than $2,500.  For shipments containing less than $5,000 worth of aluminum, applicants can apply for a reusable Low-Value License instead of obtaining a single-entry license for each import.

Following is additional information, along with the required data needed, to obtain the import license:

You may submit comments through the Federal eRulemaking Portal at https://www.Regulations.gov, Docket ITA-2020-200408-0103.  Comments may also be submitted by mail or hand delivery/courier, addressed to Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance, Room 1870, Department of Commerce, 1401 Constitution Ave. NW Washington, DC 20230.

As with the existing Steel Import Monitoring, should the Aluminum Import Monitoring become effective, Universal Logistics may obtain the required license needed for our clients, as required.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

Coronavirus (COVID-19) Update By Mode of Transport

Toronto, April 28, 2020

As the Coronavirus (COVID-19) outbreak continues to evolve, Universal Logistics is doing everything we can to support our clients and to keep you informed of the ever changing business environment and how it is impacting our industry.

The following information has been gathered by mode of transport from news sources as of Tuesday, April 28, 2020:

COVID-19 – Universal Logistics Fully Operational
Further to the recent Canadian and U.S. government announcements regarding non-essential business closures, supply chain support services (transportation/distribution/logistics) have been declared essential services/businesses in the Canadian Provinces and U.S. States where we operate our own offices (Ontario, Quebec, New York and Ohio).  As such, Universal Logistics Canada and Universal Logistics USA will continue to be in full operation.

BORDER UPDATES:
China Crackdown on Shoddy PPE Exports Pushing Air Cargo Rates Even Higher (Ciffa, April 28, 2020)
A Beijing crackdown on shoddy medical exports has led to surging air cargo costs and congestion in South China.

Following widespread complaints of defective personal protective equipment (PPE), the Chinese authorities have tightened quality controls and increased customs inspections.

“In Shanghai, customs brokers have raised rates for export clearance by up to six times, due to extra paperwork and processing time,” according to Norman Global Logistics.

The company said: “So far this is impacting the Hong Kong, Guangzhou and Shenzhen regions, but we expect it to happen in the rest of the country, as at least 90% of all medical cargo will require customs inspection.”

Canada-U.S. Border Closed to Non-Essential Travel; Trade Will Keep Moving
The closure of the Canada-U.S. border to non-essential travel has been extended to May 20, 2020. All persons seeking entry into Canada for the purpose of commerce, trade, economic services and supply chains are being processed. This travel is essential and is not to be restricted.

Non-essential travel includes, but is not limited to: tourism; recreation; shopping for non-essential goods; and/or sightseeing.

AIR UPDATES:
Air Freight Market Continues its Dramatic Evolution
There appears to be no end in sight for soaring air freight rates as demand for freighters rises in response to the surge in demand for Personal Protective Equipment (PPE). And there are fears, with the next Chinese holiday due from May 1-5, that prices might go even higher in the last week of April and into early May.

Freighters are flying maximum hours, and available capacity is selling out almost immediately. Most freighter carriers are sold out through May and there is little room to add additional flights. For comparison, recent data from Seabury showed that the global widebody freighter fleet is flying close to 17% more block hours than it did in January. So aircraft are going to require maintenance in the coming months which will pinch capacity ever further.

Air Canada Route Updates
In a positive sign for the airline industry, Air Canada has begun to launch new scheduled flights within North America and between North America and Europe which will add some much needed capacity to the overall market.

For a full list of Air Canada’s operating routes and route suspensions, please click here.

OCEAN UPDATES:

Carriers may have hit peak capacity reductions on main trades (Lloyd’s Loading List, April 28, 2020)

Container lines have been blanking (cancelling) large numbers of sailings to cater to reduced demand, which continues to be a huge issue for cargo planning for importers and exporters alike. But new figures show the worst of the cutbacks may now be passing. The volume of capacity withdrawn from container lines’ capacity may be about to peak, according to analysis.

With some lockdown restrictions starting to lift, especially across much of Europe, there is hope in the market that there could be a boost in container freight demand, but this is likely to be a short-term rather than a more comprehensive outlook, as many importers and retail outlets are wary of a potential second-string of lockdown measures should coronavirus case numbers start to see more increases.

PORT & RAIL UPDATES:
Port and Rail systems across North America are generally reporting smooth operations, with little disruption to services. Container dwell times at the docks and truck processing times at the majority of terminals are normal.

TRUCK UPDATES:

Tight capacity will drive year-end snapback in trucking markets (Freightwaves, April 28, 2020)

The “snapback” in freight markets is going to be hard and fast, driven by tighter capacity as drivers leave the current falling market, according to the chief economist of the leading third-party logistics providers’ (3PLs) trade association.

Long-time industry economist Noel Perry, now chief economist of the Transportation Intermediaries Association (TIA), advised this week that he sees a recovery in which volumes fall off sharply this quarter and into the third quarter, climb back slowly, but face a capacity crunch because of the number of trucks put “on the fence” by owners beaten down by low rates and volumes now.

And although he doesn’t see the volumes of the fourth quarter of 2019 returning for a few years, they will increase enough that he described a marketplace that “jumps up” later this year. “It usually takes us a quarter or two until we realize the need to change something, and by the time we start adding drivers, the marketplace is already tight,” he said.

“Trucks are parked and won’t be manned, so pricing should be relatively attractive once we get into late this year and next year,” Perry added. The impact from these developments, without putting a number on it, is that prices will “drop badly in 2020,” according to Perry. But he said he expected prices to move up “strongly” late this year and into next year “because they are making up the capacity pressures of two downward years.”

But looking into the future is particularly difficult this time around, he added, because “we just haven’t had a shock of this magnitude before.”

“I can tell you the industry will be surprised by the snapback,” he said. “There will be a time when there will be scrambling for trucks.”

For more information, please feel free to contact us directly.

COVID-19 Response Team
Mark Glionna, Vice President – Client Relations & Business Development
Tel. (905) 882-4880, ext. 1212  Email: markglionna@universallogistics.ca

John Leis, Director – Client Relations
Tel. (905) 882-4880, ext. 1215  Email: jleis@universallogistics.ca

Paul Glionna, Vice President – Systems Development & Operations
Tel. (905) 882-4880, ext. 1220  Email: pglionna@universallogistics.ca

Chris Cartan, Director – Operations
Tel. (905) 882-4880, ext. 1237  Email: ccartan@universallogistics.ca

David Lychek, Manager – Ocean & Air Services
Tel. (905) 882-4880, ext. 1207  Email: dlychek@universallogistics.ca

Debbie McGuire, Manager – Freight Solutions
Tel. (905) 882-4880, ext. 1308  Email: dmcguire@universallogistics.ca

William Sanchez, Manager – Truck Services
Tel. (905) 882-4880, ext. 1224  Email: wsanchez@universallogistics.ca

Vickey Ison, Office Manager – Cleveland
Tel. (440) 360-7850, ext. 100  Email: vison@universallogisticsusa.com

Canada-U.S. border closure extended another 30 days

Toronto, April 21, 2020

Prime Minister Justin Trudeau stated during his daily COVID-19 update on Saturday April 18, 2020, that Canada and the U.S. had come to an agreement to extend the border closure to non-essential travel by another 30 days.  The mutual agreement put in place last month was set to expire on April 21, 2020.

Supply chains, including trucking, are not impacted by this measure and the movement of commercial goods across the border is unaffected.  "Non-essential" travel pertains to travel that is considered tourism or recreational in nature.

On March 26, 2020, the Government of Canada put in place mandatory 14-day self-isolation for all persons entering Canada, even if they do not have COVID-19 symptoms.  This 14-day self-isolation does not pertain to trans-border truck drivers, the full exceptions are:

Exceptions

Consequently, an exception to the order to self-isolate for 14 days is being provided to workers who are essential to the movement of goods and people.  For example, this exemption would apply to:

• healthy workers in the trade and transportation sector who are important for the movement of goods and people across the border, such as truck drivers and crew on any plane, train or marine vessel crossing the border; or
• healthy people who have to cross the border to go to work, including health care providers and critical infrastructure workers.

For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.

CAED Decommissioning Delay

Toronto, April 16, 2020

Due to the COVID-19 pandemic, the Canadian Border Services Agency (CBSA) has delayed the decommissioning date of the Canadian Automated Export Declaration (CAED) system from June 30, 2020 to September 30, 2020.  The Canadian Export Reporting System (CERS) will replace CAED, which is the existing electronic export filing system.

Paper-based reporting, via the B13A – Export Declaration Form, will no longer be permitted as of June 30 2020.  Anyone presently using the paper reporting process will have to start using CERS on June 30, 2020.  However, anyone who now uses CAED will have until September 30, 2020 to switch to CERS.

The CBSA strongly encourages exporters and Customs service providers to activate their Canadian Export Reporting System (CERS) accounts as soon as possible.

For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 1207.

COVID-19 – Importing Medical Supplies into Canada

Toronto, April 1, 2020

The Canada Border Services Agency (CBSA) have issued Customs Notice 20-12 "COVID-19: Tariff Classification and Other Information to Import Medical Supplies", to provide useful information relating to the commercial import of medical supplies, as defined by the World Customs Organization (WCO).

This notice provides a detailed list of COVID-19 medical supplies along with available duty and tax relief, in certain circumstances, and how to assess the value for duty of donated supplies:

• Customs Notice 20-08: Imported Goods for Emergency Use in Response to COVID-19
• Memorandum D10-15-26: Goods to be employed in a Noxious Atmosphere
• Customs Valuation Handbook: How To Establish The Value For Duty of Imported Goods

In addition, the CBSA have requested that all customs release requests for these COVID-19 medical supplies include a notation of "URGENT – COVID-19" in the description of goods.  For Canadian customs clients of Universal Logistics, we have updated all applicable lines in our client databases to include this notation on release requests to the CBSA.

For more information please visit our web site for Coronavirus (COVID-19) Alerts along with COVID-19 trade related FAQs.

Brian Rowe
Director – Customs Compliance & Regulatory Affairs

Coronavirus (COVID-19) Update By Mode of Transport

Toronto, March 31, 2020

As the Coronavirus (COVID-19) outbreak continues to evolve, Universal Logistics is doing everything we can to support our clients and to keep you informed of the ever changing business environment and how it is impacting our industry.

The following information has been gathered by mode of transport from news sources as of Tuesday, March 31, 2020:

COVID-19 – Universal Logistics fully operational
Further to the recent Canadian and U.S. government announcements regarding non-essential business closures, supply chain support services (transportation/distribution/logistics) have been declared essential services/businesses in the Canadian Provinces and U.S. States where we operate our own offices (Ontario, Quebec, New York and Ohio).  As such, Universal Logistics Canada and Universal Logistics USA will continue to be in full operation.

BORDER UPDATES:
Canada-U.S. Border Closed to Non-Essential Travel; Trade Will Keep Moving
All persons seeking entry into Canada for the purpose of commerce, trade, economic services and supply chains are being processed.  This travel is essential and is not to be restricted.

Non-essential travel includes, but is not limited to: tourism; recreation; shopping for non-essential goods; and/or sightseeing.

U.S.-Mexico Border Closed; Trade Will Keep Moving
Following similar action along the Canadian border, the White House has closed the United States’ border with Mexico to non-essential traffic, but is exempting trade and commerce from the ban.

Canada Border Services Agency (CBSA) Update
CBSA COVID-19 Commercial Update to Industry Stakeholders as of March 30, 2020.

AIR UPDATES:
General Notice for Airfreight Rates
Air freight rates continue to soar upwards as demand outstrips capacity.  However, stabilization may be in sight as an increasing number of airlines are redeploying their passenger aircraft (PAX) to cargo-only services.  This should add some much needed supply into the strained airfreight industry.

UK Update – Critical Airport Services Under Threat of Collapse
Cargo and ground handling companies warned of the imminent collapse of their sector, which would bring airports across the UK to a halt and severely impact the UK’s supply chain.

The ground handling industry is a critical part of the UK aviation system, providing 90% of cargo handling at all UK airports and essential services like the handling and security processing of cargo and aircraft fuelling.  Without these services, aviation as a whole cannot function, and supply chains will collapse.

Currently, as more than 95% of flights are not operating, ground handling companies are not being paid.  While the industry has welcomed the UK Chancellor’s work retention package, low margins and staff comprising 70% of costs mean that the viability of the industry remains immediately unsustainable.

Countries around the world are facing similar drastic cuts to their domestic aviation industry and related businesses.  The threats seen in the UK are expected to spread to the global industry as a whole if a return to near-normal operations does not come soon.

Air Canada Route Updates
Air Canada will continue to operate domestic and international flights with a reduced schedule for the month of April.  For a full list of operating routes and route suspensions, please click here.

OCEAN UPDATES:
Shippers Shocked by Scale and Speed of Blanked Sailing Announcements
Carriers are rushing through blanked sailing announcements on a scale and speed never seen before, giving shippers very little chance to make alternative plans.

Last week, carriers had blanked two sailings due to the pandemic spread.  As of Sunday, this had increased to 45 blank sailings, according to data carried in the latest report from Sea-Intelligence Consulting.

It is not just the scale of the blanked sailings, but the speed with which they are being announced that is expected to create supply chain troubles for many clients.

Port of Vancouver COVID-19 Update
On-dock and off-dock operations throughout the Port of Vancouver remain fluid.Weather, storage capacity and export container and bulk cargo movement continue to be favourable.  High anchorage demand continues while vessel activity remains fluid.

Port of Montreal COVID-19 Update
Freight transport operations are running at full capacity.  No cancellations have occurred, and rail transport continues as scheduled.  Road transport and terminal operations are ongoing.

Port of Halifax COVID-19 Update
There are currently no restrictions at any terminals under Halifax Port Authority jurisdiction, and no operational changes have been required.

• Both container terminals, Ceres Halifax and PSA Halifax are currently offering full services.
• Pilots, tugs, marine traffic control are unaffected.
• CN Rail service with Canada and USA is unaffected.
• Import container dwell: Normal (within KPI measurement).
• Truck gate wait time average: Normal (within KPI measurement).
• Terminal truck turn time average: Normal (within KPI measurement).

RAIL & TRUCK UPDATES:
Trucking Demand that was Surging Last Week, Now “Falling Off a Cliff”
Truck freight volumes had been surging in Canada as the spread of COVID-19, and efforts to contain it, intensified.  But as businesses across North America slow and even halt operations, the entire trucking industry is staring down an implosion in large parts of the Canadian and U.S. freight market.

Fighting mass layoffs across the industry, the newly announced Canadian wage subsidies could potentially help keep thousands of trucking companies in business, particularly small carriers that work exclusively with automakers and other manufacturers that have temporarily closed operations.

CN COVID-19 Update
Canada - United States Border Remains Open to Rail
While non-essential travel over the U.S./Canadian border has been temporarily closed, the transportation of goods by train between the two countries is open & protected.

• Fluid CN rail network
• Fluid border crossings to and from Canada and the U.S.
• Available intermodal capacity
• Fluid Canadian inland terminals
• Fluid U.S. inland terminals, including Chicago & Detroit
• Door-to-door delivery for first & last-mile trucking

Port Gateways Remain Fluid for Import and Export Trade
All CN served port gateways on the West and East coasts of Canada, and Southern U.S., remain fluid:

• Port of Prince Rupert
• Port of Vancouver
• Port of Halifax
• Port of Montreal
• Port of Saint John
• Port of New Orleans
• Port of Mobile

CP COVID-19 Update
CP’s network remains fluid.  The Canada-U.S. border is open for commerce, with both national governments recognizing the necessity for ongoing cross-border trade.  Similarly, whether it is transporting fuel oil and propane, or foods, pharmaceuticals and disinfectants or moving grain to our ports, CP’s trains are continuing to move in Canada and the U.S.  The supply chain supporting essential railway operations also remains strong. 

For more information, please feel free to contact us directly.

COVID-19 Response Team
Mark Glionna, Vice President – Client Relations & Business Development
Tel. (905) 882-4880, ext. 1212  Email: markglionna@universallogistics.ca

John Leis, Director – Client Relations
Tel. (905) 882-4880, ext. 1215  Email: jleis@universallogistics.ca

Paul Glionna, Vice President – Systems Development & Operations
Tel. (905) 882-4880, ext. 1220  Email: pglionna@universallogistics.ca

Chris Cartan, Director – Operations
Tel. (905) 882-4880, ext. 1237  Email: ccartan@universallogistics.ca

David Lychek, Manager – Ocean & Air Services
Tel. (905) 882-4880, ext. 1207  Email: dlychek@universallogistics.ca

Debbie McGuire, Manager – Freight Solutions
Tel. (905) 882-4880, ext. 1308  Email: dmcguire@universallogistics.ca

William Sanchez, Manager – Truck Services
Tel. (905) 882-4880, ext. 1224  Email: wsanchez@universallogistics.ca

Vickey Ison, Office Manager – Cleveland
Tel. (440) 360-7850, ext. 100  Email: vison@universallogisticsusa.com

COVID-19 – FAQs to keep your freight moving

Toronto, March 27, 2020

Looking to keep abreast of issues impacting your freight movement during the COVID-19 pandemic? Visit our enhanced web site. Universal Logistics has added a new web page under Client Care dedicated solely to this critical topic: COVID-19 – Keeping your freight moving in uncertain times

You will find a list of FAQs covering the many issues you are facing during this ever-changing trade environment, and an inventory of all Coronavirus (COVID-19) Alerts sent to clients.

Click on our COVID-19 FAQ page to view the contents, and do not hesitate to contact us with questions or concerns. Remember, we're here to help.

Mark Glionna
Vice President – Client Relations & Business Development

COVID-19 – Universal Logistics fully operational

Toronto, March 24, 2020

Further to the recent Canadian and U.S. government announcements regarding non-essential business closures, supply chain support services (transportation/distribution/logistics) have been declared essential services/businesses in the Canadian Provinces and U.S. States where we operate our own offices (Ontario, Quebec, New York and Ohio).  As such, Universal Logistics Canada and Universal Logistics USA will continue to be in full operation.

Universal's priority continues to be the safety of our employees and a commitment to ensure the resources and services we provide our clients are uninterrupted.  We have a comprehensive work-from-home program currently in effect.  Where a physical employee presence is required, a skeleton staff is on site.  At our offices and warehouses, we are following all safety, hygiene and social distancing guidelines.

We are committed to helping our clients in these uncertain times.  Stay safe!

Michael J. Glionna
President

Logistics solutions... We're here to help!

Toronto, March 19, 2020

As the COVID-19 outbreak continues to evolve, we want you to know Universal Logistics is doing everything we can to support our clients through this difficult time.

Given this unprecedented situation, creative logistics solutions are needed to navigate the new obstacles you are facing.

Here are some examples of how we can help:

• Unexpected warehouse or business closures... Deliver the freight to Universal's warehouse facility for short-term storage until your shipment can be accepted.
• Reduced airfreight capacity and soaring air rates... Switch to an LCL ocean freight solution by shipping your UK to Canada/USA freight in our weekly Toronto/NYC ocean consolidations as a viable, cost-effective option.
• Limited availability of FCL containers on the Hong Kong/China to Canada trade lane... Increase your LCL shipping in our weekly Toronto ocean consolidation service.

As previously advised in our client Email Alert! of March 12th, Universal's priority is the safety of our employees and ensuring that the resources and services we provide our clients are uninterrupted.

We know you have a lot of questions – please remember we're here to help.  Contact us with any inquires and we'll assist you in any way we can.

For more information, please call Mark Glionna, Vice President – Client Relations & Business Development at (905) 882-4880, ext. 1212.