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December 2018

News and Views for the clients of Universal Logistics

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Giving more in the Season of Giving

Our corporate wide adherence to family values includes an unending commitment to giving back that peaks during the holiday season. "We always try to best the previous year’s results and this year will be no different as our employees at every level and every location have stepped up like never before," said Company President Michael Glionna.

Mark & Michael Glionna and Universal’s HHTH Employee Fundraising Chart.

Most significant this year is the huge jump in funds raised for Hockey Helps the Homeless (HHTH), a Canadian charity that organizes and runs fantasy hockey tournaments across the country, and raises money to help fund the work of over 40 homeless support agencies. The funds raised by Universal benefit 360Kids, a local organization that supports homeless and underprivileged youth with a wide range of programs to help rebuild their lives. In total, Universal contributed $43,600, an all-time record, with important contributions coming from the six employee teams that engaged in a friendly fundraising competition won by Team Universal Flames, which raised $3,868! (The goal was $1,500 per employeeteam).

The spotlight also needs to shine on Tina Scharnberg and Phoebe Shum, who managed the overall campaign and made key contributions behind the scenes.

Even more giving is just ahead as our employees are enthusiastic supporters of the other two charities we support annually: the Vaughan Food Bank and the Toy Mountain gift drive. "It is a great feeling knowing that the bags and bags of food and gifts contributed by our employees will bring joy this holiday season to those who are less fortunate," said Mark Glionna, Vice President – Client Relations & Business Development.

CPTPP free trade agreement effective December 30th

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has now been ratified by seven signatories and will become effective in Canada, Australia, New Zealand, Japan, Mexico and Singapore on December 30th and Vietnam on January14th.

Canada is now the only G7 country with trade agreements with all other members of the G7.

The 11 CPTPP participating countries are: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, but the deal has yet to be ratified in Brunei, Chile, Malaysia and Peru asyet.

There was an economic incentive to have six countries on board by December31st, as some of the CPTPPs tariff cuts are immediate, but others, including the most sensitive agricultural and automotive products, will be phased out over timelines of a decade or more.

The CBSA issued their CPTPP Implementation Customs Notice 18-22 on December 5, 2018, along with Regulatory Amendments issued under Customs Notice 18-27 on December 27, 2018.

Duty Elimination Schedule
As soon as the agreement comes into force, 90% of tariffs on goods will be duty free.The Staging category for Canada is from implementation date to phase-in period to 12-year time frame duty reductions to duty free status.

Please refer to the Tariff Elimination Schedules for each country and the full text of the agreement.

Rules of Origin
Entitlement to the CPTPP tariff treatment is determined in accordance with the rules of origin set out in Annex3-D of Chapter3 of the CPTPP.

Proof of Origin
The required proof of origin is referred to as a certification of origin and consists of a set of data elements contained in Annex3-B of Chapter3, that may be placed on any document. Additional information concerning the CPTPP certification of origin is contained in Article3.20 of Chapter3.

Under the CPTPP, importers, exporters or producers of CPTPP eligible goods may complete the certification of origin. In order to claim the preferential tariff treatment accorded under the CPTPP, importers must have the certification of origin in their possession.

For more information visit the FAQs issued by Global Affairs Canada or contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs

China makes minor tariff concession on U.S. vehicles and parts

U.S - China flag

In a bid to resolve the current trade war between China and the U.S., the Chinese have agreed to temporarily suspend a 25 per cent tariff on U.S.-made vehicles and auto parts, effective January 1, 2019.

The tariff, introduced in July, was a countermeasure for a 25per cent tariff the United States placed on Chinese vehicles and parts.

U.S. President Donald Trump welcomed the news while a representative for Chinese car makers said the tariff cut indicates both countries "are on track to solve the trade war".

This is the second trade concession made recently by China to appease the U.S.. The first was an agreement to buy more U.S. soybeans, announced after the leaders of both countries met in Argentina on December1.

Significant tariffs, applied by both countries, remain.

For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.

Plant closings by car makers are bad news for trucking companies

Transport truck

Less demand for trucking is the inevitable result of plant shutdowns on both sides of the border, announced recently by GM and Ford. The car makers say the changes are necessary to meet changing consumer preferences and higher costs of production created by new and higher tariffs.

Contact William Sanchez, Manager – Truck Services to learn more about the new market conditions and how they might benefit your business.

Time for NAFTA renewals


Need to submit a Blanket NAFTA Certificates of Origin renewal for 2019? Assume it is business as usual because the "new" NAFTA is still months away, at best.

You also have the option of simplifying your life by taking advantage of ourNAFTA Management Service, the fast, easy way to ensure your NAFTA Certificates of Origin are fully compliant. This is important because significant AMPS (Administrative Monetary Penalty System) transactional penalties could apply if you make a claim for preferential treatment without a valid NAFTA Certificate.

Get started now by forwarding your 2019 Blanket NAFTA Certificates to or contact Oswaldo Arteaga, Manager – Quality Assurance, for more information.

Global Spotlight Quiz
Global Spotlight

This building is one of "The Three Graces" that continue to dominate the port’s world famous waterfront more than a century after they were built to house maritime trade power brokers.

Global Spotlight Quiz

How many clues do you need to name a city whose waterfront is a UNESCO World Heritage site?

  • Holds the Guinness Book of Records title for being the Capital of Pop – thanks, in part, to four lads that made a big splash on the music scene in the60s.
  • This city is a film industry hotspot.
  • Once boasted the world’s most advanced Maritime technology, including the first commercial wet dock, built in1715.
  • After years of decline, port operations picked up after the trip from the Far East was shortened by the opening of the widened Panama Canal in2016.
  • The world’s most advanced passenger railway line opened here in1830.
  • The world’s first lending library opened here in1758.

Click here to see the answer

For more information about shipping freight to or from this city, contact Debbie McGuire, Manager – Freight Solutions.

Quick Tip

Quick Tips

When Incoterms are incomplete

The shipping term FOB (Free on Board) is incomplete when the port of shipment and country are omitted. Moreover, you could end up paying extra if an incorrect assumption (guess) is made about your port of shipment (many countries have multiple ports of shipment).

For example, if you were buying from Zurich, Switzerland, there could be four different ports of shipment, including Hamburg, Germany, which would be correctly reported as FOB Hamburg, Germany.

Kayla Sibbald, Customs Operations – Fort Erie

Kayla Sibbald, Customs Operations – Fort Erie

At Your Service: Kayla Sibbald, Customs Operations – Fort Erie

An employee of Universal Logistics since May 2012, Kayla Sibbald is a valued member of our
Fort Erie Customs Operations team.

Her primary responsibility is processing the Customs release of cargo that is transported across the Fort Erie Peace Bridge.

Kayla can be reached by phone (905) 871-0220 or by email.

December 2018

is produced monthly for the clients of Universal Logistics. Reader comment and story ideas are welcome. Comments of general interest to all Route readers will, with the permission of the writer, be published. Copyright ©
Universal Logistics Inc. All rights reserved. Reproduction for any commercial use is strictly prohibited.

Route is produced by Universal Logistics. Editor: Bettina Scharnberg. While every effort has been made to ensure the accuracy of information contained herein, Universal Logistics accepts no responsibility or liability for errors or omissions. Written correspondence should be forwarded to:

Universal Logistics Inc.
125 Commerce Valley Drive West
Suite 750, Thornhill, Ontario L3T 7W4
Tel: 905-882-4880 Fax: 905-882-2250
Attention: Bettina Scharnberg
Universal Logistics

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