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January 2015

News and Views for the clients of Universal Logistics

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Canada – Korea Free Trade Agreement implemented

Korea export boxes

Under the new Canada-Korea Free Trade Agreement (CKFTA), which became effective January 1, 2015, numerous tariffs are being eliminated or phased out over the next 11years. Many tariffs are eliminated immediately, with the rest falling into these general phasing categories:

  • 3 years: Apparel
  • 3-5 years: Appliances, Consumer Electronics, Chemicals, Aluminum, Automotive (Light Vehicles), Automotive (Parts)
  • 3, 5 or 11 years: Ships
  • 5 years: Agriculture
  • 5-11 years: Footwear

As with NAFTA, a Certificate or Origin is required to take advantage of the reduced duty rates, and the goods must be imported directly from Korea to Canada.

For more information, contact Brian Rowe, General Manager – Customs Consulting Services.


Time shipments to avoid closures during Chinese New Year’s Holiday

Office and factory closures for the upcoming Chinese New Year can last from February18 to March5, depending on the country. But the potential for delays extends to the weeks just prior to the holiday, when there is usually a surge of shipments by companies trying to avoid the holidayclosure.

Contact Debbie McGuire, Manager – Freight Solutions for more information on the holiday schedule in the country where you do business.

Enhanced support for intellectual property rights


In a bid to combat copyright piracy and trademark counterfeiting, the Federal Government has given Royal Assent to a new Act that enacts new border enforcement measures under the Copyright Act and Trademarks Act. The new Act allows:

  • Customs officials to proactively search and detain suspected counterfeit trademark goods, labels or packaging as well as suspected pirated copyrighted goods
  • more information exchange between Customs officers and rights owners
  • increased access to the information rights holders need to facilitate civil enforcement

For more information, contact Brian Rowe, General Manager – Customs Consulting Services.

Is your product being targeted for Trade Verification?

Smart Customs Review

Do you know what parts for power trains, generating sets and cereal grains have in common? They are all on the listofitems that are verification priorities for Canada Border Services Agency (CBSA) in the first half of 2015.

The list (normally issued semi-annually in January and July) outlines targeted commodities for the coming period. In previous years the list was issued as a basic PDF commodity listing. New for 2015 is an active web-based list which provides much more detail, including why the commodity is being reviewed and the results of the review upon closure (See examples below).

Clients of Universal Logistics are notified on a commodity basis to be prepared for a potential verification while transactions of subject goods are reviewed by our Customs Consulting Services team to ensure compliance.

Fresh Cut Flowers Harmonized System Number(s): 0603.19.00
  • The risk identified is that fresh cut flowers may be misclassified as “other” fresh cut flowers, which attract a duty rate of 6%.

  • Flowers named in the Customs Tariff should be classified under their respective tariff items, which attract duty rates from 8% to 16%.

  • This verification priority was released in April 2012.

    *Additional revenue is still expected from self-adjustments.

  • The results show that many flowers specifically named in the Customs Tariff were misclassified as other fresh cut flowers.

  • A verification priority regarding the valuation of fresh cut flowers is also underway.
Generating Sets (New) Harmonized System Number(s): Heading 85.02
  • The risk identified is that generating sets could be incorrectly classified within Heading 85.02, instead of being properly classified elsewhere within the same position, and potentially be subject to a duty rate of 2%.

  • This verification priority was released in August 2014.

  • Results are not yet available.

If your company is not using Universal Logistics for customs brokerage – and you are unsure about your level of customs compliance – now is the time to ask for a free SMART Customs Review, available exclusively from Universal Logistics. This service includes a preliminary assessment of selected entries over a specific time period, covering key issues such as tariff classifications, related-party valuations and origin eligibility. You may even be eligible for refunds and duty drawbacks. And it’s all absolutely free.

For more information, contact Brian Rowe, General Manager – Customs Consulting Services.

Global Spotlight Quiz
Global Spotlight

Many streets in this country’s capital city appear to be frozen in time.

Global Spotlight Quiz

The trade status of this mystery country is about to change in a bigway

You would notice something very different about this country the moment you were transported to this destination. See if you can name it after looking at the picture and reading the following clues.

  • While this country has a low standard of living relative to Canada and the U.S., it has the highest doctor-to-patient ratio in the world.
  • There is only one international airport, but it is world-class and handles millions of passengers annually (including a lot of Canadians).
  • Ocean freight is handled through eight major seaports.
  • Only 5% of this country’s population has access to the open Internet.
  • The sale of Coca Cola is prohibited.
  • This country takes pride in having one of the world’s highest literacy rates.

Click here to see the answer

For more information about freight to/from this country, contact Debbie McGuire, Manager – Freight Solutions.

Woman at laptop

Want to know about world events
that could delay your shipments?
Read this newsletter.

Quick Tip

How to avoid unnecessary service disruptions

World events such as strikes, lock outs, bad weather or international holidays don’t have to delay your shipments, especially when it is easy to get advance notice of these problems in the general media or something much closer to home – this newsletter.

That’s just one more reason why Route should always be on your must-read list!

At Your Service Diane Richer, Team Leader
– Ocean Services (Asia)

Diane Richer, Team Leader – Ocean Services (Asia)

Diane Richer, Team Leader – Ocean Services (Asia)

Some of the most experienced people in the logistics business work at Universal Logistics and there is no better example than Diane Richer. She is an industry veteran with 33 years of experience (all with Universal Logistics), which she puts to good use in her current role as Team Leader – Ocean Services (Asia).

“I have a great team that works hard every day to expedite client import shipments along the Asian trade lane,” says Ms.Richer.

Diane can be reached by phone at (905) 882-4880, ext.232 or byemail.

January 2015

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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