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January 2017

News and Views for the clients of Universal Logistics

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2017 HS Tariff Classifications released


The new version of the Harmonized System (HS) Nomenclature, created to determine Customs tariffs and facilitate the collection of international trade statistics, was enacted on January1,2017. It contains 5,386 six-digit subheadings and serves as the language used by over 200 countries to manage international trade.

This update to the HS includes 233 sets of amendments, divided as follows: agricultural sector85; chemical sector 45; wood sector 13; textile sector15; base metal sector6; machinery sector25; transport sector18; other sectors26.

Specific changes of note include:

  • Agricultural and food sector: Chapter 03 fish and fish products, more specific product detailing; changes in Chapter 5, 8, 12, 13, 16 and 22.
  • Mineral sector: Chapter 27 preparation method, wording changes.
  • Chemical sector: Changes in Chapter 28, 29, 30, 31, 37, 38; anti-malarial products, amendment to several categories of pharmaceutical products (specific controlled products and pharmaceutical preparations).
  • Plastic sector: Chapter 39, Ethylene-alpha-olefin copolymers.
  • Wood sector: Chapter 40, 42, 44 forestry products, wood species, bamboo products, rattan products, tropical wood and non-tropical wood amendment.
  • Paper sector: Chapter 48 newsprint, wording changes in chapter notes.
  • Textile sector: Chapter 54, 55, 57, 60 and 63, fabrics of polyethylene monofilament, bed nets.
  • Ceramic products: Chapter 68, 69, chapter notes wording changes.
  • Base metal sector: Chapter 82, 83, hand tools, articles of base metal and clothing and textile accessories.
  • Machinery sector: Chapter 84 and 85, multi-component integrated circuits and electric accumulators, water-jet cutting machines, machine centers and LED lamps.
  • Transport sector: Chapter 87, hybrid, plug-in hybrid and all-electric vehicles.
  • Other goods of chapter 95: New subheading in Chapter 96 for monopods, bipods, tripods and similar articles.

Many of the most recent changes were requested by the Food and Agriculture Organization of the United Nations (FAO). Other key changes were introduced to monitor trade of substances controlled under the Chemical Weapons Convention.

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

Agreement reached on new east coast deep-water port

Ultra-large container ship

Plans have been announced for the construction of a new mega-terminal in Sydney, Nova Scotia, specifically designed to accommodate the world’s largest container vessels (18,000 plusTEUs).

The builder, U.S. container terminal operator Ports America, has signed an agreement with Sydney Harbour Investment Partners (SHIP), but building will only commence after establishing sufficient volume commitments from container lines to make the project worthwhile, and construction from that point is projected to take about 2years.

The new terminal, to be named Novaporte, is the ideal deep-water port for ultra-large container vessels and an excellent choice as a gateway for intermodal services to inland points in Canada and the U.S., due to its strategic location as the closest North American point on the Great Circle Route for vessels from Europe and Asia via the SuezCanal.

For more information, contact Chris Barnard, Vice President – Projects & Market Development.

Customs compliance priorities announced for 2017

Canada Customs has released the business categories that will be verification priorities in2017.

The list of targets includes tariff classification of commodities ranging from olive oil and sausages to photographic film and railway equipment.

In addition to HS Tariff Classifications, new to the verification priorities for 2017 is the valuation of preparations and pastry cooks’ products and country of origin of jewelry.

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

Difficult year for container shipping industry

Hanjin container ship

In over 60 years, the container shipping sector has never had a more tumultuous year than 2016.

There were five major mergers and one bankruptcy (Hanjin Shipping) that left over 100 ships stranded in ports around the world. It is estimated that the industry lost $5 – $10 billion and even the market leader, Maersk Line, lost money in 2016, after posting a $1.3 billion profit in 2015.

The market situation for ocean carriers will still be very challenging for 2017, as rates are on an upward trend and demand remains low.

For more information, contact Chris Barnard, Vice President – Projects & Market Development.

Revised certification process for U.S. meat and
poultry imports to Canada

Meat processing plant

Effective February 1, 2017 the U.S. Department of Agriculture (USDA) will no longer require the signature of a USDA Veterinarian Medical Officer on the Certificate for Export of Meat and Poultry Products – the new form will still require the Export Certification signature of a USDA officer, however, this may be any officer handling the file.

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

Anti-dumping ruling made against three countries


On January 25, 2017, the Canada Border Services Agency (CBSA) made a determination that provisional duties are payable on selected fabricated industrial steel components originating in or exported from China, Korea and Spain.The list of products includessteel beams, columns, braces, frames, railings, stairs, trusses, conveyor belt frame structures and galleries, bents, bins, chutes, hoppers, ductwork, process tanks, pipe racks and apron feeders.

These fabricated structural steel and plate-work components are only subject to the additional duties when for use in structures for:

  1. oil and gas extraction, conveyance and processing;
  2. mining extraction, conveyance, storage, and processing;
  3. industrial power generation facilities;
  4. petrochemical plants;
  5. cement plants;
  6. fertilizer plants; and
  7. industrial metal smelters;

The provisional duties (ranging from 0.2% to 54.5%), effective January 1, 2017, were applied after the CBSA made a preliminary anti-dumpingruling against China, Korea and Spain that included a determination of subsidizing from China.A final determination is expected on or before April25,2017.Similar investigations involvingUnited Arab Emirates, the UK and Northern Ireland weredropped.

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

Global Spotlight Quiz
Global Spotlight
This is a sure sign that spring has
arrived in our mystery city.

Global Spotlight Quiz

What city has it hands on the levers of international trade worth trillions?

This mystery city is often in the news. See if you can name it after reviewing the following visual and written clues.

  • Great things have been promised by the new chief decision maker.
  • This city is home to one of the world’s most recognizable buildings.
  • The annual National Cherry Blossom Festival marks the arrival of spring, with more than 1.5 million visitors commemorating the 1912 gift of 3,000 cherry trees from the Mayor of Tokyo to thiscity.
  • Not acityor state but a unique "federal district", created specifically to be the seat ofgovernment.
  • Planes taking off from this city’s major airport have to make a sharp left turn to avoid hitting a nationalmonument.
  • The area was originally a mosquito-infested swamp; today some consider it to be a politicalswamp.
  • There is 1 lawyer for every 19 residents of this city.
  • In 1814, British soldiers invaded this city and burned down the most important government building. The invaders were eventually repulsed, a victory commemorated with many statues, including one built, in part, with melted down British canons.
  • This city’s tallest edifice, rising 555 feet, was once the world’s tallest structure.

Click here to see the answer

For more information about freight to/from this city, contact Debbie McGuire, Manager – FreightSolutions.

Quick Tip

Issue instructions in writing

Always put your requirements in writing to avoid misunderstandings. What is completely obvious to you may be seen much differently by another person. Don’t assume your suppliers and/or logistics service providers know what you are thinking (e.g. “Of course I wanted that to go by airfreight…it’s our year end!”).

Eliminate the possibility of errors by clearly communicating your instructions in writing and then having a record in the event things do go wrong.

Maggie Gragasin – Accounts Payable

Maggie Gragasin –
Accounts Payable

At Your Service: Maggie Gragasin – Accounts Payable

A member of the Head Office Accounting Team for over 20years, Maggie Gragasin handles Accounts Payable for both Universal Logistics Inc. and Universal Logistics USA Inc..

Unlike the typical Accounts Payable representative, she is friendly and calming at all times and welcomes inquiries from vendors.

Maggie can be reached by phone (905)-822-4880, ext.238 or email.

January 2017

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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