CARM: What all importers need to know about CARM

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September 2018

News and Views for the clients of Universal Logistics

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Putting a face to the name

There has been a big change in our company website – and you will notice it the moment the home page opens and you see, for the first time, what has been the strength of our firm all along: ourpeople.

Universal Logistics home page

"We have done a good job over the years of explaining why it pays to use our freight forwarding and customs brokerage services," says Company President Michael Glionna. "Now we are showing you the top level employees who manage our business and oversee the work done by the some 80 employees who handle the day-to-day needs of our valued clients. That only makes sense because our employees are the true strength of our company.

"I am also proud to point out that the photo collage includes black and white photos of my grandfather, Frank Glionna Sr., who founded the company and served as President from 1949 – 1957, and my father, Frank Glionna Jr. who was President from 1957 – 1995. Frank Sr. is in the bottom row, far right, Frank Jr. is in the top row, center. It was important to include them because they instilled the core values – innovative logistics solutions, traditional family values – that guide everything we do.

Meet Our Team web page

The people focus extends to the individual pages describing our services, which now include a photo of the Director or Manager who can answer your questions. For example, Chris Cartan, Director – Operations, is on our web page for Customs Clearance Services in Canada. Not every company offers direct access to senior managers, but that is a given for our clients.

Another option is to visit the Meet Our Team web page, where you will find the photos and titles for our entire executive and management team and can, perhaps for the first time, put a face to a name.

For more information, contact Michael Glionna, President.

"Constructive" meetings on NAFTA

NAFTA

Canada’s Foreign Affairs Minister, Chrystia Freeland, says she is having constructive meetings with U.S. trade representatives on a new NAFTA deal. However, the two sides have still not resolved threekey issues:dairy, culture and the Chapter 19 dispute resolution mechanism.

The goal is to join the deal the U.S. has already signed with Mexico before the October 1 deadline for a trilateral agreement. However, Canadian Prime Minister Justin Trudeau says he will not be pressured by the U.S. into signing a deal that is unfair for Canada.

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

U.S. and China promise new rounds of tariffs

Tariffs

The U.S. implemented tariffs on some $200 billion of imports from China, effective September 24, 2018. The 10% tariff will last until January 1, 2019, when the rate will increase to 25%. An additional list of tariffs, covering imports worth $267 billion, will be enacted as China followed through on its promise to retaliate against the U.S. with $60 billion in tariffs, also effective September 24,2018.

The Chinese Commerce Ministry said it has placed an additional 5% duty on U.S. product, including smaller aircraft, textiles and electronics and an extra 10% on agricultural goods, e.g. meat, wheat,wine.

The White House says the tariffs are necessary because China has refused to stop its "unfair policies and practices relating to United States technology and intellectual property – such as forcing United States companies to transfer technology to Chinese counterparts. These practices plainly constitute a grave threat to the long-term health and prosperity of the United States economy."

The current list of tariffs on Chinese goods imported into the U.S. as of September 24, 2018 is available here.

For more information please call Brian Rowe, Director – Customs Compliance & RegulatoryAffairs.

Duty drawback eligibility for goods subject to Trump tariffs

Here is what you need to know about imports into Canada, imports into the U.S. and U.S. tariffs on Chinese exports.

Imports into Canada

  • Goods imported into Canada from the USA and subject to the additional countermeasure duty may be recovered upon export under the following scenarios:
    • Same condition goods, i.e. goods imported and re-exported with no additional processing in Canada – 100% drawback available
    • Manufacture and re-export to USA/Mexico – under this scenario the goods are subject to a “lesserof” calculation, however, if the goods entered Canada with a valid NAFTA Certificate they will be subject to full drawback
    • Manufacture and re-export outside North America – goods subject to full drawback

Imports into USA

If you have imported goods into the USA, subject to Trump tariffs, and subsequently sold those goods for export, you may be able to recover the tariff paid upon import by way of a duty drawback claim. Here is how that process works:

  • Merchandise is imported into the U.S..
  • Duties are paid on the merchandise.
  • Merchandise is resold and exported to a foreign buyer.
  • U.S. Customs refunds 99% of the duties previously paid.
  • Tariffs imposed against Steel and Aluminum (Section 232 Tariffs) are not subject to duty drawback upon re-export from the USA, however, those tariffs imposed on goods originating in China (Section 301 Tariffs which exclude the Steel and Aluminum Tariffs) may be recovered uponexport.

U.S. tariffs on Chinese exports

The China tariffs have been issued in three stages, each of which qualify for duty drawback upon sale and re-export out of the USA:

List 1- $34 billion
List 2 – $16 billion
List 3 – $200 billion

If imported goods were used in manufacturing or subjected to additional processing prior to export, different rules apply.

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

Transpacific cargo rates soar as capacity shrinks

Container ships in harbour

Widespread vessel rollovers (sailing cancellations), tightened space availability and higher rates are now the norm on the Asia/North America trade lane. Some shippers are willingly paying a premium to get space before costs are spiked by another round of U.S. tariffs on Chinese exports.

Although some industry experts are forecasting the capacity crunch (and resulting price pressure) to ease after the October “Golden Week” holiday, it remains to be seen if this will actually happen.

For more information, contact Debbie McGuire, Manager – Freight Solutions.

Freight slowdown in the UK

Truck UK

A growing shortage of trucking capacity is slowing the movement of freight in the UK. Carriers say the slowdown is the result of multiple issues, including increased cargo volumes, port congestion, vessel diversions and a general shortage of vehicle, driver and rail availability.

Making the situation even worse is the forced rerouting of freight from UK’s largest box port, Felixstowe, a necessary step because of information system problems. The resulting delays are disrupting shipping schedules and increasing costs as shippers are being forced to pay extra charges for every day pick up at a terminal.

For more information, contact Debbie McGuire, Manager – Freight Solutions.

Global Spotlight Quiz
Global Spotlight
Narrow streets that were once cow paths are common in the city’s historic north end.

Global Spotlight Quiz

How many clues do you need to name the city where early settlers enjoyed eating baked beans in molasses?

  • The 1700 acre airport is surrounded by water on three sides.
  • “Happy Hours” are against the law.
  • About 15% of the population walks towork.
  • Foreign-born residents from over 100 different countries make up a quarter of the population.
  • Traffic congestion was relieved by building a 3.5-mile tunnel, a project dubbed "The Big Dig".
  • Residents can tell the weather by looking at lights displayed on a building in the downtowncore.
  • Home of the “Green Monster”.
  • The first subway in the country opened in this city on September 1, 1897.

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

Work smarter!

Consolidate decision making

Do you have more than one person making freight decisions?

Try a reorganization that gives one person responsibility for all freight movements, a change that often makes it much easier to get the best price and service.

At Your Service: Yunji Park, Freight Pricing

Yunji Park, Freight Pricing

Yunji Park, Freight Pricing

When a rate request is received from an agent or client, YunjiPark is laser focused on identifying the best available options.

She begins by asking the most important question, “What is more important, time or cost?” "Communication is the key to success," says Yunji, who joined Universal in May2017, after graduating from the International Transportation and Customs Program at Seneca College.

Yunji can be reached by phone (905) 882-4880, ext. 311 or byemail.

September 2018



Route
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. Email:bscharnberg@universallogistics.ca 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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