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August 2019

News and Views for the clients of Universal Logistics

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Mandatory use of Single Window Initiative (SWI) coming soon

Single Window Initiative (SWI)

Canadian importers have long wished there was a streamlined and standardized reporting system for import data – and now they have it with the Single Window Initiative (SWI), introduced by Canada Border Services Agency (CBSA) in March 2017, with a phased in transition beginning April1,2019. As the importing community migrates over to SWI, CBSA plans to decommission existing OGD PARS and RMD service options – which is expected for October 2019.

In simple terms, SWI means import data forwarded to the CBSA will be automatically shared with nine Participating Government Agencies (PGAs) (see list below), and will bring under one roof 38 governments programs. This is expected to be a significant improvement on the old process, which required many importers to make separate submissions of import data to the CBSA and applicable government agencies and departments.

Importers are responsible for providing the required PGA data elements to their customs broker – the broker then transmits the data and, where required, submits documents electronically to the CBSA and PGAs via the Integrated Import Declaration (IID).

Although SWI reduces the manual handling of paper documents and streamlines the CBSA process once the entry is submitted, the initiative also significantly increases the amount of pre-arrival electronic data required for many commodities.

To meet deadlines, ensure readiness for the new data requirements and ensure compliance with the program overall, Canadian customs brokers need to make significant system and process changes. Importers will also need to adjust their own internal processes to account for the added data requirements.

Following is a list of the 9 Participating Government Agencies (PGAs) and their data requirements under SWI:

Please see below for Data Element Matching Criteria Tables by Participating Government Departments and Agencies complete with HS Tariff Classification cross-reference:

In order to avoid customs clearance delays post full implementation, in the coming days Canadian customs clients of Universal Logistics will receive a commodity listing with required PGA data elements to be completed and returned to our office, in advance of the October SWI implementation.

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

U.S. increases China tariffs

US - China Trade

The United States Trade Representative (USTR) has announced all existing and pending China tariffs are being increased in retaliation of China’s response to the next round of tariffs being implemented on $300 billion worth of products imported to the U.S..

Current additional tariffs of 25% on roughly $550 billion of China products will increase to 30%, effective October 1, 2019. The scheduled tariffs of 10% on $300 billion will be assessed at 15%, effective on the already scheduled dates (September 1st and December 15th) for tariff increases on these imports.

The China Tariffs have been issued in 4 Lists – see below for a link to each list along with the corresponding additional tariff rates:

$34 Billion Trade Action (List 1) – 25% China Tariff increases to 30% October 1, 2019
$16 Billion Trade Action (List 2) – 25% China Tariff increases to 30% October 1, 2019
$200 Billion Trade Action (List 3) – 25% China Tariff increases to 30% October 1, 2019
$300 Billion Trade Action (List 4) – originally announced at 10% the China Tariff will be implemented at 15% in the below stages:

List 4A (Effective September 1, 2019)
List 4B (Effective December 15, 2019)

For more information, please go to our web site or contact Brian Rowe, Director – Customs
Compliance & Regulatory Affairs.

Steamship Lines impose fines on container misdeclaration

Burning container ship

Be warned – ocean carriers are cracking down by imposing significant fines on shippers who fail to declare or misdeclare hazardous goods. This action follows a series of vessel fires around the world and the growing concerns arising from undeclared and misdeclared hazardous cargo.

Evergreen Line was the first to announce the fines, ranging from $4,000 to $35,000 for misdeclarations. Hapag-Lloyd, who suffered a high-profile fire aboard its vesselYantian Expressearlier this year due to misdeclared goods, will impose a $15,000 fine per misdeclared box, effective September 15, 2019. OOCL announced enhanced inspection policies requiring additional verification prior to loading.

Carriers hold the shipper liable and responsible for all costs and consequences related to violations, fines, damages, incidents, claims and corrective measures resulting from cases of undeclared or misdeclared cargo.

Improperly or undeclared hazardous goods cause losses of millions of dollars’ worth of goods and steamship line assets, not to mention the negative impact on the environment and loss of life.

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

Cargo Insurance – Limited Liability

Carrier liability is the term used in the shipping industry to describe that a carrier can be held responsible for shipment losses, damages and delays. However, it is important to note that carriers have limited liability on the carriage of goods. While every booked freight shipment comes with limited liability coverage, the amount of coverage is determined by the carrier and it typically covers a certain dollar amount per pound or kg. In the majority of situations, the included liability coverage will be less than the value of the shipped goods.

To make a liability claim against a carrier, the carrier must be proven to be 100% at fault for the damaged or lost freight. In most cases it is difficult to prove 100% fault, meaning the claim will be denied by the carrier.

The only way to fully protect yourself from the inherent risks associated with shipping is to ensure your shipment is covered by cargo insurance.

Universal Logistics can provide cargo insurance for all forms of shipments to ensure your interests are fully protected.

For more information, contact David Lychek, Manager – Ocean & Air Services.

Canadian Aluminum and Steel Import Monitoring

Steel Rolls

Global Affairs Canada have issued notices to importers of a new Aluminum Import Monitoring and a revision to the Steel Import Monitoring which are effective September 1, 2019. The purpose of these programs is to enable Global Affairs Canada to monitor imports of certain aluminum and steel products and facilitate the collection of import data. In addition, importers may be required, upon request, to provide to Global Affairs Canada documents and records for the purpose of identifying any errors in import data and determining the source of any inconsistencies in a targeted manner.

Notices to Importers

NewGeneral Import Permit No. 83 – Aluminum Products
The import documentation for each shipment of aluminum products must state that it is being imported under the authority of General Import Permit (GIP) No. 83. This requirement applies to all aluminum products in item 83 of the Import Control List: Alloyed and not alloyed unwrought aluminum products, and wrought aluminum products limited to bars, rods, profiles, wires, plates, sheets, strips, foils, tubes and pipes, tube and pipe fittings and other articles of castings and forgings. The specific Harmonized System codes of the goods covered by this GIP are set out in theCommodity Codes Handbook.

Importers are required to ensure that quantity (in kilograms), value (in Canadian dollars and excluding freight costs), product classification, country of origin, U.S. state of export (if applicable), supplier name and address and importer name are given correctly, if necessary by amending the import documentation.

RevisedSteel General Import Permits No. 80 and 81 – Carbon and Specialty Steel Products
The import documentation for each shipment of carbon and specialty steel products must state that it is being imported under the authority of GIP No. 80 or 81. This requirement applies to all steel products with Harmonized System headings 7206-7302, 7304-7306, 7308, 7312-13 and 7317.

Carbon steel products include semi-finished products (ingots, blooms, billets, slabs and sheet bars), plate, sheets and strip, wire rods, wire and wire products, railway-type products, bars, structural shapes and units, pipes and tubes made of carbon steel. These items are covered by Harmonized System (HS) headings 7206-7229.

Specialty steel products include stainless steel flat-rolled products (sheet, strip and plate), stainless steel bar, stainless steel pipe and tube, stainless steel wire and wire products, alloy tool steel, mold steel and high-speed steel. These items are covered by HS headings 7301-7302, 7304-7306, 7308, 7312-7313 and 7317.

Importers are required to ensure that quantity (in kilograms), value (in Canadian dollars and excluding freight costs), product classification, country of origin, U.S. state of export (if applicable), supplier name and address and importer name are given correctly, if necessary by amending the import documentation.

Potential Penalties under AMPS

Failure to cite the required GIP or not complying with the terms and conditions of the Permit may lead to the levying of penalties by the Canada Border Services Agency (CBSA) under the Administrative Monetary Penalty System (AMPS), which authorizes the CBSA to assess monetary penalties for non-compliance with customs legislative, regulatory and program requirements. Importers may also face prosecution under the Export and Import Permits Act for contravening a provision of the Act or its regulations (section 19). Compliance is monitored by the CBSA and Global Affairs Canada.

Terms and Conditions
A resident of Canada who imports goods under these Permits must retain, for a period of six years after the year in which the import is made, documents and records containing the following information:

  • the name and the address of the importer or consignee;
  • proof of Canadian residency;
  • the date of entry of the goods into Canada;
  • the quantity, expressed in kilograms, of the goods;
  • the country from which the goods are imported;
  • the country of origin of the goods;
  • the shipping document with freight and other transportation costs indicated separately;
  • the tariff classification of the goods indicated in the List of Tariff Provisions set out in the schedule to the Customs Tariff;
  • the import value in Canadian dollars; and
  • a detailed description of the goods.

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

Global Spotlight Quiz
Global Spotlight

The first U.S. indoor shopping centre was erected in 1890 at a cost of $867,000.

Global Spotlight Quiz

Name the city with the first Indoor Shopping Centre in theU.S.

  • Home to Fortune 500 companies such as Key Corp and Parker Hannifin and headquarters of Sherwin-Williams.
  • This city is centrally located in the most populated region in the U.S., within a day’s drive of 60% of all U.S. Fortune 500 headquarters and provides quick market access to Canada.
  • Actress Margaret Hamilton who portrayed The Wicked Witch of the West in The Wizard of Oz was born here.
  • Life Savers were invented in this city by businessman Clarence A. Crane.
  • The only place where you can see Elvis, The Beatles, The Rolling Stones, Jimi Hendrix and Michael Jackson all in one place.
  • Playhouse Square Center is the second largest performing arts venue in the United States.
  • Home to the world’s largest indoor Ferris Wheel, built in 1985. It stands more than 120 feethigh.
  • The modern golf ball was invented in this city.

See the answer

For more information about shipping freight to or from U.S., contact Vickey Ison, Office Manager – Cleveland.

Quick Tip

Quick Tip

Two ways to control the cost of your freight shipments

Looking for new ways to reduce your shipping costs? Start by ensuring you are not wasting money by carrying weight that can be removed. Then make sure your shipping cartons are not bigger than they need to be.

Look for every possible saving, but never do anything that weakens the carton to the point where it could no longer carry your goods safely. That would be a penny-wise, pound foolish mistake.

Suzi Hudak, Team Leader – Export Services Cleveland

Suzi Hudak, Team Leader – Export Services Cleveland

At Your Service: Suzi Hudak, Team Leader – Export Services Cleveland

Suzi Hudak brings a wealth of knowledge and experience to our U.S. freight operations, with many years of experience coordinating both air and ocean exports.

Suzi’s ability to recognize and understand the needs of our clients is one of her strong suits, and they can rest easy knowing they are in goods hands. Suzi continually goes above and beyond to ensure our clients needs are met, while at the same time guiding them through the complicated export process which can be intimidating given the vast amount of regulations and shipping requirements one has to traverse.

Suzi can be reached by phone (440) 360-7850 or by email.

August 2019



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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