News

April 27, 2020

ICC and WCO Partner to Facilitate Global Trade Action Amid COVID-19

The International Chamber of Commerce (ICC) and the World Customs Organization (WCO) have issued a joint statement calling for increased action on customs and trade facilitation to ensure an effective response to the COVID-19 pandemic.

In a joint statement, ICC Secretary General John W.H. Denton AO and WCO Secretary General Kunio Mikuriya say effective trade facilitation – based on international standards – will play a central role in enabling business continuity and renewed economic growth.

The statement calls for a coordinated customs response to the COVID-19 crisis – including through active participation in multilateral efforts and an open dialogue with neighbouring countries.

“We call on Customs administrations and other government agencies to keep trade flowing by maintaining the continuity of the international supply chain and simplifying and facilitating the Customs processes for essential medical equipment, medicines and food supplies – as well as key support personnel – so as to ensure an effective response to the pandemic and to protect lives throughout the world,” the leaders state.

Click here to read the full statement.

ICC and the WCO have also agreed to coordinate efforts in response to COVID-19 and are partnering to explore potential opportunities aiming to keep trade flowing worldwide and to support strong recovery of the global economy.

To support its members and relevant stakeholders, the WCO has created a dedicated section on its website (view here) and has included several existing and newly developed tools to aid in the facilitation of supply chain integrity within the context of the COVID-19 pandemic.

April 24, 2020

FEMA Refines Scope of Medical Supply Export Ban

FEMA has offered more details on its plans for exemptions to a temporary rule banning some medical supplies from being shipped overseas, which lawyers for U.S. and foreign companies said provided much needed clarification for exporters.

President Trump, in an April 3 executive order, invoked the Defense Production Act to stop the export of medical products being used to combat COVID-19 that are in short supply. The following week, FEMA published a temporary rule that said companies must receive the agency’s “explicit approval” before exporting certain medical equipment. The export restriction took effect April 10 and is set to expire in mid-August, according to FEMA.

U.S. Customs and Border Protection has since provided informal guidance on the types of shipments that will be exempted from the export restriction.

In an April 21 Federal Register notice, FEMA codified and tailored the exemptions, which provide a path for some exporters to make sales of medical products not in high demand in the U.S.

The exemptions are as follows:

Shipments to U.S. Commonwealths and Territories, Including Guam, American Samoa, Puerto Rico, U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands (Including Minor Outlying Islands).

Exports of Covered Materials by Non-profit or Non-governmental Organizations that are Solely for Donation to Foreign Charities or Governments for Free Distribution (Not Sale) at their Destination(s)

Intracompany Transfers of Covered Materials by U.S. Companies from Domestic Facilities to Company-owned or Affiliated Foreign Facilities.

Shipments of Covered Materials that are Exported Solely for Assembly in Medical Kits and Diagnostic Testing Kits Destined for U.S. Sale and Delivery.

Sealed, Sterile Medical Kits and Diagnostic Testing Kits Where Only a Portion of the Kit is Made Up of One or More Covered Materials That Cannot be Easily Removed Without Damaging the Kits.

Declared Diplomatic Shipments from Foreign Embassies and Consulates to their Home Countries. These May be Shipped via Intermediaries (Logistics Providers) but are Shipped from and Consigned to Foreign Governments.

Shipments to Overseas U.S. Military Addresses, Foreign Service Posts (e.g., Diplomatic Post Offices), and Embassies.

In-Transit Merchandise: Shipments in Transit through the United States with a Foreign Shipper and Consignee, Including Shipments Temporarily Entered into a Warehouse or Temporarily Admitted to a Foreign Trade Zone.

Shipments for Which the Final Destination is Canada or Mexico.

Shipments by or on behalf of the U.S. Federal Government, including its Military.

Click here to read the full notice from FEMA.

April 23, 2020

COAC Recommends Delaying CUSMA’s Entry Into Force Until 2021

The Commercial Customs Operations Advisory Committee, which advises the heads of the Homeland Security and Treasury departments on CBP operations, has recommended delaying USMCA’s (also referred to as CUSMA) entry into force until next year. The working group was launched in March under COAC to help solicit guidance from the private sector on the deal’s implementation.

“COAC recommends that CBP, the USTR and its USMCA partners should delay USMCA’s entry into force until no earlier than January 1, 2021 and provide a transition or implementation period for the year where NAFTA qualifying goods with appropriate certificates of origin will be considered to comply under the USMCA,” the advisory panel said in a presentation delivered at the meeting, according to Brenda Barnes, a member of the USMCA working group.

Governments had originally hoped for the agreement to go into affect as early as June 1, however, are now facing pressure from the auto industry, lawmakers, and others to push back of the date as companies attempt to grapple with the impact of the COVID-19 pandemic. Companies are saying that they need more time to comply with USMCA’s new rules of origin.

USMCA will have numerous impacts on import and export activity, including changes to low value shipments, requiring a formal certificate, and de-minimis. Click here to read more about those changes.

Despite recommendations from COAC, John Leonard, Executive Director of Trade and Policy Programs in CBP’s Office of Trade, stated that CBP was still tracking for entry into force on June 1, adding that any change would be announced by USTR.

The advisory group said that should USMCA “enter into force as scheduled, at the very least, CBP and its USMCA partners should grant enforcement discretion by way of an informed compliance period until the trade has had reasonable time to implement each administration’s regulatory and automation requirements.”

April 23, 2020

Temporary Reduction of Service at Canadian Land Border Crossings due to COVID-19

In response to the COVID-19 pandemic, the CBSA is temporarily reducing service hours at a total of 27 Canadian land border locations. The temporary hour adjustments came into effect as of April 15, 2020 at 11:59 pm EDT and will remain in effect until the expiration date of the Order in Council made under the Quarantine Act prohibiting entry into Canada from the United States.

Click here to view the updated hours of Canadian land border locations impacted by service reductions.

April 22, 2020

Postponement of CARM Solution Deployment

CBSA Vice-Presidents Lisa Anawati and Peter Hill have announced that the CARM solution will not deploy in Summer 2021. Related consultation and broader engagement also have been postponed indefinitely. An update will be provided by CBSA before the end of May regarding consultation plans.

CARM, a multi-year initiative, is an online portal which will give the trade community access to border services 24 hours a day, seven days a week.

Click here to read the full announcement from CBSA.

April 20, 2020

Canada, U.S. Strike Deal to Extend Border Restrictions By 30 Days

Prime Minister Justin Trudeau says Canada and the United States have struck a deal to extend current border restrictions between the two countries by an additional 30 days, as the U.S. moves to exempt Canada and Mexico from export restrictions on PPE.

The border was originally closed March 21, restricting non-essential travel between Canada and the U.S. Over the past month, it remained open for trade and commerce, with exemptions also granted for emergency response and public health purposes.

The decision comes as the U.S. is set to ease restrictions on exporting protective equipment through a number of new exemptions, one of which allows supplies to be shipped to Canada and Mexico.

April 15, 2020

CBP Launches Dedicated COVID-19 Website, Cargo Resolution Team

U.S. Customs and Border Protection has launched a new resource on its website dealing specifically trade-related updates and official messaging about the impacts of COVID-19.

Information found on the new website includes Federal Register Notices, and Cargo Systems Messaging Service communications related to COVID-19, as well as updates and announcements in trade programs and cargo security. Additionally, as many other departments and agencies are involved with facilitating international trade, the links to the COVID-19 response websites of partner government entities will also be included.

Click here to visit the new U.S. CBP COVID-19 website.

CBP also announced that the agency’s Pharmaceuticals, Health and Chemical Center of Excellence and Expertise has established a new COVID-19 Cargo Resolution Team (CCRT) tasked with coordinating inquiries about the import of medical supplies and personal protective equipment.

The CCRT can be contacted by email at covid19_relief_imports@cbp.dhs.gov.

April 15, 2020

CFIA Temporarily Relaxes Labelling Requirements for Foodservice Products During COVID-19 Pandemic

Due to the COVID-19 pandemic, the Canadian Food Inspection Agency (CFIA) has temporarily suspended some of its low-risk activities.

Low-risk CFIA activities are those that do not immediately impact the production of safe food for Canadians.

Effective immediately, the CFIA is providing flexibility for certain labelling requirements for foodservice packaged products that have no impact on food safety, as detailed below.

Foodservice products are those used by hotels, restaurants and institutions.

This will help to support the economy, alleviate supply disruptions in Canadian grocery stores, and avoid food waste.

Areas of flexibility include:

Canadian-made, packaged and labelled foodservice products for sale at retail
Canadian-made, packaged and labelled foodservice products with U.S. labels redirected for sale to Canadian foodservice
Labelling format
Language requirements for labelling
Standard container size requirements
Requirements for frozen raw breaded chicken products for sale at retail

The notice applies to foodservice food that has already been packaged and labelled. It also applies to foodservice food that is packaged and labelled within 90 days of the publication of this notice. After this time, this measure no longer has effect.

Click here to read the full notice.

April 15, 2020

Trump Administration Eases PPE Export Ban with Canada, Mexico Exemptions

The Trump administration has eased a ban on exports of PPE, with the list of exemptions growing after lawyers laid out the shortcomings of the rules.

Exports to Canada, Mexico and U.S. entities such as military bases abroad are among the exemptions. It also singles out shipments by 3M, which President Trump had originally blocked from sending N95 masks to Canada and Latin America. The decision was reversed last week after reaching a production agreement with the company.

The previous rule overlooked instances where multinational firms might need to ship PPE to overseas offices or military bases, showcasing the dangers of regulating trade in vital medical supplies unilaterally by anecdote, rather than after careful review and consultations with key trading partners.

The focus of the ban is on “commercial quantities,” which is defined as shipments valued at US$2,500 and containing more than 10,000 units of gloves, masks and other covered materials.

As this issue continues to evolve, please do not hesitate to reach out to Carson for guidance around PPE shipments at this time.

Get in touch:

Tyler Carson, President, tyler@carson.ca
Dave Pentland, VP, dwpentland@carson.ca
Matt Earish, COO, matt@carson.ca

April 14, 2020

COVID-19: Tariff Classification and Other Information to Import Medical Supplies

In light of COVID-19, CBSA has issued Custom Notice CN20-12 providing guidelines to the commercial importing industry on tariff classifications for medical supplies.

Click here to read Customs Notice 20-12.

Provided by the World Customs Organization, the list of medical supplies for COVID-19 based on tariff classification includes diagnostic test kits, face and eye protection, gloves, protective garments and the like, disinfectants/sterilization products, medical devices, thermometers, wipes, medical consumables, soap, toilet paper, and other toiletries.

Medical supplies required for COVID-19 may qualify for duty and tax relief upon importation. For further information, please review Customs Notice 20-08.

CBSA requests that importers also add the term “URGENT – COVID-19” as the goods description in release information submitted to the CBSA for all medical devices being imported to Canada for COVID-19.

For guidance around tariff classification for medical supplies, please do not hesitate to reach out to Carson.

Get in touch:

Tyler Carson, President, tyler@carson.ca
Dave Pentland, VP, dwpentland@carson.ca
Matt Earish, COO, matt@carson.ca