candis, Author at Carson International

July 4, 2020

How to Streamline Your Supply Chain

Maintaining efficiency across your entire supply chain can help reduce overall expenses and ultimately increase profitability. Considering the rapid developments of today’s supply chain technology like TMS, and the increasing demands of consumers, having a streamlined supply chain and top notch distribution services are crucial for success.

There are certain steps you can take to streamline your supply chain and maintain the efficiency of operations.

Audit Supply Chain Processes and Optimize Accordingly

It’s important for you to have a specific process in place to review your supply chain and identify any weaknesses that you can address. Try to evaluate your supply chain processes as soon as you can, which will enable you to find and resolve any issues that could otherwise hinder efficiency and profitability.

With more optimized processes along the supply chain, you’ll be able to improve lead times and benefit from potentially significant cost reduction. You can also maintain a consistent stock level that will cut down on costs pertaining to handling and warehousing.

Utilize Current Systems

Many outdated in-house supply chain systems may be difficult to use, unnecessarily complex, and inflexible, let alone challenging to retrofit. However, it’s important to extract any invaluable data that still might be crucial to your supply chain after an upgrade.

Using the information gathered from your legacy systems, you can more successfully integrate old systems with new ones utilizing devices such as smartphones, tablets, laptops, and other tools. As a result, you’ll be able to experience an easier transition when optimizing your supply chain.

Eliminate Any Duplicate Data

One of the key ways to increase efficiency and further decrease costs is to eliminate manual data entry, including entry of duplicate data across a variety of systems that would otherwise waste resources and time. Keeping multiple sets of the same data in several systems can also increase the risk of inaccuracies, but streamlining with automation will mitigate this risk.

Getting rid of tedious data entry tasks will also help improve employee productivity and enable them to redirect attention to more important matters, including customer interaction.

Consider the Needs of Consumers

When you streamline your supply chain, you’ll also be able to direct your attention to the bigger picture beyond simple order fulfillment, allowing you to focus on and gain a better understanding of what your customers want and need from you. Understanding your customers will be particularly crucial if you provide customized products and services as you can focus on delivering exactly what they’re looking for, leading to increased profits.

In short, improving the efficiency of your supply chain processes will improve customer satisfaction in addition to order fulfillment.

Work with Dependable Professionals

If you want to make sure your business gets what it needs to maximize efficiency and profitability across the entire supply chain, the best solution is to work with professionals who understand what a supply chain requires at every point. Working with an experienced team like the experts at Carson International can supercharge your supply chain and ensure that you benefit from a reliable solution.

Streamlining your supply chain is necessary today if you want to get the most from your operations. With a fully optimized supply chain, you can keep up with increasing demands and developing technology as you stay ahead of the curve.

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June 30, 2020

Everything You Need to Know About CUSMA

Since March, there have been several updates made to the U.S.-Mexico-Canada Agreement (CUSMA). The following is a timeline of all of the major announcements that we’ve been tracking here at Carson International.

March 14 – CUSMA is Approved April 23 – COAC Recommends Delaying CUSMA Entry into Force Until 2021

In March, Prime Minister Justin Trudeau announced that Canada was considering closing the Canada-U.S. border in an effort to help halt the spread of COVID-19. At the same time, the House of Commons passed legislation that would ratify the newly established North American trade deal. In turn, the Senate signed the bill that would approve the CUSMA.

You can read more about this update at the following link: https://www.carson.ca/fr/2020/03/usmca-approved/

April 23 – COAC Recommends Delaying CUSMA Entry into Force Until 2021

The Commercial Customs Operations Advisory Committee (COAC) suggested delaying CUSMA’s entry into force until at least January 1, 2021. COAC also recommended providing a period of implementation or transition to consider USCMA compliance for NAFTA-qualifying goods that have compliant certificates of origin. Originally, the CUSMA was to go into effect on June 1, but lawmakers and others have cited complications regarding COVID-19 as the reason for the recommended delay.

You can read more about this update at the following link: https://www.carson.ca/2020/04/coac-recommends-delaying-cusmas-entry-into-force-until-2021/

April 27 – CUSMA Trade Agreement to Take Effect on July 1

In late April, U.S. Trade Representative Robert Lighthizer announced to Congress that the CUSMA would go into effect on July 1, one month later than it was originally planned for implementation.

You can read more about this update at the following link: https://www.carson.ca/2020/04/usmca-trade-agreement-to-go-into-effect-july-1/

May 8 – New De Minimis Thresholds Announced

In early May, Canada agreed to adhere to a de minimis threshold of a minimum of CAD$150.00 and CAD$40.00 for customs duties and taxes, respectively. Apart from this, no other changes went into effect around the current de minimis framework in Canada under the CUSMA. The thresholds were set to go into effect the same date as the CUSMA on July 1.

You can read more about this update at the following link: https://www.carson.ca/2020/05/what-are-the-new-de-minimis-thresholds-under-cusma-usmca/

May 12 – US Dept. of Homeland Security Receives Criticism for Inadequate CUSMA Implementation

After the DHS failed to implement CUSMA enforcement through the establishment of a designated task force by the deadline of April 28, Democrats on the House Ways and Means Committee pushed the Trump administration to implement enforcement as soon as possible. The delay in U.S. implementation of enforcement is a particularly sensitive matter considering the CUSMA is scheduled to go into effect by July 1.

You can read more about this update at the following link: https://www.carson.ca/2020/05/department-of-homeland-security-criticized-for-lack-of-usmca-enforcement-implementation/

May 19 – Auto Manufacturers Reopen in North America Amid Challenges Around CUSMA

Automakers are resuming auto manufacturing operations throughout North America, but they anticipate certain challenges that will arise from the reliance on Canada and Mexico and more remote workplaces. Meanwhile, Mexico planned to resume operations on June 1 or sooner, depending on the ability to create safe workspaces.

You can read more about this update at the following link: https://www.carson.ca/2020/05/automakers-reopen-across-north-america-while-bracing-for-challenges-ahead-of-cusma-usmca/

Come back to Carson International for additional updates around the CUSMA, or visit our newsroom. We will continue to provide more information as we receive it.

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June 30, 2020

USTR Spells Out USMCA Labour Enforcement Procedures

With NAFTA soon to be history after 26.5 years on the books, USTR is publishing a Federal Register notice today explaining its proposed procedure for groups or individuals to file labour complaints under the new U.S.-Mexico-Canada Agreement, which takes effect Wednesday. Interested parties have until Aug. 15 to comment.

The notice details the steps for an interested party to file a “rapid response petition” asking for an independent panel to investigate allegations of labour rights violations — such as denying the ability to engage in collective bargaining — at individual facilities in Mexico. That new mechanism was included at the insistence of House Democrats and carries the potential for penalties and for blocking imports from the plants.

USMCA allows U.S. and Mexican observers to accompany the panel on any visit it makes to the facility to verify claims in the petition. And, “if Mexico refuses an on-site verification, the panel can take this into account in making its determination” of whether a violation has occurred, the law firm Hogan Lovells wrote in a brief on the enforcement tool.

In theory, a Mexican group or individual can also file a complaint against a “covered facility” in the United States. But it can only take that step against a U.S. facility that is subject to a National Labor Relations Board enforced order, which is a much smaller universe of companies than can be targeted in Mexico.

Updated Rules for Automakers

The Labor Department on Wednesday will also publish a Federal Register notice specifying how it plans to calculate whether a vehicle is meeting USMCA’s “labour value content” provision, which requires 40 percent to 45 percent of the content of a vehicle to be made by workers earning at least $16 per hour.

The interim final rule takes effect right away, but interested parties will have 60 days to outline any changes they would like to see. Automakers must meet the labor value content provision, as well as other tough new “rules of origin” requirements, in order for trucks made in Mexico and Canada to qualify for U.S. duty-free treatment.

(Source: Politico)

June 29, 2020

Aluminum Association Calls On Trump Administration To Continue Section 232 Exemptions For Mexico And Canada

The Aluminum Association published an open letter to U.S. Trade Representative Robert Lighthizer on Thursday seeking to convince the Trump Administration to continue excepting North American producers from Section 232 aluminum tariffs.

The letter, which was signed by more than a dozen CEOs and other executive officers from companies all along the aluminum value chain, praises the administration for exempting Canada and Mexico from Section 232 aluminum tariffs early on. The letter notes that fully 97 percent of the jobs held in the United States in the aluminum industry are in mid- and downstream portions of the value chain, which are highly reliant upon imported aluminum.

“We strongly oppose any trade actions involving Canadian aluminum.”

Per the Association, the motivation for the letter was countering claims of a surge in imports in recent months. The Association notes that, according to the government’s own data, imports from suppliers in adjacent countries this year are generally in line with imports in recent years.

“Today’s letter shows an industry united in support of the continued free flow of metal within North America,” opined the Aluminum Association’s president and CEO Tom Dobbins. “After all of the hard work that has gone into making the USMCA a reality, it would be a shame to move backward by reapplying tariffs or quotas on aluminum. We trust that the administration will heed the advice of representatives from the impacted industry who recognize that this action would only hurt U.S. aluminum companies and workers.”

Click here to read the full open letter.

June 29, 2020

What is a TMS?

A transportation management system (TMS) is a kind of platform intended to help optimize shipping processes. There are certain benefits that come with a TMS that can make it worthwhile to implement, improving transparency and cost-effectiveness in the long term.

What Exactly Is a TMS?

A TMS is a subset of supply chain management that revolves around transportation solutions. It enables the automation of shipping and provides more data to help improve efficiency and lower the costs of shipping.

There are many aspects to consider when shipping goods or services, including quotes, logistics, and delivery to customer locations, all of which can be difficult to manage and maintain. A TMS makes it easier to keep shipping consistently efficient and affordable.

The Different Types of TMSs

There are many types of TMSs out there to choose from based on your specific needs. Depending on the system you select and its features and capabilities, you’ll be able to optimize various aspects of the transportation process including:

• Shipping

• Operations

• Audits

• Procurement

• Route optimization and planning

• Yard management

• Carrier management

• Freight shopping and rating

• Load building

• Visibility across the supply chain and orders

The Benefits of a TMS

Some of the benefits of implementing a TMS can include:

Simplified Shipping Processes

A good TMS will be able to make the carrier selection process simpler by enabling an enterprise to evaluate any merchandise with a compatible carrier. In turn, companies will have the ability to make future decisions based on past shipments, pairing each shipment with the right carrier more efficiently.

Reliable Technology

A TMS can give you the technological capabilities you need to make crucial decisions around shipping processes. You’ll be able to access all quotes, carrier matches, and transit times to help you make decisions without the headache you might experience without a TMS in place.

Tracking Capabilities

A TMS will also allow you to track freight during transportation, and you can receive notifications in the event of delays or transit exceptions along the way. Issues during transport are always possible, but a good TMS will be able to let you know if anything goes wrong and the reason behind it.

Insights into Operations

A dependable TMS provides plenty of transparency through detailed analytics and reporting, which can be particularly beneficial for large-scale operations. With so many invoices and shipments to keep track of on a regular basis, it can be daunting to account for everything and maintain the efficacy of operations. However, a TMS can centralize all data and provide reports that tell you everything you need to know.

The Challenges You Could Face with a TMS

One of the biggest challenges that you may experience with a TMS is the need for additional capacity and expertise as the volume of shipments increases over time. As your business grows, it can become more difficult to manage your operations without the necessary accommodations and assistance. If you’re in need of a scalable solution, the experts at Carson International can give you what you need to continue to benefit from a TMS for your operations.

If you want to keep your shipping operations efficient and cost-effective, having a good TMS can be the key to success. Using the right system, you can benefit from total transparency and the ability to make the right decisions for your operations.

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June 26, 2020

Tariff Exclusions for Pandemic-Treating Goods Not Likely, Lighthizer Says

The Trump administration does not appear likely to grant tariff exclusions for imports of goods needed to fight the COVID-19 pandemic, according to remarks by U.S. Trade Representative Robert Lighthizer at recent congressional hearings.

House Ways and Means Committee Ranking Member Kevin Brady, R-Texas, said Congress and the White House should work together to create incentives for companies to develop and manufacture such products in the U.S. but that in the meantime duties for medical products should be suspended if there is no domestic opposition. Senate Finance Committee Chairman Charles Grassley, R-Iowa, said there should not be “any unnecessary taxes on goods key to the [economic] recovery or in fighting the pandemic” and that “we’ve got to find a smart solution that accepts the reality that trade is fundamental to our survival and prosperity.”

But Lighthizer said he is “not in favor of reducing tariffs on the things we need” to fight the pandemic but instead would “be far more in favor of increasing tariffs on the things that we need as part of an overall plan to make sure that the next time we have domestic manufacturing capability in these areas.” This effort is “going to require a combination of a lot of things,” he said, “but also I think it requires tariffs.” As a result, he rejected the idea of waiving MFN tariffs on such goods, which he indicated are helping “U.S. companies who are now getting into this business.” He also said that the administration will consider extending exclusions from the China Section 301 tariffs for medical products “depending on what the need is” but will “probably not” grant extensions that would not have been granted otherwise just because the affected goods are needed to fight the pandemic. Companies have had “a year or two years to make a change” in sourcing these products, Lighthizer said, and therefore “should have made the change.”

(Source: Sandler, Travis & Rosenberg Trade Report)

June 25, 2020

U.S. House Leaders Maneuver to Prevent Vote on WTO Withdrawal

The House is expected to vote today on a rule that effectively kills chances of a resolution to withdraw from the WTO that was introduced by Reps. Peter DeFazio (D-Ore.) and Frank Pallone (D-N.J.).

The House Rules Committee voted 9-4 Wednesday evening to approve a rule for floor action on a number of pending measures, including the WTO provision.

The rule, which is not open to amendment, would waive Section 125(c) of 1994 Uruguay Round Agreements Act for the remainder of the current Congress. That effectively strips the expedited procedures guaranteeing any withdrawal resolution will reach the floor. Those procedures include a requirement that any resolution be automatically discharged from the House Ways and Means Committee after 45 days.

If approved, the rule could also kill any possibility of the United States withdrawing from the WTO until at least 2025, since both the House and the Senate would have to approve such a measure for withdrawal to occur. In addition, the URAA only provides the opportunity for a vote on withdrawal once every five years.

The WTO could in a few days hand down a ruling on Trump’s China tariffs that’ll either deepen Trump’s belief that the WTO has an anti-American bias or legitimize the president’s repeated use of unilateral trade actions to resolve disputes.

The case comes down to whether Trump’s use of Section 301 of the Trade Act of 1974 to slap tariffs on China was a violation of international trade rules.

Ruling against the U.S. — as some trade experts speculate will happen — would give Sen. Josh Hawley (R-Mo.) a fresh talking point to push his withdrawal resolution, which still appears headed for a Senate floor in late July. Republicans have become increasingly skeptical of the WTO, as the Trump administration has repeatedly said the Geneva-based organization has failed the U.S. and international trading system.

A ruling upholding Trump’s tariffs would send the message that the use of unilateral trade actions is an acceptable way to solve disputes, rather than using the WTO’s dispute settlement system. China has argued that the U.S. violated WTO dispute settlement procedures by acting unilaterally.

(Source: Politico)

June 24, 2020

U.S. Plans to Impose Tariffs on Aluminum Imports from Canada

The United States is planning to re-impose tariffs on aluminum imports from Canada, Bloomberg reported late on Monday, citing people familiar with the matter.

If Canada declines to impose export restrictions, the United States will announce on Friday the re-imposition of 10 per cent tariffs on aluminum from the country, the report said.

The tariffs would then be implemented by July 1, the report said, which is also when the new CUSMA agreement will take effect. Some industries, including automakers, had been asking for a delayed implementation of the agreement due to the difficulties they are facing amid the COVID-19 pandemic.

Earlier in the day, the U.S. Supreme Court turned away a challenge to President Donald Trump’s tariffs on imported steel brought by an industry group that had argued that a key part of the law under which he imposed the duties violates the U.S. Constitution.

Trump signed a proclamation this year increasing tariffs on derivative steel products by an additional 25 per cent and on derivative aluminum products by an additional 10 per cent, from which countries including Canada and Mexico were exempted.

(Source: CBC)

June 23, 2020

New CUSMA Tariff Preferential Levels

Global Affairs Canada has issued notices to importers and exporters setting out the administration of Tariff Preferential Levels (TPLs) under CUSMA. TPLs are the preferential tariff treatment granted to specified quantities of certain yarns, fabrics, apparel, and textile articles that do not meet the CUSMA rules of origin.

For Exports from Canada:

Serial No. 995: Wool and Cotton or Man-Made Fibre Apparel Goods for Export to the United States under CUSMA
Serial No. 996: Cotton or Man-Made Fibre Fabric and Made-Up Goods for Export to the United States under CUSMA
Serial No. 997: Cotton or Man-Made Fibre Spun Yarn for Export to the United States under CUSMA
Serial No. 998: Wool and Cotton or Man-Made Fibre Apparel Goods, Cotton or Man-Made Fibre Fabrics and Made-Up Goods, and Cotton or Man-Made Fibre Spun Yarn to Mexico under CUSMA

For Imports to Canada:

Serial No. 1000: Wool and Cotton or Man-Made Fibre Apparel Goods, Cotton or Man-Made Fibre Fabrics and Made-Up Goods, and Cotton or Man-Made Fibre Spun Yarn from the United States and Mexico under CUSMA

The TPL year normally runs from January 1 to December 31 inclusive, but with CUSMA entering into force mid-year, it will cover the period from July 1 to December 31, 2020.

Click here for more information.

June 22, 2020

PPP Loans Could Help Preserve U.S. Trucking Capacity

This summer will be a trial for tens of thousands of small trucking companies struggling to stay in business. First, they will likely see freight volumes level off and drop seasonally after Independence Day. Second, government assistance that has helped some companies pay drivers will run out, removing a safety net that has kept some small carriers rolling.

That has many industry executives and observers warning of a sharp loss of trucking capacity by the time freight demand and volume seasonally rise this fall. No one, however, knows how much trucking capacity might exit as freight demand drops, or how significantly freight demand might rise past Labor Day, putting pressure on remaining truck capacity and spot rates.

Small trucking companies have until June 30 to apply for PPP loans from the U.S. government. As of June 12, $129.8 billion in PPP funding — much of which will be forgivable, if applied to payroll — remained to be claimed. Approximately $512.3 billion in PPP loans had been awarded by June 12, the latest date for which data are available.

Payroll Protection Program (PPP) loans are available to small businesses under the Coronavirus Aid, Relief, and Economic Security, or CARES, Act. Industry insiders, however, are asking what will happen to small and mid-sized carriers once PPP loans stop coming in.

U.S. shipment volumes were down 22.7 percent and 23.6 percent year over year in April and May, respectively, although they rose 1.6 percent in May from April, according to the Cass Freight Shipments Index. Hopes remain high, however, that freight volumes will increase sequentially this year, as more companies push to reopen or restart stalled business.

“We’ve seen improvements in business over the last two weeks,” said Jeff Tucker, CEO of third-party logistics company Tucker Company Worldwide. Freight volumes may still be down by double-digits year over year, but a sequential uptick month by month would keep more truckers on the road.

Those relying solely on the spot market to find loads, or hauling freight that is in less demand during the recession, are likely to struggle, with more trucks available to haul less freight. Those are the small trucking companies that would benefit most from a PPP loan, which can be used for payroll and other purposes over a 24-week period — approximately six months.

(Source: JOC.com)