BC Apparel Manufacturers Needed

The Western Economic Diversification BC office is looking for manufacturers who can support a major defence procurement for the products listed below. If you are a BC apparel or accessory manufacturer with specific expertise in these products and can support MOQs of ~1000pcs for each garment type, we want to hear from you:

  • Flight suits
  • Uniforms for flight crews and CSRs (dress pants, white dress shirts, blazer, dresses, skirts)
  • Overalls
  • Class 2 high-vis outerwear (winter wear, rain gear)
  • Polos, t-shirts, sweatshirts, cargo/non-cargo style work pants
  • Accessories (pilot wings, name pins, patches, epaulettes, scarves, neckties safety vests)

Complete details (ie. designs, materials, price range, timing) are still not available and we are simply collecting expressions of interest before the full RFP becomes available.

Interested parties should email hello@bcapparelandgear.com with the subject: “WED Defence Project”. Please ensure to specify your capabilities and the product category / type where you specialize.

Market Update: Congestion Surcharges

Shippers might be paying 332% more per box than they were this time last year, yet they’re having to put up with the worst schedule reliability in the history of the shipping container industry.

In the first five months of 2021, 401 vessel arrivals on the transpacific and 144 on Asia-Europe were over 14 days late, according to data from Sea-Intelligence. Putting these numbers in perspective, the combined 2012 to 2020 total of such late vessel arrivals was 388 on the transpacific and 69 on Asia-Europe.

With prices increasing and schedule reliability still an issue, here are a few key updates from the major carriers relating to congestion surcharges —

Hapag-Lloyd

One of the world’s largest shipping companies, Hapag-Lloyd, informed Value Added Surcharge(VAD), says due to the continuation of extraodinary demand from China and the resulting operational challenges along the transport chain, HPL will charge $4000/20’ and $5000/40’ in destination as VAD effective August 15, 2021.

MSC

MSC have announced that they will be collecting a Congestion surcharge payable as a local charge collected effective September 1, 2021 at destination.

The amount is USD 800/20’ 1000/40’ 1125/hc and 1266/45’ and applicable for all equipment types.

Matson

Matson has announced their third increase to USWC Congestion Surcharge effective August 5, 2021, reflecting a $2,000 OSPF increase.

ZIM

With the consistent congestion in U.S. and Canadian Ports, ZIM will implement Port Surcharge and Destination Delivery Charges effective from August 1, 2021.

We’re Here To Help

Keeping in close contact with Carson regarding booking management is essential to mitigating risks. Please reach out to us directly so we can assess your needs and make considerations in the best interest of your business.

Navigating Supply Chain Constraints and Trucking Rates

The capacity issue that has been looming over the trucking market for months is showing no signs of being resolved in any way for the remainder of the year. Strong demand has resulted in rates continuing to rise month over month across van, flatbed and reefer.

The ability for carriers to add capacity is limited by parts shortages that are holding back truck, trailer and chassis production, with the demand for trucking volume expected to continue moving forward as retail sales remain high and retailer inventories remain low. But analysts also see demand outside of retail.

“While not as large as retail in terms of overall freight generation, capital goods spending is freight intensive, and the coming capex boom will certainly benefit freight demand in the next few quarters,” says ACT Research’s Vice President and Senior Analyst, Tim Denoyer.

Carson 3PL Ground Transport Services

Carson is now offering FTL, LTL Ground Transport anywhere in North America. Whether moving in a van, flat deck, step deck, we have you covered.

Employee Spotlight: Marty Sarmiento

Marty joined the Carson Freight Team in October 2020 and brought with him over 15+ years of North American Ground Transport experience. He is familiar with all aspects of ground transport, from a simple pallet, to oversized cargo moving on decks that require permits and pilot cars.Although Carson has always offered Ground Transport, with Marty onboard we have been able to expand our offerings, providing clients with competitive pricing and expert customer service.

Whether you are moving freight within Canada, or importing or exporting cross border with the US, we encourage you to reach out to Marty and our ground team at ground@carson.ca to learn more about how our team can provide options to keep your domestic supply chain running smoothly.

Webinar: Countervailing & Antidumping Duties: Canada’s Trade Protectionism Tools

Carson International is pleased to partner with Miller Thomson LLP for another instalment in our webinar series addressing Canada/U.S. cross-border trade developments and updates.

The CBSA recently made preliminary determinations under subsection 38(1) of the Special Import Measures Act (Canada) (“SIMA”), that China and Vietnam had been dumping and subsidizing upholstered domestic seating (“UDS”) entering the Canadian market. We will review the specifics of this case and also provide links to all the present SIMA Actions presently in force.

This webinar will discuss the recent action taken by the CBSA as well as the CBSA’s administration of SIMA. In general, the SIMA investigative process takes about 260 days from the time the CBSA receives a complaint until the Canadian International Trade Tribunal (CITT) makes a finding. This webinar will detail the steps that will be taken during this investigative process to determine whether countervailing and/or antidumping duties should be applied.

Join the conversation regarding SIMA in order to optimize duty and tax minimization strategies and reduce customs valuation regulatory risk.

Panelists:

Dave Pentland, Carson International
Dan Kiselbach, Miller Thomson LLP

Webinar Details:

Thursday, July 15, 2021
Time: 11:00 a.m. – 12:00 p.m. PST

Webinar connection details will be provided by Miller Thomson before the webinar.

R.S.V.P. by July 14, 2021 at 4:00 p.m. PST.

Webinar: Forced Labour and Human Rights Responsibility

Carson International is proud to sponsor this webinar organized by the Canadian Apparel Federation.

Join the Canadian Apparel Federation and Borden Ladner Gervais LLP for a presentation on forced labour and modern slavery in global supply chains – with a focus on proposed Modern Slavery legislation in Canada.  Given recent customs enforcement in the US and growing concerns expressed by the Canadian government there will be increasing calls for apparel firms to address this issue in their supply chains.

The agenda will include: 

  • What is forced labour?
  • New CUSMA/USMCA and Customs Tariff provisions (what are they; risks and consequences of import control; getting stopped at the border; follow  on complaints; risks re the US)
  • Enforcements trends of similar measures in the US
  • Avoiding customs entanglements: doing human rights due diligence
  • Related Canadian and global legislation (Modern Slavery Acts)

Webinar Details:

Tuesday, June 15, 2021
Time: 2:00 — 3:00pm EDT

Market Update: Freight Congestion in Southern China

Delays, congestion and container availability problems are increasing at ports and terminals in southern China, including Yantian, Shekou and Nansha, as operations have slowed in an effort to contain outbreaks of COVID-19.

Container dwell times at Yantian rose to eight days the week of May 30, with median dwell times of 18 to 21 days by June 7. Container availability dropped at the three ports, skipping the ports of call, and resulting in empty boxes not being dropped off at ports.

Below are some key updates relating to ports in southern China —

Port Updates

  • Port of Yantian: Only accepting ETA 3 days with advanced appointment, not accepting any truck operators who have been to Nansha/Guangzhou area. Mandatory 14 day quarantine required.
  • Port of Shekou: Only accepting ETA 3 days with advanced appointment. Truck operators require negative COVID-19 test.
  • Da Chan Bay: Only accepting ETA 7 days with license plate from Shenzen area. Trucker operators require negative COVID-19 test.
  • Port of Nansha: Only accepting ETA 7 days, with certain areas still closed. Those from high risk areas (such as Guangzhou or Shenzhen) require a mandatory 14-day quarantine and negative COVID-19 test.
  • Bounded warehouse: Truck operators require negative COVID-19 test and not have visited any high risk areas.

In this scenario, shippers can expect goods to be delayed to well into the end of June, if not July.

Strain on Global Supply Chains

These challenges in southern China are the latest in a saga of global container shipping issues that have plagued shippers, forwarders and carriers for more than a year — from port congestion, to equipment shortages, to blank sailing, to skyrocketing freight rates.

Many importers have pivoted to airfreight given ongoing capacity and timeliness issues in ocean freight, although air cargo space is also limited.

We’re Here To Help

Keeping in close contact with Carson regarding booking management is essential to mitigating risks. Please reach out to us directly so we can assess your needs and make considerations in the best interest of your business.

Webinar: Customs Verifications (Audits) – What you going to do when they come for you?

Carson International is pleased to partner with Miller Thomson LLP for another instalment in our webinar series addressing Canada/U.S. cross-border trade developments and updates.

The Canada Border Services Agency (CBSA) will conduct verifications on a periodic basis. This webinar will discuss relevant risk elements and the methodology used by customs authorities to undertake a customs verification. CBSA customs verifications are designed to measure compliance rates and revenue loss. The three most common types of verifications are: 

  • Valuation verifications
  • Tariff classification verifications
  • Origin verifications 

Join the conversation regarding CBSA’s verification methodologies and the steps that should be taken by importers to mitigate the impact of the CBSA’s verification.

Panelists:

Dave Pentland, Carson International
Dan Kiselbach, Miller Thomson LLP

Webinar Details:

Thursday, May 27, 2021
Time: 11:00 a.m. – 12:00 p.m. PST

Webinar connection details will be provided by Miller Thomson before the webinar.

R.S.V.P. by May 26, 2021 at 4:00 p.m. PST.

Webinar — Getting Ready for CARM

CARM is a Canada Border Services Agency multi-year project to simplify and modernize their accounting and data management systems to provide the commercial trade community with a streamlined method of interaction with the CBSA. This new CBSA initiative will affect all importers.

Join us on May 13 for our CARM info session where we will ensure you have everything you need to know as we move through the implementation process together:

  • Key dates
  • How to prepare for Release 1 on May 25, 2021
  • Changes to import bonds

Panelists:

Dave Pentland, Carson International
Lisa Hennessy, Vice President, Avalon Risk Management

Webinar Details:

Getting Ready for CARM
Thursday, May 13, 2021
Time: 11:00 a.m. – 12:00 p.m. PST

Canadian 2021 Federal Spring Budget And Its Trade Implications

The Canadian government has released its first federal budget in more than two years, as it aims to pull Canada through the COVID-19 pandemic and repair economic ruptures.

The budget focuses on three core areas:

  • Ongoing Pandemic Support 
  • Job Growth and Business Recovery 
  • Green Transition, Green Jobs, Social Infrastructure 

Here are a few key areas that are of notable interest to the trade industry.

Improving Duty and Tax Collection on Imported Goods

Budget 2021 proposes changes to the Customs Act to improve duty and tax collection. These changes would ensure that goods are valued in a fair and consistent manner by all importers. This would level the playing field between domestic and foreign businesses and generate an estimated $150 million in additional annual duty revenues. The changes would also modernize and digitize the duty and tax payment process for commercial importers, so as to minimize administrative burden.

Strengthening Canada’s Trade Remedy System

Budget 2021 announces the government’s intention to launch public consultations on measures to strengthen Canada’s trade remedy system and to improve access for workers and small and medium-sized enterprises. This may result in proposed amendments to the Special Import Measures Act and the Canadian International Trade Tribunal Act.

Administration of Trade Controls

Budget 2021 proposes to provide $38.2 million over five years, starting in 2021–22, and $7.9 million per year ongoing, to Global Affairs Canada, as additional resourcing to support Canada’s trade controls regime.

Better Supports for Exporters

Budget 2021 announces the government’s intention to work with Export Development Canada to enhance supports to small and medium-sized exporters and to strengthen human rights considerations in export supports. The government may propose amendments to the Export Development Act.

Border Carbon Adjustments

The government intends to launch a consultation process on border carbon adjustments in the coming weeks. This consultation process will begin in the summer with targeted discussions, including with provinces and territories, importers, and exporters—especially those who deal in emissions-intensive goods. The broader public will be engaged this fall. Throughout this process, the government intends to continue its international engagement with like-minded partners.

Application of GST/HST to Ecommerce (non resident importers, fulfillment centres) 

The government proposed that distribution platform operators be required to register under the normal GST/HST rules and to collect and remit GST/HST in respect of sales of goods shipped from a fulfillment warehouse or another place in Canada, when those sales are made by non-registered vendors through distribution platforms. Non-resident vendors that make sales on their own (i.e., not made through a distribution platform) would also be required to register under the normal GST/HST rules and to collect and remit GST/HST in respect of sales of goods shipped from a fulfillment warehouse or another place in Canada. 

Excise Tax Collection on Tobacco and Vaping Products

Budget 2021 announces the federal government’s intention to introduce a “new taxation framework” to impose excise duties on vaping products that would start in 2022 if the budget is passed.

Industry Reactions

Several Canadian industries have shared their reaction to Budget 2021.

Wine Growers of BC have called the budget a “monumental investment”, since the federal government has proposed to spend $101 million over two years, starting in 2022, to help wineries adapt to ongoing and emerging challenges. Specifically, Wine Growers British Columbia supports the request from Wine Growers Canada that the government implement the Wine Grower Quality Enhancement Program.

The Dairy Processors Association of Canada welcomes measures announced in the 2021 Federal Budget to support dairy processors impacted by recent trade agreements as a step in the right direction. Compensation measures totalling $292 million for two agreements, CETA and CPTPP, will support processors under supply management as the industries transition to the new market realities created by the agreements.

The Canadian Steel Producers Association is thankful to the government for its efforts in the fight against COVID-19, while also acknowledging that “CSPA members are ready to work on the priorities outlined in today’s budget to strengthen Canada’s resiliency and to build a greener and more innovative economy. While we produce some of the greenest steel in the world, we need partnerships and financial support to achieve our goal of net zero emissions by 2050. Today’s announcement of additional funding to the Net Zero Accelerator, together with new tax measures to support the adoption of innovative technologies such as carbon capture utilization/storage and hydrogen, will provide a strong foundation for this transformational agenda.”

Defence contractors are wary of the government’s resurrection of the so-called “economic harm” warning, which threatens to penalize companies that try to do economic harm to Canada.

Three years ago, the government laid down a marker that became known informally in procurement circles as the “Boeing clause.” Under the sub-headline of “Ensuring Procurement Partners Respect Canada’s Economic Interests,” the policy was reanimated and restated in Monday’s fiscal plan, much to observers’ surprise.

“In December 2017, the government announced that the evaluation of bids for the competition to replace Canada’s fighter aircraft would include an assessment of bidders’ impact on Canada’s economic interests, and that any bidder that had harmed Canada’s economic interests would be disadvantaged,” said the budget. Budget 2021 confirms the government will apply this policy to major military and Coast Guard procurements going forward.” 

We will continue to provide updates as to how the 2021 Federal budget will impact trade and our valued clients and partners.

You can view the full budget on the Government of Canada’s website.

(Sources: CSCB, Castanet, Financial Post, CTV News, DPAC, CBC News)