January 2022

Have you completed your New Year’s resolution of
registering for CARM?

In previous issues of Route we identified the 4 key aspects of registering for CARM (CBSA Assessment and Revenue Management) and, with the anticipated effective date approaching (May/June 2022), importers who have not yet registered must act quickly.

As customs brokers we are used to managing change, especially new CBSA initiated programs.  In most cases, we manage these changes behind the scenes.  Our clients rightfully expect that we will take care of everything on their behalf – and we do.  CARM , however, is one of the first Customs initiatives that absolutely requires importer engagement.

IMPORTANT:  All importers to Canada (whether resident or non-resident) must take certain steps – if not, they simply won’t be able to import into Canada once CARM Release 2 comes into effect (May/June 2022).

Universal Logistics will help our clients along the road to CARM to ensure a smooth transition.  The CARM initiative will be implemented in phases (or releases).  Release 1 went into effect on May 25, 2021.

Here’s what you need to know to get ready…

1. Identify your company’s Business Account Manager(s) – BAM
2. Register your business in the CARM Client Portal
3. Delegate authority to your customs broker
4. Secure a Release of Goods Bond – Release 2 (scheduled for May/June 2022)

The CBSA’s Assessment and Revenue Management team is hosting free CARM webinars – tailored specifically for Importers – and focusing on CARM Client Portal Onboarding.

Registration is required for these webinars.  Please register using the links below:

For more details on CARM and for tips on how to get ready – visit our website – or speak with your Universal Logistics Client Care representative.

End of Zero-Rated Penalty Period for eManifest Electronic House Bills

The Canada Border Services Agency (CBSA) has advised that, effective January 31, 2022, monetary penalties for non-compliance with electronic house bill requirements may be issued under the eManifest program, which replaced ACI filing as of January 4, 2021.

eManifest requires all carriers, freight forwarders and importers to send advance commercial information about their shipments electronically to the CBSA.  eManifest is part of the overall measures the Government of Canada is putting in place to enhance the safety, security and prosperity of Canadians and international trade while streamlining commercial cross-border processes.

As a reminder, this data needs to be submitted to the CBSA at least 24 hours before cargo loads onto an ocean vessel at origin and, in the case of air cargo, at least 4 hours before arrival into Canada.  In terms of rail cargo, data must be submitted 2 hours prior to arrival and, in the case of inbound highway shipments, 1 hour prior to arrival.

This notice provides new information regarding the end of the zero-rated penalty period granted to freight forwarders under the Administrative Monetary Penalty System (AMPS) for electronic house bills that began on January 4, 2021.  The transitionary period will end January 30, 2022.

Electronic house bills, house bill close messages and supplementary cargo data for consolidated cargo arriving on or after January 31st, may be subject to monetary AMPS penalties if freight forwarders are not compliant with freight forwarder requirements as per the Reporting of Imported Goods Regulations.

For more information, refer to Customs Notice 21-15, Mandatory Electronic House Bills – End of the Zero-Rated Penalty Period, or contact David Lychek, Director – Ocean & Air Services.

CBSA Trade Verification Priorities issued for 2022

Your chances of being selected by the Canada Border Services Agency (CBSA) for trade compliance verification are higher if you import products on the following list of priorities, updated this month.

The latest semi-annual list identifies products that are of concern which, due to misclassification, have led to a loss of revenue for the CBSA.  Non-compliant companies will have to pay retroactive duties and, potentially, Administrative Monetary Penalties.

All items on the list have appeared on previous lists for which new rounds have been implemented and no new products have been added.  Examples of items on the list:

• Spent fowl (Round 2)
  Harmonized System Number(s): Headings 02.07, 16.01 and 16.02
• LED lamps
  Harmonized System Number(s): Heading 85.39
• Furniture for non-domestic purposes (Round 3)
  Harmonized System Number(s): Headings 94.01 and 94.03
• Pickled vegetables (Round 5)
  Harmonized System Number(s): Heading 20.01
• Pasta (Round 3)
  Harmonized System Number(s): Heading 19.02
• Gloves (Round 2)
  Harmonized System Number(s): Headings 39.26 and 42.03
• Bags (Round 2)
  Harmonized System Number(s): Heading 42.02
• Air heaters and hot air distributors (Round 2)
  Harmonized System Number(s): Heading 73.22
• Stone table and counter tops (Round 2)
  Harmonized System Number(s): Heading 94.03
• Parts for Use with Machinery of Chapter 84 (Round 3)
  Harmonized System Number(s): Heading 84.31

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

2022 HS Tariff Code changes now in effect in the U.S.

Every five years, the World Customs Organization (WCO) updates the Harmonized Commodity Description and Coding System (HS Tariff).  These updates are intended to ensure that the HS stays up to date in light of new technology and provides visibility into new product streams and emerging global issues.  The amendments, scheduled to take effect on January 1, 2022, were delayed in the U.S. until January 27, 2022, after President Biden signed Proclamation 10326 to Modify the Harmonized Tariff Schedule of the United States on December 23, 2021.

The HS 2022 will see some major changes, comprised of 351 sets of amendments, covering a wide range of goods.  The key factors driving the HS 2022 amendments include:

• advances in technology;
• new product streams;
• changing trade patterns;
• environment considerations;
• health and safety;
• the fight against terrorism; and
• facilitating implementation of various international Conventions.

The changes to the HS tariff have been implemented by all 158 member countries of the WCO.  The amendments are technical in nature and do not involve any changes in tariff policy.

Concordance tables to the 2022 HS may be found here for Canada and the USA.

The changes to the 2022 HS may be either:

• One to One:  One HS changes to another, or
• One to Many:  Some products under one HS change to a new HS.

All importers should review the concordance tables to determine if any of your goods may be affected and work with your Customs Broker to ensure the applicable changes are being implemented for 2022.

For more information, or to find out how Universal Logistics can assist with this project on your behalf, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.

	The Huaca Pucllana ruins are located in the heart of the luxurious Miraflores neighbourhood.

Global Spotlight Quiz

Name the city that is home to the Huaca Pucllana Ruins

• Second largest desert capital city after Cairo, Egypt.
• Founded by a Spaniard conquistador called Francisco Pizarro on January 18, 1535.
• Three main rivers flow through the city; the Chillón, Lurín and Rímac.
• Instead of pigeons this city has black vultures or “Gallinazos”, which are responsible for cleaning up the city, and have inspired much cultural work symbolizing them as guardians.
• The Historic Centre, made up of the districts of Lima and Rímac, was declared a World Heritage Site by UNESCO in 1988.
• Miraflores is one of the city’s more exclusive neighborhoods and definitely one of its most scenic.

See the answer

For more information about shipping freight to or from this city, contact Debbie McGuire, Director – Freight Solutions.

Quick Tip

How to avoid shipping mistakes

Avoid unnecessary shipping complications by following these simple tips:

• Carefully count every piece when loading or unloading shipments to ensure the order matches the paperwork.
• Document any visible damage on the sign-off receipt.
• When you receive a shipment, make sure you are getting what you paid for.
• When you send a shipment, avoid short payments of your invoices by ensuring every piece of cargo is shipped.

	Kevino Kwan, Ocean Services

At Your Service: Kevino Kwan,
Ocean Services

Kevino Kwan joined our Head Office Freight Operations team in April 2021.  His main role is coordinating ocean imports, including the handling of our long standing weekly ocean consolidation from the United Kingdom.

Kevino brings over fifteen years experience in international trade as well transborder and warehouse operations.  His knowledge and experience has proven to be extremely valuable and is much appreciated by the multitude of clients whose cargo he oversees.

Kevino can be reached by phone (905) 882-4880, ext. 1269 or by email.