July 2021

Get ready for CARM – Secure a Release of Goods Bond

In the March issue of Route we identified the 4 key aspects to registering for CARM (CBSA Assessment and Revenue Management).  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).

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

In our April, May and June issues of Route we covered Steps 1, 2 & 3 (click on the links above to review those steps).  Today’s article focuses on Step 4, securing a Release of Goods Bond.

IMPORTANT:  Without the required bond, importers will be required to pay CBSA in advance for all duties/taxes prior to gaining release of imported shipments.  Universal Logistics can assist to obtain the necessary Release of Goods Bond upon request.

Navigate to the Delegation of Authority page on the portal and select “Manage pending third party requests”.

CARM requires all importers to post security with CBSA to guarantee the payment of duties and taxes before goods will be customs released (Release Prior to Payment – RPP).  This is similar to the current U.S. bonding model which requires all imports to have a valid bond posted.

Under CARM and effective at Release 2 (scheduled for May/June 2022), all importers must post security by way of a bond or a cash deposit to be eligible for RPP:

RPP Security Calculation Timeframe The current 12 month timeframes for calculating RPP security are from July 25th to July 24th, with updates required by October 15th of each year.  For consistency and simplicity, this model will continue.  For importers without 12 months of history, an estimation will be permitted as it is today.

Importer security is mandatory for all importers at CARM Release 2 (scheduled for May/June 2022).  With over 250,000 importers requiring bonds, surety companies will be faced with an influx of bond requests within a relatively short period of time.

Contact Universal Logistics to help secure your bond electronically prior to the Release 2 deadline.

For more information on CARM Financial Security and FAQs click here.

For more details on CARM and for tips on how to get ready – visit our website or contact your Client Care Rep to discuss how the proper delegation of authority will streamline your import clearance process.

South China port disruptions could extend to Christmas

A COVID outbreak at the Port of Yantian, China in June resulted in restricted operations, which caused massive congestion at the port.  This port restriction also affected the neighbouring ports of Shekou, Nansha and Hong Kong.  Despite the port of Yantian now operating at full capacity again, the backlog of freight has severely impacted the manufacturing sector.  Many factories were forced to pause production, as they could not ship their goods, resulting in lack of space in their warehouses.  This will cause further supply chain delays that will be felt for many months.

Blank sailings are also on the rise in July, with a total of 17 to the Pacific South West; seven of which will occur in the last week of July, meaning backlogs and congestion will spill into August.  Shanghai and Yantian are also starting to experience even more congestion as peak season volume ramps up; both ports are currently experiencing a 5-6 day delay on average.

The availability of equipment is now at critical levels in South China.  There are shortages of 40’/40’HQ and 45’ containers, with carriers pushing shippers to utilize 20’ containers to keep goods flowing.  The ports of Los Angeles and Long Beach are still heavily congested, and the terminal operators are expecting a spike in imports from the vast backlog of US-bound cargo that had built up at Yantian port during the COVID outbreak.  There are currently approximately 10-15 vessels anchored off port waiting to berth.

Other ports, such as Oakland, which had picked up some of Yantian’s volume during the outbreak are also clearing their backlogs.  These delays at US ports slow the return of empty containers back to Asia, and further compound equipment shortages.  The demand for containers is still well outpacing supply, and carriers are taking full advantage by increasing their rates and being creative with new surcharges.  The surcharges, which are being implemented by carriers in August, can be in excess of $5,000 USD.  The trickle-down effect results in disruptions that will most likely not subside until after the Lunar New Year in 2022.

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

	One of the country’s most iconic buildings which is the scene of the popular Changing of the Guard display.

Global Spotlight Quiz

Name the city known for its Palace and the Changing of the Guard

• Known worldwide for being a rainy city, it actually sees less rain than Rome, Miami and Sydney, both in terms of volume and number of rainy days.
• One of the most culturally diverse cities in the world, it has over 8 million residents who speak over 300 languages.
• Known for its Underground transit system, over half of it actually runs above ground.
• Big Ben is the city’s most famous landmark.
• Home to famous Trafalgar Square which once was home to thousands of feral pigeons.  Feeding pigeons has been banned since 2003, in an effort to keep them at bay.
• The Millennium Dome is so big that it can fit the Great Pyramids of Giza under its roof.
• Has hosted the Olympics three time – in 1908, 1948 and 2012.
• Home to one of the world’s most notorious serial killers, Jack the Ripper.

See the answer

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

Quick Tip

The link between insurance premiums and risk

There are many factors which affect the pricing of your insurance premium, but all revolve around the risk involved.  For example, the longer the transit time, the more time available for something negative to happen.  Shipping to certain countries or areas of the world involves greater risk.  Lesser developed countries might have political unrest or port loading/unloading facilities not up to standard.  Perishable or certain products prone to theft both involve higher risk.  The higher the risk, the higher the cost of your insurance premium.

When requesting a cargo insurance rate for your product, provide as much information as possible with the key points being:

• Cargo type (full product description of the goods, value, perishable, etc.)
• Packaging detail (loose cartons, pallets, bulk, reefer, full container load or truck load or less than container or truck load, etc.)
• Method of transport & transit time (air, ocean or truck)
• Routing information (origin, destination, port facilities, etc.)
• Security detail (package markings, warehouse security measures, etc.)
• Past experience of both the shipper and consignee (cargo claims history, past record of damages or theft, etc.)

With this information, the insurer will be able to properly assess the level of risk (susceptibility to damage, loss and theft) associated with your product and offer the best possible cargo insurance premium rate.

	Lukas Hamann, Manager – Border Clearances

At Your Service: Lukas Hamann, Manager – Border Clearances

Lukas Hamann joined Universal’s Head Office Customs Operations team in May of 2016, where he was responsible for High Value truck and courier clearances.  In June 2019, Lukas was promoted to the position of Team Leader – Border Clearances, where he proved to be a valuable resource to all our clients.

In May 2021, Lukas was promoted to the role of Manager – Border Clearances within our Customs Operations team.  In this role, Lukas will focus on our internal quality control processes and provide technical and transactional support to our entire Customs Operations team, while continuing to ensure the needs of our clients are met.

Lukas can be reached by phone (905) 882-4880, ext. 1235 or by email.