Your Broker Knows Blog

Canada and other countries are constantly negotiating and renegotiating trade deals to gain economic advantage in the global economy. A basic understanding of some of the terminology surrounding trade can benefit our understanding of some of the trade deals in the news today.

We have all seen the “Made in USA” stamp or label affixed to goods purchased around the world. Although the label is intended to be used to identify goods as meeting the Rule of Origin, it has also morphed into a mark of quality goods resulting in its use for sales purposes. We feel good about purchasing these goods because they are helping our economy and employing our residents. However, in recent months the Federal Trade Commission has ascertained that there is “rampant fraud” in the use of these labels and state that “violators essentially faced no consequences.” This has sparked impending rules on such claims with steep penalties for those who use them fraudulently.

As a US exporter, you must know that US federal law requires “that prior to an international shipment, you may need to file your export transaction electronically. This electronic filing is referred to as Electronic Export Information (EEI) filing, and is required when the value of the commodity classified under each individual Schedule B number is over $2,500 USD, or if an export license is required.” The EEI is the export data that must be filed through the Automated Export System (AES) by the US exporter, who is now known as the US Principal Party in Interest (USPPI). The USPPI is the party that receives the major benefit (usually money) of the export transaction. As indicated below, the US Foreign Trade Regulations (FTR) require an AES filing for exports to anywhere other than Canada (unless an export license is required). 

Most importers are well aware that US Customs and Border Protection (CBP) can and often does assess harsh civil penalties against importers for importing goods in violation of often difficult-to-comprehend laws and regulations. Whether or not there has been an actual duty loss can also affect a penalty assessment by CBP against the importer. In this blog, we will explore the importance of accurate customs valuation for US importers.

Section 301 of the Trade Act has been the topic of many discussions in international trade over the past few years. It can have a large impact on importers into the US, causing questions and concerns. To address some of these questions, we offer you the following details on Section 301, including a historical look at it and our recommendations for you moving forward.

The United States Department of Agriculture (USDA) requires importers to report specific information on the Lacey Act Declaration Form. This information is in addition to the US Customs reporting requirements.

The Softwood Lumber Board announced on February 25th that the softwood lumber assessment fee and calculation thereof, is set to change on April 1st, 2021 on all softwood lumber imports into the US from abroad.

On-demand courses offer the same valuable content as our in-class seminars, but instead of a lecture-style presentation, we've sat our experts in global trade down for a Q&A-style interview. We have broken each topic down into bite-size modules. Imagine a Netflix series, and your new favorite show is How To Import Into Canada (sounds exciting!). Within these 1-2 hour online courses - aka seasons - there are about 8 modules - aka episodes - of varying duration. You can play, pause, skip, rewind, fast forward, or even re-watch any module you'd like. With unlimited access, you can binge them all at once or tune in one by one at your own pace. You hold the remote control.‍

APHIS CORE is scheduled to transition to the Automated Commercial Environment (ACE) electronic reporting system on January 25, 2021. This means it will be mandatory to report APHIS information electronically for those commodities covered under APHIS Core.

What many US importers don’t know is that these goods can only remain at this warehouse for a maximum of 15 days, after which they will be removed and brought to a Customs General Order warehouse. This is a costly expense that can be avoided with these 3 tips.