Trade Compliance

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Canada Customs & Other Regulatory Trade Updates: March-April 2018

Posted April 13, 2018

A summary of recent regulatory updates, notifications, and technical bulletins from the Canada Border Services Agency and other federal government departments, agencies and administrative entities concerning Canadian imports and exports.


Canada Border Services Agency

Customs Notice 18-03: Decommissioning of Legacy Release Service Options
Notification that CBSA has extended the deadline for “onboarding” to the Single Window Initiative to Jaunuary 1, 2019 and that decommissioning of the Release on Minimum Documentation and Pre-Arrival Review System service options for imported goods regulated by other government departments has been pushed back to April 1, 2019. Click here for more information.

Memorandum D11-4-32: Application of the De Minimis Provision to Textile and Apparel Goods Under NAFTA
Clarification regarding the CBSA’s policy and general application of the NAFTA de minimis provision for textile and apparel goods of Chapters 50 to 63 of the List of Tariff Provisions set out in the Schedule to the Customs Tariff.

PLA3 2017 ER: Certain Hot-rolled Carbon Steel Plate
Statement of reasons concerning an expiry review pursuant to SIMA regarding certain hot-rolled steel plate originating in or exported from China determining that the expiry of the CITT’s 2013 order is likely to result in the continuation or resumption of dumping.

Canada Revenue Agency

SOR/2018-41: Amending the Regulations Relieving Special Duty on Certain Tobacco Products, etc.
Regulatory amendments made pursuant to the Excise Tax Act to add two brand names to the Schedule 1 of both the Prescribed Brands Regulations and the Special Duty Regulations.

Canadian Food Inspection Agency

Notice to Industry: U.S. Foreign Supplier Verification Program
Notification concerning the need for Canadian food businesses to be prepared to meet the proposed SFCR licencing requirements when the federal government’s proposed Safe Food for Canadians Regulations come into force and how this relates through the bilateral Food Safety Systems Recognition Arrangement between the U.S. and Canada to the U.S. government’s recently implemented Foreign Supplier Verification Program.

Notice to Industry: Plant Protection Program
Notification that the CFIA has streamlined its plant protection program concerning the import, transfer and handling of potentially injurious organisms (PIOs) in Canada. PIOs include invertebrates and micro-organisms that are plant pests or that may be contaminated with plant pests.

Notice to Industry: New Voluntary National Biosecurity Transportation Standard
Notification that the CFIA and the private-industry Canadian Animal Health Coalition have developed the new voluntary standard outlining biosecurity practices to help prevent the spread or transmission of diseases during livestock, poultry and deadstock transportation.

2018-08: Meat Hygiene Directive – Pathogen Reduction
Update to Chapter 19 of the Meat Hygiene Manual of Procedures concerning the replacement and addition of pathogen reduction “programs” rather than “efforts” in regards to poultry inspection.

2018-07: Meat Hygiene Directives – China
Update to the Meat Hygiene Manual of Procedures clarifying the language requirements for labeling and packaging for meat exports to China.

2018-06: Meat Hygiene Directive – China
Update to Chapter 10 of the Meat Hygiene Manual of Procedures regarding conditions for importation of meat and meat products from China.

2018-04: Meat Hygiene Directive – Chemical Residue Monitoring
Updates to Chapter 10 of the Meat Hygiene Manual of Procedures, Annex M-1 concerning country-specific requirements of the Chemical Residue Monitoring Program.

2018-04: Meat Hygiene Directive – Argentina
Chapter 11 of the Meat Hygiene Manual of Procedures updated to note that pork trimmings are not eligible for export to Argentina.

Web Notice 20180323: Update to the “Import Information By Jurisdiction” Re Mexico
Notification that a “List of establishments approved to export live or raw molluscan shellfish from Mexico to Canada” has been added to the guidance documentation the CFIA provides from certain other countries deemed to have reliable inspection systems.

Notice to Industry: AIRS Update on Pasteurized/Unpasteurized Cheese
Notification that the CFIA is updating the Automated Import Reference System (AIRS) database to distinguish between cheese manufactured from pasteurized and unpasteurized milk.

Canadian International Trade Tribunal

Appeal AP-2016-039: Worldpac Canada Inc. v. President of the CBSA
The issue in this appeal is whether certain shock absorbers, strut assemblies and shock suspension kits qualify for duty relief under tariff item 9961.00.00 as “vacuum, hydraulic or air control assemblies for use in the repair of motor vehicles principally designed for the transportation of persons or goods.” The CBSA maintained that the goods in issue are not “hydraulic control assemblies” and should be classified as “Other suspension shock absorbers” under tariff item 8708.80.30  (subject to duty at 6%). Based on an interpretive framework established by precedent for the definition of “hydraulic control assemblies,” the CITT found the subject goods satisfied the terms of tariff item 9961.00.00 and allowed the appeal.

Appeal AP-2017-008: Honda Canada Inc. v. President of the CBSA
The issue in this appeal is whether the complete automatic transmissions used to replace defective original transmissions covered by warranty qualify for duty relief under tariff item 9958.00.00 as “parts, accessories and articles... for use as original equipment in the manufacture of [passenger automobiles, trucks or buses] or chassis therefor.” Contending that “manufacture” does not include repair or replacement and also that the subject goods do not constitute “original equipment,” the CBSA maintained they were properly classified under tariff item 8708.40.29 (subject to duty at 6%). Rejecting Honda’s argument that the trade meaning of “original equipment” includes parts used for aftermarket replacement in vehicles originally equipped with the same part and therefore the expressions used in tariff item No. 9958.00.00 should be given broader scope, the CITT ruled that the meaning of the terms under dispute are unambiguously clear and do not extend to articles for use in the replacement of parts under vehicle warranty. The appeal was therefore dismissed.

Expiry LE-2018-001: Carbon Steel Welded Pipe
Statutory notice pursuant to SIMA that the CITT will be deciding whether an expiry review is warranted for a 2013 order concerning the dumping and subsidization of certain carbon steel welded pipe (standard pipe) originating in or exported from China that is scheduled to expire on August 19, 2018.

Inquiry NQ-2017-005: Dry Wheat Pasta
Following a preliminary determination by the CBSA regarding the dumping and subsidizing of certain dry wheat pasta originating in or exported from Turkey, pursuant to the provisions of SIMA, the CITT has initiated an inquiry to determine whether this has caused injury or harm to domestic producers, or is likely to do so in the future.

Inquiry NQ-2017-003: Polyethylene Terephthalate Resin
Following an inquiry pursuant to the provisions of SIMA into whether the dumping and subsidizing of certain PET resin originating in or exported from China, India, Oman and Pakistan have caused injury or are threatening to cause injury to the domestic industry, the CITT finds that the volumes of subject goods from Oman and Pakistan are negligible and have therefore not caused harm to Canadian producers.