New Regulations for Formaldehyde Emissions from Composite Wood Products Come into Effect

The Formaldehyde Emissions from Composite Wood Products Regulations (the Regulations) prohibit the import, sale or offer for sale of composite wood products that emit formaldehyde above established limits.

The Regulation comes into effect on January 7, 2023. It is part of a larger initiative that was put in place to protect the environment and public health by controlling the release of toxic pollutants. Testing and third-party certification requirements for laminated products will come into effect on January 7, 2028.

Exemptions to the Regulation

The guidance document exempts the following from compliance with the new law:

  1. Woody veneers glued to cores other than composite wood product cores, such as lumber core
  2. Products composed of composite wood product cores glued to thin layers of material other than wood veneer, such as:
  • Laminate flooring that includes a top layer that has an imprinted, textured image made to look like real wood, and
  • Laminated kitchen counters, which typically consist of a plastic layer glued to PB

Testing Requirements

According to the guidance document, preliminary testing using ASTM E1333 (large chamber) or ASTM D6007 (small chamber) is to be carried out four times annually during specific periods by an accredited laboratory, in addition to quality control (QC) testing. The guidance document also details the QC testing frequency based on weekly and monthly production and provides a non-exhaustive list of methods for QC testing (see Table 1 below).

Certification

Certification is a prerequisite for importing or selling composite wood panels and laminated products in Canada. This certification requires verification from a qualified third-party certifier (TPC) that the formaldehyde emissions from the particular product types did not exceed the applicable limit based on at least 5 primary and 5 QC tests. Ongoing verification by a qualified TPC is required to maintain certification. For more information on the roles and responsibilities of the TPC, see Third-party certifiers: composite wood products containing formaldehyde.

New Export Import Control System (New EICS)

Global Affairs Canada (GAC) recently completed an upgrade to the Export Import Controls System (EICS).

The New EICS enables licenced customs brokers to apply online for export or import permits for controlled goods. Products subject to import controls include agricultural products, firearms, textiles and clothing, steel, and aluminum.

This notification represents changes in the web interface and does not constitute changes in trade control policy or the permit process.

Key Takeaways

  • The upgrade includes:
    • a new web user interface supported by up-to-date browsers
    • updates to align with Government of Canada security and accessibility standards
    • enhanced system navigation
    • new authentication system with unique log-in credentials
  • Note that access privileges in the New EICS will remain the same as they were in the old system. This upgrade also does not constitute changes in trade control policy or the permit process.
  • Functionality, EICS tabs and processes also remain unchanged. The New EICS represents a modernization of the authentication system and web interface.

Related Links

●      EICS – Participants Requirements Document (Version 2.4, March 2012)

●      List of licensed customs brokers (CBSA)

●      EICS Hours of Operation

●      EICS PKI Policy for Customs Brokers Certificates

●      Frequently Asked Questions (FAQ)

●      EICS Privacy Impact Assessment

“We define, shape, and advance Canada’s interests and values in a complex global environment. We manage diplomatic relations, promote international trade, and provide consular assistance. We lead international development, humanitarian, and peace and security assistance efforts. We also contribute to national security and the development of international law.” –Global Affairs Canada

ARGO Customers Brokers Is Ready to Help

ARGO Customs Brokers has registered for the new EICS system and can assist you in applying to obtain an EIPA number for your company. Note that permits can also be accessed via the new EICS portal.

You are invited to inquire regarding a free consultation regarding changes to the EICS system. ARGO Customs Brokers is pleased to assist with all of your import and export business.

CBSA Tariff Rules

The Harmonized Commodity Description and Coding System (HS) forms the basis of the Canadian Customs tariff. The HS was developed and is maintained by the World Customs Organization (WCO), an independent intergovernmental organization with over 179 members based in Brussels, Belgium. The HS is the standard coding structure and related product description system used in international trade.

Two elements establish the customs rate of duty payable on imported goods:

  • the origin of goods
  • the applicable tariff classification number

The CBSA uses rules pertaining to the origin of goods to determine which goods are entitled to a particular tariff treatment. These rules set out how much production must occur in Canada or in another country for the goods to be considered “originating in” that country and if they are entitled to a specific tariff treatment. This ensures that zero or reduced duty rates are only applied to countries that have a Canadian trade agreement in place.

All claims for preferential tariff treatment must also meet the shipping requirements (such as direct shipment, transit, and transhipment) for that tariff treatment. The shipping provisions identify the requirements to be met for goods coming to Canada. For instance, the goods must remain under Customs control at all times and not undergo any production other than unloading, reloading, splitting up of loads, or operations required to keep the goods in acceptable condition (such as refrigeration, repacking, etc.).

Key Takeaways

  • Goods must be classified according to the Harmonized Commodity Description and Coding System so that the rules of origin can be properly applied. Each tariff treatment is linked to certain rules of origin.
  • The origin of goods and the applicable tariff classification number establish the customs rate of duty payable on imported goods.

ARGO Customers Brokers Is at Your Service

ARGO Customs Brokers will be happy to assist you with your particular case and can explain all CBSA legislation and requirements in simple terms.

You are welcome to inquire regarding free consultation for the proper application of all Tariffs and Trade (TT) and you can reap the benefits of applying all Canadian Free Trade and preferential Tariffs.

CBSA signs Mutual Recognition Agreement with the European Union to Enhance Supply Chain Security and Facilitate Trade

CBSA signs Mutual Recognition Agreement with the European Union

Argo Customs Brokers is dedicated to maintaining clear communication with their customers and those who wish to keep themselves informed about important importing and exporting regulations. As such, we present pertinent points from a news release issued by the Canada Border Services Agency.

The news release titled CBSA signs Mutual Recognition Agreement with the European Union to enhance supply chain security and facilitate trade was published on October 28, 2022.

The Canada Border Services Agency (CBSA) announced the signing of a Mutual Recognition Agreement with the European Union’s (EU) Taxation and Customs Union (TAXUD) to honour each other’s Trusted Trader programs. The signing took place during a Canada-EU Joint Customs Cooperation Committee meeting in Brussels, Belgium. This contributes to increasing the security of the international supply chain, facilitating trade at the border, and strengthening the economic competitiveness of Canadians doing business with the EU.

Members of Canada’s Trusted Trader program, Partners in Protection (PIP), will have their goods treated as low risk and cleared by EU Customs faster, ultimately saving time and money at the border. The CBSA will do the same for members of the EU’s Trusted Trader program, which is referred to as their Authorized Economic Operator program. This will also allow the CBSA to focus its resources on areas of higher or unknown risk and protect Canadians by preventing contraband from entering the country.

The CBSA establishes mutual recognition with customs organizations around the world so countries can recognize each other’s program members as low risk and honour similar benefits. It signifies that countries apply similar security standards and validation processes when approving program applicants. The key goal of mutual recognition is to strengthen trust and security in the supply chain to prevent criminal activity, such as cargo theft, pilferage, and smuggling contraband. Mutual recognition also contributes to trade by streamlining processing at the border for certified and trusted traders.

“The Canada Border Services Agency is pleased to have signed a Mutual Recognition Agreement with the European Union, Canada’s second-largest trading partner. This agreement will enhance international supply chain security, facilitate trade between Canada and Europe, and strengthen the economic competitiveness of Canadian businesses.” —Erin O’Gorman, President, Canada Border Services Agency

Key Takeaways

  • The EU is one of the largest economies in the world and Canada’s second-largest trading partner after the United States.
  • The EU is a large, dynamic market of 450 million consumers that offers tremendous opportunities for Canadian businesses in a wide range of sectors.
  • The Canada-EU Comprehensive and Economic Trade Agreement has significantly expanded commercial opportunities between the parties.
  • In 2021, the value of trade in goods between the EU and Canada was approximately $88.2 billion.
  • In addition to this agreement with the EU, the CBSA has established mutual recognition with the customs administrations of Australia, Hong Kong, Israel, Japan, Mexico, New Zealand, Peru, Singapore, South Korea and the United States.

Associated Links

Argo Customs Brokers is Available to Assist

If you or your company imports goods that are affected by this agreement, ARGO Customs Brokers would be happy to talk with you about how you and your company can get the most out of it. The team at Argo Customs Brokers is always available to answer questions about importing and exporting and can help you understand the effect that this agreement can have on your plans. All inquiries are welcome.

The Canada-United States-Mexico Agreement

The Canada-United States-Mexico Agreement

Argo Customs Brokers is dedicated to maintaining clear communication with their customers and those who wish to keep themselves informed about important importing and exporting regulations. As such, we present pertinent points from a news release issued by the Canada Border Services Agency.

The customs notice titled Implementation of the Canada-United States-Mexico Agreement (CUSMA) was published on April 3, 2020.

The Canada-United States-Mexico Agreement (CUSMA) entered into force on July 1, 2020, replacing the North American Free Trade Agreement (NAFTA). There was no transition period.

Since CUSMA came into effect, the CBSA has applied the LVS threshold consistently across all commercial programs, regardless of the mode, stream of importation, or free trade agreement under which a preferential tariff treatment is claimed. It is not limited to the Courier Low Value Shipment Program.

CUSMA coming into effect does not impact the application of existing anti-dumping or countervailing measures in force for goods originating or imported from Mexico or the US.

“Canada, the United States, and Mexico created the largest free trade region in the world, generating economic growth and helping to raise the standard of living for the people of all three member countries. The Canada-United States-Mexico Agreement (CUSMA) will serve to reinforce Canada’s strong economic ties with the United States and Mexico.” ~ Canada Border Services Agency

Key Takeaways

  • In order to claim preferential tariff treatment under the Canada-United States-Mexico Agreement (CUSMA), a certification of origin is required. The certification of origin has no prescribed format but instead consists of a set of minimum data elements.
  • The certification of origin may be completed by either the exporter, producer, or importer of the goods for the purpose of certifying that a good being exported from the territory of another party qualifies as an originating good. It may be provided on an invoice or any other document and may be completed and submitted electronically, including with an electronic or digital signature.
  • A shipment’s value must not exceed $3,300 to meet the low-value shipment (LVS) threshold.
  • LVS allows goods to benefit from simplified report, release, accounting, and documentation requirements, and these benefits apply regardless of the origin of manufacture or country of export.

Associated Links

Argo Customs Brokers is Available to Assist

If you are an individual or represent a company that is involved with importing goods affected by this agreement, ARGO Customs brokers can provide the CUSMA form and assist with filling it out. The team at Argo Customs Brokers is always available to answer questions about importing and exporting and can help you understand the effect that this agreement can have on your plans. All inquiries are welcome.

CBSA Signs Mutual Recognition Agreement with the European Union

Argo Customs Brokers is dedicated to maintaining clear communication with their customers and those who wish to keep themselves informed about important importing and exporting regulations. As such, we present pertinent points from a news release issued by the Canada Border Services Agency.

The news release titled CBSA signs Mutual Recognition Agreement with the European Union to enhance supply chain security and facilitate trade was published on October 28, 2022, by Canada Border Services Agency.

Strong partnerships between customs organisations and businesses enhance the security and integrity of our global supply chain.

Today, the Canada Border Services Agency (CBSA) announced the signing of a Mutual Recognition Agreement with the European Union’s (EU) Taxation and Customs Union (TAXUD) to honour each other’s Trusted Trader programs. The signing took place during a Canada-EU Joint Customs Cooperation Committee meeting in Brussels, Belgium.

This agreement will contribute to increasing the security of the international supply chain, facilitating trade at the border, and strengthening the economic competitiveness of Canadians doing business with the EU.

Members of Canada’s Trusted Trader program, Partners in Protection (PIP), will have their goods treated as low risk and cleared by EU Customs faster, ultimately saving time and money at the border. The CBSA will do the same for members of the EU’s Trusted Trader program, which is referred to as their Authorized Economic Operator program. This will also allow the CBSA to focus its resources on areas of higher or unknown risk and protect Canadians by preventing contraband from entering the country.

The CBSA establishes mutual recognition with customs organisations around the world so countries can recognize each other’s program members as low risk and honour similar benefits. It signifies that countries apply similar security standards and validation processes when approving program applicants. The key goal of mutual recognition is to strengthen trust and security in the supply chain to prevent criminal activity, such as cargo theft, pilferage, and smuggling contraband. Mutual recognition also contributes to trade by streamlining processing at the border for certified trusted traders.

 

Border management is a shared international responsibility. Threats and opportunities arising from global migration and trade are dealt with most effectively by working together. Expanding the international network of accredited low-risk companies allows customs administrations to focus on targeting shipments of higher or unknown risk.

“The Canada Border Services Agency is pleased to have signed a Mutual Recognition Agreement with the European Union, Canada’s second-largest trading partner. This agreement will enhance international supply chain security, facilitate trade between Canada and Europe, and strengthen the economic competitiveness of Canadian businesses.” –Erin O’Gorman, President, Canada Border Services Agency

Key Takeaways

  • The EU is one of the largest economies in the world and Canada’s second-largest trading partner after the United States.
  • The EU is a large, dynamic market of 450 million consumers that offers tremendous opportunities for Canadian businesses in a wide range of sectors.
  • The Canada-EU Comprehensive and Economic Trade Agreement has significantly expanded commercial opportunities between the parties.
  • In addition to this agreement with the EU, the CBSA has established mutual recognition with the customs administrations of Australia, Hong Kong, Israel, Japan, Mexico, New Zealand, Peru, Singapore, South Korea and the United States.

Associated Links

Argo Customs Brokers is Available to Assist

If you are an individual or represent a company that is involved with EU importing/exporting, be sure to read the above notification by the Canada Border Services Agency and the associated links regarding the agreement thoroughly. The team at Argo Customs Brokers is always available to answer questions about importing and exporting and can help you understand the effect that this agreement can have on your plans. All inquiries are welcome.

Excise Duty Notice EDN80 – Vaping Products

The Government of Canada has introduced an excise duty (vaping duty) on vaping products through a new excise duty framework. The vaping duty and the vaping excise stamps apply to vaping substances that are manufactured in Canada or imported, and that are intended for use in a vaping device in Canada. The excise duty framework for vaping products came into effect on October 1, 2022.

Vaping duty means a duty imposed under section 158.57 of the Excise Act, 2001.

Vaping excise stamp means a stamp that is issued by the Minister of National Revenue under subsection 158.36(1) of the Excise Act, 2001, and that has not been cancelled under section 158.4 of that Act.

Vaping product means:

a) a vaping substance that is not contained within a vaping device; or

b) a vaping device that contains a vaping substance.

It does not include a cannabis product or a tobacco product.

The purpose of this notice is to provide information on excise stamps for vaping product licensees that intend to package vaping products in Canada or import packaged vaping products intended for the duty-paid market, as well as for vaping prescribed persons that import packaged vaping products into the duty-paid market. It also provides information on the transitional provisions that relate to the vaping stamping regime.

Excise Warehouse Licence

A vaping product licensee who manufactures and imports vaping products in Canada for export or for sale to an accredited representative, also requires an excise warehouse licence. Under the Excise Act, 2001, vaping products manufactured or imported in Canada that are packaged but not stamped, must be immediately entered into the licensee’s excise warehouse.

Vaping Product Licence – Exceptions

A person does not have to apply for a vaping product licence under the Excise Act, 2001 if they

  • are not manufacturing vaping products in Canada
  • are importing vaping products only for their personal use in quantities that to not exceed the prescribed limit of 5 units, as per section 5.1 of the Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations
  • are only importing stamped packaged vaping products into Canada (i.e., they do not manufacture vaping products in Canada). In such a case, the person must apply to the CRA to be a vaping prescribed person.

Key Takeaways

  • Application of Customs Act

New section 158.59 of the Act provides that the duties on imported vaping products imposed under new sections 158.57 and 158.58 of the Act must be paid and collected under the Customs Act as if they were duties levied under the Customs Tariff.

  • Duty on vaping products taken for use

New subsection 158.6(1) of the Act provides that if vaping products are taken for use (see commentary for the definition “take for use”) then a duty is imposed in the amount determined in respect of the vaping product under new Schedule 8 to the Act. If the vaping products that are taken for use are packaged, they are also relieved of the duty imposed under new section 158.57 of the Act.

Helpful Links

Overview of Vaping Excise Stamps

A person may apply to be registered for the vaping stamping regime at the same time they apply for a vaping product licence or vaping prescribed person registration under the Act by completing Form L601, Registration for the Vaping Stamping Regime.

For more information on obtaining a vaping product licence, refer to Excise Duty Notice EDN79, Obtaining and Renewing a Vaping Product Licence.

For more information on applying to become a vaping prescribed person, refer to Excise Duty Notice EDN81, Becoming a Vaping Prescribed Person.

Importing commercial goods by courier (CLVS program)

The Canada Border Services Agency’s (CBSA) measures regarding Importing goods through the Courier Low Value Shipment (CLVS) Program continue to be in force. Argo Customs Brokers continues to participate in the program to assist its customers.

Secure Customs Brokerage accounts with UPS, DHL and FedEx are maintained. When customers are shipping with them, all documents are prepared electronically via a special Customs Broker’s connection on a secure site.

The Canada Border Services Agency (CBSA) is a federal agency that facilitates the flow of legitimate travellers and trade. The agency also enforces more than 100 acts and regulations that keep Canada and Canadians safe.

Shipments Eligible Through CLVS Program

Specific restrictions apply to all shipments imported through the Courier Low Value Shipment (CLVS) program whether for commercial or personal use.

Your shipment may be part of the CBSA’s CLVS Program if:

  • The entire shipment is valued at are worth Can$3,300 or less;
  • The company handling the shipment currently participates in the CLVS Program; and
  • The goods are not regulated, controlled or prohibited.

source: CBSA, 2020

 Key Takeaways

  • The exporter provides the courier with the value, country of origin, and a detailed description of the goods.
  • Only eligible shipments are processed through the Courier Low Value Shipment (CLVS) Program.
  • The CBSA reviews each shipment and may choose to examine the shipment to confirm eligibility of the goods to enter Canada.
  • Once the CBSA is satisfied that the shipment complies with all import regulations, it is released to the courier for delivery.

Helpful Links

Importing goods through the Courier Low Value Shipment (CLVS) Program

Note that only a licensed customs broker may account for goods and pay duties under section 32 of the Customs Act as the agent of the owner or importer of the goods.

For further details on what goods are considered regulated, controlled or prohibited please refer to departmental memoranda: D9 – Prohibited Importations and D19 – Acts and Regulations of Other Government Departments.

Temporary Ban on Importation of Handguns Into Canada Now in Effect

Argo Customs Brokers is dedicated to maintaining clear communication with their customers and those who wish to keep themselves informed about important importing and exporting regulations. As such, we present pertinent points from a news release issued by Global Affairs Canada.

The news release titled Temporary Ban on Importation of Handguns Into Canada Now in Effect was published on August 19, 2022 by Global Affairs Canada.

A temporary ban on restricted handgun imports has been announced by the Hon. Mélanie Joly, Minister of Foreign Affairs, and the Hon. Marco Mendicino, Minister of Public Safety. Individuals and businesses will no longer be able to apply for permits for import-restricted handguns into Canada, with narrow exceptions. These measures will be in force until the proposed in Bill C-21 goes into effect.

Less than three months after Canadian Minister of Public Safety, Mark Mendicino, announced new gun control laws, the government has temporarily banned the import of handguns into the country. The bill represents a shift by the federal gov­ernment to rely on regulation rather than legislation.

“My top priority as minister of public safety is keeping Canadians safe. This temporary ban is further proof that we are using all the tools at our disposal to fight gun crime. It is a key pillar of our plan to address it, along with investments in prevention, action at our borders, a ban on assault-style weapons and Bill C‑21: Canada’s most significant action on gun violence in a generation.” –Marco Mendicino, Minister of Public Safety

Bill C-21 is one of the most stringent gun control laws passed by Parliament in decades. The bill would also include stricter penalties for people who smuggle guns into the country and for people who traffic them. Meanwhile, the number of firearms seized at border crossings more than doubled in 2021, compared to 2020.

Key Takeaways

  • Canada’s Firearms Act and Part III of the Criminal Code regulate firearms.
  • Canada regulates a variety of imports on the Export and Import Permits Act Import Control List.
  • The 2021 budget provided $312 million to expand weapons tracing and strengthen border control to prevent gun smuggling and trafficking.
  • The Canadian government has already introduced Firearms Act revisions that will take effect in the Fall of 2022.
  • The Canadian government launched Bill C-21 in May 2022 to reduce gun violence.

Associated Links

Export and Import Controls – Firearms: Requirements for exporting prohibited firearms

Import Control List and the Export and Import Permits Act.

Canadian Firearms Program – Overview: ARCHIVED – RPP 2006-2007 – Royal Canadian Mounted Police 5 / 6 (canada.ca)

Bill C-21: An Act to amend certain Acts and to make certain consequential amendments (firearms)

Argo Customs Brokers is Available to Assist

If you are an individual or represent a company that imports handguns or wishes to do so, make sure to read the above notification from Global Affairs Canada and the associated links regarding regulations thoroughly. The team at Argo Customs Brokers is always available to answer questions about importing and exporting and can help you to understand the effect that this new temporary ban can have on your plans. All inquiries are welcome.

Canada Border Services Agency and U.S. Department of Commerce renew focus on keeping sensitive technologies and goods out of Russian hands

The U.S. Department of Commerce, Bureau of Industry and Security and the Canada Border Services Agency (CBSA) play an important role in the coordinated response to Russian aggression in Ukraine.

Through stringent enforcement measures, we are restricting Russia’s access to technologies and other goods Russia needs to sustain its aggressive military capabilities.

The CBSA facilitates the flow of legitimate travellers and trade, and also enforces more than 100 acts and regulations that keep Canada and Canadians safe. Bureau of Industry and Security’s mission is to advance U.S. national security, foreign policy, and economic objectives by ensuring an effective export control and treaty compliance system and promoting continued U.S. strategic technology leadership.

CBSA enforce a wide array of measures, including sanctions and export controls, that are used to prevent sensitive goods and technologies from reaching illicit procurement networks, where they could be used to produce weapons of mass destruction or conventional weapons. Our enforcement efforts allow us to identify and stop state and non-state actors that engage in potentially illicit activity, carry out seizures, enforce monetary penalties and criminally investigate those who violate the rules and regulations.

Today, both Agencies are strengthening our U.S.-Canada enforcement relationship through a joint commitment to leverage our authorities and resources to detect, deter, and stop violations of export controls and to ensure compliance with laws and regulations. Together, we will share information; conduct pre- and post-shipment verifications and audits; inspect, detain, and seize shipments; and reduce threats through coordinated enforcement actions and investigations.

Quick facts

The CBSA helps ensure that exporters comply with national policies, processes, procedures, regulations and legislation related to exporting commercial goods.

Bureau of Industry and Security advances U.S. national security, foreign policy, and economic objectives by ensuring an effective export control and treaty compliance system, and by promoting continued U.S. leadership in strategic technologies.

Export controls are restrictions applied by governments as a means to regulate, and sometimes deny, trade in specific goods and technologies.

Through legislation tabled in May 2022, the Government of Canada will strengthen sanctions by banning sanctioned Russians from entering Canada.