L’article Trade between the United States and Canada: New Realities to Navigate est apparu en premier sur Groupe Export Agroalimentaire.

September 30, 2024 – Port de Montréal | Partial Strike

The SCFP Longshoremen’s Union, Local 375, filed a notice with the Maritime Employers Association (MEA) at 7 a.m. for a three-day strike at the Viau and Maisonneuve container terminals. The strikes starts today, September 30th.

Press Release | Partial Strike Notice

September 9, 2024 – Air Canada | Conflict

Air Canada and ALPA Reach Tentative Agreement on a New Four-Year Contract. Air Canada and Air Canada Rouge will stay in service.

Press Release | Air Canada and ALPA Reach Tentative Agreement on a New Four-Year Contract

September 9, 2024 – Air Canada | Conflict

Air Canada and Air Canada Rouge are preparing to gradually suspend their flights over a period of three days, potentially starting after September 15, 2024. This decision could impact the travel of our members for their international business, particularly for trade shows.

Press Release | Air Canada Prepares for Orderly Shutdown to Mitigate Customer Impact Resulting from Labour Disruption

August 24, 2024 – CN & CPKC | Awaiting the Federal Court of Appeal

After a work stoppage of a few days, which began on August 22 at 10:01 PM, employees of CN and CPKC were required to resume their daily operations following the CCRI’s decision allowing Minister MacKinnon to impose mandatory arbitration. However, the Teamsters took the decision to the Federal Court of Appeal.
Press Release | Rail Workers Ordered Back to Work
Article | Furieux, des cheminots manifesteront devant Trudeau et ses donateurs libéraux mardi (in French)

August 23, 2024 – CN & CPKC | WILL RESUME OPERATIONS SOON

Canadian National (CN) and Canadian Pacific Kansas City (CPKC) railway companies will soon resume operations after their work stoppage, which began on August 22, 2024, at 12:01 a.m.
Press Release | News regarding the Canadian National (CN) and the Canadian Pacific Kansas City (CPKC) Dispute

To follow the negotiations, please visit CBC’s direct coverage online (in French)

For an overview of the conflict’s overall repercussions, if it had not been stopped by the government, see La Presse (in French)

August 22, 2024 – CN & CPKC | WORK STOPPAGE CONFIRMED

CN and CPKC started their work stoppage today at 12:01 a.m.
Press Release |  CN and CPKC Begin Lockout 

Export Group sent a press relase. The association evaluates that his situation is likely to create logistical and transportation issues throughout the conflict, with repercussions that could extend long after it ends. The Export Group is committed to keeping its members and the industry informed through press releases and on its LinkedIn. According to the Export Group, agro-food exporting companies will initially face the consequences of transporting inputs in their various daily operations. In addition, a return to normalcy could take numerous weeks due to the prolonged disruptions caused by the work stoppage.
Press Release

Two major partners of the Export Group, the UPA and the CTAQ, have issued an open letter in the newspaper La Presse.
(In French) Open Letter | Des impacts majeurs pour le secteur agroalimentaire

August 19th, 2024 | CN & CPKC

The Teamsters Canada Rail Conference has submitted a 72-hour strike notice to CPKC. Unless a last-minute agreement is reached, a work stoppage is scheduled to begin at 12:01 AM on Thursday, August 22.
Press Release: Teamsters Serve Strike Notice to CPKC

The Teamsters Canada Rail Conference received a formal 72-hour lockout notice from CN on August 18, 2024. Unless a last-minute agreement is reached, the work stoppage will start at 12:01 AM on Thursday, August 22.
Press Release: Teamsters Receive Lockout Notice from CN

Possible Impact of the Work Stoppage on the Agrifood Industry

Although the Canadian Industrial Relations Board deems that a work stoppage would not represent a “serious danger” to public health or safety, it still raises concerns about food security, fuel supply, and water treatment. The situation is expected to increase delivery delays, slowing down operations for many businesses, particularly in the agrifood sector. Unfortunately, alternatives to rail transport are limited, as a truck carries only one-third of the capacity of a rail car.

Consumers will likely see a rise in the cost of everyday goods such as food. Furthermore, such a conflict “would paralyze the Quebec and Canadian economies,” according to Véronique Proulx, CEO of the Quebec Manufacturers and Exporters Federation, as reported by La Presse.

Additionally, “producers may have to absorb some of these extra costs, especially when price increases in food are hard for consumers to bear,” noted Simon Baillargeon in La Presse. The ex-officio president of the Groupe Export agroalimentaire also voices concerns about the conflict, particularly with the harvest season approaching.

Groupe Export will keep its members informed about this potential third general strike since 1950.

References (in French)
Transport Routier | Grève des chemins de fer possible à partir du 22 août
La Presse | Branle-bas de combat pour les PME québécoises
Les Affaires | CN et CPKC: une grève qui pourrait tout changer

August 14th, 2024 – CN & CPKC

CN & CPKC: Certain delivery disruptions are anticipated due to the lockout scheduled for next week.

(article in French) Le CN et le CPKC commencent à interrompre leurs livraisons en prévision d’une grève | Radio-Canada

July 4th, 2024 – CBSA

Tentative Agreement Ratified: Union members of the Canada Border Services Agency (CBSA) have ratified the tentative agreement by a margin of 91%

June 11th, 2024 – CBSA

Strike Averted: A tentative agreement has been reached between the CBSA employees and the Treasury Board.

https://psacunion.ca/tentative-agreement-reached-more-9000-workers?_ga=2.201162286.1436086429.1723639697-2003820486.1723639697

June 7th, 2024 – CBSA

PM – Strike measures by Canada Border Services Agency (CBSA) employees are currently suspended as mediation continues between the two parties.

(article in French) https://www.lapresse.ca/actualites/2024-06-07/services-frontaliers/les-mesures-de-greve-sont-suspendues.php

AM – No agreement has yet been reached despite the two parties being in mediation since Monday. The 9,300 CBSA workers will go on legal strike at 4 p.m. today if no agreement is reached between the union and the Treasury Board of Canada by then.

Important: Border agents are considered essential workers and are not permitted to strike. Nevertheless, we can expect potential delays.

(article in French) https://ici.radio-canada.ca/nouvelle/2078623/conflit-travail-agence-services-frontaliers-canada

June 6th, 2024 – CN & CPKC

The threat of a strike at CN and CP is still looming. Here are some interesting articles that show the impact a strike by both rail lines would have (articles in French)

• https://www.lesaffaires.com/secteurs/manufacturier/plus-de-100-m-de-biens-bloques-par-jour-en-cas-de-greve-au-cn/650311
• https://www.lapresse.ca/affaires/2024-06-04/quebec/les-manufacturiers-redoutent-une-greve-au-cn-et-au-cpkc.php
• https://cirb-ccri.gc.ca/fr/maintien-activites-au-cn-cpkc

For more informations on the negociations (articles in French)

• https://www.cn.ca/fr/medias/negociations
• https://www.cpkcr.com/fr/medias/Negociations-CFTC

June 5th, 2024 – CBSA

The CBSA has not yet initiated a strike, but the government has issued a statement:

👉 https://www.canada.ca/en/treasury-board-secretariat/news/2024/06/government-responds-to-psac-announcement-of-possible-strike-action-at-our-borders-starting-friday.html

L’article UPDATES | LOGISTICS & TRANSPORT STRIKES est apparu en premier sur Groupe Export Agroalimentaire.

The exponential growth of online commerce, driven by giants like Amazon, has raised customer expectations for delivery speed, demanding one- to two-day delivery windows. Last mile delivery accounts for 30% to 60% of the total delivery cost, subject to expensive constraints such as traffic, roadworks, and address errors. This phase can impact efficiency, costs, customer experience, and the company’s reputation.

To optimize this stage, solutions such as internal logistical planning, ongoing training, the use of technologies like artificial intelligence, fleet electrification, streamlining of flows, establishing strategic drop-off points, and in-store pickup are recommended. Catherine Richard, Logistics and Transport Director, has written an article on this topic in L’actualité ALIMENTAIRE (in French only).

Companies must remain agile and adapt to changes by collaborating with distribution and transport partners. The Novia platform is evolving to Novia 2.0 with enhanced features to meet the changing market needs. For more information on the solutions offered by Novia 2.0, please contact the Logistics and Transport department of Group Export at transportge@groupexport.ca.

L’article The rise of online commerce is changing consumer behavior  est apparu en premier sur Groupe Export Agroalimentaire.

Its objective? To ensure the safety of the food chain.

The FSVP includes many nuances and specificities on which we will try to shed light. The Group Export would like to thank Linda Labrosse, customs specialist, for her valuable advice.

The American customer or the foreign supplier: who is targeted?

First, it is important to distinguish between the non-resident record importer, who is responsible for customs clearance, and the FSVP importer, who is responsible for this program.

Indeed, Customs allows a foreign entity to become a record importer. However, under the FSVP program, FDA does not allow this same foreign entity to become an FSVP importer.

In summary, the U.S. customer must vouch for the products it imports. The customer must keep a record of its suppliers and each product and ensure that the products meet U.S. food safety and security standards.

Different management of the FSVP depending on the export situation

There are several situations in which a company may ship food products to the U.S. and, depending on the situation, the FSVP program does not always apply in the same way.

A sale made in the United States

When a Quebec company makes a sale in the United States, the American customer who will become the owner of the merchandise must take the responsibility of becoming the FSVP importer.

Even if the U.S. customer requests it, the Quebec company cannot become the importer in this scenario. If the U.S. customer refuses to be identified as the FSVP importer, the shipment will not be accepted by Customs and the FDA.

Some exporters believe that they can mandate a U.S. agent to become the FSVP importer for their customers, but this is not allowed when the merchandise is sold.

A trade show with samples sent

The U.S. agent can however be mandated as an FSVP importer when the exported merchandise is not sold, as is the case when participating in a trade show for example.

This U.S. agent will then be identified as the FSVP importer on the customs invoice. Note that annual and shipping fees are payable to the agent representing the company.

The same principle applies to the shipment of samples, unless they total less than US$800.

A shipment of less than US$800 – Section 321

Finally, it is important to know that the FSVP does not apply if the value of the goods is less than US$800. In this case, the exporter can enter SECTION 321 on his customs invoice, whether the goods are sold or not. The FSVP is exempt from this procedure.

Please note: Section 321 applies to one shipment per day, per customer, and declared at its fair value. It does not apply to food products under US quota.

FSVP exempted products

In addition, since they are subject to stricter standards by their nature, some products are exempted, namely : 

• fish and seafood that meet Hazard Analysis Critical Control Point (HACCP) standards
• juices and ingredients that meet HACCP standards
• alcoholic beverages;
• United States Department of Agriculture (USDA) meat and poultry products;
• Low acid canned goods;
• food sent for research or evaluation, or for personal consumption, or transshipped, or that will be processed for export or returned U.S. products without having received added value abroad.

In practical terms, how do we comply with the FSVP?

In the case of regular sales, the exporter must contact its U.S. customers and obtain a written consent that the customer agrees to be identified as an FSVP importer and, in return, that the exporter ensures that its products meet U.S. standards.

For trade shows, the exhibitor must find an FSVP agent who will be responsible for the merchandise imported into the U.S. for the show.

This simplified procedure applies to products of Canadian origin. In this case, the following information must be added to the commercial invoice: the name of the importing company, a contact name, email, phone number and Data Universal Number System (DUNS).

If the products are manufactured elsewhere, the responsibility is increased and the written exchange of consent is not sufficient.

In case of uncertainty, it is always advisable to consult a specialized lawyer who can assist you.

L’article Logistics and Customs: The FSVP demystified est apparu en premier sur Groupe Export Agroalimentaire.

Managing risk and expectations

In any business relationship, a contract is essential. Exports are no exception, and every sales contract should ideally be negotiated under an Incoterm®, a standardized term that defines the rights and duties of buyers and sellers in a transaction. In short, an Incoterm® defines who pays for what, who assumes the risk, and when ownership is transferred. 

In a situation where goods are lost, for example, who assumes the loss? Does the seller return the product or does the buyer re-purchase it? These questions must be addressed in advance in order to clearly define the rules of the game and to avoid an avoidable disagreement. 

What impact does an Incoterm® have on the cost price, you may ask? If a company chooses an Incoterm® in which it takes the whole responsibility on a product, and this, until the final delivery to the customer, it must thus take into account the transport and brokerage costs, as well as the rights and taxes. It would therefore not be unreasonable for this company to establish a higher selling price. Conversely, if the buyer takes all the risks, under a different Incoterm®, he could expect a consequently lower price.

Land, air or sea transport: what to choose?

The means of transportation selected can also have a significant impact on the selling price. The choice must be made according to various criteria, notably the nature of the product, its life span and the destination.

Naturally, the longer the transit time, the less expensive it is. Let’s take the concrete example of a shipment from Quebec to Florida. Some might be tempted to choose ground shipping. However, air transport could be optimal for a product with a short shelf life or for an emergency delivery, even if it is more expensive. Indeed, if it avoids losses or late penalty fees charged by a customer, the expense may be worth it to avoid melting the profit margin.

Once the proper means of transportation has been selected, it is important to remember that the packaging must be designed to accommodate it. For example, a box filled to capacity is a wise choice for air freight, since airlines base their pricing on volume weight or actual weight, whichever is greater. To avoid paying for empty space, it is therefore important that the packaging be very well adapted to its contents. This aspect has less impact in the case of road transport, for example, where products are invoiced by the pallet, by the linear foot or according to the product category (product class). Without neglecting the optimization of packaging, it is important to focus on the best choice for a given situation.

What about getting through customs?

The inscriptions that must be found on the packaging are also very important. Indeed, depending on the country of destination, it is essential to adapt both its labeling and its marking; two very different aspects. If the labeling refers to the table of nutritional values, the list of ingredients and tutti quanti, the marking refers rather to the country of origin of the products. The requirements concerning the country of origin, as well as all other customs formalities, vary greatly depending on the country of destination. Hence the importance of associating with qualified partners with proven expertise in their respective fields. A customs broker, a freight forwarder and a customs consultant are all allies that it pays to have around. Their contribution could be invaluable and the return on investment will certainly be worth its weight in gold.

L’article Logistics and Transportation: Choosing the right route from point A to point B est apparu en premier sur Groupe Export Agroalimentaire.

Conquering international markets can be a confusing adventure. Laws and regulations vary from one country to another, and the economic risks of not knowing what to do are real.

The vast majority of Canadian agri-food exports are destined for the United States. For over 25 years, Canada, the U.S. and Mexico have been linked by a highly integrated economic agreement that facilitates this trade. Although Canada and the U.S. have the largest bilateral trade relationship in the world, exports to the U.S. are highly regulated.

Even before you negotiate your first contract and prepare to ship your first sample, all of the following steps should be completed.

Obtaining or activating a business number for an import-export account

Simple but important step. 

To export a product, you must first obtain a Business Number (BN) for an import/export (RM) account from the Canada Revenue Agency. This simple process usually takes a few minutes and is free of charge.

If you already have your BN, you must still ensure that the RM account identifier is added to your number before you begin any export activity. If not, you will need to apply to the Agency for one.

The BN is also required for all export declarations (B13). This form is not usually required for exporting to the U.S., except for prohibited or controlled goods.

   Online Service

• Business Registration Online
  Canada Revenue Agency

   Tips and Tools

• Do you need a Business Number or a program account?
  Canada Revenue Agency

Find an agent to represent you with the FDA

Before you register with the FDA, you will need to find a U.S. resident agent to represent you before the FDA. This agent must be available at all times (24 hours a day, 7 days a week) in case the FDA has any questions. Most customs brokers offer this service for a fee. Once this step is completed, you will only need to identify this agent when you register with the FDA.

Registration of your company with the FDA and Prior Notice

The U.S. Health and Bioterrorism Risk Prevention and Management Act, issued in 2002, is designed to protect the American public from potential health risks related to the threat of terrorism. To this end, it devotes a chapter to food safety, establishes the FDA as the agency responsible for food regulation and provides for various control measures to protect the public against terrorist attacks or threats to the U.S. food supply and other food-related emergencies.

In implementing some of the provisions of the U.S. Bioterrorism Act, FDA has implemented regulations that require:

• agri-food establishments are registered with FDA and that
• FDA receives advance notice of imported food shipments (Prior notice)

Prior to each export you will be required to complete and provide a Prior Notice of Food Importation to the Food and Drug Administration, commonly known as a Prior Notice. This notice must be completed BEFORE the carrier loads your goods.

There are two ways to complete and send a Prior Notice to the FDA. Either you mandate your customs broker to do it for a fee, or you send it yourself, free of charge, online, via the Prior Notice System Interface (PNSI).

This regulation went into effect on December 12, 2003 and applies to both sample shipments and shipments resulting from a sale.

https://www.fda.gov/food/registration-food-facilities-and-other-submissions/online-registration-food-facilities

FSVP

The FSVP program is part of the Food Safety Modernization Act (FSMA) signed in 2011 and is a major reform. This program is administered by the FDA (Food & Drug Administration) and concerns the importation of agri-food products into the US. The FSVP was implemented to ensure the safety of the food chain for both humans and animals.

What is the FSVP? Basically, the American customer must vouch for the products they import. They must keep records of their suppliers and each product and ensure that the products meet U.S. food safety and security standards.

To do so, the exporter must communicate with his American customers and sign a letter of consent in which the customer accepts to be identified as an FSVP importer and in return, the exporter declares that his products comply with American standards.

Please note! This simplified procedure applies to products of Canadian origin. If the products are manufactured elsewhere, the responsibility is increased and the written exchange of consent is not sufficient. The complete procedure will have to be put in place

Very important, the following information must always be included on your commercial invoice: FSVP importer’s name, email, phone number and DUNS number.

By their nature, some products are exempted. Examples include: fish and seafood (HACCP); juices and ingredients (HACCP); alcoholic beverages; USDA meat and poultry; low acid canned goods; food sent for research or evaluation, or for personal consumption, or transshipped, or that will be processed for export, or U.S. products returning without having received any foreign value added.

https://www.fda.gov/Food/GuidanceRegulation/FSMA/ucm361902.htm

Labels that comply with American regulations

There is a common misconception that because we are on the same continent, we can send our Canadian packaging without having to comply with the labeling requirements of our American neighbors. As is the case in Canada, packaging must comply with the regulations of the country where the product is sold. Since these are different regulations, there are many differences between the requirements of the 2 countries, whether it be in the declaration of the Nutrition Facts table, the net quantity or the country of origin. These differences require companies wishing to export to the United States to have, in most cases, a package for each country.

Determination of your sh codes and the origin of your products

These are the rules of origin that establish if your products are eligible for the Free Trade Agreement with the United States and Mexico (MEFTA). These are associated with HS codes, so in order to establish if your products are originating and therefore eligible for duty free treatment, you must first find the HS codes for all your products. To do this, you can consult the Canadian customs tariff or work with a customs consultant who will help you establish the tariffs for your products.

Canadian Customs Tariff : https://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/current-actuel-fra.html

Find a customs broker

Many U.S. customers do not want to have to deal with customs clearance of goods and will ask the exporter to clear the goods themselves and thus avoid the liability of customs clearance. In order to do this, the exporting company will have to find and mandate a U.S. customs broker to represent it before U.S. Customs. The exporter thus becomes the non-resident importer of record for the purposes of customs clearance and the detailed declaration of its own products.

Bonding

Important! In order to deal with U.S. Customs, you will need a bond, at a cost of approximately $500 per year, with a minimum of $50,000. The customs broker will charge this annual fee, but it must be understood that the bond is settled between the non-resident importer of record and U.S. Customs.

Even though trade with the United States is a “natural” trade because of its proximity and similar sanitary regulations, exports to our southern neighbors are highly regulated. Failure to comply could result in substantial monetary fines and could even result in your products being banned from entry. Good preparation and agreements with the right partners can save you all these headaches!

L’article The golden rules for exporting to the US est apparu en premier sur Groupe Export Agroalimentaire.