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Official
Announcement
canadaplus.com
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from
Richard J. Farrow –
President & C.E.O.
I
am pleased
to announce the official launch of canadaplus.com, the newest member
of the Farrow Group of companies. Over the past year we have focused
on repositioning our Parcel Logistics division into a new entity to
better serve the many new business opportunities created by the growth
of internet consumer purchasing. We have seen continuing growth in the
Parcel Logistics business and have been successful in securing many
new clients, such as eToys, Harrods on Line, 1-800 Party Shop, Shoes
for Crews, Professional Uniforms, and Norton (Saint Gobian) to name
a few. We also entered into an agreement to be the service provider
of a new “portal” company in Canada known as Borderfree.com. In moving
ahead with our E.Business plan we have invested in new technology for
our Windsor facility and the next few months will see the installation
of automated conveyor systems, cubing, scanning and weighing equipment.
Also, to better serve our existing clients and in turn their western
Canadian consumers, we are about to announce the opening of our new
Western Gateway in
Continued
on page 2
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Customs
Compliance
Are
we compliant with the Rules and Regulations associated with the
importation of goods into Canada? Do we have a compliance verification
strategy? Do we understand what it means to be compliant and what
it could mean to be found non-compliant? These are some of the
questions you should be asking of yourselves as we approach the
final quarter of 2000. In 1999 the Canada Customs and Revenue
Agency reported that sixty percent of Canadian importers subjected
to Verification Audit, were found to be non-compliant. If you
export goods to the United States you also need to be asking similar
questions relative to your compliance with U.S. Customs requirements.
Information compiled by The Journal of Commerce under the caption
“It pays to be compliant,” included examples of the results of
non-compliance in the U.S.:
• Pentax Corp. agreed to pay a $20 million penalty for violating
import laws; • Daewoo Corp. admitted lying to Customs and altering
documents to avoid a steel dumping investigation, this resulted
in a $34 million penalty;
• a settlement of $14 million was reached with Recoton Corp.
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Customs Compliance is opening new employment opportunities in the
U.S. as companies begin hiring in response to the need for such expertise.
It follows that similar opportunities will develop in Canada, particularly
as the Administrative Monetary Penalty System (AMPS) makes its presence
felt next year. In Canada, similar stories are rare, but they do exist.
One of the largest cases to reach prominence in Canadian news was
Amway. However, the environment has changed and continues to evolve.
The Canadian and U.S. Customs Administrations have largely moved their
enforcement activities into your office. Retroactive assessments will
become more commonplace and significant costs could result. In consultations
with clients we have encountered many examples of non-compliance.
Often it has been a matter of expedience, “there is no duty so why
worry?” Resources previously assigned to comparing invoices and receiving
reports against customs entries have been reassigned or downsized
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out
of existence. On occasion however a blatant disregard for the law
is also encountered. Decisions are made to manipulate the value for
duty or tariff classification and falsify documents. Sometimes such
decisions are made by “well meaning” employees while at other times
these are management decisions. The Multi Program Verification Audit
will uncover examples of non-compliance. The AMPS program will penalize
such activities. A record of non- compliance will negatively impact
your business beyond the penalty regime. You may be disqualified from
new initiatives to facilitate the movement of goods. Taking steps
now to ensure compliance will reduce your liability and may result
in reduced costs through improved efficiencies. Customs compliance
is your responsibility and Customs audit teams are hard at work. If
you have not yet been audited you can anticipate this activity within
the next three years. Are you compliant or non- compliant? We can
help you assess your current position and recommend actions to improve
your position. Please call us — we can help. |
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