Customs Reporter.

A Bulletin on Customs and International Trade from Russell A. Farrow Limited - Summer 1999.


We have published various articles on AMPS in the past several issues of our Customs Reporter and on our website. Regular readers will know that
AMPS is the new Administrative Monetary Penalty System. AMPS
legislation is expected to be passed by parliament in time for the scheduled October implementation date.
In a surprise move, Minister Martin Cauchon announced recently that there is to be a grace

period to the end of March 2002. At press time, no specific details of how the grace period will be administered have been disclosed. However, due to the recent terrorist activities, border inspections have increased resulting in a dramatic increase in the number of seizures. If you have not already done so, we urge you to implement practices and procedures now to determine and monitor your level of Customs compliance. AMPS will result in a significant monetary impact for those importers who have failed to ensure a high level of compliance in all aspects of Customs issues, including NAFTA.
Don't allow the grace period to lull you into a false sense of security.
It is time to start the process of obtaining renewed blanket NAFTA
Certificates of Origin. The law requires that you have a current and valid Certificate in your possession in order for the preferential rates
of duty to be claimed. The penalty for "Failure to have a NAFTA Certificate of Origin in your possession when claiming NAFTA
preferential tariff treatment" is $1000 for the first infraction, $5000 for the second, $10,000 for the third, and $25,000 for the fourth and subsequent. As you can see, this is serious business!
New and improved levels of collaboration between you, your suppliers, and Russell A. Farrow Limited will be essential in order for you to avoid exposure to such penalties.To protect you, we must become increasingly diligent in our requests for NAFTA Certificates and in our review of Certificates to ensure they are valid. AMPS requires that our interaction must be more intensive in the future. We will be writing to you soon to ensure that you have been fully informed of the potential impact of this legislation.

Please contact any of our offices if you have any questions or require
further information.
Further to our articles in the Summer 2000 and Spring 2001 issues, the European Union, in its efforts to prevent the spread of the pine
nematode, has advised that effective October 1, 2001 all coniferous wood packaging and pallets must be treated in accordance with EU import requirements.
In response to this initiative the Canadian Food Inspection Agency
(CFIA) has implemented the Canadian Wood Packaging Certification Program (CWPCP). The program is designed to certify Canadian wood packaging manufacturers that produce packaging that meets the EU requirements.Qualifying wood packaging material will be marked with
a certification stamp that identifies the treatment and certifying facility.
Wood packaging facilities interested in registering under the program must submit a CWPCP application form, which can be obtained from CFIA offices. The program is available to both manufacturers and recyclers of non-manufactured wood packaging materials.
EU regulations apply to all non-manufactured coniferous wood packaging material (e.g. pallets, containers, drums, crates, cases, boxes of pine, spruce, Douglas fir, fir etc.) The only exception is Thuja spp. (cedar) originating from Canada, Japan, China and the U.S. The EU import requirements do
not apply to: manufactured wood (e.g. veneer, oriented strand board, particle board, plywood, etc.); or hardwood species (e.g.maple, ash, elm, etc); or non-wood material (e.g. plastic, metal,card-board, etc.). However, if packaging materials are made of combination of exempt and non-exempt materials then they must be certified.
The CFIA has published the EU requirements as follows. The subject
material must be heat treated or kiln dried to a minimum core
temperature of 56º C for at least 30 minutes in a certified facility; or
pressure (impregnated) treated with an approved chemical in a certified
facility; or fumigated with an approved chemical by a certified facility. All
treated wood, regardless of the process, must display an approved marking enabling identification of where and by whom the treatment has been carried out.
Canadian wood packaging that is intended for shipment to the EU that does not comply may be "Refused entry into the EU; Destroyed; Treated at the port of entry, or; Detained for extensive periods while the consignment is under quarantine."
The regulations also apply to material that has been trans-shipped through another country.

For additional information and a list of approved facilities please refer to the CFIA web site:
http://www.inspection.gc.ca/
english/plaveg/for/woode.
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