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Customs Reporter.

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

Farrow International Can Move It All!

When asked the question so, what have you done lately? Geoff Blocha, Station Supervisor for Farrow International in Toronto, can simply reply plenty!
Geoff has been involved in some interesting moves recently. First, there were the GO Trains. The initial movement of the GO Trains was from Toronto to Fort Worth, Texas. These locomotives and bi-level passenger cars had a fascinating journey as they traversed a multitude of rail lines to reach their destination. This included U.S. Customs clearance which was handled by our office in Detroit. With the success of this shipment a number of subsequent moves have been orchestrated.
Then there was the importation of an Automotive Production Line from Germany that was extremely time crane.jpg (9900 bytes)sensitive. Within 72 hours of getting the call, Geoff had provided our client with a rate, a confirmed booking on board the vessel and had coordinated the manpower and equipment to move the Line to Canada. This included the securing of two 40' open top containers and a crane to load the goods.
Geoff must have been looking for a real undertaking when he set up the movement of some "dimensionally challenged" equipment from Germany to Windsor. In order to expedite the freight, a barge had to be chartered from Hanau, Germany into Rotterdam where the shipment could be loaded on a ship to Canada. This meant moving the freight in the wee hours of the morning to avoid rush hour traffic (basically any traffic) in Frankfurt. The hurdles continued as once at the ship, a 40' Flat Rack had to be arranged. Before the freight's arrival in Canada, height restrictions had to be dealt with. The most efficient routing allowed a maximum height of 3.90 M and the freight was 3.92 M. In spite of all this the freight arrived undamaged and on time.

If you have a challenge for Farrow International, please call!
Toronto & Montreal
Station Supervisor Geoff Blocha (416) 620-5001
Edmonton & Vancouver
Station Supervisor Dave O'Connor (780) 423-5444
Calgary
Station Supervisor Colin McGowan (403) 735-0560

Welcome Dave!

We are pleased to announce the hiring of Dave McNeilly as Director of Sales. Dave joins us after having spent over 25 years in the Freight Forwarding and Customs industry. Dave will be adding additional Business Development Consultants to the Toronto area. This will provide an increased focus to the development of new markets and future growth opportunities. This initiative, along with others currently underway will re-shape Russell A. Farrow Limited and position the company for the future.
Royalties - Federal Court Establishes Guidelines

The subject of royalties, and when they are dutiable, has been an issue before tribunals and courts for several years. The decisions rendered by these bodies have not been consistent nor easy to understand. However, the Federal Court has recently rendered decisions providing some clear guidelines to follow. In determining if royalty payments are dutiable the Customs Act establishes the following conditions:
  • The payment must be a royalty or licence fee;
  • It must be paid in respect of the goods exported to Canada; and
  • It must be paid directly or indirectly, as a condition of the sale of the goods exported to Canada.
The "condition of sale" component has been the major issue of contention. Decisions rendered in the cases of Mattel Canada and Nike Canada Inc. note that royalty payments are a condition of the sale if

i)    it appears as such in the contract of sale between the vendor and the importer; and

ii)    if either the licensor because it owns or controls the vendor, or the vendor when it holds the trademark rights or copyrights, can prevent the importation of the goods by the purchaser or impede the ability of the purchaser to buy the goods because it failed to pay the royalties.
In other words, if non-payment of royalties is capable of jeopardizing the importation of the goods then the royalty payments are dutiable.
iso9002.gif (503 bytes)

Late in 1998, Russell A. Farrow Limited (RAF) launched its ISO 9002 certification initiative as part of RAFs ongoing commitment to our continuous improvement program. For this project RAF is following a multi-phase approach that is rolled out first at each of the regional facilities. The first phase will be the certification of the Ayr Regional Complex. The project is progressing well and we are looking forward to receiving certification of our first site by the fall.
The purpose of the ISO 9002 project is to increase client service satisfaction by strengthening our ability to provide consistent quality products and service. Building upon our existing continuous improvement initiatives, ISO 9002 certification will further assist RAF in generating even more value added service to our clients. By ensuring a culture of high service levels to our clients, we will be able to achieve our corporate mission to "contribute to the success and profitability of North American companies engaged in international trade." Our clients will gain increased confidence in RAF, as we become an ISO 9002 certified company.
According to the National Quality Institute of Canada, "Quality is when you are so satisfied with a product or service that you will go out of your way to recommend it to other people." We have dedicated our project to ensuring we continue to provide a service that exceeds that definition.
The ISO 9002 project is a major initiative for RAF, one that will allow us to continue to grow into the next millenium with our clients.

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