Importers and exporters urged to start planning now
Attention Business Editors
September 3, 2013
CHICAGO – There are a number of major trade regulation changes coming in 2014, unprecedented in both number and magnitude. These shifts affect every company that imports into, or exports from, Canada or the U.S., with some regulations requiring new licensing and others mandating significant software updates.
Livingston International is keeping abreast of these developments, the most noteworthy of which are the following.
Food Safety Modernization Act (U.S.): This policy requires companies to change registration processes for domestic and foreign facilities, as well as comply with added certifications for food safety. Food importers will need to contend with added food safety certifications because there will be more rigid requirements to identify their foreign suppliers.
Canadian Food Inspection Agency (CFIA) Inspection Modernization Program (Canada): The CFIA is developing a more comprehensive inspection approach across all imported and domestic food commodities – for both interprovincial and international trade. All regulated companies will need to obtain an Imported Food Sector Licence, and the CFIA will conduct more inspections and enforcement for non-compliance. In addition, the types of regulated commodities are expanding. While currently only importers of meat, fish, dairy and eggs are regulated, the new program regulates all other food commodities, including coffee, baked goods, spices, infant formula, snack foods, meal replacements and others.
Single-Window Initiative (U.S., Mexico and Canada): This initiative applies to any goods coming into or leaving the U.S. It requires shippers to interact with approximately 40 different partner government agencies through a single web-based interface system. Companies must transition from a paper-based process to a digital one to meet the initiative’s goal of increasing real-time tracking and visibility of shipments. It begins rolling out in 2014, and when it is completely implemented, shippers will know the status of their shipments from the partner government agencies more quickly and benefit from decreased wait time and exam costs.
e-Manifest (Canada): All shipments into Canada must be declared electronically before arrival. This requires new software and IT upgrades to ensure compatibility with the new system; otherwise, companies risk an additional duty fee at the border.
“Although these updates will make the customs process smoother and more up-to-date, it is unprecedented to have this many major trade regulation changes implemented at the same time,” says Matt Goodman, vice president of global trade management, with Livingston International. “To manage this level of change, investing more time now is necessary for businesses to meet these new requirements that take effect next year. Managing trade compliance is undeniably an investment, but it is offset by reducing the risk of costly audits and fines. Livingston’s global trade expertise uniquely positions us to help companies successfully navigate through these changes.”
These major regulatory changes will affect small and medium-sized businesses more, because they rarely have trade compliance expertise in-house. Trade professionals at Livingston are preparing for the forthcoming changes by educating importers and exporters and providing access to:
Trusted Trader Program: A voluntary certification program is offered through Customs to help educate companies and customs brokers on the new regulatory changes. Livingston can help importers navigate the program’s stringent guidelines to be successfully approved for certification, which leads to faster and smoother border crossings.
Food and Drug Administration compliance team: Livingston’s in-house experts continuously research developments in the Food Safety Modernization Act and CFIA’s inspection modernization program and can assist as new regulations are implemented.
In-house technology team: To apply critical software updates, Livingston offers an in-house technology team to ensure up-to-date compatibility with customs’ systems upgrades. Livingston also recently announced the release of TradeSphere®, software designed to automate trade compliance and reduce human error.
Additional free trade agreement coverage: Customs is making it easier for importers to manage their shipments, offering companies access to more free trade agreements (FTAs) to save on duties. Livingston experts can help identify which FTAs companies can take advantage of, from NAFTA to the emerging TransPacific FTA.
To find out more about the 2014 regulation changes as well as solutions for importers and exporters, visit www.livingstonintl.com.
About Livingston
North America’s number one company focused on customs brokerage and trade compliance, Livingston International also offers consulting and global trade management services as well as international freight forwarding across North America and around the globe. Headquartered in Toronto, Canada, Livingston employs approximately 3,200 employees at over 125 key border points, sea ports, airports and other strategic locations across North America as well as in Europe and Asia. www.livingstonintl.com
For more information, contact:
Dawneen MacKenzie Laura Kaster
Livingston International PCI
1-800-387-7582 ext. 3109 312-558-1770 ext. 139
dmackenzie@livingstonintl.com lkaster@pcipr.com