Event Description: Canada Border Services Agency (CBSA) and Customs and Border Protection (CBP) administer hundreds of Government Acts in support of the health, safety and security in Canada and the United States. Being compliant with these regulations is essential to ensure a cost-effective and seamless flow of cross border trade. It’s paramount to design Standard Operating Procedures & Key Performance Indicators with your supply chain partners to eliminate financial penalties and protect your brand image. This webinar will provide an overview to current & emerging processes along with best practice examples in order to stimulate identifying ideas that may create compliance enhancements. Presenter - Al Dewar: Al is a Certified Trade Compliance Specialist and holds a Professional Customs Broker designation. Al has been at GHY since 1982 in a variety of roles within the operation, culminating in his present role as VP, Client Services and Regulatory Affairs. Al currently serves as a Board member on the Canadian Society of Customs Brokers as 2nd Vice Chair and is actively involved in committees.

1. GHY International
• Our Vision
Is to be a leader in providing innovative, tailor-made
solutions to North American importers and exporters.
• Our Mission
We are dedicated to providing the highest levels of
personalized professional international trade services to
our clients, whose needs shape all our endeavors.

2. GHY Values: C A R E
• Clients are the reason we exist
• Associates matter
• Relentless pursuit of improvement
• Excellence in all we do

3. About the Presenter
AL DEWAR
Al is a Certified Trade Compliance Specialist and holds a
Professional Customs Broker designation. He has been at GHY
since 1982 in a variety of roles within the operation,
culminating in his present role as VP, Client Services and
Regulatory Affairs. Furthermore, he currently serves as a
Board member on the Canadian Society of Customs Brokers as
2nd Vice Chair and is actively involved in committees.

4. Your Broker Relationship
&
THE REGULATORY LANDSCAPE
December 2, 2015
Presented by Alan Dewar

5. GHY U – 2015 Webinars
• Importing into USA (the Basics) – March 11
• Importing into CDA (the Basics) – June 17
• Tools of the Trade – September 16
• Our Relationship & Your Regulatory Landscape – December 2

6. Customs Role….
It’s not getting any easier
• Canada’s border spans > 5,000 miles
• Customs is the ‘front line and often last line’ of defense
responsible for ‘health, safety and security of Canada’
• Responsible for enforcement and monitoring of more than 90
Acts of Parliament (i.e. Safe Food for Canadians, Immigration,
CFIA, Transport Canada, etc.)
• Institutional knowledge change / challenge

7. Webinar Areas of Focus /
Obligations
Government Requirements (by Importer)
• Pre Release – prior to arrival at border
• Post Accounting –
Importer Opportunities
• Making Trade a Competitive Advantage
• Enhanced Reporting, Record-keeping (leveraging tools in
the toolkit)

8. Importer = RESPONSIBILITY
• IOR is ultimately responsible for declarations made on their
behalf
– Advanced Filing (ATD) required for all modes of transport prior to
arrival at border (7/24/365)
• Declarations can span more than 90 Acts (CFIA, Transport
Canada, Marking, etc.)
• Responsibility doesn’t end after import

9. ATD / ACI – Advanced Reporting

10. Advanced Data – Failure or Inaccurate
Not filed….
• Carriers won’t move goods until Filing Accepted by CBSA
• Rail - > $1,000 tariff (addt’l handling, etc.)
Inaccurate…
• CBSA issue fines for missing data (C360 - $2,000)
Example: Only 1 page of a 2 page declaration available at
time of ‘risking’

11. Facilitating Trade Data Choices
Self Clearance
Service Provider Solution
In 2 hours – 7/24/365

12. Broker’s Role
• Most importers use services of broker recognizing value
across all modes, changing regulatory landscape, and
7/24/365 demands
• Trade facilitation on behalf of IOR in accordance with
GAA & other agreed upon terms & processes
– Is your broker familiar with KPI’s that you value?
– Does the broker integrate your unique needs into their
resources (human/technological)

13. Brokers Business Design -
Meeting the Needs of the IOR
• 7/24/365 trade facilitation across all modes of transport
• Personal relationship (single point of contact)
• Purchase Order accuracy (facilitating accounting linkages,
coding, costing, etc.)
• Product familiarity and applying the most advantageous tariff,
value and origin

14. Brokers Business Design -
Meeting the Needs of the IOR
• Electronic access to WIP, books & records, trade & logistics
reporting, etc.
• Sharing ideas that can save IOR $
• Automated reports or events triggered to IOR or relevant
supply chain partners
• Measurement tools to support unique IOR SOP
• Specific education and awareness of current or future
programs providing competitive edge

15. Brokers – Yes, We Can Do That…
In Partnership & TEAMWORK with YOU!

16. It’s a LOT more than Paperwork

17. Breadth of Responsibility
Duty of CARE….
• Multiple parties in the supply chain
• Global sourcing/market – products in constant change
(fashion, function, form)

18. Interpretation Differences
• Tariff – 6 Digit? -- Country, individual, etc.
• Create both opportunity & risk

19. No Such Thing as Simple
• IKEA – Chair Example • Loblaws – Halloween
Costumes

20. Facilitating Trade (7/24)
• Without a frame of reference how would you classify a
product coming imported 1am Sunday Description = Mouse?
• Door #1, #2 Example (computer, animal)

21. Same Essential Character but…..
• Changing an ingredient may retain the essential character of
the good but result in entirely different tariff classification
• Favorable (all sorts - licorice)
• Unfavorable (corn dogs)

22. Understanding Risks – post Accounting
Business / Relational / 3rd Party Liability
• Customs systematically increasing audits and enforcement actions
– Undetected errors result in retroactive costs that impact profitability
(fine, penalty, administration, etc.)
• IOR own ‘compliance and financial risks’ associated w/declaration
– In today’s day of social networking your ‘Brand’ & reputation may
also be at risk

23. Other Potential Impacts
• Border crossing delays
• Supply chain disruptions
• Financial penalties
• FTA loss
• Increased enforcements (exam / audit)
• Increased COGS / reduced profitability
• Damage to brand reputation

24. Broker = PARTNER
• Partnership requires complete transparency and sharing of
information as early as possible
• Progressive traders in certain sectors will incorporate tariff
specialists in product design ‘known as tariff engineering’
• If SKU data is shared from source linkages to broker business
systems can often be enabled benefiting proper COGS and
audit trail

25. Best Practices / Strategic Approach
• Regular review of trade volumetric (at least annual w/services
provider)
• Identify supply chain concerns (i.e. document integrity,
incomplete descriptions, etc.) and share understanding or action
plan
• Implement supplier/supply chain indemnification clauses (costs
of non-conformance)
• Create a Trade Compliance Manual including all past audits &
trade decisions. This document will be invaluable at time of
resource change or audit

26. QUESTIONS?
If you require further information, please contact any of the
following, they will be happy to assist!
• Any one of your GHY Team Members
• Your Account Manager
• Al Dewar: dewar@ghy.com Phone: 204-947-6700 ext. 215