Hensall Global Logistics - Client Advisories

Monday, September 6, 2010

Client Advisories
Important Information For Hensall Global Logistics Customers

Shipments from People's Republic of China which contain Wood Packaging Material
2009-04-23

Priority:

Urgent

Please find following the "Newly Revised" Wood Packing Material Rules for cargo originating from The People's Republic of China destined to Canada. There will be a 3 month transition period starting June 1 through September 2009, which phases out the acceptance of Phytosanitary Certificates. The certificates will no longer be accepted by the Canadian government due to the repeated occurrences of counterfeit certificates.

I) Wood Packaging Materials Policy (WPM):

• CBSA (Canada Border Services Agency) and CFIA (Canadian Food Inspection Agency) announced a change to the WPM Policy specifically in regard to shipments imported from People's Republic of China.

• The IPPC mark (International Plant Protection Convention) will be the only acceptable treatment certification.

• Phytosanitary Certificates from PRC will no longer be accepted.

• June 1, 2009 starts the 3 month phase-in transition dates – Full enforcement September 1, 2009

> Reminder:
WPM definition: Hardwood and softwood packaging other than that comprised wholly of wood-based products such as plywood, particle board, oriented strand board, veneer, wood wool, etc., which has been created using glue, heat, and pressure or a combination thereof used in supporting, protecting or carrying a commodity (includes dunnage)."

Examples of WPM: Includes but not limited to pallets, skids, pallet collars, containers, cratings/crates, boxes, cases, bins, reels, drums, load boards, dunnage. Wood packaging made of exempt materials but combined with solid wood components must still be treated and marked.

II) CBSA posting:
Quote "New Canadian requirements for wood packaging material from China

1. The purpose of this customs notice is to inform importers about a change to the Canadian Food Inspection Agency's (CFIA) wood packaging policy. Starting September 1, 2009, phytosanitary certificates from China for wood packaging material will no longer be accepted in Canada due to high rates of non-compliance from China. A valid International Plant Protection Convention (IPPC) mark will be the only accepted treatment certification method.

2. Beginning June 1, 2009, importers will be granted a three-month grace period whereby wood packaging material accompanied by a Chinese phytosanitary certificate in lieu of an IPPC mark will be allowed to enter Canada, subject to a verification of the certificate's authenticity by the CFIA and China's General Administration of Quality Supervision, Inspection and Quarantine.

3. The CFIA has advised China's General Administration of Quality Supervision, Inspection and Quarantine of the phased-in approach that will be used to implement this policy change:

a. Phase I: The CFIA is now notifying Canadian importers that as of September 1, 2009, a valid IPPC mark is the only accepted treatment certification method for wood packaging material from China.

b. Phase II: Starting June 1 and until September 1, 2009, phytosanitary certificates that are presented in lieu of valid IPPC marks will be verified.

c. Phase III: Starting September 1, 2009, the new policy change will be fully enforced. The Canada Border Services Agency will refuse the entry of any wood packaging material certified with a Chinese phytosanitary certificate in lieu of a valid IPPC mark." End Quote

III) Non-compliance
Shipments found by CBSA/ CFIA to be non-compliant will either be directed as return to origin, or will be destroyed. Any charges incurred will be for the customer's account.

IV) Special Note:
As noted on CFIA's website shipments from Hong Kong, Macau and Taiwan will not be affected. http://www.inspection.gc.ca/english/plaveg/for/cwpc/revchine.shtml

V) Communications
Please alert customers (PRC Exporters and Canadian Importers) of new requirements to the WPM Rule for compliance.

Postings:
• CBSA : http://www.cbsa-asfc.gc.ca/publications/cn-ad/cn09-002-eng.html
• CFIA : http://www.inspection.gc.ca/english/plaveg/for/cwpc/revchine.shtml
• http://www.kline.com/KAMCompliance/Compliance_Listing_Import_Regulations.asp
• Posted to KAMNET for internal users under: Import Policies and Procedures

If you have any questions, please feel free to contact us.

Sincerely,

Hensall Global Logistics

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