Trade Groups Concerned About Canadian Customs Changes, DST, Chemical Regs

Ten trade groups, including the U.S. Chamber of Commerce, the National Foreign Trade Council, the Express Association of America, the American Chemistry Council and the Coalition of Services Industries, are asking President Joe Biden to bring up businesses' concerns about changes to customs procedures, chemical regulations and digital services taxes.

They sent a letter March 20, calling these proposals problematic, and saying they "could significantly limit the ability of U.S. companies to export their goods and services and fairly compete in the Canadian market."

The groups said that the Canada Border Services Agency Assessment and Revenue Management project, or CARM, is expected to go into effect in October, "require express carriers to take on new obligations," and leave carriers liable for additional taxes, duties or other costs for up to four years after importation.

The groups say these may conflict with Canada's trade facilitation obligations in USMCA. "The United States should encourage CBSA to extend the rollout and continue working with various stakeholders, especially U.S. small- and medium-sized (SME) traders, with an eye toward truly simplifying customs procedures," they wrote.

The letter also complained that the strict approach reflected in the new Canadian regulations on a type of flame-retardant (DBDPE) "is not supported by the available science and would significantly disrupt U.S.-Canadian trade and impair supply chain resiliency in several critical sectors."

They also said Biden should remind his Canadian counterparts that they endorsed a pause on digital services taxes while negotiations on international taxation of digital services is underway.