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GET INFORMED ON ADVANCE ELECTRONIC INFORMATION
Call it revolution or evolution, new U.S. CBP rules are changing the face of international trade

18 months after Congress passed the Trade Act of 2002 and more than a year after Customs and Border Protection (CBP) floated - then shelved - its highly controversial "strawman" trial balloon, Advance Electronic Cargo Information is now the law of the land. At the heart of the matter is CBP's focus on collecting advance cargo data to better target high-risk shipments before arrival and release at the border.

All cargo data must be submitted electronically, enabling CBP to sift though massive amounts of trade data using its Automated Targeting System (ATS), which in turn is supported by several hundred targeting personnel.

The transmittal timeframes set out for advance notification are based on the mode of transport and whether goods are imported or exported (see Table 1). The final rules came into effect on January 5, 2004, and the compliance date for ocean imports is scheduled for March 4, 2004. For other modes, Customs' level of readiness at any given port will influence the actual compliance date. Implementation is likely to be staggered across the U.S., based on when each port of entry is brought online under one of the approved data interchange systems.

Impact of Advance Cargo Reporting

Shippers and carriers have expressed concern about the impact of the new rules on their supply chains. Increased logistics costs and disruptions to lean manufacturing systems that rely on Just-in-Time inventory are among their chief concerns

New advance cargo reporting regulations cover all modes of transport, but aircargo is likely to be impacted the most.

"There's no doubt that advance notification is going to raise some operational challenges for importers and exporters alike," says Mike Scott, President & CEO, PBB Global Logistics. "For many, new supply chain strategies will be necessary to accommodate the earlier release of shipment data."

The impact of the new rules is closely related to the mode of transport involved. Whereas ocean freight is not particularly time-sensitive, air and truck transportation are critical to Just-in-Time operations and courier services. Furthermore, ocean shippers have had the "luxury" of a head start, having transmitted manifest data 24-hours prior to lading for over a year, under the Container Security Initiative (CSI).

The CSI experience led to a tangible increase in cost structure, leading to security surcharges of around $25 per bill of lading, and for some, a slightly longer supply chain cycle. Fortunately however, the logjams that skeptics feared did not materialize. Similarly, the impact on rail cargo is expected to be minor, since virtually all railroads are already filing electronically.

Effect on Trucking: The Jury is Out

Over 80% of the motor carrier industry consists of carriers with five or fewer trucks, which generally rely on less-sophisticated technology than the major trucking firms. This technology gap could impact cost structures, the nature of competition and carriers' level of readiness for the new rules, at least in the short term.

Shippers with Just-in-Time processes will be the most affected by the new rules. There is clearly an incentive for them to qualify for Free And Secure Trade (FAST) status, thereby reducing the advance notice requirement from 1 hour to 30 minutes before arrival.

CBP estimates that the trucking sector will actually save $78 million with fewer delays, reduced congestion and fuel savings, which if true, would benefit shippers positively in the long run. Many are skeptical of this claim, but irrespective of the issue of supply chain security, there is little doubt that technology and automation was where cross-border trade was heading anyway.

Air Cargo Faces the Greatest Challenge

Of all the modes, air cargo is probably the most inconvenienced by the new regulations, particularly in the courier segment. Even Customs acknowledges a significant increase in net cost of anywhere up to $2.2 billion. Much of this is a result of new investments and improvements to electronic filing systems, which were originally developed to file master bill information rather than individual shipment data. The "wheels up" notification deadline for cargo originating from the western hemisphere north of the Equator also opens a gap for delays and service degradations.

As a result of these factors, one could expect airfreight cost increases, and to some extent, diversion of some air cargo to trucking, particularly if recent logjams at major road ports of entry subside thanks to improved advance targeting by Customs.

Advance Preparation for Advance Reporting

For all modes, CBP says it will adopt a phased-in enforcement process. This transition period will help educate industry, with penalties only for egregious violations. Nevertheless, shippers should be taking action now to avoid disruptions later:

• Review your operations to ensure shipment data can be made available within the prescribed timeframe, but make a concentrated effort to exceed the rule. Your logistics service provider may require the data in advance of the CBP timelines to give them sufficient time to transmit the information to Customs.

• Consult with all your supply chain partners to ensure they are taking proactive measures to prepare for the advance notice framework.

• Consider increasing safety margins for any goods that are deemed critical to your operations, particularly when close to key enforcement dates when border delays may arise. This may require a second look at inventory strategies, especially if existing warehousing capacity is limited on either side of the border. Alternatively, allow yourself extra order time in the supply cycle to offset potential delays.

• Be vigilant and be prepared to act. If air cargo delays and cost increases do in fact materialize, consider using other modes of transport, such as expedited trucking.

• Look carefully at the costs and benefits of enrolling in supply chain security programs such as the U.S. Customs-Trade Partnership Against Terrorism (C-TPAT) and Canada's Partners in Protection (PIP). Your status in these voluntary programs will be considered by CBP in targeting incoming cargo for examination. Furthermore, participation in C-TPAT makes you eligible for the FAST release program in the U.S. (Canadian eligibility, however, is based on participation in the Customs Self-Assessment program). As FAST expands in scope and coverage along the border, this consideration becomes increasingly important.

  Advance notification is also coming into play in other jurisdictions as well. Most notably, Canada is in the process of implementing similar advance reporting rules for inbound cargo. Details can be found in the full version of this story, available online at www.pbb.com/whitepapers/.

  Advance notification is here to stay. There will certainly be initial challenges as CBP and other national Customs agencies ramp up enforcement. But there may be a silver lining in the long run, in addition to safer, more secure trade. Ultimately, the strong emphasis on electronic and online systems could pay dividends to the trading community through increased efficiency.

  FDA TO PHASE IN NEW IMPORT REGULATIONS
  Full enforcement starts August 12, but don't postpone compliance

  With sweeping new U.S. food import regulations now in effect, the Food & Drug Administration (FDA) recently outlined its compliance policy in a joint announcement with Customs and Border Protection (CBP). The policy centers around an eight-month long transition period, ending August 12, 2004, during which time the primary focus will be education rather than strict enforcement.

  The news was welcomed by agri-food shippers, particularly in regards to the new regulations on prior notice. According to the rule, cross-border food shipments must be reported to the FDA anywhere from two hours to eight hours before arrival at the U.S. border, depending on the mode of transport. For shippers, the requirement was by far the most daunting part of the FDA's changes.

  The potential consequences of non-compliance range from civil monetary penalties to refusal of shipments at the border.

  Typical violations include failure to submit a prior notice, providing inaccurate prior notice, and untimely submission of information. Any shipment originating from an unregistered facility is also subject to penalties.

  The FDA/CBP policy guide suggests that initially, the two agencies will rely considerably on educating shippers and carriers. During the transition period, the agencies will also conduct a number of industry-wide communication and education initiatives. Initially, first time offenses are likely to be addressed with a warning and a reminder of the rules. The recommended response, however, becomes progressively tougher at two key interval dates during the transition period, namely March 13 and May 13.

  One thing was made very clear though: importers are expected to make a "good faith" effort to comply immediately. Regardless of guidelines, enforcement officials are given explicit authority to "take different or additional actions if they believe particular circumstances warrant them."

  "It's a big mistake to use the transition period as an excuse for putting off compliance," says PBB's Jack Rafferty, Managing Director, Trade & Regulatory Services. "This is precisely the time to gear up and work out all your prior notice processes. Shippers should aim for 100% compliance, because the FDA rules have teeth, even during the transition period."

  Mr. Rafferty urged food facilities involved in the U.S. food supply to register immediately with the FDA, another requirement of the new framework. By law, foreign facilities also need to appoint a U.S. resident agent.

  Web Help: www.pbb.com/fda/ offers a comprehensive resource center for food exporters, including fact sheets, Q&A, a white paper, forms and helpful links to the FDA's registration Web site.

  COMPLIANCE GENERALLY GOOD IN THE FIRST YEAR OF AMPS ENFORCEMENT

  Canada's Administrative Monetary Penalty System (AMPS) has been in full effect for over a year. Although some 14,000 AMPS penalties were assessed in the 12 months after the October 7, 2002 enforcement date, it's just a small percentage of the approximately 11 million releases processed in a given year.

  This marks an improvement over the 20% non-compliance rate estimated during the initial grace period. It also suggests that Canada Border Services Agency officials have been exercising some discretion in assessing penalties during the first year. On the other hand, the full impact of AMPS is yet to be felt, pending results from compliance reviews that involve a post-AMPS audit period.

  Looking ahead, importers, exporters and carriers alike need to be increasingly careful in their efforts to comply. The incentive is certainly strong: AMPS are averaging over $500 per contravention and a stiff graduated penalty structure is in place - not to mention the threat of increased inspections at the border.

  

  3PL COMES OF AGE
  SMEs stand to benefit the most, so why are some slow to jump on board?

  The concept of Third Party Logistics (3PL) is still relatively young, but there is no questioning the headway it has made in the world of supply chain management. A $65 billion industry in the U.S., 3PL services account for 12% of all outsourceable logistics spending today, up from a mere 4% in 1995.

  This threefold increase in market penetration in less than a decade is very impressive, but it isn't the full story. What stands out even more is the growing sophistication and scope of capabilities and services provided by today's 3PLs. Freight, warehousing, distribution and technology are obvious core services, but increasingly manufacturers are looking to their 3PL for total supply chain expertise. That could include sourcing on the procurement side of the order cycle, all the way to customer service on the other end.

  But beneath the general upward trend in logistics outsourcing lies a clear distinction in the nature of companies using 3PL services. Evidence suggests that larger companies are much more likely than small and mid-size enterprises (SME) to work with 3PL providers. In a 2002 study of Fortune 500 companies, logistics consultant Armstrong & Associates, Inc. determined that 88% of the top 100 businesses were using 3PL services, compared to only 27% among the 401-500 quintile. Presumably, SMEs are even less likely to jump on board.

  Figures like that help perpetuate the myth that 3PL is only suitable for large multinationals. However, nothing could be farther from the truth. In fact, SMEs can benefit the most from outsourcing their supply chain functions to an integrated logistics provider.

  Cost Efficiencies

  3PLs can offer cost-effective transportation and warehousing rates due to their buying power and ability to consolidate shipments and inventory from multiple customers. But beyond a simple rate-based analysis, outsourcing to a 3PL also allows manufacturers to effectively turn fixed, bricks-and-mortar costs into variable costs. This facilitates budgeting and pricing decisions immensely, while adding flexibility and risk-mitigation to a company's strategic plan.

  "Cost efficiency is very important as an overall goal, but when researching potential 3PL partners, it shouldn't be the only criteria," points out Dennis Leblanc, National Sales Coordinator of Seal Graphics Canada, which outsources to PBB for inventory management and fulfillment, North American shipping, international freight forwarding and Customs clearance of its specialized laminating equipment and supplies. "Finding a partner with the right 'fit' is more important than simply choosing the lowest cost option."

  Market Access

  While most Fortune 500 companies already have well-established penetration in many global markets, SMEs often lack the knowledge and expertise to grow in new markets. But by leveraging a 3PL partner's expertise and its understanding of local business culture and conditions, manufacturers can get an immediate head-start when attempting to access a new market - or procure raw materials from a new overseas source.

  Control and Customer Service

  Some non-3PL users subscribe to the notion that outsourcing means a loss of control, impeding their ability to service customers properly. That's where selecting the right 3PL can be critical. Because with the right choice, manufacturers can improve both control and customer service alike. How? Technology plays a key role, as 3PLs typically have sophisticated logistics systems developed specifically for tracking, tracing, inventory control, purchase order management and more. Such systems are generally prohibitive for an SME trying to perform all its supply chain functions in-house.

  "The reason why we outsource our logistics needs is precisely to ensure excellent customer service," says John Gross, President of Peak Products Manufacturing Inc., which partners with PBB to supply its building and consumer products to major home improvement chains across North America. "When your customers insist on fast, accurate shipments to maximize their retail sales, a 3PL can add much value through supply chain efficiencies and access to real-time shipment and inventory information."

  Today's push towards vendor compliance only amplifies the importance of technology and selecting the right 3PL. 3PLs with a track record in offering flexible supply chain systems and processes can bring invaluable expertise to SMEs working to comply with stringent requirements imposed by a large customer. These requirements, which may include anything from performance guarantees to specific bar coding standards, typically involve highly customized solutions that necessitate special expertise.

  Core Competencies

  With the ongoing globalization of trade, the competitive pressures on North American SMEs continue to mount. At the same time, supply chain security and tougher compliance-oriented Customs initiatives make shipping across borders increasingly complex. As businesses of all sizes focus more and more on their core competencies, the trend towards 3PL outsourcing will continue to grow. And having lagged behind their Fortune 500 counterparts in the past, SMEs stand to benefit the most from 3PL-based supply chain improvements in the years ahead.

  TAKING CONTROL OF TEMPERATURE-CONTROLLED LOGISTICS
  Questions & Answers

  Shipping temperature-controlled products has always been more complex and costly than dry goods. Moving them across the border is even more complicated, with traffic delays, Customs security and compliance initiatives and most recently, FDA prior notice regulations. Steve Corbeil, who heads up PBB's temperature-controlled logistics service, answers a number of timely questions about the issues facing shippers today.

  Q. What is the main challenge of moving temperature-controlled and temperature-sensitive goods?

  A. There's really two factors that make it different from shipping regular goods. First, there's the obvious requirement for specialized equipment. Reefers can cost three times as much as a standard trailer and of course they cost a lot more to operate.

  But of much greater impact is the seasonality of the business, particularly when dealing with produce and other food products. This leads to huge fluctuations in the supply and demand of equipment. So a shipper can maintain an in-house fleet which will operate at low capacity for part of the year, and maximum capacity during peak season. That's obviously inefficient, but contracting out at spot rates is also subject to pitfalls since prices can really spike when equipment is in high demand. A $2,000 variance on a truckload is not uncommon, and we're talking only a matter of weeks apart.

  It's no bananas: temperature-controlled logistics make up only about 4% of all freight volumes in North America, but that represents an estimated $40 billion in total logistics costs.

  Q. How does a third-party Transportation Management service address seasonal equipment imbalances?

  A. Having working relationships with a large number of temperature-controlled carriers is a big factor. For example, Carrier Connection* works with about 1,200 highly-reliable carriers, giving us access to a considerable supply of equipment. Companies managing their freight in-house aren't likely to have this critical mass of carriers to draw upon. Technology is also a key factor in managing large volumes of freight and numerous carriers. Again, in-house freight departments might not have the systems to link effectively with the large pool of carriers needed to ensure timely access to equipment during seasonal imbalances.

  Q. How does outsourcing to such a service provider impact freight costs?

  A. It definitely works out to the shipper's advantage. Since we handle the freight of some of North America's largest food businesses and grocery chains, we have considerable buying power with our carriers. Transportation Management services can also obtain favorable rates because they match shippers with carriers, working to consolidate LTL loads and fill backhauls.

  Typically, the closer you work with a provider, the better the rates you can achieve. If enough planning is done ahead of time, you can usually secure committed pricing so that if equipment demand soars, you're not stuck having to scramble for a reasonable rate. Overall, I think more and more shippers are realizing the value of partnership. In the past our business was mostly overflow, spot-based business. But today our customers look to us to manage their entire transportation business. That includes international freight, not just trucking within North America.

  Q. How do recent developments at the border impact temperature-controlled shippers?

  A. There's no doubt that crossing the border is becoming more complicated with Customs' emphasis on security and compliance. The new FDA rules are also very significant. To the extent that these initiatives lead to delays at the border, you'll find carriers forced to factor downtime into their base rates. Because of the higher operating costs of temperature-controlled equipment, any increase in cost structure will be even more pronounced. And don't forget the impact of border delays on equipment availability. Reefers waiting in line at the border only exacerbate the impact of supply and demand on freight rates.

  Hopefully all the new Customs and FDA rules will have minimal impact on overall border wait times. Regardless of what materializes, the smart shipper should be diligent in preparing for new border initiatives to ensure full compliance. You can't do anything if your load is waiting for clearance in a long line of trucks, but you sure can prevent shipment refusals caused by incomplete or inaccurate trade data.

  * PBB's temperature-controlled services are provided in conjunction with Carrier Connection International (CCI), a recently-acquired specialist in transportation services for the North American food industry. From locations in Ontario, Missouri, Manitoba and Texas, CCI has active relationships with approximately 1,200 temperature-controlled carriers.

  With the acquisition of CCI in September 2003, PBB offers a one-stop solution that combines CCI's temperature-controlled expertise with PBB's core strengths in Customs brokerage, international trade and third-party logistics. For more information, contact 1-800-939-2739.

  PBB HONORED AS ONE OF ONTARIO'S BEST

  PBB recently won a prestigious province-wide corporate award, being recognized by the Ontario Chamber of Commerce for Outstanding Business Achievement.

  Ontario Premier Dalton McGuinty with Mike Scott, President and C.E.O., PBB Global Logistics, at the Ontario Chamber of Commerce awards ceremony in Toronto.

  The honor is reserved for just a handful of companies that demonstrate strategic prowess and superior business performance. The judging panel was impressed by PBB's steady growth, by the trade and logistics expertise of its people and by the company's success in developing integrated supply chain solutions for its customers.

  PBB qualified for the provincial award after its Sarnia, Ontario office won a top local Chamber of Commerce award earlier in the year. It was nominated by Sarnia-based Phancorp Inc., a chemical wholesaler that recently partnered with PBB to establish profitable new sourcing and supply chain arrangements in China.

  "This award is a great honor," said Mike Scott, President & CEO, PBB Global Logistics, "It's a testament to our mission of helping companies - in Ontario or anywhere else in North America - reach new export and sourcing markets."

  
  
  
  CME & PBB TO LEAD TRADE MISSION TO CHINA
  Opening doors to help newcomers access China
  
  Canadian Manufacturers & Exporters (CME), a leading association representing Canada's manufacturing and trade sectors, will be partnering with PBB Global Logistics to lead an upcoming trade mission to China, scheduled for the fall of 2004.

• China Facts & Figures Population: 1,287,000,000 Economy: GDP: US$1.2 trillion World's 6th largest economy 2nd largest economy measured by PPP GDP growth (Q4 2003): 9.9% Sectors: Agriculture: 15.2% Industry/construction: 51.2% Services: 33.6% Seaports: Hong Kong: 18.6 TEUs; #1 in world Shanghai: 8.6 TEUs; #4 in world Shenzhen: 7.6 TEUs; #6 in world (TEU: 20-Foot Equivalent Unit) Paved Highway: 314,204 km (Canada: 497,306 km) Share of World Container Production: 87% Average Labor Costs: US$0.80 per hour Sources: CIA World Factbook, UNCTAD Review of Maritime Transport 2004.

  The mission provides a unique opportunity to meet buyers, suppliers, distributors and manufacturers - strategically selected from across China to match participants' business needs and objectives - for one-on-one discussions and negotiations.

  This will be the fourth trade mission organized by PBB's Access China professionals and the first to be co-led with a major trade association. Previous missions owe their success to an emphasis on building personal relationships, a critical aspect of Chinese business culture.

  With so much boardroom-level attention to new global sourcing strategies, the joint PBB/CME trade mission is an effective, accelerated way to make important connections in what is otherwise a very complex and time-intensive market, especially for the newcomer. Many participants from PBB's previous missions are already benefiting from new sourcing and selling partnerships in China, sometimes up and running in as little as six months after the mission.

  CME's Doreen Ruso (left), former Vice President, International Trade Development, took part in PBB's earlier trade missions in 2000, 2001 and 2002.

  The upcoming mission is expected to be the largest to date, combining the strengths and established relationships of both PBB and CME. CME's membership accounts for 75% of Canada's manufacturing output and 90% of all its exports, while PBB possesses a considerable network of high-level Chinese government and industry contacts, built and nurtured over 20 years of doing business in the country.
  
  The mission is expected to take place in November 2004, although the exact dates and itinerary are still being finalized. Up-to-date information, along with highlights from previous trade missions, is available at www.pbb.com/china/mission2004/.

  ACCESS CHINA PROGRAM HELPS CHUM ROCK THE WORLD
  How CHUM-TV and Guangxi TV forged a partnership through PBB

  CHUM Television International, along with its extremely successful Much Music channel, is known throughout the world for leading edge music television. It has had many opportunities to export its model and is used to being approached by countries looking to establish a Much Music-type program in their own market. When PBB approached them with an interested party from China, the broadcasting company was somewhat reluctant.

  "We were originally a bit skeptical, but PBB reassured us," says Kevin Byles, Vice President & General Manager, CHUM Television International. Although CHUM was in the process of working with a Shanghai partner to develop a broad-based television program, there was some hesitation at the thought of taking on another complex relationship. Byles says that CHUM had spoken with other broadcasters about establishing partnerships with Chinese broadcast agencies and had come to believe that it would be very difficult to achieve a successful joint venture.

  The nature of CHUM TV's introduction to Guangxi TV reflected the importance of relationships in Chinese business culture. "We had been working with Guangxi TV for a few years," says PBB's Josephine Boyle, Director, Corporate Travel. The Chinese broadcaster was searching for joint venture partners around the world, having previously met with groups in Brazil, Europe and the United States. "When they started looking for a North American partner, they came to us for advice and contacts." They were in luck - PBB had a contact at CHUM who agreed to talk to the Guangxi TV officials.

  The initial meeting was held in Toronto and was arranged by PBB's Access China program. Having done business in China since the early 1980s, PBB originally developed Access China to leverage its comprehensive network of government and industry contacts to help North American companies looking to source from or sell to Chinese partners.

  The early discussions were far more promising than either party had anticipated. Guangxi TV wanted to develop a music program for the Chinese market that was modelled after CHUM's Much Music program. The hope was that the music block would bring both international and local music to the people of Guangxi province. With a huge local market of 58 million households, the proposal certainly caught the attention of CHUM's representatives.

  The officials from Guangxi TV were also pleased. Several opportunities were discussed at the meeting that required further investigation. So Guangxi TV extended an invitation for CHUM to come and visit China and tour the Guangxi facilities. CHUM agreed, and worked with PBB to make arrangements for the visit.

  The meetings were intensive, but extremely successful, leading to a multifaceted, ongoing relationship. In addition to providing a Much Music model, CHUM will support Guangxi TV's efforts to establish itself as a leading broadcast organization by providing training, as well as the style, look and feel of the Much Music station. "They have a solid infrastructure," notes Byles. "They have a digital complex that exceeds what we have in Toronto. They have the studio facilities and the staff, but lack the ability and training to use the equipment to its maximum capabilities."

  Byles is extremely optimistic about the future of the relationship. Both organizations hope to develop the music block and then spread it throughout the rest of China. With a market of over 300 million cable households across the country, the potential is enormous, and only growing.

  According to Byles, the franchising model of Much Music is tailored to meet the needs of the country, with control given to the local operator. In China, the government controls TV operations, but lets these operations function on their own. "There is a lot of advertising money and they are very profitable," says Byles. In addition to talent and resources, China also offers another advantage - operating and production costs tend to be lower overall, making it a very economical location to do business.

  Byles feels that this partnership worked for a few reasons. First, CHUM took the time after making the initial contact to build and establish a solid relationship. "It's all about relationships, and it makes the experience more meaningful."

  PBB was certainly instrumental in making the introductions that led to these

  CHUM Television International exports its successful Much Music model to countries around the world from its flagship building on Queen Street in Toronto.

  relationships; the company was responsible for bringing the Guangxi TV management team to Toronto and for setting up the first official meeting. According to Byles, PBB's role with Guangxi TV was expanded to allow it to act almost as an 'agent', establishing contacts and helping to broker deals. The importance of personal relationships while doing business with Chinese partners cannot be overstated; PBB's long term involvement with Guangxi TV lent a great deal of credibility to the CHUM introduction.

  As they say in the entertainment world, timing is everything. Guangxi TV approached CHUM at the right time with the right opportunity. The Chinese economy is growing at lightning speed and there is huge demand for consumer goods and entertainment. "The business model in China is changing and there is a desire to do things and to be more liberated," says Byles. With the help of PBB, CHUM was in the right place at the right time.

  PBB NEWS BRIEFS
  Free Online Search for 2004 H.S. Codes

  With increased scrutiny at the border, new advance notification rules and administrative monetary penalties for non-compliance, it's more important than ever to ensure that shipment information and trade documentation are accurate and complete before being reported to Customs.

  A good place to start is PBB's popular H.S. Codes search engine, which has been updated with 2004 Canadian tariff data. The feature, available free of charge online at www.pbb.com/hsc/, contains duty rates for over 29,000 code numbers and all 13 tariff treatments. For added convenience, goods can be searched either by product keyword or by code number.

  For U.S. tariff information, visit www.usitc.gov/taffairs.htm.

  Non-Resident Importers Face Customs Audits

  With Non-Resident Importers (NRI) appearing to be the focus of an increasing number of Customs audits, PBB is reinforcing the importance of proper NRI set-up with Canadian revenue authorities. Inconsistencies surrounding valuation for duty and recovery of GST through input tax credits are among the most commonly identified errors surfacing during Customs audits.

  Additional information on these issues can be found at www.pbb.com/nri/. Further assistance can be obtained through PBB's Trade & Regulatory Services. which help traders take a proactive approach to complying with Canada's NRI regulations.

  Help Improve "Solutions", Win a BlackBerry®

  Throughout the coming months, PBB will be revamping and redesigning its"Solutions" newsletter.  Survey participants will be entered into a draw to win a RIM BlackBerry® wireless handheld, courtesy of Vega Wireless (Blackberry Sales and Service: 1-877-708-9600 or josh.finlay@vegawireless.ca). The deadline for entries is April 30, 2004.

  Now in its 9th year of publication, Solutions is designed to keep readers informed on the latest developments in trade, logistics and recent PBB news. In 2003, Solutions was recognized by the U.S.-based Transportation Marketing & Communications Association, winning a "Tranny" award in the best industry newsletter category.

  PBB COMPLETES EXECUTIVE MANAGEMENT SUCCESSION PLAN

  PBB Global Logistics recently announced the retirements of three executive vice presidents: Valerie Beattie, Tom Mountain and Jim Wiser. The announcement represents the final element of a succession program that began with four senior management appointments nearly a year ago.

  Under the plan, the responsibilities of the outgoing executives are assumed by PBB veterans John Ferguson, Vice President Sales & Marketing, Mark Lidkea, Vice President Customs Operations, Joe Morinello, Vice President Finance & Administration and Gary Vince, Vice President Logistics Operations, who were appointed to their positions last spring. The group has over 80 combined years of experience in the logistics industry, a majority of them with PBB.

  "We're very grateful for the contributions Valerie, Tom and Jim have made to our team over the years as we've built PBB into a full service logistics provider," said Mike Scott, President and CEO, PBB Global Logistics. "We're also grateful for their assistance in transitioning to our next generation of leaders who have already been instrumental in many key decisions over the past year."

  Led by Mr. Scott, the new management group will continue developing and implementing strategies that enhance the company's logistics capabilities, its technological advantages and its geographic network. "All of us share a common philosophy and we firmly believe that PBB's future growth and success is driven by our customers' global supply chain needs," said Mr. Scott.