I am providing some general rules in this blog posting. However, a service provider's specific facts may be outside one of the situations I have considered anyone may need more specific guidance - for this I apologize in advance.

General Rule #1

Generally speaking, OHST will apply when services to be provided on or after July 1, 2010 are (1) billed or (2) the consideration is due or is paid after July 1, 2010.

Note: Timing of bills/payment and due date for consideration is important!

Tip 1: This means that June 30, 2010 bills for services should be rendered/mailed BEFORE July 1, 2010 and should be stated to be due "IMMEDIATELY". This will help avoid confusion with an auditor.

Exception to General Rule #1

If all or substantially all (that is 90% or more) of the services are performed BEFORE July 1, 2010, but the bill is sent after July 1, 2010, OHST should not apply.

Tip # 2: Accountants who are working on tax filings for June 30, 2010 may not have to charge OHST if 90% of the work is completed before July 1, 2010 and the filing in made in early July 2010 and is invoiced after the filing.

General Rule #2

If a contract for services is entered into BEFORE May 1, 2010 AND consideration for the services is made BEFORE May 1, 2010, then OHST will not apply even if the services are provided after July 1, 2010.

Tip#3: There are special GST/OHST rules for deposits, which are not considered to be a payment of consideration until the deposit monies are allocated to the services provided. As a result, collecting a large retainer prior to May 1, 2010 will not remove the obligation to charge, collect and remit OHST.

General Rule #3

If you enter into a contract to provide services BEFORE May 1, 2010 AND are paid AFTER MAY 1, 2010 and provide the services AFTER July 1, 2010, then HST would apply.

Tip #4: Long-standing clients dating back before the turn of the century will have to start paying OHST with respect to services provided after July 1, 2010 even if they overpay in May/June 2010.

General Rule #4:

If a service provider enters into a flat fee contract with a client AFTER May 1, 2010 AND if some services are performed BEFORE July 1, 2010 and some services are performed AFTER July 1, 2010, the service provider would have to allocate/prorate and account for the OHST of the consideration payable in respect of the services provided AFTER July 1, 2010.

Example: If a client pays for services in May 2010 and 50% of the services are provided before July 1, 2010 and 50% of the services are provided after July 1, 2010, then the client would pay OHST on the 50% of the consideration payable after July 1, 2010.

Tip: Send out bills for work-in-progress as of June 30, 2010 so that documentation that will eventually be viewed by a OHST auditor will show a clear billing date before July 1, 2010. A clean slate as at July 1, 2010 should make the audit less painful. As indicated above, "IMMEDIATE" payment terms solves statutory language issues.

Tip: Lawyers and accountants are used to maintaining detailed records of the amount of time spend by each employee who work's on a client file. Other service providers should consider maintaining such records because the maintenance of verifiable evidence will be critical in any OHST audit.

More Exceptions to General Rules or Nuances

1) Special transition rules apply to funeral and cemetery services, passenger transportation and freight transportation services.

2) If services relate to real property (e.g., construction of a home), the real property transition rules will likely apply. As a result, it may be important to ensure closings occur prior to July 1, 2010. Lawyers involved in the transfer of real property (e.g., a newly built home) where the documents are prepared and searches performed before July 1, 2010 may be able to rely on Rule 2 above, but would have to keep detailed records.

3) Certain businesses who are clients (e.g., listed financial institutions, charities engaged in exempt activities, schools, hospitals, municipalities and businesses using simplified accounting methods) may be required to self-assess and remit the OHST portion in respect of certain service contracted after October 14, 2009, but provided after July 1, 2010, such as (1) services are performed on or after July 1, 2010, or (ii) the services relate to goods that are delivered after July 1, 2010. Please be careful in advising clients that they will not need to pay OHST as their specific circumstances may just mean they do not have to pay the OHST to the service provider.

If you have any questions, please contact Cyndee Todgham Cherniak at 416-307-4168. We will be accepting credit card information to open OHST advisory files and answer OHST billing questions.

It is of no surprise after seeing "United States" and "antidumping measures" that the dispute concerns the U.S. zeroing practices.  The Request for Consultations in what will be DS404 reads as follows:

"Upon instructions from my authorities, I hereby request consultations with the Government of the United States pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes ("DSU"), Article XXII:1 of the General Agreement on Tariffs and Trade 1994 ("GATT 1994"), and Articles 17.2 and 17.3 of the Agreement on Implementation of Article VI of GATT 1994 ("Anti-Dumping Agreement"), with regard to the matters listed hereunder:

(1) The following determinations of the United States Department of Commerce (USDOC) concerning Certain Frozen and Canned Warmwater Shrimp from Vietnam, Case No. A-552-80l:

(a) Certain Frozen Warmwater Shrimp From the Socialist Republic of Vietnam: Final Results of the First Antidumping Duty Administrative, 72 FR 52052 (12 September 2007) as well as any assessment instructions and cash deposit requirements issued pursuant to this determination, the "Decision Memorandum" in this review which discusses issues raised in this review and confirms that "zeroing" was applied by the USDOC in this review and specifically rejects the relevance of WTO Appellate Body precedents for administrative reviews conducted by the USDOC, and any records demonstrating the calculation of the margins of dumping applied zeroing;

(b) Certain Frozen Warmwater Shrimp From the Socialist Republic of Vietnam: Final Results and Final Partial Rescission of Antidumping Duty Administrative Review, 73 FR 52273 (9 September 2008) as well as any assessment instructions and cash deposit requirements issued pursuant to this determination, the "Decision Memorandum" in this review and any records demonstrating the calculation of the margins of dumping applied zeroing;

(c) Certain Frozen Warmwater Shrimp from the Socialist Republic of Vietnam: Final Results of the Second New Shipper Review, 74 FR 24796 (26 May 2009) as well as any assessment instructions and cash deposit requirements issued pursuant to this determination, the "Decision Memorandum" in this review and any records demonstrating the calculation of the margins of dumping applied zeroing;

(d) Certain Frozen Warmwater Shrimp From the Socialist Republic of Vietnam: Final Results and Final Partial Rescission of Antidumping Duty Administrative Review, 74 FR 47191 (15 September 2009) as well as any assessment instructions and cash deposit requirements issued pursuant to this determination, the "Decision Memorandum" in this review and any records demonstrating the calculation of the margins of dumping applied zeroing;

(e) Preliminary and Final Results of any administrative reviews or other reviews of Certain Frozen Warmwater Shrimp From the Socialist Republic of Vietnam published in the Federal Register after the date of this request for consultations, including reviews under Section 751(c) of the Tariff Act of 1930, as well as any assessment instructions and cash deposit requirements issued pursuant to this determination, the "Decision Memorandum" in this review and any records demonstrating the calculation of the margins of dumping applied zeroing; and

(f) Any changes in the final results of any administrative review of Certain Frozen Warmwater Shrimp From the Socialist Republic of Vietnam issued pursuant to a remand from the US Court of International Trade, as well as any opinion of the Court related to the remand results, any assessment instructions and cash deposit requirements issued pursuant to this remand determination, the "Decision Memorandum" in this remand determination, any arguments subsequently presented to the Court regarding the remand determination and any records related to the remand determination demonstrating the calculation of the margins of dumping applied zeroing.

(2) Any actions taken by United States Customs and Border Protection (USCBP) to collect definitive anti-dumping duties at duty assessment rates established in periodic reviews covered by the preceding paragraph, including through the issuance of USCBP liquidations instructions and notices.

(3) The following US laws, regulations, administrative procedures, practices and methodologies:

* the Tariff Act of 1930, as amended, (the "Act"), in particular sections 736, 751, 771(35)(A) and (B), and 777A(c) and (d);

* the US Statement of Administrative Action that accompanied the Uruguay Round Agreements Act, H.R. Doc. No.1 03-316, vol. I;

* the implementing regulations of USDOC, codified at Title 19 of the United States Code of Federal Regulations, 19 CFR Section 351, in particular sections 351.2l2(b), 351.414(c), and (e);

* the Import Administration Antidumping Manual (1997 edition), including the computer program(s) to which it refers;

* the general procedures and methodology employed by the United States to determine dumping margins in administrative reviews, whereby USDOC, in comparing weighted average normal value with transaction price of individual export transactions, treats as zero negative intermediate comparison results (i.e. situations in which the individual export price is greater than the weighted average normal value). Such methodology is commonly referred to as "simple zeroing" and/or the US "zeroing procedures".

2. Vietnam believes that the laws, regulations, administrative procedures, practices and methodologies described above are as such, and as applied in the determinations listed above, inconsistent with the obligations of the United States under the Marrakesh Agreement Establishing the World Trade Organization (the "WTO Agreement") and the Agreements annexed thereto. The provisions with which these measures appear to be inconsistent include, but are not limited to, the following:

* Articles I, II, VI: 1 and VI:2 of the GATT 1994;

* Articles 1,2.1,2.4,2.4.2,6.8,6.10,9.1,9.3,9.4,11.2, 11.3, 18.1 and 18.4 and Annex II of the Anti-Dumping Agreement;

* Article XVI:4 of the WTO Agreement.

* And Vietnam's Protocol of Accession to the WTO.

3. Vietnam believes that the United States has acted inconsistent with its WTO obligations specified in paragraph 2 above by applying so-called "zeroing" in the determination of the margins of dumping in the reviews cited in paragraph 1 above, by repeatedly and consistently, failing to provide most Vietnamese respondents seeking a review an opportunity to demonstrate the absence of dumping by being permitted to participate in a review, and by requiring companies to demonstrate their independence from government control and applying an adverse facts available rate to companies failing to do so in all reviews. Vietnam further believes that the US has an established practice with respect to each of these issues and will, therefore, continue to act inconsistent with its WTO obligations relating to these issues in ongoing and future reviews, including the five year review provided under Article 18.1 of the Antidumping Agreement.

4. Vietnam reserves the right to raise additional claims and legal matters during the course of the consultations. It looks forward to receiving the United States Government's response and to setting a mutually convenient date for consultations.

I look forward to receiving your reply to this request and, in accordance with Article 4.3 of the DSU, to selecting a mutually acceptable date for holding consultations. Vietnam welcomes suggestions that the United States may have concern the date and venue for the consultations."

In light of the recent DSB Panel report on 22 January 2010 in respect of a complaint by Thailand titled “United States — Anti-dumping measures on polythene retail carrier bags from Thailand” (DS383), Vietnam may be pursing a low risk case in order to learn the WTO dispute settlement ropes.

A preliminary investigation concluded U.S. exports of chicken products were being sold at improperly low prices that harmed Chinese competitors. As a result, China will impose antidumping duties at a preliminary rate of 105.4% for most imports. A few companies that cooperated in the investigation will receive lower rates. Tyson Foods Inc. will be charged 43.1% (the lowest rate), while Pilgrim's Pride Corp. will pay 80.5%.

It will be interesting to see what will be the results in the parallel autos antidumping investigation in China. Trade Lawyers Blog understands that U.S. auto representatives were in China this past week. Please stay tuned.

1. The Parties shall commence further negotiation no later than December 21, 1998, with a view to the further liberalization of their government procurement markets.

2. In such negotiations, the Parties shall review all aspects of the government procurement practices for the purposes of:

(a) assessing the functioning of their government procurement systems;

(b) seeking to expand the coverage of this Chapter, including by adding

(i) other government enterprises, and

(ii) procurement otherwise subject to legislated or administrative exceptions; and

(c) reviewing thresholds.

3. Prior to such review, the parties shall endeavour to consult with their state and provincial governments with a view to obtaining commitments, on a voluntary and reciprocal basis, to include within this Chapter procurement by state and provincial government entities and enterprises….”

These provisions move the NAFTA forward even though the public announcements do not recognize this important fact. 

The Canada-U.S. Agreement on Government Procurement has not been released to the public.  However, in the various statements by Ambassador Kirk and Minister Van Loan, the following commitments have been announced:

• The United States has agreed to temporarily (until February 17, 2010 when the funding period expires) provide Canadian suppliers of iron, steel and manufactured goods with guaranteed access to state and local public building or public works projects in a range of programs funded by the American Recovery and Reinvestment Act of 2009 (ARRA) in the 37 states listed in the United States’ schedules to the WTO AGP,
• The Canada and the United States will give notification under the WTO AGP of expanded commitments to each other with respect to provincial, territorial and state procurement (after signing the Agreement and domestic approval prcesses are complete);
• The <country-region 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preferential access under NAFTA Chapter 10 to a range of infrastructure programs of the U.S. Department of Energy, the U.S. Department of Housing and Urban Development and the Environmental Protection Agency.
• <country-region 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has agreed to provide <country-region 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suppliers with guaranteed access to a range of construction contracts across <country-region w:st="on"></country-region></country-region><//country-region></country-region><//country-region></><//></country-region><//country-region></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//><place w:st="on"></place></place><//place></place><//place></><//></place><//place></><//></><//></><//></place><//place></><//></><//></><//></><//></><//></><//></><//></place><//place></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></place><//place></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></place><//place></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//>Canada</place><//place></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//>'s provinces and territories, as well in as a number of municipalities.
• The United States has agreed to offer Canadian suppliers permanent market access at the sub-federal level; meaning that Canadian suppliers will have guaranteed access to U.S. sub-federal procurement in accordance with undertakings under the GPA.
• <country-region w:st="on"></country-region></country-region><//country-region></country-region><//country-region></><//></country-region><//country-region></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//><place w:st="on"></place></place><//place></place><//place></><//></place><//place></><//></><//></><//></place><//place></><//></><//></><//></><//></><//></><//></><//></place><//place></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></place><//place></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></place><//place></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//>Canada</place><//place></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//> and the United States have agreed to begin discussions within the year to explore the possibility of additional reciprocal access to procurement markets.
• <country-region w:st="on"></country-region></country-region><//country-region></country-region><//country-region></><//></country-region><//country-region></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//>Canada</country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//> and the <country-region w:st="on"></country-region></country-region><//country-region></country-region><//country-region></><//></country-region><//country-region></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//>United States</country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//> agreed to establish an expedited consultation mechanism, which will allow for dialogue between the <country-region w:st="on"></country-region></country-region><//country-region></country-region><//country-region></><//></country-region><//country-region></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//>United States</country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//> and <country-region w:st="on"></country-region></country-region><//country-region></country-region><//country-region></><//></country-region><//country-region></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//><place w:st="on"></place></place><//place></place><//place></><//></place><//place></><//></><//></><//></place><//place></><//></><//></><//></><//></><//></><//></><//></place><//place></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></place><//place></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></place><//place></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//>Canada</place><//place></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></country-region><//country-region></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//></><//> on any matter related to these issues, including similar Buy American provisions to be applied to future funding programs.

In additon, the actual wording of the provisions of the Agreement will be important and nuances must be expected.

Some who want immediate gratifiction may criticize the deal as being too late for significant impact given the fact that most of the monies under the American Recovery and Reinvestment Act have been awarded to U.S. companies (the spending expires on February 17, 2010), and local sentiment in the United States is still firmly “Buy American”.  These nay-sayers would be wise to see the potential benefit that can flow in 2010 or later years as opposed to looking back on 2009.  The benefits of a trade agreement are meant to improve the future and, hence, Canadians and Americans should be cautiously optimistic about future opportunities.

What should be of greater concern is the statement that “[t]he agreement ...must be reviewed by domestic stakeholders in both countries before it can be signed” may cause risk-adverse Canadian businesses continued concern.  With the Canadian House of Commons prorogued until March 2010 and the daily conflict in the U.S. Congress and Senate, this might just be the escape clause for either side (or a sun-national government) to walk away from the deal.

In addition, the details of the Agreement do not make any mention of the Water Quality Investment Act, the Energy and Commerce Reinvestment Act, the Air Force One Built in America Act, the Purchasing Low Emission Vehicle for Use in Government Act, the American Steel First Act and the Strategic Targeted American Recovery and Transition Act, which also contain "Buy American" provisions.

That being said, this Canada-United States Agreement on North American Government Procurement is an important evolution of NAFTA and an important first step towards a renewed recognition that a strong North America benefits Canada and the United States.  This cooperative sentiment has hopefully been reinvigorated and the momentum is forward-moving/looking. 

For more information, please contact Cyndee Todgham Cherniak.  Cyndee is an international trade lawyer with Lang Michener LLP and an adjunct law professor at Case Western Reserve University School of Law and teaches a course on NAFTA and bilateral trading arrangements.

CTV's Ottawa Bureau Chief Robert Fife has provided a good summary of the rumoured deal:

• U.S. lawmakers "watered down" protectionist policies Wednesday night in the Senate. The clause had been attached to Washington's massive $900-billion stimulus program.
• Trade between Canada and at least 37 U.S. states will be opened up (the States that are represented in the WTO Agreement on Government Procurement.
• Canadian companies will be let in on seven major U.S. programs.
• The agreement is a precedent-setting for Ottawa, as it will prevent Canadian industry from being lumped in with other trading countries like China in the future.
• The delayed announcement may be due to a different approach in Canada and the U.S.

The Hamilton Spectator reports at the deal only covers contracts granted under the U.S. stimulus package, such as money is allocated for roads, public housing and other infrastructure projects. However, it is important to note that the benefits may be limited because most of the stimulus money has already been spent during the period when Canada has been affected by the "Buy America" rules. The negotiators will continue to push for a permanent exemption for Canadian suppliers from existing and all new "Buy American" provisions.

On the Canadian side of the deal, Canadian provinces and municipalities (which have not provided schedules to Chapter 10 of NAFTA or the WTO Agreement on Government Procurement) will open procurement opportunities light to American firms bidding on government projects in their jurisdictions. Canadian provinces are to sign on to a WTO Agreement on Government Procurement, which will permanently and formally give the U.S. and other countries access to projects underway in Canada with federal stimulus spending. Most importantly, once the provinces have been "scheduled" (that is listed in the WTO Agreement), then bidders and potential bidders from WTO Members that have signed the WTO Agreement on Government Procurement will have access to the Canadian International Trade Tribunal government procurement complaint process and counties would challenge Canada under the WTO Dispute Settlement Understanding.

Canadians are waiting patiently for formal confirmation for the United States Trade Representative (Ambassador Kirk) and Canada's Minister of International Trade (Peter Van Loan) or Canada's Ambassador to Washington (Gary Doer). Canadians are hopeful that there will not be a last minute deal-breaker.

More will follow when information is made available.

The agreement follows a meeting at the WTO of WTO Members relating to Yemen's accession to the WTO (the seventh round of accession discussions) , which occurred in Geneva on January 25-27, 2010.

Canada is not the first to finalize its deal to support Yemen joining the WTO. The European Union, China, and Australia have previously signed agreements regarding accession requirements.

In addition, on January 27, 2010, Yemen and the US discussed means of facilitating and accelerating the bilateral negotiations to complete procedures of Yemen’s accession into the WTO.  Reports also suggest that japan and Yemen are moving forward in their bilateral discussions.

Canada has not made any formal announcement.  For more information, please go to the following link - http://tinyurl.com/ydvrj77 and http://tinyurl.com/ya3waa7

The trade measure at issue is the December 22, 2009 decision by the EU to extend anti-dumping duties against Chinese (and Vietnamese) footwear for 15 months. Dumping occurs when a product is sold in a foreign market at less than its domestic cost price. Antidumping duties may be continued where it is warranted. The level of antidumping duties is 16.%, which is not so bad in comparison to the 170%+ rate applied by Canada against certain carbon steel screws from China.

Where this case gets interesting is the evidence of the lack of support in the EU for the imposition of the duties. According to the Financial Times, in November 2009, the EU Member States had agreed to stop collecting the duties. However, before the deadline, for rescinding, Malta, Germany and Austria changed their position.

Even Lord Mandelson, who imposed the original duties in 2006 in his previous role as European trade commissioner, lobbied heavily against the renewal of the antidumping duties. In addition, the European Footwear Association (EFA) spoke out against the continuation of the antidumping duties. At the time of the December 22, 2009 decision, Manfred Junkert of the Federation of the German Footwear Industry voiced his disappointment and made the following statement:

“The continuation of the anti-dumping duties on footwear for another 15 months is completely unacceptable. It shows that, despite all the public rhetoric, the EU prefers to follow its protectionist course at the expense of successful European footwear businesses and consumers. Economic logic and due process have been utterly disregarded throughout this case. Our only hope left is that this time round, the EU will actually honour its commitment to end these onerous duties after 15 months and not a day more ...”

The EFA opposition to the EU decision continues and they came out in support China's decision to file the request for consultations at the WTO. According to Amy Shields of Drapers, the EFA announced on February 4, 2010 "that the footwear association shares China’s view that the EU's decision to extend the levies – 16.5% on imported Chinese leather footwear and 10% on Vietnamese leather footwear – by a further 15 months in December was “based on questionable investigation and a flawed analysis of the economic facts". The EFA include hundreds of European shoe manufacturers, including major shoe manufacturers, such as Adidas, Clarks, Timberland, Ecco, and Hush Puppies.

The next steps will be interesting as the industry may get more involved in the WTO process. Under the WTO dispute settlement procedures, if China and the EU cannot agree a settlement within 60 days, then China would request that the WTO DSB establish a dispute settlement panel.

Once a panel is established, the industry may request that the panel permit the filing of amicus briefs setting out their views. This may be the most interesting evidence, which could influence the panel's decision. The industry probably can present the best information to the WTO and the most extensive reasons as to why continuation of the duties is no longer warranted.

However, the reality is that it will likely take more than 15 months to resolve the dispute at the WTO.  The antidumping duties may be rescinded by the time the DSB Panel report is released.  Previous WTO decisions have made it clear that antidumping duties that have been improperly collected do not have to be returned or refunded under the WTO rules.  Unfortunately, there may be a hollow victory if the EU plays this one through.

As the 2010 Vancouver Olympics will begin on February 12, 2010, it is important to remind travelers of several important issues that may affect their ability to enter Canada. 

Canadian Visa Requirements

The first thing that foreign visitor should determine is whether he or she will need to obtain a temporary resident visa.  The following individuals do not require a temporary resident visa to enter Canada:

a)      A citizen of Andorra, Antigua and Barbuda, Australia, Austria, Bahamas, Barbados, Belgium, Botswana, Brunei Darussalam, Croatia, Cyprus, Denmark, Estonia, Finland, France, Federal Republic of Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Republic of Korea, Latvia, Liechtenstein, Luxembourg, Malta, Monaco, Namibia, Netherlands, New Zealand, Norway, Papua New Guinea, Portugal, St. Kitts and Nevis, St. Lucia, St. Vincent, Samoa, San Marino, Singapore, Slovakia, Slovenia, Solomon Islands, Spain, Swaziland, Sweden or Switzerland (Mexico and the Czech Republic were recently been removed from this list);

b)      A British citizen;

c)       A British overseas citizen who is re-admissible to the United Kingdom;

d)      A citizen of a British dependent territory who derives his or her citizenship through birth, descent, registration or naturalization in one of the British dependent territories of Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Falkland Islands, Gibraltar, Montserrat, Pitcairn, St. Helena or the Turks and Caicos Islands;

e)      A person holding a British National (Overseas) Passport issued by the Government of the United Kingdom to persons born, naturalized or registered in Hong Kong;

f)       A person holding a valid and subsisting Special Administrative Region passport issued by the Government of the Hong Kong Special Administrative Region of the People’s Republic of China;

g)      A person holding a passport or travel document issued by the Holy See;

h)      A national of the United States or a person who has been lawfully admitted to the United States for permanent residence;

i)        A foreign national holding a national Israeli Passport;

j)        A citizen of Lithuania or Poland if they hold a machine readable passport issued by one of these countries, which contains a contactless integrated circuit chip; and

k)      A holder of a passport that contains a diplomatic acceptance, a consular acceptance or an official acceptance issued by the Chief of Protocol for the Department of Foreign Affairs and International Trade on behalf of the Government of Canada and are a properly accredited diplomat, consular officer, representative or official of a country other than Canada, of the United Nations or any of its agencies, or of any international organization of which Canada is a member;

With only limited exceptions, all other foreign travelers must obtain a temporary resident visa from a Canadian consulate prior to seeking admission to Canada.

Identification Documents

Virtually all non-Canadians are required to present a valid passport or equivalent travel document to enter Canada.  However, some exceptions to this rule appear in Subsection 52(2) of the Immigration and Refugee Protection Regulations.  The two most notable exceptions are United States citizens and lawful permanent residents of the United States. 

United States citizens are not required to present a United States Passport to enter Canada.  However, they must present proof of their identity and United States citizenship (e.g. photo identification and a United States Birth Certificate, Certificate of U.S. Citizenship, or Certificate of U.S. Naturalization). 

Similarly, lawful permanent residents of the United States are not required to present a valid passport to enter Canada from the United States.  However, they must present their Form I-551s (green cards) to be admitted to Canada.  In addition, Form I-551s are only acceptable when entering from contiguous territory and are not valid for international flights from outside Canada, unless accompanied by a valid passport or travel document.

Notwithstanding the above, as a result of the Western Hemisphere Travel Initiative (“WHTI”), United States citizens are now required to present one of the following documents to United States Customs & Border Protection in order to re-enter the United States:

a)      United States Passport;

b)      A passport card;

c)       A valid trusted traveler program card (FAST, NEXUS, or SENTRI);

d)      An enhanced driver’s license;

e)      A Military ID with official travel orders; or

f)       A U.S. Merchant Mariner Document.

U.S. permanent residents are also required to present valid passports to be readmitted to the United States.  Therefore, regardless of Canadian laws, United States citizens and U.S. permanent residents should be in possession of a valid passport or other WHTI-compliant document to ensure their readmission to the United States at the end of their trip. 

Children Travelling without both Custodial Parents

In order to discourage international child abduction, parents who share custody of their children (and who are not travelling with the other custodial parent) are required to present:

a)      Copies of their legal custody documents; and

b)      A letter from the other custodial parent, authorizing them to take the child on a trip to Canada.  The other parent’s full name, address and telephone number should be Included in the letter of authorization.

Adults who are not parents or guardians should have written permission from the parents or guardians to supervise the children.  The permission letter should include addresses and telephone numbers where the parents or guardians can be reached.

Inadmissibility to Canada

The Immigration and Refugee Protection Act contains several grounds that may render a person inadmissible to Canada.  A full discussion of these grounds of inadmissibility appears  at the following link -http://www.americanlaw.com/cdninadmissible.html.  However, the most frequently encountered grounds involve criminal offenses and medical problems. 

An individual who has committed (even if not convicted) or been convicted of a criminal offense should obtain a legal opinion from a qualified Canadian immigration lawyer prior to applying for admission to Canada.  Even a single drunk-driving offense is considered a ground of inadmissibility to Canada (a full discussion of drunk-driving convictions and inadmissibility appears at the following link - http://www.americanlaw.com/canadadrunkdrivingduidwi.html).

An individual may be inadmissible for health grounds if his or her health condition:

a)      Is likely to be a danger to public health;

b)      Is likely to be a danger to public safety; or

c)       Might reasonably be expected to cause excessive demand on health or social services.

As a result, any foreign national who suffers from a serious medical condition should obtain a legal opinion from a qualified Canadian immigration lawyer prior to applying for admission to Canada. 

Conclusion

Foreign nationals planning on attending the 2010 Vancouver Winter Olympics should take early action to ensure that their travel plans are not adversely affected by any of the above issues. 

Section 3 of the "Country-of-Origin Labeling for Fuels Act" requires a that the Secretary of Energy in consultation with the EPA conduct a study to (i) determine appropriate methods and standards for requiring that motor vehicle suppliers disclose country of origin information with respect to motor vehicle fuel to the next person in the motor vehicle fuel supply chain and motor vehicle retailers disclose such information to consumers, and (2) make recommendations with respect to the most feasible and cost-effective country of origin information disclosure requirements.

Section 4 requires that the Secretary of Energy, in consultation with the EPA, shall prescribe regulations requiring disclosure of country of origin by motor vehicle fuel suppliers and motor vehicle fuel retailers in accordance with the recommendations in their report.

Section 5 establishes a civil penalty at $10,000.

This proposed law's purpose is to inform buyers of the origin of the fuel so that domestic purchasing decisions can be made --- this is protectionism.  This is the first "Buy America" legislation of 2010.

Rep Bruce Braley does not appear to bet aware of the country of origin labeling dispute filed by Canada with the World Trade Organization against the United States in respect of meat products. Country of origin labeling requirements relating to fuel can have not other reason other than pure protectionism. There is no argument relating to consumer protection as fuel is fuel regardless of its source.

In addition, the legislation targets Canada as (1) the number one supplier of fuel to the United States and (2) a supplier of ethanol (where is Braley from again --- yes - IOWA -- corn is used to make ethanol). This is a blatant protectionism directed at Canada and intended to disourage companiues from buying Canadian corn-based fuels in favour of corn-based products from Iowa.

The United States Trade Representative is not asked to provide input in the proposed law. If he was, he would have to communicate that country of origin labeling of fuel is not permitted by NAFTA Article 311 and Annex 311. These NAFTA violations would be in addition to the GATT Article III violations.

Mr. Justice H.J. Wilton-Siegel wrote a good decision; especially in light of the fact that the Superior Court of Justice does not see many GST cases as most GST cases are within the jurisdiction of the Tax Court of Canada. In the end, Mr. Justice Wilton-Siegel agreed with Conservative Fund Canada and agreed that the Chief Electoral Officer should accept the revised general election expenses returns to give effect to the GST rebates. The decision does not order the Chief Electoral Officer to accept a repayment (however, the effect of the revised filings would require a repayment of the difference).

To read the decision of the Ontario Court of Justice, please go to the following link - http://tinyurl.com/yl9o9sl

On January 29, 2010, the Globe & Mail newspaper reported that the Chief Electoral Officer filed an appeal still not wanting to accept the money after the Ontario Court of Justice gave the green light.

I will not comment on the merits of the case as I have not yet determined whether my firm acts for any of the parties involved in the proceedings. I will, however, say that it is obvious from the letter written by the Chief Electoral Officer that is reproduced in the decision that it was not written by a commodity tax lawyer. I continue to be amazed at the lack of understanding of basic GST concepts and the procedural facts that may help answer some of the basic questions. It is clear that the Chief Electoral Officer has made assumptions.

Th other fact that jumps out from the pages of the decision is that Conservative Fund Canada took the step to obtain a ruling from the Canada Revenue Agency, GST/HST Rulings Directorate. These bureaucrats deal with the GST legislation and the CRA's administrative policies on a daily basis. A ruling can help a taxpayer make an informed decision. A ruling can also be technically incorrect and that is why there are many GST objections/appeals that are appealed to the Tax Court of Canada.

Without giving away too much, the morale of this case is that the advice of a lawyer with specialize expertise is missing and, maybe, the dispute could have been avoided if advice was sought.