June 2008 Economic Digest - Importing and Exportin

June 2008 Edition

GREENHOUSES


After a long period of continuous growth, greenhouse expansion in Canada stalled in 2007 because of the rising value of the Canadian dollar and higher labour and energy costs. Total greenhouse area under plastic and glass was down last year about one per cent to approximately 20.9 million square metres. Greenhouse operators reported sales of C$2.3-billion. Producers of flowers and plants accounted for two-thirds of total greenhouse sales but, for the first time since 1993, the vegetable area, which was 10.7 million square metres, exceeds plant and flower area which stood at 10.3 million square metres.

TRENDS

A new regulation in New York City requires restaurants that are parts of chains with at least 15 outlets across the country, to post calories on menus and menu boards. This will include fast-food places like McDonald's and Wendy's. The New York State Restaurant Association had vigorously opposed the rule in court claiming that it violated the First Amendment.

VACATIONS

The average working Frenchman spends 37 days each year on vacation, with Italy in second place with 33 days. Britain trails with 26 days of holiday per year, a rise of two days in two years. America comes last with just two weeks off.

JUNGLE

The Madre de Dios region of Peru has been undergoing an ecotourism boom. More than 70 "eco-lodges" cater to tourists from around the world eager to experience a few days in the Amazon. Last year more than 60,000 foreigners visited the area, a 20-fold increase over 15 years. Its success stems from two factors. First, the region comprises vast areas of pristine rainforest, and it is also easily accessible.

MINING

The number of mining deals around the world rose 69 per cent in 2007 with much of the activity happening in Canada. The total value of those transactions was US$158.9-billion, up 18 per cent over 2006. Of the 2007 deals, Canadian companies were targets 32 per cent of the time, up from 23 per cent the year before. Canada was followed by Australia and China. Canadian companies were also the majority of acquirers. They purchased 41 per cent of the time, up from 34 per cent the year previously.

KOSOVO

Some of the statistics from this country's US$3.5-billion economy are surprising. The U.N estimates that 1.2 billion euros worth of goods came into the country while just 100-million euros worth went out. Cash sent from abroad was worth a sixth of the total value of the economy. Kosovo's largest export over the past few years has been scrap metal which is estimated to represent half of Kosovo's export value.

GAS

Recent research shows that in 2007, the gasoline share of consumers' weekly spending in the U.S. ranged from 12 to 16 per cent and is expected to reach 19 per cent this year. Consumers report that they are combining errands and trips, eating out less and doing more things at home to counterbalance rising gas prices. With more than 146,000 U.S. locations, convenience stores are the preferred stop for fuel consumers, attracting nine times more gas buyers than warehouse clubs or grocery stores.

POTATOES

After wheat and rice, potatoes are the world's third most important food crop. In 1991, the world potato production was around 257-million tonnes. In 2007, this figure was 321-million tonnes. There are 110 calories in a medium sized potato and five kilograms are required to produce a litre of vodka. In 2007, China led the world producing 72-million tonnes of potatoes, followed by the Russian Federation, 36-million, India, 26-million, Ukraine, 19-million and the U.S., 18-million tonnes. Each year, farmers around the world produce about 600-million tonnes of wheat.

STIRRING

The teaspoon could become a thing of the past after the invention of a mug that can stir liquid by itself. All the drinker has to do to work the clever cup is gently swirl it. This sets in motion a ceramic ball positioned in the bottom of the mug that stirs the contents.

HOGS

The Canadian government is planning to pay hog farmers up to C$50-million in total to slaughter as many as 150,000 breeding swine. Farmers will receive $225 for every hog they kill and must stay out of the hog business for three years. The $225 price is about four times what a farmer would get for a culled hog on the market today. This cull will reduce Canada's breeding herd by 10 per cent and is the only way to save thousands of hog farmers across the country. Rising food prices and the Canadian dollar having been putting many hog farmers out of business.

MEETINGS

More than 70-million people attended meetings and conferences across Canada in 2006, generating more than C$23-billion in spending. 670,000 meetings were held in Canada in 2006 and 43 per cent of the participants were visitors, including 2.3-million who came from the U.S. or other countries.

ECO-FRIENDLY

With Americans increasingly expressing environmental concerns, manufacturers are taking steps to convey the eco-friendliness of their products. The number of new products with an environmentally friendly claim has grown substantially in the past five years. In 2002, only five such products were launched but in 2007 there were a staggering 328 which was an increase of 200 per cent from the year before. People especially look for eco-friendliness when shopping for household paper products (66%), food (57%) and energy efficient appliances (48%). It is estimated that 200 million American now buy green products.

ART

China's art market overtook France's for the first time last year in world rankings which are still dominated by New York and London auction houses. The global art market, which comprises sales of fine art works--paintings, drawings and photographs--saw an overall rise for the seventh year running, with revenue up 44 per cent on the previous year. China accounted for 7.3 per cent of world sales, after a massive 78 per cent rise.

LIGHTS

An American inventor based in Britain has won a prize for his Rectiv cycle jacket which changes colour as the cyclist brakes. This was the result of him wanting to feel safer cycling around London. The jacket uses an accelerometer to sense movements, changing the colour of LEDs in the back from green when accelerating to red when braking. A tilt switch in the jacket also makes the LEDs in the arm flash amber when the wearer lifts their arm to indicate a turn.

MONEY

A new report suggests that the Canadian Mint should scrap the 1-cent coin, eliminate the nickel, replace the $5-bill with a coin, adding 20-cent and smaller 50-cent coins, and eventually consider creating a $200 bill. Ottawa should immediately scrap the 1-cent coin which is increasingly obsolete, has so little purchasing power that people routinely refuse to accept it, throw it out or stockpile it. The hoarding phenomenon is part of the reason that coin production rose sharply in 2006, particularly of pennies which jumped 51 per cent to 1,160 million pieces and cost $150-million to produce.

RIGHT TURNS

A major global courier company redesigned its routes so drivers would make a minimum of left-hand turns, thus reducing vehicles idling in traffic burning fuel and releasing emissions. As a result, the company shaved more than 48-million kilometres off its deliveries in 2007, saving the cost of more than 11-million litres of gas. It also reduced the truck emissions by 32,000 tonnes (equivalent to 5,300 passenger cars).

EXPORTS

The U.S. now accounts for less than 80 per cent of the market for Canadian exports, the lowest level since 1992, before the NAFTA took effect. China has now risen to third place among Canada's export partners displacing Japan. Britain is in second place. The U.S. is still by far the No 1 buyer of Canada's products absorbing C$354-billion worth. Canada's exports to China rose 21 per cent in 2007 and by 26 per cent to Europe in the same period.

RETAIL

Despite economic uncertainty, online retail sales in the U.S. are forecast to increase 17 per cent this year to a record US$204-billion as consumers continue seeking the convenience of shopping via technology. Internet retail sales, excluding travel, are expected to comprise 7 per cent of total retail sales this year, up from 6 per cent or $175-billion in 2007.

NEW ZEALAND

Wine overtook wool exports in value for the first time and is now New Zealand's 12th most valuable export worth US$610-million, up from $94-million in 1997. Last year, the wine industry sold 1-billion glasses of wine in nearly 100 countries. Exports to Australia are buoyant and New Zealand accounts for over 10 per cent of wines sold in Britain and interest in the U.S. is picking up too.

HOARDING

Rice prices have hit new highs and farmers across Asia are hoarding their crops, raising the prospect of a shortage in Asia and Africa that could lead to widespread unrest. Prices in Asia have doubled since the beginning of the year, driven higher by rising demand, a steady depletion of government stockpiles and a pest outbreak in Vietnam, the world's second-largest exporter after Thailand. Governments around the region are curbing exports to safeguard domestic supplies putting further pressure on prices.

AUCTIONS

An oversized six sheet poster for the 1933 film classic King Kong fetched US$345,000 to top all items in a two-day auction of Hollywood memorabilia. The auction raised $4.1-million from the sale of 1,100 pieces. A velociraptor from Jurassic Park went for $115,000 and a complete Batman costume for $103,500.

NEWSPAPERS

The U.S. newspaper industry has experienced the worst drop in advertising revenue in more than 50 years. Total print revenue in 2007 plunged 9.4 per cent to $42-billion compared to 2006.

DANCING

Salsa has become the biggest international dance craze since the advent of rock'n'roll in the 1950s, and dwarfs even the popularity of the tango during the 1920s. It has spawned a new niche for the tourist industry and is now a major cultural export with almost every city in Europe opening clubs offering classes at all levels. Salsa is also a passion in Japan and is taking hold in India and China.

WOMEN

According to a new UN report, women are still discriminated against in almost every country around the world, despite that fact that 185 member UN countries pledged in 2005 to outlaw laws favouring men. 70 per cent of the world's poor are women and they own just one per cent of the world's titled land.

MOVIES

An Australia-based chain is to introduce the first $35 movie experience this October in Redmond, WA. Luxury touches will include: digital projection, Dolby sound, reclining seats with footrests, seat-side food and beverage service, valet parking. A lounge area will have a full bar and serve entrées. Each of the seven auditoriums will have no more than 40 seats.

Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.

Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp

Canadian Customs Broker in the news..

You may have read an article about a Canadian Customs Broker being sentenced to jail after being convicted of evading more than $4.7 million in duties and taxes.

According to the CBSA - "What he did was submit accounting documents claiming a GST exemption code - so no GST was charged even though the goods did not qualify for the exemption," Giolti said. "In addition, rather than account for the goods in the correct currency such as. U. S. dollars, he would claim other currencies so the values would be less.
”However, when he billed the client, he would then bill the right amounts owing: GST and the right currency rate."

This may be unsettling for our customers and I thought I would address our process and systems should you have any questions. There are 2 main things we to do make sure we are compliant -

1) We have a very extensive compliance checking process where we have both the supervisors and managers of our various departments and branches check their people's work for compliance issues. We also have a compliance department that checks the supervisors and managers work for errors or omissions. We are very confident in our people's abilities to catch errors or omissions and a number of our customers have been audited with good outcomes such as this one.

2) We have what we call a "Duty Exception Report" which cross references our customs entries to confirm that what was paid out was billed out. If there is an exception - it goes on this report for our people to check into and fix. It also works in both directions. So, if we paid customs $100.00 in Duty, but we billed our customer $150.00 in Duty - it immediately goes on a report to fix. And, likewise, if we paid customs $150.00 in Duty, and billed our customer $100.00 in Duty - it goes on a report to fix.

I like to keep an open line of communication on this type of issue both for our customers and for our employees.

If you have any questions, please do not hesitate to contact me.

May 2008 Economic Digest - Importing and Exportin

May 2008 Edition

CONTROL

 
Next year in California, state regulators are likely to have the emergency power to control individual thermostats, sending temperatures up or down through a radio-controlled device that will be required in new or substantially modified houses and buildings to manage electricity shortages. The changes would allow utilities to adjust customers' preset temperatures when the price of electricity is soaring. Customers could override the utilities' suggested temperatures but in emergencies, the utilities could override customers' wishes.

GEOLOGY

Major Canadian mining companies are paying geology grads 44 per cent more than three years ago giving them higher salaries than the average MBA graduate in the U.S. Demand from developing nations including China has helped prices of gold, silver and copper more than double in that time. Canada is home to three of the world's largest gold producers and will graduate 1,200 new geologists this year to fill 9,000 positions in the country's mining industry. The average salary will be C$90,700. The average salary for a U.S. MBA is US$85,700.

WEALTH

Russia now has 101 billionaires, the most in the world after the U.S., which has 415. Germany is third with 60. Bountiful reserves of oil, gas and coal and soaring commodity prices have brought money pouring into the country.

ACCESS

Mobile phone coverage is now available along the entire climbing route of Mount Everest. Yaks and porters were used to transport the equipment for a transmission station 6,500 metres up the side of the mountain.

SIZE

Some of the new megayachts are so big that they have to dock in commercial ports. The growth in the number and size of yachts is also making it hard to find qualified crew members. It takes four years to build a yacht and prices are rising so quickly that some owners are selling their boats before they're even finished, for a tidy profit. There are 2,000 superyachts in the world today over 120 feet long. The longest, presently being built in Germany, will be over 530 feet when completed.

IMMIGRANTS

A record 429,649 foreigners came to live in Canada last year, many of them needed to address Canada's labour shortages. More than 251,000 permanent residency permits were issued and some 178,000 came on a temporary basis. More than 900,000 are still waiting for the immigration ministry to process their applications, some of whom have been waiting for up to six years.

ASTROTURFING

This is an umbrella term for any sort of fraudulent message masquerading as grass-roots word of mouth. It comes alongside a continued explosion in the world of viral marketing--self replicating techniques that use text messages, video clips, images and other means to encourage people to pass on a marketing message voluntarily and spontaneously. Viral marketing has grown 39 per cent in the last year alone, generating nearly $1-billion. Some 65-million American consumers shared their personal views on products with others online according to a recent study.

MAMMALS

Of all the mammal species that have become extinct in the past 200 years, nearly half are Australian. Since the country was colonized, 27 mammals, about 10 per cent of the total, have disappeared. Most Australian species are unique to the continent so when one vanishes, the loss is felt globally.

OIL

Britain was once the sixth-biggest producer of oil and gas but her share of the North Sea is now in decline. Production peaked in 1999 at 4.4-million barrels a day and has since fallen to 3-million and a target to maintain this level until 2010 looks certain to be missed. Presently, the industry supports 400,000 jobs and the oil and gas industry is now the biggest corporate contributors to the treasury, paying three-quarters of the US$26-billion paid in corporate taxes last year.

TECHNOLOGY

When the United Nations imposed a ban on trade in Liberia's logs in 2003, Liberia was synonymous with uncontrolled and environmentally devastating logging. Now a system has been set up to track all of Liberia's timber. Future lumber concessionaires will be required to attach a barcode to each tree they fell and to the stumps they come from. A corresponding entry in a database will record the origin, species, size and destination of each log. In theory this should make it much harder to forge paperwork and easy to catch those who misrepresent the amount of wood they have harvested.

EXPENSIVE

A recent survey by economists lists Oslo, London and Copenhagen as the three most costly cities in Europe and Dublin is now in fourth place. In Asia, Tokyo is the most expensive, followed by Seoul, Singapore and Hong Kong. By contrast, cities in the U.S. have become cheaper because of the weaker dollar.

VALUE

The share price of two shipping companies in Hong Kong have increased fivefold in the last two years. Meanwhile staggering sums have been made in private transactions. Ships generally fall in value as they age yet an iron-ore carrier built for $31-million in 2001 was sold for $150-million in 2007. It was immediately leased out on a long-term contract, making a vast profit for the buyer, even after that made by the seller. An oil tanker built for $142-million and still under construction was recently sold for $168-million.

INVENTIONS

Japanese scientists recently unveiled an invention, code named Smart Goggle, which not only records what the wearer of a pair of glasses is seeing, but recognizes it. The glasses can playback footage of when the wearer last saw an object, a remote or car keys for example. Initially, the user has to tell the glasses the name of everything that he or she looks at and the glasses will remember. They can then locate the last time the object was seen if it is misplaced.

COUPONS

Valpac, a company formed in 1967, invented the concept of its trademark blue coupon-stuffed envelopes sent to 45-million homes each month. Today it is an advertising giant that earned about $250-million in revenue last year. It has about 200 franchises across North America which expect to ship 20-billion coupons this year in 520-million envelopes from its massive $220-million facility in Florida.

BUTCHERS

A meat industry spokesperson in Britain recently claimed that high street butchers shops are closing at a rate of 23 a month. In 2000, there were 9,081 butchers in Britain but last year there were only 7,186 according to the tax authorities. The decline is largely caused by the dominance of the giant supermarkets.

CONCRETE

One of the most common building materials in the world today is concrete. However, it is one of the major sources of carbon dioxide (CO2) emissions which contribute to global warming. Between 5 and 10 per cent of global CO2 emissions are related to the manufacture and transportation of cement, a major ingredient in concrete. Manufacturers are experimenting with using organic waste materials as a substitute for some of the cement in concrete. These materials, such as fly-ash, produced when coal is burned, could replace up to 25 per cent of the cement in a mix.

SHOPPING

The Nielsen Co. reports that U.S. consumers are making fewer shopping trips across most retail outlets as they look for ways to combine errands and save money in an effort to battle rising gas prices and other economic pressures. While shopping frequency across most retail channels is flat or declining, supercentres continue to show growth.

TRAINS

Travellers are increasingly using trains to get around Europe. High-speed rail operators are ambitiously adding routes and cutting travel times to compete with the short-haul airline market. Spain, at the forefront of the boom, recently got high speed service between Madrid and Barcelona cutting the journey to two hours, 35 minutes, down from four hours. Switzerland has opened a 35-kilometre tunnel passing through the Alps cutting the travel time to Italy by over an hour. The travel time from London to Paris is now down to two hours, 15 minutes.

TRAVEL

The Commerce Department recently announced that America ran a US$17.8-billion travel surplus in 2007, more than double the 2006 figure. Arrivals from Canada were up 11 per cent; from Mexico, up 13 per cent. Visits from many west European countries, China and India also increased by double digits. The weak dollar and high oil prices also encouraged Americans to take their holidays near to home, providing a further boost for domestic tourism.

FAKES

Only three 1967 P4 Ferraris were ever built and now each is worth in the millions. Recently one turned up that proved to be a fake made in a garage in Thailand that was about to be shipped to Europe. It replicated the original in every visible detail and is an example of the genius of counterfeiting that is flourishing and is estimated to be worth $600- billion worldwide costing billions in lost revenues. Today, reverse engineering can take place at a keystroke as counterfeiters using 3D laser scanners and software develop a perfect copy in record time.

PETS

Among the affluent in China, keeping pets has become the rage, even though some Chinese still consume dog and cat meat. Spending on pet food and pet care In China will be worth US$870-million in 2008, up about 15 per cent from the $757-million spent in 2007. There were nearly 11-billion pets in China in 2007, the majority being birds, fish and reptiles. It is estimated that there are 150-million pet dogs and 11-million pet cats. Beijing has 120 restaurants that serve dog meat.

BRIDGES

China has revived a plan to build an 18-mile bridge linking Hong Kong, Macau and the mainland. Officials will seek private partners to help fund half of the US$6-billion costs. Private companies involved would see their investment returned in part through tolls. The bridge is the latest in a series of grand projects undertaken by Beijing as the economy booms.

DOOMSDAY

Plans are being made to erect a "doomsday arc" on the moon containing DNA, embryos and all the essentials of life and civilization, to be activated should Earth be devastated by a giant asteroid, a climate flip or nuclear holocaust. The information bank would provide survivors on earth with a remote-access toolkit to rebuild the human race. A basic version of the arc would contain hard discs holding DNA sequences and instructions for metal smelting and planting crops to be buried in a vault under the lunar surface. Transmitters would send the data to heavily protected receivers on Earth.

ROMANCE

It seemed romantic when the man in England had the florist put the $12,000 engagement ring in the helium balloon for him to give to his girlfriend. The plan backfired however when the wind caught the balloon and it sailed away never to be seen again.

Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.

Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp

What to do when you get audited.

If you are either being audited or are notified that you are going to be audited - it is very important that you contact your customs broker as soon as you are made aware.

Your customs broker can save you countless hours of time and energy by providing information to Customs on your behalf. A customs broker keeps excellent books and records of your imports and should be able to quickly gather the information that Customs is looking for.

A Customs audit should not be a scary process. Many of our importer clients have been audited and both the importer and ourselves have been satisfied with the outcomes of the audits we have seen.

We are by no means perfect - but we do take compliance very, very seriously.
Here are some ways that we strive for compliance -

• We have an in house Consulting and Compliance Team that has many years of experience in Compliance, Tariff, Valuation and Origin issues.
• We send out a "Self Compliance" document with every invoice as a double check for our clients to review their shipments for accuracy.
• We offer online tutorials to educate importers and exporters on the importance of compliance.
• We have an intensive entry checking process to review for errors and ommissions.
• We have highly trained, knowledgeable, qualified people handling our clients work.

Customs audits can be a scary process - but it doesn't have to be if you're taking a big picture approach to compliance.

Contact your customs broker for more information.

Happy Earth Day

Earth day is April 22 - http://en.wikipedia.org/wiki/Earth_Day

Here at A & A, we have been doing some things to lessen our impact on the Earth.

Below is a list of items that we have started - 

• Installed motion activated lighting in washrooms
• Installed motion activated lighting in infrequently used rooms
• Purchasing energy efficient PC's, Notebook and servers
• Recycling old, outdated PC's
• Shutting down PC's overnight for Earth Day
• We black-out monitors after 5 minutes of idle time
• Using half the lights in the IT office
• Turning off server room lighting
• Encouraging no printing on Earth Day and as little printing as possible always
• Defaulting printers to two sided on Earth Day
• Lower wattage bulbs in our office lighting
• Recycling programs in our offices
• I drive a Hybrid vehicle

We consider the environmental impact before making a purchase of a product or service.

An Earth Day logo will be on our website today and tomorrow to 'inspire awareness of and appreciate for the Earth's environment.' 

I believe this quote sums things up very well "WE DO NOT INHERIT THE EARTH FROM OUR ANCESTORS: WE BORROW IT FROM OUR CHILDREN."

Congratulations on a record breaking Sun Run!

Our first (and definitely not our last!) Vancouver Sun Run team had a fantastic day on Sunday. Despite it being one of the coldest days in Sun Run history, our people braved the elements and walked, jogged and ran their hearts out!


The rolling wave start meant that some people had finished the race before others even crossed the starting line. The Sun Run organizers do a fantastic job of keeping the event flowing.

When the finish line came into sight - everyone turned on their jets and it was a sprint to the end.

We're a little sore today and that memory will soon fade as we start setting our goals for next year's run!
Congratulations to everyone who participated in this wonderful event - and an extra special congratulations to all of the "Team A & A" runners!

Say hello to our Vancouver Sun Run Team

This Sunday, April 20th, the "Team A & A" corporate Sun Run Team will participate in the 24th annual Sun Run in Vancouver, B.C. (We are ignoring the forecast for rain / snow!)

The Sun Run has broken registration records with over 55,000 people this year! To put that into perspective - this event is almost double the size of some of the largest marathons in the world, and double the size of the Honolulu Marathon.

For Vancouver-ites - the total attendance will be the equivalent of 3 Vancouver Canucks hockey games spilling onto the streets! Not for the claustrophobic!

Back to our A & A Sun Run Team - I am very proud of our first corporate team. They've been training hard. Walking, jogging, running - eating well, drinking a lot of water in anticipation for the big 10K event. For many of them, it is their first time going this distance. For others, they are dusting off their running shoes and getting back at it.

I look forward to doing a re-cap after the big day on Sunday. Good luck everyone - it's a great accomplishment!

April is Wellness Month at A & A

Each week we will have a different theme to focus our awareness:

· Week 1: Mind/Body/Spirit: this week will jumpstart our wellness month by focusing on the holistic approach—our physical, mental, spiritual and emotional dimensions.

· Week 2: Nutritional Fitness: this week we’ll focus our attention to how we fuel our bodies and how that relates to our health and happiness.

· Week 3: Emotional/Mental Health: we will look at ways to challenge our minds, relax our bodies, and focus on positive thinking.

· Week 4: Physical Fitness: we will take this week to focus on how to achieve our goals & on how taking care of our bodies takes care of our minds and emotions.

We will also be taught how to properly set up our desk chair, keyboard and monitor to ensure we are practicing the best ergonomics.

So, when I saw this video recently, I had a good chuckle -

Our Customer Service options

Over the years, we have found that there isn't a one-size-fits-all approach to serving you when you have questions or requests for information.

We believe we've done a great job at providing a number of options for you, and I'd like to outline some of those here -

1) Telephone - We take pride in the fact that we have multiple receptionists to take your phone calls. Our goal is to answer the calls within 2 rings and either provide you with the answer right there or transfer you only once to a live voice for further help.

We don't have an automated answering service - because we have been told that you like to call and talk to a a human. Frankly - don't we all? We also dislike 'voice mail jail' - when you can never seem to get a hold of a human and can't get out of voice mail. If you ever get transferred to a voice mail on our system and decide you would like to talk to someone rather than leave a message - you can simply press "0" and get back to a live voice. We are open 24 hours a day, 7 days a week with our own people and they can get your answer for you.

2) Fax - We have all of our phone and fax numbers listed here on our Contact Us page - http://www.aacb.com/contact/index.asp

3) email / Internet - We are very proud of the system that we have implemented for our email and online requests. Our Online Customer Care Centre - http://aacb.custhelp.com/

We have hundreds of Frequently Asked Questions posted here. If you have a question that is not posted, you can Ask a Question and we will respond. The system automatically generates a response to you to let you know that we have received it and are processing it.

Any questions that you ask are stored in your own personal database that you can refer back to anytime.

There are also other options such as asking to be notified if the answer ever changes (Customs regulations constantly change.), and another feature lets you email the question and answer to yourself or a colleague. All at the push of a button.

So, whether it's phone, fax or email - we treat each of your requests with the same high priority to make sure they are treated with a sense of urgency.

Please try them out and let me know what you think.

April 2008 Economic Digest - Importing and Exportin

April 2008 Edition

ROSES

 
After a tentative start in the 1980s, the cut flower industry has become Kenya's third-largest foreign currency earner. From the colossal greenhouses that line the shores of Lake Naivasha, some 25 per cent of Europe's cut flowers now come from Kenya bringing in US$120-million each year. The top two earners, tourism and tea, have been wrecked since the disputed election last December.

SPACE

Amsterdam is going underground as overcrowding and soaring land prices force planners to look beneath the city's famous canals for future urban development. Residents of the historic houses that line Amsterdam's central canals have to wait seven years for parking permits and a garage space can cost as much as $150,000. Dutch engineers have unveiled plans for a US$15-billion underground city providing one million square feet of underground retail, leisure and parking facilities. Construction work is expected to last up to 20 years.

REPAIRS

Two groups, one in the US and one in the UK, are trying to create composite materials such as reinforced plastics that will mend themselves if they get cracked, in much the same way as animal's broken bones will heal. The difference is that these materials heal in minutes rather than months. Such materials will be welcome in high-stress applications that are difficult to inspect regularly (the blades of wind turbines for example) or are critical to safety (such as the doors and window-frames of aircraft).

COINS

The U.S. Mint plans to use less copper and nickel, but more zinc as it increases penny production and cuts back on nickels, dimes and quarters. The Mint's zinc needs will increase by approximately one million kilograms while its copper use will decline by three million kilograms and its nickel use will fall by 300,000 kilograms. The agency says its metal needs reflect a shift in its product mix of coins based on demand, not higher metal prices.

COPYRIGHT

The European Union is seeking to extend copyright protections for performing artists to 95 years, instead of the current 50 years, as is the case with composers. In comparison, novelists and playwrights enjoy protection for their life and 70 years afterwards. Copyright protection for performers in the U.S. is 95 years from release. In Australia it is 70 years.

CROPS

According to the Food and Agriculture Organization (FAO), over the past century, about 75 per cent of the world's crop varieties have been lost. UN researchers say we now rely on just three crops: wheat, rice and maize. Efforts are presently being made in some less-developed countries to re-introduce crops that could be profitable such as millet, which has a high nutritional value, and cassava, which is also known as tapioca.

TEA

The American specialty tea market has almost quadrupled in 15 years and is now worth around US$6.8-billion a year. America's health drive over the past two decades has triggered a boom in the specialty teas, credited with lower caffeine levels and antioxidants. Two centuries after the Boston Tea party, English tea is no longer seen as a symbol of oppression, but as an aid to health.

WIND

Overturning all previous records, the U.S. wind energy industry installed 5,244 megawatts of power in 2007 which will power the equivalent of 1.5-million U.S. households annually. This expands the nation's total wind power generating capacity by 45 per cent in a single calendar year and injects an investment of over US$9-billion into the economy. This is the third consecutive year of record-setting growth establishing wind power as one of the largest sources of new electricity supply for the country. The U.S. wind power fleet now numbers 16,818 megawatts across 34 states.

PHONES

This year, the number of cellphone users will overtake the number of non-users for the first time. Ownership rates in developing countries are rising fastest, with Brazil, Russia, India and China alone accounting for one billion subscribers last year. In 2000, only 12 per cent of the global population had a cellphone.

SAND

Scientists are trying to find out how dust is affecting marine biology and, in turn, the ocean's ability to soak up the greenhouse gas carbon dioxide. Each year, about 1,700-million tonnes of dust are produced by deserts around the world and about one-third of this falls into the oceans. The North Atlantic receives the most dust thanks to its proximity to the Sahara Desert. This sprinkling of sand can be critical for marine life in the area.

ITCHING

Designers have developed pyjamas that regulate body temperature, stop itching and ensure a good night's sleep, it is claimed. The nightwear, which is produced from a fabric called Dermasilk, can also help reduce the itching endured by sufferers of skin disorders such as eczema and dermatitis. The pyjamas have been developed for Travelodge, the hotel chain, which carried out a survey to discover what kept people awake. The sleepwear will be tested by customers at five hotels in the U.K.

FLIGHTS

A quarter of domestic flights in the U.S. failed to arrive on time in 2007, the industry's second poorest performance on record. More than 26 per cent of commercial flights in the U.S. arrived late or were cancelled last year as rising passenger demand and a industry preference for smaller planes intensified congestion in the skies and on runways. The only time passengers had more difficulty getting to their destinations on time was in 2000 when more than 27 per cent of flights were tardy or cancelled. Back then there were 31 per cent fewer flights than in 2007.

COAL

Flooding in Australia, snow in China and power outages in South Africa have put a massive crimp in the world's coal supply. The deepest problems are in the Australian State of Queensland which is said to supply 70 per cent of the global coking coal market. Coking coal, also called metallurgical coal, is used in the production of steel. It now seems inevitable that coal prices will reach record levels in 2008.

ONIONS

A tear-free onion that should be tastier and healthier has been created by using genetic tinkering to turn off the enzyme that makes us cry. It is anticipated that the health and flavour profiles of the onions will actually be enhanced. The onions can be chopped without painful, stingy, weeping eyes. It is predicted that tearless onions will eventually become mainstay in household kitchens around the world.

GOLD

Sky-high gold prices did little to curb demand for jewellery in India, China and some other Asian countries in 2007. Gold surged more than 30 per cent last year, peaking at a 28-year high of about US$845 an ounce. Jewellery consumption rose to 558 tons in India, the world's largest gold buyer in 2007 from 526 tons in 2006. The big marriage season starts in April when speculation is that gold may reach $1,000 an ounce. Gold jewellery is the most common gift during religious events in India and forms an essential part of a dowry.

CARGO

A cargo train arrived in Hamburg recently on a trial run from Beijing after making the trans-Siberian journey in 15 days, half the time it would take to transport goods by sea, and underscoring growing trade between Asia and Europe. The train crossed through Mongolia, Belarus and Poland. Train transportation is quicker than moving cargo by sea and significantly cheaper than airlifting goods from China.

BEACHES

Grain by grain, Miami Beach is losing the fine, bone-white sand that draws five million tourists a year and pumps US$8-billion into the economy. In places, the Atlantic Ocean is now only six metres from the shore, the result of incessant winds and water erosion, not global warming and rising seas. The city is asking for federal help to lift a 21-year-old ban on importing sand.

WATER

China is planning to divert billions of gallons of water hundreds of miles from drought-stricken regions to feed Olympic development in the capital Beijing. Workers are struggling to finish a huge canal to meet a surge in demand for water, fuelled by construction projects and the hundreds and thousands of athletes and visitors at the games in August.

TIMESHARES

The slump in the American real estate market has made things harder for those trying to sell timeshares, though resale problems are worldwide. With a generation of adults approaching retirement and hoping to relax more, sales of new timeshares in the U.S., the biggest market, have nearly doubled over the last five years. Sales in the U.S. reached nearly $10-billion in 2006, about five times the rate of a decade earlier. In Europe, more than 1.4 million people own timeshares, with annual sales of more than $1.5-billion.

TRENDS

As part of a turnaround plan, the coffee giant Starbucks has announced that it will discontinue warm breakfast sandwiches at its stores and focus instead on healthy breakfast options and high quality baked goods. The company is to open 1,175 new restaurants in the U.S. during this budget year, down from its previous goal of 1,600. It will close 100 underperforming locations in the U.S. The company will open 75 more stores abroad than originally predicted, for a total of 975. U.S. sales have been battered by a weak economy and increased competition.

BOOKS

More books are sold on the Internet than any other product, and the number is increasing. A recent survey of 26,312 people in 48 countries, 41 per cent of Internet users has bought books online. Two years ago, 34 per cent of Internet users had done so. Much of the increase is in emerging markets such as South Korea and India.

FARMING

The world is set to see the first vertical farm which is going to be developed in Las Vegas. The 30-storey project is designed to be a functional and profitable working farm that will grow enough food to feed 72,000 people for a year. The structure will house 100 crops ranging from strawberries to lettuce. Even growing miniature banana trees may be possible in each floor's specially controlled environment. Although the initial cost of the project is high, the vertical farm should be as profitable as a casino.

BISON

Pushed close to extinction as the Prairies were ploughed, bison are increasingly find a home on Canadian farms. Between 2001 and 2006, the number of bison on farms increased by more than a third to over 195,000 head. Bison producers are concentrated in B.C. Alberta, Saskatchewan and Manitoba. Alberta had 49 per cent of the herd and 46 per cent of the farms. In 2006 exports of bison meat totalled 2,075,000 kilograms and live bison exports peaked at 13,255 animals.

LOOT

An international criminal gang have set their sights on stealing a new type of loot that is making them millions, top-of-the-range tractors. Hundreds of cumbersome agricultural machines are being stolen from farms across rural Britain and smuggled abroad in an operation worth US$6-million a year.

Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.

Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp

Borderlineups.com and Ferrylineups.com and long weekends

For a number of years, A & A has owned and operated http://www.borderlineups.com . We re-designed this website last summer with some great input from the frequent visitors.

We then expanded that to http://www.ferrylineups.com/ as a bit of a service for people using the ferries to see what the traffic is like as well as a simple website with some useful links like ferry reservations, bus schedules, etc.

These sites get views from all over the world from people who are interested in checking the weather or who want to check out the area. They also have a lot of local appeal to transportation companies checking on border congestion or cross border shoppers looking for the best route to take.

The long weekends, like the one we just had, always show a spike in traffic as people are gearing up for travel.

I am always interested to hear how we can improve these sites for the visitors so that we can make them more useful for you.

Please take a look and let me know.
Thank you.

Using our Vehicle Import Cost Calculator

Once the Canadian dollar started heading towards par with the U.S. dollar, it became very economical to consider purchasing a vehicle in the U.S. and importing it into Canada.

There are 3 'big' questions when importing a vehicle from the U.S. (Or, from overseas for that matter.) They are -
1) Is my vehicle allowed into Canada? Some vehicles are inadmissible by Transport Canada.
2) How can I get my vehicle from the seller to my door?
3) How much will all of this cost?

We have been upgrading our Vehicle Import Cost Calculator and it now answers all 3 of those big questions.

You can try it out here - http://www.borderbuddy.com  Once you're finished with the quote, you can email it to yourself for future reference.

The calculator has a nice feature that allows you to put in an eBay item number if you are looking at a vehicle on eBay Motors.

You can read more about vehicle importing requirements on our vehicle importing services page.

Eagles in the City - Vancouver

A & A is proud to be a sponsor of "Eagles in the City" in Vancouver.

Last year, we purchased a number of "Spirit Bears" at auction benefiting the BC Lions Society.

We have the bears at our Pacific Highway / Surrey B.C. office, at our Blaine, Washington office, at our family cabin and at the City Hall in White Rock, B.C.

This year - the BC Lions Society is doing "Eagles in the City" and A & A is a sponsor. This means we will sponsor our own artist and have our own Eagle.

We were at the media launch on Thursday, March 6th and were excited to see our 'blank canvas' Eagle. Vancouver Mayor Sam Sullivan was on hand along with the BC Lions President and the President from the Vancouver Board of Trade. Our artist, my cousin Barbara Roden, was also there for the unveiling.

Here are a couple of pictures of the event -









The Eagles will be officially unveiled in March/April of 2009 and will remain on display until April 2010.

This event was also published in The Vancouver Province and Barbara was quoted!

We are looking forward to keeping everyone updated as the events unfold for this great cause.

The Power Within 2008 - Vancouver

On Wednesday, March 5, I attended The Power Within in Vancouver at GM Place. Attending with me were my wife and 5 people from our Pacific Highway branch - all of whom wrote a letter describing their desire to attend this uplifting and motivating day. We picked the top 5 submissions to join us.

The following presenters told their own stories -

Martha Stewart, International Business Icon, Best Selling Author, “Martha Stewart’s Homekeeping Handbook”, Television Host, “The Martha Stewart Show” on Creating a Brand

Quincy Jones, 7 Time Grammy Award Winner, Composer, Film Producer and Multimedia Entrepreneur on Creativity

Andre Agassi , 60 Career Singles Titles, Eight Grand Slam Tennis Championships, and founder of The Andre Agassi Charitable Foundation (AACF) on Motivation

David Allen, Best Selling Author, “Getting Things Done: the Art of Stress Free Productivity” on Time Management

Christopher P. Gardner, Author “The Pursuit of Happyness” on Personal Inspiration

Frank Abagnale – “Catch Me if You Can” on Learning from Experience

Loretta LaRoche, Best-Selling Author “Life is Short, Wear Your Party Pants” on Stress Management

It was a great day of learning.

March 2008 Economic Digest - Importing and Exportin

March 2008 Edition

TOURISM

 
Canada is threatening to haul China before the WTO for discriminating against Canada by refusing to negotiate a tourism agreement that could provide billions of dollars for Canadian tourism businesses. Canada believes it could attract at least 700,000 and perhaps a million Chinese tourists annually if it wins an agreement known as "Approved Destination Status (ADS) which Canada has been seeking since 1999. Without an ADS, Canada is banned from advertising itself as a tourist destination in China and Chinese tour groups are prohibited from going to Canada.

BUMBERSHOOT

This is another name for an umbrella. A new one should be able to tell Americans when to prepare for rain. The device tracks the forecast for any of 150 U.S. locations. When rain is expected in the next few hours, the umbrella's handle illuminates. Patterns change to indicate rain, drizzle or thunderstorms.

SIZE

Panasonic recently introduced the "life screen," a TV set with a screen six feet high and 11 feet long. It enables viewers to watch everything in life size. The 227-kilogram set is expected to cost around $100,000. One drawback is that the life screen can only be watched comfortably from 30 feet away, making it unsuitable for most living rooms.

TAXES

A new theory hypothesizes that high taxes, not incomes, redistributes people. As proof it is noted that New York State, with maximum personal income tax rate of 10.5 per cent, lost more than 1.9 million people between 1997 and 2006. California with a maximum personal income tax rate of 10.3 per cent lost more than 1.3 million people. In contrast, Florida and Texas, both with a zero tax personal income tax rate, gained more than 1.6 million and 769,000 people respectively.

PIPELINE

The new 1,200 kilometre pipeline being constructed between Vyborg, Russia under the Baltic Sea to Greifswald in Northern Germany is both controversial and a huge technical and logistical challenge. Once construction is completed at the end of 2010, the pipeline will supply Russian natural gas to customers all over Europe. The long-term goal is to supply up to 55-billion cubic metres of gas each year. The project is expected to cost US$7.4-billion, but due to delays could cost much more.

TALENT

Last November, the International Baccalaureate exam, one of the world's most challenging tests of academic proficiency, was taken by 5,500 students from 125 countries. Twenty of them scored the maximum of 45 points and almost half of them were from a single school, the independent Anglo-Chinese school in Singapore. A score of 40 qualifies a student for admission to an Ivy League university in the U.S. or to Oxford in the U.K.

TASTE

Marmalade companies in the U.K are to launch a new form of the orange spread to appeal to youngsters in the hope of halting slumping sales. This market was worth about US$100-million but fell by two per cent in value over the past year because of a drop in demand. One company which has launched an orange spread has also developed apricot and carrot varieties which combine jam and marmalade properties.

DISASTERS

From winter storms in Europe, flooding in Britain and wildfires in the U.S., losses to natural disasters nearly doubled in 2007 to just below US$30-billion globally after an unusually quiet 2006.One large insurer warns that climate change could mean a growing number of weather-related catastrophes in coming years.

VEHICLES

GM executives claim that cars that drive themselves, even parking at their destination, could be ready for sale within a decade. Much of the technology already exists for vehicles to drive themselves such as radar-based cruise control, motion sensors, lane-change warning devices, electronic stability control and satellite-based digital mapping. The most significant obstacles could be human rather than technical; government regulations, liability laws, privacy concerns and people's passion for the control of automobiles.

ELEVATORS

Mitsubishi in Japan has opened the world's tallest elevator testing tower, a 173 metre-high structure. It is worth US$50-million and will be used to conduct research into high-speed elevators to serve the next generation of super tall buildings. It will test new drives, gears, cables and other lift systems. The world's current tallest building is the Taipei 101 at 1,666 feet but it will soon be dwarfed by towers in Dubai, Shanghai, Moscow and Chicago. Even traditionally low-rise London will soon have a 1,017 foot building, the tallest skyscraper in Europe.

LIGHTS

A new type of super-efficient household light bulb is being developed which could spell the end of regular bulbs. Experts have found a way to make Light Emitting Diodes (LEDs) brighter and use less power than energy efficient light bulbs currently on the market. The technology, used in gadgets such as mobile phones and computers, had previously not been powerful enough to be used for lighting.

JOBS

According to analysis of U.S. Labour Statistics, department stores have slashed 247,100 jobs since 2001. Economists believe that technology has played a significant role in the downsizing. The industry spends US$34.5-billion annually on all kinds of in-store and stockroom technology.

TRENDS

The number of Christmas cards sold in Britain has dropped by 20 million in the past two years. The fall has been blamed on the rise of the "eCard," an electronic greeting sent over the Internet or by mobile phone. This is increasingly popular with young people who say it is easier, cheaper and more environmentally friendly than traditional cards. A new survey found that 40 per cent of 16 to 35-year-olds are happy to abandon traditional cards in favour of eCards.

PLASTIC

China is declaring war on "white pollution" choking its cities, farms and waterways and is banning free plastic shopping bags and calling for a return to the cloth bags of old, steps largely welcomed by merchants and shoppers. There is no estimate of the number of bags used in China or the savings in terms of petroleum used to produce them.

KNIVES

The iconic Swiss Army Knife fell out of favour when airlines banned pocket knives and mobile phones and MP3 players vied for pocket space. Still, the strong Swiss-made label and perceptions of quality have recently helped lift sales of the knife by five per cent in the past two years in the face of cheaper competition and imitations. The private company that makes them had sales of US$418-million in 2006 and has now diversified into products such as luggage, kitchen knives, clothing, watches and even a perfume.

WINE

European governments are to pay wine makers to tear out 175,000 hectares of vines yielding low-quality grapes and put quality over quantity in a push to make wines from Chianti to Bordeaux more competitive with "New World" producers. Mass produced wines from California, Australia and South Africa are flooding into Europe. The 27-nation EU bottles and drinks three-fifths of the world's wine.

MAINTENANCE

The value of the global industry for aircraft maintenance and overhaul (MRO) in 2007 was US$41-million. 37 per cent of the work was done in North America, one per cent in India, five per cent in the Middle East, six per cent in China and the balance spread around the world. The market is expected to grow by almost nine per cent a year for the next five years and by 2017 will be worth $62-billion annually with both India and the Middle East increasing their share of the market.

ADVERTISING

Eleven leading companies in the European food and beverage industry have voluntarily agreed to change their policies on advertising for children by the end of 2008, setting standards on nutritional content to encourage more healthful lifestyles. They have agreed not to advertise food and beverages on television programmes, web sites or in the print media where children under 12 could be considered target audience, except for products that meet specific nutrition criteria.

AFRICA

A 14-teraflop Blue Gene supercomputer capable of making 14-trillion floating point calculations per second and worth about $2-million is being donated by IBM to a Centre for High Performance Computing in Cape Town, South Africa. This will be the most powerful supercomputer on the African continent and will be available free of charge to any qualifying African institution for use on advanced scientific projects. The donation is to stimulate scientific and socio-economic progress in the region.

HEALTH

Walt Disney Co., which claims to employ more people in one place than any other company in the U.S., has announced plans to build a medical centre for its workers at its Florida theme park. The $6-million, 15,000-square-foot clinic, to be open nights and weekends, is scheduled to open in 2009.

EATING

Restaurant industry sales in the U.S. are expected to reach $558-billion in 2008. The industry is entering its 17th consecutive year of real sales growth this year. Sales at full-service restaurants are projected to reach $188-billion this year, an increase of 4.3 per cent over 2007. Expanded menu choices, meeting the demand of today's increasingly sophisticated and value conscious consumer and added off-premise options (takeout and delivery) will drive the growth.

FUNDS

Saudi Arabia plans to establish a sovereign wealth fund that is expected to dwarf Abu Dhabi's US$900-billion and become the largest in the world. The new fund will be a formidable rival for other government-owned investment funds in the Middle East and Asia which are playing an increasingly active role in channelling capital to western companies.

COMPETITION

Tesco is Britain's biggest supermarket group and the world's third largest retailer. The company now intends to build 50 Fresh & Easy stores in southern California, Las Vegas and Phoenix by February 2009, and 200 more stores per year after that in these areas, becoming about a US$10-billion operation by 2015.

HAM

Pure Iberian ham is one of Spain's most famous and possibly its most expensive export. It can cost up to US$2,000 for a whole leg. Acorns, the staple diet of the thoroughbred pigs used to produce the ham, are in short supply due to the rapid spread of a fungus that has been linked to climate change. Fuelled by drought, the fungus is killing up to 190,000 trees, or 10,000 acres annually. Exports of ham to Europe alone are worth US$90-million a year to the Spanish economy.

RECYCLING

Mourners shivering in a chapel in the U.K. are to be kept warm by using heat generated from cremating their loved ones. The City Council says that the heat generated will be enough to power the boiler and light the chapel. They admit this is a sensitive issue and have promised to consult clergy and the wider community. One priest says that as a final act of generosity, it's a lovely way for the dead to provide comfort for the living at a difficult time.

Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.

Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp

Do you need a U.S. address for shipping packages to?

From time to time, I am asked if we have a U.S. address to ship packages to. These questions come from family, friends, customers, etc. So, I thought I would do a post about this question.

The answer is "Yes" - especially for people located in B.C. We have a warehouse in Blaine, Washington that is very convenient to have packages sent to.

This is especially helpful if your are buying from a U.S. supplier who doesn't ship to Canada. And, many times, the supplier will ship within the U.S. / domestically for free.

To use this warehouse as a convenient receiving depot, simply follow these instructions - http://www.aacb.com/contact/usa_warehouse.asp

You can either drive down and pick up the packages yourself or have us pick them up, clear them through Customs and deliver them to your door.

February 2008 Economic Digest - Importing and Exportin

February 2008 Edition

SOFTWARE

 
Sales of software for the retail industry in the U.S. could hit US$10.4-billion by 2011, growing at an average rate of 7 per cent from sales last year of $7.3-billion. The market remains primed for growth as retailers seek to replace aging merchandising infrastructures, transform store shopping experiences for consumers and efficiently respond to changing demand and trends.

POCKETS

Increasingly, it is getting harder for men to buy shirts with pockets. Tailors say such a luxury ruins the lines of a shirt and as a result, they are selling fewer of them. One major retailer reports that 90 per cent of shirts sold 10 years ago had pockets, compared with 25 per cent last year.

TIPS

Magellan's, which sells a wide range of products for travellers has compiled a list that shows the going tipping rates for porters, valets, taxi drivers and restaurant staff in countries around the world. But in some countries, less is expected. In Morocco, the rule of thumb after a meal is to leave loose change for the restaurant staff. And there are countries like New Zealand and Japan whose service workers do not expect tips.

SATISFACTION

In past years, retailers have attempted to level the playing field in a competitive environment through better management of the supply chain. But many of today's customers are demanding quality, convenience and personalized service over price and retailers are responding. Researchers say that 61 per cent of 160 global retail executives and managers surveyed say they are focused on providing a high quality customer service strategy.

WINE

Last year was a record year for Australian wine exports which were up nine per cent over the previous 12-month period both in volume and value. In the 12 months to October 2007, Australia exported US$2.6-billion worth of wine, of which $880-million went to the U.K. Britain was the biggest market followed by the U.S., Canada, Germany and New Zealand. Ireland and the Netherlands were equal fifth biggest consumers.

SOUND

Canada's sound recording and music publishing industry turned a relatively healthy profit in 2005 despite the worldwide decline in record sales and increased competition from other forms of entertainment. In total the industry, which includes record production, music publishing and recording studios, reported operating revenues of C$942-million. Record production, by far the largest segment, accounted for almost 80 per cent of revenues and the other two segments roughly 10 per cent each.

TEA

A revolution is brewing in the U.K which could spell the end of the paper teabag. Supermarkets have begun stocking teabags made from nylon mesh, rather than the traditional perforated tissue paper. Although the nylon bags are four times more expensive than the paper versions, they are proving popular with consumers. This comes after research revealed that Britons consume some of the worst quality tea in the world.

HIGH FASHION

Retailers and brands are increasingly relying on the Internet to market $3,000 skirts and $5,000 suits to consumers who think nothing of spending that much on clothing. Luxury apparel sales online will approach US$1-billion this year. E-commerce is expected to grow by 21 per cent compared with last year and growth in luxury apparel sales is expected to exceed that.

PAY

Though a small minority in corporate boardrooms in the U.S., women directors typically earn more than men. Last year, female directors in corporate America earned median compensation of US$120,000 compared with $$104,375 for male board members. At the same time, women in corporate boardrooms are outnumbered eight to one.

SIZE

The US$800-million Independence of the Seas is the world's largest cruise ship and would have dwarfed the Titanic. It has 18 decks, nearly 2,000 cabins, three swimming pools, surf simulator, ice-skating rink, wedding chapel, theatre, casino, a nine-hole golf course and 11 restaurants and bars. It will not be the largest for long as another cruise liner, 45 per cent bigger than the Independence, is already under construction.

ACCESS

About one third (an estimated 8.2 million) of adult Canadians accessed government information and services in 2005, making the Internet an important channel for government. A study found that men accounted for just over one half (53 per cent) of Government On-Line (GOL) users. Higher levels of personal income and education were also important factors. The most common reasons reported for connecting online with governments were searching for information (72%), accessing material on programs or services (60%) and downloading forms (50%).

JAPAN

Hitachi has already stopped making PCs for individual consumers but will still make some for corporate customers. Consumers in Japan are shunning PCs as millions download music directly to cell phones and many more use their handsets for online shopping and to play games. Digital cameras connect directly to printers and high-definition TVs for viewing photos, bypassing PCs all together. More than 50 per cent of Japanese send e-mail and browse the Internet from their cell phones.

DESSERT

New research shows that virtually everyone enjoys dessert from time to time. In a recent survey, the vast majority, 85 per cent, said that they eat dessert once a month or more. No respondents said that they "never" eat desserts. More than half of consumers, 57 per cent, reported eating desserts "very frequently" or "often" (at least once a week). Traditional desserts such as chocolate-chip cookies, a dish of vanilla ice cream or a slice of apple pie are still the most popular desserts.

SPAM

The U.S. relays more spam to the world's inbox than any other country. Despite the CAN-SPAM Act, nearly 30 per cent of all unsolicited e-mails between July and September of 2007 were sent via computers in the U.S. The next biggest spamming countries were, South Korea, China, Russia and Brazil.

GREEN

An innovative project is being tried out in South Africa. Four pairs of solar-powered traffic lights have been installed in one suburb. If the pilot is successful, many more such lights could be installed across South Africa within the next few years. The lights are powered by a 3.6m2 solar panel tilted at a 30 degree angle to ensure maximum efficiency in capturing the sun's rays. To prevent vandalism, the panel is located at the top of an 18-foot pole while the batteries are located in a thief-proof concrete casing.

ENERGY

Energy drinks are benefiting from burgeoning sales in the noncarbonated category. Sales are expected to grow at a yearly rate of 12 per cent in the U.S., exceeding sales of US$9-billion by 2011. Since 2002, when total sales were just $1.2-billion, the market for energy drinks has soared almost 440 per cent overall to an estimated $6.6-billion in 2007.

GROWTH

Concerned about high fuel costs and the impact of a slowing economy, several big U.S. airlines are putting the brakes on domestic growth for 2008. So far, airlines say the economic worries haven't slowed business travel. Planes are flying fuller than ever but airlines also have been curbing domestic growth in favour of more lucrative overseas expansion, where they face less competition and have more room to keep fares strong.

PHONES

After 129 years, AT&T Inc. plans to leave the pay phone business as more people use wireless handsets to make calls. The first pay phone, installed in 1878, had an attendant who took callers' money. The first coin-operated phone was installed in a bank in Hartford, Conn. in 1879. At their peak in 1998, there were 2.6 million pay phones in the U.S.

MARKETS

India and China are the twin titans of the developing world. With a combined population of 2.4 billion, they have more than a third of the world's population, and 15 per cent of world trade. That share of trade is expected to rise to 40 per cent within a generation. By then, China is forecast to be the world's biggest economy by purchasing power and India the third largest. China has been better at putting in place the infrastructure needed for development, a spider's web of new superhighways, rail and air links and port facilities, while India's rail, road and port systems are a mess. However, India's vibrant private sector has fostered an number of world-class companies.

TECHNOLOGY

A self-tuning guitar said to be the first that uses robot technology, has been launched. The US$2,500 Gibson Robot is able to tune itself using six presets which musicians can switch to by pushing a button as they play. It works by a device in the bridge monitoring the pitch of the strings and also retunes itself automatically within seconds after string changes.

BALLOONS

Helium is the talk of the party-balloon industry nowadays. The second-most plentiful element in the universe is suddenly in short supply on the planet because demand has taken off in industry and in scientific research. Some party wholesalers are no longer selling balloons any more because they cannot get helium.

MISSING

The missing section of a 17th century cabinet worth over C$2-million has been found outside the toilets of a pizza restaurant in Yorkshire, England. It had been feared that the stand, used to hold the intricate piece of furniture featuring scenes of Rome, had been lost for ever.

ASSETS

Canada's national wealth in fixed assets, as measured by the total value of all its non-residential buildings, engineering structures and machinery and equipment, increased by 22 per cent between 1997 and 2007. This was largely the result of strong investment by the nation's mining and oil and gas extraction industries. By the end of 2007, the net value of buildings, structures and equipment used to produce goods and services was C$1.6-trillion.

RESORTS

Europe is to get its own version of Las Vegas in a desert region of eastern Spain. Developers plan to build 32 hotel-casinos, two theme parks, a race course and stadium over the next decade. The project also calls for residential areas, an equestrian centre and a golf course. Developers expect that the complex will receive 25 million visitors per year when it is completed. Millions are being spent in the nearby city of Zaragoza to upgrade rail and air connections and expand its small airport to accommodate the visitors. After France. Spain is the most visited country in Europe.

CHEERS

To prepare for the Olympics, authorities in Beijing have launched a campaign to teach residents how to cheer in a disciplined and orderly way. Instructors are touring factories, community centres and even old people's homes to teach tens of thousands of people civilized sportsmanship which will include the polite noise of rhythmic clapping and drumming from 20 pre-approved chants.

Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.

Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp

January 2008 Economic Digest - Importing and Exportin

January 2008 Edition

Fedex

There can be as many as 280 Fedex planes in the air at any time. The company has 670 planes making it the second-largest airline behind American Airlines. Rival UPS has 277 planes. Fedex flies 238 million air miles each year and in the U.S. alone, its trucks drive 1.29 billion km a year. Fedex runs a fleet of 75,000 trucks worldwide. On December 18, 2006, Fedex moved a record 9.8 million packages through its global air and ground networks. This compares with just 186 parcels handled on Fedex's first night of operations, April 17, 1973.

Eating

Casual dining chains in the US have been having problems lately with sales softening as cash-strapped customers trade down. Middle class consumers have less spending money because of higher gasoline prices and the depressed housing market. Another problem is the resurgence of fast-food chains which is now known as "fast casual" which now have better, healthier products and better environments. Applebee's which was recently acquired by IHOP, and spends about $180 million a year on advertising, is changing its ad campaign to combat this.

Disparity

Of the 57,095 people in Canada in 2001 who held a doctorate in either science or engineering, some 45,670, or nearly 80 per cent were men. In contrast, women accounted for 47 per cent of employed Canadians and 57 per cent of university graduates. For every dollar earned by male doctorate holders, female doctorate holders earned 77 cents.

Convenience

The Kaneko Sangyo Co. of Japan has developed a new portable toilet for cars. It comes with a curtain large enough to conceal users and a plastic bag to collect waste. The product is small enough to fit into a suitcase and will come in handy during major disasters such as earthquakes or when caught in a traffic jam.

Size

In its first commercial flight, the A380 airbus recently touched down in Changi Airport in Singapore. The upgrades to Changi to accommodate the A380 began three years ago. The runways were widened because the A380 engines are far apart and the risk of debris ingestion had to be limited. Bridges over roads had to be strengthened, baggage belt carousels lengthened, 19 gates enlarged and seating added to departures lounges that will serve the A380. The cost of all this was US$40 million.

eBay

The world's largest online auctioneer has launched a website that allows people to invest in loans that lift people out of poverty. The site, called MicroPlace, acts as a broker between ordinary investors and microfinance organizations. For as little as $100, US investors will be able to help entrepreneurs in poor countries, be they coffee sellers in Cambodia or hairdressers in Ghana. Microfinance is the supply of small, usually unsecured loans to poor households and small businesses in developing countries. The investments offer investors returns of from 1.5 to 3.00 per cent.

GM

Recent figures show that the area planted to genetically modified crops in England has grown by 77 per cent since last year. In 2007, more than 1,000 sq km (386 sq miles) of GM maize was harvested. This is still a small fraction of the total farmed area of Europe and also tiny compared with the one million sq km under GM around the world, an expanse four times the size of Britain.

Beer

China has the world's largest thirst for beer, comfortably outstripping the U.S. which is in second place. China consumes 305 million hectolitres against the 235 million hectolitres consumed in the U.S. Germany is the third largest beer consumer followed by Brazil, Russia, Japan and Britain. Half the beer in the US is made by one company while the most popular brand in China commands only five per cent of the market.

Money

The UN's Fund for Agricultural Development estimates that over 150 million migrants send $301 billion to their families in 162 developing countries. Although Mexico and India receive the most cash, at around $24.5 billion each, this represents less than 3 per cent of GDP. By contrast Guinea-Bissau relies heavily on its migrants' money with remittances making up nearly half of GDP.

Income

Wages in China's cities rose by nearly 20 per cent in 2007, adding to fears that the economy is overheating. According to the National Bureau of Statistics, the average salary was US$2,175. In recent years it has been the salaries at foreign-run multinationals that have caused most envy, but those in the state-owned enterprises are now catching up. Rising prices and inflation are putting pressure on the government to rein in the economy.

Teaching

Some 4,000 foreign teachers in Japan are without jobs and are owed significant back pay as Japan's largest school chain, Nova Corp. closed its 900 schools and declared bankruptcy. and failed to pay refunds to its 400,000 students. In 2002, the government estimated that there were 15,800 foreign teachers in Japan and about one million students at private language schools.

Green

Your "carbon footprint" is a rough calculation of the amount of greenhouse gases produced, either directly or indirectly, to support your lifestyle. If you get 30 per cent of your calories from meat, dairy and poultry, as most Americans do, your diet contributes more than 3,275 pounds of carbon dioxide to the environment each year. Replace red meat with fish, eggs and poultry and you save 950 pounds. A vegetarian would save 1,600 pounds.

Ink

Scientists have developed printer ink that vanishes after 24 hours. When a document is printed on reusable paper, the text initially appears similar to normal printed text, only a shade of dark purple rather than black. Eight hours later, the image has faded and after a day it is gone completely. The blank page can then be put back in the printer, saving waste paper.

Giving

Canadian taxfilers reported making charitable donations totalling C$8.5-billion in 2006, up 8.3 per cent over 2005. The amount of donations increased in all provinces and territories. In 2006, the median donation was $250. Donors in Nunavut led all provinces and territories in 2006 with a median donation of $450.

War

A report on armed conflict in Africa has shown that the cost to the continent's development over a fifteen year period was nearly US$300-billion, equal to the amount of aid received in the same period. Between 1990 and 2005, 23 African nations were involved in conflict, and on average this cost African economies US$18-billion a year.

Halloween

This past holiday season saw retailers in the US sell more than US$2.1-billion worth of candy. Chocolate and non-chocolate miniature candies generated more than a third (39 per cent) of Halloween candy sales. The average candy-buying household spent $74.68 during the year and purchased candy 19 times per year.

Resources

The characterization of Canada's resources sector as "hewers of wood and drawers of water" is outdated. The economy has rediscovered its resource base over the past five years thanks to a surge in commodity prices now in the midst of their longest and strongest upswing ever. Since 2002 there has been a large shift in the resource sector away from trees and water. Metals and energy products found underground now drive the growth of resources.

Wealth

China's booming stock markets are creating a new elite class of the superrich giving the country more billionaires than any country in the world, except the U.S. There are now 106 dollar-billionaires in China, up from 15 in 2006 and none the previous year. The two richest people in China are women.

Coffee

Sales of organic coffee are growing rapidly. US retail sales of organic coffee in 2006 increased 24 per cent to US$110-million. The industry states that this dramatic increase in organic coffee sales mirrors the continuing growth in the overall organic sector and reflects consumers' increasing awareness of these products, their high quality and the availability of these products.

Loss

Motorists are being forced to spend as much as $700 on replacement car keys because of increasingly sophisticated alarm systems. It is estimated that the total replacement bill for motorists in the UK that do not have replacement keys could be $200 million. It usually costs about $400 to design, program and make a new key but those used in some new cars cost significantly more.

Phones

Sixty three per cent of 1,531 Canadians polled in a recent survey say they will register with a Do Not Call registry when it comes into effect. It is estimated that nine million phone numbers could be on the Canadian registry by 2011.

Siberia

Russia is forging ahead with ambitious energy projects. Work has now begun on a 4,130km oil pipeline, the longest in the world's largest country. The plan is to feed the growing demand for oil in China and Russia's other energy-hungry East Asian neighbours. However, the indigenous Evank people are complaining that their age-old way of life is in danger as thousands of reindeer have been driven away because of construction, thus affecting their livelihoods.

Bookings

US travel produced double digit sales growth in 2006 but unlike other major e-commerce markets this one actually lost customers. A recent survey of more than 60,000 internet users in the US found that 9 per cent fewer people booked travel online in 2006 than in 2005. One expert claims that customers are tired of spending two to three hours trying to find the airline or hotel or vacation package that meets their needs.

Distributoin

Canada's film and video distributors reported revenues of C$1.7-billion in 2005, down 8.2 per cent from 2004, mainly as a result of a reduction in exports. Total expenses surged to $1.4-billion in the same period.

Wafers

IBM Corp. has developed a silicon wafer recycling system that may help ease the refined silicon shortage that has limited output of solar energy panels. Every day about 250,000 wafers are produced globally to make chips for products from cellphones to computers and to monitor and control manufacturing. IBM can remove intellectual property from discarded semiconductor wafers made out of silicon and then sell them to the solar industry.

Savings

The Sicilian town of Castelbuono has replaced its garbage trucks with donkeys and claims to be saving money as well as helping to beat global warming. Since February 2007, six donkeys have replaced the four garbage trucks in the town of 10,000 people. A donkey costs about $1,600 to buy plus about $4,000 a year for food and cleaning compared with $60,000 for a truck that needs about $15,000 in maintenance a year.

Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.

Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp

December 2007 Economic Digest - Importing and Exportin

December 2007 Edition

SCOTCH

Soaring sales in the Far East and emerging markets worldwide have led to an unprecedented boom in the Scotch whisky industry. Total export volumes for Scotch are expected to be up 17 per cent on last year, the equivalent of 71 million bottles, or US$190-million in shipment value. The most important period for the industry is typically the last two months of the year. Predictions are that the full-year exports could well be above $5-billion.

CARS

The average midsized sports utility vehicle has grown 25cm longer, 10cm in width and gained 215 kilograms weight in the past decade. Midsize and large sedans also weigh hundreds of pounds more. Auto makers say they are just catering to the desires of customers but boosting the size of vehicles helps foster brand loyalty as customers stick with the models they know and love.

EMISSIONS

Cement is a vary basic material with no obvious substitutes in terms of satisfying basic needs of housing and infrastructure all over the world. Building construction eats up concrete, and to make one tonne of cement, a key ingredient of concrete, 900kg of carbon dioxide (CO2) are released into the atmosphere. Production of cement causes twice as many carbon emissions as the world's airline industry currently does. Eighteen major cement manufacturers produce a combined one billion tonnes of cement a year, just under half the global output.

RECRUITING

The British spy agency Government Communications Headquarters (GCHQ) which is responsible for surveillance, hopes to attract computer-savvy recruits by embedding job advertisements in video games. The GCHQ, which employs about 5,000 people, says it hopes this will capture the imagination of people with a particular interest in Information Technology.

DIGITAL

The U.S. Library of Congress has announced a plan to digitalize a collection of the world's rare cultural materials, artifacts ranging from a photo collection of a 19th century Brazilian empress to a crackly recording of a 101-year-old grandson of a slave. The Library has signed an agreement with UNESCO in Paris to move ahead with their World Digital Library. The World Digital Library started two years ago with a US$3-million grant from Google.

WEDDINGS

In 1998, the last year for which Statistics Canada numbers could be found, Canada's wedding industry was worth an estimated C$4-billion a year. More recent figures from the U.S. put the value of the industry at US$50-billion a year. In 2005, 714,000 Japanese brides spent an average of US$70,000 per wedding and in India, estimates of the size of the wedding market range as high as $20-billion a year.

WASTE

The paperless office, predicted in an 1975 article called the Office of the Future, has proven to be greatly exaggerated. Although an estimated nine trillion pages a year are confined to computer screens, the number of printed pages stands at between 2.5 and 2.8 trillion pages worldwide, a figure that is expected to grow over the next 10 years. About one trillion of these sheets, churned out by office printers, are estimated to be thrown out within hours. Xerox found that office workers throw away 48 per cent of everything they print within a day.

RETAIL

A new PricewaterhouseCoopers study suggests that the retail industry will become more segmented and customer-driven by the year 2015. The study identifies 15 growth drivers and predicts 15 trends that will redefine the retail environment in 2015. Among shifting demographics, household downsizing and new marketing channels, the retail industry will face a variety of new challenges. Overall, the retail industry will need to adopt a more targeted approach in order to reach its customers.

RADIO

U.S. scientists have unveiled a detector thousands of times smaller than the diameter of a human hair that can translate radio waves into sound. This is the first time a nano-sized detector has been demonstrated in a working radio system. Made of carbon nanotubes a few atoms across, it is almost 1,000 times smaller than current radio technology. Many companies are interested in the long-term potential of carbon nanotubes, tiny cylinders of carbon that measure just a few billionths of a metre across.

VIETNAM

Growth in Vietnamese shipments to the U.S. is outpacing overall export growth for the Asian nation, whose government is banking on the American market to help ease a widening trade deficit. Exports to the U.S., Vietnam's largest market, climbed 22 per cent to August of this year reaching US$6.69-billion. Vietnam has set a target of 20.5 per cent for overall exports to grow.

GAMING

Canada's video games firms have developed an international reputation for being among the best and most innovative developers with annual revenues reaching upwards of $2-billion. The Canadian video game industry comprises more than 260 firms and a combined 9,000 employees in nine provinces. About 20 per cent of the top selling games in North America are developed in Canadian studios. It is estimated that the worldwide market will top US$55-billion by 2009.

INDIA

The retail sector in India has sales of US$300-billion annually which is projected to rise to $560-billion by 2010. Some 95 per cent is accounted for by small, family-run stores but it is predicted that their share will have shrunk to about four-fifths by 2012 as bigger stores, such as Reliance Retail, start to lure shoppers. Reliance has opened more than 300 stores in the past year, including grocery stores.

TOYS

There are over 200 companies in Canada that manufacture toys and games. Annual retail sales of toys and games in Canada are worth C$1.4-billion. Since the massive recall of toys manufactured in China earlier in the year which saw 21 million toys recalled by Mattel Inc., some Canadian manufacturers have seen their sales increase by 10 per cent in Canada and 25 per cent internationally.

HOTELS

The most expensive five-star hotel rooms in the world may be found in New York, San Francisco and Nice. The cheapest are in Cape Town, Cairo and Warsaw.

COTTON

The US could face billions of dollars in trade sanctions for failing to scrap illegal subsidies paid to American cotton growers. The ruling by the World Trade Organization is a victory for Brazil's cotton industry and for West African countries which say the payments harm their producers. Brazil has reserved the right to impose annual sanctions of up to US$4-billion on the U.S. but would likely settle for less.

SIZE

PetroChina Co gained the most in five months in Hong Kong trading as oil rose to over $85 a barrel, vaulting the state-owned oil producer over General Electric to become the world's second largest company. The largest is still Exxon Mobil Corp. with a value of over $518-billion. PetroChina's stock has soared 14-fold since its 2000 public share sale.

DEVELOPMENT

The Netherlands, Denmark, Norway and Sweden have the most effective policies to help poor countries according to a Washington, DC think tank. The report grades 21 rich countries each year on how well they support development in poor countries. Each country is assessed on its policies in seven areas including aid, migration, investment and trade.

RAIL

Canada's railways collectively operate one of the largest railway systems in the world and are fully integrated with the U.S. rail system. According to industry figures, Canada's freight railways handle more than 65 per cent of surface traffic, more than 4.3 million carloads of freight and containers annually. Passenger railways move over 60.6 million commuters annually. Overall, Canada's railways directly employ 34,500 people and contribute approximately $10-billion to the Canadian economy.

MAFIA

Revenue from organized crime amounts to an estimated US$127-billion annually in Italy, making it the largest segment of the economy. The figure, representing about 7 per cent of the country's gross domestic product, is made from illicit activities such as extortion, drug trafficking, loan sharking and prostitution.

BEER

Trouble is predicted for small beer makers across North America as the price of hops and barley, two of the essential ingredients in brewing, continue to rise, as do the costs of shipping and transport. Ironically, some farmers abandoned the growing of hops and barley after a glut in the market. Because of lifestyle changes, it is estimated that for the next five years, sales of wine will increase 3.5 per cent. sales of spirits increase 2 per cent but beer sales only by 0.5 per cent.

CANS

The American Iron and Steel Institute (AISI), in cooperation with a major supermarket chain, have rolled out a campaign to educate consumers on the nutritional and safety benefits of canned food. Research shows that canned foods are nutritionally comparable to their cooked fresh and frozen counterparts, and in some cases even more nutritious. The ASAI has 31 member companies, including integrated and electric furnace steelmakers and 130 associate and affiliated member companies representing about 75 per cent of U.S. and North American steel capacity.

TECHNOLOGY

When the northern pygmies of Congo-Brazzaville go into the forest these days, besides their traditional bows and arrows, they are carrying hand-held satellite tracking systems. They use the GPS handsets to pinpoint sacred sites and hunting areas. They are protecting their livelihoods and habitats against the chainsaws and bulldozers of commercial logging.

OUTSOURCING

Smarties, the famous British candy, is to be produced in Germany after 70 years in England. Also, Black Magic is now manufactured in the Czech Republic and Dairy Box is manufactured in Spain. The Smarties move will cost about 650 jobs. About 73 million pounds of Smarties are sold annually.

SAFETY

An endangered species of whale is to get extra protection after a safe haven from shipping has been set aside off Nova Scotia in Canada. The voluntary restriction asks ships captains to avoid a 1,800-sq-km area. Collisions with container ships are seen as a key threat to some whales.

COAL

The coal that has powered China's economic growth is also choking its people. The country is home to 16 of the world's most polluted cities. Coal provides about 70 per cent of China's energy needs. The country consumed some 2.4 billion tons in 2006, more than the U.S., Japan and the United Kingdom combined. In 2000, China anticipated doubling its coal consumption by 2020. It is now expected to have done so by the end of 2007.

SUNSCREEN

New research shows that broccoli juice is better than conventional sunscreens when it comes to protecting against the sun's harmful ultraviolet rays. The extract reduced sunburn symptoms by up to 78 per cent.

Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.

Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp