News
The CN/Illinois Central merger approved by U.S. Board
Paul Tellier, president and chief executive officer, Canadian National Railway Company, explained to delegates at the Sainte-Foy Chamber of Commerce, Quebec, that the first stage of approval of CN’s merger with the Illinois Central Railroad was proceeding with “the oral approval of the U.S. Surface Transportation Board.” Mr. Tellier noted that CN plans to begin combining the two railways “as permitted by the Surface Transportation Board.”
A written merger decision is expected to be issued by the board on May 25 and CN already has plans to start a step-by-step integration of the two railroads as early as July 1.
The merger creates a new rail network, stretching from the Atlantic to the Pacific Coast, and extending down to Chicago. The Illinois Central runs from Chicago to New Orleans, affording a rail network link to three coasts: Atlantic, Pacific and the Gulf of Mexico
The Difficulty in Applying NFTA Rules of Origin
During a recently held Canadian Importers Association Conference delegates were briefed about the liabilities involved with the classification of goods under the North American Free Trade Agreement (NAFTA).
Glen Cickello, a senior principal of KPMG, who spoke about the subject with Richard Wagner, a partner of Ogilvey Renault, warned delegates: “In the year 2001 you do not want Revenue Canada saying your NAFTA certificate was invalid.”
He alluded to the the misconception that a product’s “place of origin”’ is primarily related to its place of purchase.
The time required to issue a certificate can be very lengthy because the review must follow the product and, in some cases, its many components, back to their “place of origin.” A certificate is vital; without one those involved should pay duties, he suggested. Companies can face audits that go back up to five years. Due diligence is essential in the process, Cickello said, adding, the onus is on traders to work with their service providers to avoid liability, particularly with the trend for more U.S. and Canadian audits to be conducted.
Calendar
Montréal CLM Chapter Conference
April 20, Hilton Montréal Aéroport, Que.. Contact: CLM Montréal Roundtable, 8130 , Cote de Liesse, Saint-Laurent, Quebec, H4T 1G7, tel: (514) 733-3000
Supply Chain World
April 26-2, Hyatt Regency O’Hare, Chicago (Rosemont, ILL, USA.. Contact: (412) 781-4101 or visit www.supplychainworld.org
Supply Chain Expo ‘99
Sept. 21-23, Baltimore, The Logistics Management Center. Contact: (800) 638-6396
Council of Logistics Managment, 1999 Annual Conference
October 17-20, Metro Canada Convention Centre, Toronto, ON., Canada. Contact: CLM, 2805 Butterfield Rd., Suite 200, Oak Brook, ILL., USA, 60523. Tel: (603) 574-0985 Emaol: clmadmin@clm1.org