CIFFA Forwarder Spring 2025

28 THE FORWARDER | SPRING 2025 Companies must be vigilant-integrating geopolitical risks into their strategies, putting more emphasis on compliance, and being conscious of what is happening in the U.S.-re export controls, sanctions and restrictions, corruption, money laundering, etc. The extra-territorial application of U.S. laws in Canada and around the world makes this paramount. In the case of exporters, Sivière noted that they can protect themselves through traceability of their supply chain with upstream suppliers. For example, by knowing their export customers, avoiding ExWorks shipments in favour of FCA shipments, validating end use of the product, validating export permits and using double scrutiny with countries known to participate in sanctions evasion, as well as double scrutiny with dual-use goods (for example products used both in industry and in military applications). Canadian exporters must ensure that they don’t export goods made in the U.S. or with U.S. technology to any country where the U.S. has an embargo and/or sanctions. In Europe, in 2023 there was public consultation on proposed regulation to prohibit any products made, extracted or harvested with forced labour, made in the E.U. or elsewhere. The E.U. is targeting entry into force of these regulations in 2025, banning such products for sale in the E.U. market. But again, noted Sivière, screening will not be done at the borders. Importers, meanwhile, can protect themselves by gathering supply chain information on the goods they intend to import, for example bills of materials, lists of suppliers for each step in the production, commercial invoices and certificates of origin. Freight forwarders provide a value-added service in the mitigation of forced labour. Freight forwarders who have done their due diligence have no direct liability. They have to respectfully turn down requests to pick up from any prohibited entity, and make sure customers are not front companies, but are legitimate entities, while also making sure branded goods are not fake. To sign up for the full CIFFA course on Compliance with the New Laws Prohibiting Forced and Child Labour in Our Supply Chains, link to : https://www.ciffa.com/virtual-workshops/ AIR FREIGHT OCEAN FREIGHT SUPPLY CHAIN SOLUTIONS WAREHOUSING PROJECT CARGO VALUE ADDED SERVICES Tradelinkinternational.ca Load@tradelinkinternational.ca 905-333-LOAD (5623) 1-800-561-3885 CREATING CONFIDENCE THROUGH SERVICE SINCE 1993 Scan to learn more