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CBSA Today: Commercial News for Stakeholders
Issue No. 2, Winter 2011-12
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What's Inside
Building and maintaining the relationships we have with our commercial stakeholders is pivotal to sustaining both the economic competitiveness of Canada's business community as well as the security of the border. In this issue, we are pleased to outline some of the key Border Action Plan initiatives that the Canada Border Services Agency (CBSA) will be undertaking, as well as provide news on other commercial activities that may have an impact on your business.
The Action Plan for Perimeter Security and Economic Competitiveness was announced by Prime Minister Harper and United States (US) President Obama on December 7, 2011. It establishes over 30 initiatives that will see both Canada and the US working together within, at and away from the border. The Action Plan is good news as it seeks to provide greater consistency, efficiency and predictability in the processes that affect trade and travel between Canada and the US.
If you have any questions on the Action Plan initiatives outlined in this newsletter, please e-mail the Stakeholder Engagement mailbox at Stakeholder_Engagement-Mobilisation_des_intervenants@cbsa-asfc.gc.ca.
Other news in this issue includes updates on one of the Border Commercial Consultative Committee (BCCC) Sub-Committees, Canada's Gateway Model, Mutual Recognition Arrangements (MRAs) and the Canada–European Union Joint Customs Cooperation Committee (JCCC).
As noted in the inaugural issue of the newsletter, we encourage you to submit ideas for articles as the newsletter is intended to keep you informed on the CBSA commercial programs which most concern you. Please e-mail your suggestions to the BCCC Secretariat at BCCC-CCACF@cbsa-asfc.gc.ca.
I would like to express our appreciation for your collaboration over the past year, and look forward to making continued progress on our shared commitments in 2012.
Cathy Munroe, Chair
Border Commercial Consultative Committee
Border Action Plan Initiatives
Enhanced Trusted Trader and Traveller Programs – Expediting the movement of goods and travellers
Three initiatives led by the CBSA aim to add significant enhancements to the trusted traveller and trader programs. The initiatives include installing infrastructure at selected land ports of entry, establishing a coordinated framework for Canada US trusted trader programs and enhancing the NEXUS program. Together, these enhancements will accommodate an expected increase in membership in trusted trader and traveller programs while enhancing national security and facilitating the border clearance process at ports of entry for low-risk shipments and trusted travellers.
Key Benefits
Under the enhanced infrastructure initiative, lanes and/or booths will be added to selected port-of-entry locations, and additional lanes and/or booths will be installed at existing port-of-entry locations. These enhanced facilities will expedite border crossings by trusted traders and travellers and reduce border wait times.
Canada and the US will adopt a common approach for trusted trader programs that will align requirements, enhance member benefits and provide applicants with the opportunity to submit a single application to multiple trusted trader programs. The goal is to facilitate further the border clearance process for low-risk, pre-approved commercial carriers and importers. Key enhancements under consideration include:
- harmonizing the Canadian Partners in Protection (PIP) program with the US Customs-Trade Partnership Against Terrorism (C-TPAT) program to the fullest extent possible;
- expanding usage of the Free and Secure Trade (FAST) lanes/booths by providing access to PIP members at agreed-upon locations;
- aligning Canada's Customs Self Assessment (CSA) and the US Importer Self Assessment programs and incorporating Partners in Compliance (PIC) into the CSA program; and
- expanding trusted trader programs to allow CSA clearance of goods that are subject to regulatory requirements of other government departments.
The introduction of these program enhancements creates opportunities for more businesses and industries across North America to enhance supply chain security and expedite the movement of goods across the border. In addition, both countries will provide significant new benefits to existing members, including reduced costs and increased predictability at the border. At the same time, all Canadians will benefit since both Canada and the US will be able to manage security at the border more efficiently by focusing resources on unknown and high-risk shipments.
New NEXUS program enhancements being considered include access to additional enrolment services through the use of mobile technology; extending membership eligibility to non-resident Canadian and US citizens, with a focus on business travellers; ongoing modernization to improve the flow of travel for NEXUS members; and aligning (where feasible) Canadian NEXUS lanes with US NEXUS lanes so that similar services are available directly across the shared Canada–US land border.
Next Steps
The port-of-entry infrastructure enhancements are expected to be implemented by June 2012. Over the next three to six months, the CBSA will identify the lanes and/or booths that will be added to selected port-of-entry locations, and additional lanes and/or booths will be installed at existing port-of-entry locations.
A pilot will be conducted in early 2012 to evaluate the impacts of allowing PIP members access to the FAST lanes.
NEXUS program improvements will be implemented by December 2013. Over the next three to six months, Canada and the US will engage in joint marketing and outreach efforts, begin implementing regulatory changes to expand membership eligibility and develop a plan to negotiate mutual recognition of third-country traveller programs.
Single Window Initiative – Streamlining border processes
The Government of Canada Single Window Initiative (SWI) will establish an integrated solution for commercial trade processing that balances the security needs of the Government with today's globally competitive business environment. At present, the trade community is required to provide paper documentation for the importation of commercial shipments that contain goods regulated by other government departments.
SWI will help increase the efficiency of the border process by providing importers and brokers with a “single window” through which all required information can be electronically submitted to comply with customs and participating government department and agency regulations, thus eliminating the need for paper. As a result, Canada's SWI – similar to its US equivalent, the International Trade Data System – will help maintain the balance between facilitation and security of trade.
Key Benefits
- Eliminating unnecessary paper and redundant processes at the border.
- Ensuring consistent application of Government of Canada import regulations and reporting requirements.
- Aligning with international standards for goods identification and processing.
- Reducing border compliance costs and improving border efficiency, while enhancing risk assessment efforts to contribute to the overall health, safety and security of the people of Canada.
Next Steps
Canada is aiming to make electronic data submission possible for the SWI by 2013. Over the next three to six months, the CBSA will:
- collaborate with the US to align data requirements and programs, where possible;
- consult with Government departments and the trade community to develop strategies for improved information and integration at the border; and
- align SWI with existing developments at the border (e.g. eManifest).
Integrated Cargo Security Strategy – Cleared once, accepted twice
A sizeable amount of overseas cargo that comes to North America lands in one country and crosses the land border in the other. It is better for our trade relationship and the security of both Canada and the US if we inspect cargo overseas or at its first point of arrival, rather than once it hits the land border in the middle of the continent. The Integrated Cargo Security Strategy will identify and establish similar risk management processes and harmonized data requirements for commercial imports and transshipments in all modes (air, marine, land and rail) for risk assessing and screening inbound cargo arriving from offshore destined for either Canada or the US.
Key Benefits
A harmonized Canada–US approach will result in increased security and the expedited movement of commercial cargo in all modes. It will also enhance the security of both countries from offshore threats while reducing the number of re-inspections and delays at the Canada–US land border. Clearing once and accepting twice offers a number of benefits:
- joint Canada–US inspections of facilities and cargo;
- reduced re-inspection of cargo at the land border;
- increased efficiencies in examinations – each country targeting at the perimeter and conducting activities on behalf of the other country;
- investments in cargo examination facilities; and
- a joint response to offshore threats.
Next Steps
Pilot projects to validate and inform the harmonized approach will begin in fall 2012. An evaluation of the benefits and feasibility of the pilots will then be undertaken. Based on the recommendations of the evaluation, full implementation will begin in 2014.
Canada and the US will implement a harmonized set of advance data requirements for conveyances, commercial imports and transshipments in all modes by December 2013.
Coordinated Entry/Exit Information System – Providing complete travel histories
Canada and the US are working together to establish and coordinate their respective entry and exit information systems, with a particular focus on the land border environment. A coordinated entry/exit information system would enable the reconciliation of entry data from secure documents presented by travellers who are entering Canada with corresponding records of departure from Canada.
Key Benefits
- Strengthened integrity of Canada's border and immigration programs by closing the loop on an individual's travel history and enabling the Government of Canada to know who is in the country at any given time.
- Enhanced alignment with other international partners who already have similar systems.
- Enhanced security by enabling Canada and the US to focus their resources on known risks and facilitate the legitimate flow of people, goods, and services between the two countries.
Next Steps
By June 30, 2014, Canada and the US anticipate exchanging data on all travellers at all enabled common land border ports of entry, and Canada will implement an exit information program in the air mode.
Over the next six months, the CBSA will begin implementing a pilot project to exchange travel data on third-country nationals, permanent residents of Canada and lawful permanent residents in the US at two to four enabled common land border ports of entry.
Radio Frequency Identification Systems – Next-generation technology expedites travel
Canada and the US have committed to developing a plan to deploy Radio Frequency Identification (RFID) technology at specific land crossings along the Canada–US border. RFID technology enables travel documents equipped with an RFID chip (e.g. Enhanced Driver's Licence, US Passport Card and NEXUS card) to be read at a distance. Once RFID technology is deployed, travellers who use RFID-enabled documents will be processed more efficiently as the document information will be captured and an automated risk assessment will be performed in advance of their arrival at the Primary Inspection Line booth. RFID uses a unique identifier number that points to information in a secure database. No personal information is stored on the chip.
Key Benefits
- Expedites movement of goods and commerce, which in turn supports economic growth.
- Facilitates mobility at the border for all travellers with RFID-enabled documents and for participants in trusted traveller/trader programs.
- Speeds access to commercial lanes due to the expedited movement of traveller lanes.
Next Steps
RFID technology will be implemented at selected Canadian border crossings by December 2013.
Other Commercial News
Pre-arrival Review System and Electronic Data Interchange Sub-Committee – A successful mandate
With the successful fulfillment of its mandate, the BCCC Pre-arrival Review System (PARS) and Electronic Data Interchange (EDI) Sub-Committee will stand down in early 2012. The Sub-Committee has worked with industry partners to increase the use of PARS EDI and develop opportunities to align pre-arrival importer data requirements that will be introduced through eManifest with PARS data. In early 2012, the BCCC PARS EDI Sub-Committee will be replaced with a new sub-committee called the “Cargo and Sufferance Warehouse Modernization Sub-Committee”, which will look at the overall modernization of the cargo and warehouse programs.
The current BCCC PARS EDI Sub-Committee has been responsible for implementing two key policy changes, which have been announced and posted on the CBSA Web site as Customs Notice 11-004 (Mandatory EDI for release purposes) and Customs Notice 11-005 (Mandatory Harmonized System (HS) Codes). In addition, the Sub-Committee has developed the Zero-Class Code as an interim solution if the HS Code is unknown at the time of interim accounting. For more information, see Customs Notice 11-016.
| Phased-in Time Frames for Mandatory HS | |
|---|---|
| Time Frame for Implementation of HS Code Requirements | Number of HS Codes Required at Time of Interim Accounting (PARS/Release on Minimal Documentation) |
| September 1, 2011 | Minimum of 10 HS Codes |
| February 1, 2012 | Minimum of 20 HS Codes |
| June 1, 2012 | Minimum of 30 HS Codes |
| January 1, 2013 | HS Code for all lines up to 999 lines (or CBSA system capacity) |
| Phased-in Time Frames for Measures to Increase EDI |
|
|---|---|
| Date | Required EDI |
| September 2011 | 250 or less lines |
| February 2012 | 500 or less lines |
| June 2012 | all lines (up to 999 lines / system capacity) |
The third policy change identified, but not yet implemented, is the mandatory Release Notifications System (RNS) for arrival by warehouse operators. This policy change will require warehouse operators who accept cargo to electronically transmit an “arrival” notification, and thus transfer the liability from the carrier to the warehouse. Once it is established in 2012, the new sub‑committee will examine mandatory RNS for arrival.
The current BCCC PARS EDI Sub-Committee has also analyzed concerns about the elimination of 77YY. In response, the CBSA has developed and issued two additional customs notices. The first addresses the release processing of hand-carried goods for CSA importers and their service providers in all modes. For more information, see Customs Notice 11-011.
The second addresses the release and accounting of goods in the air and marine modes without a carrier code for the transporter of the goods. For more information on how to complete the B3-3 Canada Customs Coding Form, see Customs Notice 11-012. The CBSA is also monitoring the impact of the elimination of itinerant carrier codes and its effect on the commercial release process.
The CBSA would like to thank members of the current BCCC PARS EDI Sub-Committee for their collaboration in developing the new policy changes and customs notices.
Safeguarding Canadian Forests – Full enforcement of ISPM 15 requirements
Will your business be ready for January 2013? That is when Canada and the US will begin full enforcement of the International Standards for Phytosanitary Measures No. 15 (ISPM 15) for non-manufactured wood packaging material (WPM) moving between Canada and the US.
Until now, non-manufactured WPM originating from Canada or the US and used exclusively in trade between the two countries has been exempt from the ISPM 15 requirements. However, a growing number of harmful pests have become a concern for the environment in both countries, spurring the removal of this exemption.
In the coming months, the CBSA and the Canadian Food Inspection Agency will be providing more information on the new ISPM 15 requirements. We encourage you to start sourcing supplies of ISPM 15-compliant WPM to ensure shipments are compliant once full implementation and enforcement activities commence.
Sample ISPM 15-compliant mark
For more information, please visit the CBSA Web site.
Canada's Gateway and Corridor Strategies – Taking an integrated approach
Canada's gateway and corridor strategies, led by Transport Canada, represent an integrated approach that places transportation infrastructure at its core. These strategies encompass the interconnected issues of public policy, regulation and operational practice that directly impact how well the transportation system functions and how well Canada takes advantage of it to advance commercial objectives. The CBSA works closely with other federal departments and agencies on the development of the gateways and corridors approach. Through fora such as the Assistant Deputy Minister Committee for Canada's Gateways, we are focused on consensus building and promoting interdepartmental collaboration on issues. Activities include identifying and prioritizing marketing, trade and investment opportunities, and deepening bilateral relationships with key trading partners.
Canada's Gateway model seeks to strengthen Canada's competitive position in international commerce by effectively linking Canada to global markets. As such, the CBSA is undertaking a number of initiatives, including:
- pursuit of a perimeter approach to security with the US;
- technology investments;
- streamlined border management processes;
- border infrastructure investments; and
- a service commitment to improve program and service delivery.
For more information on how Canada's gateways can benefit your company, see http://www.canadasgateways.gc.ca.
The Advisory Committee on Commercial Operations of Customs and Border Protection – The “US BCCC”
With a mandate similar to the BCCC, the Advisory Committee on Commercial Operations of Customs and Border Protection (COAC) is a forum for US Customs and Border Protection (CBP) officials and commercial stakeholders to hold a dialogue on US border operations.
In particular, COAC advises the Secretaries of the Department of the Treasury and the Department of Homeland Security (DHS) on the commercial operations of CBP and related DHS functions. It also provides advice and recommendations to the US CBP Commissioner, the DHS and the Deputy Assistant Secretary for Tax, Trade and Tariff Policy
at the Department of the Treasury.
Like the BCCC, COAC considers a broad range of commercial issues as they relate to the border, including:
- advance electronic cargo information requirements;
- streamlining Customs procedures;
- safety of imports;
- protection of intellectual property rights; and
- the interaction of government agencies in the border environment.
COAC members are drawn from the trade or transportation community served by CBP or others who are affected by CBP commercial operations.
The 20 members represent the interests of importers (and their agents) and those associated with international freight carriage. COAC has two government chairs: one from the Department of the Treasury and the other from the DHS. Although not members of COAC, the co-chairs preside over COAC meetings and assist with setting the agenda and other oversight duties.
In seeking new areas of cooperation with CBP, CBSA representatives attended two COAC meetings in 2011 as observers. In turn, COAC representative Maria Luisa O'Connell (Senior Advisor for Trade, Office of Trade Relations) attended the BCCC meeting in October 2011. The CBSA's participation in COAC supports our goals to identify best practices, share experiences and discuss approaches to stakeholder issues.
Meetings are usually held four times a year, and are open to the public unless a determination is made that a meeting should be closed. Members of the public can also sign up for live webcasts of the meetings.
Mutual Recognition Arrangements – Supporting global high-security standards
The World Customs Organization's (WCO) SAFE Framework establishes the criteria by which businesses involved in cross-border trade can obtain authorized status as a security partner from their Customs organization's Authorized Economic Operators (AEO) program. The Framework includes guidelines for Customs to assess and accredit businesses as AEOs and outlines benefits these businesses should receive. It also encourages WCO members with compatible AEO programs to mutually recognize their programs to further facilitate and control the goods moving in the international supply chain.
Mutual recognition of AEO programs is gaining momentum around the world and is important for traders. Mutual Recognition Arrangements (MRAs) expand the international trade network of accredited low-risk companies and enable program members to identify global business partners with similar high-security standards.
According to the WCO Compendium of AEO Programs, updated in June 2011, 164 out of 177 WCO members have signed letters of intent committing to implement the SAFE Framework. Of these, 15 AEO programs have been established in 41 countries (due to the EU-27 uniform program) and nine countries plan to establish AEO programs in the near future. In Canada, the combination of the PIP program, the CSA program and the FAST program meet the standards and guidelines of the SAFE Framework for AEOs.
There are currently 15 MRAs in place between AEO programs, the two most recent being between Andorra and the European Union (EU), and between Japan and South Korea, signed in 2011. Ten additional MRAs are under negotiation as follows:
- China – EU
- China – Japan
- China – Singapore
- EU – San Marino
- EU – US
- Japan – Singapore
- Korea – New Zealand
- New Zealand – Singapore
- Norway – Switzerland
- Singapore – US
Canada has four MRAs in place with the US, Japan, South Korea and Singapore, respectively. At present, the CBSA is working with the General Administration of Customs of Mexico to provide advice and technical assistance on the development and implementation of their AEO program. In addition, the CBSA is working on a Canada – EU supply chain security agreement that may eventually lead to MRA negotiations.
The Canada–European Union Joint Customs Cooperation Committee
The CBSA hosted the 2011 Canada–EU Joint Customs Cooperation Committee (JCCC) meetings in Ottawa, Canada on November 14 to 15, 2011. This first JCCC meeting since 2003 with our counterparts in the EU's Taxation and Customs Union Directorate General (TAXUD) is part of the CBSA's EU Engagement Strategy.
The meetings were attended by CBSA President Luc Portelance and Executive Vice-President Malcolm Brown, TAXUD Director General Walter Deffaa, and subject-matter experts from both organizations. Topics included updates on supply chain security, air cargo security, trusted trader programs, intellectual property rights and risk assessment. Committee members also explored potential projects and cooperation at the WCO.
In addition, the TAXUD delegation was given a tour of the CBSA's laboratory and National Risk Assessment Centre, during which the CBSA had the opportunity to demonstrate its achievements in targeting operations and research and development. As a result of the open and frank exchanges at the meetings, both the CBSA and TAXUD considered the event a success and have agreed to hold more regular meetings in the future.
Your BCCC Secretariat
The BCCC Secretariat forms an integral part of the Agency's stakeholder engagement activities, under the CBSA's Partnerships Division. If you have any questions on the CBSA's stakeholder engagement activities, please contact Susan Savriga, Manager, Stakeholder Engagement Unit, at 613-948-8569 or Susan.Savriga@cbsa-asfc.gc.ca.
