Trusted Traders: Partners with Benefits

Canadian Society of Customs Brokers - 2012 Annual Conference

October 2, 2012

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CBSA Trusted Traders ProgramsObjective:

• To facilitate the movement of legitimate goods by providing streamlined and efficient border processes for pre-approved, low risk traders.

– Allows the CBSA to focus resources on areas of higher or unknown risk

– Minimizes the impact of border processing on trusted program members

• To enhance the security and integrity of the supply chain through partnerships with businesses.

CBSA Trusted Traders Programs• Partners in Protection (PIP) Program (Tier I)

– Supply chain security

• Customs Self Assessment (CSA) Program (Tier II)– Expedited border clearance– Trade data reporting and collection– Revenue reporting and payment

• Free and Secure Trade (FAST) Benefit– Dedicated lanes/booths at select border crossings

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Partners in Protection (PIP)• Partners in Protection (PIP) is a no-fee, voluntary CBSA program

that creates partnerships with companies directly involved in cross-border trade. This program was created in 1995 and was redesigned in 2008 when an MRA was signed with the U.S.

• Members are responsible for securing their supply chain from point of origin to final destination.

• The CBSA provides facilitative measures for trusted traders, allowing the CBSA to focus its resources on areas of high and unknown risk.

• The cooperation enhances border and trade chain security, combats organized crime and terrorism, and helps detect and prevent contraband smuggling.

PIP Membership June 2012 (includes multi-mode applicants)

1,480 PIP members

75% are also C-TPAT members Other, 56

Courier, 15

Marine, 9Customs Broker, 77

Freight Forw arder, 124

Air, 5

Warehouse, 204Exporter, 381

Importer, 510

Highway,1305ShippingAgent, 21

Rail, 6

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Customs Self Assessment (CSA)

• Three Main Benefits– Border Clearance– Trade Data Reporting and Collection– Revenue Reporting and Payment

• CSA: Trade Benefits– Business-to-government partnership that allows importers to self-audit

their own books and records for trade compliance, in particular origin, classification, and valuation

– Members are removed from CBSA post-release verification activities

CSA Statistics• 96 CSA authorized importers.

• 839 CSA authorized carriers.

• CSA importations comprise approximately 21% of the value for duty of all commercial importations.

• CSA shipments examined approximately 4 x less than regular commercial shipments.

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Beyond the Border Action Plan

Harmonized and Enhanced Benefits for Trusted Trader Programs

• Canada and the US will adopt a common framework to align their trusted trader programs’ requirements and enhance member benefits. The framework will introduce a two-tiered system with specific outcomes and benefits.

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Trusted Trader Initiative – Tier IHarmonization• Harmonization refers to further aligning the CBSA’s Partners in Protection

(PIP) and US CBP’s Customs-Trade Partnership Against Terrorism (C-TPAT) programs in the areas of policy, procedures and documentation practices, where applicable, with each customs administration retaining sovereignty over its respective program.

• Although the programs are not combined, companies of eligible business modes may apply to both PIP and C-TPAT using a single application. As the programs are so closely aligned, they will have the option to recognize decisions made by the other program.

– Single application process for companies seeking to join both programs– Only one site validation required– Only one point of contact for companies to maintain their information.

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Trusted Trader Initiative – Tier I• Develop a secure interoperable communications portal to allow

applicants to apply once to multiple programs and update client profile information.

• Trusted Traders has engaged the CBSA’s Information Science and Technology (ISTB) Branch and early discussions are underway. – A Trusted Trader Project Charter has been drafted– A draft Functional Requirements document has been provided to CBSA

IS&T.

• Ongoing collaboration with the U.S. to determine the model for harmonization. A model based on security profile rather than line of business is under review.

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Trusted Trader Initiative – Tier I

• Extend Free and Secure Trade (FAST) benefits to members in either PIP or Customs Self Assessment (CSA) Programs – Canada has initiated a six month pilot at the Blue Water Bridge in

Sarnia, Ontario to extend FAST benefits to PIP members– Pilot start date: announcement is forthcoming– Fourteen carriers with 1300 trucks will be participating the pilot– RFID technology has been installed at the port and in participating

trucks• Baseline data is currently being collected (as of July 2012) and will be used

for comparison after the pilot is completed.

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Trusted Trader Initiative – Tier IBenefits of PIP

• Access to CBSA program experts• Reduced risk scoring in automated risking system• Recognition at the border• Use of FAST lanes• Enhanced reputation of being a low-risk trader; companies are better

positioned to achieve international recognition.

Next steps• Achieve harmonization with US C-TPAT• Introduce on-line client self-service and application processing (web-portal)• Provide further benefits for members (under consideration: expedited

exams and reduced risk scoring for additional modes.)

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Trusted Trader Initiative – Tier II• Initiate a pilot to permit access to expedited clearance for non-

federally registered food sector.• A process is being developed to allow CSA clearance for

commodities which are controlled or regulated by Other Government Departments (OGD) – After CSA clearance the importer will provide the data required by the

OGD once the goods have been physically received.• August 19, 2011 started a pilot project with an approved CSA

importer and CFIA, and the pilot.• Performance evaluation is currently underway with CFIA to

determine the success of the pilot and possible next steps.

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Trusted Trader Initiative – Tier II• Implement CSA: Trade Benefits (formerly Partners in Compliance)

benefits.

• Current CSA Importers will be able to apply for this enhanced benefit– Removed from general audit stream but may still be subject to targeted

compliance activities – Importer responsible for annual self testing– AMPS is not a first response to address non-compliance with Trade

programs.

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Trusted Trader Initiative – Tier II

• Extend eligibility and membership benefits for the Customs Self Assessment (CSA) program to non-resident importers in the United States.

• Regulatory analysis is complete and the process to change the necessary regulations is underway.

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Accounts Receivable Ledger (ARL)• CSA accounting options will be eliminated.

• All CSA Importers will be required to account for goods released/received in a calendar month (month one) by the 15th of the following month (month two).

• Payment will be due on the 15th of month two.

• Implementation date to be determined.

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CSA Offshore• Strategy

– CSA Importers must demonstrate:• the ability to stop, trace, locate, recall and control any offshore shipment

prior to freight loading, at port of arrival or after delivery at destination 24/7• stringent vendor screening criteria.

– Enhanced Trade Chain Partner (TCP) list submitted via Trusted Traders web portal.

– Advanced Commercial Information (ACI) for cargo, conveyance, crew and container routing information submitted for every shipment.

– Modified Advanced Trade Data (ATD) must be provided by the Importer• Business Number and Cargo Control Number.

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ePORTAL

Self Assessment CSA

Supply Chain Security PIP

Future Trusted Trader FrameworkFuture Trusted Trader Framework

LEVEL 2: Importers

LEVEL 1: Trade Chain Participants

Trade Compliance OGD

Clearance

CSA Offshore

Benefits focussed on expedited movement of goods

Benefits focussed on simplified/ streamlined border processes

US C-TPAT

DRAFT: For discussion purposes only

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Contact Information

André LamoureuxManagerNational Trusted Traders– Email: Andre.lamoureux@cbsa-asfc.gc.ca– Telephone: (613) 941-2713

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