OTTAWA — As every Canadian cross border trucker knows all to well, Canada historically hasn’t been as strict on enforcing cabotage rules as the Americans are.

That appears to be changing.

According to the Canadian Trucking Alliance, the Canada Border Services Agency (CBSA) has issued a new Customs Notice on the point-to-point movement of domestic freight in Canada by foreign-based motor carriers, commonly referred to as cabotage.

Both Canada and the U.S. have nearly identical cabotage rules and only permit such movements in very narrowly defined circumstances. However, it’s widely known that the Americans are usually more zealous in making sure foreign carriers don’t drive equipment point-to-point on their soil.

The notice does not mean a change in the rules, which have been in place for well over a decade, but, the CTA notes, it’s a reminder of what the rules are and perhaps signal that CBSA will be paying closer attention to the activities of foreign carrier operations in Canada.

CBSA has indicated it will conduct post-release compliance verifications and issue sanctions against violators.

Equal Plights: Canada is poised to get strict
with domestic movements of foreign equipment.

CTA President David Bradley applauded the announcement, saying it could finally equal the playing field between Canadian and U.S. cross border haulers.

"The rules are, quite frankly, very complicated — on both sides of the border — so whatever can be done to improve the level of understanding about them is a step in the right direction," he said.

However, he said there still needs to be a joint approach to modernizing the cabotage rules in both countries, namely by providing more flexibility to foreign carriers when moving empty trailers.

"We’re not talking about wide-open cabotage, but I think if anyone were to take a step back and look at the situation, and see different rules for trucks and the people who drive them, and restrictions on something as simple as re-positioning an empty trailer, they would realize that this is an area that is crying out for reform."

The CTA and its counterparts at the American Trucking Associations even appealed to the EPA that changing the archaic empty trailer movement rules would be environmentally beneficial, but to no avail.

Until the policy is relaxed, however, "it is imperative there be a level playing field in terms of compliance with the law," says Bradley.

The rules governing trucking cabotage generally forbid domestic hauls by foreign truckers, except when the move is "incidental to the international traffic of the imported or exported goods."

CBSA’s notice now clarifies that to mean:

Only one incidental (domestic) move is permitted per international trip; the move must follow a route consistent with the international route of the imported or exported goods; domestic goods can be carried as part of a re-positioning move, but only if the vehicle is en route to pick up a scheduled load for export from Canada, and the drop off point of the goods is in a direct line to the pick-up of the export load.

CTA notes the clarification only covers trucking equipment. Foreign drivers, who fall under the authority of Citizenship and Immigration Canada, are forbidden from making point-to-point domestic moves unless they have obtained a temporary work permit.