CTA obtains CBSA clarification on equipment rules

OTTAWA, (Oct. 5, 2004) — The Canadian Trucking Alliance was recently advised of several situations in which carriers were told by the Canada Border Services Agency that they couldn’t bring U.S. trailers into Canada in the course of cross-border operations.

Examples vary, but in most cases the situation involved Canadian tractors hauling a U.S. trailer loaded with U.S. goods. In at least one other case, a loaded U.S. trailer was brought across the border for an in-transit, intermodal move through Canada to a destination in the U.S.

It seems that CBSA has taken the position that in order to approve these types of moves, the equipment must be tax paid in Canada. CTA officials have met with the director of carrier and cargo control with CBSA to argue that such a position would create a clear inequity for Canadian versus U.S. cross-border carriers, and that the Customs Tariff needs to be amended if in fact this is how it’s being interpreted.

CBSA said agreed, and said it would revise and clarify the Customs Memorandum used to interpret the Customs Tariff. The agency has asked CTA to survey carriers on any suspect situations or misunderstandings involving U.S.-equipment utilized by Canadian carriers. Any information provided to CTA will be treated in confidence, the association says.