In-bond moves allowed under new Canadian border program

TORONTO — Here’s one more reason for carriers and importers to get FAST or C-TPAT approved.

Thanks to the Canadian Trucking Alliance, a Customs and Border Services proposal that would have drastically changed how Canada-bound freight is treated at the border will not be implemented for certain, low-risk carriers.

An amendment to the Customs Act (Bill S-2) — which leads the way for Canada’s version of the ACE program, the Advanced Commercial Information (ACI) initiative — requires carrier and importer manifest data to be sent to CBSA prior to a truck’s arrival at the border.

An added provision would have eliminated the option of moving loads in-bond to an inland facility for clearance in situations where the e-manifest is not properly sent by brokers or received in advance by Customs. Inbound trucks, therefore, would have been turned around at the border.

CBSA announced, however, that it is retaining the "in-bond" option for carriers that participate in "low-risk" programs such as FAST, C-TPAT, PIP or CSA. Of course, the carrier must also be bonded with CBSA. Drivers moving goods in bond will also need to be deemed low risk, either by way of a FAST card or a CDRP card.

"Removing the "in-bond" option would substantially impact not only trucking companies, but the entire supply chain," said CTA boss David Bradley in a press release. "By continuing to allow low-risk carriers the ability to move goods in-bond to clear customs at a secure inland facility the CBSA is demonstrating a clear commitment to conduct enhanced risk assessment without unduly impeding trade."

Importers have expressed how the new IAD requirements will often prove difficult and time-consuming, especially for LTL shipments, explains CTA. If the IAD of one importer is not received on time, the whole shipment would be stopped and returned to the U.S. to await the eventual transmission of the data.

"Low risk carriers and drivers shouldn’t have to worry about being delayed or having to spend the night in a parking lot in Detroit or some such place, because his customer or his customer’s agent was not able to provide CBSA with all the required data in advance," says Bradley.

 


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