TORONTO, (March 31, 2003) — While most shippers and carriers breathed a little easier in January when the U.S. Customs Service said it would restructure a controversial proposal to change its cargo release process, companies hauling food and other perishables are still on edge.

The U.S. Food and Drug Administration is moving forward with plans to require companies that make, process, pack, or warehouse food for export to notify the FDA by noon the day before their goods arrive at the U.S. border. The rule, part of the U.S. Bioterrorism Act, applies to food for human or animal consumption.

Truck fleets that do not “hold” food are not part of the pre-notification requirement. However, they must still register with the FDA before Dec. 12, and will be responsible for preparing loads and operating within the new time frame. “The carrier is still going to be very (reliant) on the fact shippers and importers do it correctly,” says Vincent Buscaglia, director of U.S. regulatory affairs for Toronto-based Livingston International, one of North America’s largest customs brokers. “They will pay the price at the border if it isn’t.”

Food haulers will have to prepare for pre-notification and registration requirements for both the FDA and U.S. Customs when that proposal is finalized later this fall. That means two separate requirements for the same shipment, and in the case of LTL loads, perhaps multiple requirements for a single trailer.

“I don’t like these regulations at all, but how are we going to change what’s happening? I’m not sure,” says Bruce Jantzi, vice-president of international operations for Erb Transport, a New Hamburg, Ont.-based refrigerated fleet. He says at Erb many shipments already are settled the day before, but expedited or “last minute” business could suffer dramatically. The cost of compliance could drive up rates. “In the long run that’s not going to make us very competitive as Canadian (carriers) going to the United States.”

Industry representatives hope the FDA will rethink its proposal in light of the vocal opposition to a U.S. Customs plan to require notification of arrival four hours before a truck is loaded in Canada for a shipment to the United States, and 24 hours prior to loading a truck in the U.S. bound for Canada. In the meantime, carriers and customs brokers scramble to keep up with new rules. “There’s such an environment of change right now that you’re finding communication breakdowns everywhere. People simply can’t keep up,” says Buscaglia. “It’s a pace I’ve never seen, and I’ve been in the customs business since 1968.”

The goal being promoted by stakeholders and large shippers is to streamline all the various clearance procedures under one mandate. FDA officials say the agency may consider harmonizing its pre-notification requirement with whatever the U.S. Customs Service ultimately decides to do, but that could take three or more years. “You would think the world’s two largest trading partners will be able to come up with a system that meets (the U.S.’) need for security, without adversely impact trade,” says Bruce Richards, president of the Private Motor Truck Council of Canada, whose many members both process and transport food. “In the meantime? I don’t know, what can you do? There’s a stop sign up ahead. I guess you have to stop.”