WASHINGTON — Starting in January 2006, the paper user fee decal issued to trucks arriving at land border ports of entry is being replaced by a transponder.

This transponder, based on a RFID tag, is the same one that is used to identify trucks used by carriers participating in the Free and Secure Trade (FAST) program.

However, the Ontario Trucking Association is reporting delayed delivery of transponders and problems that have occurred in the development of CBP automated systems. Therefore, the new process will likely not be fully ready for implementation on January 1, and Customs will implement enforcement discretion procedures from January 1, 2006 to January 31, 2006.

According to OTA, the following procedures shall be established:

Vehicles that possess a transponder issued by CBP and installed on their windshield will be assumed to have paid their 2006 annual user fee.

Purchasers will receive a receipt that identifies every conveyance for which the annual user fee has been paid. Purchasers have been instructed to make this copy available for inspection by a CBP Officer upon arrival in the U.S. CBP Officers should ask for this proof of payment when they are unsure if the fee has been paid, OTA says.

Other evidence of payment may be accepted such as screen prints or copies of completed applications and any other evidence that the carrier has accessed the Mellon Bank system to pay their 2006 annual user fee.

If the carrier is unable to produce any of the above or if the driver of the conveyance is unaware of the payment of the fee, the single crossing user fee should be charged according to port procedures, OTA says.

Sufficient decals should be issued and the appropriate technology to validate the user fees should be available no later than February 1, 2006. Carriers should continue to carry proof of payment as a backup for the rest of 2006, OTA advises.

CBP is advising carriers to place the transponder horizontally on the inside lower left of the truck’s windshield at least 2 1/2 inches away from the metallic frame but within a band 4 1/2 inches from the bottom of the windshield. Transponders cannot be affixed to the wing-windows. Once applied, the transponder is NOT removable.

The transponder should remain on the vehicle for the life of the transponder even if the vehicle is sold, CBP says. Removing the transponder will render it inoperable.