TORONTO — Despite the wide-scale promotion of the Free and Secure Trade program over the last few years, only 38 percent of companies that export goods to the US knew anything about the program, according to a new study.

The report — conducted by Léger Marketing for FedEx Express Canada — details Canadian exporters’ views on cross-border trade.

When asked about the FAST — a joint effort by the Canadian and US governments to help move pre-approved goods across the border quickly by verifying trade compliance away from the border — a large number of respondents seemed clueless.

Exporters must be better versed on customs procedure: FedEx study

Despite an overall lack of awareness, when the FAST program was explained, 81 percent agreed that a shipper should be FAST certified and 71 percent said it would influence their decision when choosing a service provider.

“By becoming FAST certified and using a transportation provider that is FAST certified, importers and exporters could cut down their border delays significantly, saving time, money and frustration,” says Rajesh Subramaniam, president of FedEx Express Canada. “There is definitely a need for more education about these programs in the industry. FedEx has seen the value in FAST certification, as we are able to move shipments into Canada in a timely manner, ensuring all regulations are met and the paperwork has been completed properly.”

According to the study, it’s not so much lack of patrols or truck congestion causing delays at Canada-US border crossings, but a lack of understanding of paperwork and procedure among Canadian exporters and carriers. It found that three quarters of Canadian exporters have their shipments held up at the border occasionally, while a quarter said this happens to at least half of their shipments.

Respondents stated that shipments are frequently held up waiting in line at the border for processing and examination at customs, often because of a glut of faulty paperwork and incorrect information provided to customs.

“One quarter of exporters indicated that they’ve noticed an increase in delays at the Canada-U.S. border, which they attribute to a growing list of regulations designed to strengthen border security,” says Dave Scholz, vice-president, Léger Marketing. “Furthermore, these delays often take more than a day to clear up and have a number of adverse effects on companies, from lost money to damaged reputation.”

The FedEx study — based on a nationwide telephone study of 404 Canadian businesses exporting products to the US — also found that most exporters are unaware of upcoming changes to government regulations and, when asked, were not able to correctly identify when information for their shipments must be received by customs.

Although the vast majority of companies said they experience delays at the border, only one-third said they find shipping to the US to be difficult.

“These responses suggest that too many Canadian exporters are hampered by border delays,” says Rajesh. “Exporters feel that these delays, as well as increased security measures, are a necessary evil of the cross-border economy, but it doesn’t need to be that way. There are government programs and FedEx services in place that can ease these delays – without compromising security.”

According to a report from the Ontario Chamber of Commerce, a conservative estimate of the negative impact of border delays on Canada is CDN $8.34 billion a year, or $952,000 per hour.