WINDSOR, Ont. (Jan. 19, 2005) — Now that the “soft enforcement” period is over for complying with U.S. Customs’ advance electronic cargo information rules, carriers are starting to see minimum fines of $5,000 for not following the requirement to the letter of the law.

The rules require non-FAST carriers (who after Jan. 30 will not be able to handle BRASS shipments) to submit Pre-Arrival Processing System (PAPS) data at least an hour before arrival. FAST-approved shipments are allowed more flexibility and carriers must pre-notify CBP of the load no later than 30 minutes before the driver arrives at the border.

Some carriers may think the fines are only levied against carriers who make no effort to forward the advanced paperwork, but as driver and small fleet owner Bill Cameron describes, U.S. Customs is getting serious even if carriers arrive just before CBP has a chance to process the data. “Imagine my surprise when my PAPS entry failed and I was informed by the customs broker that I was very fortunate not be fined $5000,” he says.

Cameron was indeed fortunate. Debbie Dent, president of Windsor, Ont.-based Customs services provider and consultant D. Dent & Associates, confirms several thousands of dollars in fines have been issued to carriers — mostly repeat violators — recently. “We’ve have about 20 to 30 fines in house right now issued to some customers,” she says, adding that most carriers getting slapped with fines were warned during the enforcement period. “There’s also situations where drivers have been told the penalties will be forth-coming, but their carriers haven’t actually been sent the penalties as of yet.”

There seems to be false sense of security from carriers and drivers who’ve forwarded their PAPS data, but haven’t confirmed its arrival before pulling up to U.S. Customs. “Most of the confusion for the carrier community is that they didn’t understand that even if they fax it an hour before, that still didn’t end their obligation,” says Dent. “They are the one responsible for verifying that it exists in Customs’ system at least one hour prior to (arrival). The clock starts ticking when CBP sends an electronic message back to the broker acknowledging that the data they received is acceptable.”

Doug Dunlop, owner of 47-truck short-haul fleet Dove Creek Carriers in Windsor, agrees most problems occur somewhere between the brokers’ and Customs’ office. He says whatever delays occur during that time are hitting just-in-time carriers based in close proximity to the border the hardest. “The problem of course, is that we’re in the short-haul business and we’re right on the border, so it places very (strong) demands on us,” he told Today’s Trucking this morning.

Causes for PAPS failures include, jammed or overloaded fax machines, incomplete documentation, credit issues between the broker and the client, or more likely, just a massive increase in the volume of work for the brokers.

“Realistically,” says Larry Hahn, director of regulatory affairs at Livingston International, “brokers need about two hours on top of the one-hour Customs requirement. That means the minimum interval should be no less than three hours, just to be safe.”

Dent says brokers need to be doing a better job of allowing carriers to access their PAPS information electronically. She says some, such as Great Lakes Customs Brokers, offer such info online (www.glcbi.com), while many others are still relying on phone call contact to verify clearance. “Trying to get through by phone sometimes is very (difficult),” she says. “Eventually, the carrier and drivers get frustrated and (the driver) just goes forward assuming he’ll be safe.”

U.S. CBP’s criteria for issuing penalties seems to be somewhat arbitrary, where the difference between a stern warning and a $5,000 fine can come down to the discretion of individual border officer.

Moreover, some carriers report that penalties can get reduced — even dropped to as low as $500 — by calling up CBP and appealing the fine. “There are cases where they’re handing out fines, but whether they’re sticking to it is another matter,” says Dunlop. “There may be some (carriers) pleading their case and getting off with a lighter sentence.”

Dunlop, who’s very well versed on all the Customs requirements, advises carriers to complete their due diligence and track the transaction in order to guard against mechanical failures of the system. He says his drivers have a PAPS fax confirmation record in case there’s a discrepancy at the Customs booth.

Eventually, says Dent, many of these issues will be resolved once the Automated Commercial Environment (ACE) is operational. The streamlined release systems protocol will allow approved carriers to release their cargo, driver, and equipment via the ACE Portal or electronic data interchange (EDI) messaging.

However, implementation was recently delayed after the first pilot project at the Surrey, B.C.-Blaine, Wash. border crossing was halted due to technical problems. That also pushed back the testing dates for the Windsor and Fort Erie, crossings. “Unfortunately until they can get Blaine operational again, they’re obviously not going to roll it out at the other ports yet,” Dent said.