The No. 1 Contentious Issue with ACI eManifest – Consolidation


Numbers-one-600

Over the course of the ACI eManifest implementation period, the question that keeps cropping is

“Will CBSA alter their stance on the ‘one shipper, one consignee, one entry’ position?”

Monitoring this regulation closely, all indications and communications from CBSA point to a firm “No.”

In an effort to stick-handle around this regulation, many importers and carriers were looking to have multiple shipments consolidated at one U.S. facility and then moved on one BOL (bill of lading) showing the consolidation point as the shipper. One shipper, one consignee, one entry. Problem solved, right? Not so fast…

In a past conference call that we participated in, CBSA clarified their position on what does and what does not qualify as a consolidation. It is important to note that often when CBSA refers to a “consolidation,” especially as it relates to filing an ACI cargo report, they are talking about a group of shipments that is moved by a freight forwarder on one bill of lading,  then “de-consolidated” onto multiple “house bills” and customs cleared on individual entries. Regardless of that, the scenarios and guidelines listed below paint a pretty clear picture of what qualifies as a consolidation and when it is acceptable to file a single cargo report.

Transportation Scenario

Multiple shippers transport their goods to one common location in the country of export. The location consolidates the shipments onto one new bill of lading for transportation from the consolidation location to the consignee in Canada.

  • This scenario can require different eManifest submissions depending on what is stated on the Bill of Lading.
  • When CBSA reviews books and records, this review includes the billing documents, record of payment, individual bills of lading etc.
  • CBSA must be able to follow the audit trail from the pick-up of the cargo to the delivery of the cargo through the source documents that must be retained and provided to the CBSA upon request. (Section 22 of The Customs Act)

Example #1

4 individual Bill of Ladings from 4 different U.S. Shippers to 1 Canadian Consignee

The shipments arrive at a U.S. carrier’s terminal or warehouse location to consolidate the shipments for transportation from the terminal/warehouse to the consignee in Canada (they could have been transported to this location by different transportation companies or by the same one).

  • Each U.S. shipper has a separate contract of carriage with the carriers and each shipper has prepared their own bill of lading indicating a U.S. shipper and a Canadian consignee.
  • These are international movements.
  • A new BOL is created indicating the U.S. carrier terminal/warehouse as the shipper with the same Canadian consignee.
  • This example will require house bill submissions from Freight Forwarders

Example #1 eManifest Requirements

This would be a consolidated shipment:

  • The CBSA would accept one ACI cargo transmission from the carrier as per the single contract of carriage or bill of lading.
    • Carrier would be required to indicate “Yes” for the Consolidated Freight Indicator field of the cargo map as the audit trail and source documents will reflect a true consolidation with multiple shippers and one consignee.
  • The CBSA would expect multiple paper house bills or ACI house bill transmissions (future eManifest release) from the freight forwarder.
  • Multiple PARS would be submitted by the importer/ customs broker quoting the multiple house bills.

* It is important to note that, for highway carriers wishing to border clear all four shipments on PARS at the port of arrival, the above scenario would require four ACI cargo transmissions and four customs entries.

Example #2

4 individual Bills of Lading from 4 different U.S. Shippers to 1 central U.S. Carrier Terminal/Warehouse

The shipments arrive at a U.S. carrier’s terminal or warehouse location to consolidate the shipments for transportation from the terminal/warehouse to a single consignee in Canada

  • Each U.S. shipper has a separate contract of carriage with the carriers indicating a U.S. shipper and the terminal/warehouse as the consignee.
  • These are domestic movements.
  • A new BOL is created indicating the U.S. carrier terminal/warehouse as the shipper and a Canadian consignee.

Example #2 eManifest Requirements

This would be a non-consolidated shipment:

  • The CBSA would expect one ACI cargo transmission as per the single contract of carriage or bill of lading.
    • Carrier would be required to indicate “No” for the Consolidated Freight Indicator field of the cargo map.
  • The Carrier is required to submit one CCN for this scenario even though the cargo is originally shipped from multiple shippers.
  • One PARS would be submitted by the importer/ customs broker quoting the single CCN.

So, if you were able to make it through the above without nodding off, you will have picked up that the key issue here is the original bill of lading and CBSA’s ability to establish and follow an “audit trail.” Quite simply, if multiple shipments are moved from various points in the U.S. into a central terminal location, on domestic bills of lading showing that terminal as the destination, and, if a new bill of lading is generated showing that central location as the shipper, and the Canadian destination as the consignee, you can submit one cargo transmission and one PARS entry. It is important to note that this bill of lading is a legal document and must be supported by the domestic bills of lading that moved the cargo into the consolidation point. Further to this point, it is critical to know that this procedure should not be used merely in an attempt to circumvent the regulations and that in the case of a CBSA audit, you will be required to present all original bills of lading.

In virtually all other scenarios involving multiple shippers to a single consignee, you will be required to file multiple cargo transmissions, and multiple PARS entries will be required for customs clearance.

It appears as though it may be time for importers, carriers and customs brokers to prepare themselves for the inevitable fact that the clearance of multiple shipments on one entry will soon be a thing of the past.

We hope that this helps to bring some clarity to what we have found to be the most contentious and hotly debated issue surrounding the implementation of the ACI eManifest program. If you have any questions about ACI eManifest, please do not hesitate to contact our Carrier Relations Liaison at 855.542.6644  or via email at carrierhelpdesk@pcb.ca. Should you need assistance in filing eManifests, Pacific Customs Brokers offers both self and full-service eManifest filing.

If you are just getting on board with ACI eManifest and are a little unsure of how the program works and how it will affect your business, we recommend attending our upcoming ACI eManifest Seminars and Webinars wherein we will discuss how the program works in-depth and answer your questions.

We also welcome your questions regarding ACI eManifest and its implementation in our comments section below.

 
 

ACI eManifest Requirements Now Mandatory


After many delays and  false starts, as of May 6, 2015,  ACI eManifest regulations are now in effect. As per the eManifest regulatory amendments published in the Canada Gazette, Part II, we have summarized the impact on highway carriers below.

What does this mean for highway carriers?

  1. Carriers who have not yet registered are advised to do so immediately and may contact Pacific Customs Brokers for help with this process.
  2. Carriers who have registered for the program but have not yet begun to file are advised to begin as soon as possible so that they are fully compliant at the deadline.
  3. Carriers who have registered for the ACI eManifest program and have already been transmitting ACI eManifest data, will carry on with business as usual.

The following is an official notice from Bruna Rados, Director General, Information, Science and Technology Branch, CBSA.

I am pleased to advise that on May 6, 2015, regulatory amendments supporting the Canada Border Services Agency’s (CBSA) eManifest initiative were published in the Canada Gazette, Part II. This final step in the Government of Canada’s regulatory process makes the eManifest requirements for highway carriers, rail carriers and freight forwarders, as set out in the regulations, legally binding. Today, the CBSA website has been updated to inform stakeholders that the following implementation timelines apply to eManifest requirements for highway carriers.

 

Implementation Timelines:

eManifest requirements for highway carriers are now mandatory and the following implementation timelines apply:

  • From May 6, 2015, to July 10, 2015, the CBSA will provide carriers with a period of transition during which penalties for non-compliance will not be issued.  The Agency will work closely with carriers on corrective measures to help them comply with eManifest requirements.
  • From July 10, 2015, to January 10, 2016, carriers who do not comply with eManifest requirements may be issued zero-rated penalties (non-monetary) under the CBSA’s Administrative Monetary Penalty System (AMPS).
  • Beginning January 10, 2016, carriers who do not comply with eManifest requirements may be issued monetary AMPS penalties.

This is an important milestone in eManifest implementation and the CBSA continues to offer industry support in their transition to eManifest through online resources and dedicated client support.

How Pacific Customs Brokers can help:

Pacific Customs Brokers offers both self and full service eManifest filing. We also provide ACE e-Manifest filing services for shipments into the USA.

Get Your eManifest Questions Answered

Pacific Customs Brokers is fully aware of just how intimidating this whole program can seem. Carriers and customs brokers both work towards a common goal – getting the shipment to the customer as quickly and efficiently as possible. In our ongoing effort to provide a wide variety of carrier-related services, and to help you prepare for this regulation, we are offering a series of ACI eManifest Seminars and Webinars in the coming weeks. In these 90-minute sessions we will answer questions, offer practical solutions and help with the ACI eManifest regulations in effect.

For details and to register »

If you have any questions about ACI eManifest, please do not hesitate to contact our Carrier Relations Liaison at 855.542.6644  or via email at carrierhelpdesk@pcb.ca.

For the latest updates on eManifest visit the Carrier News section of our website regularly or sign up for our weekly Border Pro newsletter. Additionally, you’ll find the Your Broker Knows YouTube channel to be an excellent resource.

 
 

Interesting Cocktails – Taste Success: A Tale of Two Cities


AMCAHM-interesting-cocktails-graphic-May2015-1000pxDedicated to the expansion of cross-border trade between Canada and the U.S, the American Chamber of Commerce – Pacific Chapter, aims to keep its membership and the larger trade community at the forefront of trade and investment challenges and issues.

Over the past several decades, many restaurant brands have tried to expand across the Canada-U.S. border. While many survive the chopping block only a few make the cut. Opening shop in the U.S. marketplace is not easy. But Earls has created a winning recipe using a few secret ingredients. Two of the busiest and most popular Earls Restaurants are among its newest, those in Miami and Somerville. On May 13, come taste success and hear Mo Jessa, President of Earls Restaurants serve up a tale of pushing beyond western roots and expanding in these two cities.

  • Guest Speaker: Mo Jessa, President of Earls Restaurant
  • Date: Wednesday, May 13, 2015
  • Time: 5:00 PM-7:00 PM
  • Place: The Loft at Earls Yaletown, 1095 Mainland Street , Vancouver BC
  • Host: No-Host Bar (Guests pay for their drinks); Canapés served
  • Cost: Member – $30; Affiliate Member – $50; Non-Member – $60
  • RSVP: Please complete and return this Registration Form 
  • RSVP Deadline: Thursday, May 7, 2015

[Note: Tickets will not be mailed; we will confirm your purchase by email and names will be confirmed at the door.]

RSVP Now

About Mo Jessa

Mo Jessa started with Earls as a junior prep cook over 25 years ago as a summer job while attending university. In 1991, while working as a senior cook, Mo returned to school taking his Red Seal Certificate/Journeyman Chef papers. He went on to be sous chef and eventually chef of various Earls restaurants in the Alberta region and in 1995 was transferred to BC as Regional Chef overseeing five locations.

His love of the industry and openness to learn and grow as a chef and leader, lead to further studies, including a Masters Certificate Hospitality Management from Cornell University, and in 2000 Mo became Executive Chef of Earls Restaurants Ltd, taking over from then Chef Chuck Currie.

In 2004, as a further example of how Earls promotes their people on a merit based system from within, Mo was promoted to Vice President, Operations where he oversaw the companies’ growth to 60 locations in Canada and 5 in the US. As President  of Earls Restaurants Ltd. Mo continues to work alongside CEO Stan Fuller to ensure Earls well-loved brand continues to achieve goals and culinary growth, delivering irresistible food and engaging experiences to all their guests, while overseeing current and new locations.

About Earls

Earls Restaurants Ltd. and the Fuller Group is a family owned operation started by Leroy Earl (Bus) Fuller in 1982 with their first restaurant in Edmonton, Alberta.  Earls Kitchen + Bar (Earls is not a franchise) is operated by son Stan Earl Fuller. Earls head office is located in Vancouver, British Columbia. Awarded Top 50 Employers in Canada, Earls employs close to 7,000 employees.

 

RSVP Now

What is ‘Interesting Cocktails’?

Interesting Cocktails’ is AmCham Canada – Pacific Chapter’s  networking event, featuring a guest speaker with expertise in international trade. Speakers bring insightful presentations on various business topics and current business challenges.  It is a casual evening and a great opportunity to network and ask questions of industry professionals.

Who should attend:

Business owners, CEOs, Senior Executives, decision makers, entrepreneurs and business professionals in the import/export arena will find this of particular interest. This event is open to all Canadian and U.S. businesses, large and small with a vested interest in cross-border trade and forming new business relationships.

Please share this with colleagues who might be interested.

For more information, visit www.AmChamCanada.ca

 

Related blog post:

Join AmCham Canada for Some ‘Interesting Cocktails’

 
 

BC Seafood Expo and Workshop: How to Get Your Product from Here to There


BC Shellfish & Seafood Festival  Comox Valley – Vancouver Island

 

How to Get Your Product from Here to There; Cross Border Trade and Distribution Channels to Grow Business

Seafood has no borders, but countries do. To succeed in an increasingly competitive marketplace, the industry must be connected globally. In this session you will learn how your company can supply global customers through cross border trade activity, and gain greater understanding of international trade & tariff logistics, Canadian export requirements, strategic air, freight and transportation channels and regulations such as Air Cargo Security requirements.

Event Details:

Date: Sunday, June 14, 2015
Place: Comox Valley
Time: 2:15pm – 3:15pm
Hosted and Sponsored by: Flying Fresh Freight
Moderated by: Sandy Moreland, Flying Fresh Freight
Registration: Follow this link to REGISTER NOW

Speakers:

1. William Lee, P. Log, CCS, CTCS, CIFFA
Pacific Custom Brokers
Air Freight Manager with PCB Freight Management – a sister company to Pacific Customs Brokers. William has over 25 years of experience in the transportation, warehousing, and logistics industry.

2. Jim Wang
Transport Canada

3. Sandy Moreland
Flying Fresh Freight
A career in the Aviation and Aviation related businesses, that has included working with some of the world’s best airlines, such as Air New Zealand, Singapore Airlines and Cathay Pacific, having worked and lived in Hong Kong, Australia, New Zealand and North America.

 

REGISTER NOW »

 

 BC Seafood Expo & Workshop Series

This event is one of the many industry workshops offered in the BC Seafood Expo & Workshop Series.
Leaders in the fields of aquaculture research and development, exporting, shipping, innovation & knowledge mobilization and certifications, will present professional development and industry sessions for aquaculture producers, suppliers and distribution chain providers, coupled by an Aquaculture Industry Tradeshow Expo. Concurrent seminars for the general public will feature Chefs, local shellfish and aquaculture educators and leaders to share cooking techniques, discuss environmental impacts on aquaculture, and more.
MORE INFO »

 
 

Cross-border Trade Seminar: Doing Business in the USA


Doing Business in the USA

A weak loonie makes U.S. sales more valuable.  Learn from trade experts on how to remove border barriers, take advantage of the exchange rate and earn up to 20% extra on your U.S. sales. This comprehensive seminar is designed to give Canadian manufacturers, importers, exporters, distributors, and other business professionals the tools they need to easily expand their business across the border into the USA. Together, a group of seasoned Canadian, American and international trade experts will provide practical guidelines to entrepreneurs and professionals at this one-day seminar.

Discuss your own specific needs, plans and opportunities when you meet with our expert speakers and resource people during the one hour Round Table Session.

Key topics include:

  • U.S. Commercial Real Estate
  • Canadian Government Programs and Services
  • U.S. Sales and Marketing Strategies
  • U.S. Banking and Financial Services
  • International Insurance Strategies
  • U.S. Travel and Immigration Planning
  • U.S. Business Planning and Taxation
  • U.S. Business Formation and Legalities
  • Canada and USA Distribution and Logistics
  • U.S. Customs and NAFTA Guidelines

Download a complete event agenda here.

Who should attend?

Canadian importers and exporters, manufacturers, distributors and business professionals interested in expanding their business across the border into the USA.

Event Details:

  • Date: Thursday, May 7, 2015
  • Time: 8:00 am – 4:00pm
  • Place: Delta Town and Country Inn, 6005 Highway 17A (at Highway 99), Delta, BC
  • Cost:
    • $195 pre-registered;
    • $225 at the door;
    • $145 group rate for 2+
    • Early birds save $25 if registered on or before May 1st, 2015
  • Registration: https://crossborderseminar1505.eventbrite.com
  • Contact:  Carol Jackson at 1.800.799.8848 or visit www.UCanTrade.com

Presented and Sponsored By:

  • Greg Boos, USA Immigration Attorney, Cascadia Cross-Border Law
  • Rob Gilfillan, Int’l Sr. Tax Manager, Moss Adams LLP, CPAs
  • Gene Moses, USA Business Attorney
  • Jim Pettinger, President, International Market Access, Inc.
  • Lou Kaszubski, U.S. Licensed Customs Broker, Pacific Customs Brokers Inc.
  • Roland King, Senior Vice President, Banner Bank
  • Corky Boozé, Broker, Sterling Real Estate Group
  • Grant Gilmour, Partner, Gilmour Knotts, CAs
  • Dave McFarlane, Managing Director, Business Development, HUB International
  • Canadian Trade Commissioner Service