Archive for the ‘Highway Carrier’ Category


 

In-Bond Trailer and Container Sealing Requirements

 

container-forklift-600Carriers who move goods in-bond from the First Port of Arrival (FPOA) into Canada may need to seal the trailer and/or containers as required by Canada Border Services Agency (CBSA).

Shipment sealing is required for:

  • Carriers who are participating in a CBSA Trusted Trader Program
  • Cargo that is controlled or regulated by an Act of Parliament
  • Cargo moving in-transit
  • Conveyance and containers moving from FPOA to a CBSA examination location as directed by CBSA.

Some exemptions apply to these sealing requirements when customs is overseeing the movement.

These exemptions include:

  • Inland Inspection
    Customs Self Assessment (CSA) carriers may move in-bond goods without a seal except in cases when CBSA requires an inland inspection. In this case CBSA would affix a seal on the load at the FPOA for transport to the examination warehouse. The load must then be delivered to the release point and/or examination warehouse designated by CBSA with the seals intact. If company seals are already affixed CBSA will accept those seals and notate them.
  • High Risk Convoy
    CBSA may permit a load to move in-bond to a destination under the convoy of a Border Services Officer (BSO), where the nature or type of vehicle is considered high risk. In this case the carrier will be expensed for the time and labour of the BSO to convoy and examine the shipment.

Tips:

  1. Ensure the seal remains intact
    This company seal must remain intact unless CBSA performs an examination at the FPOA. If the seal did not remain sealed and/or the seal was broken without CBSA approval, penalties may incurred.
  2. eManifest requirements
    When a company places a seal on a trailer, vehicle or container that contains in-bond goods, the seal number must be noted correctly on the pre-arrival conveyance transmission.

Please note, CBSA has the right to seal any conveyance, container or compartment at any time.

Have a question regarding in-bond trailer or container sealing requirements? Share them in the comments section below or email Ask Your Broker.

Highway eManifest: A Year in Review

 

It has been just over a year since eManifest became mandatory for highway carriers. On July 10, 2015, full compliance of eManifest came into effect and since January 11, 2016, non-compliant carriers may have been issued a Administrative Monetary Penalty System (AMPS) penalties.

The Canada Border Services Agency (CBSA) at the Pacific Highway port of crossing reports that for the most part, carriers have been compliant. However the occasional carrier has arrived without an eManifest filed. Additionally, some carriers do not report multiple pickups on a single Pre-Arrival Reporting System (PARS).

Here is a quick review of how a carrier can be compliant when filing an eManifest with CBSA:

  • Transmission of Electronic Data Interchange (EDI) cargo and conveyance data must be received and validated by CBSA no later than one hour before the arrival at the First Port of Arrival (FPOA).
  • All cargo data must be accepted by CBSA and on file in order to be subsequently linked to a conveyance. If a conveyance is transmitted quoting a cargo control number (CCN) that is either not on file or in reject status, the conveyance will be rejected.
  • The highway cargo submission will include but is not limited to:
    • A CCN that begins with the carrier’s 4-digit alphanumeric, CBSA-assigned carrier code followed by a unique reference number assigned by the carrier or service provider
    • Port of report and port of destination
    • A description of the goods
    • Shipper and consignee name and address
  • The CCN and Conveyance Reference Number (CRN) cannot be the same.
  • A machine readable bar code must be presented to the officer at the FPOA. The bar code must either be the CRN or the CCN or both.
  • Unless subject to an exemption or exception (see ECCRD or D-Memorandum for exemptions and exceptions) the carrier must provide a cargo submission to the CBSA for each shipment destined to Canada not being cleared as CSA.
  • Changes (pre-arrival) or amendments (post-arrival) to cargo data should be made as soon as they are discovered. Electronic changes by clients will be accepted up to the FPOA of the goods.

Failure to submit an eManifest or report all shipments can lead to a penalty of $2000 to $8000 Canadian Dollars per shipment not reported. Additionally, the carrier’s truck and shipments can be refused entry until an eManifest is filed within the prescribed time limits.

Pacific Customs Brokers is a third party service provider and knows how to be compliant with filing your ACI eManifest. Contact us at 855-542-6644 or email us [email protected]

Advance Trade Data: End State eManifest Process for In-Bond Shipments

 

 

 

 

Currently carriers and freight forwarders who have filed security with Canada Border Services Agency (CBSA) are considered “bonded” and therefore permitted to carry goods in-bond from the First Port of Arrival (FPOA) to an inland destination for examination and/or release. The trade community benefits greatly from this type of movement of goods and CBSA recognizes that to not allow this would pose a significant challenge.

With the implementation of eManifest, CBSA continued to allow in-bond movements as long as the pre-arrival data was provided by the carrier within the prescribed time frames. However, once mandatory, in addition to the requirement for highway carriers to provide advance cargo and conveyance data, importers will be required to submit Advance Trade Data (ATD) for that in-bond shipment in a new end state process.

Advance Trade Data

The ATD elements that importers will soon be required to submit include:

  • Importer of Record (IOR) number, name and complete address
  • Country/State of Origin
  • Country/State of Export
  • Commodity H.S. code to the 6th digit
  • Name and complete addresses of Manufacturer/Supplier, Seller/Vendor, Exporter (if different than the seller), Buyer/Purchaser, and Consignee (if different than the buyer)

Once ATD is mandatory, CBSA will receive and risk assess the carrier’s pre-arrival cargo and conveyance data as well as the importer’s ATD. If the importer’s ATD submission has not been received upon the carrier’s arrival at the FPOA, CBSA will determine:

  • If the carrier and driver are not members of a CBSA Trusted Trader Program, the shipment will not be permitted to move in-bond until the ATD is provided and risk assessed.
  • If the carrier and driver are approved members of a CBSA Trusted Trader Program, the shipment will be permitted to move in-bond to an approved warehouse.

Trusted Trader Programs

This end state process provides benefits to carriers who have invested in these programs.

CBSA has not yet announced when ATD for highway shipments will become mandatory for importers; however, for carriers who transport goods in-bond into Canada, it may be prudent to research becoming a member of a Trusted Trader Program if not a member already.

Are you an approved member of a Trusted Trader Program? Which program did you choose? Share your experience of the application process or any tips you may have in the comments section below or email us at Ask Your Broker.

Single-trip Bonds: An Alternative for Non-Bonded Carriers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

What is a non-bonded highway carrier to do when they have an opportunity to pick up a load that needs to travel in-bond through Canada? One alternative is to obtain a single-trip bond.

Bonds issued by the Canada Border Services Agency (CBSA), whether single-trip or annual, allow highway carriers to move goods inland to a sufferance warehouse for release or ‘in-transit’ through Canada for furtherance to a point outside of the country.

In order to become an annually bonded carrier with CBSA, carriers must have a carrier code, post financial security of up to $25,000 as well as fill out an application. However, to obtain a single-trip bond the process can be completed on an as-needed basis.

A single-trip bond can be acquired by the carrier directly through CBSA at the First Port of Arrival (FPOA) by filing security using cash or certified cheque or by engaging a customs broker who provides this service.

Goods moving on a single-trip bond are linked to the carrier code of the carrier moving the goods, a bond authorization number and Cargo Control Number (CCN) printed on a Cargo Control Document (CCD). This allows for reporting, tracing and acquittal of each shipment by CBSA.

CBSA expects the single-trip bond process to be limited and declining in use and as such this process remains paper-based.

The process for a single-trip bond movement of goods:

  1. The highway carrier will transmit cargo and conveyance data as a frontier release prior to arriving at the FPOA.
  2. At the Primary Inspection Line (PIL), the driver will declare that a single-trip authorization is required to move the goods inland. The carrier will then provide a lead sheet to the Border Services Officer (BSO) with the a bar coded CRN or a bar coded CCN and handwritten CRN.
  3. The BSO will refer the driver inside for primary processing to apply for a single-trip bond.
  4. The carrier will present a completed paper re-manifest (A8A) to the BSO. The officer will stamp the A8A allowing the carrier to move the goods inland. The clearance is then processed as an in-bond movement.
  5. The A8A copies will be split as they were pre-emanifest carriers will not be penalized for handwriting the CCN onto the A8A being used to re-manifest, single-trip in-bond movement.
  6. Goods must go to the destination that CBSA has allowed the carrier to carry the goods to as per the bond. The single-trip bond naturally ends at the destination of the goods.
  7. The carrier is required to retain all records relating to this single-trip bond for three (3) years plus the current year.

Pacific Customs Brokers can assist carriers with both annual and single-trip bonds by contacting our carrier help desk at [email protected].

Have you used or are you contemplating using a Single-trip Bond? If you have recently or in the past, what were the advantages and disadvantages you have faced? Share your experiences in the comments section below or email us at Ask Your Broker.

ACI eManifest Exemption for Empty Containers

Pallets

Instruments of International Trade (IIT) such as empty shipping tanks, pallets, baskets, bins, boxes, cartons, crates, totes and trays, also known as Ottawa File and Container Banks, may be exempt from ACI eManifest submission regulations for highway and rail carriers. As noted in the Electronic Commerce Client Requirements Document (ECCRD), these containers must be registered under Ottawa file and issued container bank numbers in order to be exempt.

In order to qualify the containers for the ACI eManifest transmission exemption, carriers must still transmit conveyance data as well as the following additional steps:

  1. Include the IIT indicator in the cargo submission.
  2. Verbally report the IIT to the Canada Border Services Agency (CBSA) officer at the First Port of Arrival.

The determination of whether the equipment qualifies as an IIT and its classification are the responsibility of the importer/customs broker and must be reported and accounted for at the first time of arrival in Canada.

Where a Container Bank has been authorized by CBSA, a company can import containers or a like quantity of similar containers on a duty and tax free basis. To operate a Container Bank, a company must apply in writing to the CBSA for authorization. The letter requesting permission to operate a Container Bank should be sent to the Manager of Regional Programs in the applicable region.

Have you used or are you contemplating using a Container Bank? If you have used the program in the past what are the advantages and disadvantages you have faced? Share your experiences in the comments section below or email us at Ask Your Broker.