Border Commercial Consultative Committee (BCCC)

Record of Meeting

September 29 and 30, 2009

• Item 1: External members meeting and Issue Log Review
• Item 2: Welcome / Opening Remarks
• Item 3: Report on External Members Meeting and Issue Log Feedback
• Item 4: Sub-committee (SC) Report and Assessment
• Item 5: Other Government Department (OGD) Single Window Initiative (SWI) Update
• Item 6a: Goods Contaminated with Soil
• Item 6b: CFIA Meat Inspections
• Item 7: Service Strategy
• Item 8: National Highway Offload Policy and Contract
• Item 9: Border Threat and Risk Assessment
• Item 10: Examination Process
• Item 11: Customs Self Assessment (CSA) Offshore Expansion Proposal
• Item 12: eManifest
• Item 13: NEXUS / Free and Secure Trade (FAST)
• Item 14: Administrative Monetary Penalty System (AMPS) Update
• Item 15: Other Business
• Item 16 and 17: BCCC Governance and Closing Remarks

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Day 1 ― Tuesday, September 29, 2009

Item 1: External Members Meeting and Issue Log Review

Presenters: All members

Summary and issues raised:

See item # 3.

Item 2: Welcome / Opening remarks

Presenters: Cathy Munroe, Admissibility Branch

Action items:

The Canada Border Services Agency (CBSA) to provide an update on organizational change issues at the next meeting of the Border Commercial Consultative Committee (BCCC).

Summary and issues raised:

Cathy Munroe indicated that BCCC meetings are constructive and is appreciative that a high level of commitment exists on all issues. It is important to ensure agenda items generate productive discussion.

Ms. Munroe indicated that Stephen Rigby, President of the CBSA, initiated a stock-taking exercisewithin the CBSA and indicated that, for the next meeting, a discussion should be held regarding where the CBSA is going as an organization.

Item 3: Report on External Members Meeting and Issue Log Feedback

Presenter: Larry Hahn, Livingston International

Action item:

Presentation at a future BCCC meeting on core services and cost recovery (Barry Desormeaux, David Quartermain).

Address concerns regarding the new Amtrak facility/process in Lacolle, Quebec (Natasha Alimohamed).

CBSA to keep BCCC up-to-date on the Partners in Protection (PIP) initiative (Claude St-Denis).

Each sub-committee should consider how to leverage PIP, and consider how all Trusted Trader programs could be leveraged (Sub-committee co-chairs).

BCCC members to provide Larry Hahn input on Issue Log priorities (BCCC members).

Issue Log: add tabs for CBSA contact information and closed items and footnote the 9/30/09 Examination Process presentation (BCCC Secretariat).

Determine whether information could be packaged and shared with Trade on upcoming surveys, audits and evaluations that might impact Trade.

Summary and issues raised:

Members indicated an interest for open discussion on CBSA resource challenge issues.

BCCC concerned if CBSA core services diminish and would welcome briefings.

Trade indicated that the impacts of the Olympics are a concern to them (a supplemental presentation was made on Day 2 and is reflected in the minutes below).

Members want to be kept apprised of Partners in Protection (PIP) developments, including the Web portal.

Members support electronic export reporting and recommend also including other government departments (OGD) requirements.

FAST lane usage: a suggestion was made that the CBSA consider forgiving Administrative Monetary Penalty System (AMPS) for Customs Self Assessment (CSA) clients, similar to the Importer Self Assessment approach in the U.S.

BCCC Issue Log: members approve of recent amendments; will provide input on priority rankings for issue log items; would like to see an additional tab for closed items and one with CBSA contact names, telephone numbers and e-mail addresses.

BCCC members asked whether the CBSA could communicate upcoming surveys/evaluations/audits to provide members forewarning.

Item 4: Sub-committee (SC) Report and Assessment

Presenter: Various BCCC members

Action items:

Co-chairs to convene next sub-committee meetings as appropriate.

Business Simplification Initiative (BSI) sub-committee to make recommendation at next BCCC regarding the creation of a Service Strategy sub-committee (SC) (see item #7). The 28 suggested business improvements should also be prioritized (Peter Boutilier).

CBSA to send the Contingency Plan and list of key contacts to BCCC (Stuart MacPherson).

Distribute a complete listing of sub-committee members with the Record of Meeting (Secretariat).

Summary and issues raised:

Administrative Monetary Penalty System (AMPS) Sub-committee (SC) presented by Sandi Villeneuve: BCCC members would like the SC to continue until the new regime is fully implemented, and suggest updating the mandate.

Business Simplification Initiative (BSI) SC presented by Corinne Pohlmann: This SC continues to be active, with the next meeting scheduled for November 10, 2009. The SC identified 28 business improvements with enhanced client service as the key focus. It has collaborated on the development of a Business Lens checklist to be introduced this fall to help standardize and balance CBSA program and project development by also considering impacts through a "business lens".

Contingency Planning (CP) SC presented by Janice McBride: The mandate is still relevant but may be updated (next SC meeting late 2009 / early 2010); the Contingency Plan along with the key contacts should be distributed by the CBSA in October 2009. The United States is still wrapping up their deliberations and, once this is completed, issues involving Canada and the US will be worked on jointly.

Electronic Data Interchange (EDI) SC presented by Larry Hahn: This SC has not met for more than two years. Initially this SC was very active and raised the bar regarding the number of Commodity lines for pre- and post-importation requirements. A suggestion was raised to review the report previously developed to determine if this SC is still required.

Examination Process (EP) SC presented by Kym Martin and James Moram: The necessity for this SC was identified at the April 2009 BCCC meeting held in Toronto. The SC along with the mandate and Terms of Reference were created in July 2009. This SC will continue to move forward.

Systems Outages (SO) SC presented by Brian Bowen: This SC was created in November 2008. The mandate is still relevant and all parties agree that this SC should continue to other modes after the Highway Contingency plan is implemented at the end of November 2009.

Other Government Department (OGD) Single Window Initiative (SWI) SC presented by Carol Osmond: The mandate remains relevant, but the focus should be expanded beyond Single Window, and OGD representation should be tailored to the particular issue.

Additional discussion items:

To be considered a Sub-committee of the BCCC, issues must have broad reach and longer-term timelines, whereas Working Groups are shorter-term or more narrowly focused in scope.

Every two years a stock-taking should be conducted of the BCCC Sub-committees. This includes a review of the SC mandate and an analysis to determine if the SC still meets the purpose for which it was created. A BCCC member who also sits on the respective SC will lead on the report out to BCCC.

Item 5: Other Government Department (OGD) Single Window Initiative (SWI) Update

Presenter: Raymond Bedard, Admissibility Branch and Franco Germano, Innovation, Science and Technology (IS&T) Branch; Kristine Burr and Richard Thivierge, Transport Canada (TC); Sylvie Bruneau, Canadian Food Inspection Agency (CFIA)

Action items:

CBSA President Stephen Rigby to contact OGD counterparts to ensure SWI participation and Cathy Munroe to meet with OGDs to ensure engagement.

Coordinate OGD SWI Sub-committee meetings every two months to ensure effective Trade consultation (Raymond Bédard).

Consider setting up an OGD-Trade workshop/walk-through exercise (Raymond Bédard/Franco Germano).

Keep BCCC aware of OGD consultative fora (Raymond Bédard).

CBSA to contact TC on why Air Cargo Security is not accepting Partners in Protection / Customs-Trade Partnership Against Terrorism (PIP/C-TPAT) (Claude St-Denis).

Summary and issues raised:

A CBSA overview of the current progress of the OGD SWI was provided indicating that Needs Assessments have been completed and the legislative/regulatory review analysis phase should be completed by spring 2010. The CBSA is developing a Pathfinder solution with anticipated implementation by summer 2010. The next steps for the OGD SWI include engaging and working with the Trade community (including possibly holding a workshop); Pathfinder implementation summer 2010; Completion of the Business Case for August 2010.

Two OGDs were present to give a summary of their involvement with the OGD SWI:

1. Ms. Burr, Assistant Deputy Minister, TC, provided an update on her department's involvement. The OGD SWI is strongly supported by TC who has been involved from different angles, including: Road Safety and Motor Vehicle Transportation; the Transport of Dangerous Goods; and the Economic Analysis Group. The Department has identified some challenges including a legislative requirement to provide written signatures and the need to ensure that stakeholders will make use of the OGD SWI systems.
2. Ms. Bruneau, National Manager, CFIA, indicated that they have 14 programs involved in this initiative, for which they've developed Needs Assessments and conducted Legislative/ Regulatory reviews and are now examining necessary data elements. CFIA receives weekly data dumps of the Harmonized System (HS) codes to see what goods are coming into Canada. CFIA are active partners with CBSA electronic commerce and are currently looking at electronic certification.

Item 6a: Goods Contaminated with Soil

Presenter: Raymond Bédard, Admissibility Branch

Action item:

Send a list to Trade of the commodities that are commonly soil-contaminated (Raymond Bédard).

Send information to Trade on how to apply to the CFIA for 'certified' wash facility status and CFIA's approval criteria for certified mobile wash facilities (Raymond Bédard).

Before Feb 1/10, provide feedback to the CBSA regarding this change in policy (BCCC members).

Summary and issues raised:

Goods that are contaminated with soil are not admissible to Canada. To facilitate the treatment of these goods, the CBSA had allowed non-compliant goods to move to non-bonded facilities to be treated, which is contrary to existing commercial policies requiring bonded movement of these goods.

Future procedures will ensure that goods requiring remedial action will either be treated by a CFIA approved mobile wash facility within a customs controlled area, or refused entry and removed from Canada. A Customs Notice will be issued with a one-year adjustment period for importers. Trade is being asked for their opinion on the impact of these procedures.

Wash facilities are owned and operated by the private industry; however, CFIA can certify qualifying facilities fairly quickly when a request is received.

Item 6b: CFIA Meat Inspections

Presenter: Raymond Bédard, Admissibility Branch, CBSA; Sylvie Bruneau, CFIA

Action items:

CFIA/CBSA will invite OGD sub-committee members to a teleconference in October to further discuss procedural changes and Trade concerns (Raymond Bédard).

Summary and issues raised:

The present manner in which meat shipments of U.S. origin are processed involves the CFIA providing 72 hours notification to the importer/broker that their meat shipment has been selected for inspection at a registered inland meat inspection facility.

CFIA is working towards removing the advance notice, effective December 2009. CFIA will thereafter advise the CBSA which shipments will be inspected and the CBSA will inform the carrier at the port of entry. Certificates will still be required.

A suggestion was made to consider using U.S. Department of Agriculture Inspection Houses for mutually recognized inspections.

Trade indicated that, without advance notice, a number of issues need to be addressed such as drivers' hours, equipment availability (e.g., refrigerated vehicles), and hours of operation.

Item 7: Service Strategy

Presenter: Candace Breakwell and Stephen Fryer, Admissibility Branch

Action item:

Provide feedback regarding the Service Strategy Action Plan to Peter Boutilier (BCCC members).

Summary and issues raised:

A presentation was provided on the CBSA's effort to create a Service Strategy Action Plan.

Having moved from the research phase towards consultation, the CBSA desires feedback from the Trade community, including (potentially) creating a BCCC Sub-committee.

Trade indicated that performance measurement should be built into the strategy. Additionally, the CBSA should look at best practices of the private industry (or include them in the development process) and consider focusing on a few themes (such as compliance, facilitation and responsiveness).

At its next meeting on November 10, 2009, the BSI Sub-committee will discuss the role, terms of reference and possible make-up of a Service SC to support the Service Strategy Project and report back to BCCC at its next meeting.

Day 2 ― Wednesday September 30, 2009

Item 8: National Highway Offload Policy and Contract

Presenter: Elizabeth Childers, Operations Branch

Action item:

CBSA to convene a conference call in late October to discuss issues (Elizabeth Childers).

Summary and issues raised:

Carriers are required to present the goods they are transporting when requested by the CBSA. The CBSA engages a third party for highway offloading services and is working with Public Works and Government Services Canada (PWGSC) on a new contract, possibly moving from a national to regional contracts.

The CBSA welcomes the views of the Trade community on the number of contracts, length of contract and type of equipment the offload provider should maintain to provide optimum service.

Trade recommends that service standards and hours of service be nationally consistent, clearly articulated and that contract elements and duration are optimally devised in the Request for Proposal.

Item 9: Border Threat and Risk Assessment

Presenter: Kimber Johnston and Ken Lamontagne, Enforcement Branch

Action item:

The CBSA was asked to identify to what extent statistically PIP has benefited CBSA interdictions and whether trends could be shard with PIP members to further enhance enforcement (Ken Lamontagne).

Summary and issues raised:

An overview was provided of the CBSA Border Threat and Risk Assessment which is reassessed biannually and assists the CBSA in focusing enforcement efforts.

Topics discussed included terrorism; Chemical, Biological, Radioactive, Nuclear and Explosive (CBRNE) materials, drugs; firearms, tobacco, proceeds of crime; irregular migration; food, plant and animal; strategic exports.

This presentation was well accepted by the Trade community and a suggestion was made to have this topic addressed at future BCCC meetings.

Item 10: Examination Process

Presenter: Kym Martin, Enforcement Branch

Action items:

Share results of process mapping at next BCCC meeting (Kym Martin, James Moram)

Send updated presentation to members (BCCC Secretariat).

Summary and issues raised:

An overview of this new sub-committee (SC) was provided including announcing its co-chair (James Moram) and its mandate, which was ratified by BCCC. Issues have been grouped into five clusters: Health and Safety (Fumigants); Service Standards; Communications; Financial Impacts; and Exports, each with its own priorities.

Focus is on Service Standards first, in the marine mode. First step is 'process mapping'. Trade asked that "outliers" (a statistic that is markedly different in value from others in the sample) be considered in addition to averages when process mapping is done. It was also suggested that the sub-committee consider involvement of terminal operators and port authorities as needed.

Broader implications of the (Highway) Offload Policy should be examined by this committee at some juncture in the future.

Trade indicated that usage of the Nordico machines in Montreal and Toronto as well as formaldehyde testing remains an issue; however, they are very pleased with the SC and feel that all ongoing issues will get resolved.

Item 11: Customs Self Assessment (CSA) Offshore Expansion Proposal

Presenter: Joy Aldous, Admissibility Branch

Action items:

Once a decision is made to proceed, the CBSA is to send an e-mail to broaden consultations towards a more detailed design committee (Joy Aldous).

Summary and issues raised:

An update was provided on the discussions around providing an option to CSA importers for goods shipped from offshore countries. The CSA offshore option would give importers the choice of clearing goods by the regular commercial stream as per eManifest requirements or of using CSA clearances with minimal transactional data.

Under the CBSA proposal, the CSA importer will be required to provide an enhanced Trade Chain Partner list for offshore shipments and provide updates when changes to the list occur. The carrier will be obligated to provide full Advance Commercial Information (ACI) including crew, cargo and conveyance information. CSA importers will be obligated to confirm that the shipment is legitimate by providing minimal information on a transactional basis, and this information will be required electronically and in accordance with eManifest time frames for importer data.

Item 12: eManifest

Presenter: Glenda Lavergne and Mike Leahy, Innovation, Science and Technology (IS&T) Branch

Action item:

Use of regional coordinators to help communicate evolution of changes and encourage communication - List of regional coordinators to be sent to BCCC members (Elizabeth Childers).

Clarify "informed compliance" time window - (Mike Leahy).

Consider using U.S. Automated Commercial Environment (ACE) programs as mechanisms to notify clients of eManifest progress (Jason Proceviat).

Summary and issues raised:

An update was provided on eManifest. Key accomplishments include Bill S2 receiving royal assent in June 09; the Highway in-transit pilot is currently in the testing mode with the U.S. and an external client; and CBSA continues to participate in Trade events to build awareness of eManifest.

The eManifest Stakeholder Partnership Network (eSPN) has had five consultation sessions which involved the eSPN Design Working Group, the eSPN Technical Design Working Group and the eSPN Steering Committee. In May and June 2009 the eManifest project team conducted cross-country consultations to gather feedback on the eManifest Portal prototype (with the Trade participants' overall experience positive, recording satisfaction levels ranging from 90% to 100%). The CBSA is continuing to review Importer Admissibility Data (IAD).

The next steps for the implementation of eManifest Highway for spring 2010 include drafting of the regulatory amendments; completion of joint testing with U.S. of highway in-transit pilot; finalized Electronic Commerce Client Document (ECCRD) for highway mode. Portal timelines have been pushed back to fall 2010. Updates on the eManifest project will be published on the CBSA Internet and provided through the BCCC Secretariat.

Trade recommended that the CBSA not lock into a rigid implementation schedule and consider implementing importer requirements on a "by mode" basis, following the U.S. approach which focuses on importations in the marine mode. Trade also asked if the mandatory requirement for eManifest in highway mode would be based on the availability of the Web Portal, with the CBSA confirming that the timing for mandatory filing would be based on the roll out of the portal.

To assist with outreach, specifically to U.S. truck carriers, it was suggested that the CBSA use the Cargo System Messaging Service (CSMS) feature within the U.S. ACE to broadcast messages to Trade.

Supplemental item: CAN/AM Conference Highlights

Presenter:James Phillip; Canadian/American Border Trade Alliance (CAN/AM BTA)

Action items:

Elizabeth Childers agreed to follow up with Barry Desormeaux, Director, Operational Performance Division to determine whether the CBSA is working with the U.S. on time standards and wait times for Commercial.

Summary & issues raised:

Highlights from a recent CAN/AM conference were provided, including Trusted Travellers, Western Hemisphere Travel Initiative (WHTI) and Wait Time studies.

Item 13: NEXUS / Free and Secure Trade (FAST)

Presenter: David Quartermain, Admissibility Branch

Action items:

Post FAST updates on the CBSA Web site (e.g., Ontario commercial drivers licence expiration issues) (David Quartermain).

Explore opportunities to promote the use of Nexus in non-Nexus lanes (David Quartermain).

Summary and issues raised:

Newly reissued NEXUS and FAST cards are WHTI compliant. An announcement is imminent as to whether the cards will be accepted as proof of citizenship and identity when entering Canada by land or marine.

NEXUS continues to expand with two additional ports (Lansdowne, Ontario-Alexandria Bay, New York State; and St. Stephen, New Brunswick-Calais, Maine). NEXUS membership has increased by 43,000 in six months with projected membership of 400,000 by January 2010.

The CBSA is finalizing the Trusted Traveller Strategy in accordance with the Report on Plans and Priorities. Items being examined are the online access of Traveller Declaration Cards to enhance client service, and possible gains in efficiencies by using "flex" lanes for both NEXUS and regular traffic.

There was some level of discussion on the identification of frequent travellers who would benefit most from NEXUS program membership (although there may be Privacy Act concerns), and on the use of Radio Frequency Identification (RFID) technologies and electronic signage for dedicated RFID lanes.

Additional topics addressed included a recommendation to increase personal exemptions to reduce wait times and eliminate the need for declaration cards. The CBSA indicated that changing personal exemption limits (which were recently increased) is a Department of Finance responsibility.

Item 14: Administrative Monetary Penalty System (AMPS) Update

Presenter: Lorne Lawson and Colleen McGonigle, Admissibility Branch

Action items:

Provide additional information and statistics on the effects of making Harmonized System codes mandatory, and information on what percentage of cases compliance of 100% is being obtained (Joy Aldous).

Schedule a sub-committee meeting circa early Dec '09 to review/update the sub-committee mandate, provide feedback to Trade on their July '09 input, etc. (Rachel Auclair).

Summary and issues raised:

The Implementation Strategy was presented to BCCC for comments. The policy portion of the AMPS Review is complete and the CBSA has undertaken systems changes to phase in the new AMPS Regime beginning in April 2010 and continuing through to 2012 when penalties are to be collapsed and contraventions will be renumbered.

Trade indicated they had concerns with the delayed implementation but were advised this was the result of a "restricted change window" resulting from the 2010 Olympic and Paralympic Games.

The Master Penalty Document and Guidelines are being updated and will be posted on the CBSA Web site when consultations are completed, which is expected to be in the first quarter of FY 2010-2011. A communication strategy and a training package are being developed.

Supplemental item: CBSA Preparations for 2010 Olympic and Paralympic Games

Presenter: Brent Patten, Operations Branch

Action items:

Send out electronic presentation to members (Secretariat).

Summary & issues raised:

An overview was provided of the CBSA's preparations for the 2010 Olympic and Paralympic Games in Vancouver. The CBSA has created an Olympic and Paralympic Task Force to ensure that the current level of integrated border services is delivered, and to continue to balance the CBSA mandate of facilitation and security during the Games.

Trade asked about increased examinations and "do not load" messaging. The CBSA will risk manage commercial shipments not associated with the Games.

Item 15: Other Business

Presenter: Lorne Lawson, Admissibility Branch

Action items:

Courier issue log to be distributed to BCCC for comments (Joy Aldous).

Export regulations review issue log to be distributed (Dan Vrecic).

Comments relating to Partners in Compliance (PIC) should be sent to Joy Aldous (BCCC members).

The CBSA to send out a request for participation on an Arctic Issues working group (Elizabeth Childers).

An overview of regional operations will be provided at next BCCC meeting (Richard Comerford).

Summary and issues raised:

Courier / Low Value Shipment (LVS) Program Review:

• The Courier/LVS program review has identified a number of issues that require solutions in order to modernize this program. An issue log has been developed with key stakeholder input. The CBSA will distribute the issue log to BCCC members for comment. If additional associations would like to participate in establishing priorities they may contact Joy Aldous or the BCCC Secretariat.

Export Regulatory Review:

• The CBSA is consulting stakeholders on its review of the export reporting regulations in order to modernize this program. An issue log has been developed and consultations will continue through December 2009. The CBSA will distribute the issue log to BCCC members.
• Trade supports mandatory electronic export reporting, but any new systems would need to offer flexibility.

Partners In Compliance (PIC):

• The PIC pilot will continue to run with existing membership; however no new applicants are currently being accepted. BCCC can send comments regarding the pilot to Joy Aldous. Additional discussion items:
• James Moram indicated the need for discussions on the issue of commercial shipping in the Canadian Arctic.
• Cathy Munroe indicated that there will be Regional CBSA participation at all BCCC meetings. An overview of regional operations will be provided at a future BCCC meeting.
• Need to work collaboratively to resolve issues around reporting on the Great Lakes.
• Consider emulating U.S. border courtesy techniques (thanking their clients for supporting Customs and Border Protection (CBP) initiatives).
• Trade indicated an interest in the development of the CBSA's future Border Vision.

Item 16 and 17: BCCC Governance and Closing Remarks

Presenter: Cathy Munroe, Admissibility Branch

Action items:

Arrange the next BCCC meeting in March 2010 (BCCC Secretariat).

E-mail suggestions for improvement of BCCC meetings to Cathy Munroe (BCCC members).

Summary and issues raised:

Ms. Munroe thanked everyone for their participation and asked members to provide her with any suggestions for improvements to BCCC meetings. There was general agreement that the next BCCC should be held in March 2010 in Toronto.