Partners in Protection (PIP)
Evaluation Study

Notes

1. It was originally called the Carrier Memorandum of Understanding (MOU) program within the Customs and Trade Administration Branch of Revenue Canada. [Return to text]
2. It was originally called the Carrier Memorandum of Understanding (MOU) program. [Return to text]
3. FAST is a joint CBSA and U.S. Customs and Border Protection (CBP) program offering pre-authorized importers, carriers and drivers expedited border clearance processes for eligible goods. FAST provides participating importers and carriers with faster and more predictable border clearance, enabling the CBSA and CBP to refocus resources on higher- risk movements. [Return to text]
4. C-TPAT is a U.S. C B P program whose purpose is to secure the entire supply chain, both domestic and foreign, of goods imported to the United States. Participants must meet minimum security requirements and designated best practices . CBP supply chain specialists verify compliance in the United States and around the globe. [Return to text]
5. SPP Deliverable 2.1.1: “Develop targets to increase percentage of FAST shipments at agreed upon FAST locations, including joint marketing activities.” [Return to text]
6. One RIO is assigned to each region. Two RIOs, assigned at 0.5 full-time equivalent (FTE) each, deliver PIP in the Prairies Region.  The budget for the 2006– 2007 fiscal year also provides for one additional FTE each for the Fort Erie –Niagara and Pacific regions, an additional 0.5 FTE for the Windsor –St. Clair and a total of 1.5  FTEs for the Prairies Region. [Return to text]
7. Declaration of the Customs Co-operation Council on the Further National Development of Memoranda of Understanding Between Customs and the Trading Community Aimed at Co-operation to Prevent Drug Smuggling (24 June 1992). The Customs Co-operation Council was re-established as the World Customs Organization in 1994.  As a “goodwill” agreement, a MOU is used to enhance the relationship between the CBSA and members of the trading community, thereby committing the private sector organization and the CBSA to work in partnership to enhance border security, combat terrorism and organized crime, increase awareness of customs compliance issues and help detect and prevent contraband smuggling. [Return to text]
8. This includes two individuals who, in lieu of an interview, provided detailed replies to a questionnaire. [Return to text]
9. Invitation letters and e-mails were sent to all PIP partners enrolled as of January 16 , 2006.  Companies who had applied to PIP, but had not yet been accepted, were excluded from the survey, as was the one partner based outside North America. [Return to text]
10. The response rate was calculated by comparing total responses to the sample frame.  Due to invalid e-mail addresses, letters that could not be delivered, etc., the sample frame for the survey was 1,426. [Return to text]
11. Quebec companies: 20% of PIP participants, 12% of survey respondents; companies that joined PIP within the last two years: 72% of PIP members, 54% of survey respondents; companies that joined PIP more than two years ago: 28% of PIP members, 43% of survey respondents; manufacturers: 8% of PIP participants, 15% of survey respondents; warehouse operators: less than 1% of PIP members, 8% of survey respondents; brokers: 3% of PIP members, 6% of survey respondents. [Return to text]
12. WCO documents reviewed included the Declaration of the Customs Co-operation Council on the Further National Development of Memoranda of Understanding Between Customs and the Trading Community Aimed at Co-operation to Prevent Drug Smuggling (24 June 1992); the Resolution of the Customs Co-operation Council on Security and Facilitation of the International Trade Supply Chain (June 2002); the Customs Co-operation Council High Level Guidelines for Co-operative Arrangements Between Members and Private Industry to Increase Supply Chain Security and Facilitate the Flow of International Trade (13  May 2003);the Framework of Standards to Secure and Facilitate Global Trade (June 2005); and the Resolution on “Mutual Recognition,” approved by the WCO’s High Level Strategic Group (September  2005). [Return to text]
13. http://www.cbsa-asfc.gc.ca/media/facts-faits/027-eng.html [Return to text]
14. Securing an Open Society: Canada’s National Security Policy. [Return to text]
15. Data on the total number of trading companies is not readily available in a consistent manner from any one source; the figures shown must be taken as approximations or estimates only. The number of highway, marine, air and rail carriers (obtained from the CBSA) includes bonded carriers only (i.e. companies that are involved in sufficient cross-border movement of goods that they post security (“bond”) with the CBSA to cover customs duties and taxes that have not yet been paid). The number of warehouse operators and customs brokers (also obtained from the CBSA) includes those entities that are licensed by the CBSA.  The number of importers was obtained from Transport Canada, based on Statistics Canada data, and represents the number of companies that imported goods valued at more than $1 million in 2004 (the most recently available data).  It should also be noted that some PIP participants are more than one type of company (e.g.  some are both importers and brokers or carriers and warehouse operators). [Return to text]
16. Constitution Act, 1867.  See section 91.10 of the Act: “Navigation and Shipping.” [Return to text]
17. Within Revenue Canada and the CCRA, PIP was managed in the Enforcement Directorate of the Customs and Trade Administration Branch and the Contraband and Intelligence Services Directorate of the Customs Branch. [Return to text]
18. Separate from PIP, all RIOs attend the standard three-week Regional Intelligence Officers course. In addition, virtually all RIOs start as b order services officers.  Border services officers receive at least eight weeks of training, in addition to mandatory training specifically related to the area in which they will be working. [Return to text]
19. These results exclude the 15% who answered “not applicable” to survey question 17 (How satisfied are you with the level of knowledge of the CBSA officers who were assigned to work with you?). The actual responses were “very satisfied”: 47%; “somewhat satisfied”: 24%; “somewhat dissatisfied”: 2%; “very dissatisfied”: 1%; “don’t know”: 12%; “not applicable”: 15%. [Return to text]
20. WCO , Framework of Standards to Secure and Facilitate Global Trade (June 2005), p. 6. [Return to text]
21. The ISPS Code is designed to improve security in maritime shipping and requires port facilities and ships to comply with mandatory security requirements. [Return to text]
22. The CBSA does sign Memoranda of Understanding Between the Canada Border Services Agency and Carriers and Customs Service Providers for Export Reporting and MOUs with air carrier companies pursuant to obligations imposed on transporters under the Immigration and Refugee Protection Act. [Return to text]
23. Travel times to visit partners are significant for all officers, except for those assigned in the Niagara –Fort Erie, Windsor –St. Clair and GTA regions. [Return to text]
24. Starting in November 2005, money earmarked for the Canadian Food Inspection Agency through the PSAT umbrella is being redirected to the PIP program.  This amounted to $950,000 for the 2005 –2006 fiscal year and will total $174,000 for the 2006 –2007 and subsequent fiscal years. [Return to text]
25. This evaluation measured application processing time by comparing the date of receipt of the completed security questionnaire from the applicant to the date of signature by the CBSA President. [Return to text]
26. These results exclude the partners who responded “not applicable” to the questions regarding the contribution of outreach/awareness sessions to increase employees’ awareness and improve their skills. [Return to text]
27. The materials include posters, pamphlets, note pads and indicator sheets. [Return to text]
28. Nine RIOs in the regions manage 1,114 partners, while three senior program officers at HQ together deal with 350 partners (the program’s foreign residents and multi-national companies). [Return to text]
29. The proposals call for 11 additional RIOs in the regions and three at HQ to manage the partners. [Return to text]
30. C-TPAT participants are encouraged to provide tips about suspicious activity, but C-TPAT officers pass this information to intelligence officers who process it further. [Return to text]
31. This number includes tips received by RIOs directly (as indicated in RIO reports to HQ) and tips called into the Border Watch Toll-Free Line. It should be noted that only 14 calls to the Line have been specifically attributed to calls from PIP partners, although this is likely an understatement. NRAC data indicates that the source of almost half the calls to the Line since April 2004 was “not provided.” It is also likely that PIP played a role in generating some calls attributed to other sources. [Return to text]
32. These include two narcotics seizures, three seizures of other illicit drugs, one contraband cigarette seizure, one smuggled jewellery seizure, one counterfeit clothing seizure, one interdiction of stolen vehicles being exported, one arrest of an illegal migrant, one recovery of a missing vehicle, and two other seizures for which the details are unknown. [Return to text]
33. These results exclude the 35% who answered “not applicable” to survey question 14E (How satisfied are you with the ease of accessing the Border Watch TIP line?). [Return to text]
34. Possibly including, for example, extending the circumstances in which the Agency can offer relief to clients from penalty assessments. Currently, penalty relief agreements are to be used only “in situations where substantial AMPS penalties have been applied as a result of unforeseen systemic problems within the client’ s processes” and not in relation to clients such as PIP participants demonstrating compliance through meeting its requirements. [Return to text]
35. The concept of Mutual Recognition of AEOs is part of the WCO’s Framework of Standards to Secure and Facilitate Global Trade (June 2005). Customs administrations of WCO countries are encouraged to recognize each other’s AEOs. These are companies that have met a set of pre-determined security standards and best practices, providing a level of assurance that their internal policies and procedures afford adequate safeguards concerning the security of their shipments. [Return to text]
36. See the WCO High Level Strategic Group, Resolution of the High Level Strategic Group on the Framework of Standards to Secure and Facilitate Global Trade (October 2005) (http://www.revenue.go.ke/knowledgemanagement/pdf/ccc/Resolution%20on%20the%20Framework%20of%20Standards%20(October%202005).pdf), and the document titled “Mutual Recognition” (22 September 2005), issued by WCO High Level Strategic Group, 4th Meeting. [Return to text]