Rail Pre-arrival and Reporting Requirements

Memorandum D3-6-6

ISSN 2369-2391

Ottawa, August 17, 2015

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In Brief

This memorandum has been revised to:

  • (a) Include pre-arrival, arrival, and post arrival eManifest processes, cancelling Memorandum D12-4-1;
  • (b) Include in-transit processes, cancelling Memorandum D3-6-7
  • (c) Remove references to the Post Audit program, which ended ;
  • (d) Denote the Division and Branch names current appellations

This memorandum outlines and explains specific Canada Border Services Agency’s (CBSA) requirements and procedures for reporting and controlling cargo imported into Canada by rail carriers.

This memorandum does not outline the policies and procedures for the reporting of goods under the Customs Self-Assessment (CSA) Program; consolidated cargo reporting requirements and process for freight forwarders; goods whether commercial or personal transported by an individual who does not meet the criteria for designation as a carrier or goods being exported from Canada, Other Government Departments (OGD) requirements pertaining to the commercial importation/in-transit movements of regulated goods; or Other Government Departments (OGD) requirements pertaining to the commercial importation/in-transit movements of regulated goods.   

Memorandum D3-1-1, Policy Respecting the Importation and Transportation of Goods, should be referred to for the general CBSA requirements and administrative policies that apply to all modes of transport. For guidance in regards to the Customs Self-Assessment (CSA) Program guidelines and procedures, please refer to Memorandum D3-1-7, Customs Self Assessment Program for Carriers. For information about the reporting and transportation of goods being exported from Canada refer to Memorandum D3-1-8, Cargo – Export Movements. For information on the release of commercial goods, please refer to Memorandum D17-1-4, Release of Commercial Goods. OGD requirements can be found throughout the D Memoranda series.


Guidelines and General Information

Definitions

1. The following definitions apply to this memorandum:

ACI
Advance Commercial Information
AMPS
Administrative Monetary Penalty System
Ancillary equipment
Any equipment which enhances the safety, security, containment and preservation of goods carried in vehicles falling within the terms of tariff item 9801.10.10. Ancillary equipment can be imported pursuant to tariff item 9801.10.20 without documentation in accordance with the Reporting of Imported Goods Regulations, when it is used in international service. A dolly or device used to link trailers would be considered ancillary equipment.
Buffer car
A rail car that can be either empty or loaded with a non-hazardous inert material, that makes up a section of train for the protection of the train crew from hazardous or combustible materials and the materials themselves, from sources of ignition.
CACM
Conveyance Arrival Certification Message
Cargo
A term used to describe a collection of goods or shipment. It consists of a grouping of related goods. The cargo is detailed on the waybill, the manifest or a Cargo Control Document.
Cargo Control Document (CCD)
A manifest or other control document that acts as the record of a shipment entering or exiting Canada e.g. A8A.
Cargo Control Number (CCN)
The Cargo Control Number is a number assigned to a transport document. It uniquely identifies cargo detailed on a cargo submission. The Cargo Control Number consists of the Carrier code followed by a unique reference number assigned by the Carrier/Representative and cannot contain spaces. 1st 4 characters = CBSA approved carrier code.
Carrier
For the purpose of assessing carrier code eligibility, the CBSA defines a carrier as the entity operating a conveyance transporting specified goods to Canada. To operate a conveyance means to have legal custody and control of the conveyance as:
  • (a) an owner;
  • (b) a lessee under a lease or agreement of hire;
  • (c) a charterer under an agreement of hire;
  • (d) as a purchaser under a conditional sale or hire purchase agreement that reserves to the vendor the title to the conveyance until the purchase price is paid or certain conditions are performed; or
  • (e) a mortgagor.
Carrier code
As stated in the Customs Act, means the unique identification number issued by the Minister either under subsection 12.1(4) or before the coming into force of that subsection.
Client
Anyone who:
  • (a) sends to the CBSA a collection of information; or
  • (b) receives notices from the CBSA
Commercial goods
goods that are or will be imported for sale or for any commercial, industrial, occupational, institutional or other similar use
Consignee
The definition of consignee is to be understood as follow given the applicable context:
  • (a) The consignee definition to be used by carriers when transmitting electronic ACI/eManifest data: The name and address of the party to which the cargo/goods are being shipped to as shown on carrier’s contract of carriage (for example: bill of lading, air waybill or other shipping document).
  • (b) The consignee definition used with respect to freight forwarders who are providing the CBSA with detailed information pertaining to a consolidated shipment will be: The name and address of the party to which the cargo/goods are being “shipped to” as shown on carrier’s contract of carriage (for example: bill of lading, air waybill, or other shipping document).
  • (c) The consignee definition used with respect to freight forwarders who are providing the CBSA with detailed information pertaining to a deconsolidated shipment will be: The name and address of the party to which the goods are being “shipped to” as shown on the commercial sales contract (for example: commercial invoice, bill of sale, or other sales contract).
  • Note:The freight forwarder is limited to the information they have on hand at the time of the transmission. The consignee may change more than one time throughout a voyage to Canada. The freight forwarder will provide updates to the transmission as they receive updated information.
  • Example: For business or legal reasons goods are consigned to a bank (foreign or Canadian domestic) or “to order” of a bank. In this case, the consignee field of the house bill transmitted by the FF will reflect the party to whom the goods are legally consigned at the time of transmission (the bank). If the goods are sold while en route, and/or if the bank chooses to endorse the goods to a third party (as per the “to order”) or if the consignee information otherwise changes; the FF will submit an electronic update to the house bill data as soon as they become aware of the change, updating the consignee field.
Consolidation
A number of separate shipments grouped together by a consolidator or freight forwarder and shipped to an agent or a freight forwarder as one shipment under one bill of lading and reported to Customs on one cargo control document.
Conveyance
Taken from Customs Act, 2(1). Any vehicle, aircraft or water-borne craft or any other contrivance that is used to move persons or goods.
Conveyance operating carrier
The carrier company operating the conveyance transporting goods to Canada. This is true whether the carrier company owns the conveyance outright, leases the conveyance, or whether any type of security interest is registered on the conveyance.
Conveyance Reference Number (CRN)
A unique reference number given by the carrier to a certain journey or departure of a means of transport. The first 4 characters must be the carrier code and the remaining characters equal the carrier-assigned conveyance reference number and cannot contain spaces. Note: the conveyance reference number cannot be greater than a max of 25 characters.
Conveyance transmission
A conveyance transmission is the package of conveyance data that is transmitted. It is comprised of the conveyance reference number (CRN) along with the corresponding conveyance data, as well as a cargo control number for each shipment on the conveyance
Courier Low Value Shipment (CLVS)
LVS goods being imported under the courier LVS program by an approved courier. Courier LVS goods are exempt from the eManifest process.
CSA
Customs Self-Assessment
ECCRD
Electronic Commerce Client Requirements Document
EDI
Electronic Data Interchange - CBSA’s Electronic Data Interchange (EDI) systems allow clients to electronically transmit their import or export data, as well as their accounting documents, to the CBSA. These systems facilitate the CBSA’s ability to quickly process low-risk goods, focusing resources on identifying potential threats to Canada’s safety and security. EDI is a set of standards for structuring information to be electronically exchanged between and within businesses, organizations, government entities and other groups. These standards prescribe the formats, character sets, and data elements used in the exchange of business documents and forms. The term EDI is also used to refer to the implementation and operation of systems and processes for creating, transmitting, and receiving EDI documents.
FPOA
First Canadian Port of Arrival
FPOI
First Point of Intervention - indicates the first stop in Canada where the CBSA has the opportunity to board the rail conveyance, question crew, and/or exam cargo.
Freight forwarder
A person who, on behalf of one or more owners, importers, shippers or consignees of goods, causes specified goods to be transported by one or more carriers.
Hand-carried goods
Goods that will be released after they have been accounted for and all duties with respect to them have been paid under subsection 32(1) of the Act if
  • (a) the goods are or will be in the actual possession of a person arriving in Canada; or
  • (b) the goods form or will form part of a person’s baggage and the person and the baggage arrive or will arrive in Canada on board the same conveyance.
HVS
High Value Shipment
Instruments of International Trade (IIT)
Empty shipper or importer owned containers and also those registered under Ottawa file or with container bank numbers, which are used to transport commercial goods to and from Canada. For example: shipping tanks, pallets, baskets, bins, boxes, cartons, crates, gaylords, load lock/spacers, racks, trays, totes or similar goods used to ship goods internationally.
In-transit
The movement of goods from a point in the United States to another point in the United States through Canada, as well as the movement of goods from a point in Canada to another point in Canada through the United States.
LVS - Low Value Shipment
Commercial goods with a value for duty not exceeding CAD $2,500. LVS goods are not exempt from the eManifest process. See “Courier LVS” definition is this section.
Multi-modal movement
A cargo documented on a transport document (e.g. air waybill, bill of lading) used for a specific mode of transportation, but arrives in Canada using a different mode of transport.
OGD
Other Government Department. Federal Departments or Agencies such as: Canadian Food Inspection Agency (CFIA) or Department of Foreign Affairs, Trade and Development Canada (DFATDC) etc.
PARS
Pre-Arrival Review System - A line release option allowing importers and brokers to present release documents prior to the arrival of a shipment in order to obtain release upon arrival.
Port of report
The port where rail cargo physically crosses into Canada at the FPOA. The port of arrival of all cargo on board a conveyance should match the port of report.
Pre-arrival
Prior to a conveyance or cargo arriving in Canada.
Pre-arrival information
Data pertaining to the importation of goods that is sent to CBSA in advance of the actual arrival.
Record
Any material on which data are recorded or marked and which is capable of being read or understood by a person or a computer system or other device.
Release Notification System (RNS)
A system message sent to the client regarding the status of cargo.
Re-manifest
is a new cargo control document, with a new cargo control number, that is presented to change a cargo control document that had previously been submitted to the CBSA. Re-manifests are generally presented to change destination office or carrier code.
Shipment
  • (a) A shipment for which a carrier is responsible is one that consists of:
    • (i) a specified good or collection of specified goods that is listed in a single bill of lading, waybill or other similar document that is issued by the carrier and that relates to the carriage of those goods, or
    • (ii) a specified good that is an empty cargo container that is not for sale that is transported by the carrier but that is not listed in a bill of lading, waybill or other similar document; and
  • (b) a shipment for which a freight forwarder is responsible is one that consists of a specified good or collection of specified goods that is listed in a single bill of lading, waybill or other similar document that is issued by the freight forwarder and that relates to the carriage of those goods.
Specified goods
(under the Reporting of Imported Goods Regulations) – Commercial goods, goods that are or will be imported to Canada for a fee and empty cargo containers that are not for sale but does not include:
  • (a) goods that will be released after they have been accounted for and all duties with respect to them have been paid under subsection 32(1) of the Act if
    • (i) the goods are or will be in the actual possession of a person arriving in Canada, or
    • (ii) the goods form or will form part of a person’s baggage and the person and the baggage arrive or will arrive in Canada on board the same conveyance,
  • (b) mail,
  • (c) commercial goods that are used in a repair that is made outside Canada to a conveyance that was built in Canada or in respect of which duties have been paid, if the repair is made as a result of an unforeseen contingency that occurs outside Canada and is necessary to ensure the conveyance’s safe return to Canada,
  • (d) a military conveyance within the meaning of subsection 18(1) of the Canadian Transportation Accident Investigation and Safety Board Act or goods that are transported on board that conveyance,
  • (e) an emergency conveyance or goods that are transported on board that conveyance, or
  • (f) a conveyance that returns to Canada immediately after being denied entry to the United States or goods that are transported on board that conveyance.
Transiting
The movement of foreign goods through Canadian territory from a point outside Canada to another foreign point.
WACM
Warehouse Arrival Certification Message

General Information

2. The Customs Act, the Reporting of Imported Goods Regulations and the Transportation of Goods Regulations, establish the time, manner and who is required to send pre-arrival data pertaining to commercial cargo (for import or in-transit) and conveyances entering or moving in-transit through Canada. These documents also establish the report, time of report, manner of report and who reports goods entering or moving in-transit through Canada.

3. The receipt of pre-arrival cargo and conveyance data enables the CBSA to:

  • (a) More effectively manage higher risk goods and identify threats to health, safety, and security prior to the arrival of cargo and conveyances in Canada;
  • (b) Allow lower risk goods a more efficient, stream-lined process at the border; and,
  • (c) Control the movement of in bond goods.

4. Except as otherwise prescribed in the Reporting of Imported Goods Regulations and the Transportation of Goods Regulations, all goods that are imported or moving in-transit through Canada must be reported to the CBSA at the first port of arrival (FPOA)in Canada, even when exempt from the requirement to provide advance electronic information. The requirement to report goods to the CBSA is effected electronically, orally or in writing, in the prescribed manner as described in the Reporting of Imported Goods Regulations.

5. FPOI indicates the first stop in Canada where the Canada Border Services Agency (CBSA) has the opportunity to board the rail conveyance, question crew, and/or exam cargo.

Security Requirements

6. A carrier or Canadian freight forwarder desiring to become bonded under general authorization must complete an application and file security in a format as outlined in forms found on the CBSA Web site.

7. To become a bonded carrier or freight forwarder security must be filed in accordance with Memorandum
D3-1-1, Policy Respecting the Importation and Transportation of Goods
.

Carrier Obligations

8. All carriers transporting specified goods into Canada must electronically transmit to the CBSA specified data pertaining to the cargo and conveyance within the prescribed timeframes as described in the Reporting of Imported of Goods Regulations. Provision of this data within prescribed timeframes satisfies the requirement set out in Section 12.1 of the Customs Act.

9. Transmission of electronic pre-arrival conveyance/cargo data does not constitute “reporting” for the purposes of Section 12(1) of the Customs Act. Report, as defined in Section 12(1) is not achieved until the operator or of the rail conveyance transmits an electronic arrival message once the conveyance crosses the international boundary between Canada and the United States. The CBSA will accept this electronic arrival message no sooner than 30 minutes prior to the arrival at the Canadian Border.

10. When the conveyance arrives at FPOA and the status is updated to “reported”, the CBSA will send a notification to the carrier who is the operator of the conveyance, as identified by the CBSA carrier code on the conveyance report detailing the Cargo Control Numbers (CCNs) of the related cargo transmissions that are deemed to have been reported as per Section 12(1) of the Customs Act. This message will serve as the carrier’s “proof of report”.

11. A Conveyance Arrival Certification Message (CACM) must also be received and can occur within a 30 minute window for electronic arrivals allowing rail carriers to send in their request for an arrival up to 30 minutes in advance of their actual arrival at the Canadian border.

12. As per Section 7.1 of the Customs Act, carriers are liable to ensure all information provided to the CBSA, including pre-arrival information is true, accurate, and complete. Furthermore, as per Section 22 of the Customs Act and Section 7 of the Transportation of Goods Regulations, the information transmitted must be supported by source documentation (i.e. bills of lading, invoices, contract of carriage) and made available to the CBSA upon request.

13. As per the Reporting of Imported of Goods Regulations, the conveyance operating carrier that transports specified goods to Canada is solely liable for providing all cargo and conveyance pre-arrival information by electronic means, in accordance with the technical requirements, specifications and procedures that are set out in Chapter 3: ACI/eManifest Electronic Commerce Client Requirements Document (ECCRD).

14. The conveyance operating carrier is ultimately responsible for the conveyance and the cargo on board. It is their carrier code that must be quoted in the conveyance reference number (CRN) when transmitting conveyance data to the CBSA. Where business arrangements exist, another carrier may provide the pre-arrival data to the CBSA; however, it is the conveyance operating carrier that remains liable for pre-arrival cargo and conveyance information requirements in accordance with Section 12.1 of the Customs Act.

15. The carrier whose carrier code is on the cargo transmission is liable for duties and taxes for the goods until released by the CBSA, or until liability is transferred in accordance with Section 20(2) of the Customs Act.

16. Carriers may hire a service provider or agent to transmit advance cargo and/or conveyance data on their behalf. The carrier code on the electronic transmission must be that of the actual carrier, not the agent or service providers. In order for the CBSA to communicate with the agent or service provider on behalf of the carrier, a third party consent must be completed and on file with the Agency.

Carrier Identification Requirement

17. Any carrier transporting or causing specified goods to be transported into Canada must have a CBSA assigned carrier code.

18. The CBSA carrier code forms the prefix of the CCN and the CRN.

19. For the purpose of identifying carriers and freight forwarders, a bonded or non-bonded CBSA carrier code will be assigned to a company upon authorization. This carrier code number must be shown on all cargo control documents presented or transmitted to the CBSA.

20. CRN’s must have the CBSA assigned carrier code of the legal entity (carrier) physically arriving at the border.

21. For information pertaining to carrier code requirements and how to obtain a carrier code, please refer to Memorandum D3-1-1, Policy Respecting the Importation and Transportation of Goods.

Monitoring

22. In addition to all other monitoring and verification activities, the CBSA will perform periodic monitoring of the records kept by carriers related to electronic conveyance and cargo information. The monitoring will confirm whether the conveyance and cargo data was submitted in a timely manner and that information transmitted pre-arrival is true, accurate and complete and corresponds to the information contained on the source documents on file. This includes the use of “exception/exemption” codes.

Cargo Reporting and Control Procedures

23. The cargo report must be electronically transmitted to the CBSA by the carrier, or a service provider authorized by that carrier to transmit on their behalf, within the prescribed timeframes as outlined in the Reporting of Imported Goods Regulations. A rail cargo report is mandatory for all non-exempt import cargo.

24. Before or upon arrival of the goods in Canada, the rail carrier transmits by EDI, form A1 Train Report Inward, identifying shipments for which CBSA have received and accepted cargo details. Rail crew must also report to CBSA.

25. When the in bond freight arrives at its final destination (rail sufferance yard), the warehouse operator will transmit the warehouse arrival certification message (WACM) to CBSA. Information on WACM and other notifications can be found in Chapter 11: Advance Commercial Information (ACI)/eManifest Notices Electronic Commerce Client Requirements Document (ECCRD).

26. Shipments that cannot enter Canada due to CBSA prohibitions or the regulations of other government departments, such as the Canadian Food Inspection Agency (CFIA), must be returned immediately to the United States under CBSA control.

27. If CBSA is releasing the goods from a railway-operated sufferance warehouse, the release notification message (RNS) or manifest forward notice will be the agent’s authority to release the shipment to the consignee.

28. An authorization is not required if the importer holds a license for a type PS (private railway siding) rail sufferance warehouse for full carload lot shipments. In such cases, the carrier can deliver the car and its load directly to the consignee’s premises. It is the consignee’s responsibility to ensure that the seals are not broken and that the goods have not been removed before CBSA has authorized its release.

29. When CBSA authorizes the release, CBSA will transmit an electronic release message to the rail carrier authorizing the release of the goods.

Cargo Control Number and Conveyance Reference Number Reuse Timeframes

30. Rail CCN’s and CRN’s must be unique and cannot be reused for 3-years starting January 1st of the year following its initial use.

Electronic Communication With the CBSA

31. Carriers must transmit data using the CBSA’s electronic data interchange (EDI) systems. Before initiating the application process (outlined below), carriers must have a valid CBSA assigned carrier code as per Section 12.1 of the Customs Act.

Application to Transmit Electronic Data to the CBSA

32. Carriers using EDI are required to complete an application form and submit it to the Technical Commercial Client Unit (TCCU).

33. EDI clients may choose to transmit their own data to the CBSA or they may choose to use a service provider. More information can be found on how to participate in EDI, methods of electronic communication, obtaining a copy of Chapter 3: ACI/eManfest Rail ECCRD and general information on EDI.

34. For all enquiries related to any problems with electronic transmission of data and the related application process, contact the TCCU at:

Technical Commercial Client Unit
Canada Border Services Agency
355 North River Road, 6th floor, Tower B
Ottawa ON K1A 0L8

Email: tccu-ustcc@cbsa-asfc.gc.ca
Phone: 1-888-957-7224 (Option 1) calls within Canada and the U.S. and 1-613-946-0762 for overseas callers.

Transmitting Accurate Data

35. When using the Pre-Arrival Review System (PARS), the electronically transmitted CCN on the cargo data must exactly match the CCN quoted in the PARS release request, inclusive of the acronym “PARS”, where applicable.

36. It is not a requirement to embed the letters “PARS” into a PARS number, but if a carrier does embed letters into the PARS number, then the carrier must use the identical number in their pre-arrival cargo transmission.

37. If the CCN quoted in the PARS release does not exactly match the electronically transmitted cargo data, this will affect the Release Notification System (RNS) capabilities and subscribers will not receive RNS messages. Inaccurate CCN transmissions by carriers could result in sanctions for non-compliance including the issuing of AMPS. Release may also be negatively affected.

Pre-arrival Data Transmission Guidelines

Cargo Data

38. The cargo report must be electronically transmitted to the CBSA by the carrier, or a service provider authorized by that carrier to transmit on their behalf, within the prescribed timeframes as outlined in the Reporting of Imported Goods Regulations. A rail cargo report is mandatory for all non-exempt import cargo.

39. All cargo data must be accepted by the system and on file in order to be subsequently linked to a conveyance. If a conveyance is transmitted quoting a CCN that is either not on file or in reject status, the conveyance transmission will be rejected.

40. Electronic rail cargo data may be transmitted up to 90 days before arrival. If the cargo is not to be used, the carrier should transmit a delete for that cargo transmission data.

41. Electronic cargo submissions must be transmitted with an applicable movement type/service option, as found in Chapter 3: ACI/eManifest Rail ECCRD.

42. A sub-location code is mandatory for in bond shipments and optional for shipments requesting release at FPOA. This option is available to provide a secondary (inland) port of release should the shipment not be able to obtain release at the border (i.e. failed PARS) and the goods qualify for in bond movement.

43. A complete list of the information that a rail carrier must include in the cargo transmission can be found in Chapter 3: ACI/eManifest Rail ECCRD.

Multi-modal Movements

44. The multi-modal cargo process applies to both highway and rail modes of transport. The owner or person in charge of the conveyance will link the cargo to the conveyance transmission.

45. A multi-modal movement is a cargo documented on a transport document used for a specific mode of transportation, but arrives in Canada using a different mode of transport. The cargo carrier will be required to electronically transmit the multi-modal cargo within the prescribed timeframes specific to transportation mode used to physically transport the goods in Canada.

46. For example, highway cargo is loaded onto a rail car for transport into Canada. The carrier will transmit a multi-modal cargo submission. The conveyance operating carrier will transmit a rail conveyance report and link the multi-modal cargo to the rail conveyance. The multi-modal cargo and the rail conveyance data must be received by the CBSA within the rail transmission time frames.

Conveyance Data

47. The conveyance operating carrier or a service provider authorized by that carrier must prepare and transmit an electronic transmission to the CBSA with the required conveyance data within the timeframes as specified in the Reporting of Imported Goods Regulations.

48. All cargo data must be accepted by the system and on file in order to be subsequently linked to a conveyance. If a conveyance is transmitted quoting a CCN that is either not on file or in reject status, the conveyance transmission will be rejected.

49. Electronic pre-arrival conveyance data may be transmitted up to 90 days before arrival.

50. For an empty conveyance, an empty indicator must be utilized to indicate a conveyance with no cargo.

51. A complete list of the information that must be included in the conveyance data can be found in Chapter 3: ACI/eManifest Rail ECCRD.

Transmission Timeframes

52. Carriers (or an authorized third-party provider acting on the carrier’s behalf), are required to prepare and transmit the required cargo and conveyance information within the timeframes specified in the Reporting of Imported Goods Regulations.

53. In the rail mode, the conveyance and cargo information for specified goods must be received and validated by the CBSA, as outlined in the Reporting of Importing Goods Regulations, at least two hours prior to the conveyance arriving at the FPOA.

54. For exemptions from cargo data requirements please refer to Chapter 3: ACI/eManifest Rail ECCRD.

55. Properly formatted messages received less than two hours prior to the transmitted estimated time of arrival will be accepted by the system, but the client will also be warned via error message of “insufficient review time”, and penalties may be applicable.

56. Cargo and conveyance data may be transmitted up to 90 days in advance. The CBSA encourages clients to transmit pre-arrival data as early as possible.

Company Seals Applied Prior to Arrival at FPOA

57. If a railcar or part thereof that contains in bond goods is sealed with a company seal, the seal number must be noted correctly on the pre-arrival conveyance transmission. The company seal will remain intact, unless the CBSA performs an examination.

Conveyance Arrival Certification Message (CACM)

58. To meet the reporting requirements under section 12(1) of the Customs Act, the conveyance operating carrier must transmit an EDI CACM upon arrival at the FPOA.

59. The CACM is required in addition to the cargo and conveyance Advance Commercial Information (ACI) previously transmitted according to the prescribed timeframes as described in the Reporting of Imported Goods Regulations.

60. The conveyance operating carrier, or a service provider authorized by that carrier to transmit on their behalf, prepares and transmits a CACM to the CBSA through EDI.

61. An arrival in the rail mode is defined as when the rail conveyance has physically arrived in Canada. The CACM must be transmitted and received within a 30 minute window, allowing rail carriers to transmit their arrival request up to 30 minutes in advance of their actual arrival at the Canadian border.

62. Upon receipt, validation and acceptance of the CACM, the CBSA system updates the status of the conveyance and related cargo, and acknowledges the arrival of the conveyance with a Section 12(1) “Reported Notice” to the originator of the arrival message. This notice indicates the carrier operating the conveyance (as identified by the CBSA carrier code transmitted within the conveyance report) has met their obligation to report under Section 12(1) of the Customs Act for the conveyance and all shipments detailed on cargo documents that are linked to that conveyance. The CACM will generate any release (for shipments requesting FPOA release) or referral notification messages accordingly. Please refer to the Advance Commercial Information (ACI)/eManifest Non-Highway Conveyance Arrival Certification Message Implementation Guide (found in Chapter 3: ACI/eManifest Rail) for more information.

63. All Section 12(1) “Reported Notices” sent to the carrier must be kept on file and made available to the CBSA when requested during compliance monitoring, supported by the requirements in the Transportation of Goods Regulations.

64. For a complete list of the information that must be included in the Conveyance Arrival Certification Message, please refer to the Advance Commercial Information (ACI)/eManifest Non-highway Conveyance Arrival Certification Message Implementation Guide. For a copy of this guide, please contact the Technical Commercial Client Unit.

In-transit and Transiting Shipments

Conveyance Report – Transiting Through Canada From/to a Foreign Point

65. Rail carriers are responsible for reporting cargo transiting through Canada to the CBSA at the FPOA and the point of exit by using the Electronic Data Interchange (EDI). Form A5, Train Report Outward will be used to report the conveyance at point of exit. Alternatively, CBSA will accept the carrier’s internal train consist sheet for paper in-transit.

Cargo Reporting and Control Procedures for U.S. Goods In-transit Through Canada (U.S. – Canada – U.S.)

66. EDI rail carriers no longer have to use Form BSF708, Rail In Transit Manifest to report freight shipments in-transit through Canada (U.S. – Canada – US) or the United States (Canada – U.S. – Canada). Instead, the rail carrier has the option of transmitting eManifest pre-arrival cargo data. If electronic cargo is being transmitted, rail carriers are reminded to not use the in-transit cargo exception code on the conveyance report, and to notate “in transit” in the special instructions field of the cargo transmission.

Note: This is an interim procedure until an electronic in-transit cargo process is available

67. Form A5 Train Report Outward is to be presented upon exit from Canada. Carriers must export loaded cars at the point of exit with the seals intact. If the seals are broken, the cars must go to the local rail examination facility where a border officer may do a physical check of the contents against relative waybills. Upon approval, the cars will be released to return to the United States.

Note: If the border officer takes note of shortages in a car, the carrier must pay duties and taxes on all missing shipments.

68. Carriers cannot divert in-transit cars to Canadian destinations. If the carrier does divert the in-transit cars or hold the cargo for disposal in Canada, a border officer will detain the cars immediately and report the particulars to the Transport Compliance Unit.

69. Carriers can export in-transit cars at any CBSA office where railways cross the international border. The CBSA will allow a route change from one point of exit to another. This is not considered as a diversion for CBSA purposes

Procedures for Canadian Goods In-transit Through the United States (Canada – U.S. – Canada)

70. The paper A5, Train Report Outward is required to be presented upon exit from Canada for the first leg of the in-transit cargo move. Upon re-entry, rail carriers are required to transmit Canadian origin cargo as an import to Canada. Rail carriers are asked to include the text “in-transit Canadian origin goods” in the special instructions field of the cargo transmission.

Note: This is an interim procedure until an electronic in-transit cargo process is available

Interline Transfers

71. Rail carriers may transfer in-bond goods to a secondary bonded carrier for export under the original carrier’s cargo control document (CCD), provided that the final destination is indicated on the original CCD.

72. The transferring carrier will maintain full liability for the goods and will be absolved of liability to the CBSA once the goods have been acquitted by the conveyance operator upon export by reporting the CCN on the form A5, Outward Report.

eManifest Exemptions

73. This section will outline circumstances in which pre-arrival cargo data is not required under Section 12.1 of the Customs Act. A complete list is found in Chapter 3: ACI/eManifest Rail ECCRD.

74. Should clients choose to transmit data for any of the listed exemptions and/or exceptions they must do so within the timeframes specified in the Reporting of Imported Goods Regulations. A complete list of the information that a carrier must include in the conveyance and cargo transmissions can be found in Chapter 4: ACI/eManifest Highway ECCRD.

Note: The CBSA will perform periodic monitoring of the records kept by carriers related to electronic cargo information, as identified in paragraph 22 in this memorandum. This will include information that may be transmitted, should clients choose to do so, for goods that otherwise fall under cargo exemption.

Exceptions From Cargo Data – Only Conveyance Data Required

75. The following are exempt from cargo data where only conveyance data is required:

  • (a) Goods that are being imported into Canada under the Courier Low Value Shipment (LVS) Program by an approved courier under the CBSA Courier LVS Program.
  • (b) HVS/LVS mixed loads (cargo required for HVS) Note: Low value shipments not imported under the LVS Program require cargo and conveyance advance data.
  • (c) Instruments of International Trade (IIT) – empty shipper or importer owned containers and also those registered under Ottawa file or with container bank numbers, which are used to transport commercial goods to and from Canada. For example: shipping tanks, pallets, baskets, bins, boxes, cartons, crates, gaylords, load lock/spacers, racks, trays, totes or similar goods used to ship goods internationally.
  • (d) Mail (Canada Post, US Mail, International) – as part of a mixed load.
  • (e) Emergency Repairs – includes conveyances that have been repaired outside Canada as a result of an unforeseen contingency that occurred outside Canada; and the repairs were necessary to ensure the safe return to Canada of the conveyance.
  • (f) Domestic In-transit Movements Train With Partial In-transit Shipments – interim period (an electronic in-transit process is under development, and will be available in a future iteration).
  • (g) Dunnage – Packaging material such as boards, blocks, planks, metal or plastic bracing, used in supporting and securing packages for shipping and handling.
  • (h) Loaded Buffer Cars – used for the protection of the train crew from hazardous or combustible materials and the materials themselves, from sources of ignition.
  • (i) Empty Conveyances – conveyance transmission requires an indicator identifying the conveyance as being empty.

76. Report on arrival requirements under Section 12(1) of the Customs Act, for all of the above exemptions are outlined in paragraph 10 of this memorandum.

Unique Shipment Processes

77. The following are not exempt from pre-arrival data; however the reporting and or pre-arrival requirements differ in some manner.

Goods Found Astray (Misrouted Goods)

78. Carriers must transmit pre-arrival cargo data for all goods being transported to Canada, including Canadian goods found astray outside Canada, unless there is an exception.

79.Foreign goods found astray in Canada must be electronically transmitted post arrival as soon as they are discovered by the carrier. The goods may then be exported in accordance with the Reporting of Exported Goods Regulations and as outlined in Memorandum D3-1-8, Cargo – Export Movements.

Overages

80. Any excess in the number of pieces transmitted in the same shipment and found by the carrier post arrival are considered overages. Carriers are required to report any overages to the CBSA as soon as they are discovered by transmitting an amendment to the cargo transmission. An overage only occurs where pre-arrival data was transmitted and a quantity of goods was initially reported upon arrival at FPOA, and subsequently the number of pieces is found, by the carrier, to exceed the number of pieces reported to the CBSA pre-arrival and upon arrival. If no data was transmitted pre-arrival and no report occurred, and the goods are discovered post arrival, this constitutes non-report, not an overage, and may be subject to penalty action.

Shortages

81. A shortage occurs only where pre-arrival data was transmitted and a quantity of goods was initially reported upon arrival at FPOA, and subsequently the number of pieces found, by the carrier, is less than the number of pieces reported to the CBSA pre-arrival and upon arrival. Carriers are required to report any shortages to the CBSA as soon as they are discovered by transmitting an amendment to the original cargo transmission.

Failure to Submit Pre-arrival Information

82. The CBSA requires complete information pertaining to all specified goods arriving in Canada. Where no pre-arrival information was transmitted and no other exception exists, the carrier must transmit a cargo report as soon as it is discovered. Should the CBSA discover goods for which no pre-arrival data was transmitted, and for which no report was made to CBSA, sanctions may be issued to the carrier for failure to provide advance information.

83. When the conveyance is known, the CRN must also be amended to add this post arrival cargo.

84. Post arrival cargo that is not attached to a related CRN will be presented to the nearest CBSA office to have the status electronically updated to “arrived”. This must be done to enable release of the goods.

Non-resident Importer

85. For shipments being delivered to Canada where the consignee is a non-resident importer, the foreign name and address of the consignee will be accepted in the consignee name and address fields in the cargo transmission.

86. The Canadian party to whom the cargo is being delivered to must be provided in the delivery party name and address fields. The delivery party name and address may be a warehouse, rail yard, etc., if that is where the carrier’s contract of carriage ends.

Transmitting “To Order” Shipments

87. In acknowledgment of common business practices the CBSA will accept “To Order”; “To Order of Shipper”; or “To Order of Bank”; or “Other Named Entity” in the consignee field provided the name and address of the owner or owner’s representative is transmitted as a notify party. To help clarify, the following examples illustrate the CBSA’s requirements:

Example 1: “To Order” and “To Order of Shipper”
The CBSA will accept “To Order” and “To Order of Shipper” in the consignee name field. The address information, city name, and country are mandatory fields for the consignee and ideally the Shipper’s coordinates would be repeated. However, the CBSA will accept terms such as “Same as Shipper”; “See Above”; etc., in the address information field and city name. The name and address of the owner or owner’s representative would be provided in the “Notify Party” fields. The delivery address, if different, would be transmitted in the “Delivery Address” fields.

Example 2: “To Order of Bank or Other Named Entity”
The name of the bank or the named entity must be transmitted in the consignee name field. Again, because the address information, city name, and country are mandatory fields, the complete address of the bank, or other named entity, must be transmitted in the consignee name and address fields. The name and address of the party taking receipt of the goods in Canada must be transmitted in the “Notify Party” fields. The delivery address, if different, from the address provided in the “Notify Party” fields must be transmitted in the “Delivery Address” fields.

Moving Company and Personal Effects

88. When personal effects are being imported into Canada the name and address of the actual consignee is required. The name of the moving company may be provided in the Notify Party field.

Non-emergency Repairs

89. For repairs to conveyances that were completed outside of Canada and do not meet the definition of emergency repairs, carriers must transmit cargo and conveyance data to the CBSA within the prescribed advance timeframes, identifying the repair as the cargo.

Electronic Freight Ex-vessel (Transportation of Marine Containers)

90. The following procedures will apply except if the marine carrier is using overland movement and Form A6, General Declaration, under security of the marine carrier’s bond.

91. Containerized freight landed at US ports for transport to Canada are to be manifested by the rail carrier based on ocean bill of lading information. Each ocean bill of lading has to be covered by a separate cargo control document. If a bill of lading covers a multi-container shipment, each container load will be manifested except where all the relative containers arrive in Canada on the same train. For more information on freight ex-vessel, refer to paragraph 188 (Railway car ferries) of Memorandum D3-5-1, Marine Pre-load/Pre-arrival and Reporting Requirements.

92. The conveyance transmission must state the container and seal numbers (when available from documents in the carrier’s possession).

93. At the seaport of initial discharge, the rail carrier uses a rail CCN (re-manifest) to report each marine shipment ex-vessel going to a point in Canada or for in-transit movement to a point outside Canada. The cargo must show the same information as that shown on the relative ocean bill of lading and bear a reference to the name of the vessel, agency code number, inward report number, and ocean bill of lading number.

94. The vessel inward report will be acquitted by the railway cargo control number(s). The master of the vessel or the agent has to account for the missing goods under normal procedures, as outlined in Memorandum D3-1-1, Policy Respecting the Importation and Transportation of Goods.

ETA - Entered to Arrive and VI - Value Included Shipments

95. Cargo and conveyance data is required for ETA and VI type shipments. The CBSA will manually acquit the cargo data with the original transaction number associated with the goods.

Duty Free Shops (Goods Imported by Duty Free Shops)

96. Defined as goods imported into Canada by Duty Free Shops and delivered directly to a licensed Duty Free Shop facility. Please refer to Memoranda D4-3-4, Duty Free Shop – Operational Responsibilities and D4-3-5, Duty-Free Shop – Inventory Control and Sales Requirements for additional information on Duty Free Shops.

97. Pre-arrival cargo and conveyance information pertaining to goods imported and delivered directly to a licensed duty free shop must be transmitted electronically within the guidelines and procedures outlined in the Reporting of Imported Goods Regulations and this memorandum.

Dangerous Commodities

98. The purpose of the TDG Regulations is to protect the public from potential hazards of transporting dangerous goods by establishing and regulating safety standards, safety marks, and safety requirements for these products.

99. Dangerous goods, hazardous wastes, explosives, and radioactive materials are examples of products that pose a hazard or risk to human health or the environment, and as such, are regulated and require special handling while being transported.

100. The TDG Regulations require that all shipments of dangerous goods be classified, labeled, placarded, packaged, and documented in a specific manner by the shipper. For more information, refer to Memorandum D19-13-5, Transportation of Dangerous Goods.

Derailments and Wrecks

101. Cargo control transmissions and waybills that cannot be properly acquitted at the receiving CBSA office due to a railway derailment or wreck should be referred to the CBSA office where the rail carrier originally reported the wreck. The responsibility to ensure correct acquittal of waybill quantities, and the merit of any application to account for damaged goods rest with the CBSA office so notified.

Additional Unique Processes

102. The carrier must report all shipments of Company Owned Material (COMAT) on an EDI transmission.

103. When the cargo is carried under the shipper’s load and count contracts, the cargo transmission must clearly be marked “shipper’s load and count” and all units must be sealed by the shipper before transferring to the carrier.

104. In the case of car, container, or trailer-on-flatcar load lots (one type of commodity), show the actual number of cartons, cases, barrels, etc., of the commodity.

105. In case of bulk commodities, the quantity on the cargo control document or electronic report will be shown as “1”, representing one railcar.

Contingency Plan in the Event of System Failure

106. In the event of a CBSA system outage, all efforts will be made to continue normal communications, and restore systems to normal operating condition as soon as is reasonably possible.

107. Clients must retain the ability to produce hard copy cargo/conveyance declarations in the event of disruption of CBSA systems.

Notification and Error Messages

108. All pre-arrival data received will be validated and processed through CBSA’s systems, and the CBSA will transmit response messages back to the sender. Notices are sent to the sender via the same route as the incoming transmission.

109. There are two types of response messages clients can expect to receive from CBSA systems when transmitting pre-arrival transmissions by electronic means:

  • (a) Positive Responses
  • (b) Error Responses

110. Positive responses are issued in the form of acknowledgements. Acknowledgements are generated when the EDI transmission has successfully passed all syntactical, conformance and validation edits.

111. Error messages are issued in the form of reject notices. An error code will be transmitted to the sender indicating the nature of the error. Carriers must make corrections to transmissions in error and re-send to the CBSA in a timely manner.

Corrections

Corrections to Cargo and/or Conveyance Data

112. Changes or amendments to cargo and/or conveyance data shall be made as soon as they are known.

Add/Change/Delete (Cancel)

113. An “Add” is used for the first transmission (original) of any data, whether it is cargo or conveyance data. It must be transmitted within the timeframes as prescribed in the Reporting of Importing Goods Regulations.

114. A “Change” involves the pre-arrival re-transmission of the entire record (all applicable data elements), which will then replace the entire record on file. As a rule, the carrier will be required to transmit a change to update the current conveyance record or cargo record when any of the data elements on the current transmission to the CBSA change. Individual data elements are not to be transmitted separately.

115. However, if a CCN on a cargo submission or the actual CRN on a conveyance transmission needs to be changed, the client must first transmit a record to delete the cargo or conveyance, and then transmit an “Add” for the new report with the new CCN or CRN. A change request will not be accepted in that case.

116. A “Delete” (cancel) is used for the complete removal of records or packages of records. If individual data elements or loops of segments are to be deleted, these must be processed as changes. The specific data transmitted on the delete does not necessarily have to be identical to the original add or change – only the “key” data (i.e. CCN or CRN and whether the record is a cargo or conveyance) must be identical.

117. Deletions may be made at any time up until arrival at the port of report. If a conveyance transmission is on file, it must be changed or cancelled before an associated cargo can be cancelled. Note: un-arrived cargo and conveyance records are to be deleted (cancelled) if unused within 90 days.

Post Arrival Amendments

118. Cargo and Conveyance data transmissions, if found by the carrier to be in error post-arrival, must be amended as soon as the error is discovered.

119. Some key data elements cannot be electronically amended or deleted post arrival. If amendments/deletions to these data elements are required, the online House Bill, Cargo and Conveyance Manual Correction Request Form – Post Arrival - All Modes(BSF673) must be completed. Carriers/freight forwarders have up to 90 days to present the correction request to CBSA.

Delivery Requirements and Transfers to Sufferance Warehouses

120. Cargo arriving in Canada as rail traffic can be transferred to a highway carrier and move forward to its destination on the primary rail cargo control transmission provided that:

  • (a) The highway sufferance warehouse at the destination is licensed to receive shipments on rail cargo control documents;
  • (b) The CBSA office at the destination is indicated on the primary cargo control transmission; and
  • (c) Cargo can be transferred to another sufferance warehouse after presentation of a re-manifest. This applies only if the warehouse is licensed to receive the freight.

121. The rail carrier can transfer consolidated shipments consigned to a bonded freight forwarder to the freight forwarder’s type CW sufferance warehouse (or agent thereof) providing the warehouse has been licensed to receive the freight. For more information on electronic house bills and transference to a CW Warehouse, please see Memorandum D3-3-1, Forwarded and Consolidated Cargo – Import Movements.

122. The rail carrier can deliver cargo arriving by air, highway, or marine service for transport in bond under a rail cargo transmission directly to the rail terminal.

123. The rail carrier can deliver intact containers arriving under a rail cargo transmission for transport in bond for export to the exporting carrier’s sufferance warehouse, if the rail cargo shows that the goods are for export

124. Cargo arriving under a highway cargo transmission must be delivered to the highway sufferance warehouse.

Penalty Information

125. For information on administrative penalties, please refer to Memorandum D22-1-1, Administrative Monetary Penalty System. Information on AMPS is also available on the AMPS Web page.

126. Other administrative sanctions, such as the revocation of program privileges and penalties of Other Government Departments, may also be applicable.

127. Failure to comply with the CBSA requirements outlined in the Customs Act, may result in the seizure and forfeiture of the goods and/or conveyance, and in serious cases criminal charges may be applicable.

Addition Information

128. For more information, within Canada call the Border Information Service at 1-800-461-9999. From outside Canada call 204-983-3500 or 506-636-5064. Long distance charges will apply. Agents are available Monday to Friday (08:00 – 16:00 local time / except holidays). TTY is also available within Canada: 1-866-335-3237.

References

Issuing office
Transporter and Cargo Control Programs Unit
Program and Policy Management Division
Commercial Program Directorate
Headquarters file
7730-1
Other references
Superseded memorandum D

D3-6-6 dated
D3-6-7 dated
D12-4-1 dated

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