Memorandum D3-6-6

Rail Cargo - Import Movements

Ottawa, April 11, 2013

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In Brief

This memorandum replaces the Memorandum D3-6-6 dated May 1994. It has been revised to denote the following changes:

• (a) Agency, Division and Branch names were revised to the current appellations.
• (b) Paragraph 1 was added to reference the regulations that the memorandum refers.
• (c) Paragraph 5 was deleted to reflect policy change.
• (d) Paragraph 14 was revised for clarification of policy for multi carload shipments.
• (e) Paragraphs 24 and 25 were revised for the regulations of other departments.
• (f)  Paragraph 29 was revised for clarifications of rail interline transfers.
• (g) Paragraph 40 was updated to reflect policy change.
• (h) Paragraphs 46-48 were updated to represent current policy and regulations for the transportation of dangerous goods.
• (i)  Paragraph 50 was updated to reflect current policy for rail delivery requirements and transfers to sufferance warehouses.
• (j)  Paragraphs 55-57 were updated to current administrative penalty policy.
• (k) Paragraph 58 was added to reference the CBSA website and the Border Information Service contact information.

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

Guidelines and General Information

1. The Customs Act, the Reporting of Imported Goods Regulations and the Transportation of Goods Regulations, establish the time of report, manner of report and who reports goods entering or moving in-transit through Canada.

Security Requirements

2. To become bonded, a rail carrier must file $80,000 of security with the CBSA as outlined in Memorandum D3-1-1, Policy Respecting the Importation and Transportation of Goods.

Conveyance Report – Inward

3. Rail carriers must report conveyance and cargo to the CBSA when they arrive at the border. If there is no CBSA office at that point, carriers must report to the nearest CBSA office along the route.

4. The rail carrier has to present or transmit by electronic data interchange (EDI) to the CBSA, a form A 1, Train Report Inward. Alternatively and with prior permission of Import Programs Management Unit, the carrier can provide the internal train consist sheet.

5. The conveyance report must show each car's initials and numbers, whether the cars are local or through (in-transit), or loaded or empty.

6. For enforcement purposes, the CBSA will selectively do train checks when a freight train arrives. If, during a train check, CBSA discovers false information or if a car on the train is not shown on the report, the carrier is liable to penalty action. However, if the railway voluntarily reveals a discrepancy before the train check, CBSA will not apply a penalty.

7. If CBSA has to unload or move a load to examine it, the moving will be done by and at the expense of the carrier.

Cargo Control Documents Required

8. All freight shipments imported into Canada must be reported on an approved cargo control document or transmitted by EDI according to departmentally approved standards set out in the participant requirements document. The carrier can use form A8A(B), Customs Cargo Control Document, available at all CBSA offices or any privately printed cargo control document. Import Programs Management must accept the format for privately printed forms. For cargo control document specifications for privately printed documents, see Appendix C of Memorandum D3-1-1, Policy Respecting the Importation and Transportation of Goods. For instructions on how to complete form A8A(B), see Appendix E of Memorandum D3-1-1. Carriers, who want to transmit cargo control document data by EDI to the CBSA, must submit a written request to the Electronic Commerce Unit.

9. Railway carriers can number cargo control documents using either the series numbering system or the EDI numbering system. Those using the existing series numbering system must use their carrier code as the first four digits followed by a series of numbers which should not be duplicated for three years.

10.  The EDI railway carriers must number the EDI cargo control document transmissions using the EDI numbering system. The cargo control number must have the carrier code (four numerics) + E (for EDI) + the car's initials and number (for non-containerized shipments) or the container's initials and number (for containerized shipments) + the waybill date. The cargo control number should be no longer than 25 characters. If the system fails, EDI railway carriers must present paper cargo control documents to CBSA using the EDI format numbering system. Please show the letter P as the 5th character of the cargo control number to indicate that it is a paper transaction.

11.  Report empty cars on a cargo control document or by EDI only when the car is a freight shipment (importation) and the railway assessed a freight charge for the movement.

12.  The carrier must report all shipments of Company Owned Material (COMAT) on a cargo control document or EDI transmission.

13.  In the case of multi-car shipments of the same commodity from one shipper, consigned to one consignee and moving under one waybill, provide one cargo control document or transmission. The total number of cars must be shown in the "No. of Packages" area. Show a list of all relevant car numbers or a note referring as to a list of car numbers attached in the "Description of Goods" area.

14.  In less than carload shipments, where multiple shipments arrive within a single car must be documented as follows:

• (a) When consigned to one consignee carried in one railcar a single cargo control document or transmission may be presented. The shipper name and address field on the cargo control document must be completed as "various". The carrier must be prepared to provide pro-bills or invoices identifying the various shippers at the time of presentation of the cargo control document, when requested by a border services officer.
• (b) When consigned to multiple consignees, CBSA requires a cargo control document or transmission for each consignee. These cargo control documents or transmissions must show the same cargo control number, however, it will be made unique by the addition of a suffix. The suffix will be composed of two alpha characters starting with the first letter of the alphabet, e.g. AA, AB, AC. The length of the cargo control number and suffix cannot be more than 25 characters. With the suffix, CBSA can tell the difference between less-than-carload shipments and abstract cargo control document which use alphanumeric suffixes, e.g. X1, X2.

15.  When the cargo is carried under the shipper's load and count contracts, the cargo control document or transmission must clearly be marked "shipper's load and count" and all units must be sealed by the shipper before transferring to the carrier.

16.  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.

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

18.  If cargo is to be released at an inland CBSA office, the notation "in bond" must be stamped or pre-printed on each copy of the cargo control document.

Cargo Reporting and Control Procedures

For Non-EDI Rail Carriers

19.  At the point of importation, the railway agent must provide CBSA with a cargo control document for each shipment.

20.  CBSA will compare the cargo control documents to form A 1, Train Report Inward, to ensure that there is a cargo control document for every railcar listed as loaded. If there are any discrepancies, CBSA will notify the railway agent immediately to arrange for the agent to provide all missing documents.

For EDI Rail Carriers

21.  Before the goods arrive in Canada, the rail carrier must transmit by EDI to CBSA cargo details for each shipment destined for Canada. If CBSA finds discrepancies, the carrier will receive a reject message. If CBSA accepts the data, CBSA will store it in the CBSA EDI database pending arrival of the goods. Before or upon arrival of the goods in Canada, the rail carrier transmits by EDI, form A 1 Train Report Inward, identifying shipments for which CBSA have received and accepted cargo details.

22.  When the in-bond freight arrives at its final destination (rail sufferance yard), the railway agent must endorse the longroom and customs delivery authority's copies of the cargo control document. CBSA does not need this endorsement if a car is left on an authorized private siding or in the case of EDI-transmitted cargo control documents.

23.  The railway agent then must present a copy of the document to the consignee or broker to advise them of the arrival of the shipment. The consignee or broker must file these documents with CBSA when he or she presents the release document.

24.  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.

25.  If CBSA must refer shipments to the CFIA for inspection, the CFIA will stamp the back of the longroom copy of the paper cargo control document or of the EDI white paper manifest when the importation is authorized.

26.  If CBSA is releasing the goods from a railway-operated sufferance warehouse or team-track, the stamped and initialled CBSA delivery authority copy or white paper manifest is the agent's authority to release the shipment to the consignee.

27.  CBSA does not need this authorization if the importer holds a licence 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.

28.  When CBSA authorizes the release, the border services officer will initial the customs delivery authority copy or a copy of the EDI white paper manifest and stamp "release" on it, to be returned to the railway carrier. In the case of EDI, CBSA will also transmit an electronic release message (CUSRES) to the rail carrier authorizing the release of the goods.

Interline Transfers

29.  Post-audit rail carriers can transfer goods in bond to another bonded rail carrier to take to a destination under the post-audit carrier's original cargo control document. The original carrier remains liable while the next bonded rail carrier proceeds without liability to CBSA. However, if the final destination is indicated on the original cargo control document and the transfer is covered by an in-bond interline transfer document that meets CBSA requirements, the next bonded rail carrier becomes liable to CBSA and this applies irrespective of the number of bonded carriers participating in the movement of the in-bond shipment to destination. For more information on interline transfers, refer to Memorandum D3-1-1, Policy Respecting the Importation and Transportation of Goods. The transferring carrier will give the longroom and customs delivery authority copies or white paper manifest copies to the delivering carrier who will, in turn, give them to the importer at the destination.

30.  When cars arrive at the destination in the services of one railway but are interchanged with another railway for local switching, it is the original carrier's responsibility to give the copies of the cargo control document to the importer or customs broker and to ensure that CBSA has released the goods before the interchange. In-bond cars given to importers who have bonded private siding privileges can be delivered immediately.

31.  When in-bond goods are transferred to rail after arriving in Canada by another mode of transportation, the rail carrier must re-manifest the goods at the intermediate point unless, if the goods arrive by vessel, and the marine carrier is authorized to use the overland movement procedure. For more information on overland movements, refer to Memorandum D3-5-2, Marine Cargo – Import Movements.

In Transit Shipments for Exports by Marine

32.  In-bond rail shipments transiting Canada intended for transfer to a marine carrier for export from Canada must be documented as follows:

• (a) There has to be one cargo control document or EDI transmission for each container.
• (b) The cargo control number on the cargo control document (non-EDI) should have an EX suffix to identify the shipment as in transit for export by marine. The EDI transmission should have a designated code indicating the shipment as in transit for export by marine.
• (c) The "Number of Packages" area must show "1", representing one container, and the actual number of packages (piece count) must be shown in the "Description and Marks" area.
• (d) The exporting marine carrier or agent must be identified in the "Description and Marks" area.

33.  Carriers who do not use EDI must give the Mail and Station copies of the rail cargo control document to CBSA at the point of importation with form A 1, Train Report Inward. The rail carrier must give the longroom and customs delivery authority copies to the marine carrier, or agent, for CBSA with the vessel outward report. CBSA will return the CBSA delivery authority copy to the rail carrier after processing.

34.  Carriers who use EDI must transmit the cargo control data to CBSA by EDI along with the EDI form A 1. The carrier must give two copies of the white paper manifests to the marine carrier, or agent, to give to CBSA with the vessel outward report. CBSA will return one copy of the white paper manifests to the rail carrier after processing.

35.  Under this procedure, CBSA will contact the marine carrier for information on any shipment that has not been reported outward within 60 days after the date of the initial report.

Note: For more information on in-transit rail movements, please see Memorandum D3-6-7, Rail Cargo – In-transit Movements.

Trailer-on-flatcar/Piggyback System

36.  In-bond goods carried on behalf of a highway carrier under piggyback (trailer-on-flatcar) systems must be reported using the type of cargo control document that applies to the freight charges on the individual shipments. That is, if the highway carrier is responsible for this collection, that carrier will prepare form A8A(B), Cargo Control Document, for each individual shipment and provide the station and mail copies to the rail carrier to present to CBSA at the point of importation. In the case of a highway carrier operating under post-audit procedures, the rail carrier will only receive the mail copy.

37.  If the goods are covered by highway cargo control documents, neither the trailer nor the goods should be documented on a rail cargo control document. However, if the highway documents are not on hand when the trailer arrives at the point of importation, the rail carrier has to prepare a rail cargo control document showing the total number of packages in the trailer and the highway carrier as the consignee. At the CBSA office at the destination, the highway carrier will receive the longroom and customs delivery authority copies from the railway and file them with CBSA along with the station and mail copies of the highway cargo control documents for the individual shipments. Each of these documents must refer to the previous cargo control document (rail document).

38.  If the rail carrier reported goods on highway documents, the highway carrier's probill numbers have to be recorded on the rail waybill.

39.  If the railway has to collect charges on the individual shipments, the cargo must be documented on rail cargo control documents.

Freight Ex-vessel (Transportation of Marine Containers)

40.  The following procedures will apply except if the marine carrier is using overland movement and form A 6, General Declaration, under security of the marine carrier's bond.

41.  At the seaport of initial discharge, the rail carrier uses a rail cargo control document (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 document 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.

42.  The rail carrier prepares these documents for the actual quantity forwarded, and if this amount is less than the ocean bill of lading quantity, the documents must be prepared as follows:

8 cases

Part lot of 10 (actual bill of lading quantity)

43.  The vessel inward report will be partially acquitted by the railway cargo control document. 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.

44.  Containerized freight landed at U.S. ports for transport to Canada is 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 Memorandum D3-5-2, Marine Cargo – Import Movements.

45.  The cargo control document has to show the container and seal numbers (when available from documents in the carrier's possession).

Dangerous Commodities

46.  The purpose of the Transportation of Dangerous Goods 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.

47.  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.

48.  The Transportation of Dangerous Goods 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

49.  Cargo control documents or 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.

Delivery Requirements and Transfers to Sufferance Warehouses

50.  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 document 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 in the manifest's "to" field on the primary cargo control document; 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.

51.  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) after the freight forwarder presents the housebills, providing the warehouse has been licensed to receive the freight.

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

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

54.  Cargo arriving by piggyback or container service under a highway cargo control document must be delivered to the highway sufferance warehouse.

Penalty Information

55.  For information on administrative penalties, please refer to Memorandum D22-1-1, Administrative Monetary Penalty System (AMPS). Information on AMPS penalties is also available on the CBSA Web site at www.cbsa.gc.ca.

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

57.  In some situations, 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.

Additional Information

58.  The CBSA's Border Information Service (BIS) line responds to public inquiries related to import requirements of other government departments, including Industry Canada. You can access BIS toll-free throughout Canada by calling 1-800-461-9999. If you are calling from outside Canada, you can access BIS by calling 204-983-3500 or 506-636-5064 (long-distance charges will apply). To speak directly to an agent, please call during regular business hours from Monday to Friday (except holidays), 8 a.m. to 4 p.m. local time. More BIS information can be found on the CBSA's Web site at www.cbsa.gc.ca.

References

Issuing office	Import Programs Management Commercial Border Programs Division Programs Branch
Headquarters file	7730-1
Legislative references	Customs Act Reporting of Imported Goods Regulations Transportation of Goods Regulations
Other references	D3-1-1, D3-5-2, D3-6-7, D22-1-1, D19-13-5
Superseded memoranda D	D3-6-6, dated April 22, 1994