Memorandum D23-1-1: Partners in Protection Program

General information

1. The Partners in Protection (PIP) program is designed to establish partnerships with trusted businesses in order to enhance the integrity of Canada's borders and the security of the international supply chain.

2. PIP members agree to implement and adhere to high security standards, while the CBSA agrees to support program members through the assessment of their physical and procedural security measures. Members are recognized as being Trusted Traders and enjoy benefits such as border recognition, facilitated processing, enhanced industry marketability, and access to the Trusted Trader Portal (TTP), while the CBSA is able to focus its resources on areas of higher or unknown risk.

3. To use Free and Secure Trade (FAST) lanes into Canada, carriers and importers must be authorized under the PIP program or under both the Custom Self-Assessment (CSA) and PIP programs. The driver must be registered in either the FAST Commercial Driver Program or the Commercial Driver Registration Program (CDRP). For US based highway carriers wishing to access FAST lanes when entering Canada, PIP membership remains mandatory.

• Free and Secure Trade
• Commercial Driver Registration Program
• Customs Self-Assessment Programs

4. The PIP program is an Authorized Economic Operator (AEO) program, which means it is aligned with the World Customs Organization (WCO) SAFE Framework. The SAFE Framework establishes universal standards for supply chain security that have been adopted by customs organizations worldwide.

5. Based on the SAFE Framework, PIP specifies a set of specific program requirements called Minimum Security Requirements (MSRs), refer to Appendix B: Minimum security requirements categories, that are among the conditions that must be met and maintained to be a PIP member. The MSRs are categorized into four main focus areas that encompass 10 supply chain security categories.

Corporate security

1. Risk assessment and planning
2. Personnel
3. Security training and education
4. Cyber security

Cargo and conveyance security

5. Transportation security
6. Seal security
7. Agriculture security

Physical security

8. Access controls
9. Physical controls

Supply chain partner security

10. Supply chain partner requirements

6. The CBSA has the authority to examine any shipment or conveyance that crosses the border into Canada, regardless of program membership. The CBSA may refer a PIP member's shipment for examination or verification activities, such as:

• documentation review
• contraband inspection
• cab check
• random examination
• other reasons, as provided for in the Customs Act, or other legislation or regulations administered or enforced by the CBSA to fulfill the requirements of other government departments

Privacy statement

7. Information collected by the PIP program will be used to determine the eligibility of an applicant and to conduct compliance reviews (for example, to ensure that members continue to adhere to program requirements) and may be disclosed internally for the purposes of investigation and enforcement activities relating to program applicants and members. The information may also be used for statistical purposes, and to evaluate the program. Disclosure of the information collected in the PIP program application and supporting documents is governed by section 107 of the Customs Act.

8. In addition to the information outlined in the PIP program application and supporting documents, the CBSA may disclose the business name, address, contact information, business number, membership dates, membership status and business identifiers to other programs within the CBSA and to other government agencies, to confirm membership status, conduct debt checks or carry out the mandate of the CBSA, as applicable, under section 107 of the Customs Act.

9. Individuals have the right of access and/or can make corrections to their personal information under the Privacy Act. The information collected is described within Info Source under the PIP program detailed in CBSA Information about programs and information holdings.

Program membership

Application process

14. There is no fee for applying to the PIP program. Applicants with a BN, CC, sublocator code or FFC must submit their application electronically through the TTP.

15. In order to apply for PIP membership, an applicant's Authorized Officer must:

• visit the TTP to request an activation code, obtain an online credential, such as a GCKey, and register for a TTP account; TTP activation codes will only be sent through a secure method where the identity of the recipient can be verified
• submit a completed security profile
• accept the Terms and Conditions of program membership
• fill out the CADI form
• provide the Articles of Incorporation (in the case of a corporation) or first page of the Minute Book (in the case of a US resident), including the certificate number, date of issue, and number of years in existence

16. The purpose of the Terms and Conditions of program membership is to set out the roles and responsibilities the CBSA and PIP members play to enhance the physical security and integrity of the production, transportation, importation, and/or exportation processes of members. Its purpose is also to formalize the applicant's commitment to uphold these Terms in the event that the applicant becomes a PIP member. The roles and responsibilities of PIP members set out in these Terms and Conditions do not affect any legal obligations of the members under any Act of Parliament. These Terms and Conditions represent mutual commitments between the CBSA and PIP members that are not intended to be legally binding or enforceable before the courts. Nothing in the document is intended to create a relationship, financial partnership, employer-employee, or joint enterprise between the CBSA and PIP members. The applicant and the CBSA agree with the roles and responsibilities set out in these Terms and Conditions.

In accordance with the PIP program's Terms and Conditions, members must:

• ensure that security measures and systems continue to meet or exceed the MSRs set out in the PIP Security Profile and conduct yearly reviews of security measures and systems
• inform the CBSA of any security issues and the inability to correct an identified security and/or non-conformity with the minimum security requirement, or eligibility criteria
• train and ensure employees follow the security measures and the Terms and Conditions of the PIP program and ensure employees cooperate fully with the CBSA and ensure procedures are in place for employees to advise the CBSA of any suspicious circumstances involving potential or suspected illegal customs or immigration activities
• conduct business dealings with entities that agree to take steps to ensure, that their security measures and systems meet or exceed the MSRs set out in the PIP Security Profile
• advise the CBSA of any substantive company changes within 30 days, including any material changes affecting its Security Profile and/or company contact information
• report any drugs or contraband found by an employee, without handling and without delay, to the CBSA and the appropriate law enforcement agency
• refer any suspicious activities to the member's CBSA local CBSA office
• provide the CBSA, upon request, with access to any security monitoring systems within the member's control that are utilized for premises security
• make the CBSA familiar with relevant internal information and security systems and processes, where practicable and upon the request of the CBSA

17. The CADI is a form through which businesses may authorize the exchange of program-related information with foreign customs administrations' AEO programs through the CBSA's established MRAs. Businesses may modify the CADI at any time to extend or revoke information sharing permissions. The CADI also provides a Privacy Statement, and authorizes publishing of the business name on the CBSA website and info sharing for MRA purposes.

18. The processing of a PIP application consists of two distinct stages:

• preliminary review of the information submitted to confirm program eligibility and ensure completeness and conduct a risk assessment
• validation of the accuracy of the information submitted through the conduct of site visits; this confirms compliance with program MSRs and the identification of potential vulnerabilities

19. A request for additional or revised information will be sent to the applicant if any errors or omissions are identified at any stage in the application process. Failure to respond to such a request within the specified timeframe will result in denial of the application.

20. Upon final approval of membership in the PIP program, an official certification letter will be sent to the member.

21. Once accepted into the PIP program, members must confirm their continued participation, and verify their security profile information, on an annual basis. This may be done by logging on to the Sign in to the Trusted Trader Portal. In addition, members are responsible for providing updates through the TTP regarding any changes to their company contact information and business structure, as they occur.

Denial of applicant

22. Reasons for denial of a PIP program application may include, but are not limited to:

• submission of false or misleading information
• failure to respond to requests for additional or revised information within the specified timeframe
• failure to notify the CBSA of changes to the business as they occur, including any changes to the supply chain, business structure, security practices, location(s) of operations
• failure to meet PIP program eligibility requirements or MSRs
• failure to pass a risk assessment or site validation
• refusal to undergo a site validation
• failure to address security deficiencies in a satisfactory manner within the specified timeframe
• a security incident prior to program membership approval, such as an enforcement action at the border, a security breach involving cross-border freight, or an instance of cargo theft

23. Applicants are required to respond within the specified timeframe to all requests from the CBSA regarding their PIP program status, including requests to confirm or update business or contact information, schedule an on-site validation or a PIA, provide additional details on business or security practices, submit or verify information in the TTP, etc. Failure to respond to a request from the CBSA may result in denial of an application.

24. A letter stating the reason(s) for denial will be sent to the applicant via email following a denial decision.

Reapplication following denial

25. The PIP program reserves the right to specify reapplication timeframes on a case-by-case basis, and to disallow reapplication indefinitely when merited. Any restrictions on reapplication timeframes will be communicated to the applicant at time of denial.

Site Validations

26. Applicants to the PIP program must undergo a site validation to verify that the information provided in the security profile accurately reflects their supply chain. A CBSA officer will conduct an on-site validation of the business' facilities to assess compliance with PIP MSRs. Businesses must respond within the specified timeframe to all validation requests made by the CBSA.

27. Should the business decide to hire a third party to represent them during a site validation, and/or in any other interactions with the CBSA, they must provide the CBSA with a Third Party Authorization letter signed by an Authorized Officer (refer to Appendix A: Letter of authorization for details) of the business. The letter of authorization should be printed on the business' letterhead and should follow the suggested format outlined in this memorandum. The business maintains full liability for all information provided to the CBSA by their representative.

28. If the business has a complex business structure with multiple lines of business, divisions and/or locations, the CBSA will validate each mode and reserves the right to visit as many facilities as deemed necessary in order to ensure a thorough validation of the business' entire supply chain. At the discretion of the CBSA, a site validation may be extended to include the business' supply chain partner(s).

29. Upon approval of PIP membership, the date of the site visit will become the membership's effective date. Company will be subject to revalidation no later than one year following their four year anniversary date.

Transfer of membership

30. PIP membership can only be transferred after a comprehensive review by the CBSA. The subsequent decision to approve or deny the request will be made at the exclusive discretion of the agency. Any decision made is final and not subject to appeal.

31. PIP applicants or members that will undergo corporate amalgamation or acquisition, must contact the Trusted Trader mailbox at ttprograms-programmesndc@cbsa-asfc.gc.ca to have their new corporate structure and program eligibility reviewed in order to be considered for continued participation in the PIP program.

Membership list

32. As a service to our members, the CBSA publishes a list of approved PIP members. The members listed are those that have consented on the CADI form to have their names posted and therefore this may not be a complete list of all PIP-approved members.

Withdrawal

33. A PIP application or membership may be withdrawn at any time. An application or membership that has been withdrawn will not be reinstated and a full reapplication will be required in order to be reconsidered for PIP membership.

Suspension

34. PIP members are required to maintain a good record of compliance in order to remain a member. When non-compliance occurs, members must respond to any request for information from the CBSA, and participate in any corrective process, including compliance notifications, requests for information, Action Plans, and PIA. Failure to meet program requirements may result in the suspension or cancellation of PIP membership.

35. Suspension of PIP program membership constitutes an interruption of all program benefits, including access to FAST lanes, and will result in the removal of the members' name from the list of approved PIP program members on the CBSA website.

36. Suspension is a temporary status that will lead to either reinstatement or cancellation of program membership. The member will be given an opportunity to correct the matter that gave rise to the suspension within 30 calendar days after the suspension has taken effect. If it is not possible for the member to make the required correction within the 30-day period, the member may make a written request within those 30 calendar days for an extension of time, providing a justification for the extension request.

37. CBSA may suspend PIP program membership for:

• failure to respond to the CBSA in the manner specified in the correspondence, including notifications for revalidation and/or requests for information, within the specified timeframe; or for refusing access to the business' premises or to undergo a site validation
• failure to disclose information that directly impacts the member's Profile, including security incidents or breaches
• failure to abide by the Terms and Conditions of PIP membership, including notifying without delay the CBSA of changes to business operations or supply chain, business structure, security practices, or location(s) of operations
• failure to continue to meet PIP program eligibility requirements, including but not limited to the requirements outlined in paragraph 11
• failure to implement an Action Plan and/or to address MSR or compliance deficiencies in a satisfactory manner
• contravening the Customs Act or any of its regulations, or any legislation enforced by the CBSA or a foreign customs organization
• meeting the definition of a debtor as defined in section 97.21 of the Customs Act

38. A letter will be issued to the member via email following a CBSA decision to suspend program membership. The letter will be sent to the contact listed on the member's profile within the TTP. It will state the reason(s) for suspension, provide an effective date for the decision, and specify the suspension duration.

Cancellation

39. Cancellation of PIP program membership constitutes full cessation of all program benefits, including access to FAST lanes. The members' name will be removed from the list of approved PIP program members on the CBSA website.

40. CBSA may cancel PIP program membership for:

• failure to address any reason that gave rise to the suspension within the specified suspension period
• submission of false or misleading information
• commission of a severe contravention of the Customs Act or any of its regulations, or under any legislation enforced by the CBSA or a foreign customs administration
• commission of an offence for which the business has been criminally charged and convicted

41. A letter will be issued to the member following a CBSA decision to cancel program membership. The letter will be sent to the contact listed on the member's profile within the TTP and will state the reason(s) for cancellation, provide an effective date for the decision, and specify any conditions for appeal or reapplication. Refer to paragraph 47 for reapplication.

Post-incident analysis

49. The CBSA may conduct a PIA following an incident or breach of supply chain security to assess a member's compliance with PIP program requirements. The client will be notified when a PIA has been initiated. The letter will state the reason for the PIA and request the member's participation. The PIA will seek to:

• identify the source of the incident
• assess the member's response to the incident or breach, and cooperation with customs regulations and law enforcement (including self-reporting)
• ensure the implementation of corrective measures to prevent future incidents

50. The purpose of a PIA is to assess compliance with PIP program requirements or obligations under the Customs Act following a security-related incident and to implement any necessary corrective action.

51. Incidents that require a PIA may include, but are not limited to:

• a violation of the Customs Act or any of its regulations, or of any legislation enforced by the CBSA or other international customs organization
• a violation of the Terms and Conditions or of PIP program policies
• a perceived weakness in a PIP member's supply chain

52. Incidents that require a PIA may be brought to the attention of the CBSA by various means, including:

• voluntary disclosure by the member or its authorized representative, in accordance with the obligations set out in the Terms and Conditions of PIP membership
• communications with CBSA operations, including BSO
• exchange of information with the US CTPAT program, or any other AEO program under an established MRA when authorized by the participant through the CADI
• court decisions or legal publications
• information in news media or other open sources

53. At the discretion of the CBSA, membership and related benefits, such as access to FAST lanes entering Canada, may be maintained or suspended throughout the duration of a PIA depending on the severity of the incident.

54. The outcome of a PIA will be determined by the CBSA upon consideration of all findings and pertinent information. Should any indicators of criminal activity be discovered in the course of a PIA, the CBSA may refer the findings to the appropriate law enforcement authority.

55. The outcome of a PIA may consist of:

• an Action Plan to outline corrective measures in response to the incident
• suspension or cancellation of program membership depending on the severity of the incident

56. If the program member gives an unsatisfactory explanation as to the possible cause(s) of the incident, fails to respond effectively to the incident, and/or is unwilling or unable to participate in a PIA, then program membership may be suspended or cancelled at the discretion of the CBSA.

57. Correspondence will be sent to the program member when a PIA has been concluded. The correspondence will state the outcome of the PIA and, in the event of a suspension or cancellation, will provide an effective date. A CBSA cancellation decision as a result of a PIA may be appealed by the member.

Action Plans

58. If supply-chain security gaps, compliance issues and/or breaches are identified either during a site validation or when an incident occurs, the CBSA may initiate an Action Plan to outline the corrective measures necessary for compliance with MSRs or other applicable obligations under the Customs Act, regulations or other legislation enforced by the CBSA. An Action Plan constitutes a mutual agreement between the member and the CBSA to address non-compliance.

59. The member must agree to the terms and timeframe specified in the Action Plan. Failure to abide by the terms of an Action Plan within the specified timeframe may result in the suspension or cancellation of program membership.

60. The member will be notified when an action plan is required. A reasonable timeframe will be determined by taking into consideration the complexity and specific nature if the issue(s) which gave rise to the Action Plan. Should the member feel they require additional time within which to address or correct the issue(s) they may make a written request for an extension of time.

61. If requested, an extension to the Action Plan timeframe may be granted at the discretion of the CBSA. Such requests will be reviewed by the CBSA on a case-by-case basis.

62. A CBSA officer will follow up with the member upon completion of an Action Plan to verify that corrective measures have been appropriately implemented.

Site Revalidation

63. PIP membership requires a renewed site visit or alternate form of validation as part of the revalidation process, which occurs every four years. Unless otherwise determined by the CBSA, membership will remain active throughout the revalidation process. Members will be notified when they are due for revalidation, and must acknowledge this notification in the TTP within 30 calendar days by reviewing and updating their membership information. Should an acknowledgement not be received within the prescribed timeline, suspension of the program membership may ensue.

64. At the discretion of the CBSA, PIP members are subject to compliance reviews and/or site visits at any time, during the regular revalidation cycle, in order to ensure alignment with MSRs and all other program requirements.

Cargo seal requirements

65. All PIP program applicants and members must have a written seal policy in accordance with PIP program MSRs. This must include procedures for proper disposal of used seals in order to mitigate the risk of counterfeit seals. All PIP shipments that can be sealed must be secured immediately after loading/ stuffing with a high security seal that meets or exceeds the most current ISO 17712 standard for high security seals.

66. PIP members are responsible for monitoring their supply chains and ensuring seal integrity throughout the life cycle of a shipment of goods, including proper use of high-security seals, in accordance with PIP seal requirements.

General seal requirements for all PIP members

67. PIP members must ensure that a high-security seal is affixed to all loaded containers and trailers that cross the border in either direction, including shipments that cross the border while in transit to a domestic location.

68. For PIP program purposes, high-security seals are classified as meeting or exceeding the ISO/PAS 17712 standard for mechanical freight container seals. All high security seals must be securely and properly affixed to conveyances that are transporting PIP Members' cargo to/from Canada.

69. PIP members must:

• Ensure that seals are affixed to all shipments by an authorized individual who is appropriately trained in the proper application and use of high-security seals.
• Acquire seals from a legitimate manufacturer and obtain the manufacturer's test report to be kept for future reference and verification that seals meet the ISO/PAS 17712 standard.
• Have clearly defined written procedures that stipulate how high security seals are controlled. This includes access, inventory, distribution, tracking and procedures for seal discrepancies. Seals must be controlled and secured by authorized personnel.
• Inspect seals on all cargo-laden containers and trailers. The receiving party is responsible for verifying seal integrity at each transfer of custody.
• Report any seal discrepancies or evidence of tampering to a BSO at the point of entry into Canada, or to an appropriate law enforcement authority such as local police. All discrepancies and instances of tampering must be noted in the cargo documentation.
• Have documented protocols that describe the steps that must be taken if a seal is found to be compromised, altered, tampered with, or has the incorrect seal number and must include documentation of the event, communication protocols to partners, and investigation of the incident. The findings from the investigation must be recorded in a report, and any corrective actions must be implemented as quickly as possible.
• Oversee and advise their supply chain partners to ensure that pertinent security measures are in place, including proper use of high-security seals, from point of origin through to final destination.
• Document all requirements they impose on their supply chain partners with regard to the application and verification of high-security seals.
• Conduct audits of high security seals that includes periodic inventory of stored seals, and reconciliation against seal inventory logs and shipping documents. All audits must be documented. As part of the overall seal audit process, dock supervisors and/or warehouse managers must periodically verify seal numbers used on conveyances.

Specific seal requirements by line of business

70. If a PIP-approved carrier in any mode takes possession of a container or trailer that has not been sealed, the onus shifts to the carrier to seal the container/trailer and to record the seal number on the bill of lading.

71. Highway carriers: Responsible for inspecting the condition of seals and for comparing each seal number against the shipping documentation. If a seal has been broken, highway carriers must report to their dispatcher the name(s) of the person(s) responsible as well as the number of the new seal that is placed on the container/trailer.

Note: In the highway mode, an empty container/trailer does not require a high-security seal to cross the border into Canada. However, a container/trailer containing dunnage without cargo on board is not considered to be empty and therefore requires a high-security seal.

72. Rail carriers: Responsible for affixing a high-security seal to all loaded rail cars and intermodal containers that are transported by rail and destined for Canada. Rail cars crossing the border into Canada must comply with seal verification rules and seal anomaly reporting requirements. Rail hopper cars, that load from the top and use gravity to empty the contents, are not suitable for the application of seals. Other types of rail cars unable to accept seals include tank cars, bulk or open top loads, gondola and center beam rail cars, flatbeds.

73. Marine carriers: Responsible for inspecting seals and documenting their condition before containers are loaded onto a vessel.

Note: In the marine mode, all containers bound for Canada must be visually inspected and sealed, even when empty.

74. Air carriers: Responsible for overseeing all cargo loaded on board an aircraft in a manner pursuant to applicable laws and regulations. When an air carrier contracts supply chain partners to control a specific element of the cargo transportation service (such as an airport terminal, a unit load device, the direct handling of cargo containers, or any process subject to seal requirements), the air carrier must work with its supply chain partners to ensure that pertinent security measures are implemented and followed.

75. Importers and warehouse operators: Must inspect all seals prior to removal and note any discrepancies between the seals and the information listed in the cargo documentation. Any indicators of illicit activity must be reported to the CBSA or an appropriate law enforcement agency.

76. Exporters and freight forwarders: Responsible for sealing all containers/trailers until the carrier assumes control, and for ensuring that all seal numbers are recorded on the bill of lading.

Seal exceptions, replacements, and non-compliance

77. Shipments that are less-than-truck-load (LTL) or less-than-container-load (LCL) may use high-security padlocks or similar locking devices instead of high-security seals when the pick-up or delivery of local freight involves multiple stops. However, LTL and LCL carriers must (at the very least) use a high security padlock or a similar appropriate locking device when picking up local freight in an international LTL or LCL environment. At the last pickup site prior to crossing the border, the carrier must seal the load with an ISO 17712 compliant high security seal. In such cases, PIP members must implement strict controls to limit access to padlock keys or combinations that can open the padlocks.

Note: If a consolidation hub is used, the seal number(s) may be recorded on the consolidated lead sheet rather than the individual bills of lading. The seal number(s) should be listed on the documents presented to a BSO.

78. Some commercial loads and conveyances are not suited to accommodate high-security seals or padlocks (for example, tank trailers, bulk or open-top loads, dump trailers, tractors, open or soft-sided trailers, step decks, flatbeds, livestock trailers, and other types of open trailers or oversize loads for which a seal will not detect access). In such cases, PIP members must demonstrate documented procedures to ensure cargo integrity during transit. For example, cargo access could be detected by using tamper-evident tape or by undertaking more thorough and/or frequent documented inspections. For commercial loads or conveyances not suitable for sealing with a high security seal (that is, flatbeds), PIP Members must have documented procedures in place to ensure the integrity of the cargo while in-transit.

79. If a seal is removed while en route to Canada, even by government officials, it is the carrier's responsibility to replace the seal and document its particulars, including the new seal number, on all pertinent cargo documentation. If during a CBSA examination a seal is removed to facilitate the inspection, the carrier is not required to reseal if a BSO affixes a CBSA high-security seal. It should be noted that the CBSA is not required to supply such seals and doing so is the discretion of the officer. It is however required that a new high-security seal be applied following examination when the goods are still en route to final destination. In the event that the construction of a conveyance, trailer or container prohibits the application of the CBSA high-security ISO 17712 seal following the CBSA examination, the carrier may apply their own ISO 17712 compliant high-security seal. In such cases, PIP program members must have documented strict controls to limit access to seals in line with the requirements outlined in section 69 of this memorandum. Namely, the rigorous requirements surrounding acquisition, control, tracking and application of said seals.

80. Depending on the frequency and/or severity of occurrence, non-compliance with PIP program seal requirements may result in:

• placement on an Action Plan to address security deficiencies
• suspension or cancellation of program membership; before cancellation, a CBSA officer will conduct a follow-up to give the business an opportunity to rectify the situation

Additional Information

81. To obtain a copy of the TTP User Guide or if your inquiry is related to an ongoing application or revalidation, email ttprograms-programmesndc@cbsa-asfc.gc.ca.

Corporate security

Risk assessment and planning

Requirements in this category emphasize the need for PIP Members to periodically conduct risk assessments of their supply chain, the factors to consider when developing a risk assessment, and the importance of having a proactive strategy in place to ensure the continuation of secure trade in the event of a crisis, emergency or security situation, and the importance of having documented contingency plans in place.

Personnel security

A company's workforce is a valuable security asset but can also create considerable risks. Personnel security programs are essential to prevent and mitigate human resource security risks. Requirements and recommendations focus on employee screening, pre-employment verifications and background checks.

Security training and education

One of the key aspects of an effective security program is education. Making employees aware of security risks and threats, their role in the supply chain and why security measures are in place makes them more likely to adhere to security protocols. Requirements and recommendations associated with security education ensure that employees receive the training required to identify, prevent and respond to security threats and breaches.

Cybersecurity

In a digital world, cybersecurity is the key to protecting the integrity of an organization's security architecture and safeguarding its data, servers, networks, electronic systems, computers etc. against attack, damage or unauthorized access. Requirements in this category expand on cybersecurity protocols to improve security controls and the management of cybersecurity to better detect cyberattacks and prevent loss of information.

Cargo and conveyance security

Transportation security

Transportation security requirements focus on the integrity of processes related to the transportation, handling, staging, loading and storage of cargo in the supply chain as well as storage and security inspections of conveyances and instruments of international trade (IIT) to protect against the introduction of unauthorized material and/or persons. It is critical to prevent, detect and/or deter un-manifested material and/or unauthorized personnel from gaining access to conveyances and ITT and to ensure that inspections include identifying and mitigating any visible pest contamination.

Seal security

The proper sealing of cargo is an essential element of a secure supply chain and helps assure the security of goods being imported into or exported from Canada. The effectiveness of high security seals is strongly dependent on the proper protocols for using them. Requirements in the seal security category focus on the importance of having documented seal policies and procedures in place that address all aspects of seal security including installation, removal, disposal, storage and training etc.

Agricultural security

Canada's well-established agriculture and forestry industries are key components of the Canadian economy and of Canada's trade portfolio. The Agricultural and the environment is threatened by the introduction of foreign animal and plant diseases and pests and contaminants such as soil, manure, seeds, straw and plant and animal material which may harbor invasive and destructive pests and diseases. Eliminating pests and contaminants in all conveyances and all types of cargo may decrease cargo holds, delays and commodity returns or treatments. Inspections of cargo, conveyances and IIT must include a check for visible pest contamination. No specialized equipment or expertise is required.

Physical security

Access controls

Access controls prevent unauthorized access to facilities, protect company assets, maintain control of employees and visitors and ensure that only authorized individuals gain the access necessary to undertake their duties. Access controls must include the positive identification of all employees, visitors, and vendors at all points of entry.

Physical controls

Physical security controls assure the security of facilities by preventing, detecting, and deterring unauthorized personnel from gaining access to facilities. Requirements aligned to physical security include fencing, gates, parking, physical barriers and lighting in addition to technology guidelines that must be followed if utilizing security technology such as intrusion alarms and video camera equipment to monitor facilities.

Supply chain partner security

Supply chain partner requirements

The supply chain incorporates all aspects of moving material from the vendor through the manufacturing process to the final customer and requires PIP Members to collaborate with a variety of domestic and international supply chain partners. When a company outsources or contracts out elements of its international supply chain, they must follow established risk based processes when selecting, screening and monitoring supply chain partners (SCP) to ensure that sound security measures are in place and adhered to.

Supply chain partners encompass those involved both directly and indirectly in the movement of international goods and includes freight forwarders, vendors, product suppliers, manufacturers, carriers, customs brokers (who only handle the documents) and others that may not directly handle the cargo, but may have operational control such as Third Party Logistics Providers (3PLs). Any portion of the transport that is subcontracted, must also be considered because greater risk is involved with more layers of indirect parties.

Applicable legislation

• Customs Act
• Transportation of Goods Regulations
• Privacy Act

Superseded D memorandum

D23-1-1 dated January 8, 2026

Issuing office

Trusted Trader Programs Unit
Trusted Trader Programs Division
Commercial Program Directorate
Commercial and Trade Branch