Trade Compliance

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CBSA Moves Closer to Mandatory Compliance Date for eManifest

Posted February 25, 2014

Following last month’s announcement regarding certain changes to its border crossing process for commercial trucks (i.e., a new notification system for eManifest users and an update of its Electronic Data Interchange maps), Canada Border Services Agency (CBSA) has proposed regulations that all trucks carrying freight into the country will be subject to eManifest requirements.
Speeding Truck
The rule, proposed Feb. 15, 2014, represents the first of two packages of regulatory amendments designed to support the full implementation of eManifest. “Package 1” includes requirements for electronic pre-arrival information in the highway and rail modes, enhancements to existing processes in the marine and air modes, and provisions that would allow the CBSA to develop administrative monetary penalties for non-compliance with eManifest requirements.

The second package is expected to be introduced in 2015/2016 and would mainly include provisions relating to advance information requirements for importers.

It is estimated that the implementation of “Package 1” would result in a net benefit for businesses of $391 million over a 12-year period from reduced delays at the border and from efficiencies achieved by replacing paper processes with electronic ones.

Voluntary eManifest submissions began in October 2012. The CBSA estimates that more than 95 percent of cross-border carriers are already using the system.

The agency is accepting comments from stakeholders on the proposed regulation through March 16. The CBSA notes that the mandatory compliance date (coming into force date) cannot be confirmed until after the agency responds to comments received may also be affected by the normal regulatory process.

Once the rule has been finalized, the CBSA will give carriers 45 days’ notice of the compliance date. After a six-month soft enforcement period, carriers will risk administrative monetary penalties for non-compliance.

Click here to read the proposed regulations and associated impact statement.