Canada Plans to Modernize its "Partners in Protection" Program by June 30 (Which is Similar to C-TPAT)
The Canada Border Services Agency (CBSA) has announced its goal of introducing a modernized Partners in Protection (PIP) program by June 30, 2008. The modernized program will require members to adhere to stricter, better-defined and targeted security measures to strengthen border and supply chain security.
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(Canada's PIP program provides benefits such as lower examination rates to companies that demonstrate a good compliance record and actively participate in the program. It is available to the entire trade community, from importers, carriers, brokers, warehouse operators to associations and is similar to U.S. Customs and Border Protection's (CBP's) Customs-Trade Partnership Against Terrorism (C-TPAT).)
Applications under the modernized PIP program will be accepted on or after June 30, 2008, but certain documents will be available by March 31, 2008 so that companies can get a head start in meeting the new requirements. (See below for details.)
Modernizing to Enhance Border Security, Achieve C-TPAT Mutual Recognition
The PIP program is being modernized as part of Canada's commitment under the Security and Prosperity Partnership (SSP) of North America1 to enhance border security, combat organized crime and terrorism, and achieve mutual recognition and compatibility between Canada's PIP program and CBP's C-TPAT program.
Aligning PIP with international standards. CBSA states that steps are also being taken to ensure that PIP's new requirements are better aligned with international standards such as the World Customs Organization's Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework)2 and the European Community's Authorized Economic Operator (AEO)3 program.
Modernized PIP to Have Minimum Security Criteria, Security Profiles, Etc.
The following are highlights of the planned changes to the PIP program (partial list):
Minimum security criteria for each sector. The modernized PIP will identify minimum-security criteria for each sector (air, highway, rail and marine carriers, importers/exporters, warehouse operators, couriers and customs brokers) in the areas of physical security, procedural security, conveyance security, data and documentation protection, personnel security and supply chain security for each sector.
Security profile to replace Security Questionnaire. The current Security Questionnaire is being replaced by a Security Profile that is divided into generic sections (which apply to all applicants) and sections specifically developed for each of the business sectors, which identify the specific minimum security criteria. The security profile will be available by March 31, 2008.
Revised MOU. There will also be minor changes to PIP's partnership agreement (memorandum of understanding or MOU) to ensure that CBSA and companies are more aware of their roles and responsibilities as partners, and of the fact that companies can be removed or suspended from the program. The revised MOU will also be available by March 31, 2008.
(CBSA explains that the MOU under PIP serves as a "goodwill" agreement in which a company and CBSA commit to working together on enhanced security, exchange of information, and awareness.)
New conditions for denial, suspension, etc. New program policies will outline the circumstances under which applications will be denied, the conditions under which membership will be suspended, reinstated or cancelled, and the appeals process for CBSA decisions on membership matters.
1The SPP is a process of technical negotiations on economic and security rules and regulations conducted by working-level counterparts in the governments of the U.S., Canada and Mexico. It was launched in March 2005, with the latest presidential-level summit taking place in August 2007. (See ITT's Online Archives or 08/23/07 news, 07082320, for BP summary of the five priority areas agreed to at the latest SPP summit, including cooperation on secure borders.)
2The SAFE Framework is an international WCO instrument adopted in June 2005 to secure and facilitate global trade.
3AEOs are economic operators who, by virtue of satisfying certain criteria, are considered to be reliable in their customs related operations throughout the European Community and are therefore entitled to certain benefits.
CBSA announcement on PIP's modernization (updated 02/15/08) available at http://www.cbsa-asfc.gc.ca/security-securite/pip-pep/mod-eng.html
CBSA frequently asked question document on current PIP program available at http://www.cbsa-asfc.gc.ca/security-securite/pip-pep/faq-eng.html