U.S. & Canada Chambers Recommend "Perimeter" Border Actions

(The BBWG is composed of representatives from the appropriate departments and offices of the U.S. and Canada governments. President Obama and Canadian Prime Minister Harper aim to have the joint Action Plan completed by the summer of 2011, following public consultations.)

Business & Security Personnel Say the U.S.-Canada Border is Inefficient

The Chambers state that since the September 11, 2011 attacks, the Canada-U.S. border has become increasingly inefficient. They state that while businesses point to the growing number of inspections and fees, wait times and infrastructure constraints, which cause significant delays, hurt productivity, and competitiveness; security personnel point to a lack of resources and funding for the staffing models and technology needed to make the border more secure.

Chambers Make Recommendations on Where Progress is Needed Immediately

The Chambers believe that a 21st century border policy must be based on risk-management to better assess threats, differentiate between low-risk and high risk trade, maximize the use of technology, and lower transaction costs. The Chambers have made several practical recommendations where they state progress is needed to make the border more trade efficient without diminishing security.

Temporary Subcommittee Needed to Provide Centralized Oversight

They state that a temporary cabinet-level subcommittee should be created to provide centralized oversight and to review border operations across various government departments to coordinate cross-jurisdictional implementation of the action plan. Additionally, the subcommittee should increase border-related metrics to identify existing border policies and limitations so as to increase border efficiency. The subcommittee should also review border processes with the goal of removing redundancies where possible.

Improve Trusted Shipper Programs by Removing Fees, Etc.

Over the years various programs have been developed to separate "trusted" trade from high risk goods, however unnecessary overlap is eroding many of the potential benefits. Therefore, they recommend that the BBWG consider doing the following (partial list):

• Create SME trusted shipper program -- Create a trusted shipper program for small- and medium-size enterprises and ensure that existing programs are more accessible to smaller firms.
• Remove or minimize fees -- Ensure that border fees are directly tied to related services and not funneled into general revenue and that Merchandise Processing Fees (MPF) are removed or minimized for U.S.-bound shipments and for U.S. importers.
• Align ISA with CSA -- Expand CBP’s Importer Self Assessment program to align more closely with the benefits offered by Canada Border Services Agency’s Customs Self-Assessment (CSA) program.
• Harmonize PIP, FAST, C-TPAT -- Fully harmonize Partners in Protection (PIP) and Customs-Trade Partnership against Terrorism (C-TPAT) and extend the use of Free and Secure Trade (FAST) lanes to PIP participants. Full benefits should be available to all approved companies and should be recognized across all government agencies to eliminate duplicate programs.
• Expedite processing of goods regulated by other depts -- Create a pilot program to expedite the processing of goods that are regulated by other government departments and that reduces border dwell time and risk of inspection holds.
• Expand NEXUS programs -- Increase the marketing of NEXUS and examine ways to improve the benefits of participation. This includes the expansion of the NEXUS programs to include a voluntary option for business travelers who need NAFTA visa approval work in either country.

Expand Preclearance Options Beyond Air Mode, Pilot for Food Processors

Canada and the U.S. currently collaborate on preclearance options for the air mode, which has been met with success. However, the Chambers state the preclearance options should be expanded to include other modes of transportation. Preclearance could also be conducted at processing and manufacturing facilities where goods are often sealed before arrival at the border. These goods could be inspected and sealed before being loaded on precleared, sealed trucks. As well, truck, rail cars and intermodal containers could be precleared in bonded carrier facilities at trip origins and could be expedited across the border through prearrival notification that includes data on the shipment and if the seal is still intact.

They specifically recommend that a preclearance process be put in place for trusted traders for manufactures and food processors through a pilot program run by the Canadian Foundation for Infectious Diseases (CFID), Food and Drug Administration and the U.S. Department of Agriculture.

Also Recommend Simplification of Customs Practices, More IPR Protection, Etc.

The Chambers also state that, among other things, the BBWG should consider doing the following:

• Simplify customs procedures -- Provide funding to government departments and agencies to ensure they put in place the OGD Single Window, a single electronic import and export filing system. Additionally they ask that moving towards advanced electronic reporting of trade data takes into account shipment risk, has clearly defined and consistent data elements, and does not require data that companies cannot reasonably obtain.
• Increase IPR enforcement -- The Chambers state they are very concerned about the weak enforcement of intellectual property rights in Canada. They state that Canadian customs officials need to be granted the legislative authority and the additional resources to search and seize suspected shipments of counterfeit goods.
• Create border contingency plan -- The Chambers recommend that a joint contingency plan to address a partial or complete closure of the Canada-U.S. border be put in place immediately. The Canadian government is in the process of putting in place a border contingency plan. However, the Chambers state the Canadian government must continue to work with U.S. Customs and Border Protection on the development of a joint contingency plan.
• Invest in infrastructure & technology -- Canada should continue to invest in ports of entry, including the construction of a second crossing in the Windsor-Detroit region. A timeline for the installation of secure vicinity RFID technology in all lanes at major crossings that is compatible with the technology being used by the U.S. should be put in place. Additionally, Canada should ensure that there are a sufficient number of border crossings with 24/7 operations to facilitate cross-border trade and travel in all of Canada’s provinces and territories.

(See ITT's Online Archives or 06/08/11 news, 11060823, for BP summary of a bi-national coalition of manufacturing associations and companies recommending three levels of U.S.-Canada trade in response to the February 2011 declaration.

See ITT’s Online Archives or 02/07/11 news, 11020729, for BP summary of the U.S. and Canada's February 2011 declaration on a new perimeter approach to security and trade, which intended to establish the BBWG.

See ITT’s Online Archives or 05/24/11 news, 11052418, for BP summary of CBP Commissioner Bersin testifying that the agency is working with Canada on a pre-clearance pilot as part of their perimeter approach to security and trade.

See ITT's Online Archives or 03/11/11 news, 11031120, for BP summary of the countries' Joint Border Risk Assessment on IP, plants, exports, etc.)

Additional information on the BBWG is available here.