Canada Border Services Agency and Transport Canada Single

Canada Border Services Agency and Transport Canada Single Window Initiative Trade Consultation Session Vehicles Program Web. Ex Ottawa, Ontario July 11, 2013 1

Topics • Background on the Single Window Initiative • Defining Success • Opportunities • Single Window Initiative Development • Transport Canada - Vehicles • Current and future processes • Additional data elements • Enhanced Commodity Identification • Projected benefits for Trade • Next Steps • Questions and Answers 2

Introduction • The Canada Border Services Agency (CBSA) considers the involvement of stakeholders in the design of the Single Window Initiative (SWI) to be critical to its success. • Trade Stakeholders have the opportunity to provide input and feedback on: • Integrated Import Declaration including data requirements; • Proposed enhanced commodity identifiers; • Border Process Modernization. 3

Single Window Initiative • CBSA-led initiative to provide trade with a single entry point for the advance electronic reporting of import information required to satisfy CBSA and Participating Government Agencies (PGA) requirements. • Involves the development of a more efficient, effective and integrated approach to collecting and consolidating Government of Canada (Go. C) advance commercial information required on all imported goods. • Responds to calls for action by the trade community to simplify processes at the border by reducing paper burden and integrating PGA requirements into current CBSA import processes. • Provides integrated solutions for commercial processing that balance the needs of the Go. C with today’s globally competitive business environment. 4

Business Process Modernization Better quality, more accurate and more timely information collected through the IID will: • Eliminate manual and paper-based processes required for border compliance; • Convert border processes to electronic format; • Allow PGAs to more accurately and efficiently identify their regulated shipments; and • Move compliance verification activities to an appropriate point in the import process (e. g. post-border), allowing for expedited border processes. 5

Integrated Import Declaration • The IID will be developed as an Electronic Data Interchange (EDI) message • Enhance existing CBSA release processes to include all Government of Canada (GOC) data required for the importation of commercial goods; • Include only data that is essential to make border-related decisions; • Eliminate the requirement for paper documents at the border where possible; • Enable trade to use product identification methods available within their supply chains; • World Customs Organization (WCO) compliant; and • Aligns with CBSA e. Manifest ATD requirements. 6

IID Benefits • Transmission of PGA import data through IID provides benefits to Trade and Government through: – Elimination of presentation of paper License, Permit, Certificate or Other (LPCOs) at Border; – Elimination of redundant data; e. g. , no longer need to identify Importer of goods multiple times through various processes (Permit application, CBSA import process, permit verification, post-border verification); – Meet verification of Licenses/Certificates (e. g. , Establishment Licences, Market/Product Authorization) requirements by presentation of data element(s) in IID; and – Improved data quality resulting in more certainty at Border • Issuance of RFIs/rejects to allow re-transmission and acceptance prior to the goods arrival at Border. 7

Import Data Elements • Data elements include the CBSA Release and Participating Government Agencies (PGA) Admissibility / Release requirements. • No new information will be required beyond that which is required today in the importation processes o Ongoing analysis is anticipated to lead to a further reduction. • The PGA requirements are in most cases commodity-related (e. g. commodity lot number, commodity physical state, etc. ). • New fields have been included to capture authorization information where still required (e. g. permit number, license number, etc. ). • Fields to capture commodity identification enhancements. 8

SWI Electronic Commerce Client Requirements Document • The SWI IID ECCRD provides external system users with comprehensive information of requirements related to the Electronic Data Interchange (EDI) SWI IID system – – – SW Project background, goals, etc; Business Rules and Transmission requirements; Data Element Glossary; IID GOVCBR message structure; Data maps inbound/outbound (Message Implementation Guide) • XML and EDIFACT formats; – Technical systems requirements; – Certification and Testing requirements. 9

Product/Goods Identification Opportunity • Identifying goods using internationally accepted, wellmaintained and industry-accessible identifiers will benefit both PGAs and trade. • More accurate identification of goods allows PGAs to facilitate low risk shipments across the border. • Sector-specific identifiers are being considered such as: – Global Trade Item Number (GTIN) – Chemical Abstract Service Registry Number (CAS) – Taxonomical Serial Number (TSN) • It is anticipated that multiple identifiers may replace existing permit information and reduce the overall amount of data required by industry at the border. 10

Transport Canada (TC) Road Safety • The Motor Vehicle Safety Act regulates the manufacture and importation of motor vehicles to reduce the risk of death and injury, and damage to property and the environment. The Act requires that vehicles of any prescribed class that are manufactured in Canada for the Canadian market or imported into Canada be certified to Canadian federal safety standards • Subsection 7(2) of the Act provides an exception whereby vehicles purchased at the retail level in the U. S. that are not in full compliance with the Canadian standards may be imported into Canada, provided the vehicles were originally manufactured to comply with all applicable U. S. Safety standards and can be modified to comply with the Canadian standards – Once modified, the vehicles must be inspected by a designated authority of TC. – In this regard, TC contracted with a private company to establish the Registrar of Imported Vehicles (RIV) program to develop and operate a system of inspection and certification of vehicles imported from the United States. • Forms 1 and 3 are paper based and must be completed at the border at the time of vehicle import resulting in hard copy clearance by CBSA. – The Forms must then be mailed and faxed to the RIV for processing (time sensitive) 11

Categories • New Canadian certified vehicles with recognized importers and manufacturers (mfg) – Exempt: refers to the vehicles imported by the Canadian importers listed in Appendix F of the D-memorandum • No Form 1 is required – Pre-Clearance Program: refers to the vehicles that fall into the manufacturer/importer/vehicle class list referred to in Appendix G of the D -memorandum • Form 1 is required – Case by Case (CBC): refers to low volume commercial importers of Canadian spec vehicles that are not part of the pre-clearance program • Form 1 is required 12

Categories • To assist importers in determining the admissibility of vehicles sold in the U. S. a "List of Vehicles Admissible from the U. S. " is produced by TC. – Appendix E of the D-memorandum • This list is based on information provided to TC by the manufacturers and importers of those vehicles. Only those vehicle manufacturers and the makes and models of vehicles listed in the "ADMISSIBLE" column of the tables for each class of vehicle may be imported into Canada. – If a particular company is not listed, the vehicles it manufactures cannot be imported. • Only U. S. specification vehicles, purchased at the retail level in the U. S. can be imported via the RIV program – Form 1 required • Vehicles imported for parts – Form 3 required 13

CMVSS Vehicle - Appendix F – Appendix F, (currently located at http: //wwwapps. tc. gc. ca/saf-secsur/7/pcl-lir/A-F/menu. aspx ) to be created as a table by CBSA that can be queried by CBSA to determine if importer is an approved Appendix F pre-cleared importer (similar to CBSA’s Trusted Trader program) – The table located on this website is maintained by TC as companies are added or removed from the approved exempt Appendix F status – Companies on Appendix F may either be given a Unique Numerical Identifier by CBSA or, CBSA may determine to use the first 9 digits of the importers unique business number. • Whichever scenario is used, these numbers will be included on the table mentioned above 14

CMVSS Vehicle - Appendix G • System Prerequisite(s): – Appendix G is managed by Transport Canada and is located at http: //wwwapps. tc. gc. ca/saf-sec-sur/7/pcl-lir/A-G/Menu. aspx? lang=eng. – This list will be codified by the RIV into a table that can be queried and will contain: • Approved Canadian importer business Name and business number, associated for vehicle import with the specific manufacturer. – Importers will use their unique business number • The unique WMI for approved foreign Manufacturer(s) associated with an approved Canadian importer for import and listed on Appendix G. – Foreign manufacturers will use their unique WMI number • The approved Product Description (Vehicle Class)/HS Code associated with the Manufacturer and associated Canadian Importer. – The Product Description (Vehicle Class) will be codified for search ability 15

CMCSS Vehicle – Case-By-Case (CBC) - RIV • System Prerequisite(s): – Table to be created containing VIN, HS Code/Vehicle category, CBC authorization number and effective dates that can be queried by RIV – A method for creating a unique CBC authorization number will be developed. • • Importer applies for CBC authorization number from TC and is approved. The CBC authorization number and approved VIN(s) are added to the TC authorization table. – Checksum validation may be required for authorization Number 16

FMVSS - RIV • System Prerequisite(s): – The current PDF compatibility list (Appendix E of the D-memorandum), maintained by TC can be found at http: //www. tc. gc. ca/media/documents/roadsafety/VAFUS. pdf. – The RIV is creating a converted table which can be queried and include related HS Codes and will host it on their server. • Appendix E is updated regularly and at times on a weekly basis as TC receives documentation from OEM’s. 17

FMVSS Vehicle – Case-By-Case (CBC) - RIV • System Prerequisite(s): – Table to be created containing VIN, HS Code/Product category, CBC authorization number and effective dates that can be queried by RIV – A method for creating a unique CBC authorization number will be developed. • • Importer applies for a CBC Authorization Number from TC and is approved The CBC authorization number and approved VIN(s) are added to the TC authorization table – Checksum validation may be required for authorization Number 18

Exemptions Age • A vehicle, other than a bus, that is 15 years or older (180 months from manufacture date including month), is no longer regulated and therefore not required to go through the RIV inspection process. • A bus manufactured prior to January 1 st, 1971 (not inclusive), likewise is not required to go through the RIV inspection process. Non regulated and others • • Vehicles specially designed for work (backhoe, road grader) Closed-course use (racing car etc. ) Farm husbandry (tractor, combine etc. ) Off-road recreational use (dune buggy, golf cart etc. - except ATV & motorcycle) 19

Validation Process Standard VIN Validation Process – VIN is 17 digits – 10 th digit of VIN matches given model year – VIN passes checksum validation Vehicle Class – 16 classes in all; » » » Passenger vehicles Snowmobiles Restricted Use Motorcycles Buses Disabled Access Etc. 20

Conditional Rules • Compliance Label affixed or MFG Letter stating VIN compliance attached • Assembler (2 nd Stage Manufacturer) – A company that incompletes an incomplete vehicle. Ex: an incomplete chassis is completed into a garbage truck, cement truck etc. ) • Vehicle Condition • Title Status • Case by Case Authorization Numbers • If country of origin is given as ‘Mexico’, additional data validation rules need to be run: – ‘Vehicle Class’ cannot be ‘Motorcycle’ or ‘Trailer’ – ‘Manufacture Date’ (Year, Month) must be older than 90 days of import date – ‘Manufacture Year’ must be older than year in which vehicle is imported – ‘Mileage/Odometer’ reading is a mandatory field – If Gross Vehicle Weight Rating is less than 5 metric tons, then mileage reading must be greater than 1, 000 kms (621 miles) – If Gross Vehicle Weight Rating is greater than 5 metric tons, then mileage reading must be greater than 5, 000 kms (3, 106 miles) 21

Trade Benefits • Eliminate the need for the importer to provide a paper copy of the Form 1 at the border. • Eliminate the need for the importer to provide a paper copy of the From 3 at the border. • Eliminate the need for the importer to provide a paper copy of TC authorization letter. • Timelier release recommendations by validating information against commodity information. • Allow for electronic notification to the importer when a shipment has been released. • Allow for electronic notification to the provincial authorities. 22

Trade Benefits • Eliminate the need for the importer to provide a paper copy of the Form 1 (at the border). • Eliminate the need for the importer to provide a paper copy of the Form 3 (at the border). • Eliminate the need for the importer to provide a paper copy of the Case by Case letter (at the border). • Allow for electronic notification to the importer when a shipment has been referred for detention. • Timelier release recommendations. 23

IID Business Views The IID Message structure consists of three main levels: • Declaration Level: – used to provide information that pertains to the entire declaration/document. • Goods Group Level: – to provide "shipment/invoice " level information that pertains to various defined pieces of the information found at lower levels of the message structure, such as Commodity/line level information. • Commodity Detail Level: – to provide the traditional "line level" goods item detail. • The IID message structure aligns with the CBSA’s e. Manifest ATD message structure to support CBSA commercial process modernization efforts. 24

CBSA Data Elements The IID for Vehicles regulated goods will include the following CBSA release data elements. • Transaction Number • Purchaser/Buyer • Shipment Quantity • Service Option Identifier • Carrier Identification • Commodity Classification • Processing Indicator • Deliver to Party • Commodity Count • Priority Indicator • Exporter • Description of Goods • Government Agency Name • Value for Duty • Location of Goods • Agent/Broker • Manufacturer • Port of Clearance • Importer Number • Country of Origin/State 25

Vehicles Data Elements In addition to the CBSA release requirements that exist today, the IID for Vehicles regulated goods will include the following required data: • Importer phone number • Odometer Reading • Case by Case numbers • Importer contact name • Title Status • Importer email address • Vehicle Identification Number • WMI for approved foreign manufacturers • Assembler • Manufacturer/Production data • Importer Language preference • Make of vehicle • Manufacturer Country • RIV’s fees • Model of vehicle • Affirmation of compliance label* • Vehicle Entry Date • Model year • Vehicle Class • Vehicle Condition • Affirmation of manufacturer letter attached* • PGA Party Additional Information *one or the other affirmation 26

IID Business Glossary • The ECCRD contains a business glossary of data elements providing information on the CBSA names/definitions, WCO names/definitions and conditions of use. Data Element Name Message Function, coded Definition Code supplied by the originator to identify how the transaction is to be processed. WCO Data Element Name Message Function, coded WCO Definition Code indicating the function of a document. Conditions of Use: M = Mandatory C = Conditional O = Optional M Code 1 = Cancel Code 9 = Add/Original Code 4 = Change Code 5 = Amend 27

Next Steps • Review and discuss the data requirements and border process reengineering with your industry members. • Address questions and comments regarding Transport Canada Vehicle import requirements to Mario Demers. • Address questions and comments regarding the new SWI Vehicle border process to Marnie Mc. Kinstry. • Continue to support SWI and its consultation activities. 28

SWI Contacts Marnie Mc. Kinstry CBSA A/Manager - SWI Business Design and Development email: Marnie. Mc. Kinstry@cbsa-asfc. gc. ca Katherine Jenkins CBSA A/Manager - SWI Trade Consultations email: Katherine. Jenkins@cbsa. gc. ca Mario Demers TC – Chief – Importation and Audit Inspections email: Mario. Demers@TC. gc. ca Terry Byars CBSA Senior Program Advisor - SWI Business Design and Development email: Terry. Byars@cbsa-asfc. gc. ca Single Window Generic Mailbox: SWI-IGU@cbsa-asfc. gc. ca 29