What is Advance Commercial

Information (ACI)?
ACI is about getting the information
to CBSA prior to shipments arriving in
Canada at the first point of arrival (or
in the foreign port for Marine in some
cases).
CBSA will use the information to
make release decisions taking into
account ALL information regarding
the shipment.
Mandatory HS for all commodities,
except CSA/FAST participants.
Advance Commercial Information (ACI)
 All other existing expedited release mechanisms such as First,
RMD, will be eliminated on full implementation of ACI

 Phase 1 – Marine, offshore, April 2004.

 Phase 2 – Air & Marine from U.S. Dec 2005
 Phase 3 – Highway & Rail modes targeted for 2007.

 Increased pre-arrival reporting data (EDI) will be required for

ACI shipments

 The only alternative to CSA/FAST

ACI Proposed Reporting Times
• ACI Phase 1

• Marine mode – Marine Carriers are currently

required to transmit (EDI) marine cargo data to
the CBSA 24 hours prior to the loading of the
cargo in the foreign port.
 ACI Proposed Reporting Times
• ACI Phase 2 December 2005

• Air mode - 4 hours prior to arrival

 Air mode - (for flights less than 4 hours) “Wheels up”, at time of take-off;

 Marine mode from the U.S – Carriers & freight forwarders must transmit 24
hrs prior to arrival, or at time of departure if voyage is less than 24 hrs
 ACI Proposed Reporting Times

 ACI Phase 3 Targeted

for 2007

 Highway mode - (Non-Fast

shipments) At least 1 hour prior
to arrival at the frontier.

 Highway mode - (FAST

shipments) no advance reporting
requirement Canada bound.

 Rail mode – at least 2 hours prior

to arrival
 ACI Phase 3
Carrier

• Transmits cargo/conveyance data electronically within

designated advance timeframes. Applies to import and in- transit
shipments.

Freight forwarder

• Transmits housebill data (if applicable) in same timeframes as

primary cargo which will provide detail information needed for
risk assessment
e.g. actual consignee, shipper, precise description of goods.
 ACI Phase 3

• If “Hold For Exam” or “Hold For More Information” is issued

goods must be held at the first point of arrival for examination.

• If information is not provided electronically, the CBSA must

decide on appropriate action for each mode, example : turn
truck around, AMP, etc.
 ACI- The End State

• Importer/broker will transmit advance importer data

electronically (via PARS or importer data set),
including all 10 digit HS codes.
 ACI- The End State
• 100% Electronic Pre-Arrival Transmission from carriers,
freight forwarders, importers/brokers

• Data processed and examination decisions made prior to

first point of arrival for all modes

• Goods will release or be examined at the first point of

arrival
 Before 9/11
Importer Compliance was key

Trade Statistics and paying the proper amount of Duties and

GST was the focus

Speed of clearance for Compliant importers was the carrot

 Before 9/11
Importer Compliance was considered as lacking in Canada

C.C.R.A. decides to use an “post audit” method to scrutinize

compliance.

A series of penalties is instituted to leverage ongoing

compliance with Customs rules and regulations.

A.M.P.S.: “Administrative Monetary Penalty System”

 Before 9/11
A.M.P.S. A series of graduated penalties designed to create
incentives to maintain Customs Compliance.

Make an error – pay a fine. The size of the fine depended

upon past performance.

Compliance! Compliance! Compliance!

If you did not want to pay A.M.P.S. penalties, and have your
goods delayed at the border you had to demonstrate
Compliance to Canada Customs.
 What Is Compliance?
Waybill
Invoice
B3
#8888 #123456789
#1234
Purchase Order CADEX
Supplier Qt Item
4 Engines
# 4444 Amt:$1000 Engines
Date REF:
Qt Item PO # 4444 PO # 4444
4 Engines HS#;8407.32.00.90
Amt:$1000
PO #:4444 V.F.D:$1000.
Qt Item
INV # 1234
4 Engines

General Ledger
Subledgers Receipt #333
Journals Date
Consistency
and accuracy Qt
4
Item
Engines
in each step of Date Amt: $1000
a shipments Supplier
Amt $1000 REF: #
journey ! ABRT
Inv # 1234
Inv # 1234 PO # 4444
 Benefits of Compliance
If an importer was able to demonstrate compliance consistently;

3. No A.M.P.S. Penalties.
4. Clearance times would be short as your record will reflect
your compliance to Customs
5. Compliant Importers can enjoy Customs Action Plan /
Commercial Re-engineering initiatives.
 Commercial Re-engineering
New Approach to the report, release and accounting of goods.

From: To:
Focus on low risk Focus on high risk
Interviewing Travelers Pre-registering Travelers
Minimal Transaction data & Pre-arrival, targeting data &
release frontier release
Transactional Verification Periodic Verification
Domestic Requirements Int’l Requirements
Seizures Graduated Penalties.
 Customs Self Assessment
A partnership between importers, carriers and the C.B.S.A.

Proven Compliance = Improved Clearance Times

 C.S.A.
If importer proves compliance, trucks carrying their goods can
pass through the border without stopping.

How to prove Compliance?

5. Demonstrate to Customs that commercial systems can
detect importation when the goods are received.
6. Show ability to account for the shipment to Customs, or
ability to transfer the information to Customs broker so they
can account for the goods.
7. Utilize CSA approved carriers using CSA approved drivers.
 C.S.A.

Streamlined accounting and payment process for all goods

imported by approved importers.
- Consolidated B3 utilized
- B3 is transmitted once a month and payment is once
a month

And the option of…….

 C.S.A.

Streamlined clearance for eligible goods imported by

approved importers, using approved carriers and registered drivers

CSA Approved Importer

CSA Approved Carrier
CSA Approved Driver
Immediate Clearance
 CSA
• To qualify….

• Head office in Canada or operate a branch office in Canada

• Two years of importing history without major infractions

• Can provide senior mgmt representation that business

systems will
• support CSA program requirements.

• Are prepared to invest in business systems.

 Commercial Driver
Registration Program
• Driver registration will allow Canadian Customs clearance
to be easier for pre-approved drivers.

• Allows for CSA participation by approved drivers and

carriers.

• Driver’s Immigration admissibility is pre-determined

• CDRP photo ID card presented at the border and passage

is tracked electronically.
 Post 9/11
United States closed their borders.

False impression that some or all responsible terrorists arrived

in the U.S. via Canada.

Security was subsequently added as an necessary part of

what has to be demonstrated to Customs.
 Post 9/11
United States Customs Service Robert C. Bonner -
Commissioner, U.S.
Customs and Border
Protection

Formerly reporting to Treasury Department, changed to

reporting to newly created “U.S. Department of Homeland
Security”

Changed name to U.S. Customs & Border Protection.

Demonstration of Security became even more of a focus.

C.B.S.A. acted as a trade facilitator and a collector of tax for the
Canadian Government
US Customs exists to protect the American people and
protect the country
Importing into Canada is a right

Importing into the United States is a privilege

 Post 9/11
The United States CBP mandated that border security for
freight entering the United States was the highest priority.

Canada was under pressure both economically and politically

to change their focus from just Revenue Collection to include
Security.
 Post 9/11
Canadian mandate of Commercial Re-engineering was to
continue but with an added dimension:

Security!
 Isn’t Being Compliant
Enough?
• In order to be considered a “low risk” with U.S.
and Canadian Customs in the past “compliance”
was the rule of thumb.

• If a company followed the rules and regulations

regarding importing and exporting, one could
expect a reasonable inter-action with Customs to
get goods cleared through Customs, and on their
way to their destination.
 Compliance AND Security
With the new focus on deterring Terrorism and
Organized Crime, demonstrating to the Customs
Authorities that a Company is compliant with Customs
Regulations is no longer enough.

A Company must also demonstrate they are a Security

conscious importer and exporter as well.

Compliance + Security = Low Risk Importer/Exporter

 Compliance AND Security

Paradox: Free Trade - Security

How to demonstrate Security?
Canada: Partners In Protection “P.I.P.”

United States: Customs Trade Partnership

Against Terrorism “C-T.P.A.T”
 Partners In Protection –
Voluntary “P.I.P.”
A co-operation between private industry and private
industry to enhance border security, combat organized
crime and terrorism, increase awareness of Customs
Compliance Issues, and help detect smuggling.

Complete a Participant Information Document

A goodwill agreement; “Memorandum of Understanding”

is agreed to and signed between the organization and
C.B.S.A.
 Partners In Protection –
“P.I.P.”

A security questionnaire must be completed and returned to

CBSA within 60 days of signing the MOU. This questionnaire
gives CBSA an executive summary and self-assessment of the
company’s security processes
• Security Concerns should include:

Conveyance Security:
Integrity should be maintained to protect against the
introduction of unauthorized personnel and materials

Should include examination of all accessible areas

and procedures for dealing with unauthorized activity
if discovered
Physical Security:

All buildings and yards should be designed to resist

unlawful entry

May include perimeter fences, adequate lighting,

locks on internal doors, windows, gates, etc.
Access Control:
Prohibit access to shipping loading dock and cargo
areas.

Controls should include identification of employees

Integrity should be maintained to protect against the
introduction of unauthorized personnel and materials

Should include examination of all accessible areas

and procedures for dealing with unauthorized activity
if discovered
Procedural Security

• Procedures to protect against non-reported

materials being introduced in the supply chain

• Enhanced Cargo handling procedures and

monitoring of incoming and outgoing goods

• Conduct random security assessments of

controls within supply chain and implement
procedures for notifying Customs of any
anomalies or illegal activities detected or
suspected.
Manifest Procedures and Data Protection:

Must ensure documentation is timely, accurate and

complete.

Implement measures to protect electronic assets and

computer access.

Maintain secure storage of unused forms to prevent

unauthorized use.
Personnel Security:

Employment Screening of prospective employees

should include background checks and application
verification
Education and Training Awareness:

Encourage active employee participation in security

issues and controls.

Implement a security awareness program including

cargo integrity and unauthorized access
 Partners In Protection – “P.I.P.”

Available to entire trade community

A C.B.S.A representative will be assigned to

the Partner and after implementation will meet
periodically to exchange information.
 “P.I.P.”: Benefits…..
1. Shipments and travelers will be processed more quickly
2. Improved Security Levels
3. Firm’s staff will become more familiar with Customs
requirements
4. C.B.S.A. Security personnel will examine firm’s security
levels and assist with suggestions
5. Enhanced reputation for the company by demonstrating a
willingness to work with Customs (CBSA).
 “P.I.P.”: Benefits…..
con’t
6. Coupled with an excellent compliance record will
result in reduced examination rates.

7. Better Communication with CBSA

8 Ability to join FAST (CSA + PIP = FAST)

9 Decreased clearance times in the new A.C.I.

environment
 “P.I.P.”: Benefits…..
con’t

10. As many countries (like the G7) are moving to

standardize trade data and involving businesses in
programs to minimize security threats, participation in
PIP (and C-TPAT) will provide companies with
competitive advantages in several global economies
 Free and Secure Trade
(F.A.S.T.)
• FAST is a harmonized program between the CBSA,
Citizenship and Immigration Canada (CIC) and the U.S.
Bureau of Customs & Border Protection (CBP)

• Built on the pre approval and risk assessment aspects of

CSA and PIP, FAST shipments for approved FAST
Importers, transported by approved FAST Carriers, using
FAST registered drivers will be cleared with greater speed
and certainty.
 Free and Secure Trade
(F.A.S.T.)
• FAST is a available to Importers, carriers and Drivers who
have demonstrated a history of compliance with all
Customs laws, and have acceptable books, records, and
audit trails.

• Canada and US have agreed to align their Customs

commercial programs along the shared border.

• Free flow of low risk, legitimate trade.

 Free and Secure Trade
(F.A.S.T.)
• Available Locations:
Canada United States
• Stanstead (55), Quebec Derby Line, VT
Lacolle, Quebec Champlain, NY
• Queenston Ont Lewiston NY
• Fort Erie, Ontario Buffalo NY
• Windsor, Ontario Detroit MI
• Sarnia, Ontario Port Huron MI
• Emerson, Manitoba Pembina, ND
• North Portal, Saskatchewan Portal, ND
• Coutts, Alberta Sweetgrass, Montana
Pacific Highway, British Columbia Blaine WA
 Free and Secure Trade
(F.A.S.T.)
Benefits:

• Reduces Info requirements for each customs clearance

• Eliminates need to transmit data for each transaction
• Dedicated lanes for FAST clearances
• Reduces rate of border inspections
• Trade compliance verified away from border
• Streamlines accounting and payment processes for
approved importers (Canada Only)
 (F.A.S.T.) Requirements
Canada

Partners in Protection + Customs Self Assessment

PIP + CSA = FAST

United States

Customs – Trade Partnership Against Terrorism

C-TPAT
 Free and Secure Trade
(F.A.S.T.)
• Border Requirements

• Into Canada

- 3 bar coded data elements

- 1- FAST Approved Importer
- 2- FAST Approved Carrier
- 3- FAST Approved Driver (FAST card must be shown)
 Free and Secure Trade
(F.A.S.T.)

• FAST Approved commercial drivers will be given

FAST placards on their trucks

• This placard along with the driver showing his FAST

card will place the truck in a dedicated FAST lane at
Customs.
 Future of Canadian Customs
Clearance
Advanced Commercial Information – A.C.I.

or

Free and Secure Trade – F.A.S.T.

Customs Perception of a Company’s Security levels

will affect both types of clearances