Menlo Worldwide Trade Services

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Canadian Security Initiatives The Cost to
Business

• September 11, 2001 Attacks
• Homeland Security leading to new Customs and
  Security Initiatives -CBSA
• Customs and Security Initiatives Impact on
  Business

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Initiatives

• PiP (Partners in Protection
• CSA (Customs Self Assessment)
• FAST (Free and Secure Trade)
• 24-Hour Rule
• ACI (Advance Cargo Information)

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Partners in Protection (PIP) Overview

• PIP was designed by CCRA and enlist the
  co-operation of private industry in efforts to
  enhance border security similarly to US Customs
  C-TPAT.

• Benefits
• quicker movement of low-risk travelers and goods
  through customs
• improved security levels
• enhanced reputation for your organization
• improved understanding of customs requirements
• better communication between companies and the
  CCRA

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Partners In Protection (PIP)

• Implementation Procedure
• Complete Memorandum of Understanding (MOU)
• Enhanced Security
• Information Exchange
• Awareness Sessions
• Security Questionnaire

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Overview

• The FAST program will allow importers on the
  U.S./Canada border to obtain expedited release
  for qualifying commercial shipments.
• Their objective

• To enhance the security and safety of Canadians
  and Americans, while enhancing the economic
  prosperity of both countries.

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Where is FAST Available

• Pacific Highway, BC / Blaine, WA.
• Sarnia, ON. / Port Huron, MI.
• Windsor, ON. / Detroit, MI.
• Fort Erie, ON. / Buffalo, NY.
• Queenston, ON. / Lewiston, NY.
• Lacolle, QU. / Champlain, NY.
• Standstead, QU. / Derby Line, VT.
• St. Armand/Phillipsburg, QU. / Highgate Springs,
  VT.
• Lansdowne, ON. / Alexandria Bay, NY.
• Emerson, MB. / Pembina, ND.
• North Portal, SK. / Portal, ND
• Coutts, AB. / Sweetgrass, MN

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What are the Requirements for FAST?

• Entered by a C-TPAT approved importer C-TPAT for
  Importers
• Importers are required to participate in C-TPAT.
• Carried by FAST/C-TPAT approved U.S./Canada
  Border Highway Carriers
• Driven by FAST approved commercial
  driversU.S./Canada FAST Commercial Driver
  Program
• Cargo Release Method(s) - The FAST cargo release
  methods will be expanded as the program proceeds.

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Canadian 24-Hour Rule
April 2004 Canada implemented The 24-Hour Rule
Regulations requires advanced and accurate
presentation of Cargo Declaration prior to lading
at the foreign port for Ocean cargo.
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Advanced Commercial Information (ACI)

• Advance Cargo Reporting is one element of the
  ACI initiative. This initiative requires key data
  elements to be transmitted electronically prior
  to goods and conveyances arrival in Canada.

• Proposed Time Frames
• Rail 2 hours prior to arrival
• Air (for flights greater than 4 hrs) 4 hours
  prior to arrival
• Air (for flights less than 4 hrs.) Wheels
  up, at time of take off
• Highway (for non-FAST shipments) 1 hour prior
  to arrival
• Highway (for FAST shipments) Zero, Canada
  Bound
• Marine 24 hours prior to lading (effective
  April 2004)

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ACI Continued

• Advanced Commercial Information will be delivered
  in phases
• Phase 1 (April 19th 2004)
• Mandatory advance Electronic Data Interchange
  (EDI) cargo and conveyance reporting for marine
  mode
• Phase 2 (May 9th 2005)
• Mandatory advance EDI cargo and conveyance
  reporting for air and rail modes and marine
  shipments loaded in the United States
• Phase 3 (Fall 2005)
• Mandatory advance EDI of highway cargo and
  conveyance data
• Mandatory advance EDI transmission of Secondary
  cargo data for all modes
• Mandatory electronic release data for all modes

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Homeland Security the Cost to Business

• What Action Should Business Take?
• Programs such as C-TPAT, PIP, and FAST will have
  a financial cost. Non-participation will result
  in a higher cost for business.
• Business should exhaust resources such as MWTS,
  CBSA, Logistics Associations, etc.
• Assign various vertical levels within an
  organization to participate and understand new
  Initiatives.