Canada Moves Ahead With eManifest Requirements for Carriers and Forwarders
Canada took another step toward setting “eManifest” advance manifest transmission requirements for truck and rail cargo, issuing on Feb. 15 proposed regulations that would implement the long-delayed program. Canada Border Service Agency’s proposed rule would require truck carriers to submit cargo and conveyance information one hour before reaching the Canadian border. Rail carriers would have to submit data two hours before a train crosses the border. Freight forwarders would also be tasked with advance electronic submission of secondary information on a shipment, and would have to keep associated records as well.
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Compliance 45 Days After Final Rule; Importer Regs Due in 2015-16
CBSA is accepting comments on the proposed rule for 30 days. Truck and rail carriers would then have 45 days from issuance of the final regulations to comply (here). CBSA says most carriers are already set to comply because they conduct business on both sides of the border and are already required to electronically submit manifest data to CBP. CBSA plans to issue a second set of proposed regulations on advance information requirements for importers sometime in 2015 or 2016, it said. eManifest requirements were originally due to take effect for air and truck carriers in fall 2013 (see 11101421), but CBSA delayed implementation due to the hold-ups in “regulatory processes” (see 13102403).
Truck Cargo Info One Hour, Rail Cargo Two Hours Before Arrival
Under the proposal, truck carriers would have to electronically send to CBSA cargo and conveyance information, such as a description of the cargo and a license plate number, at least one hour before the truck arrives at the border. The information could be sent by either the truck carrier or a third-party service provider. Rail carriers would have to electronically send to CBSA cargo and conveyance information at least two hours before a train is expected to cross the border. The rail carrier would also have to transmit an electronic arrival message when the train crosses the border.
For air and ocean modes, which are already subject to electronic advance manifest requirements, CBSA’s proposed rule would require electronic notification of arrival. Air carriers would be required to notify CBSA of arrival when the aircraft is cleared to land by NAV CANADA. Ocean carriers would be required to electronically notify arrival when a vessel lands at a port of entry.
Low-value shipments. CBSA said the proposed changes would not apply to goods imported under the courier Low Value Shipment (LVS) program (e.g. casual goods or goods that have an estimated value of less than $2,500) that are transported by or on behalf of a courier that has been authorized to account for those goods.
Break-bulk ocean cargo. The proposed rule would allow ocean carriers of break-bulk cargo to transmit their cargo and conveyance information 24 hours before estimated arrival at a Canadian port of entry. Currently, transmission is required 24 hours before loading and the port of export, and break-bulk carriers can apply for an exception to transmit data 24 hours before arrival. The proposed rule would get rid of the requirement to apply for that exemption.
Penalties for ocean/air noncompliance. CBSA’s proposed rule would for the first time impose penalties on ocean and air carriers that don’t comply with eManifest requirements. CBSA would be able to impose monetary penalties on ocean and air carriers for failing to provide cargo and conveyance information electronically or within the required time frames; failing to notify the CBSA without delay of a change to the advance commercial information provided; failing to comply with a notification issued by the CBSA regarding commercial goods destined for Canada; or failing to hold a valid carrier code.
New Requirements for Freight Forwarders
CBSA’s proposed rule would also set new requirements for freight forwarders. Under the proposal, forwarders would have to electronically transmit “secondary information” to CBSA before arrival of cargo in all modes. Secondary information is additional details about the goods, such as the name of the person receiving the goods and the delivery address. CBSA said freight forwarders often provide this information in practice, but they are not required to do so under the current regulations. The proposed rule’s deadlines for secondary information would be as follows:
- Ocean: At least 24 hours before loading, or 24 hours before arrival, depending on the type and origin of the goods
- Air: At least 4 hours before arrival
- Rail: 2 hours before arrival
- Truck: 1 hour before arrival
Recordkeeping. The proposed rule would also require forwarders to keep records of all information provided to and received from CBSA electronically for three years plus the current year.
Codes Required for Carriers and Freight Forwarders; Can Be Revoked
Finally, the proposed rule would require carriers and freight forwarders to hold a valid carrier code. A carrier would be able to hold one carrier code for each mode of transportation in which it is engaged, while a freight forwarder would only be able to hold one carrier code. CBSA would be able to suspend or cancel a carrier code if a carrier or freight forwarder violates the law, fails to pay duties or taxes, or provides false information in their application for a carrier code. Carriers and freight forwarders would be required to keep the information regarding their carrier codes up to date and to inform the CBSA of certain changes, said CBSA.