CCSA/FAST & ACI Presentation

The Customs World Changes

Be “PREPARED” for the Customs world

changes

Strategic Commitment - Why Change?

CBSA remains committed to our “strategic direction”:

Customs Action Plan (CSA, ACI & AMPS) Risk Assessment/Management (TITAN) Smart Border Plan-U.S. (CSI, ACI & FAST) Harmonization with the United States and

Mexico to the greatest extent possible (Security and Prosperity of North America (SPP)) – “E-Manifest”

Intensified Process

for unknown or higher

risk

Two Future Options For Importer

To Choose Nothing Is NOT An Option

Advance Commercial Information (ACI)

Customs Self Assessment (CSA)

Streamlined process for low risk

ACI remains the baseline to which all commercial importations must conform unless the importation qualifies for CSA/FAST clearance in highway, air, marine and/or rail modes

ACI is about… getting the right information, at the right time, to make informed decisions on whether to examine shipments at first point of arrival, or in some cases, the foreign port of lading

What Is ACI E-Manifest?

Tell Me More About ACI…….

The base line for all commercial importations

Getting advance information to determine examination at first point of arrival or foreign port of lading

Program for unknown or high risk importers

Crown Project – $431.6M over five years to reinforce smart, secure borders (Stockwell Day – Minister, Public Safety)

$396M investment for E-Manifest

ACI E-Manifest Initiative - All Modes

IMPORTER

OFFSHORE MARINE (24

hours)

AIR (4 hours)TRANSBORDER MARINE (24 hours)

HIGHWAY (1 hour) RAIL (2 hours)

SECONDARY CARGO

Phase I Phase II Phase III (E-Manifest)April 2004 December 2005 - June 2006

ACI E-Manifest (Final Stages)

Importer or Agent

Carrier

Freight Forwarder

1. Admissibility Data

10 + 2 - ATD1. Manufacturer name and address (M)

2. Seller name and address (M)

3. Buyer name and address (M)

4. Container stuffing location (M)

5. Freight forwarder / Consolidator name

and address (C)

6. Importer of record number (O)

7. Importer name and address (O)

8. Consignee number (O)

9. Country of origin (M)

10. Commodity HS code (M)

(+2) Container Status+Bay Plan (Carrier)

1. Untrue/Inaccurate/IncompleteData

2. Time – Goods arrive before

Data is transmitted

AMPS

TITAN/ ACROSS

Exam

No Exam

2. Release 3. B3 Accounting

3 data sets for Importer

What Is Customs Self-Assessment (CSA)?

The CSA program gives approved importers, approved carriers, and registered drivers the benefits of a streamlined clearance option for CSA eligible goods

The CSA program gives approved importers the benefits of a electronic accounting and payment process for imported goods

Importers use the data stream from their own business systems to fully self assess and satisfy customs requirements and no longer need to maintain additional and separate customs processes

Customs Self-Assessment (CSA)

The CSA program involves a three-part application and approval process:

Part I Risk Assessment Part II Books and Records and

Business Systems Part III Importer Program Requirements

FAST is a joint program between CBSA, CIC, and the U.S. CBP that offers expedited clearance processes for eligible goods to pre-authorized importers, carriers, and drivers

In the U.S., participation in FAST requires applicant importers and carriers to become C-TPAT approved

FAST participants can obtain facilitated clearance in both countries through dedicated FAST lanes and/or dedicated FAST booths

In Canada, FAST builds on principles of the CSA program and the security measures built into the Partners in Protection (PIP) program

What Is FAST?

Clearance Process

Clearance

FAST Approved Importer

123456789RM0001

FAST Approved

Carrier

9999

FAST Registered

Driver

What Is Partners in Protection (PIP)?

Partners in Protection (PIP) is designed to enlist the cooperation of private industry in efforts to:

enhance border security combat organized crime and terrorism increase awareness of customs compliance

issues help detect and prevent contraband smuggling future changes and transition to program

(June 30 – Dec 31, 2008)

FAST FORMULA

CSA(Customs Self Assessment)

PIP(Partners in Protection)

FAST(Free & Secure

Trade)++ ==

Revenue Reporting &

Payment

Trade Data Reporting & Correction

Border Clearance

FAST AND CSA BENEFITS

3 Main Benefits

Border Clearance

FAST AND CSA BENEFITS

3 Main Benefits

Clearance Border

Importer does not have to transmit information in advance (no ACI requirements) No mandatory HS required at time of clearance

OGD requirements can be made after clearance: Air bag and seatbelt pretensioners (Natural Resources Canada); Tires (Transport Canada); Fish products (Canada Food Inspection Agency); Lawnmowers and snow blowers (Environment Canada)

FAST/ CSA clients will have lower risk score in targeting system

Dedicated lanes for FAST clearance – 4 border locations (future expansion)

Clearance Border

CSA offshore clearance option will be available (currently in the initial design stages – air and marine modes – reduced data set (e.g. BN# & CC# for clearance)

No paper and administrative costs associated with clearance

Less wait time at the border

Goods delivered directly to importer’s premises or customer's premises from border

Reduced landed cost of goods

Faster delivery time translates to competitive advantage better services and improved sales/services

Trade Data Reporting & Correction

FAST AND CSA BENEFITS

3 Main Benefits

Trade Data Reporting & Correction

Each importer and carrier is assigned a Compliance Manager to facilitate CSA participation

Electronic environment, less paper and faster customs response

Companies have greater control and visibility of customs reporting, accounting, adjustment, payment and compliance

Electronic adjustment - CBSA decisions more immediate

Refund and drawback amounts are reported as a credit and may be deducted from amounts owing each month– improves cash flow

Streamlined clearance, accounting and payment – reduces documentation and administrative costs

Trade Data Reporting & Correction

Accounting from importer’s books and records improves compliance and reduces penalties

Longer accounting timeframes – improves accuracy and completeness, and reduces the number of adjustments required

Accounting and adjustments can be consolidated resulting in fewer customs transactions

Electronic adjustments – no paper documentation, no cheque for each transaction

Revenue Reporting &

Payment

FAST AND CSA BENEFITS

3 Main Benefits

No more K84

Revenue Reporting &

Payment

Revenue amounts are reported monthly on a single document (Revenue Summary Form)

Revenue amounts owing are summarized by the importer on a monthly basis

A single, net amount is paid to a financial institution each month – importer control of cash flow with fewer payments to Customs

CSA/FAST Participation

Participation in the CBSA FAST program as of March 2008:

– 53 CSA & 40 FAST approved Importers– 806 CSA/FAST approved Carriers

53 Importers represent about $79 billion VFD of imported goods (20% of total VFD)

Program for CSA importers – allows self audit for Customs programs (.i.e.. tariff classification, origin, valuation etc)

No AMPS as first response

Currently being piloted – 2nd phase 8 new CSA importers selected (GM & Chrysler)

Pilot ends in 2008 – review to make it a program

Only available to CSA importers!

CSA Benefit For The ImporterPartners in Compliance (PIC)

Costs of providing advance electronic data for each and every shipment under ACI

FAST/ CSA clients will have lower risk score in targeting system.

Possible delays at the border if all required ACI advance electronic data has not been transmitted to CBSA

CSA/FAST v.s. ACI

Enhanced reputation of being in the FAST/CSA low risk stream

Cost savings and benefits of FAST/CSA streamlined clearance, accounting, adjustment, and payment

Additional benefits that will only be extended to FAST/CSA importers (i.e. Partners in Compliance)

CSA/FAST v.s. ACI

ACI E-Manifest development (5 year project)

CSA expansion and program enhancements – importers are considered “platinum” importers

Expanding CSA benefits – e.g. Partners In Compliance

What The Future Holds?“The Crystal Ball Theory”

The “Answer To Your Question”

CSA/FAST is the way of the future!

Think Outside Of The Box

Way of the future!

Embrace technology

and take advantage

of the benefits

For More Information Visit the following Websites:

http://www.cbsa.gc.ca/prog/csa-pad/menu-eng.html

http://www.cbp.gov/xp/cgov/trade/cargo_security/ctpat/

Thank You!

Les King – CSA Senior Program Advisor