© 2002 Perimeter Clearance Coalition April, 2002 Expediting Bilateral Trade & Travel Securing Our External Borders Perimeter Clearance Strategy TO REALIZE

© 2002 Perimeter Clearance Coalition

April, 2002

Expediting Bilateral Trade & Travel

Securing Our External Borders

Perimeter Clearance StrategyTO REALIZE A SMART BORDER FOR THE 21ST CENTURY

2© 2002 Perimeter Clearance Coalition

Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century

Elimination of the Canada - US border

Creation of a Customs Union like the E.U.

Full harmonization of Visas, immigration

policies and import rules

Perimeter ClearancePerimeter ClearanceIS IS NOTNOT



Perimeter Clearance VisionPerimeter Clearance Vision

“The US and Canada working

closely together to strengthen

protection of the external borders

and expediting the movement of

low-risk people and goods at the

common border between the two

countries.”



BeneficiariesBeneficiaries

Governments Tourism Industry

Travelers Airports

General Public Ports

Communities Airlines

Importers/Exporters Railways

Shipping Lines Manufacturers

Trucking Firms



BenefitsBenefits

Increased efficiencies in logistics, just in time

manufacturing and reduced storage costs

Reduced border processing delays

Reduced transportation costs

Enhanced security

Lower fuel consumption

Higher utilization rates

Stimulation of trade and travel

Substantial Reduction in Environmental Discharge



Key Elements ofKey Elements ofPerimeter Clearance Perimeter Clearance

Perimeter Security

Perimeter Clearance for Goods

Economic Security Through Expedited Low Risk

Cross Border Trade and Travel

Canada-U.S. Land Border CrossingCanada-U.S. Land Border CrossingMovements Streamed by Risk AssessmentMovements Streamed by Risk Assessment

Cars

Commercial Trucks

Pre-Determined Low Risk (Expedited)

Other(Not Pre-Registered)

Pre-Determined Low Risk (CSA NCAP PARS BRASS FIRST PAPS RNS

Line Release & Empties)

Other(Not Pre-Registered)

?

?

Unknown

High Risk(Not Cleared)


Cleared asLow-Risk



Unknown

Cleared asLow-Risk

?

?

© 2002 Perimeter Clearance Coalition 7Note: CSA = Customs Self Assessment; NCAP = National Customs Automation Prototype; PARS = Pre-Arrival Review System; BRASS = Border Release Advanced Screening and Selectivity, FIRST = Frequent Importer Release System, PAPS = Pre-Arrival Processing System, RNS = Release Notification System




NEXUS-TYPECARS (20+%)AUTOMATEDVERIFICATION

Canada-U.S. Land Border CrossingCanada-U.S. Land Border Crossing “Traffic Streaming” “Traffic Streaming”

Applicable for Entrance in Either US or CanadaAnd Either In-Country, or In-Other-Country

REGULARCARSBOOTHS

NO PRE-SCREENING

EXPEDITEDPROCESSES

PRE-CLEARED ANDKNOWN LOW RISK TRUCKS (80%)

REGULARTRUCKSUNKNOWN RISKNO PRE-SCREENING

2-LANE APPROACH ROAD PLAZA ENTRANCE

(mixed streams)





There are three immediate actions that must be advanced in the near term:

1) Achieve regulatory requirements for the Processing Zone Concept: The global competitiveness of Canadian and American businesses depend on the capabilities provided for by the Processing Zone Concept. Realization of this requires Canadian legislation to provide for authorities to customs and immigration officers. This will be essential to efficient border management, achievement true joint facilities, securing border crossing infrastructure and elimination of congestion. These in turn will enable the facilitated processing of known low-risk goods and people to shift focus to high-risk groups.

2) Bi-National Data Sharing: Adopting a standard and implementing inter-agency and bi-national data sharing is critical to Perimeter Clearance communication of information. This item is particularly important for Customs processing. This would allow for enhanced security and expediting processing such as first point of arrival processing, and sea container targeting. Without achieving this, Canada would be precluded from participating in a Perimeter Clearance Strategy.

3) Deployment of NEXUS at land borders: The expedited land border program for passenger vehicles is needed to support the growth in traffic and to alleviate current congestion. Expediting this traffic is important to the growth of tourism, as well as to linking expedited systems to be deployed on other modes (e.g. marine, air). Moreover, its deployment is one of the main requisites for achieving access of pre-cleared trucks to primary processing booths.

Key Actions to Achieve Traffic Key Actions to Achieve Traffic StreamingStreaming


Case StudiesCase StudiesPerimeter Clearance Strategy to Realize a Smart Border for the 21st Century



© 2002 Perimeter Clearance Coalition 12


Goods Flow 1: International Goods Clearance to TransborderDestinations (Point of First Arrival)

Key Benefits Eliminates full initial Customs inspection at US/Canada Border

thereby reduces congestion and delay at the border

Increases security, as cargo is pre-screened for risk level determination & is inspected at point of first arrival

Increases knowledge and time for destination country’s custom service before actual goods arrive at the 49th parallel for subsequent admissibility review decisions and further review if required

Reduces costs and delays for both governments and supply chains

Reduces train disassembling at 49th parallel

Challenges Requires data sharing and computer system interoperability between

Canada and U.S. Customs Agencies

Requires 24/7 port operation and inspection equipment/technology resources

Requires cross designation between U.S. and Canada Customs to perform reviews and inspections in point of first arrival country on instructions and to the standards of the destination country

An alternative, after passage by Parliament of companion legislation to airport pre-clearance, is expanding pre-clearance to land borders and seaports to perform the admissibility review and inspections.

Initial Review indicates cross-designation at seaports would be the less costly and preferred course of action

1 2 3

Marine or AirReporting Prior

to Arrival

CanadaCustomsReview

Admissionto Canada

CURRENT 4

PrimaryExamination

5

US/Canada Border Release(Rail/Truck)

Sealed & Transported toUS Border

6

Deliveryto US

Destination

7

Assessment&

RedressSecondaryExamination

PERIMETER2 3 4

Marine or AirReporting Prior

to Arrival

Canada/USCustoms

Examination

Cargo Sealed Admission to Canada

and conditionally releasedfor U.S. Delivery

5

ExpeditedTransborder Lane

(for Random/SelectedChecks)

Sealed & Transported toUS Border

6

Deliveryto US

Destination

Rail/TruckRegistered Driver

1

AdvancedInformation

Transmission

7

Assessment&

Redress

DetentionSecondary

Examination

Transmission of information to / from the INTEGRATED INFORMATION SYSTEM



Goods Flow 2: Transborder Clearance: Pre-determined Low Risk U.S. or Canadian Goods Crossing in Either Direction

Key Benefits 80% of trucks can clear at primary without queuing

Eliminates waiting delays and congestion at the border

Facilitates just in time delivery

Reduces costs and enhances competitiveness

Reduces train disassembling at 49th Parallel

Significantly reduces environmental discharges of hydrocarbons, carbon monoxide (CO) and nitrous oxides (NOx)

Challenges Requires implementation of a joint low-risk passenger system (NEXUS)

as 85% of vehicles are cars. Known low-risk car traffic needs to be facilitated to allow streaming of pre-determined low risk trucks for expedited access

Requires streaming of traffic (see diagram on subsequent page), segregating and facilitating known pre-approved low-risk, queuing all unknown and other cars and trucks for increased scrutiny. This is key to improved security and efficient processing of pre-determined low risk trade and people

Requires driver registration

Requires legislation to permit US/Canada officials to administer own statutes in the other country to allow primary examinations to be performed in the most efficient way

CURRENT

PERIMETER1 2 3

CompleteRegistration

and approval forlow-risk designation

(Companies, Goods, Drivers)

EDI/InternetTransmission of

Shipment Data toCustoms

CustomsReview/DecisionPrior to Arrival

orFor Line Release andBRASS bar code is wanded at arrival

4

ExpeditedTransborder Lane(Random/Selected

Checks)

5

Deliveryto

Destination

Similar but very limited -- no expedited access to primary processing (delayed in regular truck & car queues)

6

Assessment&

Redress



14


Goods Flow 3: Transborder Clearance: High or Unknown RiskUS or Canadian Goods Crossing in Either Direction

CURRENT SYSTEM is essentially the same for both cases, with higher volumes in these categories than would occur with the proposed perimeter clearance system.

Key Benefits Proposed Perimeter and Pre-Determined Low Risk Clearance

System will result in more importers and carriers applying for expedited programs with streaming access.

Allows identification and increased focus on the “other than known low risk” category, thereby increasing enforcement capability and threat detection.

Challenges Requires appropriation of required staff, technology, inspection

equipment and intelligence capability to process this risk category at a pace which avoids congestion build-up, so as to prevent expedited access of pre-determined low risk to the border crossing.

PERIMETER CASE 2 : INITIAL REPORTING AT ARRIVAL

1 2 3

Arrival atUS/Canada Border

Unannounced

CustomsPrimary Examination

Refer to Customs SecondaryCompliance Verification/

Examination

4

Release

Detention

5

Deliveryto

Destination

6

Assessment&

Redress

PERIMETER CASE 1 : REPORTING PRIOR TO ARRVIAL AND RISK DETECTED

1 2 3

CompleteRegistration

and approval forlow-risk designation

(Companies, Goods, Drivers)

EDI/InternetTransmission of

Shipment Data toCustoms

CustomsReview/DecisionPrior to Arrivaland Finds risk

4

ExaminationUpon

Arrival

5

Release

SecondaryExamination

6

Deliveryto

Destination

Detention

7

Assessment&

Redress

Transmission of information to / from the INTEGRATED INFORMATION SYSTEM © 2002 Perimeter Clearance Coalition 15


Lower cross border logisticsReduction by 20% of crossborder logistics~$4 billion/ year

Flows through toLower Cost of Products

Just-in-timeproductionefficiencies

Increased Trade in Goodsdue to reduced Costs

GOODS MOVEMENT

Efficientborderfacilities

Higher degreeof logistics

choices

Reducedfacilitation

costs

Loweroperating

costs

Delay Time SavingsOperating Cost of Trucking & Rail$200 million / year

Efficient border facilitiesDelayed costs of building new facilities~$100 million/ year

Just in Time & Logistics Efficiencies8% reduction in non-border logistics~$5 billion/ year

Additional new economic functionslocating in Canada/USStimulated New Economic Activity


Order of Magnitude Benefits from Order of Magnitude Benefits from Perimeter Clearance:Perimeter Clearance:


Delay Time Savings75% of trucks & 65% of carseliminated from queuing

4.4 million hours saved / year

Gasoline & DieselTrucks: $3 million / yearCars : $2 million / year

More efficient use of existingfacilities & infrastructure

50% less emissions at landborder crossings71,000 lbs HC 990,000 lbs CO124,000 lbs NOx

Health Care Costs, loss of life,pain & suffering, lost productivity


Environmental BenefitsEnvironmental Benefitsfrom Perimeter Clearancefrom Perimeter Clearance


enhanced securityand facilitation

ReducedQueues

ReducedEmissions

HealthCosts

Savings

Less fuelConsumption

Lowerenvironmentalfootprint

ENVIRONMENT


Perimeter Clearance Strategy to Realize a Smart Border for the 21st CenturyINTEGRATED INFORMATION SYSTEM

Pre-registration

InternationalArrival toCanada

(Entry Tracking)

VISITOR

NO CARD

EntryProcess

Visit/Stay inCanada

ConnectingFlights to

U.S.

Transit to U.S.

Aircraft GateExit Tracking

Aircraft GateExit Tracking

Visit/Stay inU.S.

Int’l Departuresfrom U.S./Canada

PERIMETER

U.S

CANADA

BORDER

NO CARD

EntryProcess18




Passenger Flow 1: International Travel to either Canada or US(One Country Admission)

Key Benefits Improve risk management

More secure visa application process

Confirmation of international arrival with positive identification

Provide capabilities for determining identity of individuals with documents lost in transit

Faster transaction times for processes; more efficient flow in passenger traffic

Challenges Securing transmission of information from different points of the globe

Developing incentives for non-visa requiring visitors to apply for Perimeter Card

2 3

InternationalMarine or Air

Arrival

CustomsClearance

Admissionto Country

1

CURRENT

A

VisaApplication

WHERE APPLICABLE


PERIMETERCARDHOLDERS

1 3


Arrival

Expedited

Biometric

KioskClearanc

e

Admissionto Country

A

Perimeter Card(one-time application)

+Visa if applicable

2

20



Passenger Flow 2: International Travel to Canada & U.S.(Dual Country Admission)

Key Benefits Maintenance of sovereignty in admission policies

Common platform for providing admission to one country or both, coded to the individual


Streamlining steps and queues for the passenger

Challenges Establishment of single-window visa process & cross-designation

Securing transmission of information from different points of the globe

Developing incentives for non-visa requiring visitors to apply for Perimeter Card

Admissionto SecondCountry

2 3


Arrival

CustomsClearance

Admissionto FirstCountry

4

U.S./CanadaBorder

(land/air/sea)

51

CURRENT

A

VisaApplication(Canada)

B

VisaApplication

(US)

WHERE APPLICABLEINTRANSIT PRECLEARANCE




+Visa (single window

process) if applicable

1 3


Arrival

ExpeditedBiometric

KioskClearance

Admissionto one

countryor both

Arrivalto SecondCountry

5

ExpeditedUS/Canada

BorderProcesses

(land/air/sea)

A 2 4

INTRANSIT PRECLEARANCE

21



Passenger Flow 3: Travel Between US & Canada

Key Benefits Faster transaction times for processes; more efficient flow in

passenger traffic Common expedited processes between countries

Shared card between different modes of transport

Builds upon CANPASS/INSPASS/NEXUS projects

Positive identification of individuals and their vehicles

Maintenance of current processes for infrequent travelers

Challenges Awareness of programs for frequent travellers

Common bi-national standards for positive identification

Privacy and data sovereignty

Positive identification procedures for buses & rail modes

2

US/CanadaBorder

Clearance (all modes of transport)

Admissionto

Other Country

1

CURRENT



A


1 2

ExpeditedPositive

IdentificationClearance

(all modes of transport)

Admissionto OtherCountry

22



Passenger Flow 4: Outbound International Travel

Key Benefits Exit tracking for foreign nationals to visa stays

Integration of airline check-in process to Perimeter Card & positive identity authentication


Platform for “hit-lists” to prevent passage through security screening of terrorist suspects or other threats

Exit-tracking to be integrated with passenger/baggage match systems and to supplement advanced passenger information/passenger name record data transmissions

Challenges Appropriate level of biometrics to be implemented for exit control

Exit tracking for non-visa foreign nationals with adequate level of positive identity verification

Identity verification for API database entries for non-Perimeter Clearance

Boarding card differentiation (e.g. color) for Perimeter Clearance cardholders to trigger use of biometric prior to boarding

2 3

Marine or AirCheck-in

BoardingGate

Aircraft or MarineFlight

4

Destination

1CURRENT

TRANSIT VIA OTHERPERIMETER COUNTRY

3b

SECURITY


2 3

Marine or AirCheck-in

BoardingGate

Aircraft or MarineFlight

4

Destination

1

TRANSIT VIA OTHERPERIMETER COUNTRY

3bEXIT

CONTROL

SECURITY

Transmission of information to / from the INTEGRATED INFORMATION SYSTEM 23



Increase in Business travelersdue to assurance of improved security

Higher Throughput on Existing FacilitiesDeferred Capital Expansion CostsAirports & Ports

New transportation servicesAddition of 1% more traffic from improvedconnection times

Passenger Time SavingsTime Value of Money

Increase in Tourism & AccommodationExpendituresAddition of 1% more tourism expenditures.

$125 million / year

$35 million / year

$50 million / year

$1 Billion / year

$10 Million/ year

Timesavings

More efficientfacilities

(border /passengerterminal)

Transportation Carrier Market Development

(e.g. air services)

IncreasedTourism

Expenditures

Increasedtrade

in services

PASSENGER TRAVEL

24

Order of Magnitude Benefits from Order of Magnitude Benefits from Perimeter Clearance:Perimeter Clearance:




Summary of Enhanced Requirements Summary of Enhanced Requirements for Perimeter Clearancefor Perimeter Clearance



Perimeter Clearance Action PlanPerimeter Clearance Action PlanPerimeter Clearance Strategy to Realize a Smart Border for the 21st Century






Recent Key Developments - All Relevant To Perimeter ClearanceRecent Key Developments - All Relevant To Perimeter ClearancePerimeter Clearance Strategy to Realize a Smart Border for the 21st Century

We have an important partner on the northern border who has been very helpful --- and that is Canada. There are numerous examples where cooperative efforts with the Canadians have helped to protect the northern border.”

U.S. INS Commissioner Ziglar


“We are working with Canadaon biometric cards for permanent residentson a voluntary basis to monitor expedited

entry and exit at the Northern Border”

US Homeland Security Director Gov. Tom RidgeNBC Meet the Press Feb 3, 2002


The United States and Canadian tradition of cooperation and coordination has been long-standing, and is critical to the security of the northern border. The tradition was further promoted with the …Our Shared Border Accord. Along with commercial goods, the Accord addresses common security issues.”

U.S. INS Commissioner ZiglarOctober, 2001 Testimony before

Congresson Northern Border Issues





Gerry Bruno - Vancouver

Paul Ouimet - Vancouver

Solomon Wong - Vancouver

Henry Ristic - Chicago

Roland Dorsay - Ottawa

(604) 717-1800

Allan Cocksedge - Ottawa

Roland Dorsay - Ottawa

(613) 782-2336

Perimeter Clearance CoalitionPerimeter Clearance Coalitionemail: [email protected]: [email protected]

web site www.perimeterclearance.orgweb site www.perimeterclearance.org

Mo Garfinkle - Washington, DC

Elliott Seiden - Washington, DC

J.D. Phillips

New York

(716) 754-8824



33

C A N A D I A N A I R P O R T S C O U N C I LC A N A D I A N A I R P O R T S C O U N C I L

C A N A D I A N A I R P O R T S C O U N C I LC A N A D I A N A I R P O R T S C O U N C I LWASHINGTON AIRPORTS

TASK FORCEVANCOUVER PORT AUTHORITY

CITY OFBLAINE,

WA

CITY OFWHITE ROCK,

BC

TOURISM VANCOUVERTOURISM VANCOUVER

Perimeter Clearance CoalitionPerimeter Clearance CoalitionMembersMembers

CASCADE GATEWAY BORDER SECURITY COALITION

Greater

Vancouver

Regional

DistrictA WORKING PARTNERSHIP OF

21 MUNICIPALITIES AND 1ELECTORAL AREA

Documents

© 2002 Perimeter Clearance Coalition April, 2002 Expediting Bilateral Trade & Travel Securing Our External Borders Perimeter Clearance Strategy TO REALIZE