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Advance Commercial Information (ACI)eManifest & AMPS Update
ACI Background
• Advance Commercial Information (ACI) is a new way of doing business with Canada Border Services Agency (CBSA) and is mandatory.
• Soft enforcement ended on January 11th, 2016
• From January 11th, 2016 carriers arriving and not meeting all ACI or eManifestrequirements now receive a monetary penalty. As well non-compliant highway carriers are delayed at the border and must have an ACI or eManifest filed before being allowed to proceed
• Empty arrival, IIT’s and CSA continue to cause some confusion
• Pre-arrival requirements (advance commercial information) is based on Section 12.1 of the Customs Act and should be reviewed to ensure a full understanding of the carrier and driver’s responsibility
AMPS Background
• The Administrative Monetary Penalty System (AMPS) secures compliance with customs legislation through the application of monetary penalties, and may apply to multiple parties within the supply chain
• Regulations currently do not allow CBSA to reduce the penalty amount issued, only correct or cancel
• CBSA’s definition of “mitigation” and the U.S. penalty system is much different
• AMPS against ACI ensures that electronic pre-arrival conveyance and cargo data is sent so that risk assessment prior to arrival in Canada can occur
ACI Mandatory Requirements
• All commercial carriers whether empty or loaded are required to report electronically a minimum of one hour before the shipment arrives at the border unless an exception- such as CSA shipments presented to CBSA by those carriers who are CSA approved and meeting the CSA release type conditions
• Reporting 1 hour prior to arrival means having both conveyance and cargo data on file with CBSA before the physical trucks arrival
• Carriers are encouraged to submit if empty but currently carriers who are empty (no goods on the truck) and not having submitted ACI are being allowed to proceed without risk of penalty action and this remains the same today
• Carriers who may travelling in-transit through Canada are also being allowed an interim exemption and this remains the same today
• Every commercial carrier for hire must have their own carrier code in order to submit data! Every driver arriving in a commercial truck needs to be prepared to meet the ACI requirements and must have an ACI Coversheet to equivalent document to support the ACI has in fact been completed
What’s changing?
• Effective November 1st, 2016 CBSA has announced
- carriers who have never received a penalty will receive a penalty at level 1 (sameas the hundreds of carriers who have received penalty action as of today)
- Carriers who have received a penalty at level 1 will receive a penalty at level 2 forrepeated non-compliance – penalty amounts increase at level 2 (example from $2000.00 to $4,000.00)
Carriers are reminded they are required to transmit both cargo and conveyancedata electronically to CBSA prior to arrival. Failure to do so may result in penalties assessed on each non-compliance element
Action to be taken as of November 1st
• Carriers who receive penalty action at level 1 must maintain compliance for a period of not less than 12 months from the time the non-compliance was identified to remain at level 1
• As identified prior to today, penalty is issued against the carrier code/ and drivers who may create the non-compliance, even if no longer with the company impact the carrier’s history
• Carriers with multiple shipments on board may receive penalty action for multiple “cargo” data elements not on file (as of November 1st, 2016) if not reported properly and in compliance to the 1 hour prior to arrival rules - if you are a carrier who regularlycarry multiple shipments- your liability increases significantly
What else is changing?
• Effective December 1st, 2016 CBSA has announced
- Carriers who have never received a penalty will receive a penalty at level 1 (sameas the hundreds of carriers who have received penalty action as of today)
- Carriers who have received a penalty at level 1 will receive a penalty at level 2 forrepeated non-compliance – penalty ranges increase at level 2
- Carriers who have received a penalty at level 2 will receive a penalty at level 3 forcontinued non-compliance within the next 12 months
Level 3 penalty action for not submitting data in advance of arrival is $8,000 per incident and is issued based on CBSA’s risking factors
Administrative Monetary Penalty System
Master Penalty Document can be found on CBSA website
http://www.cbsa-asfc.gc.ca/trade-commerce/amps/mpd-dmi-eng.html
• Each new penalty is intended to apply to all submission requirements and all trade chain partners responsible for pre-arrival; including the provision that multiple penalties may be issued per shipment if multiple trade chain partners are in contravention of their respective requirements. Penalty is based on the following:
1. Failing to provide advance information
2. Failing to provide advance information in the prescribed time or in the prescribed manner
3. Failing to correct advance information
4. Failing to provide true/accurate/complete information
5. Failing to comply with an electronic customs Risk Assessment notice
Example of the # 1 penalty issued to date:
Penalty # C378 – it was determined that the receiver of the penalty failed to submit pre-arrival or pre-load data in advance of arrival
1st level - $2,000 2nd level- $4,000 (after November 1st and 1 other non-compliance scenario ) 3rd level - $8,000 (after December 1st, and a level 2 penalty already issued for non-compliance)
This may apply when conveyance data is missing (truck/trailer/driver – although driver data is still not reviewed at this time by CBSA) and per cargo data (shipment details). Release arrangements with a customs broker is separate and not included in a carrier pre-arrival advance commercial information requirement
Penalty Mitigation based on the current rules
CBSA’s most common reply to non-compliance is “Contravention 378 applieswhen the responsible party fails to provide pre-arrival or pre-load data. The prescribed specifications shall be sent in accordance with the timelines, technical requirements, specifications and procedures as set out in the Reporting of Imported Goods Regulations and the applicable Electronic Client Requirements Document.
The enforcement action taken against you was an Administrative Monetary Penalty in the amount of $2,000. In the event that the demand for payment has not been paid in full within 30 days after the date of service of the notice of enforcement action, interest accrues from the day after the date of service of the notice of the day the demand for payment is paid in full, should the penalty be upheld. Pursuant to subsection 130(2) of the Customs Act, you may within 30 days from the date of the mailing of this letter, provide the evidence requested and /or additional information which may result in your appeal being reconsidered.
Options after receiving AMPS
• Remit payment in Canadian or U.S. Dollars, payable to the Receiver General for Canada. All clients have an obligation under section 109.4 of the Customs Act to pay in full the penalty assessment served upon the. If payment in full is not received within 30 days from date of penalty, the amount is subject to interest.
• Request a Correction Review-
If you believe the penalty action taken was incorrect you may request a review within90 days from the date in writing or through on-line e-filing
http://www.cbsa-asfc.gc.ca/trade-commerce/amps/correction-eng.html
• Request a Redress-
Again within 90 days of penalty action request consideration as a result of a systematicproblem effecting your commercial information system or related processes and you areprepared to invest in corrective measures to remedy the problem
http://www.cbsa-asfc.gc.ca/recourse-recours/howto-commentfaire-2-eng.html
What can you do?• Ensure all personnel (drivers included) understand these new regulations
• Talk to your drivers!!!!!
• Update processes and your standard operating procedures that are now obsolete or not working! If you depend on someone else to fax paperwork, check it was received, check before going off shift to ensure that all eManifests are properly submitted. DO NOT ASSUME!
• If penalty action is received, analyze why the penalty was issued and what steps to change the circumstances can be made- 100% of penalty action is based on a human error
• Watch for postings on our front page! Watch for regular updates from CBSA or other industry/ association partners. Check the facts!!!! Not all information being provided by CBSA / other carriers or drivers is fact!
• Customs system does go down regularly and may not receive data- Check!
• Check, check and recheck before a truck arrives at the border!
Make your opinion heard!• On June 22nd, 2016 Debbie attended a meeting that was hosted by OTA and in each penalty
filed has tried to communicate the concerns of the carrier community
• Recently a meeting was held with a Member of Parliament in the Sarnia area
• A letter will be received by The Honorable Ralph Goodale, Minister of Public Safety
Parliamentary Office
House of CommonsOttawa, Ontario K1A 0A6
Mail may be sent postage-free.
• Continue to be vocal-contact your local transportation associations. The rules as they are right now are punitive not corrective and are causing hardship to the transportation industry
Upcoming Changes for Freight Forwarders • Manifest filings will be required by Freight Forwarders beginning November 7, 2016
• Effective January 11, 2017- July 11, 2017 freight forwarders deemed to be non-compliant with eManifest requirements may be issued zero-rated penalties
• Effective July 12, 2017 monetary penalties will be issued to freight forwarders for non-compliance
Effective November 7th, 2016 carriers may be held at the border for manifest issues applicable to all freight forwarders shipments
Carrier manifests must have a “consolidated flag” that is set to yes to let the CBSA know that the freight forwarder’s manifest accompanies the carrier’s manifest
If no “consolidated flag” is sent in the carrier’s manifest that manifest will be rejected
Q U E S T I O N Syou might have –
please submit them now!
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