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Single Window Initiative

Canadian Society of Customs Brokers (CSCB) Annual Conference

Quebec City, Quebec

Date: October 2, 2012

CBSA: Lori Gartner

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Topics

• Beyond the Border • Defining Success• Opportunities• Canada/US Joint Deliverables

– Data Alignment– Import Data Elements

• CBSA Development– Integrated Import Declaration– Business Process Modernization– Commodity ID

• Trade Consultations• Next Steps

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Beyond the Border Action Plan

• The Single Window Initiative (SWI) was identified as one of the 32 commitments with the United States (US) under the Beyond the Border Action Plan (BTB AP).

• The Plan establishes long-term partnerships to support trade and commerce between Canada and the US while strengthening security and regulatory cooperation.

• The SWI is an economic facilitation component of the Plan, which provides Trade with a single window through which they can electronically submit information to comply with Government of Canada import requirements.

• Canada and the US will build their own Single Window, although the goal will be to harmonize data, where possible.

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Defining Success

A more integrated border process whereby:

• Canada and the US achieve an increased measure of data harmonization for imports into both countries.

• Traders are provided with a single window in each country through which they can electronically submit all information to comply with Customs and other government import regulations.

• Departments and Agencies will have the required electronic data to support admissibility recommendations by their respective programs.

• Data requirements are converted to electronic form using Customs import data collection mechanisms, minimizing the requirement for paper forms in the import process.

• Improved trade facilitation and increased efficiency are achieved through the use of electronic data interchange.

• There is an increase in the number of departments and agencies conducting business electronically at the border.

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Opportunities

• Perform a review of regulatory requirements with emphasis on modernizing how and when regulatory requirements are applied;

• Centralize import data collection and share the data with regulating bodies;

• Building on the Regulatory Cooperation Council (RCC) Action Plan, align regulatory requirements between Canada and the US to establish a balanced approach;

• Involve trade in the design in order to capitalize on current trade practices and business solutions; and

• Modernize business processes for the importation of regulated goods.

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Canada/US Joint Deliverables

• Data Alignment– Canadian and US Participating Government Agencies (PGA) have

reviewed the data requirements;– The Canada Border Services Agency (CBSA) and US Customs and

Border Protection (CBP) have finalized a consolidated data alignment exercise; and

– Both countries have used the World Customs Organization (WCO) Data Model as their foundation.

• On the following slides a summary of the findings is described.

• Joint Trade Outreach– The CBSA and US CBP are jointly engaging the trade community to

discuss SWI objectives, deliverables and activities.

• Joint Commodity Identification (ID) Strategy– A Joint Product ID Strategy will be developed in consultation with Trade.

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Data Alignment

The CBSA and US CBP used the WCO Data Model version 3 as the foundation to work with PGAs to establish the minimum amount of data required by regulating programs.

The differences are related to country-specific regulations governing commodities/products (e.g.: US collects Ultimate Consignee from the Carrier, while Canada collects End-User from the Importer for PGA requirements).

Approx 92% of US/CANADA SWI data aligned.

8% of data does not align.

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Import Data Elements

• Data elements include the CBSA Release and PGA Admissibility/ Release requirements.

• There is no new information required beyond that which is required today; ongoing analysis will lead to a further reduction.

• The majority of PGA requirements are commodity-related (e.g. commodity lot number, commodity physical state, etc.).

• New fields have been included to capture authorization information where still required (e.g. permit number, license number, etc.).

• Fields to capture commodity identification enhancements.

• The Data Element List was provided in May at the BCCC OGD Sub Committee.

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CBSA and the Single Window Initiative

The CBSA is working with the PGAs to:

• Develop an Integrated Import Declaration for all goods.

• Develop opportunities to improve border processes by:

– Eliminating paper processes and converting to electronic processes.

– Improving technology and reengineering border related processes.

– Improving the quality of the data by using Commodity/Product Identifiers, where possible.

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Integrated Import Declaration

The Integrated Import Declaration (IID) is an Electronic Data Interchange message designed to meet the regulatory requirements for the importation of commercial goods that will:

• Enhance the existing Pre-Arrival Review System (PARS) to include all PGA commercial import data requirements required for release;

• Include only data that is essential for PGAs (including the CBSA) to make border-related decisions;

• Act as the foundation for the modernization of government business processes;

• Eliminate requirement for presentation of paper documents at the border and for redundant regulatory processing; and

• Enable Trade to use commodity identification methods that exist within their supply chains.

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Business Process Modernization

Better quality, more accurate and more timely information collected through the IID will:

• Remove the need to apply for certain import permits;• Eliminate manual and paper-based processes required for

border compliance; • Convert border processes to electronic format;• Allow PGAs to more accurately and efficiently identify their

regulated shipments; and,• Move compliance verification activities to an appropriate point

in the import process (e.g. post-border), allowing for expedited border processes.

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Options for Business Processes

Some options include:

• Using the IID for the pre-arrival collection of import permit information (i.e. eliminating a separate permitting process);

• Verifying the use of pre-approved authorizations for permits and licences (i.e. validating a permit / license / certificate number using the IID);

• Pre-arrival admissibility recommendations;– as Canadian Food Inspection Agency (CFIA) does today

• Post-border review of IID information for compliance.

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Enhancing Today’s Pre-Arrival Review System

• By enhancing the existing CBSA PARS to include the additional PGA required data elements, business process improvements to meet regulatory requirements for the importation of goods into Canada will be realized.

• Much of the information currently collected in the CBSA Pre-Arrival Review System (PARS) is also collected by PGAs through paper-based processes.

• Data elements collected today that are also required by PGAs include, for example:

ImporterExporterVendor/BuyerCarrier

Delivery/Destination Name and AddressCountry of OriginWeight/VolumePort of Clearance/Expected Arrival Date/Time

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Anticipated PGA Process Improvements

PGA Program IID Would Collect Import Process Improvements

CFIA – Fish Program

Commodity Identifier/Taxonomical Serial Number (TSN);

Process Description (Aquaculture/Farmed or Wild Captured); and Certification/Registration/Authorization Number.

Verifying the use of a pre-approved authorization for Certification/Registration/Authorization; and

Elimination of separate paper process (Fish Import Notification).

Health Canada (HC) – Health Products and Food Branch (Medical Devices)

Device Classification Commodity ID/Medical Device Identifier/UPC; and

Licence Number.

Verifying the use of a pre-approved authorization for Registered Establishment Licence and Market Authorization.

HC - Pest Management Regulatory Agency

Constituent Element/Percentage of Constituent Element;

Intended Use Code (Manufacture, Resale, Research, Import for Use); and

Authorized Product Registration Number.

Verifying the use of a pre-approved authorization for Product Registration

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Commodity Identification Strategy

• There is a requirement by PGAs to receive better information specific to identifying a commodity/product beyond the Harmonized System code e.g. TSN, Chemical Abstract Number

• Better commodity/product identification reduces the amount of information collected via the import process e.g. use of one code may replace five or more commodity descriptors.

• International standards of identifying commodities support increased harmonization.

• Industry is integral in defining the right commodity/product identifiers:– Intend to use those that already form part of the trade chain

processes (e.g. Global Trade Item Number, Price Look Up, United Nations Dangerous Goods Code).

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Trade Consultations

• The CBSA considers the involvement of the trade community in the design of the SWI and the IID process to be critical to its success.

• CBSA will begin consultations in the coming months with different trade groups.

• These discussions will include input on: – Data Requirements for SWI and Commodity/Product

Identification codes– Border Process improvement for imported goods

regulated by PGAs.

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Next Steps

• The CBSA will conduct trade consultations in the coming months in both countries with US CBP.

• The CBSA along with PGAs will develop strategies for improved information and integration at the border.

• The CBSA and US CBP will communicate the progress of the initiative through established forums and trade organizations.

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SWI Contacts

Lori Gartner CBSA Manager SWI Trade Consultations email: Lori.Gartner@cbsa-asfc.gc.ca

Marnie McKinstry CBSA Manager SWI Business Design and Development email: Marnie.McKinstry@cbsa-asfc.gc.ca

Single Window Generic Mailbox:

SWI-IGU@cbsa-asfc.gc.ca