Fact Sheet

March 2001

Amendments to the Customs Act

This increased activity has put the CCRA's dual customs mandate--to foster trade while protecting Canada's borders--to the test. If we are to continue to support the government's trade and tourism agenda, we must modernize and streamline these processes.

In fall 1998, Revenue Canada (the forerunner of the CCRA) issued its "Blueprint" discussion paper, in which it committed itself to:

• improving service;
• ensuring that businesses and travellers play by the rules;
• intensifying efforts to stop illegal activity and threats to health and safety; and
• promoting certainty and consistency for travellers and traders alike.

In April 2000, the CCRA presented "Investing in the Future: The Customs Action Plan 2000-2004." This plan presents a new vision for managing borders and administering trade, based on using self-assessment, advance information, and pre-approval to manage risks. The document proposes changes that would allow the CCRA to streamline legitimate trade and travel and to focus its efforts on high or unknown risks and on health and safety issues. This would help the CCRA protect Canadians better.

The Customs Bill proposes several amendments to the Customs Act that will allow the CCRA to implement the initiatives in the Customs Action Plan. These amendments are the first step in modernizing Canada's border program.

Several initiatives will benefit travellers, while others will benefit importers. Still others will promote transparency, better client service, and fairness in the spirit of the CCRA's Fairness Initiative, and will harmonize certain aspects of the Customs Act with other program legislation the CCRA administers.

The Customs Bill proposes the following initiatives:

Customs Self-Assessment (CSA), which will offer commercial importers a quicker and more dependable way to get their goods across the border. It will allow the CCRA to focus its resources on high- or unknown-risk shipments. The CCRA will quickly release low-risk goods at the border when low-risk importers identify themselves. It will rely on profiling, audit, and border spot checks to enforce the law. Importers will use their own books and records to account for imported goods to the CCRA, rather than completing forms solely for CCRA purposes.

Carrier re-engineering, which will provide more effective tools for managing risk. These will help the CCRA intercept contraband shipments or shipments that pose health or safety risks, while allowing it to clear legitimate, low-risk shipments quickly. Shippers will be required to electronically transmit pre-arrival data to the CCRA, allowing the CCRA to identify shipments of high or unknown risk.

The Administrative Monetary Penalty System (AMPS), which is designed to encourage businesses and travellers to comply with trade and border legislation. It will allow the CCRA to respond to non-compliance in a variety of ways, ranging from warnings to fines. This program will allow the CCRA to respond to non-compliance fairly and consistently, with penalties proportional to the compliance history of travellers, importers, and service providers.

The Expedited Passenger Processing System (EPPS), which will allow pre-approved travellers to clear customs and immigration at airports quickly. They will use automated kiosks to confirm their identity and their membership in the program.

The expansion of the CANPASS family of permit-based programs, which will help pre-approved, low-risk travellers cross the Canada-U.S. border more quickly. The CCRA has already run a highly successful pilot of the CANPASS-highway program, which allows permit holders to use dedicated lanes to cross the border without routine customs questioning.

The provision of a less formal administrative review and the extension of certain time limits, which will allow clients to appeal fines or other CCRA decisions in special situations--for example, in cases when a client cannot meet a deadline for reasons beyond his or her control.

A provision to allow "third parties" to seek redress through a simple review process before taking the problem to the courts.

A provision to allow advance rulings on the tariff classification of goods on a legislative basis, which will clarify situations for importers and give them expanded appeal rights. The CCRA currently provides such rulings on a purely administrative basis.

A provision to allow for the harmonization of collection mechanisms and restrictions for customs debts by introducing garnishment provisions and joint liabilities of partners.

A provision to allow for the disclosure, by commercial transportation companies, of prescribed information on drivers, crew members, and passengers in advance of their arrival in Canada, allowing customs officers to receive and use such information for streamlining the movement of people and goods into Canada.

A provision to allow for clarification on what information may be collected by customs officers, how it is to be used, under what circumstances, conditions, and for what purposes it can be disclosed.

A provision to allow for the harmonization of payment due dates and application of interest on SIMA duties (including refunds), with the payment, refund and interest provisions of the Customs Act.

The legislation also proposes other technical, administrative amendments to the Customs Act.

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