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Customs Cooperation

• Smart Border Declaration
• Customs-related Action Items
• The Border Cooperation Process
• Canada Customs and Revenue Agency
• Facts & Figures

SMART BORDER DECLARATION

The Canada-US Smart Border Declaration that was signed in Ottawa on December 12, 2001 states that both countries will cooperate in identifying high risk goods while at the same time facilitating the flow of low risk goods. Both countries agreed to work toward establishing compatible commercial processes at the border and secure procedures to clear goods away from the border, including at rail yards and at marine ports. The Smart Border Declaration outlines plans to identify security threats arriving from abroad by developing common standards for screening cargo before it arrives in North America.

CUSTOMS-RELATED ACTION ITEMS

A 32-point Action Plan, announced in conjunction with the Smart Border Declaration, includes 5 action items which outline how these customs-related commitments will be implemented:

1) Harmonized Commercial Processing: Establish complementary systems for commercial processing, including audit-based programs and partnerships with industry to increase security. Explore the merits of a common program.

2) Clearance Away from the Border: Develop an integrated approach to improve security and facilitate trade through away-from-the-border processing for truck/rail cargo (and crews), including inland preclearance/post-clearance, international zones and pre-processing centers at the border, and maritime port intransit preclearance.

3) Joint Facilities: Establish criteria, under current legislation and regulations, for the creation of small, remote joint border facilities. Examine the legal and operational issues associated with the establishment of international zones and joint facilities, including armed protection or the arming of law enforcement officers in such zones and facilities.

4) Customs Data: Sign the Agreement on Sharing Data Related to Customs Fraud, exchange agreed upon customs data pursuant to NAFTA, and discuss what additional commercial and trade data should be shared for national security purposes.

5) Intransit Container Targeting at Seaports: Jointly target marine intransit containers arriving in Canada and the United States by exchanging information and analysts. Work in partnership with the industry to develop advance electronic commercial manifest data for marine containers arriving from overseas.

BORDER COOPERATION PROCESS

The Smart Border Declaration reflects long-standing Canada-U.S. cooperation on border issues. In 1995, Prime Minister Chrétien and then President Clinton, announced the Canada/United States Accord on Our Shared Border. The Accord commits both governments to:

• Promoting international trade;
• Facilitating the movement of people;
• Providing enhanced protection against drugs, smuggling, and the illegal and irregular movement of people; and
• Reducing costs to both governments and the public.

In April 1997, Prime Minister Chrétien and President Clinton announced a further set of initiatives to encourage the flow of people and goods across the Canada-U.S. border and to protect health and safety. These border negotiations have involved officials from the Canada Customs and Revenue Agency, the US Customs Service, Citizenship and Immigration Canada and the US Immigration and Naturalization Service, the US State Department and Canada’s Department of Foreign Affairs and International Trade. Examples of progress can be found in the Canada-United States Accord on Our Shared Border UPDATE 2000.

In October 1999, the Canada-U.S. Partnership Forum (CUSP) (link to Dec. 2000 report) was launched to promote high-level dialogue among governments, border communities and stakeholders on border management. Three guiding principles of border management were endorsed: streamline, harmonize and collaborate on border policies and management; expand co-operation to increase efficiencies in customs, immigration, law enforcement and environmental protection at and beyond the border; and collaborate on threats outside Canada and the United States.

CANADA CUSTOMS AND REVENUE AGENCY

The Canada Customs and Revenue Agency (CCRA) plays a leading role in streamlining the movement of low-risk, pre-approved goods. The Customs Action Plan 2000-2004 calls for a shift from transaction-based processing of goods to a risk-based system that will help the CCRA concentrate resources on goods of higher or unknown risk. An array of risk-management techniques will be used:

• electronic targeting, increased exchanges of information and intelligence with other law enforcement and customs agencies, analysis of compliance records and pre-arrival information, as well as pre-registration of drivers;
• greater use of technology such as ion scanners and X-ray equipment; and
• modernized cargo control for goods requiring more data before they arrive at the border.

Under the new Customs Self-Assessment (CSA) program, shipments entering Canada will be cleared immediately at the border, using as few as three data elements -- the driver, the carrier, and the importer -- unless they are asked to stop for a random check. These elements will be compared to the importer's profile, already established with the CCRA, to ensure the shipment is CSA-approved.