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Vol. 141, No. 31 — August 4, 2007 Regulations Amending the Reporting of Imported Goods RegulationsStatutory authority Customs Act Sponsoring agency Canada Border Services Agency REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Notice The Advance Commercial Information (ACI) initiative is a component of the 2000 Customs Action Plan. The initiative was implemented in phases, starting with Phase I in 2004, with marine offshore shipments, followed by Phase II in 2006, with marine shipments loaded in the United States and air shipments. The objective of these regulatory amendments is to complete the implementation of these initial two phases. The ACI initiative is part of the Government's Smart Regulations Initiative because its standards are compatible with those of the United States Customs and Border Protection Bureau, it removes certain barriers to cross-border trade, it changes our way of managing risks, it assures a better focus of resources on high-risk goods and it reduces the costs for businesses and the Government. This approach enhances our ability to detect contraband and identify threats to health, safety and security. Description Several regulations made pursuant to the Customs Act need to be amended to continue implementing Phases I and II of the ACI initiative. Presentation of Persons (2003) Regulations 1. The definition of "commercial goods" is added to section 1 of the Regulations. This definition is required for the application of section 14.1 of the Regulations. 2. The French version of paragraph 11(a) is amended to reflect the English version. "Aéronef commercial" replaces "aéronef d'affaires." 3. The text of paragraph 11(c) is amended in order that it be consistent with the other paragraphs in section 11. 4. The Regulations are amended by adding section 14.1. This section specifies that, in certain cases, an authorization to present oneself in an alternative manner is only valid if, on arrival in Canada, the person has no commercial goods in his or her actual possession or in his or her baggage and, in other cases, if no commercial goods are on board the conveyance that the person uses to arrive in Canada. Reporting of Imported Goods Regulations 1. The definition of "vessel" is amended by the repeal of paragraph 2(c) of the Regulations, and section 13.71 is added. These amendments are necessary in order to allow the notices and information required in sections 13.2 and 13.5 to be provided separately for each vessel. 2. The definition of "cargo container" in section 2 is amended to be aligned with international definitions. The minimum internal capacity of containers subject to the Regulations is reduced to one cubic metre. The nature and use of containers are defined and ancillary equipment and demountable bodies are now included as being part of the container. 3. A definition of "CSA importer" in section 2 is added. The definition has the same meaning as in the Accounting for Imported Goods and Payment of Duties Regulations. 4. The Regulations are amended by adding section 13.91 in order to exclude goods under the Customs Self Assessment (CSA) program from the ACI requirements found in sections 13.2 to 13.7 and 13.87 to 13.9 of the Regulations. 5. The Regulations are amended to clarify three headings: • The heading preceding section 12.1 is replaced by "ADVANCE NOTICE OF ARRIVAL — VARIOUS MODES"; • The heading preceding section 13.2 is replaced by "ADVANCE NOTICE OF ARRIVAL — MARINE MODE"; and • The heading preceding section 13.87 is replaced by "ADVANCE NOTICE OF ARRIVAL — AIR MODE". Transportation of Goods Regulations 1. Subsection 7(2) is amended by adding to the list of documents to retain, as part of the CSA, any instructions specified in paragraph 13.91(c) of the Reporting of Imported Goods Regulations. 2. Subsection 7(3) of the Regulations is amended to include the records that are to be kept as part of the ACI initiative. Subsection 7(3) sets out requirement to retain records, or copies of them, of the data that has been sent pursuant to sections 13.2 to 13.7 and 13.87 to 13.9 of the Reporting of Imported Goods Regulations, any acknowledgment message received by the Canada Border Services Agency (CBSA) and exemptions issued by the Minister under section 13.8 of the Reporting of Imported Goods Regulations. 3. Subsection 7(4) of the Regulations is amended to include a requirement to keep the records used to create the records referred to in subsection 7(1) to 7(3). 4. Subsection 7(5) is added to the Regulations to specify the period of time that the records mentioned in subsections 7(1) to 7(4) must be kept. Designated Provisions (Customs) Regulations Technical regulatory amendments are made to the Designated Provisions (Customs) Regulations. Sections 10 to 13 in Part 2 of Schedule 2 (designating sections 13 to 16 of the Customs Bonded Warehouses Regulations) are amended to reflect the amendments to the designated provisions made in 2003 further to the implementation of the Excise Act, 2001 (SOR/2003-241). Alternatives The ACI initiative uses more effective risk management processes and tools to identify threats to our health, safety and security before the arrival of freight and conveyances in Canada. Regulatory amendments are the best way to achieve this result because they carry on the implementation of Phases I and II of the ACI initiative. Benefits and costs The goal of the ACI is to identify shipments with high or unknown risk prior to arrival in Canada. The continuation of the ACI initiative will allow the CBSA to better target high-risk shipments, to better manage the increasing amount of trade with other countries and to improve processing within advanced timeframes. Treasury Board has provided funding for the implementation of the ACI initiative and for the development of the electronic systems required to administer the ACI. The proposed regulatory amendments will not involve any additional cost to industry or to the Government of Canada. Consultation Extensive consultations with stakeholders were held throughout the design and development of the various phases of the ACI initiative. The objective of these amendments is to continue the initiative, and consultations were held on the following topics. Presentation of Persons (2003) Regulations There were no public consultations on these regulatory amendments in light of the fact that these clarify the application of certain CBSA programs already in place. Extensive interdepartmental consultations were held to ensure compliance with the program components, including NEXUS, CSA and Free and Secure Trade (FAST). Reporting of Imported Goods Regulations 1. Definition of "vessel" Internal consultations were held to confirm that changing the definition would have a negligible effect on other governmental programs. No public consultations were held because these standards are already recognized by the industry. A letter to this effect was sent to the relevant maritime associations, and no objections were raised. 2. Definition of "cargo container" Consultations were held with the air and marine industries to determine the sizes and capacities of containers currently used by carriers. Internal government consultations were also held. Empty cargo containers need to be reported in the marine mode but not in the air mode. Further consultations will be held should CBSA determine that empty cargo containers need to be reported in the air mode. 3. Section 13.91 No public consultations were held with the industry because the design of the CSA Program necessitates that CSA goods be excluded from the ACI initiative. Internal consultations were held, primarily with CSA officials. Industry is aware that CSA goods are excluded from ACI requirements. 4. Definition of "CSA importer" and headings No consultations were held on these topics because these amendments are being made for the purpose of clarity and conformity. Transportation of Goods Regulations The obligation to retain records on transported goods is already in existence in the Transportation of Goods Regulations. As a result, no consultations were held as ACI data, exemptions and messages were simply added to section 7. External stakeholders raised questions regarding the time period to retain the information (three years plus current year), and no objections were raised. Designated Provisions (Customs) Regulations The Canada Customs and Revenue Agency (CCRA) held extensive consultations with the stakeholders affected by the Excise Act, 2001. No consultations were held on the Regulations Amending the Designated Provisions (Customs) Regulations because these amendments stem directly from the adoption of the Excise Act, 2001. The CBSA will continue its consultations with the industry and will work with all the parties involved to ensure the smooth implementation of the other phases of the ACI initiative. Compliance and enforcement The ACI initiative is monitored, and shipments can be randomly examined to ensure that they comply with the legislation. Shipments and means of transportation will be inspected based on the risk factor identified by the Canadian Automated Targeting System. By concentrating its resources on high or unknown risk sectors, the ACI initiative will improve the effectiveness of enforcement efforts in the commercial sector. The owner or person responsible for a means of conveyance who does not meet requirements will be sanctioned. Fines will be imposed under the Administrative Monetary Penalty System (AMPS) based on the provisions of the Designated Provisions (Customs) Regulations. The proposed regulatory amendments do not include any new sanctions for the ACI initiative because the regulatory amendments will serve to support an initiative already in place.
Émilie Bélanger-Simard
Notice is hereby given that the Governor in Council, pursuant to subsection 12(2) and section 164 (see footnote a) of the Customs Act (see footnote b), proposes to make the annexed Regulations Amending the Reporting of Imported Goods Regulations. Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to the Director, Legislative Affairs, Canada Border Services Agency, 16th Floor, Sir Richard Scott Building, 191 Laurier Avenue West, Ottawa, Ontario K1A 0L8 (tel.: 613-952-5314; fax: 613-941-2999). Ottawa, July 30, 2007
MARY O'NEILL
REGULATIONS AMENDING THE REPORTING OF IMPORTED GOODS REGULATIONS AMENDMENTS 1. (1) The definition "cargo container" in section 2 of the Reporting of Imported Goods Regulations (see footnote 1) is replaced by the following: "cargo container" means a container that (a) is fully or partially enclosed to constitute a receptacle intended for containing goods, (b) is of a permanent character and is suitable for repeated use, (c) is designed to carry goods, by one or more modes of transport, without intermediate reloading, and (d) has an internal volume of one or more cubic metres, and includes the ancillary equipment of the container — provided that the ancillary equipment is carried with the container — and demountable bodies; (conteneur) (2) The definition "vessel" in section 2 of the Regulations is amended by adding the word "and" at the end of paragraph (a), by striking out the word "and" at the end of paragraph (b) and by repealing paragraph (c). (3) Section 2 of the Regulations is amended by adding the following in alphabetical order: "CSA importer" has the same meaning as in section 2 of the Accounting for Imported Goods and Payment of Duties Regulations; (importateur PAD) 2. The heading before section 12.1 of the Regulations is replaced by the following: ADVANCE NOTICE OF ARRIVAL – VARIOUS MODES 3. The heading before section 13.2 of the Regulations is replaced by the following: ADVANCE NOTICE OF ARRIVAL – MARINE MODE 4. The Regulations are amended by adding the following after section 13.7: 13.71 If goods are transported on board vessels that are attached to one another, the owner or person in charge of the vessels shall give the advance notice and information under sections 13.2 and 13.5 separately for each vessel. 5. The heading before section 13.87 of the Regulations is replaced by the following: ADVANCE NOTICE OF ARRIVAL – AIR MODE 6. The Regulations are amended by adding the following after section 13.9: EXCEPTION FOR MARINE AND AIR MODES 13.91 Sections 13.2 to 13.7 and 13.87 to 13.9 do not apply in respect of commercial goods that have been shipped directly from the United States, or commercial goods that have been shipped directly from Mexico to an importer who is a vehicle manufacturer within the automotive industry, if (a) the importer of the goods is a CSA importer; (b) the carrier hired to transport the goods is a CSA carrier; (c) the importer of the goods has given written instructions to the carrier to submit a request to the Agency that the goods be released under paragraph 32(2)(b) of the Act; and (d) there is no requirement under any Act of Parliament or of the legislature of a province or any regulation made under such Act that a permit, licence or other similar document be provided to the Agency before the goods are released. COMING INTO FORCE 7. These Regulations come into force on the day on which they are registered. [31-1-o] S.C. 2002, c. 22, s. 422(1) R.S., c. 1 (2nd Supp.) SOR/86-873
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