Trade Regulations

With the proliferation of trade between the United States and Canada, it has become increasingly necessary to ensure the safety and security of both borders. Find out more about U.S. and Canadian customs regulations that target high risk freight from Canada and the United States while maintaining the free flow of low risk goods.

Scroll to learn more about trade regulations or select a topic from the menu below:

• A History of Border Cooperation
• Advance Commercial Information (ACI)
• Administrative Monetary Penalty System (AMPS)
• Partners in Protection (PIP)
• Free and Secure Trade (FAST)
• Customs Self Assessment (CSA)
• Indirect Air Carrier (IAC)
• Sources:
• Pre-Arrival Processing System (PAPS)
• Pre-Arrival Screening (PARS)

Pre-Arrival Screening (PARS)

 
For companies sending goods to Canada, the program is known as Pre-Arrival Screening (PARS), the program is intended to allow customs inspectors to have adequate time to evaluate incoming shipments for possible risk or security concerns. Under the condition of the program, a unique bar code is affixed to the invoice of every shipment headed for the border, and is transmitted electronically to either the Canadian Border Patrol or to the U.S. Customs and Border Patrol.  Customs agents will evaluate the documentation, and a recommendation is then made to either release the shipment for clearance, or to hold it for inspection.  When the shipment arrives at the border, the driver will present the original paperwork, which will be scanned to determine whether or not it has been cleared for shipment.
 
*As of July 2007, the CBSA requires that all PARS documentation must be submitted electronically.  No hard copy paperwork will be accepted.  This is in preparation for Phase III of the Advanced Commercial Information (ACI) initiative, which will require that all ground shipments destined for Canada have advance documentation sent electronically prior to its arrival at the border.  This e-Manifest provision will be phased in over the next several years, with full compliance expected by 2012.
 
 

Partners in Protection (PIP)

CBSA's Partners in Protection (PIP) program is designed to improve border security while maintaining the free flow of low risk goods. Participants in PIP work jointly with CBSA in its efforts to strengthen border security and compliance with Canadian border customs while reducing the threats of terrorism, theft and smuggling.

PIP mirrors the Customs-Trade Partnership Against Terrorism (C-TPAT) program implemented by CBP in the United States. As with C-TPAT, participants in PIP agree to conduct a thorough self-assessment of their security systems and processes. CBSA then reviews the assessment and works with the participant to address any deficiencies. Benefits of the PIP program are the faster processing of goods and eligibility for the Free and Secure Trade (FAST) program.

Indirect Air Carrier (IAC)

The Transportation Security Administration's (TSA) standard security program for Indirect Air Carriers (IAC) requires the adoption of strict security measures by organizations that utilize the services of passenger air carriers for the transportation of freight.

IAC certified carriers must demonstrate compliance with strict security regulations throughout the air cargo supply chain. In addition to the benefits of strict security protocols, IAC approved organization may negotiate directly with, and tender airfreight directly to, commercial carriers.

A History of Border Cooperation

Over $1 billion in trade passes between the U.S. and Canada each day. With so much at stake, a secure and efficient border is paramount. With the goal of secure borders and regulated customs, Canada and the United states signed the Canada-U.S. Smart Border Declaration in 2001 to demonstrate a shared commitment to improving security and adherence to Canadian customs regulations while facilitating the free flow of commerce across the border.

Since then, the Canada Border Services Agency (CBSA), U.S. Customs and Border Protection (CBP) and the U.S. Transportation Security Administration (TSA) have implemented several programs to identify high-risk goods while expediting the release of low-risk goods typically carried by a U.S. or Canada LTL trucking company.

Advance Commercial Information (ACI)

Advance Commercial Information (ACI) is an electronic pre-notification and risk assessment program of the Canada Border Services Agency (CBSA). The program allows CBSA to target high-risk inbound Canada freight and small package shipments for further examination, while at the same time allowing legitimate, low-risk shipments to clear customs more quickly.

ACI is being introduced in phases. Phase 1 of the program focused on the electronic transmittal of marine cargo data 24 hours in advance of loading in a foreign port. Compliance with ACI Phase 2 became mandatory on June 26, 2006. Air carriers , such as U.S. to Canada freight forwarders are now required to transmit air cargo and conveyance data to CBSA at least four hours prior to arrival in Canada, or by the time of take off for flights of less than four hours.

These advanced reporting requirements enable CBSA to track all shipping from US to Canada and complete the risk assessment process in time for a shipment's arrival. Future phases of ACI will impact carriers of all highway and rail shipments.

Download our ACI Fact Sheet to learn the answers to the most frequently asked questions about ACI.

Administrative Monetary Penalty System (AMPS)

The Administrative Monetary Penalty System (AMPS) was introduced in 2002 and authorizes the CBSA to impose penalties for non-compliance with existing Canadian border customs regulations. AMPS is designed to encourage compliance with the Customs Action Plan while penalizing contraventions of the Customs Act and Customs Tariff.

AMPS is also intended to level the playing field for Canadian businesses by making traders responsible for the accuracy of their import and export declarations. The system is corrective in nature with graduated penalties determined by infraction type, severity and frequency. Penalties may range from a small amount to a maximum of $25,000 per infraction with compliance records impacting eligibility for expedited release.

Free and Secure Trade (FAST)

A joint program of the CBSA and CBP, Free and Secure Trade (FAST) expedites Canadian border customs clearance and reduces border delays for pre-approved goods moving across both sides of the border. FAST strives to maintain the free-flow of legitimate trade while enhancing the safety and security of both Americans and Canadians.

FAST participants qualify for expedited handling at the border. Special FAST lanes are available for any approved full load or LTL trucking company to Canada at major border crossings - providing an effective means for dealing with potential bottlenecks.

FAST participants entering Canada must meet the requirements of the CSA and PIP programs. For entry into the United States, carriers, importers and drivers must all be FAST approved.

Customs Self Assessment (CSA)

In 2001 the CBSA launched Customs Self Assessment (CSA), a comprehensive program based on risk management and partnership with approved importers and carriers. Canada further allows CSA approved importers to use their own business systems to declare shipments.

Under CSA, the import process of shipping to Canada is optimized from an accounting and payment perspective, and Canadian customs clearance is streamlined for those utilizing approved carriers and drivers. Substantial cost savings may result from the efficiencies gained under this model.

In order to participate in this program, U.S. and organizations must undergo a rigorous, multi-phased application process that includes a risk assessment, an audit of books and records, and an evaluation of their internal business systems. All CSA transactions must be completed electronically so robust accounting and technology capabilities are required.

Sources:

Canada Border Services Agency (CBSA) Website, July 2006

U.S. Customs and Border Protection (CBP) Website, July 2006

U.S. Transportation Security Administration (TSA) Website, July 2006

Pre-Arrival Processing System (PAPS)

For companies importing goods into the U.S., the program is called the Pre-Arrival Processing System (PAPS), the program is intended to allow customs inspectors to have adequate time to evaluate incoming shipments for possible risk or security concerns. Under the condition of the program, a unique bar code is affixed to the invoice of every shipment headed for the border, and is transmitted electronically to either the Canadian Border Patrol or to the U.S. Customs and Border Patrol.  Customs agents will evaluate the documentation, and a recommendation is then made to either release the shipment for clearance, or to hold it for inspection.  When the shipment arrives at the border, the driver will present the original paperwork, which will be scanned to determine whether or not it has been cleared for shipment.

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