Reduction of Cross-Border Transportation Delays - Advance Electronic Cargo Information for Truck Carriers

In the wake of the September 11th terrorist attacks, the movement of products from Canada and Mexico into the U.S. has become increasingly cumbersome and often subject to long delays.  According to the U.S. Department of Transportation statistics, goods transported by truck account for approximately 80% of the goods transported between Mexico and the U.S. and approximately 75% of the goods transported between Canada and the U.S.  A recent study by the Montreal-based Institute for Research on Public Policy concluded that border delays between the U.S. and Canada increase transportation costs by as much as 10–15%.  That study singled out customs clearance procedures as the major contributor to border congestion.  In order to reduce that burden on cross-border shipments, the U.S. Bureau of Customs and Border Protection (CBP) has implemented two initiatives to enhance security and to expedite customs clearance at the border.  

The FAST Program
CBP has instituted the Free and Secure Trade (FAST) program as a bilateral initiative with each of the Canada Border Services Agency and Mexican customs authorities to harmonize their respective commercial processes for the clearance of commercial shipments at the border.  The intent of the FAST program is to reduce the information requirements for customs compliance, to eliminate the need for importers to transmit data for each transaction, to reduce the rate of border examinations and to verify trade compliance away from the border.  The program is limited to those carrier and importers enrolled in the Customs Trade Partnership Against Terrorism (C-TPAT).  Dedicated lanes for the clearance of FAST trans-border shipments are being established on both borders.  Already, there are dedicated FAST lanes in operation at eleven ports of entry on the Northern border and at seven ports of entry on the Southern border. 

On the Northern border, the FAST program is offered to C-TPAT-approved importers whose goods are transported by C-TPAT-approved carriers and drivers possess a valid FAST-Commercial Driver Card.  On the Southern border, the requirements to qualify for the FAST program are slightly broader.  In order to qualify for the FAST program, the shipment must be carried by a C-TPAT-approved carrier, whose driver posses a valid FAST-Commercial Driver Card, carrying qualifying goods from a C-TPAT-approved manufacturer for a FAST registered importer.

Electronic Presentation of Cargo Information
The Trade Act of 2002 provides for the mandatory collection of electronic cargo information  before cargo is brought into or departs the U.S. by any mode of transportation.  Commencing on November 15, 2004, CBP will be implementing at 99 designated ports of entry a requirement that truck carriers must provide to CBP advance electronic transmission of required cargo manifest information for inbound cargo.  Until the Automated Commercial Environment Truck Manifest becomes fully operational, CBP has approved two interim EDI systems to transmit the required truck cargo information to CBP:  the Pre-Arrival Processing System (PAPS) and QP/WP, which is an Automated Broker Interface in-bond processing system that is used to process in-bond shipments.  CBP must receive those electronic transmissions through the approved EDI system not less than one-hour prior to the carrier’s arrival at the first port of arrival in the U.S. or not later than 30-minutes prior to such arrival with respect to shipments qualified for clearance under the FAST Program.

With only limited exceptions, such as domestic cargo arriving at one port from another in the U.S. after transiting Canada or Mexico, all commercial cargo is subject to advance cargo information requirements.  However, as a temporary accommodation, CBP has also created two additional exceptions from compliance for inbound truck cargo that is currently approved for processing under the Customs Automated Forms Entry System or the Border Release Advanced Screening and Selectivity programs.       

The program is being implemented in three stages:  First Stage - forty ports of entry on November 15, 2004; Second Stage – forty-three ports of entry on December 15, 2004, and Third Stage – sixteen ports of entry on January 14, 2005.  A listing of those ports of entry and their applicable implementation date are set forth in the Federal Register (69 Fed. Reg. 51,008 (August 17, 2004)).

Posted by: H. Powell Starks

Categories: International Communiqués