TRADE ACT OF 2002 (TRUCK): Impact on Border Crossings U.S./Canada Transportation Border Working Group Detroit, Michigan June 1, 2002

Overview Background Challenges to Implementation Current Data Interchanges Enforcement Challenges Current Enforcement Status Future Requirements Lessons Learned

Trade Act of 2002 Trade Act of 2002 - Section 343(a) as amended by Maritime Transportation Security Act of 2002 - Section 108 Required regulations for advanced electronic presentation of cargo information Regulatory Development based on Availability of technology Cargo safety security and prevention of smuggling Privacy of information Transition periods Required for all modes of Transportation

Trade Act of 2002 (Truck) New Regulations 19 CFR 123.92 Establishes time frames for transmission of data by truck carriers Provides for CBP approved Electronic Data Interchanges for transmitting data Allows importers and brokers to submit some or all of the data for carriers Establishes an effective date for implementation of the regulations

Implementation Challenges No Automated Manifest System for Trucks Multiple Methods Exist to Transmit Data to CBP Paper Based Release and Manifest Carriers Have Little or No Experience with Automation Customhouse Brokers Work for Importers and Not Carriers

Current Data Interchanges Pre Arrival Processing System (PAPS) Border Release Advanced Screening and Selectivity (BRASS) Automated Broker Interface (ABI) in-bond process known as QP/WP Customs Automated Forms Entry System (CAFES) Free and Secure Trade (FAST)

Challenges to Enforcement Non-automated carriers dependent on paper Diverse group of trade participants Business differences Cultural differences Education and experience differences Lack of knowledge regarding CBP regulations and US law Massive change to long standing practices Perceived lack of urgency despite short time frames

How Challenges Were Overcome Outreach, Outreach, Outreach Early and Often Locally and nationally based Trained and used coordinators for outreach Advance warning prior to each phase of implementation from multiple sources Phased-in approach Ports Identified by levels of automation and geography Elements phased over several months Information to Informed compliance to enforced compliance

Current Status of Enforcement Penalties for failure to provide advance information have been issued by interchange type and staged by implementation phase: PAPS - December 15, 2004 (final March 05) QP/CAFES - January 2, 2005 (final February 05) BRASS/FAST card - May 1, 2005 (entire country) As of May 16, 2005 all trucks failing to meet the requirements of the Trade Act (all interchanges) are being denied unlading and entry of vehicle and returned to country of export.

Current Status of Enforcement (cont) Some Numbers of Interest Penalties issued between 12/15/04 and 05/01/05 - 1350 Trucks denied entry since 05/16/05 - 400 Average daily truck crossings - 15000-20000 * BRASS/FAST card compliance - 99.2% Overall compliance - 99.7% * *Estimates based on FY 2004 CBP stats

Future Developments Current process is a temporary solution Future implementation will focus on carriers providing data “directly” to CBP (eManifest) Brokers, importers and others will be able to provide the information that they possess ACE is already deployed in Pacific NW Future deployments (short term) include SW border location, smaller northern border sites and a major port Goal is ACE at all land border ports with mandatory eManifest

Lessons Learned Never enough outreach Training for all participants is essential Systems must be flexible to adapt to local conditions

Discussion Jim Swanson (202) 344-2576 james.d.swanson@dhs.gov