PAGE 1 CANADA BORDER SERVICES AGENCY April 2004

PAGE 2 Presentation Outline Introduction Strategic Agenda Conclusion What We Do Operational Challenges

PAGE 3 INTRODUCTION

PAGE 4 Canada Border Services Agency – Speech From the Throne 4 There is no role more fundamental than the protection of its citizens. 4 That is why the Government established the Department of Public Safety and Emergency Preparedness, appointed a National Security Advisor to the Prime Minister, established the Cabinet Committee on Security, Public Health and Emergencies, and the new Canada Border Services Agency.

PAGE 5 Canada Border Services Agency – Speech From the Throne 4 The Government will develop, with its domestic partners, Canada’s first national security policy which will serve as a blueprint for effectively securing Canada in a way that strengthens the open nature of our society. 4 Building on the successes of the Smart Border initiative, the Government will engage with the United States to further strengthen North American security while facilitating the flow of commerce and travellers.

PAGE 6 Department of Public Safety and Emergency Preparedness 4 The creation of the department of PSEP will enable a truly integrated response to all manner of emergencies and threats to our security, whether they be be health-related, natural disasters or from terrorists 4 It brings together, in one place, the core functions of:  National security and intelligence  Policing and enforcement  Corrections and crime prevention  Border services  Emergency preparedness

PAGE 7 Benefits of Integration and Consolidation 4 Restructuring of government is not a change in commitment; renewed focus simply means working smarter to protect public health and safety while enabling the efficient movement of goods and people across our borders 4 Inter-agency cooperation will help achieve the proper balance between facilitation and enforcement 4 Harmonizing procedures will reduce duplication; resulting increased efficiencies will benefit government, business and individual Canadians

PAGE 8 Benefits – Providing an Integrated Response Immigration Intelligence and Enforcement (CIC) Customs program (CCRA) Import inspection at ports of entry (CFIA) WILL INTEGRATE Minister for Public Safety and Emergency Preparedness Canada Correctional Service of Canada Canada Firearms Centre Canada Border Services Agency National Parole Board Canadian Security Intelligence Service Royal Canadian Mounted Police

PAGE 9 4 Ensure commercial goods, travellers and conveyances crossing the border comply with Canadian laws 4 Identify and interdict high risk individuals and goods 4 Work with law enforcement agencies to maintain border integrity and ensure national security 4 Support trade negotiations 4 Conduct compliance audit reviews 4 Carry out dumping and subsidy investigations 4 Act on behalf of other federal departments at the border Canada Border Services Agency – Key Customs Activities

PAGE 10 4 Identify and interdict high-risk individuals overseas before they arrive in Canada. In 2002, 68% of attempted illegal entries by air (over 6,000 persons) were stopped before they got to Canada 4 Immigration intelligence screens immigrants, refugees, and visitors entering or remaining in Canada. In 2003, over 23,000 background checks were conducted on visitor applications abroad, and on 1,200 immigrant applications 4 Investigate, arrest, detain and remove people who are in violation of Canada’s immigration laws, in particular, criminals and individuals who pose security threats Canada Border Services Agency – Key Immigration Activities

PAGE 11 4 Ensure food safety and plant and animal health by identifying and interdicting high risk regulated commodities at airports, land ports and seaports 4 Responsible for the enforcement of 13 federal acts and regulations 4 Tightening security and preparing for emergencies Canada Border Services Agency – Key CFIA Activities

PAGE 12 Two Sides of the Same Coin Facilitation and enforcement are not mutually exclusive, but essential and interdependent Uphold Canadian values of respect for privacy and human rights Maintain vigilance in securing our border points of entry and in addressing threats to public health and safety Two sides of the same coin EnforcementFacilitation

PAGE 13 VP Enforcement VP Admissibility VP Human Resources VP Innovation and Technology VP Strategy and Coordination VP Controllership VP Operations Legal Council Customs Border Services Agency – June 1, 2004 Minister of Public Safety and Emergency Preparedness The Honourable Anne McLellan President (Alain Jolicoeur) / Executive Vice-President (Denis Lefebvre) Program Corporate

PAGE 14 WHAT WE DO

PAGE 15 Canada Border Services Agency – Highlights CBSA consolidates key functions previously spread among CCRA, CIC, and CFIA 4 1,369 service points across Canada and 38 locations abroad 4 Serves 170,000 commercial importers (40,000 releases daily) and over 98 million travellers (300,000 travellers daily) each year 4 Two billion dollars in two-way trade crosses the Canada-U.S. border every single day 4 Kept $501 million worth of narcotics off the streets annually 4 Last year, 104 missing children were recovered 4 $60M in contraband detection technology 4 Year to date, there have been 1,279 currency seizures representing more than $36 million 4 Over 6,400 inadmissible persons intercepted overseas (2003) 4 8,609 removals from Canada (2003)

PAGE 16 Customs, Primary and Secondary Primary Immigration Secondary Immigration (CBP) Primary Agricultural / Food Requirements Inspection Border patrol (RCMP) Canada/ US IBETS Other Canadian Agencies Unique to CBP Unique to CBSA Legend Border patrol (CBP) Secondary Immigration (CIC) Canada / USA Border Inland Activities Customs post-release & verification Anti-Dumping Other DHS Bureau Customs post-release & verification Common to CBSA and CBP Appeals Customs & Immigration Intelligence, Customs Investigations and Immigration Enforcement Appeals USA Canada Other USA Agency Anti-Dumping Customs & Immigration Intelligence, Customs Investigations and Immigration Enforcement

PAGE 17 Port Operations Canada Border Services Agency – Functions Enforcement Trade Innovation Management International Intelligence

PAGE 18 WHAT WE DO Port Operations

PAGE 19 Port Operations Activities PORT OPERATIONS 4 Secure Canada’s borders against threats to the health, safety and security of Canadians, and to Canada’s environmental, trade and economic interests 4 Facilitate the entry into Canada of legitimate goods and travellers while ensuring that risks to security are identified and prevented 4 Prevent the illegal entry of high risk persons into Canada – our intervention at the border helps fight international terrorism, people smuggling, the trafficking of women and children, and illegal immigration 4 Play a vital role in protecting the food supply and public health, by ensuring that imported agricultural goods meet Canada’s quality standards

PAGE 20 Border Service Locations We operate in a real-time environment, providing service at air, sea, and land border points – 24 hours a day, 7 days a week at some of our busiest locations Airports 198 Land Border Offices Commercial Vessel Reporting Sites Alternate Service Sites 71 Inland Offices 62 Warehouses Small Vessel Marina Reporting Sites Other - 72 Other Rail Sites Ferry Terminals Airports which Process Cargo Cruise Ship Offices Locations serviced by an Acting Customs & Excise Enforcement Officer Postal Processing Plants Airports used for Military Clearances Casual Refund Centres There are 1,369 service locations across Canada including: Small Vessel Marina Reporting Sites Commercial Vessel Reporting Stations Airports Land Border Offices Warehouses Alternative Service Sites Inland Offices Immigration Service Points Immigration Service Points - 37

PAGE 21 Port Operations at a Glance – Annual Results Commercial releases per year Courier Shipments Import Duties Collected GST Collected Value of drugs kept off the street Commercial Importers Missing children recovered 11 million 24 million $3.3 billion $22 billion $501 million 170, TRAVELLER DISTRIBUTION BY MODE Highway 79% Air 18% Other – 3% TRAVELLER DISTRIBUTION BY STATUS Visitors 53% Returning Residents 47% VOLUMETRICS Travellers entering Canada 98 million Air Travellers Percentage processed within 20 minute wait time target 18 million 89 % Other Travellers 3 million Highways Travellers Percentage processed within wait time service standard (10 minutes Monday-Thursday, 20 minutes Friday-Sunday 77 million 93%

PAGE 22 DETECTOR DOG TEAMS Detector Dogs for CBSA 63 teams in total Detector dog and handler teams across Canada Pacific Prairie Greater Toronto Area Windsor / St. Clair, Fort Erie Northern Ontario Québec Atlantic Total Drugs, firearms, currency Plants & food Between January 2000 and December 2003 dog teams have uncovered over $670 million worth of drugs and firearms resulting in over 2,500 seizures

PAGE 23 WHAT WE DO Trade

PAGE 24 Verification Process CANADIAN BORDER Clients may dispute Customs decisions via redress VERIFICATION UPON ENTRY VERIFICATION AFTER RELEASE Compliance with health, safety, and security requirements must be checked as travellers and / or goods enter Canada Compliance with trade requirements can be verified later, based on importer’s records (e.g. tariff classification, rates of duty, valuation)

PAGE 25 Annual Trade Results – Fiscal Year 2002 / 2003 Value of imports $348 billion $3.3 billion Gross import duties collected GST collected $22 billion$2 billion Duties and taxes relieved Customs redress disputes (Adjudications and Trade) completed Over 8,000

PAGE 26 WHAT WE DO Enforcement

PAGE 27 Key Enforcement Programs Marine Program Airport Program Cross Border Currency Missing Children Recovered Stolen Property and Vehicles Firearms Program Hearings Detentions Removals Control of International Garbage Disposal Management of Detector Dogs Program Investigations Officer Powers ENFORCEMENT

PAGE 28 Detection Technologies Acquired or In Process of Being Acquired ENFORCEMENT Pallet VACIS Radiation Portal Detectors Radiation Carborne Detectors Chemical and Biological Agent Detectors COMET Tool Trucks Remote Operated Vehicles (ROV’s) Explosive Detection Ionscans Mobile X-Ray Vans for Airports Stationary Baggage X-ray systems Rollin X-ray Systems - New design to replace retired units

PAGE 29 INVESTIGATIONS Customs related investigations in 2002/03 Amount seized for Customs related infractions Food related investigations 2002/03 Interceptions of prohibited commodities Immigration investigations 1,960 $29.5 million ,200 29,731 Enforcement Programs – Annual Results DETENTIONS Persons detained annually for Immigration infractions Detention reviews conducted 11,509 11,282 REMOVAL OF INDIVIDUALS FROM CANADA Removal orders issued annually Escorted removals Removals from Canada in 2003 Criminals removed 44,373 1,471 8,609 1,496 HEARINGS Admissibility Hearings concluded Appeals concluded 2,561 4,171 PROSECUTIONS Number of prosecutions Number of offense convictions 86 93

PAGE 30 WHAT WE DO Intelligence

PAGE 31 4 Identifies people or goods posing a threat to the health and safety of Canadians so legitimate cross-border traffic can flow freely 4 A focal point for interoperability and information sharing with CBSA’s partners and for promoting intelligence-based enforcement 4 Involved in the planning, collection, analysis, and dissemination of intelligence regarding threats to CBSA programs 4 Composed of Migration Integrity Officers abroad, NHQ intelligence units, and regional intelligence units in Canada CBSA Intelligence Function INTELLIGENCE

PAGE 32 4 Strategic Intelligence 4 Tactical Intelligence 4 Intelligence Coordination 4 International Network – Pushing the Borders Out CBSA Intelligence Function INTELLIGENCE

PAGE 33 4 National Risk Assessment Centre (NRAC) 4 Interoperability 4 Counter Terrorism and Counter Proliferation 4 Emergency Preparedness CBSA Intelligence Function INTELLIGENCE

PAGE 34 CBSA Intelligence Function 4 Intelligence Partnerships – Domestic 4 Intelligence Partnerships – International INTELLIGENCE

PAGE 35 WHAT WE DO Innovation Management

PAGE 36 4 The border is dynamic, we must continuously change and adapt 4 Over the last 20 years, we have made a huge investment in reengineering how we do business 4 $770 million in funding for our change agenda, from We have developed a tremendous capacity to build new border programs and systems Constantly Evolving, at a Rapid Pace INNOVATION MANAGEMENT

PAGE 37 4 The Canada-U.S. Smart Border Declaration is a key driver in the CBSA’s change agenda 4 CBSA is responsible for 11 of the 32 Smart Border Action Plan initiatives An Ambitious Change Agenda INNOVATION MANAGEMENT

PAGE 38 Some of Our Major Projects 4 CBSA is responsible for 11 of the 32 Smart Border Action Plan Initiatives:  Alternate Inspection Services ( NEXUS)  Joint Passenger Analysis Units (JPAUs)  Marine Benchmarking Study  Immigration Officers Overseas / Migration Integrity Officers (MIOs)  Harmonized Commercial Processing (FAST, ACI)  Clearance Away From the Border  Joint Facilities  Customs Data  In-transit Container Targeting at Seaports  Removal of Deportees  API / PNR INNOVATION MANAGEMENT

PAGE 39 WHAT WE DO International

PAGE 40 Managing a border in this century is an international affair. CBSA is a major player in a vast international network: International Relations – Overview INTERNATIONAL 4 Smart Border Action Plan with the U.S. 4 Bilateral and multilateral trade agreements 4 World Customs Organization 4 Asia Pacific Economic Cooperation 4 International Organization on Migration 4 G8 4 U.N. High Commission for Refugees 4 International Air Transport Association / International Civil Aviation Organization 4 World Trade Organization 4 North American Plant Protection Association 4 Immigration Fraud Conference 4 Interpol International Conference on Fraudulent Documents

PAGE 41 STRATEGIC AGENDA

PAGE 42 Risk Management Business Protecting the Integrity of Canada’s Borders Strategic Agenda – Commitment to Enhanced Security & an Open Border The CBSA identifies people and goods which pose a threat to Canadians’ health and safety so legitimate cross-border traffic can flow freely CBSA is in the risk management business.

PAGE 43 Pushing the Borders Out The CBSA will manage risks away from our border, not only to protect Canadians but also to enhance trade. Strategic Agenda – Commitment to Enhanced Security & an Open Border Smarter Border Management The CBSA is instituting new joint measures with its US partners to improve the effectiveness of its border services.

PAGE 44 Enhanced Inter-operability and Information Sharing Strategic Agenda – Commitment to Enhanced Security & an Open Border Building Capacity for Flexible & Integrated Responses Within PSEP 4 Promote integrated responses to policy, program, and corporate issues within portfolio 4 Identify best practices across the public safety community, and provide effective and timely direction to a variety of agencies 4 Ability to share intelligence and information across organizational lines will be a key component of the Department’s activities 4 Develop common approaches to risk management, to information systems, and to the development of knowledge regarding public safety issues

PAGE 45 Single Window Strategic Agenda – Commitment to Enhanced Security & an Open Border Expanded Partnerships 4 Responsible for improving the coordination of federal, provincial, and municipal responses to public safety threats and emergencies 4 Work closely with a wide range of federal partners 4 Strengthen relations and dialogue with our clients to better meet their evolving needs 4 CBSA is uniquely positioned to integrate the border management function of 16 federal departments and agencies, and 7 provinces.

PAGE 46 Improved Community and Stakeholder Involvement Strategic Agenda – Commitment to Enhanced Security & an Open Border The new Department will work in close collaboration with business, labour, advocacy groups, and other important stakeholders across Canada Stronger Infrastructure Canada’s border infrastructure is critical to the success of our economy.

PAGE 47 Facilitating International Trade Strategic Agenda – Commitment to Enhanced Security & an Open Border 4 Enhance trade and promote Canada and Canadian business competitiveness International Scope 4 Managing a border in this century is an international affair

PAGE 48 Priorities for Action Build a new Agency fully capable of meeting the challenges of the future Maintain current service standards Strengthen security by building on our partnerships with other key players Ensure we are better connected, within government and internationally Strengthen our partnerships with the private sector

PAGE 49 Conclusion 4 Our approach to creating a more secure border to facilitate trade and ensure free movement of legitimate travellers and cargo will continue to evolve as we harness the power of technology, new partnerships and new programs to meet emerging challenges 4 Much effort is required to address the relentless pressures confronting our economy and society – from new strategies by terrorists to destabilize the western world, to threats to our food supply that can cripple our economy

PAGE 50 Conclusion 4 The CBSA is the logical next step in this evolutionary process of strengthening our border – continuing work initiated and ensuring improved outcomes by providing more permanency and integration 4 To ensure we get it right, we will need to work closely with our stakeholders and important partners