Overview of the Canada Border Services Agency Transportation Border Working Group Minneapolis, MN April 20th 2011 Opening Remarks Good morning and welcome to Canada and beautiful Quebec City. I am Kym Martin, Director of Horizontal Border Policies Division, Border Programs Branch of the Canada Border Services Agency (CBSA). On behalf of the Agency, I am happy to greet you here this morning. As a presenter for the Transportation Border Working Group, I have the privilege this morning to discuss Canada/US updates through a CBSA perspective.

Outline Who We Are What We Do CBSA Partnership with the United States Joint Canada/US Traveller & Trade Facilitation Programs ACI – E-Manifest / CSA / FAST Updates to the Marine Container Examination Process Contacts

CBSA Who We Are Border Integrity: We work offshore, at the perimeter, in-land and at the land border; we pursue a perimeter approach to border security which seeks to push the border out and to keep security threats as far from the North American perimeter and as close to their point of origin as possible; Risk Management: Impossible to stop and check every individual and shipment (13 million commercial shipments and 97 million travelers per year); Intelligence is a major driver of the organization: influences risk and where we put our people; Service Orientation: Streamlining administration, simplifying business interaction; expanding benefits of trusted shipper, trader and traveler programs Partnerships: Cooperation with other government departments and international allies; mutual recognition of screening programs Our Dual Mandate: To provide integrated border services that support national security and public safety priorities and facilitate the movement of persons and goods, including animals and plants, that meet all requirements under the program legislation. Canada has the longest coastline in the world measuring 240,000 kms. The Canada/US border is the longest undefended border in the world covering 5,061 kms in land and 3,800 in water.

CBSA What We Do CBSA administers more than 90 acts, regulations and international agreements, many on behalf of other federal departments and agencies, the provinces and the territories. The CBSA: Administers legislation that governs the admissibility of people, goods, plants and animals into and out of Canada. Prevents improperly documented people from coming to Canada and removes inadmissible persons who have been issued a removal order. Our priority is persons who pose a threat to national security and persons who are involved in organized crime and crimes against humanity, and criminals. Interdicts illegal goods so that they do not enter the country. Protects food safety and the environment by stopping prohibited and hazardous products. Promotes Canadian business and economic benefits by administering trade legislation and trade agreements. Promotes Canadian interests among various international organizations. Collects applicable duties and taxes on imported goods. CBSA at a glance: We employ 14,000 employees We have 1,200 service locations across Canada We are present at 119 land-border crossings and at 14 international airports In 2009-10, we processed 85.85 million travellers and 11.86 million commercial releases We oversee significant inland operations, including enforcement, commercial trade audits and criminal investigations We run marine operations at four major ports (Halifax, Montréal, Vancouver and Prince Rupert) We manage postal services at three mail centres (Vancouver, Toronto and Montréal) We manage four immigration detention centres located across Canada In 2009-10, we administered the removal of 14,806 inadmissible persons from Canada We have established 24 Integrated Border Enforcement Teams (IBETs) across the country We have deployed migration integrity officers to over 45 overseas locations to combat irregular migration

CBSA’s partnership with the United States Due to our shared border, the United States is Canada’s most important strategic partner. Since the wake of U.S. terrorist attacks in September 2001, Canadian and U.S. government departments and agencies have worked in partnership to improve security and services on the shared border through the Smart Border Declaration. A collaborative 32-point Action Plan for identifying and addressing security risks while expediting the legitimate flow of people and goods across our border was created as a blueprint for the Declaration. The four pillars of the Action Plan are as follows: Secure flow of people Secure flow of goods Secure infrastructure Coordination and information-sharing Our overarching strategic goal is to establish a joint and integrated border management regime, resulting in improved continental security, enhanced mobility of people and goods, and increased economic prosperity for both Canada and the United States. Initiatives Western Hemisphere Travel Initiative – Canada is working collaboratively with the U.S. to develop document requirements and a strategy for implementing the Western Hemisphere Travel Initiative (WHTI). The initiative will require all travellers to present a passport or other appropriate secure document when entering or re-entering the United States. Trusted Traveller & Trader Programs - We are working on several fronts with US CBP to ensure trusted trader programs deliver real benefits for members. We remain focused on a number of bilateral priorities such as PIP and C-TPAT, the FAST and NEXUS programs Integrated Border Enforcement Teams (IBETs) are a Canada/U.S. initiative set out in the Smart Border Accord to enhance border integrity and security at our shared border by identifying, investigating, and interdicting persons and organizations that pose a threat to national security or are engaged in other organized criminal activity. Teams combine the intelligence and law enforcement expertise of various agencies (i.e. CBSA, RCMP, US CBP, US ICE and US Coast Guard) and use a coordinated approach to identify and stop the high-risk movement of people and goods between the ports of entry on the Canada - United States border. Removal of Deportees - Canada and the United States work together to remove high-risk individuals United States, Mexico and Canada Security and Prosperity Partnership (SPP) of North America This trilateral initiative was formalized between Canada, the U.S. and Mexico in June 2005.  The SPP provides the framework to ensure that North America is a safe place to do business by increasing security and enhancing the prosperity among the three countries through greater cooperation and information-sharing.

Joint Canada/US Traveller & Trade Facilitation Programs NEXUS - trusted traveller program for low risk pre-screened travellers between Canada and the United States. NEXUS is a joint Canada-U.S. program designed to simplify border crossings for pre-approved, low-risk travellers. NEXUS operates in the air, land, and marine modes, with travellers having access to the program in all modes with a single membership. The NEXUS card is approved as an alternative to the passport for the U.S. Western Hemisphere Travel Initiative’s (WHTI) air rules. NEXUS Air uses iris-recognition biometric technology to verify an individual’s identity and confirm admissibility. This is key to our operations, because it enables us to focus our resources strategically on people and goods of higher and unknown risk. FAST - Free and Secure Trade FAST is a joint Canada–U.S. initiative that supports moving pre-approved, eligible goods across the border quickly and verifying trade compliance away from the border through an audit program. FAST is a commercial process offered to pre-approved importers, carriers, and registered drivers. Trusted Traveller & Trader Programs – We are working on several fronts with US CBP to ensure trusted trader programs deliver real benefits for members. We remain focused on a number of bilateral priorities such as PIP and C-TPAT, the FAST and NEXUS programs Pre-approval programs enable us to expedite low-risk goods and people for faster service, reduced backlogs, and lower compliance costs for business. NEXUS is operational at the following airports: Vancouver, Toronto-Pearson, Montreal-Pierre Elliott Trudeau, Ottawa-Macdonald Cartier, Halifax, Calgary, Winnipeg and Edmonton.

Two Future Options For Importer To Choose Nothing Is NOT An Option Two Future Options For Importer Advance Commercial Information (ACI) Customs Self Assessment (CSA) Intensified Process for unknown or higher risk Streamlined process for low risk I’ll be going into greater detail on each.

What Is ACI E-Manifest? ACI remains the baseline to which all commercial importations must conform unless the importation qualifies for CSA/FAST clearance in highway, air, marine and/or rail modes ACI is about… getting the right information, at the right time, to make informed decisions on whether to examine shipments at first point of arrival, or in some cases, the foreign port of lading

Customs Self-Assessment (CSA) The CSA program involves a three-part application and approval process: Part I Risk Assessment Part II Books and Records and Business Systems Part III Importer Program Requirements

CSA/FAST Participation Participation in the CSA/ FAST program as of March 2011 86 CSA & 66 FAST approved Importers 813 CSA 803 FAST approved Carriers 86 Importers represent about $79 billion VFD of imported goods (20% of total VFD)

What Is FAST? FAST is a joint program between CBSA, CIC, and the U.S. CBP that offers expedited clearance processes for eligible goods to pre-authorized importers, carriers, and drivers In the U.S., participation in FAST requires applicant importers and carriers to become C-TPAT approved FAST participants can obtain facilitated clearance in both countries through dedicated FAST lanes and/or dedicated FAST booths In Canada, FAST builds on principles of the CSA program and the security measures built into the Partners in Protection (PIP) program

FAST Approved Importer FAST Registered Driver Clearance Process FAST Approved Importer FAST Approved Carrier FAST Registered Driver Clearance

Container Examination The CBSA’s container examination program is necessary to support Canada’s national security and safety priorities Examinations control the movement of goods suspected of: National Security Threats Contraband Smuggling Other Government Department Controls Commercial Compliance Since 2007 this program has prevented approximately two billion dollars worth of drugs and contraband from being smuggled into Canada Risk assessments, advance information, screening and targeting gives focus to possible high risk goods The CBSA strives to ensure security while facilitating the free flow of goods

Impacts of Our Program The CBSA recognizes that delays, caused by container examination processing, impedes Canada’s trade community The CBSA has received many complaints regarding the effects of container examination delays and their significant costs to Canadian businesses We understand the concerns and are committed to working with industry representatives to make changes that will support Canada’s economic growth while maintaining national security EXAMINED

What We Have Done To address these concerns, an examination subcommittee was formed as part of the Border Commercial Consultative Committee (BCCC) members include: Shipping Federation of Canada British Columbia Chamber of Shipping Canadian Retail Shippers Association The subcommittee promotes discussion and consultation on matters relating to the examination process A marine examination mapping exercise was undertaken to provide the means for improving the commercial marine examination process Canadian International Freight Forwarders Association Canadian Society of Customs Brokers Canadian Association of Importers and Exporters

What We Are Doing Analysis of the mapping results allowed the CBSA and industry to identify initiatives to alleviate areas of processing delays On April 1, 2011 the CBSA implemented a national service standard to ensure container examinations take no longer than 24 hours for completion New procedures developed by CBSA and implemented on February 14, 2011 will ensure no container will remain in the fumigation area for longer than five days Industry is consulting with terminal operators to determine ways of improving the availability of containers within the port/terminal 8

Where Do We Go From Here The CBSA is committed to: Ensuring the safety and security of Canada Monitoring the effectiveness of our programs Analyzing the results of our activities Consulting with industry representatives Developing and modifying procedures to ensure all objectives are considered Continuing collaborative efforts with our other government department and international partners.

CBSA Contacts Afshin Shams A/Director, Horizontal Border Policies, Border Programs Programs Branch Canada Border Services Agency 7th Floor-7006, 150 Isabella Ottawa, ON K1A 0L8 CANADA (613) 954-7580 Afshin.Shams@cbsa-asfc.gc.ca Closing Remarks