Beyond the Border Canada – United States Transportation Border Working Group Buffalo, New York April 8-9, 2014

Beyond the Border Action Plan The Action Plan focuses on four key areas: - Addressing threats early; - Trade facilitation, economic growth and jobs; - Integrated cross-border law enforcement; and - Critical infrastructure and cyber security. The Integrated Cargo Security Strategy (ICSS) was carried out in two phases: - Phase I: Development of the Integrated Cargo Security Strategy (ICSS) by June 30, Phase II: Launch of the ICSS pilots 2

Integrated Cargo Security Strategy The ICSS aims to identify and resolve security and contraband concerns as early as possible in the supply chain or at the perimeter. The implementation of the ICSS is dependent on the following pilots: − Prince Rupert (Marine to Rail); − Montreal (Marine to Highway); − Tamper Evident Technology; − Wood Packaging Material (WPM) Feasibility Study The key success elements enabling both Canada and the U.S. to make informed risk management decisions, thereby enhancing security and facilitating trade are: − Advanced information sharing for inbound cargo shipments; − Sharing of real time pre-load screening and examination results; − Sharing of targeting and risk assessment methodologies and results; and − Joint threat assessments. 3

Prince Rupert, Montreal and Newark Pilots The pilots focus on in-transit containers arriving in the marine ports of Prince Rupert, British Columbia and Montreal, Quebec and transiting to the U.S. land border by rail or highway. The U.S. and Canadian National Targeting Centers risk assesses all in transit cargo arriving at those Canadian ports and identifies the shipments that pose security threats to the United States and Canada. The CBSA then conducts examinations on behalf of U.S. CBP for security risks. Any enforcement actions for security concerns identified are dealt with in Canada. Information and examination results are shared with the U.S. CBP. Secured containers are sealed with high-security bolt seals for their transit through Canada to the land border at International Falls, Minnesota. 5

Montreal/Newark Pilot Updates Montreal Pilot was launched on January 7, A stakeholders working group was formed and continues to meet regularly. Operational and Outreach plans have been developed. The pilot demonstrates the benefits of conducting risk-mitigation activities at the earliest point possible. Newark - Concept of Operations has been developed and under review by CBSA and CBP. 7

Next Steps The following steps are required to continue to validate the ICSS: Work with stakeholders to ensure the success of the pilots through early issue resolution. On-going performance monitoring, measuring and reporting with all stakeholders. An end of year review of the pilots in their current condition is scheduled in Washington D.C. On April 15, This meeting will include both Canadian and U.S. officials. 13

Single Window President Obama’s Executive Order dated February 19, 2014 calls for streamlining the export/import process. This will involve developing the necessary technical infrastructure, making regulatory changes. An interim milestone, was the conversion of border-related decision processes for at least the top four priority agencies to electronic form. Software developers have begun testing, soon volunteer brokers can begin to test their own software for the PGA Message Set with CBP. The start of the EPA and FSIS pilots is projected for April 2014 to allow the trade to upgrade their filing software.

Border Infrastructure and Investment Plan Current Status: Key crossings agreed to during FY2011 Beyond The Border Action Plan development activities include the following U.S. priorities: Alexandria Bay, Lewiston, and Peace Bridge, New York. Has expanded to feature full profiles on 25 major crossings as determined by combining the top 20 crossings in terms of two-way trade value.

TRUSTED TRADER The U.S. Customs and Border Protection (CBP) and the Canada Border Services Agency (CBSA) signed a Mutual Recognition Arrangement in 2008 between the C-TPAT Program and the CBSA Partners in Protection Program (PIP). The relationship between the PIP and C-TPAT is unique verses other mutual recognition partner programs due to the significant number of common members. PIP has an estimated 1450 members, approximately 77% of which are also members of C-TPAT. PIP and C-TPAT have jointly developed single application requirements for highway carriers and conducted a pilot with 4 highway carrier companies (2 located in Canada and 2 in the U.S.) in the first quarter. The joint pilot was successful and illustrated the feasibility of the single application with single entity to single entity. 13

Pre-Inspection Pilots- Blaine and Peace Bridge Updates PHASE I - Pacific Highway Crossing, Blaine, Washington/Surrey, British Columbia CBP successfully operated the Pre-Inspection Pilot Phase I on June, 2013 – December,2014. Phase I was a “Proof of Concept” designed to test the feasibility of CBP primary truck processing in Canada. Phase II - Buffalo, New York/Fort Erie, Ontario, Canada Implementation of Phase II commenced February 24, 2014, to test the feasibility of reducing wait times and border congestion.