1. Beyond the Border Integrated Cargo Security Strategy Canada – United States Transportation Border Working Group Detroit, Michigan April 23 - 25, 2013

2. Beyond the Border Action Plan On December 7, 2011, Prime Minister Harper and President Obama released the Beyond the Border Action Plan for Perimeter Security and Economic Competitiveness. 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) will be carried out in two phases: - Phase I: Development of the Integrated Cargo Security Strategy (ICSS) by June 30, 2012. - Phase II: Launch of the ICSS pilots 2

3. Integrated Cargo Security Strategy The ICSS aims to identify and resolve security 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); − Future Newark (Marine to Highway-US/CA) − Tamper Evident Technology; − CBSA-TC Pre-Load Air Cargo Targeting. 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

4. ICSS Milestones Working in close collaboration with key partners and stakeholders, we have achieved the following ICSS milestones: In June 2012, the Strategy was developed and approved for consultation with stakeholders in both Canada and the U.S. Consultations on the Strategy are underway with identified stakeholders. A generic ICSS inbox was created to gather stakeholder feedback. An ICSS Performance Measurement Framework (PMF) has been developed. In Fall 2012, pilots were launched and operational plans were developed. Continued outreach has been undertaken with regulatory advisory groups 4

5. Prince Rupert & Montreal Pilots The pilots focus on in-transit containers arriving in the marine ports of Prince Rupert, British Columbia (BC) and Montreal, Quebec (QC) and transiting to the U.S. land border by rail or highway. The U.S. and Canadian National Targeting Centres (NTC) 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 CBP for security risks. Any enforcement actions for security concerns identified are dealt with in Canada. Information and examination results are shared with CBP. Secured containers are sealed with high-security bolt seals for their transit through Canada to the land border at International Falls, Minnesota (MN). 5

6. Prince Rupert Pilot Update Pilot was launched on October 1, 2012. Canadian National Railways (CN) is a voluntary pilot participant. A stakeholders working group was formed and continues to meet regularly. Operational and Outreach plans have been developed. Pilot monitoring and reporting has begun. As of April 2013: o 34 pilot trains departing from Prince Rupert, BC have crossed into the U.S. at International Falls, MN; and o Time delays at the border have been reduced from approximately 2 hours prior to the pilot’s launch to 30 minutes or less for all pilot trains. 6

7. Montreal Pilot Update Pilot was launched on January 7, 2013. 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. 7

8. Tamper Evident Technology Pilot The tamper evident technology pilot has been developed to monitor the movement of examined in-transit containers through the trial use of different high-security sealing techniques. Currently being used to secure examined containers are High Security Bolt Seals. Its aim is to ensure the security and integrity of the supply chain for goods arriving in Canada destined for the U.S. The tamper evident seal pilot activities are being conducted concurrently with both the Prince Rupert and Montreal Pilots. 8

9. Tamper Evident Technology Pilot Update Pilot was launched on October 1, 2012 in Prince Rupert, BC. Pilot monitoring and reporting has begun. As of April 2013: o 52 seals were applied to containers examined by the CBSA in Prince Rupert; and o No broken container seals were detected by U.S. CBP at the land border. The CBSA and CBP continue to work together to conduct tamper evident technology research to determine the technology’s viability. Beginning in late May 2013, the CBSA will begin testing tamper evident seals within Canada, from ports of entries to marine container examination facilities 9

10. Pre-load Air Cargo Targeting Pilot The Pre-Load Air Cargo Targeting (PACT) pilot is a joint initiative between CBSA and Transport Canada (TC) that focuses on the analysis of inbound pre-load air cargo data for indications of risk to aviation security. Volunteer airlines submit pre-load information at earliest time possible prior to loading cargo onto an aircraft destined to Canada. CBSA and TC conduct a risk assessment of pre-load cargo data from volunteer pilot participants. Mitigation strategies for high-risk cargo are being developed in partnership with carriers and TC throughout the pilot. This pilot will draw on the experience and best practices of CBP and the Transportation Security Administration Air Cargo Advanced Screening (ACAS) pilot. 11

11. Pre-load Air Cargo Targeting Pilot Update Pilot was launched on October 1, 2012. 7 voluntary air carriers are participating in the PACT pilot. Targeters have been staffed and training has been provided. CBSA and TC officers are currently analyzing live pre-load cargo data provided by participating airlines. The PACT pilot team is working with volunteer airlines to improve data quality. Pilot monitoring and reporting has begun. As of April 2013: o 3,697 reports have been analyzed containing live air cargo data. o Based on this information, 428 requests for information would have been issued to clarify data, such as shipper name, consignee, etc. 12

12. 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. Continue to gather comments on the Strategy document. A midyear review of the pilots in their current condition is scheduled in Washington D.C. this week. This meeting will include both Canadian and U.S. officials as well as representatives from CN Rail, our primary stakeholder in the Prince Rupert Pilot. 13

13. Contact Information For Canadian inquiry and/or feedback, please contact the CBSA at: ICSS.SISF@cbsa-asfc.gc.ca For U.S. inquiry and/or feedback, please contact CBP at: CargoRelease@cbp.dhs.gov 14