1. EXPORT POLICY February 4, 2004 Presented by Lorraine Cartier, Export Process Division Canada Border Security Agency

2. AGENDA Export Regulation Update Process Under the Revised Regulations B13A; CAED; EDI; Summary Reporting; NDR Stamp Machines MOUs With the Carriers and Service Providers Letter for Exporting Community AMPS Updates Workshop

3. Export Regulations Update Customs Notice 495 issued January 2003 No major concerns with Justice Legal Affairs advise that “blue stamping” to take place as of February 2004 Regulations to become law spring 2004 MOU launch February 2004 Encourage exporting community to move to new reporting time frames and procedures; Trial run planned for March & April 2004 New penalties will not take effect until regulations become law

4. Revised Export Regulations WHAT ARE THE CHANGES? WHY THE CHANGES ARE NECESSARY? BENEFITS FOR THE EXPORTING COMMUNITY

5. TIMEFRAMES FOR NEW REGULATIONS Marine: 48 hours prior to loading on the vessel Rail: 2 hours prior to the building of the train for export Air: 2 hours prior to loading on the plane Postal: 2 hours prior to mailing Highway: immediately prior to export Report according to new time frames, includes CAED reporters

6. TYPES OF REPORTING Canadian Automated Export Declaration (CAED) /EDI G7 Stamp machines for manual B13A Export Declarations Summary Reporting NDR (No Declaration Required)

7. Manual B13A = stamping machine Process 3 copies of B13A form using stamp machine or manual stamp. Ensure all copies reflect the same transaction number !

8. Exporter ’s Responsibilities Provide accurate information to your service provider for completion of B13A declaration Present declaration to Customs within time frames Supply licences, permits or certificates with the declaration according prescribed time frames Keep records

9. Proof of Report Manual B13A TRANS # 2004/01/28 11:30 396 058998 CAED/EDI (G7) 12X123SC1234 20040100567 Summary Report SUM # 0456 No Declaration Required (NDR)

10. CAED PROOF OF REPORT The licence number composed of 2 numeric/ 1 alpha/3 numeric digits e.g. 12X543; The Authorization ID composed of 2 alpha/4 numeric digits e.g. SC1234; The Form ID composed of the year/month/and five digit transaction number which refers to the # of shipments exported during the year. e.g. 2004-01-00546. 12X543SC1234 20040100567

11. MOU PROCESS  MOU WITH MEMBER CARRIERS NO REPORT/NO LOAD  PROCEDURES  MOU document (implementation trial run March & April 2004)  Export transportation document (manifest air way bills etc) submitted according to mode with proof of report transaction number Air/rail: One working day after plane/train departs Marine: Three working days after vessel sails

12. Benefits of MOU Eliminate the undercoverage of exports Assure trading partners that Canadian exports are secure. Expedite the movement of goods by carriers/freight forwarders. Reduce the incidents of AMPS penalties for exporters. Does not apply for in-transit goods

13. Carrier/Freight Provider MOU Updates Letters have been sent out to CTACC members to explain the process of reporting to the exporting community Letter is linked to various websites including CBSA Official launch planned for February 2004 Trial run planned for march/April Signing of MOU by participating companies

14. PRESENTLY 18 PENALTIES RELATE TO EXPORTS ADDITIONAL NEW CARRIER AND EXPORTER PENALTIES TO BE ADDED AMPS EXISTING AND NEW PENALTIES

15. PERSON FAILED TO PROVIDE TRUE, ACCURATE, AND COMPLETE INFORMATION (DOCUMENTS) (PER DOCUMENT) 1 st = $100 2 nd = $200 3 rd = $300 Customs Act, Section 7.1 C005

16. EXPORTER FAILED TO DECLARE THE EXPORT OF GOODS PRIOR TO EXPORT (Per shipment) 1 st = $0 2 nd = $1,000 3 rd = $2,000 4 th and + = $3,000 Customs Act, Section 95(1) C170

17. Person failed to answer truthfully any questions Value of goods 1 st = $2,000 or 20% of the value of goods* 2 nd = $4,000 or 40% of the value of goods* 3 rd and + = $6,000 or 60% of the value of goods* * whichever is greater Customs Act, Section 95 (3)(a) C346

18. EXPORTER FAILED TO PROVIDE TO CUSTOMS PRIOR TO EXPORT REQUIRED EXPORT PERMIT, LICENSE OR CERTIFICATE (Per document) 1 st = $1,000 2 nd = $2,000 3 rd and + = $3,000 C315

19. General Export Permits (GEP) General Export Permits (GEP) enable an exporter to export certain goods which are subject to control under DFAIT to eligible destinations without the necessity of submitting individual export permit applications. GEP Update

20. General Export Permits (GEP) GEP 1 : Export of Goods for Special & Personal Use GEP 12 : United States Origin Goods GEP 18 : Portable Personal Computers and Associated Software GEP 27 : Nuclear-Related Dual-Use Goods GEP 29 : Eligible Industrial Goods GEP 34 : Certain Industrial Goods to Eligible Countries GEP 37 : Toxic Chemicals and Precursors to the USA GEP 38 : CWC Toxic Chemical and Precursor Mixtures GEP 39 : Mass Market Cryptographic Software http://laws.justice.gc.ca/E-19/C.R.C.-c609/index.html

21. EXPORTER FAILED TO REPORT GOODS SUBJECT TO EXPORT CONTROL PRIOR TO EXPORT Value of goods 1 st = $2,000 or 20% of the value of goods* 2 nd = $4,000 or 40% of the value of goods* 3 rd and + = $6,000 or 60% of the value of goods* * whichever is greater Customs Act, Section 95 (1) C345

22. EXPORTER FAILED TO SUBMIT AN EXPORT SUMMARY REPORT Per summary report 1 st = $2,000 2 nd = $5,000 3 rd and + = $10,000 Customs Act, Section 95 (1) C316

23. EXPORTER FAILED TO KEEP RECORDS AT PLACE OF BUSINESS (Per audit) 1 st = $1,000 2 nd = $5,000 3 rd = $10,000 4 th and + = $25,000 Customs Act, Section 97.2 (1) C195

24. PERSON WHO HAS REPORTED GOODS FAILED TO PRESENT GOODS, UNLOAD CONVEYANCE OPEN PACKAGES OR CONTAINERS (Per incident) 1 st = $1,000 2 nd = $2,000 3 rd and + = $3,000 Customs Act, Section 95(3) (b) C190

25. CARRIER FAILED TO REPORT IN BOND CARGO TO CUSTOMS OUTBOUND (Per shipment or Manifest) $1,000 Per infraction Customs Act, Section 95 (1) C343

26. New & Amended AMPS Penalties Exporter failed to report within prescribed timeframes (C170 & C315) Service provider failed to comply with officer request for verification prior to export Exporter of vehicle/conveyance did not provide official documents Carrier operating without an MOU failed to present documentation prior to export Carrier operating under MOU failed to present documentation in a timely manner

27. INFORMATION Export Website: www.ccra-adrc.gc.ca/customs/business/exporting/menu- f.htmlwww.ccra-adrc.gc.ca/customs/business/exporting/menu- f.html Form B13A available www.ccra-adrc.gc.ca/F/pbg/cf/b13a/LISEZ-MOI.html Revised D Memorandum http://www.ccra-adrc.gc.ca/menu/FmenuKCA.html Free Customs Seminars for New Exporters http://www.ccra-adrc.gc.ca/events/menu-e.html

28. Export Control Department of Foreign Affairs and International Trade www.dfait-maeci.gc.ca/eicb/military/content- en.asp Phone: (613) 996-2387 Fax: (613) 996-9933

29. Contacts Regional Export Coordinator André Latour (514) 283-2464 ext.8350 Regional Client Service Isabelle Simard (514) 286-7879 ext.5269 Export Process Division (Ottawa) (613) 954-7160 CAED: 1-800-257-2434 (Statistics Canada) CAED Interface CBSA: (613) 948-7876 EDI/G7: : Website www.ccra-adrc.gc.ca or G7 team at: G7@ccra-adrc.gc.ca.

30. www.ccra-adrc.gc.ca The end