1. Presentation to the Canada/U.S. Transportation Border Working Group Vancouver – December 4-5, 2002

2. 2 The Four Pillars of the Plan The Smart Border Declaration was built on four pillars: The Secure Flow of People The Secure Flow of Goods Secure Infrastructure Coordination and Information Sharing in the Enforcement of These Objectives

3. 3 Smart Border Declaration CCRA is responsible for 8 of the 30 action items: Alternative Inspection Services (Item 3) API/PNR (Item 8) Ferry Terminals (Marine Benchmarking) (Item 10) Harmonized Commercial Processing (Item 14) Clearance Away from the Border (Item 15) Joint Facilities (Item 16) Customs Data Exchange (Item 17) Intransit Container Targeting (Item18)

4. 4 Smart Border Declaration (cont’d) Shared Border Accord meeting held on Oct 30/31 Good progress to date on key initiatives: In-transit Container Targeting at Seaports NEXUS, NEXUS Air Harmonized Commercial Processing Issues remain with the following initiatives: Clearance Away From the Border / Joint Facilities Rail Pilot Program Infrastructure

5. 5 Alternate Inspection Services NEXUS Highway Operational at Sarnia / Port Huron, Pacific Highway / Blaine, Douglas / Peace Arch and Boundary Bay / Point Roberts Enrolment Centres in Detroit and Buffalo January 2003 – Windsor / Detroit & Fort Erie / Buffalo bridges March 2003 – Windsor / Detroit Tunnel & Niagara bridges Remaining high volume ports along the Canada/U.S. border by end of 2003

6. 6 Alternate Inspection Services (cont’d) CANPASS Air Initiative for pre-approved, low risk air travellers Will be available in Canada only To be implemented at Vancouver and Toronto airports in early 2003 and subsequently in Calgary, Edmonton, Halifax, Montreal, Ottawa and WinnipegTo be implemented at Vancouver and Toronto airports in early 2003 and subsequently in Calgary, Edmonton, Halifax, Montreal, Ottawa and Winnipeg

7. 7 Alternate Inspection Services (cont’d) NEXUS AIR Will be piloted at Ottawa and Dorval International airports in mid 2003 Will include evaluation of iris recognition biometric technology which will be utilized with CANPASS Air

8. 8 Advance Passenger Information/ Passenger Name Record (API/PNR) API implemented at Canadian airports on October 8, 2002 PNR collection to begin in January 2003 and automation to be phased in over 18 months Canada / U.S. agree to share API & PNR on high-risk travellers destined to either country Canadian / U.S. customs and immigration officers now jointly located at pilot Joint Passenger Analysis Units at Vancouver and Miami airports

9. 9 Ferry Terminals Marine Benchmarking Study Joint study conducted by Canada and US at international marine terminals Report completed in May 2002 identified best practices to enhance security and contraband interception Agencies have begun to make improvements based on the recommendations

10. 10 Harmonized Commercial Processing Free and Secure Trade – FAST Canada/U.S. program in partnership with the importing community to enhance security, expedite processing and conduct trade compliance verification away from the border. Canada and the U.S. are now accepting applications

11. 11 Harmonized Commercial Processing (cont’d) FAST benefits the importing community by: Reducing information requirements for clearance Eliminating need for transmission of data for each transmission Reducing rate of border examinations Moving trade compliance verification away from the border Streamlining accounting and payment process (Canada only)

12. 12 Harmonized Commercial Processing (cont’d) FAST will be available: In December 2002 At six high-volume border crossings Pacific Highway, BC / Blaine, Wash Windsor, Ont / Detroit, Mich Sarnia, Ont / Port Huron, Mich Fort Erie, Ont / Buffalo, NY Queenston, Ont / Lewiston, NY Lacolle, Que / Champlain, NY

13. 13 Harmonized Commercial Processing (cont’d) NON – FAST Canada and the U.S. are also working to align other commercial customs processes by 2005 Will include such elements as common requirements for data, electronic commerce standards and timeframes for advance transmission of cargo information Canada and the U.S. are also working internationally to align commercial processes

14. 14 Harmonized Commercial Processes (cont’d) In June 2002 – CCRA and USCS Commissioners spoke to the World Customs Organization (WCO) to promote harmonized commercial processes and supply chain security Resolution on Security of the International Trade Supply Chain CCRA is participating in the Task Force charged with developing a plan for consideration by the WCO at the June 2003 Council Session

15. 15 Clearance Away From the Border Develop an integrated approach to improve security and facilitate trade through away- from-the-border processing for truck cargo and driver A number of options are being considered Key issue is federal inspection agencies of one country operating with full powers in the other Significant Charter and Bill of Rights issues

16. 16 Clearance Away From the Border (cont’d) Rail Pilot Agreement to develop an operational plan Senior officials meet with CN / CP to discuss the plan

17. 17 Joint Facilities Establish criteria for the creation of small remote joint border facilities in the context of international zones where Canada and US federal inspection agencies would enforce their respective laws - on the soil of the other country Joint facilities of this kind (co-located shared facilities on one side of the border or the other) being explored as part of Clearance Away from the Border

18. 18 Joint Facilities (Cont’d) Meanwhile, joint facilities that straddle the border continue to be pursued, with four already in operation: more are under construction: Carson, BC / Danville, Wash Little Gold Creek, Yukon / Poker Creek, Alaska Climax, Sask / Turner, Mont Noyan, Que / Alburg, Vermont Two other facilities are under construction and three more will be constructed in 2003

19. 19 In-Transit Container Targeting Joint targeting for in-transit marine containers arriving at seaports in Canada/U.S. has begun through exchange of information and targeting officers Launched last March, U.S. customs inspectors now working at the Vancouver, Montreal and Halifax container targeting units and Canadian inspectors are in Newark and Seattle

20. 20 Border Infrastructure Objective of this initiative is joint and coordinated physical and technological improvements aimed at overcoming traffic management/growth challenges, including dedicated lanes/border modeling exercises Government’s Border Infrastructure Fund (BIF) will invest in roads, commercial vehicle processing centres, intelligent transportation systems and highways Focus will be on the six largest land border crossings CCRA / USCS will develop framework for an Infrastructure Working Group, including transport agencies, to ensure that customs needs are considered in planning infrastructure improvements

21. 21 Next Steps for the Manley/Ridge Process PCO, in consultation with key departments and agencies are developing broader agenda, building on the success of Manley/Ridge Meetings to continue between Manley/Ridge to ensure progress on all of the Phase One initiatives Next meeting is December 5-6, 2002 Next Shared Border Accord meeting will be hosted by the USCS, in February 2003