Truck Topics

CSA: A faster way across the border

CSA - "Customs Self Assessment" is a Canada Customs initiative designed to streamline the customs process for low-risk shipments moving from the US to Canada. The program was implemented on December 3, 2001.

Initially, only U.S. originated goods, and goods imported from Mexico for CSA authorized importers within the automotive industry, will be eligible for the CSA program. Another important requirement is that the Canadian importer, the transportation company and the driver must be CSA-certified.

For the carriers, this represents a streamlined customs-clearing process. Instead of presenting the shipment's paperwork, then being sent to a customs broker and then on to the Customs facility, CSA can reduce the process to a single step.

At the Canadian Customs primary booth, the driver presents the CSA approved carrier's code, the CSA approved importer's business number, and his Commercial Driver Registration Program card.

All three of these data elements must be presented in documents containing a bar coded format which are scanned by the primary booth customs inspector at the primary booth. After the system validates that the importer, carrier and driver are participants in the program, the inspector makes the decision to send the shipment to its destination or hold it for a secondary further inspection.

Another Canadian Customs system that utilizes bar coding is the Pre-Arrival Review System (PARS). With the PARS procedure however, there is still a customs broker involved and the carrier or importer has to send the shipment's information to the broker prior to the shipment's arrival at the border.

Although the Custom Self Assessment program is not a replacement for any existing border crossing procedure, its implementation somewhat coincides with the retirement of the old Line Release Document (A-49) as of October 29, 2002.

Paul Truant is a Compliance Manager within the Custom Self Assessment program, who says that with CSA, "There is more security as the three players in the process have been pre-approved for the program. The approved importers, carriers and drivers have each undergone a rigorous risk assessment before they have been allowed to participate in the program."

"Furthermore, a passage history can now be tracked within our systems and we can track a package's history electronically. In addition, there is no filling out of forms for clearance of a CSA shipment; the driver just presents the documents with the 3 bar codes and thus making it easier for drivers and carriers. With CSA, all parts of the shipment process and customs clearance are pre-approved."

There are benefits to CSA Customers, that is, the shippers who elect to participate in the program:

Reduction in the cost of customs compliance by eliminating requirements for transactional entries. Increased certainty of expedited customs processing. Easier to meet customs obligations. No export documents required from the shipper for CSA eligible shipments.

For the expedited carriers involved in Big Three automotive shipments, participation in the CSA program will be a requirement of doing business with those carmakers. Ford, GM and Chrysler have applied and been approved, so they will need to use CSA-approved carriers for the clearance option.

What does the driver have to do to apply for the CDRP?
Depending upon the expedited carrier, some provide the necessary CSA paperwork, and some carriers leave it up to their contractors to contact the appropriate Canadian Customs office for the forms.

Drivers are eligible for the CDRP if he/she is:

A citizen or permanent resident of Canada; or

A citizen or permanent resident of the United States who meets the normal visitor requirements

The driver will qualify for the CDRP if:

He/she provides true and complete information on the application; He/she is admissible to Canada under the Immigration Act; Has not had goods seized by customs within the last five years; Has no criminal record for which he/she has not received a pardon; and Has not been found in violation under customs or immigration legislation.

Alcohol-related driving offences (e.g., driving while intoxicated, driving while ability impaired, and driving under the influence of alcohol) are criminal offences in Canada.

If accepted, the driver will receive a bar coded photo registration card as well as a participant's guide that explains the driver's obligations and responsibilities.

Paul Truant states, "We do risk assessment by searching the data systems available to us looking for enforcement issues concerning the carrier and by performing criminal background checks on the drivers and criminality. When our investigation is complete, and the requirements are met, the driver is approved and receives a Commercial Driver Registration Program (CDRP) card."

"The application process for carriers is a little bit lengthier and involves three parts. Part I involves a risk assessment in which we evaluate information contained in the data systems available to us, and the information provided by the carrier. When the risk assessment is complete and we have determined that they have met the requirements of Part I, the carrier is invited to proceed to Part II of the application process."

"In this part, the carrier must demonstrate that they have adequate audit trails and business systems in place to track and maintain control of shipments from the time they are booked, through delivery, to billing and receipt of payment. In addition, they must outline the changes they will make to meet CSA specific requirements."

"When Part II is evaluated and completed, the carrier is invited to proceed to Part III, which is the signing of a CSA Undertaking. Once the Undertaking is signed the carrier will be eligible to use the CSA clearance option for CSA eligible shipments."

"When our investigation is complete, the carrier and the driver are approved and the driver receives a Commercial Driver Registration Program (CDRP) card."

NOTE: In the long run, the CSA program will be rolled into the FAST (Free and Secure Trade) program. Initial expectations had this expanded clearance system operational by December of this year, but that date is doubtful at this time.

The advantage of the FAST card is that it can be used for clearance into both Canada and the US. FAST for Canada will basically be the CSA coupled with Canada's Partners in Protection program.

The CDRP cards will still be accepted for the life of the card, but after expiration, a FAST card will be required.

What do the expedited carriers have to say about CSA?

The expediting industry has readily accepted CSA because it increases customs clearance efficiency. That translates into happier drivers who no longer have to go through the sometimes-lengthy border crossing process. It also means happier customers who receive their freight in an even timelier manner.

This enthusiasm for CSA however, is tempered somewhat by the backlog of driver applications awaiting the approval process, which by some accounts, is 3-4 months behind. Some expedited carriers say that once the bureaucratic hurdles are crossed, the system will definitely be a benefit to trucking.

Bob Tracy, Director of Safety for Express-1, says that approximately 75 per cent of his company's contractors have applied for their CDRP cards, and between 10 to15 percent have been approved and have received their cards.

"I see that it can be a real improvement in the border-crossing process," says Tracy. I don't have many concerns about CSA, except that the approval process is running slowly. Some of our Express-1 contractors already have the CDRP cards from when they were leased to other expedited carriers, and their feedback about CSA has been positive."

"I have more concerns about the customs clearing process in general, as it is. They've initiated more stringent fines for drivers under the new Administrative Monetary Penalty Systems (AMPS). If a driver appears at the Customs booth without proper paperwork, or are guilty of other minor infractions, they now face stiffer fines. Drivers are understandably concerned about this."

Tracy continues, "I foresee this program gaining wider acceptance with more shippers becoming CSA-approved and this program becoming the standard way of clearing customs."

Karl Kussow, Corporate Safety Manager at FedEx Custom Critical says, "Its very critical, with so many of our customers' shipments going into Canada. Our major automotive customers are very enthusiastic about this program and we also feel that this is an improvement in the border crossing process."

FedEx Custom Critical was one of the original expedited carriers to participate in the CSA program. They were approved in December of 2001, shortly after the program's implementation.

"Just about 100 percent of our contractors have already applied for their CDRP cards, and to date, about 20 percent have already been approved and have received their cards."

He continues, "Our contractors are hopeful that the CSA program will reduce some of the problems that are associated with dealing with customs, and will make for a smoother border crossing. For myself, I believe that once the program gains momentum, other Canadian importers will also begin to utilize the system, which should expedite Canadian entry."

Irwin Shires, Special Services Representative at Panther II, Inc. says that approximately 15-20 percent of his company's contractors have received CSA approval. Shires is expansive in his praise of Custom Self Assessment: "It's a wonderful program; it's Canada's first step towards a paperless border crossing. The response from our contractors has been extremely positive - the drivers love it!"

"It's been stated that Canada's ultimate goal is to have in place within two years, a completely paperless customs clearance system and to that end, Panther II supports the CSA program; our drivers are enjoying hassle-free border crossings."

Safety and Recruiting Director of Tri-State Expedited Service, Inc, Ken Rideout says, "We don't know how the Canadian government is going to make it work and, at this point, they're four months behind on the CDRP approval process. The CSA idea is great, but the problems with the implementation are key. We have drivers who have completed the process, but there are still others who are in the pipeline."

"For the time being, It will only affect our automotive customers. It's good for them and the drivers, but it will take time to get the operation running smoothly in both the public and private sector."

Steve Ouellette, Recruiting Department Manager of Thompson Emergency says that his company has been involved in the CSA program since its inception: "Around 90 per cent of our contractors have their CDRP cards. The CSA is a good program; it only clears up the customs procedure, it also gives the carrier "pre-qualified" applicants."

"It's good for the driver because the CDRP card is transferable between CSA-approved companies. If the driver changes companies, the card goes with him."

"Ninety-five percent of our customers' shipments are CSA-approved, so we can readily see the value of this program; it speeds up the transport of freight by decreasing the waiting time at the border."

Ouellette continues, "The downside to the program is the long wait to receive approval and a card. We have found that there is an 8-10 week lag time between application and approval. We now tell prospective Thompson contractors to secure a CDRP at the time of their application to Thompson Emergency."

Some thoughts from the truckload sector:

According to Reimer Express' Vice President of Operations, Clayton Gording, "We are very supportive of the efforts to improve the efficiencies of the customs' processes at our international border. When we were first introduced to the concept of CSA, we felt it had many benefits for all parties involved, so we made the investment in resources and technology to enable us to qualify for certification."

"As the CSA program rolls out, we are ready to offer this service to our customers that are also certified, in addition to the various other clearance options that they have."

John Mueller, Seagate Transportation"s Driver Services and Safety Director says, "I've been encouraging our drivers to participate in this program. Although our company doesn't have that much Canadian in-bound freight, I feel that it will help streamline our drivers' transit through or into Canada. It's a simple process and I think it will benefit our drivers."

Web Information
Canadian Customs Homepage