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Canada May Penalize Warehouses, Carriers for Not Submitting Electronic Notifications

Tuesday, August 04, 2015
Sandler, Travis & Rosenberg Trade Report

The Canada Border Services Agency has announced that from July 10 to Jan. 10, 2016, noncompliance with electronic warehouse arrival and conveyance arrival notification requirements may be met with zero-rated penalties (non-monetary) under the Administrative Monetary Penalty System. Noncompliance after Jan. 10, 2016, may be met with monetary AMPS penalties.

On May 6 the requirement for the electronic notification of cargo arrival at sufferance warehouses became mandatory for operators of all types of CBSA-licensed sufferance warehouses. Under this requirement the electronic warehouse arrival certification message must be transmitted by registered participants in the CBSA’s Release Notification System using an electronic data interchange method when unreleased commercial shipments physically arrive at the sufferance warehouse to which they are destined. This requirement replaced the previous manual arrival and transfer of liability process at inland destinations, which required warehouse operators to endorse the cargo control document, bill of lading, waybill or other similar document provided by the carrier.

Also on May 6 it became mandatory for air, marine and rail carriers who operate conveyances arriving in Canada from a foreign country to transmit electronic conveyance arrival certification messages to CBSA. The electronic CACM message must be transmitted by registered participants using an EDI method after the commercial conveyance arrives in Canada. The following provides policy requirements for CACM messages for each mode of transport.

Marine – The CACM must be transmitted electronically when the vessel lands at a CBSA office upon arrival in Canada; i.e., when it first comes to rest in Canada, whether at anchor, at dock or berthed alongside at the nearest CBSA office designated for that purpose. The CACM can be transmitted and received within a two-hour window prior to arrival, allowing carriers to transmit their arrival request up to two hours in advance of their actual arrival at a Canadian port, provided the vessel is within Canadian waters at the time the request is submitted.

Air – The CACM must be transmitted electronically without delay after the aircraft that is transporting cargo is cleared by NAV Canada to land at an airport following arrival in Canada.

Rail – The CACM must be transmitted electronically up to 30 minutes in advance of the actual arrival of the conveyance at the Canadian border.

The CBSA notes that marine and air conveyances exempt from transmitting electronic conveyance data are also exempt from transmitting CACMs. This exemption will also apply to rail conveyances for an appropriate period of time.

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