UPS Customs Brokerage and Compliance

Industry News

CBSA to Push Mandatory Electronic Reporting for Exporters Effective April 1, 2012

On January 18, 2012, Canada Border Services Agency (CBSA) released customs notice 12-001 announcing that it will undertake the process to eliminate the manual reporting process form (B13A) for exporters and implement mandatory electronic reporting effective April 1, 2012. This policy will affect declaration of export shipments destined to non-US destinations.

Currently, exporters may declare their non-US export shipment modes using the following options:

  • Through B13A according to specific timeframes by transportation mode1;
  • Participation in the summary reporting program: for approved commodities to eligible destinations, exporters report required export data in a single, monthly summary report. The approved commodities only include bulk and/or homogenous goods that are not controlled, prohibited, or regulated (additional criteria apply).
  • Electronic reporting through either the Canadian Automated Export Declaration (CAED) or the G7 Export Reporting Electronic Data Interchange (G7-EDI). The CAED is downloadable software available free of charge on the Statistics Canada website. The G7-EDI option requires an investment from the exporting company and provides a direct link to the CBSA's ACROSS System.

When CBSA mandatory electronic reporting policy is implemented, only the electronic reporting modes will be accepted.

Exemptions to the new policy will include:

  • Exporters who report their exports using the Summary Reporting Program option.
  • Exporters of goods subject to Other Government Department or Agency (OGD) requirements, when the OGD does not have an EDI link with CBSA; manual reporting (presenting a paper copy of the electronic export declaration and OGD permit at the CBSA office closest to the point of exit) remains in effect.

CBSA Notice 12-001 specifies that the implementation date is targeted for April 1, 2012; and that a transition period will be in place before complete implementation to provide exporters with sufficient time to register for either CAED or G7-EDI. UPS recommends that exporters targeted by this new policy start transitioning to the electronic modes available, either by downloading the latest CAED software or by registering to participate in G7-EDI. For additional information on these electronic modes, please contact CBSA at 1 800 257-2434.

Exporters of eligible bulk goods or homogeneous goods who do not currently participate in the summary reporting program may also want to review their processes to find out if summary reporting could be an alternative option. Exporters can apply for this program by contacting CBSA Program Services at their regional CBSA office.

1. Exporters are required to report the exported goods to the CBSA according to the following timeframes:

  • marine - no less than 48 hours before the goods are loaded onto the vessel;
  • air - no less than two hours before the goods are loaded onto the aircraft;
  • rail - no less than two hours before the railcar containing the goods is assembled to form part of the train for export;
  • postal - no less than two hours before the goods are delivered to the post office where they will be mailed;
  • any other mode - immediately prior to the exportation of the goods.

FDA Foreign Facility Reinspections, Recall and Importer Reinspection User Fee Rates for Fiscal Year 2012

The U.S. Food and Drug Administration (FDA) announced on August 1, 2011, through a Federal Register Notice, that their fiscal year 2012 fee schedule will cover 100% of the FDA's cost associated with:

  • Certain U.S. domestic and foreign facility reinspections linked to follow up inspections conducted by FDA subsequent to a previous inspection that found a violation materially related to food safety requirements.
  • Failure to comply with recall orders with which a responsible party has not complied.
  • Certain U.S. importer reinspections linked to follow up inspections of a food offered of import conducted by FDA subsequent to a previous inspection that found a problem materially related to food safety requirements.

On January 4, 2011 the FDA Food Safety Modernization Act (FSMA) was signed into law by President Obama to enable FDA to better protect public health by strengthening the food safety system. FSMA specifically authorizes new fees to give FDA resource necessary to implement specific activities such as the above mentioned fees.

The fees associated to perform a reinspection or recall are effective October 1, 2011 through September 30, 2012 with the following rates:

  • $224 an hour if no travel out of the United States is required
  • $335 an hour if travel out of the United States is required
According to the FDA, the responsible party will be invoiced for the direct hours spent to perform the reinspection or recall at the appropriate hourly rate.