Border Services Guide - Canadian Pacific RailwayBorder Services Guide 12/19/2008 4 Your Trans-border Shipment – A role for Everyone Other government agencies are required to: •

B o r d e r S e r v i c e s G u i d e

CP Delivers the Goods

Key Parties / Roles & Responsibilities

Clearing and Bonding Your Shipment: Canada United States Documentation Hints and Tips

Additional Customs Clearance Information

Sample

Preparing a Proper Bill of Lading

An Easy BOL Guide

EDI Protocol

Frequently Asked Questions

Acronyms

Terms

Phone Numbers and Websites

Canadian Pacific (CP) is a strong Class I North American railway franchise,

providing innovative freight transportation services over a 14,000-mile (22,000-

km) continental network. As North America's first purpose-built transcontinental

railway, CP has a 128-year track record of linking businesses and consumers

around the world.

CPR Delivers the Goods CP ships over 800,000 trans-border railcar, and container loads between the

U.S. and Canada each year, and volumes are expected to rise. As a result,

Customs agencies are enhancing their abilities to electronically target suspect

traffic and shippers. This means tighter regulations and requirements.

At CP, we are committed to practicing the art and science of ingenuity. We work

with you to make certain your shipment is delivered safely and efficiently. In

order to ensure the fewest delays and transport free of penalties or fines, we've

included some useful tips, guidelines and information in this handy booklet.

Inside, you will find a guide to help you complete your shipment accurately and

on time, every time.

Supply Chain Security CP is a member of U.S. Customs and Border Protection's Customs – Trade

Partnership Against Terrorism (C-TPAT) and the Canada Border Services

Agency Partners in Protection (PIP) Programs. Each Supply Chain Partner has

a role to play in supply chain security and we encourage you to review and

consider participation in these programs.

CP Delivers The Goods


12/19/2008 2

Key Parties / Roles and Responsibilities By providing the required information, you can help your shipment move seamlessly. To do this, you will need the assistance of a few key parties. Keep in mind three central points:

1. Pay attention to details: U.S. and Canada Customs require detailed commodity descriptions and accurate Customs entry. A rule of thumb for commodity descriptions is to avoid industry jargon. An average person should be able to read and understand them.

2. Get it right every time: Repeat offenders garner the attention of the

Customs agencies and are selected for inspection more often.

3. Use a reputable Customs Broker who specialized in rail traffic: Your Customs Broker should understand the railway business and provide specialized rail service 24 hours a day, 7 days a week. They should be knowledgeable in EDI transactions in order to clear your shipments as quickly as possible.

Effective January 01, 2009 – Pre-Arrival Review System (PARS) Entry will be required on all carload traffic destined for Canada.

Each group involved must perform a certain function for the process to work properly: The Shipper or the Consignee is required to:

• Provide 100% accurate and correct billing information to the Carrier. This includes all 15 mandatory trans-border elements in this guide under Preparing a Proper Bill of Lading.*

• Provide commercial invoices to Broker.*

• Arrange for licensing (e.g. sugar quotas, firearms and other restricted

commodities).*

• Pay all applicable duties and taxes. * To ensure your products are not delayed enroute – the above must be completed before the shipment moves

Your Trans-border Shipment

– A Role for Everyone


12/19/2008 3

Your Trans-border Shipment – A role for Everyone

The Broker or Freight Forwarder is required to:

• Review the shipper's product movements needs, and advise the customer of Customs requirements.

• Process Customs entry on behalf of the Importer of record (e.g. submit

applicable licenses, etc).

• Coordinate the payment of any applicable duties and taxes on behalf of the Importer.

• Act as a "go-between" for the Shipper, Carrier and Customs.

The Carrier (CP) is required to:

• Transport goods.

• Report manifest information to Customs/Brokers.

• Supply train trip-sheet to U.S. or Canada Customs.

• Comply with Border/Inland Customs inspection requests.

• Declare arrival inland for in-bound shipments.

• Hold and protect cargo until Customs authorizes clearance (mandatory). Canada and U.S. Customs agencies are required to:

• Protect their country.

• Prohibit the importation of illegal goods, contraband or weapons (or exportation of these items in some cases).

• Collect revenues.

• Process permits and quotas.

• Consult with other government departments (e.g. Agriculture, Census,

Food & Drug Association etc.)


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Your Trans-border Shipment – A role for Everyone

Other government agencies are required to:

• Collect and compile trade statistics on export moves (e.g. Statistics Canada/U.S. Census).

• Issue licenses for restricted and prohibited substances

(e.g. Dept. of Agriculture, FDA, and Agriculture Canada).

• Formulate trade policy (e.g. Departments of External Affairs).

• Mandate the respective Customs agencies to enforce trade policy on their behalf (e.g. Canadian Wheat Board exportation permits).

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Clearing and Bonding Your Shipment To effectively move your shipment without delays, consider these importing and exporting guidelines based on delivery origin and destination: C a n a d a Importing to Canada can involve three different scenarios: 1. You can move your railcar, container and trailer traffic with CP from the U.S.

to Canada. Broker entries must be filed in advance of the border to facilitate seamless transit.

2. You can move your International container traffic to Canada from ocean ports

in New York, Long Beach CA, other U.S. ocean ports, or Mexico. This traffic can be moved through the U.S. on a Shipper's T&E Bond. CP can electronically carry a shipper's T&E Bond number if it is sent to us via an M12 segment on an EDI 404, or 417. (See EDI chart). CP will also create a Canadian Customs manifest, and fax it to your specified Broker.

3. You can move your traffic from the Canadian ocean ports of Vancouver and

Montreal. This traffic can be manifested by the Steamship Line on an A6 bond or, in some cases, can be re-manifested from the ocean port to the inland destination by CP.

CP can now in many cases expedite movement of goods across the Canadian border through the Canada Customs Accelerated Commercial Release Operations Support System (ACROSS). Through ACROSS, the Railway can file manifests with Canada Customs up to 30 days before the goods actually arrive at the border. CP also sends notification to your Customs Broker, who files an electronic entry to Canada Customs through ACROSS. Canada Customs can then review the manifest using its Pre-Arrival Review System (PARS).

Clearing and Bonding Your Shipment


12/19/2008 6


Canada Customs Entry Options

• PARS (Pre-Arrival Review System) PARS is your best option for quick and cost effective customs release of your shipment. If the customs entry is processed by your Broker before the shipment arrives at the border, the customs release will be received upon arrival. A Broker can file up to 30 days before the shipment arrives at the border.

Effective January 01, 2009 – Pre-Arrival Review System (PARS) Entry will be required on all carload traffic destined for Canada.

CP will assess a $55.00 supplemental services charge to all shipments entering Canada without PARS entry after January 01, 2009.

Exporting from Canada to countries other than the U.S. can involve three different scenarios: 1. Mexico – CP uses the U.S. Customs Automated Manifest System (AMS) to

transmit data to Brokers at the U.S.-Mexico border. Shipments are moved seamlessly from Canada to Mexico via CP in conjunction with other railroad partners. Information is passed through AMS via EDI.

2. U.S. Ocean Port – You can move your shipments with CP from Canada to

U.S. ocean ports for export. AMS will create a transit and exit bond (T & E), to allow movement through the U.S.

3. Canadian Ocean Port – You can can move your traffic with CP from

Canadian inland cities to ocean ports at both Montreal and Vancouver. CP treats this traffic as a domestic move.

Before exportation, the Exporter, agent or transport company must report all goods worth more than $2,000 (CDN) to be exported from Canada to a country other than the U.S.


12/19/2008 7


Exporters must provide Canada Customs with an Export Declaration on either a Form B13A, or though the Canadian Automated Export Declaration (CAED) system. The CAED system is your best option for presenting your declaration to CBSA. Summary Reporting is also available to a limited number of Canada Customs qualified Shippers.

In all cases, the Export Declaration Number must be included in Shipper billing instructions to CP.

Some goods need export permits because the country of final destination is on a list of controlled export countries or because of their nature (e.g. arms, ammunition, and textiles).

Exporters must maintain records in Canada in paper or electronic format for six years after the goods' export. For more detailed information on export requirements and records maintenance, Canada Customs provides a variety of useful pamphlets:

Some examples are:

Exporting goods from Canada

Memorandum D20-I-0

Reporting of Exported Goods Regulations

Memorandum D20-I-5

Maintenance of Records and Books in Canada by Exporters and Producers

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T&E Transportation and Exportation Bond


U n i t e d S t a t e s Importing to the U.S can involve three different scenarios: 1. Domestic North American traffic. This traffic clears into the commerce of the

U.S. at the border. 2. International container traffic brought to a Canadian ocean port and moved

into the U.S. CP can bond your container from the U.S. border to destination. (CP does not create a bond for the portion of the trip from the Canadian ocean port to the U.S. border).

3. International container traffic imported through a U.S. ocean port and moved

by rail to a U.S. destination. (This traffic normally moves on an ocean-lined bond).

When CP receives your Bill of Lading (BOL), we send the manifest data to U.S. Customs electronically via Electronic Data Interface (EDI), and U.S. Customs passes it to your U.S. based Broker by ABI or fax. Your shipment status is then verified by the AMS, along with Customs or Agriculture hold notifications that might apply. U.S. Customs Entry Options

For carload and Canadian origin Intermodal shipments destined to the U.S., you must employ a Broker at the border crossing to file paperwork and obtain clearance prior to arriving at the border. Foreign goods moving through the U.S. for export to a third country. For all international container traffic moving to points in the U.S. and intended for entry into U.S. commerce (rarely used for domestic North American traffic).

Border Clearance Port of Entry

IT Immediate Transportation Bond


12/19/2008 9


Exporting from the U.S (exiting the U.S. by rail): Shipments from the U.S. to Canada follow documentation rules outlined in the Importing to Canada section of this guide. Shipments being exported from the U.S. through Canada to a third country such as one in Europe or Asia flow with different processes. If you are shipping from the U.S. through Canada to be exported by vessel, You must meet U.S. Census Bureau reporting requirements as outline below. Exporters or their Agents must maintain copies of shipping documents for three years after exportation. Shipments to Canada Require an Export Exemption Citation. U.S. Census Bureau Automated Export System (AES) Reporting Requirements

Rail customers exporting traffic from the United States to Canada, or through Canada to a third country are subject to U.S. Census Bureau reporting requirements.

Specifically, the U.S. Census Bureau requires mandatory electronic filing of export information by the US Principle Party in Interest (USPPI) through the Automated Export System (AES) or through AESDirect for all shipments where a Shipper’s Export Declaration (SED) is required.

Under this rule paper Shipper Export Declarations (SED’s) are no longer valid. All export information must be filed electronically.

Proof of filing citations, post departure citations, exemptions and exclusions must be declared in compliance with regulatory requirements. Please pay particular attention to these requirements and ensure that the N9 segment of your EDI Bill of Lading (BOL) includes these mandatory filing citations.


12/19/2008 10


Required AES Citations on EDI BOL’s are as follows:

1. AES Internal Transaction Number (ITN)

The ITN number is generated automatically by the U.S. Census Bureau's AES system assigned to a shipment confirming when export data is filed by the U.S. principal party in interest (USPPI)

The 15 character ITN format remains unchanged from the previous rule.

X + Year/Month/Day of export + 6-digit system generated identifier

N9*ITN*X20081015123456

2. Post Departure Filers – New Format

The statement “OPT 4” is no longer acceptable.

The new format is as follows:

i) AES Post departure Citation where the Electronic Export Information (EEI) is filed by the USPPI

N9*PDF*AESPOST123435678912

ii) AES Post departure Citation where the Electronic Export Information (EEI) is filed by an Agent on behalf of the USPPI

N9*PDF*AESPOST123435678912-987654321

Please Note: Do not include the date suffix (“mm/dd/yyyy”) in your filing to CPR for either Items “i)” or “ii)” above as this information exceeds the field length available within existing EDI reporting standards. U.S. Customs and Border Protection (USCBP) will accept the actual date of export available on the railway Export Report.

Do not include blank spaces between the characters.


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3. AES Exemption Statement – New Format

The following format applies to shipments eligible to be exported without an AES Electronic Export Information (EEI).

N9*CEN*NOEEI 30.36

This statement is most commonly used on U.S. goods exported to Canada.

Please refer to the U.S. Federal Register final rule for a complete listing of exemption codes.

http://edocket.access.gpo.gov/2008/pdf/E8-12133.pdf

http://edocket.access.gpo.gov/2008/pdf/E8-12133.pdf


12/19/2008 12

System Flow Chart

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Documentation Hints and Tips The following table provides a list of the types of documentation you may require to move your shipment, as well as some hints, tips and common mistakes. Your Customs Broker can advise you further based on your shipment type.

Documents Required Canada (origin)

U.S. (origin)

Hints and Tips Common Mistakes/ Consequences of Failure

Bill of Lading: The Bill of Lading (BOL) must be complete with all necessary Customs requirements including the name of your Custom Broker.

Use the CP BOL and instructions provided to ensure all your information is complete.

Not Supplying the Broker name on your BOL: You must alert CP immediately to prevent penalties and delays.

Customs Manifest: This manifest is created automatically by CP at the time of waybilling (except for U.S. import traffic through a U.S. ocean port).

The CP Customs Manifest is created from your Bill of Lading information. You must provide any information required on the manifest up front.

Providing inadequate commodity descriptions: Descriptions such as "FAK (Freight of All Kinds), "Chemicals", Household Goods" are not sufficient. As a rule of thumb, Customs agencies advise that Shippers should use the terms that can be understood easily by the average person.

Commercial Invoices: Required by your Broker to file an entry against the CP manifest.

Make sure the documents are delivered to your Broker on time and that they acknowledge receipt.

Not providing correct documentation to the Customs Broker: In the end, if the shipment is set-off, the Shipper will receive supplemental service charges from CP.

Certificates of Origin - (two types): 1. Shipments of grain that move

from a U.W. origin to a U.S. destination through Canada require certification and must be approved by the Canadian Food Inspection Agency (CFIA)

2. NAFTA certificates are required to certify N.F.T.A. duty-free eligibility for specific commodities. Your Broker can advise you of what is needed for your shipment.

These certificates must be delivered to CP with your BOL.

Waybilling the shipment, then sending the certificates: This often results in delays and penalties due to missing documentation.

Canadian Automated Export Declaration (CAED) Required for all shipments exported from Canada to a country other than the U.S... Some Shippers can qualify for summary reporting for exports, rather than presenting a CAED or a B13A with each shipment.

Provide theB13A document or the Summary Reporting Number to CP with your Bill of Lading, as well as to your Broker – to ensure the documentation is on hand when your shipment reaches the border.

Missing documents/information: If your shipment is stopped at the border by Canada Customs due to missing the B13A, or Export Number, you will be subject to the CP Customs surcharge and your shipment could be subject to CBSA penalties or seizure.

continued....


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...Document Hints and Tips

Documents Required Canada (origin)

U.S. (origin)

Hints and Tips Common Mistakes/ Consequences of Failure

Automated Export System (AES) Number: This is an electronic form used for all shipments exported from the U.S. to a final destination other than Canada.

Ensure that all provided information is correct. Always provide the required AES citation in the N9 segment of your EDI BOL.. Two citation options exist: The Internal Transaction Number (ITN), or the Post Departure Filing (PDF) filing. This information exceeds the filed length of EDI reporting standards. Do not include blank spaces between the characters.

Providing an AES Number that has been used before: AES Numbers can only be used once. The commodity description submitted to CP must match that reported through the AES system. Failure to provide accurate information can cause delay and even seizure and penalization by U.S. Customs. Not entering sufficient AES data for rail: The rules for ocean and rail shipments are different. The data for your rail shipment must be filled out before your shipments leave the U.S.

Export or Import Licenses: Required for select commodities.

A Customs Broker can advise you on what export documents you need.

Food & Drug Administration (FDA) Prior Notice (PN): Required by your Broker to file a P.N. against the CP manifest for all food and food products consumable by humans or animals imported to the U.S.

Ensure that you or your customer's production facility is registered with the U.S. FDA PN system

Late Broker filing: Resulting in shipment delay and supplemental penalties.

Shipper Owned Bonds

Not supplying the correct bonds for transportation: You are not only subject o CP's Customs surcharge, but also to Customs fines and penalties.

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Additional Customs Clearance Information

• Provide all necessary information up front – Most delays occur because some information was not provided on the Shipper's BOL and therefore is not on the CP manifest or the Broker's documentation.

• Get a Broker that understands rail – The cheapest Broker may cost you

money in delays and charges from Customs (Canada and U.S.), or your carrier. CP charges $550 For all carload set-offs caused by Broker or customer failure to provide documentation or clearance, in order to recover some of the costs incurred in setting off and lifting cars.

• Delayed Shipments – CP issues a $550 supplementary service charge

for all carload shipments that are delayed due to Customs clearance problems, or Customs infractions resulting from the action of the Shipper, Consignee or Broker. And, CP may also issue the surcharge on traffic selected for inspection by U.S. or Canada Customs. The $550. carload charge does not include additional fines that may be levied by Customs or other government departments. Related Intermodal charges are $750. per container.

• Improper Declaration – In Canada, a second surcharge of $85. per day

may also be levied by CP on shipments held by Customs for an extended period of time. This charge is to recover asset utilization costs.

• Use PARS – CP will apply a $55. surcharge to all Canadian carload

shipments not cleared at the border.

Note: Please consult Tariff 2 for carload supplemental services information.

Please consult Tariff's 7000 and 7800 for Intermodal related supplemental service information.


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Following is an example of a Paper BOL... To make your document processing easier and more cost effective, submit your Billing by EDI.

CP – Bill of Lading

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Preparing a Proper Bill of Lading Trans-border shipping involves numerous documentation steps that must all be performed according to specific standards set by Customs and other government agencies. Customs agents pay extreme attention to details, so whether filing electronically or manually, make sure your information is:

easy to read

accurate

up-to-date

Once your documentation is complete, forward it to your Customs Broker immediately for quick processing. To prevent delays, fines and penalties, and in addition to all of your other BOL requirements, your Bill of lading must accurately report the following:

1. Shipper Name / Address 9. Weight and unit of measure

2. Exporter Name / Address (if different from the Shipper) 10. Destination Port and Country

3. Consignee Name / Address 11. Commodity description (specific and detailed Not FAK)

4. Importer Name / Address (if different from the Consignee) 12. Type of customs entry required

5. Broker name / Address 13. CBSA CAED B13 A or Summary Report Number

6. Country of Origin 14. AES Filing or Exemption Citation

7. Value of Shipment and specific Currency 15. Seal Numbers

8. Piece count


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An Easy BOL Guide Here are some simple instructions to help you complete a basic Bill of lading. Numbers refer to boxes on the sample BOL provided. To make your document processing easier, you can fill out a Bill of Lading online through

http://www8.cpr.ca/english/customers/mycpr/default.htm

1. Equipment Initial/Number: Identification number on the transportation container, trailer or railcar

2. Bill of Lading # / Shipment ID: Please double check for accuracy

3. Load or Empty: Indicates a loaded or empty transportation unit

4. Origin: City, Province/State

5. Destination: City, Province / State

6. Routing: Specify route, railways and interchange cities where the unit will move, if other than CP

7. Receiver/Consignee: Company name of ultimate receiver of goods, a complete address and phone number, and a contact party

8. Shipper/consignor: Company name of the Shipper of goods, a complete address and phone number, and a contact party

9. Bill Freight Charges To: Party paying the freight charges

10. Prepaid of Collect: Indicate method of payment

11. Rule 11: Specify whether this is a Rule 11 shipment

12. STCC #: Standardized Transportation Commodity Code Number

13. Harmonized Sys. Code: Numerical code for the commodity shipped from the Customs Harmonized Tariff

14. Seal #: Number on the seal on transportation unit

15. Piece Count: Number of packages

16. Pkg. Type: Description of goods (e.g. cartons, pallets)

Continued...


http://www8.cpr.ca/english/customers/mycpr/default.htm


12/19/2008 19

An Easy B.O.L. Guide Continued

17. Commodity Description:

Provide detailed description of commodity. Do not specify brand names or part numbers. Descriptions such as "FAK (Freight of All Kinds)", "Chemicals", Household Goods", or even "Sporting Goods" are not sufficient. As a rule of thumb, Customs agencies advise that Shippers should use terms that can be understood easily by the average person. An example may be "Golf Clubs and Golf Balls" – instead of "Sporting Goods"

18. Weight (kg./lb.), Agreement #:

Indicate weight of goods being shipped. If you are a Weight Agreement customer, give the Weight Agreement number (note that new U.S. legislation holds Shippers responsible for adherence to U.S. intermodal Weight Certification requirements)

19. Unit Price: The price of each individual unit within the shipment

20. Total Value: Piece count multiplied by the unit price for each line on the bill of Lading. The value should be in either Canadian or U.S. currency depending on the destination

Customs 21. Importer name: If other than Consignee

22. Broker name: Name of the Customs Broker filing entry on behalf of the Importer

23. Address: Importer street Address, City, Province, or State, Postal or ZIP Code

24 Country of Origin: Country where the goods were produced

25. Port of Exit: Port and Country from which goods are departing

26. Value Currency: Indicate the total invoice price of goods shipped

27. Destination Port & Country: Port and Country to which goods are destined

28. Manifest From: The port where the goods begin their bonded movement

29. Manifest To: The port where the goods will end their bonded movement

Continued...



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An Easy B.O.L. Guide Continued

30. IRS #: Tax number of the U.S. Importer for U.S. Customs

31. C4 or Bar Code #: Numerical equivalent of a bar code. Identifies Importer and line-release participants

32. Customs Entry Type: Customs clearance process being used

33. Is this a CSA shipment?: Yes or No

Intermodal 34 Special Instructions: e.g. Perishable, stop-offs and deliveries for Intermodal

traffic

35. Shipment Pick-up Date and Time:

Fill in year, followed by month, day and time in order specified

36. Intermodal Service Type: Select one

37. Length of Unit/Height of Unit: Shows size of transportation unit

38. Notify Party & Phone: Number and phone number of party to be notified when goods arrive at destination. Should be a local party

39. Delivery to be Performed by: Party delivering unit after it reaches destination

40. Delivery Date and time: The appointed date and time that the Customer arranges with the local rail terminal for delivery of the shipment to the Customer's dock.

41. Contract # / Quotation # / Steamship Booking #:

Rate-quotation reference ensures that correct charges are levied

42. Signature of Shipper/Exporter

43. Signature of CP Agent


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EDI Protocol Here is a quick reference table to assist you with your EDI billing requirements.

Data Requirements E.D.I. Field Unit/equipment initial and number N7*01

N7*02 Rail origin Rail destination

F9 D9

Routing R2 Consignee name N1*CN Country of origin of the shipment CM*14

CM*02 = L Consignee address (street address, city, province/state and postal/zip code)

N1*CN N3*01

Ultimate Consignee N1*UC Country of destination for the shipment CM*14

CM*02 = L Shipper name N1*SH Shipper address (street address, city, province/state and postal/zip code)

N1*SH N3*01 N4*01

Ship from N1*SF Customs Broker Canadian U.S. Mexican

N1 N1*QR N1*XU N1* XR

U.S. freight forwarder (shipments to Mexico) N1*FW Department number N1*04 Value and Currency XH*04

XH*01 or

XI*11 Shipper bond information M12 Piece count and unit of measure L0*08

L0*09 Accurate and specific description of the goods L5*02 Weight and unit of measure N7*03

L0*04 Seal number M7*01

M7*02 continued...

E.D.I. Protocol


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EDI Protocol Continued...

All shipments from Canada traveling via the U.S. to a third Country also require: Canada customs B13A, summary # or CAED number N9*01

N9*02 United States port of exit N/A Ultimate port of destination and Country CM or N10

All shipments from the U.S. traveling via Canada to a third Country also required: ITN or PDF number U.S. census

N9*01 N9*02

All shipments fro the U.S. to Canada U.S. census exemption code N9*01

N9*02

E.D.I. Protocol

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Common Cross-Border Questions

Q. How do I choose the right Customs Broker?

A. Like all things in life, you get what you pay for. A customs Broker who is familiar with the rail business can anticipate and prevent problems that you may have missed. Check to ensure a Customs Broker can provide coverage at any border crossing you might use, has a good reputation with Customs agencies, and the rail carrier, and is familiar with rail transportation.

Q. How do CP and my Customs Broker work together?

A. CP recognizes many reputable Customs Brokers across North America. We can automatically send a Customs manifest to your Customs Broker. All you need to do is ensure that the Broker's name in on your Bill of Lading in full, and is spelled correctly. We will also let your broker know when your shipment is headed to the border.

Q. I'm a new customer to CP. Where do I send my Customs documents?

A. Your Customs Broker can give you advice on the appropriate documents and where they should be sent. For more information on rail-specific documentation for your specific traffic pattern, call CP customer service at 1-888-333-8111

Q. There are many methods to clear my traffic into Canada. Which is the best?

A.

Effective January 01, 2009 CP will require all Canadian-bound shipments to be cleared in advance of border arrival by CBSAs Pre-Arrival Review System (PARS). A supplemental service charge will be applied to all shipments not filed through PARS PARS is Canada Customs Pre-Arrival Review System, which allows your Broker to file an entry up to 30 days prior to your car arriving at the border. It ensures that when your car enters Canada, it is released and ready to deliver to you or your customer. Filing PARS reduces expensive delays, and unnecessary re-work.

Common Cross-Border Question


12/19/2008 24

Q. I want CP to apply a particular type of bond to my shipments into the U.S., and I have the ability to provide M12 bond information on my ED Bill of Lading (404) to CP. – What should I do?

A. Please contact your Account manager or Customer Service at 1-888-333-8111 for further details.

Q. I would like to send my Line-Release data to CP using my EDI Bill of Lading (404). Can CP accept this information electronically?

A. Yes. CP's Customs Application can accept line-release (C4) codes from a customer's electronic Bill of Lading or 404. This data would have to reside in the N9*09 segment. However, the following rules and procedures apply:

The Broker's name (N1*CB) must be provided and must match the line-release code. For example, a 404 containing "Broker A" as a broker, and a "Broker B" line-release code will be rejected. A 404 with missing broker data and line-release code will obviously be rejected as well. U.S. Customs must validate the line-release code. Your Customs Broker is responsible for this validation. Line-release applies only to border-clearance traffic. DO NOT send line-release data for bonded traffic, such as shipment to Mexico, which involve transportation and Exportation (T&E) Bonds.

Q. I am about to fill in my "Bill of lading". In the past, I've typed FAK in as the commodity description. Is there any problem if I continue to do so on trans-border moves?

A. Yes, this is a problem. Border Agencies will not accept shipments with FAK. It is very important to ensure that your commodity description is descriptive, and yet easily understood. For example, a description of "sporting goods" is not sufficient. You must detail the types of sporting goods, such as baseball bats or golf clubs. If there are multiple commodities in the shipment, please list them all.

Common Cross-Border Question

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A c r o n y m s

ABI Automated Broker Interface

ACROSS (Canada Customs) Accelerated Commercial Release Operations Support System

AES Automated Export System

AMS Automated Manifest System

CAED Canadian Automated Export Declaration

CP Canadian Pacific

CSA Customs Self Assessment

CWB Canadian Wheat Board

BOL Bill of Lading

EDI Electronic Data Interchange

EEI Electronic Export Information

EIN Export Import Number

INPARS Inland Pre-Arrival Review System

IRS Internal Revenue Service

IT (Canada) In-Transit Bond

IT (U.S.A.) Immediate Transportation Bond

ITN Internal Transaction Number

NAFTA North American Free Trade Agreement

PARS Pre-Arrival Review System

PDF Post Departure Filer

RMD Release with Minimum Documentation

SED Shippers' Export Declaration

STCC Standardization Transportation commodity Code

T&E Transportation and Exportation Bond

U.S. FDA Food and Drug Administration

USPPI U.S. Principal Party in Interest continued...

Glossary

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T e r m s

Accurate and Specific Description of Goods

Shipping instructions must include a full and detailed description of all contents of a shipment (not FAK).

Automated Broker Interface (ABI) The electronic link between the U.S. Customs Broker and U.S. Customs Service.

Automated Export System (AES)

The U.S. Census Bureau's Automated Export reporting System used to file export information on shipments bound for over seas or Mexico. The system-generated ITN must be reported on EDI billing instructions to CP.

Automated Manifest System (AMS)

The automated system used by U.S. Customs Carriers and Brokers to control customs transactions.

B13A Canadian export declaration option. Statistics Canada requirement for goods of Canadian origin going to any country other than the U.S. This document must be stamped by Canada Customs prior to loading. The number must then be reported on the Shipper's EDI billing. CAED is a better option. Details follow below.

B3B A multiple-car paper RMB entry.

Bond Promise by the issuing party to the responsible Customs agency that goods will be held until all applicable duties and taxes are paid, and the shipment is legally released in the commerce of the destination country.

Canadian Automated Export Declaration

(CAED)

Electronic variation of B13A Statistics Canada reporting requirement. For shipments destined for all countries excluding the U.S. CAED's must be reported on Shippers EDI billing.

Consignee Name Name of the party taking delivery of the shipment.

Customs Bill Also known as "cargo manifest", "cargo control document", "carrier's bill", Customs bill" – it provides Customs information on goods being carried, although it's not as detailed as the commercial invoice (the Bill of Lading may be a Canadian, U.S. railway, or ocean manifest).

Customs Broker One who acts as an agent for others in filing Customs documentation in return for a fee or commission. The Broker most commonly works on import releases, but may also assist with export documentation.

Customs Clearance (Customs Release)

The import process of Customs authorities of the country into which goods are being shipped. During the process, the formal entry by the importer (or Broker) is matched with the carriers' manifest information, and reviewed by a Customs Inspector. The Inspector then decides to either hold the goods for inspection, or to release them to the Importer.

Entry Documentation filed by a Broker to a Customs Authority to have goods cleared by Customs, and to pay relevant duties and taxes.

Export Permit Export Requirement before exiting a country. For example, the Canadian Wheat Board permits for exports of wheat or barley or manufactured products with 25% content of wheat/barley.

Glossary


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T e r m s

Exporter The party responsible for providing export documentation to the country of export. This may or may not be the Shipper.

FAK Represents "Freight of all Kinds", a general descriptor used for shipments containing mixed products. FAK is an unacceptable description for trans-border shipments.

Import Permit Import requirement before allowing entry of shipment, often tied to quotas or other restrictions.

Importer (of record) The party responsible for having goods cleared through Customs, and paying any duties and taxes. While the Importer is often the Consignee or ultimate Consignee receiving the shipment, it may also be another party such as a middleman or wholesaler.

Invoice (Letter of Value, Invoice and Packing List)

The commercial invoice provides details of transaction between a Buyer and Seller, including specifics of goods and quantities sold. It is usually prepared by the seller.

Manifest Is usually a listing of all Bills of Lading on a conveyance (ship, aircraft, and train), but railway industry now uses an individual cargo manifest per car/container/trailer.

Pedimento The Mexican equivalent of entry. It refers to the documentation bundle submitted by a Broker to Mexican Customs for release and payment. The pedimento process may be used for export controls as well.

Proforma This is an abbreviated commercial invoice where the Importer, Broker, and Shippers are known to each other.

Railway Waybill For non-automated Carriers, this is usually used as the Customs Bill. It provides Customs authorities with basic information about what goods are being carried in the car or container. It provides a level of information found in a manifest, and is less detailed than an Invoice.

Shippers' Export Declaration (SED)

A U.S. Census requirement for goods of U.S. origin to any country other than Canada. Shipment details must be reported electronically through the AES system by the USPPI or Agent. The AES, ITN, or PDF number must be reported to the Exporting Rail Carrier.

Shipper Name name of ultimate or originating Shipper

Ultimate Port of Destination and Country The final destination of a shipment that is traveling through the U.S. in transit.

United States Port of Exit The point at which a shipment exits the U.S. to the destination country.

Value and Currency Value in Canadian or U.S. dollars.

Weight and Unit of Measure Weight in a standard measurement.

Glossary

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C o n t a c t s / I n f o r m a t i o n / R e l a t e d L i n k s

Additional Industry Contacts Canada

Canada Customs: www.ccra-adrc.gc.ca Virtual Canada Customs Office at Canada Customs: www.ccra-adrc.gc.ca/vco Canadian Society of Customs Brokers (C.S.C.B.)

can provide contacts for Canadian Customs clearance: Suite 320, 55 Murray Street Ottawa, OT K1N 5M3 email: [email protected] Phone: 613-562-3543

Canadian Pacific Railway www.cpr.ca Canada (24/7)

Shipment Transit and Problem Resolution 1-888-333-8111 Bill of Lading Documentation Questions 1-899-704-4000

United States (24/7) Customer Service 1-888-872-8720

United States U.S. Customs Service: www.customs.treas.gov

U.S. Customs/U.S. Census Automated Export System: www.aesdirect.gov National customs Brokers and Forwarders Association of America (NCBFAA) – will provide a list of U.S. southern border Brokers:

The National Customs Brokers & Forwarders Association of America Inc. 1200 18th Street N.W., Number 901 Washington, DC 20036

email: [email protected] Phone: 202-466-0222 Website: www.ncbfaa.org Fax: 202-466-0226

http://www.cpr.ca/English/default.htm?1

http://www.cra-arc.gc.ca/

http://www.cra-arc.gc.ca/

http://www.customs.gov/

http://www.aesdirect.gov/

http://www.ncbfaa.org/

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