[Federal Register Volume 62, Number 170 (Wednesday, September 3, 1997)]
[Notices]
[Pages 46551-46552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-23255]
[[Page 46551]]
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DEPARTMENT OF THE TREASURY
Customs Service
Announcement of Program Test: Simplification of In-Transit Truck
Shipments Between Canada and the U.S.
AGENCY: Customs Service, Treasury.
ACTION: General notice.
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SUMMARY: This notice announces a joint U.S. Customs and Revenue Canada
Customs plan to conduct a pilot test of simplified procedures
regulating the in-transit movement of truck shipments transiting Canada
and the United States. The simplified procedures reduce the number of
processing steps or stops required of a carrier transiting either
Canada or the United States from four to two. This notice also invites
public comments concerning any aspect of the planned pilot test
program.
EFFECTIVE DATES: The test of this pilot program will commence no
earlier than October 8, 1997, and will run for approximately six
months, with evaluations of the program occurring periodically.
Comments must be received on or before October 2, 1997.
ADDRESSES: Written comments regarding this notice should be addressed
to Walter Lechowski, East Great Lakes Customs Management Center, Floor
3, Building 10, 4455 Genesee Street, Buffalo, New York 14225-1928.
FOR FURTHER INFORMATION CONTACT:
For U.S. Customs issues: Walter Lechowski, (716) 626-0400, ext.
203.
For Revenue Canada Customs issues: Bryan Daly, (613) 954-7081.
SUPPLEMENTARY INFORMATION:
Background
With a long history of working together, Canada and the United
States have much in common. The Customs Services in each country
operate more and more in a similar fashion because they are faced with
many of the same problems and challenges associated with the rapidly
changing business and economic environment. Trade between Canada and
the United States is a billion dollar a day proposition. Tourism
provides millions of jobs for Canadians and Americans. More than 100
million travellers cross our common border each year. This environment
brings with it the threat of guns, smuggling, drugs, and crime.
Conversely, our citizens and customers are therefore demanding better
service and protection at less cost.
In response to these demands, on February 24, 1995, at a Summit in
Ottawa, Canada, President Clinton and Canadian Prime Minister Chretien
announced agreement on a Canada/United States Accord on our Shared
Border for enhancing the management of the U.S.-Canada border. See, 31
Weekly Comp. Pres. Doc. 305. The Shared Border Accord sets out common
objectives and specific initiatives to promote trade, tourism, and
travel between the two countries by reducing barriers for legitimate
importers, exporters, and travelers, while strengthening enforcement
capabilities to stop the flow of illegal movement of goods and reducing
costs for both governments and users. One of the common objectives of
the Shared Border Accord is to promote international trade by adopting
the best practices of each country to permit commercial goods and
legitimate travellers to flow easily between both countries.
To aid in the development of this objective, Revenue Canada Customs
and U.S. Customs jointly propose a change to the current procedures
concerning the reporting and control of truck shipments transiting
Canada between ports in the U.S. and truck shipments transiting the
U.S. between ports in Canada. The present United States regulations
applicable to in-transit truck traffic between our two countries are
set forth as subpart E of part 123 of the Customs Regulations (19 CFR
part 123, subpart E) and require such traffic to report to a Customs
facility a minimum of four times: once in crossing the border bound for
the other country; twice while in the other country, i.e., once when
arriving and once when departing; and once again when reentering the
country of destination. The procedural change proposed in this document
for this type of international traffic will eliminate the first and
third check stops. Accordingly, the reporting requirements contained at
Secs. 123.41 (b) and (c)(2) of the Customs Regulations, concerning
truck shipments transiting Canada, and 123.42 (b) and (d) of the
Customs Regulations, concerning truck shipments transiting the U.S.,
will be suspended during this pilot test procedure. This test procedure
will apply along the entire border area between Canada and the U.S. and
will not otherwise affect the procedures relating to other forms of
shipments, such as those relating to transportation and exportation
shipments. Significant financial and safety related benefits for
commercial highway carriers and bridge operators are anticipated;
carriers should enjoy a reduction in travel time; and bridge operators
should enjoy less truck congestion at outbound lanes, and greater
driver safety since truck drivers will no longer need to cross active
traffic lanes to reach Customs offices from outbound lanes. Compliance
examinations conducted by both Customs Services will enhance
enforcement, and provide a basis for formulating threat assessments.
The implementation date for a test of these new procedures is
October 8, 1997. Upon implementation, both Customs Services will begin
an evaluation period of at least six months to ensure the effectiveness
of the program and to identify any short falls. If the program is
successful, both Customs Services will begin the process to change
current regulations to make the new procedure permanent.
For programs designed to evaluate the effectiveness of new
technology or operations procedures regarding the processing of
passengers, vessels, or merchandise, Sec. 101.9(a) of the Customs
Regulations (19 CFR 101.9(a)), implements the general testing
procedures. This test is established pursuant to that regulation.
The Present In-Transit Procedure
Stop #1 (exiting the first country)--A commercial carrier
transiting either Canada or the U.S. is required to stop at the
domestic port of departure to have its movement authorized by having
the in-transit manifest stamped.
Stop #2 (arriving in the other country)--Upon arriving in the other
country, the commercial carrier is required to stop so that foreign
Customs can further process the movement; the manifest is stamped again
and the top copy is retained by foreign Customs; an inventory is
created to control the merchandise while in the country.
Stop #3 (exiting the country transited)--Upon exiting the country
transited, the commercial carrier is required to stop again so that
foreign Customs can cancel the manifest; foreign Customs retains the
second (blue) copy of the manifest.
Stop #4 (re-entering the first country)--Upon re-entry into the
first country, the commercial carrier is required to stop again so that
domestic Customs can further process the manifest to facilitate entry
of the merchandise; domestic Customs retains the third (green) copy of
the manifest; the driver is given the fourth (pink) copy of the
manifest.
For example, in a trip from Michigan to New York that transits
Canada, the driver for a commercial carrier must stop at U.S. Customs
in Port Huron, Michigan, to have the manifest stamped
[[Page 46552]]
to authorize this movement. Then, upon arrival in Sarnia, Ontario,
Canada, the driver must stop again so that Canadian Customs can process
the manifest by stamping and removing the top (white) copy. The driver
then proceeds through Ontario to the port of exit at Queenston,
Ontario. At Queenston, the driver must stop again so that Canadian
Customs can further process the manifest by retaining the second (blue)
copy. The driver then proceeds to Lewiston, New York, and stops again
so that U.S. Customs can finalize the process by retaining the third
(green) copy. The fourth (pink) copy of the manifest is returned to the
driver. This process works the same way when commercial carriers in
Canada transit the U.S. for return to Canada.
The Proposed In-Transit Procedure
Old stop #1 no longer required--Commercial carriers transiting
either Canada or the U.S. will no longer be required to stop at the
domestic port of departure to initiate the in-transit movement. Drivers
will proceed directly to the other country.
New stop #1 (arriving in the other country)--Arriving in the other
country, the driver stops so that foreign Customs will review the
manifest for accuracy and verify that the merchandise does qualify for
this movement. The foreign Customs will confirm the residency of the
driver and, if all is in order, stamp the manifest, noting seal numbers
where applicable.
Old stop #3 no longer required--Drivers will now proceed to the
port of entry for the first country for re-entry.
New stop #2 (re-entering the first country)--Upon re-entry into the
first country, the driver will stop so that domestic Customs can
complete the processing of the manifest; the second (blue) copy of the
manifest will be returned to the other country's Customs. The Customs
Service of the first country retains the third (green) copy of the
manifest, and the driver is given the fourth (pink) copy of the
manifest.
Thus, in the example above, the driver departs the U.S. at Port
Huron, Michigan. Arriving at Sarnia, Ontario, Canada, the driver stops
and Canadian Customs initiates the process, noting seal numbers where
applicable, stamping and retaining the top (white) copy of the
manifest. The driver then proceeds through Ontario to the U.S. port at
Lewiston, New York. There, the driver stops and U.S. Customs finalizes
the process, stamps the manifest and retains the second (blue) and
third (green) copies; the fourth (pink) copy of the manifest is
returned to the driver. U.S. Customs will return the second (blue) copy
of the manifest to Customs in Canada, following local agreement on
transmittal procedures. This process will work the same way when
commercial carriers in Canada transit the U.S. for return to Canada.
During the test, U.S. Customs may continue to use the Customs Form
7512(C) (CF 7512(C)--Destination) as a source for the ``Transit
Manifest No.'' for carriers transitting the United States.
Regulatory Provisions Affected
During the In-Transit truck shipment test, the normal departure
reporting requirements of subpart E of part 123 of the Customs
Regulations (19 CFR part 123, subpart E) will be suspended. These
reporting requirements are contained at Sec. 123.41 (b) and (c)(2) of
the Customs Regulations, which concerns truck shipments transiting
Canada, and Sec. 123.42 (b) and (d) of the Customs Regulations, which
concerns truck shipments transiting the U.S.
Enforcement Provisions
The transportation of restricted or prohibited merchandise is not
permitted during the pilot test, and participants will be subject to
civil and criminal penalties and sanctions for any violations of U.S.
Customs laws.
Both Customs agencies will be conducting statistically valid
compliance examinations on in-transit carriers, and both Customs
agencies will be formulating risk assessments using the Compliance
Measurement results.
Comments and Evaluation of Test
Customs will review all public comments received concerning any
aspect of the test program or procedures, and finalize procedures in
light of those comments. Approximately 120 days after conclusion of the
test, evaluations of the test will be conducted and final results will
be made available to the public upon request.
Dated: August 22, 1997.
Robert S. Trotter,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 97-23255 Filed 9-2-97; 8:45 am]
BILLING CODE 4820-02-P
