Transportation Border Working Group

1
Transportation Border Working Group

• Towards a More Secure and Efficient Border
• Facilitation and Security in
• North American Trade and Transportation
• Washington, DC
• April 30, 2004

2
NAFTA Trade

• U.S.-Canada Trade
• 1993 211 billion
• 2003 393 billion
• U.S.-Mexico Trade
• 1993 81 billion
• 2003 235 billion
• Role of Trucks in NAFTA
• U.S.-Mexico Trade 81 trade value
• U.S.-Canada Trade 69 trade value
• Sources International Trade Administration, U.S.
  Dept. of Commerce and Bureau of Transportation
  Statistics

3
NAFTA Surface Trade
Billions
73
Total
52
CA
126
MX
Source Bureau of Transportation
Statistics Includes exports imports for all
surface modes, value
4
Mexican Surface Trade
Billions
118
Truck
157
Rail
28
Other
Source Bureau of Transportation
Statistics Includes exports imports for all
surface modes, value
5
Canadian Surface Trade
Billions
40
Truck
38
304
Rail
Other
Source Bureau of Transportation
Statistics Includes exports imports for all
surface modes, value
6
Congestion and Infrastructure

• Truck crossings
• Over 14 million N. border, 8 million S. border
• Congestion at borders
• Hard on drivers and equipment
• Environmental impact
• Increase cost of goods on consumers
• Infrastructure Development
• TEA-21 700 million for border infrastructure
• New Reauthorization Border vs. Corridors
• Borders 1billion House, 1.13 Senate
• Corridors 3.3 billion House, 1 billion Senate
• Physical infrastructure technology needs

7
Aftermath of 9/11

• Legislative initiatives
• USA PATRIOT Act (2001)
• Aviation and Transportation Security Act (2001)
• Enhanced Border Security Act (2002)
• Maritime Transportation Security Act (2002)
• Bioterrorism Act
• Safe Explosives Act (2001)
• Homeland Security Act (2002)
• Regulatory Initiatives

8
Enforcement Facilitation

• Customs
• U.S. ACE/ITDS, CTPAT/FAST
• Canada PIP/FAST
• Mexico FAST
• Immigration
• Entry/Exit Control System (U.S.VISIT)
• Transportation Security Agency
• Functional, Cross Modal Planning
• Container Security (International) Rules
• Worker Credentialing

9
Free and Secure Trade (FAST)

• FAST Facilitate trade secure supply chain
• FAST N. Border (12/02)
• C-TPAT/PIP cargo (importer)
• Highway carrier agreement
• FAST driver registration (50)
• FAST S. Border (9/03)
• C-TPAT cargo (importer manufacturer)
• Highway carrier agreement (even if N. border
  approved)
• FAST driver registration
• Seals requirements

10
Automated Commercial Environment/ International
Trade Data System

• Critical process for Motor Carriers
• Increment 1, Release 2 will result in creation of
  electronic truck manifest (Spring 04)
• Finalize truck manifest for motor carriers by
  March/April for the Customs/eCP by mid-May
• ITDS now part of eCustoms Partnership
• Part of ITDS Census, FDA, INS, Customs
• 20-30 other agencies expected to sign on

11
Trade Act of 2002 Section 343(a)

• Final Rule implementing Trade Act of 2002
• Inbound
• 30 minutes (FAST) 1 hour (non-FAST)
• No communication back to MC
• PAPS and FAST(NCAP) Release mechanisms
• Implement at POE 90 days after FR notice
• LTL/Expedited FAST carriers expedite secondary
• Outbound
• Automated Export Systems (AES) Shipper Export
  Declaration (SED)
• USPPI to submit data
• Carrier ID (SCAC), Carrier name, Destination
  carrier identifier
• Timeframe 1 hour prior to departure

12
Background Checks

• Patriot Act CDL-HME
• Safe Explosives Act of 2002
• Effective Jan. 24th, 2003 prohibits certain
  persons from possessing explosives includes
  aliens, i.e. Canadian and Mexican drivers
• TSA DOT Retain exclusive jurisdiction of
  Hazmats (Patriot Act).
• Transportation Worker ID Card (TWIC)
• Need for harmonization of checks

13
U.S. VISIT

• Entry/Exit Immigration Control System
• Air/Seaports Dec. 2003 Land Ports Dec. 2004
• ATA Focus
• Must take known entities, FAST/CTPAT into
  consideration
• Aggressively implement Border Accords with Canada
  and Mexico
• Provide greater resources at POEs for human,
  technology and infrastructure needs
• Border Infrastructure costs
• DMIA out, CWG back in

14
Conclusion

• Trucking essential to NAFTA Trade
• Uniformity and Interoperability
• Must balance enforcement and trade facilitation
• Closer cooperation among
• Government agencies and trade community
  information and possible intelligence sharing
• U.S. government agencies better database
  interconnectivity and information/data exchange
• North American government agencies Canada,
  Mexico U.S. develop better information/data
  exchange mechanisms for tracking entry/exit of
  cargo and people