Free And Secure Trade FAST

1
Free And Secure Trade (FAST)

• A Harmonized Commercial Process for
• pre-approved low risk goods

2
STRATEGIC DIRECTION

• Canada and the United States are working together
  to
• End threats to public security and safety
• Keep their shared border open to the free flow of
  low-risk, legitimate trade by adopting a common
  approach to risk management
• Partner with trade community members who have a
  history of compliance and are committed to the
  integrity of their supply chain management
  processes, using compatible and advanced
  technology

3
BACKGROUND

• On June 28, 2002, Deputy Prime Minister John
  Manley and U.S. Director of Homeland Security Tom
  Ridge announced a new program called Free And
  Secure Trade (FAST)
• FAST is a harmonized program between CCRA, CIC,
  USCS and USINS
• The program offers expedited clearance processes
  for eligible goods to pre-authorized importers,
  carriers and drivers
• In Canada, the CSA program is the foundation for
  FAST

4
BENEFITS

• FAST shipments will be cleared into either
  country with greater speed and certainty and at
  reduced costs of compliance by
• Reducing the information requirements for customs
  clearance
• Eliminating the need for importers to participate
  in the transmission of data for each transaction
• Dedicating lanes for FAST clearances
• Reducing the rate of border examinations
• Conducting trade compliance verification away
  from the border
• Streamlining accounting and payment process for
  all goods imported by approved importers (Canada
  Only)

5
FAST PARTICIPANTS

• Importers
• Carriers
• Drivers

6
IMPORTERS

• Importers importing into Canada and wishing to
  participate in FAST must be
• Customs Self-Assessment (CSA) approved
• Partners in Protection (PIP) participants
• Importers importing into the United States
  wishing to participate in FAST must also be
  Customs-Trade Partnership Against Terrorism
  (C-TPAT) participants

7
CARRIERS

• Carriers seeking approval to move goods between
  Canada and the United States under the FAST
  program must
• Be Customs Self Assessment (CSA) approved
• Sign a Memorandum of Understanding (MOU) with PIP
  and C-TPAT as well as have acceptable
  security practices

8
DRIVERS

• Drivers applying to the FAST program will qualify
  if they are
• Citizens or permanent residents of the U.S. or
  Canada
• Admissible to Canada or the U.S. under applicable
  immigration laws and have no criminal record for
  which they have not received a pardon,
  rehabilitation and/or waiver
• Of good character

9
DRIVER APPLICATION PROCESS

• To apply, drivers must
• Provide true and complete information on the
  application form as well as required
  documentation
• Pay a processing fee of 50.00 U.S. or 80.00 Cdn
• NOTE Approval of the application must be granted
  by both Canada and the United States. If a
  driver does not meet the requirements of both
  countries, the application will be denied

10
DRIVER APPLICATION PROCESS (contd)

• Once the driver qualifies, they will be invited
  to visit the enrollment centre for final
  processing. During this stage, Canada Customs
  will
• Review the information provided on the
  application form to ensure it is still valid
• Review original documentation such as proof of
  citizenship, residency, work permits, and/or
  visas
• Take a full set of fingerprints (10 finger print)
• Take the drivers photo for their FAST Commercial
  Driver Registration identification card
• Explain the terms and conditions of the FAST
  Driver program

11
PARTNERS IN PROTECTION

• Two new MOUs developed (General Carrier) and
  final approval is pending
• Internal/external consultations conducted
  supportive
• PIP and C-TPAT elements are compatible
• New MOUs have significant focus on security
• Participants must complete a self-assessment of
  current security measures using the Security
  Questionnaire (Identical for PIP and C-TPAT)

12
PARTNERS IN PROTECTION (contd)

• Security recommendations are being developed to
  assist participants to complete the questionnaire
  (in conjunction with U.S. Customs)
• Other elements of the partnership, such as
  information exchange and awareness sessions, are
  strengthened
• Wider participant base to include other entities
  in trade chain such as importers, warehouse
  operators, brokers, etc. as well as carriers
• PIP participation will be considered when making
  risk determinations for cargo exams
• Streamlined application process, MOUs will be
  available on the internet site

13
CLEARANCE PROCESS

• At the border, Customs asks for minimal
  information about the shipment, clearance occurs
  at first point of arrival, most often at the
  Primary Inspection Line (PIL), and when cleared,
  goods are delivered directly to the importer,
  owner or consignee
• Minimal information would be bar codes that
  identify the importer, carrier and driver (on
  CDRP card) for Canada
• After goods are received, the importer
  self-assesses what goods were imported, the
  reporting of B3 trade data, and revenue amounts
  payable or refunded

14
CHANGES TO ACCOUNTING AND PAYMENT

• The importer triggers accounting for goods from
  their own business systems
• Accounting timeframes are extended
• Date of release is date of receipt
• Revenue amounts are self-assessed on a single
  Revenue Summary Form (RSF)
• Payment is made to a financial institution
• Self-adjustments and refund claims are
  transmitted electronically
• Drawback activity reported to Customs is
  summarized

15
TRANSITION FROM CSA/CDRP TO FAST

• Importer/Carriers
• CSA will continue for 12 months after the
  implementation of FAST, thereby allowing
  appropriate time for existing participants to
  become PIP approved
• Drivers
• CDRP cards will be accepted upon arrival into
  Canada until the drivers membership renewal date
  (less than 2 years)
• Members will have to renew under the FAST
  commercial driver registration
• Commercial drivers must apply for FAST in advance
  of their membership expiry should they want FAST
  clearance in both directions

16
CONSULTATIONS

• Significant progress has been made by the four
  agencies to harmonize the driver and carrier
  components
• Internal and external communication has commenced
  and is being accelerated

17
NEXT STEPS/FUTURE PLANS

• Implementation dates and locations to be
  announced later this Summer
• Roll out FAST to other sites
• Develop and implement proximity card and
  transponder technology for the transmission of
  required information (driver, importer and
  carrier bar codes)
• Display of driver photo at primary

18
FOR MORE INFORMATION

• FREE AND SECURE TRADE (FAST) PROGRAM
• Stephen Disipio, Director, CSA/FAST, CCRA (613)
  954-4537 or
• Lily Ooi, Manager, FAST Communication and
  Implementation, CCRA, [phone]
• CUSTOMS SELF ASSESSMENT (CSA)
• http//www.ccra-adrc.gc.ca/customs/business/import
  ing/csa/carriers-e.html
• PARTNERS IN PROTECTION PROGRAM
• www.ccra-adrc.gc.ca/newsroom/factsheets/2002/jan/p
  ip-e.html
• CUSTOMS TRADE PARTNERSHIP AGAINST TERRORISM
  (C-TPAT)
• www.Customs.Treas.gov