[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]



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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

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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