Issue 449, September 9, 2004
On August 10, 2004 we were notified of the following Customs Border & Protection (CBP) Headquarters policy change regarding Border Cargo Selectivity (BCS) processing along the U.S./Canadian border. Under current CBP policy regarding BCS, entry filers are not required to report all line items when submitting preliminary entry documentation to CBP. Instead, entry filers are only required to report those line items that are equal to, or exceed $2000 in value. For those entries for which all line items are valued at less than $2000, entry filers must report at least one line item to process the entry through BCS.

As a result, CBP will change its northern border BCS policy on October 1, 2004. For any entry filed on or after that date, entry filers will be required to report all line items associated with the entry regardless of the line item value. The Northern Border Customs Brokers Association was notified of this change on March 22, 2004. This change will be fully implemented on October 1, 2004 deadline.

Additionally, CBP is also implementing requirements for Advance Electronic Cargo Information (AECI) which requires transmission of all shipment information not less than 60 minutes in advance of the arrival of the cargo at the border. This new requirement mandates full carrier/shipment detail being transmitted by your broker to CBP a minimum of 60 minutes (30 minutes for C-TPAT/FAST Importers) prior to the arrival of the conveyance through BCS. This change will have a staged implementation starting November 15, 2004.

In order to meet the requirements of AECI & Full Classification, ALL importers and carriers to the US from Canada will be required to provide full shipping documents in advance of the arrival of the cargo at the border as well as full participation in PAPS (Pre Arrival Processing System). The PAPS system requires all carriers to secure a Carrier Code (SCAC) from the Motor Carriers Association and to affix a shipment unique bar code to both each individual commercial invoice and the associated line item on the inward cargo manifest. Upon receipt of the appropriate shipping documents, (in advance of arrival) your broker will process and transmit the appropriate information to satisfy both AECI and Full Classification to CBP.

Failure to complete both Full Classification and AECI will result in significant delays and/or rejection back to Canada and/or penalties by CBP for failure to comply and provide proper advance notification.

What Steps Are Necessary for Shippers/Importers/Carriers to comply?

	Full Carrier Participation in PAPS (applies to both common carrier and company owned trucks)
	Affixing PAPS Bar Code to each commercial invoice (shipment) and corresponding manifest line item
	Transmission of manifest and shipping documents to border release office in advance of arrival allowing time for broker processing and AECI pre file requirements (at least 2-4 hours prior to arrival) with port of arrival indicated on fax transmission
	Accurate and complete information for ALL line items on your shipping documents
	Contact your Danzas AEI Northern Border representative for assistance

What are the benefits of these requirements?

	Enhanced security and targeting activities by CBP
	Expedited clearance at the border. CBP will review and determine release applicability at time of arrival and in many cases, clear the shipment on the line enabling the shipment to move to destination and not require the driver to park and go into the broker’s office, thereby avoiding standing in lines and associated delays.
	Participation will avoid other delays and penalties by CBP

Please note that due to the complex nature of the subject matter, DHL Danzas Air & Ocean cannot be responsible for actions taken by the reader in reliance on the information contained herein without prior consultation with DHL Danzas Air & Ocean.