Coordinated Clearance Point of Departure Determination

1. Coordinated Clearance Point of Departure Determination CRITICAL MUST HAVES BEYOND THE BORDER PERIMETER STRATEGY MUST DELIVER CANADA-U.S. TRANSPORTATION BORDER WORKING GROUP PLENARY Buffalo, New York Presented by Jim Phillips April 9, 2014 Can/Am Border Trade Alliance 1 1

2. Coordinated Clearance Point of Departure Determination THE BEYOND THE BORDER PERIMETER VISION DECLARATION WAS ISSUED BY PRESIDENT OBAMA AND PRIME MINISTER HARPER ON FEBRUARY 4, 2011 FOLLOWED BY THE AGREED UPON SPECIFIC ACTION PLAN ON DEC. 5, 2011. 2

3. BORDER PERIMETER VISION MEETING WITH U.S. AMBASSADOR JACOBSON February 17, 2011 Can/Am BTA Recommended Essentials to be in the Vision: (All were subsequently included in the Action Plan or implemented.) Economics will be determining Border Management. Budget cuts to CBP and CBSA will impact heavily. Security efforts are not likely to be reduced thus COMMON SENSE and REALITY are needed to MORE EFFECTIVELY AND WITH LESS COST TO GOVERNMENT AND TRADE STAKEHOLDERS EXPEDITE KNOWN LOW-RISK TRUSTED TRADER SHIPMENTS AND TRUSTED TRAVELER CROSSINGS. Detailed specifics for a majority of the following contained in COORDINATED CLEARANCE- POINT OF DEPARTURE DETERMINATION document presented. 8 SPECIFIC BORDER ISSUE IMPROVEMENTS WITH SOLUTIONS 3 3

4. CanAmBTA presented 8 SPECIFICS BORDER ISSUE IMPROVEMENTS WITH SOLUTIONS ENTRY-EXIT Canadian Entry at land border become US Exit match and vice versa. Save $ billions versus US Exit Booth construction and staffing. Avoid major US Exiting Grid Lock. US provide Readers to PIL’s. EXPEDITE LOW-RISK Upgrade FAST to Modified Green Lane Trusted Trader (CSA, C-TPAT, PIP) access to Primary Inspection. Eliminate duplicate Inspection at Land Border by risk targeting at departure. Peace Bridge Truck Pre-processing Canadian Side - Pre-process not Pre-clear by US. EARLY DELIVERABLE saves $300 Million Full descriptive Slide Deck Handout given. Biometric check of foreign visitors prior to boarding offshore so NO non low-risk people can reach US or Canadian soil.

5. CanAmBTA presented Issue RFID Vicinity Canadian Passport Companion Card for land border crossing. Saves 24 seconds per person inspection time. Equates to saving 200,000 hours wait time by Canadian cardholders and 200,000 hours reduced Officer inspection time EACH for CBSA and CBP Primary Inspection Booth time. Develop Joint or Cross Designation for 2 way Inspection at low volume rural crossings. Streamline current excessive Border Regulations in Partnership with Industry. TSA recognize NEXUS at US airport passenger inspections. NEXUS is proven low CATSA does at Canadian major airports. Detailed specifics for a majority of the above contained in COORDINATED CLEARANCE- POINT OF DEPARTURE DETERMINATION document presented.

6. Beyond The Border Specifies: Economic Benefits • Enhanced and convergent Canadian and U.S. cargo security programs and cooperation with international partners to enhance global supply chain security will: • Optimize efficiency of offshore cargo clearingby providing joint responses to threats; thus enhancing supply chain security and accelerating the legitimate flow of cargo between Canada and the U.S. • Provide greater consistency and predictability in the processes; each country assesses risk at the perimeter and conducts examination on behalf of the other country that will enable expedited clearance of cargo that proceeds to cross the Canada / U.S. land border. • Improve economic competitiveness due to reduced examinations and/or re-inspections and associated costs, as well as reduced waiting times at the border. “CHECK ONCE ACCEPT TWICE” 6

7. Beyond The Border Specifies: Economic Benefits Harmonization of pre-arrival data requirements for all stakeholders and alternate processes and approaches for Trusted Trader participants. • Data harmonization will mean streamlining the requirements and reducing complexity for trade to provide the same information to both Agencies; thereby reducing the compliance burden on industry • Consistency in data requirements will decrease the likelihood of errors, resulting in higher compliance rates, and therefore, fewer data corrections and fewer delays at the border. • Harmonizing data elements will allow for increased accuracy in risk assessments based on common data elements, thus expediting processing of low risk goods. • Reduced costs to industry conducting business across the border by implementing, where practicable, common practices and streamlined procedures for customs processing of Trusted Trader participants. 7

8. EXPEDITED CARGO CLEARANCE REQUIRES A COMPLETED BEYOND THE BORDER INITIATIVE ENHANCED AND EFFECTIVE INTELLIGENCE ADVANCE ACCURATE DATA EFFECTIVE TARGETING INTERCHANGEABLE SHARED DATA INTEROPERABLE TECHNOLOGY AND EQUIPMENT HARMONIZED REGULATIONS CBSA & CBP ONE FACE AT THE BORDER FOR ALL OGA’S & OGD’S

9. Coordinated ClearancePoint of Departure DeterminationGoods Movement Concept 9 9

10. CONTAINER SECURITY INITIATIVE (CSI) PORT 60 OF THEM CURRENTLY PROCESS ALMOST 90% OF CONTAINERS ARRIVING THE US. COMMISSIONER BONNER ANNOUNCED AT SOME POINT ONLY CSI PORTS WOULD BE ALLOWED TO SHIP TO U.S.

11. CSI Port Canada or US 100% TARGETED AND RISK ASSESSED US or Canada

12. Before Leaving 100% Full Targeted & Risk Assessed

13. SMART BOX TECHNOLOGY - LIVE PILOT TESTING

14. 100% Smart Box Sealed

15. 100% Radioactive Screening Before Loading

16. Low Risk LOW RISK LOADS

17. High/Unknown Risk Low Risk VACIS for High or Unknown Risk Cargo

18. High/Unknown Risk Low Risk Or Destuff Container

19. NO LOAD NON LOW-RISK

20. High/Unknown Risk No Unauthorized Intrusion To Smart Seal Low Risk Overseas CSI Port Canada or US US or Canada

21. SINCE ALL CONTAINERS ARE LOW RISK ASSESSED AT LOADING EXCEPT FOR RANDOM CHECKS AND INTEL RECEIVED GREEN LANE OFFLOADING DIRECT TO RAIL AND TRUCK OCCURS AND NO DUPLICATE INSPECTION OF THE CARGO IS NEEDED ELIMINATES DUPLICATE INSPECTION AT ARRIVAL PORT AND 49TH PARALLEL AS ALREADY DONE AT OFFSHORE LOADING CURRENT BYB IS 2 FOR 1 CHECKED ONCE ACCEPTED TWICE CANADA OR US SEAPORT AND LAND BORDER. ENVISIONED END STATE IS (3 FOR 1) CHECKED PRIOR TO LOADING AND ACCEPTED AT LOADING, ARRIVING CANADA OR U.S. SEAPORT AND SHARED LAND BORDER

22. High/Unknown Risk Efficient Transshipments No Stopping at Land Border To Duplicate Inspections No Unauthorized Intrusion To Smart Seal Low Risk Overseas CSI Port Green LaneOffloading Canada or US US or Canada

23. SECURE TRANSIT CORRIDOR 23

24. Apex-Secure Transit Corridors Creating a More Secure Supply Chain for Truck and Rail Conveyances… …Using an Electronic Chain of Custody Security Device, a Multilayered Approach to Conveyance Security 24 24

25. Notional Overview of CBP’s Truck CONOPs 25

26. DHS SCIENCE & TECHNOLOGY NOTE RED TEXT ON DESCRIPTION, OBJECTIVE AND DELIVERABLES ON SLIDE 27. 26

27. DHS SCIENCE AND TECHNOLOGY APRIL 4, 2012 • Secure Transit Corridors Tech Demonstration Summary • Description: • Demonstrate a rail and truck security device that will monitor unauthorized door openings or anomalies and provide encrypted in-transit tracking for C-TPAT* Tier III members supply chains routes originating from Mexico and Canada** and ending in the U.S. • Joint effort with CBP • Objective: • Increase conveyance security without impacting and potentially improving the flow of commerce • Deliverables: • A leave-behind capability to operate four supply chain routes (three truck and one rail). • Phased cost estimates for full-scale data server implementation and acquisition planning for 100 truck, and 34 rail Points of Entry (POEs) – will also provide estimates for 228 Maritime and Air POEs. • Technical performance standards and test plans for certifying future ECoC-like devices from open market. • *Customs – Trade Partnership Against Terrorism , a voluntary importer based program to secure the supply chain of goods entering the United States. • **Coordinating with the Canada Border Services Agency (CBSA) at the Ambassador Bridge Detroit, MI Port of Entry 27

28. Implement Pre-inspection andPre-clearance Initiatives Beyond the Border Perimeter Action Plan The Pre-clearance Agenda • Canada and the United States (U.S.) will negotiate, by December, 2012, a pre-clearance agreement for the land, marine and rail modes to provide the legal framework and reciprocal authorities necessary for the CBSA and CBP to effectively carry out their missions in the other country. • Canada and the U.S. will launch, by September, 2012, a land cargo pre-inspection pilot in at least one location in Canada. 28

29. CAN/AM BTA BELIEVES PRE-CLEARANCE LAND/RAIL/SEA AGREEMENT WILL ALLOW ALL OF THE PRIORITIES ON SLIDE 30 TO BE ACHIEVED 29

30. Implement Pre-inspection andPre-clearance Initiatives THIS PARADIGM SHIFTING TREATY PROVIDES HIGH VALUE DIRECT BENEFICIAL IMPACTS: • CORNWALL SOLUTION • PEACE BRIDGE COMMERCIAL PROCESSING • SMALL PORTS INSPECTION (JOINT 2 OFFICER TEAMS) • RAIL PASSENGER EFFICIENCY – QUEBEC-NY AND VANCOUVER-SEATTLE (eliminate stop at actual Border) • SECURE TRANSIT CORRIDOR (PLANT TO CUSTOMER)(I.E. SAME DRIVERS, SAME PRODUCTS, SAME PORT) • PORT SPECIFIC SOLUTIONS TO MAXIMIZE UTILIZATION, EFFECTIVENESS AND MINIMIZE NEW INVESTMENT • LEAD TO DEVELOPMENT OF BRIDGE CROSSING PROCESSING ZONES • ETCETERA 30

31. Coordinated ClearancePoint of Departure DeterminationPassenger Flow Concept 31 31

32. Canada or US Overseas Airport US or Canada 32 32

33. BIOMETRIC CHECK BEFORE BOARDING OFFSHORE . US VISIT IN PLACE. CANADA MIGRATION TEAMS PARTIALLY IN PLACE AND INTERCEPT A MAJORITY OF INADMISSIBLE PEOPLE. CURRENTLY CANADIAN IMMIGRATION AND DFAIT HAVE 200 POINTS OF SERVICE GLOBALLY FOR BIOMETRICS. US-VISIT AND STATE DEPT. HAVE 207 CONSULAR LOCATIONS AND 300 PLUS PORTS OF ENTRY GLOBALLY FOR BIOMETRICS WITH 13 SECOND MAXIMUM RESPONSE TO OFFICERS. CANADA INITIATING ENTRY/EXIT AND ELEC-TRONIC TRAVEL AUTHORITY FOR ALL NON VISA APPLICANTS EXCEPT U.S

34. 100% Screening Biographical Biometric Threats Overseas Airport Canada or US US or Canada 34 34

35. LOW RISK BOARD.OTHERS NO BOARD

36. High/Unknown Risk Low Risk Overseas Airport Canada or US US or Canada 36 36

37. Destination Overseas Airport Canada or US US or Canada

38. Beyond The Border Specifies: Defining Success • Canada and the United States (U.S.) will screen and identify travelers at the earliest point possible. • Canada will implement the electronic Travel Authorization (eTA), to improve screening of all visa-exempt foreign nationals, and Interactive Advance Passenger Information (IAPI) to make “board/no-board” decisions on all travelers flying to Canada prior to departure. • These initiatives will mirror measures taken in the U.S. through its Electronic System for Travel Authorization (ESTA) and Advance Passenger Information System Quick Query (AQQ) systems. • IAPI will push the CBSA’s risk management processes away from the North American Perimeter. • Non bona fide travelers will be identified prior to departure. 38

39. Coordinated ClearancePoint of Departure DeterminationTraffic Streaming 39 39

40. THIS SLIDE CONCEPT OF STREAMING RFID LIKE NEXUS WAS INTRODUCED IN MAY 2007. IN 2010 CBP ANNOUNCED THAT ALL LAND PORTS WITH 3 OR MORE PASSENGER LANES WOULD STREAM VICINITY RFID TRAVELERS IN READY LANES FOR PROCESSING TIME SAVINGS IN BYB BY SUMMER OF 2012 WHERE PRACTICAL.

41. Streaming by Risk Truck e-ManifestAdvisory (ResolutionBefore Proceeding) Mixed Flows of Vehicles Approaching Land Border(as much as 60 miles back) Canada or US USor Canada

42. FACTORS DETERMINING PROCESSING CAPACITY OF PRIMARY INPECTION AT A LAND PORT NUMBER OF PRIMARY INSPECTION BOOTHS THE NUMBER OF HOURS EACH BOOTH IS OPERATIONAL WHEN TRAFFIC IS PRESENT THE PROCESSING DWELL TIME FOR EACH VEHICLE 42 42

43. EXPEDITING TRUCK BORDER CROSSING INVOLVED ELEMENTS: INFRASTRUCTURE STAFFING INSPECTION PROCESS ACCURATE PRE-ARRIVAL DATA DRIVER PREPAREDNESS ACCESS TO PLAZA & PRIMARY BOOTH 43

44. Access to the Plaza and the Primary inspection booth: The current Monte Carlo uncontrolled random arrival (first come first serve) of trucks approaching land border Port plazas and Primary inspection booths within prohibits optimizing the border crossing process and penalizes those who have made the considerable effort and investment to comply with specified Trusted Trader programs to achieve known low-risk status that promised but have never yet delivered meaningful reductions in their border crossing process. The key to achieving public security along with economic security, while substantially reducing congestion and delay, is participation in known low-risk Trusted Trader and Trusted Traveler enrollment processes and pre-arrival information. Access to the primary inspection booths without having to queue using processes such as Traffic Streaming is essential.

45. Integrated Cross-Border Law Enforcement April 3, 2012 Integrated Enforcement • We intend to build on existing bilateral law enforcement programs to develop the next generation of integrated cross-border law enforcement operations thatleverage cross-designated officers and resources to jointly identify, assess, and interdict persons and organizations involved in transnational crime Can/Am BTA asks why not CBSA/CBP Officers @ Land Ports ? 45

46. Integrated Cross-Border Law Enforcement April 3, 2012 Existing Border Enforcement Program: Integrated Border Enforcement Team (IBET) • Bi-national partnership with joint governance • Canadian and U.S. law enforcement partners sharing intelligence and conducting joint operations • Enhances security along the shared border (between the ports of entry) Shiprider • Specially trained and cross-designated Canadian and U.S. law enforcement officers jointly crewing each other's vessels • Pilot projects conducted and evaluated (2005-2007), Framework Agreement signed in May 2009 • Legislation required to ratify the Agreement Border Enforcement Security Team (BEST) • ICE-led multi-agency teams developed to identify, disrupt and dismantle criminal organizations posing significant threats to border security • Since 2008, four BESTs have been established on the Canada-U.S. border • Select Canadian officers are co-located and cross-designated in the US Can/Am BTA asks why not CBSA/CBP Officers @ Land Ports ? 46

47. Integrated Cross-Border Law Enforcement April 3, 2012 Guiding Principles • Respect for sovereignty and domestic laws • Operations conducted under the direction/management/laws of the host country • Cross-designation/Reciprocal authorities • US and CDN officers cross-designated to enforce host country laws • Selection of involved agencies and individuals at discretion of each country • Specialized training • Dedicated and co-located resources • Bi-national governance model Can/Am BTA asks why not CBSA/CBP Officers at Land Border Ports ? 47

48. Beyond The Border Specifies: The Action Plan Commitments We Will: • Develop for each country an inventory of fees and charges at the border which sets out their purpose and legal basis, how they are collected, how much is collected, their intended use and the rationale for collecting them at the border. • Using an agreed methodology, Commission a disinterested third party to conduct an economic impact assessment of such fees, including their cumulative effect, on the competitive position of three economic sectors in Canada and the United States for which cross-border activity is important. • Public Safety Canada and the U.S. Department of Homeland Security will produce and publish a joint Report on the above, which would be presented to Leaders and made available to the public by September 30, 2012. • Can/Am BTA Comment: No cash should be collected by Officers at border inspection. 48

49. BEYOND THE BORDER PERIMETER STRATEGY MUST DELIVER PILOTS LEADING TO OPERATION ON EACH OTHERS SOIL NEW PARADIGM FOR SMALL/RURAL PORT INSPECTION END OF DUPLICATE INSPECTION AT SHARED LAND BORDER CANADA VICINITY RFID PASSPORT COMPANION CARD ENTRY EXIT (PEOPLE AND IMPORT/EXPORT OF GOODS) USDA & FDA CROSS-DESIGNATION TO CBP FOR 24/7 SERVICE 49

50. BEYOND THE BORDER PERIMETER STRATEGY MUST DELIVER DIRECT STREAMED ACCESS TO PRIMARY CUSTOMS INSPECTIONFOR TRUSTED TRADER TIERS (ISA/CSA) (FAST) (C-TPAT/PIP TIER 2) (C-TPAT/PIP) CONSISTENT CUSTOMS BEST PRACTICE OPERATING METRICS THE CURRENT BTB ACTION PLAN IMPLEMENTS BORDER ENFORCEMENT SECURITY TEAMS (BEST) EMPOWERING LAW ENFORCEMENT OFFICERS TO WORK IN EACH OTHERS COUNTRY. WE NEED BORDER ENFORCEMENT FACILITATION TEAMS (BEFT) CBP AND CBSA OFFICERS EMPOWERED TO PERFORM RESPECTIVE DUTIES WITHIN THE PLAZA TO PLAZA AREAS OF LAND BORDER PORTS CREATING THE CUSTOMS PROCESSING ZONES FIRST PROPOSED IN THE 1995 CANADA/U.S. SHARED BORDER ACCORD 50 50