Canadian truckers say shipping exports to the U.S. is going to get a lot more difficult and expensive with final rules regarding electronic pre-notification recently sent to Congress by the U.S. Customs and Border Protection.
The rules call for a long list of manifest information to be transmitted to CBP at least 30 minutes before arriving at the U.S. border if the freight is moving under the Free and Secure Trade (FAST) program, and an hour before arrival for non-FAST shipments. Outbound shipments from the U.S. to Canada are exempt for the most part.
David Bradley, CEO of the Canadian Trucking Alliance, said the new rules "will be tantamount to economic re-regulation of the cross-border trucking industry." He added that the "cumulative cost of the myriad of U.S. domestic security measures is staggering and will drive smaller carriers or carriers that are not in a financially stable situation out of the transborder marketplace."
Less-than-truckload carriers will be hardest hit because individual prior notice will be required on each and every shipment on the truck. "It’s a bit like trying to squeeze an elephant through the eye of a needle," he said.
The agency acknowledged that the rule will impose new costs for most transportation modes but, in the case of trucking, it said those costs would be offset by the time savings of faster border clearance.
In addition to costs, Bradley said carriers are concerned about the impact of pre-notification on just-in-time shipments and whether the government systems will actually manage the process. The new rules "are better than earlier drafts, but still add to the increasing complexity and cost of crossing the border," he added.
Not all ports will be ready to implement the new rules at the same time so truckers will be given 90 days to comply once they receives official notice from a port. Final rules, including discussion and details, are expected to be published in the Dec. 5, 2003, Federal Register.
The rules call for a long list of manifest information to be transmitted to CBP at least 30 minutes before arriving at the U.S. border if the freight is moving under the Free and Secure Trade (FAST) program, and an hour before arrival for non-FAST shipments. Outbound shipments from the U.S. to Canada are exempt for the most part.
David Bradley, CEO of the Canadian Trucking Alliance, said the new rules "will be tantamount to economic re-regulation of the cross-border trucking industry." He added that the "cumulative cost of the myriad of U.S. domestic security measures is staggering and will drive smaller carriers or carriers that are not in a financially stable situation out of the transborder marketplace."
Less-than-truckload carriers will be hardest hit because individual prior notice will be required on each and every shipment on the truck. "It’s a bit like trying to squeeze an elephant through the eye of a needle," he said.
The agency acknowledged that the rule will impose new costs for most transportation modes but, in the case of trucking, it said those costs would be offset by the time savings of faster border clearance.
In addition to costs, Bradley said carriers are concerned about the impact of pre-notification on just-in-time shipments and whether the government systems will actually manage the process. The new rules "are better than earlier drafts, but still add to the increasing complexity and cost of crossing the border," he added.
Not all ports will be ready to implement the new rules at the same time so truckers will be given 90 days to comply once they receives official notice from a port. Final rules, including discussion and details, are expected to be published in the Dec. 5, 2003, Federal Register.
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