OTA campaign helps shippers better manage customs brokers

WINDSOR, Ont. — Canada Border Services Agency’s newly-enacted policy requiring carriers use line release customs clearance at the Windsor-Detroit border has produced very few disruptions, reports the Ontario Trucking Association.

The rule, which took affect April 1st, has been implemented smoothly in part because of carriers educating their customers on ways to eliminate border delays due to failed PARS (Pre-Arrival Review System) transactions.

At the crossing, all commercial importations entering Canada are required to use one of CBSA’s existing line release clearance options, including CSA/FAST, PARS, FIRST, A49, Post-Audit and In-Bond.

Following the CBSA announcement indicating that failed PARS shipments would be returned to the U.S., the OTA Board developed a position regarding CBSA enforcement of this policy and a communication strategy targeting shippers who utilize under-performing custom brokers. While the trucking industry can partially share in the blame for this problem, experience has shown that PARS failures are also often the result of customs brokers not filing entries in a timely manner.

A disconnect between you and your broker could
mean shipments get turned away at the border

“OTA put together a communication campaign for the carriers to educate their shippers on the need to utilize high performing custom brokers, and based on a recent survey of the membership the shipping industry is responding,” said OTA President David Bradley

The OTA survey found that after carriers met with their customers to explain the issue of a poor performing brokers’ impact on their operations shippers began making changes with regards to their management and selection of custom brokers.

“Historically failed PARS transactions at the Detroit-Windsor crossing saw upwards of 400 to 500 trucks per day being referred to the offsite inspection facility,” added Bradley. “Carriers cannot afford increased costs associated with this new policy. Failed PARS due to inadequate broker service levels will result in everyone’s costs increasing. Those shippers who choose not to manage the performance of their custom broker are risking the exposure of their freight to significant border delays and increased costs from their transportation suppliers.”

OTA has provided carriers a checklist for selecting a high performing custom broker:

— Uses EDI; Provides 24/7 service, either directly or though a sub-agent; and has a website or toll free phone number available for carriers, dispatch, and drivers to check status of shipments prior to arrival at port of entry.

— Communicates with importer of record, shipper, vendor, etc. to encourage and facilitate obtaining proper documents to prepare customs clearance well in advance of arrival at port of entry.

— Committed to high quality of data submitted to CBSA/OGD to reduce the number of administrative rejects and unnecessary delays in processing.

— Committed to technology improvements required to keep pace with latest custom requirements; and employs experienced personnel, with CCSs (Certified Customs Specialists) on staff.

— Has contingency plans in place to avoid delays in processing in the case of system outages, etc.