Shipper/importer lingo causing some FAST mix-ups

TORONTO, (March. 1, 2004) — Today’s Trucking has learned that there has been some recent confusion between some Canadian shippers and the U.S. Customs and Border Protection over the language used to describe “shippers” and “importers” who can qualify for the bilateral Free and Secure Trade border clearance program between Canada and the U.S.

Apparently, the term “shipper” by sole definition, is not eligible for the C-TPAT component needed to be FAST-approved. Technically, the three supply chain components for U.S.-bound freight that can qualify for FAST include the carrier, the driver, and the U.S. importer of record, who is responsible for the Immediate Delivery Release (PAPS/BCS).

However, in what can only be described as semantics, Canadian companies shipping goods to the U.S. are allowed to become the “importer of record,” and therefore FAST-approved. In such situations the U.S. consignee does not need to be part of C-TPAT/FAST.

“This is how it works: The Canadian shipper is allowed to become the U.S. importer of record, and apparently many do,” confirms Ron Lennox, Canadian Trucking Alliance vice-president of regulatory affairs. “Let’s say I’m an importer in St. Louis buying goods from Canada, and I don’t want to deal with the hassle of all the customs paperwork at the border. I’ll let the guy in Canada who’s actually producing and shipping those goods become the U.S. importer of record, who can be ( C-TPAT/FAST).”

Canadian shippers can still be FAST-approved in Canada if they’re also “importing” goods from the U.S. However, these importers must be Customs Self Assessment (CSA)-approved first — a lengthy and onerous task that the Canadian Trucking Alliance says is discouraging many Canadian importers from registering for FAST.

The CTA is continuing its discussions with Canada Border Services Agency (CBSA) about the striking difference between the number of FAST-approved U.S. importers — currently numbering several thousand — and the number approved in Canada, which at last count numbered six. CTA is urging the government to re-examine the eligibility requirements to expedite the approval process.

Current statistics for FAST are: Importers into Canada: 141 applications (6 fully FAST approved/11 CSA not yet FAST); Carriers: 858 applications (265 CSA approved/184 FAST approved); Drivers: 42,000 FAST applications (11,500 cards issued/17,500 conditionally approved).