Possible Delays in Government Initiatives
Date posted: April 6, 2020 | Author: Chad Swance, Director of Regulatory Affairs and Trade Compliance
The current pandemic and resulting economic crisis is changing paradigms and will likely have lasting generational impacts. All levels of the Canadian Government, from every political stripe are now unified under a single banner of protecting Canadians. Provincial governments are taking the lead on health and safety, while the federal government is implementing new programs to ensure companies and individuals are able to survive.
Should your facility be closing as part of the efforts to flatten the COVID-19 curve, please reach out to Kuehne + Nagel to make arrangements for any outstanding deliveries. Please provide emergency contacts, alternate shipment delivery information, and shipment projections for upcoming weeks. We are here to partner with you for the continued success of your business
To date, the Canadian and American borders have operated business as usual. Commercial shipments are flowing across the border, with comparably little interruption. Government Agencies that are also operating at the border are increasing their engagement with industry to ensure that products flow. At this point there are no restrictions on what kind of goods can cross the border.
In January of 2020, the CBSA had at least five major initiatives planned for implementation for the remainder of the year. Each initiative will be impacted in different ways because of the current global conditions.
New NAFTA (CUSMA)
On April 2, 2020, Canada notified the U.S. and Mexico of the completion of its domestic procedures for the Canada-United States-Mexico Agreement (CUSMA). Canada is the first country to provide its notification under the Agreement, meaning that timelines related to entry into force remain to be determined. The Deputy Prime Minister, Chrystia Freeland, released a statement on Canada’s ratification of CUSMA, noting that “the Canadian government will continue to work with the United States and Mexican governments to determine an ‘entry into force’ date that is mutually beneficial. We want to ensure the new NAFTA will support a strong economic recovery once we have put the COVID-19 pandemic behind us – which we will.”
The eManifest Portal is an option developed by the Canada Border Services Agency (CBSA) to allow the trade community to electronically transmit their pre-arrival information through the Internet. The eManifest Portal was developed primarily for small- to medium-sized businesses to facilitate their compliance and ease the transition from paper reporting to pre-arrival electronic data transmission.
As part of the continued roll out of eManifest there are scheduled programing updates. Because of the current situation with the COVID-19 and the global health crisis, CBSA is postponing the system release regarding the house bill changes (R856) that was supposed to be implemented on June 28, 2020. We will advise you when we have a new date.
Due to the COVID-19 pandemic, the CBSA will be delaying the decommissioning of the legacy OGD service options until a date later to be determined. The legacy options were set to be decommissioned on April 1, 2020. The delay will provide the CBSA more time to correct some of the unintended consequences of the new platform. KN will continue to communicate with clients as new dates become available.
The Canadian Export Reporting System (CERS) is a web-based portal for submitting electronic export declarations. It is replacing the Canadian Automated Export Declaration (CAED) application, which Statistics Canada is retiring on June 30, 2020. There is not yet any new information regarding possible extensions. The CBSA had indicated that they would send a written letter to exporters to inform the start date of their CERS enrollment. Exporters will be migrated to the CERS platform in waves. As such, not all exporters or BNs will be transitioned at the same time.
The CBSA's Assessment and Revenue Management (CARM) Project is a large, multi-year project that will transform CBSA revenue management by automating manual processes required to assess, collect, manage and report on revenue and trade information. There has yet to be an announcement from the CBSA on what impact the current crisis may have on implementation timelines.
The project will replace aging and non-integrated revenue and cash management systems. CARM will also change the way the commercial trade community interacts electronically with CBSA. All commercial importers will be impacted these changes