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© 2002 Perimeter Clearance Coalition April, 2002 Expediting Bilateral Trade & Travel Securing Our External Borders Perimeter Clearance Strategy TO REALIZE.

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Presentation on theme: "© 2002 Perimeter Clearance Coalition April, 2002 Expediting Bilateral Trade & Travel Securing Our External Borders Perimeter Clearance Strategy TO REALIZE."— Presentation transcript:

1 © 2002 Perimeter Clearance Coalition April, 2002 Expediting Bilateral Trade & Travel Securing Our External Borders Perimeter Clearance Strategy TO REALIZE A SMART BORDER FOR THE 21 ST CENTURY

2 © 2002 Perimeter Clearance Coalition Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century 2 Elimination of the Canada - US border Creation of a Customs Union like the E.U. Full harmonization of Visas, immigration policies and import rules Perimeter Clearance IS NOT

3 © 2002 Perimeter Clearance Coalition Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century 3 Perimeter Clearance Vision The US and Canada working closely together to strengthen protection of the external borders and expediting the movement of low-risk people and goods at the common border between the two countries.

4 © 2002 Perimeter Clearance Coalition Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century 4 Beneficiaries Governments Tourism Industry Travelers Airports General Public Ports Communities Airlines Importers/Exporters Railways Shipping Lines Manufacturers Trucking Firms

5 © 2002 Perimeter Clearance Coalition Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century 5 Benefits Increased efficiencies in logistics, just in time manufacturing and reduced storage costs Reduced border processing delays Reduced transportation costs Enhanced security Lower fuel consumption Higher utilization rates Stimulation of trade and travel Substantial Reduction in Environmental Discharge

6 © 2002 Perimeter Clearance Coalition Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century 6 Key Elements of Perimeter Clearance Perimeter Security Perimeter Clearance for Goods Economic Security Through Expedited Low Risk Cross Border Trade and Travel

7 Canada-U.S. Land Border Crossing Movements Streamed by Risk Assessment Cars Commercial Trucks Pre-Determined Low Risk (Expedited) Other (Not Pre-Registered) Pre-Determined Low Risk (CSA NCAP PARS BRASS FIRST PAPS RNS Line Release & Empties) Other (Not Pre-Registered) ? ? Unknown High Risk (Not Cleared) High Risk (Not Cleared) Cleared as Low-Risk High Risk (Not Cleared) Unknown Cleared as Low-Risk ? ? © 2002 Perimeter Clearance Coalition 7 Note: CSA = Customs Self Assessment; NCAP = National Customs Automation Prototype; PARS = Pre-Arrival Review System; BRASS = Border Release Advanced Screening and Selectivity, FIRST = Frequent Importer Release System, PAPS = Pre-Arrival Processing System, RNS = Release Notification System Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century

8 © 2002 Perimeter Clearance Coalition Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century 8 NEXUS-TYPE CARS (20+%) AUTOMATED VERIFICATION Canada-U.S. Land Border Crossing Traffic Streaming Applicable for Entrance in Either US or Canada And Either In-Country, or In-Other-Country REGULAR CARS BOOTHS NO PRE-SCREENING EXPEDITED PROCESSES PRE-CLEARED AND KNOWN LOW RISK TRUCKS (80%) REGULAR TRUCKS UNKNOWN RISK NO PRE-SCREENING 2-LANE APPROACH ROAD PLAZA ENTRANCE (mixed streams) 8 © 2002 Perimeter Clearance Coalition Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century

9 © 2002 Perimeter Clearance Coalition Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century 9 There are three immediate actions that must be advanced in the near term: 1) Achieve regulatory requirements for the Processing Zone Concept: The global competitiveness of Canadian and American businesses depend on the capabilities provided for by the Processing Zone Concept. Realization of this requires Canadian legislation to provide for authorities to customs and immigration officers. This will be essential to efficient border management, achievement true joint facilities, securing border crossing infrastructure and elimination of congestion. These in turn will enable the facilitated processing of known low-risk goods and people to shift focus to high-risk groups. 2) Bi-National Data Sharing: Adopting a standard and implementing inter-agency and bi-national data sharing is critical to Perimeter Clearance communication of information. This item is particularly important for Customs processing. This would allow for enhanced security and expediting processing such as first point of arrival processing, and sea container targeting. Without achieving this, Canada would be precluded from participating in a Perimeter Clearance Strategy. 3) Deployment of NEXUS at land borders: The expedited land border program for passenger vehicles is needed to support the growth in traffic and to alleviate current congestion. Expediting this traffic is important to the growth of tourism, as well as to linking expedited systems to be deployed on other modes (e.g. marine, air). Moreover, its deployment is one of the main requisites for achieving access of pre-cleared trucks to primary processing booths. Key Actions to Achieve Traffic Streaming

10 10 © 2002 Perimeter Clearance Coalition Case Studies Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century

11 11 © 2002 Perimeter Clearance Coalition Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century

12 © 2002 Perimeter Clearance Coalition 12 Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century

13 Goods Flow 1: International Goods Clearance to Transborder Destinations (Point of First Arrival) Key Benefits Eliminates full initial Customs inspection at US/Canada Border thereby reduces congestion and delay at the border Increases security, as cargo is pre-screened for risk level determination & is inspected at point of first arrival Increases knowledge and time for destination countrys custom service before actual goods arrive at the 49th parallel for subsequent admissibility review decisions and further review if required Reduces costs and delays for both governments and supply chains Reduces train disassembling at 49th parallel Challenges Requires data sharing and computer system interoperability between Canada and U.S. Customs Agencies Requires 24/7 port operation and inspection equipment/technology resources Requires cross designation between U.S. and Canada Customs to perform reviews and inspections in point of first arrival country on instructions and to the standards of the destination country An alternative, after passage by Parliament of companion legislation to airport pre-clearance, is expanding pre-clearance to land borders and seaports to perform the admissibility review and inspections. Initial Review indicates cross-designation at seaports would be the less costly and preferred course of action 123 Marine or Air Reporting Prior to Arrival Canada Customs Review Admission to Canada CURRENT 4 Primary Examination 5 US/Canada Border Release (Rail/Truck) Sealed & Transported to US Border 6 Delivery to US Destination 7 Assessment & Redress Secondary Examination PERIMETER 234 Marine or Air Reporting Prior to Arrival Canada/US Customs Examination Cargo Sealed Admission to Canada and conditionally released for U.S. Delivery 5 Expedited Transborder Lane (for Random/Selected Checks) Sealed & Transported to US Border 6 Delivery to US Destination Rail/Truck Registered Driver 1 Advanced Information Transmission 7 Assessment & Redress Detention Secondary Examination Transmission of information to / from the INTEGRATED INFORMATION SYSTEM © 2002 Perimeter Clearance Coalition 13 Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century

14 Goods Flow 2: Transborder Clearance: Pre-determined Low Risk U.S. or Canadian Goods Crossing in Either Direction Key Benefits 80% of trucks can clear at primary without queuing Eliminates waiting delays and congestion at the border Facilitates just in time delivery Reduces costs and enhances competitiveness Reduces train disassembling at 49th Parallel Significantly reduces environmental discharges of hydrocarbons, carbon monoxide (CO) and nitrous oxides (NOx) Challenges Requires implementation of a joint low-risk passenger system (NEXUS) as 85% of vehicles are cars. Known low-risk car traffic needs to be facilitated to allow streaming of pre-determined low risk trucks for expedited access Requires streaming of traffic (see diagram on subsequent page), segregating and facilitating known pre-approved low-risk, queuing all unknown and other cars and trucks for increased scrutiny. This is key to improved security and efficient processing of pre-determined low risk trade and people Requires driver registration Requires legislation to permit US/Canada officials to administer own statutes in the other country to allow primary examinations to be performed in the most efficient way CURRENT PERIMETER 123 Complete Registration and approval for low-risk designation (Companies, Goods, Drivers) EDI/Internet Transmission of Shipment Data to Customs Customs Review/Decision Prior to Arrival or For Line Release and BRASS bar code is wanded at arrival 4 Expedited Transborder Lane (Random/Selected Checks) 5 Delivery to Destination Similar but very limited -- no expedited access to primary processing (delayed in regular truck & car queues) 6 Assessment & Redress Transmission of information to / from the INTEGRATED INFORMATION SYSTEM © 2002 Perimeter Clearance Coalition 14 Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century

15 Goods Flow 3: Transborder Clearance: High or Unknown Risk US or Canadian Goods Crossing in Either Direction CURRENT SYSTEM is essentially the same for both cases, with higher volumes in these categories than would occur with the proposed perimeter clearance system. Key Benefits Proposed Perimeter and Pre-Determined Low Risk Clearance System will result in more importers and carriers applying for expedited programs with streaming access. Allows identification and increased focus on the other than known low risk category, thereby increasing enforcement capability and threat detection. Challenges Requires appropriation of required staff, technology, inspection equipment and intelligence capability to process this risk category at a pace which avoids congestion build-up, so as to prevent expedited access of pre-determined low risk to the border crossing. PERIMETER CASE 2 : INITIAL REPORTING AT ARRIVAL 123 Arrival at US/Canada Border Unannounced Customs Primary Examination Refer to Customs Secondary Compliance Verification/ Examination 4 Release Detention 5 Delivery to Destination 6 Assessment & Redress PERIMETER CASE 1 : REPORTING PRIOR TO ARRVIAL AND RISK DETECTED 123 Complete Registration and approval for low-risk designation (Companies, Goods, Drivers) EDI/Internet Transmission of Shipment Data to Customs Customs Review/Decision Prior to Arrival and Finds risk 4 Examination Upon Arrival 5 Release Secondary Examination 6 Delivery to Destination Detention 7 Assessment & Redress Transmission of information to / from the INTEGRATED INFORMATION SYSTEM © 2002 Perimeter Clearance Coalition 15 Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century

16 Lower cross border logistics Reduction by 20% of cross border logistics ~$ 4 billion/ year Flows through to Lower Cost of Products Just-in-time production efficiencies Increased Trade in Goods due to reduced Costs GOODS MOVEMENT Efficient border facilities Higher degree of logistics choices Reduced facilitation costs Lower operating costs Delay Time Savings Operating Cost of Trucking & Rail $200 million / year Efficient border facilities Delayed costs of building new facilities ~$100 million/ year Just in Time & Logistics Efficiencies 8% reduction in non-border logistics ~$5 billion/ year Additional new economic functions locating in Canada/US Stimulated New Economic Activity © 2002 Perimeter Clearance Coalition 16 Order of Magnitude Benefits from Perimeter Clearance: Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century

17 Delay Time Savings 75% of trucks & 65% of cars eliminated from queuing 4.4 million hours saved / year Gasoline & Diesel Trucks: $3 million / year Cars : $2 million / year More efficient use of existing facilities & infrastructure 50% less emissions at land border crossings 71,000 lbs HC 990,000 lbs CO 124,000 lbs NO x Health Care Costs, loss of life, pain & suffering, lost productivity © 2002 Perimeter Clearance Coalition 17 Environmental Benefits from Perimeter Clearance Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century enhanced security and facilitation Reduced Queues Reduced Emissions Health Costs Savings Less fuel Consumption Lower environmental footprint ENVIRONMENT

18 © 2002 Perimeter Clearance Coalition Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century 18 INTEGRATED INFORMATION SYSTEM Pre-registration International Arrival to Canada (Entry Tracking) VISITOR NO CARD Entry Process Visit/Stay in Canada Connecting Flights to U.S. Transit to U.S. Aircraft Gate Exit Tracking Visit/Stay in U.S. Intl Departures from U.S./Canada PERIMETER U.S CANADA BORDER NO CARD Entry Process 18 © 2002 Perimeter Clearance Coalition

19 19 Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century

20 Passenger Flow 1: International Travel to either Canada or US (One Country Admission) Key Benefits Improve risk management More secure visa application process Confirmation of international arrival with positive identification Provide capabilities for determining identity of individuals with documents lost in transit Faster transaction times for processes; more efficient flow in passenger traffic Challenges Securing transmission of information from different points of the globe Developing incentives for non-visa requiring visitors to apply for Perimeter Card 23 International Marine or Air Arrival Customs Clearance Admission to Country 1 CURRENT A Visa Application WHERE APPLICABLE Transmission of information to / from the INTEGRATED INFORMATION SYSTEM PERIMETER CARDHOLDERS 13 International Marine or Air Arrival Expedited Biometric Kiosk Clearance Admission to Country A Perimeter Card (one-time application) + Visa if applicable 2 20 Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century © 2002 Perimeter Clearance Coalition

21 Passenger Flow 2: International Travel to Canada & U.S. (Dual Country Admission) Key Benefits Maintenance of sovereignty in admission policies Common platform for providing admission to one country or both, coded to the individual Faster transaction times for processes; more efficient flow in passenger traffic Streamlining steps and queues for the passenger Challenges Establishment of single-window visa process & cross-designation Securing transmission of information from different points of the globe Developing incentives for non-visa requiring visitors to apply for Perimeter Card Admission to Second Country 2 3 International Marine or Air Arrival Customs Clearance Admission to First Country 4 U.S./Canada Border (land/air/sea) 51 CURRENT A Visa Application (Canada) B Visa Application (US) WHERE APPLICABLE INTRANSIT PRECLEARANCE Transmission of information to / from the INTEGRATED INFORMATION SYSTEM PERIMETER CARDHOLDERS Perimeter Card (one-time application) + Visa (single window process) if applicable 13 International Marine or Air Arrival Expedited Biometric Kiosk Clearance Admission to one country or both Arrival to Second Country 5 Expedited US/Canada Border Processes (land/air/sea) A24 INTRANSIT PRECLEARANCE 21 Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century © 2002 Perimeter Clearance Coalition

22 Passenger Flow 3: Travel Between US & Canada Key Benefits Faster transaction times for processes; more efficient flow in passenger traffic Common expedited processes between countries Shared card between different modes of transport Builds upon CANPASS/INSPASS/NEXUS projects Positive identification of individuals and their vehicles Maintenance of current processes for infrequent travelers Challenges Awareness of programs for frequent travellers Common bi-national standards for positive identification Privacy and data sovereignty Positive identification procedures for buses & rail modes 2 US/Canada Border Clearance (all modes of transport) Admission to Other Country 1 CURRENT Transmission of information to / from the INTEGRATED INFORMATION SYSTEM PERIMETER CARDHOLDERS A Perimeter Card (one-time application) 12 Expedited Positive Identification Clearance (all modes of transport) Admission to Other Country 22 Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century © 2002 Perimeter Clearance Coalition

23 Passenger Flow 4: Outbound International Travel Key Benefits Exit tracking for foreign nationals to visa stays Integration of airline check-in process to Perimeter Card & positive identity authentication Faster transaction times for processes; more efficient flow in passenger traffic Platform for hit-lists to prevent passage through security screening of terrorist suspects or other threats Exit-tracking to be integrated with passenger/baggage match systems and to supplement advanced passenger information/passenger name record data transmissions Challenges Appropriate level of biometrics to be implemented for exit control Exit tracking for non-visa foreign nationals with adequate level of positive identity verification Identity verification for API database entries for non-Perimeter Clearance Boarding card differentiation (e.g. color) for Perimeter Clearance cardholders to trigger use of biometric prior to boarding 23 Marine or Air Check-in Boarding Gate Aircraft or Marine Flight 4 Destination 1 CURRENT TRANSIT VIA OTHER PERIMETER COUNTRY 3b SECURITY PERIMETER CARDHOLDERS 23 Marine or Air Check-in Boarding Gate Aircraft or Marine Flight 4 Destination 1 TRANSIT VIA OTHER PERIMETER COUNTRY 3b EXIT CONTROL SECURITY Transmission of information to / from the INTEGRATED INFORMATION SYSTEM 23 Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century © 2002 Perimeter Clearance Coalition

24 Increase in Business travelers due to assurance of improved security Higher Throughput on Existing Facilities Deferred Capital Expansion Costs Airports & Ports New transportation services Addition of 1% more traffic from improved connection times Passenger Time Savings Time Value of Money Increase in Tourism & Accommodation Expenditures Addition of 1% more tourism expenditures. $125 million / year $35 million / year $50 million / year $1 Billion / year $10 Million/ year Time savings More efficient facilities (border /passenger terminal) Transportation Carrier Market Development (e.g. air services) Increased Tourism Expenditures Increased trade in services PASSENGER TRAVEL 24 Order of Magnitude Benefits from Perimeter Clearance: Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century © 2002 Perimeter Clearance Coalition

25 25 Summary of Enhanced Requirements for Perimeter Clearance Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century

26 © 2002 Perimeter Clearance Coalition 26 Perimeter Clearance Action Plan Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century

27 © 2002 Perimeter Clearance Coalition 27 Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century

28 © 2002 Perimeter Clearance Coalition 28 Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century

29 © 2002 Perimeter Clearance Coalition 29 Recent Key Developments - All Relevant To Perimeter Clearance Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century We have an important partner on the northern border who has been very helpful --- and that is Canada. There are numerous examples where cooperative efforts with the Canadians have helped to protect the northern border. U.S. INS Commissioner Ziglar

30 © 2002 Perimeter Clearance Coalition 30 We are working with Canada on biometric cards for permanent residents on a voluntary basis to monitor expedited entry and exit at the Northern Border US Homeland Security Director Gov. Tom Ridge NBC Meet the Press Feb 3, 2002 Recent Key Developments - All Relevant To Perimeter Clearance Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century The United States and Canadian tradition of cooperation and coordination has been long-standing, and is critical to the security of the northern border. The tradition was further promoted with the …Our Shared Border Accord. Along with commercial goods, the Accord addresses common security issues. U.S. INS Commissioner Ziglar October, 2001 Testimony before Congress on Northern Border Issues

31 © 2002 Perimeter Clearance Coalition 31 Recent Key Developments - All Relevant To Perimeter Clearance Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century

32 © 2002 Perimeter Clearance Coalition Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century 32 Gerry Bruno - Vancouver Paul Ouimet - Vancouver Solomon Wong - Vancouver Henry Ristic - Chicago Roland Dorsay - Ottawa (604) Allan Cocksedge - Ottawa Roland Dorsay - Ottawa (613) Perimeter Clearance Coalition web site Mo Garfinkle - Washington, DC Elliott Seiden - Washington, DC J.D. Phillips New York (716)

33 © 2002 Perimeter Clearance Coalition Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century 33 WASHINGTON AIRPORTS TASK FORCE VANCOUVER PORT AUTHORITY Perimeter Clearance Coalition Members CASCADE GATEWAY BORDER SECURITY COALITION Greater Vancouver Regional District A WORKING PARTNERSHIP OF 21 MUNICIPALITIES AND 1 ELECTORAL AREA


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