PRECLEARANCE Progress Update 1

Preclearance at 8 major Canadian airports Pre-inspection in the rail and marine environments in British Columbia PRECLEARANCE Current State 2

Relief of congestion at U.S. airports Provision of efficient and convenient experience for travelers Rail and marine pre-inspection provides predictability and reduced delays for carriers PRECLEARANCE Travel Facilitation Benefits 3

More efficient use of infrastructure, while increasing throughput Preclearance reduces detention and support costs associated with apprehensions PRECLEARANCE Cost Saving and Operational Efficiencies 4

Preclearance locations produce a higher annual average rate of inadmissible interceptions than U.S. POEs, intercepting inadmissible persons and security threats before they leave the other country Preclearance fosters bilateral cooperation in diplomatic, law enforcement, and international security issues PRECLEARANCE Security benefits 5

“We will negotiate (…) a preclearance agreement in the land, rail and marine modes to provide the legal framework and reciprocal authorities necessary for the Canada Border Services Agency and U.S. Customs and Border Protection to effectively carry out their security, facilitation and inspection processes in the other country. Concurrently, and as part of those negotiations, the authorities of inspecting officers described in the Canada-U.S. Air Transport Preclearance Agreement will be reviewed and amended, on a reciprocal basis, to be comparable to those exercised at airports by officers of the host country.” PRECLEARANCE The Beyond the Border Action Plan Commitment 6

Negotiations are ongoing and progressing well: both parties are in agreement and committed with the objective of the Action Plan A land, rail and marine preclearance agreement would create the framework to allow preclearance activities to new locations in both countries when and where it make sense, such as: – CBSA preclearance at Massena, NY – Upgrade from pre-inspection to full preclearance at Vancouver, B.C. for passenger rail and cruise ship traffic destined for the United States – Colocation at small and remote ports of entry Update the Air Preclearance Agreement could set the stage for future expansion in the air mode PRECLEARANCE Progress and Potential 7

PRECLEARANCE Questions and Comments 8