Customs Notice 13-010

Ottawa, April 29, 2013

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Cargo Control and Sufferance Warehouse Modernization

1. This notice is for the attention of all sufferance warehouse owners/operators.

2. The Canada Border Services Agency (CBSA) is currently reviewing its cargo and sufferance warehouse policies and regulations. This review, which is known as the Cargo Control and Sufferance Warehouse Modernization (CCSWM) initiative, is looking to simplify the in-bond movement of goods and the storage requirements of these goods at warehouse facilities. The initiative excludes the review of current policies and regulations that cover other CBSA warehouse programs such as Customs Bonded Warehouses and Duty-Free Shops.

3. Under warehouse modernization, when fully implemented, carriers who accept the liability for the goods will be able to move unreleased, secured cargo in-land directly to their own or a shared CBSA-registered warehouse. All imported shipments will continue to be risk assessed by the CBSA at the First Point of Arrival (FPOA) for reasons of health, safety and security. In-land examinations will be conducted at designated locations instead of at each warehouse facility.

4. The decision to modernize the sufferance warehouse program will permit the CBSA to better align activities to the priorities of Canadians and the Government of Canada and allow for more effective and efficient delivery of Agency services.

5. As part of the move to streamline rules and regulations, the CBSA intends to amend the Customs Sufferance Warehouse Regulations and associated policies, procedures and legislation. These changes will enable the CBSA to provide continued national program consistency through policy alignment with the Agency's eManifest initiative.

6. Key changes being considered to the current sufferance warehouse program include:

• (a)  Revising the licensing process;
• (b)  Reducing the number and types of warehouse designations;
• (c)  Removing certain restrictions including various storage time-limits, class of goods requirements, access to facilities, allowable cargo activities, etc.;
• (d)  Permitting operators to co-store domestic and in-bond goods in the same area of the warehouse; and
• (e)  Establishing Integrated Examination Facilities for the purpose of inland CBSA examinations.

7. In addition to the key changes listed above, under eManifest, warehouse operators will be required to have Electronic Data Interchange (EDI) capability when doing business with the CBSA. EDI capability is required in order to transmit electronically, via the EDI, an arrival message to the CBSA for each in-bond shipment that is received in a warehouse and for the warehouse to receive Release Notification System (RNS) messages from the CBSA. For further information about RNS, you may visit the CBSA's Electronic Commerce Unit Web page at: www.cbsa.gc.ca/eservices/.

8. As various pieces of Agency legislation and regulations will have to be amended, the CBSA anticipates that some of these modernization processes may take up to 24 months to be fully implemented.

9. Consultations are underway with industry associations, other government departments, and internal CBSA areas; you will continue to receive updates as the CCSWM initiative progresses.

10. Should you require additional information regarding this notice, please contact:

Cargo Control and Sufferance Warehouse Modernization Unit
Canada Border Services Agency
150 Isabella Street, 5^th Floor
Ottawa ON  K1A 0L8
E-mail: CCSWM-MCFEA@cbsa-asfc.gc.ca