© 2002 Perimeter Clearance Coalition
April, 2002
Expediting Bilateral Trade & Travel
Securing Our External Borders
Perimeter Clearance StrategyTO REALIZE A SMART BORDER FOR THE 21ST CENTURY
2© 2002 Perimeter Clearance Coalition
Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century
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 ClearancePerimeter ClearanceIS IS NOTNOT
3© 2002 Perimeter Clearance Coalition
Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century
Perimeter Clearance VisionPerimeter 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
BeneficiariesBeneficiaries
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
BenefitsBenefits
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
Key Elements ofKey Elements ofPerimeter Clearance Perimeter Clearance
Perimeter Security
Perimeter Clearance for Goods
Economic Security Through Expedited Low Risk
Cross Border Trade and Travel
Canada-U.S. Land Border CrossingCanada-U.S. Land Border CrossingMovements Streamed by Risk AssessmentMovements 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 asLow-Risk
High Risk(Not Cleared)
High Risk(Not Cleared)
Unknown
Cleared asLow-Risk
?
?
© 2002 Perimeter Clearance Coalition 7Note: 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
NEXUS-TYPECARS (20+%)AUTOMATEDVERIFICATION
Canada-U.S. Land Border CrossingCanada-U.S. Land Border Crossing “Traffic Streaming” “Traffic Streaming”
Applicable for Entrance in Either US or CanadaAnd Either In-Country, or In-Other-Country
REGULARCARSBOOTHS
NO PRE-SCREENING
EXPEDITEDPROCESSES
PRE-CLEARED ANDKNOWN LOW RISK TRUCKS (80%)
REGULARTRUCKSUNKNOWN RISKNO 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
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 Key Actions to Achieve Traffic StreamingStreaming
10© 2002 Perimeter Clearance Coalition
Case StudiesCase StudiesPerimeter Clearance Strategy to Realize a Smart Border for the 21st Century
11© 2002 Perimeter Clearance Coalition
Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century
© 2002 Perimeter Clearance Coalition 12
Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century
Goods Flow 1: International Goods Clearance to TransborderDestinations (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 country’s 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
1 2 3
Marine or AirReporting Prior
to Arrival
CanadaCustomsReview
Admissionto Canada
CURRENT 4
PrimaryExamination
5
US/Canada Border Release(Rail/Truck)
Sealed & Transported toUS Border
6
Deliveryto US
Destination
7
Assessment&
RedressSecondaryExamination
PERIMETER2 3 4
Marine or AirReporting Prior
to Arrival
Canada/USCustoms
Examination
Cargo Sealed Admission to Canada
and conditionally releasedfor U.S. Delivery
5
ExpeditedTransborder Lane
(for Random/SelectedChecks)
Sealed & Transported toUS Border
6
Deliveryto US
Destination
Rail/TruckRegistered Driver
1
AdvancedInformation
Transmission
7
Assessment&
Redress
DetentionSecondary
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
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
PERIMETER1 2 3
CompleteRegistration
and approval forlow-risk designation
(Companies, Goods, Drivers)
EDI/InternetTransmission of
Shipment Data toCustoms
CustomsReview/DecisionPrior to Arrival
orFor Line Release andBRASS bar code is wanded at arrival
4
ExpeditedTransborder Lane(Random/Selected
Checks)
5
Deliveryto
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
Goods Flow 3: Transborder Clearance: High or Unknown RiskUS 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
1 2 3
Arrival atUS/Canada Border
Unannounced
CustomsPrimary Examination
Refer to Customs SecondaryCompliance Verification/
Examination
4
Release
Detention
5
Deliveryto
Destination
6
Assessment&
Redress
PERIMETER CASE 1 : REPORTING PRIOR TO ARRVIAL AND RISK DETECTED
1 2 3
CompleteRegistration
and approval forlow-risk designation
(Companies, Goods, Drivers)
EDI/InternetTransmission of
Shipment Data toCustoms
CustomsReview/DecisionPrior to Arrivaland Finds risk
4
ExaminationUpon
Arrival
5
Release
SecondaryExamination
6
Deliveryto
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
Lower cross border logisticsReduction by 20% of crossborder logistics~$4 billion/ year
Flows through toLower Cost of Products
Just-in-timeproductionefficiencies
Increased Trade in Goodsdue to reduced Costs
GOODS MOVEMENT
Efficientborderfacilities
Higher degreeof logistics
choices
Reducedfacilitation
costs
Loweroperating
costs
Delay Time SavingsOperating Cost of Trucking & Rail$200 million / year
Efficient border facilitiesDelayed costs of building new facilities~$100 million/ year
Just in Time & Logistics Efficiencies8% reduction in non-border logistics~$5 billion/ year
Additional new economic functionslocating in Canada/USStimulated New Economic Activity
© 2002 Perimeter Clearance Coalition 16
Order of Magnitude Benefits from Order of Magnitude Benefits from Perimeter Clearance:Perimeter Clearance:
Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century
Delay Time Savings75% of trucks & 65% of carseliminated from queuing
4.4 million hours saved / year
Gasoline & DieselTrucks: $3 million / yearCars : $2 million / year
More efficient use of existingfacilities & infrastructure
50% less emissions at landborder crossings71,000 lbs HC 990,000 lbs CO124,000 lbs NOx
Health Care Costs, loss of life,pain & suffering, lost productivity
© 2002 Perimeter Clearance Coalition 17
Environmental BenefitsEnvironmental Benefitsfrom Perimeter Clearancefrom Perimeter Clearance
Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century
enhanced securityand facilitation
ReducedQueues
ReducedEmissions
HealthCosts
Savings
Less fuelConsumption
Lowerenvironmentalfootprint
ENVIRONMENT
18© 2002 Perimeter Clearance Coalition
Perimeter Clearance Strategy to Realize a Smart Border for the 21st CenturyINTEGRATED INFORMATION SYSTEM
Pre-registration
InternationalArrival toCanada
(Entry Tracking)
VISITOR
NO CARD
EntryProcess
Visit/Stay inCanada
ConnectingFlights to
U.S.
Transit to U.S.
Aircraft GateExit Tracking
Aircraft GateExit Tracking
Visit/Stay inU.S.
Int’l Departuresfrom U.S./Canada
PERIMETER
U.S
CANADA
BORDER
NO CARD
EntryProcess18
© 2002 Perimeter Clearance Coalition
© 2002 Perimeter Clearance Coalition 19
Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century
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
2 3
InternationalMarine or Air
Arrival
CustomsClearance
Admissionto Country
1
CURRENT
A
VisaApplication
WHERE APPLICABLE
Transmission of information to / from the INTEGRATED INFORMATION SYSTEM
PERIMETERCARDHOLDERS
1 3
InternationalMarine or Air
Arrival
Expedited
Biometric
KioskClearanc
e
Admissionto 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
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
Admissionto SecondCountry
2 3
InternationalMarine or Air
Arrival
CustomsClearance
Admissionto FirstCountry
4
U.S./CanadaBorder
(land/air/sea)
51
CURRENT
A
VisaApplication(Canada)
B
VisaApplication
(US)
WHERE APPLICABLEINTRANSIT PRECLEARANCE
Transmission of information to / from the INTEGRATED INFORMATION SYSTEM
PERIMETERCARDHOLDERS
Perimeter Card(one-time application)
+Visa (single window
process) if applicable
1 3
InternationalMarine or Air
Arrival
ExpeditedBiometric
KioskClearance
Admissionto one
countryor both
Arrivalto SecondCountry
5
ExpeditedUS/Canada
BorderProcesses
(land/air/sea)
A 2 4
INTRANSIT PRECLEARANCE
21
Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century
© 2002 Perimeter Clearance Coalition
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/CanadaBorder
Clearance (all modes of transport)
Admissionto
Other Country
1
CURRENT
Transmission of information to / from the INTEGRATED INFORMATION SYSTEM
PERIMETERCARDHOLDERS
A
Perimeter Card(one-time application)
1 2
ExpeditedPositive
IdentificationClearance
(all modes of transport)
Admissionto OtherCountry
22
Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century
© 2002 Perimeter Clearance Coalition
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
2 3
Marine or AirCheck-in
BoardingGate
Aircraft or MarineFlight
4
Destination
1CURRENT
TRANSIT VIA OTHERPERIMETER COUNTRY
3b
SECURITY
PERIMETERCARDHOLDERS
2 3
Marine or AirCheck-in
BoardingGate
Aircraft or MarineFlight
4
Destination
1
TRANSIT VIA OTHERPERIMETER COUNTRY
3bEXIT
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
Increase in Business travelersdue to assurance of improved security
Higher Throughput on Existing FacilitiesDeferred Capital Expansion CostsAirports & Ports
New transportation servicesAddition of 1% more traffic from improvedconnection times
Passenger Time SavingsTime Value of Money
Increase in Tourism & AccommodationExpendituresAddition of 1% more tourism expenditures.
$125 million / year
$35 million / year
$50 million / year
$1 Billion / year
$10 Million/ year
Timesavings
More efficientfacilities
(border /passengerterminal)
Transportation Carrier Market Development
(e.g. air services)
IncreasedTourism
Expenditures
Increasedtrade
in services
PASSENGER TRAVEL
24
Order of Magnitude Benefits from Order of Magnitude Benefits from Perimeter Clearance:Perimeter Clearance:
Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century
© 2002 Perimeter Clearance Coalition
© 2002 Perimeter Clearance Coalition 25
Summary of Enhanced Requirements Summary of Enhanced Requirements for Perimeter Clearancefor Perimeter Clearance
Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century
© 2002 Perimeter Clearance Coalition 26
Perimeter Clearance Action PlanPerimeter Clearance Action PlanPerimeter Clearance Strategy to Realize a Smart Border for the 21st Century
© 2002 Perimeter Clearance Coalition 27
Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century
© 2002 Perimeter Clearance Coalition 28
Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century
© 2002 Perimeter Clearance Coalition 29
Recent Key Developments - All Relevant To Perimeter ClearanceRecent Key Developments - All Relevant To Perimeter ClearancePerimeter 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
© 2002 Perimeter Clearance Coalition 30
“We are working with Canadaon biometric cards for permanent residentson a voluntary basis to monitor expedited
entry and exit at the Northern Border”
US Homeland Security Director Gov. Tom RidgeNBC Meet the Press Feb 3, 2002
Recent Key Developments - All Relevant To Perimeter ClearanceRecent Key Developments - All Relevant To Perimeter ClearancePerimeter 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 ZiglarOctober, 2001 Testimony before
Congresson Northern Border Issues
© 2002 Perimeter Clearance Coalition 31
Recent Key Developments - All Relevant To Perimeter ClearanceRecent Key Developments - All Relevant To Perimeter ClearancePerimeter 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
Gerry Bruno - Vancouver
Paul Ouimet - Vancouver
Solomon Wong - Vancouver
Henry Ristic - Chicago
Roland Dorsay - Ottawa
(604) 717-1800
Allan Cocksedge - Ottawa
Roland Dorsay - Ottawa
(613) 782-2336
Perimeter Clearance CoalitionPerimeter Clearance Coalitionemail: [email protected]: [email protected]
web site www.perimeterclearance.orgweb site www.perimeterclearance.org
Mo Garfinkle - Washington, DC
Elliott Seiden - Washington, DC
J.D. Phillips
New York
(716) 754-8824
33© 2002 Perimeter Clearance Coalition
Perimeter Clearance Strategy to Realize a Smart Border for the 21st Century
33
C A N A D I A N A I R P O R T S C O U N C I LC A N A D I A N A I R P O R T S C O U N C I L
C A N A D I A N A I R P O R T S C O U N C I LC A N A D I A N A I R P O R T S C O U N C I LWASHINGTON AIRPORTS
TASK FORCEVANCOUVER PORT AUTHORITY
CITY OFBLAINE,
WA
CITY OFWHITE ROCK,
BC
TOURISM VANCOUVERTOURISM VANCOUVER
Perimeter Clearance CoalitionPerimeter Clearance CoalitionMembersMembers
CASCADE GATEWAY BORDER SECURITY COALITION
Greater
Vancouver
Regional
DistrictA WORKING PARTNERSHIP OF
21 MUNICIPALITIES AND 1ELECTORAL AREA