Forward Regulatory Plan: 2017-2019
Export Reporting Regulatory Review

Description of the objective

Amendments to the existing regulations are required to modernize and strengthen the CBSA export program. The changes proposed are consistent with the strategic objectives of the CBSA and the views of the program's key stakeholders, and they mitigate gaps identified by the Office of the Auditor General in its  2015 audit on Controlling Exports at the Border.

The proposed changes include:

Definition of Exporter

According to the current definition in the regulations, an entity without a Business Number (BN) is not considered an "exporter". As a result, it is difficult for the CBSA to assess penalties against persons without BNs and it creates a security loophole. This results in a situation where the CBSA is unable to enforce the Customs Act against persons who attempt to circumvent export controls by neglecting to obtain a BN. This issue is equally of concern to internal and external stakeholders.

Mandatory Electronic Reporting

Exports can still be reported using paper forms. Paper-based export reporting is costly, time-consuming, and poses significant challenges for export risk assessment and targeting. Paper declarations must be manually risk assessed which is rarely feasible given current reporting timelines and limited program operational resources. Also, external stakeholders are being required to deal with the Agency electronically on the import side but not when it comes to exports. This specifically causes problems for customs service providers, freight forwarders and carriers who are developing systems and processes to deal with clients electronically. To mitigate risks and inefficiencies posed by paper reporting, the Agency is seeking to introduce mandatory e-reporting for commercial exports through regulatory amendment.

Summary Reporting Program

Summary Reporting allows approved exporters to report their exports monthly after the goods have left Canada. This means the goods cannot be risk assessed or examined before departure. The original purpose of this program was to facilitate the export of low-risk bulk and/or homogenous goods such as grain, lumber, coal, and pulp. However, the regulations currently do not allow for a risk assessment of the applicants and participants of this program or the requirement that they have trusted trader status. Amending the regulations will help to create an effective bulk and homogeneous reporting program with a risk assessment component for participants and clearly defined criteria for eligible participants and goods.

Enabling Act: Customs Act

Indication of business impacts

There may be business impacts. The "One-for-One" Rule and/or the small business lens may apply.

Public consultation opportunities

Consultations with internal and external stakeholders have been ongoing since the start of the review of the export program several years ago. These consultations will continue through the Border Commercial Consultative Committee.

Departmental Contact

Martin Burtt
Manager
Programs Branch
Canada Border Services Agency
Tel.: 613-948-7865
Martin.Burtt@cbsa-asfc.gc.ca



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