CANADA House of Commons Debates VOLUME 137 Ï NUMBER 083 Ï 1st SESSION Ï 37th PARLIAMENT OFFICIAL REPORT (HANSARD) Friday, September 21, 2001 Speaker: The Honourable Peter Milliken CONTENTS (Table of Contents appears at back of this issue.) All parliamentary publications are available on the ``Parliamentary Internet Parlementaire´´ at the following address: http://www.parl.gc.ca 5419 HOUSE OF COMMONS Friday, September 21, 2001 The House met at 10 a.m. arrival authorization mechanisms. This will bring about a funda- mental change to the way the customs agency operates. Prayers I must reiterate that prior to the tragic events in the United States and even more so since, the agency has always had as its priority the security of Canadians, protection of our border, the integrity of major GOVERNMENT ORDERS trade corridors and reinforcement of the North American perimeter. Ï (1000) [English] [Translation] The risk management approach to border management called for CUSTOMS ACT in the customs action plan will enable the government to better uphold these priorities. While we must take measures to enhance the Hon. Martin Cauchon (Minister of National Revenue and safety and security of Canadians and our border, let us not forget our Secretary of State (Economic Development Agency of Canada other important responsibility of ensuring the prosperity of the for the Regions of Quebec), Lib.) moved that Bill S-23, an act to Canadian economy. amend the Customs Act and to make related amendments to other Acts , be read the second time and referred to a committee. International trade and tourism are considered the lifeblood of the Canadian economy. Let us not forget our accountability to Canadians He said: Mr. Speaker, I am pleased to speak today on Bill S-23, a to ensure their continuity. bill aimed at modernizing the entire administration of Canadian customs operations. It addresses an action plan that will make it In order to support the government's international trade agree- possible to have better risk management at Canada's borders and to ments and its agenda for trade and tourism, the agency needs to meet the needs of the entire Canadian population in this modern age, modernize the way it carries out its customs operations. that is the era of globalization, and its realities, of which we are all aware. In today's ever changing environment, one of our key goals is to As I said earlier this week, it is particularly important that this bill maintain the flow of legitimate trade and travel across the border. be passed without delay so that we may have the tools we need to enhance our capacity to recognize high-risk individuals and goods at As we know, the final elimination of duties between Canada and the border before they enter Canada and North America. the U.S. has further stimulated trade and enhanced both our economies. Over the past five years the volume of trade and travel I wish to reiterate in the House that the Canada Customs and has steadily increased. Every day we process 40,000 commercial Revenue Agency takes the security of Canada's borders very entries representing well over $300 billion worth of import trade seriously. We work in close collaboration with our federal and each year. international partners, sharing information and technologies. More than 100 million travellers cross our border each year and We also have a very close working relationship with our over 80% of these travellers come from the U.S. counterparts in U.S. customs and immigration. We are however also aware that border management is a constantly evolving process. Ï (1005) That is why we have established a plan on which we have been The CCRA has met the challenges of the last decade in working for some time. responding to globalization, changing business practices and Thanks to the changes proposed by Bill S-23, the agency will be advancing technology. All this economic activity has had a major able to focus its efforts on high risk travellers and goods while impact on customs operations on both sides of the border. simplifying border crossings for those in the low risk category. We are in good shape today with a range of enforcement We will be in a position, before these reach the border, to combine initiatives and services that support the protection of Canadians and risk management techniques and the transmission of information the competitiveness of business. We are certainly proud of our obtained with leading-edge technology and through the use of pre- successes so far. 5420 COMMONS DEBATES September 21, 2001 Government Orders However, we are also aware of the gap that is growing between penalties that will vary in severity depending on the type and the increasing workload and the resources we have available to severity of the offence committed. achieve our goals. This has forced us to re-evaluate how we carry out our dual mandate. In this context, the agency is aware that some of its clients may By launching our customs action plan, we have already taken a require a certain amount of time to familiarize themselves with all of huge step to meet this challenge. The next step takes place now with the requirements with which they will need to comply. This is why the passing of Bill S-23. importers will be given a transition period through April 1, 2002. [Translation] However, in the case of the customs self-assessment program, Our customs action plan is a crucial investment for the future. In some of the penalties will take effect as soon as the program is proposing innovative solutions to today's problems, the plan ensures implemented. that our customs' processes will not stand in the way of Canadians' prosperity. Ï (1010) The action plan provides for a complete risk management system [English] integrating the principles of pre-arrival data input and a system of prior approval, all thanks to technology. The passing of Bill S-23 would also bring exciting options for To support this approach we are putting in place a fair and travellers. Many people will have heard of the CANPASS highway effective system of sanctions. We believe Bill S-23 provides program which was pilot tested in a number of locations in recent practical measures to deal with non-compliance, from warnings to years. Under this permit based program, travellers pre-approved by a fines. These measures should have an impact on those who choose rigorous training process are permitted to use designated lanes at not to obey the rules. border crossings. Bill S-23 provides options that will facilitate border crossing and make it more productive in today's world. In essence, businesses and Another example is the expedited passenger processing system for individuals with a good history of compliance should be able to travellers. Under this new program, EPPS participants will be able to benefit. use an automated kiosk that will confirm their identity and membership in the program. Compliance with the law is the key to the success of this approach. Bill S-23 aims at improving compliance levels. We believe that improved service and simplified processing will encourage Another initiative is the harmonized highway pilot, also known as voluntary compliance. Nexus. Its goal is to provide a seamless service to pre-approved low risk travellers entering Canada and the U.S. at these border points Naturally, in keeping with the other part of our mandate which is using technology and a common card. to protect Canadian society, we will continue random checks and monitoring periodically to ensure compliance with Canada's customs I believe these initiatives will serve Canadians well by improving laws and regulations. the flow of people and goods across the border and by strengthening As part of the customs action plan, we will be implementing this our ability to do job number one: protecting Canadians. fall the customs self-assessment program. This program is a direct result of our consultations with members of the business community Amendments to the Customs Act proposed in Bill S-23 would who consider it their highest priority. The program is based on the allow for the introduction of advanced passenger information and principles of risk management which provide for agreements with passenger notification record. With those programs, customs officers proven clients. will receive certain prescribed information from commercial transportation companies and drivers, crew members and passengers Participating importers who have been rigorously selected prior to in advance of their arrival in Canada. their approval, will be able to use their own administrative system to meet our requirements for receipts and trade data. This will be a comprehensive self-assessment system supported by our audit It is important to clarify to the hon. member that this is not new activities. information. Customs officers can obtain the same information through questioning travellers and examining their travel documents. The program will also simplify the customs process by offering However, by receiving this information in advance, customs officers increased speed and certainty to pre-approved importers who use the will be able to make enlightened decisions prior to the arrival of services of pre-approved carriers and drivers to import low risk people thereby making it easier to identify high risk travellers and goods. There is no doubt this is a great step forward in border facilitating the movement of legitimate travellers. management. The monetary penalties set out in Bill S-23 aim to establish fair The agency will continue to be vigilant and will conduct random rules for businesses in Canada. This comprehensive set of penalties customs examinations. The instincts of our well trained, experienced will encourage people to observe the law, thanks to a series of customs officers will continue to be our guiding force.