How Do Cabotage Laws Impact Cross Border Carriers?

How Do Cabotage Laws Impact Cross Border Carriers?

With the current requirements for electronic reporting by carriers entering Canada and the United States through the Advance Commercial Information (ACI) and ACE programs, it will become more readily apparent to Canada Border Services Agency (CBSA) and U.S. Customs and Border Protection (CBP) if pickups and deliveries have violated the Rules of Cabotage.

ACI eManifest Implementation Updates - Now What?

What Is Cabotage?

Canada Border Services Agency (CBSA) defines cabotage as the practice of point-to-point movement of domestic goods within Canada by foreign-based conveyances and operators.

How Does This Affect You As A Carrier?

Under the ACI and ACE programs, all carriers "For Hire" who engage in cross-border transportation will be required to provide conveyance information on all movements. This will provide CBSA and CBP with electronic data on all equipment entering their respective countries.

How Can A Carrier Stay Compliant?

Carriers have the responsibility to:

  1. Understand regulations regarding cabotage,
  2. Know what constitutes a permissible incidental or re-positioning move, and
  3. Ensure that they are in compliance
questions about compliance regulations
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About Author
Taryn Hannah

Taryn Hannah is General Manager for PCB Canadian Operations, directly overseeing the Release, Trade Compliance, and Office Administration teams. Taryn has been a trade professional since 2005, specializing in strategic and operational process building and management. She began her career with PCB in release operations, which built a strong foundation in many entry modes. In 2010 Taryn became the Supervisor of our Trade Compliance Group, working with staff and clients to understand regulatory documentation, labeling, data, and timing requirements for all imports into Canada. Over the years, she has become an expert in Participating in Government Agency dealings and has been called upon to speak at events such as Vancouver Fashion Week and various customized courses for industry and associations. Taryn has been recognized for her expert knowledge by receiving the designations of Customs Compliance Specialist (CCS) and Certified Trade Compliance Specialist (CTCS) from the Canadian Society of Customs Brokers.

While we strive for accuracy in all our communications, as the Importer of Record it is incumbent upon your company to ensure that you are aware of the requirements under the new regulations so that you maintain compliance as always.