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.
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:
- Understand regulations regarding cabotage,
- Know what constitutes a permissible incidental or re-positioning move, and
- Ensure that they are in compliance