Update on the Cargo Control and Sufferance Warehouse Modernization (CCSWM) Initiative

Home » Update on the Cargo Control and Sufferance Warehouse Modernization (CCSWM) Initiative

April 1, 2014 – Coming into effect on that date is the elimination of the annual licensing fee for customs sufferance warehouses in Canada. The CBSA published Customs Notice 13-022 to announce that the Customs Sufferance Warehouses Regulations will be amended in order to indicate that the annual licence fee will be removed.

A look at the Cargo Control and Sufferance Warehouse Modernization (CCSWM) Initiative

As announced in Customs Notice 13-010, The Cargo Control and Sufferance Warehouse Modernization (CCSWM) initiative will improve the in-bond movement of imported goods without compromising the safety and security of Canada. The plan is to revise warehouse licensing processes in order to allow approved carriers to deliver their shipments directly to their own warehouse facilities instead of a sufferance warehouse facility. Implementing the new CCSWM initiative is estimated to take as long as 24 months.

Mandatory Electronic Notification of Cargo Arrival at Sufferance Warehouses

Customs Notice 13-018 announced the new modernized procedures that will have to be used for mandatory electronic notifications and tracking prior to the arrival of cargo shipments. Please note that import goods that fall under the Courier Low Value Shipment (LVS) guidelines will be exempt from the Cargo Arrival Certification electronic message mandate.

The Cargo Arrival Certification message must be transmitted in the CBSA’s Release Notification System (RNS) by a Customs broker or registered participant using an Electronic Data Interchange (EDI) method. This requirement will apply to all types of operators, including various CBSA-licensed sufferance warehouses. The CBSA has stated that they will advise operators of the change prior to the mandatory compliance date.

The Cargo Arrival Certification message will replace the manual arrival and liability transfer process that currently requires that warehouse operators authorize the waybill, bill of lading, cargo control document, or other similar documentation submitted by the Customs broker or shipment carrier. Warehouse operators will no longer be allowed to submit Cargo Arrival Certification messages using the eManifest Portal.

Inland Examinations and Assessments

To ensure the health and prosperity of Canadians, the CBSA will continue to monitor the registration of warehouse operators and the processing of Customs documentation. The CBSA will conduct inland examinations at designated locations instead of inside sufferance warehouse facilities. All import shipments will still be assessed by the CBSA at the first point of arrival.

The following objectives will be addressed in the CCSWM initiative:

– Revisions to the warehouse licensing process.
– Establishment of an integrated examination facility for inland CBSA examinations.
– The removal of certain restrictions including storage time limits, access to facilities, class of goods requirements, and allowable cargo activities.
– A reduction in the number and types of warehouse designations.
– Allowing warehouse operators to co-store domestic and in-bond goods in the same area of their facility.

This modernization initiative is designed to make cross-border shipments easier for the CBSA, Customs brokers, international businesses, and warehouse operators. Please contact Dilas International Customs Brokers if you have any questions or concerns about how these proposed changes will affect your cross-border shipments.

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