An Act to amend the Customs Act

This bill was last introduced in the 40th Parliament, 2nd Session, which ended in December 2009.

This bill was previously introduced in the 40th Parliament, 1st Session.

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment amends the Customs Act to clarify certain provisions and to make technical amendments to others. It also imposes additional requirements in customs controlled areas, amends provisions respecting the determination of value for duty, and modifies the advance commercial reporting requirements. Finally, it provides that regulations may incorporate material by reference.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Customs ActGovernment Orders

May 4th, 2009 / 5:50 p.m.
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Liberal

Shawn Murphy Liberal Charlottetown, PE

Mr. Speaker, I too, like the member, was a little taken aback by the secretary of state's comments. One would think that after all these years and discussions that the facts would certainly be known to the secretary of state, the one in the United States in charge of security.

However, to move on, the member asked an interesting question. Would this make any difference? I think it will, but it really has to be accompanied by some changes in the whole system,. There needs to be more infrastructure and more resources. If that is not there, this probably will not make a lot of difference. We can make all the laws we want, but we must have the systems, resources, proper infrastructure and proper technology, which is so important. Of course, we need the constant cooperation between the Canadian and American authorities, which is not always there now.

Again, I think that they are all part of one package. The next speaker is the member for Windsor West. I am sure that he will elaborate on the situation in Windsor and the infrastructure challenges that are in that city right now. I believe that is the busiest border in Canada.

To go back to the member's question, let us hope that the resources will increase. Let us hope that the infrastructure will improve and let us hope that this law will make a difference.

Customs ActGovernment Orders

May 4th, 2009 / 5:55 p.m.
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Liberal

John McKay Liberal Scarborough—Guildwood, ON

Mr. Speaker, I want to thank the hon. member for his response. He has highlighted two things: first, if no resources are put to this bill, then we really are truly wasting our time here; second, if there is no co-operation with the other side of the border, then we are also wasting our time.

I wonder if the hon. member could elaborate on the issues whereby we expand these search and seizure areas. We certify that, presumably, trucks inspected in these areas can go right through the border without further delay, and yet at the end of the day we actually have not improved the quality of exchange between the two countries.

Customs ActGovernment Orders

May 4th, 2009 / 5:55 p.m.
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Liberal

Shawn Murphy Liberal Charlottetown, PE

Mr. Speaker, to answer the question, I do not think we are wasting our time. I hope we are not wasting our time. This legislation, as I indicated in my remarks, has several positive elements. It is a step in the right direction. It allows the customs agents and officers more powers within certain areas, and it facilitates some of the pre-clearing information that is required.

These are just two components of an overall system that basically has to become more efficient. More resources are required. More co-operation between the American and Canadian authorities is necessary. There has to be much greater use of technology. There has to be a greater emphasis on infrastructure so that things will flow smoothly.

Until those things are done, there is probably going to be a thickening border, but let us hope that the government will continue to work on it. Let us hope that there will be improvements made.

Some funds have been identified, but I am not aware of a whole lot of improvements that have been made. I still get an awful lot of complaints myself. Again, I remain somewhat cautiously optimistic. Let us hope that the situation will improve to the benefit of Canadian businesses, American businesses, and the people who live in this country and in the United States.

Customs ActGovernment Orders

May 4th, 2009 / 5:55 p.m.
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Liberal

John McKay Liberal Scarborough—Guildwood, ON

Mr. Speaker, I wish I, too, could share the optimism of the hon. member. I would like to hope that this will actually improve our border. I wonder if he has any concerns with respect to these passenger lists, where once people are on the bad list, they are pretty well on there forever. It is extraordinarily difficult to get—

Customs ActGovernment Orders

May 4th, 2009 / 5:55 p.m.
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Conservative

The Deputy Speaker Conservative Andrew Scheer

Order. I will have to stop the member there to allow the hon. member for Charlottetown a few seconds to respond.

Customs ActGovernment Orders

May 4th, 2009 / 5:55 p.m.
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Liberal

Shawn Murphy Liberal Charlottetown, PE

Mr. Speaker, this is an issue that is raised in the House quite regularly. People get on this list and there does not seem to be any quick way to get off the list. It is an international issue just as much as it is a Canada-United States issue, although I believe it is driven by the United States. Again, there has to be some protocol, some method of adjudicating whether those individuals should legitimately be on that list. If there is no reason for them to be legitimately on the list, they should be taken off.

Customs ActGovernment Orders

May 4th, 2009 / 5:55 p.m.
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NDP

Brian Masse NDP Windsor West, ON

Mr. Speaker, it is a pleasure to rise today in debate on Bill S-2, An Act to amend the Customs Act, formerly Bill C-43, which was tabled in the last session of Parliament but did not make its way through the system.

Customs changes are worthy of engagement, especially at the committee level. There are elements of the bill that are very important for the men and women who are on the front line of defence for Canada with regard to our border situation. They face an extraordinary job, and the tasks at hand of balancing the issue of trade and security. They generally do a commendable job on a regular basis.

In my area, our customs officers not only protect but actually serve at times, even without the proper equipment and training. A number of years ago they had to borrow bullet-proof vests because there were not enough available. Now there are some better supports there and I am glad for that advancement.

The bill is important because it lays out the framework for our border crossings. There are 119 border crossings between Canada and the United States. Of those, 24 are international bridges and tunnels. Of those 24 international bridges and tunnels, two are privately held: one in Fort Francis and the other in Windsor, Ontario.

I will not go down that road just yet, but it is unfortunate because of that private ownership model, we pay incredible taxes. We have seen the owner-operator of that facility basically board up homes by buying them up in the adjacent area, which has led to social grief and also diminished property values at the expense of the community. That is surely a tragedy because there are other consequences.

Of the 119 crossings, approximately 29 of them have 80% of the traffic on a regular basis between our nations. When we look at the amount of volume of trade, over $1 billion a day, it is interesting to note that 40% of that happens along the Windsor-Detroit corridor. For those who are not familiar, there are four crossings that have that concentration in a two mile length of river front.

There is the Detroit-Windsor tunnel, owned by the city of Windsor on the Canadian side and the city of Detroit on the American side. They have a long-term lease agreement with Macquarie International. The CP Rail tunnel was built at approximately the same time, about 76 years ago. There are two single sleeve tunnels that are small. One has been expanded modestly but cannot accommodate the triple stackers. It can accommodate some train traffic, but a smaller amount.

Ironically, CP Rail inspection workers were basically fired from that location and moved up the rail line, which is a real travesty, because recently in a Transport Canada document I was able to obtain, it showed that during the inspection period process, 36% of the trains needed to be shopped out or failed the inspection, and there are pictures of derailments and so forth. This will be detrimental when we talk about the issues of border delays and issues around security, of which the bill has some elements.

When the United States learns of this change of policy, it will be very much concerned. We are concerned on the Canadian side because during that inspection process, we could not even get real numbers. There was also a leak of hazardous material from one of the tankers during that process. Now none of those trains will be inspected from Windsor pretty well all the way to Toronto and Montreal.

It is important to note that the trains involved in the derailment in Mississauga affected 200,000 people who had to be evacuated. Interestingly enough, that was before Katrina. That was the largest evacuation in North America up to that time. Those trains came out of Windsor, so we are really concerned about rail safety operations.

Past the CP Rail facility there is the Ambassador Bridge, which is owned by a private American citizen. Once again, this facility has the vast majority of truck and vehicle border crossings in this country. It has the highest fares too over most areas. It is double what the Blue Water Bridge charges in Sarnia. Then past that, there is the Detroit-Windsor truck ferry service, which is owned by a private American operator. It transports hazardous materials between our countries. Ironically, that operator has been recognized by the department of homeland security and has actually received grants because of its safe operation.

Interestingly enough, the owner of the Ambassador Bridge is grandfathered, so we pay for his customs officers. This is about the customs issues in the bill. Canadian taxpayers pay for that customs facility. Ironically, the hazardous material ferry operator actually had to go to court and finally settled with the federal government and has to pay for some of the services, inconsistent services in many respects, as the bridge has taken priority.

One of the good things we are dealing with in this bill is the ability to transfer information in advance for some vehicles, drivers and the trade merchandise so that it can be expedited through the system. It is an important improvement to diminish lineups and improve productivity.

There has been some good debate on these issues and whether this makes a difference. However, sadly enough, when there is a lack of staffing at the actual border facilities then we have a significant problem. We could have all the best products and policies in place and we could provide those powers but if we do not have the operators in place to do the work, then we defeat the whole purpose and we further frustrate those elements of commerce. This bill has to get to committee so we can study it more.

More economic development is looking at the border. Many operations have to decide whether they want to reinvest, especially in the manufacturing belt in Ontario and Quebec, which has been extremely vulnerable. The policy of artificially inflating the Canadian dollar because of an addiction to oil and gas as a revenue stream has really eaten away that base.

On top of that, as we have the thickening of the Canada-U.S. border, elements of business are questioning whether they should open up a plant in Ontario, in Indiana or somewhere else. The comments made by Department of Homeland Security Secretary Napolitano are really disturbing. They further heighten the issue of the border and are part of, I believe, a politically motivated movement to turn the Canada-U.S. border into one which is similar to the U.S.-Mexico border.

Public policy affects some of these things and how we respond to them. The imagery is being created. I would point out that in my region of Windsor-Detroit, there are gunboats on the Detroit River and the Great Lakes, because of a treaty that the Liberals allowed to move forward, and which the Conservatives have supported. U.S. Coast Guard vessels have autocannons on them that fire 600 bullets a minute. I am not sure what type of threat would come from Canada that would require 600 bullets a minute, but those are the coast guard vessels that are actually operating along the border.

We are very fortunate to have defeated a proposal to allow 40 different testing zones for firing ranges on the Great Lakes. Interestingly enough, I made a submission against that and the government made a submission. However, it made its submission against that two days after the deadline, so it was not even given actual consideration. The government basically allowed this process to go forward without any type of input. However, we were able to defeat that with some progressive forces, including hunters and fishers who are concerned about the firing ranges, and also environmental groups because the bullets have lead casings.

Blackhawk helicopters have been added to the area, drone planes, security cameras, and spy towers that oversee the area. We are seeing the militarization of the border and it is becoming more like the Mexican-U.S. border versus what it really is, a trade facilitator, which is the model we need to deal with. As the thickening of the border happens and businesses decide to avoid the border altogether, it will erode our economic base if we do not take measures like this.

One of the things that this bill does is it provides regulations to have timeframes and so forth for information coming forth on the border. It can increase productivity by having those practices in place. That is the advance commercial information component of this bill. That will actually allow CBSA to see the information not only from the point of the original supplier but it will also allow it to see the information about the contents and the driver. It is going to facilitate things right across the border.

It is very important that we get that change. It is one of the most important things we can do because, as I have mentioned, all these other barriers are being put in place. It might seem like a small thing in some respects, but at least it is a counterbalance to what is happening.

For example, with the implementation of the western hemisphere travel initiative, anyone who wants to get into the United States, including Americans who have left the United States, will need a passport. Luckily, some states have moved forward on the advanced driver's licence. There is going to be confusion.

All these things are taking place at a time when there is a lot of confusion. We need to put in some policies that are going to help to counterbalance for trade purposes. The WHTI will come into effect and there will be other elements. It is going to thicken the border. We just do not have the needed infrastructure at some of our crossings.

I want to talk about what is happening at the Windsor-Detroit crossing because the bill would allow customs agents in customs controlled areas to do further interventions. There will be greater accountability of the activity of those interventions at the plaza locations. Hopefully there will be better procedures so that when those problems do occur, there will be ways to deal with them that are a little more proper in terms of the way the areas are laid out. That is important. The older facilities do not have the space to pull over certain trucks, to question people, and so forth. If they cannot clear that out, it creates further congestion, back-ups and delays. It defeats the whole purpose of some of the measures we are putting in place here.

What is happening in the Windsor-Detroit corridor is very important, two miles west of the current Ambassador Bridge, and it would extend from four to five crossings within four kilometres. A new publicly owned bridge is going to span the Detroit River and create some redundancy in the system. If there were a problem with one of the current infrastructures, there would be an additional site located there.

The plaza development is very important, because it creates the ability to manoeuvre around new issues such as this. When we are looking at new policies and ways to enforce border security, that can be designed into the actual plaza. I am hoping to see from the designs and the government development of this some flexibility for those plazas for the future, so that there can be some reaction if there is implementation of other measures from the United States.

The United States has added a whole series of new procedures which we would not have dreamt of a number of years ago. Recently with the Bioterrorism Act, a Chilean peach from the 1980s suddenly became a security risk and threat in the year 2000. It led to additional paperwork for commercial trucks carrying fruits and vegetables into the United States. It just creates productivity loss and complications in crossing the border.

A series of these things has been implemented across the table unilaterally, often not even by the political heads but by the departments, such as the Department of Homeland Security and others that are emboldened to do these things. It creates a real problem for us.

I mentioned before about the advance pass information. It is important in many respects, not only in terms of the economic commerce that I am talking about, but also the safety and security of the general public and the men and women who work at the border plazas. Whether we like it or not, the reality is that there are illegal goods, services and materials on a routine basis not just going from Canada to the United States, but also coming from the United States to Canada. Just as our auto industry is integrated with that in the United States, ironically, sometimes there is an integrated criminal activity base for drugs and weapons that go back and forth at the border.

CEUDA, the customs and excise union, drew up what is called the Northgate report. This is a really good report that lays out some of the challenges being faced by the officers at the border. It offers some suggestions.

CEUDA did a survey. I want to go through some of the questions asked. Some individuals believe that when people come to Canada there is no problem, but that is not true. We have to vet these things. That is why the officers need these extra powers. One of the questions on the survey was:

Have Officers at your LAND BORDER CROSSING ever found themselves dealing with someone at Secondary they discovered was considered Armed and Dangerous after searching CPIC [their computer system] but was not cautioned as such either by PALS [their operating system] or when the traveller was otherwise referred?

Thirty of the respondents indicated yes. That is high considering that individuals had been pushed into secondary inspection to begin with and there had already been some contact.

Another question was:

Have Officers at your LAND BORDER CROSSING released a known Armed & Dangerous person up the road in keeping with CBSA's Release and Notify Policy?

Eighteen respondents said yes, ninety-three said no, and eight had no answer.

We know that we have to change some of these policies so people are not set free. That is critical for public safety.

In the Windsor-Detroit area, a couple of peculiar cases came up that really prompted my interest in this legislation.

A Detroit police officer came over to Canada and was pulled over for secondary inspection. He had hid his gun and accidentally shot himself in the knee. He lost his job in the U.S. but was given no penalty here.

These are important things that we need to look at.

A more extreme case occurred on January 7 at an Alberta crossing, where 10 semi-automatic handguns, including one semi-automatic machine pistol, 11 high-capacity magazines and 300 rounds of ammunition were seized. An Edmonton resident was smuggling these items back and forth across the border.

These types of situations are dealt with on a regular basis. The infrastructure needs to be set up properly so we can deal with these kinds of things. We also need to have the powers in the legislation to deal with them.

I want to touch on something that is incredibly important and that is the issue of United States' confidence in Canada with respect to security issues. As we go through the bill we will see some recurring elements. We heard some debate about this earlier.

Some wonder whether the bill will really make a difference because the U.S. is just going to ignore stuff anyway. I think the bill would make a difference because we are dealing with some of the operations on the Canadian side that we can control.

We need to do better with respect to the things that we can control. We need to provide more resources. If our border communities do not get the infrastructure money they need as well as the policies to go with it, then we are doomed for failure.

This summer, we will be moving to armed officers as part of the regular procedure, and therefore, students will not be used to fill those positions as they have in the past. The government will not be filling these positions. This summer we will not have the staffing component that we had before. This will create greater lineups and greater problems. This will defeat the purpose. This has to come hand in glove, resources and procedure.

Customs ActGovernment Orders

May 4th, 2009 / 6:20 p.m.
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Liberal

John McKay Liberal Scarborough—Guildwood, ON

Mr. Speaker, I want to compliment the hon. member on his speech. It was certainly a tour de force. I was very impressed that he spoke for 20 minutes and took only two breaths. He was very able in his analysis of the border. Certainly his references to the militarization of the Canada-U.S. border is information that really none of us would like to hear, but it is true and it is quite regrettable.

I want to ask a question with respect to the thickening of the border and its impact on economic development. Certainly all these non-tariff barriers that seem to be getting erected by the American government as goods go over the border are impediments to productivity, impediments to proper economic relationships, and in some measure, hurt the American economy far more than the Canadian economy.

I think it is an observable fact that the American economy is having more difficulties with the current recession than are we, and each time it puts up one of these non-tariff barriers it impairs its own economy, its own productivity, and it has a detrimental effect on us as well

I would be interested in the hon. member's comments on the ironic effect of the thickening of the border and these non-tariff barriers.

Customs ActGovernment Orders

May 4th, 2009 / 6:20 p.m.
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NDP

Brian Masse NDP Windsor West, ON

Mr. Speaker, a lot of things have led to this moment, time and place where we have seen the American border thickening. I would point back to one of the most significant changing points. In 2002, I was at the Canadian embassy in Washington and the ambassador was there. We had just learned that the United States was going to bring in the NSEERS program, which was a registry process to fingerprint and photograph non-Canadian entries from Canada, but also Canadian entries from a series of countries that they considered not secure or not worthy of actual proper processing.

Ironically we have citizens from some of those countries who have been here in Canada for 30 years and in my community where doctors and nurses go into the United States every single day and save the lives of Americans and are part of their vibrant community.

Sadly enough, the prime minister at that time never objected to that. Since then, the US-VISIT program has been instituted and we have eroded those relationships. To me, it goes back as far as that. It hurts their society, but also, this country has to speak from one voice, that every single Canadian is vetted and they should be treated the same. Until we do that, we will still have problems.

Customs ActGovernment Orders

May 4th, 2009 / 6:20 p.m.
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Liberal

Scott Andrews Liberal Avalon, NL

Mr. Speaker, I am looking through the bill clause by clause, and I am a little concerned. I would like to get the member's comments on clause 2 of the bill, which gives the minister the power to directly authorize access to a customs-controlled area by a person. This is a new power given to the minister. It was previously regulated that the minister had this power.

I am a bit concerned that we would give a minister of the Crown that authority and that power. I wonder if the hon. member could elaborate on that particular clause of the bill.

Customs ActGovernment Orders

May 4th, 2009 / 6:20 p.m.
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NDP

Brian Masse NDP Windsor West, ON

Mr. Speaker, I agree that it is a concern. We will have to see whether there is an intent to move some more prescriptive elements of the bill as to what those situations are and how they would evolve or whether it is going to be through regulation.

Giving the ministers unvetted power like that can be very difficult, especially if it becomes more of a micro-management aspect of the bill. We have seen the same policy under immigration and a few other different elements where we have given those ministers power.

To my Liberal colleague, I would say that he has been doing unilaterally that for the Conservative Party in the House of Commons, so we will certainly be looking forward to seeing how they might want to rein that in at committee.

Customs ActGovernment Orders

May 4th, 2009 / 6:20 p.m.
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Liberal

Paul Szabo Liberal Mississauga South, ON

Mr. Speaker, since the member raised the issue of Mississauga in his speech yet again, I think he should move to Mississauga. I would love to have him.

The derailment raises some interesting questions, but I wonder if the member would care to elaborate further on the issue of Canadians who work in the United States. This has come up many times in this place as it relates to pension matters, as it relates to their facility to be able to cross the border on a timely basis, and what it really means in terms of facilitating this kind of activity in which there is a win-win. Maybe the member wants to sing the praises of people who do work across the border.

Customs ActGovernment Orders

May 4th, 2009 / 6:25 p.m.
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NDP

Brian Masse NDP Windsor West, ON

Mr. Speaker, I actually used to work at Community Living Mississauga, so I am a former Mississauga worker and wish all those at Community Living Mississauga all the best. I have relatives there as well. I point to that derailment because it is so real.

I thank the member for talking about the issues of those who work in the United States. There are so many of them over there, along the border, that it is incredible. It goes both ways. We have Americans working in Canada as well. That is part of the strength of our social and cultural relationships and it is good for business as well.

One of the saddest things is that, despite corporate tax cuts that the government has given, it has not taken up the movement of its own member, the member for Essex, on the social security bill.

This was done under the Paul Martin administration, where the government taxed U.S. social security recipients resident in Canada at a different level than before. There have been many promises on the Conservative side, but the government has not even moved on the private member's bill of one of its members and we have the continued taxation of U.S. social security recipients in Canada.

The reality is that we are going to continue, hopefully, to have some of those relationships, because it is not just about the employment that takes place. It also about the research and development that we share among us.

As a good example, today we saw that Canada is losing one of its top scientists to Florida, because the United States has attracted him with the Obama administration's intent to have research and training move forward, versus the Canadian government here. However, there will still be some connection with Montreal.

These are important aspects not only in terms of the hard economy that we think of, such as automotive in my community, but it is also related to research and development as well as other types of problem-solving around social issues.

Customs ActGovernment Orders

May 4th, 2009 / 6:25 p.m.
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Liberal

Bonnie Crombie Liberal Mississauga—Streetsville, ON

Mr. Speaker, I would like to ask the member for Windsor West if he could elaborate on his feelings about the discretion involved with secondary searches.

It seems every time I cross the border, whether I am on my own or with my three children, I always draw the long straw for the secondary search, and I have yet to be able to cross through a metal detector with my shoes on.

Does he feel that these requirements are necessary, and could he elaborate on that?

Customs ActGovernment Orders

May 4th, 2009 / 6:25 p.m.
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NDP

Brian Masse NDP Windsor West, ON

Mr. Speaker, it is a very serious issue, and I was going to make some comment but I will not. If the member is being pulled over so often, what she might do is try to find out whether something is popping up on her record. It is unusual to have that type of situation.

I do not know whether the member is being cross-referenced with someone else. The member does not look suspicious to me, and I am sure her children do not look suspicious either.

However, the member brings up a very interesting point. It does happen on our Canadian side too. I often talk to different people who are entering the United States. I think it is one of the reasons we should institute a border czar on both sides, to work together on certain things.

It is ironic that we have all this material coming in from the ports that is never screened at all. It gets into our country. Some of its poisonous material, whether it be toys or food. Only 4% is checked.

Meanwhile, at our land border crossings, they pull over a minivan with a couple of parents and kids and send it through twice the security. Therefore, I think it is a valid point.