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.
This bill has received Royal Assent and is now law.
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.
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.
Gary Lunn Conservative Saanich—Gulf Islands, BC
moved that Bill S-2, An Act to amend the Customs Act, be read the second time and referred to a committee.
Dave MacKenzie ConservativeParliamentary Secretary to the Minister of Public Safety
Madam Speaker, I appreciate having this chance to add my voice of support for this worthy legislation.
The Canada Border Service Agency operates at 1,200 service points across Canada and nearly 40 locations abroad and employs over 14,000 public servants. Since its inception, the Canada Border Service Agency has been working to integrate and build on the many risk management strategies and processes adopted by their legacy organizations, the Canada Revenue Agency, Citizenship and Immigration Canada and the Canadian Food Inspection Agency.
The proposed legislation will enhance our ability to manage risk and improve border operations by strengthening the systems for obtaining advance data on goods and people arriving in Canada and by better managing the risks existing at air and sea ports. Indeed, the provisions of the legislation help us to address some of the concerns of the Auditor General of Canada, identified in her November 2007 report entitled, “Keeping the Border Open and Secure”.
It is clear that free nations, including Canada, cannot guarantee absolute safety against border threats. For example, Canada welcomes more than 95 million travellers to Canada every year and approves the entry of over $400 billion in imported goods annually. Therefore, our focus must be on risk management.
CBSA's risk management is multi-layered. Operations are based on three fundamental strategies: pre-approval programs to facilitate low-risk people and goods; advance information on what and who is coming to the border; and intelligence using partnership networks, sophisticated science and technology.
The development and deployment of science and technology is crucial in supporting these strategies: electronic commerce systems to receive advanced trade data; biometrics for identifying trusted travellers; and sophisticated technologies to detect radiation, drugs, guns and other contraband and potentially dangerous goods.
During the past five years, the Canada Border Service Agency has developed a robust and sophisticated border management regime with a scientific approach to risk assessment and detection, and the results are impressive. Consider that over 10,800 drug seizures were made in the 2007-08 fiscal year, 5,700 weapons were seized, including 671 firearms prevented from entering Canadian communities. Over 7,000 items of child pornography, hate propaganda and obscenities were stopped at the border. In 2007-08 the Canada Border Service Agency removed 12,349 individuals who were inadmissible to Canada, including 1,664 criminals who posed a high risk to our country. That is a 40% increase from 2002-03.
The CBSA is now engaged in important initiatives that will further transform and modernize border management, including arming border guards and eliminating situations where they are working alone, implementing a new manifest system, which will provide advance electronic reporting for goods at the land border, and working with our U.S. counterparts to ensure that the western hemisphere travel initiative is implemented as smoothly as possible and does not impede travel and cross-border trade.
While the Canada Border Service Agency has increased its ability to detect and respond to security threats, the Customs Act has not changed since substantially since 2001. The proposed changes will ensure that the CBSA continues to evolve, while strengthening its officers' abilities to combat internal conspiracies and organized crime at ports of entry.
To combat internal conspiracies and organized criminal activity at ports of entry, the government created the concept of customs controlled areas in 2001. These zones are designated areas where international travellers and goods not yet released by the CBSA may come into contact with port of entry workers and other travellers. Implementation of the custom controlled areas concept has been impractical due to legislative constraints.
The current legislation gives Canada Border Service Agency officers the authority to examine goods and question and search people only as they exit the customs controlled area, including persons working inside the area who would otherwise not have to present themselves to the CBSA.
The proposed amendments will provide border service officers with greater flexibility to patrol and monitor these controlled areas. In particular, they will have the authority to question and search people, as well as examine their goods both within customs controlled areas and when they exit these designated areas. This initiative will improve the security of Canadians as it will act as a deterrent to internal conspiracies at points of entry and decrease the risks posed by organized crime and national security threats.
The proposed changes to the Customs Act will also enable the CBSA to implement its eManifest initiative. The eManifest initiative is the next planned phase of the advanced commercial information initiative, which currently provides border services officers with electronic air and marine cargo information in advance so they are equipped with the right information at the right time to identify health, safety and security threats before goods arrive in Canada.
The eManifest initiative will require that businesses involved in the import trade chain, including those from the highway and rail modes, provide electronic data on their shipments before they reach Canada. The CBSA is working closely with industry and stakeholders to ensure a smooth, cost efficient transition to the new reporting requirements.
Extensive consultations on project requirements with stakeholders were held throughout the first two phases of the advance commercial information project. The CBSA continues to use these strong consultative networks as a forum for dialogue, input and guidance in the development of the eManifest initiative.
The Canada Border Services Agency consults with members from all facets of the trade community, including carriers, freight forwarders, importers, customs brokers and bridge and tunnel operators, regarding the design, development and implementation of the eManifest initiative. Various working group meetings have been held over the past two years with member of the trade community to ensure that eManifest design and development activities are coordinated with those of the external community.
As a result of this legislation, the Canada Border Services Agency will be better able to make informed decisions about the admissibility of goods, including identifying unknown and high-risk threats before the shipments arrive. The Canada Border Services Agency will be able to focus its resources on those goods that pose the greatest risk to Canada's security and prosperity. As well, low-risk shipments will be processed in a timely and efficient manner, which is vital to Canada's prosperity and economic competitiveness.
There are some additional elements within the proposed legislation that will further strengthen border security. The advance passenger information/passenger name record program collects and analyzes information in advance on air travellers coming into Canada in order to identify persons who may pose a safety and security risk.
Advance passenger information includes the traveller's name, date of birth, citizenship or nationality, passport or other travel document data. Personal name record data includes the travel itinerary, address and check-in information. This information is gathered by the airlines in their reservation, check-in and departure control systems.
Changes to advance passenger information provisions in the proposed legislation will require passenger and crew data to be provided to the CBSA before a conveyance arrives in Canada, allowing the CBSA to conduct a more timely risk assessment and addressing a gap noted in the November 2007 Auditor General report.
As carriers are already required to submit advance passenger information/personal name record data to the CBSA, the proposed legislative change will not have an operational impact on them and will make the Customs Act consistent with CBSA policy. In fact, the information carriers provide to the CBSA is the same information that they already collect for their own business purposes.
The data collected under the advance passenger information/personal name record program is protected under the Privacy Act and the Canadian Charter of Rights and Freedoms. The CBSA has consulted the Privacy Commissioner and has implemented strict administrative policies and guidelines to protect the privacy of personal information, including the number, collection, access, retention and use of this information.
Another part of the bill proposes to amend the present act to permit a regulation made under it to incorporate material contained in another document without reproducing that other document word for word within the text of the regulation itself. Incorporation by reference, as this process is called, can help simplify the regulatory process and is often used to incorporate material of a technical nature.
Material which is incorporated by reference is reviewed by the Department of Justice in a manner similar to a draft regulation. It is carefully reviewed for adherence to the law generally and, in particular, to the charter.
It is worth noting that when the bill was considered in the other place, an amendment was made. The amendment removed the statement to the effect that material incorporated by reference is not a statutory instrument for the purposes of the Statutory Instruments Act. The removal of that statement addressed the concern that was raised about wider government practice in this context. To the extent that members of the House might share such concerns, I hope they too will be supportive of this amended language.
More technical changes are proposed within the legislation. Housekeeping amendments will align the act with Canada's obligation as a signatory to the 1994 agreement on the implementation of article 7 of the General Agreement on Tariffs and Trade. These amendments would improve the alignment of the Customs Act with the World Trade Organization evaluation agreement by which the value of imported goods is determined.
Inconsistencies will be fixed between the existing French and English versions of the act. The Government of Canada is moving forward on key initiatives that increase Canada's border security and support economic prosperity. The proposed changes to the Customs Act would give the Canada Border Services Agency the information, tools and flexibility it needs to better detect threats and tackle crime at the border.
I urge my hon. colleagues to speedily pass this legislation.
Bonnie Crombie Liberal Mississauga—Streetsville, ON
Madam Speaker, I would like to ask the parliamentary secretary if the government has considered exit controls for foreign nationals visiting Canada or foreign refugees who have been declined and may pose a security risk?
Dave MacKenzie Conservative Oxford, ON
Madam Speaker, as my hon. colleague knows, there are no exit controls at this time and there are no plans to implement exit controls in this country.
Serge Cardin Bloc Sherbrooke, QC
Madam Speaker, if I am not mistaken, we are discussing the full implementation of customs controlled areas.
I would like the member to explain the overall functioning of what is being identified and called a customs controlled area because it is not clear from the bill. We perhaps should read the statute to compare them, but when I look at the bill, it is not clear to me what is meant by a customs controlled area.
What exactly do they encompass physically and what exactly do they do?
Dave MacKenzie Conservative Oxford, ON
Madam Speaker, the customs control area already exists. The bill would give the CBSA people the authority to operate within that customs control area. They do not need to wait until people leave the area. Some goods that are within that customs control area may escape the Canada Border Services Agency from dealing with it.
It addresses some of the issues with respect to employees who may have been compromised by outside bodies that are attempting to use them for their own purpose. It would enhance Canada's security and at the same time give us a better opportunity to deal with things within that already controlled area that exists.
Don Davies NDP Vancouver Kingsway, BC
Madam Speaker, New Democrats have been calling for improvements in border security and, in particular, the examination and interdiction of counterfeit, illegal and harmful goods from being imported to Canada for some time. We want to congratulate the government for bringing in the bill. We think the amendments to the bill would increase CBSA's capabilities in these areas by allowing expanded searches.
I am also aware that the government has done a good job in consulting with various stakeholders in the country, including the Teamsters union and other stakeholders who are involved in the commercial movement of goods.
Could my hon. colleague share any information with us about the input received from other stakeholders, particularly in the commercial transportation of goods sector?
Dave MacKenzie Conservative Oxford, ON
Madam Speaker, as the member opposite has already identified, this is not only a win-win situation for Canada and the people who work in the airports but also for that broader perspective of people who ship legitimate product in and out of the country.
There has been a wide range of consultation, as I addressed earlier in my speech, with the shipping industry, with importers and with the people who do the documentation on all of these things coming in and out of Canada. My understanding is that the proposed amendments are well-respected and have been well-received by everyone in the industry. I think it is one of those bills that will receive support in the House, and I thank the member again for his support.
Mark Holland Liberal Ajax—Pickering, ON
Madam Speaker, I appreciate the opportunity to speak to this bill. The Senate has done a lot of good work to bring the bill to this place.
I will go through the bill and some of the concerns that I have, but it behooves us to talk in a general context about the importance of balancing, on the one hand, very important security concerns, particularly in the wake of both threats to the country and threats of counterfeit and illegally manufactured goods coming into the country, against the need to keep our border open. This bill comes out of the Auditor General's 2007 report in which she detailed many concerns that she had with the Canada Border Services Agency in chapter 5, under a section entitled “Keeping the Border Open and Secure”.
We have a climate where 96 million passengers enter Canada every year. These are tourists, immigrants, refugees, business people and returning Canadians. We also have over $400 billion in imported goods annually. The volume of trade that crosses into our country is vital to our nation. While we know there are concerns, we need to ensure we see that free flow of trade continue. It is a delicate balancing act but a very important one for our economy and security.
I had the opportunity, as many in our caucus did, to be in Vancouver on the weekend and to visit the Vancouver Port. I do not think a lot of Canadians are aware of just how remarkable the Vancouver Port is. It is an example to the world. The port has people arriving from every corner of the earth to see exactly how it is operating and how it has developed a very advanced system to deal with its goods and services and keep competitive.
The Vancouver Port has been able to take, what was only about half of Canadian goods and services crossing in through Vancouver, because a lot of it was going through Seattle, to almost 97% of all goods because it moves things so efficiently and its security is so effective. It has cameras around the entire bay. When one goes into its main operation room, it can instantly give a viewpoint of anything that is happening everywhere. That has become important in law enforcement, but it is also extremely important in tracking goods and services.
A lot of great things are happening on our border. However, while there are improvements and there are things that need to be done, such as those discussed in Bill S-2, one of the first things we need to acknowledge is that we have a very effective border that our international trading partners should know is secure. This is particularly important in conversations that we have been having with the United States where we have seen a lot of legislators talk about concerns they have with the Canadian border. These concerns are clearly unfounded if one takes a look at our border relative to others.
I mentioned counterfeit goods, which is of particular concern. This bill would give the Canada Border Services Agency greater ability to go after counterfeit goods. We know this is a massive problem for the recording industry, which is seeing an enormous amount of illegally produced music. Movies also come in through shipments. We also have problems with drugs, which we want to be able to stop at the border.
In the 2007 report by the Auditor General, she identified a number of shortfalls in terms of the assessment of high-risk passengers and dangerous goods that were coming over the border. It was important to address those deficiencies. The Senate has been working carefully on those and, for the most part, it has found a good balance in this bill at addressing a number of items of concern. We are just moving toward second reading and it will be important that we examine these items in detail in committee.
I will now go through both a background of the bill and a little bit of analysis of some of the areas that we will want to pursue when the matter comes before committee. I should mention that this bill is actually a reintroduction of Bill C-43 from the second session of the 39th Parliament. That bill did not progress beyond first reading. Bill S-2 has now passed through the Senate and the Liberal senators who were there were instrumental in providing much of the content of this bill. I had many conversations with them about it and I am generally comfortable with the direction of it. They offered several amendments, one, in particular, was to eliminate a clause that would have allowed for material incorporated by reference through the regulation to not be considered a statutory instrument for the purposes of the Statutory Instruments Act.
The changes in the bill can be grouped in two principal parts. The first part is the expansion of activity within a customs controlled area that officers can search, seize and stop people within a customs controlled area. The second part is advance passenger information and privacy issues that might be involved and the expansion of that information to all forms of transporting of goods into Canada, whether by ships, ports, airports or land crossings.
I would like to address the main changes in the bill and some of the areas where we will want to get a bit more information as we move through committee.
The first is clause 2 of the bill. This would now give the minister the power to directly authorize access to a customs controlled area by a person. Prior to this, the minister had the power to authorize by regulation only.
Clause 3 would do two things. It would remove an exemption that would allow persons boarding a flight to a destination outside of Canada leaving a customs controlled area from presenting and identifying themselves to an officer, reporting any goods obtained in the area and answering questions asked by an officer. Further, it would expand the presentation and identification requirements for individuals who would be in any part of the customs controlled areas. As may be known, prior to this, individuals only had to present upon leaving. It also now would include the examination of goods.
Clause 4 would be a change in regulation-making powers to include prescribing the person or classes of person who may be granted access to the customs controlled areas. We have some questions with respect to what these specific classifications mean but, again, we are happy to take up those questions in committee.
Clause 6 would grant regulation-making authority regarding the advance information that would be required for the importation of goods.
Clause 7 would amend the methods available to adjust the transactional value of goods being imported when the vendor received a benefit from subsequent sale. It would allow adjustments to the transaction price. This may lead to higher valuations, meaning higher duties being paid by importers, which is an issue that has raised some concern.
Clauses 8 and 9 would make technical changes intended to harmonize the act's French and English versions, although the deletions of certain terminology would make the French version different in some places. In that regard, we will want to take a look at the translation more carefully in committee to ensure that the intent of the act is not in any way compromised.
Clauses 10 and 11 would amend the bill to allow customs officers to search persons who would be in or who would be leaving a customs controlled area if the officer suspected, on reasonable grounds, that the person had concealed something that would be in contravention of the Customs Act, or regulations, or any other federal law prohibiting regulation or controlling importation and exportation and to search and examine goods in the possession of a person who may have been abandoned in a customs controlled area.
Clause 12 would amend the prescribed time and manner in which a person or class of persons must provide prescribed information about a person on-board a conveyance. It would not, however, change the prescribed information that is currently required by the act.
The Customs Act, which was first enacted in 1867 to ensure the collection of duties, control the movement of people and goods and to protect the Canadian industry from real or potential injury caused by the import of dumped or subsidized goods or any other form of unfair competition, needs to be updated. The act provides a legislative authority to administer and enforce the collection of duties and taxes. It is not a taxing statute.
The current Customs Act was revamped in 1986 to take into account the developments in transportation, communications, trade and business practices. Since 1986, the act has been continuously amended in response to free trade and related international trade agreements into fine-tuned international trade measures.
It is important to state that many of the stakeholders that have commented on this bill, whether it is the Greater Toronto Airports Authority or the Canadian Airports Council, have been very supportive. We know that those involved, whether it is the Canadian Chamber of Commerce or various trade unions, have been supportive. I think some of the concerns they have stated can be addressed at committee.
Again, with that qualification in place, we want to ensure we strike the appropriate balance between providing appropriate security at our border and ensuring that our border is open. We look forward to continuing work on the bill, seeing it move past second reading and dealing with it in committee.
Serge Cardin Bloc Sherbrooke, QC
Madam Speaker, several changes may be made to the Canada Border Services Agency. For various reasons, more flexibility is required. They also want to expand the controlled areas. However, as the member mentioned earlier, this should not become complicated, nor should an arbitrary approach be taken to problems of accessibility. Above all, we must create an efficient flow of goods and people. Obviously, there is the issue of security, but on occasion, people find themselves in unusual circumstances.
According to the member, how do we reconcile having an efficient and smooth flow through border services, and a certain level of security, for those goods and individuals we do not wish to have in our territory? How does the member believe we can reconcile these two equally important elements?
Mark Holland Liberal Ajax—Pickering, ON
Madam Speaker, it is a difficult balance to achieve and it is one of critical importance. We know for a lot of businesses, for example, General Motors, which is east of my riding in Oshawa, that just in time delivery is absolutely critical to their operations. If they need to get their materials across the border to their plants and are unable to get those materials in timely fashion, it can mean millions of dollars in lost revenue, which could actually threaten the viability of those businesses. Therefore, maintaining flexibility and ensuring these borders are open is an important priority.
As I mentioned in my comments, we also have a number of security related concerns at the border, not just with dangerous individuals but also with dangerous goods being potentially transported, as well as counterfeit goods.
One of the most important ways we can streamline our process is to ensure that we enhance our trusted trader practices for companies that regularly transport goods and are known to be good. We need to continually work with them to streamline those processes to ensure they are able to move those goods and services freely across the border and have regular spot checks at the same time.
Enhanced technology provides, if we make that investment, an important ability to very quickly process information and to assess risks and dangers. If we share with the international community information on some of the other threats that exist, where individuals or companies are engaged in less than desirable activities in other jurisdictions, then we have a greater opportunity to note what to watch for.
I mention Vancouver very specifically. If the member takes a look at some of the things it has done and how it has implemented technology, it not only allows it to provide a more secure border and a more secure port, but because of the speed and the up to date the technology it is also able to move those goods and people very quickly.
Those are sort of dual objectives that do not necessarily need to be at odds with one another.
Diane Bourgeois Bloc Terrebonne—Blainville, QC
Madam Speaker, I would like to ask our hon. colleague for some additional information. This morning we learned that the Canada Border Services Agency allowed people to enter Canada who could have close ties to terrorists.
Could the bill currently before us have helped in any way to avoid the situation we now find ourselves in?
Mark Holland Liberal Ajax—Pickering, ON
Mr. Speaker, some of the advanced passenger information dealt with in the bill can assist, but there is no doubt more has to be done on the border than just the bill. It should not be seen as a panacea, sort of as a catch-all and a solution for all the problems identified by the Auditor General. She quite rightfully pointed out that there were many examples where CBSA was not catching individuals who posed a threat to Canada. She also mentioned goods.
The bill goes part of the way, but a lot of work still has to be done with the Canada Border Services Agency. I would be happy to talk about that in more detail.
One thing that is really important is to have oversight as well. It is very disturbing to me that CBSA does not have direct parliamentary oversight. This has come up in many reports. If we are to have the ability to follow-up on these things and get a complaint mechanism that goes somewhere, where we can get strong recommendations and instant action, then we need to start with an oversight mechanism similar to what was recommended by Justice O'Connor.
I do not want to hold the bill out as solving all the problems. The member has identified the fact that other issues need to be addressed outside of this legislation.
Brian Masse NDP Windsor West, ON
Mr. Speaker, the United States has raised the issue of security of goods and services entering its country and also exiting to Canada.
I would like the member to comment on one particular circumstance.
The bill would appear to improve some elements of accountability and public safety at the border, but at the same time the government has allowed CP Rail to fire 17 mechanical workers in the Windsor-Essex County area. These workers inspected trains coming into Canada from the United States.
The Mississauga derailment was the largest evacuation of people in North America before hurricane Katrina. Two hundred thousand people were evacuated. The trains involved in that derailment originated in Windsor. We have a lot of hazardous waste materials. Trains coming from Chicago and other areas heading to Toronto will not get the same level of inspection as a result of CP Rail firing those mechanical workers. Those trains will end up on our rail system.
There is a contradictory message here. We are trying to improve land border, but there is a contradiction taking place on the actual rail elements.
It is important to note that Transport Canada looked at the percentage of railcars that needed to be repaired and 36% failed. At the same time, Transport Canada could not even provide a measurement of those railcars coming into Canada from the United States.
This sends a mixed message. Ms. Napolitano of the Department of Homeland Security in the United States raised an issue about security at the border. The fact that we no longer have inspection service in southwestern Ontario is going to create a problem later on.
Mark Holland Liberal Ajax—Pickering, ON
Mr. Speaker, the hon. member made a number of important points.
I have been deeply concerned about some of the cuts that have been made to the Canada Border Services Agency. The particular example that my colleague has raised is deeply concerning because it impacts security. There are deficiencies there.
We have to be careful in the message that we send. It would be fair to say that our border is as secure as the American border. I mentioned the Vancouver port as one example, where we have greater security. We need to get that message out.
That is not the member's point. The question the member asked related to ensuring that we continued to move forward in all directions. In other words, not just do some good things with Bill S-2, but ensure we provide the Canada Border Services Agency with the resources, both human and technological, to do its job.
One concern I have in this regard is the huge amount of money being spent to arm our border guards, around $1 billion, yet the RCMP has made it clear that this will not improve safety. I would much rather see that money going toward improvements at the various checkpoints. We have to ensure that we have the appropriate staff and technology to screen goods and services efficiently and quickly and actually improve service.
Making these kinds of cuts in the hope that they will not be seen in the background undermines the security of our border and our ability to ensure that the goods and services travelling back and forth are safe. This not only provides a security risk to our country, but, as the member quite rightfully points out, it undermines confidence in Canada internationally.