moved that Bill S-23, an act to amend the Customs Act and to make related amendments to other acts, be read the third time and passed.
Mr. Speaker, I am very pleased to take part in this debate on Bill S-23. This bill is most important for the implementation of our customs action plan.
The changes made in Bill S-23 are necessary to enable us to put in place some of the key programs contained in this action plan.
Last month's events make the passing of this bill even more critical. As we know, the Canada Customs and Revenue Agency is ready to implement quickly many of the initiatives contained in our action plan, but we need this legislation.
Since the terrorist attacks on the U.S., we have been applying extreme vigilance at the border. This means increased examination of goods, intensified questioning of travellers and reallocating our resources to higher risk areas. We remain committed to continuing this extreme vigilance as long as it is needed.
However, even during this difficult time, we must always be mindful of our dual mandate: to protect Canadians and to keep the flow of travel and trade moving. Of course this mandate has posed many challenges over the past month. Let me reassure the House that we are doing everything we can to address them.
We are also equally committed to long term solutions to keeping Canada safe while ensuring that goods and people keep flowing across the border.
Our action plan is indicative of this commitment and desire to maintain the necessary equilibrium. Programs such as customs self-assessment and the expedited passenger processing system cannot proceed without this legislation, nor can other changes such as the customs control zones.
With Bill S-23 we will be able to make our borders more efficient. It is the outcome of lengthy consultations. We have consulted the stakeholders, our clients and our partners in the security and trade sectors. Both sectors have supported our customs action plan and the amendments proposed in Bill S-23.
Now more than ever it is crucial to put Bill S-23 into place so that the agency can continue to provide Canadians with the protection they expect.
Now more than ever it is indeed crucial to put Bill S-23 into place, so that the agency can facilitate the continuation of trade exchanges in order to ensure the Canadian economy of the activity it needs.
As far as trade is concerned, we have consulted with businesses and have understood that simplified trade administration policies are needed. As for the travelling public, we were made aware of the importance of uninterrupted travel without delays at customs.
The customs action plan is a critical investment in the future and will allow us to remain one of the most modern border agencies in the world. By providing innovative solutions to the problems we face today, the plan ensures that our customs processes will not be an impediment to Canadian prosperity.
As my hon. colleagues already know, the approach outlined in the action plan, and which the provisions of Bill S-23 would put into place, features a comprehensive risk management system incorporating principles of self-assessment, advance information and pre-approval, all supported by state of the art technology.
Our risk management approach will be supported by an effective and fair sanctions regime that imposes penalties according to the type and severity of the infraction.
Ultimately, businesses or individuals with good track records should benefit from their history of compliance. The bill would give them options that will make crossing the border easier, more convenient and more productive.
As part of the action plan, we are introducing the customs self-assessment program. The CSA program is one of the innovative ways in which we are changing how we do business at the border. It is the direct result of consultations with the trade community and was highlighted as its number one priority.
The customs self-assessment program is based on the principles of risk management and partnerships, partnerships with those clients who have proven track records. The CSA program also streamlines the customs clearance process bringing greater speed and certainty to the importation of low risk goods.
It will be implemented in phases and will expand over the years to include an ever increasing proportion of low risk import trade as customs works in partnership with the import trade and other government departments and agencies. Traders will welcome the provisions for advance information and pre-approval programs contained in Bill S-23. I believe my hon. colleagues will agree that this is a major step forward in border management.
The administrative monetary penalties system, AMPS, described in the act is designed to ensure uniform and fair rules for all Canadian businesses. This complete system will encourage compliance with the legislation, thanks to a series of penalties that are proportional to the type and severity of the offence.
In order to guarantee uniform application across Canada, the penalties will be based on detailed policies and guidelines. This graduated approach is more transparent and more equitable than the one in place at the present time, and provides importers with the opportunity to solve compliance problems long before the maximum penalty is applicable. In a desire for fairness, the program will be subject to an independent recourse mechanism. This program is intended merely to encourage compliance, nothing more.
Compliance is the key to success in this endeavour and Bill S-23 is designed to improve levels of compliance. Higher compliance levels ultimately benefit our clients because they lead to fewer examinations and audits.
We believe that the improved service and streamlined processing that we will be able to offer will provide incentives for voluntary compliance. However, ever mindful of our twin mandate, the protection of Canadian society, the agency reserves the right to do periodic spot checks and audits to verify compliance with Canada's customs laws and regulations.
The passing of Bill S-23 would also bring exciting options for travellers. Many of the hon. members will have heard of the Canpass highway program which was pilot tested in a number of locations in recent years. Under this permit based program, pre-approved, low risk travellers are permitted to use designated lanes to bypass regular customs processing.
The testing of this and other members of the Canpass family of programs has demonstrated their viability and effectiveness. The Customs Act amendments proposed in Bill S-23 would allow for the introduction of these programs on a continuing basis across Canada.
Another good example is the expedited passenger processing system for travellers. Under this new and innovative program, EPPS participants will be able to use an automated kiosk that will confirm their identity and membership in the program when entering Canada.
These innovative pilot programs are working. We want all Canadians and those who travel and trade here to be able to profit from our progress.
Another exciting initiative is the harmonized highway pilot, also known as Nexus, at the Blue Water bridge in Sarnia, Ontario and Port Huron, Michigan.
Nexus' goal is to provide a seamless service to pre-approved travellers entering Canada and the U.S. at these border points using technology and of course a common card.
New programs, such as EPPS, will not only make clearing customs a faster process but a more secure one. With new technologies, such as iris scanners, only those who have been pre-approved by a thorough screening process will benefit.
It is important to clarify for my hon. colleagues that pre-approval does not mean exempt. All participants in these programs are still subject to random identification checks and examinations.
With technology such as x-rays and iris scanners along with increased co-operation with our federal partners, we will be able to ensure Canadians a secure yet effective customs screening process.
I believe that a customs action plan will serve Canadians well by improving the flow of people and goods across the border and by strengthening our ability to protect Canadians. More people, with more of the right tools and technology will strengthen our security, while maintaining the flow of goods and people so vital to our economy.
The agency is in the business of administering and enforcing laws governing the movement of goods and people in and out of Canada. It is also in the business of providing client service excellence and serving the interests of Canadians overall. Using our new approach to customs clearance, we will get as much information as possible before goods or people arrive at the border, enabling the agency to focus on high risk areas.
For example, amendments to the Customs Act proposed in Bill S-23 would allow for the introduction of advanced passenger information and passenger notification record. With those programs, customs officers will receive certain prescribed information from commercial transportation companies on drivers, crew members and passengers in advance of their arrival in Canada.
By receiving this information in advance customs officers will be able to make enlightened decisions prior to the arrival of goods and people. It will make it easier to facilitate the movement of legitimate travellers and goods while allowing the agency to exercise its protection mandate.
As we modernize our border we will consider the technological infrastructure a vital element of our customs action plan. The agency will continue to conduct random customs examinations. The instincts of trained, experienced customs officers will continue to be our guiding force.
The agency must be able to meet the growing needs of travellers and of Canadian airports.
The new design of certain airports offers the possibility of mixing international and national travellers. This helps reduce delays, which in turn helps increase airport profitability.
Even though this is an interesting option for both travellers and airports, it increases the risk of goods being smuggled into Canada.
The proposed amendments contained in the bill would enable the agency to meet the commercial needs of the Canadian aviation industry as they evolve and to manage all the inherent risks.
The proposed amendments would allow the agency to create controlled areas inside airports and to authorize customs officers to interview people and to search their personal effects when they leave those controlled areas.
Another provision of Bill S-23 will be used to ensure that personal information is better protected.
The bill will be very explicit as to: when customs officers can gather information; the exact type of information that can be gathered; the use that can be made of this information; the circumstances and the conditions under which this information can be disclosed; and the reasons for disclosure.
I want to emphasize that the sole purpose of this proposal is to codify something that already exists through the ministerial authorization process and that is to make disclosure more open and more transparent.
As my hon. colleagues know, an amendment is proposed in Bill S-23 which would provide the CCRA with the authority to examine export mail. This proposed amendment is necessary to ensure that the postal stream does not become a legal means of bypassing Canada's export controls. I assure hon. members that it is consistent with existing authorities and practices relating to the charter and the import of mail. Customs officers will continue to exercise their authority in a professional and proper manner within the legislative framework.
The government's agenda to promote trade and investment in Canada will only achieve true success if it is supported by the customs action plan and the amendments contained in Bill S-23. Bill S-23 provides a bold and innovative framework to modernize Canada's border and border processing procedures.
