U.S. Cross Border Logistics

Is your shipment stuck at the boarder once again? Well, you are not alone, as many logistics professionals have experienced this same obstacle.  Whereby, a standard pick up from Canada to the U.S is arranged and yet, the awarded carrier has called to share the dreaded news that the truck did not clear customs. In these situations, it becomes abundantly clear how vital a Customs Compliance/Customs Broker is to ensuring goods clear in a timely manner.

Although there is no legal mandate to require an importer to opt for a broker, the sheer magnitude and scope of the U.S. Customs Boarder Protection (CBP) system may entice one to seek support, rather than attempting to go it alone. Compliance to the CBP is ever changing. The feat to stay current is daunting and the acronyms alone can be overwhelming.

Whether you choose to go at it alone or opt for the professional services of Allyn’s Logistic and Trade Compliance teams, it is wise to equip oneself with a general understanding of the Pre Arrival Process System (PAPS). The PAPS program can be compared to a funnel like structure and providing this basic understanding of its overall process is meant to serve as a primer to assist those working in the logistics field to ensure one’s shipment consistently reaches its final destination without any delays.

Background Elements to U.S. Cross Border Logistics

The United States Customs and Border Protection’s (CBP) cargo release mechanism to expedite the release of commercial shipments is called Pre Arrival Process System (PAPS). The PAPS program was initiated as result of the Trade Act of 2002. The compliance of this program is mandatory for all drivers/carriers wishing to cross a U.S. land port. Each shipment must be identified with a unique bar code label which is attached to the commercial invoice. It is the driver’s sole responsibility to provide the PAPS shipment ID and port crossing to the Brokering Agent.

The Customs-Trade Partnership Against Terrorism (C-TPAT) is a voluntary United States Customs and Border Protection (CBP) initiative supported by the Department of Homeland Security and CBP. The initiative forges voluntary cooperative relationships between the CBP and organizations like importers, carriers, brokers and manufacturers who agree to ensure the integrity of their security practices and communicate their security guidelines to trading and supply chain partners.

Essential Items to Secure Prior to Shipment being Released

C-TPAT Driver - With the aforementioned being detailed, securing a C-TPAT driver is essential when tendering a load from Canada to the U.S., as such drivers are provided preferential treatment at the border and they are well versed in the Pre Arrival Processing System (PAPS).

Commercial Invoice/Documentation - It is imperative that the shippers ensure all paperwork is correct, present and in good order prior to releasing the shipment. Ensuring a Logistic Specialist has reviewed all the necessary documents that the shipper will need to provide at the crossing is the first line of defense. Releasing faulty documents will surely impede the process. Basic documents include the commercial invoice/pro forma and the NAFTA Bill of Lading (BOL).

The Shipment is in Transit – Important Mid-Stream Elements of PAPS

Automated Commercial Environment (ACE) – In addition to the PAPS, a driver/carrier is required to submit shipping details to U.S. Customs via the internet through its ACE system one hour prior to arriving at the U.S. border.

Automated Broker Interface (ABI) - Provided the carrier/driver has fulfilled all the requirements mentioned above, the Customs Broker then creates an entry into their ABI system which interfaces with the U.S. CBP’s Automated Commercial System (ACS). Once the ABI entry is complete, the driver and shipment will most likely not encounter any problems at the U.S. border crossing.

Arrival to the U.S. Border – the Final Element of PAPS

Once the carrier/driver arrives at the border, the CBP Officer will process the shipment through the ACE, which will trigger the release of information from the Automated Commercial System (ACS). If all documents are in order, the carrier is then released to proceed across the border to its U.S. destination.

When and if a shipment is delayed to cross the U.S. border due to a misclassification of goods or a simple transpose of a digit, a working knowledge of the PAPS program can immensely help in navigating the proper channels to escalate in order to expeditiously release the shipment and advance it to its final destination. Technical and human errors do occur and may cause significant delays, but arming oneself with a basic understanding of the process and seeking the expert advice of the Allyn Team can help mitigate any potentially and costly errors.

Resources:

United States Department of Transportation

https://help.cbp.gov/ap/answers/detail/a_id7/19~/pre arrival processing system-(PAPS)

http://www.parbarcodes.com/information.htm

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