(Ottawa Citizen)
Canadian trucking industry representatives say they are alarmed by severe penalties being imposed by the U.S. that would slap carriers, importers and transport brokers with fines as high as $10,000 each time they breach
new cargo registration rules slated to start next week.
Similar regulations already in effect for air cargo operators will cost as much as $2.2 billion to that sector as a whole, according to one estimate. And
they've resulted in air freight surcharges that could be duplicated in the trucking industry.
"Boy oh boy, with $10,000 fines, we could be facing some difficulties here," said Ron Lennox, vice-president
of regulatory affairs for the Canadian Trucking Alliance.
Trucking companies and brokers have known for weeks about new regulations calling on them to forward so-called advance electronic cargo information one
hour before they get to the border in some cases.
But it wasn't until Wednesday that the U.S. Border and Customs Protection service advised them of the penalties.
They call for a fine of $5,000 against
carriers for a first-time violation, and $10,000 for subsequent violations against the same driver. Importers and transport brokers also face fines of $5,000 every time they break the rules.
The regulations,
intended to better target high-risk shipments, came into effect this year for marine and rail companies. Notification is also being phased in for air cargo.
But they are expected to have the most dramatic impact
on truck traffic. For trucking operators, the new rules come at a tough time. Carriers are being battered by higher fuel costs, increased insurance premiums, a shortage of drivers, and changes in hours of service rules.
Smaller trucking firms, representing the bulk of the motor carrier industry, could be affected the most because they generally rely on less sophisticated technology than major carriers. That means they could be
less ready to make the change, according to some experts on the rule switch.
Shippers, like retailers and industrial manufacturing companies, are equally concerned. They worry about increased logistics costs and
disruptions to their well-oiled production systems that rely on just-in-time inventory.
A period of "informed compliance" began Monday, whereby carriers crossing at 40 major border points from Canada or
Mexico into the United States will be warned if they don't deliver the information. Penalties kick in on November 30, 2004.
Truckers will ultimately need to use the Pre-Arrival Processing System (PAPS), which
involves forwarding a list of the contents of a shipment to a broker, who arranges a customs entry.
|
|
