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Memorandum D3-6-7

Rail Cargo In-transit Movements

Ottawa, September 9, 2013

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In Brief

This memorandum replaces the Memorandum D3-6-7 dated May 3, 1994. It has been revised to denote the following changes:

  • (a) Agency, Division and Branch names updated to the current appellations.
  • (b) The Rail In-transit Manifest Form A4 has been changed to Form BSF708, Rail In Transit Manifest.
  • (c) Paragraphs 5, 8 to13 and 25 to 28 were revised to reflect changes to the Form BSF708, Rail In Transit Manifest.
  • (d) Paragraphs 34 to 36 were revised to reflect current administrative penalty information.
  • (e) Paragraph 38 was added to reference the CBSA Web site and the Border Information Service contact information.
  • (f) Appendix A was replaced by the Web link.

This memorandum explains specific Canada Border Services Agency (CBSA) requirements and procedures for reporting and controlling the cargo, which transits through Canada or the United States by rail carriers.

Guidelines and General Information

1. The Customs Act, the Reporting of Imported Goods Regulations and the Transportation of Goods Regulations, establish the time of report, manner of report and who reports goods entering or moving in-transit through Canada. To obtain a copy of the regulations, please see the Justice Canada Web site at www.justice.gc.ca.

Security Requirements

2. Rail carriers who transport in-transit goods through Canada or the United States must be bonded carriers and must file security as specified in Memorandum D3-6-6, Rail Cargo – Import Movements.

Train Conveyance Report

3. Rail carriers are responsible for reporting trains and in-transit cargo to the CBSA at the point of entry and the point of exit. Carriers must report all cars transiting Canada on Form A1, Train Report Inward, or file an electronic train report inward by using the Electronic Data Interchange (EDI), and Form A5, Train Report Outward. Alternatively and with prior permission of the Import Programs Management Unit, CBSA will accept the carrier’s internal train consist sheet. For more information on the train conveyance report, refer to Memorandum D3-6-6, Rail Cargo – Import Movements.

Cargo Control Documents Required

For non-EDI carriers

4. Rail carriers must report all freight shipments in-transit through Canada (U.S. – CAN – U.S.) or for in-transit movement through the United States (CAN – U.S. - CAN) by rail to the CBSA on Form BSF708, Rail In-transit Manifest. The rail carrier must supply and prepare this manifest in detail. The CBSA will number and stamp it at the points of entry and exit.

5. There must be two copies of the Form BSF708, Rail In-transit Manifest.

6. If there are many cars transiting Canada, transporting the same commodity and exiting through the same CBSA office, the CBSA will accept one Form BSF708 with a continuation sheet in duplicate listing all car numbers, instead of a separate Form BSF708 for each rail car.

For EDI carriers

7. EDI rail carriers no longer have to use Form BSF708 to report freight shipments in-transit through Canada (U.S. – CAN – US) or the United States (CAN – U.S. – CAN). Instead, the rail carrier must give to the CBSA at the point of entry and exit a “white paper” EDI in-transit manifest for each shipment (see Appendix). The carrier has to number the white paper manifest using the EDI numbering system (see Memorandum D3-6-6 for details). In addition, the railway carrier has to add an identifier (U.S. – CAN – U.S.) or (CAN – U.S. – CAN) to the manifest to identify the in-transit shipment.

Cargo Reporting and Control Procedures for U.S. Goods Transiting Canadian Territory (U.S. – CAN – U.S.)

For non-EDI carriers

8. Upon arrival into Canada, the carrier must give the CBSA two copies of the Form BSF708 and a continuation sheet, if applicable, for validation. The CBSA office of importation called the “sending CBSA office” will number and date-stamp the documents.

9. Each “sending CBSA office number” will have a TR prefix. If there is more than one series of manifests issued at the CBSA office, the CBSA may add a third letter to the prefix. The CBSA will issue the manifests in one consecutive series, without referring to the receiving CBSA office, starting with number 1 on April 1 of each fiscal year.

10. If it applies, the CBSA will return a copy of the Form BSF708 and the continuation sheet to the carrier. The copy should be attached to the waybill accompanying the shipment to the point of exit. CBSA will put the remaining copy and continuation sheet, if applicable, in a holding file at the sending CBSA office.

11. Upon arrival at the point of exit, the carrier must give the CBSA a copy of the Form BSF708 and the continuation sheet, if applicable. The CBSA will date-stamp the documents and return them to the “sending CBSA office”.

12. When the “sending CBSA office” receives the copies from the CBSA office of exit, the office will compare both copies as well as the continuation sheet, if applicable. If there are no discrepancies, the office will destroy one copy and file the remaining copy in a closed file.

13. The “sending CBSA office” will ensure that the CBSA office of exit returns all acquitted copies of the Form BSF708 and the continuation sheets, if applicable.

For EDI carriers

14. Carriers must provide a white paper EDI in-transit manifest to the sending CBSA office for each in-transit shipment.

15.  The sending CBSA office will date-stamp the white paper EDI in-transit manifests and put them in a holding file.

16. At the point of exit, the rail carrier must present to the CBSA a copy of the same numbered white paper EDI in-transit manifests for each in-transit shipment leaving Canada.

17. CBSA will date-stamp the white paper in-transit manifests at the point of exit and return it to the sending CBSA office.

18. The sending CBSA office will compare the white paper in-transit manifests received from the CBSA office of exit to those in the holding file. If there are no discrepancies, the office will destroy one copy and file the other in a closed file.

19. Carriers must export loaded cars at the point of exit with the seals intact. If the seals are broken, the cars must go to the local rail examination facility where a border officer may do a physical check of the contents against relative waybills. Upon approval, the cars will be released to return to the United States.
Note: If the border officer takes note of shortages in a car, the carrier must pay duties and taxes on all missing shipments.

20. Carriers cannot divert in-transit cars to Canadian destinations. If the carrier does divert the in-transit cars or hold the cargo for disposal in Canada, a border officer will detain the cars immediately and report the particulars to Import Programs Management.

21. Carriers can export in-transit cars at any CBSA office where railways cross the international border. The CBSA will allow a route change from one point of exit to another. This is not considered as a diversion for CBSA purposes.

22. If a loaded car arrives at the point of exit without an in-transit manifest but with the seals intact, and the border officer can determine at which CBSA office the car entered Canada, then the carrier will prepare an in-transit manifest, and the border officer will certify it as an export and mail a copy of it to the sending CBSA office for matching and cancellation. The border officer will note and initial it on Form A5, Train Report - Outward.

23. The CBSA may take similar action for such a car arriving with neither in-transit manifests nor seals, if the CBSA verifies the contents with the waybills that apply. If the verification involves unloading and reloading the car, this will be done under CBSA supervision and at the carrier’s expense. The carrier will also have an accounting document for duty and taxes on any missing goods.

24. If loaded cars reported on in-transit manifests make more than one entry into and exit from Canada before reaching a final destination, CBSA will ensure that:

  • (a) The document issued at the original point of importation shows the final point of exit;
  • (b) Border officers at intermediate points of exit and re-entry will verify that there is an in-transit manifest or waybill with the goods and allow the shipments to continue under the document that was issued at the original point of importation; and
  • (c) At the final point of exit, the document is acquitted as usual and returned to the sending CBSA office.

25. Carriers cannot use an in-transit manifest (either the Form BSF708 or the EDI white paper in-transit manifest) to cover in-transit shipments going to a Canadian seaport for export.

Procedures for Canadian Goods Transiting the United States Territory (CAN – U.S. – CAN)

For non-EDI carriers

26. Carriers must give the copies of the Form BSF708 and the continuation sheet, if applicable, to the CBSA office of exit for validation. The border officer will validate the forms by stamping and initialling all copies.

27. CBSA will return both copies of Form BSF708 and the continuation sheet to the carrier to accompany the shipment to the CBSA office of re-entry.

28. If it applies, the carrier must present two copies of the Form BSF708 and the continuation sheet to the CBSA office of re-entry. The border officer will date-stamp and initial all copies. CBSA will file one re-entry copy and the continuation sheet, if applicable, and return the remaining copy to the carrier.

For EDI carriers

29. The carrier must provide the CBSA office of exit with a white paper EDI in-transit manifest for each in-transit shipment.

30. The CBSA officer at exit will date-stamp the white paper EDI in-transit manifests and put them in a holding file.

31. At the point of re-entry into Canada, the rail carrier must present to the CBSA a copy of the same numbered white paper in-transit manifests and a copy of the U.S. Transportation and Export Bond.

32. CBSA will date-stamp the white paper EDI in-transit manifests at the point of re-entry and return them to the CBSA office of exit.

33. The CBSA office of exit will compare the white paper in-transit manifests in the holding file to those returned by the CBSA office of re-entry. If there are no discrepancies, the office will destroy one copy and file the other in a closed file.

34. Cars moving under this procedure can re-enter at any CBSA office where railways cross the international border. The CBSA will allow a change in routing from one point of re-entry to another.

Penalty Information

35. For information on administrative penalties, please refer to Memorandum D22-1-1, Administrative Monetary Penalty System (AMPS). Information on AMPS penalties is also available on the CBSA Web site at www.cbsa.gc.ca.

36. Other administrative sanctions, such as the revocation of program privileges and penalties of Other Government Departments, may also be applicable.

37. In some situations, failure to comply with the CBSA requirements outlined in the Customs Act, may result in the seizure and forfeiture of the goods and/or conveyance, and in serious cases criminal charges may be applicable.

Additional Information

38. The CBSA’s Border Information Service (BIS) line responds to public inquiries related to import requirements of other government departments, including Industry Canada. You can access BIS toll-free throughout Canada by calling 1-800-461-9999. If you are calling from outside Canada, you can access BIS by calling 204-983-3500 or 506-636-5064 (long-distance charges will apply). To speak directly to an agent, please call during regular business hours from Monday to Friday (except holidays), 8 a.m. to 4 p.m. local time. More BIS information can be found on the CBSA’s Web site at www.cbsa.gc.ca.


Appendix

Specimen White Paper Manifest

Date:
Page:

Railway Name Cargo Control Document

Acquittal number:
Railway carrier code:
Estimated time of arrival:
Cargo control number:
Previous cargo control number:
Waybill number:
Waybill date:
Rail unit initial and number:
Container or trailer initial and number:
U.S. port of exit:
Loaded or empty:
Local or through:
Manifested from:
Manifested to:
Location of goods:
Origin station name:
Destination station name:
Country of origin of goods:
Country of destination of goods:
Shipper’s name and address:
Consignee’s name and address:
Notifying party:
Number of packages or pieces:
Weight or units:
Description/HS or code:
Shipper’s load and count:
Seal numbers:
Hazardous goods indicator:


References

Issuing Office

Import Programs Management
Commercial Border Programs Division
Programs Branch

Headquarters File

7730-5

Legislative References

Customs Act

Other References

D3-6-6, D22-1-1

Superseded Memoranda “D”

D3-6-7, May 3, 1994

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