Memorandum D3-6-6: Rail Pre-Arrival and Reporting Requirements

General

2. The Customs Act, the Reporting of Imported Goods Regulations and the Transportation of Goods Regulations, establish the time, manner and who is required to send ACI/eManifest data pertaining to commercial cargo and conveyances entering or moving in-transit through Canada.

3. Except as otherwise prescribed in the Customs Act, the Reporting of Imported Goods Regulations and the Transportation of Goods Regulations, all goods that are imported or moving in-transit through Canada must be reported to the CBSA at the FPOA in Canada, even when exempt from the requirement to provide ACI/eManifest. The requirement to report cargo and conveyance to the CBSA is effected electronically, orally or in writing, in the prescribed manner as described in the Reporting of Imported Goods Regulations.

4. The receipt of ACI/eManifest cargo and conveyance data enables the CBSA to:

• effectively manage high risk goods and identify threats to health, safety, and security prior to the arrival of cargo and conveyances in Canada
• allow low risk goods a more efficient, streamlined process at the border, and
• control the movement of in bond goods

Liability

5. For information on the carrier's liability pertaining to ACI/eManifest, refer to Memorandum D3-1-1: Policy Respecting the Importation and Transportation of Goods.

Record keeping

6. In addition to records required to be maintained for other CBSA programs, every person who transports goods or causes goods to be transported into Canada or transports or causes to be transported within Canada goods that have been imported but have not been released is required, under the Transportation of Goods Regulations, to keep records of the electronic data that has been transmitted to the CBSA and any acknowledgment of receipt of that data received from the CBSA. The records that must be kept include all source documents, in paper and/or electronic format, specifically related to the individual data elements transmitted and information reported at time of arrival. For CBSA purposes, records by means of which the person gives the agency information under subsection 12.1(1) of the Customs Act must be kept for a period of three complete calendar years plus the current year during which data was transmitted.

Monitoring

7. In addition to all other monitoring and verification activities, the CBSA will perform periodic monitoring of the records kept by carriers related to electronic conveyance and cargo information. The monitoring will confirm whether the conveyance and cargo data were submitted in a timely manner and that information transmitted pre-arrival is true, accurate and complete and corresponds to the information contained on the source documents on file. This includes the use of exception/exemption codes.

Carrier identification requirement

8. Any carrier transporting or causing specified goods to be transported into Canada must have a CBSA assigned carrier code.

9. The CBSA carrier code forms the prefix of the CCN and the CRN.

10. For the purpose of identifying carriers and freight forwarders, a bonded or non-bonded CBSA carrier code will be assigned to a company upon authorization. This carrier code number must be shown on all CCDs presented or transmitted to the CBSA.

11. CRNs must have the CBSA assigned carrier code of the legal entity (carrier) physically arriving at the border as the prefix to the CRN.

12. For information pertaining to carrier code requirements and how to obtain a carrier code, refer to Memorandum D3-1-1: Policy Respecting the Importation and Transportation of Goods.

Security requirements

13. To become a bonded carrier or freight forwarder, an application for a bonded carrier code must be made and security posted. For more information, refer to Memorandum D3-1-1: Policy Respecting the Importation and Transportation of Goods.

Carrier obligations

14. All carriers transporting specified goods into Canada must electronically transmit to the CBSA specified data pertaining to the cargo and conveyance within the prescribed timeframes as outlined in the Reporting of Imported Goods Regulations. Provision of this data within prescribed timeframes satisfies the requirement set out in section 12.1 of the Customs Act.

15. Transmission of electronic ACI/eManifest data does not constitute "reporting" for the purposes of section 12(1) of the Customs Act. Report, as defined in section 12(1), is not achieved until the operator of the rail conveyance transmits an electronic CACM. Rail carriers can send in their request for an arrival up to 30 minutes in advance of their actual arrival at the Canadian border.

16. When the conveyance arrives at FPOA and the status is updated to "reported," the CBSA will send a notification to the carrier who is the operator of the conveyance, as identified by the CBSA carrier code on the conveyance report, detailing the CCNs of the related cargo transmissions that are deemed to have been reported as per section 12(1) of the Customs Act. This message will serve as the carrier's "proof of report."

17. As per section 7.1 of the Customs Act, carriers are liable to ensure all information provided to the CBSA, including ACI/eManifest and at-arrival information is true, accurate, and complete. Furthermore, as per section 22 of the Customs Act and section 7 of the Transportation of Goods Regulations, the information transmitted must be supported by source documentation (for example, bills of lading, invoices, contract of carriage) and made available to the CBSA upon request. Carriers are also liable to ensure all information provided to the CBSA is sent within mode prescribed timeframes.

18. Carriers will incur any and all costs associated with the movement or relocation of cargo for the purpose of an examination by the CBSA.

Cargo reporting and control procedures

19. The cargo report must be electronically transmitted to the CBSA by the carrier, or a service provider authorized by that carrier to transmit on their behalf, within the prescribed timeframes as outlined in the Reporting of Imported Goods Regulations. A rail cargo report is mandatory for all non-exempt import cargo.

20. Before or upon arrival of the goods in Canada, the rail carrier may submit, in addition to the electronic transmission, form A1, Train Report Inward, identifying shipments for which the CBSA has received and accepted cargo details. Rail crew must also report to the CBSA.

21. When in bond freight physically arrives at its final destination (rail sufferance yard), the warehouse operator must submit a WACM to the CBSA. Information on WACM and other notifications can be found in Chapter 11: ACI/eManifest Notices of the ECCRD.

22. When the CBSA releases the shipment, the CBSA will transmit an electronic release message to both the rail carrier and the sufferance warehouse.

23. Shipments that cannot enter Canada due to CBSA prohibitions or the regulations of other government departments, such as the Canadian Food Inspection Agency, must be returned immediately to the United States under CBSA control.

Cargo control number and conveyance reference number reuse timeframes

24. Rail CCNs and CRNs must be unique and cannot be reused for three years starting January 1st of the year following its initial use.

Electronic communication with the CBSA

25. Carriers must transmit data using the CBSA's EDI systems. Before initiating the application process (outlined below), carriers/freight forwarders must have a valid CBSA assigned carrier code as per section 12.1 of the Customs Act.

Application to transmit electronic data to the CBSA

26. Carriers using EDI are required to complete an application form and submit it to the Technical Commercial Client Unit (TCCU).

27. EDI clients may choose to transmit their own data to the CBSA or they may choose to use a service provider. Clients that choose to use a service provider are reminded that they remain liable for the data transmitted to the CBSA. Non-compliance may be subject to AMPS penalty. For more information on how to apply, to participate in EDI, methods of electronic communication and general information on EDI, refer to EDI/Portal Clients: Communication Methods.

28. For all enquiries related to any problems with electronic transmission of data and the related application process, or to obtain a copy of Chapter 3: ACI/eManifest Rail of the ECCRD, contact the TCCU at:

Technical Commercial Client Unit
Phone: 1-888-957-7224 (Canada and United States)
Option 1 for EDI transactions
Option 2 for technical portal assistance
Email: tccu-ustcc@cbsa-asfc.gc.ca

Cargo data

29. The cargo data must be electronically transmitted to the CBSA by the carrier, or a service provider authorized by that carrier to transmit on their behalf, within the prescribed timeframes as outlined in the Reporting of Imported Goods Regulations. A rail cargo report is mandatory for all non-exempt import cargo.

30. All cargo data must be accepted by the CBSA system and on file in order to be subsequently linked to a conveyance. If a conveyance is transmitted quoting a CCN that is either not on file or in reject status, the conveyance transmission will be rejected.

31. Electronic cargo submissions must be transmitted with an applicable movement type/service option, as found in Chapter 3: ACI/eManifest Rail of the ECCRD.

32. A sub-location code is mandatory for in bond shipments and conditional for shipments requesting release at FPOA. This option is available to provide a secondary (inland) port of release should the shipment not be able to obtain release at the border (for example, failed PARS) and the goods qualify for in bond movement.

33. A complete list of the information that a rail carrier must include in the cargo transmission can be found in Chapter 3: ACI/eManifest Rail of the ECCRD.

Conveyance data

34. The COC or a service provider authorized by that carrier must prepare and transmit an electronic transmission to the CBSA with the required conveyance data within the timeframes as specified in the Reporting of Imported Goods Regulations.

35. All cargo data must be accepted by the CBSA system and on file in order to be subsequently linked to a conveyance. If a conveyance is transmitted quoting a CCN that is either not on file or in reject status, the conveyance transmission will be rejected.

36. For an empty conveyance, an "empty" indicator must be utilized to indicate a conveyance with no cargo.

37. Rail carriers who arrive at the FPOA with empty conveyances (with no specified goods on board), and who have not transmitted ACI/eManifest data will not receive any AMPS for failing to transmit ACI/eManifest data for that empty conveyance until further notice. This does not remove the requirement to report to the nearest CBSA office upon arrival in Canada.

38. A complete list of the information that must be included in the conveyance data can be found in Chapter 3: ACI/eManifest Rail of the ECCRD.

Multi-modal movements

39. The multi-modal cargo process applies to both highway and rail modes of transport. The owner or person in charge of the conveyance will link the cargo to the conveyance transmission.

40. A multi-modal movement is a cargo documented on a transport document (for example, waybill) used for a specific mode of transportation, but arrives in Canada using a different mode of transport. The cargo carrier will be required to electronically transmit the multi-modal cargo within the prescribed timeframes specific to the transportation mode used to physically transport the goods into Canada.

For example, Highway cargo is loaded onto a railcar for transport into Canada. The highway carrier will transmit a multi-modal cargo submission. The COC will transmit a rail conveyance report and link the multi-modal cargo to the rail conveyance. The multi-modal cargo and the rail conveyance data must be received by the CBSA within the rail transmission timeframes.

Cargo and conveyance transmission timeframes

41. Carriers (or an authorized third-party provider acting on a carrier's behalf), are required to prepare and transmit the required cargo and conveyance information within the timeframes specified in the Reporting of Imported Goods Regulations.

42. In the rail mode, the conveyance and cargo information for specified goods must be received and validated by the CBSA, at least two hours prior to the conveyance arriving at the FPOA in Canada, as outlined in the Reporting of Imported Goods Regulations.

43. Properly formatted messages received less than two hours prior to the transmitted estimated time of arrival at the border will be accepted by the system, but the client will also be warned via error message of "insufficient review time," and AMPS penalties may be applicable.

Sealing of railcars

44. The sealing of railcars, conveyances and containers are only required for the following specific CBSA circumstances:

• carriers who must meet sealing requirements as participants of the CBSA's trusted trader program (for more information on sealing requirements for trusted traders refer to Memorandum D23-1-1: Partners in Protection Program)
• cargo that is controlled or regulated by any Act of Parliament
• domestic in-transit movements to the point of final export when using the BSF708: Rail in Transit Manifest paper reporting process
• movement of conveyances and containers from the FPOA to a CBSA examination location, and
• at the discretion of the officer

45. With the exception of cargo that is controlled or regulated by any Act of Parliament, bonded carriers will be allowed to move without seals between inland sufferance warehouses, where the cargo has been amended or re-manifested.

46. If a railcar or part thereof, is sealed with a company seal(s), the seal number(s) must be correctly transmitted on the ACI/eManifest cargo transmission. The company seal will remain intact, unless the CBSA performs an examination.

47. CSA carriers may move inland without a seal except when a railcar is selected for inland examination under form A28, Inspection or Operational Report Control.

Note: It is important to remember that if the carrier is both CSA and Partners in Protection (PIP) approved, the PIP sealing requirements supersede the CSA requirement. For more information, refer to Memorandum D23-2-1: Customs Self-Assessment Program for Carriers.

48. Where an examination of the cargo and conveyance cannot be conducted at the FPOA, the CBSA will affix CBSA seals at the FPOA for examination at destination. The load must be delivered to the release point with the CBSA seals intact. If company seals are already affixed, it is not necessary to replace these seals with CBSA seals, however the load must be delivered to the release point with the seals intact.

49. Where the size, nature or routing of the shipment makes sealing of the container/railcar impracticable, other measures of securing the cargo for examination must be employed. For example, individual boxes or packages can be bound or sealed in a manner that prevents undetected removal or substitution of contents. In the case of uncrated machinery or equipment, serial numbers can be used for control purposes. Seal numbers, serial numbers or a notation of how packages have been secured must be indicated on form A28, Inspection or Operational Report Control (where applicable), by the Border Services Officer (BSO) at FPOA. Where the BSO determines that the goods cannot be securely sealed, the goods must be checked against the cargo control transmission. Any unloading for this purpose must be done by and at the expense of the carrier.

50. A BSO may permit a load to be moved in bond to a destination under convoy of a BSO where the nature of the goods or the type of vehicle used does not permit the merchandise to be placed under seal, or unreasonable time and labour would be involved in unloading and checking the goods, or for other reasons at the CBSA's discretion. This movement would be at the expense of the carrier.

51. The CBSA reserves the right to seal any conveyance, container, or compartment at any time.

Conveyance arrival certification message

52. To meet the reporting requirements under section 12(1) of the Customs Act, the COC must transmit a CACM upon arrival at the FPOA.

53. The CACM is required in addition to the cargo and conveyance ACI/eManifest data previously transmitted according to the prescribed timeframes as described in the Reporting of Imported Goods Regulations.

54. The COC or a service provider authorized by that carrier to transmit on their behalf, prepares and transmits a CACM to the CBSA through EDI.

55. An arrival in the rail mode is defined as when the rail conveyance has physically arrived in Canada. The CACM can be transmitted and received a maximum of 30 minutes prior to arrival, allowing rail carriers to transmit their arrival request up to 30 minutes in advance of their actual arrival at the Canadian border.

56. Upon receipt, validation and acceptance of the CACM, the CBSA system updates the status of the conveyance and related cargo, and acknowledges the arrival of the conveyance with a section 12(1) "Reported Notice" to the originator of the arrival message. This notice indicates that the COC (as identified by the CBSA carrier code transmitted within the conveyance report) has met their obligation to report under section 12(1) of the Customs Act, for the conveyance and all shipments detailed on cargo documents that are linked to that conveyance. The CACM will generate any release (for shipments requesting FPOA release), authority to move for shipments in bond, authority to deliver for CSA shipments (where cargo and conveyance information was provided electronically through ACI/eManifest) or referral notification messages accordingly. For more information refer to the ACI/eManifest Non-Highway Conveyance Arrival Certification Message Implementation Guide found in Chapter 3: ACI/eManifest Rail of the ECCRD.

57. All section 12(1) "Reported Notices" sent to the carrier must be kept on file and made available to the CBSA when requested during compliance monitoring, supported by the requirements in the Transportation of Goods Regulations.

58. For a complete list of the information that must be included in the CACM, refer to the ACI/eManifest Non-Highway Conveyance Arrival Certification Message Implementation Guide. For a copy of this guide, contact TCCU.

ACI/eManifest exemptions

59. This section will outline circumstances in which ACI/eManifest cargo data is not required under section 12.1 of the Customs Act. A complete list is found in Chapter 3: ACI/eManifest Rail of the ECCRD.

60. Should clients choose to transmit ACI/eManifest data for any of the listed exemptions and/or exceptions they must do so within the timeframes specified in the Reporting of Imported Goods Regulations. A complete list of the information that a carrier must include in the conveyance and cargo transmissions can be found in Chapter 3: ACI/eManifest Rail of the ECCRD.

Exceptions from cargo data – only conveyance data required

61. The following are exempt from cargo data where only conveyance data is required:

• goods that are being imported into Canada under the CLVS program by an approved courier

  Note: Low value shipments with a value for duty not exceeding the threshold amount, that are not imported under the CLVS program require ACI/eManifest data.

• IIT – empty shipper or importer owned containers and also those registered under Ottawa file or with container bank numbers, which are used to transport commercial goods to and from Canada (for example, shipping tanks, pallets, baskets, bins, boxes, cartons, crates, gaylords, load lock/spacers, racks, trays, totes or similar goods used to ship goods internationally)

  Note: If container is for import, then ACI/eManifest cargo data is required.

• mail (Canada Post, United States Mail, International) – as part of a mixed load
• emergency repairs – includes conveyances that have been repaired outside Canada as a result of an unforeseen contingency that occurred outside Canada; and the repairs were necessary to ensure the safe return to Canada of the conveyance
• domestic in-transit movements, when using BSF708: Rail in Transit Manifest paper process
• dunnage – packaging material such as boards, blocks, planks, metal or plastic bracing, used in supporting and securing packages for shipping and handling
• loaded buffer cars – containing inert materials that meet a CFIA exemption and are for the protection of the train crew from hazardous or combustible materials and the materials themselves, from sources of ignition

  Note: Loaded buffer cars containing inert materials that do not meet a CFIA exemption (for example, soil) require full ACI/eManifest cargo data within the prescribed timeframes, as well as the applicable OGD approvals.

• empty conveyances – conveyance transmission requires an indicator identifying the conveyance as being empty

62. Report on arrival requirements under section 12(1) of the Customs Act, for all of the above exemptions are outlined in this memorandum.

Notice of arrival

63. On arrival at the inland destination, the warehouse operator will electronically arrive the unreleased cargo with a WACM, transferring liability of those goods from the carrier to the warehouse. For more information on WACM, refer to Memorandum D3-1-1: Policy Respecting the Importation and Transportation of Goods.

Movement and cargo control of unreleased goods in Canada

64. Cargo arriving by rail for furtherance inland under rail cargo control must be delivered to a sufferance warehouse authorized to receive the goods as per Memorandum D4-1-4: Customs Sufferance Warehouses unless exempted from this requirement. A list of exemptions is contained in Memorandum D3-1-1: Policy Respecting the Importation and Transportation of Goods.

65. Cargo arriving in Canada as rail traffic can be transferred to a highway carrier and move forward to its destination on the primary rail cargo control transmission provided that:

• the highway sufferance warehouse at the destination is licensed to receive shipments on rail CCDs, and
• the CBSA office at the destination is indicated on the primary cargo control transmission

66. Cargo can be transferred to another sufferance warehouse after presentation and approval of a re-manifest. This applies only if the warehouse is licensed to receive the freight.

67. Consolidated shipments may be transferred from a rail sufferance warehouse to a sufferance warehouse authorized to deconsolidate as per Memorandum D4-1-4: Customs Sufferance Warehouses. For more information on electronic house bills and movement between warehouses, refer to Memorandum D3-3-1: Freight forwarder pre-arrival and reporting requirements.

68. Consolidated shipments consigned to a bonded freight forwarder and reported by the primary carrier at the FPOA, may be authorized by the CBSA to move directly to the sufferance warehouse authorized to deconsolidate as per Memorandum D4-1-4: Customs Sufferance Warehouses. Refer to Memorandum D3-1-1: Policy Respecting the Importation and Transportation of Goods and Memorandum D3-3-1: Freight forwarder pre-arrival and reporting requirements, for required conditions.

69. Cargo arriving by air, highway, or marine mode moving in-bond under rail cargo control must be re-manifested at the primary sufferance warehouse, and delivered to the destination sufferance warehouse.

70. Containers arriving under rail cargo control moving in bond for export may be delivered to the exporting sufferance warehouse providing they remain intact, and the rail CCDs indicates the goods are for export.

71. Cargo arriving under a highway cargo transmission must be delivered to a warehouse authorized to receive the goods. For information refer to Memorandum D4-1-4: Customs Sufferance Warehouses.

Interline transfers

72. Rail carriers may transfer in bond goods to a secondary bonded rail carrier for export under the original carrier's CCD, provided that the final destination is indicated on the original cargo transmission.

73. The transferring rail carrier will maintain full liability for the goods and will be absolved of liability to the CBSA once the goods have been acquitted by the conveyance operator upon export by reporting the CCN on the paper A5, Train Report Outward.

Notification and error messages

74. All ACI/eManifest data received will be validated and processed through CBSA's systems, and the CBSA will transmit response messages back to the sender. Notices are sent via the same route as the incoming transmission.

75. There are two types of response messages clients can expect to receive from CBSA systems when transmitting ACI/eManifest data by electronic means:

• positive responses
• error responses

76. Positive responses are issued in the form of "Acknowledgements." Acknowledgements are generated when the EDI transmission has successfully passed all syntactical and validation edits.

77. Error messages will be transmitted to the sender indicating the nature of the error, in the form of reject notices. Carriers must make corrections to transmissions in error and re-send to the CBSA within the prescribed timeframes. The rejected report will be considered by the CBSA as non-transmission of the conveyance and/or cargo data until the identified errors have been addressed and the data is in "Accepted" status by the CBSA system.

78. For a complete description of all notifications, response time frames, error messages and codes and their application, as well as Request for Information (RFI) notices, refer to Chapter 3: ACI/eManifest Rail of the ECCRD.

Corrections to cargo and/or conveyance data

79. Changes or amendments to cargo and/or conveyance data shall be made as soon as they are known as per Chapter 3: ACI/eManifest Rail of the ECCRD.

Add/Change/Delete (cancel)

80. An "add" is used for the first transmission (original) of ACI/eManifest data, whether it is cargo or conveyance data. It must be transmitted within the timeframes as prescribed in the Reporting of Imported Goods Regulations.

81. A "change" involves the ACI/eManifest re-transmission of the entire record (all applicable data elements), which will then replace the entire record on file. As a rule, the carrier will be required to transmit a change to update the current conveyance record or cargo record when any of the data elements on the current transmission to the CBSA change. Individual data elements are not to be transmitted separately.

82. However, if a CCN on a cargo submission or the actual CRN on a conveyance transmission needs to be changed, the client must first transmit a record to delete the cargo or conveyance, and then transmit an "Add" for the new report with the new CCN or CRN. A change request will not be accepted in that case.

83. A "delete" (cancel) is used for the complete removal of records or packages of records. If individual data elements or loops of segments are to be deleted, these must be processed as changes. The specific data transmitted on the delete does not necessarily have to be identical to the original add or change – only the "key" data (for example, CCN or CRN and whether the record is a cargo or conveyance) must be identical.

84. Deletions may be made at any time up until arrival at the port of report. If a conveyance transmission is on file, it must be changed or cancelled before an associated cargo can be cancelled.

Note: Un-arrived cargo and conveyance records are to be deleted (cancelled) if unused within 90 days.

Post – arrival amendments

85. Cargo and conveyance data transmissions, if found by the carrier to be in error post-arrival, must be amended as soon as the error is discovered.

86. Some key data elements cannot be electronically amended or deleted post-arrival. If amendments/deletions to these data elements are required, the online form, BSF673: House Bill, Cargo and Conveyance Manual Amendment Form – Post-Arrival – All Modes must be completed. Carriers/freight forwarders have up to 90 days to present the correction request to the CBSA commercial office.

Conveyance report – transiting through Canada from/to a foreign point

87. Rail carriers are responsible for reporting cargo transiting through Canada to the CBSA at the FPOA by using EDI. Paper A5, Train Report Outward, will be used to report the conveyance at point of exit. Alternatively, reported cargo transferred to a vessel for export to a foreign country will be acquitted by the Marine outward report.

88. Paper A5 must list the CCNs associated with the cargo that is exiting Canada on that particular conveyance.

89. Additional information may also be included, such as:

• carrier name and contact information
• carrier code
• date and time the A5 is being sent to the CBSA
• date and estimated time of arrival to the port of export
• train number or report number (not railcar number)
• export reporting office (ERO)
• order number (order of railcars built on the train)
• railcar number
• container number (if containerized)

Cargo reporting and control procedures for domestic in-transit shipments (United States – Canada – United States)

90. EDI rail carriers no longer have to use form BSF708: Rail in Transit Manifest to report freight shipments in-transit through Canada (United States – Canada – United States). Instead, the rail carrier has the option of transmitting ACI/eManifest cargo data. If electronic cargo is being transmitted, rail carriers are reminded to not use the in-transit cargo exception code on the conveyance report, and to select "in-transit" in the "Movement Type (Manifest Type Code)" field of the cargo transmission.

91. If using the form BSF708 paper option, the CBSA will not issue AMPS penalties for failing to electronically transmit in-transit cargo data.

92. Paper A5, Train Report Outward, is to be presented upon exit from Canada. Carriers must export sealed loaded railcars at the point of exit with the seals intact. If the seals are broken, the railcars must go to the local rail examination facility where a BSO may do a physical check of the contents against relative waybills. Upon approval, the railcars will be released to return to the United States.

93. Carriers cannot divert in-transit cars to Canadian destinations. If the carrier does divert the in-transit cars or holds the cargo for disposal in Canada, a BSO will detain the cars immediately for determination.

94. 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.

Procedures for Canadian goods in-transit through the United States (Canada – United States – Canada)

95. The paper A5, Train Report Outward, is required to be presented upon exit from Canada for the first leg of the in-transit cargo move. Upon re-entry, rail carriers are required to transmit Canadian origin cargo as an import to Canada. Rail carriers are asked to include the text "in-transit Canadian origin goods" in the special instructions field of the cargo transmission.

Loaded buffer cars

97. Loaded rail buffer cars containing inert materials that meet the CBSA cargo exception and a CFIA exemption do not require the transmission of ACI/eManifest cargo data. Verify that the material contained within the buffer car is exempt from CFIA in the Automated Import Reference System (AIRS). If the CFIA exemption is met, the rail carrier is advised to transmit the appropriate cargo exception code, code 02 Ottawa File and Container Banks (Instruments of International Trade) within the ACI/eManifest conveyance data.

98. Loaded buffer cars containing inert materials that do not meet a CFIA exemption (for example, soil) require full ACI/eManifest cargo data within the prescribed timeframes, as well as the applicable OGD approvals.

Overages/shortages

99. Where there are discrepancies between transmitted data and/or reported cargo and the actual number of pieces found on arrival, the process documented in the Memorandum D3-1-1: Policy Respecting the Importation and Transportation of Goods must be followed.

Non-emergency repairs

100. For repairs to conveyances that were completed outside of Canada and do not meet the definition of emergency repairs, carriers must transmit cargo and conveyance data to the CBSA within the prescribed advance timeframes, identifying the repair as the cargo.

Dangerous commodities

101. The Transportation of Dangerous Goods Regulations require that all shipments of dangerous goods be classified, labeled, placarded, packaged, and documented in a specific manner by the shipper. For more information, refer to Memorandum D19-13-5: Transportation of Dangerous Goods.

102. ACI/eManifest cargo and conveyance information pertaining to dangerous commodities must be transmitted electronically within the guidelines and procedures outlined in the Reporting of Imported Goods Regulations and this memorandum.

Derailments and wrecks

103. Cargo control transmissions and waybills that cannot be properly acquitted at the receiving CBSA office due to a railway derailment or wreck should be referred to the CBSA office where the rail carrier originally reported the wreck. The responsibility to ensure correct acquittal of waybill quantities, and the merit of any application to account for damaged goods rest with the CBSA office so notified.

Additional unique processes

104. An ACI/eManifest cargo transmission is required for an empty railcar, where the railcar is the imported good.

105. The carrier must report all shipments of Company Owned Material (COMAT) on an ACI/eManifest cargo transmission.

106. When cargo is carried under shipper's load and count arrangements between the carrier and the shipper, the cargo control transmission must clearly state "shipper's load and count" and the shipper must seal all units before transferring to the carrier. "Shippers load and count" is not a description of the goods.

107. In the case of car, container, or trailer-on-flatcar load lots (one type of commodity), show the actual number of cartons, cases, barrels, etc., of the commodity.

108. In case of bulk commodities, the quantity on the CCD or electronic report will be shown as "1," representing one railcar.

109. Other unique shipment processes are referenced in Memorandum D3-1-1: Policy Respecting the Importation and Transportation of Goods. They are as follows:

• goods found astray (misrouted goods)
• non-resident importer
• transporting "to order" shipments
• moving company and personal effects
• entered to arrive (ETA) and value included (VI) shipments
• ship's stores
• duty free shops (goods imported by duty free shops)
• carnet and other temporary imports
• unscheduled emergency diversion – goods moving into Canada

Railway rolling stock

110. All locomotives, railway rolling stock, and miscellaneous railway equipment arriving in or departing from Canada are required to report to the CBSA.

111. If they are being imported temporarily for the purpose of international commercial service they are classified under tariff item 9801.10.10 of the Chapter 98: T2025 – Special classification provisions – non-commercial and are customs duty free. ACI/eManifest cargo and conveyance data are required and when exported, they are reported on a paper A5, Train Report Outward.

112. The determination of whether or not locomotives, railway rolling stock or miscellaneous railway equipment are engaged in international commercial transportation is based on the origin and destination of the goods carried and not the actual route of the locomotive, railway rolling stock or miscellaneous railway equipment. For more information, refer to Memorandum D3-1-5: International Commercial Transportation.

113. Foreign railway rolling stock imported into Canada to be temporarily engaged for domestic use under tariff item 9801.20.00 may do so with goods on board.

114. All locomotives, railway rolling stock and miscellaneous railway equipment arriving in or departing from Canada must be reported and are normally not accounted for but are documented on ACI/eManifest conveyance transmissions and on a paper A5, Train Report Outward.

115. Companies wishing to temporarily engage foreign railway rolling stock for domestic use do not require pre-authorization from the CBSA. However, the importation of the railway rolling stock must be under a lease or contract, for a period not exceeding 12 months, signed prior to the importation.

116. The foreign railway rolling stock cannot be removed from Canada for any reason, including being placed in international service. Foreign railway rolling stock that is being used for domestic in-transit movements from one place in Canada to another place in Canada, through the United States, is not considered to have been placed in international service.

117. Importers of foreign railway rolling stock that is owned or controlled by United States railway companies must report the diversion of any railway rolling stock that is removed from international service and temporarily diverted into Canadian domestic service.

118. Importers of foreign railway rolling stock that is not the property of or under the control of a United States railway must report the diversion of any railway rolling stock that is removed from international service and temporarily diverted into Canadian domestic service. The railway rolling stock that has been diverted from tariff item 9801.10.10 must be classified under Chapter 86 of the Customs Tariff.

Note: Goods of tariff item 9801.20.00 must be owned or under the control of a railway company in the United States. The period of diversion cannot exceed 90 days in one calendar year. The 90 days does not have to occur consecutively. The origin may attract customs duties which would be paid the first time only.

119. The importer is required to monitor the length of time the railway rolling stock is diverted to Canadian domestic use.

120. Importers of railway rolling stock that has been manufactured in Canada that is diverted temporarily from international service and placed into Canadian domestic service must report the diversion. In this case, the Canadian railway rolling stock would have been manufactured in Canada for export and never entered into domestic service. If the Canadian railway rolling stock is owned or under the control of a railway company in the United States, it is being diverted from tariff item 9801.10.10 to tariff item 9801.20.00. If the railcars are owned or under the control of a foreign railway other than a United States railway, the railcars will be diverted to Chapter 86 of the Customs Tariff. The period of diversion cannot exceed 90 days in one calendar year. The 90 days does not have to occur consecutively.

121. For information regarding non-taxable importations, refer to the Excise Tax Act Schedule VII.

122. For information regarding the calculation of GST on railway rolling stock, refer to the Value of Imported Goods (GST/HST) Regulations (sections 9, 10 and 11).

Exportation process of railway rolling stock

123. It is the importer's responsibility to advise the regional CBSA office at the place where the goods were accounted for, that the railway rolling stock has been exported. Proof of export must be provided within 30 days of the exportation of the last railcar or when the lease or contract expires, whichever is earlier.

124. Proof of export can be provided by any of the following, on condition that it clearly demonstrates that the diverted railcar has left Canada and the date of departure is evident:

• a validated A5, Train Report Outward
• a certified E15 (identification of goods exported or destroyed)
• United States customs report
• an internal off-line report
• an interline report with United States railway company

Applicable legislations

• Canadian Food Inspection Agency
• Canadian Transportation Accident Investigation and Safety Board Act
• Customs Act
• Customs Tariff
• Excise Tax Act
• Excise Act
• Reporting of Imported Goods Regulations
• Special Import Measures Act
• Transportation of Goods Regulations
• Transportation of Dangerous Goods Regulations
• Value of Imported Goods (GST/HST) Regulations

Related D-memos

• Memorandum D3-1-1: Policy Respecting the Importation and Transportation of Goods
• Memorandum D3-1-5: International Commercial Transportation
• Memorandum D3-1-8: Cargo – Export Movements
• Memorandum D3-3-1: Freight forwarder pre-arrival and reporting requirements
• Memorandum D4-1-4: Customs Sufferance Warehouses
• Memorandum D17-1-4: Release of Commercial Goods
• Memorandum D19-13-5: Transportation of Dangerous Goods
• Memorandum D20-1-1: Exporter Reporting
• Memorandum D22-1-1: Implementing the Administrative Monetary Penalty System
• Memorandum D23-1-1: Partners in Protection Program
• Memorandum D23-2-1: Customs Self-Assessment Program for Carriers

Superseded D-memo

D3-6-6 dated November, 2022

Issuing office

Marine Rail Policy and Programs Unit
Marine and Rail Division
Commercial Program Directorate
Commercial and Trade Branch