Discussing Our Performance by Anticipated Result

We assess our performance for the Customs Services business line against six anticipated results as they relate to our expected outcome: Canadians' health, safety, security, and business interests are protected, and Canada's economic growth is supported, through responsible border and trade management.

Ratings are provided for each anticipated result. They show whether our performance met (green), mostly met (yellow), or did not meet (red) the results. We provide a separate rating on the quality of the information upon which we based the assessment. As with other business lines, we assess our performance against two themes: managing the compliance continuum and innovating for the future.

On balance we continue to meet our expected outcome. As shown previously in the “Customs Services Performance Report Card”, ( Exhibit 47 ), our overall performance on a year-to-year basis was sustained with some improvements shown against each of our anticipated results. The following pages provide further detail to these results.

Highlights

Enforcement activities are at the far end of the compliance continuum and do not, for the most part, directly affect the majority of Canadians. Enforcement, however, is a very important part of what we do, as enforcement means interdicting the criminal element, whether that be international terrorists, drug cartels, arms dealers, organized crime, or threats to our revenue base. Priority areas include terrorism, drugs, weapons, proceeds of crime, missing children, alcohol, and tobacco. Last year we reported on our enforcement activities midway through our accounting of our performance, reflecting the societal values and priorities at the time. The terrorist attacks on the United States changed the North American psyche, and elevated security concerns in everyone's mind. In this report, we will deal with those concerns in a more direct way than we did before the events of September 11.

During the course of a regular day, we continue to combat the smuggling of contraband such as drugs, firearms, pornography, alcohol, and tobacco through the use of intelligence, contraband detection equipment, and most importantly, the skills and abilities of our customs officers. The total value of seizures in 2001-2002 was $460 million. Our drug seizures alone, valued at $426 million, accounted for roughly 50% of all drugs seized in Canada last year by all enforcement agencies. As indicated in Exhibit 48 , our extra efforts in the priority areas have resulted in more enforcement relative to contraband goods.

Exhibit 48: Enforcement Activities Represented as a Percentage of Total Customs Seizures

In 2000-2001, Customs made 19,292 seizures compared with 19,937 in 2001-2002. Although not included in the preceding chart, our accomplishments in the context of the Government's Our Missing Children Program are particularly noteworthy; our efforts resulted in the return of 93 children to their families in 2001-2002.

Volumes of travellers at the border dropped 21% in September 2001 compared with the previous year, while enforcement actions began to decline in October 2001. This in spite of an increased rate of examinations (examination rates rose from an average of 3.6% before September 11, to 5.2% after that date). Volumes for both travellers and enforcement actions continued to lag by 10-20% for the rest of the fiscal year. The reduced volumes combined with the increased vigilance of customs officers at points of entry may have contributed to the lower number of seizures over the entire year. Recent trends in volumes and enforcement actions in the Travellers operation at the border are displayed in Exhibit 49 .

Exhibit 49: Traveller Volume and Enforcement Actions: Trends in Enforcement

In addition to the traditional duties outlined above, our Officer Powers Program, introduced at 18 sites in 2000-2001, continued to roll-out across the country. We designated a further 948 officers with the power to arrest individuals for violations of the Criminal Code, such as impaired driving, outstanding warrants, possession of stolen property, and abduction. Although we had initially targeted 14 new sites for implementation in 2001-2002, we elected to defer the execution of Officer Powers in eight of these locations, thereby allowing the substantial costs of refurbishing these sites to be absorbed by the building operators rather than the CCRA. We plan to implement the program at an additional 22 sites in the coming fiscal year. Results of enforcement activities under Officer Powers are detailed below, in Exhibit 50 .

Exhibit 50: Officer Powers Enforcement Activities (2001-2002)

Enforcement is supported through our ongoing contact with other government departments as well as domestic and international law enforcement and customs agencies. In 2001-2002, the CCRA undertook to update its memoranda of understanding (MOUs) to reflect the current environment. We continued work on a number of umbrella or annex MOUs including ones with the Canadian Food Inspection Agency (CFIA), Health Canada, Environment Canada, and Natural Resources Canada. Our efforts with respect to the CFIA, especially as they relate to the threat of Foot and Mouth Disease, are of particular note and are detailed in Exhibit 51 .

Exhibit 51: Results of Foot and Mouth Disease Study

The tragic events of September 11 demonstrated clearly that we live in a world of real risks and that secure, but efficient, borders must be our top priority. We responded immediately in the aftermath of the September 11 attacks on the United States, to ensure the safety of Canadians and our American neighbours. In order to support the increased intensity of examinations, we also increased our use of overtime and part-time staff, cancelled leave, and reassigned resources from less critical activities. Our officers diligently maintained the intense vigilance required, and at the same time processed shipments and travellers as quickly as possible in order to minimize the negative impacts of short-term backlogs at the border on the Canadian and American economies.

During the months that followed, we were key participants in top-level discussions with American officials, culminating in December 2001 with the signing of the Canada/U.S. Smart Border Declaration. Since then, we have been active partners with the U.S. in carrying out the ambitious 30-Point Action Plan to tighten border security and keep legitimate goods and people moving efficiently across the border.

With the implementation of the Customs Action Plan (CAP) well under way, we were already making significant strides to improve the way we protect the personal and economic well-being of Canadians, making us a key player in the Government's national security agenda. After careful review, we confirmed that the Customs Action Plan's foundation of risk-based processing made even more sense in the post-September 11 world, and that its principles of self-assessment, advance information, and pre-approval remained sound.

Under the 1995 Shared Border Accord, the four Canadian and American customs and immigration agencies work together on a number of fronts to build a border that not only addresses the challenges of today, but also those of the future. The teams are now working on joint programming initiatives that enhance security at international airports and seaports as well as enhance the security and efficiency at the shared border. Of the 30 initiatives, the CCRA is responsible for eight that ensure the secure flow of goods and people, and we have made significant progress on these fronts.

Temporarily suspended after September 11, the NEXUS highway pilot project at Sarnia/Port Huron was reinstated on December 21, 2001 (see Exhibit 58 ). NEXUS streamlines the movement of low-risk travellers across the Canada-U.S. border, while at the same time ensuring a significantly enhanced level of security. There has also been encouraging progress in developing NEXUS-Air, which provides similar streamlining utilizing state-of-the-art technology to confirm the identification of travellers. In addition, discussions proceeded with the U.S. on the development of an Advance Passenger Information (API) initiative to pre-screen international travellers and identify those of high risk, before they arrive in either country. Originally a CAP initiative, API was accelerated and expanded from pilot project status, to full implementation now scheduled for the fall of 2002 at major airports.

Similarly, significant progress was made to harmonize commercial processes. By the end of the year, we had agreement on the essential elements of the joint Canada-U.S. Free and Secure Trade (FAST) initiative, based on existing Canadian (CSA) and American (C-TPAT) pre-approval programs. FAST will make many cross-border commercial shipments simpler, cheaper, and subject to fewer delays—while enhancing security. It establishes a public-private partnership to improve security measures throughout the entire supply chain. Companies that make the commitment to improve their supply chain security will enjoy the benefits of a “fast lane” for commercial truck traffic.

Another key achievement on the commercial side was the establishment of a joint initiative at Canadian and American seaports to target in-transit marine containers arriving in Canada and the U.S. Since March 25, 2002, U.S. customs inspectors have been working at the Vancouver, Montréal, and Halifax container targeting units, with Canadian inspectors in Newark, New Jersey, and Seattle, Washington.

In fiscal year 2001-2002 customs officers interdicted $6,080,000 thought to be directly linked to international criminal activity. The seizure of these monies interferes with illegal activities, such as the purchase of drugs and weapons, as these are cash-only activities. Our role in this respect has been expanded under the new Proceeds of Crime (Money Laundering) and Terrorist Financing Act. This legislation, enhanced by way of the Anti-Terrorism Act of 2001, provides new law enforcement tools to detect and deter money laundering and other activities including those that finance terrorism. Customs' role will be to ensure that information about cross-border movements of money is provided to a new central analysis agency.

After September 11, we received an immediate infusion of $6 million to acquire contraband detection technology to help identify contraband and terrorist-related goods. This was in addition to a previous allocation of $8.5 million in June 2001, which allowed us to continue to research and acquire new equipment to address ongoing and new threats. This research furthered our work with the Department of Foreign Affairs and International Trade (DFAIT) and the Solicitor General regarding our capacity to respond, detect, and prevent chemical, biological, radiological, nuclear, and explosive threats. Of the more than $600 million dedicated to border security and facilitation in the December 2001 Budget, $433 million was set aside for CCRA over six years, allowing us to expand current programs, fast-track upcoming programs, and develop new initiatives.

Customs designs and delivers contraband-related courses on a national and international level. The objective is to provide quality enforcement training to Canadian customs personnel and international customs administrations. In 2001, we provided training to the Caribbean Customs Law Enforcement Committee and also hosted an international Marine Conference at the Marine Centre of Expertise in Halifax.

The sharing of information and expertise has long been a part of our strategy to disrupt and dismantle the illegal flow of goods and people across our borders. Our participation in the law enforcement community both internationally and in Canada has directly contributed to a number of important enforcement actions. Seizures such as those listed in Exhibit 52 (resulting from joint operations with other enforcement agencies) are a direct disruption of illegal activity. They sometimes provide further information, which is developed and shared in the enforcement community, and can lead to the dismantling of criminal organizations through the arrest and conviction of the individuals involved.

Exhibit 52: Joint Forces Operations (JFO) – Results 2001-2002

In 2001-2002, we continued to work on the implementation of the non-resident provisions of the new Firearms Act and regulations that came into force on January 1, 2001, as part of Canadian inland security measures. From April 1, 2001, to March 31, 2002, customs officers documented, on behalf of the Department of Justice, 77,162 non-residents coming to Canada with firearms to hunt, attend sport shooting competitions, or gun club events, or who were in transit through Canada.

Behind the scenes, the CCRA works with the Canadian International Trade Tribunal (CITT) to administer the Special Import Measures Act (SIMA), which provides measures of redress against dumped and subsidized goods. We also enforce the surtax provisions of the Customs Tariff, which afford a certain degree of protection against low-priced, injurious imports. Canadian producers who believe they face unfair foreign competition in the Canadian marketplace look to the CCRA to combat the damage caused by these imports.

During the year we completed eight investigations involving the dumping or subsidizing of 6 commodities from 24 different countries. Seven of these investigations covered two or more countries, resulting in a total of 41 country-specific actions (compared to 11 investigations completed last year resulting in 20 country-specific actions). As a result, anti-dumping and/or countervailing duties were placed on garlic, concrete reinforcing bars, corrosion-resistant steel sheet, hot-rolled steel sheet, cold-rolled steel sheet, and leather safety footwear. In addition to collecting $44.2 million in SIMA duties, these measures resulted in the protection of an estimated 51,331 jobs representing $13.9 billion in production.

Highlights

As the CCRA is Canada's principal border agency, our compliance mandate for Customs is to ensure that all people and goods entering and exiting Canada do so in accordance with all Canadian laws and regulations, including those of other government departments. Our primary objective is to provide protection to Canadian society and businesses with minimal intrusion into the flow of legitimate goods and travellers. We can achieve this objective by separating high-risk traders and travellers from those who are more likely to comply with legislative requirements. The key to doing this is to manage our operations on the basis of risk. We assess the risk of non-compliance across the entire Customs program in order to establish where risk exists, and then focus our compliance improvement efforts according to that risk. We are evolving from a risk management system based largely on experience and judgement to one that is also supported by more rigorous assessments of compliance.

As a measure of our program effectiveness, and in an attempt to establish reasonable benchmarks for performance, we have been studying compliance across our Customs program for a number of years. In 2001-2002, we completed the second year of a three-year random sampling cycle in an effort to measure the overall rates of compliance at the border, by mode. Different border points are targeted in each year of the cycle, and results for individual years may vary for several reasons, including differences between sites or limited coverage. When viewed together, however, the results for the first two years provide at preliminary indication of compliance levels by mode. Our judgement based on these figures ( Exhibit 53 ) and other information is that travellers and traders generally comply with border legislation. Next year, when the three-year cycle is completed, we expect to have a better sense of overall border compliance levels.

Exhibit 53: Border Compliance: In-Year Cycle Results

TBD: to be determined

To gauge the degree of compliance with trade legislation, we verify the books and records of a random sample of importers to ensure that they have met all trade requirements. While our current methodology is not sufficiently robust to draw firm conclusions, a preliminary assessment of 74 post-release verifications in 3 priority commodity areas (textiles/apparel, steel, and footwear) suggests a high error rate with respect to the classification of commodities and the valuation of commercial transactions for these commodities in 2000-2001. Error rates in the sample group range from 19% to 31% ( Exhibit 54 ). Further analysis will assess the reliability of these results and the degree of compliance in other priority trade areas, with the objective of identifying and addressing sources of non-compliance with trade legislation.

Exhibit 54: Post-Release Verification: Preliminary Results 2000-2001

In 2001-2002 we implemented two new post-release verification methodologies: the Compliance Assessment Review (CAR) and the New Verification Process (NVP). CAR is a multi-program methodology used to diagnose compliance vulnerabilities in priority areas. It offers a simpler, less labour-intensive, diagnostic approach that should result in shorter production times than the previous methodology. NVP is a more focused and targeted approach, and replaces the previous single-program methodology. NVP will be used to correct non-compliance and monitor compliance improvement, based on trends identified through the diagnostic results, across a broader client population. In 2002-2003 we will be developing time standards and completing a manual for both processes.

The foregoing measures of compliance are part of the Compliance Improvement Plan (CIP), a planning process that incorporates all of our compliance strategies. The first plan was developed and implemented in 2000-2001, and it is revised and reissued annually. The CIP consists of sub-plans ( Exhibit 55 ):

• Border Management, with priorities related to immigration, contraband, health and safety, and other front-line issues;

• Post-Release Verification, which focuses on trade administration priorities such as NAFTA origin requirements and anti-dumping and countervailing measures; and

• Client Services, designed to foster voluntary compliance through fairness, quality information, and efficient and electronic and personal service delivery.

Exhibit 55: Compliance Improvement Plan Components

Under the client services component of the CIP, we have been working to provide education and services to our clients through trade shows and outreach activities to promote their compliance with border and trade requirements ( Exhibit 56 ). We have also invested heavily in technology to help compliant individuals and traders identify themselves to us.

Exhibit 56: Customs Outreach Activities 2001-2002

At the other end of the compliance continuum, we began implementing the first phase of a new penalty regime-the Administrative Monetary Penalty System (AMPS)-that authorizes graduated penalties for violations of customs laws. This system has a two-fold approach. First it educates the importer or traveller with respect to areas of concern at the first signs of non-compliance and allows for corrective action. Second, it provides graduated penalties for chronic or flagrant non-compliance. The first phase of AMPS implementation focused on the commercial sector. At a later stage, travellers will be incorporated into the system.

We recognize that we have to develop clearer measures of our performance. We have not progressed as quickly as we had anticipated with the CIP. As we move forward, we will be developing improved measures of compliance, establishing priorities for post-release verification based on trade risk, and introducing performance standards to serve as benchmarks for the continuous improvement of our programs and services.

Our sense that the vast majority of travellers and traders comply with border and release requirements has directed our strategic thinking over the past several years, driving us to find ways to process legitimate travellers and traders through our borders more quickly so that we can focus our efforts on those who do not comply. As discussed under Anticipated Results 1, 3, and 6 we have been aggressively exploring new ways of delivering our services and targeting non-compliance throughout the customs program. Beginning with the Customs Blueprint, whereby we consulted our partners, stakeholders, and employees, and culminating with the Canada/U.S. Smart Border Declaration in December 2001, the “Four Waves” ( Exhibit 57 ) are shaping the Canadian border of the future. More and more, our continued emphasis on risk-based processing, self-assessment, advance information, and pre-approval allow us to stream travellers and traders with a known history of compliant behaviour through automated or accelerated processes. This frees up customs personnel to focus on areas of higher or unknown risk.

Exhibit 57: Customs Four Waves

At a strategic level, we continued to research best practices in risk management in other areas of the CCRA for possible application to customs; we integrated the Compliance Improvement Plan (CIP) planning process with the agency-wide planning process; and we developed interim procedures for reporting CIP results until funding is available to develop automated reporting systems. The major focus for the CIP in the coming year will be the continued development of a performance measurement regime within the context of the CCRA Customs Balanced Scorecard. Given that the CIP continues to evolve, each year's activities bring new insight to the process.

Key to developing effective compliance management regime is nurturing our relationships with our partners and other government departments (OGDs) to ensure that we have a comprehensive understanding of their requirements and expectations for import control. We have been working with OGDs to assess the viability of using post-release verification to supplement border examinations and to ensure compliance with their programs.

Highlights

While last year we spoke of “improved services,” this year we have made it clear that these are responsible services designed to nurture compliance and facilitate legitimate trade and travel. Over the last decade, the emphasis has been on facilitating the cross-border movement of goods and people to enhance tourism and the competitiveness of Canadian business. We did not compromise protection—we were always aware that an open border was not an unprotected border. This past year, however, has brought a new dimension to the challenge of achieving our expected outcome. Since the events of September 11, there has been a much stronger emphasis on the security of our borders. Our goal is to build a border that is secure, but one that still allows the efficient flow of the legitimate international trade and travel that is so vital to our economic growth and prosperity. This concept is fundamental to all we do.

In the days immediately following the terrorist attacks on the United States, we suspended a number of services, particularly in the air mode. For example, customs services at 201 airports across Canada were suspended on September 12, 2001. On September 14, 2001, operating under a heightened level of security, we restored customs service for regularly scheduled flights at 13 international airports and 27 smaller airports.

To ensure the safety of the Canadian public, we initiated an extensive review of the provision of customs service across Canada. We temporarily suspended some of our more facilitative programs to ensure they met the stringent requirements associated with the heightened state of security. After considering factors such as traffic volumes, geographic location, availability of resources, and the impact on local economies, we restored customs service at 121 airports of entry and 53 CANPASS permit sites by the end of the fiscal year. A number of additional sites have since resumed service on a cost-recovery basis. Careful review was also given to the resumption of CANPASS Private and Corporate Air Programs. The NEXUS land-border permit program, which facilitates the cross-border movement of frequent low-risk travellers, was refined to include enhanced security measures and was reintroduced by the end of the fiscal year ( Exhibit 58 ).

Exhibit 58: NEXUS Use April 2001 – March 2002

Highway wait times generally fell within our published service standards of 10 minutes during the weekdays and 20 minutes on weekends and holidays, during the first five months of the fiscal year. As a result of enhanced security verifications in the days immediately following September 11, wait times at points of entry into both the United States and Canada increased significantly. This created uncertainty for traders and travellers who usually received prompt service. Throughout the year we have monitored and reported on wait times at our border points, escalating this effort to an hourly reporting throughout the period immediately following September 11. Border delays and unpredictability have negative consequences for both trade and tourism. Shortly after September 11, we began to publish information on wait times on our Internet site as a service to travellers and traders. The information we made available included periodic reports about the typical wait times observed for commercial and passenger traffic destined for Canada and for the United States. This information served as a guide to assist in trip planning or routing choices. This Web page received in excess of 8,000 hits a day. A message was also placed on the Automated Customs Information Service (ACIS) phone line advising the public to expect delays at the border and to carry appropriate identification.

Providing strong and cohesive services to our clients continues to be a top priority. Our Client Services Program supports this priority through the delivery of a number of key initiatives identified in our annual client services plan. The goal of the Client Services program is to provide the needed information, assistance, and support to external clients in an effective, efficient, and fair manner, so that these clients understand their obligations and comply with customs requirements and those of other related programs. Clients will be provided with more accessible and convenient service through enhanced electronic service delivery, which at the same time will reduce the reporting requirements and compliance costs. In addition, clients are provided relevant information resulting from the post-release verification process alerting them to areas of concern.

2001-2002 was a very successful year for the Client Services Program. We have met our commitments, including:

• 364 information sessions that were attended by approximately 15,000 clients;

• 265 visits to client premises to provide information and assistance; and

• regional and district staff participation in 90 trade shows, attended by approximately 263,000 people.

Measuring the effectiveness of client service continues to be a challenge. Although we believe that Canadians will comply with the laws if they are aware of them and understand them, proving the link between education, information, assistance and improved compliance is difficult to achieve. We have, however, observed that the number of voluntary amendments to accounting documents has almost tripled since the mid-nineties when we initiated a more structured client service regime designed to encourage compliance through education (see Exhibit 59 ).

Exhibit 59: Voluntary Amendments

We advanced the use of electronic service delivery to improve accessibility, reliability, and stability through electronic, telephone, and other communications channels, as illustrated by the following three initiatives:

The Automated Customs Information Service (ACIS) provides an automated telephone service using state-of-the-art technology on a 1-800 network. ACIS currently operates through two call centres in Saint John, New Brunswick, and Winnipeg, Manitoba. Information scripts are now updated faster, which ensures clients receive more accurate information. ACIS can now measure call accessibility rates. Current reports indicate a high accessibility rate of 96%.

In 2001-2002, 59% of the information pertaining to commercial releases was transmitted through electronic data interchange (EDI) for processing through the Accelerated Customs Release Operations Support System (ACROSS). Major improvements to ACROSS have resulted in a substantial reduction of unscheduled outages. In fact, unscheduled outage durations have decreased by over 40% from the previous year to 51 hours in 2001-2002.

To encourage clients to file export documentation, we introduced the Customs Automated Export Declaration (CAED). CAED permits our clients to complete and submit export declarations electronically, making compliance with export requirements easier and reducing the paper burden. CAED allows screening of goods before shipping, in support of our international commitments and foreign policy objectives, such as the International Traffic In Arms Regulations. By March 31, 2002, there were 1,242 new CAED participants—88% more than the previous fiscal year. The growth in CAED participation is illustrated in Exhibit 60 .

Exhibit 60: CAED Participation

Of the respondents consulted as part of the CCRA Annual Survey in 2001, 77% rated the CCRA as doing a good or very good job when it comes to customs. These results are consistent with the 75% seen the previous year. Further, 32% felt that the CCRA does a very good job in the customs area, a significant increase from 25% in the previous year. In addition, 98% reported that they were able to get service in the official language of their choice, a marked improvement over 91% in 2000.

Highlights

The CCRA has been actively involved in promoting Canadian interests in order to help Canadian businesses compete more effectively. This has meant negotiating international customs rules and requirements, and harmonizing and simplifying customs standards. We continued to demonstrate leadership at international forums, such as the World Customs Organization (WCO), the World Trade Organization (WTO), and the Asia-Pacific Economic Cooperation (APEC). We participated in the development of international agreements, such as the WTO Agreement, the North American Free Trade Agreement (NAFTA), and the customs aspects of various WTO agreements, and many other free trade agreements with Chile, Israel, Costa Rica, and the Free Trade Area of the Americas (FTAA).

In 2001-2002, the CCRA implemented a full cost-recovery program for the international technical assistance it provides to other countries. We provided technical assistance to APEC member countries in Thailand, and participated in seminars for WCO and WTO members. In addition, missions to Taiwan and Indonesia were undertaken as part of the APEC Customs Action Plan, specifically relating to the courier initiative that implemented the WCO Express Clearance Guidelines. An ambitious technical assistance program was developed for the upcoming years. We established firm technical assistance agreements with Costa Rica, Honduras, Guatemala, El Salvador, Nicaragua, St. Lucia, Lithuania, and Benin. We are undertaking planning or diagnostic visits to a number of those countries, as well as to Latvia, the Organization of Eastern Caribbean States (OECS) countries, and potentially to Senegal, Lesotho, Kenya, and Nigeria ( Exhibit 61 ).

Exhibit 61: The CCRA's Role in Promoting Certainty and Consistency at the International Level

The CCRA actively supported Canada's negotiations for several free trade agreements, including the FTAA, the Canada-Central America Four (Guatemala, El Salvador, Nicaragua, and Honduras), and Singapore. Preparatory work was also undertaken for the potential negotiation of free trade agreements with other organizations, such as CARICOM. The goals for these negotiations were achieved, and a successful conclusion was reached with the Canada-Costa Rica Free Trade Agreement.

Improving the secure flow of goods and people at the border is a key priority for Canada and the United States, as both countries have a critical stake in each other's economic security. On December 12, 2001, John Manley, then Minister of Foreign Affairs, and Tom Ridge, U.S. Director of Homeland Security, signed the Canada/U.S. Smart Border Declaration. The bilateral declaration outlines our shared commitment to develop a border that securely facilitates the free flow of legitimate goods and commerce. It includes a 30-Point Action Plan for Creating a Secure and Smart Border, and both countries agreed to four priorities relating to border management: the secure flow of people, the secure flow of goods, the security of infrastructure, and co-ordination and information sharing in the enforcement of these objectives. The 30 points are being negotiated by different Canadian and U.S. government departments and agencies, and the CCRA has the lead for 8 of these initiatives: Single Alternative Inspection; Advance Passenger Information; Ferry Terminals; Harmonized Commercial Processing; Clearance Away From the Border; Joint Facilities; Customs Data; and In transit Container Targeting at Seaports. A progress report on all 30 points was presented to Prime Minister Chrétien and President Bush prior to their meeting in June 2002.

Highlights

A knowledgeable and skilled workforce is the cornerstone of a successful Customs program. Our annual survey indicates that about 90% of Canadians feel customs staff are knowledgeable and competent. To ensure quality delivery of customs programs in the future, we have developed the Customs Strategic Human Resources Plan, which examines solutions for providing our workforce with the appropriate tools, technology, and information. The first phase, the Customs Human Resources Profile of 2005, is our vision of the customs organization and workforce in 2005, along with national job profiles for the positions of customs inspector, compliance verification officer, and client services officer. These job profiles outline the skills and knowledge that will be needed in 2005, and provide the foundation for the training and learning strategies that will be developed to meet those needs in the coming years.

With the revised schedule for Customs Action Plan initiatives, delivering training and developing skills will present a challenge for our 24/7 operations. This challenge is being addressed at all levels of the organization through working groups and networks. As displayed in Exhibit 62 , a total of 41,532 training days was delivered in 2001-2002.

Exhibit 62: Customs Training Days in 2001-2002

The Trade Training and Learning working group has finalized a new, generic, national, introductory course. The working group, which is comprised of regional and headquarters functional specialists, is developing a national core curriculum and a long-term learning strategy for beginner, intermediate, and senior compliance verification officers during 2002-2003. This training will be transferable to client services officers and appeals officers.

We have implemented training programs to develop and maintain skills in the customs program. In 2001-2002, the newly designed Customs Inspector Recruitment and Training Program (CIRTP) was offered to 396 recruits. We had planned to train 435 recruits in 2001-2002; however, due to accommodations issues we had to adjust our expectations. Plans are under way to rapidly expand the number of classes in order to accommodate 738 recruits for 2002-2003. Details of our planned, actual, and forecasted training are displayed in Exhibit 63 .

Exhibit 63: Recruitment Training – Planned and Actual

The increase in student numbers adds to the immediate need for improved processes and tools to consistently collect, consolidate, and analyze data for ongoing program evaluation and continuous improvement of the CIRTP program. To that end, Price Waterhouse Coopers conducted an evaluation of the new training program on behalf of the Human Resources Branch, Training and Learning Division, and it has confirmed that the new CIRTP training has a high level of learner success.

Officer Powers training was delivered at an additional six sites. We initially identified 14 new locations for training and implementation; however, we chose to defer the implementation of Officer Powers training and implementation at 8 sites until a later date, as the $2 million in costs to refurbish each site will be absorbed by the building operators instead of the CCRA.

The national Management Renewal Program delivered 6 soft skills development workshops to 105 Customs program superintendents, chiefs, and managers. The five-day workshops focused on the CCRA's Leadership Program Management Simulation, and included other leadership teaching points, customs program information, and discussion sessions.

A training plan was developed in 2001-2002 consisting of a list of courses being offered to the regions. To further determine training needs from a regional perspective, three focus group sessions were held in Calgary, Montreal, and Toronto. These sessions allowed us to gather information on challenges relating to job performance. The information will be analyzed, and a draft report will be distributed in the fall of 2002.

Highlights

Customs Action Plan

Our change agenda, as outlined in the Customs Action Plan (CAP), supports our expected outcome and each of the preceding anticipated results by offering technological solutions to managing the compliance continuum. The foundation for change is based on principles of risk-based processing, self-assessment, advance information, and pre-approval. As discussed in Anticipated Result 2, the waves of change which began with the Customs Blueprint have been increasing in momentum over the past decade. While some projects have been adjusted to reflect changed priorities, the overall direction has remained clear. Exhibit 64 illustrates the underlying principles of the CAP and summarizes our progress on key initiatives in 2001-2002.

Exhibit 64: Building on the Customs Action Plan

As part of its response to the events of September 11, 2001, Customs conducted a detailed review of its priorities, including those identified in the Customs Action Plan (CAP), and concluded that the direction outlined in the CAP was still sound. In fact, discussions with the United States under the Public Security and Anti-Terrorism (PSAT) efforts and the Canada/U.S. Smart Border Declaration identified the acceleration and expansion of key CAP initiatives—NEXUS, Advance Passenger Information (API), Advance Commercial Information (ACI), Customs Self-Assessment (CSA), Expedited Passenger Processing System (EPPS), G7, and Integrated Customs System (ICS).

While the implementation of some initiatives has been delayed due to a greater emphasis on security efforts, the CCRA is moving forward with virtually all CAP initiatives. Key successes to date include:

• partial implementation of AMPS commercial on December 3, 2001, with the introduction of penalties for five CSA contraventions and warnings for the remainder;

• implementation of the CSA program on December 3, 2001, including the commercial driver registration program (CDRP), carrier and importer pre-approval, and passage processing for low-risk shipments;

• implementation of the integrated primary inspection line at all major airports and bus offices (261 lanes at 38 locations);

• a four-agency evaluation of the NEXUS pilot completed in January 2002;

• implementation of the ACROSS interface with DFAIT's Import Processing System June 2001; and

• increased stability and availability of ACROSS.

Work in progress

Work progressed on the following change initiatives under CAP during 2001-2002:

Expedited Passenger Processing System (EPPS) is well under way and will be implemented at Vancouver International Airport and Pearson International Airport in early 2003. A joint program with the United States, NEXUS-Air, will be piloted at Ottawa International and Dorval International Airports later in the fiscal year.

Advance Passenger Information (API) is an example of the CCRA's commitment to risk-based processing, which relies on advance information. With the use of technology, customs officers will have information about persons on board an aircraft en route to Canada. Having information about a traveller prior to arrival will enable them to more effectively detect travellers who may pose a high risk. This is consistent with our commitment to intensify efforts to stop illegal activity and to protect the health and safety of Canadians. In response to the events of September 11, 2001, API was accelerated and expanded from a pilot project to full implementation on a priority basis. Implementation of API at major airports is scheduled for the fall of 2002.

NEXUS Highway – Officials from both Canada and the U.S. reviewed the NEXUS program following the events of September 11. They confirmed that pre-screening and registering low-risk participants supported by sophisticated technology at the time of entry is an effective way to expedite the clearance of low-risk travellers without compromising security. As a result, expansion of NEXUS to three sites in British Columbia/Washington was scheduled for June 2002, followed by a fall 2002 implementation in Southern Ontario.

Integrated Customs System (ICS) – ICS is an application framework that initially will blend the many different Customs automated systems, databases, and technologies. Over time, it will replace them with common components to provide a consistent user-view, enhance access, and facilitate information sharing. Systems design and development continue on the ICS, in particular on the Customs Query component, which will be required to support API and EPPS.

G7 – This project will promote certainty and consistency for Canadian importers and exporters by harmonizing the data required for the import and export of goods, and by establishing a standardized electronic format for the presentation of information. Design and development continues on G7/electronic one-step for imports and G7 exports, with both scheduled for implementation in the spring of 2003.

Advance Commercial Information (ACI), previously Carrier Re-engineering – ACI is about getting the right information at the right time to make informed decisions about whether to examine shipments at the first point of arrival. Discussions with the United States on harmonizing customs procedures for all commercial shipments are presently under way.

Delayed projects

EDI Adjustment is designed to enable clients to correct entry data on commercial imports through the Customs Automated Data Exchange (CADEX). This initiative was previously scheduled to enter the planning stage in September 2001. However, due to priority being placed on security-related initiatives, the planning for EDI Adjustment will be delayed.

Exhibit 65: Customs Action Plan Initiatives with Corresponding Anticipated Results

Date modified:

2002-11-07