CUSTOMS, IMMIGRATION AND CROSS- BORDER OPERATIONS COMMITTEE Status of Cross-Border Trucking Issues AATA Meeting April 7, 2003

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1 CUSTOMS, IMMIGRATION AND CROSS- BORDER OPERATIONS COMMITTEE Status of Cross-Border Trucking Issues AATA Meeting April 7, 2003 MARTIN D. ROJAS, Director for Customs, Immigration and Cross-Border Operations, American Trucking Associations, Inc. Martin Rojas is Director of the Office of Customs, Immigration and Cross-Border Operations at the American Trucking Associations (ATA). Prior to his present position, Mr. Rojas was Director for International Affairs at ATA since Established in 1933, ATA is the national trade organization representing the interests of the U.S. trucking industry. Mr. Rojas primary duties are to advocate on behalf of the U.S. trucking industry on issues related to customs and immigration throughout North America, in addition to dealing with government agencies with jurisdiction over international transportation and trade activities. His efforts are primarily focused on making the movement of trucks across the U.S. southern and northern borders as safe, efficient and effective as possible. This requires close coordination not only with customs and immigration services, but also with the departments of transportation, commerce and labor of all three NAFTA counties. He also works closely with ATA s private sector counterparts in both Canada and Mexico. Prior to joining ATA, Mr. Rojas was the Director for Communications for the U.S.-Mexico Chamber of Commerce, and served as Executive Director of the Chamber s Mid-Atlantic Chapter. At the Chamber, Mr. Rojas played a key role in developing and representing private sector interests in the negotiations and the implementation of the North American Free Trade Agreement (NAFTA). Mr. Rojas holds a BA in International Affairs and Masters of Public Administration from George Washington University in Washington, D.C. 1

2 Key Issues Security Issues Impacting Cross-Border Operations U.S. Customs INS DMIA: Entry/Exit Control Systems Department of Homeland Security (DHS) FDA and ATF/DOT NAFTA Update U.S. Customs Issues Customs Trade Partnership Against Terrorism (C-TPAT) Free and Secure Trade (FAST) Program Company and driver registrations being accepted Driver qualifications ambiguous LTL solution to use FAST lane Trade Act of 2002 Straw-Man Proposals 1

3 U.S. Customs: Trade Act of 2002 Implementation of Trade Act of 2002: Requires Electronic Pre-notification of Cargo prior to importation and exportation Implementation of Reg. by Oct. 1, 2003 (flexibility is afforded to Secretary on implementation) Do not use cookie cutter approach, recognize each mode s operational differences Requires Customs to work with Trade to reach best possible outcome. U.S. Customs: Straw-Man Proposals Straw-Man Proposals: Jan. 16 Meeting Import: 4 hours prior to lading; use NCAP and PAPS for electronic pre-notification Export: 24 hours transmit manifest information prior to export using AES ATA comments, due Feb. 18 th focus on: Would eliminate JIT and expedited cargo, substantial negative economic impact Don t require timeframe; Change lading to arrival What is purpose of CTPAT/FAST? COAC subcommittee working on alternatives 2

4 INS Data Management Improvement Act Task Force First report available on DMIA Task Force website ( follow Border Management to the DMIA page) Improve cooperation and coordination among U.S., Canada and Mexico Improve cooperation and coordination among border agencies Provide greater resources at POEs for human, technology and infrastructure needs Will DMIA continue under DHS? Non-Landed Immigrant Rule Beginning March 17, 2003, all landed immigrants in Canada seeking to enter the United States as non-immigrants must possess valid passport and non-immigrant visa to enter. Homeland Security Under Secretary for Border and Transportation Security (Asa Hutchinson) March 1: Transfer Customs, enforcement function of INS, TSA, APHIS Secure the borders, territorial waters, ports, terminals, waterways, and air, sea and land transportation systems including managing and coordinating those functions transferred to DHS at ports of entry. Ensure the speedy, orderly, and efficient flow of lawful traffic and commerce Assistant Secretary for Bureau of Customs and Border Security (Robert Bonner) 3

5 Food and Drug Administration Bio-Terrorism Act: January 29 th FDA proposed rule on pre-notification of food shipment imports Final Reg. must be implemented by December 12, 2003 Requirements: Importer is to provide pre-notification via the internet by noon of the day prior to import. Information will include name of carrier. A separate system is being built to handle this; a "bridge" will be constructed to convey the notices to USCS. The plan is ultimately to merge with ACE in The registration provisions may or may not include LTL terminals - any facility that "holds food" is required to register (but not individual conveyances). Copy of rule and information at ATF/DOT Safe Explosives Act of 2002 Effective Jan. 24 th prohibits certain persons from possessing explosives: includes aliens, i.e. Canadian and Mexican drivers ATF: DOT not implemented Patriot Act DOT: Retains exclusive jurisdiction Canadian known shipper/carrier TC/TSA list Canadian explosives drivers register with FAST DOT developing solution for MX drivers 4

6 NAFTA January 16, 2003, U.S. Court of Appeals, 9th Circuit issued adverse opinion: DOT failed to comply with federal environmental laws for three FMCSA regulations allowing MX carriers to operate into U.S. Options: DOT prepares full Environmental Impact Statement (NEPA), and conformity determinations under Clean Air Act DOJ can file a motion for rehearing by entire 9th Circuit within 45 days of opinion If denied, DOJ can seek certification from the U.S. Supreme Court to hear appeal Reaction by Mexican Government 5