SASKATOON – For Canadian companies importing food from the United States, the border is more than a line on a map. It is a place that can cost them a lot of money.
Shipments from across the border must wait until the cargo is approved by Revenue Canada and Agriculture Canada. Companies have to pay drivers while they wait and have stock tied up there instead of being up for sale on store shelves.
“(When shipments are delayed) it’s going to cost everybody money,” said Joanne Leggett from the Livingston trade services company in Toronto.
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During the past year, Agriculture Canada, Revenue Canada and Livingston have developed a pilot project in Ontario that could cut the time shipments sit at the border.
Authorized first
The Frequent Importer Release System is designed to allow importers to get shipments authorized and approved before they even hit the road.
Shippers send applications to Revenue Canada and Agriculture Canada ahead of time. Companies are issued an authorization number that is bar-coded onto documents. When the truck arrives at the border, customs agents can enter the authorization number and access approval records already in the computer system.
The FIRST system was put in place by Revenue Canada five years ago, but the pilot project is the first time pre-approval has involved two different departments.
“It’ll make our job a bit easier, but the person who really benefits is the importer,” said Agriculture Canada’s Les Buckmaster.
Leggett said importers will have to report to federal departments weekly and there will be spot checks on shipments.
The pilot program will run until Revenue Canada and Agriculture Canada are satisfied there are no glitches in the system.
“It could be six weeks or it could be six months,” said Leggett.
