Canadian and US border issues

Traceability is not limited to tagging products with a chip or bar codes to trace their location. The globalization of markets has prompted the US Customs and Border Protection to impose new and pending requirements concerning subcontractors serving the supply chain. A growing number of subcontractors exporting goods to the US are being asked to provide detailed product information, including persons, tools, equipments and conditions involved in a given supply process (i.e. procurement, production, inventory management, order processing, warehousing, transportation, and distribution). Given the substantial amount of Canadian goods that are exported to the United States of America (USA), supply chain participants are invited to cooperate with US Customs by integrating a traceability system, in doing so, ensuring compliance to American laws and regulations such as:

Customs-Trade Partnership Against Terrorism (C-TPAT) Although the international supply chain and U.S border security initiative is currently voluntary, U.S. Customs and Border Protection strongly recommends that small and medium sized businesses acting as suppliers to American importers join the C-TPAT program and employ its guidelines to ensure the security of their practices, as well as communicate and verify their business partners’ security guidelines. Resorting to traceability becomes beneficial when the names of participating suppliers are on file, thereby ensuring that any information on products, up to its origin, can be obtained. Two examples that illustrate the benefits of joining a C-TPAT program are reduced border delay times (reduced inspections) and priority of customs inspection.  Resorting to traceability enables exporters to apply C-TPAT’s distinguishing features to their supply chain practices to:

• Assure safety of goods
• Locate goods at the proper time and place
• Improve quality and performance focused relationships with client
• Collaborate with upstream and downstream partners
• Improve process control
• Reduce counterfeit goods
• Set up controls in the supply chain
• Improve product recall management

COOL

The mandatory American Country of Origin Labelling (COOL) requirement (« 2002 Farm Bill») applied to the agricultural and retail industries enables the tracing of the producer, the exporter and the distributor of imported items.

100% Scanning

The US law (SAFE Port Act 2007) mandates 100% scanning of maritime cargo container in foreign ports when they are bound to the USA, in other words, the last port of call before arriving at US. A traceability system enables efficient information flow when government inspection and control services scan containers before being loaded with non-intrusive imaging equipment and radiation, nuclear and radiological material detection equipment. Currently, 100% Scanning is conducted in pilot ports of Le Havre (France) and Southampton (UK), Qasim (Pakistan).

Food and Drug Administration (FDA) Bioterrorism Act

Traceability standards applied to the food chain supply enable businesses and their trading partners (who manufacture, processes, pack, transport, distribute, receive and import food) to comply with the Act and to meet requirements to prevent bioterrorism and ensure food safety. Among tracing requirements are information on food products’ shelf life and retention period as well as data on suppliers, customers and transporters. Businesses in all the areas of the food supply are affected by the Act.