US / Canada Border Issues William Cook Senior Manager, Corporate Customs DaimlerChrysler Corporation April 30, 2004
Feb 18, 2016
US / Canada Border Issues
William CookSenior Manager, Corporate CustomsDaimlerChrysler CorporationApril 30, 2004
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Agenda
1.1. Automotive Industry OverviewAutomotive Industry Overview
2.2. Automotive Trade OverviewAutomotive Trade Overview
3.3. Automotive Border ExpectationsAutomotive Border Expectations
4.4. RecommendationsRecommendations
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Automotive Industry Overview
US In 2002• Built 73% of NAFTA vehicles• Built 12 million vehicles• Sold 16.8 million vehicles• Employs
• 770,000 directly• 1,001,000 indirectly
• Spends annually• $500 Billion in US on parts• $21 billion on R&D• 7.5 billion on health care
CanadaIn 2002• Built 16% of NAFTA vehicles • Built 2.6 million vehicles• Sold 1.7 million vehicles• Employs
• 50,000 directly• 550,000 indirectly
• Accounts for• 16% of manufacturing• 20% of all exports• $27 billion in trade
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Automotive Trade Overview
• $18.1 B cars & trucks• $26.5 B parts & engines
• $46.8 B cars & trucks• $16.6 B parts & engines
Source: Statistics Canada, DesRosiers 2003Figures are in $US
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Major Automotive Border Crossings
Bluewater Bridge
Ambassador Bridge& Detroit/Windsor Tunnel
Peace Bridge
Queenston-Lewiston Bridge
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International Highway Traffic Volumes between US & Canada
• 43% of total volume between S.W. Ontario and S.E Michigan• 26% of total volume at Ambassador Bridge in Windsor/Detroit
• DCX is 14% of volume with approx 1000 truckloads daily
Automotive Sector Traffic Volumes• 34% of total volume• 68% of shipments occur at Detroit or Port Huron
Automotive Cost Implications• Plant shutdowns costs $1.5 million/hour in lost revenue
Automotive Trade Overview
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Just-In-Time Delivery Process
Kautex Textron
Jefferson North Assembly Plant
OntarioMichigan
Daily Ship WindowsMON 04:00MON 07:00MON 10:00MON 13:00MON 16:00MON 19:00
Delivery WindowsMON 06:00MON 09:00MON 12:00MON 15:00MON 18:00MON 21:00
15 Minutes15 Minutes 90 Minutes
Ambassador Bridge
• Supplier located in Windsor, Ontario• 6 daily shipping windows• 2 hours total transit time• Supplier submits ASN upon shipment
• JNAP located in Detroit, Michigan• 3 hours total inventory on hand
Supplier issues 856 Advanced Shipping
Notice (ASN)
CHAMPS monitors, analyzes and updates
supplier shipment / delivery performance
CHAMPS data populates CNACS
and UPIPS with import shipments
Broker accesses USIPS to retrieve shipment data for entry information
Broker sends pre-shipment and
entry information to US Customs
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Automotive Border Expectations
JIT (just in time) inventory requires:
• Seamless border crossingsSeamless border crossings (i.e. minimal paperwork and crossing delays)
• Consistent treatmentConsistent treatment of shipments at every port
• Predictable border crossingsPredictable border crossings necessary to meet JIT delivery
• Expedited low risk shipmentsExpedited low risk shipments for qualified importers
• Improved infrastructureImproved infrastructure to manage traffic efficiently and allow clear access for authorized traffic
• Modern technologyModern technology to enhance and simplify processes
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Border Delays Do Not Support JIT!
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Automotive Border Expectations
DCX has been a leader in developing and promoting the use of optimal border management systems
• Examples::
• CSA/FAST CSA/FAST • NEXUSNEXUS• Partners in Protection/CTPATPartners in Protection/CTPAT
DCX needs recognition that:• We are low risklow risk
• Our shipments, drivers and carriers are securesecure and compliantcompliant
Efficient Borders are critical critical to our business
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Recommendations
Border ManagementBorder Management• Improve efficiency of driver registration process• Clarify benefits for CBP/CBSA programs to promote
participation• Increase focus on unknown or high risk freight• Simplify requirements with common US/Canada
processes
TechnologyTechnology• Optimize technology to improve operations and
integrated solutions• Implement intelligent transportation systems
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Recommendations
InfrastructureInfrastructure• Improve facilities to optimize capacity• Improve border access for low risk importers• New border crossing to meet increasing demands
FundingFunding• US
• Establish separate border program as part of the reauthorization of the Surface Transportation Bill
• Allocate funding to border states based on relative volume of trade
• Canada • Proceed with prioritizing and spending of $300M allocated