How Do Cabotage Laws Impact Cross Border Carriers?

With the current requirements for electronic reporting by carriers entering Canada and the United States through the Advance Commercial Information (ACI) and ACE programs, it will become more readily apparent to Canada Border Services Agency (CBSA) and U.S. Customs and Border Protection (CBP) if pickups and deliveries have violated the Rules of Cabotage.

ACI eManifest Implementation Updates - Now What?

What Is Cabotage?

Canada Border Services Agency (CBSA) defines cabotage as the practice of point-to-point movement of domestic goods within Canada by foreign-based conveyances and operators.

How Does This Affect You As A Carrier?

Under the ACI and ACE programs, all carriers "For Hire" who engage in cross-border transportation will be required to provide conveyance information on all movements. This will provide CBSA and CBP with electronic data on all equipment entering their respective countries.

How Can A Carrier Stay Compliant?

Carriers have the responsibility to:

  1. Understand regulations regarding cabotage,
  2. Know what constitutes a permissible incidental or re-positioning move, and
  3. Ensure that they are in compliance
questions about compliance regulations
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About Author
Cherie Storms
CCS (CA & US), CTCS, CBSA Prof. Designate

Cherie Storms is the Canadian Operations Manager with PCB Customs Brokers, with over 18 years in international trade operations and regulatory experience. Since joining the company in 2007, she has become an Executive Board Member for the Canadian Customs Brokers Society, BC Region, and spoke at the Women in Transportation Annual General Meeting in 2010 regarding her experience running international logistics for the Vancouver 2010 Winter Olympics. Cherie is a member of CSCB's National Commercial Operations and eManifest Committee and sits on the Canadian Society of Customs Brokers' Board of Directors. In 2020, Cherie received the Emerging Leader award in the annual Surrey Board of Trade, Surrey Women in Business Awards. In her off time, Cherie is a motorsports driver for the Shift Up Now racing team, SCCA and CACC Women on Track Leader, racing tracks in Daytona and Indianapolis. With multiple championships, Cherie is a leader in the Jr Ambassador Program, encouraging young girls to excel in motorsports. Cherie has spoken at many seminars on the importance of trade compliance. She is currently enrolled in the British Columbia Institute of Technology (BCIT) Business Management Program to become an international trade lawyer.

While we strive for accuracy in all our communications, as the Importer of Record it is incumbent upon your company to ensure that you are aware of the requirements under the new regulations so that you maintain compliance as always.