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Forwarders face fines, angry shippers via Canada Customs filing error

THE Canadian International Freight Forwarders Association (CIFFA) has issued an urgent warning against filing eHBL [electronic house bill of lading] on back-to-back shipments because the liability is too great.

"If you have containers that are already inbound on an eHBL filing, be vigilant," said the CIFFA website warning.

"It is possible that the EDI D4 Notice will go automatically to the primary terminal and the container can easily be picked up and delivered without proper customs clearance. If the eHBL 8000 CCN [cargo control number] is yours, you are on the hook for duties, taxes and AMPs [administrative monetary penalties]," it said.

One remedy is not to issue the pick-up number to the importer or trucker until after the goods have been customs released with full acquittal, said CIFFA but then added: "That, of course, only works at terminals where there is a pick-up order system in place."

Failing that, the best way is to stop filing eHBLs on back-to-back containers until the problem is resolved.

"Instruct your agents that you will refuse to handle these single shipments if an eHBL is filed overseas," CIFFA advised.

"Back-to-back single shipments should revert to ACI [advance commercial information] Supplementary data filings and clear on the 9000 CCN just as you have done in the past. It is regressive, but it is the only safe way.

"Until the CBSA [Canadian Border Services Agency] comes up with a solution to ensure cargo moves securely, don"t file eHBL for single shipments. It is too risky," said CIIFA.

"The problem is that a container can get delivered before it is released from customs. This can happen to air freight shipments, but containers are far riskier.

A container of fireworks was loaded in China, headed for Canada, said CIFFA. The Chinese non-bonded foreign forwarder filed eHBL data under its 8000 carrier code, without advising the Canadian consignee forwarder that he had done so.

"The Canadian forwarder received the 9000 carrier's import advice and passed the 9000 CCN on to the Canadian customs broker to clear," he said.

"At the same time, the container arrived and moved inland to the rail terminal. The rail terminal operator received the Deconsolidation Notice and updated its system. The importer sent in a trucker, retrieved the container, took it back to its location and unloaded the fireworks," CIFFA said.

"While this was happening, the customs broker received a reject notice because the entry should have been made on the 8000 cargo control number (CCN) and not the 9000 CCN.

"And, the container was called for examination ?on the 8000 eHBL CCN. But, it had already been delivered. Gosh, you say. That's a problem ?delivered before release and without being examined.

"The essential issue is that terminals update their systems from the automatic EDI D4 Deconsolidation Notice - or from the validated paper, as per, as "released" or "re-manifested". Drivers can then pick up the container ?which may or may not be acquitted," said the CIFFA statement.