CP Delivers the Goods. Key Parties / Roles & Responsibilities Clearing and Bonding Your Shipment: Canada United States

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2 CP Delivers the Goods Key Parties / Roles & Responsibilities Clearing and Bonding Your Shipment: Canada United States Documentation Hints and Tips Additional Customs Clearance Information Sample Preparing a Proper Bill of Lading An Easy BOL Guide EDI Protocol Frequently Asked Questions Acronyms Terms Phone Numbers and Websites

3 CP Delivers The Goods Canadian Pacific (CP) is a strong Class I North American railway franchise, providing innovative freight transportation services over a 14,000-mile (22,000- km) continental network. As North America's first purpose-built transcontinental railway, CP has a 128-year track record of linking businesses and consumers around the world. CPR Delivers the Goods CP ships over 800,000 trans-border railcar, and container loads between the U.S. and Canada each year, and volumes are expected to rise. As a result, Customs agencies are enhancing their abilities to electronically target suspect traffic and shippers. This means tighter regulations and requirements. At CP, we are committed to practicing the art and science of ingenuity. We work with you to make certain your shipment is delivered safely and efficiently. In order to ensure the fewest delays and transport free of penalties or fines, we've included some useful tips, guidelines and information in this handy booklet. Inside, you will find a guide to help you complete your shipment accurately and on time, every time. Supply Chain Security CP is a member of U.S. Customs and Border Protection's Customs Trade Partnership Against Terrorism (C-TPAT) and the Canada Border Services Agency Partners in Protection (PIP) Programs. Each Supply Chain Partner has a role to play in supply chain security and we encourage you to review and consider participation in these programs.

4 Key Parties / Roles and Responsibilities Your Trans-border Shipment A Role for Everyone By providing the required information, you can help your shipment move seamlessly. To do this, you will need the assistance of a few key parties. Keep in mind three central points: 1. Pay attention to details: U.S. and Canada Customs require detailed commodity descriptions and accurate Customs entry. A rule of thumb for commodity descriptions is to avoid industry jargon. An average person should be able to read and understand them. 2. Get it right every time: Repeat offenders garner the attention of the Customs agencies and are selected for inspection more often. 3. Use a reputable Customs Broker who specialized in rail traffic: Your Customs Broker should understand the railway business and provide specialized rail service 24 hours a day, 7 days a week. They should be knowledgeable in EDI transactions in order to clear your shipments as quickly as possible. Effective January 01, 2009 Pre-Arrival Review System (PARS) Entry will be required on all carload traffic destined for Canada. Each group involved must perform a certain function for the process to work properly: The Shipper or the Consignee is required to: Provide 100% accurate and correct billing information to the Carrier. This includes all 15 mandatory trans-border elements in this guide under Preparing a Proper Bill of Lading.* Provide commercial invoices to Broker.* Arrange for licensing (e.g. sugar quotas, firearms and other restricted commodities).* Pay all applicable duties and taxes. * To ensure your products are not delayed enroute the above must be completed before the shipment moves 12/19/2008 2

5 The Broker or Freight Forwarder is required to: Your Trans-border Shipment A role for Everyone Review the shipper's product movements needs, and advise the customer of Customs requirements. Process Customs entry on behalf of the Importer of record (e.g. submit applicable licenses, etc). Coordinate the payment of any applicable duties and taxes on behalf of the Importer. Act as a "go-between" for the Shipper, Carrier and Customs. The Carrier (CP) is required to: Transport goods. Report manifest information to Customs/Brokers. Supply train trip-sheet to U.S. or Canada Customs. Comply with Border/Inland Customs inspection requests. Declare arrival inland for in-bound shipments. Hold and protect cargo until Customs authorizes clearance (mandatory). Canada and U.S. Customs agencies are required to: Protect their country. Prohibit the importation of illegal goods, contraband or weapons (or exportation of these items in some cases). Collect revenues. Process permits and quotas. Consult with other government departments (e.g. Agriculture, Census, Food & Drug Association etc.) 12/19/2008 3

6 Your Trans-border Shipment A role for Everyone Other government agencies are required to: Collect and compile trade statistics on export moves (e.g. Statistics Canada/U.S. Census). Issue licenses for restricted and prohibited substances (e.g. Dept. of Agriculture, FDA, and Agriculture Canada). Formulate trade policy (e.g. Departments of External Affairs). Mandate the respective Customs agencies to enforce trade policy on their behalf (e.g. Canadian Wheat Board exportation permits). 12/19/2008 4

7 Clearing and Bonding Your Shipment Clearing and Bonding Your Shipment To effectively move your shipment without delays, consider these importing and exporting guidelines based on delivery origin and destination: Canada Importing to Canada can involve three different scenarios: 1. You can move your railcar, container and trailer traffic with CP from the U.S. to Canada. Broker entries must be filed in advance of the border to facilitate seamless transit. 2. You can move your International container traffic to Canada from ocean ports in New York, Long Beach CA, other U.S. ocean ports, or Mexico. This traffic can be moved through the U.S. on a Shipper's T&E Bond. CP can electronically carry a shipper's T&E Bond number if it is sent to us via an M12 segment on an EDI 404, or 417. (See EDI chart). CP will also create a Canadian Customs manifest, and fax it to your specified Broker. 3. You can move your traffic from the Canadian ocean ports of Vancouver and Montreal. This traffic can be manifested by the Steamship Line on an A6 bond or, in some cases, can be re-manifested from the ocean port to the inland destination by CP. CP can now in many cases expedite movement of goods across the Canadian border through the Canada Customs Accelerated Commercial Release Operations Support System (ACROSS). Through ACROSS, the Railway can file manifests with Canada Customs up to 30 days before the goods actually arrive at the border. CP also sends notification to your Customs Broker, who files an electronic entry to Canada Customs through ACROSS. Canada Customs can then review the manifest using its Pre-Arrival Review System (PARS). 12/19/2008 5

8 Clearing and Bonding Your Shipment Canada Customs Entry Options PARS (Pre-Arrival Review System) PARS is your best option for quick and cost effective customs release of your shipment. If the customs entry is processed by your Broker before the shipment arrives at the border, the customs release will be received upon arrival. A Broker can file up to 30 days before the shipment arrives at the border. Effective January 01, 2009 Pre-Arrival Review System (PARS) Entry will be required on all carload traffic destined for Canada. CP will assess a $55.00 supplemental services charge to all shipments entering Canada without PARS entry after January 01, Exporting from Canada to countries other than the U.S. can involve three different scenarios: 1. Mexico CP uses the U.S. Customs Automated Manifest System (AMS) to transmit data to Brokers at the U.S.-Mexico border. Shipments are moved seamlessly from Canada to Mexico via CP in conjunction with other railroad partners. Information is passed through AMS via EDI. 2. U.S. Ocean Port You can move your shipments with CP from Canada to U.S. ocean ports for export. AMS will create a transit and exit bond (T & E), to allow movement through the U.S. 3. Canadian Ocean Port You can can move your traffic with CP from Canadian inland cities to ocean ports at both Montreal and Vancouver. CP treats this traffic as a domestic move. Before exportation, the Exporter, agent or transport company must report all goods worth more than $2,000 (CDN) to be exported from Canada to a country other than the U.S. 12/19/2008 6

9 Clearing and Bonding Your Shipment Exporters must provide Canada Customs with an Export Declaration on either a Form B13A, or though the Canadian Automated Export Declaration (CAED) system. The CAED system is your best option for presenting your declaration to CBSA. Summary Reporting is also available to a limited number of Canada Customs qualified Shippers. In all cases, the Export Declaration Number must be included in Shipper billing instructions to CP. Some goods need export permits because the country of final destination is on a list of controlled export countries or because of their nature (e.g. arms, ammunition, and textiles). Exporters must maintain records in Canada in paper or electronic format for six years after the goods' export. For more detailed information on export requirements and records maintenance, Canada Customs provides a variety of useful pamphlets: Some examples are: Exporting goods from Canada Memorandum D20-I-0 Reporting of Exported Goods Regulations Memorandum D20-I-5 Maintenance of Records and Books in Canada by Exporters and Producers 12/19/2008 7

10 Clearing and Bonding Your Shipment United States Importing to the U.S can involve three different scenarios: 1. Domestic North American traffic. This traffic clears into the commerce of the U.S. at the border. 2. International container traffic brought to a Canadian ocean port and moved into the U.S. CP can bond your container from the U.S. border to destination. (CP does not create a bond for the portion of the trip from the Canadian ocean port to the U.S. border). 3. International container traffic imported through a U.S. ocean port and moved by rail to a U.S. destination. (This traffic normally moves on an ocean-lined bond). When CP receives your Bill of Lading (BOL), we send the manifest data to U.S. Customs electronically via Electronic Data Interface (EDI), and U.S. Customs passes it to your U.S. based Broker by ABI or fax. Your shipment status is then verified by the AMS, along with Customs or Agriculture hold notifications that might apply. U.S. Customs Entry Options Border Clearance Port of Entry For carload and Canadian origin Intermodal shipments destined to the U.S., you must employ a Broker at the border crossing to file paperwork and obtain clearance prior to arriving at the border. T&E Transportation and Exportation Bond Foreign goods moving through the U.S. for export to a third country. IT Immediate Transportation Bond For all international container traffic moving to points in the U.S. and intended for entry into U.S. commerce (rarely used for domestic North American traffic). 12/19/2008 8

11 Clearing and Bonding Your Shipment Exporting from the U.S (exiting the U.S. by rail): Shipments from the U.S. to Canada follow documentation rules outlined in the Importing to Canada section of this guide. Shipments being exported from the U.S. through Canada to a third country such as one in Europe or Asia flow with different processes. If you are shipping from the U.S. through Canada to be exported by vessel, You must meet U.S. Census Bureau reporting requirements as outline below. Exporters or their Agents must maintain copies of shipping documents for three years after exportation. Shipments to Canada Require an Export Exemption Citation. U.S. Census Bureau Automated Export System (AES) Reporting Requirements Rail customers exporting traffic from the United States to Canada, or through Canada to a third country are subject to U.S. Census Bureau reporting requirements. Specifically, the U.S. Census Bureau requires mandatory electronic filing of export information by the US Principle Party in Interest (USPPI) through the Automated Export System (AES) or through AESDirect for all shipments where a Shipper s Export Declaration (SED) is required. Under this rule paper Shipper Export Declarations (SED s) are no longer valid. All export information must be filed electronically. Proof of filing citations, post departure citations, exemptions and exclusions must be declared in compliance with regulatory requirements. Please pay particular attention to these requirements and ensure that the N9 segment of your EDI Bill of Lading (BOL) includes these mandatory filing citations. 12/19/2008 9

12 Required AES Citations on EDI BOL s are as follows: 1. AES Internal Transaction Number (ITN) Clearing and Bonding Your Shipment The ITN number is generated automatically by the U.S. Census Bureau's AES system assigned to a shipment confirming when export data is filed by the U.S. principal party in interest (USPPI) The 15 character ITN format remains unchanged from the previous rule. X + Year/Month/Day of export + 6-digit system generated identifier N9*ITN*X Post Departure Filers New Format The statement OPT 4 is no longer acceptable. The new format is as follows: i) AES Post departure Citation where the Electronic Export Information (EEI) is filed by the USPPI N9*PDF*AESPOST ii) AES Post departure Citation where the Electronic Export Information (EEI) is filed by an Agent on behalf of the USPPI N9*PDF*AESPOST Please Note: Do not include the date suffix ( mm/dd/yyyy ) in your filing to CPR for either Items i) or ii) above as this information exceeds the field length available within existing EDI reporting standards. U.S. Customs and Border Protection (USCBP) will accept the actual date of export available on the railway Export Report. Do not include blank spaces between the characters. 12/19/

13 Clearing and Bonding Your Shipment 3. AES Exemption Statement New Format The following format applies to shipments eligible to be exported without an AES Electronic Export Information (EEI). N9*CEN*NOEEI This statement is most commonly used on U.S. goods exported to Canada. Please refer to the U.S. Federal Register final rule for a complete listing of exemption codes. 12/19/

14 System Flow Chart 12/19/

15 Documentation Hints and Tips Clearing and Bonding Your Shipment The following table provides a list of the types of documentation you may require to move your shipment, as well as some hints, tips and common mistakes. Your Customs Broker can advise you further based on your shipment type. Documents Required Canada (origin) U.S. (origin) Hints and Tips Common Mistakes/ Consequences of Failure Bill of Lading: The Bill of Lading (BOL) must be complete with all necessary Customs requirements including the name of your Custom Broker. Use the CP BOL and instructions provided to ensure all your information is complete. Not Supplying the Broker name on your BOL: You must alert CP immediately to prevent penalties and delays. Customs Manifest: This manifest is created automatically by CP at the time of waybilling (except for U.S. import traffic through a U.S. ocean port). The CP Customs Manifest is created from your Bill of Lading information. You must provide any information required on the manifest up front. Providing inadequate commodity descriptions: Descriptions such as "FAK (Freight of All Kinds), "Chemicals", Household Goods" are not sufficient. As a rule of thumb, Customs agencies advise that Shippers should use the terms that can be understood easily by the average person. Commercial Invoices: Required by your Broker to file an entry against the CP manifest. Make sure the documents are delivered to your Broker on time and that they acknowledge receipt. Not providing correct documentation to the Customs Broker: In the end, if the shipment is setoff, the Shipper will receive supplemental service charges from CP. Certificates of Origin - (two types): 1. Shipments of grain that move from a U.W. origin to a U.S. destination through Canada require certification and must be approved by the Canadian Food Inspection Agency (CFIA) 2. NAFTA certificates are required to certify N.F.T.A. duty-free eligibility for specific commodities. Your Broker can advise you of what is needed for your shipment. Canadian Automated Export Declaration (CAED) Required for all shipments exported from Canada to a country other than the U.S... Some Shippers can qualify for summary reporting for exports, rather than presenting a CAED or a B13A with each shipment. These certificates must be delivered to CP with your BOL. Waybilling the shipment, then sending the certificates: This often results in delays and penalties due to missing documentation. continued... Provide theb13a document or the Summary Reporting Number to CP with your Bill of Lading, as well as to your Broker to ensure the documentation is on hand when your shipment reaches the border. Missing documents/information: If your shipment is stopped at the border by Canada Customs due to missing the B13A, or Export Number, you will be subject to the CP Customs surcharge and your shipment could be subject to CBSA penalties or seizure. 12/19/

16 Clearing and Bonding Your Shipment...Document Hints and Tips Documents Required Canada (origin) U.S. (origin) Hints and Tips Common Mistakes/ Consequences of Failure Automated Export System (AES) Number: This is an electronic form used for all shipments exported from the U.S. to a final destination other than Canada. Ensure that all provided information is correct. Always provide the required AES citation in the N9 segment of your EDI BOL.. Two citation options exist: The Internal Transaction Number (ITN), or the Post Departure Filing (PDF) filing. This information exceeds the filed length of EDI reporting standards. Do not include blank spaces between the characters. Providing an AES Number that has been used before: AES Numbers can only be used once. The commodity description submitted to CP must match that reported through the AES system. Failure to provide accurate information can cause delay and even seizure and penalization by U.S. Customs. Not entering sufficient AES data for rail: The rules for ocean and rail shipments are different. The data for your rail shipment must be filled out before your shipments leave the U.S. Export or Import Licenses: Required for select commodities. Food & Drug Administration (FDA) Prior Notice (PN): Required by your Broker to file a P.N. against the CP manifest for all food and food products consumable by humans or animals imported to the U.S. A Customs Broker can advise you on what export documents you need. Ensure that you or your customer's production facility is registered with the U.S. FDA PN system Late Broker filing: Resulting in shipment delay and supplemental penalties. Shipper Owned Bonds Not supplying the correct bonds for transportation: You are not only subject o CP's Customs surcharge, but also to Customs fines and penalties. 12/19/

17 Clearing and Bonding Your Shipment Additional Customs Clearance Information Provide all necessary information up front Most delays occur because some information was not provided on the Shipper's BOL and therefore is not on the CP manifest or the Broker's documentation. Get a Broker that understands rail The cheapest Broker may cost you money in delays and charges from Customs (Canada and U.S.), or your carrier. CP charges $550 For all carload set-offs caused by Broker or customer failure to provide documentation or clearance, in order to recover some of the costs incurred in setting off and lifting cars. Delayed Shipments CP issues a $550 supplementary service charge for all carload shipments that are delayed due to Customs clearance problems, or Customs infractions resulting from the action of the Shipper, Consignee or Broker. And, CP may also issue the surcharge on traffic selected for inspection by U.S. or Canada Customs. The $550. carload charge does not include additional fines that may be levied by Customs or other government departments. Related Intermodal charges are $750. per container. Improper Declaration In Canada, a second surcharge of $85. per day may also be levied by CP on shipments held by Customs for an extended period of time. This charge is to recover asset utilization costs. Use PARS CP will apply a $55. surcharge to all Canadian carload shipments not cleared at the border. Note: Please consult Tariff 2 for carload supplemental services information. Please consult Tariff's 7000 and 7800 for Intermodal related supplemental service information. 12/19/

18 CP Bill of Lading Following is an example of a Paper BOL... To make your document processing easier and more cost effective, submit your Billing by EDI. 12/19/

19 Preparing a Proper Bill of Lading Preparing a Proper Bill of Lading Trans-border shipping involves numerous documentation steps that must all be performed according to specific standards set by Customs and other government agencies. Customs agents pay extreme attention to details, so whether filing electronically or manually, make sure your information is: easy to read accurate up-to-date Once your documentation is complete, forward it to your Customs Broker immediately for quick processing. To prevent delays, fines and penalties, and in addition to all of your other BOL requirements, your Bill of lading must accurately report the following: 1. Shipper Name / Address 9. Weight and unit of measure 2. Exporter Name / Address (if different from the Shipper) 10. Destination Port and Country 3. Consignee Name / Address 11. Commodity description (specific and detailed Not FAK) 4. Importer Name / Address (if different from the Consignee) 12. Type of customs entry required 5. Broker name / Address 13. CBSA CAED B13 A or Summary Report Number 6. Country of Origin 14. AES Filing or Exemption Citation 7. Value of Shipment and specific Currency 15. Seal Numbers 8. Piece count 12/19/

20 An Easy BOL Guide Preparing a Proper Bill of Lading Here are some simple instructions to help you complete a basic Bill of lading. Numbers refer to boxes on the sample BOL provided. To make your document processing easier, you can fill out a Bill of Lading online through 1. Equipment Initial/Number: Identification number on the transportation container, trailer or railcar 2. Bill of Lading # / Shipment ID: Please double check for accuracy 3. Load or Empty: Indicates a loaded or empty transportation unit 4. Origin: City, Province/State 5. Destination: City, Province / State 6. Routing: 7. Receiver/Consignee: 8. Shipper/consignor: Specify route, railways and interchange cities where the unit will move, if other than CP Company name of ultimate receiver of goods, a complete address and phone number, and a contact party Company name of the Shipper of goods, a complete address and phone number, and a contact party 9. Bill Freight Charges To: Party paying the freight charges 10. Prepaid of Collect: Indicate method of payment 11. Rule 11: Specify whether this is a Rule 11 shipment 12. STCC #: Standardized Transportation Commodity Code Number 13. Harmonized Sys. Code: Numerical code for the commodity shipped from the Customs Harmonized Tariff 14. Seal #: Number on the seal on transportation unit 15. Piece Count: Number of packages 16. Pkg. Type: Description of goods (e.g. cartons, pallets) Continued... 12/19/

21 Preparing a Proper Bill of Lading An Easy B.O.L. Guide Continued 17. Commodity Description: 18. Weight (kg./lb.), Agreement #: Provide detailed description of commodity. Do not specify brand names or part numbers. Descriptions such as "FAK (Freight of All Kinds)", "Chemicals", Household Goods", or even "Sporting Goods" are not sufficient. As a rule of thumb, Customs agencies advise that Shippers should use terms that can be understood easily by the average person. An example may be "Golf Clubs and Golf Balls" instead of "Sporting Goods" Indicate weight of goods being shipped. If you are a Weight Agreement customer, give the Weight Agreement number (note that new U.S. legislation holds Shippers responsible for adherence to U.S. intermodal Weight Certification requirements) 19. Unit Price: The price of each individual unit within the shipment 20. Total Value: Piece count multiplied by the unit price for each line on the bill of Lading. The value should be in either Canadian or U.S. currency depending on the destination Customs 21. Importer name: If other than Consignee 22. Broker name: 23. Address: Name of the Customs Broker filing entry on behalf of the Importer Importer street Address, City, Province, or State, Postal or ZIP Code 24 Country of Origin: Country where the goods were produced 25. Port of Exit: Port and Country from which goods are departing 26. Value Currency: Indicate the total invoice price of goods shipped 27. Destination Port & Country: Port and Country to which goods are destined 28. Manifest From: The port where the goods begin their bonded movement 29. Manifest To: The port where the goods will end their bonded movement Continued... 12/19/

22 Preparing a Proper Bill of Lading An Easy B.O.L. Guide Continued 30. IRS #: Tax number of the U.S. Importer for U.S. Customs 31. C4 or Bar Code #: Numerical equivalent of a bar code. Identifies Importer and line-release participants 32. Customs Entry Type: Customs clearance process being used 33. Is this a CSA shipment?: Yes or No Intermodal 34 Special Instructions: e.g. Perishable, stop-offs and deliveries for Intermodal traffic 35. Shipment Pick-up Date and Time: Fill in year, followed by month, day and time in order specified 36. Intermodal Service Type: Select one 37. Length of Unit/Height of Unit: Shows size of transportation unit 38. Notify Party & Phone: 39. Delivery to be Performed by: 40. Delivery Date and time: 41. Contract # / Quotation # / Steamship Booking #: Number and phone number of party to be notified when goods arrive at destination. Should be a local party Party delivering unit after it reaches destination The appointed date and time that the Customer arranges with the local rail terminal for delivery of the shipment to the Customer's dock. Rate-quotation reference ensures that correct charges are levied 42. Signature of Shipper/Exporter 43. Signature of CP Agent 12/19/

23 E.D.I. Protocol EDI Protocol Here is a quick reference table to assist you with your EDI billing requirements. Data Requirements E.D.I. Field Unit/equipment initial and number N7*01 N7*02 Rail origin Rail destination F9 D9 Routing R2 Consignee name N1*CN Country of origin of the shipment CM*14 CM*02 = L Consignee address (street address, city, province/state and postal/zip code) N1*CN N3*01 Ultimate Consignee N1*UC Country of destination for the shipment CM*14 CM*02 = L Shipper name N1*SH Shipper address (street address, city, province/state and postal/zip code) N1*SH N3*01 N4*01 Ship from Customs Broker Canadian U.S. Mexican N1*SF N1 N1*QR N1*XU N1* XR U.S. freight forwarder (shipments to Mexico) N1*FW Department number N1*04 Value and Currency XH*04 XH*01 or XI*11 Shipper bond information M12 Piece count and unit of measure L0*08 L0*09 Accurate and specific description of the goods L5*02 Weight and unit of measure N7*03 L0*04 Seal number M7*01 M7*02 continued... 12/19/

24 E.D.I. Protocol EDI Protocol Continued... All shipments from Canada traveling via the U.S. to a third Country also require: Canada customs B13A, summary # or CAED number N9*01 N9*02 United States port of exit N/A Ultimate port of destination and Country CM or N10 All shipments from the U.S. traveling via Canada to a third Country also required: ITN or PDF number U.S. census N9*01 N9*02 All shipments fro the U.S. to Canada U.S. census exemption code N9*01 N9*02 12/19/

25 Common Cross- Border Question Common Cross-Border Questions Q. Q. Q. Q. How do I choose the right Customs Broker? A. Like all things in life, you get what you pay for. A customs Broker who is familiar with the rail business can anticipate and prevent problems that you may have missed. Check to ensure a Customs Broker can provide coverage at any border crossing you might use, has a good reputation with Customs agencies, and the rail carrier, and is familiar with rail transportation. How do CP and my Customs Broker work together? A. CP recognizes many reputable Customs Brokers across North America. We can automatically send a Customs manifest to your Customs Broker. All you need to do is ensure that the Broker's name in on your Bill of Lading in full, and is spelled correctly. We will also let your broker know when your shipment is headed to the border. I'm a new customer to CP. Where do I send my Customs documents? A. Your Customs Broker can give you advice on the appropriate documents and where they should be sent. For more information on rail-specific documentation for your specific traffic pattern, call CP customer service at There are many methods to clear my traffic into Canada. Which is the best? A. Effective January 01, 2009 CP will require all Canadian-bound shipments to be cleared in advance of border arrival by CBSAs Pre-Arrival Review System (PARS). A supplemental service charge will be applied to all shipments not filed through PARS PARS is Canada Customs Pre-Arrival Review System, which allows your Broker to file an entry up to 30 days prior to your car arriving at the border. It ensures that when your car enters Canada, it is released and ready to deliver to you or your customer. Filing PARS reduces expensive delays, and unnecessary re-work. 12/19/

26 Common Cross- Border Question Q. Q. I want CP to apply a particular type of bond to my shipments into the U.S., and I have the ability to provide M12 bond information on my ED Bill of Lading (404) to CP. What should I do? Please contact your Account manager or Customer Service at for further details. A. I would like to send my Line-Release data to CP using my EDI Bill of Lading (404). Can CP accept this information electronically? Yes. CP's Customs Application can accept line-release (C4) codes from a customer's electronic Bill of Lading or 404. This data would have to reside in A. the N9*09 segment. However, the following rules and procedures apply: The Broker's name (N1*CB) must be provided and must match the line-release code. For example, a 404 containing "Broker A" as a broker, and a "Broker B" line-release code will be rejected. A 404 with missing broker data and line-release code will obviously be rejected as well. U.S. Customs must validate the line-release code. Your Customs Broker is responsible for this validation. Line-release applies only to border-clearance traffic. DO NOT send line-release data for bonded traffic, such as shipment to Mexico, which involve transportation and Exportation (T&E) Bonds. Q. I am about to fill in my "Bill of lading". In the past, I've typed FAK in as the commodity description. Is there any problem if I continue to do so on trans-border moves? Yes, this is a problem. Border Agencies will not accept shipments with FAK. It is very important to ensure that your commodity description is descriptive, and yet easily understood. For example, a description of "sporting A. goods" is not sufficient. You must detail the types of sporting goods, such as baseball bats or golf clubs. If there are multiple commodities in the shipment, please list them all. 12/19/

27 Acronyms Glossary ABI ACROSS AES AMS CAED CP CSA CWB BOL EDI EEI EIN INPARS IRS IT (Canada) IT (U.S.A.) ITN NAFTA PARS PDF RMD SED STCC T&E U.S. FDA USPPI continued... Automated Broker Interface (Canada Customs) Accelerated Commercial Release Operations Support System Automated Export System Automated Manifest System Canadian Automated Export Declaration Canadian Pacific Customs Self Assessment Canadian Wheat Board Bill of Lading Electronic Data Interchange Electronic Export Information Export Import Number Inland Pre-Arrival Review System Internal Revenue Service In-Transit Bond Immediate Transportation Bond Internal Transaction Number North American Free Trade Agreement Pre-Arrival Review System Post Departure Filer Release with Minimum Documentation Shippers' Export Declaration Standardization Transportation commodity Code Transportation and Exportation Bond Food and Drug Administration U.S. Principal Party in Interest 12/19/

28 Terms Accurate and Specific Description of Goods Automated Broker Interface (ABI) Shipping instructions must include a full and detailed description of all contents of a shipment (not FAK). The electronic link between the U.S. Customs Broker and U.S. Customs Service. Glossary Automated Export System (AES) The U.S. Census Bureau's Automated Export reporting System used to file export information on shipments bound for over seas or Mexico. The system-generated ITN must be reported on EDI billing instructions to CP. Automated Manifest System (AMS) B13A B3B Bond Canadian Automated Export Declaration (CAED) Consignee Name Customs Bill Customs Broker Customs Clearance (Customs Release) Entry Export Permit The automated system used by U.S. Customs Carriers and Brokers to control customs transactions. Canadian export declaration option. Statistics Canada requirement for goods of Canadian origin going to any country other than the U.S. This document must be stamped by Canada Customs prior to loading. The number must then be reported on the Shipper's EDI billing. CAED is a better option. Details follow below. A multiple-car paper RMB entry. Promise by the issuing party to the responsible Customs agency that goods will be held until all applicable duties and taxes are paid, and the shipment is legally released in the commerce of the destination country. Electronic variation of B13A Statistics Canada reporting requirement. For shipments destined for all countries excluding the U.S. CAED's must be reported on Shippers EDI billing. Name of the party taking delivery of the shipment. Also known as "cargo manifest", "cargo control document", "carrier's bill", Customs bill" it provides Customs information on goods being carried, although it's not as detailed as the commercial invoice (the Bill of Lading may be a Canadian, U.S. railway, or ocean manifest). One who acts as an agent for others in filing Customs documentation in return for a fee or commission. The Broker most commonly works on import releases, but may also assist with export documentation. The import process of Customs authorities of the country into which goods are being shipped. During the process, the formal entry by the importer (or Broker) is matched with the carriers' manifest information, and reviewed by a Customs Inspector. The Inspector then decides to either hold the goods for inspection, or to release them to the Importer. Documentation filed by a Broker to a Customs Authority to have goods cleared by Customs, and to pay relevant duties and taxes. Export Requirement before exiting a country. For example, the Canadian Wheat Board permits for exports of wheat or barley or manufactured products with 25% content of wheat/barley. 12/19/

29 Terms Glossary Exporter FAK Import Permit Importer (of record) Invoice (Letter of Value, Invoice and Packing List) Manifest Pedimento Proforma Railway Waybill Shippers' Export Declaration (SED) Shipper Name The party responsible for providing export documentation to the country of export. This may or may not be the Shipper. Represents "Freight of all Kinds", a general descriptor used for shipments containing mixed products. FAK is an unacceptable description for trans-border shipments. Import requirement before allowing entry of shipment, often tied to quotas or other restrictions. The party responsible for having goods cleared through Customs, and paying any duties and taxes. While the Importer is often the Consignee or ultimate Consignee receiving the shipment, it may also be another party such as a middleman or wholesaler. The commercial invoice provides details of transaction between a Buyer and Seller, including specifics of goods and quantities sold. It is usually prepared by the seller. Is usually a listing of all Bills of Lading on a conveyance (ship, aircraft, and train), but railway industry now uses an individual cargo manifest per car/container/trailer. The Mexican equivalent of entry. It refers to the documentation bundle submitted by a Broker to Mexican Customs for release and payment. The pedimento process may be used for export controls as well. This is an abbreviated commercial invoice where the Importer, Broker, and Shippers are known to each other. For non-automated Carriers, this is usually used as the Customs Bill. It provides Customs authorities with basic information about what goods are being carried in the car or container. It provides a level of information found in a manifest, and is less detailed than an Invoice. A U.S. Census requirement for goods of U.S. origin to any country other than Canada. Shipment details must be reported electronically through the AES system by the USPPI or Agent. The AES, ITN, or PDF number must be reported to the Exporting Rail Carrier. name of ultimate or originating Shipper Ultimate Port of Destination and Country The final destination of a shipment that is traveling through the U.S. in transit. United States Port of Exit The point at which a shipment exits the U.S. to the destination country. Value and Currency Value in Canadian or U.S. dollars. Weight and Unit of Measure Weight in a standard measurement. 12/19/

30 Border Services Guide Contacts / Information / Related Links Canadian Pacific Railway Canada (24/7) Shipment Transit and Problem Resolution Bill of Lading Documentation Questions United States (24/7) Customer Service Additional Industry Contacts Canada Canada Customs: Virtual Canada Customs Office at Canada Customs: Canadian Society of Customs Brokers (C.S.C.B.) can provide contacts for Canadian Customs clearance: Suite 320, 55 Murray Street Ottawa, OT K1N 5M3 cscb@cscb.ca Phone: United States U.S. Customs Service: U.S. Customs/U.S. Census Automated Export System: National customs Brokers and Forwarders Association of America (NCBFAA) will provide a list of U.S. southern border Brokers: The National Customs Brokers & Forwarders Association of America Inc th Street N.W., Number 901 Washington, DC staff@ncbfaa.org Phone: Website: Fax: back to index page 12/19/