CBSA AUDITS

Every carrier moving freight northbound into Canada should be prepared for a CBSA internal audit of their handling of paperwork systems that are in place. This is doubly nececessary for carriers who are CSA/FAST approved. If you have not yet been audited by the CBSA rest assured that it is only a matter of time before they will come calling.

When they do it would be nice to be prepared. It is simple enough to be prepared for such an eventuality. Here below are some guidlelines that will assist you in being ready for such an audit. CBSA audits may be unannounced and random in support of the Customs Self Assessment Program.

Ensure you are familiar with and have in place:

 * corporate structure and carrier code;

 * security measure for freight facilities and personnel policies;

 * terminal and warehouse locations;

 * Canadian and U.S. divisions

Recordkeeping – Carriers will be asked to produce:

 * accounting and carrier systems;

 * the location of books and records;

 * a walk-through of an international Canada-bound order;

 * the current business process for all shipments;

 * sample documents, descriptions, and the linkages for each step in the shipping process;

 * how CSA customers, drivers, and shipments will be identified in the system; and

 * how CSA shipments will be traced.

Carriers must have available a current list of owner-operators used to transport CSA freight into Canada.

Important Guideline

CBSA inspectors will likely want to see 90 days of orders in sequential order. Orders must be clearly separated as CSA orders and Domestic orders.

Training

As a mock training endeavour you should conduct the following once or twice a year so that staff will be familiar with the CBSA requirements:

Training Task

Select an order number of a Canada-bound shipment

A – provide a list in the form of a report generated directly from your software system.

The list must include but not be limited to the information as follows:

 – internal control number

 – date of order

 – invoice number

 – tractor number

 – trailer number

 – driver name

 – carrier code

 – CSA/FAST shipment (yes or no)

 – commodity

 – date of pick up

 – date of receipt

 – name and address of Importer of Record (IOR)

 – name and address of shipper

 – billing name and address

 – address of pick up location

 – name and address of consignee

 – delivery location

 – port of exit

 – port of entry

B – In addition, gather together the paperwork located in the office that supports this movement of freight into Canada. This should include all documents and/or screen prints, related to the shipment such as bills of lading, waybills, invoices, customs control document, PARS, dispatch records, proof of delivery, etc., all in support of the movement of this freight.

Note: It is important that you note exactly where these documents are stored in your offices.

You must be able to show proof that the order number follows the shipment from its inception to its conclusion – called in order to invoice and payment.

This would make for a very interesting training session during a quiet operational period involving those that handle this paperwork including dispatchers and clerical staff.

“YOU’RE FIRED”

Back in the 1940s, 1950s and 1960s and probably later if the boss didnt like the ‘cut of your jib’ he simply fired your ass with little consequences. It is an entirely different situation today. Today we have both federal and provincial regulations that protect the employee and the employer. Few people realize it but in the trucking industry there are special regulations set aside that protect the truck driver which is not common amongst other workers. An Arbitration Judge once pointed this regulation out to me and advised that it was created to protect the driver from unscruplous owners who were common in the industry in the “old days.” Let’s hope things are changing.

The first thing a present day employer must realize is that it isnt easy to terminate, dismiss, or fire an employee. Employees who work for federally regulated businesses such as inter-provincial carriers are governed by the Canada Labour Code, whereas employees working for provincially regulated carriers are governed by the Ministry of Labour. In fact should an employee have an inquiry they can start by making an inquiry to:

Ministry of Labour (Ontario) Employment Standards 1 800 531-5551

Waterloo, ON 519 885-3378

Toronto, ON 416 326-7160

Other contacts are normally listed in your local telephone book. There are lawyers that specialize in providing assistance to the disgruntled employee. You might want to avoid the lawyer approach at the outset because it can become very expensive.

Employers doing their jobs and acting professionally should very rarely be placed in a position where they are obliged to fire an employee. The process of ‘progressive discipline’ enables the employer to develop and correct and enhance the performance of their employees. Every employee should have a detailed job discription and an immeidate supervisor. Employees should be hired probationary for 90 days and closely observed. Shortcomings as well as good performance should be pointed out to the employee. It is imperative that a paper trail be created and records kept. Where employees’ performance is unsatisfactory they should be presented with the opportunity to correct the problem and/or undergo additional training. Of course if repeated unsatifactory performance continues to the detriment of the carrier and the employer has recorded proof that measures were taken and supervision and training given then termination may have to result.

Drivers accused of severe misconduct such as theft, cabotage, smuggling, or physical assault etc can be immediately fired through a summary dismissal.

There is a terrible statistic that seems never to change and that is approximately 80% of complaints filed under the Canada Labour Code come from the trucking industry mostly related to drivers being owed wages and wage-related benefits.

 Here are some guidelines:

The first 90 days of employment is ‘fair game’ time where there is no requirement for notice or rationale for a dismissal. This is often called a probationary period.

Employees on the job betwen three and 12 months are eligible to receive two weeks notice or the equivalent pay.

If a driver files a complaint about the way they were treated it will normally result in a decision by an inspector or be sent to aribitration. The result of which will likely be job reinstatement or financial settlement being awarded.

Be clear in what your expectations are.

Ensure job descriptions, contracts and discipline related documents clearly outline job requirements.

Any corrective procedures should be applied consistently in your business – dont play favourties.

Act immediateley – dont allow poor work performance or other problems to continue without taking appropriate action.

Keep disciplinary meetings private and face-to-face. Act professionally and deal with facts and not personalities.

Maintain a detailed paper trail.

Judge each case on its own merits.

Ensure you thoroughly investigate every case ensuring you have gathered information in support of your actions prior to terminating an employee.

Remember, almost without exception every person is salvageable. Many only need a guiding hand to set them straight and or lift them up.

Dont promote underserving employees – be aware of the Peter Principle.

My first post

Here’s where I write about things that interest me such as Truck Transportation specifically Safety, Security and Border Crossing. You can contact me at:

caperfca@sympatico.ca or leave me a comment here in my Blog or write to me at:

Fraser’s Consulting Agency

28 Marina Drive

Brighton, ON Canada K0K 1H0

613-475-6470 – 613-475-6471F