On May 13, 2016, the Government of Canada announced that on May 11,
2016 the Canada Border Services Agency ("CBSA") had
signed a Mutual Recognition Agreement ("MRA") with the
Tax Administration of Mexican States. The MRA was signed at the
World Customs Organization 3rd Global Authorized
Economic Operators (AEO) Conference in Cancun, Mexico.
This means that Mexico will recognize Canada's Partners in
Protection ("PIP") and permit expedited customs clearance
to PIP members. Canada will recognized Mexico's SAT's
Nuevo Esquema de Empresas Certificadas ("NEEC")
programs and permit expedited customs clearance to NEEC
The MRA expands the international trade network of accredited
low-risk companies. The MRA between Canada's PIP and
Mexico's NEEC programs means that:
both countries apply similar security
standards and site validation practices when approving companies
for membership in their respective programs, and
both countries recognize each
other's members and may grant them similar benefits.
Canada's PIP Program is a cooperative trusted traveler
program between the CBSA and private businesses engaged in
importing and exporting activities (and suppliers thereto). The
purpose of the PIP program is cross-border trade chain security and
trade facilitation of legitimate cargo by reducing risks to
Canada's security, health, environment and economy from
supplier to customer origin to destination. While the PIP Program
clearly has a trade chain security objective, it also has as an
objective the facilitated clearance of legitimate cargo and use of
FAST lanes at the border.
The PIP Program is a voluntary program pursuant to which private
businesses may apply and demonstrate that they pose low risk to
trade chain security and, therefore, are trusted businesses.
Private businesses must provide detailed information, which will be
provided to the CBSA, the United States Department of Homeland
Security and other governmental agencies. There is no statutory
obligation to participate in the discretionary and regulatory PIP
There is no membership fee to participate in the PIP Program.
Participants in the PIP Program are required to satisfy terms and
conditions in order to join the PIP Program. In addition,
participants in PIP must continue to abide by the rules of the PIP
Program in order to remain in the PIP Program.
The Canada-Mexico MRA aligns with the World Customs
Organization's SAFE Framework of Standards, which establishes
standards for globally integrated supply chain security and
facilitation for all modes of transport.
The CBSA has now signed five MRAs with other customs
administrations, including the United States, Japan, Singapore and
the Republic of Korea:
June 2008 –
U.S. Customs and Border Protection – Customs Trade
Partnership Against Terrorism (C-TPAT) program
June 2010 –
Japan Customs and Tariff Bureau – AEO program
June 2010 –
Korea Customs Service – AEO program
June 2010 –
Singapore Customs – Secure Trade Partnership (STP)
May 2016 – Tax
Administration Service of the United Mexican States – New
Scheme of Certified Companies (NEEC)
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
While that agreement mandated export measures on Canadian softwood lumber exports destined for the United States, it also protected those lumber exports from the potential imposition of onerous import measures by the U.S.
On September 29, 2016, the Supreme Court of Canada issued its first tariff classification decision since Canada signed the International Convention on the Harmonized Commodity Description and Coding System in 1998.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).