FEDERAL REG

SOR/2016-35: Regulations Amending the Passenger Information (Customs) Regulations

REGISTRATION OF FEDERAL REGULATION - VIA OIC DATABASE, PRIOR TO PART II OF THE GAZETTE

Registered
March 11, 2016


REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the regulations.) Executive summary Issues: Every year, inadmissible travellers arrive at Canadian airports and are subsequently refused entry by officers working for the Canada Border Services Agency (CBSA). The Government of Canada (GoC) currently has no means to systematically indicate to an air carrier whether a traveller is ... (Click for more)


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Published on March 11, 2016

Bill Summary

SOR/2016-35: Regulations Amending the Passenger Information (Customs) Regulations

REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the regulations.) Executive summary Issues: Every year, inadmissible travellers arrive at Canadian airports and are subsequently refused entry by officers working for the Canada Border Services Agency (CBSA). The Government of Canada (GoC) currently has no means to systematically indicate to an air carrier whether a traveller is prohibited from entering Canada without prior authorization (a prescribed person, by regulation) or whether a traveller has the documents required by regulation for travel into Canada (prescribed documents), prior to a flight’s departure for Canada. This inability will present a noticeable enforcement gap upon the introduction on March 15, 2016, of Canada’s requirement for visa-exempt foreign nationals (FNs) to hold an electronic travel authorization (eTA) to travel to Canada, a document that can only be validated through an automated system. Description: The Interactive Advance Passenger Information (IAPI) regulatory amendments build on the existing regulatory framework underpinning the CBSA’s current Advance Passenger Information/ Passenger Name Record (API/PNR) program. These amendments serve to both expand on and modernize the description of the legal obligations imposed on commercial transporters generally. The amendments also introduce new data elements in the air mode and will ensure the earlier provision of data that carriers already submit in the API/PNR program. The IAPI amendments will provide the CBSA with the authority to apply a systematic mechanism to identify travellers who are not admissible to Canada, either as a result of being previously found inadmissible and lacking the required authorization to return to Canada (ARC), or because they lack the documentation necessary to enter Canada, including the eTA. The IAPI initiative will contribute to preventing prescribed persons and improperly documented FNs from reaching Canadian Ports of Entry (PoE), thereby protecting the integrity of Canada’s immigration program and enhancing public safety. Communicating inadmissibility information in near real-time to air carriers prior to the departure for Canada of commercial flights will inform the carrier’s decision of whether to board an individual. The IAPI regulatory amendments modify the following four sets of regulations made under the authority of the Customs Act and the Immigration and Refugee Protection Act (IRPA): Passenger Information (Customs) Regulations; Designated Provisions (Customs) Regulations; Immigration and Refugee Protection Regulations; and Protection of Passenger Information Regulations. Cost-benefit statement: An estimated 46.06 million Canadian dollars (CAD) will be incurred by the CBSA, while an estimated CAD 29.03 million will be incurred by the commercial air industry to comply with the required changes. Therefore, the total cost of implementing the regulations under the IAPI initiative is estimated at CAD 75.09 million in present value, or CAD 10.69 million in annualized value over the first 10 years of implementation. (see footnote 2) It is estimated that there would be a total monetized benefit of CAD 2.20 million associated with the IAPI initiative, resulting from the prevention of inadmissible travellers arriving at air PoE. This number is relatively small in comparison with the total costs; however, this represents a conservative estimate in light of data limitations and the inability to accurately monetize all of the savings that would be achieved as a result of fewer inadmissible travellers to be processed at airports. The major benefit of IAPI is greater confidence in the integrity of the immigration/border controls applied throughout the travel continuum to screen and assess the risk of travellers entering Canada. This will be broadly shared among air travellers coming to Canada, the commercial air carriers, the GoC, and the Canadian population through the benefit of increased national security. “One-for-One” Rule and small business lens: The “One-for-One” Rule applies to this proposal, and the related administrative costs imposed by these amendments are considered an “IN” under this Rule. The total annualized average administrative costs are estimated at CAD 2,517,608 and approximately CAD 34,022 per business. The small business lens also applies. The average total costs (present value) per small air carrier are estimated at CAD 26,380 (or CAD 3,760 annualized). While the flexible option assessed for this proposal was not recommended due to concerns for the safety and security of Canadians, in order to assist small businesses with administrative and compliance costs, the initial option for IAPI implementation is flexible for all commercial air carriers (regardless of size) since it provides two low or no additional cost alternatives to using the “direct-connect” type of data transmission method. Domestic and international coordination and cooperation: The proposed amendments support perimeter security initiatives under the Canada–United States declaration entitled Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness. Both countries have acknowledged a shared responsibility concerning those entering the perimeter and the need to have a common approach to screening travellers. Background The Canada Border Services Agency (CBSA) is responsible for providing integrated border services that support national security and public safety priorities and facilitate the free flow of persons and goods that meet all requirements under the legislation administered or enforced by the CBSA. The Customs Act and the Immigration and Refugee Protection Act (IRPA) are important pieces of legislation administered and enforced by the CBSA. The administration and enforcement of the Customs Act is largely the responsibility of the Minister of Public Safety and Emergency Preparedness. Although the Minister of Immigration, Refugees and Citizenship Canada (IRCC) is given general responsibility for the IRPA, the Minister of Public Safety and Emergency Preparedness has policy authority over enforcement of the Act, and also for conducting examinations at ports of entry (PoE). The CBSA is responsible for administering and enforcing Canada’s border-related legislation, including immigration enforcement within Canada. Global context Internationally, an increasing number of jurisdictions require air carriers to provide information on all passengers and crew who intend to travel to their territory. The required data elements are collected and transmitted to border control agencies, usually via an electronic communications system. Some border control agencies, such as those of the United States, Australia and the United Kingdom, have evolved to an interactive system, whereby an interchange of electronic messaging occurs between the border control authority and the air carrier. This type of system provides various responses such as “board/no-board,” “red light / green light system” and “authority to carry.” Increased threats to global security have led to increased cooperation among jurisdictions in recognition of the necessity and importance of the use of reservation information, also known as passenger name record (PNR) data, in the fight against terrorism and serious transnational crime. (see footnote 3) Earlier transmission of PNR data has been adopted as a way to address the pressures brought by the growth of global air passenger traffic, namely to facilitate faster clearance of legitimate international passengers and reduce examination time upon arrival. Overseas screening Canada currently uses a variety of controls throughout the travel continuum to screen and assess the risk of travellers and their goods entering the country. These controls have evolved over time in relation to changes in threats to the integrity of Canada’s immigration program, public safety and security, technological advances, and the best practices of international partners. The IRPA states that FNs seeking to come to Canada on a temporary basis must, before entering, apply to an officer for a temporary resident visa (TRV) or for any other document required by the Immigration and Refugee Protection Regulations (IRPR). However, a TRV is not required for all visitors to Canada; the IRPR exempt citizens of certain countries and other specified classes of individuals from the requirement to obtain a TRV before entering Canada. As a result, the citizens of 51 countries currently do not require a visa to enter Canada. Travellers from visa-exempt countries, excluding the U.S., represent 74% of FN travellers to Canada. Whereas FNs from visa-required countries undergo systematic overseas screening for admissibility at the time of application to enter Canada, travellers arriving from visa-exempt countries (excluding those who have applied for and received work or study permits) are only screened for admissibility upon arrival at a Canadian PoE. Advance Passenger Information/Passenger Name Record (API/PNR) IRCC provides overseas screening and issues documents prescribed by the IRPA or IRPR to travellers who are determined to be admissible to Canada and to meet the requirements of the IRPA. However, as noted above, this examination process does not apply to all travellers intending to come to Canada, meaning that a significant proportion of travellers arriving in Canada are not examined prior to their departure. All travellers must undergo examination at a PoE upon their arrival in Canada. To facilitate the examination process, the CBSA screens advance information on incoming air passengers as part of its Advance Passenger Information/Passenger Name Record (API/PNR) program. Since 2002, commercial air carriers have been required to provide the CBSA with API and, beginning in 2003, PNR data relating to all passengers on board a commercial aircraft once it is bound for Canada. API consists of a traveller’s biographic data (namely, the basic identifying information which appears in a passport), and PNR data comprises a traveller’s reservation and travel itinerary contained in a carrier’s departure control and reservation systems (e.g. payment methods, seat number, baggage information). Failure to provide accurate API/PNR information may result in an air carrier being penalized up to a maximum of $3,000 per flight. Currently, the regulations dealing with API and PNR require air carriers to submit a specific set of API data, whereas carriers are obligated to provide the CBSA with PNR data only to the extent that they already collect this information for their own business purposes. If a carrier does not collect a particular piece of data (e.g. baggage information), it is not required to provide this information to the CBSA. The API/PNR program currently allows the CBSA to screen in-bound travellers and to identify those travellers who may warrant further examination upon arrival in Canada. The role of commercial air carriers Commercial air carriers have several obligations found under sections 148 to 150 of the IRPA. For example, carriers have an obligation not to carry to Canada any person who does not have appropriate travel documents (e.g. passports, visas, permanent resident cards), as prescribed by section 259 of the IRPR. All passengers must be presented, with the proper documentation, for examination by an officer upon arrival at a Canadian PoE. Similarly, transporters must not carry to Canada a prescribed person, meaning a person belonging to a class of persons, specified in the IRPR as not allowed to enter Canada [for example, a person cannot become a temporary resident if the Minister of Immigration, Refugees and Citizenship Canada is of the opinion that such an exclusion is justified by public policy considerations pursuant to subsection 22.1(1) of the IRPA]. By working cooperatively with CBSA liaison officers overseas, air carriers are also trained to look for documents that appear to be fraudulent, playing an important role in Canada’s current ability to interdict potentially inadmissible or improperly documented travellers abroad. Ultimately, a carrier will be held responsible for ensuring that the passengers they carry to Canada are not prescribed persons and that they are properly documented. If improperly documented passengers are carried, the carrier is liable for an administration fee of up to $3,200 per improperly documented FN. Linked to this responsibility is the obligation to arrange for and/or pay for the removal from Canada of most FNs whom they have carried, or caused to be carried, to Canada who are found inadmissible upon examination at a PoE. Coordination with the United States Previously, the TRV was Canada’s only mechanism for screening, prior to their arrival in the country, FNs who intend to come to Canada on a temporary basis. In 2012–2013, the CBSA recorded over 2 500 improperly documented arrivals, including 1 750 FNs who arrived without a required TRV. In 2011, Canada and the United States agreed on a shared vision for perimeter security that was concluded in the Beyond the Border Action Plan (http://actionplan.gc.ca/en/page/bbg-tpf/beyond-border-action-plan). Canada committed to mirroring its programs with similar programs in the United States that pre-screen travellers and advise air carriers of the status of passengers and travel documents. This led to the development of two initiatives: the new electronic Travel Authorization (eTA) [http://www.cic.gc.ca/english/visit/eta.asp], led by IRCC, which is designed to improve the pre-departure screening of all visa-exempt FNs, other than citizens of the United States and other exemptions indicated in the IRPR; and the Interactive Advance Passenger Information (IAPI) initiative, led by the CBSA, which will serve as a pre-departure screening tool to assist air carriers in their obligations under paragraph 148(1)(a) of the IRPA by providing carriers with information concerning passengers intending to travel to Canada. IAPI will be used to determine whether Canada-bound travellers hold the appropriate documentation to enter Canada and will provide a “board” or “no-board” message based on this information to air carriers prior to an individual boarding a flight to Canada. The regulatory amendments necessary to implement the eTA program were published in Part II of the Canada Gazette on April 22, 2015 (Vol. 149, No. 8). Under the eTA program, as of March 15, 2016, all visa-exempt FNs, with the exception of U.S. citizens and other exemptions indicated in the IRPR, will be required to hold a valid eTA when seeking to enter Canada by air. Prior to travel to Canada, eTA applicants will be required to apply online, through the IRCC Web site, by entering biographic, passport and background information similar to the personal information that is currently collected by an officer at a PoE in Canada. IRCC will use the eTA applicant’s information to make an admissibility determination using the criteria set out in the IRPA. The purpose of the current API/PNR program is to provide officers with electronic pre-arrival passenger information, so that they are equipped with the right information in a timely fashion to identify potential security threats before travellers arrive in Canada. The IAPI initiative builds on Canada’s existing API/PNR program by allowing the GoC to obtain passenger information earlier in the travel continuum, thus pushing the border out, by providing the CBSA with more time to screen incoming travellers for potential inadmissibility concerns and those failing to comply with Canada’s immigration laws. Moreover, the IAPI initiative serves as a validation mechanism for the eTA, by rendering it a “visible” document for air carriers. In addition to providing a means of confirming the eTA, IAPI capability can convey information relating to visa validity, helping to detect counterfeit and/or cancelled visas. This will assist the carrier in making decisions concerning whether a passenger should be allowed to board a plane to Canada. As other travellers in violation of the IRPA are also found inadmissible at Canadian airports and must be returned to their point of departure, one of the important advantages of IAPI is that it will also screen those FNs who are exempt from the requirement to hold a TRV (i.e. those required in the future to hold an eTA). While most cases of inadmissibility are discovered upon examination of the traveller at a PoE, there are often cases where a traveller’s inadmissibility is based on information that was known prior to the passenger’s arrival in Canada. Those “known to be inadmissible” in this context include individuals who are subject to an enforced removal order (i.e. exclusion or deportation orders) and who are required to obtain an authorization to return to Canada (ARC) but have not done so, and individuals who are the subject of a ministerial declaration deeming them inadmissible to Canada for public policy reasons pursuant to subsection 22.1(1) of the IRPA (hereinafter a “section 22.1 declaration”). Although they represent a small portion of overall passenger volume, such occurrences can cause significant expenses, delays and inconvenience for international travellers, air carriers and the GoC. Together, the eTA and IAPI initiatives will strengthen Canada’s approach to screening travellers and further align U.S. and Canadian risk assessment procedures. Issues Limitations associated with the current regulatory regime governing transporter obligations and the CBSA’s screening processes create potential immigration integrity, public safety and national security concerns for the GoC. Immigration integrity and public safety The GoC currently has a limited capacity to identify, prior to their departure for Canada, FNs known to be inadmissible to Canada. Dealing with FNs who are known to be inadmissible once they arrive at a PoE, as opposed to preventing their arrival in the first place, is inefficient for the CBSA and for commercial transporters, and hinders the free flow of legitimate travellers into Canada. Officers must interview the traveller, make a determination of inadmissibility, and complete the required documentation. All of this takes time and resources that could otherwise be utilized to scrutinize other travellers of unknown risk. Air carriers may then be responsible for costs associated with returning inadmissible FNs to their point of departure, as well as medical costs where situations arise on arrival. Travellers who have previously been found inadmissible under the IRPA could represent public safety threats should they gain re-entry to Canada. For example, FNs previously deported due to violent weapons-related offenses, but who are citizens of countries not subject to visa requirements, can board flights to Canada and, upon arrival, are identified as inadmissible at a PoE. According to paragraph 148(1)(a) of the IRPA, transporters have an obligation not to carry to Canada persons who do not hold prescribed documents or those persons who are prescribed. Prescribed documents are listed in section 259 of the IRPR, while prescribed persons are listed in section 258.1. Canada’s new eTA, issued by IRCC, will not appear in a traveller’s passport, and therefore, cannot be verified by air carriers before a traveller boards a flight to Canada. The GoC currently has no means to systematically provide this information to an air carrier prior to a flight’s departure for Canada. National security CBSA targeting officers are afforded limited time frames to perform their analyses before travellers arrive in Canada, including any required coordination with intelligence officers and law enforcement partners. This coordination process can often take time, which is not always available when PNR is only received upon departure and a flight is of short duration. Sufficient advance warning of a high-risk traveller’s impending arrival at a PoE will allow the CBSA’s targeting program to put appropriate resources in place to take necessary action upon passenger arrival at PoE, such as meeting and escorting these travellers safely off the aircraft for secondary examination when such action is deemed necessary and appropriate. This is congruent with the work currently being performed by the program; the IAPI initiative will, therefore, allow the CBSA’s National Targeting Centre (NTC) to receive pre-departure PNR data (e.g. requiring transmission of PNR data earlier in the travel continuum) to further assist it in fulfilling its mandate. Objectives The IAPI initiative introduces regulatory amendments which will serve to strengthen Canada’s immigration program, thereby benefitting public safety and national security, as well as establishing a basis for future priorities in these areas. Immigration integrity and public safety The regulatory amendments will modernize the regulatory regime underpinning the legal obligations imposed on commercial transporters in the air mode by accounting for electronic transmission and validation of information, and by updating the regulations to reflect what constitutes an acceptable removal arrangement with clear and current language. At the same time, these amendments provide the CBSA with the authority to introduce a systematic mechanism to screen travellers and relay the status of required travel documents, including the existence of a valid eTA, typically within seconds or minutes, to air carriers prior to a commercial flight’s departure for Canada. This information will contribute to reducing the administrative and financial burden on the GoC and commercial air transporters associated with removing from Canada FNs whose incorrect or incomplete travel documents (such as the lack of an eTA) could have been detected by the air carrier and the CBSA prior to the departure of the flight to Canada. The identification, in advance, of travellers who are known to present admissibility concerns and communicating this fact to air carriers via “no-board” messages can minimize or even prevent the carriage of these travellers to Canada. National security The regulatory amendments will permit the CBSA to obtain API and PNR data earlier in the travel continuum, thereby increasing the effectiveness of CBSA air mode targeting and intelligence activities by allowing additional time to address any potential high-risk travellers. The regulatory amendments related to pre-departure PNR will come into force at a later date than those with respect to API. Therefore, although there will be national security benefits realized by the IAPI initiative, many of these benefits will be realized at a later date. Description Regulatory amendments in support of the IAPI program The regulatory framework underpinning the CBSA’s current API/PNR program comprises four sets of regulations made under the authority of the Customs Act and the IRPA. The regulatory amendments have been made pursuant to subsections 8.1(8), 107.1(1) and 109.1(3), and paragraphs 164(i) and (j) of the Customs Act, and to subsection 5(1) and sections 150 and 150.1 of the IRPA. The IAPI regulatory proposal amends the following four sets of regulations. Regulations made under the Customs Act: 1. Passenger Information (Customs) Regulations; and 2. Designated Provisions (Customs) Regulations. Regulations made under the IRPA: 3. Immigration and Refugee Protection Regulations; and 4. Protection of Passenger Information Regulations. The amendments to these regulations are described below. An explanation of how the various amendments interact to make up the IAPI program follows the description of the amendments specific to each set of regulations. Notes The obligations arising from the regulatory amendments described below, in many cases, apply to all commercial transporters in all modes of travel, but will, for the present time, only be enforced in the air mode until such time as the GoC decides to enforce these obligations for commercial transporters in other modes of travel (marine, rail, highway). Given the differences inherent in other modes of transportation, the GoC would propose mode-specific regulations regarding transmissions time frames etc., before requiring commercial transporters in non-air modes to begin providing API and PNR data to the CBSA. For the purposes of this section, the description of messages as “board” and “no-board” will serve to illustrate the decision points. The actual messages to be transmitted to the air carriers will be in a code format. 1. Passenger Information (Customs) Regulations (PICR) Pursuant to section 107.1 of the Customs Act, the Minister may require that prescribed information be provided about any person on board or expected to be on board a conveyance within the prescribed time and in the prescribed manner. However, the PICR, made under section 107.1 of the Act, only refer to specific information being provided to the CBSA for all persons on board a commercial conveyance at the time of departure [emphasis added]. Under the current API/PNR program, commercial air carriers provide the CBSA with API/PNR data beginning at the time of departure. The CBSA is therefore currently unable to legally compel commercial air carriers to provide passenger information prior to a flight’s departure for Canada. The IAPI initiative is predicated on the idea that the CBSA will receive API data from air carriers in advance of departure, which will provide the CBSA sufficient time to alert air carriers of the fact that passengers may be prescribed persons or may not hold prescribed documents. The amendments to the PICR serve to align the language of subsection 107.1(1) of the Customs Act, which provides for the transmission of information about any person on board or expected to be on board [emphasis added] a conveyance, to the regulations. This alignment will permit the provision of this information to the CBSA earlier in the travel continuum. Under the IAPI initiative, therefore, the CBSA will have a legal basis to require that air carriers provide the advance passenger information prior to the departure of passengers for Canada, rather than upon departure of the aircraft. The amendments to the PICR also amend or add definitions, including those for “reservation system,” “crew member,” and “time of departure,” applicable to commercial conveyances. Additionally, the amendments prescribe the circumstances and the conditions under which the regulations would apply (i.e. a commercial transporter expected to arrive in Canada), and specify the classes of persons to whom the regulations will apply (i.e. commercial carriers and charterers that undertake to carry persons or goods to Canada). The amendments related to API in the PICR specify that air carriers submit passenger API data to the CBSA “not later than the time of departure,” as well as API associated with crew members no later than one hour before the time of departure. The amendments align the API elements described in the PICR with those found at section 269 of the Immigration and Refugee Protection Regulations to the extent possible. These amendments will require commercial air carriers to transmit PNR data no later than 72 hours before the time of departure. In addition, air carriers will be required to provide updates (i.e. where new information or changes are received) no later than 24 hours before the time of departure, 8 hours before the time of departure and at the time of departure. The PNR elements that air carriers are required to transmit to the CBSA, where already collected, are set out in the proposed Schedule to the PICR. Until the proposed amendments related to pre-departure PNR come into force, air carriers will continue to be obligated to provide PNR data at “the time of departure.” The amendments specify that air carriers must now provide flight header information when providing both new and updated API and PNR data (on each person carried or expected to be carried) to the CBSA. Flight header information includes the following data elements: Date and time of departure; Location of the last point of embarkation prior to arriving in Canada; Date and time of arrival; Location of the first point of debarkation in Canada; and Commercial air carrier flight code. The inclusion of flight header information is necessary to ensure that passengers are associated with the correct flight (via the close-out message, described below), and to ensure that “board/no-board” messages are provided to air carriers for each passenger at the appropriate time. The amendments add the Unique Passenger Reference (UPR) associated with each traveller as a new data element that must be provided to the CBSA. The UPR will be generated by the commercial air carrier for all passengers specifically for the purpose of communication with the CBSA. The “board/no-board” message is attached to the UPR, rather than the traveller’s name, for privacy reasons. This reference is primarily used for passengers; however, the UPR may also be assigned to crew members in cases where they are reported as passengers by the air carrier. The PICR amendments also now require air carriers to provide a close-out message for each flight no later than 30 minutes after the time of departure. This message will indicate the UPR of all the passengers actually on board the flight and will associate the passengers on board the flight to the flight header elements described above. This will permit the CBSA to link each passenger to the flight on which they are arriving to Canada. The amendments also obligate air carriers to notify the CBSA when they become aware of any new or corrected information. Section 164.1 of the Customs Act provides that regulations made under the Act “may incorporate by reference any material, regardless of its source, either as it exists on a particular date or as amended from time to time.” The amendments will incorporate by ambulatory reference (i.e. as amended from time to time) the CBSA Carrier Messaging Requirements (CMR) document into the PICR. The CMR sets out the technical requirements, specifications and procedures required to interact with CBSA’s system. Incorporating the CMR into the PICR means that information prescribed by the PICR must be transmitted to the CBSA in accordance with the technical requirements, specifications and procedures set out in the CMR. It should be noted that the CMR will be republished annually, and will be publicly distributed to allow reasonable time for impacted clients to review and incorporate any changes related to the technical requirements, specifications and procedures prior to the enforcement of any new system requirements. All PICR regulatory amendments related to pre-departure API will come into force on the day on which they are registered. All PICR regulatory amendments related to pre-departure PNR will come into force at a later date set by regulatory amendment, based on considerations such as ratification of the Canada-EU PNR Agreement or, if deemed necessary, national security interests. 2. Designated Provisions (Customs) Regulations (DPCR) The DPCR designates various provisions of the Customs Act and regulations made under the Customs Act. If a provision designated by the DPCR is violated, the CBSA may issue an administrative monetary penalty (AMP) to the offender. Item 50 of Schedule 1, Part 1, to the DPCR designates section 107.1 of the Customs Act: “Failing to provide, or provide access to, prescribed information about any person on board a conveyance in advance of, or within a reasonable time after, the arrival of the conveyance in Canada.” In 2012, the provision on passenger information in subsection 107.1(1) of the Customs Act was amended to include information about “any person on board or expected to be on board a conveyance” [emphasis added]. Item 50 of Schedule 1 to the DPCR references section 107.1, but still employs the more limited wording “any person on board,” which was used in the Customs Act prior to the 2012 amendments. The amendments serve to align the wording of the DPCR with that of subsection 107.1(1) of the Customs Act and therefore permit the CBSA to issue AMPs for failure to provide advance information according to the new IAPI transmission time frames (reflected in the amendments to the PICR described above). All DPCR regulatory amendments related to predeparture API will come into force on the day on which they are registered. All DPCR regulatory amendments related to pre-departure PNR will be enacted at a later date by regulatory amendment, based on considerations such as ratification of the Canada-EU PNR Agreement or, if deemed necessary, national security interests. 3. Immigration and Refugee Protection Regulations (IRPR) The IRPR are quite extensive and cover all aspects of temporary and permanent residence in Canada, from applying to visit or immigrate to being removed for various reasons. Part 17 of the IRPR (sections 258.1 to 287) describes the obligations transporters have with respect to the travellers they carry to Canada and to their crew. Among other things, Part 17 sets out who should not be carried to Canada (prescribed persons) and the documents that must be held by travellers coming to Canada (prescribed documents). Part 17 also provides that the CBSA may levy an administration fee against a carrier in the event the carrier fails to meet its transporter obligations under Part 17. The regulatory scope of IAPI expands on the current API/PNR program, and some amendments to existing provisions have been made to reflect the evolution of CBSA business processes and to clarify existing and new obligations (e.g. the class of transporters to which they apply). Certain consequential and housekeeping changes indicated below have been included to ensure that the language of existing provisions is consistent with the new provisions being introduced. The changes to the IRPR will amend various definitions, such as “administration fee,” “agent” and “transporter”, to better reflect the operational reality of the IAPI initiative, and the impact this initiative will have on the overall transporter obligation regime described in Part 17 of the IRPR. It should be noted that some provisions apply to the general class of transporters and other provisions are limited to commercial transporters. According to paragraph 148(1)(a) of the IRPA, a transporter is prohibited from carrying to Canada a person who is prescribed or does not hold the prescribed documents. Prescribed persons are identified in section 258.1 of the IRPR; prescribed documents are identified in section 259 of the IRPR. Currently, the only persons prescribed by section 258.1 of the IRPR are FNs who are the subject of a declaration under section 22.1 by the Minister of Immigration, Refugees and Citizenship. The amendments will add FNs who are required to obtain, but do not hold, an ARC as a new class of prescribed persons. Travellers who are not required to obtain an eTA (e.g. U.S. citizens), but who are subject to a deportation order or an exclusion order, are generally inadmissible to Canada without an ARC (accompanying family members who had been removed from Canada along with the inadmissible FN are excepted from this ARC requirement). All such persons seeking to enter Canada who do not have an ARC will be added to the classes of prescribed persons, regardless of the mode of travel used. In the air mode, the IAPI initiative will enable the CBSA to send carriers a “no-board” message should such a person attempt to board a flight to Canada. At section 259 of the IRPR, the eTA will be added to the list of prescribed documents that a traveller may be required to possess before coming to Canada. This addition, as well as the addition of administration fee assessments against commercial transporters who carry FNs without eTAs, allows the CBSA to enforce the eTA requirement. Pursuant to paragraph 148(1)(c) of the IRPA, a transporter has an obligation, in accordance with the Regulations, to arrange for a medical examination and medical treatment of a person it carries to Canada, if required. Section 263 of the IRPR currently limits this obligation to apply only in respect of FNs carried if a report is prepared under subsection 44(1) of the IRPA, or to those who are members of a crew or who are entering Canada to become members of a crew. The amendments to section 263 of the IRPA provide that medical examination and treatment will apply to commercial transporters (e.g. air carriers), but not to the general class of transporters, as this class is fairly broad and encompasses international tunnel/bridge operators and designated airport authorities, among others. The administrative formality of requiring a report under section 44 of the IRPA for these obligations to come into play will be removed, thus enlarging the scope of the class of foreign nationals to whom this provision applies. However, this section will also be amended to clarify conditions under which transporters would be excluded from this obligation. Subsection 269(1) of the IRPR enumerates the data elements that make up API in the immigration context as well as other prescribed information; PNR elements are referred to in subsection 269(1)(e) of the IRPR. As a result of changing the marginal note for subsection 269(1) to “Prescribed information,” the marginal note in section 264 has been changed to “Prescribed documents.” This is consistent with the intent of the section, given that section 264 relates specifically to documents which a transporter must provide. The proposed amendments to section 269 of the IRPR will mirror the language used in section 107.1 of the Customs Act; specifically, the section will now state that advance information must be provided concerning persons who a commercial transporter “carries or expects to carry” to Canada. One additional data element will be added to the advance information prescribed by the IRPR: the unique passenger reference (UPR) associated to each passenger (the UPR is described above, under PICR). The UPR will be used by the CBSA when transmitting a “board” or a “no-board” message to a carrier, as well as when a carrier provides a “close-out message” to the CBSA. A schedule will be added to the IRPR, specifically listing PNR elements that air carriers will be required to provide to the CBSA, should they already collect them for their own business purposes. The proposed amendments to section 269 will ensure that the IRPR are consistent with the PICR to the extent possible. The amendments specify submission time frames for submission of API, crew information and the close-out message; specify submission time frames for PNR information; specify that air carriers must provide flight header information when providing API and PNR data; require transporters to submit corrections within prescribed time frames in all instances where they have knowledge of inaccurate and/or incomplete information previously submitted; and introduce the means by which information is to be transmitted to the CBSA (e.g. electronic), and the manner, as outlined in the CMR (described in the PICR section above). As with the PICR, all of the proposed regulatory amendments relating to pre-departure PNR data will come into force at a later date, based on considerations such as ratification of the new Canada-EU PNR Agreement or, if deemed necessary, national security interests. Until the proposed amendments related to pre-departure PNR data come into force, air carriers will continue to be obligated to provide PNR data at the time of departure. The amendments move the retention limits for API data from the Protection of Passenger Information Regulations (PPIR), where they are currently set, to the IRPR. These limits are identical to the current API retention limits (i.e. three and a half years) in the PPIR. However, the CBSA may retain the information if it is required as part of an active investigation for no longer than six years. As with the PICR, the IRPR will be amended to specify that the manner of submission for both API and PNR data can be found in the CMR. Such “incorporation by reference” is explicitly authorized by section 92 of the IRPA. The provision of information to the transporter (i.e. the “board/no-board” message) by the CBSA is a new activity, and the amendments to the IRPR therefore add a new section 270, which specifically authorizes the CBSA to provide information to commercial transporters to the effect that a passenger may be a prescribed person, or that he or she may not hold the prescribed documents. Despite receiving a “board/no-board” message, transporters remain responsible for ensuring that any traveller who is boarded holds the prescribed document (i.e. even if the transporter gets a “board” message for a traveller who requires a visa, the transporter still has to ensure that the traveller is in possession of the visa counterfoil). The amendments also eliminate the current requirement found at section 279 of the IRPR that an officer must prepare a report, pursuant to subsection 44(1) of the IRPA (i.e. an inadmissibility “section 44” report), in order for the CBSA to assess an administration fee against the transporter who carried the subject of the report to Canada. This amendment addresses the fact that the GoC carries processing costs when an inadmissible foreign national is carried to Canada without the required documentation, whether or not such a report is prepared, even in the event that an inadmissible FN is allowed to withdraw their application to enter Canada pursuant to section 42 of the IRPR or is issued a temporary resident permit (TRP) pursuant to subsection 24(1) of the IRPA. In parallel with the elimination of the requirement that a report under section 44 of the IRPA be prepared before fees are assessed, modifications to subsection 279(2) of the IRPR serve to consolidate existing fee exemptions and ensure that an administration fee will not be assessed against a commercial transporter in certain circumstances arising from the proposed new classes under sections 258.1 and 259 of the IRPR. As the IAPI initiative will assist air carriers by alerting them to those individuals who would likely present concerns if carried to Canada, compliance with respect to the document requirement provisions under paragraph 148(1)(a) of the IRPA and section 259 of the IRPR should be less onerous. Although officers will retain their discretion to facilitate the entry or onward travel of inadmissible persons, as appropriate, commercial transporters will now be subject to an administration fee in instances where air carriers will have been made aware, through IAPI, that these persons may not hold the required documents. These amendments allow the IAPI program to be fully integrated into the existing compliance regime. The IRPR is also being amended to prevent the assessment of administration fees in certain cases where the CBSA fails to transmit “no-board” information to carriers prior to a flight’s departure for Canada and where an FN arrives in Canada with valid physical travel documents (such as a valid passport), but fails to possess the required eTA. The air carrier still has an obligation to check to ensure that a traveller holds valid physical documents; however, as the eTA is an electronic document, commercial air carriers cannot be held responsible for boarding a passenger who does not possess an eTA if the CBSA fails to provide them with this information. These changes are therefore put into place to account for potential CBSA system outages. Commercial transporters continue to have the opportunity to file a submission (an appeal) with respect to any administration fee assessment that they deem to be incorrect. Submissions procedures are also amended to reflect system outages. 4. Protection of Passenger Information Regulations (PPIR) These Regulations, made under the authority of the IRPA, codify into Canadian law commitments made by Canada to the European Union (EU) in 2006 with regard to the use, disclosure, and retention of API and PNR data. The commitments were part of an agreement that came into force in 2006, whereby a range of data protection measures were established. Though the agreement expired in 2009, the protections, now in the PPIR, continue to apply to data collected by all international carriers with routes operating to Canada. The amendments to the PPIR will continue to provide for the use, disclosure and retention of PNR information, whereas the retention pertaining to the use of API will now be found in the IRPR. Consequently, no references to API data will remain in the PPIR, thereby expanding the uses available for API data to include immigration control as governed by the IRPA. These PPIR amendments give the CBSA the flexibility to modernize the use of PNR for targeting purposes while not conflicting with the commitments made to the EU in the previous API/PNR Agreement, or the signed, but not yet ratified, Canada-EU PNR Agreement. The use of PNR data will still be limited to identifying persons who have or may have committed a terrorism offence or serious transnational crime. As the amendments to the PPIR are not impacted by the issues that prompted the European Parliament (EP) to refer the Canada-EU PNR Agreement to the European Court of Justice (ECJ), thus delaying its ratification, these regulatory amendments will come into force upon registration. Finally, the amendments to the PPIR also include various new definitions, including those of “serious transnational crime” and “terrorism offence,” in order to satisfy concerns raised by the Standing Joint Committee for the Scrutiny of Regulations. These definitions are compatible with the text of the signed PNR Agreement. All PPIR regulatory amendments will come into force upon registration. How IAPI will work in practice Modern border control processes increasingly rely on obtaining secure electronic data from commercial air carriers at an earlier stage in the travel continuum. Commercial air carriers are currently required to provide API/PNR information to the CBSA when a flight departs for Canada. The introduction of IAPI allows the CBSA to obtain this information earlier in the travel continuum; PNR will be provided not later than 72 hours prior to a flight’s scheduled time of departure, while full API will be provided when a passenger checks in for the flight. API can be provided earlier, but it may be incomplete prior to check-in. Every traveller scheduled to be carried to Canada by air via a commercial flight is within the scope of the IAPI program, including U.S. citizens and returning Canadians. Transmission of API data Each traveller’s (i.e. commercial air passengers) API information will be collected and transmitted to the CBSA by the air carrier at check-in, which normally begins 24 hours in advance of the scheduled time of departure. Crew API is required to be submitted not later than one hour prior to departure. After the initial transmission of a traveller’s API data, commercial air carriers are now required to send any new or updated information to the CBSA if any changes or additions are made to a traveller’s API prior to the flight’s departure. Use of API data The CBSA currently queries IRCC’s enforcement and immigration databases when a traveller arrives at the primary inspection line (PIL). This practice will not change under the IAPI initiative; however, under IAPI, the CBSA will be querying these databases earlier in the travel continuum. API data will be used to provide commercial transporters with information to assist them in determining whether the FN they are about to carry to Canada is, or may be, a “prescribed person,” or whether the FN holds the required eTA or TRV needed to enter Canada. Admissibility will continue to be determined by CBSA officers upon an examination at the PoE. API data will also be used to query the Lost, Stolen or Fraudulent Document (LSFD) database for an exact Canadian passport number match. Establishing whether the traveller holds prescribed documents Prescribed documents can be divided into two categories: those visible to the transporter (e.g. visa counterfoils) and electronic documents (e.g. the eTA). Electronic documents are not physical documents; therefore, the interactive messaging system introduced by IAPI will serve to make the eTA “visible” to the transporter. FNs may be required to obtain an ARC and/or a TRP before they are able to obtain the eTA or the visa counterfoil needed for entry into Canada. An ARC is required by FNs seeking to return to Canada who have been previously removed from Canada and who are barred from returning under section 52 of the IRPA. On receipt of a traveller’s API, the IAPI system will run an automated query to determine whether the traveller is exempt from having a prescribed document, or does not require one. Those exempt from the requirement to present prescribed documents include Canadian citizens, Canadian permanent residents, Status Indians, and U.S. citizens (U.S. permanent residents require an eTA, which is linked to a passport electronically). Canadian passports will automatically generate a “board” message, unless the passport has been reported lost, stolen or fraudulent. For those travellers who are not exempt from prescribed travel document requirements, the IAPI initiative will run an automated query to determine whether the traveller has a prescribed document on file. IAPI will validate that the documents presented by FNs are those prescribed by section 259 of the IRPR for travel into Canada, such as a valid passport, permanent resident card, or temporary resident visa. The IAPI initiative uses the travel document number and country or entity of issuance associated with that document to query IRCC’s immigration database and relay the status (e.g. valid, revoked, expired) of travel documents (i.e. eTA or TRV) required by that traveller. In the case of the eTA, which is an electronic authorization with no corresponding physical document, this step serves to effectively validate the authorization. Transporters still have an obligation to ensure that travellers requiring a visa are in possession of the visa counterfoil. This will apply even in cases where the transporter receives a “board” message for the travellers, provided that the FN is presented with other prescribed documents (as per section 259 of the IRPR). For example, a British national would have to be presented for examination possessing a valid, unexpired passport. Based on results of this automated vetting process, either a “board” or “no-board” message will be sent to the commercial air carrier. This interactive step does not apply to crew. The IAPI system will receive crew information up to one hour before departure and will process it in a “non-interactive” manner, meaning that a “board/no-board” message will not be issued for crew members. In the unlikely event that a crew member is inadmissible due to the fact that the individual requires an ARC or is the subject of a section 22.1 declaration, the targeting officer would generate a target on the crew member in order to flag that the person should be referred to CBSA secondary for processing. Commercial air carriers will use the “board/no-board” information to determine whether they should allow a passenger to board the flight in question. FNs who do not have an appropriate prescribed document to travel to Canada will be directed to IRCC’s Web site for further information. Travellers submitting a Canadian passport that has been reported in the LSFD database will be instructed to contact the consular section of the nearest Canadian embassy/mission for assistance, as is the current process today. It is important to note that in cases where the CBSA is unable to notify the air carrier that the FN is lacking a valid eTA due to a CBSA system outage, no administration fees will be assessed, on the condition that the FN holds other prescribed documents and meets other requirements as prescribed by the IRPR under the IRPA. Establishing whether the traveller is a prescribed person The API data of every FN traveller (this includes U.S. citizens and other exempted FN travellers) who is the subject of an automated “board” message, as well as crew, will be subject to a second automated query using name-matching technology to verify whether the traveller is the subject of a section 22.1 declaration and does not hold a valid TRP or is the subject of a removal order and does not have an overriding ARC. All travellers who receive a match (close or exact name match) to a record for a prescribed person will then undergo a manual review by a CBSA targeting officer. The CBSA targeting officer will review the traveller’s API and immigration record to determine whether the traveller is, in fact, the same person as the one who is the subject of the declaration or removal order. The targeting officer will then review the file to ensure that the traveller does not have an ARC or TRP that overrides the removal order or declaration. If the traveller is the subject of a declaration or a removal order, but does not have an ARC or a TRP, the targeting officer will transmit a “no-board” message for that individual to the air carrier. In cases where the manual review by the targeting officer determines that the match was a false hit, no further action will be taken, and the original automated “board” message would stand. Transmission of PNR data PNR data will be transmitted electronically to the CBSA by the commercial air carrier (“pushed”) not later than 72 hours prior to the scheduled time of departure. In all cases where there are updates to any of the submitted PNR data elements, carriers will be required to push all PNR data again within one of three additional time frames: if the addition or change occurs more than 24 hours before the time of departure, not later than 24 hours before the time of departure; if the addition or change occurs during a period beginning 24 hours before the time of departure and ending 8 hours before that time, not later than 8 hours before the time of departure; and if the addition or change occurs less than 8 hours before the time of departure, not later than the time of departure. Use of PNR data The PNR data elements, if sent by a commercial air carrier, will not be used as the basis of a “board” or “no-board” message, but will continue to be used as a screening tool to help the CBSA identify travellers who might warrant additional scrutiny upon their arrival at a Canadian PoE. The regulatory amendments related to pre-departure PNR in the PICR and the IRPR will come into force at a later date, based on considerations such as the ratification of the Canada-European Union PNR agreement or, if deemed necessary, national security interests. Until the amendments related to pre-departure PNR are brought into force, the existing regulatory requirements relating to PNR within these two regulations remain in force. The PPIR amendments will come into force immediately upon registration. Integrated Primary Inspection Line upgrade The Integrated Primary Inspection Line (IPIL) system is an automated support tool used by front line CBSA officers at major ports of entry, enhancing their ability to query travellers as they present themselves at the Primary Inspection Line (PIL). The system is currently implemented at 59 sites, which include all major airports (IPIL Air), as well as selected locations in other modes of transport. Two databases are searched when a query is performed at the PIL. The results assist the officers in their decision whether to “refer” the traveller for further processing, or to “release” the traveller from further customs or immigration processing. IPIL Air is being upgraded in order to allow the system to notify an officer as to the travel document status of the arriving traveller. Namely, travellers who are exempted from obtaining a prescribed travel document (i.e. Canadian citizens, Canadian Permanent Residents, U.S. citizens, members of a crew); and travellers who require a prescribed IRPR travel document to enter Canada under the IRPA. The IPIL application will now notify the officer of any traveller who requires an eTA, but who has not obtained one by displaying a message, such as “no eTA on file.” This upgrade is essential to support the timely processing of travellers at airports of entry after the eTA becomes a mandatory travel document on March 15, 2016. Regulatory and non-regulatory options considered According to both the Customs Act and the IRPA, the Governor in Council has the authority to make regulations for the purposes of, and with respect to, the matters being addressed by the proposed regulations. The regulatory amendments described here are necessary to implement the IAPI initiative and to ensure that the public safety, immigration integrity, and national security issues identified above are addressed. In addition, these amendments ensure that the CBSA will have the proper tools to effectively screen and process all travellers coming to Canada by commercial air carrier. The current API/PNR program is set out in regulations. Therefore, any changes to the current requirements, particularly those that will increase the reporting requirements of commercial air carriers, must also be set out in regulations. Implementing IAPI-related requirements as an administrative policy, as opposed to codifying them in regulations, would put the CBSA in a position where it is introducing policy requirements more stringent than those required by law. Moreover, as carriers would not be legally required to provide API and PNR data to the CBSA about all travellers expected to be on board a commercial flight, the CBSA would have limited options for enforcing the IAPI requirements and, consequently, for serving as the enforcement mechanism for other GoC initiatives, such as the eTA. Benefits and costs A cost-benefit analysis (CBA) for the proposed IAPI regulatory amendments has been completed, covering a 10-year period from 2015–2016 (the year most of the regulatory amendments would come into force) to 2024–2025 (the 10th year of the full implementation). Based on a preliminary analysis, the IAPI initiative was assessed to have a medium level of cost impact (between $10 million and $100 million in present value). As a result, the CBA followed Treasury Board of Canada Secretariat (TBS) guidelines for medium-impact initiatives, which require that all costs, and those benefits where data are easily available, be monetized and present; and all non-measurable benefits be analyzed qualitatively. The costs associated with the proposed regulatory amendments for the implementation of the IAPI initiative for commercial flights are based on government estimates and estimates from a literature review on similar regulations in other countries, as industry estimates from commercial air carriers were not available. The cost of implementing the IAPI initiative amounts to CAD 75,090,000 in present value or CAD 10,691,000 in annualized value, over the first 10 years of implementation. (see footnote 4) Of this total, CAD 46.06 million will be carried by the CBSA to develop and maintain information technology (IT) systems for IAPI, and to allocate resources for activities associated with policy and program support and targeting activities. The other CAD 29.03 million will be carried by the commercial air industry to update their systems and transmission capability, to train their staff and implement the necessary business processes to comply with the regulations and serve their clients. All of the costs and benefits described below are monetized (i.e. estimated in terms of dollar value) in the cost-benefit analysis that was prepared to support the IAPI initiative. Identification and description of costs and benefits for businesses The IAPI initiative effectively represents an expansion and enhancement of the CBSA’s current API/PNR program. Therefore, the costs to commercial air carriers represent incremental costs to improve and enhance systems already in place to provide API and PNR data to the CBSA as per existing program requirements. One of the major costs to the commercial air industry will be the establishment of IT capability to transmit API data according to the new IAPI parameters and to receive “board/no-board” messages interactively. Air carriers have different options for complying with these data communication requirements. Air carriers can transmit and receive the data utilizing either their own systems or the infrastructure of third-party service providers, via a direct connection to the CBSA system through the Message Queue (MQ) Network; the Interactive API Gateway (IAG); or email transmission of passenger manifests directly to the CBSA through a secure Web connection. On average, it is estimated that commercial air carriers could invest more than CAD 790,000 to develop or update a direct connection system, or they could opt to transmit using third-party service provider infrastructure at an estimated cost of CAD 0.06 to CAD 0.07 per transmission. In the cost-benefit analysis, the transmission choice of an air carrier is assumed to be the same as the option the carrier is currently utilizing to transmit its API/PNR data. These costs add up to CAD 27.10 million over the first 10 years for the commercial air industry. Other costs to the air carriers, totalling CAD 1.93 million over the first 10 years, include employee training and human resources required to handle passengers with “no-board” messages. The estimates of these costs are based on an employee’s time and wage. An hourly wage rate of CAD 22.46 was used for this analysis. (see footnote 5) Receiving “board/no-board” messages from the CBSA will provide commercial air carriers with additional information to assist them in fulfilling their obligation not to transport prescribed persons or persons lacking prescribed documents to Canada. This would reduce carriers’ exposure to administration fees assessed by the CBSA for failing to meet these obligations, which can be as high as CAD 3,200 per traveller. The additional information made available to commercial air carriers via IAPI therefore represents a measurable benefit to carriers if IAPI contributes to a significant reduction of the number of administration fees assessed against carriers. Identification and description of costs and benefits for the CBSA and the Government of Canada Government cost estimates of CAD 46.06 million comprise mainly the development and maintenance of an IT system capable of receiving API data from the commercial air carriers, querying various databases and issuing “board” and “no-board” messages to the air carriers interactively. The IT system will need to receive and process PNR data more frequently at the intervals prescribed by the regulatory amendments. Resources will also be required for various policy and program areas to support targeting activities, handle policy and program queries from the air carriers, evaluate performance of the initiative and monitor client compliance. The implementation of IAPI is expected to increase the CBSA’s ability to identify prescribed persons or improperly documented travellers prior to their departure for Canada, and to facilitate the examination of all arrivals for entry into Canada. It should be noted that there are data limitations on estimating the amount of resources expended on inadmissible cases at secondary examination at airports. Thus, for the CBA analysis, a conservative approach was taken; however, it should be recognized that in doing so, the analysis understates the potential benefits of this proposal. Owing to data limitations, only part of the CBSA savings that will be achieved as a result of fewer inadmissible travellers to be processed at the airports can be monetized and estimated. The value of this benefit is therefore conservatively estimated at a total of CAD 2.20 million in present value or CAD 0.31 million in annualized value. The understated benefits resulting from the IAPI initiative that can be monetized are relatively small compared to the total costs associated with the initiative. Based on the estimated human resource costs of CAD 169.43 to the CBSA for processing an inadmissible traveller at an airport of entry, the estimated costs avoided due to a portion of inadmissible travellers being prevented from boarding a plane bound for Canada are estimated to be CAD 2.20 million over the first 10 years. However, it should also be noted that it can be quite costly to remove inadmissible persons after they have gained entry to Canada (i.e. travellers who are inadmissible, but escape detection upon arrival at a PoE, and are therefore permitted to enter Canada). Removal costs generally range between CAD 1,500 and CAD 15,000 per person, but can cost as much as CAD 300,000 in certain circumstances (i.e. for a removal necessitating a chartered flight and accompaniment by a CBSA officer). While the vast majority of inadmissible travellers are likely to be interdicted upon arrival at a PoE, there are cases where inadmissible travellers nevertheless gain entry to Canada; there are potential savings to the GoC where the IAPI initiative prevents these travellers from arriving in Canada in the first place. Increased transportation and national security, immigration program integrity and compliance, as well as strengthened public safety, are the major benefits of the proposed regulatory amendments, but are not easily monetized because of the lack of available data and valid methodology. Benefits and costs Based on costs and benefits that can be monetized, the present value of the net cost of the proposed regulatory amendments has been estimated at CAD 72.89 million (CAD 10.38 million, annualized). Please note that this benefit does not include the benefit associated with the cost savings of prevented inadmissible arrivals estimated at CAD 1.8 million (annualized average) each year. These benefits are outlined in the cost accounting statement accompanying the electronic travel authorization regulatory amendments, published in the Regulations Amending the Immigration and Refugee Protection Regulations (http://gazette.gc.ca/rp-pr/p2/2015/2015-04-22/html/sor-dors77-eng.php) [SOR/2015-77 — April 1, 2015]. The following table presents the costs and benefits of the regulatory amendments that result from the implementation of the IAPI initiative. The coming-into-force date of the regulations is assumed to be FY2015–2016, upon registration. The additional pushes of PNR data that will be required upon the coming into force of the pre-departure PNR requirements are assumed, for the purposes of this exercise, to begin one year after the other proposed regulatory amendments. Present values (PVs) and annualized values were calculated based on a discount rate of 7% over a 10-year period from FY2015–2016 to FY2024–2025. Table 1: Cost-benefit statement (2012 constant Canadian dollars) This table presents the cost-benefit statement. Costs and benefits Base Year 2015–2016 Year Five 2019–2020 Final Year 2024–2025 PV Total Annualized Average A. Monetized impacts A. Monetized impacts A. Monetized impacts A. Monetized impacts A. Monetized impacts A. Monetized impacts Costs Costs Costs Costs Costs Costs Government Government Government Government Government Government Salary 8,052,000 2,590,000 2,590,000 24,601,000 3,503,000 Operating and maintenance (O and M) 8,369,000 622,000 622,000 13,341,000 1,899,000 Employee benefit plan 1,610,000 518,000 518,000 4,920,000 701,000 Accommodation 1,047,000 337,000 337,000 3,198,000 455,000 Government subtotal 19,078,000 4,067,000 4,067,000 46,060,000 6,558,000 Commercial air carriers Commercial air carriers Commercial air carriers Commercial air carriers Commercial air carriers Commercial air carriers IT system updates 7,368,000 0 0 7,368,000 1,049,000 Transmission 224,000 3,114,000 3,610,000 19,732,000 2,809,000 Training 1,685,000 0 0 1,685,000 240,000 Handling no-boards 1,000 37,000 43,000 245,000 35,000 Air carriers subtotal 9,278,000 3,151,000 3,653,000 29,030,000 4,133,000 Total costs 28,356,000 7,218,000 7,720,000 75,090,000 10,691,000 Benefits Benefits Benefits Benefits Benefits Benefits Government Government Government Government Government Government Prevented inadmissible arrivals 26,000 351,000 407,000 2,202,000 314,000 Total benefits 26,000 351,000 407,000 2,202,000 314,000 Net cost Net cost Net cost Net cost 72,888,000 10,377,000 B. Qualitative impacts B. Qualitative impacts B. Qualitative impacts B. Qualitative impacts B. Qualitative impacts B. Qualitative impacts Benefits Benefits Benefits Benefits Benefits Benefits Canadian public Increased national security and public safety Lower national security risk by reducing the probability of individuals known to present admissibility concerns from arriving at PoE via the air mode and instigating terror attacks or conducting illicit activities on Canadian soil. (Increased security for commercial air carriers could potentially increase risk in other modes of transport, thereby offsetting a portion of the national security benefit.) Facilitation of admissible travellers Identifying and preventing known inadmissible and improperly documented travellers from boarding flights to Canada and identifying travellers who may present admissibility concerns before arrival inland allows for more efficient primary and secondary processing at the ports of entry. Increased national security and public safety Lower national security risk by reducing the probability of individuals known to present admissibility concerns from arriving at PoE via the air mode and instigating terror attacks or conducting illicit activities on Canadian soil. (Increased security for commercial air carriers could potentially increase risk in other modes of transport, thereby offsetting a portion of the national security benefit.) Facilitation of admissible travellers Identifying and preventing known inadmissible and improperly documented travellers from boarding flights to Canada and identifying travellers who may present admissibility concerns before arrival inland allows for more efficient primary and secondary processing at the ports of entry. Increased national security and public safety Lower national security risk by reducing the probability of individuals known to present admissibility concerns from arriving at PoE via the air mode and instigating terror attacks or conducting illicit activities on Canadian soil. (Increased security for commercial air carriers could potentially increase risk in other modes of transport, thereby offsetting a portion of the national security benefit.) Facilitation of admissible travellers Identifying and preventing known inadmissible and improperly documented travellers from boarding flights to Canada and identifying travellers who may present admissibility concerns before arrival inland allows for more efficient primary and secondary processing at the ports of entry. Increased national security and public safety Lower national security risk by reducing the probability of individuals known to present admissibility concerns from arriving at PoE via the air mode and instigating terror attacks or conducting illicit activities on Canadian soil. (Increased security for commercial air carriers could potentially increase risk in other modes of transport, thereby offsetting a portion of the national security benefit.) Facilitation of admissible travellers Identifying and preventing known inadmissible and improperly documented travellers from boarding flights to Canada and identifying travellers who may present admissibility concerns before arrival inland allows for more efficient primary and secondary processing at the ports of entry. Increased national security and public safety Lower national security risk by reducing the probability of individuals known to present admissibility concerns from arriving at PoE via the air mode and instigating terror attacks or conducting illicit activities on Canadian soil. (Increased security for commercial air carriers could potentially increase risk in other modes of transport, thereby offsetting a portion of the national security benefit.) Facilitation of admissible travellers Identifying and preventing known inadmissible and improperly documented travellers from boarding flights to Canada and identifying travellers who may present admissibility concerns before arrival inland allows for more efficient primary and secondary processing at the ports of entry. Government Facilitation of IRCC’s electronic travel authorization (eTA) initiative for air carriers The IAPI system capability to issue an automated “board/no-board” message to commercial air carriers will serve to enforce IRCC’s eTA requirement by ensuring that only eTA-required travellers holding a valid authorization will be able to fly to Canada. Better allocation of resources by the CBSA due to fewer improperly documented or prescribed persons arriving at PoEs requiring fewer detentions/removals The arrival of fewer individuals known to be improperly documented or prescribed at ports of entry will allow CBSA officers to focus efforts on screening travellers who pose an unknown level of risk. Facilitation of IRCC’s electronic travel authorization (eTA) initiative for air carriers The IAPI system capability to issue an automated “board/no-board” message to commercial air carriers will serve to enforce IRCC’s eTA requirement by ensuring that only eTA-required travellers holding a valid authorization will be able to fly to Canada. Better allocation of resources by the CBSA due to fewer improperly documented or prescribed persons arriving at PoEs requiring fewer detentions/removals The arrival of fewer individuals known to be improperly documented or prescribed at ports of entry will allow CBSA officers to focus efforts on screening travellers who pose an unknown level of risk. Facilitation of IRCC’s electronic travel authorization (eTA) initiative for air carriers The IAPI system capability to issue an automated “board/no-board” message to commercial air carriers will serve to enforce IRCC’s eTA requirement by ensuring that only eTA-required travellers holding a valid authorization will be able to fly to Canada. Better allocation of resources by the CBSA due to fewer improperly documented or prescribed persons arriving at PoEs requiring fewer detentions/removals The arrival of fewer individuals known to be improperly documented or prescribed at ports of entry will allow CBSA officers to focus efforts on screening travellers who pose an unknown level of risk. Facilitation of IRCC’s electronic travel authorization (eTA) initiative for air carriers The IAPI system capability to issue an automated “board/no-board” message to commercial air carriers will serve to enforce IRCC’s eTA requirement by ensuring that only eTA-required travellers holding a valid authorization will be able to fly to Canada. Better allocation of resources by the CBSA due to fewer improperly documented or prescribed persons arriving at PoEs requiring fewer detentions/removals The arrival of fewer individuals known to be improperly documented or prescribed at ports of entry will allow CBSA officers to focus efforts on screening travellers who pose an unknown level of risk. Facilitation of IRCC’s electronic travel authorization (eTA) initiative for air carriers The IAPI system capability to issue an automated “board/no-board” message to commercial air carriers will serve to enforce IRCC’s eTA requirement by ensuring that only eTA-required travellers holding a valid authorization will be able to fly to Canada. Better allocation of resources by the CBSA due to fewer improperly documented or prescribed persons arriving at PoEs requiring fewer detentions/removals The arrival of fewer individuals known to be improperly documented or prescribed at ports of entry will allow CBSA officers to focus efforts on screening travellers who pose an unknown level of risk. Benefits Benefits Benefits Benefits Benefits Benefits Commercial air carriers Reduced exposure to costs and penalties for transporting passengers who would be known to be improperly documented or prescribed persons upon arrival Air carriers will be provided information (via “board/no-board” messages) prior to passenger boarding to help them to reduce the probability of carrying passengers to Canada who are prescribed or lack the prescribed travel documents. Reduced exposure to costs and penalties for transporting passengers who would be known to be improperly documented or prescribed persons upon arrival Air carriers will be provided information (via “board/no-board” messages) prior to passenger boarding to help them to reduce the probability of carrying passengers to Canada who are prescribed or lack the prescribed travel documents. Reduced exposure to costs and penalties for transporting passengers who would be known to be improperly documented or prescribed persons upon arrival Air carriers will be provided information (via “board/no-board” messages) prior to passenger boarding to help them to reduce the probability of carrying passengers to Canada who are prescribed or lack the prescribed travel documents. Reduced exposure to costs and penalties for transporting passengers who would be known to be improperly documented or prescribed persons upon arrival Air carriers will be provided information (via “board/no-board” messages) prior to passenger boarding to help them to reduce the probability of carrying passengers to Canada who are prescribed or lack the prescribed travel documents. Reduced exposure to costs and penalties for transporting passengers who would be known to be improperly documented or prescribed persons upon arrival Air carriers will be provided information (via “board/no-board” messages) prior to passenger boarding to help them to reduce the probability of carrying passengers to Canada who are prescribed or lack the prescribed travel documents. Distributional impacts Stakeholder groups Commercial air carriers have been identified as the main private sector stakeholder group impacted by the regulatory amendments for the IAPI initiative, as they are responsible for complying with these regulatory requirements. The majority of these stakeholders already comply with the regulatory requirements of the CBSA’s API/PNR program, as well as with similar requirements imposed by other countries. As for individual travellers, suspected high-risk travellers and those known to the CBSA as persons subject to active lookouts, or past enforcement actions, will receive more scrutiny prior to boarding and may be compelled to alter their travel plans. Legitimate travellers are not likely to be adversely affected by these requirements, and may perceive a greater benefit in travelling by air to Canada with improved screening practices in place. For the purposes of this analysis, the scope of affected businesses was limited to those international commercial carriers currently participating in the API/PNR program that are certified to operate in Canada, and that have offices with addresses in Canada (those that operate in Canada). The numbers of such businesses meeting these criteria have been estimated as follows: 71 medium/large (see footnote 6) commercial air carriers; and three small commercial air carriers (small businesses). Business size Distributional impacts of costs to the carrier increase according to air carrier size, in that larger carriers tend to use their own or a third party’s “direct-connect” type (see footnote 7) of data transmission method, which translates to higher system update and maintenance costs; send more transmissions because of higher traveller volume, which translates to higher total costs for transmission; have more employees, which translates to higher total costs for training; and have proportionally more passengers for whom a “no-board” message could potentially be issued, which would in turn translate to higher total customer service costs to deal with these passengers. It is worth noting that with respect to the distribution of total burden on the industry (as opposed to impacts on a carrier’s revenue presented above), medium/large air carriers will have a large share of the burden due to the proportionate number of carriers in the medium/large category. The average total costs (present value) have been estimated at CAD 439,500 (or CAD 62,600 annualized) per medium/large air carrier and CAD 26,400 (or CAD 3,800 annualized) per small air carrier. While they were not included in the cost-benefit calculations for this proposal, the CBSA recognizes that some commercial carriers, that have not been participating as required in the API/PNR program to date, are presumed to be reporting the arrival of persons and goods through the CBSA Telephone Reporting Center as per procedures designated for applicable private/corporate or business aircraft. It should be noted that these remaining small commercial carriers (e.g. charterers) and the general aviation community combined represent less than 1% of the total air traveller population to Canada. Furthermore, it is worth noting that the majority of these carriers are based in Canada or the United States and, while not reporting to the CBSA’s API/PNR program currently, carriers operating U.S.-Canada trans-border flights and/or flying over U.S. airspace engage with the United States Customs and Border Protection (USCBP) by providing pre-arrival flight data. As this information is risk-assessed through the U.S. Secure Flight Program, the small population of travellers transported to Canada by these carriers is considered to represent a minimal risk. The CBSA’s Small Commercial Carrier Action Plan seeks to expand the number of commercial air carriers registered with the API/PNR program to include all air carriers in possession of a Canadian Transportation Agency (CTA) licence that are currently operating in Canada, and that plan to operate internationally. This action plan also aims to encourage existing API/PNR clients that have only one transmission method to set up an alternate method prior to IAPI implementation. The CBSA will continue efforts such as these to encourage comprehensive participation in the API/PNR program, including the participation of all international passenger and/or cargo conveyances (crew data), as well as those carriers with existing code-sharing agreements in current API/PNR programs. Full implementation of IAPI functionality will also continue to be encouraged. The CBSA recognizes that it is important to ensure consistency and fairness across the Canadian aviation industry. “One-for-One” Rule The “One-for-One” Rule applies to this proposal, and the related administrative costs imposed by these amendments are considered an “IN” under this Rule. The CBSA consulted commercial air carriers with a questionnaire sent to 43 individuals that are part of the 29 air carrier working group members in order to solicit information to assist with monetizing the administrative impacts that the proposed regulatory amendments would have on Canadian businesses. The response rate to the questionnaire was low (eight respondents) and no additional comments regarding administrative burden assumptions were received during the prepublication period. The annualized average administrative costs for the IRPR amendments have been estimated at CAD 224,311, resulting in an annualized average administrative cost per business of approximately CAD 3,031. The annualized average administrative costs of the PICR amendments are estimated to be CAD 2,293,297, and therefore, result in approximately CAD 30,991 annualized average administrative cost per business. The overall annualized average administrative costs of all amendments are estimated to be CAD 2,517,608 and approximately CAD 34,022 per business. There is no administrative burden imposed with amendments to either the PPIR or the DPCR. The administrative burden for each stakeholder type and each proposed regulatory requirement was based on the internationally recognized Standard Cost Model (see footnote 8) and was used to quantify and monetize the direct administrative costs associated with the regulations. Administrative activities that are required for compliance with the regulations have been identified and their costs estimated for this purpose. The administrative activities considered to impose an increased burden for air carriers, and which were included in the calculations for this regulatory proposal, are as follows: training of airline employees to familiarize those who are affected by the operational changes with the information obligations and submission procedures; increased transmission of the required information to the CBSA (including most costly interactive API, more frequent PNR pushes, and the new close-out messages); and handling of passengers who have been issued a “no-board” message. This may include costs associated with providing advice and direction to affected passengers (travellers will be referred to the IRCC Web site for issues specific to the validity of their travel documents), as well as submitting information and communicating with the CBSA to verify messaging and to resolve any associated technical issues. For each activity, four cost parameters were factored in: Price — the wage cost plus overhead or the price associated with the activity; Time — the amount of time required to complete the activity; Frequency — the number of times that the activity must be completed each year; and Population — the number of affected businesses. Parameter values used in calculation This table presents the parameter values used in calculation. Activity Price (2012 constant dollar) Time (hours) Frequency Population Training CAD 22.46/hr 1 014 [1] 1 [2] 74 Transmission of API (3rd Party MQ) [3] CAD 0.07/transmission 421 609 [4] 53 Transmission of PNR (3rd Party MQ) [3] CAD 0.06/transmission 374 176 [5] 53 Transmission of PNR (non-MQ) CAD 0.06/transmission 886 [5] 14 Transmission of close-out (3rd Party MQ) [3] CAD 0.01/transmission 421 609 [4] 53 Transmission of close-out (non-MQ) CAD 0.01/transmission 1 194 [4] 16 Handling passenger CAD 22.46/hr 1 20 [4] 74 Notes [1] Four hours per staff member and 264 staff members per medium/large carrier and three staff members per small carrier [2] One-off upfront cost [3] The CBSA assumes that the five medium/large airlines with a system directly connected to the CBSA would carry no additional transaction costs to transmit API/PNR/close-out messages via MQ [4] Ongoing, projected 2015–2016 number, growing at 3% annually [5] Ongoing, projected 2016–2017 number, growing at 3% annually Notes [1] Four hours per staff member and 264 staff members per medium/large carrier and three staff members per small carrier [2] One-off upfront cost [3] The CBSA assumes that the five medium/large airlines with a system directly connected to the CBSA would carry no additional transaction costs to transmit API/PNR/close-out messages via MQ [4] Ongoing, projected 2015–2016 number, growing at 3% annually [5] Ongoing, projected 2016–2017 number, growing at 3% annually Notes [1] Four hours per staff member and 264 staff members per medium/large carrier and three staff members per small carrier [2] One-off upfront cost [3] The CBSA assumes that the five medium/large airlines with a system directly connected to the CBSA would carry no additional transaction costs to transmit API/PNR/close-out messages via MQ [4] Ongoing, projected 2015–2016 number, growing at 3% annually [5] Ongoing, projected 2016–2017 number, growing at 3% annually Notes [1] Four hours per staff member and 264 staff members per medium/large carrier and three staff members per small carrier [2] One-off upfront cost [3] The CBSA assumes that the five medium/large airlines with a system directly connected to the CBSA would carry no additional transaction costs to transmit API/PNR/close-out messages via MQ [4] Ongoing, projected 2015–2016 number, growing at 3% annually [5] Ongoing, projected 2016–2017 number, growing at 3% annually Notes [1] Four hours per staff member and 264 staff members per medium/large carrier and three staff members per small carrier [2] One-off upfront cost [3] The CBSA assumes that the five medium/large airlines with a system directly connected to the CBSA would carry no additional transaction costs to transmit API/PNR/close-out messages via MQ [4] Ongoing, projected 2015–2016 number, growing at 3% annually [5] Ongoing, projected 2016–2017 number, growing at 3% annually These elements are combined in the following basic formula: Cost per activity = price × time × frequency × population Based on the “One-for-One” Rule methodology (i.e. using a 10-year time horizon from FY2015–2016 to FY2024–2025, constant 2012 dollars, a 7% discount rate, and the present value base year of 2012), it has been estimated that the total annualized average administrative costs imposed by the introduction of the proposed regulatory amendments will be approximately CAD 2,517,608, resulting in an annualized average administrative cost per business of approximately CAD 34,022. The expected increase in administrative costs will stem mainly from a one-time cost to train front-line employees and to update training material on the new process imposed by the regulations. As well, costs have been associated with more frequent data transmittals (e.g. for API, PNR, and the close-out message). Based on the information above, the regulatory amendments are considered an “IN” under the Rule. An “IN” is a monetized increase in administrative burden costs from the revision of existing regulations. Small business lens The CBSA recognizes that Canadian small businesses will be impacted by the new requirements. The average total costs (present value) per small business have been estimated at CAD 26,380 (or CAD 3,760, annualized). Determination of population A small business is defined by the TBS, thus for the purposes of this analysis, as any business, whether incorporated or not, with under 100 employees or between $30,000 and $5 million in annual revenues. Because revenue data was not readily available for all commercial air carriers considered under these regulatory amendments, the number of employees was most often used to define small businesses in the cost-benefit analysis, as well as for the purposes of the small business lens. Where information pertaining to both revenue and the number of employees was available, revenue took precedence over the number of employees for determining business size. For the purposes of the cost-benefit analysis and the small business lens, all those commercial air carriers currently participating in the API/PNR program were included in calculations to monetize the costs and assess the benefits of IAPI requirements. Of those approximately 200 carriers, three were determined to be small businesses operating in Canada, according to the small business lens. Both direct compliance and administrative costs associated with the regulations have been calculated for the small business lens. The compliance activities included in the calculations are the upfront costs relating to the updating, testing and certification of air carrier IT systems so they have the capability to meet their information obligations. The administrative activities are the same as those listed in the “‘One-for-One’ Rule” section above. The compliance and administrative costs were calculated for the three small businesses identified for this regulatory proposal using a 10-year time horizon, from FY2015–2016 to FY2024–2025, constant 2012 dollars, a 7% discount rate, and the present value base year of 2015–2016. Small business consultation The three small businesses within the scope of the small business lens identified for this regulatory proposal were provided with IAPI communiqués and informative materials, as well as access to the IAPI Web page. Each of the small businesses was invited to participate in webinars and in meetings where the provision of feedback was encouraged. One of the three small businesses participated in webinars hosted by the CBSA and provided feedback in the form of questions about the program. No major concerns were raised by these small businesses, but during the prepublication comment period, questions on the timelines for IAPI implementation and on how transmission methods may change and/or pose new challenges for small operators were raised. More details regarding the feedback obtained in the prepublication period are provided below in the Consultation section. Summary of flexibility analysis After careful consideration and analysis of options for reducing the burden on small businesses, the CBSA determined that it would not be advisable, from a risk management perspective, to provide regulatory flexibility to the small businesses identified under the IAPI regulatory proposal. A flexible option of requiring fewer pushes of passenger or reservation data for small businesses was quantified and compared to the initial option for this proposal; however, it was determined that this option could adversely impact immigration integrity, public safety and national security, and thus was not recommended. Flexible option The following flexible option was quantified and considered for this regulatory proposal: allowing small businesses to transmit PNR data elements once rather than requiring multiple pushes (up to four times and no later than 72 hours prior to departure). Reverse onus Allowing small businesses to send a passenger’s PNR data elements once rather than requiring that they send all updates to said elements (up to four times) would fail to strengthen the CBSA’s Air Passenger Targeting Program by reducing the frequency at which information is made available to targeting officers and reducing its timelines. Multiple pushes of PNR data elements beginning no later than 72 hours prior to departure will allow the CBSA targeting officers to determine, for example, whether a passenger travelling to Canada has attempted to obfuscate some aspect of his or her identity by changing a reservation multiple times. This behaviour has been shown to be consistent with attempts to conceal criminal activity or the identity of a traveller. Allowing a two-tiered system to be in place with regard to the submission of PNR data elements will therefore not strengthen the CBSA’s targeting program or address a current gap in Canada’s national security perimeter. As this flexible option was assessed to have the potential to adversely affect the security and/or safety of Canadians, it was not the recommended option for this regulatory proposal. Flexibility within the initial option Although a flexible regulatory option has not been made available to small businesses, the CBSA provides flexibility for all businesses through the implementation of the initial option (the amended regulations) by allowing various approved methods (see footnote 9) for the transmission of API and PNR elements. IAPI will leverage the multiple transmission methods already in place for the existing API/PNR program, including the Message Queue (MQ) / direct connection (API and PNR); the Secure email (API only); and the Internet API Gateway (IAG), which supports file upload (API and PNR) and interactive data entry (API). Small business owners have the option of using interactive data entry or file upload through the IAG (a secure Web site that allows operating air carriers and/or service providers to transmit data to the CBSA via these methods), or using email to transmit data to the CBSA secure email address. These alternative options introduce no new direct costs for businesses that already have Internet access, and may be considered more user-friendly than the Message Queue (MQ) Network. Both secure email and the IAG Web site transmission methods are available at no cost to registered air carriers and, in most cases, air carriers will be able to continue to use the transmission methods that they are currently using for the API/PNR program for future IAPI transmissions. Table 2: Regulatory flexibility analysis summary This table presents the regulatory flexibility analysis summary. Initial Option Initial Option Flexible Option Flexible Option Short description All businesses to transmit PNR data elements up to four times beginning at 72 hours prior to departure. All air carriers will be given multiple options for transmission, including Message Queue (MQ) Network, the Internet API Gateway (IAG), and secure email. In most cases, for future IAPI transmissions, air carriers can continue to use the transmission methods that they are currently using for the API/PNR program. All businesses to transmit PNR data elements up to four times beginning at 72 hours prior to departure. All air carriers will be given multiple options for transmission, including Message Queue (MQ) Network, the Internet API Gateway (IAG), and secure email. In most cases, for future IAPI transmissions, air carriers can continue to use the transmission methods that they are currently using for the API/PNR program. Allowing small businesses to transmit PNR data elements once rather than requiring multiple pushes (up to four times, beginning no later than 72 hours prior to departure). Allowing small businesses to transmit PNR data elements once rather than requiring multiple pushes (up to four times, beginning no later than 72 hours prior to departure). Maximum number of small businesses impacted 3 3 3 3 Annualized Average ($ 2012) Present Value ($ 2012) Annualized Average ($ 2012) Present Value ($ 2012) Compliance costs $9,150 $64,300 $8,240 $57,870 Administrative costs $1,900 $13,360 $1,340 $9,440 Total costs $11,060 $77,660 $9,580 $67,310 Average cost per small business $3,690 $25,890 $3,190 $22,440 Risk considerations While the transmission of IAPI data via IAG and secure email might delay the reception of “board/no-board” messages, since transmissions via MQ / Direct sense Connect have priority and are promised a short response time, this is not expected to result in significant delays in boarding or in passengers missing connecting flights. While the transmission of IAPI data via IAG and secure email might delay the reception of “board/no-board” messages, since transmissions via MQ / Direct sense Connect have priority and are promised a short response time, this is not expected to result in significant delays in boarding or in passengers missing connecting flights. This flexible option is assessed to have the potential to adversely affect the security and/or safety of Canadians by failing to strengthen CBSA’s Air Passenger Targeting Program. Reducing the frequency at which information is available to targeting officers and its timelines will not address an existing gap in Canada’s national security perimeter. This flexible option is assessed to have the potential to adversely affect the security and/or safety of Canadians by failing to strengthen CBSA’s Air Passenger Targeting Program. Reducing the frequency at which information is available to targeting officers and its timelines will not address an existing gap in Canada’s national security perimeter. Note: Costs have been estimated using the Standard Cost Model. Detailed calculations are available upon request. Calculations for the costs considered above for small businesses were based on a 10-year time horizon (FY2015–2016 to FY2024–2025) using a discount rate of 7% in 2012 constant Canadian dollars. Consultation Streamlining processes and minimizing impact, duplication of effort, and costs to stakeholders, including small businesses, remain key considerations as the IAPI initiative is developed and implemented by the CBSA. Consultation prior to prepublication In order to ensure the utmost openness and transparency with stakeholders, and to seek their feedback as to whether their particular business needs are being addressed, the CBSA began consultations and established stakeholder working groups early in the development of the project. The CBSA has been conducting outreach and engagement activities with commercial air carriers (including small businesses) since the fall of 2012. The CBSA has used a number of different strategies to reach out to stakeholders potentially affected by the initiative, including communiqués and webinars, general mailboxes linked to an IAPI Web page, as well as participation at specific meetings, such as regular Air Industry Working Group (AIWG) and Air Industry Technical Working Group (AITWG) meetings. In November of 2014, the CBSA provided commercial air carriers in the AIWG with a questionnaire in order to solicit additional information to aid in the monetization of impacts that the proposed regulatory amendments would have on Canadian businesses. As the first draft of the technical system specifications was issued in December 2014, feedback on the CBA questionnaire was obtained at a time when knowledge was still evolving with respect to air carrier expectations. For that reason, some air carriers responded that they were, at that time, unable to fully complete the questionnaire due to a lack of information on their part. During this phase of consultations, these working groups provided the airline industry and other stakeholders with an opportunity to engage on issues of technical support, anticipated costs related to the developments of technical specifications, while more generally promoting the benefits and potential cost savings of interacting with the CBSA via IAPI. Small business One small commercial air carrier among the three identified for this regulatory proposal participated in webinars hosted by the CBSA and provided feedback in the form of questions about the program. While no major concerns were raised, questions on the timelines for the implementation of IAPI requirements and on how transmission methods may change and/or pose new challenges for small operators formed part of ongoing discussions. Although general aviation operators (i.e. private, corporate operators) are not within the scope of this regulatory proposal, early outreach included small operators of all types in order to better understand the operating conditions and potential challenges specific to smaller operations. These will be taken into consideration outside the development of this proposal in conjunction with any future regulatory amendments being considered. The CBSA continues to respond to all questions and concerns raised by air carriers as they are received. Prepublication comments and CBSA responses These amendments were prepublished in the Canada Gazette, Part I, on June 27, 2015, followed by a 30-day comment period to provide interested persons and parties with the opportunity to make comments. Comments received during the 30-day comment period included 11 written submissions from commercial air carriers and associations representing various segments of the commercial air industry. As well, the Office of the Privacy Commissioner (OPC) and an association representing immigration lawyers provided submissions on this proposal. Ten of the eleven submissions, in the context of raising specific concerns from their particular perspectives, also expressed support for the GoC’s initiative in improving border security by strengthening the regulatory provisions to prevent the entry of inadmissible persons to Canada. In the process of scheduling participants to the IAPI testing and certification action plan, additional feedback was provided to the CBSA during 10 telephone conversations with air carriers as well as their service providers (companies engaged by many larger carriers to format and send electronic data on their behalf), including one carrier who had also provided a written submission. This additional feedback was considered together with the formal submissions. Additionally, feedback was transmitted to the Agency through 25 queries sent to the IAPI external mailbox during this comment period from areas seeking clarification of impacts to their operations, such as air cargo carriers and charter operators, as well as a variety of questions of a technical nature from all affected parties. Though most of these queries were not specific to the regulatory amendments, all feedback was considered pertinent to the proposal. While the proposed regulations necessary for the implementation of IAPI were generally well received and supported by stakeholders, specific concerns raised by these same stakeholders have been summarized in themes below. System implementation time frames The largest number of comments received in this period related to the IAPI system implementation, including time frames, outage procedures and other comments relating to technical (IT) specifications and support. In keeping with feedback previously received through ongoing AIWG discussions, a number of air carriers and their service providers expressed concerns with their ability to carry out necessary system changes before the eTA requirement for qualifying passengers becomes mandatory on March 15, 2016. These changes would be necessary in order to comply with the time frames set out in the regulations. To respond to this feedback, the IRPR have been amended with respect to transporter obligations. On September 30, 2016, approximately six months after the eTA mandatory date of March 15, 2016, the eTA will be added to section 259 of the IRPR as a document prescribed under the IRPA to enter Canada. Section 279, which governs administration fees issued to transporters for carrying travelers lacking prescribed travel documents, will be amended with respect to eTAs to also come into force on September 30, 2016. This extended period of approximately six months after the eTA becomes a mandatory travel document will provide air carriers sufficient time to comply with the requirements introduced with IAPI. This approach has been taken to respond to the concern that those carriers who would be first to adopt IAPI system requirements should not be subject to administration fees before those carriers who commit to on-boarding at a later date. To support this airline on-boarding approach, extensive outreach and communication efforts have been undertaken and continue to expedite early on-boarding. Air carriers are reminded that the current requirements with regard to all other prescribed documents to enter Canada remain the same. Technical support Specific issues of a technical nature were raised in these responses, including check-in procedures and carrier codes for ad-hoc operations, the definition of reservation system, requirements for PNR submissions, and close-out message elements, and systems outage procedures. The CBSA responded to each query by providing written responses via the IAPI mailbox or verbal responses via phone calls and in the working groups. Many procedural questions, such as systems outage procedures, are being addressed through technical working group discussions and ongoing consultation in preparation for testing and certification with stakeholders. Support to commercial air carriers will be available on a 24/7 basis for technical issues through the CBSA’s Carrier Account Support Team (CAST), or the API/PNR PAXIS Support Unit (APSU) for any questions relating to technical issues (including connectivity, transmission issues, reject messages, etc.) and system outages. From a regulatory perspective, an amendment to section 279 of the IRPR adds an exception to the issuance of administration fees to account for potential CBSA system outages, as described in this document. Standard operating procedures will also be amended to reflect system outages. In case of outages, the transporters’ obligation to submit an API would still apply. As per current practice, air carriers are still required to submit passenger information as soon as their system is restored. For this reason, the CBSA is encouraging airlines to have a back-up method of transmission available. If the outage is based on the failure of the CBSA system, subsection 282(2.1) of the IRPR lays out an exemption to the issuance of an administration fee to a commercial air carrier in cases where the carrier was not made aware that a person did not have an eTA (section 259 of the IRPR) or their status as a prescribed person (section 258.1 of the IRPR). As the eTA is the only document which is issued electronically, airlines will still have the ability to validate all other existing prescribed travel documents, such as passports and visa counterfoils. Facilitation of passengers Airport authorities from several major Canadian airports expressed support for the facilitation benefits derived under the IAPI initiative, as well as the implementation of robust systems and processes which prevent any unauthorized travelers from entering Canada. They stated that they see opportunities to significantly enhance and expedite the clearance process once the regulations come into force, including greater use of automated solutions and strengthening the foundation for future programs. They collectively asserted the importance of broad adoption of the requirement to submit pre-departure passenger data in order to facilitate the consistent, expedited processing of passengers arriving into Canada and for those connecting to other countries. The CBSA provided additional clarification as to the intent and purpose of a “board/no-board” message; namely, that it is provided as a means to help air carriers meet their transporter obligations. The CBSA is working to ensure that inefficiencies in processing of passengers are not introduced, regardless of the IAPI on-boarding status of the air carrier. As noted above, the IAPI system has been adopted as a way to address the pressures brought by the growth of global air passenger traffic; namely, to facilitate faster clearance of international passengers and reduced examination time upon arrival. Cost-benefit analysis One submission felt the published costs did not accurately reflect the initial and recurring costs that would be incurred by commercial air carriers in complying with the regulatory amendments associated with IAPI and eTA. While this submission did not provide any replacement figures, it was maintained that the requirement for carriers to pay for annual maintenance costs for a government system (direct connect fees) is a practice exceptional to Canada. The CBSA responded that the costs published in the Regulatory Impact Analysis Statement (RIAS) on June 27, 2015, were based on a full cost-benefit analysis (CBA) undertaken in order to assess the costs of the IAPI to the commercial air carrier industry. The CBA was developed using accepted methodology and publicly available data in order to estimate the costs to both government and industry associated with the IAPI proposal. The commercial air industry was consulted during the development of the IAPI CBA via a questionnaire sent to commercial air carriers on November 27, 2014. Commercial air carriers or service providers who choose to establish a direct connection with the CBSA for the purposes of providing passenger and crew API and PNR data are assessed the same direct connect fees as our commercial clients. These fees have remained static and in place since 2010. The purpose of collecting direct connect fees from our external clients is purely to offset the costs for the maintenance of this connection. The CBSA continues the dialogue with all impacted air carriers through all available consultation mechanisms. Regulatory changes requested Remove “travel agents” from the definition of “agent” in the IRPR, as these entities would not be transmitting passenger data to the Canadian Government on behalf of the airline. This change was made to the definition. Under the new definition, found in subsection 1.1(1) of the IRPR, for the purposes of section 148 of the IRPA, “agent” includes any person — whether or not an independent contractor — who provides services as a representative of a vehicle owner, operator or charterer. Adding the word “scheduled” prior to “time of departure.” In response to this concern, the CBSA has updated the CMR to reflect that the data should be transmitted at the “scheduled time of departure.” The technical requirements, specifications and procedures for electronic data interchange, as set out in the CMR, have been incorporated by reference in the IRPR, subsection 269(2), and the PICR, section 6, made under the authority of the Customs Act and the IRPA, respectively. Other comments An association representing immigration lawyers submitted numerous concerns that relate primarily to the protection of personal information within the scope of the IAPI regulatory amendments. For example, within the amendments to the IRPR, the wording of paragraph 269(1)(e) includes a reference to a schedule of PNR elements to be added, in which line 16 reads: “general remarks against (the passenger) contained in his booking file, including other additional information, information on special services and special service requests.” This reference in particular elicited the concern that, without any safeguards, personal information potentially contained with the general remarks section (i.e. the meal preference) could compromise the personal information of a Canadian citizen or permanent resident. Other comments indicated the imprecise nature of certain terms, such as “national security,” or the perceived lack of precision in the wording used in amending certain regulations, may lead to the infringements of passengers’ privacy and/or equality rights under the Canadian Charter of Rights and Freedoms (sections 8 and 15, respectively). The CBSA acknowledges the importance of observing key privacy principles and fair information sharing practices in introducing regulatory amendments for the IAPI initiative, and to that end has consulted on an ongoing basis with the OPC throughout the development of the regulatory amendments in an effort to mitigate any potential concerns. These are outlined in the RIAS in the section entitled “Privacy impacts.” Additionally, the CBSA will provide information through various means and encourages air carriers to continue to provide information to their passenger regarding the use of their personal information through, for example, the terms and conditions of the airlines’ ticket issuance process. With regard to the data collected, the CBSA highlights that the IAPI program builds upon the current API/PNR program, in which these data elements are collected, and measures remain in place to protect this information. With the implementation of the IAPI program, there will not be any less protection afforded to the data collected. It is important to note that many carriers do not collect all or even most of these 18 PNR elements listed in the schedule, and they are only obligated to submit what they already collect for their own business purposes. Any PNR elements received from air carriers beyond those listed in the schedule in the regulations are similarly not displayed or processed. Additional comments related to the scope of the regulations (i.e. applying in the air mode only), and the pressures that international air carriers face when operating within multiple jurisdictions. The CBSA notes in this document that obligations arising from the regulatory amendments apply to commercial transporters, but will, for the present time, only be enforced in the air mode until such time as the Government of Canada decides to enforce these obligations against commercial transporters in other modes of travel (marine, rail, highway). Further regulatory amendments would be necessary in the event that these obligations are extended to transporters in other modes of transportation along with thorough consultation to better assess impacts in these other modes. Referred comments A comment from a marine shipping organization related to crew data transmission and carrier code policy in the commercial shipping context was referred to the appropriate area within the CBSA for consideration, as they do not relate to the regulations made under this initiative. Finally, those respondents whose questions pertained to the electronic travel authorization document requirements, fees and application process, were directed to the IRCC Web site for more information. Engagement, outreach, and the development of action plans for IAPI implementation for commercial air carriers currently participating in the API/PNR program, as well as those carriers that are anticipated to take part in the future, remain ongoing. Regulatory cooperation On February 4, 2011, the Prime Minister of Canada and the President of the United States issued Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness. The Declaration established a new long-term partnership built upon a perimeter approach to security and economic competitiveness, and was followed in December 2011 by the Beyond the Border Action Plan, which provided details concerning the general commitments made in the Declaration. The Action Plan committed Canada to implementing an enhanced approach to identifying and interdicting inadmissible persons at the perimeter, including the use of IAPI to make “board/no-board” decisions on all travellers wishing to fly to Canada prior to their departure. The CBSA committed to aligning the requirements and the processes of IAPI with the U.S. Advance Passenger Information System (APIS) / Interactive Quick Query (AQQ) option under the APIS Pre-departure Final Rule as much as possible. Such alignment allows air carriers currently operating commercial flights to the United States to leverage their existing technology and knowledge to the fullest extent. Rationale The regulatory amendments underpin the changing nature of the interaction between border control authorities and commercial air carriers by allowing the GoC to provide crucial information to inform the carrier’s decision of whether to board an individual bound for Canada. Doing so in the context of Canada’s IAPI program will contribute to preventing prescribed persons and improperly documented FNs from reaching Canadian PoE, thereby protecting the integrity of Canada’s immigration program and enhancing public safety. The amendments will also enhance the CBSA’s ability to target high-risk travellers by providing targeting officers with relevant information earlier in the travel continuum. This will, in turn, strengthen national security. These regulatory amendments will allow the CBSA to ensure that the required data is being provided within the time and in the manner and format prescribed in section 107.1 of the Customs Act; to collect information earlier in the travel continuum in order to allow additional time for targeting activities to identify high-risk travellers upon the coming into force of the requirement for air carriers to provide pre-departure PNR; to work more effectively with commercial air carriers to ensure that the passengers they carry to Canada are properly documented and that travellers are not prescribed persons; and to provide the capacity to validate the existence of the eTA for all FNs who require an eTA and are flying to Canada prior to departure Privacy impacts The CBSA completed a Privacy Impact Assessment (PIA) for IAPI’s commercial component in consultation with the OPC. The executive summary of the PIA will be available on the CBSA Web site, and the full PIA will be available upon request. The PIA highlights the following five potential privacy risks and proposed mitigation strategies. Risk: The Privacy Act does not extend to non-resident foreign nationals the authority to make a request for information from the GoC. The ability to request this information is important to ensure public trust in the CBSA’s collection, use and retention of this information, and ensures that travellers can propose corrections to their information. This is also an important commitment to our EU partners as part of the new Canada-EU PNR Agreement. Proposed mitigation: Under the current API/PNR program, all passengers, regardless of where they reside, are able to request a copy of the API/PNR information submitted to the CBSA by commercial carriers. The CBSA will continue its practice of administratively granting access to all foreign nationals as per official CBSA policy (Memorandum D1-16-3 (see footnote 10)), meaning that IAPI will provide passengers with the same rights by allowing passengers to submit an Access to Information and Privacy (ATIP) request to the CBSA’s ATIP Division. This long-standing practice is indicated in the CBSA’s public policy (D-memoranda) as well as published on its external Web site. In addition, the CBSA will afford access, correction and notation rights related to API/PNR data to persons who are not in Canada. The disclosure request must be made using form BSF153, Travellers API/PNR Request, available on the CBSA Web site. Risk: An automated system could potentially issue erroneous “no-board” messages regarding passengers based on incorrect matches between an individual’s API data and another individual who is known to be inadmissible to Canada [such as an individual who has been subject to a previously enforced removal order or to the Minister of Immigration, Refugees and Citizenship’s authority pursuant to subsection 22.1(1) of the IRPA]. Proposed mitigation: In order to mitigate any privacy risk associated with this matching process, IAPI will use a manual process for issuing “no-board” messages in cases of a close or exact name match. This manual intervention by an officer at the CBSA’s NTC will confirm that the close or exact match is correct before a “no-board” message is issued. The IAPI project has been designed in such a manner as to mitigate the risk of an automated or manual “no-board” message being incorrectly issued to an air carrier for a foreign national in cases such as these. An automated “board/no-board” message should never be sent for these cases, as manual officer review will always be required. Automated “no-board” messages will be issued only if there is an exact match between a passenger’s document number (e.g. passport number) and the appropriate document within the IRCC’s active documents list (i.e. eTA, visa). The active documents list is a reference to the information housed within the CBSA’s Interdiction and Border Alerting System (IBAS) that is populated from the IRCC’s Global Case Management System (GCMS). Risk: By collecting data on persons “expected to be on board” a flight, the CBSA will collect API/PNR data on persons who do not come to Canada. If there is no reconciliation between the passengers who fail to depart for Canada and the information previously submitted by the commercial carrier, this information would be retained by the CBSA and continue to be indistinguishable from the API/PNR data of persons who did travel to Canada. This would be a privacy risk, as information collected by the CBSA for travellers under IAPI should be accurate, and the CBSA should be able to determine if travellers did or did not come to Canada. Furthermore, the OPC has also previously raised concerns surrounding the collection of API/PNR, about persons who are no longer coming to Canada, without an explicit purpose for doing so. Proposed mitigation: Under IAPI, the CBSA will use Flight Update Notification (FUN) messages to address this risk. These messages will indicate a change in travel plans for passengers on a flight to Canada, or the cancellation of an entire flight. FUN messages will be used to identify a person’s API/PNR information as “not coming to Canada” and remove the persons from any IAPI or Scenario Based Targeting work lists that they may be on. This will allow the CBSA to determine that a specific person for whom it collected API/PNR information did not travel to Canada and in turn reduces the burden on the CBSA’s NTC staff by removing persons not traveling to Canada from their work lists. Depersonalized data elements derived from FUN messages could be included among data used to conduct trend analysis; this presents a justifiable administrative use for the retention of the information collected on persons who are no longer coming to Canada. Risk: CBSA Info Source Personal Information Bank (PIB) records relating to the API/PNR Program Data Acquisition process and Air Passenger Targeting program activity do not accurately reflect all elements of the IAPI initiative. PIBs describing the classes of personal information maintained by a department are published in the Treasury Board Secretariat (TBS) publication Info Source, which is made available as a means of informing the public on how personal information is used by the Government. An update is required to the API/PNR Program PIB and its class of record entry in order to accurately reflect the IAPI initiative’s updates to the API/PNR Program. Proposed mitigation: The CBSA expects to update the API/PNR PIB for publication in March 2016 to reflect new API data elements collected under IAPI, new legal authorities for use and retention of API and PNR, the creation and storage of “board/no-board” messages by the CBSA, the collection and storage of FUN messages by the CBSA and the “board/no-board” functions of IAPI. Risk: The privacy risk associated with regulatory amendments relating to API, namely, the transfer of the API provisions out of the PPIR and into the IRPR, which will enable the use of API for general immigration purposes, rather than restrict use only to those uses related to identifying persons who are or may be involved with, or connected to, terrorism or terrorism-related crimes or other serious crimes, including organized crime, that are transnational in nature. Proposed mitigation: The CBSA will issue an Operational Bulletin to all staff that will provide additional clarity regarding the use and disclosure of API information and the operational application of the regulatory amendments being made under IAPI implementation. The CBSA will also modify Memorandum D1-16-3 (Administrative Guidelines for the Provision to Others, Allowing Access to Others and Use of Advance Passenger Information [API] and Passenger Name Record [PNR] Data), to ensure that API information is limited in its use, retention and disclosure. Following further assessment of the IAPI initiative, it was determined that the initially identified potential privacy risk related to the annotation of records (i.e. the process by which a traveller’s requested change to their own API or PNR is recorded on file within the CBSA’s system) is effectively mitigated through internal procedures, and it was therefore removed as a privacy risk from IAPI’s finalized PIA. Similarly, given that information collected under IAPI via the carrier provides notice to the individual, it is therefore no longer identified as a privacy risk. The CBSA will update public information related to IAPI, including D-memorandums, PIBs, the CBSA IAPI Web page and any other IAPI-related material on the CBSA Web site to reflect the implementation of the IAPI initiative, and the potential ways in which the CBSA may use information. In addition, the CBSA encourages commercial airlines to provide information to travellers regarding the use of their information (e.g. this could be done through the terms and conditions of the airlines’ ticket issuance process). Implementation, enforcement and service standards Implementation The IAPI initiative was announced in December 2011, as part of the Beyond the Border Action Plan commitments agreed upon by Canada and the United States. The regulatory amendments are designed to provide regulatory support for the full implementation of the IAPI initiative. The majority of the proposed IAPI-related regulatory amendments would come into force upon registration, while the coming-into-force of amendments to the IRPR relating to administration fees to transporters would coincide with the coming-into-force date of legislation making the eTA a mandatory travel document. The proposed regulatory amendments related to pre-departure PNR would come into force at a later date, based on considerations such as ratification of the Canada-EU PNR Agreement or, if deemed necessary, national security interests. The CBSA is working closely with IRCC and commercial air carriers and their service providers to develop an expedient airline boarding approach that will meet the expected strategic, business and operational success factors of the eTA and IAPI initiatives. These success factors include the increased screening capability of travellers, which comes with using an automated process, and increased integrity of intelligence information, which is available earlier in the travel continuum. Each of the commercial air carriers (numbering approximately 200) will review and sign an action plan with the CBSA, confirming their system’s readiness and ability to begin the testing process to be certified to transmit data under the IAPI requirements and receive “board/no-board” messages. The IAPI action plan is a document that CBSA testers will use to validate each air carrier’s technical API/PNR transmission details, and those of the service providers they will be using, as well as to allocate a testing window. Given that there are over 200 clients to test and certify, the CBSA has been actively engaging with air carriers to schedule their testing windows. As there are several factors that impact air carrier readiness to test and certify with the CBSA, including competing business priorities, as well as dependencies related to business carriers’ business models and service providers, the CBSA is currently aiming to onboard the top 65 commercial air carriers, and their service providers, that transport 99% of the travellers requiring an eTA, by September 2016. Coming into force The IRPR amendments are divided into parts according to the date on which or manner in which they will come into force. Part 1 regulatory amendments, including those related to API and “board/no-board” messaging, will come into force upon registration. These amendments permit the CBSA to obtain API and PNR data earlier in the travel continuum, to obtain new information (i.e. flight header, UPR), and to obtain information in a specified manner (i.e. as outlined in the CMR document). They also provide the CBSA with the authority to communicate “board/no-board” messages to commercial air carriers. Additionally, Part 1 serves to update the classes of prescribed persons (i.e. persons subject to a removal order who do not hold an ARC) and the prescribed documents to include the eTA. Part 2 regulatory amendments will come into force on September 30, 2016. These amendments allow for a period of approximately six months after the registration of Part 1 regulatory amendments during which the issuance of administration fees for infractions related to the enforcement of the eTA as a prescribed document will be suspended to allow for the transition of the majority of commercial air carriers to the IAPI systems. Fees relating to other transporter obligations (i.e. with regard to passenger documentation requirements such as visas) will continue to apply as they do today. Part 3 amendments relate to pre-departure PNR, and will be enacted at a later date by regulatory amendment, based on considerations such as ratification of the Canada-EU PNR Agreement or, if deemed necessary, national security interests. Enforcement Commercial air carriers that do not provide complete or accurate API on all passengers and crew are subject to financial penalties. AMPs are issued today when there is non-compliance with Customs Act requirements. To assist stakeholders in adapting to the changes introduced with the IAPI program, for most of the regulatory requirements, there will be a period of approximately six months after the registration of the regulatory amendments during which AMPS for the new API elements that airlines will be required to send will be issued at $0 penalties. In addition to AMPs, administration fees will continue to be assessed as part of the transporter obligations program. The CBSA does not intend to begin penalizing carriers for carrying a traveller who does not possess an eTA until September 30, 2016, approximately six months after the eTA becomes a mandatory travel document. Administration fees related to physical documents, such as valid passports and TRVs, will continue to be assessed as they are today, while amended provisions will apply upon coming into force of the applicable regulations, whether or not an air carrier is participating in the IAPI initiative. Should the air carrier decide to carry to Canada an FN for whom it has received a “no-board” message, the FN will be intercepted on arrival by CBSA officers at the PoE. If the FN who was the subject of the “no-board” message is determined upon examination at the PoE to be a prescribed person, or not in the possession of the prescribed documents, the air carrier may be subject to administration fees under the transporter obligation program, as would be the case today. Performance measurement and evaluation Canada, like the United States, will track key performance indicators in order to manage and to ensure the realization of the measurable benefits that have been defined for the IAPI initiative. Some examples of indicators to be measured for IAPI include the percentage of “no-board” messages issued by the CBSA to air carriers for improperly documented or prescribed persons that result in the passenger being denied boarding; and the percentage of flights to Canada for which PNR and/or API is provided to the CBSA within the time frames prescribed in the regulations. To document the measurement, management and realization of IAPI benefits, the CBSA has developed a performance measurement strategy, which includes a performance measurement framework (PMF), for the commercial aviation component of the IAPI initiative. This framework will serve as an objective basis for collecting information related to the expected outcomes of the initiative. For the PMF, expected benefits to be realized and specific measurable data elements attributable to the implementation of the IAPI initiative are defined, and related key performance indicators, data sources, frequency of data collection and performance targets have been identified. Based on the PMF, the necessary performance measurement infrastructure and resources will be put in place to collect relevant data on an ongoing basis. This data will be used to assess whether the measurable benefits that have been defined for the IAPI initiative are being realized. These include The number of “no-board” messages issued by the CBSA to air carriers and the percentage as a proportion to all travellers to Canada via the air mode. The percentage of “no-board” messages issued by the CBSA to air carriers for improperly documented or for prescribed persons that result in the passenger being denied boarding. The total number of cases documented by the CBSA Stakeholder Engagement and Outreach Unit where transporters fail to meet their obligations as outlined within the IRPR (i.e. cases where administration fees could be/are assessed for transporting improperly documented or prescribed persons to Canada). Total number of cases documented by the CBSA Airline Compliance Unit where AMPs are issued to air carriers based on data quality and data provision criteria required under the API/PNR Program or IAPI (when applicable). Finally, the CBSA Benefits Management and Realization process for IAPI will serve as the corporate oversight of the realization of benefits and will also feed into the CBSA’s broader GoC performance reporting processes (e.g. the Departmental Performance Report), as well as any audits and evaluations, as required. Contact Jennifer McKinley Director IAPI Policy Programs Branch Canada Border Services Agency Telephone: 343-291-7536 Email: [email protected] Small Business Lens Checklist 1. Name of the sponsoring regulatory organization: Canada Border Services Agency 2. Title of the regulatory proposal: Interactive Advance Passenger Information Initiative 3. Is the checklist submitted with a RIAS for the Canada Gazette, Part I or Part II? ☐ Canada Gazette, Part I ☑ Canada Gazette, Part II A. Small business regulatory design This table presents the Small business regulatory design. I Communication and transparency Yes No N/A 1. Are the proposed regulations or requirements easily understandable in everyday language? ☑ ☐ ☐ 2. Is there a clear connection between the requirements and the purpose (or intent) of the proposed regulations? ☑ ☐ ☐ 3. Will there be an implementation plan that includes communications and compliance promotion activities, that informs small business of a regulatory change and guides them on how to comply with it (e.g. information sessions, sample assessments, toolkits, Web sites)? ☑ ☐ ☐ 4. If new forms, reports or processes are introduced, are they consistent in appearance and format with other relevant government forms, reports or processes? ☑ ☐ ☐ Any new reporting requirements or processes introduced for small businesses under the IAPI regulatory proposal will be consistent with those already in place under the current API/PNR program and are thus consistent with existing relevant government processes. Any new reporting requirements or processes introduced for small businesses under the IAPI regulatory proposal will be consistent with those already in place under the current API/PNR program and are thus consistent with existing relevant government processes. Any new reporting requirements or processes introduced for small businesses under the IAPI regulatory proposal will be consistent with those already in place under the current API/PNR program and are thus consistent with existing relevant government processes. Any new reporting requirements or processes introduced for small businesses under the IAPI regulatory proposal will be consistent with those already in place under the current API/PNR program and are thus consistent with existing relevant government processes. Any new reporting requirements or processes introduced for small businesses under the IAPI regulatory proposal will be consistent with those already in place under the current API/PNR program and are thus consistent with existing relevant government processes. II Simplification and streamlining Yes No N/A 1. Will streamlined processes be put in place (e.g. through BizPaL, Canada Border Services Agency single window) to collect information from small businesses where possible? ☐ ☐ ☑ IAPI will leverage the existing streamlined processes of the API/PNR program to collect information from these small businesses. IAPI will leverage the existing streamlined processes of the API/PNR program to collect information from these small businesses. IAPI will leverage the existing streamlined processes of the API/PNR program to collect information from these small businesses. IAPI will leverage the existing streamlined processes of the API/PNR program to collect information from these small businesses. IAPI will leverage the existing streamlined processes of the API/PNR program to collect information from these small businesses. 2. Have opportunities to align with other obligations imposed on business by federal, provincial, municipal or international or multinational regulatory bodies been assessed? ☑ ☐ ☐ While obligations imposed on business by provincial and municipal regulatory bodies would not apply in this case, the IAPI regulatory proposal has been developed in close consideration of internationally recognized formats, definitions and standards of existing border control interactive systems for screening air travellers. In particular, the IAPI regulatory proposal has been developed to align with systems and guidelines imposed by international federal bodies, such as the International Air Transport Association (IATA) and the International Civil Aviation Organization (ICAO). While obligations imposed on business by provincial and municipal regulatory bodies would not apply in this case, the IAPI regulatory proposal has been developed in close consideration of internationally recognized formats, definitions and standards of existing border control interactive systems for screening air travellers. In particular, the IAPI regulatory proposal has been developed to align with systems and guidelines imposed by international federal bodies, such as the International Air Transport Association (IATA) and the International Civil Aviation Organization (ICAO). While obligations imposed on business by provincial and municipal regulatory bodies would not apply in this case, the IAPI regulatory proposal has been developed in close consideration of internationally recognized formats, definitions and standards of existing border control interactive systems for screening air travellers. In particular, the IAPI regulatory proposal has been developed to align with systems and guidelines imposed by international federal bodies, such as the International Air Transport Association (IATA) and the International Civil Aviation Organization (ICAO). While obligations imposed on business by provincial and municipal regulatory bodies would not apply in this case, the IAPI regulatory proposal has been developed in close consideration of internationally recognized formats, definitions and standards of existing border control interactive systems for screening air travellers. In particular, the IAPI regulatory proposal has been developed to align with systems and guidelines imposed by international federal bodies, such as the International Air Transport Association (IATA) and the International Civil Aviation Organization (ICAO). While obligations imposed on business by provincial and municipal regulatory bodies would not apply in this case, the IAPI regulatory proposal has been developed in close consideration of internationally recognized formats, definitions and standards of existing border control interactive systems for screening air travellers. In particular, the IAPI regulatory proposal has been developed to align with systems and guidelines imposed by international federal bodies, such as the International Air Transport Association (IATA) and the International Civil Aviation Organization (ICAO). 3. Has the impact of the proposed regulations on international or interprovincial trade been assessed? ☐ ☐ ☑ This regulatory proposal is not anticipated to have impacts on international or interprovincial trade as it is focused solely on air passenger conveyances to Canada. This regulatory proposal is not anticipated to have impacts on international or interprovincial trade as it is focused solely on air passenger conveyances to Canada. This regulatory proposal is not anticipated to have impacts on international or interprovincial trade as it is focused solely on air passenger conveyances to Canada. This regulatory proposal is not anticipated to have impacts on international or interprovincial trade as it is focused solely on air passenger conveyances to Canada. This regulatory proposal is not anticipated to have impacts on international or interprovincial trade as it is focused solely on air passenger conveyances to Canada. 4. If the data or information, other than personal information, required to comply with the proposed regulations is already collected by another department or jurisdiction, will this information be obtained from that department or jurisdiction instead of requesting the same information from small businesses or other stakeholders? (The collection, retention, use, disclosure and disposal of personal information are all subject to the requirements of the Privacy Act. Any questions with respect to compliance with the Privacy Act should be referred to the department’s or agency’s ATIP office or legal services unit.) ☐ ☐ ☑ The information required to comply with the proposed regulatory amendments is already collected by the CBSA for the existing API/PNR program and will not increase or duplicate the information requested from small businesses by other departments or jurisdictions. The information required to comply with the proposed regulatory amendments is already collected by the CBSA for the existing API/PNR program and will not increase or duplicate the information requested from small businesses by other departments or jurisdictions. The information required to comply with the proposed regulatory amendments is already collected by the CBSA for the existing API/PNR program and will not increase or duplicate the information requested from small businesses by other departments or jurisdictions. The information required to comply with the proposed regulatory amendments is already collected by the CBSA for the existing API/PNR program and will not increase or duplicate the information requested from small businesses by other departments or jurisdictions. The information required to comply with the proposed regulatory amendments is already collected by the CBSA for the existing API/PNR program and will not increase or duplicate the information requested from small businesses by other departments or jurisdictions. 5. Will forms be pre-populated with information or data already available to the department to reduce the time and cost necessary to complete them? (Example: When a business completes an online application for a licence, upon entering an identifier or a name, the system pre-populates the application with the applicant’s personal particulars, such as contact information and date, when that information is already available to the department.) ☐ ☐ ☑ While templates and standardized formatting for transmitting passenger information will be provided by the CBSA to airlines during the testing and certification process, specific information for each flight will be unique, making the pre-population of data largely unfeasible for the purposes of IAPI. While templates and standardized formatting for transmitting passenger information will be provided by the CBSA to airlines during the testing and certification process, specific information for each flight will be unique, making the pre-population of data largely unfeasible for the purposes of IAPI. While templates and standardized formatting for transmitting passenger information will be provided by the CBSA to airlines during the testing and certification process, specific information for each flight will be unique, making the pre-population of data largely unfeasible for the purposes of IAPI. While templates and standardized formatting for transmitting passenger information will be provided by the CBSA to airlines during the testing and certification process, specific information for each flight will be unique, making the pre-population of data largely unfeasible for the purposes of IAPI. While templates and standardized formatting for transmitting passenger information will be provided by the CBSA to airlines during the testing and certification process, specific information for each flight will be unique, making the pre-population of data largely unfeasible for the purposes of IAPI. 6. Will electronic reporting and data collection be used, including electronic validation and confirmation of receipt of reports where appropriate? ☑ ☐ ☐ 7. Will reporting, if required by the proposed regulations, be aligned with generally used business processes or international standards if possible? ☑ ☐ ☐ The IAPI regulatory proposal has been developed in close consideration of internationally recognized formats, definitions and standards of existing border control interactive systems for screening air travellers. Further, as a Beyond the Border commitment, IAPI has been developed to align with the technical specifications and requirements of the U.S. Customs and Border Protection interactive system for screening air travellers. The IAPI regulatory proposal has been developed in close consideration of internationally recognized formats, definitions and standards of existing border control interactive systems for screening air travellers. Further, as a Beyond the Border commitment, IAPI has been developed to align with the technical specifications and requirements of the U.S. Customs and Border Protection interactive system for screening air travellers. The IAPI regulatory proposal has been developed in close consideration of internationally recognized formats, definitions and standards of existing border control interactive systems for screening air travellers. Further, as a Beyond the Border commitment, IAPI has been developed to align with the technical specifications and requirements of the U.S. Customs and Border Protection interactive system for screening air travellers. The IAPI regulatory proposal has been developed in close consideration of internationally recognized formats, definitions and standards of existing border control interactive systems for screening air travellers. Further, as a Beyond the Border commitment, IAPI has been developed to align with the technical specifications and requirements of the U.S. Customs and Border Protection interactive system for screening air travellers. The IAPI regulatory proposal has been developed in close consideration of internationally recognized formats, definitions and standards of existing border control interactive systems for screening air travellers. Further, as a Beyond the Border commitment, IAPI has been developed to align with the technical specifications and requirements of the U.S. Customs and Border Protection interactive system for screening air travellers. 8. If additional forms are required, can they be streamlined with existing forms that must be completed for other government information requirements? ☐ ☐ ☑ No additional forms will be required. Information to be submitted by air carriers (including small businesses) will be the same as under the current API/PNR program. No additional forms will be required. Information to be submitted by air carriers (including small businesses) will be the same as under the current API/PNR program. No additional forms will be required. Information to be submitted by air carriers (including small businesses) will be the same as under the current API/PNR program. No additional forms will be required. Information to be submitted by air carriers (including small businesses) will be the same as under the current API/PNR program. No additional forms will be required. Information to be submitted by air carriers (including small businesses) will be the same as under the current API/PNR program. III Implementation, compliance and service standards Yes No N/A 1. Has consideration been given to small businesses in remote areas, with special consideration to those that do not have access to high-speed (broadband) Internet? ☐ ☐ ☑ All small businesses considered in the cost-benefit analysis for IAPI have access to the Internet and use it (or a service provider) to submit API data under the current CBSA API/PNR program. Either the MQ Network (through a service provider) or IAG/secure email transmission methods are used by small businesses. There are no airlines identified that do not have access to high-speed Internet. All small businesses considered in the cost-benefit analysis for IAPI have access to the Internet and use it (or a service provider) to submit API data under the current CBSA API/PNR program. Either the MQ Network (through a service provider) or IAG/secure email transmission methods are used by small businesses. There are no airlines identified that do not have access to high-speed Internet. All small businesses considered in the cost-benefit analysis for IAPI have access to the Internet and use it (or a service provider) to submit API data under the current CBSA API/PNR program. Either the MQ Network (through a service provider) or IAG/secure email transmission methods are used by small businesses. There are no airlines identified that do not have access to high-speed Internet. All small businesses considered in the cost-benefit analysis for IAPI have access to the Internet and use it (or a service provider) to submit API data under the current CBSA API/PNR program. Either the MQ Network (through a service provider) or IAG/secure email transmission methods are used by small businesses. There are no airlines identified that do not have access to high-speed Internet. All small businesses considered in the cost-benefit analysis for IAPI have access to the Internet and use it (or a service provider) to submit API data under the current CBSA API/PNR program. Either the MQ Network (through a service provider) or IAG/secure email transmission methods are used by small businesses. There are no airlines identified that do not have access to high-speed Internet. 2. If regulatory authorizations (e.g. licences, permits or certifications) are introduced, will service standards addressing timeliness of decision making be developed that are inclusive of complaints about poor service? ☐ ☐ ☑ There will not be any new regulatory authorizations introduced. The regulatory authorizations required under the IAPI initiative will be the same as those currently required under the CBSA API/PNR program. There will not be any new regulatory authorizations introduced. The regulatory authorizations required under the IAPI initiative will be the same as those currently required under the CBSA API/PNR program. There will not be any new regulatory authorizations introduced. The regulatory authorizations required under the IAPI initiative will be the same as those currently required under the CBSA API/PNR program. There will not be any new regulatory authorizations introduced. The regulatory authorizations required under the IAPI initiative will be the same as those currently required under the CBSA API/PNR program. There will not be any new regulatory authorizations introduced. The regulatory authorizations required under the IAPI initiative will be the same as those currently required under the CBSA API/PNR program. 3. Is there a clearly identified contact point or help desk for small businesses and other stakeholders? ☑ ☐ ☐ The CBSA will leverage current services provided to air carriers, including client account managers; the Advance Passenger Information (API)/Passenger Name Record (PNR), PAXIS Support Unit (APSU); and the High Availability Response Team (HART). The CBSA also manages the Border Information Service (BIS), which is an automated telephone service that answers incoming calls and provides general information on CBSA programs, services and initiatives through recorded scripts. Officers are available from Monday to Friday, 8:00 a.m. to 4:00 p.m., should callers require additional information. The BIS accepts calls not only from within Canada, but from overseas as well. The CBSA will leverage current services provided to air carriers, including client account managers; the Advance Passenger Information (API)/Passenger Name Record (PNR), PAXIS Support Unit (APSU); and the High Availability Response Team (HART). The CBSA also manages the Border Information Service (BIS), which is an automated telephone service that answers incoming calls and provides general information on CBSA programs, services and initiatives through recorded scripts. Officers are available from Monday to Friday, 8:00 a.m. to 4:00 p.m., should callers require additional information. The BIS accepts calls not only from within Canada, but from overseas as well. The CBSA will leverage current services provided to air carriers, including client account managers; the Advance Passenger Information (API)/Passenger Name Record (PNR), PAXIS Support Unit (APSU); and the High Availability Response Team (HART). The CBSA also manages the Border Information Service (BIS), which is an automated telephone service that answers incoming calls and provides general information on CBSA programs, services and initiatives through recorded scripts. Officers are available from Monday to Friday, 8:00 a.m. to 4:00 p.m., should callers require additional information. The BIS accepts calls not only from within Canada, but from overseas as well. The CBSA will leverage current services provided to air carriers, including client account managers; the Advance Passenger Information (API)/Passenger Name Record (PNR), PAXIS Support Unit (APSU); and the High Availability Response Team (HART). The CBSA also manages the Border Information Service (BIS), which is an automated telephone service that answers incoming calls and provides general information on CBSA programs, services and initiatives through recorded scripts. Officers are available from Monday to Friday, 8:00 a.m. to 4:00 p.m., should callers require additional information. The BIS accepts calls not only from within Canada, but from overseas as well. The CBSA will leverage current services provided to air carriers, including client account managers; the Advance Passenger Information (API)/Passenger Name Record (PNR), PAXIS Support Unit (APSU); and the High Availability Response Team (HART). The CBSA also manages the Border Information Service (BIS), which is an automated telephone service that answers incoming calls and provides general information on CBSA programs, services and initiatives through recorded scripts. Officers are available from Monday to Friday, 8:00 a.m. to 4:00 p.m., should callers require additional information. The BIS accepts calls not only from within Canada, but from overseas as well. B. Regulatory flexibility analysis and reverse onus This table presents the Regulatory flexibility analysis and reverse onus. IV Regulatory flexibility analysis Yes No N/A 1. Does the RIAS identify at least one flexible option that has lower compliance or administrative costs for small businesses in the small business lens section? Examples of flexible options to minimize costs are as follows: Longer time periods to comply with the requirements, longer transition periods or temporary exemptions; Performance-based standards; Partial or complete exemptions from compliance, especially for firms that have good track records (legal advice should be sought when considering such an option); Reduced compliance costs; Reduced fees or other charges or penalties; Use of market incentives; A range of options to comply with requirements, including lower-cost options; Simplified and less frequent reporting obligations and inspections; and Licences granted on a permanent basis or renewed less frequently. ☑ ☐ ☐ 2. Does the RIAS include, as part of the Regulatory Flexibility Analysis Statement, quantified and monetized compliance and administrative costs for small businesses associated with the initial option assessed, as well as the flexible, lower-cost option? ☑ ☐ ☐ 3. Does the RIAS include, as part of the Regulatory Flexibility Analysis Statement, a consideration of the risks associated with the flexible option? (Minimizing administrative or compliance costs for small business cannot be at the expense of greater health, security or safety or create environmental risks for Canadians.) ☑ ☐ ☐ 4. Does the RIAS include a summary of feedback provided by small business during consultations? ☑ ☐ ☐ V Reverse onus Yes No N/A 1. If the recommended option is not the lower-cost option for small business in terms of administrative or compliance costs, is a reasonable justification provided in the RIAS? ☑ ☐ ☐ Footnote a S.C. 2001, c. 25, s. 8(2) Footnote b S.C. 2012, c. 31, s. 267 Footnote c S.C. 1992, c. 28, s. 30(1) Footnote d R.S., c. 1 (2nd Supp.) Footnote 1 SOR/2003-219 Footnote 2 All present values and annualized values of cost and benefit estimates are in 2012 constant dollars and use 7% as the discount rate and 2015–2016 as the base year. Footnote 3 On June 26, 2014, the Agreement between Canada and the European Union (EU) on the transfer and processing of Passenger Name Record data (the Canada-EU PNR Agreement) was signed, replacing an older agreement with the EU that came into force in 2006. While Canada has taken steps to ratify the PNR Agreement, on November 20, 2014, representatives from the European Parliament proposed a motion to refer the PNR Agreement to the European Court of Justice (ECJ); this motion was passed by the European Parliament on November 25, 2014. As a result, the ECJ will now need to render an opinion on the Agreement’s compliance with EU law prior to EU ratification of the PNR Agreement. The equivalent U.S.-EU and Australia-EU PNR agreements were signed in 2011 and entered into force in 2012. Footnote 4 All present values and annualized values of cost and benefit estimates are in 2012 constant dollars and use 7% as the discount rate and 2015–2016 as the base year. Footnote 5 Hourly wage rate is based on Statistics Canada CANSIM Table 282-0070, including 25% overhead. Footnote 6 A medium/large air carrier is has been defined as an air carrier with 100 or more employees or over CAD 5,000,000 in annual gross revenues. Footnote 7 Direct Connect is a border declaration system that provides clients with a direct connection to the CBSA. This communication method requires an initial investment of $25,000 (+/− $5,000) to set up and $6,000 (+/− $2,000) in annual maintenance fees. Footnote 8 For more details about the Standard Cost Model, please refer to http://www.oecd.org/gov/regulatory-policy/34227698.pdf. Footnote 9 See the CBSA Web site for approved service providers: http://www.cbsa-asfc.gc.ca/security-securite/api_ipv_provfourn-eng.html. Footnote 10 See the CBSA Web site: http://www.cbsa-asfc.gc.ca/publications/dm-md/d1/d1-16-3-eng.html.

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