Carriers Encouraged to Report Cabotage to CBSA
The Canadian Border Services Agency took decisive action on learning of an instance of cabotage last year in Vancouver. As the market becomes tighter and more competitive, members should be aware that CBSA will act on non-compliance with cabotage rules.
“Cabotage” occurs when a foreign-based company (in this case American) uses its own US-licensed equipment and drivers to move Canadian goods from point to point within Canada. Under both Canadian and US rules, it is illegal for US companies to use their own equipment to transport domestic goods within Canada.
However, it is legal for a US driver to do international trade by transporting US goods into Canada, and Canadian goods back into the states.
- When a US-based driver has a legitimate international load into Canada but room to pick up and transport other goods within Canada along the way (the route can’t divert from that required to deliver the international load)
- It is legal for the driver to work in Canada (i.e., the driver may require a work permit)
In cases of cabotage, the CBSA has the power to inspect and detain conveyances and assess duties, taxes, penalties, and other forms of enforcement as required under the Customs Act (for taxation regulations defined in the Customs Tariff) and/or the Immigration and Refugee Protection Act. Cabotage rules and the exceptions is complex, and the CBSA must approach suspected incidents case by case.
For more information, visit: BC Trucking - Carriers Encouraged to Report Cabotage to CBSA
Tia Chisholm, HUB International TRANSPORTATION
HUB International TRANSPORTATION specialists are based in Vancouver. Our longstanding relationships with the best providers in the business allow us to deliver the solution that serve you best. With HUB, you can run your business knowing that you are headed in the right direction.