THE CHALLENGE

The CBSA assists Transport Canada with the administration of the Canadian Motor Vehicle Safety Act and Canadian Motor Vehicle Safety Regulations by enforcing the conditions under which new and used vehicles may be imported at Canadian points of entry. The Motor Vehicle Safety Act regulates the importation of vehicles to reduce the risk of death, injury, and damage to property and the environment. A majority of these transactions involve the exchange of goods between the U.S. and Canada. New legislation was being proposed to modernize the present importation laws for motor vehicle imports.

Based on Bay’s extensive experience importing vehicles to and from the U.S. and Canada, Bay was asked to review and identify weaknesses within the proposed legislation that historically allowed thousands of non-complying and salvage vehicles to enter the Canadian commerce overlooking quality assurance and safety and to make recommendations to the House of Commons prior to the final reading of the bill based on it’s knowledge of customs import practices and procedures pursuant to the U.S. Federal Motor Vehicle Safety and the Clean Air Acts.

THE SOLUTION

Importers are responsible for determining whether the vehicles that they are about to ship comply with all the Transport Canada import requirements. These requirements are complex, dealing with a multiplicity of procedural issues covering categorization (new or salvage), admissibility, licensing, detention, storage, disposal, citizenship/ownership status.  The Bay Consulting recommendation simplified requirements for importers by outlining a new mechanism between Canadian Customs and Transport Canada to properly and effectively enforce the provisions related to compliance with the CMVSS. Further recommendations included updated electronic forms, border inspection procedures, new documentary requirements, an independent registrar to police the imports and a national motor vehicle inspection service to provide final safety checks following vehicle importations.

RESULTS

Bay Consulting provided professional testimony during the ensuing Parliamentary proceedings with the House of Commons. Bay’s testimony proposed the implementation of a responsible entity or Registrar of Imported Vehicles now commonly know as the RIV. This testimony became public record and the bill was passed which included all of the proposed recommendations. Pursuant to Bill S-8 and Memorandum D19-12-1, these changes are now included in the Canadian Motor Vehicle Safety Act with joint enforcement between Canadian Customs and Transport Canada. All vehicles are now certified by the RIV with final inspections through a national service franchise.