For Immediate Release –Return to News Release Main PageBORDER SECURITY SURCHARGE
Buffalo, NY, February 2004 – In April, 2003, the North American Transportation Council’s General Rate Committee established a per shipment border security surcharge on both LTL and TL cross-border shipments. The surcharge was implemented due to the increased cost of handling border-crossing freight since the September 11, 2001 attacks, due to the government-mandated changes in freight security as well as compliance with border crossing initiatives.
Border security initiatives such as the “Customs Trade Partnership Against Terrorism” (C-TPAT) and “Partners In Protection” (PIP) have been implemented to provide a secure and efficient border crossing. Trucking companies must register each driver and piece of equipment that crosses the border and must demonstrate adequate security throughout their freight system in order to meet the government guidelines for participation in C-TPAT and PIP. For this reason many trucking companies have invested heavily in security systems. There have also been mandated changes by both the Canadian and U.S. customs authorities concerning cross-border documents and security inspections.
Although the Border Security Surcharge has been very effective, it does little more than to offset a portion of the increased costs mentioned above. The surcharge does not offset productivity loss due to increased delay time at the border that is due in major part to an inadequate infrastructure at the border crossing points.
A secure North America is a goal we all share, but even with the Border Security Surcharge, it is having a negative impact on the operating costs of our member trucking companies.