In the fast-paced world of commercial transport, where rewards and risks intertwine, cross-border can either be a seamless experience or a nerve-wracking nightmare for carriers of any size. With enhanced security measures in place, the journey across the border has become more challenging; demanding a heightened level of awareness and compliance. Whether you're a seasoned carrier or just starting out, there are a few key responsibilities that every commercial carrier must bear in mind when embarking on this cross-border adventure.
One of the most important pieces in commercial cross border transport for carriers will be the SCAC Code. In order to cross the border into the US, carriers must have their Standard Alpha Carrier Code (SCAC). Carriers must register with the Department of Transportation (DOT) and get their DOT or MC number. Once the carrier has been assigned their DOT number, they can register their company with NMFTA (National Motor Freight Traffic Association), so they can get their SCAC code, in order to be able to proceed in cross-border.
The SCAC is a two to four letter code used to identify carriers moving goods through the US, and is used by CBP (US Customs and Border Protection), to assess for their admissibility as well as to validate shipments entering the country. The code is required by all carriers dealing with a US government agency or the CBP. Shippers use the SCAC code when preparing documents, as they can use it to specify who is transporting the goods. Because each code is unique to the freight carrier, it is on the shipping documents.
You can apply for your SCAC code online on the NMFTA web page here. The code must be renewed once a year and it currently costs about $100 USD.
The Pre-Arrival Processing System (PAPS) is a US shipment type for goods that are clearing US customs or through CBP. This is the default shipment type for commercial goods entering the US by truck and is a requirement for the shipment. The PAPS helps expedite the release of shipments due to pre-arrival review and assessment, allowing CBP to assess for any risk by reviewing submissions through the automated systems in place.
Your PAPS number is a kind of shipment control number (SCN), and it is assigned to the shipment coming into the US. It tells the shipment apart and identifies the carrier for CBP, so that the goods can be assessed. The PAPS number begins with a four character SCAC code, and then a sequence of shipment control numbers.
We understand that time is of the essence when it comes to crossing the border, and any delays can have a significant impact on your operations. That's why you can track your PAPS in real-time with Zipments. Our easy to use platform ensures instant updates and visibility the entire way.
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The carrier assigns the PAPS number to a shipment and sends that number to the customs broker. The broker would use this number to request release of a shipment, so that the goods can clear customs. The carrier then prepares the ACE listing using this PAPS number. Goods can go to the border once CBP accepts the Manifest listing. The PAPS number is then used by customs officers to request or bring up the Manifest listing and either release goods or shift them over to further inspection.
We understand the challenges that come with preparing for cross-border. That's why we've introduced a hassle free service for your PAPS labels. You can purchase now, and have them shipped to you within one business day. No matter what your schedule looks like, Zipments can get you across the border quicker.
While it is not a requirement, some carriers may participate in the Customs Trade Partnership Against Terrorism (C-TPAT) program, which is voluntary and must be applied for. If approved, carriers are deemed to be less high risk and thus may be able to clear customs with more ease. Carriers can show their certification and will usually be able to fast track their customs clearance process as they are deemed to have a good record and history of compliance.
Highway carriers are responsible for filing their ACE Manifest. The Automated Commercial Environment (ACE) is the US version of the electronic manifest program intended to help strengthen border security and facilitate international trade. The system is designed to automate border processing and help speed up customs clearance. All highway carriers must file an electronic Manifest through ACE minimum one hour prior to arrival at the border, in order to clear customs. Both the ACE Manifest and the entry number by the customs broker for PAPS shipments must be on file with CBP minimum one hour before a truck arrives at the border.
You will need a valid SCAC code in order to be able to register to use the ACE Manifest. As drivers arrive at the border, they will present customs with required paperwork which includes the customs invoice and BOL. The PAPS barcode or sticker must be attached to the documentation and is used to help expedite the clearance process. Keep in mind that CBP does not stamp paperwork, so in order to have proof of release is to use a signed proof of delivery document.
Final Note
It is crucial for carriers to be well-prepared and knowledgeable about the specific requirements involved on either side of the border, and especially crossing into the United States. Remember that US based HOS (hours of service) rules apply while in the US and that interstating will not be allowed, so it is important to adhere to US regulation when operating within the country.
When it comes to navigating the complex world of customs, having the right tools and resources at your disposal can be a game-changer. Zipments can help. With a comprehensive suite of features, including PAPS labels and tracking, customs invoices, port information and more; Zipments provides everything you need to streamline your customs paperwork and tracking, allowing you to focus on what matters most - your core business