Industry groups blast USDA’s inspections, fees at U.S./Canadian border

Industry groups blast USDAÆs inspections, fees at U.S./Canadian border    Two large industry groups, one in the United States and the other in Canada, blasted the U.S. Department of Agriculture's Animal and Plant Health Inspection Service interim rule to increase inspections and related fees for cargo crossing the U.S./Canadian border.
   'It's our firm belief that the Interim Rule represents a setback in our countries' joint efforts to enhance North American security and prosperity and is inconsistent with the aims of the SPP (Security and Prosperity Partnership of North America),' said the U.S. Chamber of Commerce and the Canadian Council of Chief Executives in a letter to the secretaries of the U.S. Agriculture, Commerce and Homeland Security departments.
   'The interim rule reflects a heavy-handed and disruptive approach to border management that is highly disproportionate to the associated risks, and that imposes unnecessary economic costs,' the groups added.
   The groups said the rule would diminish voluntary industry participation in the U.S. Customs-Trade Partnership Against Terrorism and the U.S.-Canada Free and Secure Trade programs.
   'Abrupt imposition of these APHIS inspections and fees could offset these improvements, provoke unnecessary delays at the border and create significant logistical challenges, particularly for importers and exporters of perishable food products,' the groups warned.
   The interim rule is targeted at stopping agricultural shipments transshipped through Canada from other countries, which may pose a pest risk to U.S. agriculture. CBP inspectors plan to apply the rule to agricultural goods transported by truck, vessel and rail.
   The proposed fees (per crossing and per transport mode) for fiscal 2007 are:
   * Vessel, $490.
   * Railcar, $7.75.
   * Plane, $70.50.
   * Truck, $5.25 (or an annual $105 decal).
   APHIS expects the fees to generate about $22.2 million in fiscal 2007.
   In addition to raising transportation and logistics costs at the border, the groups said the interim rule threatens trade relations between the United States and Canada.
   The groups recommend that the USDA withdraw or suspend the interim rule, which was published in the Federal Register on Aug. 25.
   'The United States and Canada should launch bilateral discussions to identify legitimate risks arising from cross-border shipments of fruits and vegetables and determine the most appropriate means of mitigating these risks while minimizing disruption to our bilateral trade relationship,' the groups' letter said.