Clearance of Commercial Passenger Vessels Evaluation Study

Transcription

1 Clearance of Commercial Passenger Vessels Evaluation Study Final Report Program Evaluation Division Internal Audit and Program Evaluation Directorate May 2011

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3 Table of Contents Executive Summary... i 1. Introduction and Context... 1 Overview of the CBSA Clearance of Commercial Passenger Vessels Activities... 3 Governance, Roles and Responsibilities... 5 Evaluation Purpose and Scope... 5 Evaluation Methodology Key Findings Relevance Key Findings Performance Demonstration of Efficiency and Economy Key Conclusions, Recommendations and Management Response...30 Appendix A Acronyms and Abbreviations...36

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5 Executive Summary The Canada Border Services Agency s (CBSA) mandate is twofold: facilitate the movement of legitimate travellers and goods, and intercept those travellers and goods that pose a threat to Canada. The CBSA fulfills this mandate by providing integrated border services in the air, land and marine mode of transportation. The CBSA clears marine vessels, their crews, passengers and supernumeraries in accordance with the provisions set out in the Immigration and Refugee Protection Act (IRPA) and the Customs Act. Approximately 1,000 cruise ship calls are made in Canada every year 1, and just over one million cruise ship passengers entered Canada at Cruise Ship Operations (CSO) sites in fiscal year (FY) Between 2003 and 2008, there was a 24% increase in cruise passenger arrivals in Canada. 3 This represents an increase of more than 378,000 passengers over five years. The Pacific Region, led by Victoria, B.C., accounts for 71% of cruise passenger traffic, while the Atlantic Region, led by Saint John, N.B., accounts for 21% of cruise ship passengers. Border services officers (BSOs) board cruise ships upon arrival to ensure that all documentation has been completed and submitted. BSOs conduct examinations to verify the vessel s required safety and inspection certificates at the time of its initial arrival, monitor the gangway(s) while the ship is in port, collect completed E311 declaration cards, ensure that all persons and goods meet the requirements for entry, conduct secondary examinations as required, and collect applicable duties and taxes. These services are provided at designated sites. The CBSA currently services 24 CSO sites for the authorized disembarkation of passengers and crew of all types of cruise ships. Services outside normal operating hours at a designated site or services at a non-designated site are provided under pre-approved cost-recovery agreements. In addition, there are 12 authorized ports of entry (POEs) for the disembarkation of passengers and/or vehicles arriving by ferry and tour boat. In FY , 757,244 and 26,145 passengers entered Canada by ferry and tour boat, respectively. Reported expenditures for activities related to the clearance of commercial passenger vessels were just over $7.6M 4 for FY Evaluation Purpose and Scope This report presents the findings of the evaluation of the CBSA s clearance of commercial passenger vessel activities. The purpose of this evaluation was to examine the relevance (i.e. ongoing need for the activities and their alignment with the priorities of the 1 Source: Business Research & Economic Advisors (BREA), The Economic Contribution of the International Cruise Industry in Canada 2007, p Source: CBSA G11 Monthly Statistics, Source: Business Research & Economic Advisors (BREA), The Economic Contribution of the International Cruise Industry in Canada 2007, p This amount does not include costs related to the Employee Benefit Plan (EBP), accommodations and internal services. i

6 Government of Canada and the CBSA) and program performance (i.e. effectiveness and efficiency) in achieving expected results. The evaluation of the Clearance of Commercial Passenger Vessels was identified as a priority for FY in the CBSA Risk-Based Multi-Year Evaluation Plan, approved by the Executive Evaluation Committee in July The evaluation research was carried out between February and September Evaluation Methodology The CBSA Program Evaluation Division in the Internal Audit and Program Evaluation Directorate conducted this evaluation. Main lines of evidence included a review of documents; analysis of program data; observations made during site visits and in-depth interviews with key CBSA management at National Headquarters (NHQ) and in the regions, other government departments and with private sector stakeholders, including ferry and cruise ship authorities. Focus groups with BSOs were also conducted in the regions visited. Summary of Findings and Recommendations There is a current and ongoing need for a CBSA presence at marine POEs to clear commercial passenger vessels. The CBSA s activities are aimed at facilitating the entry of legitimate travellers and goods and at preventing inadmissible people and goods from entering Canada. The Agency s authority is derived from the CBSA Act, the Customs Act and the IRPA as they pertain to the international movement of travellers and goods, including passengers and crew arriving in Canada by cruise ships, ferries and tour boats. The activities support and are aligned with the Government of Canada s economic stimuli and national security priorities. For example, the Government has invested significantly over the last two years in the construction of cruise ship terminals and infrastructure to boost the economy and create jobs. In addition, the CBSA receives a total of $11.5M annually through marine security investments; however, the percentage dedicated to the clearance of commercial passenger vessels is not known. Cruise ships of more than 250 passengers and crew are not fully cleared at their first point of arrival. 5 BSOs may clear individuals from an immigration perspective by interviewing some passengers and crew based on pre-arrival information upon arrival. Customs clearance, on the other hand, takes place when passengers (and some crew) disembark. This process creates ambiguities as to the extent of the CBSA s authority when the cruise ship proceeds inland to other ports especially when pre-arrival targeting conducted prior to the next port of call finds inadmissible individuals who have already been admitted to Canada. Aligning the clearance of large cruise ships with other modes (i.e. air, highway and cruise ships with less than 250 passengers and crew) would decrease the need to 5 Source: People Processing Manual, CBSA, 2010, Paragraph 120. ii

7 monitor gangways; conduct compliance checks of ship stores, bars, casinos, waste and provisions and examinations several times on one voyage; and rationalize targeting activities. Once fully cleared at a CSO site, the cruise ship could stop at other ports within Canada without requiring further processing by the CBSA. 6 This would also reduce the number of cost-recovery agreements. The CBSA does not have a commercial passenger vessels targeting program and has no legislative authority to require cruise, ferry and tour operators to provide the CBSA with Advance Personal Information/Passenger Name Record (API/PNR). Some advance information is provided voluntarily by cruise ship operators; however, because it is not a legislative requirement, the information is not always received. When it is received, it is not always timely, complete or in a useable format. Furthermore, with each region doing their own targeting of passengers and crew, there is duplication of effort as targeting results are not communicated to staff at subsequent ports. In addition, only a portion of cruise ship passengers and crew are screened prior to arrival at any one port. As of April 1, 2010, a new functional authority for targeting was created to consolidate targeting activities within the CBSA. The CBSA is currently pursuing the expansion of API/PNR in the marine and rail modes of transportation. Facilities vary from port to port in terms of physical structure, tools and systems, and these differences impede the CBSA s ability to interdict inadmissible people and goods. While the air mode uses the Facilities Operating Requirements and Planning Guide as a baseline for facilities, there is currently no framework stipulating the minimum standards required for a marine port servicing cruise ships. 7 Ferries and tour boats are covered under the Land Border Facilities Design Guide, which is currently being revamped. Where some commercial passenger vessel facilities are equipped with clearance halls and secondary examination areas, others are located in garages, warehouses or in public areas. In light of these findings, the evaluation recommends that: Recommendation 1: The Programs Branch develop options and an implementation plan for streamlining the processes for the clearance of large commercial passenger vessels (including passengers and crew) to enhance efficiency and effectiveness; strengthening pre-arrival targeting efforts to avoid duplication; assessing feasibility of targeting 100% of passengers and crew; and aligning physical facility, tool and systems requirements with the preferred option. The CBSA collects considerable data and information on activities in the marine mode. However, the data required to make a determination on the extent to which the clearance of commercial passenger vessel activities are achieving expected results are either not broken down or categorized by vessel, activity, region or in some cases not available. 6 If a cruise line planned their first point of arrival to be at a non-designated site, they would still be required to pay cost recovery for the clearances services. 7 A facilities guide is in early stages of development for cruise ship specific requirements. iii

8 It was noted that although there are national Standard Operating Procedures (SOPs) and manuals for the processing of passengers and crew in the marine mode, these are not always adhered to in the regions. For example, the People Processing Manual clearly states that the gangway is to be monitored the entire time a ship is in port. Some ports have implemented a roving approach, which results in the gangway not being monitored for periods of time. While cruise ships are provided with the same services from port to port, the level to which these services are provided varies. Regional fora are in place for the CBSA and private stakeholders to discuss issues regarding the cruise industry. National committees, on the other hand, have been inactive for the last one to two years. Within the CBSA, regional management and BSOs stated that there is little communication between National Headquarters (NHQ) and the regions regarding activities and the sharing of best practices. In light of these findings, the evaluation recommends that: Recommendation 2: The Programs Branch enhance the delivery of the clearance of commercial passenger vessel activities by: a. Improving the collection of performance and financial information needed to manage and monitor the activities; b. Monitoring regional compliance with national SOPs and D-Memoranda; and c. Improving the communication between NHQ and regions by re-establishing a national forum. The CBSA receives many requests for new and enhanced services 8 from various corporate stakeholders. 9 Specifically, there is much pressure from the cruise ship industry to add designated sites in the Arctic and Newfoundland and Labrador. In addition, traffic statistics show that there is an increasing demand for CBSA services at non-designated sites and that a number of non-designated sites received considerable cruise traffic in While there is increasing demand for CBSA services and designation of sites, the evaluation found that in , ten CSO sites received no cruise ships. In light of these findings, the evaluation recommends that: Recommendation 3: The Programs Branch review existing CSO sites with the intent to align locations with current and anticipated future demands. 8 Many factors may lead to a decision to change the designation or hours of service of a POE, such as: legislative changes, new government, agency or departmental policy, ensure operational efficiencies, budgetary constraints/reduction, and the need to level the playing field for operators. 9 Source: Service Delivery Framework, Designation Services Unit, November Source: CBSA Inventory of Cost-Recovery Contracts ( to ), Designation Services Unit. iv

9 1. Introduction and Context The Canada Border Services Agency s (CBSA) mandate is twofold: facilitate the movement of legitimate travellers and goods, and intercept those travellers and goods that pose a threat to Canada. The Agency administers and enforces the Customs Act, the Immigration and Refugee Protection Act (IRPA) and other government departments requirements as they pertain to the international movement of travellers and goods, including passengers and crew arriving in Canada by cruise ships, ferries and tour boats. Approximately 1,000 cruise ship calls are made in Canada every year 11, and just over one million cruise ship passengers entered Canada at Cruise Ship Operations (CSO) sites in fiscal year (FY) In its early days, the cruise industry involved transatlantic voyages on ocean liners. Over the last several decades, it has evolved into full-service, tourism-oriented cruises. These floating resort-style hotels offer a realm of activities both onboard and onshore, ranging from daily excursions in a different country every day to swimming pools, spas, minigolf, theme parks and even rock climbing. In fact, cruise ships have become the largest passenger conveyance in the world, with some ships carrying more than 6,200 passengers and 2,300 crew on a single voyage. The three highest-volume ports of entry (POEs) for cruise ships are Vancouver and Victoria in British Columbia, and Saint John in New Brunswick (Exhibit 1). A 2007 study 12 conducted by Business Research & Economic Advisors (BREA) on behalf of Canadian cruise ship associations showed that there was a 24% increase (378,000 passengers) in cruise passenger arrivals in Canada between 2003 and Source: Business Research & Economic Advisors (BREA), The Economic Contribution of the International Cruise Industry in Canada 2007, p Ibid. 1

10 Exhibit 1: Number of Cruise Ship Passengers and Crew Processed in Canada by Cruise Ship Operation (CSO) Site, FY Vancouver, BC 412,788, 31% Charlottetown,PE 7,836, 1% Victoria, BC 466,786, 36% Other, 34,969, 3% Corner Brook, NL 9,915, 1% St. John's, NL 5,827, 0% Toronto, ON 70, 0% Sydney, NS 10,503, 1% Thunder Bay, ON 818, 0% Halifax, NS 77,346, 6% Saint John, NB 157,178, 12% Prince Rupert, BC 54,728, 4% Québec City, QC 79,862, 6% Montréal, QC 32,814, 2% Source: CBSA G11, Cruise Ships roll-up, FY In FY , 757,244 passengers arrived in Canada by ferry, down from 836,952 passengers in (Exhibit 2). Forty-three percent of international ferry passengers arrive in Victoria, B.C. The Blackball ferry terminal in Victoria receives the greatest number of passengers. Yarmouth, N.S., received five percent of ferry passengers in (39,977); however, this ferry service was closed before the season started, with no indication that the ferry service will resume. 2

11 Exhibit 2: Number of Passengers and Crew Processed in Canada by FERRY Operation Site, FY Victoria, BC 324,363, 43% Sidney, BC 59,926, 8% Deer Island, NB 8,344, 1% Fortune, NL 6,862, 1% Yarmouth, NS 39,977, 5% Other, 100,803, 13% Point Alexandria, ON 23,814, 3% Walpole Island, ON 102,774, 14% Sombra, ON 169,378, 22% Pelee Island, ON 4,253, 1% Prince Rupert, BC 14,001, 2% Dawson City, YT 3,552, 0% Source: CBSA G11, Ferry roll-up, FY Only two POEs are available for the clearance of tour boats. In , the CBSA processed 8,148 passengers and crew in Rockport, Ont. and 17,997 passengers and crew in Gananoque, Ont. The tour boat traffic to these sites decreased by 25% and 7% respectively, compared to the previous fiscal year. Overview of the CBSA Clearance of Commercial Passenger Vessels Activities The clearance of commercial passenger vessels takes place at designated sites. 13 CSO sites are the authorized disembarkation sites for cruise ship passengers and crew, while FERRY sites are the authorized disembarkation sites for passengers and/or vehicles arriving aboard ferries. The CBSA currently services 24 CSO sites and 12 FERRY sites. 13 Under the authority of section 5 of the Customs Act, designated CBSA offices are locations where travellers and commercial importers and exporters may fulfill their reporting obligations when entering and/or leaving the country. 3

12 Border services officers (BSOs) board cruise ships upon arrival to ensure that all documentation has been completed and submitted. 14 They verify the required safety and inspection certificates, monitor the gangway(s) while the ship is in port, collect completed E311 traveller declaration cards 15, ensure that all persons and goods meet the requirements for entry into Canada, conduct secondary examinations as required and collect applicable duties and taxes. In addition, BSOs are required to conduct various inspections to fulfill other government departments (OGD) requirements. For example, BSOs inspect waste storage and removal and verify compliance with the Health of Animals Regulations and the Plant Protection Act and Regulations. Depending on the results of examinations, BSOs may issue an Administrative Monetary Penalty (AMP) or take an enforcement action. As large cruise ships are not fully cleared at the first POE, they are subject to reporting requirements and examination at all subsequent ports of call in Canada. Standard practice is to fully clear small cruise ships of 250 passengers and crew or less 16 at the first POE. 17 If they are not, then they are subject to the same reporting and examination requirements at subsequent ports of call. Cruise ships representatives 18 must submit a Pre-Arrival Notice 19 to the CBSA a minimum of 96 hours before the cruise ship's arrival at the first POE. The information is sent either by or by fax to the CBSA office responsible for the clearance of the cruise ship. The cruise ship representative may submit passenger information seven days in advance. 20 They must also submit a conveyance report as well as cargo reports in accordance with Advance Commercial Information regulations for any commercial cargo imported. Services outside normal operating hours at a designated site or services at a nondesignated 21 site are provided under cost-recovery agreements. The authority to enter into cost-recovery agreements is derived from section 13(2) and section 167(1) of the Customs Act, which provide the CBSA with the ability to charge for such special services. 14 Documents include: General Declaration (A6), Ship Stores Declaration (E1), last port of clearance, goods to be landed list, passenger list, Cruise Vessel/Passenger and Crew Arrivals (E63-1), repatriating crew list with reason for leaving, joining crew list, crew s effect declaration (Y14), any letter of special permission or documentation concerning port-specific requirements, stowaway notification (when required), and Notice of deserters/inadmissible Crew Member (IMM0202, when required). If the trip time from port to port is less than 96 hours, the notice must be sent prior to the ships departure. In the case of a remote port, the pre-arrival notice must be submitted 10 days prior to arrival. 15 Travellers entering Canada complete a CBSA Declaration Card. The information from the declaration card is used for CBSA control purposes. 16 In instances where the number of passengers and crew is low enough to be physically manageable and the risk has been assessed as low, a full CBSA clearance may be completed at the first port of entry. To be considered a small cruise ship, this number has been determined to be 250 passengers and crew or less. 17 Source: People Processing Manual, Primary Processing, Cruise Ships, p Depending on the cruise line, the ship representative may be the ship agent, purser, captain or another authority. 19 The cruise ship Pre-Arrival Notice or form BSF136 should include: name and call sign of cruise ship; name of the agent representing the cruise ship; total number of passengers and crew; total number of repatriating crew; date and time of arrival and departure; expiry dates of ship s certificates; and any additional port-specific information required to facilitate clearance. 20 Also referred to as Before Arrival Information. 21 In response to a request by the cruise ship, the CBSA may choose to offer services outside normal port operating hours or at non-designated sites on a cost-recovery basis. 4

13 Passengers and goods disembarking from ferries and tour boats are subject to regular reporting requirements. 22 Ferries and tour boats must file one inward and one outward report (A6 General Declaration) with the CBSA at the close of each day of operation. Each report must specify the number of trips made during the day and the total number of passengers carried. Governance, Roles and Responsibilities At the CBSA National Headquarters (NHQ), three areas are responsible for commercial passenger vessel activities: The Traveller Border Programs Division within the Border Programs Directorate of the Programs Branch develops policies and procedures, and provides functional direction to the regions in support of the movement of people and goods on cruise ships, ferries and tour boats. The Designation Services Unit within the Border Programs Directorate of the Programs Branch provides guidance on requests for new or enhanced border services, and reviews and negotiates applications for cost-recovery services. The Border Operations Directorate within the Operations Branch provides operational support and guidance to the regions. It is also the NHQ link with the regions. Regional staff, under the direction of Regional Director General, is responsible for the delivery of program activities. BSOs are responsible for the clearance of cruise ships, ferries and tour boats and their passengers and crew. Evaluation Purpose and Scope The evaluation of the Clearance of Commercial Passenger Vessels activities was identified as a priority for completion in fiscal year in the CBSA Risk-Based Multi-Year Evaluation Plan, approved by the Executive Evaluation Committee in July The purpose of the evaluation was to examine the relevance and performance of the CBSA s commercial passenger vessel clearance activities. The CBSA s Program Evaluation Division carried out the evaluation research between February and September The evaluation focused only on those activities delivered by the CBSA. The scope of the evaluation is summarized in Exhibit Completion of the CBSA Declaration Card (E311) for passengers and procedures outlined in Memorandum D3-5-2, Marine cargo import movements for goods. 5

14 Exhibit 3: Scope of the Evaluation Included in the Evaluation Processing of crew and passengers of cruise ships and ferries and tour boats (CSO, FERRY) Clearance of cruise ships, ferries and tour boats and related cargo Monitoring of gangways Transmission and quality of pre-arrival information Pre-arrival targeting activities Designation and cost-recovery services Excluded from the Evaluation Processing of crew and passengers of commercial cargo vessels (C/VESS 23 ) Processing of Recreational Boats (pleasure crafts) (TRS/M 24, DRS/M 25 ) In consultation with key CBSA stakeholders, the evaluation team developed a logic model for the clearance of commercial passenger vessels activities. The following immediate and intermediate outcomes were identified: Service delivery in accordance with prescribed standards and agreements (Immediate Outcome) Identification and interdiction of inadmissible people and goods (Immediate Outcome) Compliance of travellers, goods and conveyances/vessels with CBSA and OGD requirements (Immediate Outcome) Enhanced border services and client satisfaction through the availability of extended service agreements, i.e. cost recovery (Intermediate Outcome) The evaluation questions are provided in Exhibit Commercial Vessel authorized marine site where commercial vessels other than ferry boats or cruise ships for reporting to CBSA. 24 Telephone Reporting Site - Marine location at which non-commercial, private and passenger marine vessels can report entry into Canada to CBSA by telephone. 25 Direct Reporting Site for Marine Private Vessel CBSA location where private recreational marine boats may directly report in person. 6

15 Exhibit 4: Evaluation Questions Evaluation Issue Relevance Performance - Achievement of Expected Outcomes Efficiency and Economy Evaluation Questions To what extent do the clearance of commercial passenger vessels activities address a continued need and is aligned with federal and CBSA priorities, roles and responsibilities? Is the rationale for the clearance of commercial passenger vessels activities valid and do they address an ongoing need? Are the clearance of commercial passenger vessels activities aligned with Federal Roles and Responsibilities and with CBSA priorities? Are the activities achieving the expected results? How effective are the management and delivery of the clearance of commercial passenger vessels activities? To what extent have the clearance of commercial passenger vessel activities contributed to the identification and interdiction of inadmissible people and goods? To what extent do the clearance of commercial passenger vessel activities ensure compliance for travellers, goods and conveyances/vessels with CBSA and OGD requirements? To what extent do CBSA activities enhance border services and client satisfaction through the availability of extended service arrangements (cost recovery)? Demonstration of efficiency and economy Are the commercial passenger vessels clearance activities costeffective? Cost-efficient? Are there more efficient and effective models to achieve the expected results? Evaluation Methodology Review and Analysis of Documents and Data CBSA documentation reviewed include reports such as the Land Border Systems Review, the Border Management Action Plan, the Air Core Services Review, the draft Marine Core Services Review, and relevant internal correspondence regarding the implementation and management of CBSA people processing activities and clearance of commercial passenger vessels. Relevant Acts and Regulations, Standard Operating Procedures (SOPs) and CBSA Enforcement manuals, D-Memoranda, CBSA training curriculums, communication and CBSA Internet materials were also reviewed. In addition, program data from CBSA databases 26 were analyzed, as were financial data provided by the Comptrollership Branch. Literature Review The evaluation team reviewed design, delivery and performance documents of similar activities in other countries such as the United States and European Union countries for 26 Consolidated Management Reporting System (CMRS) and Integrated Customs Enforcement System. 7

16 comparison purposes. Reports and statistics on the potential economic impacts of the cruise ship, ferry and tour boat industry in Canada were also reviewed. In-depth Interviews with Key Stakeholders One-on-one and group interviews were conducted (Exhibit 5) with 73 individuals. 27 The interviews with key stakeholders covered the design and management of different aspects of people processing and commercial passenger vessel clearance in the marine mode, and their views and explanations of data and results obtained from other research methodologies. Telephone interviews were conducted with CBSA management in regions and districts not visited to understand opportunities and challenges in low volume areas. These numbers are also included in Exhibit 5. Exhibit 5: Interviews Conducted for the Evaluation Number of one-on-one Number of Group Interview Category Interviewees Interviewees CBSA HQ management and staff CBSA Regional management and 17 staff OGDs and private sector 9 stakeholders 30 5 Total Site Visits CBSA offices located in the Pacific (Vancouver, Victoria), Atlantic (Halifax, Saint John), Northern Ontario (Rockport, Gananoque) and Quebec regions (Montréal, Québec City) were visited. The site visits selected had the largest volume of passengers and crew, and received a variety of vessel types. The sites were identified through consultation with CBSA program management both at NHQ and in the regions. The site visits enhanced the evaluation team s understanding of how the clearance of commercial passenger vessels is delivered and managed, how it contributes to the achievement of CBSA and program outcomes, and related strengths and limitations of current approaches. Focus Groups The evaluation team conducted five focus groups, one each in Halifax, N.S., Montréal, Que., Québec City, Que., Victoria, B.C., and Vancouver, B.C. Each focus group was made up of three to seven BSOs whose primary work activities were the processing and clearance of commercial passenger vessels. The input from these groups contributed to 27 The high number of interviewees for this evaluation is attributable to the structural reorganization and managers, directors and director generals bringing the senior officer responsible for the related activities to the interview. 28 CBSA headquarters staff, including senior management and program management in the Programs, Operations, Human Resources, and Technology branches. 29 CBSA regional management and staff involved in clearance of cruise ships, ferries, tour boats, and their passengers and crew (e.g. Regional Directors General, Directors, Chiefs, Superintendents). 30 This includes private sector stakeholders (e.g. Ferry and Cruise ship authorities) and OGD (e.g. Public Health Agency of Canada, Transport Canada). 8

17 the evaluation team s understanding of the operational context in which BSOs carry out their activities. Evaluation Research Limitations As a result of a major organizational restructuring of CBSA s NHQ, effective April 1, 2010, new roles and responsibilities, as well as budgets associated with the activities, were not always clear. Consequently, the evaluation had limited information to determine the efficiency or effectiveness of the new management structure. The CBSA received funding to enhance its capacity for the clearance of commercial passenger vessels. From to , it received $14.9M and $3.4M of ongoing funding through the Smart Border Declaration submission (Cruise Ship Inspections Initiative), and $14.4M for the same period and $2.7M of ongoing funding through the Public Safety and Anti-Terrorism submission (Passenger and Crew Screening Initiative). From to , it received $20.4M and $4.5M of ongoing funding though Securing Canada s Maritime Transportation System submission (Screening Marine Crews and Passengers initiatives within the Great Lakes System). However, linking activities in the clearance of commercial passenger vessels with specific funding was not always possible, because the activities involved in clearing commercial passenger vessels do not represent a discrete program. As such, they are not treated as a single budgetary unit. To determine the overall cost to the Agency to deliver these services, and consequently whether they are cost-effective, was not possible. While the CBSA collects considerable data and information on activities in the marine mode, the data contained within existing information management systems are not broken down or categorized by type of vessel, activity, region, etc. It was, therefore, impossible to determine how many or what percentage of passengers and crew are screened, how many were examined and their resultant, the number of vessel rummages or any enforcement and compliance actions. The inability to make such determinations constrained the ability of the evaluation to determine the extent to which expected outcomes had been achieved. 2. Key Findings - Relevance Is the rationale for the clearance of commercial passenger vessels activities valid and do they address an ongoing need? There is a current and ongoing need for a CBSA presence at marine POEs to process incoming commercial passenger vessels, passengers and crew. In Canada, it is expected that overall cruise tourism will continue to increase. The 2007 Economic Contribution of the International Cruise Industry in Canada report estimated 9

18 that in 2007, cruise calls in Canada generated $1.1 billion in direct spending by cruise lines and passengers and crew, and created 9,791 annual full- and part-time jobs paying $344M in wages and salaries. 31 Direct spending between 2003 and 2007 increased by 16% from the $965M reported in For FY , Saint John, N.B., reported their biggest year in terms of number of passengers to date and Victoria, B.C., saw a large increase. Ship agents interviewed for this evaluation shared that they expect more ships with a greater passenger and crew capacity in the 2011 and 2012 seasons. The U.S. Passenger Vessel Act impacts the number of cruise ships arriving in Canada. As long as it is in effect and there is a demand for Alaskan and New England cruises, Canada will receive high volumes of international cruise traffic. The 1886 Passenger Vessel Act states that no foreign vessel shall transport passengers between ports or places in the United States, under penalty of $200 for each passenger so transported or landed. 32 As such, a foreign-flagged cruise ship departing Seattle for Alaska must stop at a port in Canada. 33 Of the 546 registered cruise ships in the world, only 30 (5.5%) are registered in the United States. 34 As a result of both the increasing number of cruise ships and the Passenger Vessel Act, the demand for CBSA services at marine POEs will continue. Are the clearance of commercial passenger vessels activities aligned with federal roles and responsibilities and with CBSA priorities? Government-wide economic stimuli priorities include cruise ship terminal infrastructure development and enhancements. The CBSA s clearance of commercial passenger vessels activities are required to support the federal government initiatives. In the 2008 and 2010 Speeches from the Throne, the Government of Canada identified both economic security and national security as government priorities, recognizing the need to invest in infrastructure that contributes to increased trade, efficient movement of goods and people, and economic growth. The federal government has invested in infrastructure projects to support the cruise ship industry. For example, the Canada s Economic Action Plan objectives are to create jobs and boost the economy, and to help communities improve their infrastructure. The federal government s investments in the shore power facility at the Canada Place cruise ship terminal in Vancouver, B.C. ($9M), the construction of the Nanaimo, B.C. ($22M), and Campbell River, B.C. ($16M) cruise ship terminals, and a $60M-investment over 31 Source: Business Research & Economic Advisors (BREA), The Economic Contribution of the International Cruise Industry in Canada 2007, p Source: The Jones Act, Worldwide Travel & Cruise Associates Inc., 33 Over time, a number of exceptions have been made. Foreign-flagged cruise ships may carry passengers from one U.S. port to another as long as they return them to the same port (i.e. a "cruise to nowhere"). Foreign vessels may also call at intermediate U.S. ports as long as no passenger permanently disembarks and the vessel makes at least one call at a foreign port. 34 Source: World Ship Register, 10

19 five years to develop cruise ship ports of call in Quebec will not only contribute to the strengthening of the tourism industry and the Canadian economy, but will also increase the demand for CBSA services. Activities related to the clearance of commercial passenger vessels and their passengers and crew are aligned with the CBSA s strategic priorities and outcomes. The CBSA s authority for the clearance of commercial passenger vessels is derived from the Customs Act and the IRPA. The activities support CBSA s strategic outcomes of integrated border services that support national security and public safety priorities and facilitates the free flow of persons and goods, 35 by ensuring that travellers, goods, and conveyances/vessels are compliant with CBSA and OGD requirements and through identification and interdiction of inadmissible people and goods. Furthermore, by screening the passenger and crew information submitted to the CBSA by the shipping agents, officers identify high-risk people as early as possible before their arrival at a POE. Identifying such individuals prior to their arrival at a Canadian POE contributes to the CBSA s strategy of an expanded security zone by pushing the border out beyond the actual Canadian border. The CBSA directly supports the federal government s marine security priorities by providing integrated border services to all vessels arriving in Canada, including cruise ships, ferries and tour boats. The federal role in marine security is clearly established in several federal statutes, regulations and initiatives, including the Marine Transportation Security Act and Regulations and the Marine Security Initiative. Following the 9/11 terrorists attacks in the United States, the Government of Canada put in place measures to better protect marine infrastructure and ports through the implementation of the International Marine Organization Ship and Port Facilities Code. 36 These elements will ensure that Canada meets current international standards and obligations, including those developed by the International Maritime Organization. 37 Between 2003 and 2008, the Government of Canada invested $7.7B to fight terrorism and reinforce public security through the Public Safety and Anti-Terrorism and SMART Border initiatives. Additionally, six federal government departments and agencies, including the CBSA, implemented marine security projects. Of the $60M that was 35 Source: Canada Border Services Agency, Report on Plans and Priorities, 36 The International Ship and Port Facility Code is implemented through the International Convention for the Safety of Life at Sea (SOLAS). The Code has two parts, one mandatory and one recommended. The Code takes the approach that ensuring the security of ships and port facilities is a risk management activity and that to determine what security measures are appropriate, an assessment of the risks must be made in each particular case. The purpose of the Code is to provide a standardized, consistent framework for evaluating risk, enabling governments to offset changes in threat with changes in vulnerability for ships and port facilities through the determination of the appropriate security levels and corresponding security measures. 37 Source: FAQ on ISPS Code and maritime security, International Maritime Organization, 11

20 provided for marine security, the CBSA 38 received $14.4M 39 over five years for enhancing passenger and crew screening. 3. Key Findings Performance How effective are the management and delivery of the clearance of commercial passenger vessels activities? Standard Operating Procedures and manuals are in place for the clearance of cruise ships, ferries and tour boats. However, they are not consistently followed. Three key resources apply to the clearance of commercial passenger vessels. The People Processing Manual outlines the CBSA requirements and policies for carrier reporting and CBSA processing of passengers, crew and their goods that arrive in Canada by cruise ships, ferries and tour boats. The Passenger and Crew Screening SOPs provide guidelines to BSOs who conduct examinations of foreign nationals aboard inbound and outbound vessels. The Enforcement Manual supports and guides CBSA officers in the execution of their enforcement related responsibilities. All manuals and SOPs are updated as required. CBSA regional management and BSOs interviewed expressed a concern with the lack of guidelines that sets out minimum standards for physical facilities, tools and systems required at marine POEs in order to adequately process vessels, passengers and crew. They were of the opinion that this has led to variations in delivery, targeting and examination across the regions. The People Processing Manual requires that when a ship is in port, the gangway is to be monitored. 40 While CBSA personnel at some ports monitor the gangways while the ship is in port, at others they do not. Gangway monitoring is regarded by regional management and BSOs alike as a low value activity. As an alternative, the Southern New Brunswick and Prince Edward Island District adopted a roving strategy 41 whereby BSOs conduct rummages, cabin searches, in-depth interviews with identified travellers and crew, and other activities that would more likely mitigate the risks. No data were available to determine whether this roving strategy has resulted in enforcement actions. 38 At the time, the funding was directed to Citizenship and Immigration Canada (CIC). 39 Source: Public Security and Anti-Terrorism Addressing vulnerabilities in Canada s marine security, Treasury Board Submission, People Processing Manual, Chapter 6, p The primary goal of roving is to identify individuals who may be involved in the unlawful importation/exportation of goods, particularly those that are prohibited, controlled, or regulated in Canada. Source: Customs Enforcement Manual Part 3 Chapter 4, Roving Policy and Procedures. 12

21 The clearance of cruise ships in terms of reviewing documentation and conducting verification is done differently in different regions and ports. At some ports, BSOs board the ship to process the paperwork (as per the People Processing Manual), while at others, BSOs arrange to have the documentation brought to the appropriate CBSA office by the ship authorities. The Manual clearly states that the BSOs will board the vessel upon arrival to ensure that documentation is submitted. 42 Some current practices are therefore in contradiction to the stated process. The evaluation noted that the processes followed in some ports may be inconsistent with the requirements of the Customs Act and IRPA. For example, BSOs should conduct interviews with travellers and crew upon arrival. According to the Customs Act, anyone entering the country regardless of nationality, must present himself or herself to an officer and answer truthfully any questions asked by the officer 43. In addition, the IRPA states that every person seeking to enter Canada must appear for an examination to determine whether that person has a right to enter Canada or is or may become authorized to enter and remain in Canada. 44 While the number of passengers and crew aboard large cruise ships makes this requirement difficult to meet, in some ports BSOs do not meet with travellers and crew and simply have the passports of the individuals brought to the CBSA office by cruise ship personnel. In the event that an individual is deemed inadmissible to Canada and considered a risk, the individual will be removed. For individuals who are inadmissible but do not represent a risk, officers may choose to issue an allowed-to-leave 45, but permit the passenger to continue the cruise. BSOs inform the ship s security officer or another authority that this particular passenger is to remain on board at all times. This remain-on-board order is typically done verbally, although Montréal Marine Operations has the cruise ship authority sign a form acknowledging the remain-on-board order. However, BSOs issuing the allowed-to-leave often do not always inform the subsequent ports that such an order has been given; therefore, there is no assurance that the individual is complying with the order. Regional fora are in place for CBSA and private sector stakeholders to discuss issues related to the cruise industry. However, at the national level, the primary national CBSA/industry committee has been inactive for the last one to two years. Cruise industry representatives interviewed for this evaluation indicated that they have a good working relationship with the CBSA at a regional level and were satisfied with the services they are receiving from the CBSA. BSOs do their job well and are able to clear commercial passenger vessels in a timely manner, allowing passengers to disembark quickly for their day trips and tours. The Port Authority for Vancouver holds an annual meeting with representatives from the CBSA, shipping agents, cruise lines, OGDs and 42 Source: People Processing Manual, Chapter 6, p Source: Subsection 11(1) of the Customs Act. 44 Source: Subsection 18(1) of the IRPA. 45 Before writing an inadmissibility report under A44(1), officers shall, at a port of entry, always consider allowing the person the opportunity to leave Canada voluntarily. If officers at a port of entry allow persons to withdraw their application to enter Canada, then the officers must give them an Allowed to Leave Canada form (IMM 1282B). 13

22 local authorities (i.e. City of Vancouver, Vancouver Police Department) to discuss issues and successes from the past cruise season and schedules for the upcoming season. This allows for continuous improvement and facilitation because cruise planning and scheduling is done two years in advance. This was regarded as a best practice by the cruise ship industry. However, the same representatives reported that better communication between key players at the national level would be beneficial. The Cruise Ship Long Range Planning Committee 46 was instituted to share information and engage in meaningful discussions and solutions that support the mandates and missions of both the CBSA and the cruise industry. 47 Although this committee is supposed to meet twice a year 48, it was last convened in December The cruise ship industry sets the cruise schedule two years in advance. Industry representatives indicated that the committee offers an excellent forum to jointly discuss and plan to better meet the demands of the upcoming cruise seasons. The CBSA Marine Managers Conference is supposed to be held annually. It provides a forum at which key issues in the marine environment are discussed, including cruise ship issues. However, it has not been held since October 2008, which in the opinion of CBSA regional management and BSOs has resulted in little communication between NHQ and regions regarding activities and best practices. Representatives from Transport Canada reported that additional communication with the CBSA would be beneficial. One issue pertaining to the port identification cards required under the Marine Transportation Security Regulations was raised by Transport Canada, various port authorities and CBSA management and staff. 50 CBSA officers require such cards to gain access to marine ports and docks, although local police and the Royal Canadian Mounted Police are exempt. Negotiations to ensure the security of officers personal information have taken place at port level, resulting in cards with different information depending on the port. It is anticipated that Transport Canada s 2011 regulatory amendments will include a provision that will allow any Government of Canada employee, while in the performance of their duty at a marine facility or on a vessel at a marine facility, to enter a restricted area once their security clearance is confirmed by Transport Canada. 46 Members include CBSA, the Shipping Federation of Canada, Great Lakes Cruising coalition, Northwest Cruise Ship Association, Cruising Association of Newfoundland and Labrador (CANAL) and The Capital Hill Group. 47 Source: Cruise Ship Long Range Planning Committee: Terms of Reference p Source: Cruise Ship Long Range Planning Committee: Terms of Reference p The committee last met via conference call on December 9, A tentative date for the next conference call or meeting has not yet been set. 50 Officers in one region felt that the information that they had to provide to the third party stakeholder and the fact that the ID cards have to be visible at all time, might represent a threat to their health and safety as officers. The restricted area pass includes: the name, height and eye colour of the person to whom the pass has been issued, a clear photograph of the person's head and shoulders or other facial image and an expiry date. 14

23 Mandatory marine-specific training is provided to the BSOs by the regions, but the full training is not always delivered due to resource constraints. BSOs must have completed the Vessel-in-service 51 or the Marine-in-service (MIS) 52 course, which are delivered regionally, in order to board vessels and complete clearances. These courses are also prerequisites for all training offered by the Marine Centre of Expertise, such as the vessel rummage and the shipboard confined space entry courses. Because ferries are considered an extension of the highway mode and tour boats are small conveyances, these courses are not mandatory for officers to board these vessels. Depending on the needs of the port, the five day, in-service course is reduced to four days to focus on marine vessels or three days to focus on containers. However, the MIS was shortened to only one or two days in Victoria, B.C., due to resource constraints. This resulted in BSOs not receiving all of the required training to complete the MIS as per the national guidelines. The Human Resources Branch is aware of this issue and is working on a resolution. There are limited data available specifically on the clearance of commercial passenger vessels. BSOs collect statistics of their daily activities, which are submitted monthly to G11 53 at NHQ where they are rolled up for a national picture. Since the G11 data are not broken down by cruise ship 54 and ferry 55 clearances, the Operational Monitoring and Reporting Section of the Border Operations Directorate provided the regions with a separate Excel spreadsheet to capture this detail. However, the information provided is missing key elements necessary to make determinations on the effectiveness of the program activities. Missing elements include information such as the number of passengers screened, number of crew screened, number of examinations, number of resultant examinations, number of Temporary Resident Visas confirmed, number of individuals deemed inadmissible and the number of allowed-to-leaves and Temporary Resident Permits issued for travelers travelling by all types of vessels. In addition, BSOs do not report the number of high risk notices for international waste issued or the number of ships that are non compliant with ship stores regulations. By not recording the details or the reason for the high risk notice, the CBSA is unable to track the ship s compliance over time. 51 The Vessel-in-service course is a condensed version of the MIS course focusing only on Vessel Rummage. This course fulfills the training requirements outlined in the Enforcement Manual to be able to board and perform operational duties within the superstructure of a commercial marine vessel. 52 The Marine-in-service course fulfills the training requirements outlined in the Enforcement Manual to be able to board and perform operational duties within the superstructure of a commercial marine vessel. 53 The G11 System is a customs management information system as well as an accounting system for capturing customs revenue receipts. 54 The information collected includes the crew count, passenger count, Direct to-bus and U.S. Direct passenger count, number of passengers and crew queried, number of passengers and crew targeted, PIL times and number of PIL officers. 55 The information collected includes the number of cars, buses and trucks, number of passengers in each vehicle and foot passengers. 15