May 27, 2013

Mr. David Christopherson, M.P.
Chair, Standing Committee on Public Accounts
House of Commons
Ottawa, Ontario  K1A 0A6

Dear Mr. Christopherson:

Thank you for your letter of March 22, 2013, concerning Chapter 1, “Border Controls on Commercial Imports,” of the spring 2012 Report of the Auditor General of Canada.

Only one recommendation, which was specific to the Explosives Program, in the Auditor General’s Report pertained to Natural Resources Canada (NRCan):

1.53 Recommendation: The Canadian Food Inspection Agency, Health Canada, Natural Resources Canada, and Transport Canada should assess Canada Border Services Agency [CBSA] referrals systematically to determine whether responses are provided within agreed service standards and whether recommendations are followed.  Each organization should use the results of this assessment to determine whether further action is required.

NRCan agreed with this recommendation and committed to the following actions:

• develop a new recording system; this was completed in October 2011;


• implement a recording system to allow all NRCan explosives inspectors located in Ottawa to track referrals coming from CBSA border services officers; this was also completed in October 2011; and


• communicate the new recording system to all NRCan explosives inspectors in regional offices who may be contacted by CBSA border services officers; this was completed in the first quarter of 2012.

This system is now part of the operating instructions used by NRCan explosives inspectors, and reminders are sent periodically to ensure compliance.  This includes ensuring that the 24-hour agreed service standard set out in the memorandum of understanding between NRCan and the CBSA is respected.  Further actions are also underway to systematically obtain a confirmation from border services officers for their final decision after having obtained a recommendation from NRCan explosives inspectors subsequent to a referral.  NRCan and the CBSA intend to update their memorandum of understanding, Partnership Action Plan, and Customs Enforcement Manual by the end of 2013–2014.

In addition, NRCan is a participating government agency within the Single Window Initiative (SWI).  The CBSA-led SWI will allow NRCan to replace its current paper‑based importation approval process with an electronic version that will facilitate interaction and decision making between both organizations.  In addition to reducing the administrative burden on the industry by eliminating duplicate reporting requirements, this new process will help to minimize the number of referrals currently required.  Successfully implemented, the new system will eliminate all referrals required for legitimate and compliant importations and allow CBSA border services officers and explosives inspectors to focus only on non-compliant importations.

Yours sincerely,

Serge P. Dupont
Deputy Minister
Natural Resources Canada

c.c.:   Mr. Luc Portelance, President, Canada Border Services Agency