Rail In-Transit Reporting Just Changed — CAN-US-CAN Movements Need Attention

What Changed

CBSA published Customs Notice 26-16 on July 10 to clarify rail carrier reporting obligations for in-transit cargo. The notice targets two scenarios: standard in-transit movements through Canada from a foreign point to another foreign point, and the messier CAN-US-CAN case where domestic cargo moves from one Canadian location to another by routing through the United States.

The CAN-US-CAN routing happens more than you’d think. Vancouver to Toronto rail can run south through the US because the track network is faster or cheaper than the all-Canadian route. Legally it’s domestic freight, but it crosses an international border twice, so CBSA wants reporting at the First Port of Arrival when the train re-enters Canada.

The notice doesn’t create a new obligation. It clarifies an existing one that rail carriers were handling inconsistently. Some were filing advance cargo data, some weren’t, and some were filing partial manifests that left CBSA’s risk targeting blind to what was actually on the consist. That inconsistency is what the notice kills.

FPOA Reporting Is Non-Negotiable

Rail carriers must transmit Advance Commercial Information to CBSA at the First Port of Arrival for in-transit cargo. This applies whether the cargo is genuinely international in-transit (China to US via Canada, for example) or domestic CAN-US-CAN.

FPOA reporting means the rail carrier sends cargo details before the train crosses into Canada. CBSA’s targeting runs against that data. If the carrier skips it or files late, the train can be held at the border for inspection, and your cargo sits while CBSA manually reconciles the consist against what was supposed to be on it.

For CAN-US-CAN movements specifically, the carrier now has explicit direction to report the cargo as domestic in-transit rather than trying to treat it as exempt domestic freight. The distinction matters because exempt domestic freight doesn’t go through advance reporting, and CBSA has no pre-arrival visibility. A carrier that tries to file CAN-US-CAN under the domestic exemption will get compliance letters, and repeat offenders get their PARS participation pulled.

Compliance Costs Land on Carriers, Delays Land on You

The rail carrier is the reporting party here, not the importer. But when the carrier gets it wrong, you’re the one whose cargo is sitting at the FPOA waiting for manual release.

CBSA can hold the shipment for examination if the advance data is missing, incomplete, or doesn’t match the physical consist. That hold can run two to five days depending on officer availability and whether the cargo needs to be pulled from the train for physical inspection. If your shipment is time-sensitive or part of a just-in-time supply chain, a FPOA hold because your carrier didn’t file advance data correctly is the kind of delay that compounds downstream.

Carriers that fail to comply face Administrative Monetary Penalties under the Advance Commercial Information program. First violation is usually a warning. Second violation starts the penalty schedule. Chronic non-compliance gets the carrier suspended from simplified release programs, which means every subsequent rail movement gets treated as high-risk and subject to hold for manual review.

If you’re using a rail carrier for CAN-US-CAN routing, verify they’ve updated their filing procedures to align with CN 26-16. Ask your carrier if they’re transmitting ACI data at FPOA for your domestic movements that transit the US. Most of the Class I carriers have this dialed in already, but smaller regionals and shortlines sometimes don’t, and you don’t want to find out your carrier is non-compliant when your shipment is stuck at the border.

In-Transit vs Import — Know the Difference

The notice covers in-transit cargo, which means cargo that enters Canada but is destined for a foreign point and will exit Canada without being imported. Standard in-transit scenarios include US-to-US movements routed through Canada, or Asia-to-US movements that transit Canadian rail or ports.

If your cargo is being imported into Canada, this notice doesn’t apply. Import cargo is subject to standard CAD filing requirements, CBSA release protocols, and applicable duties and GST. The carrier still files advance data, but the pathway is different because the cargo will be released into Canadian commerce rather than continuing in-transit.

CAN-US-CAN domestic movements are the edge case. They’re not imports because they originate and terminate in Canada, but they cross an international border, so CBSA treats them as in-transit for reporting purposes. The carrier files advance data, CBSA runs targeting, and the cargo continues to its domestic Canadian destination without formal import release.

If you’re unsure whether your rail movement is in-transit or import, that’s a compliance review question. Getting it wrong means either overpaying duties on cargo that should have moved in-transit, or triggering penalties for failing to file a CAD on cargo that should have been imported.

Practical Next Steps

If you’re moving cargo by rail and routing through the US, confirm with your carrier that they’re filing advance cargo data at FPOA in line with CN 26-16. Most carriers updated their processes within days of the notice, but smaller operators sometimes lag.

If you’re working with a freight forwarder or third-party logistics provider, they should be tracking this for you. If they’re not, that’s a gap in their compliance coverage. When CBSA holds a shipment at FPOA for missing advance data, the delay is real, and the forwarder saying “we didn’t know” doesn’t get your cargo released any faster.

For importers relying on tight rail schedules, FPOA holds are one of the low-probability, high-impact risks that’s worth designing around. Cross-border rail moves faster than truck in most corridors, but the compliance requirements are stricter, and a carrier filing error can cost you more time than you saved on transit. If your cargo can’t tolerate a two-to-five-day FPOA hold, build buffer into your inbound schedule or use a carrier with a clean CBSA compliance record.

We run these filings daily and know which carriers consistently get advance data right and which ones generate holds. If your rail routing keeps hitting CBSA delays, get in touch.

Source: CSCB