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Customs Act

Second Reading—Debate Adjourned

September 26, 2018


The Honorable Senator Mary Coyle:

moved second reading of Bill C-21, An Act to amend the Customs Act.

She said: Honourable senators, I am pleased to rise today in support of Bill C-21, An Act to amend the Customs Act.

The Canada-U.S. border stretches across 8,891 kilometres. There are an estimated 400,000 people who cross the Canada-U.S. border every day at 119 border crossings, and there is no current way of knowing exactly who has exited our country.

In February 2001, the Prime Minister of Canada and the President of the United States issued a joint declaration regarding border security. This document sets out four areas of cooperation between both countries, which included integrated cross-border law enforcement. This joint declaration outlined an entry-exit system between the two countries. Following the declaration, both the U.S. and Canada published a joint action plan known as Beyond the Border. This outlines the priorities for both nations regarding their shared border.

The action plan contained a four-phase implementation approach to the information exchange which began in September of 2012 and continues today with the introduction of Bill C-21.

Phase 1 was implemented in September 2012. It allowed for Canada and the United States to begin implementing a proof of concept regarding the exchange of information, which began with the gathering of data of third-country nationals, permanent residents of Canada and lawful permanent residents in the United States, at two to four automated common land border ports of entry.

Phase 2 began in June of 2013. It formally implemented a program exchanging the data of third-country nationals, permanent residents of Canada and lawful permanent residents in the United States at all automated common land border ports of entry.

Phase 3 is intended to expand the program to include the exchange of data on all travellers at all automated common land border parts of entry.

Phase 4 is meant to establish an exit system, similar to that in the United States, under which airlines would be required to submit their passenger manifest information to the Canada Border Services Agency on outbound international flights.

The Office of the Auditor General of Canada confirmed in the fall of 2016 that the final two phases, Phase 3 and Phase 4, would be implemented in 2018. The proposed changes authorized in Bill C-21 to the Customs Act would provide the Canada Border Services Agency, or CBSA, with the legislative authority to collect basic exit information on all travellers leaving Canada. The information gathered is simple biographical data that can be found on page 2 of one’s passport, such as name, date of birth, sex, nationality. This information will allow the CBSA to track who has left the country and when.

Up until now, the CBSA has only been able to collect information on travellers entering Canada. This has resulted in an information gap which may cause law enforcement to miss the exit from our country of, for example, Amber alert victims, individuals escaping justice, individuals seeking to join recognized terrorist groups abroad, or known high-risk travellers and their goods, such as human or drug smugglers or exporters of other illicit goods.

Bill C-21 will close this information gap by authorizing the CBSA to collect exit information on all travellers. For those leaving by land, the CBSA will receive information from U.S. Customs and Border Protection, which collects the same information on entry into the United States. For those leaving by air, the CBSA will receive this information from the airlines. In other words, travellers won’t have to provide any additional information or be otherwise inconvenienced.

Here is how it will work in more practical terms. If I decide to drive to the United States to visit a friend in Boston from my home in Nova Scotia, I will cross the border from New Brunswick into Houlton, Maine. I will present my passport to the U.S. border patrol officer. They will gather the information contained on page 2 of my passport. This information, as I mentioned before, includes my surname, my first and middle names, my date of birth, my citizenship, my nationality, my sex, the type of travel document — in this case passport — that I have used to identify myself and the name of the country or organization that issued the travel document. Again, in this case, that is Canada. It will also include the travel document number and the date, time and place of my departure from Canada, and the date, time and place of my arrival into the United States of America.

This information will then be shared with the Canada Border Services Agency. Currently, this type of information on travellers exiting Canada is being gathered by the U.S. border patrol, but it is not yet being shared with Canada.

If someone crossed the Canada-U.S. border with a child who was later declared missing, we would have the information, if this bill were in place, on where and when the child crossed into the United States, which would facilitate cross-border cooperation in finding that child rapidly. At the moment, that is not information that would be shared with the Canada Border Services Agency.

Now, if I decided to take an international flight from Halifax to London, England, or to Newark, New Jersey, for example, the information contained within the air carrier manifest would be shared electronically with the Canada Border Services Agency.

Bill C-21 serves a number of vital public policy objectives. It will address several security blind spots caused by the fact that we don’t currently have the legislative authority to keep track of who leaves our country. It will also rectify certain resource management issues by providing Immigration, Refugees and Citizenship Canada and Employment and Social Development Canada with the ability to know who has left Canada, and when.

Furthermore, like all of you, I take the privacy concerns and the rights and civil liberties of all Canadians very seriously. The process by which information will be collected, exchanged and retained under Bill C-21 has been the subject of extensive consultations, and the privacy of individuals has been a paramount consideration throughout the development of this legislation.

Bill C-21 also takes into account several privacy protection measures as set out in the joint statement of privacy principles released by Canada and the United States in May 2012. That statement includes 12 principles of information sharing, including a need to ensure proper security safeguards for the information shared and effective oversight measures over the sharing of this information by various departments.

The Office of the Privacy Commissioner has been engaged extensively on this subject. In fact, when the commissioner testified before the committee in the House of Commons, he emphasized the important policy implications involved in this piece of legislation and that the information in question is not of a sensitive nature. Here are his full words:

Based on our discussions with the institutions involved and the information provided to us so far, I am generally convinced that there are important public policy objectives that this initiative is trying to address and that the personal information in question is not particularly sensitive.

Once this legislation is in place, the Privacy Commissioner will continue to be engaged because the new system of exit data collection will require that privacy impact assessments be carried out by a number of federal organizations before the system is implemented. An amendment related to the length of time that exit information could be retained after collection was adopted by the house committee. A 15-year retention period put forth by the New Democratic Party was adopted as part of Bill C-21.

Moreover, before the CBSA would be able to share information with the United States, a formal information-sharing arrangement between the two actors would be created which would include information management safeguards and privacy protection clauses. At the moment, we may not know that an abducted child who is the subject of an Amber alert has been taken out of the country. With Bill C-21, we would be able to know who has exited, at what point of exit and at what time. We may not know that someone who has been radicalized is leaving Canada to join a terrorist group abroad. With Bill C-21, we will be able to know who has left the country and where they are going.

Lack of border exit information also creates problems for the administration of social benefit programs, which have residency requirements. The entry-exit initiative will provide Employment and Social Development Canada with the information it needs to ensure that Old Age Security benefits are provided to those who truly qualify for them.

The information gathered will not affect Old Age Security for most people. Eligible seniors who have resided in Canada for a minimum of 20 years after the age of 18 will continue to collect Old Age Security benefits, even if they live outside of Canada.

The lack of border exit information also creates an additional difficulty regarding applications for citizenship and permanent residents, as there is no quick and reliable way of knowing that an applicant spent the requisite amount of time in Canada. Bill C-21 will aid this situation by allowing records of entry and exit to be shared with the administrators of these programs, thereby simplifying the information required to be submitted by the applicants.

Bill C-21 will address these and other gaps, improving Canada’s ability to combat cross-border crime, protect vulnerable victims of child abductions and human trafficking, effectively administer immigration and social benefits programs and continue to manage the border in a way that contributes to the safety and prosperity of Canadians.

Most of our allies have responded to new security threats by implementing similar systems. This legislation will help bring Canada in line with our international partners.

In November 2017 the European Union adopted regulations for an entry-exit system that will register the entry and exit of any non-EU nationals crossing at the external border. This new initiative has similar goals to what is contained in Bill C-21. Nonetheless, there were a number of concerns raised in the other place that may warrant further scrutiny. I have already mentioned the issue of privacy.

It was raised a number of times that Bill C-21 does not address Canada’s immigration refugee system, nor the asylum claim process. Well, that is correct. Bill C-21 is not attempting to address either the immigration or the refugee system currently in place in Canada. It is uniquely an entry-exit initiative to share vital border information between our two countries.

As honourable colleagues know, our highly-trained CBSA officials play a critical role in keeping our borders secure and facilitating the flow of legitimate trade and travel. However, no matter how well we train our Border Services officers, we must understand that their effectiveness depends on having the right tools, and this includes having complete and accurate data in order to deliver on their mandate of maximizing the safety and security of all Canadians.

Canada is a free and open society in which the rights and liberties of all Canadians remain vital to our own sense of identity. With that, I urge all senators to consider sending this important piece of legislation to committee as quickly as possible in order to allow for the careful study and scrutiny we pride ourselves on in the Senate of Canada.

Honourable senators, the time has come to close the information gap that exists in our current border operations and to meet the commitment we already made regarding enhancing our border security. Bill C-21 is one of a number of important tools to achieve this. Thank you.

Hon. Ratna Omidvar: I was clapping in my enthusiasm because I so support the principle of this bill. I apologize for interrupting you.

There is, as you said, such a significant information gap. When I look at the information-gathering systems of similar jurisdictions, let’s say on the immigration issues in Germany, they have clear entry and exit figures. We only have entry figures. We have no exit figures and there is mythology built up around the numbers of people who have gone underground, overstayed their temporary foreign worker visa, et cetera. I really welcome the principle of this bill.

Mistakes in data gathering can be very costly for individuals. You pointed out implications possibly for Old Age Security, possible criminal charges. My question is: Will Canadians be able to request a copy of their travel data to correct discrepancies if there are any?

Senator Coyle: Thank you very much for this question, Senator Omidvar.

My understanding is that level of detail is to be worked out in the regulations that are associated with the bill.

In preparation for today, I have been reading a lot, as we all do. In particular, I read a brief on Bill C-21 that was presented by the International Civil Liberties Monitoring Group. That group has clearly outlined a variety of issues, even more than those that you have just mentioned here, which are I think important ones for our committee to consider also, because it’s the issue of recourse, being able to see what is known about you. First, the right to have the same information that is being gathered and collected about you; and also, to correct that information if it is wrong, I believe is your question. So these are things that we would want to make absolutely sure that, as we move with the study of this bill, that that point is well covered. If the bill itself requires further amendment, which I do not believe it does, that the regulations take this into account. Thank you.

Hon. Serge Joyal: In listening to you, I could not but think about section 6 of the charter that states the following and I read it: “Every citizen of Canada has the right to enter, remain in and leave Canada.”

This is a charter right. It is under the guidance of section 1 also. That has to be interpreted in that context. Has the honourable senator paid any attention to the limit of the freedom of movement of Canadians and the protection to leave the country when they want and to come back when they want?

Senator Coyle: Thank you for that question, Senator Joyal. I am not the constitutional or charter expert that you are, but my understanding is this very simple bill — it doesn’t mean we don’t look carefully at simple bills — is not going to inhibit any movement. This bill will do two things: First, the information that is already gathered by the American authorities at the border — you can leave when you want. Your information is already being gathered at the U.S. border — that information on your movement out of Canada, into the U.S., that’s at a land border, that will be shared. If you’re on a flight and you’re leaving Canada, the flight manifest will be shared. So those two ways of information sharing will happen. The flight manifest will only be shared internally into Canada. That information is only going to the CBSA. In this case, the information that is already being collected by the U.S. border officials will then be transferred to Canadian Border Services Agency.

Hon. Yonah Martin (Deputy Leader of the Opposition): The first question is prefaced by just the fact that I know that this bill is implementing the Beyond the Border agreement that was negotiated successfully by the previous government, Prime Minister Harper and President Obama. I know that in principle I too understand the importance of this and I was listening carefully to your speech.

There was one concern that was raised by stakeholders, such as the Canadian Snowbird Association, and whether the sharing of information in any way poses a risk that Canadians wintering in the United States may become subject to U.S. income tax and more scrutiny as a result of information shared. Would you address that concern?

Senator Coyle: The question is whether they would be subject to U.S. income tax?

Senator Martin: I guess the risk of being subject to income tax with information about their travel. Some of the snowbirds or Canadians who may spend time in the U.S. were concerned about greater scrutiny, whether or not these concerns are being looked at carefully and what information is being shared with the U.S.

Senator Coyle: Thank you for your question, Senator Martin. My understanding is that information is already being collected by the United States authorities. If there were to be an impact on an individual’s United States tax duties, they would already be captured by that collection of data at the border by the U.S. authorities. This is strictly a sharing back into Canada of the flow of people leaving Canada.

Senator Martin: It may be good to hear from them if they have any other concerns. I know certain snowbirds myself.

This bill is an attempt to thin the border and to, as you say, facilitate the flow of trade and travel. But what considerations have been taken and have there been discussions about the legalization of marijuana and potential thickening of the border? I can foresee that there could definitely be a thickening of the border because marijuana is not legalized federally in the United States, although in certain states it is. I can envision some challenges. Could you address that issue?

Senator Coyle: I can well imagine that all kinds of adjustments are going to be made at our land and other borders as a result of the new law that is soon to come into effect in Canada regarding cannabis. I don’t, however, believe that Bill C-21 will in any way have an impact on that.

If illegal drugs in Canada were being moved across the border with the U.S. and caught at that point, then Canada would want to know about that.

It is the same with any other illegal goods, with human trafficking, sex trafficking, anything like that. It could be a disgruntled member of a couple who wants to take a child out of the country against the legal requirements that they are subject to. That case would be something this would catch. The issue of marijuana causing a snarl at the border is not related to this particular bill. It would not cause any further disruptions.

The Hon. the Speaker: Senator Martin, do you have another question?

Senator Martin: I have a follow-up to what you just said.

There are concerns that there could be a thickening of the border on legitimate travel because of the legalization of marijuana. Will this bill take into account some of the added challenges? Does it address any of that? And have such conversations taken place between the two countries? We heard in a previous bill on the expungement of criminal records that we can expunge in Canada, but that information isn’t necessarily shared correctly with the U.S.

I’m looking at all the challenges and intricacies of what happens at the border.

Senator Coyle: Thank you for your supplementary question and clarification.

Again, Bill C-21 is simply information that is already being collected at the U.S. border, by the U.S. border control, being transferred to the Canada Border Services Agency. That’s it. There is no further holdup for anybody. What is already in place in terms of gathering of data will stay the same or will change according to U.S. requirements. This bill quite simply gives Canada the authority to receive that information from the U.S. border control or, as I said before, from a flight manifest. That includes an airline’s manifest if somebody is flying internationally — not just not U.S. but anywhere internationally.

Hon. Nicole Eaton: Thank you, Senator Coyle. I support your bill completely. To reassure some of our colleagues, you didn’t dwell on the number of European nations — England, France, Germany. With any country that I have been to, including China, you always go in and you give your information. You go out and you give your information. I think what we’re doing is catching up. Would you agree?

Senator Coyle: I do agree that we are now aligning our entry-exit data collection requirements at Canadian borders with a number of other countries. I did mention the recent European enactment in 2017. We are also aligning to a certain extent — not 100 per cent; it’s a made-in-Canada bill — with the Five Eyes: Canada, the U.S., the U.K., New Zealand and Australia.

Hon. Pamela Wallin: In your role as steward and shepherd of this legislation, you said it’s a simple, straightforward bill. No such thing. A lot of the devil is in the details. You’ve talked about the need for details to be spelled out in regulation.

Could you ask — and then assure us — that when the appropriate ministers appear before committee during our study of this bill, they will have drafted regulations with them so that we can look at those things, even if it’s not the final draft, but some direction of where they are going?

Senator Coyle: Thank you, Senator Wallin, I will endeavour to ensure that takes place.

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