Archive for the ‘Canada Customs’ Category


 

In-Bond Trailer and Container Sealing Requirements

 

container-forklift-600Carriers who move goods in-bond from the First Port of Arrival (FPOA) into Canada may need to seal the trailer and/or containers as required by Canada Border Services Agency (CBSA).

Shipment sealing is required for:

  • Carriers who are participating in a CBSA Trusted Trader Program
  • Cargo that is controlled or regulated by an Act of Parliament
  • Cargo moving in-transit
  • Conveyance and containers moving from FPOA to a CBSA examination location as directed by CBSA.

Some exemptions apply to these sealing requirements when customs is overseeing the movement.

These exemptions include:

  • Inland Inspection
    Customs Self Assessment (CSA) carriers may move in-bond goods without a seal except in cases when CBSA requires an inland inspection. In this case CBSA would affix a seal on the load at the FPOA for transport to the examination warehouse. The load must then be delivered to the release point and/or examination warehouse designated by CBSA with the seals intact. If company seals are already affixed CBSA will accept those seals and notate them.
  • High Risk Convoy
    CBSA may permit a load to move in-bond to a destination under the convoy of a Border Services Officer (BSO), where the nature or type of vehicle is considered high risk. In this case the carrier will be expensed for the time and labour of the BSO to convoy and examine the shipment.

Tips:

  1. Ensure the seal remains intact
    This company seal must remain intact unless CBSA performs an examination at the FPOA. If the seal did not remain sealed and/or the seal was broken without CBSA approval, penalties may incurred.
  2. eManifest requirements
    When a company places a seal on a trailer, vehicle or container that contains in-bond goods, the seal number must be noted correctly on the pre-arrival conveyance transmission.

Please note, CBSA has the right to seal any conveyance, container or compartment at any time.

Have a question regarding in-bond trailer or container sealing requirements? Share them in the comments section below or email Ask Your Broker.

Freight Forwarders Take Note: eManifest in effect November 7, 2016

Canada Border Services Agency (CBSA) has announced that bonded and non-bonded freight forwarders, who are responsible for consolidated imports are required to transmit advance house bill data electronically for in-bond and in-transit shipments commencing November 7, 2016.

The implementation timeline as it applies to eManifest requirements for freight forwarders is as follows:

  • November 7, 2016 to January 10, 2017
    Transition period during which penalties for non-compliance will not be issued. CBSA will work closely with freight forwarders on corrective measures to become compliant.
  • January 11, 2017- July 11, 2017
    Non-compliant freight forwarders may be issued zero-rated (non-monetary) penalties under the CBSA Administrative Monetary Penalty System (AMPS).
  • July 12, 2017
    Freight Forwarders deemed non-compliant may be issued monetary penalties.

CBSA encourages freight forwarders to adopt the eManifest requirements now before they become mandatory. By doing so freight forwarders will have time to adjust to eManifest processes and correct problems effectively reducing the risk of non-compliance.

Start to prepare now:

  1. Ensure you have a valid CBSA-issued 8000-series freight forwarder carrier code and that CBSA has your current company contact information. For detailed information on obtaining a carrier code visit the Commercial Carrier section of the CBSA website.
    Choose a transmission option. Available options included:

    1. Electronic Data Interchange (EDI)
    2. Third party service provider (Borderpro)
    3. CBSA’s eManifest portal
  2. Secure a copy of the technical reference chapter of the Electronic Commerce Client Requirements Document (ECCRD) – Chapter 5 and 8. These chapters provide the business rules and data requirements when transmitting data to CBSA. Contact the CBSA Technical Commercial Client Unit (TCCU) for a copy.
  3. Review the tools, resources and client support available on the CBSA website.

Available eManifest filing options:

  • Full-service filing as primary service provider – For carriers who would prefer Pacific Customs Brokers to file eManifest on their behalf.
  • Full-service filing as secondary service provider – A backup option for carriers that are registered with another third party service provider, or who plan to use the CBSA web portal in the event of system failures, power outages, internet connectivity issues, etc.
  • Self-filing (partial) – For carriers choosing to enter eManifest data themselves.Note: Pacific Customs Brokers offers 24/7 carrier support with all of our service options listed above.

We are a third party service provider and know how to be compliant with filing your ACI eManifest. Contact us at 855-542-6644 or leave us a comment in the comment section below.

Highway eManifest: A Year in Review

 

It has been just over a year since eManifest became mandatory for highway carriers. On July 10, 2015, full compliance of eManifest came into effect and since January 11, 2016, non-compliant carriers may have been issued a Administrative Monetary Penalty System (AMPS) penalties.

The Canada Border Services Agency (CBSA) at the Pacific Highway port of crossing reports that for the most part, carriers have been compliant. However the occasional carrier has arrived without an eManifest filed. Additionally, some carriers do not report multiple pickups on a single Pre-Arrival Reporting System (PARS).

Here is a quick review of how a carrier can be compliant when filing an eManifest with CBSA:

  • Transmission of Electronic Data Interchange (EDI) cargo and conveyance data must be received and validated by CBSA no later than one hour before the arrival at the First Port of Arrival (FPOA).
  • All cargo data must be accepted by CBSA and on file in order to be subsequently linked to a conveyance. If a conveyance is transmitted quoting a cargo control number (CCN) that is either not on file or in reject status, the conveyance will be rejected.
  • The highway cargo submission will include but is not limited to:
    • A CCN that begins with the carrier’s 4-digit alphanumeric, CBSA-assigned carrier code followed by a unique reference number assigned by the carrier or service provider
    • Port of report and port of destination
    • A description of the goods
    • Shipper and consignee name and address
  • The CCN and Conveyance Reference Number (CRN) cannot be the same.
  • A machine readable bar code must be presented to the officer at the FPOA. The bar code must either be the CRN or the CCN or both.
  • Unless subject to an exemption or exception (see ECCRD or D-Memorandum for exemptions and exceptions) the carrier must provide a cargo submission to the CBSA for each shipment destined to Canada not being cleared as CSA.
  • Changes (pre-arrival) or amendments (post-arrival) to cargo data should be made as soon as they are discovered. Electronic changes by clients will be accepted up to the FPOA of the goods.

Failure to submit an eManifest or report all shipments can lead to a penalty of $2000 to $8000 Canadian Dollars per shipment not reported. Additionally, the carrier’s truck and shipments can be refused entry until an eManifest is filed within the prescribed time limits.

Pacific Customs Brokers is a third party service provider and knows how to be compliant with filing your ACI eManifest. Contact us at 855-542-6644 or email us [email protected]

Advance Trade Data: End State eManifest Process for In-Bond Shipments

 

 

 

 

Currently carriers and freight forwarders who have filed security with Canada Border Services Agency (CBSA) are considered “bonded” and therefore permitted to carry goods in-bond from the First Port of Arrival (FPOA) to an inland destination for examination and/or release. The trade community benefits greatly from this type of movement of goods and CBSA recognizes that to not allow this would pose a significant challenge.

With the implementation of eManifest, CBSA continued to allow in-bond movements as long as the pre-arrival data was provided by the carrier within the prescribed time frames. However, once mandatory, in addition to the requirement for highway carriers to provide advance cargo and conveyance data, importers will be required to submit Advance Trade Data (ATD) for that in-bond shipment in a new end state process.

Advance Trade Data

The ATD elements that importers will soon be required to submit include:

  • Importer of Record (IOR) number, name and complete address
  • Country/State of Origin
  • Country/State of Export
  • Commodity H.S. code to the 6th digit
  • Name and complete addresses of Manufacturer/Supplier, Seller/Vendor, Exporter (if different than the seller), Buyer/Purchaser, and Consignee (if different than the buyer)

Once ATD is mandatory, CBSA will receive and risk assess the carrier’s pre-arrival cargo and conveyance data as well as the importer’s ATD. If the importer’s ATD submission has not been received upon the carrier’s arrival at the FPOA, CBSA will determine:

  • If the carrier and driver are not members of a CBSA Trusted Trader Program, the shipment will not be permitted to move in-bond until the ATD is provided and risk assessed.
  • If the carrier and driver are approved members of a CBSA Trusted Trader Program, the shipment will be permitted to move in-bond to an approved warehouse.

Trusted Trader Programs

This end state process provides benefits to carriers who have invested in these programs.

CBSA has not yet announced when ATD for highway shipments will become mandatory for importers; however, for carriers who transport goods in-bond into Canada, it may be prudent to research becoming a member of a Trusted Trader Program if not a member already.

Are you an approved member of a Trusted Trader Program? Which program did you choose? Share your experience of the application process or any tips you may have in the comments section below or email us at Ask Your Broker.

CEF Exams: What’s an Importer To Do?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As you might be aware, the Canada Border Services Agency (CBSA) conducts random examinations on containers arriving in Canada from around the globe. The purpose of these examinations is to ensure that contraband, counterfeit goods and other prohibited items do not enter Canada.

The facility that CBSA uses to conduct these examinations is called the Customs Examination Facility (CEF). A CEF is a secure compound where CBSA can perform examinations under strict security.

The procedure for this type of exam is fairly straightforward as detailed below:

While at the Port

  • Identification: CBSA identifies the container it wishes to examine.
  • Notification: The steamship company is notified of the request for examination. The steamship company must then make the container available to CBSA.
  • Transportation: The container is transported from the dock to the CEF.

While at the CEF

  • The container is received.
  • The examination is conducted.
  • The exam is completed and the container is returned to the dock for release and delivery.
  • The customs broker notifies the importer that the goods have been released.

These examinations are both lengthy in time and costly to the importer. While at the CEF facility, the examination process can exceed a month before conclusion. The cost of such exams can range from $3,000 to $6,000 or more. Additional demurrage – which are charges to the steamship company or carrier for failure to load or unload a conveyance within a certain time frame – is also common.

CBSA has advised that they are aware of these issues are are working to address them.

In the interim, Pacific Customs Brokers encourages importers who have experienced these delays and extra costs to submit their concerns to CBSA through any of the following means and copy their local MLA or MP.

Methods of Reporting a Complaint

  • To file a report online, visit: Compliments, Comments and Complaints
  • To file a report via fax, send to: 613-948-3177
  • To file a report via mail, send to:
    Linda Lizotte-MacPherson, CBSA President
    191 Laurier Avenue West, 6th Floor
    Ottawa, Ontario
    K1A 0L8

Have you experienced delays or incurred additional costs due to a CEF examination? Have you submitted a complaint via any of the methods listed above? Share your questions, experiences, comments or concerns using the comment section below or email us at Ask Your Broker.