Archive for the ‘Canada Customs’ Category


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.

Single-trip Bonds: An Alternative for Non-Bonded Carriers



















What is a non-bonded highway carrier to do when they have an opportunity to pick up a load that needs to travel in-bond through Canada? One alternative is to obtain a single-trip bond.

Bonds issued by the Canada Border Services Agency (CBSA), whether single-trip or annual, allow highway carriers to move goods inland to a sufferance warehouse for release or ‘in-transit’ through Canada for furtherance to a point outside of the country.

In order to become an annually bonded carrier with CBSA, carriers must have a carrier code, post financial security of up to $25,000 as well as fill out an application. However, to obtain a single-trip bond the process can be completed on an as-needed basis.

A single-trip bond can be acquired by the carrier directly through CBSA at the First Port of Arrival (FPOA) by filing security using cash or certified cheque or by engaging a customs broker who provides this service.

Goods moving on a single-trip bond are linked to the carrier code of the carrier moving the goods, a bond authorization number and Cargo Control Number (CCN) printed on a Cargo Control Document (CCD). This allows for reporting, tracing and acquittal of each shipment by CBSA.

CBSA expects the single-trip bond process to be limited and declining in use and as such this process remains paper-based.

The process for a single-trip bond movement of goods:

  1. The highway carrier will transmit cargo and conveyance data as a frontier release prior to arriving at the FPOA.
  2. At the Primary Inspection Line (PIL), the driver will declare that a single-trip authorization is required to move the goods inland. The carrier will then provide a lead sheet to the Border Services Officer (BSO) with the a bar coded CRN or a bar coded CCN and handwritten CRN.
  3. The BSO will refer the driver inside for primary processing to apply for a single-trip bond.
  4. The carrier will present a completed paper re-manifest (A8A) to the BSO. The officer will stamp the A8A allowing the carrier to move the goods inland. The clearance is then processed as an in-bond movement.
  5. The A8A copies will be split as they were pre-emanifest carriers will not be penalized for handwriting the CCN onto the A8A being used to re-manifest, single-trip in-bond movement.
  6. Goods must go to the destination that CBSA has allowed the carrier to carry the goods to as per the bond. The single-trip bond naturally ends at the destination of the goods.
  7. The carrier is required to retain all records relating to this single-trip bond for three (3) years plus the current year.

Pacific Customs Brokers can assist carriers with both annual and single-trip bonds by contacting our carrier help desk at [email protected].

Have you used or are you contemplating using a Single-trip Bond? If you have recently or in the past, what were the advantages and disadvantages you have faced? Share your experiences in the comments section below or email us at Ask Your Broker.

Trade Compliance Verifications – July 2016

















The Canada Border Services Agency (CBSA) publicly releases a semi-annual list of all of its active compliance verification priorities, in the interest of transparency and the promotion of self-compliance. It recently published its trade verification targets for the second half of 2016. While new targets have been added, many continue from the past. The eight new items on the list range from live plants to cell phone cases.


Types of Post-release Verification Processes

The CBSA manages compliance with the Tariff Classification, Tariff Treatment, Valuation, and Origin programs using the following two post-release verification processes:

1. Random Verifications

Random verifications are designed to measure compliance rates and revenue loss and the results may be used for many purposes, including:

  • Risk assessment;
  • Revenue assessment; and
  • Promoting voluntary compliance.

2. Verification priorities

Targeted verification priorities are determined through a risk-based, evergreen process, meaning that new targets are added throughout the fiscal year. Verification priorities may also be carried over from previous years.


Trade Compliance Verifications – July 2016

A summary of the current targeted priorities can be found below:

Tariff Classification (TC) HS Number(s)
Curling Irons (Round 2) 8516.32.10
Spectacle Lenses (Round 2) 9001.40.10 and 9001.50.10
Furniture for Non-Domestic Purposes Various goods of Headings 94.01 and 94.03
Seaweed (Round 3) 1212.21.00 and 1212.29.00
Dextrins and Other Modified Starches (Round 3) 3505.10.90
Disposable and Protective Gloves (Round 3) 3926.20.10 and 4015.19.10
Coconut Milk from Asian Countries (Round 2) 1106.30.00, 2008.19.90 and 2106.90.10.90
Batteries 8506.10.10 and 8506.50.10
Gazebos (Round 2) 9406.00.90.20
Footwear ($30 or more per pair) (Round 2) 6403.59.20 and 6403.99.30
Hair Extensions (Round 2) 6703.00.00
Machinery for Public Works 8479.10.00
Special Purpose Motor Vehicles 8705.90.90.90
Polyurethanes in Primary Forms 3909.50.00
Parts for Power Trains Heading 87.08
Geophysical and Oceanographic Instruments Heading 90.15
Cereals Heading 10.08
Articles of Apparel and Clothing Accessories (Round 2) Heading 39.26
Bicycle Parts Heading 87.14
Articles of Plastics Subheading 3926.90
Articles of Iron or Steel Heading 73.26
Vices and Clamps Heading 82.05
Parts for Use with Machinery of Chapter 84 Heading 84.31
Tubes, Pipes and Hoses Heading 39.17
Parts of Lamps Heading 94.05
Chemical Products (Round 2) Heading 38.08
Pasta Heading 19.02
Hair Dryers and Electric Smoothing Irons Heading 85.16
Cell Phone Cases (New) Headings 39.26, 42.02 and 85.17
Mountings, Fittings and Similar Articles (New) Heading 83.02
Stone Table and Counter Tops (New) 9403.90.00
Prepared Meat of Swine (New) Heading 16.02
Live Plants (New) Heading 06.02
Interchangeable Tools (New) Heading 82.07
 Air Brakes and Parts Thereof (New) Subheading 8607.21
Handkerchiefs, Towels and Related Paper Products (New)
Heading 48.18
Valuation HS Number(s)
Apparel (Round 2) Various goods of Chapters 61 and 62
Preparations and Pastrycooks’ Products Various goods of Chapter 19
Origin HS Number(s)
T-Shirts Heading 61.09
Jewelry 7113.11.90, 7113.19.90 and 7113.20.90

As your customs broker, we make every effort to provide you with the right tools and information to ensure that your company is as proactive as possible with the CBSA. In this way, we hope to help lessen your exposure to any penalties or fines.


Trade Compliance Education

As part of our ongoing efforts, we offer a number of  Trade Compliance Seminars and Webinars throughout the year on trade compliance, customs audits among other subjects like, HS Tariff Classification, Free Trade Agreements and Rules of Origin, Canadian Food Inspection Agency and U.S. Food and Drug Administration. Visit our upcoming calendar today!


Trade Compliance Audit Assistance

Should your company get selected for a customs audit, Pacific Customs Brokers can help. Our Certified Trade Compliance Specialists will work with you to guide your business through the audit process and avoid incurring further penalties.


Trade Advisory Services

Our trade compliance consulting services include but are not limited to:

  • Thorough HS database review with ongoing updates
  • Current industry training and education to review transactions completed by customs brokers thereby minimizing errors
  • Experienced counsel on valuation and origins
  • Strategic advice on withstanding a customs audit
  • Firm support through the challenges of the audit process

For more information about our trade compliance audit services, contact us today or learn more at Canada Customs Trade Compliance.


Do you have questions about CBSA’s  July 2016 trade compliance verification priorities? Use the comments section below to leave us your thoughts or email Ask Your Broker .

ACI eManifest Exemption for Empty Containers


Instruments of International Trade (IIT) such as empty shipping tanks, pallets, baskets, bins, boxes, cartons, crates, totes and trays, also known as Ottawa File and Container Banks, may be exempt from ACI eManifest submission regulations for highway and rail carriers. As noted in the Electronic Commerce Client Requirements Document (ECCRD), these containers must be registered under Ottawa file and issued container bank numbers in order to be exempt.

In order to qualify the containers for the ACI eManifest transmission exemption, carriers must still transmit conveyance data as well as the following additional steps:

  1. Include the IIT indicator in the cargo submission.
  2. Verbally report the IIT to the Canada Border Services Agency (CBSA) officer at the First Port of Arrival.

The determination of whether the equipment qualifies as an IIT and its classification are the responsibility of the importer/customs broker and must be reported and accounted for at the first time of arrival in Canada.

Where a Container Bank has been authorized by CBSA, a company can import containers or a like quantity of similar containers on a duty and tax free basis. To operate a Container Bank, a company must apply in writing to the CBSA for authorization. The letter requesting permission to operate a Container Bank should be sent to the Manager of Regional Programs in the applicable region.

Have you used or are you contemplating using a Container Bank? If you have used the program in the past what are the advantages and disadvantages you have faced? Share your experiences in the comments section below or email us at Ask Your Broker.