Archive for the ‘Canada Customs’ Category


 

Duty Rates Increase for Imports from Several GPT Countries January 1

General Preferential Tariff Effective January 1, 2015, the Canadian Government intends to withdraw eligibility to the General Preferential Tariff (GPT) from 72 higher-income and trade competitive countries (out of current 175 beneficiaries), including China, South Korea, India and Brazil.  Of the 72 countries affected by this change 20 have preferential tariff with Canada though other trade agreements.

Entitlement to the benefit of the General Preferential Tariff is withdrawn in respect of all goods that originate in the following countries, effective January 1, 2015.

List of Countries Affected:

“Algeria”, “American Samoa”, “Antigua and Barbuda”, “Antilles, Netherlands”, “Argentina”, “Azerbaijan”, “Bahamas”, “Bahrain”, “Barbados”, “Bermuda”, “Bosnia and Herzegovina”, “Botswana”, “Brazil”, “Brunei”, “Cayman Islands”, “Chile”, “China”, “Colombia”, “Costa Rica”, “Croatia”, “Cuba”, “Dominica”, “Dominican Republic”, “Ecuador”, “Equatorial Guinea”, “French Polynesia”, “Gabon”, “Gibraltar”, “Grenada”, “Guam”, “Hong Kong”, “India”, “Indonesia”, “Iran”, “Israel”, “Jamaica”, “Jordan”, “Kazakhstan”, “Kuwait”, “Lebanon”, “Macao”, “Macedonia”, “Malaysia”, “Maldives”, “Mariana Islands”, “Mauritius”, “Mexico”, “Namibia”, “New Caledonia and Dependencies”, “Oman”, “Palau”, “Panama”, “Peru”, “Qatar”, “Russia”, “Saint Kitts and Nevis”, “Saint Lucia”, “Saint Vincent and the Grenadines”, “Seychelles”, “Singapore”, “South Africa”, “South Korea”, “Suriname”, “Thailand”, “Trinidad and Tobago”, “Tunisia”, “Turkey”, “Turks and Caicos Islands”, “United Arab Emirates”, “Uruguay”, “Venezuela” and “Virgin Islands, U.S.A.”

 

Least Developed Country Tariff (LDCT):  

Entitlement to the benefit of the Least Developed Country Tariff is withdrawn effective January 1, 2015 in respect of all goods that originate in Equatorial Guinea and Maldives.

 

Impact on Importers:

If you import goods from any of the countries listed above, the withdrawal of eligibility could increase the amount of duties payable upon import into Canada. Goods that are in transit to Canada prior to January 1, 2015 are exempt from the withdrawal order.

 

Advice for Importers:

Importers will want to use the coming months before this regulation is in effect to their advantage by preparing themselves and leveraging any duty savings that may still be available. It is highly recommended that you consult with your customs broker before placing orders, to understand how duties are impacted by this regulation change in 2015.

 

Need More Information?

If have questions about the GPT or LDCT  tariff treatment and need more information,  Pacific Customs Brokers offers trade compliance consulting. Our Trade Compliance Specialists will work with you to assess how these changes may affect your imports.

If you are a current client and are unsure of how these regulation updates affect your business, please contact us and we’d be happy to discuss this with you.

 

Background:

In the early 1970s, the United Nations recommended that developed countries grant non-reciprocal tariff preferences to imports from developing countries under a Generalized System of Preferences in an effort to promote the industrialization of developing countries.  Most major developed countries offer such regimes.  Canada’s regime, the General Preferential Tariff (GPT), was established in 1974 and offers tariff rates that are lower than Most-Favoured-Nation (MFN) tariff rates for imports from developing countries, with the aim of promoting economic growth and export diversification in developing countries.

Canada’s  Economic Action Plan 2013 announced that the Government would modernize Canada’s GPT regime by removing benefits from 72 higher-income and trade-competitive countries, effective January 1, 2015.

 

Additional Reading:

 

Have questions about GPT or LDCT  tariff treatment? Leave them in our comments section below or email Ask Your Broker.

Importing Cheese Into Canada — It’s Not That Simple

Dairy Products: CheeseJust because you can buy it, does not mean you can import it. Many Canadians like to take advantage of the low-cost dairy products available in the United States, whether that be for personal or commercial use.  But did you know that dairy products such as cheese are a regulated commodity? While yes, you may import into Canada, it comes with restrictions.

Personal import limits on dairy products:

For personal use the limits on dairy products e.g. cheese, milk, yogurt and butter are as follows:

  • Up to 20 kilograms per person with a maximum value of CAD$20

Note: Cheese packed in whey must meet further requirements before importation.

 

Requirements for importing cheese into Canada for commercial use:

If you are planning on driving south of the border to pick up cheese for your business, stop! There are certain requirements that must be met in order to be able to import cheese for commercial use.

1.  CFIA Cheese Import Licence

To start, a commercial importer must hold a valid CFIA cheese import licence issued by the Canadian Food Inspection Agency.  Here is an application form that must be completed » Application for a Cheese Import Licence (CFIA/ACIA 5562)

For more info regarding applying for a cheese import license, contact the CFIA’s Centre of Administration.

2. General Import Permit

Cheese is on the import control list and the Export and Import Permits Act (EIPA) . The Department of Foreign Affairs, Trade and Development requires an import permit for all types of cheese imports including fresh, grated, powdered and processed. This is in addition to obtaining a cheese import license.

Failure to obtain a General Import Permit:

If a General Import Permit is not obtained, cheese may still be imported by obtaining a Single Import Permit, but your imports would be subject to a tariff rate of over 200%.

Further information on permits prior to importing can be reviewed at the link below:

Additional Requirements:

  1. Cheese products can only be accepted if they are produced in a country that does not pose animal health concerns to Canada.
  2. Minimum grade or standard
  3. Correct labelling – Consumer-sized products (pre-packaged) must be labelled with the information required to be shown under the Consumer Packaging and Labelling Regulations and Dairy Products Regulations.
  4. An Import Declaration form in duplicate, is completed by the importer or his representative, must accompany the load. This form must contain the following information: name of the exporter; name of the consignee; in the case of cheese, the importer’s cheese import licence number, a description of the dairy product and any identification marks; the number, kind, and net weight of containers; and a statement that the dairy product was manufactured from sound raw materials, was prepared under sanitary conditions, and was, at the time of shipment, sound and fit for human consumption. The statement must also accurately identify the manufacturer or authorized agent.
  5. Health and safety requirements prescribed in the Food and Drugs Act and Regulations and the Dairy Products Regulations.

 

Consequences for not meeting import requirements:

Arriving at the destined port of crossing and failing to meet the above requirements, may result in the seizure, or destruction of the goods, or CBSA may order the goods back to the United States until the proper requirements have been met.

Additionally, at any time, the Canadian Food Inspection Agency may randomly inspect any food product to ensure that minimum requirements (composition, labelling, standard containers and health standards) are met. Non-compliant product will be detained until it meets regulatory requirements, or, if imported, it may be ordered out of the country or destroyed.  Failure to declare restricted items such as cheese may result in penalties, permanent seizure of goods and in some case criminal prosecution.

 

How Pacific Customs Brokers can help?

Pacific Customs Brokers’ over 50 years of experience with dairy imports coupled with our 24/7 customs brokerage service at all commercial ports of entry will serve your company well when importing dairy items. We can not only assist in the release your shipment but also help you determine the duty rates and import permit requirements as well as apply for the required permits, should you need one. For more information on how we can help you commercially import dairy products into Canada, please contact us.

What has been your experience at the border with cross-border shopping? Have questions about importing cheese into Canada? Leave them in our comments section below or email Ask Your Broker.

 

CBSA Releases July 2014 Trade Compliance Verification Priorities

Trade Compliance 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 2014. While new targets have been added, many continue from the past. The 11 new items on the list range from batteries to certain machinery.

 

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
  2. Targeted Priorities

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;
  • Establishing client service activities;
  • Revenue assessment; and
  • Promoting voluntary compliance.

 

2. Targeted Priorities

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

 

Trade Compliance Verifications – July 2014

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

Tariff Classification (TC): HS Number(s)
Fresh Cut Flowers 0603.19.00
Pickled Vegetables 2001.90.90.91
Curling Irons (Round 2) 8516.32.10
Spectacle Lenses 9001.40.10 and 9001.50.10
Furniture for Non-Domestic Purposes Various goods of Heading 94.01 and 94.03
Palm Oil 1511.90.10 and 1511.90.20
Chemicals product Various goods of Heading 38.08
Safety Headgear (Round 2) 6506.10.10.90
Seaweed (Round 2) 1212.21.00 and 1212.29.00
Dextrins and Other Modified Starches (Round 2) 3505.10.90
Disposable and Protective Gloves (Round 2) 3926.20.10 and 4015.19.10
Wheel Rims and Spokes (Round 2) 8714.92.00
Coconut Milk from Asian Countries (Round 2) 1106.30.00, 2008.19.90 and 2106.90.10.90
Batteries (new) 8506.10.10 and 8506.50.10
Gazebos (new) 9406.00.90.20
Apparel Samples (new) 9936.00.00
Bags of Polymers of Ethylene (new) 3923.21.90
Footwear Valued at $30 or More per Pair (new) 6403.59.20 and 6403.99.30
Hair Extensions (new) 6703.00.00
Machinery for Public Works (new) 8479.10.00
Sacks and Bags under Tariff Item 9903.00.00 (new) 3923.21.90, 6305.32.00 and 6305.33.00
Special Purpose Motor Vehicles (new) 8705.90.90.90
Polyurethanes in Primary Forms (new) 3909.50.00
Valuation HS Number(s)
Fresh Cut Flowers 0603.19.00
Apparel Various goods of Chapters 61 and 62
Footwear Various goods of Chapter 64
Yachts for Pleasure or Sport Various goods of Heading 89.03
Preparations and Pastrycooks’ Products Various goods of Chapter 19
Origin HS Number(s)
Bedding and Drapery Various goods of Heading 63.01, 63.02 and 63.03
Mattress Upholstery Various goods of Chapters 54,55 and 60
Cotton Pants 6203.42
T-Shirts Heading 61.09
Jewelry (new) 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. As part of our ongoing efforts, we offer a number of  Trade Compliance Seminars and Webinars throughout the year on trade compliance and customs audit among other subjects.

 

Trade Compliance Audit Assistance:

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

 

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  trade compliance verification priorities? Use the comments section below to leave us your thoughts or email Ask Your Broker .

 

Additional Reading:

ACI eManifest: 4 Problematic Situations and How to Handle Them

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Highway carriers can encounter many different issues when crossing the border. With the advent of the ACI eManifest program, some of these issues need to be dealt with differently than they have been in the past.

In a recent webinar, the Canada Border Services Agency (CBSA) addressed a few of the more common problems and how to deal with them in this presentation. The four situations discussed were as follows:

  1. How to present ACI after driver returned to U.S.
  2. How to present ACI for goods found astray
  3. How to present ACI for unreported goods
  4. How to present ACI when cargo linked to wrong CRN

 

1. How to present ACI after driver returned to U.S.

Scenario #1:

  • If the driver returns to the U.S. and leaves the tractor and trailer, the lead sheet would stay with the conveyance and no further action is required by the carrier.

Scenario #2:

  • If the driver returns to the U.S. with the tractor or tractor/trailer, the CRN will be rejected back to the carrier and the carrier will submit a change for the new version of the CRN, revising information as required. The new driver will then present the lead sheet with the same CRN.

NOTE: Any cargos reported on first CRN will remain in reported status if cargos are not returning to Canada within 40 days they will need to be cancelled using BSF673.

 

2. How to present ACI for goods found astray

Scenario #1:

  • If U.S. cargo is found astray in Canada, the carrier needs to submit a new cargo report for the goods with “port of report” as port of discovery, and “port of destination” as port of exit. If the conveyance is known, the carrier needs to amend the list of cargos to include the new cargo. The carrier will then stop at the port of export and provide any additional information the BSO may request.
  • The BSO will then acquit the cargo.

NOTE: If the conveyance is NOT known, the process is the same other than the cargo will NOT be attached to a conveyance.

Scenario #2:

  • If Canadian cargo is found astray in the US, the carrier will need to submit a cargo for the goods and attach it to the conveyance that will bring the goods back to Canada.
  • On arrival (either frontier or inland), the carrier will provide any additional information the BSO may request.
  • The BSO will then acquit the cargo.

 

3. How to present ACI for un-reported cargo

Scenario #1:

  • If unreported cargo is found in Canada the carrier needs to submit a new cargo report for the goods with “port of report” as port of discovery and “port of destination” as port of final destination. If the conveyance is known, the carrier needs to amend the list of cargos to include the cargo. A release request with the same destination will acquit this cargo.

NOTE: If the conveyance is NOT known, the process is the same other than the cargo will NOT be attached to a conveyance and therefore the carrier will need to contact the CBSA to have the cargo arrived in order to the release the cargo.

 

4. How to present ACI when cargo linked to wrong CRN                       

If a carrier realizes, once in Canada, that there is a cargo attached to the conveyance and the goods are not on the conveyance that has arrived, there are 3 possible scenarios:

Scenario #1 – CRN and cargo – NO release

  • Carrier will de-link cargo and submit BSF673 to cancel original cargo
  • Once cargo is cancelled, the carrier re-submits a new version of the same CCN
  • Carrier submits a new CRN, quoting the original CCN
  • Carrier then can attach (link) the new version of the cargo to the new CRN

Scenario #2 – CRN, cargo and release (on file / not released)   

  • Carrier will de-link cargo from the CRN and submit BSF673 to cancel original cargo
  • Importer must present A48- RMD corrector to cancel release request
  • Once the cargo is cancelled, the carrier re-submits a new version of the same CCN
  • Carrier submits a new CRN, quoting the original CCN
  • Carrier then can attach (link) the new version of the cargo to the new CRN
  • Release request can now be presented with the right information by the importer/broker

Scenario #3 – CRN, cargo and release (released)

  • Importer is required to present a B2 Canada Customs – Adjustment Request
  • The carrier is required to submit new cargo and conveyance data within ACI time frames when the goods will be entering Canada

NOTE: The CCN is unusable (the original cargo would be left in acquitted status and the original conveyance in the Auth to Move status)

If you have any questions about ACI eManifest, or any other cross-border transportation matters, please do not hesitate to contact our Carrier Relations Liaison at 855.542.6644  or via email at carrierhelpdesk@pcb.ca.

Additional Resources:

 

Changes to Transport Canada’s Vehicle Pre-clearance Lists – Appendix F and G

Recreational Vehicle Importing into CanadaTransport Canada authorizes a streamlined process to certain commercial importers who import vehicles that are new, have never been owned or licensed, and are certified by the manufacturer to comply with the Canadian Motor Vehicle Safety Standards (CMVSS). This allows Transport Canada and Canada Border Service Agency (CBSA) to screen shipments with minimal inspection and scrutiny. These authorized importers are listed on the Transport Canada web site as follows:

  • Appendix F program authorized importers - Pre-clearance List of Canadian Companies Authorized by Transport Canada to Import New CMVSS without Registrar of Imported Vehicles (RIV) Inspection or Form 1
  • Appendix G program authorized importers – Search for Canadian Companies Authorized by Transport Canada to Import New CMVSS without Registrar of Imported Vehicles (RIV) Inspection however a Form 1 is required.

Importers using the Designated Importer (DI) as their importer of record on incoming Customs transactions (B3) need to be aware of an important update issued by Canada Border Services Agency on April 9, 2014.

Although for a period of time, importers have been identifying the Designated Importer on the Customs Coding Form B3, this update will now require that the importer of record named on the B3 must be the same as the importer of record on the CBSA release documentation.

How this update affects importers:

Recreational vehicle importers should no longer use the name of a *Designated Importer as the importer of record for Customs purposes. It is important that importers familiarize themselves with this update to avoid delays at the border due to non-compliance.

A sample of a completed Form 1 for an importer that is associated with an Appendix G Designated Importer can be found here.

How this update affects highway carriers:

Carriers are also affected by this change, as they no longer need to provide more than one cargo control number if the shipment contains both a recreational unit as well as parts.

Customs Notice 14-008: Appendix F and Appendix G Authorized Importer Programs as Defined in Memorandum D19-12-1, Importations of Vehicles

The CBSA Customs notice below provides further information regarding compliance with the related regulation.

  1. This customs notice is for the attention of Appendix F and Appendix G Authorized Importers and their customs brokers who are involved in the importation of pre-authorized commercial vehicles and listed under Transport Canada’s (TC) Appendix F Authorized Importers and Appendix G Authorized Importers programs as defined in Memorandum D19-12-1, Importation of Vehicles.
  2. This customs notice is a reminder that the Canada Border Services Agency (CBSA) importer of record named in boxes 14, 16 and/or 17 on the Vehicle Import Form – Form 1 from TC must be the same as the importer of record named on the CBSA release documentation.
  3. As per Memorandum D17-1-4 paragraph 43 (4) (ii) the name of the importer of record must correspond with the name under which the company registered for its RM account. Furthermore, the importer at the time of interim accounting must be the party identified as the importer at the time of final accounting.
  4. An importer designated by a foreign vehicle manufacturer for the purpose of TC’s pre-authorized program and listed under Appendix F or Appendix G Authorized Importer programs, is not considered the importer of record for CBSA release purposes; unless they are the true importer of record as outlined in D17-1-4.
  5. If CBSA is not satisfied that the information provided is true, accurate and complete, the release request will be returned to the importer or their customs brokers for comment and/or correction with a Form Y50, Reject Document Control
  6. Supporting documentation such as a commercial invoice (Other than the CI1 – Canada Customs Invoice), bill of lading or any similar documents may be requested in order to establish the name of the importer of record for the release request unless the importer or their customs broker re-submit corrected documentation with the release request under reject.
  7. The goods will not be released until the CBSA receives the release documentation (invoice, manifest and the Vehicle Import Form – Form 1) with the corrected information.
  8. As the requirements regarding the submission of the name of the importer of record are mandatory as outlined in D17-1-4 the information contained in this customs notice is effective immediately.
  9. The CBSA recognizes that there was confusion amongst the importers and customs brokers involved in the importation of pre-authorized commercial vehicles and the compliance with the CBSA requirement to submit the name of the importer of record. Therefore, the CBSA will allow a compliance period of six months beginning with the issuance of this customs notice, after which a penalty may be applicable.
  10. Any questions regarding this customs notice may be directed to the Import Programs Management Unit email address at: ImportPrograms.Programmesdesimportations@cbsa-asfc.gc.ca.

 

Should you have questions regarding this update, please do not hesitate to contact our Compliance Department. You may also post your questions in our comments section below or email us at Ask Your Broker.

 

Notes:

  • *CBSA have confirmed that the importer of the goods must be the party that “causes the goods to be exported” and it is this party that is indicated on the CBSA release request (B3, PARS, RMD) and accounting documents.
  • *Transport Canada has advised that the party known as the “Designated Importer” will now be referred to as the Compliance Specialist. Their role going forward is still to be determined, but at this time both their name and the importer’s name may be shown on the Form 1. We understand that Transport Canada is in discussions with the Compliance Specialists and that some have already contacted the customs brokers, importers and manufacturers with whom they have a relationship.

 

Additional Resources: