Pacific Customs Brokers submits the majority of their shipments to Canada Border Services Agency (CBSA) through an Electronic Data Interchange (EDI). The purpose of an EDI release is to provide customs brokers with the ability to transmit release and invoice data electronically, thereby removing the requirement to prepare and present hard copy release packages. To be compliant, Pacific Customs Brokers must ensure that we submit Full Appraisal Quality information to CBSA. This means we must transmit complete and accurate descriptions to Canada Customs as if we were taking a “snap shot” image of the physical invoice. Customs relies on our EDI details for both release decisions and post audit re-appraisals.
Lack of Full Appraisal Quality details on invoices can:
To avoid complications such as these requires a significant amount of co-ordination between the exporter, transporter, customs broker, and importer.
Full Appraisal Quality includes the following major aspects:
1. Complete Product Descriptions
The description of the goods should be in layman’s terms. Your customs broker has to know what they are classifying to Customs. The description should also include the material that the goods are made of (plastic, metal, etc.) A full appraisal description should look as follows:
“12x12 Glazed Ceramic Floor Tile”
2. Fair Market Value
Even if the shipper is giving you free samples, brochures, or whatever else the case may be, Customs requires that a value for the goods must be shown.
Please note: The term “fair market” means the value must be an accurate depiction of the goods being shipped, typically the Blue Book value of goods.
The amount of product must be put into a unit of measure, typically how the goods are sold. For example: Per pound, package, piece, etc.
4. Ship Date:
Ship date refers to the date the goods began their journey to Canada. This is important since GST will be calculated according to this date.
This is defining the currency that the goods were sold. For example: USD or CAD
This is often computed on the bill of lading. It is acceptable to estimate the approximate weight of a shipment on the invoice.
*Remember: Full Appraisal Quality is not an option, it is the mandatory minimum information required by CBSA.
Here is an example of a properly completed Canada Customs Invoice that meets the requirements of Full Appraisal Quality. Click the link or the thumbnail image for a detailed view.
Canada Customs Invoice – Full Appraisal Quality. pdf
If you require further clarification, Pacific Customs Brokers would be happy to consult with you.
Do you have questions about Full Appraisal Quality, leave them in our comments section below or email Ask Your Broker.