Canadian Customs Process

Overview
 Canada Border Services Agency

• Dec 12/03 a new agency has been established “Canada

Border Services Agency”, replacing “Canada Customs
Revenue Agency”

• CBSA is part of “Public Safety Canada”

• Employees of C.C.R.A., Citizenship & Immigration

Canada (CIC), and Canadian Food Inspection Agency,
(CFIA) were transferred to the new agency.

• Alain Jolicoeur: President of CBSA

Public Safety Canada is Comprised of:

Royal Canadian Mounted Police

(R.C.M.P.)

Canadian Security Intelligence Service

(C.S.I.S.)

Correctional Service of Canada (C.S.C.)

National Parole Board (N.P.B.)

Canada Border Services Agency

Minister of Public Safety.

Stockwell Day
Main Acts Administered

• Customs Act
• Customs Tariff Act
• Excise Act
• Excise Tax Act (G.S.T.)
• Special Import Measures Act
• Over 80 other Acts of Parliament
 Customs Act
• Main Law of Customs
• Import and Exports
• Basis for giving Customs their powers
• Allows Customs to set up their own
regulations
• D Memorandums
• Regulations regarding Customs Brokers
• Administrative Monetary Penalty System
(A.M.P.S.)
Customs Tariff Act
• Contains Canadian H.S.#’s & Duty
Rates

• Tariff Treatments & Which Country is

Afforded Which Treatment

• Prohibited Goods

• Concessionary Rates Of Duty

• Supporting Legislation
 Excise Act & Excise Tax
Act
• Excise Act - Beer, Wine, Spirits &
Tobacco

• Excise Tax Act - G.S.T. & “Luxury

Items”
 Special Import Measures
Act
• Regulations Regarding Anti-
Dumping and Foreign Government
Subsidies.

• Anti-Dumping Duties

• Countervailing Duties
A Customs Brokerage
• Is Bonded with Customs Border Service
Agency
• Importer signs Powers Of Attorney, giving the
brokerage the right to clear goods through
customs and pay C.B.S.A. the duties and
taxes on the importers behalf.

• Has “Account security” allowing the

brokerage to clear shipments on minimum
info., and pay the duties and taxes at the
end of the month.
 A Customs Brokerage
• Is connected to C.B.S.A. to clear goods
, and assess duties & taxes via:
A.C.R.O.S.S., C.A.D.E.X., R.N.S.
• A.C.R.O.S.S. : Accelerated Customs Release
Operating Support System (release)
• R.N.S.: Release Notification System (release notification)
• C.A.D.E.X.: Customs Automated Data
Exchange (confirmation)
 A Customs Broker
• Is A Canadian Citizen or Landed
Immigrant
• Is of “Good Character”

• Has demonstrated to C.B.S.A. they

have sufficient knowledge of the laws
regarding importing and exporting.

• Professional: (Licensed) written and

passed a 4 hour professional exam

• A Customs Brokerage must have at

least 1 Professional Customs Broker
on staff (“designated”).
Shipment Flow……….

• Conveyance Arrives in Canada with

freight onboard…….
Freight is offloaded to a
sufferance Warehouse
Or the conveyance waits
for Customs Clearance.
 Driver/Carrier notifies Customs and the Customs Broker
that shipment has arrived via A8A Cargo Control
Document
A commercial invoice or
a Canada Customs
Invoice is supplied with
the shipment
 Customs Broker notifies Customs of
shipments details electronically (via
A.C.R.O.S.S.)

R.M.D.: Release On Minimum

Documentation
 CBSA Release
• C.B.S.A. officers read information on
RMD and transfer release into the C.C.S.
(Customs Commercial System) and the
release decision will depend upon multiple
factors: - Importer History
- Commodity
- Country of Origin
 CBSA Release
Machine Release

Importers who have good clean importing records

with C.B.S.A. are put on Machine Release

Entries are cleared immediately after input by

Customs Officer
 Examination
• Whether random or not, shipments are
inspected from time to time.
– to detect prohibited or smuggled items
– other government department regulations
– verification
If there are no concerns, C.B.S.A.
releases
goods and the carrier or warehouse is
notified of release via Release
Notification System ( R.N.S.)
Freight is allowed to continue on its way to it’s final
destination (or to the importer)
 Customs Broker “Confirms” entry by
ving HS# , applying duties & taxes
nd other information via Form “B3”,
and will pay
C.B.S.A. on importer’s behalf.
Customs Broker uses the Customs
Tariff to apply the correct
Harmonized Tariff number,
Tariff Treatment, and Duty rate.
B3 form captures all information
regarding shipment, and amount
of Duties and GST owed. It is
sent to Customs hardcopy or
(more often) electronically.
 .

Then…

The Customs Broker bills the importer the

duties and GST along with a brokerage fee
 Goods & Services Tax
• “Value Added Tax” applied on every
transaction in the economic chain.

• Every registered party along the

chain can claim the GST back via an
“Input Tax Credit”.

• Remit or get a refund of the

difference between GST collected and
GST paid out.