Check out the three phases of CUSTOMS CLEARANCE to learn more.
Before importing commercial goods into Canada, as a business or an individual, you will need to assure you are clear about the following areas:
1. Business Number
2. Country of Origin
Identify the country where your goods originate.
3. Goods Classification
The goods have to be classified for tariff purposes. The tariff clarification number will be used to determine the rate of duty that will be applied to your goods. Your Customs Broker is skilled to classify your goods. Things to do for goods classification:
4. Restricted Entry
Certain goods are not allowed to be imported into Canada:
5. Other Government Departments
Many goods are subject to the requirements of other government departments (OGD) and agencies and may require permits, certificates, and/or inspection.
6. Special Import Measures Act
Certain goods are subject to measures under the Special Import Measures Act (SIMA)
7. Domestic Controls
Before you import certain goods into Canada, you must determine whether they are subject to domestic controls.
8. Trade Agreements
You need to assess or request the help of your Broker to assess if your goods fall under any of the trade agreements across nations that can offer you a preferential duty rate.
For more information on prohibited products, please consult Memoranda Series D9, Prohibited Importations published by CBSA.
The CBSA’s Other Government Departments and Agencies: Reference List for Importers provides a list of some of the most commonly imported commodities that may require permits and/or certificates.
More comprehensive information can be found in Memoranda Series D19, Acts and Regulations of Other Government Departments.
BorderStream as your Broker will perform the following tasks for release of your goods:
1. Goods Classification
Classify your goods and build a database containing cross reference to a 10 digit Tariff classification number for each of the goods you will be importing into Canada.
2. Applicable Tariff Treatment
Determine the Applicable Tariff Treatment for your goods and respective rate of duty, considering any preferential duty rates.
CLICK HERE to learn more about Preferential Rates.
3. Canadian Goods and Services Taxes
Determine if your goods are subject to the Canadian Goods and Services Tax (GST).
4. Exchange Rate
BorderStream uses the Bank of Canada’s exchange rate where applicable. CLICK HERE to see current exchange rate.
5. Value of Goods
Determine if the value of goods for the purposes of applicable duties.
6. CBSA Approval
Submit all relevant release of goods documents to CBSA (electronically)
7. Payment of Duties & Taxes
Pay Duties and Taxes to CBSA within prescribed time limit
CLICK HERE to learn more about Preferential Rates
Goods originating from all countries are entitled to use the rate of duty
specified under this category with the exception of North Korea.
This category lists reduced rates of duty for goods based
on existing trade agreements across nations:
North American Free Trade Agreement (NAFTA):
United States Tariff (UST),
Mexico Tariff (MT),
Mexico-United States Tariff (MUST);
Chile Tariff (CT);
Canada-Israel Agreement Tariff (CIAT);
Canada-Costa Rica Tariff (CRT);
Canada-European Free Trade Association Free Trade Agreement:
Iceland Tariff (IT), Norway Tariff (NT), Switzerland-Liechtenstein Tariff (SLT);
Canada-Peru Free Trade Agreement: Peru Tariff (PT);
Canada-Colombia Free Trade Agreement:
Colombia Tariff (COLT);
Canada-Jordan Free Trade Agreement: Jordan Tariff (JT);
Canada-Panama Free Trade Agreement: Panama Tariff (PAT); and
Canada-Honduras Free Trade Agreement: Honduras Tariff (HNT); and
Canada-Korea Free Trade Agreement:
Korea Tariff (KRT) or rates of duty based on special tariff provisions such as the:
General Preferential Tariff (GPT);
Least Developed Country Tariff (LDCT);
Commonwealth Caribbean Countries Tariff (CCCT);
Australia Tariff (AUT); and
New Zealand Tariff (NZT).
What To Do:
1. Maintain Originals
Please maintain all records pertaining to the import for up to six years.
2. Audit & Inspection
Imported goods can be subject to an audit/inspection by the Canadian Customs up to 4 years after importation and the duties and taxes can be revised and new duties and taxes can be assessed accordingly.
3. Accounting Adjustments
Any error in the accounting information identified post release of goods must be reported to CBSA.
For information on the dispute resolution process, refer to Memorandum D11-6-7, Importers’ Dispute Resolution Process for Origin, Tariff Classification, and Value for Duty of Imported Goods..
For information on the coding and processing of adjustment request forms, please refer to Memorandum D17-2-1, The Coding, Submission and Processing of Form B2 Canada Customs Adjustment Request.
For more information on self-adjustment, please refer to Memorandum D11-6-6, “Reason to Believe” and Self-Adjustments to Declarations of Origin, Tariff Classification, and Value for Duty and Memorandum D6-2-3, Refund of Duties.