Customs Broker and Freight Forwarder Serving Companies Since 1985
IMPORTANT NOTICE : The F.A.Q. section is a tool that we use to inform our customers about the most frequently asked questions. As it is difficult for us to cover all the scenarios or to know the level of knowledge of all, we encourage you to contact us if you have subjects which are not covered in the texts below and which you would like to discuss.
Answer: Compliance is a term that the CBSA (Canada Border Services Agency) and several government departments and agencies use to describe whether a person or business is complying with the laws and regulations associated with the imported product. Compliance is also a level used by the CBSA to determine if your company will be allowed to participate in certain programs in the future.
Failure to comply with laws and regulations will result in the application of RSAP (Pecuniary Administrative Sanctions Regime) penalties.
Some examples of non-compliance:
- A declaration at the time of importation that contains incorrect information regarding the value or origin of the imported goods.
- Not having provided a required permit at the time of importation.
- Not having corrected within 90 days the classification or any other information that is incorrect on your declarations (B3).
AMPS stands for Administrative Monetary Penalty System.
“The Administrative Monetary Penalty System (AMPS) is a civil penalty regime that authorizes the CBSA to impose monetary penalties for violations of customs laws, regulations and program requirements.
AMPS covers contraventions of the Customs Act and Customs Tariff and their regulations, as well as contraventions of the terms of licensing agreements and undertakings.
The CBSA imposes monetary penalties based on the nature, frequency and seriousness of the violation. Most penalties are graduated and take into account the compliance history of customers. AMPS does not affect businesses that comply with customs requirements.
All government agencies and departments that have regulations regarding imported goods may be involved such as: Transport Canada, Canadian Food Inspection Agency, Natural Resources Canada, Health Canada, Canada Border Services Agency, Foreign Affairs and Trade International Canada.
Given the importance and scope of the compliance implications we recommend that you contact us on this subject to discuss your particular situation and create a compliance plan tailored to your needs and thus ensure your current compliance. and future.
Ensuring your compliance now will save you time, money in the future and protect your good record with the government.
The importer is liable under the Customs Act for declarations made by him or an agent (customs broker). The CBSA has taken the position that the owner is the ultimate responsible party for the importation of their product and is responsible for all statements made on their behalf.
For this reason, it is imperative that the importer verify their customs broker's invoices and declarations submitted to the CBSA on their behalf within 30 days of the release of the goods and immediately notify them of any errors or omissions. committed. Failure to make corrections within the prescribed timeframe can result in costly penalties for the importer.
Yes. Regardless of whether or not there are duties to be paid, the customs coding must be exact. In the event of errors and if they are not corrected within 90 days of the date of final recognition, penalties may be imposed.
Reason to believe is knowledge or information that would lead one to believe that the information/documentation presented at the time of import is inaccurate.
Some examples would be:
- Customs decision
- Detailed Customs Adjustment Statement (DAS/RDR)
- Changes to your supplier's commercial invoice.
- Quantities received different from those declared at the time of importation
Communication with other parties indicating errors/omissions.
Once you have reason to believe there is an error or inaccuracy in a declaration, you are required by the Customs Act to have it corrected within 90 days.
IMPORTANT NOTE: The fact that you use a customs broker does not remove the responsibility of the importer or change the application of "reason to believe". The importer cannot plead lack of knowledge either. Your customs broker is an agent acting on your behalf, and as such you are responsible for declarations made on your behalf.
For this reason, it is the importer's responsibility to check their import documents and ensure that the information is correct. Your customs broker is there to help you, but that help is based on information you have provided to them or received from your suppliers.
We cannot stress enough the importance of providing complete and accurate information. For example, if the imported product is repetitive, the customs broker enters the information provided into its database and all future shipments will be priced under the same classification. If the information provided by the importer is incomplete or incorrect and results in misclassification, the importer may be subject to penalties, additional duties and taxes and interest costs for each import of that product.
Is the customs broker responsible for this error(s)? No, the customs broker is acting in good faith based on his knowledge and expertise based on the information provided and available at the time of import.
NAFTA is the acronym for the North American Free Trade Agreement, which came into force in 1994 for Canada, the United States and Mexico. Under this trade agreement, goods imported into Canada that were manufactured in one of these countries qualify under NAFTA regulations, are eligible to be imported duty free.
You must ensure that all the fields appearing on the certificate of origin are correctly filled in, including those for the preference criterion (#7), the producer (#8), and the net cost (#9) and comply with the rule concerned . We offer this verification service for a nominal fee.
No, however, we recommend that you obtain a certificate from your supplier because if Canadian customs reassess the classification of your goods under a tariff classification involving customs duties, you will no longer have the possibility after 1 year following the date of the import to take advantage of NAFTA preferential treatment
Yes, but for your imports whose value is less than $1600 CAD you can use a form entitled "Declaration of origin for commercial imports under $1600 CAD". For your benefit, you can find this document on our WEB site under the “FORMS/ NAFTA” menu. Please note that this document must be signed by the exporter.
For shipments of $1600 CAD or more, you will need the NAFTA Certificate of Origin AT ALL TIMES.
Taking the benefits of NAFTA without having a valid NAFTA Certificate of Origin in hand is a serious offense.
You will be subject to penalties under the Administrative Monetary Penalty System (AMPS) for each import that does not have valid certificates of origin in support, up to 4 years preceding the customs examination.
NO. Even if your goods are manufactured in a country that is part of NAFTA (Canada, United States or Mexico), it does not automatically mean that your goods will be eligible for benefits (ie; duty-free importation), under of NAFTA.
Goods must qualify under the rules of origin set out in the North American Free Trade Agreement.
The product, as well as the country of manufacture of all ingredients/components play an important role in determining its status.
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