A “How To” guide for importing into Canada giving you tips and showing you the risks. Event Description A " how to" guide for Basic Importing into Canada. In this session giving you tips and showing you the risks. Entry Process Tariff Classification Valuation Country of Origin Entry Summary Post Entry Record Keeping Valerie Michaud & Brittany King Valerie Michaud will be facilitating Basic Importing into Canada. Valerie brings 22 years of trade facilitation experience across all modes of Transport. Valerie holds both a Certified Customs Specialist (CCS) and Certified Trade Compliance Specialist (CTCS) Designations. Brittany King, a fellow team member, currently enrolled in Introductory customs course through the CSCB will co-present.

1. About the Presenters
• Valerie Michaud - brings 22 years of trade
facilitation experience across all modes of
Transport. Valerie holds both a Certified Customs
Specialist (CCS) and Certified Trade
Compliance Specialist (CTCS) Designations.
• Brittany King - a fellow team member, currently
enrolled in Introductory customs course through
the CSCB will co-present

2. GHY University:
Basics of Importing Into
Canada
June 17, 2015
Presented by Valerie Michaud and Brittany King

3. GHY International
• Our Vision
- Is to be a leader in providing innovative, tailor-
made solutions to North American importers and
exporters.
• Our Mission
- We are dedicated to providing the highest levels
of personalized professional international trade
services to our clients, whose needs shape all our
endeavors.

4. GHY Values: C A R E
• Clients are the reason we exist
• Associates matter
• Relentless pursuit of improvement
• Excellence in all we do

5. Basics Steps to Importing
• Admissibility and the Entry Process
• Posting Security
• Tariff
• Valuation
• Rules of Origin
• Marking of Imported Goods
• Entry summary
• Self- Adjustments – Reason to Believe
• Recordkeeping

6. Canada
The world’s second largest
country in total area of
9,984,671 km2

7. Canada Border Services Agency
119 LAND BORDER CROSSINGS
(61 operate 24/7 basis)
13 INTERNATIONAL AIRPORTS
(10 operate 24/7 basis)
27 RAIL SITES
3 MAIL PROCESSING CENTERS

8. ICECAP
Trade Presence at the Border
Primary Target Areas:
• TARIFF CLASSIFICATION
• ORIGIN
• VALUE
• OTHER GOVERNMENT DEPARTMENT CONCERNS

9. CBSC National Results for
Commercial Releases
13580896
13993298 14013417
15402846
12500000
13000000
13500000
14000000
14500000
15000000
15500000
16000000
2011-12 2012-13 2013-14 2014-15

10. Custom’s Initiatives
• E- MANIFEST
- enables electronic transmittal of advance commercial
information
• FAST: FREE AND SECURE TRADE
- expedites movement for prescreened commercial
drivers through dedicated lanes
• SINGLE WINDOW INITIATIVE
- will assist information exchange and clearance across
multiple other government departments

11. Basic Steps To Importing
STEP 1:
IMPORTER
STEP 2:
SUPPLIER
STEP 3:
CARRIER
STEP 4:
BROKER
STEP 5:
OGD
STEP 6:
CUSTOMS

12. STEP 1:
Importer
• Person • Business/Company

13. Importer Of Record
• Is a person or business who imports goods into Canada
• Responsible for ensuring that the shipment of goods complies
with all border clearance requirements
• Must file the required customs documents and pay the
assessed import duties, taxes and other fees
• Before importing into Canada, you must obtain from Canada
Revenue Agency a Business number (BN) for an import/export
account
• To register for a BN
• Call the CRA’S business window at 1 800 959 5525
• Visit the CRA’S Business Registration Online (BRO)

14. Pre-Importation Requirements
Gather as much information you can on the type of goods you want to import:
- descriptive literature, product composition information, product sample
Research what type of documents are required:
- are the goods controlled, regulated or prohibited by CBSA or any other government
departments?
- any import permits, special licenses, quota required or if the product is allowed into
Canada
Determine if the goods:
- are subject to any other duties and taxes, (excise tax or SIMA)
- verify whether the goods and service taxes (GST) is applicable
- identify the country of origin, manufacture and export
- qualify under a lower duty rate by using a NAFTA or any trade agreement with Canada
- the tariff classification number and applicable rate of duty

15. Additional Resources
• Determine the country of origin for goods you are importing:
Memorandum D11-4-2, Proof of Origin
• Ensure the goods you wish to import are permitted into Canada:
Memoranda Series D9, Prohibited Importation
• Determine whether the goods you intend to import are subject
to any permits, restrictions or regulations by CBSA or other
government departments:
Memoranda Series D19, Acts and Regulations of Other Government
Departments
• Ensure the marking of imported goods requirements are met:
Memorandum D11-1-3

16. STEP 2:
Supplier/Vendor

17. Supplier/Vendor
• Supply a copy of all invoices, Bill of Lading, NAFTA or any
other documents (Phytosanitary Certificate, Import Permits,
etc.)
• Notify the importer of changes in product that can effect
the duty rate or NAFTA qualifying status
• Provide the products in a timely manner and ensure that
they get what they’ve ordered

18. Trade Declaration
• All commercial shipments entering Canada require
the invoice(s) to be in English or French
• CBSA is willing to accept importer or owner
prepared documentation to assist in obtaining
release of commercial shipments, but supporting
evidence may be necessary. Commercial invoice is
the main document the CBSA relies on to provide
this evidence

19. Canada
Customs
Invoice

20. Step 3:
Carrier
• Truck• Air • Vessel • Rail

21. Carrier: Any Modes Of Transportation
The cargo and conveyance data must be received and validated by
the CBSA before the shipment arrives at the border.
Highway:
1 hour before the shipment arrives at the border
Air:
4 hours prior to arrival in Canada or at time of departure if the flight is less
than four hours in duration
Ocean:
Within prescribed time frames prior to arrival or prior to loading
depending on the type and origin of goods
Rail:
Minimum of 2 hours before the conveyance arrives at the border

22. CBSA’S E-Manifest Initiative
Team Processing
Quality Assurance
- Human & Technological
Shipment Notification Option
Manual = email, fax, etc.
Automated = EDI, CCI Web, .xls Line Loader, etc.
QC (docs-mfst)
Validate mfst to docs
QC (dbase/docs)
Dbase Match @ P/N
Central Document Review & Sort Process
Importer
PARS/PAPS Acceptance
Awaiting Arrival of Goods
ACROSS CADEX
Advanced Data PARS
E-Release Request
Importer/ Broker
e-Release
Current
Requirement
ACI
Carrier Obliga on
Manifest
Trip
Conveyance
Crew
Equipment
Shipment Data
Web Portal/EDI
e-Manifest
End State
Commercial Impact of CBSA’s e-Manifest Initiative
Mode Time Description
Marine 24 hrs Prior to loading or arrival
(depending on type & origin of goods)
Air 4 hrs 4 hours or at ‘wheels up’
Rail 2 hrs Prior to arrival
Hwy 1 hr Prior to arrival

23. Step 4:
Licensed Customs
Broker
LICENSED
CUSTOMS
BROKERS
Compliance
Prompt
Delivery
Accurate
Payments
Policy
Tracking
Record
Keeping

24. Licensed Custom Broker
• Once the broker receives the paperwork from the carrier, they will
review, prepare and send release requests electronically to CBSA
• Most goods can be transmitted electronically. Depending on the
product, a paper entry might be required at the time of release
• The carrier can track his/her shipment on the brokers’ pars tracker
• Once the goods are released the broker must account for unpaid
duties and taxes within 5 days of release
• Only a licensed custom broker may account for goods and pay
duties under Section 32 of the Customs Act as an agent of an
importer or owner

25. Broker’s Service Includes
• Obtaining the release of the imported goods
• Paying any duties that may apply
• Obtaining, preparing and presenting or transmitting the
necessary documents or data
• Maintaining records
• Responding to any CBSA concerns after payment.
• Offer a growing range of specialized services to help
importers develop new product lines, explore new markets,
evaluate the impact of global change, and cut costs

26. Step 5:
O.G.D
Other Government
Departments and Agencies

27. OGD
Other Government Departments and Agencies
• Canadian Firearms Program
• Canadian Food Inspection Agency
• Canadian Heritage
• Canadian Nuclear Safely
Commission
• Canada Post
• Competition Bureau
• Environment Canada
• Fisheries and Oceans Canada
• Foreign affairs, Trade and
Development
• Health Canada
• Industry Canada
• National Energy Board
• Natural Resources Canada
• Public Health Agency of Canada
• Transport Canada
Some of the departments are:

28. > 90 Acts of Parliament
• Canadian Food Inspection Agency
- Food labelling and food recalls, wood packaging
- International waste and used machinery/equipment
• Foreign Affairs, Trade and Development Canada
- Agricultural products, firearms, goods under trade embargoes, steel, textiles
and clothing
• Transport Canada
- Transportation of dangerous goods, vehicles and tires
• Health Canada
- Consumer goods, drugs, food, medical devices, natural health products,
pesticides, pharmaceuticals, radiation-emitting devices, toxic substances,
vitamins
• Canadian Firearms Program
- Firearms

29. Step 6:
CBSA
CANADIAN BORDER SERVICE AGENCY
(Customs)

30. CBSA OFFICER Responsibilities
The Agency's legislative, regulatory and partnership responsibilities include the following:
• Administering legislation that governs the admissibility of people and goods, plants and animals
into and out of Canada
• Detaining those people who may pose a threat to Canada
• Removing people who are inadmissible to Canada, including those involved in terrorism,
organized crime, war crimes or crimes against humanity
• Interdicting illegal goods entering or leaving the country
• Protecting food safety, plant and animal health, and Canada's resource base
• Promoting Canadian business and economic benefits by administering trade legislation and
trade agreements to meet Canada's international obligations
• Enforcing trade remedies that help protect Canadian industry from the injurious effects of
dumped and subsidized imported goods
• Administering a fair and impartial redress mechanism
• Promoting Canadian interests in various international forums and with international
organizations
• Collecting applicable duties and taxes on imported goods

31. Back to the Importer
• Once the goods arrive at their dock, it’s the importer’s
responsibility to make sure the goods received matches
what the purchase order is
• Importer must let the broker know if there is any shortages
or overages
• If there is a change in product that can effect the duty rate
or NAFTA qualifying status
• It’s important the importer checks to see if the correct tariff,
origin, value and description is being used

32. Posting Security
• Bond amounts are based on established risk guidelines set forth by
CBSA
• Annual continuous bonds cover all shipments within the given year and
are common for high value or high volume importers
• Single entry bonds cover just the entry of merchandise connected to
that one entry and is more common for infrequent importers
• Various types of Canada Customs Bonds include:
• Duty Free Shops,
• Release of Goods Bond
• Non-Resident GST Bond
• Bonded Highway Carrier Bond
• Temporary Importation of Articles Bond
• Customs Bonded Warehouse Bond
• Customs Brokers License Bond
• Customs Sufferance Warehouse Bond

33. Tariff
The Language of Trade and Cornerstone of Declarations
• Internationally recognized classification system for all goods
• Allows consistency of goods identification, regardless of
country of origin
• Comprises of 22 sections and 99 chapters in Canada:
Chapters 1-97; covers all goods, from live animals to
manufactured products to works of art.
Chapter 98; special relief provisions for non-
commercial goods
Chapter 99; provisions which eliminate or reduce
customs duty for qualifying goods.
• Over 5000 HS codes all goods, from live animals to manufactured products
to works of art

34. Tariff Classification Number
(HS CODE)
• Determines the duty, taxes and fees that are imposed
• All products must be fully classified prior to release
• Aids the government in compiling trade data
• Example of a complete tariff classification number:
9506.11.10.00
HS CODE for Downhill Skis:
HEADING - International 9506
SUB-HEADING - International 9506.11
TARIFF ITEM - Canada 9506.11.10
STATICALLY SUFFIX - Canada 9506.11.10.00
Memorandum D10-13-1, classification of goods

35. Valuation
Transaction Value Memorandum D13-4-4
• is the most common and preferred method by CBSA
• is defined as price paid or payable & includes:
I. certain commissions and brokerage
II. all packing costs and charges
III. the value of certain goods and services provided free or at
a reduced charge by the purchaser for use in the
production of the imported goods (assists)
IV. certain royalties and license fees
V. the value of any proceeds from the subsequent resale,
disposal, or use of the goods which accrue to the vendor
• freight and insurance are non-dutiable charges and can be
deducted if included in the invoice value

36. Canada’s Free Trade Agreements
- Chile
- Korea
- Colombia
- Mexico
- Costa Rica
- North American Free Trade
- Panama
- Honduras
- Peru
- Israel
- USA
- Jordan
- EFTA (European Free Trade
Association)
List of Countries that Canada has an agreements with:

37. NAFTA

38. NAFTA
North American Free Trade Agreement
• The NAFTA certificate of origin must be completed and signed by the exporter
of the goods
• Where the exporter in its territory is not the producer of the goods, the
exporter may complete and sign the certificate on the basis of:
 Its knowledge of whether the good qualifies as an originating good
 Its reasonable reliance on producer’s written representation
 A complete and signed certificate, voluntarily provide to the exporter
by the producer
• Certificates of origin may be applicable to a single importation or to multiple
importations of identical goods that occur within a specified period not
exceeding twelve months
• No certificate = $1000.00 amp plus duty and interest may be applicable
• This form is legally binding
$1,000 AMP
• us Duty and Interest May Be Applicable

39. Rules of Origin
• Used to determine if goods qualify for a particular tariff treatment
• Non-free trade agreement tariff treatments (FTA):
Originate in a country where there has been a transformation of the good
during a production process and where required a minimum value added to
the goods in the country where the goods were produced. D11-4-3
• FTA – a change in tariff classification as required by a rule specific to the
finished good and where required a regional value content provision
• Benefits of a particular tariff treatment must meet certification and direct
shipment conditions
Customs D Memoranda provide proof of origin and rules of origin.
These are provided in D11 General Tariff information.

40. Marking of Imported Goods
• Clearly indicate the country of origin
• Marking shall be in English, French or Spanish for NAFTA countries
• Marking shall be in English or French for Non-NAFTA countries
• Encouraged to use the full name of the origin, however abbreviations may be
necessary where there are space limitations on a product.
• Legible, sufficiently permanent, and capable of being easily seen during normal
handling of the goods or their container.
• Marking should appear on the individual article for Non-NAFTA countries
• If point of sale packaging conceals the marking on the product, then the packaging
should also be marked.
• Goods that require Marking:
 goods for personal or household use, hardware, paper products, apparel
 hardware, novelties and sporting goods, horticultural products
Memorandum D11-4-16

41. Marking Exemptions
Three examples of the 21 exemptions:
• Goods for charitable purposes and not for the purpose of sale: The importer
may be required to submit evidence that the goods are for charitable purposes
and not for sale
• Goods that are gifts or bequests: The importer may be required to submit
evidence that goods are either gifts or bequests. For gifts, a letter from the
donor indicating that no sale has taken place is an example of what
documentation may service as satisfactory proof.
• Goods that are antiques or goods that have been produced more than 20 years
prior to importation: For goods imported from NAFTA countries, it may be
evident to the border services officer at the time of importation that the goods
are more than 20 years old. However, it may be necessary to present evidence
of the age of the goods. A certificate of antiquity or a letter from an antique
dealer may be satisfactory.
• D11-3-1 Appendix B

42. Form B3:
Canada
Customs
Coding
Form

43. Self- Adjustment
“Reason to Believe”
• Self-adjustment process is activated when the importer has
reason to believe that a declaration of origin, tariff classification,
or value for duty was incorrect
• Importer has 90 days to make a correction after the importer has
reason to believe that the original declaration was incorrect. The
obligation to make a correction ends four years after the goods
are accounted
• Importers who do not file corrections within the 90-day period
will be liable to penalties under the Administrative Monetary
Penalty System (AMPS)
Memorandum D11-6-6

44. AMPS
Administrative Monetary Penalty System
• Know and understand the requirements related to your import
and export transactions
• Consult service providers to ensure that all aspects of your import
and export transactions are compliant
• Verify that import and export transactions are fully compliant with
requirements
• Develop and implement a compliance plan
Memorandum D22-1-1

45. Recordkeeping
Requirements
• Applies to resident and non-resident importers, including exporters abroad who
ship commercial goods to themselves into Canada
• Records maintained in electronic imaged or microfilmed format are recognized
as records of account, provided the medium can be related back to the
supporting source documents or hard copy documents and is supported by a
system capable of producing an accessible and readable copy.
• All record of account (including source documents) available in paper format
must be kept, except where an acceptable electronic imaging or microfilming
program must adhere to the National Standards of Canada, CAN/CGSB-72.4-
2005 & CAN/CGSB-72.11-93
• The CBSA e-Manifest Portal users are required to retain separate records in
respect of imported goods in accordance with the information provided in this
memorandum. The e-Manifest Portal is not to be used for recordkeeping.
• All records are to be maintained for 6 years plus current year
Memorandum D17-1-21

46. QUESTIONS?
If you require further information on any of these
topics please email:
valerie@ghy.com or consulting@ghy.com