Customs Issues and Procedure Part 2.pptx

Important Dates
▶ Assignment 3/21/2024
▶ Midterm 3/27/2024
▶ Final 4/5/2024
This Photo by Unknown Author is licensed under CC BY-SA-NC

Terminal Learning
Objectives
▶ Understand the purpose of a
bill of lading.
▶ Complete a Canada Customs
Invoice.
▶ Recognize the purpose of a
commercial invoice.
▶ Describe the steps involved
when commercial goods are
imported.
▶ Realize the importance of
Advance Commercial
Information.
▶ Understand the arrival and
reporting of imported goods.

ARRIVAL AND
REPORTING OF
IMPORTED
COMMERCIAL
GOODS
▶ Before goods arrive in
Canada, certain documents
should be prepared. These
documents, often in the form
of data, can include a bill of
lading, covering
transportation, and a
commercial or Canada
Customs Invoice covering
the goods. Other
documentation may be
required, such as permits for
goods regulated by other
government departments.

BILLS OF LADING
▶ A Bill of Lading (BOL or BL)
is a crucial legal document
in the shipping and logistics
industry. It serves as both a
receipt for goods shipped
and a contract between a
shipper (usually the seller
or exporter) and a carrier
(such as a shipping
company or trucking
company). The Bill of
Lading contains essential
information about the cargo
being transported and the
terms and conditions of the
shipment. This Photo by Unknown Author is licensed under CC BY-SA

BILLS OF LADING
▶ Here are some key components and
purposes of a Bill of Lading:
• Identification: It identifies the
shipper, the consignee (receiver),
and the carrier. This includes their
names, addresses, and contact
information.
• Description of Goods: It provides a
detailed description of the goods
being transported, including their
quantity, weight, dimensions, and
any special handling instructions.
• Origin and Destination: The Bill of
Lading specifies the origin (the place
where the goods were loaded onto
the carrier) and the destination (the
place where they are to be
delivered).
• Date of Shipment: It includes the
date when the goods were loaded
This Photo by Unknown Author is licensed under CC BY-SA

BILLS OF LADING
▶ Here are some key components and
purposes of a Bill of Lading:
• Freight Charges: The Bill of Lading
outlines the agreed-upon freight
charges or shipping costs for the
transport of the goods. It may also
specify who is responsible for paying
these charges (e.g., shipper,
consignee, or a third party).
• Terms and Conditions: It contains the
terms and conditions of the
transportation contract, including
liability limitations, delivery timelines,
and any special instructions or
requirements.
• Signature and Acknowledgment:
Typically, the Bill of Lading requires
the signature of the carrier or its agent
as proof of receipt of the goods. This
acknowledgment signifies that the
carrier has taken possession of the
goods in the stated condition.

BILLS OF LADING
▶ There are several types of Bills of
Lading, including:
• Straight Bill of Lading: This is a non-
negotiable document, meaning that it
is not transferable to another party. It
is often used when the shipper
intends to retain control over the
goods until they reach the consignee.
• Order Bill of Lading: This is a
negotiable document that can be
transferred to another party through
endorsement. It is often used in
international trade when the seller
wants to retain control of the goods
until they receive payment or when
the buyer wants to transfer ownership
of the goods to another party before
they arrive.
• Bearer Bill of Lading: This is similar to
an order Bill of Lading, but it is
transferable by physical possession
of the document, rather than through

BILLS OF LADING
▶ Bills of Lading play a
crucial role in international
trade, as they facilitate the
movement of goods,
provide a record of the
shipment, and serve as
evidence in case of
disputes or insurance
claims. They are also
used in various modes of
transportation, including
maritime, road, rail, and
air transport. This Photo by Unknown Author is licensed under CC BY-SA-NC

BILLS OF LADING
▶ A Bill of Lading (B/L) is a
crucial document in
international trade and
shipping. It serves as
evidence of a contract of
carriage and receipt of
goods. These components
collectively form a
comprehensive Bill of
Lading, documenting the
key details and terms of
the shipment.

BILLS OF LADING
▶ Here are the typical components
found in a Bill of Lading:
• Title: The document is typically
titled "Bill of Lading" at the top.
• Name and Address of Carrier:
The legal name and address of
the carrier, the company or
individual responsible for
transporting the goods.
• Shipper's Details: Information
about the shipper (sender)
including name, address, and
contact details.
• Consignee's Details: Information
about the consignee (receiver)
including name, address, and
contact details.

BILLS OF LADING
• Description of Goods: Detailed
description of the goods being
shipped, including quantity,
weight, volume, dimensions, and
any special handling instructions.
• Port of Loading: The location
where the goods are loaded onto
the carrier's vessel.
• Port of Discharge: The destination
port where the goods will be
unloaded from the carrier's vessel.
• Vessel Details: Information about
the vessel carrying the goods,
including its name, registration
number, and voyage number.

BILLS OF LADING
• Date of Issue: The date when
the Bill of Lading is issued.
• Terms of Shipment: Specifies
the agreed-upon terms of
shipment, such as whether it's
"Freight Prepaid" or "Freight
Collect", indicating who is
responsible for paying the
shipping charges.
• Freight Charges: Details about
the freight charges, including
any prepayment made by the
shipper.
• Special Instructions: Any special
handling instructions or

BILLS OF LADING
• Carrier's Signature: The signature of
an authorized representative of the
carrier, acknowledging receipt of the
goods for shipment.
• Bill of Lading Number: A unique
identifier for the document, which is
used for tracking and reference
purposes.
• Terms and Conditions: The terms
and conditions governing the
shipment, including liability
limitations, claims procedures, and
dispute resolution mechanisms.
• Notations: Any additional notations
or remarks relevant to the shipment,
such as the condition of the goods
upon receipt.

BILLS OF LADING
▶ Here are the typical
components found in a Bill of
Lading:
• Signature of Shipper: The
signature of the shipper or
their agent, acknowledging
the terms and conditions of
the shipment.
• Signature of Consignee: The
signature of the consignee or
their agent, indicating receipt
of the goods upon delivery.

Importing Goods Into
Canada
▶ Importing goods into Canada involves
several steps and processes to ensure
compliance with Canadian customs
regulations. Here's an overview of the
typical process:
1. Determine Import Requirements: Before
importing goods into Canada, it's
essential to determine whether the
goods are admissible and if any
restrictions or regulations apply. This
may include verifying the Harmonized
System (HS) classification, checking for
permits, licenses, or quotas, and
ensuring compliance with health, safety,
and environmental standards.
2. Obtain Business Number: If you're
importing goods for commercial
purposes, you'll need to obtain a
Business Number (BN) from the
Canada Revenue Agency (CRA). The
BN serves as your identifier for various
government programs and permits
related to importing.

Canada
▶ Importing goods into Canada
involves several steps and
processes to ensure compliance
with Canadian customs regulations.
Here's an overview of the typical
process:
4. Register for Importer Account:
Register with the Canada Border
Services Agency (CBSA) to obtain
an importer account. This allows you
to conduct customs-related
transactions, including submitting
import documentation, paying duties
and taxes, and accessing CBSA's
online tools and services.
5. Arrange Shipping and Logistics:
Arrange transportation for your
goods to Canada, whether by sea,
air, rail, or truck. Coordinate with
shipping companies, freight

Canada
▶ Importing goods into Canada involves
several steps and processes to ensure
compliance with Canadian customs
regulations. Here's an overview of the
typical process:
5. Complete Customs Documentation:
Prepare and submit the necessary
customs documentation, including a
Canada Customs Invoice (CCI) or
Commercial Invoice, Bill of Lading or Air
Waybill, and any required permits or
certificates. Ensure that the
documentation accurately reflects the
nature, quantity, value, and origin of the
goods.
6. Submit Entry Declaration: File an entry
declaration with the CBSA for the
imported goods. This involves providing
detailed information about the shipment,
including the importer's details, goods
description, value, and tariff
classification. Entry declarations can be
submitted electronically through the

Canada
process:
7. Pay Duties and Taxes: Calculate
and pay any applicable duties,
taxes, and fees on the imported
goods. Duties are based on the tariff
classification and value of the
goods, while taxes such as Goods
and Services Tax (GST) or
Harmonized Sales Tax (HST) may
also apply.
8. Customs Clearance: Once the entry
declaration is processed and
duties/taxes are paid, the goods
undergo customs clearance. CBSA
officers verify the documentation,

Canada
process:
9. Arrange Delivery and Distribution:
Arrange for the final delivery and
distribution of the goods to their
destination within Canada.
Coordinate with carriers, freight
forwarders, or other logistics
providers to ensure timely and
efficient delivery.
10. Maintain Records and Compliance:
Keep accurate records of import
transactions, including
documentation, invoices, and
payment receipts. Ensure ongoing
compliance with customs

Significance of The
CCI In Facilitating
Trade
▶ The Canada Customs Invoice
(CCI) plays a significant role in
facilitating trade between Canada
and other countries in several
ways:
Customs Clearance: The CCI
provides essential information
about the imported goods,
including their description, value,
and origin. This information is
crucial for customs authorities to
assess duties, taxes, and other
fees, as well as to verify
compliance with import
regulations. By accurately
documenting the goods and their
attributes, the CCI expedites the
customs clearance process,
reducing delays and ensuring

Significance of The
CCI In Facilitating
Trade
ways:
Tariff Classification: The CCI
typically includes the Harmonized
System (HS) classification codes
for the imported goods. These
codes classify products according
to their nature, composition, and
intended use, facilitating
uniformity and consistency in
international trade. Proper tariff
classification helps determine
applicable duty rates, ensuring
that importers pay the correct
amount of duties and taxes and
comply with customs regulations.

Significance of The
CCI In Facilitating
Trade
ways:
Trade Compliance: The CCI
serves as a declaration by the
importer or exporter regarding
the accuracy and completeness
of the information provided. By
signing the CCI, importers and
exporters affirm their
commitment to compliance with
Canadian customs regulations
and international trade
requirements. This helps
promote transparency, integrity,
and trust in trade transactions,

Significance of The
CCI In Facilitating
Trade
facilitating trade between
Canada and other countries in
several ways:
Documentary Requirements:
Many countries, including
Canada, require importers to
submit a CCI or similar customs
declaration document for
imported goods. By fulfilling this
documentation requirement,
importers demonstrate their
adherence to legal and
regulatory standards, facilitating
trade while minimizing the risk of
non-compliance and associated
penalties.

Significance of The
CCI In Facilitating
Trade
ways:
Trade Facilitation: The CCI
streamlines trade procedures by
providing a standardized format for
documenting import transactions.
This simplifies administrative
processes for importers, customs
authorities, and other stakeholders
involved in international trade,
enhancing efficiency and reducing
administrative burdens. By
promoting consistency and
interoperability in trade
documentation, the CCI contributes
to the overall facilitation of trade

Significance of The
CCI In Facilitating
Trade
▶ Overall, the Canada Customs
Invoice (CCI) serves as a vital
tool for facilitating trade
between Canada and other
countries by providing
essential information,
ensuring compliance with
customs regulations, and
streamlining trade
procedures. Its significance
lies in its ability to promote
transparency, efficiency, and
integrity in international trade
transactions, contributing to
the smooth flow of goods
across borders and the
growth of global commerce.

CANADA CUSTOMS
INVOICE
▶ A Canada Customs Invoice
(CCI) is a specialized
document used for importing
goods into Canada. It is an
essential part of the customs
clearance process and
provides detailed information
about the imported goods,
their value, and other
relevant data required by
Canadian customs
authorities. The Canada
Customs Invoice is similar in
purpose to a commercial
invoice but includes specific
fields and information
necessary for customs
purposes.

CANADA CUSTOMS
INVOICE
▶ Key information typically included on a
Canada Customs Invoice includes:
• Transaction Information: This section
includes details about the transaction, such
as the date of the sale, the names and
addresses of the buyer and seller, and a
description of the goods.
• Shipment Details: Information about the
shipment, including the mode of
transportation, the port of entry into Canada,
the country of origin of the goods, and the
method of shipping (e.g., air, sea, truck).
• Details of Goods: This section provides a
detailed description of the goods being
imported, including their quantity, weight,
unit of measure, and value. It may also
include the harmonized system (HS) code,
which classifies the goods for customs
purposes.
• Price and Terms of Sale: Information
regarding the price of the goods, currency
used in the transaction, terms of sale (e.g.,
FOB, CIF), and any adjustments or This Photo by Unknown Author is licensed under CC BY-SA
This Photo by Unknown Author is licensed under CC BY-NC-ND

CANADA CUSTOMS
INVOICE
▶ Key information typically included on a
Canada Customs Invoice includes:
• Payment and Currency: Details about
how payment was made for the goods and
the currency used for the transaction.
• Transportation and Freight Charges:
Information about the shipping method,
carrier details, and any associated freight
charges.
• Country of Origin: The country where the
goods were originally produced or
manufactured.
• Exporter's Declaration: A statement
signed by the exporter or their agent
certifying the accuracy of the information
provided on the Canada Customs Invoice.
• Certification and Declaration: A
declaration stating that the information on
the invoice is true and accurate to the best
of the exporter's knowledge.

CANADA CUSTOMS
INVOICE
▶ The Canada Customs Invoice is a
critical document because it helps
Canadian customs authorities
determine the value of the imported
goods, assess applicable duties
and taxes, and ensure compliance
with trade regulations. It is used for
both commercial and non-
commercial imports and is often
required for customs clearance.
Importers or their customs brokers
typically prepare the Canada
Customs Invoice and submit it to
Canadian customs authorities
along with other required
documentation when clearing
goods through customs. It is
essential to accurately complete
the CCI to avoid delays or issues
during the customs clearance

CANADA CUSTOMS
INVOICE
▶ The specific fields on a Canada Customs Invoice
(CCI) may vary slightly depending on the
template or form used, but generally, a CCI
includes the following key fields and their
descriptions:
 Invoice Number: A unique identifier for the
invoice. This helps in tracking and referencing
the document.
 Date of Invoice: The date when the invoice was
issued.
 Seller (Exporter):
• Name and Address: The legal name and address
of the seller or exporter.
• Business Number (if applicable): The seller's
business registration or tax identification number.
 Buyer (Importer):
• Name and Address: The legal name and address
of the buyer or importer.
• Business Number (if applicable): The buyer's
business registration or tax identification number.
 Ship To (Consignee):
• Name and Address: The name and address of
the party receiving the goods if different from the
buyer.

CANADA CUSTOMS
INVOICE
▶ The specific fields on a Canada Customs Invoice (CCI)
may vary slightly depending on the template or form used,
but generally, a CCI includes the following key fields and
their descriptions:
 Details of Goods:
• Description of Goods: A detailed description of each item
being imported, including the quantity, unit of measure (e.g.,
kilograms, pieces), and any identifying information (e.g., part
numbers).
• Country of Origin: The country where the goods were
originally produced or manufactured.
• Harmonized System (HS) Code: The classification code
used to categorize the goods for customs purposes.
• Value of Goods: The unit price and total value of each item.
• Currency: The currency in which the transaction is
denominated.
• Total Invoice Value: The sum of the values of all the goods
being imported.
 Terms of Sale:
• Incoterms: The International Commercial Terms (Incoterms)
that specify the delivery and risk-sharing responsibilities
between the buyer and seller.
 Country of Export: The country from which the goods are
being exported to Canada.
 Currency Exchange Rate: If the invoice is in a currency
other than Canadian dollars, the exchange rate used for
currency conversion.
 Total Amount Payable: The total amount owed by the
buyer to the seller, including the value of goods, freight,

CANADA CUSTOMS
INVOICE
▶ The specific fields on a Canada Customs Invoice
(CCI) may vary slightly depending on the
template or form used, but generally, a CCI
includes the following key fields and their
descriptions:
 Freight and Other Charges:
• Description of Charges: A breakdown of any
additional charges related to the shipment, such as
freight, insurance, and handling fees.
• Amount: The total amount for each charge.
 Payment Information:
• Terms of Payment: The agreed-upon terms for
payment (e.g., advance payment, open account).
• Method of Payment: The method used for
payment (e.g., cash, letter of credit, wire transfer).
 Certification and Declaration:
• Declaration: A statement by the exporter or their
agent certifying the accuracy of the information
provided on the CCI.
• Signature: The signature of the exporter or
authorized representative.
 Additional Information: Any additional details
or special instructions relevant to the transaction
or shipment.

CANADA CUSTOMS
INVOICE
▶ It's important to note that
the Canada Customs
Invoice must be
completed accurately and
in accordance with
Canadian customs
regulations. Errors or
omissions in the CCI can
lead to delays or issues
during the customs
clearance process.
Importers often work with
customs brokers or trade
experts to ensure
compliance with customs
requirements.

CCI Crucial In
International Trade
▶ The Canada Customs Invoice (CCI) is
crucial in international trade, particularly
in importing goods into Canada, for
several reasons:
• Legal Requirement: The CCI is a
mandatory document required by the
Canada Border Services Agency (CBSA)
for importing goods into Canada. It serves
as a customs declaration, providing
essential information about the imported
goods, their value, and their origin.
Failure to submit a CCI or provide
accurate information on the document
can result in delays, fines, or other
penalties.
• Customs Clearance: The CCI facilitates
the customs clearance process by
providing detailed information about the
imported goods, including their
description, quantity, value, and
classification. This information allows
CBSA officials to assess duties, taxes,
and other fees accurately, verify

CCI Crucial In
International Trade
crucial in international trade, particularly in
importing goods into Canada, for several
reasons:
• Tariff Classification: The CCI typically
includes the Harmonized System (HS)
classification codes for the imported goods.
These codes classify products according to
their nature, composition, and intended
use, enabling uniformity and consistency in
international trade. Proper tariff
classification helps ensure that the correct
duty rates are applied, minimizing the risk
of overpayment or underpayment of duties.
• Trade Compliance: By signing the CCI,
importers and exporters declare the
accuracy and completeness of the
information provided. This declaration
affirms their commitment to compliance
with Canadian customs regulations and
international trade requirements. Ensuring
compliance with trade regulations helps
mitigate the risk of customs audits,
investigations, or other enforcement

CCI Crucial In
International Trade
crucial in international trade, particularly in
importing goods into Canada, for several
reasons:
• Documentary Evidence: The CCI serves as
documentary evidence of the commercial
transaction between the importer and
exporter. It provides a record of the goods
shipped, their value, and the terms of sale,
which can be used for accounting, tax, and
audit purposes. Having accurate and
complete documentation is essential for
demonstrating the legitimacy of trade
transactions and resolving disputes or
discrepancies that may arise.
• Trade Facilitation: By providing a
standardized format for documenting
import transactions, the CCI streamlines
trade procedures and reduces
administrative burdens for importers,
customs authorities, and other
stakeholders. Its use promotes
consistency, transparency, and efficiency
in international trade, facilitating the

CCI Crucial In
International Trade
▶ In summary, the Canada
Customs Invoice (CCI) is
crucial in international trade,
particularly in importing
goods into Canada, because
it serves as a legal
requirement for customs
clearance, facilitates trade
compliance, provides
documentary evidence of
transactions, and promotes
trade facilitation and
efficiency. Its accurate and
timely completion is essential
for ensuring smooth and
compliant importation of
goods into Canada.

Example - Compliance
and Documentation
Accuracy
▶ Company A, based in
Canada, imports electronic
components from Company
B, located in Asia, for
manufacturing purposes.
Company A regularly
receives shipments of
electronic parts from
Company B to maintain its
production operations. On
one occasion, Company B
fails to provide a properly
completed CCI with the
shipment.

and Documentation
Accuracy
▶ Consequences:
• Customs Delay: Without the required
documentation, the shipment is held up at
the border by the Canada Border
Services Agency (CBSA) for customs
clearance.
• Administrative Hassle: Company A must
spend additional time and resources
communicating with CBSA officials and
Company B to resolve the documentation
issue.
• Potential Penalties: Failure to provide
accurate and complete customs
documentation could result in fines or
penalties imposed by CBSA.
Lesson Learned:
• Importance of Proper Documentation:
This case highlights the critical role of the
CCI in facilitating customs clearance and
ensuring compliance with import
regulations. Companies engaging in
international trade must ensure that all
required documentation, including the
CCI, is accurately completed and

Example - Tariff
Classification and Duty
Assessment
▶ Company C imports a
shipment of clothing items
from Company D, located in
Europe, for retail sale in
Canada. The shipment
includes various types of
garments, each classified
under different tariff codes in
the Harmonized System
(HS). Company C relies on
the information provided in
the CCI to determine the
appropriate duty rates for
each product.

and Documentation
Accuracy
▶ Consequences:
• Duty Discrepancy: Upon inspection, CBSA
officials discover discrepancies between
the tariff classifications stated in the CCI
and their assessment of the goods. Some
items are misclassified, leading to an
underpayment of duties by Company C.
• Duty Adjustment: CBSA adjusts the duty
assessment based on their determination
of the correct tariff classifications, resulting
in additional duties owed by Company C.
• Compliance Risk: Company C faces
potential penalties or audits due to the
inaccurate tariff classification and duty
underpayment.
Lesson Learned:
• Accuracy in Tariff Classification: This case
underscores the importance of accurately
classifying goods according to the HS
codes specified in the CCI. Proper tariff
classification ensures the correct
assessment of duties and taxes,
minimizing the risk of underpayment or
overpayment and maintaining compliance

Case Studies
Conclusion
▶ These case studies
demonstrate the significance
of the Canada Customs
Invoice (CCI) in international
trade, emphasizing its role in
facilitating customs
clearance, ensuring
compliance with import
regulations, and determining
duty assessment. Proper
completion and submission
of the CCI are essential for
smooth and compliant
importation of goods into
Canada.

Canada Customs Invoice
Requirements

COMMERCIAL
INVOICE
▶ A Commercial Invoice is a
fundamental document used in
international trade and business
transactions. It provides a detailed
record of a commercial transaction
between a seller (exporter) and a
buyer (importer) and is used for
various purposes, including customs
clearance, taxation, and payment
processing.
The Commercial Invoice serves as a
legally binding document that helps
customs authorities determine the
value of the goods, calculate
applicable duties and taxes, and
ensure compliance with trade
regulations. It is an essential part of
the international trade
documentation process and is often
required by customs authorities in
the importing country.

COMMERCIAL
INVOICE
▶ Here's an overview of the typical fields and
information found on a Commercial Invoice:
 Invoice Header:
• Invoice Number: A unique identifier for the invoice,
often generated sequentially for tracking purposes.
• Invoice Date: The date when the invoice was
issued.
 Seller (Exporter) Information:
• Name and Address: The legal name and
address of the seller or exporting company.
• Contact Information: Phone number, email
address, and other relevant contact details.
• Tax Identification Number (if applicable): The
seller's tax identification or registration number.
 Buyer (Importer) Information:
• Name and Address: The legal name and
address of the buyer or importing company.
• Contact Information: Phone number, email
address, and other relevant contact details.
• Tax Identification Number (if applicable): The
buyer's tax identification or registration number.
 Ship To (Consignee) Information:
• Name and Address: The name and address of
the party or location where the goods will be
delivered if different from the buyer.

COMMERCIAL
INVOICE
▶ Here's an overview of the typical fields and information
found on a Commercial Invoice:
 Shipping Information:
• Port of Loading: The location where the goods are loaded
onto the transport vessel (e.g., ship, aircraft).
• Port of Discharge: The destination port where the goods will
be unloaded.
• Place of Delivery: The final destination where the goods will
be delivered to the buyer.
 Description of Goods:
• Itemized List: A detailed list of the goods being sold, including
the quantity, unit of measure, and description.
• Unit Price: The price per unit or item.
• Total Price: The total value for each item, often calculated by
multiplying the quantity by the unit price.
• Currency: The currency in which the transaction is
denominated.
• Total Invoice Value: The sum of the total prices of all items.
 Payment Terms:
• Terms of Sale: The agreed-upon terms governing the sale
(e.g., Incoterms), specifying responsibilities for shipping and
risk.
• Payment Method: The method of payment agreed upon by the
parties (e.g., letter of credit, wire transfer).
 Additional Charges and Discounts:
• Freight Charges: Any charges related to the shipment of
goods.
• Insurance Costs: Costs associated with insuring the goods
during transit.
• Other Charges: Any additional charges or fees relevant to the
transaction.
This Photo by Unknown Author is licensed under CC BY

COMMERCIAL
INVOICE
▶ Here's an overview of the typical fields and
information found on a Commercial Invoice:
 Country of Origin: The country where the
goods were produced or manufactured.
 Date of Shipment: The date when the goods
were shipped.
 Packaging Information: Details about the
packaging, including the type of packaging
used and the number of packages.
 Export Declaration: Information regarding
compliance with export regulations, such as
export control or licensing requirements.
 Declaration and Certification:
• Declaration of Authenticity: A statement by the
seller certifying that the information on the
invoice is accurate and complete.
• Signature: The signature of the exporter or
authorized representative.
 Additional Information: Any additional details
or special instructions relevant to the
transaction or shipment.
This Photo by Unknown Author is licensed under CC BY-NC

COMMERCIAL
INVOICE
▶ Here are examples of situations where a
commercial invoice is required:
• Importing Goods: When importing goods
into a country, customs authorities typically
require a commercial invoice as part of the
customs clearance process. The
commercial invoice provides essential
information about the imported goods,
including their description, quantity, value,
and origin. Customs officials use this
document to assess duties, taxes, and
other fees, verify compliance with import
regulations, and facilitate the smooth entry
of goods into the country.
• Claiming Insurance: In the event of loss or
damage to goods during transit, the
commercial invoice serves as evidence of
the value of the insured goods. Insurance
companies require a commercial invoice to
process insurance claims and determine
the amount of compensation owed to the
insured party. The commercial invoice
helps verify the value of the goods and
establish proof of ownership, ensuring that
the insurance claim is processed

COMMERCIAL
INVOICE
▶ Here are examples of situations where a
commercial invoice is required:
• Applying for Financing: Businesses often
use commercial invoices as supporting
documentation when applying for financing
or seeking credit from financial institutions.
Lenders may require commercial invoices to
assess the value of the goods being
financed, verify the terms of sale, and
evaluate the creditworthiness of the
borrower. The commercial invoice provides
important information about the transaction,
including the buyer's and seller's details,
payment terms, and the value of the goods,
helping lenders make informed decisions
about extending credit.
• Recording Transactions: Commercial
invoices are essential for record-keeping
and accounting purposes. Businesses use
commercial invoices to document sales
transactions, track revenue, and manage
inventory. The commercial invoice provides
a detailed record of the goods sold, their
value, and the terms of sale, facilitating
accurate financial reporting and compliance
with accounting standards.

COMMERCIAL
INVOICE
▶ Here are examples of situations where
a commercial invoice is required:
• Dispute Resolution: In the event of
disputes or discrepancies between the
buyer and seller, the commercial invoice
serves as a legal document to resolve
disagreements and clarify the terms of
the transaction. The commercial invoice
provides a written record of the
agreement between the parties,
including the description of the goods,
pricing, and payment terms. In case of
disputes over delivery, quality, or
payment, the commercial invoice can
help clarify the rights and obligations of
the parties involved.
In summary, a commercial invoice is
required in various situations, including
importing goods, claiming insurance,
applying for financing, recording
transactions, and resolving disputes. It
serves as a vital document for documenting
commercial transactions, facilitating trade,

Example - Importing
Goods
▶ Company A, based in the
United States, imports
electronic components from
Company B, located in
China, for manufacturing
purposes. The commercial
invoice provided by
Company B contains
inaccurate information
regarding the quantity and
value of the goods shipped.

Example - Importing
Goods
▶ Consequences:
• Customs Delays: Upon arrival at the port of
entry in the United States, customs officials
discover discrepancies between the
information on the commercial invoice and the
actual contents of the shipment. This
discrepancy leads to delays in customs
clearance as customs officials conduct
additional inspections and verification
procedures.
• Duty Assessment: The inaccurate valuation of
the goods on the commercial invoice results in
an underpayment of customs duties and
taxes. Customs officials adjust the duty
assessment based on the correct value of the
goods, leading to additional charges for
Company A.
• Compliance Risk: Company A faces the risk of
penalties or fines for providing inaccurate or
incomplete information on the commercial
invoice, potentially damaging its reputation
and relationships with suppliers and
customers.
Lessons Learned:
• Accuracy and Compliance: This case
highlights the importance of accuracy and
compliance in preparing commercial invoices
for international trade. Companies must

Example - Importing
Goods
▶ Company C, based in
Canada, purchases a
shipment of textiles from
Company D, located in India,
for resale in the Canadian
market. The commercial
invoice provided by
Company D indicates a
different quality and quantity
of textiles than what was
agreed upon in the sales
contract.

Example - Importing
Goods
▶ Consequences:
• Dispute Resolution: Upon receipt of the
shipment, Company C discovers
discrepancies between the goods received
and the information provided on the
commercial invoice. Company C initiates a
dispute with Company D, citing the
discrepancies and requesting resolution.
• Legal Recourse: Company C uses the
commercial invoice as evidence to support its
claim in the dispute resolution process. The
commercial invoice serves as a legal
document to establish the terms of the sales
contract, including the description, quantity,
and value of the goods agreed upon by both
parties.
• Remediation: Company C and Company D
negotiate a resolution to the dispute, which
may involve compensation for the
discrepancies, replacement of the goods, or
other remedial actions to address Company
C's concerns.
Lessons Learned:
• Documentation and Legal Protection: This
case underscores the importance of
maintaining accurate and detailed commercial
invoices as part of the sales transaction.
Commercial invoices serve as essential
documentation to protect the rights and

Case Studies
Conclusion
demonstrate the significance
of the commercial invoice in
international trade,
emphasizing its role in
facilitating customs
clearance, duty assessment,
compliance, and dispute
resolution. Proper
preparation and maintenance
of commercial invoices are
essential for ensuring
smooth and compliant trade
transactions across borders.

STEPS IN
IMPORTATION
▶ There are five steps involved
in the proper importation of
commercial goods, some of
which may be done at the
same time. These are:
1. submission of Advance
Commercial Information
data;
2. carrier arrival and reporting;
3. release of goods (may be
called “interim accounting”);
4. accounting (all shipment
details, including the amount
of duty and taxes payable, is
provided to CBSA); and
5. payment of duties and taxes

ADVANCE
COMMERCIAL
INFORMATION
▶ Advance Commercial Information (ACI) is
a program and a set of regulations
implemented by the Canada Border
Services Agency (CBSA) to enhance the
security and efficiency of the customs
clearance process for goods being
imported into Canada. ACI requires that
certain information about shipments
bound for Canada be submitted
electronically to CBSA before the goods
arrive in the country. The goal of ACI is to
enable CBSA to identify and assess
potential risks associated with imported
goods more effectively while facilitating
the flow of legitimate trade.
By implementing Advance Commercial
Information (ACI), Canada aims to
strengthen border security, improve risk
management, and facilitate the smooth
flow of legitimate trade while ensuring the
safety and security of its borders.
Importers, carriers, and other participants
in international trade must stay informed
about ACI requirements and comply with

ADVANCE
COMMERCIAL
INFORMATION
▶ Key aspects of the Advance Commercial
Information (ACI) program include:
• Mandatory Electronic Reporting: Under ACI,
carriers, importers, and other parties involved in
international trade must submit specific information
electronically to CBSA before the goods arrive at
the Canadian border. This information includes
details about the shipment, the parties involved,
and the goods themselves.
• Timely Submission: Information must be
submitted in advance of the arrival of goods. The
exact timeframes for submission may vary
depending on the mode of transport (e.g., air, sea,
truck) and other factors.
• Data Elements: The data elements required for
ACI reporting typically include information about the
carrier, the consignee (importer), the shipper, the
goods, and the transportation method. This data
allows CBSA to conduct risk assessments and
target high-risk shipments for inspection.
• Risk Assessment: CBSA uses the information
provided through ACI to assess the security and
compliance risks associated with incoming
shipments. This risk assessment helps CBSA
prioritize inspections and customs examinations.

ADVANCE
COMMERCIAL
INFORMATION
▶ Key aspects of the Advance Commercial
Information (ACI) program include:
• Facilitation of Legitimate Trade: ACI is
designed to facilitate the expedited clearance
of low-risk shipments, helping to streamline
the customs process for compliant importers
and carriers.
• Penalties for Non-Compliance: Failure to
provide accurate and timely ACI information
can result in penalties, delays in customs
clearance, and other enforcement actions.
• Participation: ACI compliance requirements
may vary based on factors such as the mode
of transport, the size and nature of the
business, and the type of goods being
imported. It's important for importers, carriers,
and other stakeholders to understand their
obligations under ACI and ensure compliance.
• Integrated with Other Programs: ACI is
integrated with other customs and security
programs, such as the Importer Security Filing
(ISF) requirements in the United States and
the global Customs Trade Partnership Against

ADVANCE
COMMERCIAL
INFORMATION
▶ On April 19, 2004, marine carriers
became the first participants in a new
CBSA program called Advance
Commercial Information (ACI). ACI
for all modes of transportation
involves the transmission of
information to CBSA before the
goods arrive. In the case of marine
shipments, this information must be
sent before the goods are even
loaded onto the vessel in the country
of export.
The ACI project was developed to
improve risk management by
providing CBSA with electronic cargo
and conveyance data within specific
time frames. Under ACI, cargo and
conveyance data must be sent to
CBSA electronically. Penalties may
be issued if these data are not sent, if
they are not sent in the proper time

ADVANCE
COMMERCIAL
INFORMATION
▶ Advanced Commercial Information
(ACI) is a program implemented by
Canada Border Services Agency
(CBSA) to enhance the security and
efficiency of the cross-border trade
process. ACI requires carriers, freight
forwarders, and importers to provide
electronic cargo and conveyance
information to CBSA before goods
arrive in Canada. Here are some key
significances of ACI in international
trade:
• Enhanced Border Security: ACI helps
improve border security by enabling
CBSA to identify high-risk shipments
and conduct targeted inspections. By
receiving advance information about
goods and conveyances, CBSA can
assess potential security threats and
take proactive measures to mitigate
risks, such as smuggling, terrorism,

ADVANCE
COMMERCIAL
INFORMATION
• Facilitated Customs Clearance: Providing
advance commercial information allows
CBSA to expedite customs clearance
processes for low-risk shipments. By pre-
clearing goods before their arrival at the
border, CBSA can reduce wait times and
congestion at ports of entry, ensuring
smoother and more efficient movement of
goods across the border. This benefits
importers and exporters by minimizing
delays and improving supply chain
predictability.
• Compliance with Regulations: ACI helps
ensure compliance with Canadian
customs regulations and trade
requirements. By requiring accurate and
timely submission of commercial
information, ACI encourages importers,
carriers, and freight forwarders to adhere
to customs rules, tariff classifications, and
documentation requirements. This
reduces the likelihood of penalties, fines,
or delays due to non-compliance.

ADVANCE
COMMERCIAL
INFORMATION
• Risk Management and Resource
Allocation: ACI allows CBSA to allocate
resources more effectively by focusing on
high-risk shipments and areas of
concern. By analyzing advance
commercial information, CBSA can
prioritize inspections and enforcement
activities based on risk factors, such as
the nature of goods, the reputation of
traders, and historical compliance data.
This targeted approach improves the
efficiency of border security operations
while minimizing disruptions to legitimate
trade.
• Supply Chain Visibility and Planning: ACI
provides greater visibility into the supply
chain, allowing importers, exporters, and
logistics providers to track the movement
of goods in real-time. By sharing
electronic cargo and conveyance
information, stakeholders can anticipate
arrival times, plan inventory
management, and coordinate logistics

ADVANCE
COMMERCIAL
INFORMATION
• International Trade Competitiveness: ACI
contributes to Canada's competitiveness
in international trade by streamlining
border processes, reducing costs, and
enhancing security. By implementing
advanced electronic data transmission
requirements, Canada demonstrates its
commitment to trade facilitation, supply
chain security, and compliance with
international standards. This fosters a
favorable trading environment that
attracts investment, promotes economic
growth, and strengthens Canada's
position in the global marketplace.
Overall, Advanced Commercial
Information (ACI) plays a vital role in
promoting the security, efficiency, and
integrity of international trade operations. By
requiring advance submission of commercial
information, ACI helps enhance border
security, facilitate customs clearance, ensure
regulatory compliance, manage risks,
improve supply chain visibility, and enhance
Canada's competitiveness in the global trade

Case Study: Canada-
U.S. Border Trade
• In 2011, Canada implemented the
eManifest program, an essential
component of ACI, requiring carriers to
submit electronic cargo and
conveyance information before arriving
at the border.
• As a result, the Canada Border
Services Agency (CBSA) gained
greater visibility into shipments entering
Canada, allowing for more efficient risk
assessment and customs clearance
processes.
• The implementation of eManifest
significantly reduced border wait times
and congestion, benefiting both
Canadian and U.S. businesses
involved in cross-border trade.
• According to CBSA, eManifest
contributed to a 20% reduction in
border congestion and a 25% decrease
in the number of trucks turned away

Case Study:
International Air Cargo
• Many countries have implemented
ACI programs for air cargo to
enhance security and streamline
customs processes.
• For example, the U.S. Customs and
Border Protection (CBP) operates
the Air Cargo Advanced Screening
(ACAS) program, which requires
airlines to submit advance electronic
data on inbound air cargo shipments.
• ACAS enables CBP to identify high-
risk cargo before it reaches U.S.
airspace, allowing for targeted
screening and expedited clearance
of low-risk shipments.
• By implementing ACAS, CBP has
improved cargo security while
reducing delays and enhancing the
efficiency of air cargo operations.
Due to incomplete documentation.

Case Study: European
Union Import Controls
• The European Union (EU) has
implemented the Import Control
System (ICS), which requires
advance submission of electronic
entry summary declarations for
goods entering the EU customs
territory.
• ICS allows customs authorities to
perform risk assessments and carry
out targeted controls on imported
goods, ensuring compliance with EU
regulations and security standards.
• By providing advance commercial
information, ICS facilitates faster
customs clearance and reduces the
administrative burden on importers
and carriers.
• The implementation of ICS has
contributed to smoother trade flows
and improved security measures at

Case Study: Canadian
Importers and
Exporters
• Canadian importers and exporters
have experienced the benefits of ACI
in terms of streamlined customs
processes and reduced border
delays.
• With ACI, importers can submit
advance commercial information
electronically, allowing CBSA to
conduct risk assessments and pre-
clear shipments before arrival at the
border.
• This has led to faster customs
clearance times, reduced storage
costs, and improved supply chain
efficiency for Canadian businesses
involved in international trade.
• Additionally, ACI has enhanced
security measures by enabling CBSA
to target high-risk shipments and

Case Study:
Conclusion
demonstrate how the
implementation of Advanced
Commercial Information
(ACI) programs has
positively impacted
international trade by
enhancing security,
improving customs clearance
processes, reducing border
delays, and increasing
supply chain efficiency. ACI
programs have become
integral to modern trade
facilitation efforts, benefiting
businesses, governments,
and consumers worldwide.

MARINE ACI
▶ The process begins with the ocean carrier
or its agent transmitting cargo data to
CBSA. The cargo data must be transmitted
according to specific time frames, and in all
cases before the cargo is loaded onto the
ship.
he ACI project was developed to improve
risk management by providing CBSA with
electronic cargo and conveyance data
within specific time frames. Under ACI,
cargo and conveyance data must be sent
to CBSA electronically. Penalties may be
issued if these data are not sent, if they are
not sent in the proper time frame, or if
incorrect data are sent.
Cargo data include, among other things,
the carrier's name and carrier code, the
ports of call, and a good description of the
goods, any special instructions, and any
other data required for other government
departments
The report must include any Freight
Remaining on Board (FROB) and in-transit
cargo. FROB are goods that will remain on
the vessel while other goods are
discharged. In-transit goods are those that
are travelling through Canada under

MARINE ACI
▶ When all cargo data are received, and
after CBSA has conducted its risk
assessment, the carrier may receive
one of the following messages:
1. No Load Message—“Wait for
instructions from foreign agency.”
2. No Load Message—“Additional detail
required.”
If neither of these messages is
received within a specific time frame,
loading can proceed. Conveyance
data must also be transmitted to
CBSA.
Conveyance data include details that
identify the vessel and its scheduled
route. Changes to conveyance data
must be made electronically as soon
as they are known and may be made
at any time before the arrival of the
vessel in Canada. he conveyance data
must be transmitted before the
vessel’s departure from a foreign port
if the length of the voyage to Canada

REPORTING AND
ARRIVAL OF MARINE
CONVEYANCES
▶ The arrival of marine cargo is done by
submission of either a Conveyance
Arrival Certification Message (CACM)
or Warehouse Arrival Certification
Message (WACM). These are both
electronic messages and are sent by
the conveyance or warehouse
operator. Once an arrival notice is
submitted, it is matched with ACI data
and, if submitted, a release request. At
that point, CBSA may release the
goods.
Submission of ACI data within
prescribed pre-arrival time frames,
combined with the arrival of the
conveyance in Canada, satisfies the
requirement for “Report of Goods,”
required under section 12 of the
Customs Act.

AIR ACI
▶ Air cargo data must be sent
to CBSA, electronically,
before the arrival of the
aircraft. Cargo data must
also be transmitted to CBSA
at least four hours before
arrival at the port of report or
customs office of declaration.
Air conveyance data must
be transmitted to CBSA at
least four hours before the
plane’s arrival at the first port
of arrival in Canada. If the
duration of the flight is less
than four hours, the data
must be reported before the
actual time of departure.

REPORTING AND
ARRIVAL OF AIR
CARRIERS
▶ Goods carried in the air
mode are reported by
submission of either a CACM
or WACM, the same as in
the marine mode.

HIGHWAY ACI
▶ Highway carriers transmit
cargo and conveyance
data to CBSA through a
process called eManifest.
Data for both the cargo
and the conveyance must
be transmitted and
received by CBSA no later
than one hour before
arrival at the First Point of
Arrival (FPOA)

REPORTING AND
ARRIVAL OF
HIGHWAY CARRIERS
▶ When the highway carrier arrives at the First
Point of Arrival (FPOA), they present a lead
sheet to CBSA. The lead sheet must include
a:
• bar-coded Conveyance Reference Number
(CRN); or
• bar-coded Cargo Control Number (CCN)
with a handwritten CRN; or
• handwritten CRN if an alternative bar-coded
document is also being presented; for
example, a bar-coded PARS lead sheet.
“PARS” stands for “Pre-Arrival Review
System.”
The Border Services Officer (BSO) will
match the lead sheet with the previously supplied
ACI data and, if a previous decision has been
made to release the goods, may release the
goods at the FPOA
Submission of ACI data within prescribed pre-
arrival time frames, combined with the arrival of
the conveyance in Canada, satisfies the
requirement for “Report of Goods” required under
section 12(1) of the Customs Act

RAIL ACI
▶ Rail carriers must transmit
cargo and conveyance
data to CBSA a minimum
of two hours before the
rail carrier arrives at the
border.

ARRIVAL AND
REPORTING OF RAIL
CARRIERS
▶ Goods carried by rail are
reported by submission of
either a CACM or WACM,
the same as in the marine
mode.
Submission of ACI data
within prescribed pre-arrival
time frames, combined with
the arrival of the conveyance
in Canada, satisfies the
requirement for “Report of
Goods” required under
section 12(1) of the Customs
Act.

CARGO CONTROL
DOCUMENT
▶ A Cargo Control Document (CCD) is
a crucial document used in
international trade and the
transportation of goods, particularly
in the context of shipping and
trucking. The specific purpose and
format of a CCD can vary by country
and mode of transport, but its
primary function is to track and
control the movement of cargo
across national borders.
It's important to note that the
specific requirements and format of
the Cargo Control Document can
vary by country and transportation
mode. Importers, exporters, carriers,
and customs brokers must ensure
that they comply with the relevant
regulations and documentation
requirements for their specific
shipments. The CCD is a vital tool
for ensuring the smooth and secure

CARGO CONTROL
DOCUMENT
▶ Here is an overview of the CCD and its key
aspects:
• Identification of Cargo: The CCD provides
detailed information about the cargo being
transported, including descriptions, quantity,
weight, dimensions, and any special
handling instructions. This information helps
customs authorities and transportation
companies understand the nature of the
goods.
• Shipment Details: The document typically
includes information about the shipment,
such as the date of departure, the expected
arrival date, the origin, and the destination of
the cargo.
• Carrier Information: The CCD identifies the
transportation company or carrier
responsible for moving the cargo. This
includes the carrier's name, contact details,
and any relevant identification numbers or
codes.
• Mode of Transport: Depending on the
mode of transportation (e.g., truck, ship, rail,
air), the CCD will specify the method used

CARGO CONTROL
DOCUMENT
▶ Here is an overview of the CCD and its key
aspects:
• Customs Information: The CCD often
contains data necessary for customs
clearance and compliance. This can include
details about the customs declaration, tariff
codes, customs values, and any applicable
taxes or duties.
• Bill of Lading or Waybill: In the case of
maritime shipments, the CCD may reference
the Bill of Lading, which is the primary
document of title for goods transported by
sea. For other modes of transport, a Waybill
or other relevant transport document may be
referenced.
• Tracking and Control: The CCD is used to
track the movement of cargo from its point of
origin to its destination. Customs authorities
and other stakeholders can monitor and
control the flow of goods based on the
information provided in the CCD.
• Compliance: The CCD plays a critical role
in ensuring compliance with international
trade regulations, including customs

CARGO CONTROL
DOCUMENT
▶ Here is an overview of the CCD and
its key aspects:
• Electronic Submission: In many
modern transportation systems,
CCDs are submitted electronically,
facilitating faster and more efficient
cargo tracking and customs
processing.
• Unique Identifier: Each CCD
typically has a unique identifier,
such as a reference number, which
aids in tracking and managing
cargo.
• Signatures and Certification: The
CCD may require the signatures of
authorized personnel, such as
customs officials, shipping agents,
or carriers, to certify the accuracy of
the information and confirm the
status of the cargo. This Photo by Unknown Author is licensed under CC BY-NC-ND

CARGO CONTROL
DOCUMENT
▶ Here is an overview of the CCD and its
key aspects:
• Form A8A(B), In Bond—Cargo Control
Document
A paper manifest used by most carriers; for
carriers who report using EDI, manifest data
are sent electronically.
• Manifest
Also referred to as a Cargo Control
Document, a manifest lists cargo and/or crew
and/or passengers on a conveyance; it allows
customs to control the movement of the cargo.
• Form A6A, Freight/ Cargo Manifest
A paper manifest used by marine carriers. For
marine carriers who report EDI, Form A6A
data are sent electronically
• Pre-Arrival Review System (PARS)
A system by which an importer or customs
broker provides information to CBSA, prior to
the arrival of the goods, that allows CBSA to
release the goods upon their arrival in
Canada. This Photo by Unknown Author is licensed under CC BY-NC-ND

COURIER
SHIPMENTS
▶ Courier shipments, often referred
to simply as "courier services" or
"express shipments," are a
popular and efficient method of
shipping goods and documents,
both domestically and
internationally. Courier companies
specialize in providing fast and
reliable delivery services, typically
with shorter transit times
compared to traditional postal
services.
Overall, courier shipments are a
valuable option for businesses
and individuals seeking fast and
reliable delivery services. Their
combination of speed, tracking,
and convenience makes them a
preferred choice for many
shipping needs, especially when

COURIER
SHIPMENTS
▶ Here's an overview of courier shipments:
• Speed and Timeliness: Courier shipments are
known for their speed and timeliness. They offer
faster delivery options, often with guaranteed
delivery times, making them ideal for time-
sensitive materials. For example, urgent
documents, small parcels, or high-value items can
be delivered quickly using courier services.
• Reliable Tracking: Courier companies provide
robust tracking systems that allow both the sender
and recipient to monitor the progress of the
shipment in real-time. This tracking capability
provides transparency and peace of mind
throughout the delivery process.
• Door-to-Door Service: Couriers typically offer
door-to-door pickup and delivery services. They
will collect packages directly from the sender's
location and deliver them to the recipient's
address, eliminating the need for customers to visit
a post office.
• Wide Range of Services: Courier companies
offer various services tailored to different needs,
including same-day delivery, overnight shipping,
international shipping, and specialized services like
temperature-controlled shipments, fragile item
handling, and customs clearance assistance for
international shipments.

COURIER
SHIPMENTS
▶ Here's an overview of courier shipments:
• Security: Courier services often provide
enhanced security measures for valuable or
sensitive shipments. They may offer features
such as signature confirmation upon delivery,
insurance options, and package tracking,
reducing the risk of loss or theft.
• Packaging and Handling: Many courier
companies offer professional packaging and
handling services to ensure that items are
properly protected during transit. This is
particularly important for fragile or delicate
goods.
• Documentation: When shipping
internationally, courier companies assist with
customs documentation and compliance. They
can help ensure that all necessary paperwork,
including customs declarations and invoices, is
completed accurately and in accordance with
regulations.
• Wide Coverage: Major courier companies
have extensive global networks and
partnerships, allowing them to reach remote
and international destinations. This global
reach makes them a preferred choice for This Photo by Unknown Author is licensed under CC BY-NC-ND

COURIER
SHIPMENTS
▶ Here's an overview of courier
shipments:
• Cost Variability: While courier
services offer speed and convenience,
they can be more expensive than
traditional postal services. The cost
depends on factors such as the
shipment's size, weight, destination,
and desired delivery speed.
• Competitive Market: The courier
industry is highly competitive, with
several well-known companies (e.g.,
FedEx, UPS, DHL, and others) vying
for market share. Customers have a
range of options to choose from, each
with its own pricing, services, and
service levels.
• Online Booking: Many courier
companies offer online booking and
tracking systems, making it easy for
customers to schedule shipments,

COURIER IMPORTS
REMISSION ORDER
▶ With certain exceptions, the Courier
Imports Remission Order (CIRO)
allows goods that are transported into
Canada by courier to be exempt from
duty and GST. In order to qualify under
this remission order, goods that are
shipped from the US or Mexico must
not exceed the current valuation limit
of Cdn$40.00. Goods that are shipped
from anywhere else in the world must
not exceed the cur-rent valuation limit
of Cdn$20.00.
The following goods are not eligible for
the CIRO, regardless of their value:
• alcoholic beverages,
• cigars,
• cigarettes, and
• manufactured tobacco.
Dividing single shipments into smaller
packages in order to take advantage of
the CIRO is not allowed. This Photo by Unknown Author is licensed under CC BY-NC-ND

MAIL SHIPMENTS
▶ International mail arriving in Canada
is sorted before being sent to one of
five CBSA mail centres—
Vancouver, Calgary, Winnipeg,
Toronto, and Montreal. CBSA exam-
ines international mail to determine
whether the goods are admissible
and whether the contents might be
subject to other government
department requirements.
At the mail centres, CBSA identifies
mail requiring additional
examination. Mail that is released
includes goods that qualify for the
Postal Imports Remission Order
(PIRO) and goods that qualify for
entry under tariff item 9816.00.00.
CBSA does a secondary review to
determine whether the goods are
subject to duties and/or taxes,
whether they require a permit, or
whether they require inspection by
another government department This Photo by Unknown Author is licensed under CC BY-NC-ND

SUFFERANCE
WAREHOUSES
▶ Sufferance warehouses, also known
as customs sufferance warehouses
or bonded warehouses, play a
significant role in international trade
and customs operations. These
specialized facilities are used to
temporarily store imported goods
before they are cleared through
customs or customs duties and
taxes are paid.
Sufferance warehouses are an
essential part of the logistics and
customs process, providing flexibility
for importers and customs
authorities to manage the flow of
goods efficiently. They help prevent
congestion at ports of entry and
support the smooth movement of
goods in international trade.
Importers should work closely with
customs brokers and logistics
providers to navigate the

BONDED
WAREHOUSES
▶ An importer may want to delay the
payment of duties and taxes on
imported goods, and they may do so
by placing the goods in a bonded
warehouses. Duty and taxes are
paid when the goods are removed
from the bonded warehouse. They
may also be exported from Canada
directly from the bonded warehouse
without the payment of duty and tax.
Goods that are destined for a
bonded warehouse must be
reported by the carrier in the same
manner as any other goods.
There are two types of bonded
warehouses: private and public.
Private warehouses are used by
individuals or companies to store
their own goods, and public
warehouses are run by
entrepreneurs for storing goods that

CONSOLIDATIONS AND
DECONSOLIDATIONS
▶ Consolidation and deconsolidation
are terms used in the context of
shipping and logistics, particularly in
the transportation of goods by sea
or air. These processes involve the
grouping and separation of cargo
shipments for efficiency and
convenience in international trade.
Both consolidation and
deconsolidation are important
aspects of international logistics,
allowing for efficient transportation
and distribution of goods. These
processes are commonly used in
sea freight (container shipping) and
airfreight to optimize the use of
cargo space, reduce costs, and
streamline the movement of goods
across borders. They are particularly
useful when dealing with smaller
shipments from multiple shippers
that are destined for the same

Globalization: Winners
and losers in world trade

Customs Issues and Procedure Part 2.pptx

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