Customs Issues and Procedure Part 3.pptx

Important Dates
▶ Assignment 3/21/2024
▶ Midterm 3/27/2024
▶ Final 4/5/2024
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Terminal Learning
Objectives
▶ Explain the structure of the
Harmonized System of Tariff
Classification.
▶ Describe the General Rules for
the Interpretation of the
Classification.
▶ Apply the General Rules for the
Interpretation of the Harmonized
System of Tariff Classification.
▶ Explain how to classify goods
under the Harmonized System
of Tariff Classification.
▶ Classify an item using the
Classification.

HARMONIZED
SYSTEM OF TARIFF
CLASSIFICATION
▶ The Harmonized System (HS)
plays a crucial role in facilitating
international trade by providing a
standardized framework for
classifying goods. Here are
several reasons why the HS is
important in international trade:
• Uniform Classification: The HS
provides a uniform and
internationally recognized system
for classifying goods traded
across borders. This classification
system ensures consistency in the
categorization of goods, making it
easier for traders, customs
officials, and other stakeholders to
identify and classify products
accurately.

HARMONIZED
SYSTEM OF TARIFF
CLASSIFICATION
• Tariff Determination: Governments
around the world use the HS as the
basis for setting import and export
tariffs, duties, and taxes. By
harmonizing tariff classifications,
the HS helps to simplify the
determination of applicable duties
and taxes, reducing trade barriers
and promoting smoother trade
flows.
• Customs Procedures: Customs
authorities use the HS classification
system to streamline customs
procedures, including
documentation requirements,
inspection processes, and
valuation of goods. Standardizing
classification codes simplifies
customs clearance, reducing

HARMONIZED
SYSTEM OF TARIFF
CLASSIFICATION
• Trade Statistics: The HS provides a
common language for collecting and
reporting trade statistics. By using
standardized HS codes, countries can
accurately track the flow of goods in
international trade, analyze trade
patterns, and monitor changes in
commodity markets. This data is
essential for policymakers, businesses,
and researchers to make informed
decisions and assess the impact of
trade policies.
• Trade Facilitation: The HS contributes
to trade facilitation efforts by promoting
transparency, predictability, and
efficiency in international trade
transactions. By providing a clear and
consistent framework for classifying
goods, the HS helps to minimize
misunderstandings, disputes, and
delays in cross-border trade, thereby
lowering transaction costs and

HARMONIZED
SYSTEM OF TARIFF
CLASSIFICATION
• Global Supply Chains: In today's
interconnected global economy, where
goods often cross multiple borders during
production and distribution, the HS serves
as a common reference point for
participants in global supply chains. By
using standardized HS codes, businesses
can communicate effectively with trading
partners, logistics providers, and
regulatory authorities, ensuring smooth
coordination and seamless movement of
goods across borders.
In summary, the Harmonized System
plays a critical role in facilitating international
trade by providing a standardized framework
for classifying goods, determining tariffs,
streamlining customs procedures, generating
trade statistics, promoting trade facilitation,
and supporting global supply chains. Its
widespread adoption has contributed to
greater efficiency, transparency, and
predictability in cross-border trade, benefiting
businesses, governments, and consumers

HARMONIZED
SYSTEM OF TARIFF
CLASSIFICATION
▶ Accurate classification of goods
using Harmonized System (HS)
codes is crucial for several key
aspects of international trade,
including tariff determination,
trade negotiations, and
regulatory compliance.
Accurate classification of goods
using HS codes is vital for
determining tariffs fairly and
consistently, facilitating trade
negotiations, and ensuring
compliance with regulatory
requirements. Proper
classification promotes
transparency, efficiency, and
trust in international trade
transactions, benefiting

HARMONIZED
SYSTEM OF TARIFF
CLASSIFICATION
▶ Here's why accurate classification is
important in each of these areas:
Tariff Determination:
• Fair and Consistent Tariffs: Accurate
classification ensures that tariffs,
duties, and taxes applied to imported
and exported goods are fair and
consistent. Each HS code corresponds
to specific tariff rates, and
misclassification can result in
underpayment or overpayment of
duties, leading to trade distortions and
unfair competition.
• Cost Efficiency: Proper classification
helps traders optimize costs by
ensuring they pay the correct amount
of duty based on the true nature and
value of the goods. Avoiding
overpayment of tariffs reduces
financial burdens on businesses and

HARMONIZED
SYSTEM OF TARIFF
CLASSIFICATION
Trade Negotiations:
• Basis for Negotiations: HS codes serve
as a common reference point for trade
negotiations between countries or trading
blocs. Accurate classification provides
clarity and transparency in discussions
about tariff reductions, trade liberalization,
and market access commitments.
Negotiating parties rely on agreed-upon
HS classifications to ensure mutual
understanding and compliance with trade
agreements.
• Prevention of Disputes: Proper
classification helps prevent disputes and
disagreements during trade negotiations
by providing a clear framework for
identifying the products subject to tariff
concessions or regulatory measures.
Consistent use of HS codes facilitates the
negotiation process and strengthens the

HARMONIZED
SYSTEM OF TARIFF
CLASSIFICATION
Regulatory Compliance:
• Legal Obligations: Accurate classification
is essential for complying with customs
regulations, trade policies, and product
standards enforced by importing and
exporting countries. Traders must classify
goods correctly to fulfill legal obligations,
including customs declarations,
documentation requirements, and
adherence to product-specific regulations.
• Risk Mitigation: Proper classification
helps mitigate the risk of non-compliance
penalties, delays in customs clearance,
and other regulatory issues that may arise
from misinterpretation or incorrect
application of HS codes. Adhering to
regulatory requirements ensures that
goods meet safety, quality, and other
standards, minimizing the likelihood of
regulatory enforcement actions.

THE CANADIAN
HARMONIZED
SYSTEM OF TARIFF
CLASSIFICATION
▶ The World Customs Organization (WCO) is
responsible for producing and maintaining
what is called the Harmonized Commodity
Description and Coding System
(Harmonized System). This system, used to
classify goods imported into Canada, is the
basis of the Customs Tariff and also called
either the HS or just the tariff
The development of the tariff, an
international tool, was completed in June
1983. It is used by more than 200 countries
as a basis for their own customs tariff and for
the collection of international trade statistics.
The first six digits of a classification number
are the same in all countries that use the
WCO Harmonized System, and countries
using this system may add additional digits.
In Canada, it is Finance Canada that adds
the sixth and seventh digits and it is at this
level that the duty rate is prescribed. The
final two digits are added by Statistics
Canada and are used for statistical purposes

THE CANADIAN
HARMONIZED
SYSTEM OF TARIFF
CLASSIFICATION
▶ The Harmonized System (HS) is indeed
used by over 200 countries worldwide as
the basis for customs tariffs, trade
statistics, and various other aspects of
international trade. This widespread
adoption underscores the importance and
universality of the HS in facilitating global
trade. By providing a common language
for classifying goods and determining
tariffs, the HS promotes consistency,
transparency, and efficiency in cross-
border trade transactions. Moreover, its
role as a standard reference for trade
statistics enables countries to collect,
analyze, and compare data on
international trade flows accurately,
supporting evidence-based policymaking
and informed decision-making by
businesses and governments alike.
Overall, the HS serves as a vital tool for
harmonizing trade practices, reducing
barriers to trade, and promoting economic

CLASSIFICATION
NUMBERS
▶ Classification numbers and tariffs are related
to international trade and customs
regulations. They are used to categorize and
determine the customs duties and taxes
applied to imported and exported goods.
These are often referred to as Harmonized
System (HS) codes or tariff codes. They are
a standardized system for classifying
products traded internationally. Each product
is assigned a unique code based on its
characteristics, such as its composition,
intended use, and other attributes. These
codes are used by customs authorities
worldwide to identify products and apply the
appropriate tariffs and regulations.
Classification numbers are typically
organized in a hierarchical structure, with
general categories at the top and
increasingly specific subcategories as you
go deeper into the classification.
It's crucial for businesses engaged in
international trade to understand
classification numbers and tariffs to ensure
compliance with customs regulations and
manage their import/export costs effectively.

CLASSIFICATION
NUMBERS
▶ Tariffs are taxes or duties imposed by
a government on imported or exported
goods. The rate of these tariffs can
vary significantly depending on the
classification number (HS code)
assigned to the product. Tariffs are
often used to protect domestic
industries, generate revenue for the
government, or influence trade
relations with other countries. They
can be specific (a fixed amount per
unit of goods) or ad valorem (a
percentage of the goods' value).
To determine the tariff rate for a
particular product, you typically need
to:
• Identify the correct HS code for the
product.
• Check the tariff schedule of the
importing country to find the applicable
tariff rate for that HS code.
• Calculate the tariff cost based on the
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CLASSIFICATION
NUMBERS
▶ The Harmonized System (HS) is
organized into a hierarchical
structure, which allows for a
systematic and comprehensive
classification of goods. This
hierarchical structure consists of
several levels of classification,
each providing increasing levels of
detail about the goods being
traded.
This hierarchical structure enables
users to classify goods
systematically based on their
characteristics, composition, or
intended use, starting from broad
categories and drilling down to
increasingly specific details. It
provides a standardized framework
that facilitates accurate and
consistent classification of goods
for customs purposes, tariff

CLASSIFICATION
NUMBERS
▶ The structure typically includes the
following levels:
• Sections: The highest level of
classification in the HS. There are
21 sections in total, each
representing a broad category of
goods based on their general
characteristics or intended use.
Examples of sections include live
animals, animal products,
vegetable products, machinery,
vehicles, and so on.
• Chapters: Sections are further
divided into chapters, of which
there are 99 in total. Chapters
represent more specific groupings
of goods within each section. For
example, Chapter 02 within the
section of meat and edible meat
offal specifically covers meat of

CLASSIFICATION
NUMBERS
▶ The structure typically includes the
following levels:
• Headings: Each chapter is divided into
headings, which provide even more
detailed descriptions of goods. There
are over 1,300 headings in the HS.
Continuing with the example above,
under Chapter 02, there may be
headings for fresh or chilled bovine
meat, frozen bovine meat, or other
specific types of bovine meat products.
• Subheadings: Headings are further
subdivided into subheadings, which
offer the most detailed level of
classification in the HS. There are over
5,000 subheadings in the system.
Subheadings provide specific
information about the characteristics,
composition, or origin of goods. For
instance, a subheading under frozen
bovine meat might specify the cuts of
meat or the packaging method.

The General Rules for
the Interpretation of
the Harmonized
System (GIR)
▶ The General Rules for the
System (GIR) are a set of rules used
to determine the classification of
goods under the Harmonized
System (HS). The HS is an
internationally accepted system for
classifying products traded across
borders, and it uses a numerical
code (HS code) to categorize goods
based on their characteristics and
composition.
The GIR provides a structured
framework for classifying products
when their classification is not
immediately apparent from the HS
code's numerical description. There
are six General Rules for the
Interpretation.
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the Harmonized
System (GIR)
▶ Rule 1: This rule establishes that the titles of sections,
chapters, and sub-chapters of the HS are only provided
for ease of reference and do not affect the classification
of products.
Rule 2: When a product cannot be classified by the
application of Rule 1, it should be classified according to
the terms of the headings and any relevant subheadings.
Essentially, you start by looking at the most specific
description that applies.
Rule 3a: When the product cannot be classified using
Rule 2, it should be classified in the heading that provides
the most specific description of the product. This rule
emphasizes the importance of finding the most specific
category.
Rule 3b: If a product can be classified under more than
one heading by applying Rule 3a, then the heading that
appears last in numerical order should be chosen. This is
a tie-breaker rule.
Rule 4: This rule applies to goods that are not classifiable
using the preceding rules. If the product is composed of
different materials or has characteristics that make it
difficult to classify, it should be classified under the
heading that represents the material or component that
gives the product its essential character.
Rule 5: When all else fails, if a product still cannot be
classified using the previous rules, it should be classified

the Harmonized
System (GIR)
▶ These General Rules for the
Interpretation help ensure
consistency and accuracy in the
classification of goods under the
Harmonized System, which is
crucial for international trade,
customs duties, and various
trade-related regulations.
Customs authorities and
importers/exporters use these
rules to determine the correct
HS code for products when
there is ambiguity or complexity
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the Harmonized
System (GIR)
▶ HS codes are used in various real-world
scenarios related to international trade and
customs procedures. Here are some
examples:
• Customs Declarations: When goods are
imported or exported, customs authorities
require detailed information about the items
being traded. Traders must provide HS
codes on customs declaration forms to
accurately classify the goods being imported
or exported. These codes help customs
officials determine applicable tariffs, duties,
and taxes, as well as identify any regulatory
requirements or restrictions associated with
specific products.
• Tariff Calculation: HS codes serve as the
basis for calculating import and export tariffs,
duties, and taxes. Customs authorities use
the assigned HS codes to look up the
corresponding tariff rates applicable to each
product category. This ensures that traders
are charged the correct amount of duty
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the Harmonized
System (GIR)
• Customs Inspections: Customs
inspections may involve verifying the
accuracy of the HS codes declared by
traders to ensure compliance with trade
regulations and customs procedures.
Customs officials may inspect goods
based on their assigned HS codes to
confirm that they match the description
provided and comply with applicable
standards, safety regulations, and
licensing requirements.
• Trade Documentation: HS codes are
used in various trade documents,
including commercial invoices, bills of
lading, packing lists, and certificates of
origin. Including HS codes in these
documents helps to standardize and
streamline trade transactions by
providing clear and consistent
information about the goods being
traded, their classification, and their

the Harmonized
System (GIR)
• Trade Statistics: Governments collect
and analyze trade statistics based on HS
codes to track the flow of goods in
international trade. HS-based trade data
provides valuable insights into import
and export trends, market dynamics, and
the composition of trade by product
category. This information is used by
policymakers, businesses, and
researchers to monitor trade patterns,
identify emerging markets, and assess
the impact of trade policies.
• Trade Facilitation: HS codes contribute
to trade facilitation efforts by promoting
transparency, predictability, and
efficiency in cross-border trade. Traders
can use HS codes to communicate
effectively with customs authorities,
logistics providers, and trading partners,
facilitating smoother clearance and
transit of goods across borders.

the Harmonized
System (GIR)
▶ Overall, HS codes play a
fundamental role in trade and
customs procedures, helping
to ensure the accurate
classification of goods,
facilitate customs clearance,
determine tariff rates, comply
with trade regulations, and
generate trade statistics
essential for monitoring and
analyzing international trade
activities.

CANADIAN GENERAL
INTERPRETIVE
RULES
▶ The Canadian General Interpretive
Rules (GIR) are a set of rules used for
classifying goods in the context of
Canada's customs and tariff regulations.
Similar to the General Rules for the
System (GIR) mentioned earlier, the
Canadian GIR provide a structured
framework for determining the
classification of goods under Canada's
Harmonized System (HS) code.
The Canadian GIR are a set of rules
that help customs authorities, importers,
and exporters determine the correct HS
code for goods imported into or
exported from Canada. These rules
help ensure consistency in
classification, which is important for
applying the appropriate customs
duties, taxes, and trade regulations. The
Canadian GIR are closely aligned with
the international Harmonized System
(HS) and are used in conjunction with it.
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CANADIAN GENERAL
INTERPRETIVE
RULES
▶ Rule 1: The titles of sections, chapters,
and sub-chapters are provided for ease of
reference only. They do not affect the
classification of goods.
Rule 2a: Any reference in a heading to an
article shall be taken to include a
reference to that article incomplete or
unfinished, provided that, as presented,
the incomplete or unfinished article has
the essential character of the complete or
finished article. It also includes a
reference to a complete or finished article
presented unassembled or disassembled.
Rule 2b: Any reference in a heading to a
material or substance shall be taken to
include a reference to mixtures or
combinations of that material or
substance with other materials or
substances. Any reference to goods of a
given material or substance shall be
taken to include a reference to goods
consisting wholly or partly of such

CANADIAN GENERAL
INTERPRETIVE
RULES
▶ Rule 3a: When by application of Rule 2(a) or for
any other reason, goods are, prima facie,
classifiable under two or more headings,
classification shall be determined as follows:
• The heading which provides the most
specific description shall be preferred to
headings providing a more general description.
However, when two or more headings each refer
to part only of the materials or substances
contained in mixed or composite goods or to part
only of the items in a set put up for retail sale,
those headings are to be regarded as equally
specific in relation to those goods, even if one of
them gives a more complete or precise
description of the goods.
• Mixtures, composite goods consisting of
different materials or made up of different
components, and goods put up in sets for retail
sale, which cannot be classified by reference to
Rule 3(b), shall be classified as if they consisted
of the material or component which gives them
their essential character, insofar as this criterion
is applicable.
Rule 3b: When goods cannot be classified by
reference to Rule 3(a), they shall be classified

CANADIAN GENERAL
INTERPRETIVE
RULES
▶ Rule 4: Goods which cannot be classified in
accordance with Rule 3 shall be classified under
the heading appropriate to the goods to which
they are most akin.
Rule 5: In addition to the foregoing provisions,
the following rules shall apply in respect of the
goods referred to therein:
• Camera cases, musical instrument cases, gun
cases, drawing instrument cases, necklace
cases and similar containers, specially shaped
or fitted to contain a specific article or set of
articles, suitable for long-term use and
presented with the articles for which they are
intended, shall be classified with such articles
when of a kind normally sold therewith. This rule
does not, however, apply to containers which
give the whole its essential character.
• Subject to the provisions of Rule 5(a), packing
materials and packing containers presented
with the goods therein shall be classified with
the goods if they are of a kind normally used for
packing such goods. However, this provision is
not binding when such packing materials or
packing containers are clearly suitable for

CANADIAN GENERAL
INTERPRETIVE
RULES
▶ It's important to note that the
Canadian GIR, like other
classification rules, are subject
to interpretation and may require
expertise in customs
classification for precise
determination. Importers,
exporters, and customs
authorities often rely on these
rules to determine the
appropriate HS code for goods
being imported into or exported
from Canada.

SECTION AND
CHAPTER NOTES
▶ The Customs Tariff Schedule
is a structured system that
categorizes and classifies
goods for customs and tariff
purposes. It is used by
customs authorities to
determine the appropriate
tariff rates and regulations
that apply to imported and
exported goods. The
Customs Tariff Schedule
typically consists of sections,
chapters, headings, and
subheadings. Each level of
classification becomes
progressively more specific,
helping to identify goods
accurately.

SECTION AND
CHAPTER NOTES
▶ Below is a general overview of the structure of the
Customs Tariff Schedule:
1. Sections: The Customs Tariff Schedule is typically
divided into multiple sections, which are broad
categories or groups of products based on their
characteristics or intended use. Sections are
denoted by Roman numerals (I, II, III, etc.). For
example, Section I might include live animals and
animal products.
2. Chapters: Each section is further divided into
chapters, which represent more specific categories
of goods within that section. Chapters are denoted
by Arabic numerals (1, 2, 3, etc.). For example,
Chapter 01 within Section I might be specifically
related to live animals.
3. Headings: Chapters are subdivided into headings,
which provide even more detailed classifications
for goods. Headings are usually four or more digits
long. For example, within Chapter 01 (Live
Animals) there could be headings like "0101" for
horses, "0102" for bovine animals, and so on.
4. Subheadings: Headings can be further subdivided
into subheadings, which offer even finer levels of
classification. Subheadings are typically six or
more digits long. They provide specific details
about the products and their characteristics. For
example, within the heading "0102" for bovine

SECTION AND
CHAPTER NOTES
▶ The structure of the Customs Tariff
Schedule allows for a systematic and
standardized classification of goods for
customs purposes. Importers and
customs authorities use this structure
to determine the appropriate HS code
(Harmonized System code) for a
particular product. The HS code is a
numerical code that combines the
section, chapter, heading, and
subheading to uniquely identify a
specific product for customs and trade
purposes.
It's important to note that the Customs
Tariff Schedule can vary from one
country to another, as each country
may have its own set of tariff
classifications and rates. Therefore,
when dealing with international trade,
it's essential to consult the specific
Customs Tariff Schedule of the country
involved to ensure accurate
classification and compliance with

PUNCTUATION
▶ Understanding the punctuation used
in the Customs Tariff is extremely
important.
A semi-colon (;) is used to divide the
text of the description into distinct
clauses.
A colon (:) is used to indicate that
additional information follows, and
this additional information further
describes the goods.
A comma (,) is used to separate a
series or list of items that are
classified under the same tariff
provision.
The word “and” indicates that more
than one condition must be satisfied.
The word “or” indicates that an
alternative exists.

THE
CLASSIFICATION
PROCESS
▶ The classification process for
goods, particularly in the context
of international trade and
customs, involves determining the
appropriate classification code or
number for a specific product.
This code is typically based on a
standardized classification system
such as the Harmonized System
(HS), which is used by most
countries globally.
Accurate product classification is
crucial for international trade, as it
determines customs duties, taxes,
import/export restrictions, and
compliance with trade
agreements. Therefore, it's
important to invest time and effort
in correctly classifying your goods.

THE
CLASSIFICATION
PROCESS
▶ Here's an overview of the classification process:
1. Identify the Product: Begin by thoroughly understanding
the product you want to classify. Consider its composition,
characteristics, intended use, and any specific features
that might affect its classification.
2. Access the Classification System: Familiarize yourself
with the relevant classification system, such as the HS,
which provides a hierarchical structure with sections,
chapters, headings, and subheadings, each with its own
code and description.
3. Determine the Section: Start by identifying the
appropriate section of the classification system that
broadly describes the nature of the product. Sections are
usually represented by Roman numerals and group related
products together. For example, Section I might be for live
animals and animal products.
4. Identify the Chapter: Within the selected section, locate
the specific chapter that best matches the product.
Chapters are designated by Arabic numerals and provide a
more detailed classification. For example, Chapter 01
within Section I could be for live animals.
5. Find the Heading: Once you've identified the correct
chapter, drill down further to find the specific heading that
most accurately represents the product. Headings are
typically longer numerical codes (usually four digits) that
provide more specific descriptions. For example, within
Chapter 01 (Live Animals), there could be headings like
"0101" for horses, "0102" for bovine animals, and so on.

THE
CLASSIFICATION
PROCESS
1. Identify the Product: Begin by thoroughly understanding
the product you want to classify. Consider its composition,
characteristics, intended use, and any specific features
that might affect its classification.
2. Access the Classification System: Familiarize yourself
with the relevant classification system, such as the HS,
which provides a hierarchical structure with sections,
chapters, headings, and subheadings, each with its own
code and description.
3. Determine the Section: Start by identifying the
appropriate section of the classification system that
broadly describes the nature of the product. Sections are
usually represented by Roman numerals and group related
products together. For example, Section I might be for live
animals and animal products.
4. Identify the Chapter: Within the selected section, locate
the specific chapter that best matches the product.
Chapters are designated by Arabic numerals and provide a
more detailed classification. For example, Chapter 01
within Section I could be for live animals.
5. Find the Heading: Once you've identified the correct
chapter, drill down further to find the specific heading that
most accurately represents the product. Headings are
typically longer numerical codes (usually four digits) that
provide more specific descriptions. For example, within
Chapter 01 (Live Animals), there could be headings like
"0101" for horses, "0102" for bovine animals, and so on.

THE
CLASSIFICATION
PROCESS
6. Explore Subheadings: If necessary, examine the
subheadings within the chosen heading. Subheadings
provide even more detailed information about the product
and are often represented by additional digits. For example,
within the heading "0102" for bovine animals, subheadings
might differentiate between different types of cattle or cattle
of different ages.
7. Consult Explanatory Notes and Legal Texts: The
classification process may involve consulting explanatory
notes, legal texts, and official guidance provided by customs
authorities or international organizations. These documents
can offer further clarification on specific products and their
classification.
8. Verify with Customs Authorities: If you are unsure about the
correct classification, it's advisable to reach out to customs
authorities or classification experts for assistance. Many
countries have customs ruling programs or resources where
you can seek guidance on the proper classification of your
product.
9. Apply the Classification Code: Once you've determined the
appropriate classification code (usually a combination of
digits representing the section, chapter, heading, and
possibly subheading), you can use this code for customs
declarations, tariff calculations, and compliance with
import/export regulations.
10. Review and Update: Regularly review and update your
product classifications, especially if your product undergoes

CONFLICT OF
INTEREST
▶ Conflicts of interest can be defined as a
process of interfering or conflicting between
the work you do as a public servant and
personal interest you may have during the
process of carrying out the assigned task.
You must be observant not to mix public
work with personal work.
A conflict of interest occurs when an
individual or entity has competing interests
or obligations that could compromise their
ability to act impartially or in the best
interests of another party. These conflicts
can arise in various contexts, including
business, government, healthcare,
academia, and non-profit organizations.
Conflicts of interest can be ethical, legal, or
both, depending on the situation and the
applicable rules and regulations.
Dealing with conflicts of interest is essential
for maintaining trust, integrity, and ethical
behavior in various domains. Ethical conduct
and transparency are key principles in
effectively managing conflicts to ensure that
decisions and actions are made in the best
interests of all relevant parties.

FOREIGN CUSTOM
BROKERS
▶ Foreign customs brokers, also known
as international customs brokers or
foreign trade agents, are professionals
or firms that specialize in assisting
individuals and businesses with
customs clearance and compliance
when importing or exporting goods
across international borders. These
brokers operate in countries other than
the one where the goods are being
imported or exported. They help in
streamlining the work process by
getting and supply all the require
document needed for effective
communication with the custom and
their agents.
Businesses engaged in international
trade often rely on foreign customs
brokers to navigate the complexities of
customs procedures and regulatory
compliance, ultimately facilitating the
smooth movement of goods across
borders and reducing the risk of costly

CUSTOMS TARIFF
▶ A customs tariff, also known as a
customs duty or import tariff, is a tax or
duty imposed by a government on
goods imported into or exported out of
a country. Customs tariffs are a crucial
component of a country's trade policy
and serve several purposes that
include revenue generation,
protectionism, trade regulation,
consumer behavior, and protection of
strategic industries.
It's important to note that customs
tariffs can vary widely from one
country to another. The specific tariffs
imposed on a particular product
depend on various factors, including
the product's classification under the
Harmonized System (HS) code, the
country of origin, trade agreements,
and government policies. The
Harmonized System is an international
standardized system for classifying
and coding products, making it easier
to determine the applicable tariff for a
given item.

CBSA
▶ The Canada Border Services
Agency are the government agency
that is responsible for enforcing
government regulation on legitimate
travelers and goods into the country.
They provide and support national
security by providing safety to
people, goods and services of living
and nonliving thing crossing into the
country.
The Canada Border Services
Agency plays a crucial role in
maintaining the security and integrity
of Canada's borders while facilitating
trade and travel. Its work is essential
for the Canadian economy and for
ensuring the safety and well-being
of Canadian citizens and residents. This Photo by Unknown Author is licensed under CC BY-SA-NC

CRA
▶ The Canada Revenue Agency are
the government agency responsible
for administers tax law and social
services benefits to the country.
They help in delivering compliance
on behalf of government across
Canada by contributing to the
economic wellbeing of the citizen.
The Canada Revenue Agency plays
a crucial role in funding government
programs and services by collecting
taxes and implementing tax policies.
It also supports Canadians through
various benefit programs aimed at
enhancing social and economic well-
being. Ensuring compliance with tax
laws is a key aspect of its work, and
it carries out this responsibility
through audits, investigations, and
enforcement measures when
necessary.

FREIGHT
FORWARDERS
▶ Freight forwarders are the company
that specializing in arranging cargo
on behalf of their client (importer)
They provides all sorts of logistic
chain services which includes
transportation, ocean, or air freight
system and help the shippers to its
intended destination.
Freight forwarders act as
intermediaries between shippers
(exporters) and transportation
providers, ensuring that goods are
transported smoothly and that all
logistical aspects are taken care of.
They play a vital role in facilitating
international trade and the global
movement of goods by simplifying
complex logistics and ensuring that
shipments reach their destinations
on time and in good condition.

ADVANCED
COMMERICAL
INFORMATION
▶ Advance commercial Information
are the information that is
transmitted before the good arrives
to the Canadian border service
agency. It help to mitigate and
identify any potential threat to the
country which help movement of
goods and services.
ACI is part of the broader effort to
enhance security and facilitate trade
in the global supply chain. By
providing advance information and
conducting risk assessments, CBSA
aims to strike a balance between
trade facilitation and border security
while ensuring the efficient
movement of goods into Canada.
Importers and trade stakeholders
are encouraged to stay informed
about ACI requirements and

CONVERGENCE
REFERENCE
NUMBER
▶ Convergence reference number is a
unique reference number given by
the carrier to a certain journey or
departure. It can be up to 25
characters and contain both number
and letters. It starts with a carrier
code which is a four-character code
assigned to a consortium carrier.
It is essential for importers and
exporters to understand and use
such reference numbers correctly to
ensure smooth customs clearance
and compliance with import/export
regulations. Mismanagement or
inaccuracies in these reference
numbers can lead to delays or
issues in the customs clearance
process.

CCN
▶ Cargo control number is a control
number which identifies the carrier
which is shipper and the shipment to
the Canadian Border service
agency. It is a number that make it
easier for CBSA to identifies the
shipper and carrier of the goods to
the government agency that
oversees the documents presented.
It's important to note that the
specific format and requirements for
Cargo Control Numbers may vary by
country and customs jurisdiction.
Importers, exporters, and logistics
providers must adhere to the
customs regulations and guidelines
of the relevant country or region
when using CCNs to ensure smooth
and compliant cargo movements.

SUFFERANCE
WAREHOUSE
▶ They are the warehouses that is
privately built, which are licensed by
the CBSA for short term storage of
imported goods. They are examined
by the CBSA whenever require and
the goods can only be release after
the certification by CBSA.
Sufferance warehouses provide a
practical solution for importers and
customs authorities to manage the
flow of goods entering a country
while ensuring compliance with
customs regulations. Importers and
their logistics partners must
coordinate closely with customs
authorities and follow proper
procedures to facilitate the timely
release of goods from sufferance
warehouses.

BONDED WAREHOUSE
▶ Bonded warehouses are storage
that is secure and well guided which
stores good until customs duty are
paid before the goods are clear for
export. They are bonded and require
payment before releasing for export.
Bonded warehouses are a valuable
tool for importers, exporters, and
businesses engaged in international
trade. They help facilitate trade by
providing a secure and flexible
storage solution and by allowing
businesses to manage their cash
flow effectively by deferring customs
duties and taxes until the goods are
ready for domestic consumption or
export. However, compliance with
customs regulations and record-
keeping requirements is essential
when using bonded warehouses to
ensure smooth operations and avoid
potential penalties.

CONSOLIDATION AND
DECONSOLIDATION
▶ It can be defined as a
process of combining several
smaller shipments which can
fit into one shipment
together. This help in
consolidate different types of
goods together.
Deconsolidation on the other
hand is the opposite of the
term consolidation. This is
done by separating or
breaking down the shipment
into smaller unit shipment.

International Trade
▶ International trade refers to the
exchange of goods, services, and
capital across national borders. It has
been a vital component of the global
economy for centuries, shaping the way
nations interact and fostering economic
growth and development. In this
discussion, we'll explore the significance
of international trade and its impact on
the global economy.
Economic Growth and Development:
• International trade allows countries to
specialize in producing goods and
services in which they have a
comparative advantage, leading to
increased efficiency and productivity.
• By engaging in trade, countries can
access a wider range of products at
lower prices, improving the standard of
living for their citizens.
• Trade stimulates competition,
innovation, and technological
advancement as firms strive to remain
competitive in global markets.

International Trade
▶ Access to Resources:
• Not all countries have abundant
natural resources or the capacity to
produce all the goods they need.
Trade enables nations to access
resources and commodities that are
scarce or unavailable domestically.
• Through trade, countries can diversify
their sources of raw materials and
reduce dependency on a single
supplier, mitigating the risk of supply
disruptions.
Job Creation and Employment:
• International trade creates
employment opportunities by
supporting industries that are
involved in exporting goods and
services.
• While some jobs may be displaced
due to import competition, overall,
trade tends to create more

International Trade
▶ Economic Interdependence:
• International trade fosters
interdependence among nations,
creating strong economic ties and
promoting peaceful relations.
• Countries rely on each other for
goods, services, and investment,
leading to mutual benefits and
incentives for cooperation.
Enhanced Global
Competitiveness:
• Engaging in international trade
forces domestic industries to
become more competitive by
exposing them to global
competition.
• Companies must strive to improve
efficiency, quality, and innovation
to compete effectively in

International Trade
▶ Exchange Rate and Financial
Stability:
• Trade influences exchange rates and
global financial flows, impacting
currency values and economic
stability.
• Countries with strong export sectors
often experience appreciation of their
currency, while those reliant on
imports may face currency
depreciation, affecting trade balances
and economic policies.
Challenges and Considerations:
• Despite its benefits, international
trade also presents challenges such
as trade imbalances, protectionism,
and unequal distribution of gains.
• Addressing issues related to trade
barriers, intellectual property rights,
and environmental concerns is crucial
for fostering sustainable and inclusive

International Trade
▶ Conclusion:
International trade plays a
pivotal role in the global
economy by promoting
economic growth, facilitating
resource allocation, and
fostering cooperation among
nations. Understanding its
significance and addressing
challenges can contribute to
a more prosperous and
interconnected world.

Customs And Their Role
In Regulating
International Trade
▶ Customs refer to the official
department or agency responsible
for regulating the movement of
goods and people across
international borders. The primary
role of customs is to facilitate trade
while ensuring compliance with
various laws, regulations, and
policies governing the import and
export of goods.
Overall, customs play a critical role
in regulating international trade by
balancing the facilitation of
legitimate trade with the
enforcement of regulations and
security measures. Their effective
functioning is essential for promoting
economic growth, protecting public
health and safety, and maintaining

In Regulating
International Trade
▶ Here's an explanation of the
concept of customs and their
role in regulating international
trade:
• Facilitating Trade: Customs play
a crucial role in facilitating the
smooth flow of goods across
borders. They provide
necessary services and
infrastructure such as customs
checkpoints, inspection facilities,
and electronic systems for
documentation and clearance.
By streamlining procedures and
reducing bureaucratic hurdles,
customs help expedite the
movement of goods, which is

In Regulating
International Trade
• Tariff Collection: One of the key
functions of customs is to collect tariffs
and duties on imported goods. Tariffs
are taxes imposed on imported goods,
and they serve multiple purposes,
including generating revenue for the
government, protecting domestic
industries from foreign competition, and
regulating trade in accordance with trade
agreements and policies.
• Trade Compliance and Regulation:
Customs enforce various regulations
and policies to ensure that imported and
exported goods comply with domestic
laws as well as international
agreements and standards. This
includes restrictions on certain types of
goods (such as hazardous materials or
endangered species), compliance with
product standards and labeling
requirements, and adherence to trade

In Regulating
International Trade
• Customs Valuation: Customs
determine the value of imported
goods for the purpose of assessing
applicable duties and taxes. This
involves establishing the customs
value based on transaction value,
adjusted transaction value, or other
methods prescribed by law. Accurate
valuation is critical for fair trade and
revenue collection.
• Security and Border Control:
Customs agencies play a vital role in
maintaining border security by
preventing the illegal movement of
goods, contraband, and prohibited
items across borders. They conduct
inspections, screenings, and risk
assessments to detect and deter
illicit activities such as smuggling,

In Regulating
International Trade
• Trade Data and Statistics: Customs
gather and analyze trade data to
monitor trade flows, track trends, and
generate statistics on imports and
exports. This information is valuable
for policymakers, businesses, and
researchers in understanding market
dynamics, identifying opportunities,
and formulating trade policies.
• Trade Facilitation Measures: In
addition to regulatory functions,
customs also engage in trade
facilitation measures aimed at
simplifying procedures, reducing
administrative burdens, and
enhancing efficiency in international
trade. This may involve implementing
electronic customs systems,
harmonizing customs procedures with
international standards, and providing

WCO
▶ World custom organization which is
established in 1952 is an independent
intergovernmental body whose mission is to
enhance the effectiveness and efficiency of
custom administration.
The World Customs Organization (WCO) is
an international organization established to
promote and facilitate customs cooperation
and the smooth flow of international trade
across borders. It serves as a forum for
customs administrations from around the
world to exchange information, collaborate
on customs-related matters, and develop
standardized practices and procedures to
enhance the efficiency and effectiveness of
customs operations.
The WCO is headquartered in Brussels,
Belgium, and has a global membership of
over 180 customs administrations. It
operates through a series of committees,
working groups, and regional offices to
advance its objectives and support customs
administrations worldwide. The organization
plays a crucial role in fostering cooperation
and improving customs practices to facilitate
international trade and enhance border
security.

World Customs
Organization (WCO)
▶ Here's an introduction to the WCO and
its role in coordinating customs policies
and procedures internationally:
• Purpose and Mandate: The primary
purpose of the WCO is to promote the
uniform implementation of customs
policies and procedures across its
member countries. It aims to facilitate
legitimate international trade while
combating illicit activities such as
smuggling, trafficking, and terrorism. The
organization also seeks to enhance
cooperation and information sharing
among customs administrations to
address common challenges and threats.
• Membership: The WCO has a broad
membership base, comprising 183
customs administrations from around the
world. Member countries include both
developed and developing nations, as
well as territories and regional economic
integration organizations. This diverse
membership enables the WCO to foster

World Customs
Organization (WCO)
• Standards and Guidelines: The WCO
develops and maintains international
standards, guidelines, and best practices
for customs administrations. These
include the Harmonized System (HS) for
the classification of goods, the Revised
Kyoto Convention for the simplification
and harmonization of customs
procedures, and various other
instruments related to trade facilitation,
security, and enforcement.
• Capacity Building and Technical
Assistance: Recognizing the varying
capacities and needs of its member
countries, the WCO provides extensive
capacity building and technical
assistance programs. These initiatives
aim to strengthen the capabilities of
customs administrations in areas such
as customs procedures, risk
management, trade facilitation, and the
implementation of international
standards. Capacity building activities
may include training workshops, expert

World Customs
Organization (WCO)
• Research and Innovation: The WCO
conducts research and analysis on
emerging trends, challenges, and
opportunities in international trade
and customs administration. It
collaborates with academia, industry,
and other international organizations
to explore innovative solutions and
best practices for addressing
evolving trade dynamics and security
threats.
• Advocacy and Representation: As
the global voice for customs matters,
the WCO represents the interests of
its member countries in international
forums and negotiations related to
trade facilitation, customs
cooperation, and border security. It
advocates for the adoption of policies
and measures that promote efficient
and secure cross-border trade while

World Customs
Organization (WCO)
▶ The mission of the World Customs
Organization (WCO) revolves
around facilitating legitimate trade
while ensuring the security and
safety of global supply chains. Its
objectives align closely with this
mission and encompass several key
areas:
• Facilitating Trade: The primary
objective of the WCO is to facilitate
the smooth flow of legitimate trade
across international borders. This
involves developing and promoting
international standards, best
practices, and simplified customs
procedures that streamline the
movement of goods while reducing
administrative burdens and costs for
traders. By enhancing trade
facilitation, the WCO aims to
promote economic growth,

World Customs
Organization (WCO)
• Enhancing Border Security: In tandem with
trade facilitation, the WCO is committed to
enhancing border security to protect against
various threats, including terrorism,
smuggling, trafficking, and illicit trade. It
develops and promotes security standards,
risk management techniques, and
cooperation mechanisms among customs
administrations to strengthen border controls
and deter criminal activities. By bolstering
border security, the WCO contributes to
safeguarding national interests, public safety,
and international security.
• Ensuring Compliance and Integrity: Another
objective of the WCO is to ensure
compliance with customs laws, regulations,
and international agreements to maintain the
integrity of the global trading system. It
promotes transparency, fairness, and
predictability in customs procedures,
encouraging voluntary compliance by traders
while deterring non-compliance through
effective enforcement measures. By
fostering a culture of compliance, the WCO
helps create a level playing field for
legitimate businesses and promotes trust
and confidence in international trade.

World Customs
Organization (WCO)
• Promoting Cooperation and Partnership: The
WCO seeks to promote cooperation and
partnership among customs administrations,
international organizations, industry
stakeholders, and other relevant actors to
address common challenges and achieve
shared objectives. It facilitates information
exchange, capacity building, and joint
initiatives aimed at enhancing customs
effectiveness, interoperability, and
responsiveness to emerging threats and
trends. By fostering collaboration, the WCO
strengthens collective efforts to secure global
supply chains and promote sustainable
development.
• Advancing Innovation and Best Practices:
The WCO is committed to advancing
innovation and promoting the adoption of best
practices in customs administration. It
conducts research, develops tools, and
disseminates knowledge to support customs
modernization efforts and improve
operational efficiency, effectiveness, and
responsiveness. By embracing innovation
and continuous improvement, the WCO helps
customs administrations adapt to evolving
trade dynamics, technological advancements,

World Customs
Organization (WCO)
▶ Overall, the mission and
objectives of the WCO
underscore its pivotal role in
facilitating legitimate trade
while ensuring the security
and safety of global supply
chains. Through its
multifaceted approach
encompassing trade
facilitation, border security,
compliance, cooperation,
and innovation, the WCO
contributes to building
resilient and sustainable
customs systems that
support economic growth,
prosperity, and security
worldwide.

World Customs
Organization (WCO)
▶ The World Customs Organization
(WCO) carries out a variety of
functions to achieve its mission of
enhancing the effectiveness and
efficiency of customs
administrations worldwide. These
functions encompass several key
areas:
• Development of Standards and
Guidelines: One of the primary
functions of the WCO is to develop
and maintain international
standards, guidelines, and best
practices for customs
administrations. This includes
standards for customs procedures,
classification of goods (Harmonized
System), valuation, origin
determination, and risk
management. These standards aim
to promote uniformity, predictability,

World Customs
Organization (WCO)
• Capacity Building and Technical
Assistance: The WCO provides extensive
capacity building and technical assistance
to customs administrations, particularly in
developing and least developed countries.
This assistance includes training programs,
workshops, seminars, and expert missions
aimed at enhancing the skills, knowledge,
and capabilities of customs officials.
Capacity building initiatives cover various
areas such as customs procedures, risk
management, enforcement techniques, and
the implementation of WCO standards.
• Facilitation of Trade: The WCO plays a
crucial role in facilitating legitimate trade by
promoting trade facilitation measures and
simplifying customs procedures. It
advocates for the adoption of modernized
and streamlined customs processes,
electronic customs systems, and Single
Window initiatives to expedite the
clearance of goods across borders. The
WCO also develops tools and resources to
assist customs administrations and traders
in complying with customs requirements
and navigating international trade

World Customs
Organization (WCO)
• Border Security and Control: Ensuring
border security is another important
function of the WCO. It develops and
promotes security standards, risk
management techniques, and cooperation
mechanisms among customs
administrations to strengthen border
controls and prevent illicit activities such
as smuggling, trafficking, and terrorism.
The WCO encourages the use of
advanced technologies and intelligence-
sharing networks to enhance border
security and protect against emerging
threats.
• Research and Analysis: The WCO
conducts research and analysis on
emerging trends, challenges, and
opportunities in international trade and
customs administration. It gathers data,
compiles statistics, and produces reports
on various aspects of customs operations,
trade flows, and compliance issues. This
research helps inform policymaking,
identify best practices, and support
evidence-based decision-making within

World Customs
Organization (WCO)
• Advocacy and Representation: As the
global voice for customs matters, the WCO
represents the interests of its member
countries in international forums and
negotiations related to trade facilitation,
customs cooperation, and border security.
It advocates for the adoption of policies
and measures that promote efficient and
secure cross-border trade while
safeguarding national interests. The WCO
also fosters dialogue and partnerships with
other international organizations, industry
stakeholders, and civil society groups to
promote effective customs governance and
international trade.
Overall, the functions of the WCO are
geared towards promoting cooperation,
standardization, and modernization in customs
administration, facilitating legitimate trade,
enhancing border security, and ensuring
compliance with international trade
regulations. By fulfilling these functions, the
WCO contributes to building resilient and
efficient customs systems that support
economic development, prosperity, and

World Customs
Organization (WCO)
▶ The functions of the WCO
contribute to creating a more
predictable, transparent, and
efficient customs environment,
which fosters smoother cross-
border trade and enhances
customs efficiency. By
promoting international
standards, providing capacity-
building support, facilitating
trade, enhancing border
security, conducting research,
and advocating for best
practices, the WCO helps
customs administrations
worldwide streamline
processes, reduce costs, and
facilitate the movement of
goods across borders.

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

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

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.

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.

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
▶ These case studies
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

Customs Issues and Procedure Part 3.pptx

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