Midterm Custom Issues and Procedure.pptx

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A consolidation occurs when a number of
shipments are grouped together out-side
of Canada by a freight forwarder and
shipped under one CCD.
True

Consolidation
▶ A consolidation occurs when a number
of shipments are grouped together out-
side of Canada by a freight forwarder
and shipped under one CCD.
Consolidation in freight forwarding
refers to the process of combining
multiple smaller shipments into one
larger shipment. This is typically done
to optimize transportation costs and
logistics efficiency. In the context you
provided, a consolidation occurs when
a freight forwarder gathers several
individual shipments from different
senders, groups them together outside
of Canada, and ships them under a
single Consolidated Cargo Declaration
(CCD).
By consolidating shipments, freight
forwarders can take advantage of
economies of scale, reduce
transportation costs per unit, and
streamline the logistics process. This
practice is common in international
shipping, where smaller shipments
from different senders are often

A tariff treatment determines the rate of
duty that is applied to imported goods and
is determined by the terms of a particular
trade agreement.
True

Consolidation
▶ A tariff treatment determines the rate of
duty that is applied to imported goods and
is determined by the terms of a particular
trade agreement. Tariff treatment refers to
the specific rate of duty or tax applied to
imported goods, and it is determined by
the terms outlined in trade agreements
between countries. These trade
agreements establish the conditions
under which goods can be
imported/exported, including the tariffs or
duties that apply to them.
Tariff treatments can vary depending on
the nature of the trade agreement
between the importing and exporting
countries. For example, countries may
negotiate preferential tariff treatments for
certain goods, such as reduced or
eliminated tariffs under free trade
agreements or preferential trade
arrangements.
Understanding the applicable tariff
treatment is crucial for importers and
exporters as it directly affects the cost of
trading goods across borders and can
impact competitiveness in international

A trade agreement is a legal agreement
between two or more countries that
provides benefits to all signatories.
True

Trade Agreement
▶ A trade agreement is a legal
agreement between two or more
countries that provides benefits to
all signatories. A trade agreement
is indeed a legally binding pact
between two or more countries
that outlines the terms and
conditions of trade between them.
These agreements are designed
to facilitate trade and commerce
by reducing or eliminating barriers
such as tariffs, quotas, and
regulatory restrictions.
Trade agreements typically
provide benefits to all signatory
parties involved by promoting
economic growth, expanding
market access, enhancing
efficiency, and fostering
cooperation. However, the
specific benefits can vary
depending on the terms

Trade Agreement
▶ Some common types of trade agreements
include:
• Free Trade Agreements (FTAs): These
agreements aim to eliminate tariffs and other
barriers to trade between participating
countries, promoting the free flow of goods and
services.
• Customs Unions: Customs unions involve
deeper integration than FTAs, with member
countries agreeing to adopt common external
tariffs and coordinate trade policies with non-
member countries.
• Economic Integration Agreements: These
agreements go beyond trade and may involve
coordination of economic policies, common
currencies, and even political integration
among member countries.
• Bilateral and Multilateral Agreements: Bilateral
agreements involve trade arrangements
between two countries, while multilateral
agreements involve multiple countries
negotiating together, often under the auspices
of international organizations such as the World
Trade Organization (WTO).
Trade agreements play a significant role in
shaping global commerce and can have

Air cargo data must be sent to BSO,
electronically, before the arrival of the
aircraft.
False

Air Cargo
▶ Air cargo data does NOT need to be
sent to BSO, electronically, before the
arrival of the aircraft. Air cargo needs
to be sent to the Canada Border
Services Agency (CBSA) when it
arrives in Canada and requires
customs clearance. Typically, this
occurs upon arrival at the airport of
entry. The CBSA is responsible for
overseeing the clearance process for
goods entering Canada, including air
cargo.
Upon arrival, the air cargo is
transferred to a CBSA-approved
sufferance warehouse or a bonded
storage warehouse operator (BSO)
where it undergoes customs
inspection and clearance procedures.
The timing of when the cargo needs
to be sent to CBSA depends on
various factors, including the customs
clearance process, documentation
requirements, and any specific
instructions provided by the CBSA or

Air conveyance data must be transmitted
to CBSA at least 8 hours before the plane’s
arrival at the first port of arrival in Canada.
False

Air Conveyance
▶ Air conveyance data does NOT need to
be transmitted to CBSA at least 8 hours
before the plane’s arrival at the first port
of arrival in Canada. The CBSA must
receive and validate cargo and
conveyance data a minimum of four
hours prior to arrival in Canada or at
time of departure if the flight is less than
four hours in duration.
Upon arrival, the air conveyance is
subject to inspection and clearance
procedures by CBSA officials. These
procedures ensure compliance with
customs and immigration regulations,
as well as security protocols. The timing
of reporting and clearance may vary
based on factors such as the type of
cargo, the origin of the flight, and any
specific requirements imposed by the
CBSA.
It's crucial for air carriers and their
agents to adhere to CBSA regulations
and guidelines to facilitate the smooth
processing of air conveyance and
ensure compliance with Canadian

BSO is one of five agencies that report
to the Minister of Public Safety.
False

BSO
▶ The Bonded Storage Warehouse
Operator (BSO) is NOT one of the
agencies that directly report to the
Minister of Public Safety in Canada.
Instead, the BSO operates within the
framework of the Canada Border Services
Agency (CBSA), which is one of the
agencies reporting to the Minister of
Public Safety.
The CBSA is responsible for facilitating
the flow of legitimate travelers and trade
while protecting Canada's safety,
security, and economic interests. It
oversees various aspects of border
security, customs, and immigration
enforcement, including the management
of bonded storage warehouses where
goods are held pending customs
clearance.
Other agencies reporting to the Minister
of Public Safety in Canada include the
Royal Canadian Mounted Police (RCMP),
the Canadian Security Intelligence
Service (CSIS), the Correctional Service
of Canada (CSC), and the Parole Board
of Canada (PBC), among others. Each of

BSO is responsible for customs programs,
intelligence, interdiction and enforcement
functions, and passenger and inspection
services
False

BSOs manages Canada’s borders by
enforcing the laws governing trade and
travel, as well as international agreements
and conventions.
False

BSO
▶ BSO is NOT responsible for
customs programs, intelligence,
interdiction and enforcement
functions, and passenger and
inspection services. The term
"BSO" is often used in various
contexts, but in this specific
context, it refers to Border
Services Officers, who work for
the Canada Border Services
Agency (CBSA). Border
Services Officers play a crucial
role in customs programs,
intelligence, interdiction and
enforcement functions, as well
as passenger and inspection
services. Border Services
Officers, as part of the CBSA,
play a multifaceted role in
maintaining the security and
integrity of Canada's borders,

BSO
▶ Here's a breakdown of their responsibilities:
• Customs Programs: Border Services Officers are
responsible for enforcing customs regulations,
including assessing duties and taxes on
imported goods, processing declarations, and
ensuring compliance with trade laws.
• Intelligence: They gather and analyze
intelligence related to border security, smuggling,
and other threats to Canada's safety and
security.
• Interdiction and Enforcement Functions: Border
Services Officers intercept prohibited or
restricted goods, such as drugs, weapons, and
contraband, at ports of entry. They also enforce
immigration laws and regulations.
• Passenger Services: They facilitate the entry of
legitimate travelers into Canada while screening
for security risks, verifying travel documents, and
conducting interviews when necessary.
• Inspection Services: Border Services Officers
inspect incoming goods, vehicles, and cargo to
ensure compliance with customs and
immigration regulations. They may conduct
examinations, searches, and inspections to
detect illicit activities and enforce border
controls..

Canadian customs brokers are companies,
not individuals, and they act as
intermediaries between importers and the
government on about 80 percent of
import transactions.
True

Canadian Customs
Brokers
▶ Canadian customs brokers are companies,
not individuals, and they act as
intermediaries between importers and the
government on about 80 percent of import
transactions. Canadian customs brokers are
typically companies or firms specializing in
customs brokerage services, rather than
individual practitioners. These companies act
as intermediaries between
importers/exporters and the government,
facilitating the smooth clearance of goods
through customs.
Customs brokers play a crucial role in
helping importers navigate the complex
customs clearance process, ensuring
compliance with all relevant regulations,
tariffs, and duties imposed by the Canada
Border Services Agency (CBSA). They
handle documentation, tariff classification,
valuation, and other aspects of customs
compliance on behalf of their clients.
It's estimated that Canadian customs
brokers handle approximately 80 percent of
import transactions in Canada. Their
expertise and services are invaluable for
businesses engaged in international trade,
as they help streamline the import process,

CBSA can assess penalties under the
Administrative Monetary Penalty System
(AMPS) against those who do not comply
with the legislation administered by CBSA.
True

CBSA
▶ CBSA can assess penalties under the
Administrative Monetary Penalty System
(AMPS) against those who do not comply
with the legislation administered by CBSA.
The Canada Border Services Agency
(CBSA) uses the Administrative Monetary
Penalty System (AMPS) to issue monetary
penalties to commercial clients for violating
CBSA's trade and border legislation.
The purpose of AMPS is to provide the
Agency with a means to deter non-
compliance by its clients and create a level
playing field for all Canadian businesses.
Examples of non-compliance that most
often result in AMPS penalties
• Failure to pay duties;
• Failure to provide required information to
the CBSA;
• Unauthorized removal of goods from a
warehouse;
• Direct delivery of goods prior to release
from CBSA control;
• Failure to report goods to the CBSA;
• Failure to self-correct an incorrect
declaration.

CBSA has Five branches, and each is led by
a vice-president who reports directly to
the president and executive vice-president
False

CBSA
▶ CBSA does NOT has Five
branches, with each is led by a
vice-president who reports
directly to the president and
executive vice-president. The
Canada Border Services
Agency (CBSA) doesn't have an
organizational structure
composed of "branches" in the
sense you mentioned. Instead,
CBSA operates under a more
centralized structure, with
various divisions and
directorates overseeing different
aspects of its operations. These
divisions and directorates
typically report to the agency's
executive leadership.

Countries that are entitled to use the MFN
tariff treatment are those that are
signatories to the General Agreement on
Tariffs and Trade, or GATT.
True

MFN Tariff Treatment
▶ Countries that are entitled to use
the MFN tariff treatment are those
that are signatories to the General
Agreement on Tariffs and Trade, or
GATT. Most countries, including
those that are signatories to the
General Agreement on Tariffs and
Trade (GATT) and its successor,
the World Trade Organization
(WTO), are indeed entitled to use
the Most Favored Nation (MFN)
tariff treatment.
The MFN principle is a fundamental
concept in international trade that
requires countries to apply the
same tariffs and trade policies to all
members of the WTO, without
discrimination. This means that if a
country reduces tariffs, grants a
concession, or provides any other
trade-related benefit to one WTO
member, it must extend the same

MFN Tariff Treatment
▶ However, it's essential to note
that entitlement to MFN
treatment is not exclusive to
GATT or WTO signatories.
Many countries extend MFN
treatment to all trading partners,
regardless of their membership
status in these organizations.
Bilateral and regional trade
agreements may also modify or
exempt countries from the MFN
principle in specific
circumstances.
In summary, while GATT and
WTO membership typically
implies entitlement to MFN
treatment, the principle itself
extends beyond these
agreements and is widely
practiced in international trade

CSIS:
Canadian Security Intelligence Service

Canadian Security
Intelligence Service
▶ The Canadian Security
Intelligence Service (CSIS) is
Canada's primary national
intelligence agency responsible
for conducting security
intelligence investigations and
providing analysis to the
government. CSIS was
established in 1984 under the
Canadian Security Intelligence
Service Act in response to
growing concerns about national
security threats.
CSIS operates independently
from law enforcement agencies
and is primarily focused on
gathering intelligence related to
national security threats, such as
terrorism, espionage, foreign
interference, and other activities

For breakbulk cargo, the cargo data must
be transmitted electronically to CBSA at
least 12 hours before the arrival of the
vessel at the first Canadian port of arrival.
False

Breakbulk Cargo
▶ For breakbulk cargo, the
cargo data does NOT need
be transmitted electronically
to CBSA at least 12 hours
before the arrival of the
vessel at the first Canadian
port of arrival.
For containerized cargo, the
cargo data must be
transmitted electronically to
CBSA at least 24 hours
before goods are loaded on
board the vessel. For bulk
cargo, the cargo data must
be transmitted electronically
to CBSA at least 24 hours

For bulk cargo, the cargo data must be
transmitted electronically to CBSA at least
48 hours before the arrival of the vessel at
the first Canadian port of arrival
False

Bulk Cargo
▶ For bulk cargo, the cargo
data does NOT need to be
transmitted electronically to
CBSA at least 48 hours
port of arrival.
For exemptions from cargo
and conveyance
requirements refer to
paragraph 74 of this
document. 26. Cargo and
conveyance data may be
transmitted up to 30 days in
advance. The CBSA
encourages clients to
transmit pre-load/pre-arrival
data as early as possible.

For empty marine containers, cargo data
must be transmitted electronically to CBSA
at least 72 hours before the arrival of the
vessel at the first Canadian port of arrival.
False

Empty Marine
Containers
▶ For empty marine containers, cargo
doe NOT need to be transmitted
electronically to CBSA at least 72
hours before the arrival of the vessel at
the first Canadian port of arrival.
The carrier shall give the Agency the
information set out in Part 1 of
Schedule 2 at least 96 hours before
the vessel is scheduled to arrive at its
port of arrival if the shipment consists
of an empty cargo container that is not
for sale. Despite subsection (1), if the
vessel will arrive in Canada directly
from the United States or Puerto Rico
and the shipment was loaded onto it in
the United States or Puerto Rico, the
carrier shall give the information at
least four hours before the vessel is
scheduled to arrive at its port of arrival
if the shipment consists of an empty
cargo container that is not for sale; and
at least 24 hours before the vessel is
scheduled to arrive at its port of arrival

Foreign customs brokers are the
foreign counterparts to Canadian
customs brokers.
True

Foreign Customs
Brokers
▶ While the term "foreign customs
brokers" is not commonly used,
it can be understood as referring
to customs brokers or brokerage
firms located outside of Canada
that perform similar functions to
Canadian customs brokers.
Customs brokers play a crucial
role in facilitating international
trade by assisting importers and
exporters in complying with
customs regulations, completing
documentation, and navigating
the complexities of cross-border
transactions. These services are
essential for ensuring smooth
and efficient movement of goods
across borders.

Foreign Customs
Brokers
▶ Just as Canadian customs brokers
operate within Canada to assist
with imports and exports involving
Canadian borders, customs
brokers located in other countries
perform similar functions for their
respective borders. These foreign
customs brokers help businesses
comply with the customs
regulations of their respective
countries, handle import/export
documentation, and liaise with
customs authorities on behalf of
their clients.
While the specific regulations,
procedures, and terminology may
vary from country to country, the
fundamental role of customs
brokers remains consistent: to
facilitate the efficient and compliant
movement of goods across

General Agency Agreement (GAA) An
agreement that authorizes a customs
broker to act on behalf of a particular
person or firm
True

General Agency
Agreement (GAA)
▶ General Agency Agreement
(GAA) An agreement that
authorizes a customs broker to
act on behalf of a particular
person or firm. The General
Agency Agreement (GAA) is
indeed an agreement that
authorizes a customs broker to
act on behalf of a specific person
or firm in matters related to
customs clearance and other
customs-related activities.
This agreement establishes a
legal relationship between the
customs broker and their client,
granting the broker the authority
to represent the client's interests
before customs authorities. The
GAA typically outlines the rights,
responsibilities, and obligations

General Agency
Agreement (GAA)
▶ Key elements typically included in a
General Agency Agreement (GAA)
may include:
• Authorization: The agreement
explicitly authorizes the customs
broker to act as the client's agent for
customs-related matters.
• Scope of Representation: It defines
the scope of activities the customs
broker is authorized to undertake on
behalf of the client, such as customs
clearance, tariff classification,
valuation, and other related
services.
• Duration: The agreement specifies
the duration of the authorization,
whether it is for a specific shipment,
a set period, or ongoing for multiple
transactions.

General Agency
Agreement (GAA)
• Responsibilities: It outlines the
responsibilities of both the client and the
customs broker, including providing
accurate information, complying with
customs regulations, and paying fees
and charges.
• Indemnification: The agreement may
include provisions for indemnification,
specifying the obligations of each party
in case of legal claims or liabilities
arising from the customs clearance
process.
• Termination: It may include provisions
for terminating the agreement, outlining
the process and consequences of
termination by either party.
The General Agency Agreement (GAA)
is a foundational document that
formalizes the relationship between a
customs broker and their client,
providing clarity and legal authorization
for the broker to act on behalf of the

General Interpretive Rules (GIRs): The
rules governing the classification of
goods in the Harmonized System.
True

General Interpretive
Rules (GIRs):
▶ General Interpretive Rules (GIRs):
The rules governing the
classification of goods in the
Harmonized System. The General
Interpretative Rules (GIRs) are
indeed a set of rules used to classify
goods in the Harmonized System
(HS). The Harmonized System is an
internationally standardized system
for classifying traded products, used
by customs authorities around the
world to determine tariffs, compile
trade statistics, and apply trade
regulations uniformly.
The GIRs provide a structured
approach to classifying goods into
specific categories within the HS.
There are six General Interpretative
Rules, commonly abbreviated as
GIR 1 through GIR 6. These rules
are applied sequentially, with each
subsequent rule being used only if

Goods carried in the air mode are
reported by submission of either a CACM
or WACM, the same as in the marine
mode.
True

CACM or WACM
▶ Goods carried in the air mode are
reported by submission of either a CACM
or WACM, the same as in the marine
mode. For goods carried by air mode, the
submission of cargo data is typically done
through an electronic system known as
ACI (Advance Commercial Information) or
eManifest in Canada, and Advance Cargo
Information (ACI) or Electronic Data
Interchange (EDI) in the United States.
This data is submitted by the air carrier or
its authorized agent before the arrival of
the goods into the country. The
submission includes information about the
goods being transported, such as
descriptions, quantities, values, and other
relevant details.
Similarly, the submission of conveyance
data for air mode is typically done
electronically through systems like ACI or
eManifest in Canada, and Electronic
Airway Bill (eAWB) or other electronic
systems in various countries. This
conveyance data includes information
about the aircraft, flight details, and other
relevant information required for customs
clearance.

CACM or WACM
▶ In contrast, for goods transported by
marine mode, the submission of
cargo data is typically done through
systems like the Advance
Commercial Information (ACI)
system in Canada or the Automated
Manifest System (AMS) in the
United States. Conveyance data for
marine mode is also submitted
electronically through systems such
as the Canada Border Services
Agency's eManifest system or the
U.S. Customs and Border
Protection's Automated Commercial
Environment (ACE) system.
Therefore, while both air and marine
modes involve the electronic
submission of cargo and
conveyance data for customs
clearance, the specific systems and
procedures used for submission
differ between the two modes of
transportation.

Harmonized System: An international
classification system used to classify
imported and exported goods.
True

Harmonized System
▶ Harmonized System: An
international classification system
used to classify imported and
exported goods. he Harmonized
System (HS) is an internationally
standardized system used for
classifying traded goods. It provides
a common language and framework
for classifying products traded
internationally, facilitating the
uniform application of customs
tariffs, regulations, and statistical
analysis across countries.
The Harmonized System consists of
a hierarchical structure of codes
organized into chapters, headings,
and subheadings, with each code
representing a specific category of
goods. It is organized into 21
sections, with each section covering
a broad category of products, such
as live animals, vegetable products,
machinery, textiles, etc.

Harmonized System
▶ Each HS code consists of a series
of digits that progressively narrow
down the classification of goods,
providing a detailed description of
the product being traded. The first
six digits of the HS code are
standardized worldwide, ensuring
consistency in classification across
countries.
The Harmonized System is
maintained and updated by the
World Customs Organization
(WCO), with revisions made
periodically to accommodate
changes in global trade patterns and
technological advancements. It is
widely used by customs authorities,
importers, exporters, and other
stakeholders involved in
international trade to determine
tariffs, compile trade statistics, and
apply trade regulations accurately
and uniformly.

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 4 hour before arrival at the First Point
of Arrival (FPOA).
False

Highway Carriers
▶ 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 does NOT need to be
sent no later than 4 hour
before arrival at the First
Point of Arrival (FPOA). The
Highway Conveyance
Document may be submitted
up to 30 days in advance but
must be received and
validated by the CBSA a
minimum of one (1) hour
prior to arrival at the First
Port of Arrival (FPOA)

In order to determine the tariff treatment
or treatments that can apply to goods
from a specific country, you must consult
the List of Countries and Applicable Tariff
Treatments
True

Applicable Tariff
Treatments
▶ In order to determine the tariff treatment
or treatments that can apply to goods
from a specific country, you must
consult the List of Countries and
Applicable Tariff Treatments
To determine the applicable tariff
treatment(s) for goods imported from a
specific country, you typically consult
the List of Countries and Applicable
Tariff Treatments. This list outlines the
trade agreements, preferences, and
special tariff treatments that apply to
imports from each country.
The List of Countries and Applicable
Tariff Treatments provides information
on various trade agreements, such as
Free Trade Agreements (FTAs),
Preferential Trade Agreements (PTAs),
Most Favored Nation (MFN) status, and
other preferential arrangements. These
agreements may result in reduced or
eliminated tariffs for certain goods
imported from eligible countries.

Rail carriers must transmit cargo and
conveyance data to CBSA a minimum of 4
hours before the rail carrier arrives at the
border.
False

Rail Carriers
▶ Rail carriers must transmit
cargo and conveyance data
to CBSA NOT at a minimum
of 4 hours before the rail
carrier arrives at the border.
In the rail mode, the
conveyance and cargo
information for specified
goods must be received and
validated by the CBSA, as
outlined in the Reporting of
Importing Goods
Regulations, at least two
hours prior to the
conveyance arriving at the
FPOA.

Sufferance warehouses Established for the
landing, storage, safekeeping, transfer,
examination, delivery, and forwarding of
imported goods that have not yet been
released; they are privately owned and
operated and are licensed by CBSA.
True

Sufferance
Warehouses
▶ Sufferance warehouses
Established for the landing,
storage, safekeeping, transfer,
examination, delivery, and
forwarding of imported goods that
have not yet been released; they
are privately owned and operated
and are licensed by CBSA. These
warehouses are privately owned
and operated but are licensed and
regulated by the Canada Border
Services Agency (CBSA).
Sufferance warehouses play a
crucial role in the customs
clearance process by providing a
secure and controlled
environment for imported goods
while they undergo inspection,
documentation verification, and
other necessary procedures

Tariff: An amount levied on imported
goods; the term is interchangeable
with “duty”
True

Tariff
▶ Tariff: An amount levied on imported
goods; the term is interchangeable
with “duty”. The term "tariff" refers to
the taxes or duties imposed on
imported goods when they enter a
country's customs territory. These
tariffs are typically imposed by the
importing country's government and
are intended to generate revenue,
protect domestic industries, and
regulate trade.
The term "tariff" is often used
interchangeably with "duty" in the
context of international trade. Both
terms refer to the taxes or charges
levied on imported goods, although
"tariff" tends to be more commonly
used in discussions of trade policy
and customs regulations, while
"duty" may be used more broadly to
refer to any kind of tax or fee
imposed on imported goods.

Tariff
▶ Tariffs can be applied in various
forms, including ad valorem tariffs
(calculated as a percentage of the
value of the imported goods) or
specific tariffs (levied as a fixed
amount per unit of the imported
goods). They may also vary
depending on factors such as the
type of goods, their country of
origin, and any trade agreements
or preferences in place between
the importing and exporting
countries.
Overall, tariffs play a significant
role in international trade,
influencing the cost,
competitiveness, and flow of
goods across borders. They are a
key tool used by governments to
regulate trade and protect
domestic industries.

The Canadian importer is the party
responsible for the payment of duties
and taxes on imported goods.
True

The Canadian
Importer
▶ The Canadian importer is the
party responsible for the payment
of duties and taxes on imported
goods. When goods are imported
into Canada, the importer or
consignee is typically responsible
for fulfilling all customs
requirements, including the
payment of any applicable duties,
taxes, and fees.
Upon arrival in Canada, imported
goods are subject to customs
clearance procedures conducted
by the Canada Border Services
Agency (CBSA). As part of the
customs clearance process, the
CBSA assesses the value of the
imported goods, determines their
tariff classification, and calculates
any applicable duties and taxes

The Canadian
Importer
▶ The importer is then required to
pay these duties and taxes to
the CBSA before the goods can
be released for further
transportation or delivery.
Failure to pay the required
duties and taxes may result in
delays, penalties, or other
consequences.
It's important for Canadian
importers to accurately assess
and budget for the costs
associated with importing
goods, including duties, taxes,
and any related fees, to ensure
compliance with customs
regulations and facilitate smooth
customs clearance processes.

The CBSA administers tax laws for the
government of Canada and for most
provinces and territories.
False

The Canada Revenue
Agency (CRA
▶ The CBSA does NOT administers
tax laws for the government of
Canada and for most provinces
and territories. The Canada
Revenue Agency (CRA)
administers tax laws for the
Government of Canada, while
each province and territory has its
own tax authority responsible for
administering tax laws within its
jurisdiction. These provincial and
territorial tax authorities typically
handle taxes such as provincial
income taxes, sales taxes (where
applicable), property taxes, and
other local taxes. Overall, the
CRA and provincial/territorial tax
authorities work together to
ensure compliance with tax laws
and collect revenue for both
federal and provincial/territorial

The consolidated cargo release list must
also include an accurate description of the
goods so that CBSA can determine
whether the goods are controlled,
prohibited, or regulated by an act of
Parliament or government department.
True

Consolidated Cargo
▶ The consolidated cargo release list
must also include an accurate
description of the goods so that CBSA
can determine whether the goods are
controlled, prohibited, or regulated by
an act of Parliament or government
department. hen submitting a
consolidated cargo release list to the
Canada Border Services Agency
(CBSA), it's essential to include an
accurate description of the goods
being imported. This description helps
CBSA officers determine whether the
goods are subject to any controls,
prohibitions, or regulations imposed by
acts of Parliament or government
departments.
The accurate description of goods on
the cargo release list allows CBSA
officers to assess the nature of the
imported goods and verify compliance
with various regulatory requirements. It
helps CBSA officers identify any goods
that may be subject to special
restrictions, such as controlled

Consolidated Cargo
▶ By providing a detailed and
accurate description of the
goods on the cargo release
list, importers help ensure
smooth customs clearance
processes and avoid delays
or penalties associated with
non-compliance with import
regulations.
Importers and their customs
brokers should work closely
together to ensure that the
description of goods
provided on the cargo
release list is comprehensive
and aligns with the
requirements of CBSA and
any relevant government

The Customs Tariff is the legislative
authority for the imposition of, and
relief from, the payment of duty
True

The Customs Tariff
▶ The Customs Tariff is the
legislative authority for the
imposition of, and relief from, the
payment of duty. In Canada, the
Customs Tariff serves as the
legislative authority for the
imposition of duties on imported
goods. It outlines the tariffs and
rates of duty that apply to various
goods imported into Canada from
other countries.
The Customs Tariff provides
detailed information on the
classification of goods, including
their tariff classification, applicable
rates of duty, and any exemptions
or preferential tariff treatments that
may apply. It is based on the
international Harmonized
Commodity Description and Coding
System (HS), which is used by
customs authorities worldwide to

The Customs Tariff
▶ The Customs Tariff also includes
provisions for relief from the
payment of duty in certain
circumstances. This may include
duty relief programs such as duty
drawback, duty deferral, duty
remission, and duty-free entry for
certain types of goods, such as
goods intended for specific
purposes or industries.
Overall, the Customs Tariff is a
critical legal instrument that
governs the imposition of duties on
imported goods in Canada,
providing the framework for
customs authorities to assess and
collect duties and ensuring
compliance with Canadian trade
regulations. Importers and customs
brokers must consult the Customs
Tariff to determine the applicable
rates of duty and any relief

The importation of goods into Canada
involves many players from both
government and business.
True

Importation Of Goods
▶ The importation of goods into
Canada involves many
players from both
government and business.
Importing goods into Canada
involves collaboration among
various stakeholders from
both government and
business sectors. Overall,
importing goods into Canada
requires coordination and
collaboration among
government agencies,
businesses, and other
stakeholders to ensure
compliance with regulations,
facilitate trade, and promote
the efficient movement of
goods across borders.

The minister of national revenue is
responsible for the CBSA and is
accountable to Parliament for its activities
False

The President of the
CBSA
▶ The minister of national
revenue is NOT responsible
for the CBSA and is
accountable to Parliament for
its activities. The President of
the CBSA reports directly to
the Minister of Public Safety
Canada and controls and
manages all matters relating
to the Agency.

The provinces that collect the Harmonized
Sales Tax (HST) are Ontario, Prince Edward
Island, Nova Scotia, New Brunswick, and
Newfoundland and Labrador.
True

Harmonized Sales Tax
(HST)
▶ The provinces that collect the
Harmonized Sales Tax
(HST) are Ontario, Prince
Edward Island, Nova Scotia,
New Brunswick, and
Newfoundland and Labrador.
It's important to note that
these are the five provinces
that have implemented the
HST system, which
combines the federal Goods
and Services Tax (GST) with
a provincial sales tax.

The rate of duty that is applied to
imported goods depends on the tariff
classification and the tariff treatment of
the goods.
True

The Rate Of Duty
▶ The rate of duty that is applied to
imported goods depends on the
tariff classification and the tariff
treatment of the goods. e rate of
duty applied to imported goods
depends on two main factors
which are tariff classification and
tariff treatment.
By considering both the tariff
classification and the tariff
treatment of imported goods,
customs authorities can determine
the appropriate rate of duty to be
applied during the customs
clearance process. Importers and
customs brokers must accurately
classify goods and assess their
eligibility for any preferential tariff
treatments to ensure compliance
with customs regulations and
minimize import costs.

Transaction value of the goods: The price
paid or payable for goods that have been
sold. It is the method of valuation most
commonly used.
True

Transaction Value Of
The Goods
▶ Transaction value of the goods: The
price paid or payable for goods that
have been sold. It is the method of
valuation most commonly used. The
transaction value of goods is indeed
the price paid or payable for goods
that have been sold for export to
Canada. It is the method of valuation
most commonly used by customs
authorities worldwide, including the
Canada Border Services Agency
(CBSA), for determining the customs
value of imported goods.
The transaction value method is
based on the actual price paid or
payable for the goods when sold for
export to Canada. It includes all
payments made or to be made by
the buyer to the seller as a condition
of sale, including any royalties,
commissions, assists, or other
payments related to the imported

Transaction Value Of
The Goods
▶ The transaction value method is
preferred because it reflects the most
accurate and objective measure of the
value of the goods at the time of
importation. However, certain conditions
must be met for the transaction value
method to be accepted, such as the
goods being sold for export to Canada,
the buyer and seller being unrelated
parties, and no restrictions on the use or
disposition of the goods by the buyer.
If the transaction value method cannot
be used or if adjustments are
necessary, customs authorities may
consider alternative valuation methods
outlined in the World Trade
Organization's Agreement on Customs
Valuation, such as the transaction value
of identical goods, the transaction value
of similar goods, deductive value,
computed value, or residual value.
However, these alternative methods are
only used if the transaction value
method cannot be applied or if certain

Transhipment is the shipment of goods to
an intermediate destination and then from
that destination to another destination.
True

Transhipment
▶ Transshipment is the shipment of
goods to an intermediate destination
and then from that destination to
another destination. Transshipment
refers to the process of shipping goods
to an intermediate destination and then
forwarding them from that destination
to another final destination.
In international trade and logistics,
transshipment often occurs when
goods need to pass through multiple
ports or distribution centers before
reaching their ultimate destination.
This may be due to various reasons
such as optimizing shipping routes,
consolidating shipments, or
overcoming logistical challenges.
Transshipment can involve various
modes of transportation, including
ships, airplanes, trucks, and trains,
depending on the nature of the goods
and the geographical locations
involved.

Transportation Costs to the place of direct
shipment are dutiable. Costs from the
place of direct shipment are not.
True

Transportation Costs
▶ Transportation Costs to the place
of direct shipment are dutiable.
Costs from the place of direct
shipment are not.
According to the Agreement on
Customs Valuation, transportation
costs incurred up to the place of
importation (place of direct
shipment) are generally included in
the customs value of the imported
goods. This means that the value of
the goods for customs purposes
includes not only the price paid or
payable for the goods themselves
but also any costs associated with
transporting the goods to the point
of importation, such as freight,
insurance, and other related
charges.

Value for duty code A four-digit code that
identifies to CBSA the method of valuation
used to determine the value of imported
goods.
True

Value for duty
▶ Value for Duty (VFD) codes are indeed
used by the Canada Border Services
Agency (CBSA) to identify the method
of valuation used to determine the
value of imported goods for customs
purposes. These codes help CBSA
officers understand how the value of
imported goods has been determined
and apply the appropriate valuation
method during the customs clearance
process.
VFD codes are four-digit alphanumeric
codes that are assigned to imported
goods based on the method of
valuation used. They indicate whether
the transaction value method, the
primary method of valuation, has been
applied or whether an alternative
valuation method has been used due to
specific circumstances or non-
availability of transaction value
information.

_______________________________ is
part of a larger ministry called Public
Safety and Emergency Preparedness
Canada (PSEPC), often called Public Safety
Canada.
CBSA

CBSA
▶ Public Safety Canada, also known
as Public Safety and Emergency
Preparedness Canada (PSEPC), is
a federal government
department responsible for
national security, emergency
management, and border
strategies in Canada. Several
agencies and organizations fall
under the jurisdiction of Public
Safety Canada, including Canada
Border Services Agency (CBSA):
CBSA is responsible for
administering Canada's customs
and immigration laws at ports of
entry, facilitating the flow of
legitimate trade and travel while
enforcing border security
measures.

_______________________ is responsible
for producing and maintaining what is
called the Harmonized Commodity
Description and Coding System
(Harmonized System).
WCO

WCO
▶ WCO is responsible for producing and
maintaining what is called the
Harmonized Commodity Description
and Coding System (Harmonized
System). The World Customs
Organization (WCO) is indeed
responsible for producing and
maintaining the Harmonized
Commodity Description and Coding
System (HS), commonly referred to as
the Harmonized System.
The Harmonized System is an
internationally standardized system
for classifying traded goods. It
provides a common language and
framework for classifying products
traded internationally, facilitating the
uniform application of customs
tariffs, regulations, and statistical
analysis across countries.

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