The post CARM IS NOW LIVE first appeared on PF Collins International Trade Solutions.

If you are currently registered in CBSA’s CARM client portal, you are able to make payments towards your CBSA 15-digit Business Number account. Payments made in the CARM client portal or any other manner should only be made by GST Direct or by having a RPP Duty Bond in place. 

GST Direct

GST Direct has been arranged via your Customs Broker. Release of goods is secured on your Customs Broker’s Bond. Your Customs Broker will make payment on the Duty, Excise Tax, & SIMA directly to the CBSA and supply you with a monthly statement on the 25th of each month outlining the GST portion. In turn, the Importer will make payment directly to CBSA for the GST amount provided by your Customs Broker. Payment must be made by the last business day of the same month.

RPP Duty Bond

The Importer has secured their own Release Prior to Payment Duty Bond and arranged with their Customs Broker to utilize the Importer bond to obtain release prior to payment. On the 25th of each month, your Customs Broker will supply you with a monthly statement outlining all Duties & Taxes. In turn, the Importer will make payment directly to CBSA for the total provided by your Customs Broker. Payment must be received by CBSA by the last business day of each month.

The post Paying Your Duties & Taxes In CARM Release 1 first appeared on PF Collins International Trade Solutions.

A Non-Resident Importer (NRI) is a business based outside of Canada, who does not have a physical presence in Canada, but imports goods into Canada as the Importer of Record.

The Non-Resident Importer (NRI) Program is an initiative of the Canada Border Services Agency (CBSA) that allows international exporters to sell products to Canadian customers directly on a delivered-price basis, without the need for a physical presence in Canada.

Registering as an NRI offers many benefits, including the following:

• Better control over your supply chain
• An increased ability to compete in the Canadian marketplace
• Opportunities to provide better service to Canadian customers

Below we summarize the benefits of becoming a Non-Resident Importer, your responsibilities, and how to register to the NRI Program. For your convenience, we have also created a comprehensive NRI Guide available to download

Download

We offer a Non-Resident Importer Registration Service for those ready to obtain a Business Number, register to CARM and authorize books & records, as well as a Non-Resident Importer Record-Keeping Service for existing clients of PF Collins to maintain important import documents.

Who is a Non-Resident Importer?

A Non-Resident Importer (NRI) is a business based outside of Canada. They do not have a physical presence in Canada but imports goods into Canada under their own name. By registering as an Non-Resident Importer, your company becomes the Importer of Record into Canada.

Becoming the Importer of Record offers many benefits. For instance, the Importer of Record can include all costs of shipping and customs into one price to the customer. The sale resembles a domestic transaction for your Canadian customer, making your product easier to purchase.

However, the risk of becoming the Importer of Record is that you are responsible for complying with the many rules and regulations associated with importing goods into Canada under the Customs Act and Customs Tariff Act.

What are the Benefits of Becoming an NRI?

Reduced Costs

Non-Resident Importers do not need a physical establishment in Canada to sell to Canadian consumers.  As a result, operating and overhead expenses associated with infrastructure, employees, warehousing, and distribution are reduced.

Being an NRI also contributes to savings within your supply chain. As both the exporter in your own country and the importer in Canada you are better able to estimate and control shipping and import-related costs. You are also able to consolidate shipments, further reducing these costs. 

Supply Chain Control

As both the exporter and the importer, you control the shipping process. This allows you to manage the movement of your goods and potential bottlenecks in the supply chain. Becoming an NRI also allows you to create consistency in your import processes, reducing delays at the border and delivery times to customers.

Accessibility for Customers

NRIs can offer direct delivery to Canadian customers, removing the administrative costs and “hidden fees” often associated with buying products internationally.

Becoming the Importer of Record in Canada allows you to sell your products to customers on a Delivered Duty Paid (DDP) basis (Incoterms 2020), meaning you pay all the costs of delivering the goods door-to-door to your customer. As a result, you control the shipment tracking and your customer only pays the final online or invoice price.

Competitive in the Canadian Marketplace

Reduced costs and easier access for Canadian consumers allows you to compete more effectively and increase your sales and market share in Canada. As a Non-Resident Importer, your sales resemble domestic transactions to Canadian customers – similar to purchasing the products from a Canadian company.

What are the Responsibilities of an NRI?

The biggest risk of becoming a Non-Resident Importer is the responsibility for compliance with the many customs laws and regulations. As the Importer of Record, you are liable for submitting accurate and complete information to the CBSA, paying the applicable duty and taxes, and maintaining records.

Failure to submit the required information and payments may result in fines and penalties under the Administrative Monetary Penalty System (AMPS), confiscation of goods, or being prohibited from future importations.

1. Submitting Correct Information

Goods imported into Canada require specific information for clearance by CBSA at the border, including the following:

• Correct tariff classification for the imported product
• A Canada Customs Invoice (CCI) or commercial invoice detailing the same information as a CCI
• A Certificate of Origin to apply preferential tariff treatment (e.g. CUSMA, CETA, etc.)
• Additional information/documents for the imported product (e.g. import permits)

2. Paying Duties & Taxes as a Non-Resident Importer

3. Maintaining Records as an NRI

Companies or individuals importing or exporting to/from Canada must maintain accurate records for 6 years plus the current year.

Under authorization from the CBSA, a Non-Resident Importer may designate a Customs Broker to prepare, submit, and maintain all shipment-related documentation and records. However, they must submit a request in writing to the CBSA for approval. In addition, NRIs may request authorization to maintain records outside of Canada by submitting a letter of undertaking to the CBSA.

How to Become a Non-Resident Importer in Canada

1. Apply for a Canadian Business Number (BN)

To become a Non-Resident Importer you must first obtain a Business Number (BN) from the Canada Revenue Agency (CRA) prior to importing into Canada. The Business Number is a unique 15-digit number companies in Canada use to transact with government agencies.

You will also need an import/export account. Import/export account numbers include your Business Number, plus the two-letter identifier ‘RM’ (e.g. 123456789RM0001).  Your import/export account number is submitted to CBSA on customs clearance documents and are only used when importing or exporting.

To register for a Business Number, or add an import/export account to an existing Business Number, contact the CRA’s Business Window at 1-800-959-5525, or register online using the Business Registration Online (BRO) service.

2. Register as an NRI with the CBSA

Non-Resident Importers must register with the CBSA. When doing so, they must advise of the location in which records will be kept. To maintain records outside of Canada, NRIs must submit a letter of undertaking to the CBSA for approval.

2. Register to CARM

To import goods into Canada, NRIs are also required to register to and make duty/tax payments through the CARM Client Portal. As of May 2022, all importers must complete the following:

1. Register to the CARM Client Portal
2. Post financial security in the form of a surety (or import) bond to participate in the Release Prior to Payment (RPP) program

Information & Resources

To further clarify and assist with registration and use of the CERS portal, CBSA has provided several resources:

• General Agency Agreement (To appoint PF Collins as your Customs Broker)
• CARM Information

The post The Non-Resident Importer (NRI) Program first appeared on PF Collins International Trade Solutions.

SFC Licence

Businesses importing food or preparing food for export internationally (or across provincial or territorial borders) may require a SFC Licence from Canadian Food Inspection Agency (CFIA) in order to import/export food products into/out of Canada.

CFIA provides an interactive tool that can help determine if your products need a licence. As your Customs Broker, we report this license number on customs clearance entries made on your behalf to Canada Border Services Agency (CBSA) and CFIA.

Consistent with international food and safety standards, Canadian businesses exporting foods regulated by the U.S. Food and Drug Administration can use their licence under the SFCR to meet requirements under the U.S. Foreign Supplier Verification Program.

Note: Importers must possess a valid Safe Food for Canadians (SFC) licence issued by the CFIA before presenting their shipment at the border. Importers will not be able to obtain an SFC licence at the border.

SFC Licence Renewals

SFC Licences are valid for two (2) years. As SFCR came into effect on January 15, 2019, some SFC Licences began expiring on January 15, 2021. Others expire in the days and weeks that follow. If you have an SFC Licence, you can renew your licence up to 120 days before the expiry date online through your My CFIA account.

Submit your request for renewal as early as possible to allow for processing. If your licence expires, your business will no longer be permitted to import/export your food products.

For more information on how to use the My CFIA account portal, visit My CFIA – User Guidance. For instructions how to renew or amend an issued licence permission, follow the link below.

Preventative Controls

Under the Safe Food for Canadians Regulations, importers and exporters of food products are required to develop and maintain a Preventative Control Plan (PCP) to ensure food you are importing/exporting is safe for Canadians or international consumers.

The Preventative Control Plan must describe the food being imported/exported, any hazards that pose a risk of contaminating the food, methods to control the risk, foreign supplier control procedures, and consumer protection requirements (e.g. labelling, grade standards, packaging, etc.).

CFIA provides an interactive tool that can help you develop a Preventative Control Plan.

In addition, SFCR requires that you maintain procedures for handling complaints and recalls for your imported/exported food. This also applies to food produced in Canada, whether for export markets or consumption domestically across provincial or territorial borders.

Traceability

Importers/exporters must maintain traceability records to track and document where food products were purchased and sold.

CFIA provides an interactive tool that can help you determine what your traceability requirements are and when you have to have them in place.

Other SFCR Considerations

In addition to the CFIA, other government departments and agencies regulate the import/export of food products into and out of Canada (e.g., Health Canada, Global Affairs Canada, etc.). As an importer or exporter it is important that you review all specific food groups to ensure compliance with their regulations.

The post Safe Food for Canadians Regulations (SFCR) first appeared on PF Collins International Trade Solutions.

The post AMPS Penalties to Increase April 1 first appeared on PF Collins International Trade Solutions.

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The Single Window Initiative (SWI)

The Single Window Initiative (SWI) is an initiative of the Canada Border Services Agency (CBSA) that allows importers submit all information related to their shipments electronically for customs clearance.

SWI helps importers meet the requirements of multiple government departments through the use of a single, electronic customs declaration.

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How SWI Works

Through the Single Window portal, importers are able to submit one electronic customs entry containing all required details and supporting documentation required by CBSA and the Participating Government Departments and Agencies (see below).

There are currently nine (9) PGAs participating in SWI. Each PGA requires their own unique type of information and documentation. It is the Importer’s responsibility to ensure that all required data is accurate and submitted to CBSA and the PGA at the time of customs clearance.

Once received, the PGA and CBSA assesses the data submitted and makes a decision on customs clearance of the shipment.

Note: Some Other Governmental Departments (OGDs) still require paper submission of documents to CBSA at the time of clearance.

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Participating Government Agencies (PGAs)

The SWI portal collects information for the CBSA and the nine PGAs for 38 government programs. Government departments and agencies participating in SWI include:

• Canada Food Inspection Agency
• Transport Canada
• Global Affairs Canada
• Fisheries and Oceans Canada
• Natural Resources Canada
• Health Canada
• Public Health Agency of Canada
• Canadian Nuclear Safety Commission
• Environment and Climate Change Canada

CBSA provides data requirements for each PGA and applicable products, with more data elements being posted as they become available.

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Integrated Import Declaration (IID)

Under SWI, importers and customs brokers will submit an electronic Integrated Import Declaration (IID) to CBSA. The IID replaces the Pre-Arrival Review System (PARS) and Release on Minimum Documentation (RMD) service options and captures additional information required by the PGDs listed above.

The IID applies to both pre- and post-arrival and can be submitted to CBSA up to 90 days prior to the arrival of the goods.

Note: The legacy Other Government Department (OGD) release systems, PARS and RMD, were decommissioned as of August 17, 2020.

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What SWI Means for Importers

The Single Window Initiative will mean that the amount of information required to clear your shipments may change and/or increase.

Therefore, to manage these requirements and avoid delays at the border, we recommend that you submit all required licenses and/or permits for PGA-regulated goods with your shipping documents.

If using a Customs Broker to clear your goods, you should provide all the required information and supporting documents related to your shipment to your broker.

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We Can Help!

PF Collins can help ease the transition to SWI and answer any questions you may have about the program.

If you have any questions regarding the Single Window Initiative or any other import/export matters, please contact us

Contact Us

The post The Single Window Initiative (SWI) first appeared on PF Collins International Trade Solutions.

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What is the Administrative Monetary Penalty System?

The Administrative Monetary Penalty System (AMPS) allows the Canada Border Services Agency (CBSA) to issue monetary penalties to anyone involved in the import or export of goods. This includes importers, exporters, carriers, freight forwarders, warehouse operators, and customs brokers.

AMPS was created by the CBSA to encourage compliance with import and export rules and regulations. It also serves to create a level playing field for Canadian businesses participating in international trade.

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AMPS Penalties by the Numbers

In 2017, recommendations from the Auditor General’s Spring Report resulted in significant changes to CBSA’s processes and procedures, including increased border enforcement and compliance audits on importers. AMPS penalties have continued to rise each year since.

As of the CBSA’s most recent July 2020 – November 2023 statistics report, the AMPS contraventions totaled nearly $37 million CAD in penalties issued.

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Assessment of Penalties

AMPS penalties result when a company fails to follow the rules and requirements of the Customs Act, Customs Tariff Act, and other government regulations.

CBSA maintains a Master Penalty Document listing all contraventions. It also describes the failure to comply and the associated penalty amount. Examples of non-compliance include:

• Failure to pay duties
• Not submitting required information and documents to the CBSA
• Not reporting goods to the CBSA
• Removing goods from a bonded warehouse prior to customs release by the CBSA

A CBSA Officer can issue an AMPS penalty at the border or through audit after customs release. Penalties may also result from a Trade Compliance Verification conducted by the CBSA. The CBSA manages trade compliance verification by conducting audits randomly or by identifying specific products as audit targets. See the latest target products:

Trade Compliance Audit Targets January 2024

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What Happens if You Receive an AMPS Penalty?

You will receive a Notice of Penalty Assessment (NPA) from the CBSA. The NPA will describe the reason for penalty assessment, the corresponding contravention number (e.g. C005), and the penalty amount incurred. The penalty structure is graduated and progressive, with increased penalty amounts for repeat occurrences. The maximum penalty amount for a single contravention is $25,000. 

CBSA maintains a record of contravention history for three (3) years. This can affect your business operations due to increased monitoring and inspections when importing or exporting goods.

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How to Avoid Non-Compliance

Importers and exporters are ultimately responsible for providing accurate and complete information to the CBSA regarding their shipments. Therefore, understanding the requirements related to your imports and exports is the first step to remaining compliant.

Working with vendors and services suppliers, including Customs Brokers and Freight Forwarders, and regularly reviewing your international trade activities will also help to avoid being fined under AMPS.

Finally, we recommend developing a compliance plan to ensure accurate records related to your imports and exports are maintained. 

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Helpful Resources

• National Administrative Monetary Penalty (AMPS) Statistics
• Quarterly Reports of Administrative Monetary Penalties
• AMPS Master Penalty Document

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We Can Help!

Whether you require a Customs Broker or Customs Consultant to accurately classify and clear your goods or to help guide you through a compliance audit, we can help.

Contact us today for help with all of your international shipping needs!

Contact Us

The post The Administrative Monetary Penalty System (AMPS) first appeared on PF Collins International Trade Solutions.

Prime Minister Justin Trudeau affixed his signature to the Comprehensive Economic and Trade Agreement (CETA) this past weekend. This deal is still not done and is dependent on the European Parliament’s approval and ratification by 28 EU countries, which could take years.

Approximately 200 reservations to CETA were made on behalf of Canada’s provinces & territories. One example is Newfoundland and Labrador’s rights to maintain and regulate the exploration and development of hydrocarbons, such as oil production. Other items controlled by Canada include forestry, gambling, natural resources, and alcohol.

Under CETA, duty will be relieved on an estimated 99% of goods. Beneficiaries, such as the textile and agricultural sectors, will obtain a huge advantage. Canada will be able to export larger quotas of pork, beef, and wheat to the EU countries. In turn, EU dairy producers will benefit by the ability to send more than double the amounts of the current quota of “high quality” cheeses to Canada.

CETA opens up major trade lanes for Canada to the EU countries, resulting in a reduced dependency on the USA. The EU market has a potential market to Canadian companies of 508 million consumers, representing an estimated trade boost for Canada of $12 billion Canadian dollars per year. For comparison, Canada’s population is currently 38+ million and the USA, 340+ million.

The post CETA Signing Just the Beginning first appeared on PF Collins International Trade Solutions.

The Canada-European Free Trade Association Free Trade Agreement (CEFTA) was first signed in Davos, Switzerland on January 26, 2008 and came into effect July 1, 2009. CEFTA includes the countries of Iceland, Liechtenstein, Norway and Switzerland. As a result of this agreement, duty rates applied to the importation of various vessels into Canada were greatly affected.

Canadian customs duties under Chapter 89 – Ships, boats, and floating structures – of the Harmonized Tariff average 25% under the Most Favoured Nation (MFN) Tariff rate. Vessels that qualify under the rules of origin of CEFTA will benefit from a reduction of these duty rates as, under the agreement, the rate of duty is gradually being reduced on an annual basis until it reaches duty free status in July 2023.

Due to the complexity of CEFTA rules of origin, its distinct tariff classification regulations, as well as an increased frequency of auditing by Canada Border Services Agency (CBSA), it is in an importer’s best interest to obtain an advance ruling on Tariff Classification and Origin Status. A written decision from CBSA on tariff change in advance of the importation may affect the origin qualification and eliminate duty exposure.

PF Collins has been assisting vessel owners and operators for over 50 years! Further information on vessel importations and Canada’s coasting trade regulations can be found in our Guide to Importing Vessels into Canada. Please contact us if you require any further information or assistance.

Importing A Vessel Into Canada

Further information on vessel importations and Canada’s Coasting Trade regulations can be found in our Guide to Importing Vessels into Canada. Or contact us if you require any further assistance!

Learn More

The post How CEFTA Affects the Importation of Vessels into Canada first appeared on PF Collins International Trade Solutions.

A drawback is a refund of customs duties on imported goods that are eventually exported. Under CBSA’s Duty Drawback Program, you can even claim a drawback on imported goods that were sourced from a supplier in the domestic market!

Qualifying for a Drawback

If you are the importer, exporter, processor, owner or producer of the goods, you may qualify for a drawback if one of the following applies:

1. You are directly or indirectly involved in importing goods that are later exported in the same condition they were imported or
2. Goods were further manufactured or
3. The imported goods were used in a limited manner to produce other goods for export

Time Limits

In most cases, you have to present a claim no later than four (4) years from the date the goods were first imported. You cannot file a claim until you have exported the imported goods.

The post Importing or Exporting? Duty Drawback Program first appeared on PF Collins International Trade Solutions.