A customs broker represents businesses at the Canadian border. A customs broker license is given by the Canadian Border Services Agency (CBSA) to professionals specially trained to work with companies and individuals to ensure that their imports comply with regulations and clear the border without delays. The CBSA puts out strict guidelines and laws, and a customs broker is fully trained and prepared to follow all of them. They are experts on Canada’s complex and ever-changing import regulations.
Participating Government Agencies. The Canada Border Services Agency’s (CBSA) Single Window Initiative streamlines the sharing of commercial import data between the Government of Canada and the import community. Along with the CBSA, there are nine participating government departments and agencies representing 38 government programs.
The Single Window Initiative has two service options:
Valuation is the determination of the correct value of goods. CBSA requires all goods imported and declared into Canada to have a value for duty. This is the base figure on which you must calculate the duty and taxes you may owe the CBSA on your imported goods.
With items like samples, replacements, warranty items, and short-shipped goods, you are still required to declare a fair market value, although, in the end, payment of duties and taxes may be unnecessary.
A commercial invoice is the main document that CBSA relies on to provide the information required for release. Documents like the Canada Customs Invoice (CCI), or other acceptable documents such as a bill of sale, must be provided to your Broker. The Invoice must contain the information as noted in Customs D-Memorandum 1-4-1.
Ensure your documents reflect who the Importer of Record is. Your documents should have the contact names as well as the current phone number and email address of someone they can call to address any issues with the information provided.
The Importer of Record is the resident or non-resident importer responsible for reporting the shipment and paying the duties, taxes, and other fees. The Importer of Record is responsible for the accuracy, completeness, and timeliness of the submitted information. Quite often the invoice provided lists a related company or entity, but this company is NOT the Importer of Record.
Oftentimes the description of goods is too vague. Your Broker needs enough of a description to classify the product you are importing correctly. Your product may also qualify for a Free Trade Agreement. A clear, literal description of the item, what it is chiefly made of, and what it will be used for are absolutely required.
The correct number of pieces or packages and the correct weight are very important elements that must be reflected on the invoice provided to your Broker. Duty and/or taxes can be applied based not only on the value of an item but on the weight or piece count as well.
The correct Country of Origin and proof of the same are very important to ensure that the correct tariff treatment is applied. The goods could be duty-free or have a lower rate of duty if a Free Trade Agreement can be applied.
Canada determines Country of Origin on the following: “The country of origin of invoiced goods is the country in which the goods have been grown, produced, or manufactured according to criteria laid down for the application of the Customs Tariff or quantitative restrictions, or any measure related to trade. Each manufactured article on the invoice must have been significantly transformed in the country specified as the country of origin to its present form ready for export to Canada. Certain operations such as packaging, splitting, and sorting may not be considered as sufficient operations to confer origin.”
Enrollment in CBSA Assessment and Revenue Management (CARM) is mandatory for all commercial importers. All importers must register in the CARM portal in order to import.
Once fully implemented, CARM will simplify the overall importing process by: