CUSTOMS BROKERAGE AND CLEARANCE glossary
B3, Canada Customs Coding Form
Form used to account for commercial goods of any value imported to Canada.
Business Number (BN) Commercial Goods
A number used to identify importers and exporters of commercial goods. The goods are imported to Canada for resale or for commercial, industrial, professional, co-operative, or other similar use.
Carrier Code Number
Code number by which a carrier is identified in the Customs Cargo Control System.
A number of separate shipments grouped together by a consolidator or freight forwarder and shipped under one Cargo Control Document.
Under the Customs Tariff all of the duties and taxes levied on imported or exported goods are included (except for the duties and taxes provided for in sections 53, 55, 60, 63, 68, or 78, or the temporary duties levied under any of sections 69 to 76).
Any office designated under section 5 of the Customs Act. Includes the place where goods are accounted for and applicable duties and taxes are paid, as well as the office to which individuals or carriers report to carry out procedures for entry to Canada.
Process whereby a consolidated shipment is divided into individual shipments consigned to various consignees.
The re-routing of a shipment, prior to arrival at the destination Customs Office, Sufferance Warehouse, or Breakbulk Facility indicated on the Cargo Control Document, to a Customs release point other than that shown on the Cargo Control Document.
Under the Customs Act, duties and taxes on imported goods under the Customs Tariff, the Excise Tax Act, the Special Importation Measures Act, and any other Act of Parliament. However, for the purposes of some articles of the Customs Act, the term “duties” does not include taxes applied under Part IX of the Excise Tax Act (i.e. the GST).
E29B Document – See Temporary Admission Permit
Frequent Importer Release System (FIRST)
System to process frequent low-risk shipments. Importers and brokers must request to be placed on the system. Shipments of bulk or identical goods that do not normally require an examination, a permit, or certificate may be processed under this system if the importer or customs broker has a good record of compliance. If the goods are eligible for this system, the importer or broker will be assigned an authorization number, used to identify FIRST shipments at the time of importation.
Any item or part thereof subject to the control of Customs, without excluding modes of transport and animals.
Goods and Services Tax (GST)
A federal tax levied on all products and services imported into Canada and (or) supplied in Canada, except for those expressly exempted by the Excise Tax Act (Appendix VII). This Act replaced the Federal Sales Tax (FST) on January 1, 1991.
Harmonized Sales Tax (HST)
The combination of provincial sales tax and the federal GST. Commercial imports are subject only to the 5% federal component at the time of importation.
The person or entity who causes the goods to be imported, is responsible for accounting for the goods, and for the payment of applicable duties and taxes.
The movement of foreign goods through Canadian territory from a point outside Canada to another foreign point, as well as Canadian goods moving from a point in Canada, through the USA to another point in Canada.
A method of accounting for goods. Subsection 32(2) of the Customs Act makes it possible to grant the release of goods before the final accounting – also known as Release on Minimum Documentation or RMD.
Low-Value Shipment (LVS)
A shipment of commercial goods, except for a postal shipment, with an estimated value for duty of less than $1,600. Such goods must be accounted for in full no later than the 24th day of the month following the month of release. For example, if the release was granted between October 1 and October 31, the final accounting must be done no later than November 24th; the duties must be paid by the end of the accounting month (i.e. by November 30th).
Means any excess in the actual number of pieces in a shipment against the quantity reported on the Cargo Control Document.
Pre-arrival Review System (PARS)
A system allowing importers and brokers to present release documents prior to the arrival of a shipment. The release documentation is processed and a recommendation and Cargo Control Number are entered into the Customs Commercial System (CCS).
Upon the arrival of the shipment, the customs officer obtains the original invoice from the carrier and uses the Cargo Control Number in bar-code format to access the CCS to determine if the shipment should be released or referred.
The authorized removal of goods from a Customs office, a Sufferance or Bonded Warehouse, or a Duty-free Shop (in the case of exports) for use in Canada.
Release on Minimum Documentation (RMD)
A system that permits importers and brokers with valid account security to obtain release of goods based on minimal documentation (i.e. the CCD, the invoice, and any other documents required at the time of release, such as import permits or certificates). RMDs are now transmitted to Customs electronically.
A new Cargo Control Document, with a new Cargo Control Number that is presented to change a Cargo Control Document that had previously been submitted to Customs. Remanifests are generally presented to change destination office or carrier code.
Request for adjustment
Used to request an adjustment to a document used to account for commercial goods (e.g. a reimbursement, review, or re-determination of the tariff classification, value for duty, or country of origin). The request is made using Form B2, Canada Customs - Adjustment Request.
A means by which goods become the property of the state (e.g. confiscated goods).
Any deficiency in the actual number of pieces in a shipment against the quantity reported to Customs by the carrier on the Cargo Control Document.
Portions of one shipment covered by one air waybill enter the country at different times.
A deficit in the actual number of items in a shipment compared to the quantity declared on the Cargo Control Document.
Temporary Admission Permit, E29B
Document used by Customs to ensure compliance with conditions for temporary entry of goods and to register security posted, if applicable.
A 14-digit number appearing on the CCD, on Form B3, and on other supporting documents used for the accounting and release of goods. The transaction number is used for identification and control purposes. It has three parts: an account security number, a number assigned to the importer or broker, and a control number.