Casual Refund Program (Canada)
1. Introduction
This document outlines the information required by the Canada Border Services
Agency (CBSA) for the electronic filing of casual refund claims that are
submitted by Landmark Trade Services on behalf of the casual importer for
goods that are ordered through e-commerce.
The CBSA developed a casual refund process designed to streamline the
refund and adjustment of customs duties, the Goods and Services Tax (GST),
Harmonized Sales Tax (HST), provincial sales tax (PST), provincial tobacco and
alcohol taxes and levies applied under the Special Import Measures Act (SIMA)
for all casual importations. This process enables importers of casual goods to
complete a simplified CBSA Informal Adjustment Request (Form B2G) and mail
it to the Casual Refund Centre (CRC) for processing.
Initially, casual refund requests were filed by the casual importers themselves
and processed manually by the CBSA. Today, many e-commerce companies
collect duties and taxes from the Canadian casual importer at the time an order
is placed and entrust Landmark Trade Services to obtain release of the goods
from the CBSA and account for the customs duties and taxes. Landmark Trade
Services also handle and process the return of the goods and the submission of
refund claims on behalf of the casual importer.
The CBSA has developed a streamlined process for casual refund claims
submitted by Landmark Trade Services on behalf of the casual importer, called
the Casual Refund Electronic Data Interchange System (CREDITS). CREDITS
apply only to casual e-commerce goods that have been returned to a CREDITS-
Confidential
Landmark Global, a bpost company
1/6
approved foreign sales company (FSC) through Landmark Trade Services. It
enables Landmark Trade Services to electronically transmit specific information
to the CRC, and after review and approval of the claim will issue the importer’s
refund in care of Landmark Trade Services.
The CREDITS process allows for the transmission of minimal refund data on the
condition that original records of the import and export transaction are
maintained by Landmark Trade Services. To ensure the eligibility of refund
claims the CBSA reserves the right to conduct verification checks by requesting
the original import and export documentation, which must be presented to the
CRC within the requested timeframe. An audit may also be performed by the
CBSA on the applicant's books and records.
The system deposits the refunded amounts directly into Landmark Trade
Services’ designated bank account. This eliminates the large volume of cheques
printed for refund claims. A reconciliation file containing the financial
information of the paid claims is then created. This file is used by Landmark
Trade Services to reconcile the transmitted claims that were paid with the
refund amounts deposited.
2. Credits requirements
CREDITS apply only to casual e-commerce goods that have been returned to a
CREDITS-approved FSC through Landmark Trade Services. It enables Landmark
Trade Services to electronically transmit specific information to the CRC, and
after review and approval of the claim will issue the importer’s refund in care of
Landmark Trade Services. The CREDITS process does not include the refund of
duties and taxes on casual goods imported by non-resident importers and
subsequently returned by their Canadian clients.
To participate in CREDITS, Landmark Trade Services must complete an
Agreement to Electronically Process Casual Refund Claim application, Form
E613, and submit it for authorization by the CBSA.
Confidential
Landmark Global, a bpost company
2/6
Upon receipt of Form E613, a program officer will review the application, assign
a six-character code to the FSC and advise IT System Support and the
designated CRC. The program officer will obtain from Landmark Trade Services
all information required to complete the CREDITS broker profile. Once the
application is approved, the applicant will be notified in writing.
Participants must be pre-authorized by the CBSA in order to participate in this
program. Claims predating CBSA’s approval are not eligible for the program
and must be submitted and processed using a hard copy B2G. Pursuant to
CBSA’s approval, authorized participants can send their claims electronically
using CREDITS.
Landmark Trade Services must complete the cycle within the power of attorney,
which states:
a) Act as the importer’s agent; b) Transact business with the CBSA; c) Release the importer’s goods and account for the duties and taxes to
the CBSA; d) Export the goods on behalf of the importer to the FSC; e) Electronically submit the refund claim for the returned e-commerce
goods; f)
Receives refund cheques on behalf of the importer; and, g) Redirects refund to the FSC. The power of attorney (POA) must be immediately available in the online
ordering/shipping instructions or in the catalogue for viewing by the client prior
to purchase. The power of attorney must clearly explain to the importer that
Confidential
Landmark Global, a bpost company
3/6
they are waiving all rights to account and obtain a refund directly from the
CBSA, that they will receive a refund of duties and taxes directly from the FSC,
and that this also authorizes Landmark Trade Services to endorse the refund so
that the FSC can be reimbursed. The wording of the POA should read as
follows:
(Name of foreign sales company) is an approved CREDITS participant with the Canada
Border Services Agency (CBSA). By ordering goods from (Foreign Sales Company), I hereby
authorize Landmark Trade Services an approved customs broker in CREDITS, to act as my
agent, and to transact business with the CBSA to obtain release of my merchandise, account
for duties and taxes, return merchandise to (Foreign Sales Company), and electronically
submit refund claims on my behalf.. Under the CREDITS program, I understand that the
CBSA will send any refund of duties and taxes that were paid on the returned merchandise
to the customs broker, and that I will obtain the refund directly from (Foreign Sales
Company). Further, I also authorize the customs broker to forward any refund issued by the
CBSA in my name, so that (Foreign Sales Company) can be reimbursed.
Landmark Trade Services may use the CREDITS process only for goods that they
have imported and accounted for and for which they have maintained the
original records of the import and export transactions.
Landmark Trade Services must maintain books and records in Canada on behalf
of the FSC for audit and verification purposes. Upon request, Landmark Trade
Services must provide a hard copy of the refund claim to the applicable CRC
within 14 calendar days. For verification purposes, these documents include: a
copy of the import accounting document, which includes Form B3, Canada
Customs Coding Form, the transaction number, or, in the case of a CADEX
participant, a copy of Form K84, Monthly Account Statement, detailing the duty
and taxes paid along with supporting documentation for the entry of the
goods; the shipment identifier number; as well as proof of export, such as a bill
of lading, a US consumption entry, a Form E15, Certificate of
Destruction/Exportation and a credit note from the company where the goods
were returned.
Confidential
Landmark Global, a bpost company
4/6
Note each FSC’s has a value limit set independently by CBSA at the time of
CREDITS registration. Generally claims with a total amount in excess of
$150.00 are auto selected by CBSA for audit and verification purposes.
Effective April 1, 2014, CBSA has applied a $2.00 claim minimum to all refund
payments. This minimum is applied at the individual item level. Items with a
total refund amount less than $2.00 will not be refunded by CBSA.
A cancellation notice must be provided in writing to the CBSA if Landmark
Trade Services ceases to represent the FSC named on the agreement. Upon
receipt of this notice, the agreement between the CBSA and the applicant will
be terminated for the named company.
The CREDITS process currently only applies to returns and destructions. It does
not allow for electronic refund requests for re-classification, valuation, origin
issues or goods subject to remission. All refund requests that fall outside of the
CBSA approved CREDITS process outlined in this document must be presented
on a paper B2G refund claim.
Periodically the CBSA receives requests to process B2G casual refund claims in
blanket format. These requests will be reviewed on a case-by-case basis.
Landmark Trade Services collects a 10% Administration Fee for refund claims
processed through the CREDITS program. A 20% Administration Fee will be
charged for any paper B2G refund claims or blanket refund claims approved by
CBSA.
I have read and understand the policy and procedure to be followed as a
participant of the CBSA’s CREDITS program.
Confidential
Landmark Global, a bpost company
5/6
Signature __________________________________
Printed Name _______________________________
Title _______________________________________
Company __________________________________
Confidential
Landmark Global, a bpost company
6/6