BBB 4M – Unit 4 Lesson 9 Handouts
Article: How to Import into Canada
Bringing a product into Canada requires compliance with a variety of import regulations
and procedures. All goods entering Canada are subject to requirements by the Canada
Border Services Agency. If you are importing goods into Canada, you will find that there
are many key players involved in the process: exporter, carrier, customs broker,
importer, and the Canada Border Services Agency (CBSA).
The company shipping the material is to be the exporter. The company receiving the
shipment is to be considered as the importer. The carrier is responsible for preparing a
Cargo Control Document. This document (also known as a manifest or waybill) is
prepared from the exporter’s Bill of Lading and is used to report the shipment to the
Canada Border Services Agency (CBSA). If the value of your shipment is less than
$1600 CAN, you will be notified by Canada Post or by the courier company that has
forwarded the shipment when your shipment arrives. If the value of your shipment is
over $1600 CAN, you will be notified by your carrier, by the CBSA, or by the courier
company. The CBSA may choose to inspect your shipment.
You will need documentation! Customs documents are any group of documents
required by the Canada Border Services Agency (CBSA) to accurately and completely
identify goods that are being imported. Canada, like every country, has its own specific
rules and regulations regarding information and documents required. To get your goods
released, you can present a full accounting and pay all duties or get your goods
released prior to the payment of duties. A customs broker will facilitate the release and
accounting of your shipment based on the documentation supplied by you the importer,
the exporter and the carrier. The entire process is referred to as the customs clearance
process. Customs entries can be changed after they have been submitted if an error
has been made in the accounting information. This often occurs when the importer can
prove that they should benefit from a reduced/zero duty rate, the importer has new or
updated information regarding the shipment, or the CBSA identifies an error on the
original entry, which requires a change or additional information.
The Canada Border Services Agency (CBSA) believes that most importers voluntarily
comply with the law once they understand their obligations and know how to meet them.
When you, as the importer, comply with the law your goods may be subject only to the
occasional random examination, which reduces your shipment release times and your
business costs.
Assignment 2
Automobile Importing
Complete the following questions in a word processor and submit your work your
teacher.
Research importing an automobile from the United States to Canada and answer the
following questions.
1. What are some of the problems facing consumers who want to buy or lease a
vehicle in the United Sates?
2. Given the difficulties why would a person want to import a car into Canada?
3. Identify three problems in importing a car that are a direct result of a vehicle
having been designed for the U.S. markets.
Article: Customs Brokers
Customs brokers clear millions of shipments of imported goods, prepare required
Customs documentation for further millions of export shipments, and collect billions of
dollars in duties owing to the government each year. The broker acts as middleman
between the importer and the government on some 80% of import transactions.
More than 150,000 importers deal with the Canada Border Services Agency (CBSA)
each year. Most rely on the services of a licensed customs broker to get their shipments
cleared at the border. For each of these transactions, reams of critical business data
must be generated, about everything from country of origin and destinations, to
suppliers, tariff classifications, routings, and intended use. Importers use customs
brokers to pull that information together and clear the goods through customs.
Brokerage companies make it easier for individuals and firms to comply with complex
government legislation, and make it easier for the government to encourage and obtain
compliance. Customs brokers offer a range of specialized services to help importers
develop new product lines, explore new markets, evaluate the impact of global change,
and cut costs.
Here is an example of a typical shipment. The truck driver picks up your shipment and
takes the document package to the border (customs broker) or faxes them to the border
prior to arrival. The data is reviewed and the release request prepared by the broker is
sent to Canadian Customs.
Customs makes a decision to release the cargo or inspect the shipment. Duty is
assessed and reported on a “B3” Customs Entry form. Canada Customs determines the
duty based on the commodities’ country or countries of origin and the value of the
shipment. A goods and services tax of five percent, which is Canada’s federal sales tax,
is applied to almost all commercial transactions.
To expedite the release of cargo at the Canadian border, U.S. exporters can provide the
shipment information electronically to the broker prior to shipment. The information is
reviewed and the release request is prepared and electronically sent to Canadian
Customs. Customs makes a pre-arrival decision to release or inspect the shipment.
When the truck driver arrives at the border, the driver receives a message to cross the
border or stop for inspection.
The Canadian border’s impact on U.S. exporters is significant. It affects your ability to
operate effectively in Canada, your relationships with your Canadian clients, the speed
and reliability of your supply chain, and your costs. By providing the proper
documentation and information, you will help eliminate unnecessary delays.