COVID-19 CBSA Commercial & Trade Update

– As part of the Government of Canada’s efforts to reduce the spread and prevent importation of COVID-19, all travellers entering Canada regardless by mode, must provide their contact information if requested by the CBSA officer.
– The ArriveCAN mobile application allows a digital way for travellers entering to provide their basic traveller information and a self-assessment of symptoms as required by recent Emergency Orders under the Quarantine Act.

Certain Goods Remission Order (COVID-19), SOR-2020-101

Remission is granted for goods listed in the Certain Goods Remission Order (COVID-19), SOR-2020-101, under the following conditions:

a) the good was imported into Canada on or after May 5, 2020 and subject to customs duties;
b) no other claim for relief of the customs duties has been granted under the Customs Tariff in respect of the good;
c) the importer files, on request, the evidence or information that the Canada Border Services Agency requires to determine eligibility for remission;
d) the importer agrees that it is subject, at any time, including after remission relief is provided, to review by the Canada Border Services Agency for the purpose of determining whether the information supplied by the importer under paragraph (c) is accurate and complete and whether the facts on which the Canada Border Services Agency relied or intends to rely to determine the eligibility for remission remain unchanged in all material respects; and
e) at the time when the Canada Border Services Agency conducts the review referred to in paragraph (d), the Canada Border Services Agency must be able to conclude that the information supplied remains accurate and complete and that the facts remain unchanged in all material respects.

Importations may be subject to examination at the time of importation and to post-release verification for compliance with the Tariff Classification, Valuation, Origin and Marking programs, and any other applicable programs or provisions administered by the CBSA. If non-compliance is encountered by the CBSA, in addition to assessments of any applicable customs duties and taxes, penalties may be imposed and interest will be assessed, where applicable.

Implementation of the CUSMA de minimis threshold

The Courier Imports Remission Order upon CUSMA entry into force

Upon entry into force of the CUSMA, the following provisions will apply to imported goods that are transported by courier into Canada:

Goods with a value for duty of CAD$20 or less will have any applicable customs duties and taxes waived when imported from any country;
Goods with a value for duty CAD$20.01 or greater that are imported from any country other than the United States or Mexico will continue to be subject to any applicable duties and taxes;
Goods with a value for duty of CAD$40 or less will have any applicable customs duties and taxes waived when imported from the United States or Mexico only;
Goods with a value for duty of CAD$40.01 or greater, up to and including CAD$150.00, will be free of customs duties (however, taxes will remain applicable) when imported from the United States or Mexico only; and
Goods with a value for duty CAD$150.01 or greater will be subject to any applicable duties and taxes when imported from any country, including the United States or Mexico.

Canadian Exporting Reporting System (CERS) has been delayed until September 30th

While the implementation of the Canadian Exporting Reporting System (CERS) has been delayed until September 30th from the original CAED decommissioning date of June 30th, 2020 there are two aspects of export reporting that are not delayed.

June 30, 2020 remains in effect for mandatory electronic reporting (elimination of paper reporting or B13As) and Summary Reporting Program (SRP) members onboarding to CERS.
CBSA and StatsCan will be contacting exporters to encourage enrollment into CERS.

What is not a Medical Device?

Class I Medical Devices
Masks (surgical, procedure or medical masks) – Level 1, 2, 3 (ATSM)
N95 respirators for medical use
Face shields
Gowns – Level 2, 3 and 4

Class I medical devices do not require a medical device licence and are monitored by the Health Products and Food Branch Inspectorate (Compliance and Enforcement) through Establishment Licensing.

Products such as masks/respirators to protect against pathogens or prevent exposure to disease, surgical masks or N95 respirators intended to reduce exposure to pathogens or any product intended for use in the diagnosis of disease or other conditions, or in the cure, mitigation, treatment, or prevention of disease, in man or other animals is considered a medical device regulated by Health Canada.

If it is intended to cover the nose and mouth of the wearer to help reduce wearer exposure to pathogenic biological airborne particulates during public health medical emergencies, such as influenza pandemic and also protects the wearer from splash and spray of body fluids – it is therefore regulated as a medical device by Health Canada.

Surgical Masks and N95 Masks are Class 1 medical devices and importers are required to hold a Medical Device Establishment License (MDEL). A MDEL is issued for the activities of importing and selling medical devices for human therapeutic use in Canada.

Functional guidance for non-resident Importers

The Government of Canada has deferred the payment of duties and taxes on imported goods. Related debt due on the Statement of Account dated March 25, 2020 and later is now deferred to June 30, 2020

The payment deferral applies to both resident importers and non-resident importers. A Non-Resident Importer (NRI) is a company or individual who does not reside in Canada, but elects to act as the Importer of Record (IOR) for shipments imported into Canada.

For more information on the payment deadline extension, please consult Customs Notice 20-11- Extension of Timeframes for Payment of Customs Duties and GST.

Corrosion-resistant Steel Sheet, Inquiry No. NQ-2019-002

March 23, 2020—The Canadian International Trade Tribunal today initiated an inquiry to determine whether the dumping and subsidizing of corrosion-resistant steel sheet, originating in or exported from the Republic of Turkey, the United Arab Emirates and the Socialist Republic of Vietnam, have caused injury or retardation or are threatening to cause injury. This final injury inquiry was initiated further to a notice received from the Canada Border Services Agency stating that a preliminary determination had been made respecting the dumping and subsidizing of the above-mentioned goods.

Certain Concrete Reinforcing Bar.

On December 9, 2019, the Canadian International Trade Tribunal (CITT), pursuant to subsection 76.03(3) of the Special Import Measures Act (SIMA), initiated an expiry review of its finding made on January 9, 2015, in Inquiry No. NQ-2014-001, concerning the dumping of hot-rolled deformed steel concrete reinforcing bar in straight lengths or coils, commonly identified as rebar, in various diameters up to and including 56.4 millimeters, in various finishes, excluding plain round bar and fabricated rebar products, originating or exported from the People’s Republic of China, the Republic of Korea and the Republic of Turkey, and the subsidizing of the aforementioned goods originating or exported from the People’s Republic of China.

As a result of the CITT’s expiry review, the Canada Border Services Agency (CBSA) has today initiated an expiry review investigation (investigation) to determine, pursuant to paragraph 76.03(7)(a) of SIMA, whether the expiry of the finding is likely to result in the continuation or resumption of dumping and/or subsidizing of the subject goods. The CBSA will make a determination no later than May 7, 2020, and will issue a Statement of Reasons by May 22, 2020.

The subject goods are defined as:

“Certain hot-rolled deformed steel concrete reinforcing bar in straight lengths or coils, commonly identified as rebar, in various diameters up to and including 56.4 millimeters, in various finishes, excluding plain round bar and fabricated rebar products, originating or exported from the People’s Republic of China, the Republic of Korea and the Republic of Turkey”.

The product definition of the subject goods is found in Annex 1.

The subject goods are usually classified under the following 10-digit tariff classification numbers:

7213.10.00.00
7214.20.00.00
7215.90.00.90
7227.90.00.90

NRCan: Airbags no Longer Regulated

CBSA has advised that under Natural Resources Canada’s (NRCan) Explosives legislation, airbags are no longer a regulated commodity.