There are numerous reasons that you should work with a customs broker or courier when you are importing goods into Canada.  Professional brokers have years of experience dealing with the bureaucracy which surrounds global trade and can advise you on the best way to move your goods into the country while minimizing delays or extra costs.  More importantly, they can help you avoid any legal entanglements which could cause delays, fees, or even more serious charges.

Now, there’s yet another reason to work with a professional broker or courier when importing goods into the country from either the United States or Mexico.  When you’re importing only small amounts of product, the duties can potentially be waived when sending them via courier.

How The Courier Imports Remission Order (CIRO) Reduces Canadian Duties

Under the law, a courier is defined as “a commercial carrier that is engaged in scheduled international transportation of shipments of goods other than goods imported by mail,” and this applies to any other form of transport.   It also includes freight forwarders in its definition of “courier.”

Under CIRO, when goods from the United States or Mexico are imported via courier, fees are reduced in these situations:

• Customs duties are waived if the goods would owe CAD$150 or less in duties, and
• Taxes are waived on the goods if those goods would generate taxes of CAD$40 or less.

So, these rules do not apply to large shipments, but they could be highly useful to specialist importers who only deal in small amounts of stock.  However, there are a number of exceptions to be aware of.

These include, but are not limited to:

• Alcohol or tobacco products
• Items being sent as gifts, as per tariff item number 9816.00.00
• Items ordered from a Canadian retailer, which are drop-shipped directly from a foreign country to the purchaser
• Items ordered from an address or PO Box in Canada
• Goods imported by someone other than the purchaser

The list of restrictions is relatively long and complicated, with numerous exceptions.  This is a situation where working with an experienced Canadian customs broker can help you understand your rights and responsibilities.

ARGO Customs Sees Your Imports Safely Through the Border

We are specialists in Canadian importation, with deep knowledge of the laws and regulations which govern Canadian trade.  When you work with us, you can rest assured your shipments will arrive in Canada quickly and affordably.  Contact us to learn more.

 

With the arrival of the new Canada-United States-Mexico Agreement (CUSMA), our team at ARGO Customs knows that there are many questions and uncertainties that need to be addressed regarding this agreement. So, we decided to put together and answer some frequently asked questions to help you understand CUSMA and some of the new processes and regulations it is bringing.

ARGO Customs Answers Important Questions About CUSMA

• When will CUSMA start?

Beginning on July 1, 2020, the implantation of CUSMA will begin. For goods that are released after or on this date, they will be subject to these new tariffs. So, be prepared for these new processes and changes.

• Will NAFTA goods originate under the CUSMA?

There is no definite answer to this question. You must review the new CUSMA regulations to learn more about if the goods in question originate under CUSMA’s new agreement. As always, our customs brokers can help answer any questions or concerns you have with CUSMA and other importing and exporting rules/laws, so never hesitate to contact us when you need to.

• Will I need a certificate of origin for CUSMA goods?

You will not require a certificate of origin for things that have a value of $3,300.00 and above. With that being said, you will need certification of origin – as is standard for many new trade deals. Keep in mind that similar to NAFTA, it doesn’t need to be shown when it is being released and the certification can go along with any document.

The certification of origin may be completed by the importer, exporter, or the producer.

• Can an importer sign for the CUSMA certification?

Yes, an importer can sign the CUSMA certification of origin.

• For goods valued at $3,330 and under, will certification or a statement be needed for these items?

Beginning on July 1, the LVS threshold will take effect. In a situation where goods estimated at $3,300 and less are from a country that already has a Free Trade Agreement with Canada, there will be no need to show a certificate of origin or statement.

• For LVS Shipments that now need a certificate of origin, are “made in” stickers/stamps enough to get favored treatment?

For normal and causal products, yes, a simple “made in” symbol or marking should be sufficient. But for commercial goods, if there were to be an audit the Canada Border Services Agency (CBSA) has the right to be shown proof of origin. It is recommended to always get confirmation of where the goods originate from the client.

• For CUSMA goods, are there any tariff treatment codes to be aware of?

For goods that are imported into Canada, yes, there are two possible codes to be aware of; 10 is for goods from America, while 11 are goods that originate from Mexico. Unlike with NAFTA, goods that originate from both Mexico and the USA, no longer have a treatment code.

• For CUSMA goods, exactly how many origin criteria are there?

Per CUSMA Article 4.2, there are four. Please refer to the CUSMA agreement (Article 4.2) and contact our ARGO Customs team for further information and details regarding this or any other question.

• Do I need TPL Certificates of Eligibility?

As it stands now, there are no changes to TPL Certificates of Eligibility on imports. Please keep in mind that they are needed for goods from Mexico.

• Can I leave the importer information on certification of origin empty?

No, you cannot leave the importer information unfilled. If the importer is not known, under data element 5 you can use “unknown.” When there are a large number of importers (blanked certificate) you can let them know to see the included list – this was also the case for NAFTA.

For non-residents importers (NRI), you can provide the full name of the importer, the Canadian address of where the goods are going/importing to, along with a phone number and email address.

• For goods billed at the most-favored-nation (MFN) rate, but actually originate under the CUSMA, can there be a refund?

If it is later found that the goods indeed originated under the CUSMA, yes, a refund will be given. You can file under Section 74(c)(ii) of the Customs Act in situations like these.

You must file the claim within four years from the exact date of accounting.

• Will there be an update to D11-4-32 Application of the De Minimis Provision to Textile and Apparel Goods under the North American Free Trade Agreement (NAFTA) by the CBSA?

No, the Canadian Border Services Agency will not be changing this. You can attain further information about this by referencing the CUSMA Rules of Origin Uniform Regulations.

ARGO Customs Brokers

At ARGO Customs, we can help simplify your Canadian Customs clearance process by utilizing our cutting-edge customs software, along with our vast experience in dealing with importing and exporting goods. Our team can provide the customs assistance and clearance solutions you need to streamline your shipments, avoid delays, issues, and the possibility of fines and unnecessary tariffs.

To learn more about CUSMA and Canadian importing and exporting, please contact our brokers at ARGO Customs today.

 

May 21, 2020 – Toronto, ON – A recent regulation change from the Canadian Border Services Agency (CBSA) reduced or eliminated duties on a wide range of medical products – however, to take advantage of these benefits, an importer must be properly licensed to import medical supplies.  The experts at ARGO Customs want to help importers understand the regulations, and how to qualify as a medical device importer.

The CBSA has four classifications for medical products and devices, from Class I to Class IV.  The class indicates the potential danger or hazards associated with the product.  For example, a basic oral thermometer is Class I, while a pacemaker is Class IV.  Devices from Class II, III, and IV must be licensed, while Class I product importation is less restricted.

To import Class I medical supplies, an importer must only have a Medical Device Establishment License (MDEL), which guarantees they have reliable sources and products.  For devices in Classes II – IV, a stricter Medical Device License (MDL) is required.  Application for these licenses can require substantial paperwork and proof of safety.

There are also several exemptions to the Class I MDEL licensing requirements on importation including:

• Devices imported by individuals for their own personal use
• Supplies imported directly by registered health care facilities
• Operators of registered dispensaries which provide medical goods to the public
• Anyone importing medical supplies or devices intended only for animals
• Warehouses which only store devices, without selling or trading them

Having the proper licensing is imperative for a company’s products to be successfully imported, otherwise, they may be held at the border indefinitely or even ejected from the company.  ARGO Customs suggests that importers partner with an experienced customs broker to simplify the process.

About ARGO Customs

ARGO Customs employs highly experienced global trade specialists to help ease the flow of goods into and out of Canada.  Regardless of the size of the shipment or the companies involved, ARGO will work tirelessly to reduce regulatory difficulties and see the shipment delivered in a minimal timeframe.

For more information or press inquiries, please contact 1 (888) 311-8303 or visit  https://argocustoms.com/.

 

February 25, 2020 – Toronto, ON – Import/Export specialists at ARGO Customs want exporters to know about changes to how the Canadian Export Reporting System (CERS) handles Proof-of-Report requirements.  These changes, while subtle, must be adhered to for exports to successfully leave Canadian ports.

Exporters and shippers utilizing the CERS system to expedite export processing are required to include a Proof-of-Report number, which indicates the export has been reported to the Canada Border Services Agency (CBSA).  However, an error was found in how various electronic systems process these numbers.  Previously, it was possible to utilize the Canadian Automated Export Declaration (CAED) system to generate a Proof-of-Report number, even without actual CBSA reporting.  These changes plug this hole in the reporting process.

This came about due to some carriers requiring a Proof-of-Report number to generate a Cargo Control Number (CCN).  Now, exporters can obtain a “Unique Carrier-Assigned Code” in lieu of a CCN, so that Proof-of-Report numbers are not assigned before the export is officially reported to the CBSA.

This new Unique Carrier-Assigned Code has a specific format, allowing the carrier or warehouse operator to present the goods for inspection if so demanded.  The code must be 21 characters or less, and follow this format:

Unique Carrier-Assigned Code = [identifier] + [date of exit] + [shipment #]

The identifier is left up to the exporter or carrier but is strongly recommended to be relevant identifying information such as the container number or railcar number where the goods are stored.

These changes to export reporting are complicated, and impact exporters in a variety of situations.  ARGO Customs suggests exporters contact an experienced import/export broker to ensure full compliance.

About ARGO Customs

ARGO Customs specializes in streamlining the import/export process surrounding Canadian customs.  Their staff contains experts in global trade, with an emphasis on helping shippers fully utilize recent electronic systems to speed their orders through.  ARGO reduces troubles with shipments and improves shipping timeframes.

For more information or press inquiries, please contact 1-888-311-8303 or visit https://argocustoms.com/.

February 19, 2020 – Toronto, ON – The import experts at ARGO Customs want importers to be aware that importing textiles into Canada from the EU may be more complicated than it seems.  Despite the general perception that EU textiles can be imported duty-free, there is more to the process, and importers may want to refer to experts to ensure their products are not taxed.

Originally passed in 2016, the EU-Canada Comprehensive Economic and Trade Agreement (CETA) is a wide-ranging free trade agreement between Canada and the European Union.  All in all, it removed roughly 98% of tariffs between the two economic blocs, including an elimination of tariffs on all textiles and clothing which have been manufactured in the EU and shipped directly to Canada.

This is important to textile importers because otherwise, tariffs can be as high as 18%.

However, there are several significant caveats and procedures which must be followed, for an importer to successfully take advantage of these free-trade agreements.

1. EU Exporters must be part of REX

To gain these benefits, the European company exporting the textiles must be members of the Registered Exporters (REX) system and include their REX number in the paperwork.  This applies to all consignments with a value of EUR 6,000 or more.

2. Products must originate in the EU

Any eligible product must fully originate in the EU, rather than being imported from a different country, per the Protocol on Rules of Origin and Origin Procedures.  Proof of origin may be required.

3. Certain products must still have a permit

Not all clothing and textiles can be imported in unlimited quantities.  There are still quotas and safeguards on flooding and oversight of certain other textile-related products.  These rules can be subtle and are best interpreted by professionals to ensure the importation is successful.

ARGO Customs suggests that all aspiring Canadian importers take time to consult with Canadian importation experts to ensure full compliance.

About ARGO Customs

ARGO Customs specializes in making it as easy as possible to import products into Canada, with a focus on fast and friendly service.  The fully licensed and highly experienced customs agents at ARGO have broad familiarity with imported products and the rules governing them, backed up by state-of-the-art software systems to ensure full regulatory compliance.

For more information or press inquiries, please contact 1 (888) 311-8303 or visit https://argocustoms.com/.

So, if you’re just importing some goods into Canada purely for personal or non-commercial use, you don’t need to worry about commercial import regulations, right?  Not necessarily.  Significant changes are coming to how the Single Window Initiative (SWI) processes non-commercial goods.  In some cases, importers may still need to adhere to commercial regulations, particularly if the goods are regulated by a Participating Government Agency (PGA).

In such cases, you may still want to consider using the services of a Customs Broker to ensure that these non-commercial imports enter the country smoothly.

SWI And Non-Commercial Goods

The Single Window Initiative was a major overhaul of Canadian importation regulations and procedures, first implemented in 2017.  The basic purpose was to create a single point for advanced reporting of import information, making it easier for the Canadian government to keep close tabs on what’s coming into the country.  Likewise, it allows for more robust data-gathering and analysis, a necessity in the modern global economy.

Originally, this system was not intended to handle non-commercial imports, but fast-changing economic matters have necessitated its expansion.  This has resulted in a period where some “workarounds” will be utilized to allow for tracking of these goods before a more permanent solution is implemented.

These changes are and will be, focused on goods which are regulated by PGAs within Canada.  Examples would include plants, seeds, fertilizer, or livestock.  In other words, goods which are potentially dangerous or require oversight above and beyond typical importations.

In the end, allowing these regulated but non-commercial goods to go through the SWI system will result in smoother importations, while still preserving the information-gathering mission of the SWI program.  In the meantime, it will potentially create new bureaucratic hazards among importers of certain closely regulated and monitored goods.

ARGO Customs Can Help You Navigate Canadian Customs

Canada has been expanding and updating its importation tracking and regulation at a breakneck pace in recent years, and that can cause problems for anyone bringing goods into Canada – even non-commercial importers.  That’s where ARGO Customs comes in.

We’re a group of highly trained and experienced global trade experts.  Our business is to know Canada’s importation procedures inside and out, allowing our customers smooth and easy access to Canada.  Whether your goods are intended for market, or for non-commercial use, we will work with you to ensure your shipment goes through!

Please contact us to discuss your importation needs.