CBSA Signs Mutual Recognition Agreement with the European Union

Argo Customs Brokers is dedicated to maintaining clear communication with their customers and those who wish to keep themselves informed about important importing and exporting regulations. As such, we present pertinent points from a news release issued by the Canada Border Services Agency.

The news release titled CBSA signs Mutual Recognition Agreement with the European Union to enhance supply chain security and facilitate trade was published on October 28, 2022, by Canada Border Services Agency.

Strong partnerships between customs organisations and businesses enhance the security and integrity of our global supply chain.

Today, the Canada Border Services Agency (CBSA) announced the signing of a Mutual Recognition Agreement with the European Union’s (EU) Taxation and Customs Union (TAXUD) to honour each other’s Trusted Trader programs. The signing took place during a Canada-EU Joint Customs Cooperation Committee meeting in Brussels, Belgium.

This agreement will contribute to increasing the security of the international supply chain, facilitating trade at the border, and strengthening the economic competitiveness of Canadians doing business with the EU.

Members of Canada’s Trusted Trader program, Partners in Protection (PIP), will have their goods treated as low risk and cleared by EU Customs faster, ultimately saving time and money at the border. The CBSA will do the same for members of the EU’s Trusted Trader program, which is referred to as their Authorized Economic Operator program. This will also allow the CBSA to focus its resources on areas of higher or unknown risk and protect Canadians by preventing contraband from entering the country.

The CBSA establishes mutual recognition with customs organisations around the world so countries can recognize each other’s program members as low risk and honour similar benefits. It signifies that countries apply similar security standards and validation processes when approving program applicants. The key goal of mutual recognition is to strengthen trust and security in the supply chain to prevent criminal activity, such as cargo theft, pilferage, and smuggling contraband. Mutual recognition also contributes to trade by streamlining processing at the border for certified trusted traders.

 

Border management is a shared international responsibility. Threats and opportunities arising from global migration and trade are dealt with most effectively by working together. Expanding the international network of accredited low-risk companies allows customs administrations to focus on targeting shipments of higher or unknown risk.

“The Canada Border Services Agency is pleased to have signed a Mutual Recognition Agreement with the European Union, Canada’s second-largest trading partner. This agreement will enhance international supply chain security, facilitate trade between Canada and Europe, and strengthen the economic competitiveness of Canadian businesses.” –Erin O’Gorman, President, Canada Border Services Agency

Key Takeaways

  • The EU is one of the largest economies in the world and Canada’s second-largest trading partner after the United States.
  • The EU is a large, dynamic market of 450 million consumers that offers tremendous opportunities for Canadian businesses in a wide range of sectors.
  • The Canada-EU Comprehensive and Economic Trade Agreement has significantly expanded commercial opportunities between the parties.
  • In addition to this agreement with the EU, the CBSA has established mutual recognition with the customs administrations of Australia, Hong Kong, Israel, Japan, Mexico, New Zealand, Peru, Singapore, South Korea and the United States.

Associated Links

Argo Customs Brokers is Available to Assist

If you are an individual or represent a company that is involved with EU importing/exporting, be sure to read the above notification by the Canada Border Services Agency and the associated links regarding the agreement thoroughly. The team at Argo Customs Brokers is always available to answer questions about importing and exporting and can help you understand the effect that this agreement can have on your plans. All inquiries are welcome.

Excise Duty Notice EDN80 – Vaping Products

The Government of Canada has introduced an excise duty (vaping duty) on vaping products through a new excise duty framework. The vaping duty and the vaping excise stamps apply to vaping substances that are manufactured in Canada or imported, and that are intended for use in a vaping device in Canada. The excise duty framework for vaping products came into effect on October 1, 2022.

Vaping duty means a duty imposed under section 158.57 of the Excise Act, 2001.

Vaping excise stamp means a stamp that is issued by the Minister of National Revenue under subsection 158.36(1) of the Excise Act, 2001, and that has not been cancelled under section 158.4 of that Act.

Vaping product means:

a) a vaping substance that is not contained within a vaping device; or

b) a vaping device that contains a vaping substance.

It does not include a cannabis product or a tobacco product.

The purpose of this notice is to provide information on excise stamps for vaping product licensees that intend to package vaping products in Canada or import packaged vaping products intended for the duty-paid market, as well as for vaping prescribed persons that import packaged vaping products into the duty-paid market. It also provides information on the transitional provisions that relate to the vaping stamping regime.

Excise Warehouse Licence

A vaping product licensee who manufactures and imports vaping products in Canada for export or for sale to an accredited representative, also requires an excise warehouse licence. Under the Excise Act, 2001, vaping products manufactured or imported in Canada that are packaged but not stamped, must be immediately entered into the licensee’s excise warehouse.

Vaping Product Licence – Exceptions

A person does not have to apply for a vaping product licence under the Excise Act, 2001 if they

  • are not manufacturing vaping products in Canada
  • are importing vaping products only for their personal use in quantities that to not exceed the prescribed limit of 5 units, as per section 5.1 of the Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations
  • are only importing stamped packaged vaping products into Canada (i.e., they do not manufacture vaping products in Canada). In such a case, the person must apply to the CRA to be a vaping prescribed person.

Key Takeaways

  • Application of Customs Act

New section 158.59 of the Act provides that the duties on imported vaping products imposed under new sections 158.57 and 158.58 of the Act must be paid and collected under the Customs Act as if they were duties levied under the Customs Tariff.

  • Duty on vaping products taken for use

New subsection 158.6(1) of the Act provides that if vaping products are taken for use (see commentary for the definition “take for use”) then a duty is imposed in the amount determined in respect of the vaping product under new Schedule 8 to the Act. If the vaping products that are taken for use are packaged, they are also relieved of the duty imposed under new section 158.57 of the Act.

Helpful Links

Overview of Vaping Excise Stamps

A person may apply to be registered for the vaping stamping regime at the same time they apply for a vaping product licence or vaping prescribed person registration under the Act by completing Form L601, Registration for the Vaping Stamping Regime.

For more information on obtaining a vaping product licence, refer to Excise Duty Notice EDN79, Obtaining and Renewing a Vaping Product Licence.

For more information on applying to become a vaping prescribed person, refer to Excise Duty Notice EDN81, Becoming a Vaping Prescribed Person.

Importing commercial goods by courier (CLVS program)

The Canada Border Services Agency’s (CBSA) measures regarding Importing goods through the Courier Low Value Shipment (CLVS) Program continue to be in force. Argo Customs Brokers continues to participate in the program to assist its customers.

Secure Customs Brokerage accounts with UPS, DHL and FedEx are maintained. When customers are shipping with them, all documents are prepared electronically via a special Customs Broker’s connection on a secure site.

The Canada Border Services Agency (CBSA) is a federal agency that facilitates the flow of legitimate travellers and trade. The agency also enforces more than 100 acts and regulations that keep Canada and Canadians safe.

Shipments Eligible Through CLVS Program

Specific restrictions apply to all shipments imported through the Courier Low Value Shipment (CLVS) program whether for commercial or personal use.

Your shipment may be part of the CBSA’s CLVS Program if:

  • The entire shipment is valued at are worth Can$3,300 or less;
  • The company handling the shipment currently participates in the CLVS Program; and
  • The goods are not regulated, controlled or prohibited.

source: CBSA, 2020

 Key Takeaways

  • The exporter provides the courier with the value, country of origin, and a detailed description of the goods.
  • Only eligible shipments are processed through the Courier Low Value Shipment (CLVS) Program.
  • The CBSA reviews each shipment and may choose to examine the shipment to confirm eligibility of the goods to enter Canada.
  • Once the CBSA is satisfied that the shipment complies with all import regulations, it is released to the courier for delivery.

Helpful Links

Importing goods through the Courier Low Value Shipment (CLVS) Program

Note that only a licensed customs broker may account for goods and pay duties under section 32 of the Customs Act as the agent of the owner or importer of the goods.

For further details on what goods are considered regulated, controlled or prohibited please refer to departmental memoranda: D9 – Prohibited Importations and D19 – Acts and Regulations of Other Government Departments.

Canada Border Services Agency and U.S. Department of Commerce renew focus on keeping sensitive technologies and goods out of Russian hands

The U.S. Department of Commerce, Bureau of Industry and Security and the Canada Border Services Agency (CBSA) play an important role in the coordinated response to Russian aggression in Ukraine.

Through stringent enforcement measures, we are restricting Russia’s access to technologies and other goods Russia needs to sustain its aggressive military capabilities.

The CBSA facilitates the flow of legitimate travellers and trade, and also enforces more than 100 acts and regulations that keep Canada and Canadians safe. Bureau of Industry and Security’s mission is to advance U.S. national security, foreign policy, and economic objectives by ensuring an effective export control and treaty compliance system and promoting continued U.S. strategic technology leadership.

CBSA enforce a wide array of measures, including sanctions and export controls, that are used to prevent sensitive goods and technologies from reaching illicit procurement networks, where they could be used to produce weapons of mass destruction or conventional weapons. Our enforcement efforts allow us to identify and stop state and non-state actors that engage in potentially illicit activity, carry out seizures, enforce monetary penalties and criminally investigate those who violate the rules and regulations.

Today, both Agencies are strengthening our U.S.-Canada enforcement relationship through a joint commitment to leverage our authorities and resources to detect, deter, and stop violations of export controls and to ensure compliance with laws and regulations. Together, we will share information; conduct pre- and post-shipment verifications and audits; inspect, detain, and seize shipments; and reduce threats through coordinated enforcement actions and investigations.

Quick facts

The CBSA helps ensure that exporters comply with national policies, processes, procedures, regulations and legislation related to exporting commercial goods.

Bureau of Industry and Security advances U.S. national security, foreign policy, and economic objectives by ensuring an effective export control and treaty compliance system, and by promoting continued U.S. leadership in strategic technologies.

Export controls are restrictions applied by governments as a means to regulate, and sometimes deny, trade in specific goods and technologies.

Through legislation tabled in May 2022, the Government of Canada will strengthen sanctions by banning sanctioned Russians from entering Canada.

Canada Border Services Agency and U.S. Department of Commerce renew focus on keeping sensitive technologies and goods out of Russian hands

OTTAWA, ONTARIO/WASHINGTON, D.C

The U.S. Department of Commerce, Bureau of Industry and Security and the Canada Border Services Agency (CBSA) play an important role in the coordinated response to Russian aggression in Ukraine.

Through stringent enforcement measures, we are restricting Russia’s access to technologies and other goods Russia needs to sustain its aggressive military capabilities.

The CBSA facilitates the flow of legitimate travellers and trade, and also enforces more than 100 acts and regulations that keep Canada and Canadians safe. Bureau of Industry and Security’s mission is to advance U.S. national security, foreign policy, and economic objectives by ensuring an effective export control and treaty compliance system and promoting continued U.S. strategic technology leadership.

We enforce a wide array of measures, including sanctions and export controls, that are used to prevent sensitive goods and technologies from reaching illicit procurement networks, where they could be used to produce weapons of mass destruction or conventional weapons. Our enforcement efforts allow us to identify and stop state and non-state actors that engage in potentially illicit activity, carry out seizures, enforce monetary penalties and criminally investigate those who violate the rules and regulations.

Today, we are strengthening our U.S.-Canada enforcement relationship through a joint commitment to leverage our authorities and resources to detect, deter, and stop violations of export controls and to ensure compliance with laws and regulations. Together, we will share information; conduct pre- and post-shipment verifications and audits; inspect, detain, and seize shipments; and reduce threats through coordinated enforcement actions and investigations.

Registration under the Select Luxury Items Tax Act is open on Canada.ca / Inscription en vertu de la Loi sur l’impôt sur certains biens de luxe maintenant ouverte sur Canada.ca

The Government of Canada is following through on its commitment to introduce a luxury tax on certain vehicles and aircraft priced over $100,000 and certain vessels priced over $250,000 to ensure that those Canadians who can afford to buy luxury items are contributing a little more. This tax will come into effect on September 1, 2022.

The tax will apply to deliveries in Canada by way of sale or similar arrangements, as well as importations into Canada. A vehicle, aircraft or vessel would fall within the scope of the luxury tax regime if it meets the definition of subject vehicle, subject aircraft or subject vessel as set out in the Select Luxury Items Tax Act. These three items are broadly referred to as subject items.

If you are a manufacturer, wholesaler, retailer, or importer of any of these subject items in the course of your business, you are required to register under the Select Luxury Items Tax Act with the Canada Revenue Agency (CRA) and file a quarterly Luxury Tax and Information Return.

Registration may be completed by visiting Canada.ca. We invite you to register ahead of time to ensure you are prepared when the Luxury Tax program begins on September 1, 2022. Registering ahead of time ensures that you can obtain and hold tax-free inventory of vehicles, aircraft or vessels you are registering for. Any incorrect or incomplete information could delay the processing of your application.

For more information and to register under the Select Luxury Items Tax Act, you can visit Canada.ca/luxury-tax.

Additional links

Inscription en vertu de la Loi sur l’impôt sur certains biens de luxe maintenant ouverte sur Canada.ca

Le gouvernement du Canada respecte son engagement de créer une taxe de luxe sur certains véhicules et aéronefs de plus de 100 000 $ et certains navires de plus de 250 000 $ pour s’assurer que les Canadiens qui peuvent se permettre d’acheter des biens de luxe contribuent un peu plus. Cette taxe entrera en vigueur le 1er septembre 2022.

La taxe s’appliquera aux livraisons effectuées au Canada par vente ou accord semblable, ainsi qu’aux importations au Canada. Un véhicule, un aéronef ou un navire sera visé par le régime de la taxe de luxe s’il répond à la définition de véhicule assujetti, d’aéronef assujetti ou de navire assujetti, comme prévu par la Loi sur l’impôt sur certains biens de luxe. Ces trois biens sont généralement appelés des biens assujettis.

Si vous êtes un fabricant, un grossiste, un détaillant ou un importateur de l’un de ces biens dans le cadre de vos activités, vous devez vous inscrire auprès de l’Agence en vertu de la Loi sur la taxe sur certains articles de luxe. Vous devrez aussi remplir et envoyer chaque trimestre une déclaration de renseignements de la taxe de luxe.

Vous pouvez vous inscrire sur le site Web Canada.ca. Vous devriez vous inscrire à l’avance afin d’être prêt lorsque la Loi sur la taxe sur certains biens de luxe entrera en vigueur le 1er septembre 2022. Vous pourrez ainsi obtenir un inventaire libre d’impôt de véhicules, d’aéronefs ou de navires pour lesquels vous vous inscrivez. Tout renseignement inexact ou incomplet pourrait retarder le traitement de votre demande.

Pour obtenir plus de renseignements et pour vous inscrire en vertu de la Loi sur l’impôt sur certains biens de luxe, allez à canada.ca/taxe-luxe.

Liens supplémentaires

The removal of U.S. safeguard tariffs on Canadian solar products on July 7th, 2022

On July 7, 2022 The agreement reached with the United States to remove the U.S. safeguard tariffs on solar products from Canada. This agreement follows Canada’s victory at a CUSMA dispute panel earlier this year, which found that the United States’ tariffs were in violation of CUSMA.”

“This agreement will bring stability and predictability to our renewable energy sector and strengthen North American competitiveness. It is a clear recognition of Canada’s place as a leader in the fight against climate change, and that Canadian producers of solar technology will continue to supply global markets at an increasing rate. This agreement is only possible due to the strong dispute settlement mechanism that Canada successfully negotiated and protected within CUSMA. It reaffirms the importance of upholding rules based trade both here in North America, and around the world.”

Quick facts:

  • – Since the imposition of the U.S. safeguard tariffs in early 2018, exports of solar products from Canada to the United States have declined by as much as 82%.
  • – Canada held consultations with the United States under chapter 31 of CUSMA on January 28, 2021, and Canada requested a dispute settlement panel on June 18, 2021. The panel’s final report was issued to the parties on February 1, 2022.
  • – Public versions of all of Canada’s submissions in this dispute are available on the Trade Agreements Secretariat electronic filing system. Please note that registration is required to access the system.

Importing Food into Canada with a Safe Food for Canadians Licence

[March 9, 2021 – Toronto, CA] – Recently, Canada’s importing and exporting oversight agencies announced that as of March 15, 2021, all food import transactions will be rejected unless they have a valid Safe Food for Canadians (SFC) licence that can be entered into their Integrated Import Declaration (IID).

If a transaction is stopped or rejected, the food importer may experience delays and have all of their shipment held at the border until the proper SFC licensing issues are addressed and an accurate IID form is resubmitted.

It’s important for those importing food into Canada to have already obtained their SFC licence to import prior to presenting their shipment at the Canadian border. This is because importers will be unable to obtain the proper licence at the border.

Those that currently hold a licence should review their profile to ensure that it has been issued for “importing” and that the commodities you intend to import are mentioned on the licence.

For those that don’t currently hold an SFC licence, it’s important to note that the application for a new licence or any request to amend a current licence could take up to 15 business days or longer.

To apply for a Safe Food for Canadians licence, importers need to create an account in My CFIA, and determine their licence structure before applying. There is no limit to the number of SFC licences one can hold; importers can operate on a single licence or multiple ones to suit their needs.

More information about importing food into Canada with a Safe Food for Canadians licence can be found here.

More About Argo Customs

The team from Argo Customs are procedural experts with all of the governmental agencies involved in exporting and importing goods in and out of Canada. Their specialists can provide customs clearance assistance and exchange shipments with any country on any form of transportation, saving you a great deal of time, trouble, and resources.

Learn more about Argo Customs by contacting 1 (888) 311-8303 or set-up an online account today!

Canada Border Services Agency Investigating Alleged Injurious Dumping of Upholstered Domestic Seating

The Canada Border Services Agency (CBSA) began investigating imports originating from China and Vietnam for illegal dumping of upholstered domestic seating. It is believed that these products are originating from China and Vietnam. The CBSA received the complaint on October 16, 2020, from Palliser Furniture, Ltd., a company based out of Winnipeg. Palliser and several other companies joined in the complaint alleging the import of these goods are them material harms in the form of lost profits and market share, reduced capacity, price depression, and low prices.

The CBSA started its investigation on December 21, 2020. The CBSA will determine whether the goods are being sold at subsidized or unfair prices and will issue a preliminary decision on March 22, 2021. Concurrently, the Canadian International Trade Tribunal (CITT) will conduct a parallel investigation to determine if the imports are harming domestic producers. The CITT will issue its decision on February 19, 2021.

The goods subject to the investigation are upholstered seating under the following tariff classifications:

  • 9401.40.00.00
  • 9401.61.10.10
  • 9401.61.10.90
  • 9401.71.10.10
  • 9401.71.10.90

Upholstered means leather, pleather, and other fabric covers that are used with pads and springs to provide a soft covering for a seat frame. The covering can be permanent or semi-permanent (i.e., sewed or attached with Velcro). The definition also includes removable cushions. The types of seating include various types of chairs.

Illegal dumping refers to goods being imported at artificially low prices to either (1) undermine a domestic competitor or (2) to dump a large stock of a particular good. Illegal dumping can significantly harm domestic industries. Illegal dumping is a problem because certain countries, like Vietnam and China, specialize their industries in providing consumer and industrial goods at a larger scale than their Canadian counterparts and can use their lower labor and operating costs to outcompete domestic companies. The World Trade Organization, regional trade groups, and bilateral trade agreements restrict illegal dumping.

Contact ARGO Customs foo Canadian Importing & Exporting

ARGO Customs provides import and exporting solutions and services for personal and commercial shipments. To learn more, visit https://argocustoms.com/ or call 1 (888) 311-8303 today.

Canadian Export Experts Argo Customs Now Support the CERS Declaration System

December 15, 2020 – Toronto, On – The new Canadian Export Reporting System (CERS) is now online, and the experts at Argo Customs are ready to help shippers adopt this new system.  CERS is a free web-based self-service portal that is designed to speed up export declarations.  Features such as universal accessibility from any browser and the ability to make bulk declarations can help streamline shipments – and ARGO Customs has the expertise to make it easy.

This is the basic process:

  1. All exporters must have a business number issued by the Canada Revenue Agency.
  2. Exporters must identify all goods being exported, and vouch that they are also legally admissible at the country of final destination
  3. If the goods are in some way controlled, regulated, or prohibited, a permit may be required.  Argo Customs may be able to help in securing required documentation.
  4. The export declaration must include the appropriate export code for the goods.  This can be determined manually via the Canadian Customs Calculator, or Argo Customs can assist in the determination.
  5. The method of shipment (air, rail, highway, etc.) must be reported, along with an expected timeframe for the shipment.
  6. With these pieces of information, Argo Customs can then complete and submit the declaration.   In some situations, declarations may not be necessary – Argo can assist in determining these situations and ensuring proper labeling.
  7. Argo Customs can directly utilize CERS to finish the declaration on your behalf, making it easier than ever to complete shipments.

ARGO Customs is excited to be able to bring this new service to its customers. CERS will make exports faster and more reliable, as well as gathering vital data to help the Canada Border Services Agency provide better service in the future.  Any Canadian exporters are advised to contact a broker like Argo Customs for assistance in setting up their shipments.

About ARGO Customs

ARGO Customs employs exports in global imports and exports to provide the smoothest possible experience when moving goods in and out of Canada.  They can handle even complicated shipping situations while minimizing any bureaucratic problems and avoiding costly violations.  Argo Customs saves shippers time and money whenever moving goods across the Canadian border.

For more information or press inquiries, please contact 1 (888) 311-8303.