Customs and International Agreements
Matrix College
Canada Border Services Agency (CBSA)
[Link]
Canada Border Services Agency (CBSA)
[Link]
An Overview of the Import Process
The following flowchart shows the basic steps and documents
Involved in a typical Import transportation.
1. The Purchase : 2. Purchase Order :
Locate International supplier. The buyer will issue
Negotiate transaction and payment Purchase Order for the
terms (Letter of Credit or other terms). Seller.
Set Contract Payment terms/ Incoterms.
Canada Border Services Agency (CBSA)
[Link]
An Overview of the Import Process
The following flowchart shows the basic steps and documents
Involved in a typical Import transportation.
3. Packing List : 4. Transportation:
The Seller prepares order The buyer and Seller, depending on
and Issues the Packing List. Incoterms, Arrange for transport of goods.
5. Commercial Invoice: 6. Waybill(S):
Seller creates Commercial Invoice. Carrier(s) issues the transportation Waybill(s) as
Prepares Export documents required carriage contract of goods; Bill of Lading (B/L),
by originating country. Airway bill (AWB), Road (CMR), Rail (CIM)
Canada Border Services Agency (CBSA)
[Link]
An Overview of the Import Process
The following flowchart shows the basic steps and documents
Involved in a typical Import transportation.
8. Documentation ;
Documents presented to customs.
Commercial Invoice (Canada Customs Invoice)
7. Customs Clearance :
Packing List
Arrange customs clearance.
Buyer / Seller responsibility Copy of carrier waybill.
per Incoterms. Certificate of Origin (if Required)
Insurance Certificate
Inspection Report
Import Permits (if required).
Canada Border Services Agency (CBSA)
[Link]
An Overview of the Import Process
The following flowchart shows the basic steps and documents
Involved in a typical Import transportation.
9. Customs Clearance ; 10. Goods Received ;
B3 Customs Coding Form Receiving Report
Presented for final accounting Inventory Report
/payment of duties and taxes. Payments Issued
NOTE: All Records Related to the Import Transaction Retained For
6 YEARS.
Canada Border Services Agency (CBSA)
[Link]
Canada Border Services Agency (CBSA)
[Link]
An Overview of the Export Process
The following flowchart shows the basic steps and documents
Involved in a typical Export transportation.
1. The Purchase : 2. Purchase Order :
International Buyer orders the goods. The buyer will issue
Negotiate transaction and payment Purchase Order for the
terms (Letter of Credit or other terms). Seller.
Set Contract Payment terms/ Incoterms.
Canada Border Services Agency (CBSA)
[Link]
An Overview of the Export Process
The following flowchart shows the basic steps and documents
Involved in a typical Export transportation.
3. Preparation of International 4. Transportation:
Order : The buyer and Seller,
Packing List depending on Incoterms,
Commercial Invoice Arrange for transport of goods.
Canada Border Services Agency (CBSA)
[Link]
An Overview of the Export Process
The following flowchart shows the basic steps and documents
Involved in a typical Export transportation.
5. Export Documents
Export Declaration B13a 6. Waybill(S):
Commercial Invoice Carrier(s) issues the transportation Waybill(s) as
carriage contract of goods; Bill of Lading (B/L),
Certificate of Origin
Airway bill (AWB), Road (CMR), Rail (CIM)
Permits (If Required)
Canada Border Services Agency (CBSA)
[Link]
An Overview of the Export Process
The following flowchart shows the basic steps and documents
Involved in a typical Export transportation.
9. Documentation ;
Documents for Foreign customs;
Commercial Invoice
7. Notify Customs 8. Monitor Shipment Packing List
Notify Canada Customs Track, monitor shipment Carrier waybill.
within timeframe. deliver to destination. Certificate of Origin (if required)
Insurance Certificate
Inspection Report
Export Permits (if required).
Canada Border Services Agency (CBSA)
[Link]
An Overview of the Export Process
The following flowchart shows the basic steps and documents
Involved in a typical Export transportation.
11. Goods Received ;
10. Customs Clearance ;
Proof of Delivery
Final accounting and payment
Payments Issues
of duties and taxes.
NOTE: All Records Related to the Export Transaction Retained For
6 YEARS.
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
International commercial shipments require standardized
documentation to reflect the commercial transaction and
transportation terms for goods moving internationally.
Commercial Cargo moving to and from Canada is therefore
accompanied by some, if not all of the following documents;
Bills of Lading
Commercial Invoice (Canada Customs Invoice for import Goods)
Packing List
Certificate of Origin
Export/Import Permits, if required
Other forms, as required
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Bill of Lading
A ‘‘Bill of lading’’ is a contract between the shipper and the
carrier.
It is Straight or Negociable;
Straight: is non-negociable – for goods assigned to a specific
person or company.
Negociable: goods have not yet been sold – they may be bought,
sold, traded in transit.
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Bill of Lading
Four types:
1. Inland bill of lading: used for goods shipped over land
2. Through bill of lading: single bill of lading that covers both the
domestic and international transport of goods
3. Air waybill: covers both domestic and international flights that
transport goods
4. Ocean bill of lading: Can be used as a receipt for cargo or a
contract for transportation (straight or non-negociable).
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Bill of Lading
Ocean bill of lading:
a) Bill of lading (BOL) issued
b) Bank issues a Letter of Credit (LC) by request of importer in favor of exporter
c) Importer pays for LC to obtain the BOL
d) Original BOL given to the steamship line
e) Steamship line advises terminal operator (Port of MTL) that goods are
steamship released – after the charges paid & BOL surrendered
f) Goods released by customs
g) Goods arrive at port of destination with original BOL presented to the owner
(purchaser) of the goods
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Bill of Lading
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Commercial Invoice (Canada Customs Invoice for import Goods)
The commercial invoice (CI) generally serves a dual purpose;
1) It enables exporters to collect monies owed
2) Assists importers in customs clearing the goods
The CI can be met by providing either one of the following options;
A CI indicates the buyer and seller of the goods, the price paid
or payable for the goods and an accurate description of goods,
including quantity.
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Commercial Invoice (Canada Customs Invoice for import Goods)
For imported goods entering Canada, a Canada Customs
Invoice (CCI, D1-4-1), form CI1, containing the balance of
information required.
What is Canada Customs Invoice (CCI)?
If the CI is neither in English nor French or is not complete, the CBSA
will request for CCI. The guideline is Memorandum D1-4-1.
Accuracy in the Commercial Invoice is extremely important as
mistakes may lead to fines, excess duties, or penalties being
against the shipment.
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Commercial Invoice (Canada Customs Invoice for import Goods)
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Packing List (PL)
The packing list is a detailed listing of the contents of the shipment
and acts as a supporting documents.
The packing list may provide a means of quickly identifying
merchandise required for customs inspection, give a means of
determining description, accurate weights (Gross and Net),
measurements, Unit, quantity, and give a means for inspector to
unpack quickly to check a piece count of the contents.
As a supporting document, the packing list is essential in the event
of damage, to support an insurance claim.
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Packing List (PL)
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Certificate of Origin
Imported Goods
Although it is not necessary to present the Certificate of Origin with
either the interim of final accounting documents, the importer must
be able to provide a copy of the Certificate to customs upon
request.
Failure to provide a Certificate of Origin will result in re-
determination of origin, and in most cases, a request by Customs
for any applicable duties and taxes.
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Certificate of Origin
Exported Goods
Certificate of Origin are completed when required by the
regulations governing the country of import.
Responsibility of exporter to provide the certificate
Does not have to be presented to CBSA except when requested,
must be in importer’s possession.
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Certificate of Origin
Exported Goods
NAFTA /USMCA
The North American Free Trade Agreement (NAFTA) states
clearly that a NAFTA certificate of Origin is a required
documents for goods destined for NAFTA countries, namely,
Canada, Mexico and the U.S.A in order for such goods to
qualify for NAFTA rates of duty and tax.
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Certificate of Origin
Exported Goods
Non-NAFTA/USMCA
For shipments destined for non-NAFTA countries, a Certificate
of Origin signed and stamped by the local Board of Trade
and/or the Consulate of Embassy of the country of import
may also be a requirement.
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Certificate of Origin
Required for imports from countries entitled to reduced duty
under General Preferential Tariff (GPT).
Must be submitted:
Time of release
Time of accounting
When filling a refund request
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Certificate of Origin
List of Countries and Applicable Tariff Treatments
[Link]
tarif/2018/html/[Link]
All countries on the list eligible for Most Favoured nation (MFN) tariff
treatment (ex. Afghanistan).
Those eligible for General Preferential Tariff (GPT) (ex. Algeria).
Those eligible for Least Developed Country (LDC) (ex. Angola)
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Export/Import Permits
The Department of Foreign Affairs and International Trade (DFAIT)
imposes restrictions on certain goods being imported into or
exported from Canada based on the nature of the goods or
particular country of destination or origin. These restrictions are set
out under the Export and Import Permits Act (EIPA).
Canada Customs assists in the administration and enforcement of
the EIPA on behalf of the Export and Import Permits Bureau of
Department of Foreign Affairs and International Trade Canada.
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Export/Import Permits
The Department of Foreign Affairs and International Trade (DFAIT)
imposes restrictions on certain goods being imported into or
exported from Canada based on the nature of the goods or
particular country of destination or origin. These restrictions are set
out under the Export and Import Permits Act (EIPA).
Canada Customs assists in the administration and enforcement of
the EIPA on behalf of the Export and Import Permits Bureau of
Department of Foreign Affairs and International Trade Canada.
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Export/Import Permits
Export Permit
The Export Permit is a document issued by the Special Trade
Relations Bureau of the Department of Foreign Affairs and
International Trade (DFAIT) granting an exporter permission to
export certain restricted foods, or to export any goods to certain
restricted countries of destination.
The EIPA, the Export Control List (ECL) and the Area Control List are
the mechanisms by which Canada controls exports.
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Export/Import Permits
Export Permit
The Export permit requirements for shipments entering the U.S.A are
waived for all goods included on the Export Control List except for
group 3 and 4 as well as some goods from group 5.
Additionally, crude oil is not listed as a controlled substance;
however export permits would be a requirement for crude oil, or
any product being shipped to a country on the Area Control List.
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Export/Import Permits
Group 1; Industrial Goods
This group comprises dual-purpose goods and technologies which
have both civilian and military applications.
Group 2; Munitions
The group comprises goods and technologies specially designed or
modified for military purposes.
Group 3; Atomic Energy
This group includes goods that are nuclear related.
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Export/Import Permits
Group 4; Nuclear Non-proliferation list
This group includes goods that are nuclear related as well as dual-
purpose goods and technologies which have both civilian and
military applications that could be used in the proliferation of
nuclear explosive devices.
Group 5; Miscellaneous Goods List
This group covers the goods that are controlled in order to protect
natural resources and to fulfill Canada’s commitments to non-
strategic multilateral agreements; including forest products,
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Export/Import Permits
endangered species, medical products, agriculture and food
products, US origin goods and automatic weapons.
Group 6; Missile Technology Control Regime (MTCR) list
Includes goods and technologies agreed upon by MTCR that could
be used in the proliferation of systems capable of delivering
chemical, biological weapons.
Group 7; Chemical and Biological Weapons Non-proliferation List
Any goods that could be used in the proliferation of chemical and
biological weapons.
Group 8; Chemicals for the Production of Illicit Drugs
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Export/Import Permits
Revenue Canada Export Declarations (B-13a)
The B-13a is an Export Declaration to be completed on all
shipments leaving Canada if their value exceeds $2,000.00.
Since Canada obtains information on US-bound exports directly
from US import data, exporters do not have to report goods
destined for USA, Purerto Rico, or the US virgin Islands, unless the
goods are controlled, prohibited or regulated.
However, exporters are required to file an export declaration
(B-13a) prior to export for all non-USA shipments.
Canada Border Services Agency (CBSA)
[Link]
Import and Export Documentation
Export/Import Permits
Revenue Canada Export Declarations (B-13a)
[Link]
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In terms of the timeframes required to report exports, effective Spring
2003, export declarations must be made either 48 hours or two hours
in advance, depending on the mode of transport, as follows;
1. Mail, Aircraft or Rail shipments: at least two hours before loading
2. Vessel shipments; at least 48 hours before goods are loaded
3. Any other mode, exports of animals, perishables, time-sensitive
or bulk goods; immediately prior to export.
