Week 1
Customs Process
Millie Leng, CCS (Canada & US), CBSA Professional, CSM, DTM
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Introduction
Customs Process
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Late submission of assignments is NOT accepted.
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Seneca Academic Integrity Policy
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WELCOME TO TCS
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Identify and describe the customs
system in Canada.
Explain the responsibilities of
customs brokers in Canada.
Complete basic customs
documentation and identify their
use.
Calculate and discuss the
application of duty and taxes on
imported goods.
Source: Course Outline at
[Link]
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IMPORTING COMMERCIAL GOODS INTO CANADA
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Vendor
Sale Canadian Importer
(Import Account)
Invoice
(Documentation)
Customs
Accounting
Conveyance (Transportation) Clearance
(Customs Broker)
(CBSA Release)
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Dec 12, 2003: A new agency was established
Canada Border Services Agency (CBSA)
replacing Canada Customs Revenue Agency
(CCRA)
The new agency made CBSA a part of
“Public Safety Canada”
Employees of Canada Customs and
Revenue Agency(CCRA), Citizenship &
Immigration Canada (CIC), and Canadian
Food Inspection Agency (CFIA) were also
transferred to the new agency.
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Administers tax laws for the Government of Canada.
Income Taxes, Goods and Services Tax(GST), the
Harmonized Sales Tax(HST)Canada Pension Plan, and
Unemployment Insurance
Duties & taxes collected by Canada Customs go to Canada
Revenue Agency
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Department of Public Safety and Emergency
Preparedness is Comprised of:
Royal Canadian Mounted Police (RCMP)
Canadian Security Intelligence Service (CSIS)
Correctional Service of Canada (CSC.)
National Parole Board (NPB)
Canada Firearms Centre (CAFC) Public Safety Minister in Canada:
The Honourable Bill Blair, MP
Canada Border Services Agency (CBSA)
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Manage The Physical Movement of People, Goods, and
Conveyances across the Canadian Border and frontiers
Implement Government policies
Collection of Duties and Taxes
Protection of Society: Security
Criminal
Terrorist
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Environmental Protection
Collection Of Statistical Information
Trade Compliance
Trade Facilitation
Protection of Cultural Heritage
Immigration
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When freight is imported into Canada, Canada Customs (CBSA) has certain
requirements that must be met. In order to meet these requirements importers, rely
upon a Customs Broker to interact with CBSA to ensure that all requirements are met.
These requirements include:
Informing CBSA all physical information about the goods included in the shipment.
Informing CBSA. about all financial information about the goods included in the
shipment.
Informing CBSA about the countries involved in the shipment (origin, and place of
export)
Informing CBSA about all parties involved in the shipment. (Manufacturer, Shipper,
Vendor, Carrier, Importer, Consignee)
Paying all Duties and taxes required.
• The goods in the shipment will not be allowed to enter Canada until ALL
requirements are met.
• The Customs Broker must know EVERYTHING about the goods and the shipment,
and that is what we will concentrate upon in this class.
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A customs broker is an individual, partnership, or corporation that acts as an agent to
transact business with the Canada Border Services Agency (CBSA) on behalf of the
owner or importer of goods.
Any agent may represent a client when transacting business with the CBSA, 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.
Customs broker licenses are issued under Section 9 of the Customs Act. The
requirements to obtain and hold a customs broker licence are detailed in the Customs
Brokers Licensing Regulations
Reference: D1-8-1 Licensing of Customs Brokers
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Customs Broker: “a profession that clear goods
through customs and to their destination on behalf of
importer and exporter clients. This involves the
preparation of documents and/or electronic
submissions, the calculation and payment of duties,
taxes and fees, and facilitating communication between
government authorities and importers and exporters.”
A Customs Broker can be affiliated with a carrier, a freight forwarder, or be an
importer/exporter themselves.
A Customs Broker offers other services such as Refunds, Drawback and Customs Consulting.
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Has posted security with Customs Border Service Agency
Importer signs Powers Of Attorney, giving the brokerage the right to
clear goods through customs and pay C.B.S.A. the duties and taxes on
the importers’ behalf.
Has “Account security” allowing the brokerage to clear shipments on
minimum info., and pay the duties and taxes at the end of the month.
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Is connected electronically to CBSA to clear goods , and
assess duties & taxes via: ACROSS, CADEX, RNS
ACROSS: Accelerated Customs Release Operating Support System (electronic Customs Release System)
RNS: Release Notification System (Electronic release notification)
CADEX: Customs Automated Data Exchange (Electronic B3 Transmission and confirmation)
CBSA Assessment and Revenue Management (CARM)
CARM Release 1: Launched the CARM Client Portal on May 25, 2021
CARM Release 2: October, 2023
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Is A Canadian Citizen or Permanent resident of Canada
Is of good character
Has demonstrated to CBSA they have sufficient knowledge of
the laws regarding importing and exporting
Has passed the Customs Brokers Professional Examination
Certified Customs Specialist (via CSCB)
A Customs Brokerage must have at least 1 Professional Customs
Broker on staff (“designated”)
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1. Pacific Region – Vancouver, British Columbia
2. Prairie Region – Calgary, Alberta & Winnipeg, Manitoba
3. Northern Ontario Region – Ottawa, Ontario
4. Southern Ontario Region
1) Greater Toronto Area (GTA)
2) Niagara/Fort Erie
3) Windsor/St Clair
4. Quebec Region – Montreal & Quebec City, Quebec
5. Atlantic Region – Halifax, Nova Scotia
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Saint Pierre and Miquelon is a French archipelago south of the Canadian island of
Newfoundland
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Customs Act
Customs Tariff Act
Excise Act
Excise Tax Act (GST)
Special Import Measures Act (SIMA)
Reference: D Memoranda
There are over 80 other Acts of Parliament that may influence the Canadian
importation/exportation
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Foreign Supplier/Seller/Shipper/Exporter/Vendor
Companies outside Canada that have sold or shipped goods to importers inside
Canada.
Please note these terms can be inter-changeable
Vendor or Seller: the company outside Canada receiving payment from the company
inside Canada for the imported goods
Shipper or Exporter: company outside Canada physically sending the goods to
Canada.
Depending upon the transaction, all these terms can be the same company or
different companies
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Producer or Manufacturer: company outside Canada that has made, assembled,
grown, harvested the imported goods.
Note: could be same company as Foreign Supplier/ Seller/ Shipper/ Exporter/
Vendor, depending upon the transaction
Importer/Purchaser/buyer: Company inside Canada paying the company outside
Canada for the imported goods .
Consignee: Company inside Canada physically receiving the imported goods.
Note: could be same company as Importer/Purchaser/buyer, depending upon the
transaction.
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Carrier: “ a person or company that transports goods or people for any person or company
and that is responsible for any possible loss of the goods during transport.”
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Freight Forwarder: “a person or company that organizes shipments for individuals or
companies to get large orders from the manufacturer or producer to market or final point
of distribution. Forwarders contract with a carrier to facilitate the movement of goods.”
They also offer many other
services such as warehousing &
distribution, consulting,
consolidation etc
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Customs Analyst, Customs Rater
Customs Broker, Customs Consultant
Freight Coordinator
Freight Forwarding Manager
Traffic Clerk/Manager
Inventory Specialist, Distribution Specialist
Supply Chain Coordinator
Logistics Planner
Account Executive
Sales Representative
…….
What do you want to be???
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Vendor
Sale Canadian Importer
(Import Account)
Invoice
(Documentation)
Customs
Accounting
Conveyance (Transportation) Clearance
(Customs Broker)
(CBSA Release)
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Once CBSA has the information, they check their databases to see if there is any
reason NOT to let the goods arrive in Canada.
If the carrier does NOT receive notification from CBSA that the goods are not
allowed to arrive in Canada (or not allowed to be loaded onto the ship) the
shipment can arrive in Canada.
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The Canada Border Service Agency commercial importation process includes three
major components:
1. Cargo reporting
2. Entry release
3. Accounting
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Electronic Data Interchange (EDI)
CBSA’s Electronic Data Interchange (EDI) systems allow clients to electronically
transmit their import or export data, as well as their accounting documents, to the
CBSA.
These systems facilitate the CBSA’s ability to quickly process low-risk goods, focusing
resources on identifying potential threats to Canada’s safety and security.
EDI is a set of standards for structuring information to be electronically exchanged
between and within businesses, organizations, government entities and other groups.
These standards prescribe the formats, character sets, and data elements used in the
exchange of business documents and forms.
The term EDI is also used to refer to the implementation and operation of systems and
processes for creating, transmitting, and receiving EDI documents.
Source: D3-6-6
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Portals
eManifest Portal
Trusted Trader Portal
Canadian Export Reporting System (CERS)
CBSA Assessment and Revenue Management Client Portal (CCP)
Source: CBSA
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Two posts are required for this assignment (refer to tasks below)
Tasks:
1. Say hello to your classmates and explain Canada Customs procedures for
commercial imports in a minimum of 50 words
2. Write a response post to summarize one of your classmates’ posts and further
that discussion with a minimum 50 words
Online asynchronous
Weighted 10% of your final grade
Deadline: Sept 16th@11:59PM EDT
Late submission will not be accepted
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Week 1:
💯 Discussion Board Assessment: Customs System In Canada
Weighting: 10% of the final grade
Deadline: Sept 16th at 11:59pm EDT, 2023
Late submission will not be accepted
Next Class – Week 2
Flexible (Room K3240)
📚 Introduction to Cargo Control Document “A8A”
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