Glossary
ACROSS
Accelerated Customs Release Operations Support System ACROSS is an EDI based customs release system. It allows customs release information to be electronically transmitted to and from Canada customs. Approved releases can then be transmitted directly to the carrier or through the broker.
Annex
The concessionary provisions of the Customs Tariff Act which reduce rates of duty on goods qualifying for special treatment because of their end use, special use or use by selected industry organizations.
B3
A Canada
Customs coding form, which details the harmonized classification code
used for the goods being imported. It also outlines the duty and taxes
applicable to the goods, and whether NAFTA was
applied to the shipment.
Blanket Refund Claim
A single Refund Claim covering a number of entries based on the same specific conditions, at the same time, and in the same Customs Region.
Bonded Warehouse
A Customs supervised warehouse where goods are stored "in bond" until they are released by Canada Customs.
Business Number (BN)
Effective
January 1, 1997, all businesses dealing with revenue Canada are required
to have a Business number to streamline processing. The
Business Number consolidates several existing business accounts (such as
GST, corporate income tax, import/export, payroll, etc.) under one
single number. To convert any existing numbers to a BN, or for account
inquiries, call 1-800-959-5525 (or if calling from outside Canada, call
1-613-941-0100).
CADEX (Customs Automated Data Exchange Systems)
A computer network that allows Brokers and Importers to electronically transmit duty and tax information to Canada Customs.
Canada Customs Act
The legislative authority for the administration and enforcement of all laws related to Canada Customs. It is a non-taxing statute.
Canada Customs Invoice (CCI)
An invoice in prescribed form, to be completed in the prescribed format by either the importer, the exporter, or their agents. All data on the prescribed CCI is required for shipments valued over $1,600 Canadian. A commercial invoice is acceptable in lieu of this document, if the required data elements are included (request document 5023 for further detail).
Consignee
The person or company to whom the goods are being shipped.
Country of Export
The country from which the goods are being exported
Country of Manufacture or Country of Origin
The country in which the goods are grown, produced, or manufactured. Different tariff treatments have different requirements for minimum percentage of origin and proof of prerequisites (evidence of origin).
Customs Release
Customs authorization for removal of imported goods from a Customs office, sufferance warehouse or bonded warehouse.
Customs Tariff Act
The legal authority for the imposition of Customs duties and taxes.
Date of Direct Shipment
Date on which imported goods began their continuous and uninterrupted journey to Canada. Used as the date of currency conversion.
Disbursement Fee
A fee charged by the broker for payment of duties and taxes by the broker when the funds are not provided by the customer in advance of shipment.
Duties and Taxes
Duties or taxes
can be levied on imported goods under authority of the Customs Tariff
Act, The Excise Tax Act, the Special Import Measures
Act (SIMA), or any other law relating to Customs. Duty on imported goods
services as a source of revenue for local government and as a means of
controlling the flow of externally produced products.
Duty Paid Value
The Value at which the applicable Excise Tax is calculated. It is the Aggregate of Customs duties and applicable Special Import Measures Act (SIMA) assessment.
Electronic Data Interchange (EDI)
The transmission of information between shippers, importers, brokers, carriers and Canada Customs by computer. Considered a step towards a paperless environment, it is a means of facilitating all types of transactions and removing communication barriers between countries.
Excise Act
Provides the authority for the collection of Excise duties on alcohol, spirits, beer, tobacco and their derivatives.
Export and Import Permits Act
The Act is controlled and administered by the Department of Foreign Affairs and International Trade with Canada Customs bearing the responsibility of confirming that required permits are surrendered expeditiously for both imports and exports.
Export License
A government document issued by the exporting country, permitting the licensee to participate in the export of designated goods to certain destinations. The Export license must accompany the Application for Import Permit.
FIRST (Frequent Importer Release System)
A release system designed for use by importers with frequent low risk, high value shipments.
General Agency Agreement (GAA)
Signed authorization, given by an importer, to a Customs Broker or to one of their employees to represent the importer at Customs. Also known as a Power of Attorney (POA).
Harmonized System (HS)
The Harmonized Commodity Description and Coding System (or Harmonized System), is a system for classifying goods in international trade. The first six digits of the HS number classify the goods internationally, and the remaining four digits classify the goods within the imported country.
Importer of Record
The person or company responsible for payment of duties and taxes, as well as the retention of importing records.
ITC (Input Tax Credit)
A tax rebate claimed by a GST registrant, for the GST or HST paid or payable on goods and services.
LVS (Low Value Shipment)
A shipment valued at under $1600 Canadian.
NAFTA (North American Free Trade Agreement)
Implemented on January 1, 1994 between Canada, the United States, and Mexico to phase out duty on most goods within a ten year period. The exporter must provide a NAFTA Certificate or Statement of Origin for goods that qualify under the NAFTA " Rules of Origin" to the importer so that they can claim NAFTA tariff preference.
NRI (Non Resident Importer)
A shipper or exporter who prepays all the charges into Canada, including the duty and GST, and clears the goods into Canada in their name as a Non Resident Importer.
PARS (Pre Arrival Review System)
Customs system used to release goods prior to their arrival in Canada.
RMD (Release on Minimum Documentation)
Quick Customs release can be obtained by importers or brokers with financial security on file with Canada Customs, by initially submitting minimum documentation, with full documentation being submitted to finalize the Customs Entry within five days.
RNS (Release Notification System)
Provides for around-the clock access to the statues of release messages. Release information is received electronically by the brokers and carriers.
Sufferance Warehouse
An In Bond area within a transportation terminal, where goods are stored until they are released by Canada Customs.
Temporary Importation Entries
Under certain circumstances, Customs will permit full or partial relief of duties for particular goods imported into Canada on a temporary basis. They must be exported or destroyed under Customs supervision within a prescribed time-frame or Customs will require full duties to be paid.
Transaction Value
The price paid for goods, as adjusted, when sold for export to Canada. It represents the aggregate of all payments made by the purchaser in Canada, whether directly or indirectly to the benefit of the vendor.
Value for Tax
The value on which the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) is calculated. It is the aggregate of Customs duties, including Excise Duty, if any applicable, Special Import Measures Act (SIMA) assessment, and applicable Excise Tax.
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This page last updated Wednesday, July 7, 2004