R.S., 1985, c. 1 (2nd Supp.)

[1986, c. 1, assented to 13th February, 1986]

An Act respecting Customs

1. This Act may be cited as the Customs Act.

2. (1) In this Act,

“Agency” means the Canada Border Services Agency;

“bonded warehouse” means a place licensed as a bonded warehouse by the Minister under subsection 91(1) of the Customs Tariff;

“Canada”[Repealed, 1996, c. 31, s. 73]

“Canada-United States Free Trade Agreement”[Repealed, 1997, c. 14, s. 35]

“CCFTA” has the same meaning as “Agreement” in subsection 2(1) of the Canada-Chile Free Trade Agreement Implementation Act;

“CCRFTA” has the same meaning as “Agreement” in subsection 2(1) of the Canada — Costa Rica Free Trade Agreement Implementation Act;

“Certificate of Origin” means the proof of origin form for goods for which preferential tariff treatment under a free trade agreement is claimed, prescribed under subsection 35.1(1) and subject to the regulations made pursuant to paragraph 35.1(4)(b);

“Chile” has the same meaning as in subsection 2(1) of the Customs Tariff;

“CIFTA” has the same meaning as “Agreement” in subsection 2(1) of the Canada-Israel Free Trade Agreement Implementation Act;

“cigar”[Repealed, 2002, c. 22, s. 328]

“Commissioner”[Repealed, 2005, c. 38, s. 60]

“conveyance” means any vehicle, aircraft or water-borne craft or any other contrivance that is used to move persons or goods;

“Costa Rica” has the same meaning as in subsection 2(1) of the Customs Tariff;

“courier” has the meaning assigned by regulation;

“customs office” means a place designated as a customs office by the Minister under section 5;

“data” means representations, in any form, of information or concepts;

“Deputy Minister”[Repealed, 1999, c. 17, s. 123]

“designated goods” means

(a) [Repealed, 2002, c. 22, s. 328]

(b) aviation fuel,

(c) aviation gasoline,

(d) beer or malt liquor,

(e) diamonds,

(f) diesel fuel,

(g) gasoline,

(h) pearls,

(i) precious and semi-precious stones,

(i.1) spirits,

(j) wine, or

(k) such other goods as the Minister may, by order, designate for the purposes of all or any of the provisions of this Act;

  “duties” means any duties or taxes levied or imposed on imported goods under the Customs Tariff, the Excise Act, 2001, the Excise Tax Act, the Special Import Measures Act  or any other Act of Parliament, but, for the purposes of subsection 3(1), paragraphs 59(3)(b ) and 65(1)(b ), sections 69 and 73 and subsections 74(1), 75(2) and 76(1), does not include taxes imposed under Part IX of the Excise Tax Act;

“duty free shop” means a place licensed as a duty free shop by the Minister under section 24;

“export” means export from Canada;

“forfeit” means forfeit to Her Majesty in right of Canada;

“free trade agreement” means NAFTA, CCFTA, CCRFTA or CIFTA;

“free trade partner” means

(a) a NAFTA country,

(b) Chile,

(c) Costa Rica, or

(d) Israel or another CIFTA beneficiary;

“goods”, for greater certainty, includes conveyances, animals and any document in any form;

“import” means import into Canada;

“imported from Israel or another CIFTA beneficiary” has the same meaning as in subsection 2(1) of the Customs Tariff;

“inland waters” means all the rivers, lakes and other fresh waters in Canada and includes the St. Lawrence River as far seaward as the straight lines drawn

(a) from Cap-des-Rosiers to the westernmost point of Anticosti Island, and

(b) from Anticosti Island to the north shore of the St. Lawrence River along the meridian of longitude sixty-three degrees west;

“internal waters”[Repealed, 1996, c. 31, s. 73]

“Israel or another CIFTA beneficiary” has the same meaning as in subsection 2(1) of the Customs Tariff;

“mail” has the meaning set out in section 2 of the Canada Post Corporation Act;

“manufactured tobacco”[Repealed, 2002, c. 22, s. 328]

“Minister” means, except in Part V.1, the Minister of Public Safety and Emergency Preparedness;

“NAFTA” has the meaning assigned to the word “Agreement” by subsection 2(1) of the North American Free Trade Agreement Implementation Act;

“NAFTA country” has the meaning assigned to that expression by subsection 2(1) of the North American Free Trade Agreement Implementation Act;

“officer” means a person employed in the administration or enforcement of this Act, the Customs Tariff or the Special Import Measures Act and includes any member of the Royal Canadian Mounted Police;

“person” means an individual, a partnership, a corporation, a trust, the estate of a deceased individual or a body that is a society, a union, a club, an association, a commission or other organization of any kind;

“preferential tariff treatment under CCFTA” means, in respect of goods, entitlement to the Chile Tariff rates of customs duty under the Customs Tariff;

“preferential tariff treatment under CCRFTA” means, in respect of goods, entitlement to the Costa Rica Tariff rates of customs duty under the Customs Tariff;

“preferential tariff treatment under CIFTA” means, in respect of goods, entitlement to the Canada–Israel Agreement Tariff rates of customs duty under the Customs Tariff;

“preferential tariff treatment under NAFTA” means, in respect of goods, entitlement to the United States Tariff, the Mexico Tariff or the Mexico–United States Tariff rates of customs duty under the Customs Tariff;

“prescribed” means

(a) in respect of a form or the manner of filing a form, authorized by the Minister,

(b) in respect of the information to be provided on or with a form, specified by the Minister, and

(c) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation;

“President” means the President of the Canada Border Services Agency appointed under subsection 7(1) of the Canada Border Services Agency Act;

  “raw leaf tobacco” has the same meaning as in section 2 of the Excise Act, 2001;

“record” means any material on which data are recorded or marked and which is capable of being read or understood by a person or a computer system or other device;

“regulation” means a regulation made by the Governor in Council under this Act;

“release” means

(a) in respect of goods, to authorize the removal of the goods from a customs office, sufferance warehouse, bonded warehouse or duty free shop for use in Canada, and

(b) in respect of goods to which paragraph 32(2)(b) applies, to receive the goods at the place of business of the importer, owner or consignee;

  “specially denatured alcohol” has the same meaning as in section 2 of the Excise Act, 2001;

“specified rate” means the rate of interest, expressed as a percentage per year, equal to 6% per year plus the prescribed rate;

  “spirits” has the same meaning as in section 2 of the Excise Act, 2001;

  “spirits licensee” has the same meaning as in section 2 of the Excise Act, 2001;

“sufferance warehouse” means a place licensed as a sufferance warehouse by the Minister under section 24;

“tariff classification” means the classification of imported goods under a tariff item in the List of Tariff Provisions set out in the schedule to the Customs Tariff;

“territorial sea”[Repealed, 1996, c. 31, s. 73]

  “tobacco licensee” has the same meaning as in section 2 of the Excise Act, 2001;

  “tobacco product” has the same meaning as in section 2 of the Excise Act, 2001;

“United States”[Repealed, 1997, c. 14, s. 35]

“value for duty” means, in respect of goods, the value of the goods as it would be determined in accordance with sections 45 to 56;

  “wine” has the same meaning as in section 2 of the Excise Act, 2001;

  “wine licensee” has the same meaning as in section 2 of the Excise Act, 2001.

(1.1) For the purpose of the definition “designated goods” in subsection (1),

“alcohol”, “ethyl alcohol” and “spirits”[Repealed, 2002, c. 22, s. 328]

“beer” or “malt liquor” has the meaning assigned by section 4 of the Excise Act;

“diamonds” means goods for personal use or for adornment of the person and classified under subheading Nos. 7102.10, 7102.31 and 7102.39 in the List of Tariff Provisions set out in the schedule to the Customs Tariff;

“diesel fuel” has the meaning assigned by subsection 2(1) of the Excise Tax Act;

“gasoline” has the meaning assigned by subsection 2(1) of the Excise Tax Act;

“pearls” means goods for personal use or for adornment of the person and classified under heading No. 71.01 in the List of Tariff Provisions set out in the schedule to the Customs Tariff;

“precious and semi-precious stones” means goods for personal use or for adornment of the person and classified under heading No. 71.03 in the List of Tariff Provisions set out in the schedule to the Customs Tariff.

“wine”[Repealed, 2002, c. 22, s. 328]

(1.2) For the purposes of this Act, a reference to preferential tariff treatment under a free trade agreement shall be read as a reference to whichever of the following is applicable in the circumstances:

(a) preferential tariff treatment under NAFTA;

(b) preferential tariff treatment under CCFTA;

(c) preferential tariff treatment under CCRFTA; or

(d) preferential tariff treatment under CIFTA.

(1.3) Every person required by this Act to keep records who does so electronically shall retain them in an electronically readable format for the prescribed retention period.

(2) The Governor in Council may from time to time by regulation temporarily restrict, for the purposes of this Act, the extent of Canadian waters, including the inland waters, but no such regulation shall be construed as foregoing any Canadian rights in respect of waters so restricted.

(3) Any power, duty or function of the President under this Act may be exercised or performed by any person, or by any officer within a class of officers, authorized by the President to do so and, if so exercised or performed, is deemed to have been exercised or performed by the President.

(4) The Minister may authorize an officer or a class of officers to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial powers or duties of the Minister, under this Act.

(5) The Minister may authorize a person employed by the Canada Revenue Agency, or a class of those persons, to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial powers or duties of the Minister, under this Act.

(6) The Minister of National Revenue may authorize a person employed by the Canada Revenue Agency or the Agency, or a class of those persons, to exercise powers or perform duties of that Minister, including any judicial or quasi-judicial powers or duties of that Minister, under this Act.

R.S., 1985, c. 1 (2nd Supp.), s. 2, c. 41 (3rd Supp.), s. 118; 1988, c. 65, s. 66; 1990, c. 45, s. 19; 1992, c. 28, s. 1; 1993, c. 25, s. 68, c. 27, s. 213, c. 44, s. 81; 1994, c. 13, s. 7; 1995, c. 15, s. 24, c. 41, s. 1; 1996, c. 31, s. 73, c. 33, s. 28; 1997, c. 14, s. 35, c. 36, s. 147; 1998, c. 19, s. 262; 1999, c. 17, s. 123; 2001, c. 25, s. 1, c. 28, s. 26; 2002, c. 22, s. 328; 2005, c. 38, ss. 60, 145.

3. (1) All duties or taxes levied on imported goods under the Customs Tariff, the Excise Act, 2001, the Excise Tax Act, the Special Import Measures Act or any other law relating to customs are binding on Her Majesty in right of Canada or a province in respect of any goods imported by or on behalf of Her Majesty.

(2) Subject to subsection (3), this Act is binding on Her Majesty in right of Canada or a province.

(3) The Governor in Council may by regulation exempt Her Majesty in any case or class of cases from the requirement to report under section 12 or 95 subject to such conditions as may be prescribed.

R.S., 1985, c. 1 (2nd Supp.), s. 3; 2002, c. 22, s. 329.

3.1 Interest shall be computed at a prescribed rate or at a specified rate and compounded daily and, if interest is computed in respect of an amount under a provision of this Act and is unpaid on the day it would, but for this section, have ceased to be computed under that provision, interest at the specified rate shall be computed and compounded daily on that unpaid interest from that day to the day it is paid and shall be paid as that provision required the amount to be paid.

1992, c. 28, s. 2; 2001, c. 25, s. 2.

3.2 Where a person is required under a provision of this Act to pay interest on an amount at the specified rate, the person shall, where the Minister or any officer designated by the Minister for the purposes of this section so authorizes, pay interest on that amount under that provision at the prescribed rate rather than at the specified rate.

1992, c. 28, s. 2.

3.3 (1) Except with respect to the collection of any debt due to Her Majesty under Part V.1, the Minister or any officer designated by the President for the purposes of this section may at any time waive or cancel all or any portion of any penalty or interest otherwise payable by a person under this Act.

(1.1) Subsection (1) does not apply if measures may be taken under section 127.1, a request under section 129 is made or the time for making a request set out in that section has not expired.

(2) Where, as a result of a waiver or cancellation under subsection (1), a person is given a refund of an amount of penalty or interest that was paid by the person, the person shall be given, in addition to the refund, interest at the prescribed rate for the period beginning on the first day after the day the amount was paid and ending on the day the refund is given, calculated on the amount of the refund.

1992, c. 28, s. 2; 1995, c. 41, s. 2; 2001, c. 25, s. 3; 2005, c. 38, s. 61.

3.4 (1) Where security has been given to the Minister by a person under a provision of this Act and the Minister or any officer (in this section referred to as a “designated officer”) designated by the President for the purposes of this section determines that the security that has been given is no longer adequate, the Minister or a designated officer may, by notice served personally or by registered or certified mail, require additional security to be given by or on behalf of the person within such reasonable time as may be stipulated in the notice.

(2) Where the additional security required to be given by or on behalf of a person under subsection (1) is not given within the time it is so required to be given, the amount by which

(a) the amount owing in respect of which security that has been given to the Minister by the person is no longer adequate

exceeds

(b) the value of the security that has been given to the Minister by the person, as determined by the Minister or a designated officer,

is payable by the person immediately.

1992, c. 28, s. 2; 2005, c. 38, s. 62.

3.5 Except in the circumstances that the Minister may specify, every person who makes a payment of any amount under this Act shall, if the amount exceeds the amount specified by the Minister, make the payment to the account of the Receiver General in the prescribed manner and within the prescribed time at

(a) a bank;

(b) a credit union;

(c) a corporation authorized by an Act of Parliament or of the legislature of a province to carry on the business of offering its services as a trustee to the public; or

(d) a corporation authorized by an Act of Parliament or of the legislature of a province to accept deposits from the public and that carries on the business of lending money on the security of real property or immovables or of investing in mortgages or hypothecary claims on immovables.

2001, c. 25, s. 4.

4. Where more than one person is responsible for the performance of any obligation under this Act, performance of the obligation by any one of them shall be deemed to be performance by all of them.

4.1 In the case of goods to which paragraph 32(2)(b) applies, the Minister may accept from an importer or transporter an undertaking to assume obligations in relation to compliance with this Act and the regulations.

2001, c. 25, s. 5.

5. The Minister may designate customs offices inside or outside Canada for a specified purpose or generally for business relating to customs and may at any time amend, cancel or reinstate any such designation.

6. (1) The owner or operator of

(a) any international bridge or tunnel, for the use of which a toll or other charge is payable,

(b) any railway operating internationally, or

(c) any airport, wharf or dock that receives conveyances operating internationally and in respect of which a customs office has been designated under section 5

shall provide, equip and maintain free of charge to Her Majesty at or near the bridge, tunnel, railway, airport, wharf or dock adequate buildings, accommodation or other facilities for the proper detention and examination of imported goods or for the proper search of persons by customs officers.

(2) The Minister may

(a) make such improvements as the Minister considers desirable to any facilities provided pursuant to subsection (1),

(b) post, on or about such facilities, such signs as the Minister considers appropriate for the safe use of the facilities or for the enforcement of any law relating to the importation or exportation of goods or the international movement of persons, and

(c) continue to use such facilities for as long a period of time as the Minister requires,

and no person shall interfere with any of the rights set out in this subsection.

(3) The Governor in Council may, subject to subsection (4), make regulations determining what are adequate buildings, accommodation and other facilities for the purposes referred to in subsection (1).

(4) Any building, accommodation or other facility provided for the purposes referred to in subsection (1) that fails to meet the applicable requirements of Part II of the Canada Labour Code shall be deemed not to be adequate for those purposes.

(5) Where any building, accommodation or other facility provided pursuant to subsection (1) at or near an international bridge or tunnel is not adequate for the purposes referred to in that subsection, the Minister may, on thirty days notice to the owner or operator of the bridge or tunnel, carry out any construction or repairs on the site of the facility in order to render it adequate for those purposes.

(6) The owner or operator of an international bridge or tunnel is liable for all reasonable costs incurred by the Minister under subsection (5), which costs may be recovered in accordance with sections 143 to 145.

R.S., 1985, c. 1 (2nd Supp.), s. 6, c. 26 (3rd Supp.), s. 1.

7. Subject to this Act and the regulations, any of the powers, duties or functions established under this Act or the regulations relating to the importation of goods may be carried out inside Canada or, where they do not conflict with the laws of another country, inside that other country and may be carried out before or after the importation.

7.1 Any information provided to an officer in the administration or enforcement of this Act, the Customs Tariff or the Special Import Measures Act or under any other Act of Parliament that prohibits, controls or regulates the importation or exportation of goods, shall be true, accurate and complete.

2001, c. 25, s. 6.

8. The Minister may include on any form a declaration, to be signed by the person completing the form, declaring that the information given by that person on the form is true, accurate and complete.

R.S., 1985, c. 1 (2nd Supp.), s. 8; 2001, c. 25, s. 7.

8.1 (1) For the purposes of this section, “electronic filing” means using electronic media in a manner specified in writing by the Minister.

(2) A person who is required to file or otherwise provide forms under this Act or the Customs Tariff and who meets the criteria specified in writing by the Minister may file with the Minister in the prescribed manner an application, in the prescribed form with the prescribed information, for authorization to file or otherwise provide the forms by way of electronic filing.

(3) If the Minister is satisfied that a person who files an application under subsection (2) meets the criteria referred to in that subsection, the Minister may, in writing, authorize the person to file or otherwise provide forms by way of electronic filing, subject to such conditions as the Minister may at any time impose.

(4) The Minister may revoke an authorization granted to a person under subsection (3) if

(a) the person, in writing, requests the Minister to revoke the authorization;

(b) the person fails to comply with any condition imposed in respect of the authorization or any provision of this Act or the Customs Tariff;

(c) the Minister is no longer satisfied that the criteria referred to in subsection (2) are met; or

(d) the Minister considers that the authorization is no longer required.

(5) If the Minister revokes the authorization, the Minister shall notify the person in writing of the revocation and its effective date.

(6) For the purposes of this Act and the Customs Tariff, if a person files or otherwise provides a form by way of electronic filing in accordance with the conditions, if any, imposed under subsection (3), it is deemed to be filed or provided in the prescribed form on the prescribed day.

(7) For the purposes of this Act and the Customs Tariff, a document presented by the Minister purporting to be a print-out of a form received under this section shall be received as evidence and, in the absence of proof to the contrary, is proof of the form filed or otherwise provided under this section.

(8) The Governor in Council may, on the recommendation of the Minister, make regulations in respect of electronic systems or any other technology to be used in the administration of this Act or the Customs Tariff, including regulations respecting

(a) the supplying of information or forms for any purpose under this Act or the Customs Tariff in electronic or other form, the notification of persons and the transmission of any other information under this Act or the Customs Tariff;

(b) the payment of amounts under this Act or the Customs Tariff by electronic instructions; and

(c) the manner in which and the extent to which, if at all, any provision of this Act or the Customs Tariff or the regulations under either Act applies to the electronic systems, and adapting any such provision for the purpose of applying it.

1997, c. 36, s. 148; 2001, c. 25, s. 8.

9. (1) Subject to the regulations, the Minister or any person designated by the Minister for the purposes of this section may issue to any person who is qualified under the regulations a licence to transact business as a customs broker.

(2) Subject to the regulations, the Minister may amend, suspend, renew, cancel or reinstate any licence issued under subsection (1), and any person designated by the Minister for the purpose of this section may amend, suspend, renew, cancel or reinstate any licence issued by himself under subsection (1).

(3) If an officer so requests, a customs broker shall make available to the officer, within the time specified by the officer, any records that the customs broker is required by the regulations to keep.

(4) No person shall transact or attempt to transact business as a customs broker or hold himself out as a customs broker unless the person holds a licence issued under subsection (1) or unless he is qualified under the regulations and is duly authorized to transact business as a customs broker by a person who holds such a licence, but nothing in this subsection shall be so construed as to prohibit any person from transacting business on his own behalf under this Act, or to prohibit persons administering estates or other duly authorized agents from transacting business under this Act.

(5) The Governor in Council may make regulations

(a) prescribing qualifications as to citizenship, residence and knowledge of the laws and procedures relating to importations and exportations and any other qualifications that must be met by an applicant for a customs broker’s licence issued under subsection (1), and any such qualifications that must be met by a person who transacts business as a customs broker on behalf of a person so licensed;

(b) prescribing the terms and conditions on which such licences may be issued, including the security that may be required and the fees, if any, to be paid for the licences;

(c) prescribing the duration of such licences;

(d) prescribing the manner of applying for such licences or for renewals thereof;

(e) providing for the examination of applicants for such licences, and of persons who will transact business as customs brokers on their behalf, by the Minister or by any other person with respect to their knowledge of the laws and procedures relating to importations and exportations;

(f) prescribing the examination fees to be paid, the amount of any deposit that may be taken in respect thereof and the conditions under which such fees or deposits may be refunded;

(g) prescribing the records to be kept by customs brokers and the period of time for which they shall be kept; and

(h) prescribing the manner and circumstances in which the Minister may suspend or cancel a customs broker’s licence issued under subsection (1) or any other person may suspend or cancel such a licence issued by himself thereunder, and the circumstances in which a customs broker’s licence shall be surrendered.

R.S., 1985, c. 1, (2nd Supp.), s. 9; 2001, c. 25, s. 9.

10. (1) Subject to the regulations, any person who is duly authorized to do so may transact business under this Act as the agent of another person, but an officer may refuse to transact business with any such person unless that person, on the request of the officer, produces a written authority, in a form approved by the Minister, from the person on whose behalf he is acting.

(2) Any person who is duly authorized to administer the estate of another person by reason of death, bankruptcy, insolvency or incapacity or for any other reason may transact business under this Act on behalf of the estate but an officer may refuse to transact business with any such person unless that person satisfies the officer that he is duly authorized to administer the estate.

(3) The Governor in Council may make regulations in respect of any provision of this Act prescribing the circumstances in which a person may transact business under that provision as the agent of another person.