Memorandum D19-10-2

Locator Code 629A

In Brief

Ottawa, June 1, 1998

SUBJECT

EXPORT AND IMPORT PERMITS ACT

(IMPORTATIONS)

The following changes have been made to accurately reflect Revenue Canada's role in administering the provisions of the Export and Import Permits Act :

Memorandum D19-10-2

Locator Code 629A

Ottawa, June 1, 1998

SUBJECT

EXPORT AND IMPORT PERMITS ACT

(IMPORTATIONS)

Revenue Canada assists the Department of Foreign Affairs and International Trade with the administration of the Export and Import Permits Act (EIPA). This Memorandum outlines the requirements and permit procedures for the importation of goods listed in the Import Control List.

TABLE OF CONTENTS

• Legislation 2
• Guidelines and General Information 3
  • Introduction 3
  • Import Controls 4
  • General Import Permits 6
  • Tariff Rate Quota Goods 6
  • Personal Importations of Tariff Rate Quota Goods 8
  • Clothing and Textiles 9
  • Carbon Steel and Specialty Steel 10
  • Import Permit Procedures 11
  • Amendments to Permits 13
  • Detention/Reject 13
  • Disposal of Goods 14
  • Penalty Information 14
  • Additional Information 15
  • Appendix A – Form EXT 1466, Application for Import/Export Permit
  • Appendix B – Transaction Record
  • Appendix C – Import Control List
  • Appendix D – Quick Reference Guide for Personal Importations of Agricultural Tariff Rate Quota Goods
  • Appendix E – Import Permit Procedures

Legislation

Export and Import Permits Act

1. Authorization for establishing the Import Control List is outlined below.

2. Authorization for amending or altering permits includes the following subsection:

3. Prohibitions under this Act include the following section:

4. Various responsibilities and authorities that customs inspectors have are contained in the sections of the Act listed below.

GUIDELINES AND GENERAL INFORMATION

Introduction

1. The Export and Import Permits Act (EIPA) gives authority to the Governor in Council to establish various control lists, amongst them an Import Control List. The Act allows the designated Minister (the Minister of Foreign Affairs) to issue import permits and under certain conditions, to alter, suspend, cancel, and reinstate any permit issued under the Act. The Act also outlines offences, penalties, customs officers' duties, and the application of powers under the Customs Act. In addition, it gives to the Governor in Council the authority to establish regulations pertaining to the administration of the Act.

2. The Export and Import Permits Act , the Import Control List, and the General Import Permits, may be found in the applicable sections of TheExport and Import Permits ActHandbook. These sections are:

3. The Export and Import Permits Act Handbook may be purchased from:

The Handbook catalogue number is E72-1/1991.

Import Controls

4. Individual import permits issued by the Department of Foreign Affairs and International Trade (DFAIT) are to be obtained for the importation of products listed on the Import Control List, except in cases where such products are permitted importation under the authority of the General Import Permits. An outline of the Import Control List may be found in Appendix C. Import permits are also to be obtained when goods are entered into a customs bonded warehouse, except for certain non-NAFTA beef and veal. In the case of sufferance warehouses, import permits are to be obtained before the time of release.

5. It should be noted that goods identified on the Import Control List that are imported under temporary entry provisions (e.g., Form E29B, ATA Carnet) are subject to the permit requirements of the EIPA.

6. Application for an import permit may be made either to the Export and Import Controls Bureau of DFAIT (see paragraph 45) or to selected customs brokers approved by that department. A sample of an Application for Import/Export Permit , Form EXT 1466, can be found in Appendix A.

7. EXCAPS (Foreign Affairs/Customs Automated Permit System) provides for the electronic transmission of permit information directly from DFAIT to Revenue Canada. This eliminates the requirement for importers to present hard copy permits to Revenue Canada (except at non-terminal offices) when obtaining release of goods controlled under the EIPA. In all cases, DFAIT will issue a transaction record to the importer or broker to serve as a receipt showing that the permit has been issued. Importers using non-terminal offices or who have goods documented on Form E29B or an ATA Carnet will be required to present a copy of the transaction record at the time of release (except agricultural Tariff Rate Quota [TRQ] goods) to substantiate that a permit has been issued by DFAIT. A sample of the transaction record is contained in Appendix B.

8. When an application form for an import permit is completed, the customs transaction number must be shown in field 2 of the form. In the event an importer does not have a transaction number, Revenue Canada will assign a transaction number to the shipment when release is requested.

9. An import permit becomes valid when the permit information has been transmitted electronically by DFAIT to the customs office where goods are to be released.

10. In the event that EXCAPS is not available to transmit permit data to the Accelerated Commercial Release Operations Support System (ACROSS), importers and brokers may submit a paper copy of the transaction record to Revenue Canada to release their goods. If ACROSS is not available, importers and brokers may submit paper release documents with a copy of the transaction record to release their goods. Clients will be advised to use the above-contingency procedures by their local customs office or via the electronic data interchange (EDI) information line at (613) 957-7224 or through an EDI information bulletin.

General Import Permits

11. Certain goods may be imported under the authority of General Import Permits (GIPs). In such cases, it is not necessary to apply for individual import permits. The GIP number must be quoted on the release documentation (e.g., cargo control document, invoice), or EDI transmission. Revenue Canada must be satisfied that the importation does in fact meet the terms of the GIP.

12. Historically, GIPs for personal use have applied equally to both residents and non-residents. It should be noted that these GIPs will continue to apply to all travellers regardless of residency.

13. Complete details regarding all the GIPs may be found in Part IV, Section 4, of TheExport and Import Permits ActHandbook.

Tariff Rate Quota Goods

14. The World Trade Organization Agreement Implementation Act resulted in changes to the Customs Tariff and the Export and Import Permits Act that affect the importation of certain agricultural goods listed on the Import Control List (ICL). Importations of these agricultural goods are controlled under the EIPA by way of tariff rate quotas (TRQ). This allows for the importation of TRQ goods at low duty rates under the “within access” tariff items until the quota quantities have been reached. Additional importations are classified under the “over access” tariff items at significantly higher duty rates. Importers may classify most agricultural goods listed on the ICL under the within access tariff item if they have obtained the appropriate TRQ import permit from DFAIT prior to the importation of the goods. Importations of wheat, barley, and products of wheat and barley will be allowed the within access classification on a “first-come, first-served” quota basis. For additional information, including a listing of the agricultural goods contained on the ICL, refer to Memoranda D10-18-1, Tariff Rate Quotas, and D10-18-6, First-Come, First-Served Agricultural Tariff Rate Quotas.

15. The importation of roses and rose buds from Israel or another Canada-Israel Free Trade Agreement (CIFTA) beneficiary are administered by Revenue Canada through a TRQ similar, but not identical, to the one described in paragraph 14. Memorandum D10-18-7, Tariff Rate Quota on Cut Roses From Israel or Another CIFTA Beneficiary , provides specific details regarding this system.

16. The importation of dry onions and fresh strawberries under the Canada-Chile Free Trade Agreement are also administered by Revenue Canada through a TRQ similar, but not identical, to the one described in paragraph 14. Memorandum D10-18-8, Tariff Rate Quotas on Dry Onions and Fresh Strawberries Under the Canada-Chile Free Trade Agreement , provides specific details regarding these quotas.

17. The availability of TRQ import permits is not a condition of release. Customs inspectors will release any shipment of TRQ goods even in the absence of a specific import permit issued under section 8.3 of the EIPA. Where a specific import permit has not been obtained by the date of final accounting under subsection 32(1), (3), or (5) of the Customs Act, the portion of the goods imported without such a permit (all or part of a shipment) will be deemed to have been imported under the authority of GIP No. 100. These goods will be classified under the over access tariff item and will be subject to high rates of customs duties.

18. In situations where TRQ permit information has been matched to release information in ACROSS and is reviewed as part of the release review process, any discrepancies in the quantity or description should be referred by the customs inspector to a commodity specialist after releasing the shipment. The referral is generated in ACROSS by the customs inspector and will be available to the commodity specialist through the ACROSS TAS (Trade Administration Services) worklist.

19. If TRQ goods are entered into a bonded warehouse (except for certain non-NAFTA beef and veal, which requires that the permit be available at time of ex-warehousing), the appropriate within access tariff item should be used where a specific import permit is available. This permit number should be quoted in field 26 of Form B3, Canada CustomsCoding Form , type 10, the entry document, or in the case of CADEX participants in the special authority field of the KI30 record. If there is a transfer of ownership of TRQ goods in warehouse, Form B3, type 30, the transfer of ownership entry document, should be completed and presented to Revenue Canada. For all TRQ goods, including non-NAFTA beef and veal, the TRQ permit number should be quoted in field 26 of Form B3, type 20, the ex-warehouse final accounting document, or in the special authority field of the KI30 record for CADEX participants.

Personal Importations of Tariff Rate Quota Goods

20. The GIPs for personal importations of agricultural TRQ goods are listed in Appendix C. The eligible quantities or values that may be imported at within access rates of duty are contained in Appendix D. It should be noted that the eligible quantities or values for these GIPs apply to each person regardless of the fact a family may be travelling together in the same conveyance or live in the same household. GIP No. 100 allows the importation of unlimited quantities for TRQ goods at the high over access rate of duty and may be used for both personal and commercial importations. The personal exemptions for travellers provided under Chapter 98 of the Customs Tariff may not be used in conjunction with GIP No. 100. Importations of agricultural TRQ goods for personal use at low rates of duty are limited to the amounts provided under the relevant traveller's GIP.

21. Travellers may import unlimited quantities of wheat and barley and their associated products (for personal use) under authority of GIP No. 3 at the within access rates of duty. For commercial importations of wheat and barley and their associated products, GIP No. 20 may be used until the quota levels have been reached. GIP No. 100 must be used thereafter.

Clothing and Textiles

22. A general description of the clothing and textile articles contained on the Import Control List can be found in the first two sections of Appendix C. Additional information on which items are subject to controls may be obtained by contacting DFAIT at the address shown in paragraph 45.

23. There are two GIPs for textile and clothing products: GIP No. 102 for yarn or fabric, and GIP No. 106 for apparel goods or other textile articles, for example, bed sheets, pillow cases, and towels. It should be noted that the importation of these goods, for purposes other than those permissible under these GIPs, requires an individual import permit.

24. The GIP No. 102 exempts a person from an individual permit for yarns or fabrics described in Items 22, 24 to 27, 60, 61, 86, 86.1, and 93 of the ICL, provided that:

25. For yarns or fabrics to qualify under GIP No. 102, the three provisions (a) , (b) , and (c) must all be met, otherwise, an individual permit is required. It is important to note, that importation of yarns or fabrics for commercial use (i.e., for resale) is not eligible under GIP No. 102, even if the value for duty is less than $500.

26. A commercial sample means any yarn or fabric that is representative of a particular category of goods produced outside Canada and that is imported solely for the purpose of being exhibited or demonstrated to solicit orders for similar goods to be imported into Canada.

27. The GIP No. 106 exempts a person from an individual permit for apparel goods or other textile articles described in items 29, 31, 32, 34, 37, 39 to 47, 49 to 52, 58, 85, and 86.3 of the Import Control List provided that for each importation of such goods:

28. Apparel goods or other textile articles that are shipped or transported together by or on behalf of the same exporter for importation by or on behalf of the same importer are considered to constitute a single importation, whether or not they are covered by the same bill of lading. This provision is designed to prevent the deconsolidation or splitting shipments in order to qualify under the GIP.

Carbon Steel and Specialty Steel

29. Various types of carbon steel and specialty steel products are identified in item numbers 80 and 81 of the Import Control List and are subject to import permit requirements.

30. Additional information regarding which steel products are subject to controls may be obtained by contacting DFAIT at the address shown in paragraph 45. Where an importer wishes to import a shipment of steel that will require multiple loads to enter Canada, one permit may be obtained to cover the entire order providing:

31. There are two GIPs for steel products: GIP No. 80 for carbon steel and GIP No. 81 for specialty steel products. These GIPs exempt a resident of Canada from individual permit requirements provided that the total value for duty of the goods, as determined under the Customs Act , is not more than $5000. In addition, shipments of steel that are classified under tariff item No. 9813.00.00 or 9814.00.00 (Canadian goods returned), do not require import permits.

Import Permit Procedures

32. In order to obtain release of goods controlled under the EIPA, other than certain goods controlled under a TRQ, importers must ensure that an import permit has been approved by DFAIT. The transaction record from DFAIT will indicate to the importer that the permit has been approved and the information transmitted to Revenue Canada through EXCAPS. If the importer is requesting release of goods at a non-terminal office, it will be necessary to present Revenue Canada with a copy of the transaction record. Departmental staff will verify the permit information contained on the transaction record prior to releasing the goods. Transaction records will be stamped by the customs inspector and sent to DFAIT on a weekly basis at the address shown below:

Monitoring Unit
Administration and Technology Services Division (EPC)
Department of Foreign Affairs and International Trade
P.O. Box 481, Station A
Ottawa ON K1N 9K6

33. Revenue Canada will verify the accuracy of the following permit information which has been transmitted electronically by DFAIT:

34. Importer names appearing on import permits should correspond to importer names that appear on customs release documentation or EDI transmissions. Where the name on the permit does not match customs release information, the permit will be rejected and importers will be advised to apply for an amended permit or resubmit the proper release information.

35. The import permit procedure and relevant responsibilities are contained in Appendix E.

36. Once an electronic permit has been used for the release of goods, this information will be transmitted to DFAIT.

Amendments to Permits

37. Necessary amendments to permits may be authorized by the Export and Import Controls Bureau of DFAIT. Examples of some types of amendments include: differences between authorized permit and shipment quantities; product substitution; extensions of validity; and expiry dates and cancellations. Amendments to permits for TRQ goods must be made prior to final accounting, and in the case of non-TRQ commodities, prior to release of the goods. For further information on amendments to permits, contact the Export and Import Controls Bureau. You will find the bureau's address and telephone numbers in paragraph 45.

Detention/Reject

38. Goods (except agricultural TRQ goods) will be detained by Revenue Canada and the release request rejected when:

39. Under the above circumstances, the goods are not to be released until the appropriate corrections are made to either the release information or the permit. A decision will then be made on the disposition of the goods.

Disposal of Goods

40. When goods have been abandoned or forfeited as a result of the requirements contained in the EIPA, the disposition of the goods will be determined by the DFAIT. Additional information on disposal of such goods may be obtained by contacting the Trade Policy and Interpretation Directorate at the address shown in paragraph 44.

41. Travellers who decide not to pay the high over access duty rate on the importation of perishable agricultural goods in excess of the personal allowable GIP quantities, are encouraged to return the excess goods to the United States. If the traveller prefers to abandon the excess goods, such goods will be disposed of by Revenue Canada in accordance with Materiel Management policies procedures and guidelines which are contained in the Finance and Administration Manual, Materiel Management Volume, Chapter 2-6-2. Additional information may be obtained by contacting local or regional materiel operations staff or the Materiel Management Division in Ottawa at (613) 954-0175. These goods are not to be made available to food banks or charities as it is not possible to ensure that perishable agricultural goods abandoned in the travellers stream meet all health, safety, and handling requirements.

42. Any agricultural TRQ goods abandoned in the commercial stream are to be detained pending instructions for disposal from the Trade Policy and Interpretation Directorate. This Directorate may be contacted by calling (613) 954-7129.

Penalty Information

43. Every person who violates any of the provisions or regulations of the EIPA is guilty of an offence and is liable:

Additional Information

44. Questions concerning the general administration of these guidelines by Revenue Canada may be directed to:

45. All questions concerning the issuance of import permits should be directed to:

APPENDIX A

Insert Form EXT 1466

APPLICATION FOR IMPORT/EXPORT PERMIT

Insert back of Form EXT 1466

APPENDIX B

Insert Transaction Record

English

APPENDIX C

IMPORT CONTROL LIST

The Import Control List may be broken down into four basic groupings. The following chart depicts these groups with corresponding item numbers, general product descriptions, and relevant General Import Permit numbers. This chart is to be used as a guide for reference purposes only. The Import Control List may be found in TheExport and Import Permits ActHandbook , Part IV, Section 3.

Note 1: In the case of agricultural products, amounts above the within access quantities or values may be imported under the authority of General Import Permit No. 100, however, the “over access” duty rates will apply.

Note 2: For detailed classification information, refer to Memorandum D10-18-1, Tariff Rate Quotas. For detailed information on agricultural limitations, refer to Memorandum D19-1-1, Agricultural and Food Products.

APPENDIX D

QUICK REFERENCE GUIDE FOR PERSONAL IMPORTATIONS OF

AGRICULTURAL TARIFF RATE QUOTA GOODS

Note: Amounts above the within access quantities or values may be imported under the authority of GIP No. 100; however, the over access duty rates will apply. For detailed classification information, refer to Memorandum D10-18-1, Tariff Rate Quotas. Detailed information regarding quantity limitations imposed by the Canadian Food Inspection Agency is contained in Memorandum D19-1-1, Agricultural and Food Products.

APPENDIX E

IMPORT PERMIT PROCEDURES

The following chart outlines the permit procedure and delineates respective responsibilities of the importer, the Department of Foreign Affairs and International Trade, and Revenue Canada.

Note 1: The availability of TRQ permits is not a condition of release. However, where a specific TRQ permit has not been obtained by the date of final accounting, the portion of the goods imported without such a permit will be deemed to have been imported under the authority of GIP No. 100. These goods will be classified under the over access tariff item and be subject to high rates of customs duties.

Note 2: In situations where TRQ permit information has been matched to release information in ACROSS and is reviewed as part of the release review process, any discrepancies in the quantity or description should be referred by the customs inspector to a commodity specialist after releasing the shipment. The referral is generated in ACROSS by the customs inspector and will be available to the commodity specialist through the ACROSS TAS (Trade Administration Services) worklist.

REFERENCES

ISSUING OFFICE –

Trade Policy and Interpretation Directorate

LEGISLATIVE REFERENCES –

Export and Import Permits Act , sections 5, 10, 14, 19, 24, and 25

Import Control List

Regulations Respecting Import Permits

General Import Permits

HEADQUARTERS FILE –

7935-1

SUPERSEDED MEMORANDA “D” –

D19-10-2, July 8, 1996

OTHER REFERENCES –

D10-18-1, D10-18-6, D10-18-7, D10-18-8, and D19-1-1

SERVICES PROVIDED BY THE DEPARTMENT ARE AVAILABLE IN BOTH OFFICIAL LANGUAGES.

THIS MEMORANDUM IS ISSUED UNDER THE AUTHORITY OF THE DEPUTY MINISTER OF NATIONAL REVENUE.