CUSTOMS NOTICE N-553

Ottawa, February 9, 2004

Expansion of Mandatory HS Code Requirements

1. This is an update to the Mandatory Harmonized System (HS) Code Requirements announced October 31, 2001 in Customs Notice N-410.

2. This notice is for the parties who import commercial shipments into Canada and the customs staff involved in the review of, and the decision-making process for, the importation of commercial goods.

3. Effective May 3, 2004, where five HS codes or less are applicable, all HS codes must be provided before the release of commercial shipments.

4. Where more than five HS codes are applicable, a minimum of five HS codes are required. In this circumstance, one of the five 10-digit HS codes provided must be for either:

(a) the highest value commodity of the shipment, or

(b) the commodity that provides the most reasonable representation of the shipment.

5. The term “reasonable representation” is defined as the commodity that reflects the true nature of the goods contained in the shipment.

6. The mandatory HS requirements apply to all paper and electronic RMD and PARS release requests valued at CAN$1,600 or more with the exception of shipments for Customs Self Assessment (CSA)/Free And Secure Trade (FAST) importers, who are exempt from mandatory HS requirements.

7. When a multiple page paper invoice is presented, the HS codes must also be shown on the first invoice page with a notation indicating the corresponding page(s) and lines of the commodities to which the HS codes apply, if the commodities are not listed on the first page.

8. This HS code requirement will not cause any change to the Canada Customs Invoice form presently used by commercial importers.

9. Release requests will be rejected, if the 10-digit HS codes are not provided.

10. There is no change to existing release situations where a 10-digit HS code is currently required, i.e., machine release and other government department releases.

11. Subsequent to the release of goods, if it is determined that an incorrect 10-digit HS code was provided, warnings and penalty actions may be applied.

12. Any questions or concerns regarding this mandatory HS requirement should be directed to:

Advance Commercial Information Division
Customs Program Strategy and Major Projects
Canada Border Services Agency
2nd floor, Vanguard Building
171 Slater Street
Ottawa ON K1A 0L5

Email: ACI@ccra-adrc.gc.ca
Facsimile: (613) 957-9562

Pamela MacCormack: (613) 952-2644
Yvon Pellerin: (613) 946-4270