CBSA glossary

A B C D E F G H I J K L M
N O P Q R S T U V W X Y Z

A

Appeal - Fair redress and dispute resolution process provided to clients on tariff classification, value for duty, origin, advanced rulings, marking decisions, and enforcement actions.

Adjustment - (also see Refund) A mechanism set out in the Customs Act for importers or owners of goods to adjust their accounting record when they become aware of an error in the information they have provided. A declaration of goods not originally accounted for, or a correction or refund, must be submitted on Form B2, Canada Customs - Adjustment Request.

Abandon to the Crown - To abandon ownership of goods and leave them in the possession of the CBSA for destruction or disposal.

Account for - To provide a report of imported goods under section 32 of the Customs Act. The primary accounting document for commercial importation is Form B3, Canada Customs Coding Form.

Ad valorem duty - Duty calculated as a percentage of the value for duty of the goods being imported.

Administrative Monetary Penalty System (AMPS) - A comprehensive and fair sanctions regime to address non-compliance with customs legislative, regulatory, and program requirements through the application of monetary penalties.

Advanced ruling - see National Customs Ruling (NCR)

Anti-dumping duty - A duty levied under the Special Import Measures Act on goods that have been dumped in Canada (i.e., sold for export to Canada at prices lower than those prevailing in the exporter's domestic market or for less than the cost of production) when it has been determined that the dumping of the goods has caused, is causing, or is likely to cause material injury to the production of like goods in Canada. The duty is equal to the margin of dumping.

A.T.A. Carnet - The A.T.A. (Admission Temporaire - Temporary Admission) Carnet is an international customs document designed to simplify and streamline temporary importation procedures.

B

Bonded carrier - A carrier who has posted security with the CBSA and who is permitted to transport, under CBSA control, between points in Canada, dutiable goods upon which duty has not yet been paid.

Bonded warehouse - A place licensed by the Minister where non-duty paid goods may be placed for long-term storage. For most goods, the time limit is four years. Goods placed in a bonded warehouse are considered to be imported into Canada but are not yet released. Deferral of duties and taxes continues until the goods are released for consumption in Canada or exported.

Border Information Service (BIS) - BIS (1-800-461-9999) is an information service available 24 hours a day that allows callers in Canada to choose from a menu of pre-recorded information on the commercial import and export process.

You can now see a text version of this recorded information by visiting our BIS Online page.

C

Canada Customs Invoice (CCI) - Form CI1, Canada Customs Invoice, is a CBSA document showing all the data elements required at time of release. All commercial shipments entering Canada with a value of CAN$1,600 must have a Canada Customs Invoice, a commercial invoice containing all the data elements of a Canada Customs Invoice, or a combination of the two. If a shipment is less than CAN$1,600, a commercial invoice will be accepted, as long as all required information is present.

Canada-Chile Free Trade Agreement (CCFTA) - An agreement implemented on July 5, 1997, to phase out tariffs over a six-year period for certain goods traded between the two countries. The applicable tariff treatment is the Chile Tariff (CT).

Canada Costa-Rica Free Trade Agreement (CCRFTA) - An agreement implemented in 2002, which allows the duty-free importation of the majority of goods imported from Costa Rica. The applicable tariff treatment is the Costa Rica Tariff (CRT).

Canada-Israel Free Trade Agreement (CIFTA) - An agreement implemented on January 1, 1997, which allows the duty-free importation of the majority of goods imported from Israel. The applicable tariff treatment is the Canada-Israel Agreement Tariff (CIAT).

Canadian International Trade Tribunal (CITT) - An independent, quasi-judicial body that reports to Parliament through the Minister of Finance. The CITT holds hearings relating to appeals under section 67 of the Customs Act of decisions of the President.

Cargo Control Document (CCD) - Also referred to as a manifest,
Form A8A(B), Cargo Control Document, acts as the initial record of a shipment arrival into Canada. It enables the CBSA to control the movement of goods being imported and exported. It is also used to control all shipments moved in bond to inland customs CBSA offices, sufferance warehouses, or bonded warehouses.

Carrier - An individual, partnership, or corporation engaged in the business of transporting goods or persons.

CBSA offices - A place designated as a CBSA office by the Minister under section 5 of the Customs Act. A CBSA office includes the place where goods are reported upon importation or exportation; the place where goods are formally accounted for and any duties and taxes are paid; and the place where persons/conveyances report and are cleared for entry.

Certificate of origin - This form is required when claiming a preferential tariff treatment and must be completed by the exporter of the goods.

Classification number - A 10-digit number, assigned to goods enumerated in the Schedule to the Customs Tariff that identifies imported goods. Also referred to as the Harmonized System or HS number.

Commercial invoice - see Canada Customs Invoice (CCI)

Commercial goods - Goods imported into Canada for sale or for any commercial, industrial, occupational, institutional, or other like use.

Commonwealth Caribbean Countries Tariff (CCCT) - A preferential tariff treatment extended to certain goods imported from a Commonwealth Caribbean country. Qualifying goods are duty free and are identified by the abbreviation CCCT in the Applicable Preferential Tariffs column of the Schedule to the Customs Tariff. Various goods are excluded from this tariff treatment such as textiles, textile articles, and footwear in Chapters 50-65 of the Customs Tariff.

Computed value - Value for duty based on the cost of production plus an amount for profit and general expenses as per section 52 of the Customs Act.

Countervailing duty - A duty levied under the Special Import Measures Act on subsidized imported goods where it has been determined that importing subsidized goods has caused, is causing, or is likely to cause material injury to the production in Canada of like goods. The duty is equal to the amount of the subsidy.

Courier - For the purposes of the Courier Imports Remission Order, a courier is a commercial carrier that is engaged in the scheduled international transportation of shipments of goods other than goods imported by mail. A courier includes all common carriers regardless of the mode of transport.

Customs broker - A person or company that is licensed by the CBSA and is empowered to act as an agent, on behalf of an importer/owner of goods, to transact business relating to importing or exporting goods.

Customs duties - Duties imposed on goods at the rates specified in the List of Tariff Provisions, which forms the Schedule to the Customs Tariff. See also Excise duty.

D

Detailed Adjustment Statement (DAS) - Form B2-1, Canada Customs - Detailed Adjustment Statement, is issued in response to a request made by an importer/agent or as a result of the CBSA's review of an accounting document. It serves as a receipt for all adjustment requests relating to payment or refund of customs duties.

Directives series - Also known as D memoranda or D-memos, the Directives series is a 21-volume reference guide concerning customs legislation, policies, and procedures.

Duty deferral - The Duty Deferral Program is designed to allow, in certain circumstances, importers, producers, and exporters to defer paying, or get relief from paying, import duties on imported goods. The program consists of two separate options for participants, each with particular advantages. These options are the Duties Relief Program and the Bonded Warehouse Program.

Drawback - If you are the importer, exporter, processor, owner, or producer of goods that were exported from Canada and for which duty was paid on importation, you may be entitled to file a claim for drawback.

Duties relief - The Duties Relief Program relieves the payment of duties on imported goods that will eventually be re-exported either in the same condition or after being further manufactured. Goods that are used, consumed or expended in the processing of other goods for export are also eligible for duties relief.

Duty free - Goods that are not subject to duty under the Customs Tariff.

Duty paid value - The value obtained by adding to the value for duty (Canadian value) any regular duty, surtax, or anti-dumping or countervailing duty. This duty paid value is used for calculating excise tax and GST.

E

Emergency repairs - Repairs resulting from an unforeseen contingency that occurred outside Canada and were necessary to enable the safe return of the conveyance to Canada.

End use - Conditions relating to the specific use of imported goods and/or the person who must use them.

Examination - The inspection of goods or conveyances arriving in Canada.

Excise duty - A duty imposed on spirits and tobacco products. Under section 21 of the Customs Tariff, a customs duty equal to excise duty may be levied on such goods when they are imported into Canada.

Excise tax - A tax levied under the authority of the Excise Tax Act on the manufacture, sale, or consumption of certain commodities within Canada or on imported goods.

Export and Import Permits Act (EIPA) - This legislation places controls on the import and export of certain goods and the export of goods to certain countries. The CBSA is responsible for ensuring that goods are not imported or exported without the required permits or authorization.

Export permit - A permit issued by the Export and Import Controls Bureau of the Department of Foreign Affairs and International Trade when goods that are subject to export controls do not qualify under the terms of a General Export Permit. See also General Export Permit.

F

Free and Secure Trade (FAST) - A joint Canada-United States initiative that offers a harmonized commercial process to pre-approved importers, carriers, and registered drivers for moving pre-approved eligible goods across the border quickly.

Frequent Import Release System (FIRST) - FIRST allows pre-approved importers to obtain line release of specific low-risk commodities imported at specific CBSA offices on a regular basis.

G

General Export Permit (GEP) - Authorization to export, to specified locations, certain types and quantities of goods which are included in the Export Control List without the requirement for an individual export permit from the Export and Import Controls Bureau of International Trade Canada.

General Import Permit (GIP) - Authorization to import, certain types and quantities of goods that are included in the Import Control List, without the requirement for an individual import permit from the Export and Import Controls Bureau of International Trade Canada.

General Interpretative Rules (GIRs)- The six rules governing the classification of all goods in the Harmonized System.

General Preferential Tariff (GPT) - The General Preferential Tariff applies to certain developing countries that are otherwise entitled to the Most-Favoured-Nation Tariff. Qualifying goods are identified by the abbreviation "GPT" in the "Applicable Preferential Tariffs" column of the Schedule to the Customs Tariff.

Goods and services tax (GST) - A 6% federal tax that applies to all goods and services supplied in Canada and to imported goods under section 212 of the Excise Tax Act.

H

Harmonized sales tax (HST) - A 15% combined tax (7% federal component and 8% provincial component) that came into effect April 1, 1997, and that applies to casual imported goods destined to the participating provinces of New Brunswick, Nova Scotia, and Newfoundland and Labrador.

Harmonized System (HS) - The Harmonized Commodity Description and Coding System is an international goods classification system developed by the Customs Co-operation Council (now the World Customs Organization) and used by Canada to classify imported and exported goods.

Highway frontier examining warehouse - A warehouse where goods that are not being moved inland by a bonded carrier to a sufferance warehouse are held pending release by the CBSA. These warehouses have been established at most points of importation adjacent to the Canada-United States international boundary.

I

Import permit - A permit issued by the Export and Import Controls Bureau of International Trade Canada when goods that are subject to import control do not qualify under the terms of a General Import Permit. Individual import permits are issued primarily for commercial goods. See also General Import Permit.

Importer - A person or company responsible for preparing accounting documents for imported goods and paying the duties and taxes owed.

In bond - Subject to CBSA control, goods can enter Canada "in bond" to an inland CBSA office, sufferance warehouse, or bonded warehouse.

In transit - The movement of foreign goods through Canadian territory from a point outside Canada to another foreign point, as well as Canadian goods moving from a point in Canada through the United States to another point in Canada.

L

Least Developed Country Tariff (LDCT) - A tariff treatment accorded to countries identified by the United Nations as requiring special attention due to their economic status. All countries entitled to the Least Developed Country Tariff are also beneficiaries of the General Preferential Tariff.

Low Value Shipment (LVS) - The Courier/LVS Program streamlines the reporting, release, and accounting procedures of certain goods imported by courier. The goods that qualify under this program must:

1. be valued at less than CAN$1,600; and
2. not be controlled, prohibited, or regulated by an Act of Parliament.

M

Manifest - see Cargo Control Document

Marking - Goods identified in memorandum D11-3-1 must be marked to indicate where the goods were produced or substantially transformed to the final product. Marking refers to country of origin and should not be confused with labelling that refers to consumer packaging and labelling.

Mexico Tariff (MT) - This is the NAFTA preferential tariff treatment extended to goods that satisfy NAFTA origin requirements and originate in Mexico. If the goods are not marked but there is no evidence to indicate that they are a product of a country other than Mexico or Canada, the MT would apply. In addition, the MT applies to goods acquired in the United States and marked as a product of Mexico.

Mexico-United States Tariff (MUST) - This is the NAFTA preferential tariff treatment extended to commercial goods produced jointly in Mexico and the United States. The MUST rates are usually the highest of the NAFTA preferential rates.

Most-Favoured-Nation (MFN) Tariff - The tariff treatment extended to all countries that have trade agreements with Canada.

N

National Customs Ruling (NCR) - A National Customs Ruling is a written statement by the CBSA to an importer or his or her agent that outlines how it will apply specific provisions of existing customs legislation to an importation. NCRs are issued for CBSA programs, including for tariff classification, origin, and value for duty.

North American Free Trade Agreement (NAFTA) - A trilateral agreement signed by Canada, the United States, and Mexico and implemented on January 1, 1994. As of January 1, 1998, the rate of duty for all qualifying goods under the United States Tariff was reduced to 0%. Tariffs with Mexico continue to be reduced.

O

Order in Council (OIC) - A decision, instruction, order, or proclamation issued by or under the authority of the Governor in Council.

Other government departments (OGDs) - The CBSA administers and enforces various legislative requirements on behalf of other government departments or agencies (e.g., Motor Vehicle Safety Act and Regulations on behalf of Transport Canada; Export and Import Permits Act on behalf of International Trade Canada).

P

Price paid or payable - As defined in section 45 of the Customs Act, the price paid or payable is the "aggregate of all payments made or to be made, directly or indirectly, in respect of the goods by the purchaser to or for the benefit of the vendor."

Primary inspection line (PIL) - The point at which a person entering Canada makes a report of his or her person and goods.

Primary officer - A CBSA officer who is responsible for determining the admissibility of persons and/or goods into Canada.

Prohibited goods - Goods that are prohibited from being imported into Canada under tariff items 9897.00.00, 9898.00.00, and 9899.00.00 of the Customs Tariff or under other legislation. (i.e. Obscene publications, child pornography, and hate propaganda are prohibited importation under tariff item 9899.00.00. Also certain types of agricultural goods are prohibited under legislation enforced by the Canadian Food Inspection Agency due to the risk of disease.)

Provisional duty - Duty levied under the Special Import Measures Act when a preliminary decision is issued by the Commissioner on the dumping or subsidizing of imported goods. Provisional anti-dumping duty is equal to the estimated margin of dumping. Provisional countervailing duty is equal to the estimated amount of subsidy. The duty is collected provisionally pending the decision of the Canadian International Trade Tribunal. The duty will be refunded if proceedings are terminated by the President or if the tribunal makes a "no injury" finding or makes only a "future injury" finding. See also Anti-dumping duty and Countervailing duty.

R

Refund - (also see Adjustment) - For commercial goods, Form B2 Canada Customs - Adjustment Request has to be submitted for the return of duties, including SIMA assessments, or GST/HST. Supporting documentation (e.g., a credit note for goods returned to the exporter) should accompany the form. A refund must be authorized under Customs legislation. For example, section 76 of the Customs Act authorizes a refund where goods are not according to order and are exported from Canada.

Registrar of Imported Vehicles (RIV) - The company contracted by Transport Canada to establish and operate a national program of vehicle inspection and certification.

Release - Authorization to remove goods from a CBSA office, a sufferance warehouse, a bonded warehouse, or a duty free shop (for exportation cases) to use them in Canada.

Remission - Relief of all or a portion of duties under specified conditions under section 115 of the Customs Tariff or section 23 of the Financial Administration Act. Remission orders made under that Act must be recommended by Treasury Board and deemed to be in the public interest (e.g., for the purpose of creating jobs). Orders made under the Customs Tariff require either the Minister of National Revenue or the Minister of Finance to make a recommendation to the Governor in Council. There is no public interest requirement. Most new remission orders are granted under the authority of section 115 of the Customs Tariff.

S

Security - An amount of money or bond posted to ensure the payment of duties and taxes owing on imported goods.

Specific duty - A specific rate of duty is a rate expressed in dollars or cents per unit of measure.

Special Import Measures Act (SIMA) - SIMA helps protect Canadian producers from harm or injury caused when goods are dumped into Canada by foreign exporters or when exported goods are subsidized by foreign governments.

Sufferance warehouse - A privately owned and operated facility licensed by the CCRA for the control, short-term storage, and examination of in-bond goods until they are released by CBSA or exported from Canada. These warehouses are normally located inland to allow importers to pay for and obtain release of goods near their place of business.

Surtax - An additional duty imposed as an emergency measure of a temporary nature, usually on imported goods causing or threatening serious injury to Canadian producers of like or directly competitive products.

T

Tariff item - The classification of goods to the eighth digit under the HS-based tariff. The tariff item determines the rate of duty. The ninth and tenth digits are required for statistical purposes for commercial goods. Also see Classification number

Tariff rate quotas (TRQs) - Specified quantities of agricultural goods entitled to low duty rates under "within access commitment" tariff items. Tariff rate quotas were introduced in conjunction with the implementation of the World Trade Organization. They apply to commercial agricultural products listed on the Import Control List established under the Export and Import Permits Act.

Tariff treatment - The tariff or trade arrangement under which goods are entered into Canada, namely the Most-Favoured-Nation Tariff, the General Preferential Tariff, the Least Developed Country Tariff, the Commonwealth Caribbean Countries Tariff, the United States Tariff, the Mexico Tariff, the Mexico-United States Tariff, the Chile Tariff, the Canada-Israel Agreement Tariff, the Costa Rica Tariff, the Australia Tariff, the New Zealand Tariff, and the Canada-Costa Rica Tariff. Where a country has no tariff arrangements with Canada, it is accorded the General Tariff.

Temporary importation - Goods imported under authorization by the CBSA for a limited period of time and specified use and on which total duties and/or taxes are not collected, although a security deposit equal to duties and taxes may be required. In some cases, GST may be payable on such goods at the time of importation.

Through bill of lading - The designation of a bill of lading drawn up to cover a shipment to be handled by more than one carrier en route to its destination.

Transaction number - A unique 14-digit number that is a mandatory data element on all release requests. The transaction number must be in bar-code format on paper release documents. The first five digits of a transaction number provided by an importer or broker will be the importer/broker's account security number.

Transaction value - This is the price paid or payable for goods sold for export to Canada to a purchaser in Canada. Section 48 of the Customs Act identifies allowable adjustments to the transaction value.

Trans-shipment - Movement of goods through one country to their ultimate destination (e.g., goods trans-shipped through the United States to their final destination in Mexico).

U

Undervaluation - A contravention of section 32 of the Customs Act where goods are declared at a false value to CBSA, usually in writing, to evade lawfully payable duties.

United States Tariff (UST) - The NAFTA preferential tariff treatment extended to goods that satisfy the NAFTA rules of origin and originate in the United States.

V

Valuation - Determination of the value for duty of imported goods under the provisions of the Customs Act. The transaction value method is the primary method of valuation. This method bases the value for duty upon the price paid or payable, with certain adjustments, for goods sold for export to Canada to a purchaser in Canada.

Value for duty (VFD) - The value in Canadian funds determined according to the valuation provisions of the Customs Act, and upon which duty is assessed.

W

World Customs Organization (WCO) - The World Customs Organization replaces the Customs Co-operation Council (CCC), which was established on December 15, 1950, in Brussels. The WCO is an apolitical organization that specializes in the comparative study of customs systems. Its primary purpose is to facilitate the development of international trade through the improvement and harmonization of customs procedures.

World Trade Organization (WTO) - The World Trade Organization replaced the General Agreement on Tariffs and Trade (GATT) on January 1, 1995. The GATT was founded on January 1, 1948, to reduce tariffs and other barriers to trade. Membership in the WTO now includes most trading partners, and the CBSA participates as a member of the Canadian delegation.