Determination/Re-Determination of Goods

Act: Customs Act, R.S.C. 1985, c. 1, 2nd Supp., amended by Bill C-11, provisions of which came into force on January 1, 1998.
Regulation: Determination, Re-determination and further Re-determination of Origin, Tariff Classification and Value for Duty Regulations, C-52.6, SOR98-44, P.C.1997-2016, 29 December 1997.

To Whom Does This Apply?

Importers (or their agents) of commercial goods, and persons who sign certificates of origin.

Summary

When accounting for goods, it is the importer's responsibility to ensure that the information declared in the accounting data is correct. Enter the tariff classification, origin and value for duty of the imported goods. When the final accounting data has been accepted, and unless otherwise determined by an officer, a deemed determination on the tariff classification, origin and value for duty of the goods will be made.

Self adjustments

If the importer believes he has made an error in the accounting information, and the Canada Border Services Agency (CBSA) has not made a re-determination, the importer is required to correct the information within 90 days after discovering the error where the change is revenue neutral or money is owed. If a change in the accounting information results in a refund of duties or taxes paid to the CBSA, an application for a refund can be filed in most cases up to four years from the date the goods were accounted for.

When the self-adjustment (correction) results in additional duties owing, the importer must pay this amount and the applicable interest. For self-adjustments which reduce the amount of duties payable, the CBSA will refund the customs duties and the applicable goods and services tax credit or rebate will be made.

The detailed adjustment statement (DAS)

If the CBSA needs to adjust the accounting package, including to confirm requested changes, an officer will contact the importer by sending a DAS. On this statement, the importer will be asked to submit, within 30 days, any additional duties owing and interest payable because of the adjustment. The DAS is also used to inform importers of any refunds due, as well as any interest owing. A DAS is also sent even when the adjustment is non-revenue and does not result in any change to duty amount.

The CBSA may re-determine or further re-determine the tariff classification, value for duty, and country of origin you have reported for your shipment. This re-determination may be done before you have made any self-adjustments or it may be done after you have self-adjusted your accounting information. In most cases, the CBSA has four years from the date of accounting to re-determine the tariff classification, origin, or value for duty of the goods.

If the  importer does not understand the reason for the re-determination, he may contact the officer who made the decision. If there is disagreement with the decision, the importer may ask for a review in the following manner.

Disputing a decision within the CBSA

The importer, or his representative has the right to ask for an impartial review of most decisions made on the tariff classification, origin, or value for duty of imported goods. An appeals officer will make a decision on behalf of the Commissioner of the CBSA.

If the importer wants a review of a decision, he must, by law, make the request no later than 90 days after the date of the initial decision. Generally, this is done with Form B2, Canada Customs, Adjustment Request. However, a letter to dispute the tariff classification of certain prohibited goods is also acceptable. The dispute notice, addressed to the Appeals Division, may be presented to any customs office in Canada, although it is preferable to present it at a customs office in the region where the goods were released.

For more information, see Departmental Memorandum D11-6-7 Importers' Dispute Resolution Process for Origin, Tariff Classification, and value for Duty of Imported Goods.

Right of appeal

If the importer does not agree with the Commissioner's decision, he has the right to appeal it. If the decision in question does not relate to prohibited goods classified as obscene, child pornography or hate propaganda, the appeal must be made to the Canadian International Trade Tribunal (CITT). To do so, the importer must file a written appeal notice with the Commissioner and the Secretary to the CITT no later than 90 days after the Commissioner's decision is issued.

The CITT is an independent quasi-judicial tribunal that reviews disputes from importers or Canadian producers. It also acts as an impartial body to which policy departments, like the Department of Finance Canada, can refer certain issues for resolution. The CITT posts hearing notices in the Canada Gazette at least 21 days before any hearing.

By contacting the Secretary to the CITT before a hearing, the importer can appear at the hearing to explain how the matter affects his business.

On a point of law, any of the parties to the appeal to the CITT may appeal the CITT's decision to the Federal Court of Appeal no later than 90 days after the CITT issues its decision.

If the importer does not agree with the Commissioner's re-determination decision that does relate to obscenity, child pornography or hate propaganda, he has the right to appeal it to a provincial court of jurisdiction. To do so, a written appeal notice must be filed with the Commissioner and the clerk of the provincial court of jurisdiction no later than 90 days after the issuance of the Commissioner's decision.

On any question of law, the importer can appeal the provincial court of jurisdiction's decision to a higher court no later than 90 days after the court issued its decision.

The importer is responsible for administrative court costs and legal fees for appeals to the CITT, the Federal Court of Appeal, and the provincial court of jurisdiction unless otherwise ordered by the Court.

If you require personal assistance contact the Customs Client Services Office closest to you (see Related Reading: Customs Offices - Supplement or from Canada Border Service Agency's Web site for a list of addresses).

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DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.

Quebec Contact(s):
See National Contact.

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National Contact(s):
Border Information Service - BIS
Canada Border Services Agency
Telephone: 204-983-3500 or 506-636-5064
Toll-free (information): 1-800-461-9999
Web site: http://www.cbsa.gc.ca/menu-eng.html