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10/1/2015 201516 CCS Course Part 2 http://cscb.ca/print/book/export/html/182530 1/87 Published on CSCB National Office (http://cscb.ca) Home > Part 2
201516 CCS Course Part 2
Introduction to Part 2
Part 2 of the CCS course includes the following six modules: 8. Invoice Requriements; Advance Commercial Information; Reporting of Goods 9. Classification of Goods 10. Determining Tariff Treatments 11. The North American Free Trade Agreement 12. Valuation and Calculation of Duty 13. Calculating Taxes Payable It is recommended that you view these modules sequentially. Selfchecks and quizzes are included. On March 24, 2016, you will be provided with information on how to access the final test on the contents of Part 2, which must be completed by April 7, 2016. Responses must be submitted by 2 p.m. EDT (for example, 11 a.m. PDT in Vancouver and 3 p.m. ADT in Halifax). Once you access the test, please print a copy for your records. You will need a copy when it comes time to study for the final examination. The result of this test is worth 5% of your final mark.Module 8: Invoice Requirements; Advance Commercial Information;
Conveyance and Cargo Reporting
This module provides information on invoice requirements for imported goods, the requirement to provide Advance Commercial Information about imported goods, and the legislative requirement for reporting conveyances and cargo in all modes of transportation. Penalties for failure to report are also included. This module also introduces bills of lading and letters of credit.Module Objective
When you have completed this module, you will be familiar with the basic document used to list imported goods, the process by which Advance Commercial Information is provided to CBSA, and how conveyance and cargo are reported to CBSA. You will also be aware of penalties that can be assessed for failing to report imported goods and for incorrect reporting of goods.Lesson 1: Invoice Requirements
In this lesson, you will learn about the invoice requirements for imported goods.Rationale
In your job as a CCS, you may be required to complete an invoice for goods entering Canada.Lesson Objective
At the end of Lesson 1, you will be able to recognize and meet the invoice requirements for goods entering Canada.Topic 1: Invoice Requirements
For all goods entering Canada, CBSA requires various pieces of information. For commercial goods, this information is often included on a commercial invoice, it may also be listed on a Canada Customs Invoice (CCI), or both. You may wish to print a copy of the CCI, as we will later describe each of its Bookmark this Bookmark this Bookmark this Bookmark this10/1/2015 201516 CCS Course Part 2 http://cscb.ca/print/book/export/html/182530 2/87 fields. Information on an invoice can be used by CBSA to determine the risk of certain shipments. For example, the country of origin may be known as a source of illicit drugs and the importer of the goods may not be known to CBSA. CBSA may then identify the shipment as high risk and select the goods for examination. Invoice requirements can be met by providing CBSA with: a commercial invoice, prepared by any means (handwritten, typed, or computer generated), and containing all required data; a commercial invoice, prepared by any means, and indicating the buyer and seller of the goods, the price paid or payable for the goods, and an accurate description including quantity of the goods contained in the shipment, plus a Canada Customs Invoice (CCI, Form CI1), containing the balance of information required; or a fully completed Canada Customs Invoice (CCI). The value for duty of goods is usually based on the information provided on the invoices that correspond to the imported goods. The exporter, importer, owner of the goods, or a customs broker may complete a CCI.
Topic 1: Invoice Requirements (cont. 2)
The following includes a description of each field on the CCI. Roll over each field to see a description. You may want to print a CCI to follow along. Bookmark this10/1/2015 201516 CCS Course Part 2 http://cscb.ca/print/book/export/html/182530 3/87
Topic 1: Invoice Requirements (cont. 3)
Field 1: Vendor (name and address)
This field may include the seller, sold by, remit to, consignor, or shipper. Indicates the name and address of: a) the person selling the goods to the purchaser, or b) the person consigning the goods to Canada.Field 2: Date of Direct Shipment to Canada
Shows the date on which the goods began their continuous journey to Canada. This is the date upon which the exchange rate for foreign currency conversion is based. Bookmark this10/1/2015 201516 CCS Course Part 2 http://cscb.ca/print/book/export/html/182530 4/87
Field 3: Other References
May be used to record other useful information such as a commercial invoice number or purchase order number.Field 4: Consignee
Indicates the name and address of the party in Canada to whom the goods are shipped. Note that this party may or may not be the actual importer of the goods.Field 5: Purchaser's Name and Address
This is the party to whom the goods are sold by the vendor. The party shown in this field is the importer. They may also be identified as the buyer.Field 6: Country of Transhipment
This is the country through which the goods were shipped in transit to Canada under customs control. If transhipment has not occurred, for example, if goods are shipped directly to Canada from the United States, this field is left blank.Field 7: Country of Origin of Goods
For customs purposes, the country of origin of the goods is the country where the goods are grown, produced or manufactured. A criterion for this field is set out in the Customs Tariff Act and through quantitative restrictions. Manufactured goods must have been significantly transformed in the country specified as the country of origin into its form ready for export to Canada.Topic 1: Invoice Requirements (cont. 4)
Field 8: Transportation
Indicate the mode of transportation used, for example, vessel, rail, etc. and the place from which the goods began their continuous journey to Canada.Field 9: Conditions of Sale and Terms of Payment
Describe the terms and the conditions agreed upon by the vendor and the purchaser. For example, sale, lease, or 3% net 10 days. 3% net 10 days means that the purchaser is entitled to a 3% discount if payment is made within 10 days.Field 10: Currency of Settlement
Indicate the currency in which the vendor's demand for payment is made. For goods that are exported from the United States, it would likely say USD. Careful attention must be paid to this field, since in cases where the currency is not Canadian, it must be converted to Canadian dollars.Field 11: Number of Packages
Indicate the number of packages. Only a number is listed in this field, for example, 1, 3, 30, etc.Field 12: Specification of Commodities
This field must show the kind of packages, marks and numbers, general description, and characteristics of the goods. For example: Kinds of packages could be skids, cartons, barrels, or boxes. Marks and numbers could be serial numbers or part numbers. General description and characteristics could be fresh strawberries, number 1 grade; or men’s 100 % wool suits, sizes 40 and 42. If the goods are not new, one of the following might be indicated: not prime quality goods, remnants, job lots, closeouts, discontinued, obsolete, or used.Topic 1: Invoice Requirements (cont. 5)
Field 13: Quantity
The quantity of each item included in the description field must be indicated in the appropriate unit of measure. For example, if the goods were 100 pairs of shoes, the quantity would be 100 and if you had 1,000 barrels of oil, the quantity would be 1,000.Field 14: Unit Price
This field shows a value in the currency of settlement for each item specified in the description. For shoes, you would show the price per pair and for oil you would show the price per barrel. If the currency in field 10 indicates USD, the unit price is in US dollars.Field 15: Total
Bookmark this Bookmark this10/1/2015 201516 CCS Course Part 2 http://cscb.ca/print/book/export/html/182530 5/87 Indicate the price paid or payable in the currency of settlement for the number of items recorded in the quantity field. This is the result of multiplying the quantity in field 13 by the unit price in field 14.
Field 16: Total Weight
Show both net and gross weights. Net weight is the weight of the goods excluding the packaging or the container.Field 17: Invoice Total
This is the total price paid or payable for all goods listed on the invoice and on any continuation sheet(s) if used. If the goods were not sold, N/A (not applicable) can be shown; however, fields 10 and 15 must be completed so that duty and taxes can be calculated.Field 18: If any of fields 1 to 17 are included on an attached commercial invoice, check this box Commercial Invoice No.
This field is checked if any of fields 1 to 17 are included on an attached commercial invoice. If so, the commercial invoice number must be noted.Field 19: Exporter's Name and Address (if other than vendor)
Indicate the name and address of the person or organization shipping the goods, if they are not the vendor.Field 20: Originator
Where the invoice is completed on behalf of the vendor, the name and address of the company completing the invoice must be indicated. The name of the person completing the invoice may also be indicated. Invoices completed on behalf of individuals must indicate the name and address of the person completing the invoice. This field may be left blank if this information is provided elsewhere on the invoice.Topic 1: Invoice Requirements (cont. 6)
Field 21: Agency Ruling
Provide the number and date of any CBSA ruling applicable to the goods being imported.Field 22
Field 22 is checked when there are no items listed in fields 23, 24, or 25.Fields 23 25
These fields can be confusing and careful attention must be paid to the wording of each. When fields 23 25 are completed, the currency must be noted. Field 23 of the CCI reads: “If included in field 17 indicate amount:” The key word in field 23 is included. Field 23(i) is completed when there are transportation charges, expenses and insurance from the place of direct shipment to Canada and these charges have been included in the amount shown in field 17. Field 23(ii) is completed when there are costs for construction, erection and assembly that are incurred after importation into Canada and these costs have been included in the amount shown in field 17. Field 23(iii) is completed when there is export packing and the packing charges have been included in the amount shown in field 17. If there are figures quoted in fields 23(i) or 23(ii), they may be deducted from the invoice total shown in field 17, since these charges are not dutiable. However, export packing, field 23(iii), is a dutiable item and if the cost of export packing has been included in field 17, it may not be deducted.Topic 1: Invoice Requirements (cont. 7)
Field 24 of the Canada Customs Invoice reads: “If not included in field 17 indicate amount:" The key words in field 24 are not included. Field 24(i) is completed when there are transportation charges, expenses and insurance, to the place of direct shipment to Canada and these charges have not been included in the amount shown in field 17. Bookmark this Bookmark this10/1/2015 201516 CCS Course Part 2 http://cscb.ca/print/book/export/html/182530 6/87 Field 24(ii) is completed when there are charges for amounts for commissions, other than buying commissions, and these charges have not been included in the amount shown in field 17. Field 24(iii) is completed when there is export packing and the packing charges have not been included in the amount shown in field 17. If there are figures quoted in fields 24(i), 24(ii), or 24(iii), they must be added to the invoice total shown in field 17, since each item listed in field 24 is dutiable. Field 25 of the Canada Customs Invoice reads: "Check (if applicable): (i) Royalty payments or subsequent proceeds are paid or payable by the purchaser, or (ii) The purchaser has supplied goods or services for use in the production of these goods". The key words in field 25(i) are paid or payable by the purchaser. These are dutiable charges. The key words in field 25(ii) are the purchaser has supplied. This field allows CBSA to see whether or not the purchaser has been responsible for any goods and services to do with the production of the goods being imported. These too are dutiable charges.
Lesson 1 Summary: Invoice Requirements
In this lesson you learned about the invoice requirements for imported goods and how to complete a Canada Customs Invoice. Key points in this lesson are: CBSA requires information on all goods entering Canada; Information can be provided in more than one way; The value for duty of imported goods is generally based on the information provided on the invoices for those imported goods; and If a CCI is used, careful attention must be paid to fields 23 and 24.Lesson 2: Advance Commercial Information
In Lesson 2, you will learn about the requirements for providing Advance Commercial Information. The timeframes for providing this information will depend on the mode of transportation.Rationale
It is very important that CBSA is aware of all goods entering Canada. Significant penalties can apply advance information is not provided, and, as a CCS, you will need to be aware of the obligation to provide advance information to CBSA.Lesson Objective
You will be able to advise carriers, importers, and exporters, of the requirement to provide, and the timeframes in which to provide, advance information to CBSA.Topic 1: Advance Commercial Information
Advance Commercial Information (ACI) is a reporting process whereby mandatory conveyance and cargo data is transmitted electronically to CBSA prior to the arrival of goods. Conveyance data is information about the truck, ship, plane or rail that is carrying the goods and cargo data is information about the goods they are carrying. Having information about the goods before they reach the border, and, in some cases, even before they are loaded on to the conveyance, helps protect Canadians from health, safety, security, terrorist and contraband threats. ACI allows CBSA to make informed decisions about whether to examine shipments at the first point of arrival or in the foreign port before they are shipped. The implementation of ACI is a multiphase project. The first mode of transportation to implement ACI was marine in April 2004. Air followed in June of 2006. The final phase of the project is eManifest and it was implemented on May 6, 2015. This phase requires the electronic transmission of cargo and conveyance information for all highway and rail shipments. Full implementation of the third phase, which includes the issuing of penalties for non compliance, will be on January 10, 2016.Topic 1: Advance Commercial Information (cont. 2)
Marine ACI, Conveyance Reporting All vessels carrying commercial goods, whether those goods are being imported, travelling intransit or remaining on board, and that are loaded in a country other than Canada and arriving at a Canadian port, must transmit electronic conveyance and cargo reports in advance of the arrival of the goods. Conveyance data is based on the information from the A6, the paper general declaration, and includes details such as vessel identification, its capabilities, trade chain partners, and scheduling and routing information. The carrier must send the conveyance data to CBSA. Bookmark this Bookmark this Bookmark this Bookmark this10/1/2015 201516 CCS Course Part 2 http://cscb.ca/print/book/export/html/182530 7/87 Conveyance data time limits are impacted by where the loading of the vessel occurs. We will look at each separately.
Topic 1: Advance Commercial Information (cont. 3)
Reporting Timeframes for Conveyances Loaded in a Country Other than the United States If all goods on board the vessel are within cargo containers, the conveyance data must be transmitted electronically to CBSA at least 96 hours before the arrival of the vessel at the first Canadian port of arrival. If all goods on board the vessel are bulk cargo, the conveyance data must be transmitted electronically to CBSA at least 24 hours before the arrival of the vessel at the first Canadian port of arrival. If all goods on board the vessel are nonexempt break bulk cargo, the conveyance data must be transmitted electronically to CBSA at least 96 hours before the arrival of the vessel at the first Canadian port of arrival. If all goods on board the vessel are exempt break bulk cargo, the conveyance data must be transmitted electronically to CBSA at least 24 hours before the arrival of the vessel at the first Canadian port of arrival. If the vessel is laden solely with empty cargo containers that are in international shuttle service, the conveyance data must be transmitted electronically to CBSA at least 96 hours before the arrival of the vessel at the first Canadian port of arrival. If the goods on board the vessel are a combination of goods described above, conveyance data must be transmitted within the most advanced (longest) time frame required. The conveyance report must indicate if a supplementary cargo report will follow or not.Topic 1: Advance Commercial Information (cont. 4)
Reporting Timeframe for Conveyances Loaded in the United States Conveyance data must be transmitted electronically to CBSA at least 24 hours before the arrival of the vessel at the first Canadian port of arrival. The conveyance data shall be transmitted at the time of the vessel's departure from the U.S. Port if the length of the voyage to Canada is less than the required reporting timeframe as specified above. Reporting Timeframes for Conveyances Loaded in both a Country Other than the United States and the United States Conveyance data must be transmitted electronically to CBSA as per the timeframes specified for conveyances loaded in a country other than the United States. In the case of unscheduled stops in the U.S., an updated conveyance report including any changes, such as the U.S. Port of call/ETA at the Canada port of arrival, must be transmitted electronically to CBSA as soon as the carrier is aware of the changes.Topic 1: Advance Commercial Information (cont. 5)
Marine ACI, Cargo Reporting All cargo descriptions must be clear and accurate. Descriptions such as “Freight of All Kinds” (FAK), “Shippers Load and Count”, and “Said to Contain” are not acceptable. The description of the goods should be a plain language description that is sufficient to identify them for customs purposes. The carrier/freight forwarder must identify any dangerous goods using the UN Dangerous Goods code or the Materials Hazardous only in Bulk (MHB) code when applicable. MHB is only applicable in the marine mode. Reporting Timeframes for Cargo Loaded in the United States Cargo data must be transmitted electronically to CBSA at least 24 hours before the arrival of the vessel at the first Canadian port of arrival regardless of the type of cargo. The cargo data shall be transmitted at the time of the vessel's departure from the U.S. port if the length of the voyage to Canada is less than the required reporting timeframe.Topic 1: Advance Commercial Information (cont. 6)
Reporting Timeframes for Empty Cargo Containers Loaded in a Country Other than the United States Must be transmitted to CBSA electronically at least 96 hours prior to the arrival of the vessel at the first Canada port of arrival. If the voyage is less than 96 hours, then the report is required before departure from the foreign port. Reporting Timeframes for Empty Cargo Containers Loaded in the United States Must be transmitted electronically to CBSA at least 4 hours before the arrival of the vessel at the first Canadian port of arrival. If the length of the voyage is less than 4 hours, the transmission is required at the time of departure.Topic 1: Advance Commercial Information (cont. 7)
For Cargo Loaded in a Country Other than the United States Bookmark this Bookmark this Bookmark this Bookmark this Bookmark this10/1/2015 201516 CCS Course Part 2 http://cscb.ca/print/book/export/html/182530 8/87 For containerized cargo, the cargo data must be transmitted electronically to CBSA at least 24 hours prior to the loading of the goods on board the vessel. For bulk goods, the cargo data must be transmitted electronically to CBSA at least 24 hours prior to the arrival of the vessel at the first Canadian port of arrival. For nonexempt breakbulk cargo, the cargo data must be transmitted electronically to CBSA at least 24 hours prior to the loading of the goods on board the vessel. For exempt breakbulk cargo, the cargo data must be transmitted electronically to CBSA at least 24 hours prior to the arrival of the vessel at the first Canadian port of arrival. The cargo data shall be transmitted before the vessel's departure from a foreign port if the length of the voyage is less than the required reporting timeframe as specified above.
Topic 1: Advance Commercial Information (cont. 8)
Electronic Messaging from CBSA There are three types of response messages that clients can expect to receive from CBSA when transmitting marine cargo/conveyance reports. 1. Positive Response Messages These messages are issued in the form of acknowledgements. There are two types of acknowledgements: Functional and Application. Functional Acknowledgement: An acknowledgement that notifies the sender that CBSA has received the message and the message was syntactically correct. This acknowledgement is generated before the validation is performed. Application Acknowledgement: An acknowledgement that notifies the sender that CBSA has received and successfully validated the data and found no error. Validation occurs when the transmitted data has been validated for specific edits by CBSA systems and has passed those edits.Topic 1: Advance Commercial Information (cont. 9)
2. Error and Match Response Messages Error messages are issued in the form of Reject Notices and can be either Syntax or Validation. A specific error will cause only the specific message within which it occurred to be rejected. When a successful link is made between a supplementary report and a cargo report, a pair of “Match” notices is generated. For each set of notices, one notice is sent to the originator of the supplementary cargo report and the other notice is sent to the originator of the primary cargo report. The A6 is considered the primary cargo report but in cases where there is not enough information included, a supplementary cargo report must also be issued. 3. Risk Assessment Notices These notices may be issued when CBSA requires the client to provide more information regarding the cargo or to provide the client with specific instructions regarding the loading/unloading of the cargo. Risk Assessment notices may also include free text remarks providing external clients with additional information and instructions. CBSA systems will send out “Do Not Load”, “Hold”, “Do Not Unload” and “Cancellation” messages back to the sender and relevant parties. These messages will reference the CCN, and/or container numbers where applicable.Topic 1: Advance Commercial Information (cont. 10)
Do Not Load Messages This type of message may be transmitted to the client prior to the loading of the cargo on the vessel. If a Do Not Load message is received, the cargo is not authorized to be loaded on the vessel. **NOTE**: Do Not Load Messages will not be issued for marine cargo loaded in the United States as they are not applicable. Possible Reasons for a Do Not Load Message There are several reasons that a “Do Not Load” message could be issued by CBSA. 1. CBSA requires information pertaining to the cargo such as description of goods, ultimate consignee or shipper. 2. CBSA requires the carrier to await instructions from the foreign Customs administration. 3. CBSA advises that the goods are not to be loaded on any vessel bound for Canada. If a Do Not Load Message is issued, the carrier must not load the cargo until authorization is granted by CBSA in the form of a “Cancellation” message for the “Do Not Load”. In the case of an A6A cargo report, if a “Cancellation” message is to be issued, the carrier can expect to receive it prior to the actual date and time of loading.Topic 1: Advance Commercial Information (cont.11)
Bookmark this Bookmark this Bookmark this10/1/2015 201516 CCS Course Part 2 http://cscb.ca/print/book/export/html/182530 9/87 Hold Messages This type of message may be transmitted to the client subsequent to the loading of the cargo on the vessel in the foreign port. A “Hold” message may be issued subsequent to the lading of the cargo on the vessel in the foreign port where: 1. CBSA requires information pertaining to the cargo such as delivery address or the notify party. 2. CBSA may require an examination of the cargo upon arrival. In both cases the cargo may be unloaded from the vessel in Canada but is not authorized to move until permission is granted by CBSA in the form of a “Hold Cancellation” message. Do Not Unload Messages This type of message may be transmitted to the client subsequent to the loading of the cargo on the vessel. If a “Do Not Unload” message is received, the cargo is not authorized to be unloaded from the vessel in Canada. Cancellation Message This type of message may be transmitted to the client any time subsequent to the issuance of ”Do Not Load”, “Hold” and “Do Not Unload” messages in order to cancel these instructions. The EDI System receives and processes transmitted cargo, cargo and conveyance information 24 hours a day, 7 days a week.
Topic 1: Advance Commercial Information (cont. 12)
CBSA's EDI System will, under normal conditions, endeavour to send acknowledgement and error messages back through the respective method of transmission from the client within 15 minutes from the receipt of the transmitted message. CBSA will endeavour to send the EDI response message for Risk Assessment Notices prior to the estimated time of arrival to identify a “Hold” on a shipment, and within 24 hours of the estimated date and time of loading to identify a “Do Not Load” for marine cargo loaded in a country other than the U.S. In the case of a “Do Not Load” message not sent prior to the cargo being loaded, the cargo would be held upon arrival in Canada. In the case of a “Hold” message not sent prior to the estimated time of arrival, the cargo would be considered authorized to move unless a significant risk was associated with the cargo.Topic 1: Advance Commercial Information (cont.13)
The Bay Plan The bay plan, or stowage plan, is a document used by parties in the marine transportation industry to identify all the containers and their locations on a container vessel. This information is used to plan the loading and discharge of the containers and cargo for each port. Providing electronic bay plans will aid CBSA in identifying unreported containers, and/or containers which pose significant risk to national security. Vessel Operating Carriers are required to include the Conveyance Reference Number (CRN) in their bay plan submissions. The CRN is required to ensure that the vessel bay plan, conveyance report (A6), and related cargo documents are linked correctly. CBSA requires Vessel Operating Carriers to electronically submit the entire vessel bay plan within 48 hours of departure from the vessel's last foreign port of call, prior to sailing to Canada. When the voyage is less than 48 hours in duration, bay plans are required to be submitted to CBSA prior to the vessel's arrival at the first Canadian port. Beginning November 6, 2015 and until May 6, 2016, marine carriers who do not comply with Bay Plan requirements may be issued zerorated penalties (nonmonetary) under CBSA's Administrative Monetary Penalty System (AMPS). After May 6, 2016, marine carriers who do not comply with Bay Plan requirements may be issued monetary AMPS penalties.Topic 1: Advance Commercial Information (cont. 14)
Air ACI, Conveyance and Cargo Data Air carriers and freight forwarders are required to transmit conveyance, cargo, and supplementary data to CBSA at least 4 hours prior to its arrival at the first point of arrival in Canada. If the duration of the flight is less than four hours, conveyance and cargo data must be sent to CBSA before the time of departure. An estimated time of arrival, in Eastern Time Zone (EST), must be provided. Shipments travelling by air from foreign countries may only enter Canada at authorized international airports. Air carriers who are not bonded carriers must report their goods at the first point of arrival (FPOA). The FPOA is the first airport in Canada where the aircraft will land. This is regardless of the reason for landing, including a stop for fuel, crew change, or diversion. The transporting carrier will be required to transmit a change to the Air Conveyance Report to amend the FPOA and/or Estimated Date and Time of Arrival to CBSA if there are any unscheduled reroutes, changes to the ETA greater than 30 minutes, or changes to the aircraft's itinerary. Bookmark this Bookmark this Bookmark this Bookmark this10/1/2015 201516 CCS Course Part 2 http://cscb.ca/print/book/export/html/182530 10/87
Topic 1: Advance Commercial Information (cont.15)
Highway ACI, Conveyance and Cargo Data Cargo and conveyance data must be received and validated by the CBSA no later than one hour before arrival at the FPOA. Cargo and conveyance data may be presented up to 30 days before arrival. A change to the conveyance report must be made if the estimated time of arrival (ETA) is 30 minutes (or more) earlier, or if the ETA is 8 hours (or more) than what was stated on the original conveyance report. Shipments that qualify for CSA (Customs SelfAssessment) clearance are exempt from the requirement for to provide ACI. However, where there is a mixed load of both CSA exempt and CSA nonexempt cargo, CSA clients will be required to send conveyance data and cargo data for the nonexempt cargo. Transition Period Beginning May 6, 2015 and ending July 10, 2015, CBSA will provide carriers with a period of transition during which penalties for noncompliance with eManifest regulations will not be issued. From July 20, 2015 to January 10, 2016, carriers who do not comply with eManifest requirements will be issued zerorated penalties (nonmonetary) under the CBSA's Administrative Monetary Penalty System (AMPS) The grace period will come to a close January 10, 2016 and carriers who do not comply with eManifest may be issued monetary AMPS penalties.Topic 1: Advance Commercial Information (cont.16)
Rail ACI, Conveyance and Cargo Data Rail carriers transporting goods into Canada are required to transmit cargo and conveyance data electronically to the CBSA prior to arrival. The cargo and conveyance data must be received and validated by the CBSA a minimum of two hours before the conveyance arrives at the border. From July 10, 2015, to January 10, 2016, carriers who do not comply with eManifest requirements may be issued zerorated penalties (nonmonetary) under the CBSA's Administrative Monetary Penalty System (AMPS). And, beginning January 11, 2016, carriers who do not comply with eManifest requirements may be issued monetary AMPS penalties.Lesson 2 Summary: Advance Commercial Information
In this lesson you learned about the requirement to provide Advance Commercial Information to CBSA. Key points covered in this lesson include: ACI allows CBSA to make informed decisions about whether to examine goods; all modes of transportation must transmit conveyance and cargo data within specified time frames; for goods shipped by sea, the type of goods and place of lading will determine the time frames for providing ACI; CBSA will provide various responses messages to marine ACI reports; CBSA’s EDI System receives and processes transmitted cargo, cargo and conveyance information 24 hours a day, 7 days a week; a bay or stowage plan is used by marine carriers to identify the location of containers on the vessel; goods travelling by air from foreign countries may only enter Canada at authorized international airports; for air carriers, the First Point of Arrival (FPOA) is the first airport in Canada, regardless of the reason for landing; and shipments that qualify for CSA (Customs SelfAssessment) clearance are exempt from the requirement for advance commercial information of cargo and conveyance. See if you can answer the following questions about Advance Commercial Information.Lesson 3: Conveyance and Cargo Reporting
In this lesson, you will learn about the requirement to report all conveyance and imported goods to CBSA upon their arrival. The manner of reporting will vary, depending on the mode of transportation.Rationale
It is very important that CBSA is aware of all conveyances and goods entering Canada. Significant penalties can apply for nonreport. As a CCS, you will need to be aware of the obligation to report goods.Lesson Objective
You will be able to advise carriers, importers, and exporters, of the requirement to report goods, and the proper manner in which converyances and cargo are reported. Bookmark this Bookmark this Bookmark this Bookmark this10/1/2015 201516 CCS Course Part 2 http://cscb.ca/print/book/export/html/182530 11/87
Topic 1: Conveyance Arrival
Conveyance Arrival Certification Messages Under Section 12 of the Customs Act, all goods that are imported, moving in transit through Canada, or freight remaining on board (FROB) must be reported to CBSA at the first port of arrival in Canada, even if they are exempt from providing Advance Commercial Information (ACI). FROB refers to goods that remain on board a conveyance, usually a vessel, which the ship stops and/or discharges other cargo. Reporting takes place when the conveyance arrives in Canada and a report is made to CBSA by way of submitting a Conveyance Arrival Certification Message (CACM). Marine CACM The CACM must be transmitted electronically to the CBSA when the marine vessel lands at a CBSA office upon arrival in Canada. The marine vessel will meet the definition of landing when it first comes to rest in Canada; whether at anchor, at dock or berthed alongside at the nearest CBSA office designated for that purpose. The CACM can be transmitted and received by the CBSA within a two (2) hour window prior to arrival, allowing marine carriers to transmit their arrival request up to two hours in advance of their actual arrival at a Canadian port. This twohour window is conditional on the vessel being within Canadian waters at the time the arrival request is submitted to the CBSA.Topic 1: Conveyance Arrival (cont. 2)
Air CACM For air, the CACM must be transmitted electronically to the CBSA without delay after the aircraft that is transporting cargo (specified goods) is cleared by NAV Canada to land at an airport following arrival in Canada. Rail CACM To advise the CBSA that the train has physically arrived in Canada, the carrier operating the conveyance must transmit his CACM as soon as the train crosses the U.S./Canadian border. Highway CACM Highway carriers report to CBSA at the PIL (Primary Inspection Line). Highway carriers who are using eManifest must present a lead sheet to the BSO at the PIL. A Lead Sheet includes: a barcoded Conveyance Reference Number (CRN), or a barcoded Cargo Control Number (CCN) with a handwritten CRN, or a handwritten CRN if an alternate barcoded document is also being presented with the lead sheet. The CRN is a unique reference number assigned by the carrier to identify a particular voyage for a particular conveyance. The CCN is a number that begins with a fourdigit code that identifies the carrier, followed by a unique number, assigned by the carrier. The BSO will stamp the lead sheet as proof of report and return it to the driver. Important: Please be aware that the reporting of goods to CBSA does not mean that the goods have been released. EDI arrival became mandatory on May 6, 2015. Beginning on July 10, 2015, carriers who do not comply will be issued zerorated penalties. This grace period will end on January 10, 2016 and carriers who do not comply after this date may be issued monetary penalties.Topic 2: Reporting of Goods
There are five basic steps involved in the proper importation of commercial goods. These steps are: 1. Prearrival notice is provided to CBSA. 2. Goods are reported to CBSA. 3. Goods are released by CBSA (this may also be called “interim accounting”). 4. Goods are accounted for (that is, all shipment details, including the amount of duty and taxes payable, is communicated to Customs), by the customs broker or importer. 5. Duties and taxes are paid, by the customs broker or importer. The reporting of goods entering Canada is mandatory and is provided for in Section 12 of the Customs Act. Section 12 states: "...all goods that are imported shall, except in such circumstances and subject to such conditions as may be prescribed, be reported at the nearest customs office designated for that purpose that is open for business." This means that all imported goods must be reported at the closest customs office that is open, within a particular time frame and in a particular manner, and by one of the persons referred to in Section 12 of the Customs Act. Bookmark this Bookmark this Bookmark this10/1/2015 201516 CCS Course Part 2 http://cscb.ca/print/book/export/html/182530 12/87
Topic 2: Reporting of Goods (cont. 2)
Generally, for commercial goods, it is the carrier who is responsible for reporting. Commercial goods are goods imported into Canada for sale or for any industrial, occupational, commercial, institutional or other like use. Others that are responsible for reporting imported goods are: in the case of goods that accompany their owner, or that form part of his baggage, by that person (in other words, a traveller carrying their own baggage or a tradesman carrying their tools); in the case of goods that are imported by courier or by mail, by the person who exported the goods; in the case of goods not included in the first two examples, it is the responsibility of the carrier to report the goods; and in any other case, by the person on behalf of whom the goods are imported.Topic 2: Reporting of Goods (cont. 3)
Carriers Exempt from eManifest In some instances, a highway carrier may be exempt from filing ACI and using eManifest, or he may be travelling inland for clearance. In that case, a paper Cargo Control Document (CCD) must be completed and presented at the PIL. The standard CCD for goods entering Canada by highway is the A8A(B). An A8A(B) can also be used by other modes. You may want to print a copy of this form since we will be discussing each of the fields. The fields on the A8A(B) are as follows: U.S. Port of Exit This is the port where cargo crosses the United States border into Canada. Both city and state must be indicated. United States port of exit codes may be used instead of city and state. For transborder air shipments that enter Canada in the service of a highway carrier, indicate the US CBP port at which or nearest to which the highway carrier crosses the border of the United States into Canada. In Transit The country of destination is noted here. When goods are travelling through Canada, "Canada" is noted in this field. Manifest From This is the customs office where goods are reported to CBSA, that is, the first point of entry into Canada. This is where the carrier advises CBSA of the goods he is carryinTopic 2: Reporting of Goods (cont. 4)
To
This is the CBSA office where the goods will be released. Goods are not always released at the same port at which they enter Canada. For example, they may be travelling inland for clearance at a CBSA office other than at the first point of arrival. When this is the case, this field will indicate a different CBSA office than the one indicated in the "manifest from" field.Consignee Name and Address
Indicate the name of the person and address of the place to where the goods are being delivered. In certain cases, one company will be the importer (responsible for the payment of any applicable duties and taxes) and the goods will in fact be delivered to the importer's customer or an alternate location. In this case, it is important that the CCD show the delivery address, not the importer's address.Shipper’s Name and Address
Indicate the name and address of the person or firm shipping the goods.Acquittal No.
This field is completed by the importer, customs broker, or CBSA. The acquittal number may also be called the transaction number. This number is in a bar coded format and its first five digits are the account security number of the importer or customs broker. This number references a particular shipment throughout the reporting, release, accounting and payment processes.Carrier Code/Cargo Control No.
The fourdigit carrier code and cargo control number is indicated in this field. All commercial carriers must have a fourdigit carrier code. Carriers must apply to CBSA for a carrier code and the carrier code is assigned by CBSA.Previous Cargo Control No.
Bookmark this Bookmark this Bookmark this10/1/2015 201516 CCS Course Part 2 http://cscb.ca/print/book/export/html/182530 13/87 If goods have been listed on another CCD for one reason or another, and now have a different cargo control number, the previous cargo control number is indicated in this field.
No. of pkgs.
The quantity of goods being reported is indicated in this field. Only numbers are shown. There is no text in this field. For example, a shipment consisting of 22 boxes of picture frames, 30 rolls of paper, and 3 sheets of glass would indicate the following under number of packages: 22 30 3 55 A total must be indicated if more than one package is being shipped.Topic 2: Reporting of Goods (cont. 5)
Description and Marks
Using the above example, the description and marks field would read like this: boxes of picture frames rolls of paper sheets of glass The method of packaging (boxes, rolls, and sheets) must be indicated, as well as a clear description of the goods. If the goods are in a container, the container number must be noted in this field.Weight
Selfexplanatory. If more than one item is listed, a total weight must be indicated. Have a look at a partially completed A8A(B) CCD showing the fields that are described on this page with a cargo control number.Foreign Point of Lading
This field is only completed by freight forwarders and marine carriers and indicates the city and country where the goods were loaded onto the ship, aircraft, vehicle, or rail conveyance.Location of Goods
If goods are to be stored at a sufferance warehouse awaiting release, the name of the agent handling the load and the sufferance warehouse name and location must be indicated.Name of Carrier
The name of the transporting company must be indicated.Topic 2: Reporting of Goods (cont. 6)
Conveyance Identification
For road carriers, the licence number, province or state, year, and trailer number must be indicated. Other carriers should indicate other identifiers such as rail car initials or vessel number. It may be necessary for a broker, importer, or carrier to make amendments to a completed cargo control document. If the document is rewritten, the rewritten document must indicate the same cargo control number as the original and the field labelled "description and marks" must indicate the reason for amendment, for example, "rewritten to indicate proper shipper". The original cargo control document, and the rewritten cargo control document, must be presented to CBSA. Regulations exist which allow carriers to transport goods "in bond", that is, to transport goods to an inland port for release, and "in transit", which is to carry goods through an intermediary country. In order to transport goods in bond or in transit, security must be posted with the CBSA on either a one time or ongoing basis. Goods may travel in bond for a variety of reasons, such as: delivery to a bonded warehouse; or personal effects of someone moving to Canada that are destined to a warehouse for examination and release. Carriers who wish to transport goods in bond apply to do so on form E370, an Application to Transact Bonded Carrier and Forwarding Operations.Topic 2: Reporting of Goods (cont. 7)
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Customs Cargo Control Abstract A10
In some cases, the goods listed on the CCD will be accounted for on more than one accounting document. For example, one carrier may be carrying goods for several importers, but has listed all goods on a single CCD. Since each importer will be accounting for goods separately and in their own name, it becomes necessary to split, or abstract, the original CCD. The CCD used to report goods that have been included on a single CCD is an A10, Customs Cargo Control Abstract. An explanation of each field of form A10 follows.U.S. Port of Exit
Same as port of exit for the original CCD.CBSA Office
The customs office where the A10s are being presented. This could be at the border, or, if the driver proceeds inland, they can be presented at an inland customs office.Consignee Name and Address
Same format as consignee name and address for the A8A(B) CCD. However, this field may be different if the consignee has changed.Shipper's Name and Address
Same as shipper's name and address for the A8A(B) CCD.Topic 2: Reporting of Goods (cont. 8)
Waybilled From or Point Loaded
City and country where the goods were loaded on the conveyance.Acquittal No.
Each of the A10s will have a different acquittal or transaction number.Carrier Code
The same carrier code is indicated as that which is shown on the original A8A(B) CCD.Cargo Control No.
The same number that is indicated on the master cargo control document followed by the letter "x" and an identifier. For example, if the original CCD number is 1234 56789543 and the goods will be accounted for on three separate accounting documents, three A10s must be prepared. The cargo control numbers on the three A10s are: 1234 56789543 X 1 1234 56789543 X 2 1234 56789543 X 3Topic 2: Reporting of Goods (cont. 9)
The cargo control number indicated on the initial cargo control document that is now being abstracted. In our example, it would be 1234 56789543. Using the example of the previous A8A(B), have a look at the three A10s created from the A8A(B). 1234 56789543 X 1 1234 56789543 X 2 1234 56789543 X 3 Important! All amounts in the number of packages field on all of the A10s must add up to the number on the A8A(B).Location of Goods
Same as the A8A(B) CCD. Bookmark this Bookmark this Bookmark this10/1/2015 201516 CCS Course Part 2 http://cscb.ca/print/book/export/html/182530 15/87
No. of Pieces
Complete the same way as the A8A(B) CCD. Remember the total number of pieces on each A10 must add up to the number of pieces on the A8A(B) CCD.Description and Marks
Completed the same way as the A8A(B) CCD.Weight
Same as the A8A(B) CCD.Name and Address of deconsolidator/ broker/ importer
Indicate the name and address of the deconsolidator, broker or importer preparing the A10s.Topic 2: Reporting of Goods (cont. 10)
The Freight Forwarder The role of the freight forwarder is to arrange for the international movement of goods in the most economical, timely and safe fashion. They will book space with a carrier and can recommend appropriate packing, marking, and labelling. They can arrange for insurance, and storage and delivery. Freight forwarders also consolidate freight, that is, group shipments together as one and include them on one bill of lading and one CCD. In most cases, freight is consolidated in order to get better transportation rates from the carrier since transportation companies offer the best rates for full containers or conveyances. At some point, the shipment will have to be broken down into individual shipments, or "deconsolidated". Shipments that are deconsolidated in Canada must be documented on approved CCD's. Freight forwarders who are bonded, that is, who have posted security with CBSA in order that they may ship goods in bond to various points in Canada, may use the standard form A8A(B), or have their own CCD’s privately printed. Freight forwarders who are not bonded must use form A10 to report deconsolidations to customs. As well as consolidating and deconsolidating freight, and arranging for the transportation of goods, many freight forwarders are also customs brokers.Lesson 3 Summary: Conveyance and Cargo Reporting
In Lesson 3 you learned about reporting goods and cargo control documents. Key points in this lesson are: conveyances must be reported upon their arrival; conveyance arrival time frames vary, according to mode; the reporting of goods entering Canada is mandatory and is provided for in Section 12 of the Customs Act; all imported goods must be reported at the closest customs office that is open, within a particular time frame and in a particular manner, and by one of the persons referred to in Section 12 of the Customs Act; it is usually the carrier who is responsible for reporting; commercial goods are goods imported into Canada for sale or for any industrial, occupational, commercial, institutional or other like use; even goods for which ACI is not required must be reported; reporting takes place when the conveyance arrives in Canada and a report is made to CBSA by way of submitting a Conveyance Arrival Certification Message (CACM); the CACM must be transmitted to CBSA within time frames specified for each mode; highway carriers report to CBSA at the PIL (Primary Inspection Line); highway carriers using eManifest must present a lead sheet to the Border Services Officer at the PIL; carriers not using eManifest will present a paper Cargo Control Document (CCD); the standard CCD for goods entering Canada by highway is the A8A(B); and an A8A(B) can be broken down by using an A10 (Abstract Manifest). Now take some time and answer some questions to test your knowledge of Lesson 3.Module 8: Lesson 3 SelfCheck
Questions: 0 Attempts allowed: Unlimited Available: Always Pass rate: 60 % Backwards navigation: Allowed Click on the Start quiz button to start. Start quiz Bookmark this Bookmark this10/1/2015 201516 CCS Course Part 2 http://cscb.ca/print/book/export/html/182530 16/87