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Carol West President, Canadian Society of Customs Brokers Toronto, Ontario May 27 – 29, 2013


Who We Are CSCB 

Association providing advocacy, education, professional development and other services to customs professionals in Canada

IFCBA 

CSCB acts as Secretariat, members in all regions of the world, including Africa

Knowledge is the foundation for customs brokers contribution to trade facilitation

PSCG 

Advisory body to the World Customs Organization representing all regions of the world and all elements of the supply chain


CSCB: The Numbers NATIONAL 160 Corporate Members 58 Associate Members 3922 CCS Designates 585 CCS Students 72 Corporate “MOU” Partners 185 CTCS Designates


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Key Players in the Supply Chain Importer Customs/ Border Services Agencies

Importer

Supplier/ Exporter Customs Broker

Carrier/ Freight Forwarder


The Import Process Step 1 : The Importer The importer sends a purchase order to a supplier outside of Canada


Step Two: The Exporter You – the exporter – prepare the documents to send the goods to Canada:    

Canada Customs Invoice or Commercial Invoice Packing List Bill of Lading Other


The Supplier

‌cont’d

The documents are provided to the carrier or freight forwarder by the exporter.


The Carrier  The carrier is responsible for preparing a cargo control document, also known as a manifest or waybill.  Before the goods arrive in Canada, the documentation provided by the supplier should be provided to the Canadian customs broker.  Sending all documents to the customs broker in advance simplifies the clearance process.


The Customs Broker’s Role  The customs broker will take care of providing all information required to release the goods.

 Goods are released on the basis of information provided by the supplier, carrier, importer (customs broker acts as the information hub)  The customs broker is responsible for two key steps in clearing goods through Canada Customs:  arranging their release  accounting for goods/paying duties and taxes


The Customs Broker

…cont’d

Additional Services Provided by Customs Brokers  Obtaining a business number (requirement for importing)  Knowledge of prohibited goods  Obtaining import permits  Advising requirements and rules to prove origin

 Awareness of marking and labelling requirements


Documentation/Data  Customs documents are any documents required by the Customs department of a country – export or import.  These documents are used to accurately and completely identify the goods, as well as the quantity, the price paid and their origin.  Risk assessment for security as well as safety and trade purposes.


The Commercial Invoice The commercial invoice includes:  Exporters name; address  Consignee name; address  Purchaser name; address  Description of the goods  Unit price  Extended price

    

Currency of settlement Terms of payment Date Purchase order number Freight or insurance included or excluded in price


Common Problems       

Incorrect invoice information Country of origin not shown Additional charges not shown Goods poorly described Goods not properly marked Missing certificates and permits Incomplete transportation documents


Impacts of Documentation Errors  Delay in clearance of goods  Penalties may assessed as a result of incorrect or missing data  Errors may trigger a subsequent Customs audit


Other Government Departments  There are over 30 other government departments or agencies whose regulations affect imported goods  Primary concern of OGDs is health and safety  Information regarding imported goods must be provided to these other government departments or agencies


Examples of OGDs  Foreign Affairs and International Trade – steel products; agricultural goods under quota  Environment Canada – certain wood products  Canadian Food Inspection Agency – food items  Health Canada – drug and medical devices


Origin  Qualifying goods from certain countries may enter Canada duty-free or at a reduced rate of duty  Goods that originate in Africa may be entitled to:  the General Preferential Tariff Treatment (GPT) and/or  the Least Developed Country Tariff (LDCT)


Certificates of Origin  In order to prove origin and thereby qualify for a free or reduced rate of duty, goods from GPT and LDCT countries must be accompanied by either:  Form A - Certificate of Origin; or  an Exporter's Statement of Origin


The Customs Broker Do I Need a Customs Broker?  Trade is complex  Misnomer of “free” trade  Canadian Customs Brokers: the portal to customs compliance


The Customs Broker & Compliance       

Tariff Classification Tariff Treatment Origin Rate of Duty Value for Duty Value for Tax Duty and Tax Payable


Hiring a Customs Broker 

Do they have a specific area of expertise?

What are the qualifications of those handling my goods?

Communications with clients

Building a compliance plan

Regular reports detailing history

How much will it cost?

References

Signing an Agency Agreement

Are they CSCB members?


Getting Best Value From Your Customs Broker  Match expectations  Clearly define roles and responsibilities  Standard Trading Conditions and Standard Operating Procedures As women entrepreneurs, perhaps YOU should become a customs broker.


The Canadian Society of Customs Brokers 55 Murray Street, Suite 320, Ottawa, ON K1N 5M3 t 613-562-3543 | f 613-562-3548 | e cscb@cscb.ca

cscb.ca


Carol west canadian society of customs brokers