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

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A

Appeal - A fair redress and dispute resolution process provided to clients on tariff classification, value for duty, origin, advanced rulings, marking decisions and enforcement actions. (see also Dispute Resolution)

Adjustment - A mechanism for importers or owners of goods to adjust their accounting record when they become aware of an error in the information they have provided. (see also Refund)

Abandon to the Crown - The act of relinquishing ownership of goods to CBSA for destruction or disposal.

Account for - To provide a report of imported goods under section 32 of the Customs Act.

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

Administrative Monetary Penalty System (AMPS) - A civil penalty regime that secures compliance with customs legislation through the application of monetary penalties.

Advance Ruling for Tariff Classification - A tariff classification advance ruling is a written statement on the tariff classification of a product, issued to a person by the CBSA under paragraph 43.1(1)( c) of the Customs Act

Anti-dumping Duty - A duty levied under the Special Import Measures Act on goods that have been sold to importers in Canada at prices that are lower than the selling price in the country of export, or sold to Canada at unprofitable prices.

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 storage.

Border Information Service (BIS) - A computerized, 24-hour telephone service that automatically answers all incoming calls and provides general border services information.

C

Canada Customs Invoice (CCI) - A CBSA document showing all the data elements required at time of release.

Canadian International Trade Tribunal (CITT) - An independent administrative tribunal that holds hearings, and issues decisions, relating to appeals under section 67 of the Customs Act.

Cargo Control Document (CCD) - A manifest that acts as the initial record of a shipment arrival into Canada and enables the CBSA to control the movement of goods being imported and exported.

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

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. The first six digits represent the International Harmonized System Code, the seventh and eighth digits are subdivisions for customs purposes, and the remaining two digits represent a statistical suffix .

Commercial invoice – A document validating the information provided on the Canada Customs Invoice (CCI), used to support the declared value of commercial goods entering Canada

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

Commonwealth Caribbean Countries Tariff (CCCT) - A preferential tariff treatment extended to certain goods imported from a Commonwealth Caribbean country.

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 goods where it has been determined that importing such subsidized goods has caused, is causing, or is likely to cause material injury to the production in Canada of like goods.

Courier - A commercial carrier that is engaged in the scheduled international transportation of shipments of goods other than goods imported by mail.

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 duty - 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) - A statement issued in response to a request made by an importer/agent or as a result of the CBSA's review of an accounting document.

Directives series - Also known as D memoranda or D-memos, outline the legislation, regulations, policies, and procedures the CBSA uses to administer customs programs, as well as provide guidelines and general information on our customs programs.

Duty deferral – A relief from the payment of most duties on imported goods that are ultimately exported, whether or not further manufactured in Canada.

Drawback – A refund of duties paid under certain conditions.

Duties Relief Program - The Duties Relief Program allows for the relief of the payment of duties on imported goods that will eventually be re-exported.

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

Duty paid value - The value obtained by adding the Canadian value for duty and all duties (regular duty, surtax, anti-dumping or countervailing duty).

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 Program – Allows for a reduction of the duty rate on goods imported for a specific use.

Examination - The inspection of goods, conveyances and persons entering into Canada.

Excise Duty - A duty levied on spirits, wine, beer and tobacco products under the authority of the Excise Act and the Excise Act, 2001.

Excise Tax - A tax levied on certain petroleum products, heavy automobiles and air conditioners designed for automobiles.

Export and Import Permits Act (EIPA) - Legislation controlling the import and export of certain goods and the export of goods to certain countries.

Export Permit - A permit issued by the Export and Import Controls Bureau of Foreign Affairs and International Trade Canada for goods that are subject to export controls. (see also General Export Permit).

F

Free and Secure Trade (FAST) - A joint Canada-United States initiative that allows pre-approved importers, carriers, and registered drivers to move pre-approved eligible goods across the border quickly.

Free Trade Agreements - Agreements that allow for the duty-free importation of certain goods imported from specific countries.

• Canada-Chile Free Trade Agreement (CCFTA)
• Canada-Costa Rica Free Trade Agreement (CCRFTA)
• Canada-Israel Free Trade Agreement (CIFTA)
• North American Free Trade Agreement (NAFTA)

Frequent Importer Release System (FIRST) - Allows pre-approved importers to obtain line release of specific low-risk, low-revenue shipments imported at specific CBSA offices on a regular basis.

G

General Export Permit (GEP) - Authorization to export controlled goods included in the Export Control List, to specified locations without the requirement for an individual export permit from Foreign Affairs and International Trade Canada.

General Import Permit (GIP) - Authorization to import, controlled goods that are included in the Import Control List, without the requirement for an individual import permit from Foreign Affairs and International Trade Canada.

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

General Preferential Tariff (GPT) - A special tariff provision where qualifying goods may be subject to reduced rates of duty.

Goods and Services Tax (GST) – A 5% federal tax that applies to most goods and services in Canada and to imported goods under section 212 of the Excise Tax Act.

H

Harmonized Sales Tax (HST) - A 14% tax (6% federal tax and 8% provincial tax) that applies to most imported goods destined to the participating provinces of New Brunswick, Nova Scotia, and Newfoundland and Labrador.

Harmonized System (HS) - An international goods classification system used to classify imported and exported goods.

Highway frontier examining warehouse - A warehouse where goods, which are not moving inland by a bonded carrier to a sufferance warehouse, are held before they are released by CBSA.

I

Import permit - A permit issued by Foreign Affairs and International Trade Canada when goods that are subject to import control do not qualify under the terms of a General Import Permit.

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

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.

Low Value Shipment Program (LVS) - The Courier/LVS Program streamlines the reporting, release, and accounting procedures of certain goods imported by courier.

M

Manifest - A manifest acts as the initial record of a shipment arrival into Canada and enables the CBSA to control the movement of goods being imported and exported. (see also Cargo Control Document)

Marking (of imported goods) – Certain goods, identified under section 19 of the Customs Tariff, must be marked indicating country of origin. Marking refers to country of origin and should not be confused with labelling that refers to consumer packaging and labelling.

Mexico Tariff (MT) - The preferential tariff treatment extended to goods originating in Mexico and that satisfy the North American Free Trade Agreement origin requirements.

Mexico-United States Tariff (MUST) - The NAFTA preferential tariff treatment extended to commercial goods produced jointly in Mexico and the United States.

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

N

National Customs Ruling (NCR) - A written statement by the CBSA to an importer or his agent outlining how it will apply provisions of existing customs legislation to an importation of a specific commodity.

North American Free Trade Agreement (NAFTA) - A trilateral agreement signed by Canada, the United States, and Mexico that facilitates free trade.

O

Order in Council (OIC) - A legal instrument made by the Governor in Council pursuant to a statutory authority or, less frequently, the royal prerogative.

P

Price paid or payable - 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 cannot be imported into Canada.

Provisional duty - Duty levied under the Special Import Measures Act when a preliminary decision is issued by the CBSA on the dumping or subsidizing of imported goods.

R

Refund - An importer may request a refund of duties and taxes on commercial goods including SIMA duties GST or HST. A completed form B2 Canada Customs - Adjustment Request form must be submitted

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 use within 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

S

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

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

Special Import Measures Act (SIMA) – Legislation to help protect Canadian producers from harm or injury caused when foreign exporters dump goods into Canada or when foreign governments subsidize exported goods.

Sufferance warehouse - A privately owned and operated facility licensed by the CBSA for the control, short-term storage, and examination of in-bond goods until they are released by CBSA or exported from Canada.

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 under the Harmonized System. The tariff item determines the rate of duty.

Tariff rate quota (TRQ) - An import quota which defines the application of different tariffs, the lower rate applying until the specified volume is reached, the higher rate thereafter.

Tariff treatment - The tariff or trade arrangement under which goods are entered into Canada.

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.

Through bill of lading - 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 in bar-code format that is a mandatory data element on all paper release documents.

Transaction value – The price paid or payable for goods sold to a purchaser in Canada, for export to Canada.

Transshipment - Movement of goods through one country to their ultimate destination.

U

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

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

V

Valuation – The appraisal of the value of imported goods by CBSA for the purpose of determining the amount of duty payable.

Value for duty (VFD) - The value in Canadian funds upon which duty is assessed in accordance with the valuation provisions of the Customs Act.

W

World Customs Organization (WCO) - An organization whose primary purpose is to facilitate the development of international trade through the improvement and harmonization of customs procedures.

World Trade Organization (WTO) – The WTO is a global international organization dealing with the rules of trade between nations.