Customs Brokers Licensing Regulations (SOR/86-1067)

Regulations are current to 2014-09-29 and last amended on 2006-06-23. Previous Versions

Customs Brokers Licensing Regulations

SOR/86-1067

CUSTOMS ACT

Registration 1986-11-06

Regulations Respecting the Licensing of Customs Brokers

P.C. 1986-2487 1986-11-06

Whereas, pursuant to subsection 164(3) of the Customs ActFootnote *, a copy of proposed Regulations respecting the licensing of customs brokers, substantially in the form annexed hereto, was published in the Canada Gazette Part I on May 10, 1986 and a reasonable opportunity was thereby afforded to interested persons to make representations to the Minister of National Revenue with respect thereto;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to subsection 9(5), paragraph 164(1)(j) and subsection 166(1) of the Customs ActFootnote *, is pleased hereby to make the annexed Regulations respecting the licensing of customs brokers, effective on the coming into force of subsection 9(5), paragraph 164(1)(j) and subsection 166(1) of the Customs ActFootnote *.

SHORT TITLE

 These Regulations may be cited as the Customs Brokers Licensing Regulations.

INTERPRETATION

 In these Regulations,

“Act”

“Act” means the Customs Act; (Loi)

“chief officer of customs”

“chief officer of customs”, with respect to a customs broker, means the manager of a local customs office or customs offices that serve the area in which the broker transacts business, or proposes to transact business, as a customs broker; (agent en chef des douanes)

“licence”

“licence” means a licence to transact business as a customs broker issued pursuant to section 9 of the Act. (agrément)

PRESCRIBED QUALIFICATIONS FOR CUSTOMS BROKERS

  •  (1) An individual is qualified under these Regulations if the individual

    • (a) is a citizen or permanent resident of Canada;

    • (b) is of good character;

    • (c) is at least 18 years of age;

    • (d) has sufficient financial resources to conduct his business in a responsible manner; and

    • (e) has a sufficient knowledge of the laws and procedures relating to importations and exportations determined in accordance with section 4.

  • (2) A partnership is qualified under these Regulations if the partnership

    • (a) in the case of a partnership composed of individuals,

      • (i) is composed of individuals each of whom meets the qualifications prescribed in paragraphs (1)(a) to (c),

      • (ii) has sufficient financial resources to conduct its business in a responsible manner, and

      • (iii) has at least one partner who has a sufficient knowledge of the laws and procedures relating to importations and exportations, determined in accordance with section 4; and

    • (b) in the case of a partnership composed of corporations,

      • (i) is composed of corporations each of which meets the qualifications prescribed in paragraphs (3)(a) to (c),

      • (ii) has sufficient financial resources to conduct its business in a responsible manner, and

      • (iii) has at least one partner that meets the qualification prescribed in paragraph (3)(d).

  • (3) A corporation is qualified under these Regulations if

    • (a) the corporation

      • (i) is incorporated in Canada,

      • (ii) is of good reputation, and

      • (iii) has sufficient financial resources to conduct its business in a responsible manner;

    • (b) all of the directors of the corporation are of good character;

    • (c) a majority of the directors of the corporation are citizens or permanent residents of Canada; and

    • (d) at least one officer of the corporation has a sufficient knowledge of the laws and procedures relating to importations and exportations, determined in accordance with section 4.

  •  (1) Subject to subsection (2), a sufficient knowledge of the laws and procedures relating to importations and exportations is established, for the purposes of paragraph 3(1)(e), subparagraphs 3(2)(a)(iii) and (b)(iii) and paragraph 3(3)(d), if the individual, partner or officer has written the Customs Brokers Professional Examination, given under section 15, and attained a grade of at least 60 per cent on it

    • (a) not more than one year before the day on which the application for a licence was made; or

    • (b) more than one year before the day on which the application for a licence was made if the individual, partner or officer transacted business as a customs broker, whether on their own behalf or on behalf of a licensee, from within one year after the day on which the examination was written until not more than one year before the day on which the application for a licence was made.

  • (2) For the purposes of paragraph 3(1)(e), subparagraphs 3(2)(a)(iii) and (b)(iii) and paragraph 3(3)(d), a sufficient knowledge of the laws and procedures relating to importations and exportations is established, if the individual, partner or officer

    • (a) prior to the coming into force of these Regulations, met the requirement under the Custom-House Brokers Licensing Regulations of having a sufficient knowledge of the law relating to customs matters to discharge the obligations of a customs broker; and

    • (b) transacted business as a customs broker, whether on his own behalf or on behalf of a person to whom a licence was issued under subsection 118(1) of the former Customs Act, being chapter C-40 of the Revised Statutes of Canada, 1970, until not more than six months before the date of the application for a licence.

  • SOR/2002-149, s. 1;
  • SOR/2006-151, s. 1.

 [Repealed, SOR/2006-151, s. 2]

 [Repealed, SOR/2006-151, s. 2]

APPLICATION FOR LICENCE

 An application for a licence must be made in the prescribed form and be submitted to the chief officer of customs for the area in which the applicant proposes to transact business as a customs broker.

  • SOR/2002-149, s. 2.
  •  (1) On receipt of an application for a licence and before a licence is issued, the chief officer of customs to whom the application is made shall display, for a period of two weeks in the customs office managed by him, a public notice of the application, setting out

    • (a) where the applicant is an individual, the applicant’s full name and address and the business name to be used;

    • (b) where the applicant is a partnership composed of individuals,

      • (i) the full name and address of each partner,

      • (ii) the name of each partner who meets the knowledge requirement determined in accordance with section 4, and

      • (iii) the business name to be used;

    • (c) where the applicant is a partnership composed of corporations

      • (i) the legal name of each partner,

      • (ii) the head office address of each partner,

      • (iii) the name and address of each officer and director of each partner,

      • (iv) the names of the officers of each partner who meet the knowledge requirement determined in accordance with section 4, and

      • (v) the business name to be used; and

    • (d) where the applicant is a corporation,

      • (i) the legal name of the corporation,

      • (ii) the head office address of the corporation,

      • (iii) the name and address of each officer or director,

      • (iv) the name of each officer who meets the knowledge requirement determined in accordance with section 4, and

      • (v) the business name to be used if other than the legal name of the corporation.

    • (e[Repealed, SOR/2002-149, s. 3]

    • (f) and (g[Repealed, SOR/2006-151, s. 3]

  • (2) The notice referred to in subsection (1) shall invite written comments or information from the public regarding the application.

  • SOR/2002-149, s. 3;
  • SOR/2006-151, s. 3.

 [Repealed, SOR/2002-149, s. 4]

SECURITY

  •  (1) Before a licence is issued or renewed, the customs broker shall, in respect of the licence to be issued or renewed, deposit security with the chief officer of customs in the amount of $50,000 to protect the Canada Customs and Revenue Agency against loss while the licence or renewal thereof is in effect.

  • (2) The security deposited under subsection (1) shall be in the form of

    • (a) cash;

    • (b) a certified cheque;

    • (c) a transferable bond issued by the Government of Canada; or

    • (d) a bond issued by

      • (i) a company that is registered and holds a certificate of registry to carry on the fidelity or surety class of insurance business and that is approved by the President of the Treasury Board as a company whose bonds may be accepted by the Government of Canada,

      • (ii) a member of the Canadian Payments Association referred to in section 4 of the Canadian Payments Association Act,

      • (iii) a corporation that accepts deposits insured by the Canada Deposit Insurance Corporation or the Régie de l’assurance-dépôts du Québec to the maximum amounts permitted by the statutes under which those institutions were established,

      • (iv) a credit union as defined in subsection 137(6) of the Income Tax Act, or

      • (v) a corporation that accepts deposits from the public, if repayment of the deposits is guaranteed by Her Majesty in right of a province.

  • SOR/90-121, s. 1;
  • SOR/91-274, Part V;
  • SOR/2001-197, s. 6;
  • SOR/2002-149, s. 10.

FEES

  •  (1) A fee of $600 must be paid before a licence is issued.

  • (2) A renewal fee of $600 must be paid before a licence is renewed.

  • (3) A renewal fee must be refunded if, prior to the 15th day of February preceding the day on which the licence will expire, the customs broker withdraws the request for renewal by notice in writing to the chief officer of customs.

  • SOR/92-186, s. 1;
  • SOR/2006-151, s. 4(E).

DURATION

 A licence, including a licence that has been renewed, expires on the 31st day of March next following the date on which the licence or its renewal is expressed to be effective.

TERMS AND CONDITIONS

 A licence authorizes the holder to transact business as a customs broker

  • (a) at the customs office specified in the licence, if the holder maintains at least one business office in the area served by that customs office;

  • (b) at any customs office specified by the Minister;

  • (c) at any customs office through a customs broker qualified under these Regulations whose licence specifies that customs office; and

  • (d) at any customs office, by electronic means in accordance with the technical requirements, specifications and procedures for electronic data interchange that are set out in the Electronic Commerce Client Requirements Document established by the Agency, as amended from time to time, if the holder maintains at least one business office in Canada.

  • SOR/98-236, s. 1;
  • SOR/2002-149, ss. 5, 11;
  • SOR/2006-151, s. 5.

TRANSACTION OF BUSINESS AS A CUSTOMS BROKER

 Every customs broker shall

  • (a) display prominently at each business office at which he transacts business as a customs broker

    • (i) where the customs broker is a partnership or a corporation, a sign bearing the name under which the partnership or corporation is authorized to transact business as a customs broker, and

    • (ii) the licence or a copy thereof;

  • (b) immediately notify in writing the chief officer of customs of any change

    • (i) in the address of a business office at which he transacts business as a customs broker,

    • (ii) in the legal or business name of the partnership or the corporation, where the customs broker is a partnership or a corporation,

    • (iii) in the membership of the partnership, where the customs broker is a partnership,

    • (iv) in the officers or directors of the corporation, where the customs broker is a corporation,

    • (v) [Repealed, SOR/2002-149, s. 6]

    • (vi) in the ownership of the business or corporation, where the customs broker is an individual or corporation, and

    • (vii) in the individuals meeting the knowledge requirement determined in accordance with section 4;

  • (c) furnish to the importer or exporter, in respect of each transaction made on their behalf, a copy of the customs accounting documents bearing the customs accounting number and official customs stamp, or a copy of the information transmitted by electronic means to the Agency; and

  • (d) promptly account to a client importer or exporter for funds received

    • (i) for the client from the Receiver General for Canada, and

    • (ii) from the client in excess of the duties or other charges payable in respect of the client’s business with the Canada Customs and Revenue Agency.

  • SOR/90-121, s. 2(F);
  • SOR/98-236, s. 2;
  • SOR/2002-149, ss. 6, 10, 11;
  • SOR/2006-151, s. 6.

EXAMINATIONS

  •  (1) The Customs Brokers Professional Examination shall be given at least once a year at any time that the Minister or a person designated by the Minister for the purpose of section 9 of the Act directs.

  • (2) Notice of the time and place of an examination shall be posted in the office of the chief officer of customs not less than 60 days before the date of the examination.

  • SOR/2002-149, s. 7;
  • SOR/2006-151, s. 7.

 Every individual proposing to write the examination must

  • (a) file an application in the prescribed form with the chief officer of customs at the nearest customs office at least 30 days prior to the date set for the examination; and

  • (b) at the time the application is made, pay a fee of $200.

  • SOR/2002-149, s. 8;
  • SOR/2006-151, s. 8.

RECORDS

  •  (1) Every customs broker shall keep the following information:

    • (a) records and books of account indicating all financial transactions made while transacting business as a customs broker;

    • (b) a copy of each customs accounting document made while transacting business as a customs broker and copies of all supporting documents, and a copy of the information transmitted by electronic means to the Canada Customs and Revenue Agency while transacting business as a customs broker;

    • (c) copies of all correspondence, bills, accounts, statements and other papers received or prepared by the customs broker that relate to the transaction of business as a customs broker; and

    • (d) separately, all of the records, books of account and copies referred to in paragraphs (a) to (c) relating to business transacted under paragraph 13(1)(c).

  • (2) Every customs broker shall retain the information for a period of six years after the importation of the goods to which the information relates.

  • (3) The information required by subsection (1) shall be kept in such a manner as to enable an officer to perform detailed audits and to obtain or verify the information.

  • (4) The information required by subsection (1) shall be kept for the period prescribed by subsection (2)

    • (a) in an original document;

    • (b) in a copy made by means of any photographic, microphotographic or image-processing process that is in accordance with National Standard of Canada CAN/CGSB-72.11-93, Microfilm and Electronic Images as Documentary Evidence, published by the Canadian General Standards Board in November 1993, as amended from time to time; or

    • (c) on machine-sensible data media if the media can be related back to the supporting source documents and are supported by a system capable of producing accessible and readable copy.

  • SOR/98-236, s. 3;
  • SOR/2002-149, ss. 9, 11.

CANCELLATION OR SUSPENSION

  •  (1) The Minister or a person designated by the Minister for the purposes of section 9 of the Act may suspend or cancel the licence of a customs broker if the customs broker

    • (a) contravened the provisions of an Act of Parliament or a regulation made thereunder relating to the importation or exportation of goods;

    • (b) acted to defraud Her Majesty or a client;

    • (c) suggested a plan for the evasion of any duties or other debts due to Her Majesty in right of Canada that involves the contravention of the provisions of an Act of Parliament or a regulation made thereunder;

    • (d) failed to comply with these Regulations;

    • (e) became insolvent or bankrupt;

    • (f) engaged in any dishonest conduct while transacting business as a customs broker;

    • (g) ceased to carry on business as a customs broker or failed to carry out his duties and responsibilities as a customs broker in a competent manner; or

    • (h) is no longer qualified under these Regulations.

  • (2) Before a licence is cancelled or suspended the Minister or a person designated by him for the purposes of section 9 of the Act shall cause to be given to the customs broker

    • (a) 30 days notice of the proposed cancellation or suspension;

    • (b) reasonable information concerning any allegations with respect to any of the grounds referred to in paragraphs (1)(a) to (h) on which the Minister proposes to cancel or suspend the licence; and

    • (c) a reasonable opportunity to respond and make representations as to why the licence should not be cancelled or suspended.

  • SOR/90-121, s. 3.

SURRENDER OF LICENCE

 Every customs broker shall forthwith surrender his licence to the chief officer of customs at the customs office specified in the licence if

  • (a) the licence has been cancelled; or

  • (b) the customs broker has ceased to transact business as a customs broker.

SCHEDULE

[Repealed, SOR/98-236, s. 4]