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Accounting for Imported Goods and Payment of Duties Regulations (SOR/86-1062)

Regulations are current to 2021-11-17 and last amended on 2018-06-12. Previous Versions

PART I[Repealed, SOR/2006-152, s. 2] (continued)

Release of Goods Imported by Courier Prior to Accounting and Prior to Payment of Duties (continued)

 Commercial goods imported by courier may be released pursuant to subsection 32(4) of the Act prior to the accounting required under subsection 32(1) of the Act and prior to the payment of duties required under paragraph 32(5)(b) of the Act on condition that

  • (a) the courier has a written undertaking from the importer or the importer’s agent stating that the commercial goods will be accounted for and that the duties thereon will be paid within the prescribed time;

  • (b) the importer or owner of the commercial goods has given security in accordance with section 11;

  • (c) the courier has, within the 30 days preceding the release of the commercial goods and within the two business days after the date of the report made pursuant to paragraph 12(3)(b) of the Act, provided the importer or the importer’s agent with a copy of that report and any documentation accompanying the shipment of the commercial goods; and

  • (d) upon request of the Minister, Commissioner or a Director General of the Agency, the courier presents evidence indicating that the courier meets the conditions set out in paragraph 7.1(b) and paragraphs (a) and (c).

  • SOR/95-419, s. 3
  • SOR/2005-210, s. 2

 Casual goods imported by courier may be released pursuant to subsection 32(4) of the Act prior to the accounting required under subsection 32(1) of the Act and prior to the payment of duties required under paragraph 32(5)(a) of the Act on condition that

  • SOR/95-419, s. 3

 When goods have been released in accordance with sections 7.1 to 7.3, the person required by subsection 32(5) of the Act to account for the goods shall do so no later than the 24th day of the month following the month in which the goods are released.

  • SOR/95-419, s. 3
  • SOR/2011-208, s. 4

 Where goods have been accounted for in accordance with section 7.4, the person required by subsection 32(5) of the Act to pay the duties thereon shall do so no later than the last business day of the month following the month in which the goods are released.

  • SOR/95-419, s. 3

Release of Goods Imported as Mail

 Goods imported as mail may be released under subsection 32(4) of the Act prior to the accounting required under subsection 32(5) of the Act and prior to the payment of duties thereon and without the giving of security pursuant to section 35 of the Act, except where the goods

  • (a) are commercial goods that have an estimated value for duty exceeding $2,500; or

  • (b) are prohibited, controlled or regulated by an Act of Parliament that prohibits, controls or regulates the importation of goods or a regulation made pursuant to such an Act.

  • SOR/92-410, s. 4
  • SOR/96-150, s. 6
  • SOR/2014-271, s. 4

 [Repealed, SOR/98-186, s. 1]

 Subsections 147.1(3) to (13) of the Act do not apply to mail where the goods imported as mail are

  • (a) goods not charged with duties;

  • (b) goods in respect of which all the duties are remitted;

  • (c) goods classified under tariff item No. 9816.00.00 in the List of Tariff Provisions; or

  • (d) commercial goods that have an estimated value for duty exceeding $2,500.

  • SOR/92-410, s. 4
  • SOR/96-150, s. 8
  • SOR/98-53, s. 7
  • SOR/2014-271, s. 5

 The Canada Post Corporation shall pay, by cash or certified cheque, the duties required under subsection 147.1(6) of the Act, to be paid in respect of goods imported as mail not later than the last business day of the month following the month in which the release period ended.

  • SOR/92-410, s. 4

Release of and Interim Accounting for Commercial Goods

 Subject to sections 7, 12 and 14, commercial goods may be released under subsection 32(2)(a) of the Act prior to the accounting required under subsection 32(1) of the Act and may, pursuant to section 33 of the Act, be so released prior to the payment of the duties thereon on condition that

  • (a) the importer or owner of the commercial goods gives or has given security in accordance with section 11; and

  • (b) the importer or owner of the commercial goods makes the interim accounting referred to in subsection 32(2)(a) of the Act.

  • SOR/88-515, s. 6
  • SOR/93-555, s. 1
  • SOR/97-112, ss. 2, 7(T)
  • SOR/2005-383, s. 13

Final Accounting and Payment of Duties for Commercial Goods After Interim Accounting (No CSA Authorization)

 Sections 10 and 10.1 do not apply to a CSA importer.

  • SOR/2005-383, s. 6

 Where commercial goods are released under paragraph 32(2)(a) of the Act in accordance with section 9, the person required by the Act to account for the goods shall do so in the manner described in paragraph 32(1)(a) of the Act,

  • (a) in the case of goods that have an estimated value for duty exceeding $2,500, within five business days after their release; and

  • (b) in the case of goods that have an estimated value for duty not exceeding $2,500, not later than the 24th day of the month following the month of their release.

  • SOR/88-515, ss. 7, 11
  • SOR/91-83, s. 2
  • SOR/94-570, s. 1
  • SOR/96-150, s. 9
  • SOR/97-112, ss. 3, 7(T)
  • SOR/2005-210, s. 3
  • SOR/2005-383, ss. 7, 13
  • SOR/2006-152, s. 5
  • SOR/2014-271, s. 6

 Where commercial goods are released under section 33 of the Act in accordance with section 9, the person required to pay duties on those goods shall do so no later than the last business day of the month in which the billing period ends.

  • SOR/91-83, s. 2
  • SOR/91-280, s. 1
  • SOR/92-129, s. 2
  • SOR/93-555, s. 2
  • SOR/97-112, ss. 4, 7(T)
  • SOR/2005-383, s. 8
  • SOR/2006-152, s. 5

Release of Eligible Goods Under Paragraph 32(2)(b) of the Act

[
  • SOR/2006-152, s. 6
]

 Eligible goods may be released under paragraph 32(2)(b) of the Act prior to the accounting required under paragraph 32(1)(a) of the Act and may be released under subsection 33(1) of the Act prior to the payment of the duties required under paragraph 32(1)(b) of the Act on condition that

  • (a) the importer of those goods is a CSA importer;

  • (b) the carrier that transports those goods is a CSA carrier;

  • (c) when reporting the goods, the operator of the conveyance provides in bar-coded format the CSA carrier’s carrier code as assigned by the Agency and the CSA importer’s business number; and

  • (d) in the case of eligible goods transported into Canada by a commercial highway conveyance as defined in section 1 of the Presentation of Persons (2003) Regulations, the driver of the conveyance holds an authorization under those Regulations.

  • SOR/2005-383, s. 9
  • SOR/2006-152, s. 7

Final Accounting and Payment of Duties for Commercial Goods Under Subsection 32(2) of the Act (CSA Importer)

  •  (1) Every CSA importer shall choose one of the following periods for the purposes of accounting for commercial goods that have been released under subsection 32(2) of the Act:

    • (a) the period beginning on the first day of a month and ending on the last day of the month; or

    • (b) the period beginning on the 19th day of a month and ending on the 18th day of the following month.

  • (2) A CSA importer who chooses the period set out in paragraph (1)(a) shall account for goods released in that period by the 18th day of the month following the month in which the goods were released.

  • (3) A CSA importer who chooses the period set out in paragraph (1)(b) shall account for goods released in that period by the last business day of the month in which that period ends.

  • (4) After a CSA importer accounts for goods using a period set out in paragraph (1)(a) or (b), the CSA importer shall use the same period to account for any other commercial goods that are released under subsection 32(2) of the Act.

  • SOR/2005-383, s. 9

 Despite section 10.3, a CSA importer may account for commercial goods that have an estimated value for duty not exceeding $2,500 by the 24th day of the month following the month in which those goods were released under subsection 32(2) of the Act.

  • SOR/2006-152, s. 8
  • SOR/2014-271, s. 7
  •  (1) The duties on commercial goods imported by a CSA importer and that are released under subsection 32(2) of the Act are payable

    • (a) in the case of goods released during the first day to the 18th day of a month, no later than the last business day of that month; and

    • (b) in the case of goods released during the 19th day to the last day of a month, no later than the last business day of the following month.

  • (2) Every CSA importer shall include in the importer’s first payment of duties after receiving the CSA authorization the duties payable on commercial goods that have been released under paragraph 32(2)(a) of the Act but not accounted or paid for prior to the issue of the CSA authorization.

  • SOR/2005-383, s. 9
  • SOR/2006-152, s. 9

CSA Authorizations

  •  (1) Subject to subsection (4), the Minister shall issue a customs self-assessment authorization to an importer or carrier who

    • (a) applies to the Minister in the prescribed form;

    • (b) in the case of an importer, submits the information described in Schedule 2 and meets the requirements of subsection (2); and

    • (c) in the case of a carrier, submits the information described in Schedule 3 and meets the requirements of subsection (3).

  • (2) For the purposes of paragraph (1)(b), an importer shall meet the following requirements:

    • (a) if the importer is an individual, the importer ordinarily resides in Canada or the United States or, if the importer is a partnership, the importer has at least one partner who is an individual who ordinarily resides in Canada or the United States;

    • (b) if the importer is a corporation, the importer has its head office in Canada or the United States or operates a branch office in Canada or the United States;

    • (c) the importer has not contravened program legislation as defined in section 2 of the Canada Border Services Agency Act;

    • (c.1) the importer does not have a criminal record;

    • (c.2) the importer is not a debtor as defined in section 97.21 of the Act;

    • (d) the importer is solvent;

    • (e) the importer has imported commercial goods into Canada at least once prior to the 90 days before the day on which the application was received;

    • (f) the importer gives security in accordance with section 11;

    • (g) the importer’s books, records and business processes have the internal controls necessary to permit the Agency to determine if the importer is in compliance with the Act and its Regulations; and

    • (h) the importer is able to electronically transmit to the Agency, in accordance with the technical requirements, specifications and procedures for electronic data interchange that are set out in the Electronic Commerce Client Requirements Document, the information that is submitted when accounting for goods released under subsection 32(2) of the Act and any adjustments to that information.

    • (i) [Repealed, SOR/2006-152, s. 10]

  • (3) For the purposes of paragraph (1)(c), a carrier shall meet the following requirements:

    • (a) if the carrier is an individual, the carrier ordinarily resides in Canada or the United States or, if the carrier is a partnership, the carrier has at least one partner who is an individual who ordinarily resides in Canada or the United States;

    • (b) if the carrier is a corporation, the carrier has its head office in Canada or the United States or operates a branch office in Canada or the United States;

    • (c) the carrier has not contravened program legislation as defined in section 2 of the Canada Border Services Agency Act;

    • (c.1) the carrier does not have a criminal record;

    • (d) the carrier is solvent;

    • (e) the carrier has transported commercial goods to or from Canada at least once prior to the 90 days before the day on which the application was received;

    • (f) the carrier gives security in accordance with the Transportation of Goods Regulations; and

    • (g) the carrier’s books, records and business processes have the internal controls necessary to permit the Agency to determine if the carrier is in compliance with the Act and its Regulations.

    • (h) [Repealed, SOR/2006-152, s. 10]

  • (4) The Minister shall refuse to issue a CSA authorization if the applicant provides false or misleading information.

  • SOR/2005-383, s. 9
  • SOR/2006-152, s. 10
  • SOR/2011-208, s. 5(F)
  • SOR/2013-116, s. 1
  • SOR/2018-121, s. 3
  •  (1) The Minister may suspend the CSA authorization of a CSA importer or CSA carrier if

    • (a) in the case of an importer, the importer no longer meets the requirements set out in paragraph 10.5(2)(f), (g) or (h);

    • (b) in the case of a carrier, the carrier no longer meets the requirements set out in paragraph 10.5(3)(f) or (g);

    • (c) the importer or carrier, as the case may be, fails to maintain its security;

    • (d) the importer or carrier, as the case may be, fails to advise the Minister of any change in the information referred to in paragraph 10.5(1)(b) or (c) as required by section 10.8 or 10.81, as the case may be;

    • (e) the importer or carrier, as the case may be, becomes insolvent;

    • (f) in the case of an importer, the importer has imported goods that were released under paragraph 32(2)(b) of the Act that were not eligible goods or that were transported by carriers that did not hold a CSA authorization;

    • (g) in the case of a carrier, the carrier has transported goods into Canada that were released under paragraph 32(2)(b) of the Act that

      • (i) were not eligible goods,

      • (ii) were transported into Canada by a commercial highway conveyance as defined in section 1 of the Presentation of Persons (2003) Regulations operated by a driver who did not hold an authorization under those Regulations, or

      • (iii) were delivered somewhere other than the place of business of the CSA importer, owner or consignee to which delivery was authorized;

    • (h) in the case of a carrier, the carrier fails to comply with section 10.82; or

    • (i) the importer or carrier, as the case may be, has been convicted of an offence under the Act or its regulations.

  • (2) The Minister may cancel the CSA authorization of a CSA importer or CSA carrier if

    • (a) the authorization has been obtained on the basis of false or misleading information;

    • (b) in the case of an importer, the importer no longer meets the requirements set out in one or more of paragraphs 10.5(2)(a) to (c.2);

    • (c) in the case of a carrier, the carrier no longer meets the requirements set out in one or more of paragraphs 10.5(3)(a) to (c.1);

    • (d) the importer or carrier, as the case may be, so requests; or

    • (e) in the case of a CSA authorization that has been suspended, the importer or carrier, as the case may be, has not corrected the matter that gave rise to the suspension within 30 days after the suspension has taken effect or, if a longer period has been allowed under subsection (3), within that period.

  • (2.1) In deciding whether to suspend or cancel the CSA authorization of a CSA importer or CSA carrier, the Minister is to consider

    • (a) the severity of the breach and whether or not it was rectified soon after it was discovered;

    • (b) the economic impact of the suspension or the cancellation; and

    • (c) the security and safety of Canadians.

  • (3) If it is not possible for an importer or carrier to correct the matter that gave rise to the suspension within 30 days after the suspension has taken effect, the Minister, on an application made within those 30 days, shall allow a longer period to correct the matter.

  • SOR/2005-383, s. 9
  • SOR/2006-152, s. 11
  • SOR/2011-208, s. 6
  • SOR/2018-121, s. 4
 
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