On August 19, 2016, the Canada Border Services Agency (“CBSA”) posted on its web-site a “Checklist for Exporting Commercial Goods from Canada”. On January 25, 2016 (updated August 19, 2016), the CBSA also published a “Step-by-Step Guide to Exporting Commercial Goods from Canada“.
The first thing is that exporters must know is what the CBSA considers to be “commercial goods” – this word is not defined in the Checklist or Step-by-Step Guide. The term “commercial goods” is defined in the Accounting for Imported Goods and Payment of Duties Regulations as “goods imported into Canada for sale or for any commercial, industrial, occupational, institutional or other like use.” There is no definition in the context of exports. However, one can expect the CBSA to consider “goods exported from Canada for sale or for any commercial, industrial, occupational, institutional or other like use” to be commercial goods for export purposes.
These CBSA’s new published documents should be helpful to SMEs who do not know the basics. The CBSA’s “Checklist for Exporting Commercial Goods” sets out the following considerations;
- Obtain your import/export business number from the Canada Revenue Agency.
- Identify what type of goods you want to export. You may also want to check that the goods you are exporting are admissible in the country of final destination.
- Verify whether the goods are controlled, regulated or prohibited to be exported by the Canada Border Services Agency (CBSA) or any other government department or agency. Obtain an export permit if required.
- Determine whether the goods need to be declared on an export declaration.
- If an export declaration is required, determine the appropriate export code for the goods from Statistics Canada’s Canadian Export Classification.
- Select the method of shipping (by air, highway, marine, post or rail) and identify the export reporting time frame for that method if required.
- Complete an export declaration. If the goods are not subject to an export declaration, advise your carrier and indicate “no declaration required (NDR)” with the proper explanation or corresponding numerical code on the transport documentation (cargo control document, manifest, bill of lading, etc.).
- In most cases, submit the export declaration electronically by using the Canadian Automated Export Declaration (CAED) or G7 Electronic Data Interchange (EDI) or, if necessary, submit a paper B13A, Export Declaration.
- If a proof of export is required and electronic permits reporting is not available, present a paper copy of the electronic export declaration and the other government department(s) permit at the CBSA office closest to the point of exit.
- Keep records of your exports for a period of six years following the date of export.
- Be aware that the CBSA uses the Administrative Monetary Penalty System (AMPS) to assess monetary penalties against businesses that do not comply with customs legislation.
The CBSA’s Step-by-Step Guide adds the following items to the checklist:
- Determine the country of origin for the goods you are exporting.
- Ensure that the goods you are exporting are allowed entry into a receiving country.
- Provide a certificate of origin to the receiver if requested (and if applicable).
- Keep all records pertaining to the export for 6 years.