Clients Affected: All importers and brokers who use EDI to transmit their trade data.

Further to Customs Notice CN18-08 pertaining to Surtaxes Imposed on Certain Products Originating in the United States https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn18-08-eng.html please note the following for completion of the Cadex formatted records:

Calculation of Surtax
The amount of surtax payable is calculated as a percentage based on the value for duty of the imported good.

Example 1:

The value for duty (VFD) of an imported good subject to a surtax is $150 CAD. The imported good has a Most Favoured Nation (MFN) duty rate of zero per cent. The applicable surtax is 10 per cent, as per the Schedule to the United States Surtax Order (Other Goods).

The amount of surtax is calculated as follows: $150 (VFD) x 0.10 (per cent surtax) = $15 (surtax payable).

For the B3-3 Canada Customs Coding Form completion, the VFD of $150 (field 37). The customs duties amount is $ 0 (field 38). The surtax is $15 (field 39). The value for tax is $165 (field 41).

Importers must report the surtax order code in field 32 “SIMA Code” of Form B3-3, Canada Customs Coding, by inserting code "51" for the surtax.

• The KI30 record would contain the VFD of $150 in the Value for Duty field 
• The KI40 record would contain the customs duties of $0 in the Customs Duty Amount field
• The KI30 record would contain surtax of $15 in the  SIMA Assessment field  
• The KI30 record would contain 51 in the SIMA code field
• The KI50 record would contain the value for tax of $165 in the Value For Tax field
• The KI90 record would contain the total SIMA Assessment of $15 in the Total SIMA assessment field

Example 2:

The same imported good is subject to an MFN duty rate of 8 per cent.

The amount of customs duties is calculated as follows: $150 CAD (VFD) x 0.08 (rate of Customs duty) = $12 (Customs duties payable)

The amount of surtax is calculated as follows:

$150 (VFD) x 0.10 (per cent surtax) = $15 (surtax payable)

For the B3-3 Canada Customs Coding Form completion, the VFD is $150 (field 37). The customs duties is $12 (field 38). The surtax is $15 (field 39). The value for tax is $177 (field 41).

• The KI30 record would contain the VFD of $150 in the Value for Duty field 
• The KI40 record would contain the customs duties of $12 in the Customs Duty Amount field
• The KI30 record would contain surtax of $15 in the  SIMA Assessment field  
• The KI30 record would contain 51 in the SIMA code field
• The KI50 record would contain the value for tax of $177 in the Value For Tax field
• The KI90 record would contain the total SIMA Assessment of $15 in the Total SIMA assessment field.