1. The purpose of this Customs Notice is to advise of the process that Trade Chain Partners (TCP) must follow to import goods subject to Tariff Rate Quotas (TRQ) into a Customs Bonded Warehouse (CBW). This is not a change in policy, but a clarification of existing application. This notice applies to all goods subject to TRQs.
2. Customs Notice 25-24: Order Imposing a Surtax on the Importation of Certain Steel Goods (the Order), provides further information on surtax and TRQs when importing certain steel goods. For all other Customs Notices, please see the following link: Customs Notices.
3. The CBSA’s policy regarding TRQs and CBWs has not changed; goods subject to TRQs entered into a CBW must have a valid shipment-specific import permit issued by Global Affairs Canada (GAC) in order to be accounted for at the "within access" rate of duty. The valid shipment-specific import permit may be received after the goods are entered into the CBW provided it covers the date of exit (i.e., final release) from the CBW.
4. At the time of final accounting, to obtain the ‘’within access’’ rate of duty, importers must have a shipment-specific import permit that has a validity period covering the date on which the goods exit the warehouse. For CBWs, final accounting takes place on the same day the goods are released.
5. If goods are entered into a CBW under a General Import Permit (GIP), the surtax should be applied to the goods and identified on the Type 10 Commercial Accounting Declaration (CAD) upon entry, only the applicable tariff classification may be used. Once a shipment-specific import permit with a validity period covering the date the goods exit the CBW has been obtained, the TCP must submit an adjustment to amend the original Type 10 CAD, update the shipment-specific import permit number, update the applicable duties and if required the tariff classification/harmonized system code. Only then can the importer submit an ex-warehouse movement (e.g., Type 20 or 21) reflecting “within access”. It is not possible for the TCP to submit a Type 20 or 21 indicating within access if the Type 10 has not been amended first to correspond.
6. If the TRQ shipment-specific import permits are already available when goods enter a CBW, the appropriate shipment-specific import permit number and tariff classification/harmonized system code can be entered on the CAD in the CBSA Assessment and Revenue Management (CARM) system in the special authority permit field under the commodities details section. When removing the goods from the warehouse, the same TRQ shipment-specific import permit is entered on the CAD in the applicable field to identify the goods eligible for the “within access” rate of duty. In all cases, the shipment-specific import permit’s validity period must cover the date the goods exit the warehouse.
Examinations and verifications
7. Imported goods may be subject to examination from the time of importation to post-release verification for compliance with the TRQ shipment-specific import permit, tariff classification, valuation, origin, and any other applicable provisions administered by the CBSA. In cases of non-compliance, in addition to the assessment of applicable duties, including surtax and taxes, penalties may be imposed, and interest may be assessed, where applicable.
8. For further clarity, goods entered into a CBW with a TRQ shipment-specific import permit that subsequently expires during the storage period because the goods were not released before the end of the validity period, no longer qualify for the “within access” rate of duty. A type 10 adjustment must be submitted to correctly reflect the goods “over access” status. Goods stored on an invalid shipment-specific import permit, and/or goods removed as “within access” after a shipment-specific import permit has become invalid, are considered non-compliant and will be subject to the assessment of applicable duties and taxes, and may be subject to enforcement action, including penalties.
9. Where there is overpayment of surtax in error, an importer may submit an adjustment to request a refund of the amount overpaid. For instructions on how to submit an adjustment for commercial goods, please refer to Memorandum D17-2-1: Adjusting Commercial Accounting Declarations. For instructions on how to submit a refund for casual goods, please refer to Memorandum D6-2-6: Refund of Duties and Taxes on Non-Commercial Importations.
10. For more information, please see the following from GAC: Notice to Importers: Item 82 – Steel goods
11. Refer to Memorandum D16-1-1: Information pertaining to the application, collection, and adjustment of a surtax, for additional information concerning the administration and enforcement of surtax orders under sections 53(2), 55(1), 60, 63(1), 68(1), 77.1(2), 77.6(2) or 78(1) of the Customs Tariff.
12. For questions related to the policy outlined in the Order Imposing a Surtax on the Importation of Certain Steel Goods, please contact the Department of Finance: [email protected].
13. For questions related to shipment-specific import permit issuance or administration of the quotas, please contact GAC: [email protected].
14. For more information call the border information services at 1-800-461-9999 (toll-free in Canada and the USA). If calling outside Canada and the United States, call 1-204-983-3500 or 1-506-636-5064. Long distance charges will apply. Our automated telephony service provides general information in English and French on CBSA programs, services and initiatives through recorded scripts. Live agents are also available to assist you Monday to Friday 8 am to 4 pm local time, as per time zones in Canada and USA (closed on federal statutory holidays). TTY is also available within Canada: 1-866-335-3237. Alternatively, you may send your enquiries using our CARM client support contact form.
https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn26-20-eng.html