Clients Affected: All importers and brokers who use EDI to transmit their trade data.
Further to Customs Notice CN18-16 pertaining to United States Surtax Remission Order please note the following for completion of the CADEX formatted records:
Accounting for the relief of surtax where the United States Surtax Remission Order is applicable at time of importation for goods processed in the commercial stream
13. Surtax imposed is still required to be accounted for as described in the United States Surtax Order (Steel and Aluminum) or the United States Surtax Order (Other Goods) and in accordance with Customs Notice CN18-08, with the following modification. Specifically, the amount of surtax owing and therefore remitted, is still required to be entered in Field 39 - SIMA Assessment of Form B3-3, however this amount is not to be included in Field 41 -Value for Tax.
14. For the relief of the surtax, the remission order number is to be entered in Field 26 – Special Authority of Form B3-3.
15. When a surtax amount is relieved by a remission order, code “50” is to be used in Field 32 - SIMA Code of Form B3-3.
Example :
On the Form B3-3 the remission order number is entered in Field 26 - Special Authority, 50 is entered in Field 32 - SIMA Code, an amount of $150 entered in Field 37 - Value for Duty, a surtax amount of $15 is entered in Field 39 - SIMA Assessment, an amount of $150 is entered in Field 41 - Value for Tax, and an amount of $7.50 is entered in Field 42 - GST.
Note: This example is for illustrative purposes on how to complete Form B3-3 only. The HS code and surtax rate may not reflect actual goods subject to surtax and also subject to the United States Surtax Remission Order.
CADEX FORMAT
- The KI30 record would contain the remission order number in the Special Authority field
- The KI30 record would contain 050 in the SIMA Code field
- The KI30 record would contain 150.00 in the Value For Duty field
- The KI30 record would contain 15.00 in the SIMA Assessment field
- The KI50 record would contain 150.00 in the Value For Tax field
- The KI50 record would contain 7.50 in the GST field
- The KI90 record would contain 0 in the Total SIMA assessment field