1. The purpose of this notice is to provide clarification on carrier code eligibility and on the removal of carrier codes for non-eligible parties in the marine mode. For more information, consult the Marine Carrier Codes Application Process and carrier code application form Application to Transact Marine Operations With the Canada Border Services Agency.
2. Carriers, regardless of how often they cross the Canadian border with commercial goods, require a carrier code in order to transact business with the Canada Border Services Agency (CBSA).
3. Clients whose carrier codes may be subject to cancellation as they no longer meet the eligibility requirements, to the best of the CBSA's knowledge, will be receiving a letter by mail outlining next steps.
4. Due to complexities in the marine mode, there has been confusion around eligibility for a carrier code. As a result, the definition has been further clarified.
5. For the purpose of assessing carrier code eligibility, a carrier is a person involved in international commercial transportation who operates a conveyance used to transport specified goods to or from Canada. To operate a conveyance means to have legal custody and control of the conveyance:
- (a) To have legal custody means to be:
- (i) an owner,
- (ii) a lessee under a lease or agreement of hire,
- (iii) a charterer under an agreement of hire,
- (iv) a purchaser under a conditional sale or hire purchase agreement that reserves to the vendor the title to the conveyance until the purchase price is paid or certain conditions are performed, or
- (v) a mortgagor.
- (b) Control is defined as the person responsible for the decisions concerning the employment of the conveyance, and therefore the person who decides how and where that conveyance is employed.
- (c) It must be the lowest legal entity who has legal custody and control of the conveyance that must obtain and use their carrier code.
- (d) Specified goods means commercial goods, goods that are or will be imported to Canada for a fee or empty cargo containers that are not for sale.
6. Clients who do not meet the criteria outlined in paragraph 5 are not eligible to receive or hold a carrier code. Clients who are not eligible include, but are not limited to:
- (a) Marine agents
- (b) Subsidiaries of foreign companies who represent their shipping lines in Canada
- (c) Management companies responsible for the day to day running of a vessel
- (d) Vessel owners who do not play a role in the employment of the vessel (e.g. banks).
7. It is the responsibility of the applicant to demonstrate to the CBSA that the person is in fact a carrier as per the above definition.
8. The definition of a carrier for carrier code eligibility includes carriers coming to or from Canada. At this time, vessels coming to Canada in ballast are allowed to report on paper, and if they do not have their own carrier code, they are allowed to use a 9ITN generic carrier code. In ballast carriers who do have their own carrier code are required to use their own code at time of report.
9. The same rule applies at time of export. If an exporting carrier does not have their own carrier code and reported into Canada using a 9ITN, they are to use the 9ITN at time of export. If an exporting carrier does have their own carrier code, they are required to use their own carrier code at time of export.
10. Carriers coming to Canada in ballast do have the option, at this time, of transmitting their advance commercial information (ACI) electronically to CBSA. If a carrier chooses this option, they must also report electronically by sending a Conveyance Arrival Certification Message (CACM). To take advantage of the electronic process, a carrier must have a valid carrier code. The 9ITN cannot be used. In this scenario, the carrier must also use their own carrier code at time of export.
11. The CBSA strongly recommends that marine carriers apply for a bonded carrier code, as a bond is required any time unreleased goods move beyond the first port of arrival (FPOA). This includes scenarios such as emergency stops and Canadian Food Inspection Agency's gypsy moth inspections when the FPOA is changed. Carriers who do not have a bond in such scenarios will be unable to proceed until they have obtained a bond and completed the process of converting their carrier code from non-bonded to bonded status. This process can take up to three business days following the receipt by the CBSA of the complete bonded status change application form and bond.
12. Inquiries related to this notice may be directed to:
Canada Border Services Agency
Email: [email protected].
This notice is available on the CBSA website at:
http://www.cbsa-asfc.gc.ca/publications/cn-ad/cn14-029-eng.html