Glossary

Looking for a term or acronym you're not familiar with? Find it in this glossary! If there is a term we're missing, let us know at cscb@cscb.ca.
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Term
Definition
Last In, First Out (LIFO) - Fungible Goods

The  Last In, First Out (LIFO) method means that the origin of fungible materials last received in inventory is considered to be the origin of fungible materials first withdrawn from inventory. In other words, the origin of the goods that are placed last in inventory is the origin for the goods that are removed first from inventory.

Law

A “law” can refer to the following:

  • a rule of conduct or procedure established by custom, agreement, or authority;
  • a legal system;
  • a set of rules or principles dealing with a specific area of a legal system; and
  • any written or positive rule or collection of rules prescribed under the authority of the state or nation.
Lead Sheet

A lead sheet is a form used to indicate the exception for filing a paper entry instead of filing an electronic entry to the Canada Border Services Agency (CBSA).

Least Developed Country Tariff (LDCT)

The Least Developed Country Tariff (LDCT) is a tariff treatment accorded to countries identified by the United Nations as requiring special attention due to their economic status.

Legislation

Legislation are written laws (Acts) made by Parliament, provincial legislatures, or by a person or body that has law-making authority.

Legislative Reference

Legislative reference refers to the legal authority that allows the correction to be made, for example: 32.2(6) of the Customs Act.

Lesser of Two Duties

To determine the amount of customs duties subject to claim under the Drawback Program or to determine the amount of customs duties deferrable under the Duties Relief Program, companies must establish two duty amounts:

  • (a) the amount of customs duties paid or owed on imported goods entering Canada;
  • (b) the amount of customs duties paid on the goods entering the other Canada US Mexico Agreement (CUSMA)  country.
  • Note: The duties paid on the goods entering the other CUSMA country must be determined from that country's customs documentation and be converted to Canadian dollars (refer to section, "Satisfactory Evidence"). Examples of the calculations required for drawbacks and duties relief are contained in Appendix A of D7-4-3.
Letter of Authorization

Request to change the importer name or business number must be accompanied by a letter of authorization from the importer/broker explaining the reason for the change. When the broker presents the letter, it must indicate that the incorrect importer has been advised of the change.

Letter of Credit

A letter of credit is a guarantee of payment. It is a commitment by a financial institution to pay an agreed amount to a vendor under precise terms and conditions.

Licensed Customs Broker (LCB)

A licensed customs broker is an individual, partnership, or corporation, licensed by the Canada Border Services Agency (CBSA) in accordance with the Customs Broker Licensing Regulations, who acts as agent to transact business with the CBSA on behalf of the importer or owner. While in most cases, any authorized agent can transact business with the CBSA, only a licensed customs broker can account for goods and pay duties and taxes subject to section 32 of the Customs Act, as agent for the importer or owner, unless the person does so on a casual basis without compensation, charge or fee.

Liquidation

Liquidation occurs when US Customs Border Patrol’s (CBP) assessment of the rate and amount of duty is complete.  The estimated duties are either confirmed as correct, or not.

List of Countries and Applicable Tariff Treatments

The List of Countries and Applicable Tariff Treatments contains an alphabetical list of countries and territories that are beneficiaries of the Most-Favoured-Nation tariff treatment (MFN) as well as any other tariff treatments.

CSV