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Term Definition
Tariff item - HS Classification Number

The tariff item of the harmonized system (HS) classification number is the first 8 digits of the HS classification number.

Tariff Preference Level (TPL)

A Tariff Preference Level (TPL) is a mechanism that provides for duty at a preferential rate for particular goods up to a specified quantity, and at a higher rate of duty after that quantity has been exceeded.

Tariff Rate Quota (TRQ)

A tariff rate quota (TRQ) is a mechanism which provides for the application of a customs duty at a certain rate to imports of a particular good up to a specified quantity, and a different rate to imports of that good that exceed that quantity, during a specified time period.

Tariff Shift Rule

The tariff shift rules are technical rules that are applied systematically to determine the country or countries of origin to be marked on goods.

Temporary Importation

Temporary importations are goods imported, under authorization by Canada Border Services Agency (CBSA), for a limited period of time and specified use.

Test Value

A test is done to decide the acceptability of a transaction value in a sale between related persons. For example, the transaction value of identical goods or similar goods in a sale of those goods for export to Canada between a vendor and purchaser who are not related to each other at the time of the sale; the deductive value of identical goods or similar goods; or the computed value of identical goods or similar goods.

In order to use one of these values, the value must meet two criteria:

(a) the goods to which the test value relates must be exported at the same or substantially the same time as the goods being appraised; and

(b) the test value used must be the value for duty of the goods to which it relates.

Third Party Liability

In many cases, a service provider will pay a penalty that was issued to their client if the penalty was a result of an error made by the service provider. However, the importer remains liable and the contravention will remain on the importer's compliance record. It should be noted that in most cases the third party relies on information that is provided to them by others and that there is a responsibility on the part of the importer to ensure that the third party has all the necessary information and documentation to ensure compliance.

Through Bill of Lading

A through bill of lading is a document issued by a transportation company or a carrier to a shipper. It is a contract (or receipt for goods) that describes specific terms that the shipper and carrier have agree to regarding the transportation of the goods between specific locations. It often involves multiple carriers, and multiple modes of transport.

Throughout the Nomenclature

"Throughout the Nomenclature" means all through the Customs Tariff.

Time-Sensitive Goods

Examples of time-sensitive goods include tickets to an event, vaccines, fruit, vegetables, flowers, live animals, and meat. These are goods which will lose their value within a time frame.

Trade Agreement

A trade agreement is a legal agreement between two or more countries and is intended to provide benefits to its signatories. As well as reducing the rate of duty on imported goods, a trade agreement may also include provisions regarding:

  • government procurement (government contracts);
  • services;
  • intellectual property;
  • labour;
  • investment; and
  • the environment.
Trade Chain Partner

Trade Chain Partner (TCP) is an enterprise that is directly involved in the importation or cross-border movement of goods imported.

Trade Controls & Technical Barriers Bureau (TCTBB)

The Trade Controls & Technical Barriers Bureau authorizes the import and export of goods that are restricted by quotas and/or tariffs. It also monitors trade in certain goods and ensures the personal security of Canadians and citizens of other countries by restricting trade in dangerous goods and other materials.

Transaction Number

A transaction number is a unique 14-digit number in bar-code format that is a mandatory data element on all paper release documents.

Transaction Number Check Digit

The transaction number check digit is calculated using a formula provided by the Canada Border Services Agency (CBSA); the check digit verifies the transaction number and ensures that the number is not re-used within a specified time frame.

Transaction Value Method (Section 48 of the Customs Act)

This transaction value method is the primary method of valuation. Value for duty is based upon the price paid or payable for the goods being appraised. Certain adjustments, both additions and deductions, can be made to this price to arrive at the transaction value of the goods. If the transaction value meets certain criteria for acceptability set out in subsection 48(1) of the Customs Act, it will be the value for duty. The transaction value method can only be applied in cases where the goods being appraised must be the subject of a sale for export to Canada to a purchaser in Canada.

Transaction Value Method of Identical Goods (Section 49 of the Customs Act)

If the transaction value method cannot be applied, consideration must then be given to the method of valuation set out in section 49 of the Customs Act. In section 49 of the Act, value for duty is based upon the transaction value (that is, a value determined in accordance with section 48 of the Act) of goods that are identical to the goods being appraised. The transaction value method of identical goods can be adjusted if there are differences in trade level, quantities, or transportation costs between the identical goods and the goods being appraised. The value for duty of the goods being appraised would be the transaction value of the identical goods adjusted to account for the differences mentioned above.

Transaction Value Method of Similar Goods (Section 50 of the Customs Act)

When the transaction value method of identical goods cannot be applied, the method of valuation set out in section 50 of the Customs Act must then be considered. The transaction value method of similar goods is essentially the same as that contained in section 49 of the Customs Act except that the basis of value for duty is the transaction value of goods that are similar to the goods being appraised. This transaction value, which can be adjusted in the same way as shown in section 49 of the Act, would be the value for duty of the goods being appraised.


Transhipment as per the Customs Tariff Act, Section 18 states:

18.(1) Notwithstanding section 17, for the purposes of this Act, if goods that are exported to Canada from a country have been transhipped in an intermediate country, the goods are deemed not to have been shipped directly to Canada from the first-mentioned country if

(a) the goods do not remain under customs transit control in the intermediate country;

(b) the goods undergo an operation in the intermediate country other than unloading, reloading or splitting up of loads, or any other operation required to keep the goods in good condition;

(c) the goods enter into trade or consumption in the intermediate country; or

(d) the goods remain in temporary storage, under any conditions as may be prescribed, in the intermediate country for a period exceeding the prescribed period.