The World Trade Organization (WTO) is an international organization. It was established on January 1, 1975, and is currently based in Geneva, Switzerland. The WTO deals with the rules of trade between nations. It is the successor organization to the General Agreement on Tariffs and Trade (GATT), which was created in 1948.

For the purpose of the Canadian Goods Abroad Program, work refers to an operation that changes the shape of a good or imparts new and different characteristics to a good that become an integral part of the good itself and did not exist in the good before the process was applied to it. For example, fabric that is exported and made into shirts is considered work since it changes the shape of a good.

Where a good retains its essential characteristics after being processed, the process is considered work if the process is a step in the manufacturing process. An operation or process that is part of the production or assembly of an unfinished good into a finished good is also considered to be work. For the purposes of the Canadian Goods Abroad Program, an alteration is considered to be work.

A wholesaler's licence ("W" licence) allows the purchase of goods (subject to excise tax) for resale without paying excise tax at the time of purchase or importation. In this case, the excise tax is collected and remitted when the goods are sold.

The Voluntary Disclosure Program (VDP) is a mechanism intended to contribute to voluntary compliance with the accounting and payment of duty and tax provisions under the Customs Act, Customs Tariff Act and Excise Tax Act. Its application is limited to penalty and interest charges resulting from infractions of the provisions governing accounting and payment.

With the introduction of the Commerical Accounting Document (CAD), corrections and adjustments will be recorded as new versions of the original CAD, where the transaction number submitted on the original CAD remains for life, no matter how many versions are created.  All previous versions of the CAD are recorded in the transaction history for audit purposes.

The value for duty code is a two-digit code. It is included in the import data submitted to the Canada Border Services Agency (CBSA) and indicates the method of valuation used to determine the value for duty. The first digit signifies the relationship between the vendor and the importer, and the second indicates the method of valuation used.

Valuation is the process and methods used to determine the value of imported goods in order to assess duties and taxes.

A US Export Licence is an official document issued by the US Commerce Department authorizing the export of specific commodities to a specific country within a specified time period.

The United Nations Security Council is responsible for maintaining international peace and security. When complaints of threats to peace are brought to the attention of the council, and an agreement for peace does not seem possible, the council will suggest means to a peaceful settlement. If a dispute leads to fighting, the council can issue cease-fire directives, send UN peacekeeping forces, or decide upon economic sanctions.

An undervaluation is a contravention of section 32 of the Customs Act where goods are declared at a false value to the Canada Border Services Agency (CBSA) to evade lawfully payable duties.

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.

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.

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.

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.

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.

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

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.

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

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.

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

Surety is defined as security against loss or fulfillment of an obligation, for example, a bond.

A sufferance warehouse is a privately owned and operated facility licensed by the Canada Border Services Agency (CBSA) for the control, short-term storage, and examination of in-bond goods until they are released by CBSA or exported from Canada.

The subheading of a harmonized system (HS) classification number is the first 6 digits of the HS classification number.

The Statutes of Canada (S.C.) are a compilation of all Canadian federal laws that have been passed by Parliament since 1867.

To assist Customs Trade Partnership Against Terrorism (CTPAT) participants in securing their supply chain, CBP developed an electronic mechanism called the Status Verification Interface (SVI). SVI is a tool used to verify membership in CTPAT. The SVI allows consenting certified CTPAT partners to verify the participation status of other consenting certified CTPAT partners. Each party must have consented to the release of their company name to other CTPAT partners. A CTPAT "Consent to Use Company Name" waiver must be completed to permit the release of one's CTPAT status to other consenting CTPAT partners.

For security and confidentiality purposes, CBP does not share any information regarding CTPAT application or partnership status with anyone outside the company’s authorized officials.

The Statement of Account (SOA) is an electronic statement for importers (excluding those under the Customs Self-Assessment Program) and licensed customs brokers that is issued on a monthly basis. The SOA displays account balances for a billing period, and includes a daily summary of accounting transactions made during the billing period that are due on the SOA payment due date, other accounting transactions that are due on their respective payment due dates and accounting transactions under review along with their respective payment due dates.

The specified rate of interest is the rate of interest, expressed as a percentage per year, equal to 6% per year plus the prescribed rate.

The prescribed rate of interest is the rate applied when calculating interest on payments to the federal government and is based on the average yield of Government of Canada Treasury Bills sold in the first month of the preceding fiscal quarter.

The Special Import Measures Act (SIMA) is legislation to help protect Canadian producers from harm or injury caused when foreign exporters dump goods into Canada or when foreign governments subsidize exported goods.

The Single Window Initiative (SWI) streamlines the sharing of commercial data between the Canada Border Services Agency (CBSA) and other government departments. The nine government departments and agencies that are SWI participants are called PGAs, or Participating Government Agencies.

A Single Program Verification (SPV) is:

• traditionally referred to as New Verification Process (NVP),
• driven through priorities assigned through Head Quarters (HQ) from other program lines and regionally generated cases,
• primarily done through desk verification (refers to not being on-site at the client’s premises), and
• performed on-site, if deemed necessary.

SPVs look at a single issue within a sample of transactions.

In special circumstances, the Canada Border Services Agency (CBSA) will permit a client/broker to short pay, for example: in the case of a glaring clerical error where the error can cause financial hardship and the client/broker can justify the delay in requesting the correction.

If an importer is Goods and Services Tax (GST) registered, the tax is payable when the goods are brought into a participating province. This amount is included on the importer’s Goods and Services Tax/Harmonized Sales Tax (GST/HST) return. The importer may be entitled to claim an Input Tax Credit (ITC) for the tax self-assessed on the goods depending on the percentage of used in their commercial activities.

If one is not registered for the GST/HST but has to self-assess the provincial portion of the Harmonized Sales Tax (HST), they must submit a Form GST489, Return for Self-Assessment of the Provincial Part of the HST.

A seizure occurs when the Canada Border Services Agency (CBSA) physically takes possession of the goods, and sometimes the conveyance, when the importer or carrier is deemed to have contravened the Customs Act.

Goods that are of a seditious character are goods that contain depictions that advocate the use of force, without the authority of law, as a means of accomplishing governmental change within Canada.

A ruling is a decision made by the Canada Border Services Agency (CBSA) regarding the origin, value, or tariff classification of a specific item.

Rough diamonds, sometimes called conflict or “blood” diamonds, are diamonds that are unsorted, unworked or simply sawn, cleaved (split) or bruted (being shaped by another diamond or diamond chip). Diamonds that are cut, polished and ready to be mounted, set or fitted do not fall under the provisions of the Export and Import of Rough Diamonds Act and do not require a Kimberley Process certificate.

Periodically, the Canada Border Services Agency (CBSA) will audit or review documentation that has been submitted to them.

Where there is neither a payment nor a refund, the self-adjustment is called revenue neutral.

If all the previous methods of valuation have been examined and been found to be inapplicable to the circumstances surrounding the transaction involving the goods being appraised, the residual method of valuation is to be applied. Under section 53 of the Customs Act, a value for duty is derived from a flexible application of one of the previous methods of valuation set out in sections 48 to 52 of the Act.

Repairs or alteration can include restoration, change, addition, renovation, cleaning, or other treatment that does not destroy the identity of the goods exported or has resulted in a new or different good.

Remit means to transmit or send money to a person or place, usually for payment.

Relief of duty refers to the non-payment of duty that is ordinarily payable on imported goods. Duty relief most often occurs in chapter 99 of the Customs Tariff where goods are imported for specific use in manufacturing. The terms "relief" and "remission" are often used interchangeably.

For non-CSA transactions, goods are released when the carrier has reported the goods and the Canada Border Services Agency (CBSA) allows the goods to move from the place of reporting to a delivery address. For Customs Self Assessment (CSA) clearances, release takes place when the goods have been delivered to the importer, owner, or consignee.

Goods are released once they have been authorized to be removed from a customs office, sufferance warehouse, bonded warehouse or duty free shop for use in Canada.

Regular goods are goods that are not controlled, prohibited or regulated.

Regional value content requires that a certain percentage of the good’s value originates.

As the Receiver General for Canada, the Minister of Public Services and Procurement Canada is responsible for making payments and accepting payments for the Government of Canada as well as preparing public accounts.

Under CARM, readers are able to view all transaction information on the CARM Client Portal within an RM program account for either their employer’s or importer client RM accounts, but are unable to create or edit information.

Under an agreement reached between the federal and Quebec governments, Revenu Québec administers the Goods and Services Tax/Quebec Sales Tax (GST/QST) in Quebec. This includes the processing of applications for registration for those carrying on commercial activities in Quebec.

Quebec Sales Tax (QST) is payable only on imported casual goods; imported commercial goods are not subject to QST. Goods subject to GST are also subject to QST.