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 [email protected].
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Term
Definition
Gross Weight

The gross weight is the weight of the goods including the packaging or the container.

Governor General of Canada

The Governor General of Canada represents the Queen; and is appointed by the Queen on the advice of Canada’s Prime Minister; and acts as the Head of State.

Goods and Services Tax (GST)

The Goods and Services Tax (GST) is a 5% federal tax that applies to most goods and services in Canada and to imported goods under section 212 of the Excise Tax Act.

Generally Accepted Accounting Principles (GAAP)

The Generally Accepted Accounting Principles (GAAP) are a framework of standards, and rules used by the accounting community to govern the way financial data is recorded and reported.

General Tariff (GT)

The General Tariff (GT) applies when goods come from a country or territory that is not on the List of Countries and Applicable Tariff Treatments, and do not meet the conditions of another tariff treatment. The rate of customs duty for the general tariff is 35%.

General Preferential Tariff (GPT)

The General Preferential Tariff (GPT) entered into force in 1974. Under this tariff, Canada offered non-reciprocal tariff rates that were less than Most-Favoured-Nation tariff rates for imports from developing countries. This was done on the recommendation of the United Nations to help promote economic growth in those countries.

In 2012, the Government of Canada revisited this commitment and decided to remove 72 countries from having this benefit on January 1, 2015. The affected countries are now considered trade-competitive countries.

General Interpretative Rules (GIR)

The General Interpretative Rules (GIR) are the rules governing the classification of all goods in the Harmonized System.

General Export Permit (GEP)

A General Export Permit (GEP) provides authorization to export controlled goods included in the Export Control List, to specified locations without the requirement for an individual export permit from Global Affairs Canada.

General Agreement on Tariffs and Trade (GATT)

The General Agreement on Tariffs and Trade (GATT) was an agreement signed by Canada and 22 other countries after the Second World War to liberalize trade and resolve trade differences. By the time it was replaced by the World Trade Organization in 1995, 128 countries had signed the agreement.

G7 Electronic Data Interchange (EDI) Export Reporting

The Group of Seven (G7) nations, Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, agreed to simplify customs processes by harmonizing the trade data used by them. Data sets and standard data electronic messages for electronic data interchange (EDI) were developed so that the export requirements of one G7 country could meet the import requirements of another G7 country.

Fungible

Fungible means goods or materials that are interchangeable for commercial purposes and have essentially identical properties.

Freight Remaining on Board (FROB)

Freight remaining on board (FROB) is cargo on a conveyance that is not being discharged at a Canadian port. The cargo remains on board the conveyance for furtherance to ultimate destination outside of Canada.

Freight Forwarder

A freight forwarder is a company or person who, on behalf of one or more owners, importers, shippers or consignees of goods, causes specified goods to be transported by one or more carriers.

Free on Board (FOB)

Free on Board (FOB) is an international shipping term. It means the buyer of the goods assumes all costs and risks of loss once the goods have passed over the ship's rail at the named port of shipment.

Free and Secure Trade (FAST)

Free and Secure Trade (FAST) is a joint program between the Canada Border Services Agency (CBSA) and US Customs and Border Protection (CBP) that allows pre-approved importers, carriers, and registered drivers to move pre-approved eligible goods across the border quickly.

Form Y50

A Y50 is a form issued by the Canada Border Services Agency (CBSA) and used to indicate that a document or data has been rejected. As a response to a paper submission, it is a paper document; as a response to an Electronic Data Interchange (EDI) transmission, it is sent electronically.

Form RC1

A Form RC1 is used to request a business number as well as account identifiers.

Form N15

A Form N15 is used to claim a refund of excise tax and must be filed within two years after the payment of excise tax.

Form L60

A Form L60 is to be completed by all newly appointed qualified officers, partners and directors.

Form L53

A Form L53 is used to apply for a customs brokerage licence.

Form K90

A Form K90 is used to request participation in the Duties Relief Program.

Form K32B

A Form K32B must be completed to support a drawback claim when the party claiming the drawback is not the exporter.

Form K32A

A Form K32A must be completed to support a drawback claim when the party claiming the drawback is not the importer.

Form K23

A Form K23 is an invoice issued by the Canada Border Services Agency (CBSA) for monies owing.

Form K11

A Form K11, Certificate of Damaged Goods, is submitted at, or prior to, the time of release in order for an officer to examine the goods while they are still on hand.

Form E656

A Form E656 is used by the carrier to apply for Part II of the Customs Self Assessment (CSA) approval process, Customs Self Assessment Program - Carrier Part II Application.

Form E655

A Form E655 is used by the importer to apply for the second phase of the Customs Self Assessment (CSA) approval process, Customs Self Assessment Program - Importer Part II Application.

Form E648

A Form E648 is used by Customs Self Assessment (CSA) importers to summarize and report to the Canadian Border Services Agency (CBSA) any CBSA debits and credits on a monthly basis.

Form E647

A Form E647 is used by carriers who wish to participate in the Customs Self Assessment (CSA) program, Customs Self Assessment Program - Carrier Application Part 1.

Form E646

A Form E646 is used by the importer to request Customs Self Assessment (CSA) approval - Customs Self Assessment - Importer Part I Application.

Form E571

A Form E571, Late Accounting Penalties Application for Waiver, Cancellation, or Extension, may be used to request a cancellation of a penalty. The letter or the form is presented at the Canada Border Services Agency (CBSA) office where the goods were released. The request should be submitted immediately after it appears on the daily notice (DN) and five or more business days before the monthly statement of account (SOA) is issued.

Form E401

To apply to become an operator, one must complete a Form E401, Application for Licence to Operate a Customs Bonded Warehouse and present it to the Canada Border Services Agency (CBSA) office closest to the warehouse.

Form E370

A Form E370 is the application used for carriers who wish to transport goods in bond.

Form E29B

A Form E29B may be used to document goods qualifying for temporary importation into Canada.

Form E14

A Form E14 is used to assess duties and taxes and keep track of importations arriving through the mail. It is affixed to the package by Canada Post upon delivery to the importer.

Form D120

A Form D120 is an application for a Customs Bond.

Form C6

In some cases, the importer or broker may need to open a package in order to access documents that are required to prepare a release request, or they may wish to confirm that the correct goods were shipped. In order to open the package, a request for permission is made to the Canada Border Services Agency (CBSA) using a Form C6.

Form BSF266

A Form BSF266 is used by an importer to apply for a Penalty Reinvestment Agreement (PRA), Form BSF266, Penalty Reduction Agreement Application Form.

Form B3B

A form B3B lists multiple cargo control documents to be accounted for on a single B3.

Form B3

The B3, Canada Customs Coding Form is used to present accounting information to the Canada Border Services Agency (CBSA). It may be presented in hard copy or the data may be sent electronically using Electronic Data Interchange (EDI). In both cases, the data is the same. In CARM Release 2, the Form B3 will no longer be used, accounting data will be submitted as a Commercial Accounting Declaration (CAD).

Form B2

The B2, Canada Customs Adjustment forms are paper forms that are completed and filed with Canada Border Services Agency to request an adjustment or a refund. In CARM Release 2, the Form B2 will no longer be used, adjustments will be done to the Commercial Accounting Declaration (CAD) and become a new version of the CAD. Pre-CARM adjustments will need to be submitted as an “as declared” CAD followed by an “as adjusted” CAD.

Form A8A

A Form A8A is the standard cargo control document (CCD) for goods entering Canada by highway or air.

Form A6

A Form A6 is the paper general declaration for marine shipments.

Form A10

In some cases, goods listed on a Cargo Control Document (CCD) must be accounted for on more than one accounting document. A new CCD is required for each portion of the shipment that requires separate accounting. The CCD used to report, or “abstract” the various shipments from the original CCD is the A10 Customs Cargo Control Abstract.

Forfeit

Forfeit occurs when the importer/owner of the goods forgoes all rights to the goods; they are still liable for all reasonable expenses incurred by the government in the disposal of the goods.

Foreign Trade Zones

Foreign Trade Zones are areas where goods may be stored without payment of duty or meeting other requirements such as a quota or permit. There are no foreign trade zones in Canada, although Canada does operate Foreign Trade Zone Points (FTZ points). These points are strategic locations where investors can assist local trade in competing internationally by providing a single point of access to information on relevant government policies and programs such as the Duties Relief Program.

Force of Law

When a written instrument is said to have a “force of law”, it means that it is legally effective. Instruments with a force of law cannot be refuted or changed by any court of law, except in a very few cases where an individual will contest the legality of such instrument on the assumption that it directly opposes or contradicts another instrument of law. Appeals of this nature are heard by the Supreme Court of Canada.

For Use In - Customs Tariff Act

The Customs Tariff Act defines "for use in" as follows, “wherever it appears in a tariff item, in respect of goods classified in the tariff item, means that the goods must be wrought or incorporated into, or attached to, other goods referred to in that tariff item”.

Flying Truck

Flying truck allows for the release of shipments arriving at the border by highway carrier that were originally supposed to arrive by air and have already been declared on an Advance Commercial Information (ACI) eManifest for the air mode of transportation.  For example, weather events may ground a flight but due to proximity to the Canadian border a truck may be used to travel across the border. 

Flora

Flora means all the plants of a particular region. Canada has roughly 17,000 known species of trees, flowers, herbs, ferns, and other flora.

First Point of Arrival (FPOA)

The First Point of Arrival (FPOA) is the first Canadian port that a mode of transport stops for any reason including but not limited to the loading and or discharging of cargo, anchoring, bunkering, safety inspections, crew changes, diversions, etc.

Financial Administration Act

The Financial Administration Act is the Act that governs the financial affairs of the Government of Canada, and provides for the audit of public monies and the financial control of Crown Corporations. It contains a list of all current Government of Canada departments, agencies, Crown corporations, and special operating agencies.

FIFO (First In, First Out) - Fungible Goods

The First In, First Out (FIFO) method means that the origin of fungible materials first 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 first enter inventory is the origin of the goods that are removed first from inventory.

Fauna

Fauna means all of the animals or insects of a particular region.

Exporter of Processing Services Program (EOPS)

The Exporters of Processing Services Program (EOPS) enables qualified companies to import goods belonging to non-residents without paying the Goods and Services Tax/Harmonized Sales Tax (GST/HST), provided that these goods are imported for processing, distribution or storage, and are subsequently exported.

Export Summary Reporting Program

The Export Summary Reporting program was developed to enable exporters who meet certain criteria to declare export data in a single summary report. This report streamlines export data and provides international trade statistics. Exporters in this program may submit a monthly summary of their goods after they have been exported. Reports are filed using CERS.

Export Reporting Office

An export reporting office is any Canada Border Services Agency (CBSA) office that is designated under Section 5 of the Customs Act to process the exportation of goods from Canada, to receive export reports, and to examine goods destined for export, as well as being open for business at the time the goods are reported.

Export Price

The export price is the price that the foreign exporter charges the Canadian importer for the goods, reduced by any export charges that are included such as freight and insurance. These deductions can include special export packing, export risk insurance, and charges and expenses incurred by the exporter.

Export Permits

An export permit is issued by Global Affairs Canada (GAC) for goods that are subject to export controls.

Export Import Controls System (EICS)

The Export and Import Controls System (EICS) offers a secure web interface and an Electronic Data Interchange (EDI) interface to support the application, approval, and processing of import/export permits. The system also features import/export quota management functionality.

Export Controls Online (EXCOL)

EXCOL is the acronym for Export Controls Online. This is a service offered by Global Affairs Canada (GAC), which allows businesses and individuals to apply for and receive most export permits and certificates under the Export and Import Permits Act online.

Export Control List (ECL)

The Export and Import Permits Act states:

The Governor in Council may establish a list of goods and technology, to be called an Export Control List, including therein any article the export or transfer of which the Governor in Council deems it necessary to control for any of the following purposes:

(a) to ensure that arms, ammunition, implements or munitions of war, naval, army or air stores or any articles deemed capable of being converted there into or made useful in the production thereof or otherwise having a strategic nature or value will not be made available to any destination where their use might be detrimental to the security of Canada;

(b) to ensure that any action taken to promote the further processing in Canada of a natural resource that is produced in Canada is not rendered ineffective by reason of the unrestricted exportation of that natural resource;

(c) to limit or keep under surveillance the export of any raw or processed material that is produced in Canada in circumstances of surplus supply and depressed prices and that is not a produce of agriculture;

(d) to implement an intergovernmental arrangement or commitment;

(e) to ensure that there is an adequate supply and distribution of the article in Canada for defence or other needs; or

(f) to ensure the orderly export marketing of any goods that are subject to a limitation imposed by any country or customs territory on the quantity of the goods that, on importation into that country or customs territory in any given period, is eligible for the benefit provided for goods imported within that limitation.

Export and Import Permits Act (EIPA)

The Export and Import Permits Act is the legislation controlling the import and export of certain goods and the export of goods to certain countries.

Expired User

A CARM Client Portal (CCP) user defaults to Expired status if the business relationship in the portal between the importer and customs broker is terminated.

Exhibition

Exhibition means a public display of works of art, industrial products, etc.

Exempt Supplies

Exempt goods and services are goods and services that are not subject to Goods and Services Tax/Harmonized Sales Tax (GST/HST). GST/HST registrants cannot claim Input Tax Credits to recover the GST/HST they paid on expenses related to making these supplies.

Exempt Break Bulk Cargo

Exempt break bulk cargo are goods on board a vessel for which an exemption under section 13.8 of the Reporting of Imported Goods Regulations has been granted. In this case, the reporting of cargo takes place prior to the arrival of the vessel at the first Canadian port of arrival and not prior to the loading of the goods on board the vessel.

Excise Tax Act

The Excise Tax Act provides for the imposition and collection of the Goods and Services Tax (GST) on most goods and services supplied within or imported into Canada. The Excise Tax Act is divided into nine parts with ten schedules. CBSA is responsible for the collection of tax on imported goods.

Excise Act, 2001

Excise duty is imposed, levied, and collected under the Excise Act, 2001 on all spirits, wine, cannabis tobacco and vaping products manufactured or produced in Canada.

Excise Act

Excise duty is imposed, levied, and collected under the Excise Act on beer manufactured or produced in Canada.  As well excise tax is levied on certain petroleum products, heavy vehicles and air conditioners designed for automobiles under the authority of this Act.

EXCAPS

An automated system called EXCAPS (Global Affairs Canada/Customs Automated Permit System) allows the transmission of permit data directly from Global Affairs Canada (GAC) to the Canada Border Services Agency (CBSA).

Examination

Examination is the inspection of goods, conveyances and persons entering Canada.

Ex-factory Price

Ex-factory price means the total value of: (a) materials; (b) parts; (c) factory overhead; (d) labour; (e) any other reasonable costs incurred during the normal manufacturing process, e.g. duties and taxes paid on materials imported into a beneficiary country and not refunded when the goods were exported; and (f) a reasonable profit.

Ex-Factory

Ex-Factory is an international shipping term. It means the price quoted applies at the named factory. The buyer bears all costs and risks of loss between the seller's factory and the destination of the goods.

Entered for Consumption

Entered for consumption occurs when goods in the US are released by the US Customs and Border Protection Agency (CBP) into the US economy to be used. Also referred to as a consumption entry. 

End Use Program

The End Use Program allows for a reduction of the duty rate on goods imported for a specific use.

Emergency Repairs

Emergency repairs are repairs resulting from an unforeseen contingency that occurred outside Canada and were necessary to enable the safe return of the conveyance to Canada.

Embargoes

Embargoes are bans or restrictions imposed upon exports and imports to a country or countries.

eManifest Portal

The eManifest Portal is a secure data transmission option developed by the Canada Border Services Agency (CBSA) that allows the trade community to electronically transmit their pre-arrival data through the Internet. The eManifest Portal was developed primarily for small- to medium-sized businesses to facilitate their compliance and ease the transition from paper reporting to pre-arrival electronic data transmission.

eManifest

eManifest is the third phase of the Advance Commercial Information (ACI) program. This initiative requires carriers, freight forwarders and importers in all modes of transportation to electronically provide the Canada Border Services Agency (CBSA) with advance trade data before goods arrive in Canada.

Electronic Data Interchange (EDI)

The Electronic Data Interchange (EDI) system allows clients to electronically transmit their import or export data and their accounting documents to the Canada Border Services Agency (CBSA).

Electronic Commerce Client Requirements Document (ECCRD)

The Electronic Commerce Client Requirements Document (ECCRD) provides comprehensive information about business and system requirements of various electronic transactions for multiple import and export programs.

Electronic Banking Services

Electronic banking services are payments sent electronically to the Canada Border Services Agency (CBSA) by the commercial client’s financial institution when the client is Electronic Data Interchange (EDI) enabled or uses a third party service provider, or when the client uses the financial institution’s online (internet) banking services. In CARM Release 1, in addition to EDI and on-line payments an importer/customs broker may pay by credit card, debit card, and Pre-Authorized Debit.

Editor

Under CARM, editors are able to create, view and edit all transaction information on the CCP within an RM program account for either their employer’s or importer client RM accounts.

Duty-Free Shops

Duty-Free shops are located at Canada's land border crossings and airports. They sell goods free of certain duty and taxes that are normally levied on goods sold in Canada.

Duty Paid Value (DPV)

Once the duty has been calculated, it is added to the Value for Duty (VFD). The sum of the VFD and the duty becomes the Duty Paid Value (DPV).

Duty Drawback Program

The duty drawback program is an incentive for domestic manufacturers who produce goods for export.

Except in certain cases under North American Free Trade Agreement (NAFTA), drawback is a refund of customs duties, excise duties, excise tax, and anti-dumping and countervailing duties paid on imported goods that have been:

  • further processed and subsequently exported,
  • displayed or demonstrated in Canada and subsequently exported,
  • used for the development or production in Canada of goods for subsequent export, or
  • exported without having been used in Canada for any purpose other than for any of the above.

Drawbacks may also be claimed on imported goods that are surplus or obsolete and have been disposed of in Canada.

Duty Deferral Program

The Duty Deferral Program was created to help Canadian businesses be more competitive by offering relief from most duties and taxes, whether or not their goods were manufactured in Canada. This program is the grouping of three options that can defer or relieve the payment of duties on imported goods. These programs are the Duties Relief Program, the Drawback Program and the Bonded Warehouse Program.

Duties Relief Program

The Duties Relief Program alleviates the obligation to pay duties on imported goods that will eventually be exported either in the same condition or after being used, consumed, or expended in the processing of other goods.

Duties

Duties means any duties or taxes levied or imposed on imported goods under the Customs Tariff, the Excise Act, 2001, the Excise Tax Act, the Special Import Measures Act or any other Act of Parliament, but, for the purposes of subsection 3(1), paragraphs 59(3)(b) and 65(1)(b), sections 69 and 73 and subsections 74(1), 75(2) and 76(1), does not include taxes imposed under Part IX of the Excise Tax Act.

Simply put, duties mean all duties AND taxes, except for certain taxes imposed by the Excise Tax Act.

Dumping

Dumping occurs when goods are sold to importers in Canada at prices that are lower than the selling price of comparable goods in the country of export or when goods are sold to Canada at unprofitable prices. The amount of dumping on imported goods may be offset by the application of "anti-dumping" duty.

Drawback

A drawback is a refund of duties on imported goods that are eventually exported. The goods can be exported in the same condition in which they were imported or they can be further manufactured in Canada in a limited manner before being exported. Drawback claims are filed once the goods have been exported.  Under CARM this is a new version of the CAD.

Diversion

Diversion is the rerouting of a shipment, before arrival at the destination Canada Border Services Agency (CBSA) office or sufferance warehouse or break-bulk facility indicated on the cargo transmission or control document, to a different CBSA destination point.

Disbursement

A disbursement is a payment made by the Canada Border Services Agency (CBSA) in the form of a cheque or direct deposit. Under CARM, an importer will have the ability to opt into whether they want to receive a disbursement or leave credits on their account as of Release 2. Cheques, or direct deposits for those who chose to set them up, will still be issued for accounts that have opted into receiving disbursements.

Direct Shipment

The Direct Shipment of Goods Regulations require that the direct journey of goods exported from another country with a Canadian destination that pass through an intermediate country must be uninterrupted. However, for a number of reasons, goods which are shipped to Canada may stop at some place along their route. If the journey is broken temporarily because the goods must change carriers, the goods are said to be transhipped. This point along the route is a transhipment point. Transhipment also occurs when goods are consolidated or deconsolidated to make shipping easier, more convenient or more cost effective. This type of stoppage along the way is not considered to interrupt the direct journey of the goods to Canada. Minor operations at the transhipment point, such as adding extra packing needed to protect the goods on the next carrier, are also not considered to interrupt the direct journey to Canada of the goods. In these cases, the transhipment does not affect the identification of the place of direct shipment.

Detailed Coding Statement (DCS)

If a Form B3 contains errors, a Detailed Coding Statement (DCS) identifying the errors is generated. The accounting document and a copy of the DCS are returned to the importer/broker for correction. The DCS must be reviewed carefully and, if necessary, corrections made before attaching the DCS behind the customs copy (first copy) of the B3 and resubmitting the accounting document, identifying the corrected field(s), if any.

Detailed Adjustment Statement (DAS)

A Detailed Adjustment Statement (DAS) is generated by the Canada Border Services Agency (CBSA) for each adjustment requested by the importer or customs broker on form B2. It is also issued by CBSA to advise the importer of determinations and re-determinations initiated by CBSA.

Designated Export Office

A designated export office is any Canada Border Services Agency (CBSA) office designated under section 5 of the Customs Act where the carrier may report an export movement.

Designated Customs Office

A designated customs office is a customs office designated under section 5 of the Customs Act as a customs office where a person may present themselves pursuant to section 11 of the Act, or in an alternative manner if the person is so authorized.

Departmental Memorandum

Departmental Memorandum are also known as directives series or D-Memos, they outline the legislation, regulations, policies, and procedures that the Canada Border Services Agency (CBSA) uses to administer its programs.

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