Not all importers manage large commercial shipments from foreign suppliers.
There are many casual importers who bring exported goods into their home countries for their own personal use or to present samples at local trade shows. Casual importers also include shoppers who cross over the border into another country and then buy merchandise for their return trips. Canadian buyers who make online purchases from the U.S. eBay site provide another example of casual importers.
Casual import shipments usually involve small purchase amounts. However, the Canada Border Services Agency (CBSA) still requires adequate accounting documentation before customs officers are authorized to release even these small shipments for delivery.
Release Documents for Casual Importers
Release documentation can include a commercial invoice, current price list, bill of sale or similar records that describe the imported products.
A customs officer must be able to view the documents and be able to assess an imported good’s:
Tariff classification
- Corresponding harmonized system (HS) code
- Value to be used to calculate tariff duties.
Sometimes, casual importers appoint customs brokers to handle the customs process including paperwork. The casual importer completes a one-time power of attorney which authorizes the selected customer broker to act on the importer’s behalf for a specific import transaction.
Of course, services of professional customs brokers cost money. A small import shipment can result in the customs broker charging $500 for servicing the small account. (All dollar amounts in this article are in Canadian currency.)
Free Self-Serve System for Import Reporting
Fortunately, many CBSA offices that service U.S. border entry points or customs warehouse locations offer a personal computer application that members of the public can use for free.
That application is called the Commercial Cash Entry Processing System (CCEPS). These free self-serve computer stations help clients prepare release documentation needed to clear commercial and personal import deliveries into Canada. CCEPS produces completed forms that are ready for border services officers to inspect.
Input Documents Required to Use CCEPS
Before using CCEPS, importers have to collect the necessary support documents and have that information ready for input. In addition to the RM-prefixed import business number (available from Canada Revenue Agency), supporting information includes a proper:
- Invoice
- Cargo control document that list the contents of an import shipment
- Permit, certificate or licence for controlled products like plants or food.
Note that a traveler bringing back goods from outside the country may have receipts and product description materials instead of a commercial invoice or cargo control manifest (as the cargo control document is sometimes called).
Automatically Processed B3 Form from CCEPS
Once the required import data is correctly entered into CCEPS, the system:
- Calculates applicable tariff duties and taxes
- Generates and prints a completed copy of Form B3, the official Canada Customs Coding Form.
The B3 Form has close to 100 fields that otherwise would have to be filled out manually. These fields include the calculated duties and taxes that CCEPS automatically computes.
CCEPS users sign the CCEPS form and then present the B3 Form to a border services officer. The CBSA official ensures that the B3 information goes into the Automated Commercial Release Operations Support System (ACROSS) for validation. If everything is in good order, the CBSA will collect any duty and tax due and finalize processing the imported product.
Successful casual importers receive receipts for payment of duty and tax or confirmation that none was payable. For an imported commercial shipment, that documentation is presented at the CBSA warehouse operator to collect the imported goods. For smaller personal shipments, the CBSA officer typically hands the imported products across the counter to the casual importer.
Advantages of Using CCEPS
CCEPS is an automated application that minimizes user errors particularly for calculating import duties and taxes. When done manually, those computations can result in exchange rate errors and tariff duty mistakes.
CCEPS is also much faster than filling out 100 fields in a hardcopy B3 Form.
CCEPS computers are conveniently located in customs offices near border entry points across Canada, airports and also in offices close to warehouses where customs stores imported goods.
Best of all, CCEPS is free and can save fees otherwise paid to a customs broker.
CBSA Offices with CCEPS Computer Terminals
CBSA D memorandum D-17-1-5 identifies the 33 customs office addresses across Canada where CCEPS computer terminals are readily available to casual importers.
For the Atlantic region, there are 2 CCEPS offices. Québec has 7 locations, while Ontario has 11.
In the Prairies, Alberta has 4 CCEPS installations whereas Manitoba and Saskatchewan each have 1 office with CCEPS.
On the west coast, British Columbia has 7 stations offering CCEPS automated B3 processing to casual importers.
Some of the larger customs offices like 1 Front Street West in Toronto may also offer CCEPS services. Importers should always call in advance to check that the system has not been replaced by a more modern application.
Sources
This article presents independent insights based on readings of the CBSA website and the text “Introduction to Customs Administration and Procedures” (Canadian Society of Customs Brokers, 2009).
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
Comments