Frequently Asked Questions - Regulations

NAFTA Rules of Origin Regulations (SOR/94-14) - Justice Canada Website

What is the purpose of this regulation?

The purpose of this regulation is to define the interpretation, application and purpose of the different rules of origin that are applicable under NAFTA, more specifically, on what has to be taken into account when calculating the Regional Value Content (RVC) and on how to deal with the provisions of automotive goods. This will allow the Agency to implement appropriate policies and procedures to facilitate the administration of, and appropriate access to the program.

What are the key elements of this regulation?

The key elements of this regulation include definitions and interpretation, rules of origin and special provisions, specific rules of origin, RVC, automotive goods, and examples on how to apply certain provisions in the different Schedules.

How does this regulation affect Canadian business?

It provides clarity and transparency with respect to the application of the different provisions under NAFTA in order to guide the trade community to make appropriate business decisions.

What is the timeline for implementation?

The regulations currently exist.

Where can I get more information?

More information can be found in Memoranda D11-5-1 NAFTA Rules of Origin and D11-5-2 NAFTA Specific Rules of Origin, or by contacting the CBSA's Border Information Service.

Reporting of Imported Goods Regulations (SOR/86-873) - Justice Canada Website

What is the purpose of this regulation?

One of the primary functions of the CBSA is to maintain control over the international movement of goods, to and from Canada, ensuring that applicable duties and taxes are assessed and collected. As well, goods must comply with all applicable acts and regulations. To achieve this goal, all commercial goods imported into Canada or moving in transit through Canada must be reported to the CBSA upon arrival in Canada. Imported goods are required to be reported under the Reporting of Imported Goods Regulations.

What are the key elements of this regulation?

The Reporting of Imported Goods Regulations and the Transportation of Goods Regulations establish the time of report, manner of report, and who reports goods entering or moving in transit through Canada.

How does this regulation affect Canadian business?

For international commercial shipments, the carrier has the obligation to report the arrival of the shipment and provide the proper documents.

What is the timeline for implementation?

The regulations currently exist.

Where can I get more information?

More information can be found in Memoranda D3 Transportation, and the Customs Act, section Report of Goods, as well as by contacting the CBSA's Border Information Service.

Accounting for Imported Goods and Payment of Duties Regulations (SOR/86-1062) - Justice Canada Website

What is the purpose of this regulation?

The purpose of this regulation is to set out the requirements for the accounting and payment of duties for all commercial and casual (non-commercial) goods imported into Canada, including specific requirements and information pertaining to the Customs Self-Assessment Program.

What are the key elements of this regulation?

This regulation provides the definitions of key terms relating to accounting and payment, for example: “billing period”, “commercial goods”, “casual goods, and “courier”. For casual goods, it dictates the general manner of accounting, and general requirements respecting the accounting for payment of duties. With regards to commercial goods, it prescribes general requirements respecting the accounting, release without accounting, release of goods imported as mail, release of and interim accounting, release of eligible goods, final accounting and payment of duties for commercial goods (CSA importer), CSA authorizations, security for release of goods, and release of and interim accounting where information is deficient.

How does this regulation affect Canadian business?

This regulation affects Canadian businesses by establishing the timelines and requirements for importing their commercial goods into Canada including obtaining release of those goods, accounting for their goods, and paying the duties on those goods. These requirements are universal, creating a level playing field for all Canadian businesses.

What is the timeline for implementation?

The regulations currently exist.

Where can I get more information?

More detailed information can be found in Memoranda D17-1-5 Registration, Accounting and Payment for Commercial Goods, D1-4-1 CBSA Invoice Requirements, D17-1-1, Documentation Requirements for Commercial Shipments, D17-1-10 Coding of Customs Accounting Documents, and the CBSA's Guide Importing Commercial Goods Into Canada, as well as through the CBSA's Border Information Service.

Customs Brokers Licensing Regulations (SOR/86-1067)- Justice Canada Website

What is the purpose of this regulation?

The purpose of this regulation is to set out the requirements to become a licensed customs broker in Canada along with prescribing the terms and conditions of acting as a customs broker.

What are the key elements of this regulation?

The key element of this regulation include the information on:

• the qualifications to be a customs broker,
• the terms and conditions to apply for, to cancel or suspend, and to surrender a customs broker licence,
• the amount and form of security required,
• the licence fees,
• the duration of the licence,
• the requirements of transacting of business as a customs broker,
• the requirements of brokers to maintain records, the types of records and how to maintain them, and
• the Customs Broker Professional Examinations. 

How does this regulation affect Canadian business?

This regulation provides direction on how to become a licensed customs broker in Canada and the requirements to transact business as a customs broker.

What is the timeline for implementation?

The regulations currently exist.

Where can I get more information?

More information can be found in Memoranda D1-8-1 Licensing of Customs Broker, D1-8-3 Canada Border Services Agency Customs Brokers Professional Examination, or by contacting the CBSA's Border Information Service and assessment-cotisation@cbsa-asfc.gc.ca.

Reporting of Exported Goods Regulations (SOR/2005-23)- Justice Canada Website

What is the purpose of this regulation?

The regulations outline the rules and requirements that exporters, carriers and customs service providers must fulfill in order to meet the obligations to report goods exported from Canada.

What are the key elements of this regulation?

The regulations establish who must report goods for export, as well as the time, place and manner of reporting. The regulations also provide exceptions to export reporting requirements and alternatives to the general manner of export reporting.

How does this regulation affect Canadian business?

The regulations establish the entities that are responsible for reporting exports. The regulations therefore determine who has responsibilities, and ultimately, who may be liable for not fulfilling those obligations.

What is the timeline for implementation?

The regulations currently exist.

Where can I get more information?

More information on the regulations can be found in:

• Memorandum D3-1-8 Cargo - Export Movements,
• Memorandum D20-1-1 Export Reporting, or
• through the CBSA's Border Information Service.

Tariff Classification Advance Rulings Regulations (SOR/2005-256)- Justice Canada Website

What is the purpose of this regulation?

The purpose of this regulation is to define the scope, context and purpose of a tariff classification advance ruling, allowing the agency to implement appropriate policy and operational procedures to facilitate the administration of, and appropriate access to, the program.

What are the key elements of this regulation?

The key elements include the:

• definition of who may apply for a ruling;
• conditions that must be satisfied, including how the ruling is to be issued, treated and maintained;
• binding nature of the ruling;
• impact of changes to the circumstances or conditions under which a ruling is issued, including effective dates; and
• appeal provisions.

How does this regulation affect Canadian business?

It provides clarity and transparency with respect to the requirements for applying for a tariff classification advance ruling, the content of the ruling, and the legal obligations imposed on both the recipient and the Agency once the ruling has been issued.

What is the timeline for implementation?

The regulations currently exist.

Where can I get more information?

More information can be found in Memorandum D11-11-3 Advance Rulings for Tariff Classification, or by contacting the CBSA's Border Information Service.

Presentation of Persons (2003) Regulations (SOR/2003-323)- Justice Canada Website

What is the purpose of this regulation?

The Presentation of Persons (2003) Regulations are the legal framework for all exceptions to the requirements for persons to present themselves upon entry into Canada, including passengers and crew and all aspects of the programs permitting other persons to get an authorization from the Minister to present themselves in an alternative manner.

What are the key elements of this regulation?

Following the legal obligation to present oneself upon entry into Canada set in the Customs Act, the regulations provide information on exceptions and presentation in alternative manners.

How does this regulation affect Canadian business?

It does not affect Canadian businesses because it is only intended for travellers. Even in programs like the Fast and Secure Trade (FAST) Program, the Regulations set requirements for the driver of the commercial highway conveyance and not the cargo or commercial aspects of the passage.

What is the timeline for implementation?

The regulations currently exist. Amendments are being made through four proposals which have varying implementation dates.

Where can I get more information?

For more information on the regulations, the following sources are available:

• NEXUS Program
• Customs Act, section 11 Presentation of persons on arrival in Canada
• Memoranda D2-5-0 Legislative Requirements for the Presentation of Persons at a Canada Border Services Agency (CBSA) Office, D2-5-6 Air Crew Reporting, D3-2-1 International Commercial Air Traffic and Air Conveyance Reporting, and
• through the CBSA's Border Information Service.

Imported Goods Records Regulations (SOR/86-1011)- Justice Canada Website

What is the purpose of this regulation?

The Imported Goods Records Regulations describe the type of records that the Customs Act requires be kept by the importer to substantiate declarations of goods imported into Canada, including claims for conditional relief tariff items.

What are the key elements of this regulation?

The key elements of the regulation are to prescribe particulars as to what records are to be kept, the information those records are to contain, and their retention period.

How does this regulation affect Canadian business?

The importer will incur some cost in order to keep the records, but the regulation supports Customs Act requirements. The records benefit the importer by ensuring they are aware of what information is required to support their declaration of goods imported into Canada.

What is the timeline for implementation?

The regulations currently exist, and are under review as announced in CN13-015 - Clarification of the Imported Goods Records Regulations. That review process is ongoing, but no timeline is available at present.

Where can I get more information?

More information may be obtained by contacting the CBSA's Border Information Service.

Valuation for Duty Regulations (SOR/86-792)- Justice Canada Website

What is the purpose of this regulation?

The purpose of this regulation is to satisfy Canada's obligation, as a signatory to the World Trade Organization's “Agreement on the Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, ” to adopt internationally-recognized procedures for valuing imported goods. The Regulations support and expand on the valuation requirements identified in Part III of the Customs Act.

What are the key elements of this regulation?

The key elements of the Regulations include:

• interpretation of specific components in individual valuation methodologies,
• instructions on quantifying components to be included in customs value-for-duty calculations,
• identification of the nature of information necessary to support value-for-duty declarations, and
• procedures for addressing and notifying importers of inaccuracies in declarations.

How does this regulation affect Canadian business?

The Regulations clarify importer obligations with respect to identifying an amount on which import duties and taxes are based. Accuracy in establishing the bases for assessments allows Canadian business to project liabilities, promoting effective decisions for business growth. In addition, the accuracy of customs import data is a factor in establishing Canada's Balance of Trade and as a benchmark for establishing Canada's quota and licensing limits in support of domestic industries.

What is the timeline for implementation?

The regulations currently exist.

Where can I get more information?

More information can be found in Memoranda D13-1-1 Value for Duty of Imported Goods, D13-1-3 Customs Valuation – Purchaser in Canada, D13-4-5 Transaction Value Method for Related Persons, D13-3-12 Treatment of Assists in the Determination of the Value for Duty, D13-7-3 Deductive Value Method - Deductions From the Price Per Unit, D13-8-1, Computed Value Method, or through the CBSA's Border Information Service.

Transportation of Goods Regulations (SOR/86-1064)- Justice Canada Website

What is the purpose of this regulation?

The purpose of this regulation is to provide conditions under which imported goods may be transported within Canada. This regulation enables the CBSA to control the movement of goods being imported and exported to ensure that applicable duties and taxes are collected, and that the goods comply with prohibitions and regulations imposed by any Act of Parliament.

What are the key elements of this regulation?

The Transportation of Goods Regulations govern the conditions that foreign-based conveyances must follow when transporting goods into and around Canada.

How does this regulation affect Canadian business?

Canadian business involved in the importation and movement of goods must comply with the requirements of the regulations respecting the transportation of the goods.

What is the timeline for implementation?

The regulations currently exist.

Where can I get more information?

More information can be found in Memoranda D3 Transportation, or through the CBSA's Border Information Service.