1 - 01/26/11 What is AMPS?

2 - 01/26/11 What to Expect From a NAFTA Verification

3 - 01/26/11 What kind of invoice do I need to provide for clearance?

4 - 01/26/11 Do I need to keep records?

5 - 12/29/10 Do I need a NAFTA Certificate of Origin?

1. What is AMPS?

***Importers and exporters who use a broker to carry out responsibilities on their behalf are responsible for the accuracy and completeness of import and export transactions. This includes any AMPS penalties that may be issued for non-compliance. It is recommended that businesses work closely with service providers and with the CBSA to ensure that import and export transactions fully comply with all CBSA requirements.***

     AMPS is a system of administrative monetary penalties to promote voluntary compliance with Customs regulations and program requirements. The penalties range from $150 for a relatively minor first-time infraction up to as much as $25,000 for serious repeated offences.  The CBSA administer AMPS strictly, without consideration for fault, intent, due diligence or reasonable care. Importers do have an opportunity to appeal their assessments.  To learn more about AMPS and the consequences of non-compliance, contact a member of the Hercules Customs Brokerage Department or follow this link for more information:

http://www.cbsa-asfc.gc.ca/trade-commerce/amps/menu-eng.html

2. What to Expect From a NAFTA Verification

1. Identification and selection of goods for verification.

2. Notification to relevant parties of intent to conduct verification.

1. -exporter or producer
2. -importers
3. -customs authorities (in the case of an on-site visit)
4.  

3. Planning

1. --analysis of information
2. --collection of additional information
3. --planning memorandum
4.  

4. On-site verification (if required)

5. Analysis of information and finalization

• -final written determination sent to exporter or producer
• -notifications to importers
• -end
•  

• -written determination and notice of intent to deny preferential tariff treatment
• -sent to exporter or producer – allows 30 days to make representations
• -review of information if received
•  

• -final written determination sent to exporter or producer
• -notifications to importers
• -end
•  

• -final written determination sent to exporter or producer
• -notifications to importers
• -self-assessments or re-assessments/liquidations of entries
• -end
•  

This information was taken from the CBSA website and is available at:

http://www.cbsa-asfc.gc.ca/publications/pub/bsf5083-eng.html

3. What kind of invoice do I need to provide for clearance?

We require a Canada Customs invoice or a commercial invoice which provides all the following information:

1) Vendor

2) Date of Direct Shipment to Canada

3) Other references (e.g., the invoice number, the purchase order number)

4) Consignee

5) Purchaser's name and address if different from the Consignee

6) Country of transhipment (the country through which the goods were shipped in transit to Canada under customs control).

7) Country of Origin of Goods (the country where the goods are grown, produced or manufactured).

8) Transportation (indicate the mode of transportation and the place from which the goods began their uninterrupted journey to Canada).

9) Conditions of Sale and Terms of Payment

10) Currency

11) Number of packages

12) Specifications and Commodities (kind of packages, marks and numbers, description of the products).

13)  Quantity

14) Unit Price

15) Total Price

16) Total Weight

17) Invoice Total

 18) Any CBSA rulings 

http://www.cbsa.gc.ca/publications/dm-md/d1/d1-4-1-eng.html
This memorandum explains the CBSA invoice requirements for commercial goods imported into Canada.

4. Do I need to keep records?

Importers are obligated to maintain the records pertaining to their shipments for 6 years.  Below is a link to the D memorandum which outlines the places they can be kept and more detailed information on this topic.

http://www.cbsa.gc.ca/publications/dm-md/d17/d17-1-21-eng.html

 

5. Do I need a NAFTA Certificate of Origin?

     When an importer takes advantage of Free Trade, he is deemed to be telling Canada Customs that he or his Broker has a valid Certificate of Origin on hand. If the value for duty of the shipment is less than CAD $1,600.00, a “Statement of Origin for Commercial Importations of less than CAD $1,600.00” may be used in lieu of a formal Certificate of Origin. For all other shipments, a fully completed single shipment or blanket NAFTA Certificate of Origin is mandatory.

     Customs enforces this rule by spot-checking import entries and by conducting comprehensive Free Trade audits. Duty adjustments, interest charges and penalties are routinely assessed for non-compliance—even if the goods qualify for the preferential rate of duty.

     If Hercules Forwarding Inc., as your customs broker, does not have a valid Certificate of Origin or standing instructions on file for the goods in question, we will contact you for your instructions. In the event that we do not receive a response, we will process the file in accordance with the terms and conditions of the written notice we send you. As always, you must immediately notify us if the entry needs correcting. Please understand that in the absence of your written instructions to the contrary, Hercules cannot accept any responsibility for under-payments or over-payments of duty where a valid Certificate of Origin has not been provided to us prior to importation. Also, it is important to note that, if duty is paid on goods and a valid Certificate is presented after importation, you may apply for a refund of duty on those goods.