The A.D. Rutherford 2020 Review
Many of us will remember 2020 as being a momentous year, some for the good, but mostly for the memories of uncertainty. Some of us have been affected by the loss of a loved one due to COVID-19. We would like to take this opportunity to extend our sincere sympathies to you and your families.
At this time, it is good to be reminded of what we can do to stop the spread of this vicious virus. Some suggestions are:
Disinfect where possible, stay clean
Wear a mask, cover your mouth and nose
Wash your hands
Refrain from touching your face
Listen to the authorities
Use a videoconferencing software solution to communicate
Whereas COVID-19 did force many to think of new ways to conduct business, the Customs world did not stop. 2020 was a momentous year of change. This blog highlights some of the changes that our industry adapted to.
A.D. Rutherford would like to thank you for your on-going business relationship and for being an extended part of our family. As we continue into 2021, we would like to wish you continued growth, health and happiness.
Highlights of What Happened in 2020
January 15, 2020:
Customs Notice 20-01 The Safe Food for Canadians Regulation Licence became mandatory to import certain foods into Canada.
A Safe Food for Canadians (SFC) licence is required for the import of certain foods, including meat products, fish and seafood, dairy products, shell eggs, processed egg products, fresh fruits and vegetables, processed fruits and vegetables, honey and maple products, as identified in the CFIA's AIRS.
To determine whether you need a licence and how to apply for one, please refer to the CFIA's licensing interactive tool.
Businesses must obtain their SFC licence before presenting their shipment at the border. They will not be able to obtain an SFC licence at the border.
July 1, 2020:
USMCA, CUSMA and T-MEC replace NAFTA
Known by many as the “New Nafta”, a new amendment agreement between Canada, the United States of America and the United Mexican States (Mexico) took place. Text of the Agreement can be found here: https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/cusma-aceum/text-texte/toc-tdm.aspx?lang=eng
Customs Notice 20-14 Provided information on the implementation of the CUSMA agreement: https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn20-14-eng.html (Reminder to get your certificates or statements in for 2021)
The new certification must be signed and dated by the certifier and accompanied by the following statement: “I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate. I assume responsibility for proving such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification.”
This new trade agreement included the increase in de minimis as recorded in Customs Notice 20-18.
“Upon entry into force of the CUSMA, the following provisions will apply to imported goods that are transported by courier into Canada:
Goods with a value for duty of CAD$20.00 or less will have any applicable customs duties and taxes waived when imported from any country;
Goods with a value for duty CAD$20.01 or greater that are imported from any country other than the United States or Mexico will continue to be subject to any applicable duties and taxes;
Goods with a value for duty of CAD$40.00 or less will have any applicable customs duties and taxes waived when imported from the United States or Mexico only;
Goods with a value for duty of CAD$40.01 or greater, up to and including CAD$150.00, will be free of customs duties (however, taxes will remain applicable) when imported from the United States or Mexico only; and
Goods with a value for duty CAD$150.01 or greater will be subject to any applicable duties and taxes when imported from any country, including the United States or Mexico.”
Customs Notice 20-15 An increase to the Low Value Shipment (LVS) Threshold and Simplification to the Proof of Origin Requirements for Goods Imported into Canada:
The CBSA increases its Low Value Shipment (LVS) thresholds for all commercial importations (in addition to those for express shipments) to an estimated value for duty not exceeding CAD $3300.00.
October 1, 2020:
B13A is replaced by CERS as the Primary method of reporting exports to the CBSA
There are certain roles and responsibilities required for goods exported out of Canada. It is important to identify the goods you want to export and to also ensure that your goods are permitted to be exported out of Canada. Restricted goods are regulated, controlled or prohibited goods regardless of value. These may require a permit, a certificate or licence that is issued by the appropriate other government department if you are exporting restricted goods from Canada to the United States.
Important to note: “An export declaration is required for goods valued at $2000.00 CAD or more, or for restricted goods irrespective of value, transiting through the United States to any other destination. Any goods entering the United States on a transportation and exportation entry (T&E) bond require an export declaration.”
More information can be found on the CERS website: https://www.cbsa-asfc.gc.ca/export/guide-eng.html
Highlights of What to Expect in 2021
January 1, 2021:
Implementation of the United Kingdom Trade Continuity Remission Order 2021 Customs Notice 20-39.
This provides the tariff benefits of the Canada-United Kingdom Trade Continuity Agreement (CUKTCA) . This remits the Most Favoured Nation Tariff rate of customs duty. Importers of qualifying goods may cite the United Kingdom Trade Continuity Remission Order #20-1135 in order to benefit from the remission of duties.
More information can be found: Customs Notice 20-39 - Implementation of the United Kingdom Trade Continuity Remission Order, 2021 (cbsa-asfc.gc.ca)
CARM (CBSA Assessment and Revenue Management Project)
Information gathered from CBSA Assessment and Revenue Management project (cbsa-asfc.gc.ca)
January 2021 Release 0: “The existing ARL system will be moved from its current data center configuration to the more robust SAP S4/HANA system. External users of the system will not experience any change. Importers’ Daily Notices may be delayed a few days during the implementation of Release 0 for Electronic Data Interchange (EDI) clients.”
Spring 2021 Release 1: “ Release 1 will launch the CARM Client Portal, a self-service tool to facilitate accounting and revenue management processes with the CBSA.”
Benefits of CARM once implemented:
Simplify the overall importing process
Provide a modern interface for importing into Canada
Give importers self-service access to their information
Reduce the cost of importing into Canada
Improve the consistency of compliance with trade rules
To learn more about CARM please visit this CBSA website: https://www.cbsa-asfc.gc.ca/prog/carm-gcra/benef-initiat-avant/ov-ap-eng.html