Trade Talk
 International Tips and Tools for eBay Buyers and Sellers

May 2004
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Importer Identification Requirements
for Cross Border Shipments

Both Canada and U.S. Customs require specific information about the noted importer of record before a formal entry can be completed and submitted. This is a brief synopsis of what the requirements are and some suggestions of what you could do to help protect your privacy, should you not wish to provide the information to your buyer or seller.

Shipments into the USA:

Regulation Summary:

For formal entries submitted on shipments entering the U.S., as introduced in 1972, U.S. Customs requested an Employer Identification Number (EIN) or Social Security Number (SSN) of the person the item is being shipped to. In June 2001, if the EIN or SSN wasn't reasonably available when the shipment reached the border, US Customs would assign an identification number for that ultimate consignee called an encrypted number . Now, with the effects and changes of September 11, 2001 US Customs discontinued assigning the encrypted number as of June 1, 2003 and expects an EIN or SSN number of the ultimate consignee to be available on the formal entry.

Required:

The SSN or EIN number is required on formal or informal entries submitted to US Customs when :

  • The value exceeds $200.00 USD in either formal or informal entries.
  • If the value is under $200.00 USD and US Customs requests a formal entry.

Protection Suggestions:

There are a couple things you could consider in order to protect the privacy of the buyer or seller:

  • If you are shipping to a businesses address (ie; wherever you work) you could use the business address & business IRS# number in place of your personal SSN number. Remember though, the number needs to match the 'ship to' name, so if you are inputting a business name, you would need to indicate the business IRS# number just as if you were indicating an individual, you would need to indicate the SS # number.
     
  • Employ the Services of a U.S. Customs Broker and have your buyer provide that broker with the EIN or SSN information. Information collected by a broker is confidential information and would only be shared with the parties that are required to know. In this case it would be between US Customs and the US Broker.
     
  • If you are located in Canada, employ the services of a U.S. warehouse to store products you expect to sell to someone in the US, and move them into the US warehouse before the sale of the product. This makes the ultimate consignee the warehouse and their business number could be used. Remember though, the product would need to cross the border to this warehouse before the goods were sold.

Shipments into Canada:

Regulation Summary:
Formal entries submitted to Canada Customs, regardless of value, for goods entering Canada require the Importer or Record to have an import number. This import number is assigned by Canada Border Services Agency (CBSA) and is based on an organization's business number or an individual's Social Insurance number. When shipping into Canada, the importer of record may not always be the person or company whom is receiving the goods but the person or company accepting the responsibility with Canada Customs for the declaration and payment of any duties and taxes assessed.

Required:
  • For declaration of all shipments entering Canada, regardless of value.
Protection Suggestions:

  • The importer of record could use a Canadian Customs Broker or work directly with Canada Customs eliminating the need to share the information with any other parties.
     
  • If the importer of record is represented by a business, the business number is used eliminating the need to provide an individuals SIN number.
     
  • The US seller could become a Non-Resident Importer with Canada Customs, this would mean the Seller's information is provided to Canada Customs and the US seller could incorporate all the incurred charges ( freight / duty / tax ) into one shipping charge for the Canadian Customer eliminating the need for the Canadian buyer to provide any personal information outside of shipping address.

A & A Contract Customs Brokers can assist you with any of these needs, so if you have any questions or would like more information in regards to brokerage or warehousing services, please email us.

 		  

 
Cross Border Tips & Tools

When selling product into Canada, by establishing your company as a Non-Resident Importer with a Canadian customs broker you can have the goods cleared in your company name and the related charge billed to your company. This not only eliminates the charge for your Canadian customer it also removes the need for them to be involved in the customs clearance.

   Question of the Month

Q: What is the CBSA ?

A:  The Canadian Border Services Agency (CBSA) was created on December 12, 2003. The CBSA consists of all the major organizations in Canada that are involved in facilitating cross-border trade and border protection. Included in this group is Canada Customs. So when you hear the acronym CBSA think Canada Customs and border protection services.

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