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 A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z
A


 ACROSS (Accelerated Customs Release Operations Support System)
ACROSS is an EDI based customs release system. It allows customs release information to be electronically transmitted to and from Canada customs. Approved releases can then be transmitted directly to the carrier or through the broker.


 AMPS (Administrative Monetary Penalty System )
AMPS is a comprehensive monetary penalty system being developed by the Canada Customs and Revenue Agency (CCRA). It will allow Canada Customs to impose monetary penalties on violators of the Customs Act and related legislation.


 Annex
The concessionary provisions of the Customs Tariff Act, which reduce rates of duty on goods qualifying for special treatment because of their end use, special use or use by, selected industry organizations.


 ATA (Carnet )
An international passport for goods, used by persons wishing to take commercial samples, goods for display, and other goods into specific countries on a temporary basis, without payment of duties and taxes. This document must accompany the goods and be stamped by Customs authorities when leaving and arriving in a country.

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B


 B3
A Canada Customs coding form, which details the harmonized classification code used for the goods being imported. It also outlines the duty and taxes applicable to the goods, and whether NAFTA was applied to the shipment.


 Blanket Refund Claim
A single Refund Claim covering a number of entries based on the same specific conditions, at the same time, and in the same Customs Region.


 Bonded Warehouse
A Customs-supervised warehouse where goods are stored “in bond” until they are released by Canada Customs.


 Brokerage
Those activities involving transactions with Customs concerning the entry and admissibility of merchandise, its classification and valuation, the determination of duty, taxes and other charges assessed or collected by Customs (for merchandise by reason of its importation, or the refund, rebate or drawback thereof).


 Brokerage Fee
Fees charged by a broker for preparing the information required by Canada Customs on the goods being imported.


 Business Number (BN)
Effective January 1, 1997, all businesses dealing with revenue Canada are required to have a Business number to streamline processing. The Business Number consolidates several existing business accounts (such as GST, corporate income tax, import/export, payroll, etc.) under one single number.

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C


 CADEX (Customs Automated Data Exchange Systems)
A computer network that allows Brokers and Importers to electronically transmit duty and tax information to Canada Customs.


 Canada Customs Act
The legislative authority for the administration and enforcement of all laws related to Canada Customs. It is a non-taxing statute.


 CCI (Canada Customs Invoice)
An invoice in prescribed form, to be completed in the prescribed format by the importer, the exporter, or their agents. All data on the prescribed CCI is required for shipments valued over $1,600 Canadian. A commercial invoice is acceptable in lieu of this document, if the required data elements are included (request document 5023 for further detail).


 Certificate of Origin
Many countries have customs/tariff regulations restricting the importation of goods from certain countries and limiting by country the amount of a particular commodity that can be imported. This document certifies the country of manufacture of the goods being shipped, and may allow for a favorable duty treatment for goods originating in a specific country. Not to be confused with a NAFTA Certificate of Origin (see definition further down).


 CFR (Cost and Freight)
Cost and Freight means that the seller delivers when the goods pass the ship's rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination BUT the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from teh seller to the buyer. The CFR term requires the seller to clear the goods for export. This term can be used only for sea and inland waterway transport. If the parties do not intent to deliver the goods across the ship's rail, the CPT term should be used.


 CIF (Cost, Insurance and Freight)
Cost, Insurance and Freight means that the seller delivers when the goods pass the ship's rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination BUT the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer. However, in CIF the seller also has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage. Consequently, the seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIF term the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have the protection of greater cover, he would either need to agree as much expressly with the seller or to make his own extra insurance arrangements. The CIF term requires the seller to clear the goods for export. This term can be used only for sea and inland waterway transport. If the parties do not intend to deliver the goods across the ship's rail, the CIP term should be used.


 CIP (Carriage and Insurance Paid to)
"Carriage and Insurance paid to…" means that the seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and any additional costs occuring after the goods have been so delivered. However, in CIP the seller also has to procure insurance against the buyer's risk of loss of or damage to the goods during the carriage. Consequently, the seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIP term the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have the protection of greater cover, he would either need to agree as much expressly with the seller or to make his own extra insurance arrangements. "Carrier" means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport, by rail, road, air, sea, inland waterway or by a combination of such modes. If subsequent carriers are used for the carriage to the agreed destination, the risk passes whten the goods have been delivered to the first carrier. The CIP term requires the seller to clear the goods for export. This term may be used irrespective of the mode of transport including multimodal transport.


 Commercial Invoice
A shipper’s commercial invoice can be used for Customs clearance instead of a Canada Customs Invoice provided it contains the minimum amount of information required by Canada Customs.


 Consignee
The person or company to whom the goods are being shipped.


 Consolidation
The act of combining many small shipments into one large shipment in order to lower freight or customs clearance costs.


 Country of Export
The country from which the goods are being exported


 Country of Manufacture or Country of Origin
The country in which the goods are grown, produced, or manufactured. Different tariff treatments have different requirements for minimum percentage of origin and proof of prerequisites (evidence of origin).


 Courier Remission
A shipment valued at Cdn $20.00 or less falls under Courier Remission. Unless there are other non-tariff barriers these shipments have minimal reporting requirements and do not attract duty and/or tax.


 CPT (Carriage Paid to)
"Carriage paid to…" means that the seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and any other costs occuring after the goods have been so delivered. "Carrier" means any person who, in a contract of carriage, undertakes to perform or to rocure the performance of transport, by rail, road, air, sea, inland waterway or by a combination of such modes. If subsequent carriers are used for the carriage to the agreed destiantion, the risk passes when the goods have been delivered to the first carrier. The CPT term requires the seller to clear the goods for export. This term may be used irrespective of the mode of transport including multimodal transport.


 Customs
A government agency that controls the importing, exporting and transiting of shipments for their country.


 Customs Release
Customs authorization for removal of imported goods from a Customs office, sufferance warehouse or bonded warehouse.


 Customs Self Assessment
Self assessment program being developed by Canada Customs to streamline accounting and payment process for all goods imported by approved importers. The program also gives the option of streamlined clearance for CSA eligible goods imported by approved importers, using approved carriers and registered drivers.


 Customs Tariff Act
The legal authority for the imposition of Customs duties and taxes.

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D


 DAF (Delivered at Frontier)
"Delivered at Frontier" means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport not unloaded, cleared for export, but not cleared for import at the named point and place at the frontier, but before the customs border of the adjoining country. The term "frontier" may be used for any frontier including that of the country of export. Therefore, it is of vital importance that the frontier in question be defined precisely by always naming the point and place in the term. However, if the parties wish the seller to be responsible for the unloading of the goods from the arriving means of transport and to bear the risks and costs of unloading, this should be made clear by adding explicit wording to this effect in the contract of sale. This term may be used irrespective of the mode of transport when goods are to be delivered at a land frontier. When delivery is to take place in the port of destination, on board a vessel or on the quay (wharf), the DES or DEQ terms should be used.


 Date of Direct Shipment
Date on which imported goods began their continuous and uninterrupted journey to Canada. Used as the date of currency conversion.


 DDP (Delivered Duty Paid)
"Delivered Duty Paid" means that the seller delivers the goods to the buyer, cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller has to bear all the costs and risks involved in bringing the goods thereto including, where applicable, and "duty" (which term includes the responsibility for and the risks of the carrying out of customs formalities and the payment of formalities, customs duties, taxes and other charges) for import in the county of destination. Whilst the ECW term represents the minimum obligation for the seller, DDP represents the maximum obligation. This term should not be used if the seller is unable directly or indirectly to obtain the import licence. However, if the parties wich to exclude from the sellers obligations some of the costs payable upon import of the goods (such as value-added tax: VAT), this should be made clear by adding explicit wording to this effect in the contract of sale. If the parties wish the buyer to bear all risks and costs of the import, the DDU term should be used. This term may be used irrespective of the mode of transport but when delivery is to take place in the port of destination on board the vessel or on the quay (warf), the DES or DEQ terms should be used.


 DDU (Delivered Duty Unpaid)
"Delivered duty unpaid" means that the seller delivers the goods to the buyer, not cleared for import, and not unloaded from any arriving means of transport at the named place of destiantion. The seller has to bear the costs and risks involved in bringing the goods thereto, other than, where applicable, and "duty" (which term includes the responsibility for and the risks of the carrying out of customs formalities, and the payment of formalities, customs duties, taxes and other charges) for import in the country of destiantion. Such "duty" has to be borne by the buyer as well as any costs and risks caused by his failure to clear the goods for import in time. However, if the parties wish the seller to carry out customs formalities and bear the costs and risks resulting therfrom as well as some of the costs payable upon import of the goods, this should be made clear by adding explicit wording to this effect in the contract of sale. This term may be used irrespective of the mode of transport but when delivery is to take place in the port of destination on board the vessel on on the quay (wharf), the DES or DEQ terms should be used.


 DEQ (Delivered Ex Quay)
"Delivered Ex Quay" means that the seller delivers when the goods are placed at the disposal of the buyer not cleared for import on the quay (wharf) at the named port of destination. The seller has to bear costs and risks involved in bringing the goods to the named port of destination and discharging the goods on the quay (wharf). The DEQ term requires the buyer to clear the goods for import and to pay for all formalities, duties, taxes and other charges upon import. This is a reversal from previous incoterms versions which required the seller to arrange for import clearance. If the parties wish to include in the seller's obligations all of part of the costs payable upon import of the goods, this should be made clear by adding explicit wording to this effect in the contract of sale. This term can be used only when the goods are to be delivered by sea or inland waterway or multimodal transport on discharging from a vessel onto the quay (wharf) in the port of destination. However if the parties wish to include in the seller's obligations the risks and costs of the handling of the goods from the quay to another place (warehouse, terminal, transport station, etc.) in or outside the port, the DDU or DDP terms should be used.


 DES (Delivered Ex Ship)
"Delivered Ex Ship" means that the seller delivers when the goods are placed at the disposal of the buyer on board the ship not cleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port of destination before discharging. If the parties wish the seller to bear the costs and risks of discharging the goods, then the DEQ term should be used. This term can be used only when the goods are to be delivered by sea or inland waterway or multimodal transport on a vessel in the port of destination.


 Disbursement Fee
A fee charged by the broker for payment of duties and taxes by the broker when the funds are not provided by the customer in advance of shipment.


 Drawback
Type of rebate of import duties and taxes (excluding GST or HST). It covers goods being exported and specific materials used for some domestic manufacturing. It is also known as a Refund.


 Duties and Taxes
Duties or taxes can be levied on imported goods under authority of the Customs Tariff Act, The Excise Tax Act, the Special Import Measures Act (SIMA), or any other law relating to Customs. Duty on imported goods services as a source of revenue for local government and as a means of controlling the flow of externally produced products.


 Duty Paid Value
The Value at which the applicable Excise Tax is calculated. It is the Aggregate of Customs duties and applicable Special Import Measures Act (SIMA) assessment.

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E


 EDI (Electronic Data Interchange )
The transmission of information between shippers, importers, brokers, carriers and Canada Customs by computer. Considered a step towards a paperless environment, it is a means of facilitating all types of transactions and removing communication barriers between countries.


 Entry Preparation Charge
Fees charged by a broker for preparing the information required by Canada Customs on the goods being imported.


 EXCAPS (Customs Automated Permit System)
Automatic link with Foreign Affairs and International Trade Canada to exchange import data for product requiring import permits. Eliminates the need to present a hard copy Import Permit at time of import.


 Excise Act
Provides the authority for the collection of Excise duties on alcohol, spirits, beer, tobacco and their derivatives.


 Excise Tax Act
This act regulates the Excise Tax charged on a limited number of items most of which can be considered luxury goods. It also provides the authority for the Goods and Services Tax (GST) and Harmonized Tax (HST).


 Export and Import Permits Act
The Act is controlled and administered by the Department of Foreign Affairs and International Trade with Canada Customs bearing the responsibility of confirming that required permits are surrendered expeditiously for both imports and exports.


 Export License
A government document issued by the exporting country, permitting the licensee to participate in the export of designated goods to certain destinations. The Export license must accompany the Application for Import Permit.


 EXW (Ex Works)
Ex works means that the seller delivers when he places the goods at the disposal of the buyer at the seller's premises or another named place (i.e. works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle. This term thus represents the minimum obligation for the seller, and the buyer has to bear all costs and risks involved in taking the goods from the seller's premises. However if the parties wish the seller to be responsible for the loading of the goods on departure and to bear the risks and all the costs of such loading, this should be made clear by adding explicit wording to this effect in the contract of sale. This term should not be used when the buyer cannot carry out the export formalities directly or indirectly. In such circumstances, the FCA term should be used, provided the seller agrees that he will not load at his cost and risk.

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F


 FAS (Free Alongside Ship)
Free Alongside Ship means that the seller delivers when the goods are placed alongside the vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. The FAS term requires the seller to clear the goods for export. This is a reversal from previous incoterms versions which required the buyer to arrange for export clearance. However, if the parties wish the buyer to clear the goods for export, this should be made clear by adding explicit wording to this effect in the contract of sale.


 FCA (Free Carrier Multimodal)
Free Carrier means that the seller delivers the goods, cleared for export, to the the carrier nominated by the buyer at the named place. It should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at the seller's premises, the seller is responsible for loading. If delivery occurs at any other place, the seller is not responsible for unloading. This term may be used irrespective of the mode of transport, including multimodal transport. "Carrier" means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport by rail, road, air, sea, inland waterway or by a combination of such modes. If the buyer nominates a person other than a carrier to receive the goods, the seller is deemed to have fulfilled his obligation to deliver the goods when they are delivered to that person.


 FIRST (Frequent Importer Release System)
A release system designed for use by importers with frequent low risk, high value shipments.


 FOB (Free on Board)
Free on Board means that seller delivers when the goods pass the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. This term can be used only for sea or inland waterway transport. If the parties do not intend to deliver the goods across the ship's rail, the FCA term should be used.

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G


 GAA (General Agency Agreement)
Signed authorization, given by an importer, to a Customs Broker or to one of their employees to represent the importer at Customs. Also known as a Power of Attorney (POA)

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H


 HS (Harmonized System)
The Harmonized Commodity Description and Coding System (or Harmonized System), is a system for classifying goods in international trade. The first six digits of the HS number classify the goods internationally, and the remaining four digits classify the goods within the imported country.


 HVS (High Value Shipment)
A shipment with commodities valued at over CDN $1,600.00.

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I


 Import Permit
A document issued by Foreign Affairs and International Trade to control and monitor the importation of designated sensitive goods, as defined in the Import/Export Control Act.


 Importer of Record
The person or company responsible for payment of duties and taxes, as well as the retention of importing records.


 ITC (Input Tax Credit)
A tax rebate claimed by a GST registrant, for the GST or HST paid or payable on goods and services.

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L


 LVS (Low Value Shipment)
A shipment valued between Cdn $20.00 and $1600.

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N


 NAFTA (North American Free Trade Agreement)
Implemented on January 1, 1994 between Canada, the United States, and Mexico to phase out duty on most goods within a ten-year period. The exporter must provide a NAFTA Certificate or Statement of Origin for goods that qualify under the NAFTA “ Rules of Origin” to the importer so that they can claim NAFTA tariff preference.


 NRI (Non Resident Importer)
A shipper or exporter who prepays all the charges into Canada, including the duty and GST, and clears the goods into Canada in their name as a Non Resident Importer.

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P


 PARS (Pre Arrival Review System)
Customs system used to release goods prior to their arrival in Canada.

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R


 Rating
The process of determining duty and/or tax payable to Customs for commodities in imported shipments.


 Request for Re-Determination or Re-Appraisal
A challenge to an unfavorable tariff classification or valuation decision by Customs. It also serves as a Refund Request to gain an overpayment of duties resulting from an error in tariff classification or valuation.


 RMD (Release on Minimum Documentation)
Quick Customs release can be obtained by importers or brokers with financial security on file with Canada Customs, by initially submitting minimum documentation, with full documentation being submitted to finalize the Customs Entry within five days.


 RNS (Release Notification System)
Provides for around-the clock access to the statues of release messages. Release information is received electronically by the brokers and carriers.

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S


 SIMA (Special Import Measures Act)
The legal authority to take action against goods that are “dumped” or “subsidized” by levying anti-dumping or countervailing duties.


 Split Shipment
A multiple shipment that has been separated. Part of the shipment does not arrive on the same day, due to the misflow or missort of one or more of the packages.


 Sufferance Warehouse
An In Bond area within a transportation terminal, where goods are stored until they are released by Canada Customs.

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T


 Temporary Importation Entries
Under certain circumstances, Customs will permit full or partial relief of duties for particular goods imported into Canada on a temporary basis. They must be exported or destroyed under Customs supervision within a prescribed time frame or Customs will require full duties to be paid.


 Transaction Value
The price paid for goods, as adjusted, when sold for export to Canada. It represents the aggregate of all payments made by the purchaser in Canada, whether directly or indirectly to the benefit of the vendor.

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V


 Value for Tax
The value on which the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) is calculated. It is the aggregate of Customs duties, including Excise Duty, if any applicable, Special Import Measures Act (SIMA) assessment, and applicable Excise Tax.

   


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